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: March 31

Registrant is making a filing for 9 of its series:

Wells Fargo Intrinsic Small Cap Value Fund, Wells Fargo Small Cap Core Fund, Wells Fargo Small Cap Opportunities Fund, Wells Fargo Small Cap Value Fund, Wells Fargo Special Small Cap Value Fund, Wells Fargo Traditional Small Cap Growth Fund, Wells Fargo Precious Metals Fund, Wells Fargo Specialized Technology Fund, and Wells Fargo Utility and Telecommunications Fund.

Date of reporting period: March 31, 2018

ITEM 1. REPORT TO STOCKHOLDERS

Annual Report

March 31, 2018

Wells Fargo Intrinsic Small Cap Value 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	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	32

The views expressed and any forward-looking statements are as of March 31, 2018, 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 Intrinsic Small Cap Value Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

Dear Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Intrinsic Small Cap Value Fund for the 12-month period that ended March 31, 2018. During the last three quarters of 2017, investors enjoyed consistently rising equity values globally. Short-term interest rates tended to increase, while long-term rates remained flat to lower. During the final two months of the first quarter of 2018, equity market volatility returned, stocks reversed year-to-date gains, and bond yields rose while prices fell.

For the period, U.S. stocks, as measured by the S&P 500 Index,¹ gained 13.99% and international stocks, as measured by the MSCI ACWI ex USA Index (Net),² added 16.53%. Emerging market stocks, as measured by the MSCI EM Index (Net),³ added 24.93%. In bond markets, the Bloomberg Barclays U.S. Aggregate Bond Index⁴ added 1.20% and the Bloomberg Barclays Municipal Bond Index⁵ added 2.66% while fixed-income investments outside the U.S. gained 11.75%, according to the Bloomberg Barclays Global Aggregate ex-USD Index.⁶ The ICE BofAML U.S. High Yield Index⁷ earned 3.69%.

Through the last nine months of 2017, stocks advanced on synchronized global growth, which led to higher investor and consumer confidence. The first quarter of 2018 began with strong stock market gains in January. A strong January 2018 U.S. employment report and inflation concerns prompted equity volatility in February. Investor optimism for growth was supplanted with concerns over trade tensions, increased interest rates, and the prospect of new data privacy regulations.

Reactions to U.S. interest rate increases were uneven across the yield curve and globally.

The U.S. Federal Reserve (Fed) increased the federal funds rate three times during the 12-month period for a combined 75 basis points (bps; 100 bps equals 1.00%). Following an increase in March 2017, short-term bond yields in the U.S. rose while longer-term Treasury yields were little changed. Municipal bond returns were positive, helped by strong demand and constrained new-issue supply. The Fed raised the target interest rate once again in June 2017 to a range of 1.00% to 1.25%. Ten-year U.S. Treasury yields declined, the yield curve flattened, and long-term bond prices benefited.

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 indices or any securities or financial products. This report is not approved, reviewed, or produced by MSCI. You cannot invest directly in an index.

³ The MSCI Emerging Markets (EM) Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure large- and mid-cap equity market performance of emerging markets. The MSCI EM Index (Net) consists of the following 24 emerging market country indices: 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.

⁴  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.

⁵  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.

⁶  The Bloomberg Barclays Global Aggregate ex-USD Index 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.

⁷  The ICE BofAML U.S. High Yield Index is a market-capitalization-weighted index of domestic and Yankee high-yield bonds. The index tracks the performance of high-yield securities traded in the U.S. bond market. You cannot invest directly in an index. Copyright 2018. ICE Data Indices, LLC. All rights reserved.

Letter to shareholders (unaudited) Wells Fargo Intrinsic Small Cap Value Fund 3

Internationally, central banks maintained low interest rates and accommodative monetary policies that supported business activity and stock values in foreign markets. A weaker U.S. dollar was generally supportive of business activity in regions around the globe. The Bank of Japan continued its accommodative monetary policies, and industrial production, retail sales, and fixed asset investment increased in China.

Growth continued through the summer of 2017.

Globally, stocks moved higher during the third quarter of 2017. Low inflation and interest rates supported accelerating global economic growth and corporate earnings. Brief episodes of geopolitical tensions, often associated with North Korea’s advancing nuclear missile program, flaring conflicts in the Middle East, and uncertainty surrounding U.S. trade policies, did not discourage investing activity.

In the U.S., economic data released during the quarter reflected a generally healthy economy. Second-quarter economic output grew at a 3.1% annual rate. Stocks in international developed and emerging markets continued to benefit from improving economic growth.

Positive economic and market news continued as 2017 closed and 2018 began.

During the fourth quarter of 2017, stock markets continued the move higher. Third-quarter economic output in the U.S. grew at a 3.2% annual rate. The unemployment rate fell to a 17-year low of 4.1%. Tax reform passed and wage growth data improved, encouraging increased business and consumer spending.

Fed officials announced in October 2017 plans to begin unwinding its $4.5 trillion portfolio of bonds and other assets accumulated during rounds of quantitative easing conducted since the 2008–2009 recession. Still, restrained inflation kept long-term bond rates steady and the flattened yield curve persisted. The Fed raised the federal funds rate target to a range of 1.25% to 1.50% in December 2017 and began selling bonds held in its portfolio.

2018 opened with continued stock advances, then volatility.

Improving business and economic data globally continued to support stocks through January 2018. Political wrangling in the U.S. over budget resolutions could not dissuade investors from buying stocks as payrolls and factory orders increased. Long-term interest rates in the U.S. trended higher as the yield curve steepened—the 10-year Treasury rate moved from 2.46% to 2.84% and the 30-year rate moved from 2.81% to 3.08% during January 2018.

Investor sentiment shifted in February as inflation concerns emerged in the U.S. when readings from the Producer Price Index in January rose 2.5% year over year. During February, the U.S. market endured a loss from January’s high of nearly 12% before recovering much of that loss. The Fed raised the federal funds rate in March 2018. Bond yields rose across the yield curve.

During January 2018, purchasing managers’ indices in China, the eurozone, India, and Japan reported data for December that indicated continued growth. Despite positive economic signals and business fundamentals, international stock values fell during February and March 2018, swept up in the selling momentum in U.S. markets.

Globally, stocks moved higher during the third quarter of 2017.

During February, the U.S. market endured a loss from January’s high of nearly 12% before recovering much of that loss.

4 Wells Fargo Intrinsic Small 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.

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6 Wells Fargo Intrinsic Small 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

Ann Miletti

Christopher G. Miller, CFA^®

Average annual total returns (%) as of March 31, 2018

		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 (WFSMX)	3-31-2008		2.54		8.92		8.13		8.78		10.22		8.78		1.49		1.36
Class C (WSCDX)	3-31-2008		6.96		9.40		7.97		7.96		9.40		7.97		2.24		2.11
Administrator Class (WFSDX)	4-8-2005		–		–		–		8.94		10.42		9.01		1.41		1.21
Institutional Class (WFSSX)	4-8-2005		–		–		–		9.15		10.65		9.24		1.16		1.01
Russell 2000® Value Index3	–		–		–		–		5.13		9.96		8.61		–		–

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). Consult the Fund’s prospectus for additional information on these and other risks.

Please see footnotes on page 7.

Performance highlights (unaudited) Wells Fargo Intrinsic Small Cap Value Fund 7

Growth of $10,000 investment as of March 31, 2018⁴

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 July 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 1.35% for Class A, 2.10% for Class C, 1.20% for Administrator Class, and 1.00% for Institutional Class. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses (if any), 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 (the total annual fund operating expenses after fee waivers) as stated in the prospectuses.

³  The Russell 2000^® Value Index measures the performance of those Russell 2000 companies with lower price/book ratios and lower forecasted growth values. 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 2000^® 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.

8 Wells Fargo Intrinsic Small Cap Value Fund Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

∎ The Fund outperformed its benchmark, the Russell 2000^® Value Index, for the 12-month period that ended March 31, 2018.

∎ Stock selection in the health care, energy, and materials sectors contributed the most to performance relative to the index.

∎ Stock selection in the consumer staples sector detracted from performance relative to the index.

The U.S. stock market rallied for most of the reporting period, with many stock market indices hitting new all-time highs in January 2018 before pulling back in the subsequent two months. Market volatility hit an all-time low in late 2017, and larger-cap and growth stocks tended to outperform smaller-cap and value stocks. The small-cap value segment of the U.S. stock market, represented by the Russell 2000^® Value Index, followed a similar pattern and ended with a 5.1% gain for the period.

A number of factors influenced the U.S. stock market during the period. From our perspective, the outcome of the November 2016 U.S. presidential election likely had the biggest impact; the U.S. stock market generally rallied since the election through the latter part of January 2018 as investors expected businesses to benefit from the new administration’s progrowth positioning. In December 2017, the Tax Cuts and Jobs Act of 2017 was passed by the U.S. Congress and signed into law. 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 1.50% to 1.75% at its March 2018 meeting. The Fed also released a fairly detailed outline of its plans to reduce the size of its balance sheet of approximately $4.5 trillion and began implementing the reduction. Overall, the U.S. economy remained resilient, with 15 straight quarters of growth in gross domestic product, and continued to experience favorable trends in employment, wages, and consumer confidence.

Throughout all of the market and economic events that occurred during the reporting period, we continued to seek well-positioned companies—those with 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 that would be paid for the entire company as a stand-alone private entity.

Ten largest holdings (%) as of March 31, 20185
Zions Bancorporation	2.19
Sterling BanCorp	2.17
Webster Financial Corporation	2.16
WPX Energy Incorporated	2.13
RSP Permian Incorporated	2.08
Bio-Rad Laboratories Incorporated Class A	1.91
LegacyTexas Financial Group	1.85
National General Holdings Corporation	1.83
Stifel Financial Corporation	1.82
Haemonetics Corporation	1.78

Portfolio holdings in the health care, energy, and materials sectors were the largest contributors to relative performance.

Health care was the best-performing sector in the index, rising almost 25% during the reporting period. The Fund’s overweight position and stock selection outperformed the sector, making it the largest contributor to relative performance. Holdings in the health care equipment and services industry, including Haemonetics Corporation, STERIS plc, and Integer Holdings Corporation, outperformed their peers. Haemonetics, a global health care company providing innovative blood management solutions, rose 80% during the period on reporting strong financial results

after implementing cost-cutting measures and experiencing sequential growth. Even though energy was one of the worst-performing sectors in the index, declining over 18%, the Fund’s overweight position in high-quality companies gained 3.6% during the period. West Texas Intermediate crude oil prices rose 28% and, along with debt reduction and operational improvements, aided the performance of the Fund’s energy holdings. In the materials sector, holdings in the chemicals and mining industries outperformed their peers.

Please see footnotes on page 7.

Performance highlights (unaudited) Wells Fargo Intrinsic Small Cap Value Fund 9

Sector distribution as of March 31, 2018⁶

Stock selection in the consumer staples sector detracted from relative performance.

The consumer staples sector in the index declined 5.6% during the reporting period, with the Fund’s holdings in the food products industry underperforming the benchmark, making it the leading detractor from relative performance. TreeHouse Foods, Incorporated, is a food and beverage manufacturing company operating in the U.S. and Canada, specializing in the production of private label products. The company has been dealing with a competitive pricing environment that negatively affected margins and future earnings potential, causing the stock to decline 54% during the period.

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 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 industrials, health care, and information technology sectors and underweight utilities, real estate, and financials. 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 historical company acquisitions across industries, sectors, and time frames enables us to maintain an extensive foundation for assessing the PMV 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 PMV.

Similar themes may prevail for the rest of 2018.

Looking ahead to the rest of the year, the policies of the U.S. government, the impact of tax reform, interest rates, and energy prices are themes that likely could influence the overall market and the relative performance of the Fund. Now that tax reform has been accomplished, the U.S. administration has turned its sights on trade agreements, further reduction of commercial business regulations, and infrastructure.

The Fed has signaled more rate hikes in 2018 if labor markets tighten further, global economic risks remain balanced, and inflation measures hit the Fed’s target. Volatility in commodity prices and global currencies likely may continue to drive global stock markets.

Please see footnotes on page 7.

10 Wells Fargo Intrinsic Small Cap Value Fund Fund expenses (unaudited)

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

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from October 1, 2017 to March 31, 2018.

Actual expenses

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

Hypothetical example for comparison purposes

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

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

	Beginning account value 10-1-2017		Ending account value 3-31-2018		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,042.07	$	6.87		1.35	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.20	$	6.79		1.35	%
Class C
Actual	$	1,000.00	$	1,038.27	$	10.67		2.10	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,014.46	$	10.55		2.10	%
Administrator Class
Actual	$	1,000.00	$	1,042.94	$	6.11		1.20	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.95	$	6.04		1.20	%
Institutional Class
Actual	$	1,000.00	$	1,044.08	$	5.10		1.00	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.95	$	5.04		1.00	%

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

Portfolio of investments—March 31, 2018 Wells Fargo Intrinsic Small Cap Value Fund 11

Security name	Shares		Value
Common Stocks: 98.57%
Consumer Discretionary: 9.08%
Auto Components: 3.08%
Dana Incorporated		48,651	$	1,253,250
Tenneco Incorporated		22,694		1,245,220
				2,498,470
Diversified Consumer Services: 0.87%
Houghton Mifflin Harcourt Company †		101,436		704,980
Hotels, Restaurants & Leisure: 1.32%
Playa Hotels & Resorts NV †		43,812		447,759
Red Robin Gourmet Burgers Incorporated †		10,851		629,358
				1,077,117
Leisure Products: 1.26%
Callaway Golf Company		62,612		1,024,332
Media: 1.33%
Lions Gate Entertainment Class B		29,235		703,979
MDC Partners Incorporated Class A †		52,393		377,230
				1,081,209
Textiles, Apparel & Luxury Goods: 1.22%
Carter’s Incorporated		9,500		988,950
Consumer Staples: 0.54%
Food Products: 0.54%
TreeHouse Foods Incorporated †		11,464		438,727
Energy: 7.08%
Energy Equipment & Services: 0.50%
Forum Energy Technologies Incorporated †		36,707		403,777
Oil, Gas & Consumable Fuels: 6.58%
Encana Corporation		79,606		875,666
Matador Resources Company †		35,423		1,059,502
RSP Permian Incorporated †		35,961		1,685,852
WPX Energy Incorporated †		116,852		1,727,073
				5,348,093
Financials: 26.49%
Banks: 18.12%
Ameris Bancorp		24,770		1,310,333
First Midwest Bancorp Incorporated		26,628		654,783
LegacyTexas Financial Group		35,088		1,502,468
PacWest Bancorp		28,348		1,404,076
Pinnacle Financial Partners Incorporated		19,790		1,270,518
Renasant Corporation		22,504		957,770

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

12 Wells Fargo Intrinsic Small Cap Value Fund Portfolio of investments—March 31, 2018

Security name	Shares		Value
Banks (continued)
Sterling BanCorp		77,993	$	1,758,742
United Community Bank		36,202		1,145,793
Webster Financial Corporation		31,608		1,751,083
Wintrust Financial Corporation		13,726		1,181,122
Zions Bancorporation		33,704		1,777,212
				14,713,900
Capital Markets: 1.82%
Stifel Financial Corporation		24,937		1,477,019
Insurance: 5.26%
CNO Financial Group Incorporated		64,324		1,393,901
First American Financial Corporation		13,727		805,500
Maiden Holdings Limited		89,420		581,230
National General Holdings Corporation		61,230		1,488,501
				4,269,132
Thrifts & Mortgage Finance: 1.29%
Essent Group Limited †		24,740		1,052,934
Health Care: 12.35%
Health Care Equipment & Supplies: 7.49%
AngioDynamics Incorporated †		81,559		1,406,893
Haemonetics Corporation †		19,770		1,446,373
Integer Holdings Corporation †		21,594		1,221,141
STERIS plc		14,273		1,332,527
Wright Medical Group NV †		33,878		672,140
				6,079,074
Health Care Providers & Services: 1.45%
Envision Healthcare Corporation †		30,579		1,175,151
Life Sciences Tools & Services: 3.41%
Bio-Rad Laboratories Incorporated Class A †		6,212		1,553,497
Bruker Corporation		40,747		1,219,150
				2,772,647
Industrials: 19.47%
Aerospace & Defense: 0.83%
Aerojet Rocketdyne Holdings †		24,064		673,070
Airlines: 1.10%
Spirit Airlines Incorporated †«		23,555		889,908
Commercial Services & Supplies: 4.57%
Interface Incorporated		56,041		1,412,233
KAR Auction Services Incorporated		24,751		1,341,504
Steelcase Incorporated Class A		70,737		962,023
				3,715,760

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

Portfolio of investments—March 31, 2018 Wells Fargo Intrinsic Small Cap Value Fund 13

Security name	Shares		Value
Construction & Engineering: 0.45%
Valmont Industries Incorporated		2,483	$	363,263
Machinery: 4.53%
Altra Holdings Incorporated «		24,987		1,148,153
ITT Incorporated		26,366		1,291,407
Rexnord Corporation †		41,785		1,240,179
				3,679,739
Road & Rail: 2.86%
Avis Budget Group Incorporated †«		22,107		1,035,492
Genesee & Wyoming Incorporated Class A †		18,138		1,283,989
				2,319,481
Trading Companies & Distributors: 5.13%
Air Lease Corporation		23,246		990,745
GATX Corporation «		14,003		959,065
MRC Global Incorporated †		73,543		1,209,047
WESCO International Incorporated †		16,253		1,008,499
				4,167,356
Information Technology: 11.90%
Communications Equipment: 1.58%
Infinera Corporation †		117,808		1,279,395
Electronic Equipment, Instruments & Components: 6.85%
Anixter International Incorporated †		14,556		1,102,617
Avnet Incorporated		30,232		1,262,488
Synnex Corporation		8,624		1,021,082
VeriFone Systems Incorporated †		63,869		982,305
Zebra Technologies Corporation Class A †		8,576		1,193,693
				5,562,185
IT Services: 2.42%
Conduent Incorporated †		68,092		1,269,235
WEX Incorporated †		4,434		694,453
				1,963,688
Technology Hardware, Storage & Peripherals: 1.05%
Diebold Nixdorf Incorporated «		55,484		854,454
Materials: 3.62%
Chemicals: 0.70%
PolyOne Corporation		13,399		569,725
Metals & Mining: 2.92%
Reliance Steel & Aluminum Company		16,133		1,383,243
Royal Gold Incorporated		11,533		990,339
				2,373,582

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

14 Wells Fargo Intrinsic Small Cap Value Fund Portfolio of investments—March 31, 2018

Security name				Shares		Value
Real Estate: 8.04%
Equity REITs: 8.04%
Cousins Properties Incorporated					92,354	$	801,633
Four Corners Property Trust Incorporated					35,235		813,576
Hudson Pacific Properties Incorporated					38,184		1,242,126
Outfront Media Incorporated					36,946		692,368
Physicians Realty Trust					66,772		1,039,640
Retail Opportunity Investment Corporation					59,777		1,056,260
Taubman Centers Incorporated					15,558		885,406
							6,531,009
Total Common Stocks (Cost $65,559,386)							80,048,127
	Yield
Short-Term Investments: 6.74%
Investment Companies: 6.74%
Securities Lending Cash Investment LLC (l)(r)(u)		1.89	%		4,579,892		4,580,350
Wells Fargo Government Money Market Fund Select Class (l)(u)		1.54			893,311		893,311
Total Short-Term Investments (Cost $5,473,592)							5,473,661

Total investments in securities (Cost $71,032,978)	105.31	%		85,521,788
Other assets and liabilities, net	(5.31	)		(4,310,851	)
Total net assets	100.00	%	$	81,210,937

† 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 Portfolio 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		6,194,706		55,772,053		57,386,867		4,579,892	$	239	$	(229	)	$	13,832	$	4,580,350
Wells Fargo Government Money Market Fund Select Class		3,115,232		23,681,112		25,903,033		893,311		0		0			17,244		893,311
									$	239	$	(229	)	$	31,076	$	5,473,661		6.74	%

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

Statement of assets and liabilities—March 31, 2018 Wells Fargo Intrinsic Small Cap Value Fund 15

Assets
Investments in unaffiliated securities (including $4,550,752 of securities loaned), at value (cost $65,559,386)	$	80,048,127
Investments in affiliated securities, at value (cost $5,473,592)		5,473,661
Cash		37,106
Receivable for investments sold		355,601
Receivable for Fund shares sold		3,576
Receivable for dividends		79,182
Receivable for securities lending income		1,768
Prepaid expenses and other assets		30,321
Total assets		86,029,342
Liabilities
Payable upon receipt of securities loaned		4,579,825
Payable for investments purchased		71,451
Management fee payable		46,061
Payable for Fund shares redeemed		42,662
Administration fees payable		13,049
Distribution fee payable		560
Trustees’ fees and expenses payable		457
Accrued expenses and other liabilities		64,340
Total liabilities		4,818,405
Total net assets	$	81,210,937
NET ASSETS CONSIST OF
Paid-in capital	$	67,232,207
Accumulated net realized losses on investments		(510,080	)
Net unrealized gains on investments		14,488,810
Total net assets	$	81,210,937
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	50,992,747
Shares outstanding – Class A1		1,620,811
Net asset value per share – Class A		$31.46
Maximum offering price per share – Class A2		$33.38
Net assets – Class C	$	839,833
Shares outstanding – Class C1		28,661
Net asset value per share – Class C		$29.30
Net assets – Administrator Class	$	1,346,618
Shares outstanding – Administrator Class1		42,003
Net asset value per share – Administrator Class		$32.06
Net assets – Institutional Class	$	28,031,739
Shares outstanding – Institutional Class1		863,736
Net asset value per share – Institutional Class		$32.45

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 Intrinsic Small Cap Value Fund Statement of operations—year ended March 31, 2018

Investment income
Dividends (net of foreign withholding taxes of $1,097)	$	859,915
Income from affiliated securities		31,076
Total investment income		890,991
Expenses
Management fee		695,648
Administration fees
Class A		106,688
Class C		1,752
Administrator Class		4,303
Institutional Class		34,961
Shareholder servicing fees
Class A		127,010
Class C		2,085
Administrator Class		8,275
Distribution fee
Class C		6,256
Custody and accounting fees		15,576
Professional fees		40,553
Registration fees		62,519
Shareholder report expenses		36,318
Trustees’ fees and expenses		23,965
Interest expense		1,661
Other fees and expenses		10,622
Total expenses		1,178,192
Less: Fee waivers and/or expense reimbursements		(164,512	)
Net expenses		1,013,680
Net investment loss		(122,689	)
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		8,078,919
Affiliated securities		239
Net realized gains on investments		8,079,158
Net change in unrealized gains (losses) on:
Unaffiliated securities		(1,592,378	)
Affiliated securities		(229	)
Net change in unrealized gains (losses) on investments		(1,592,607	)
Net realized and unrealized gains (losses) on investments		6,486,551
Net increase in net assets resulting from operations	$	6,363,862

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

Statement of changes in net assets Wells Fargo Intrinsic Small Cap Value Fund 17

	Year ended March 31, 2018						Year ended March 31, 2017
Operations
Net investment loss				$	(122,689	)				$	(475,847	)
Net realized gains on investments					8,079,158						15,786,751
Net change in unrealized gains (losses) on investments					(1,592,607	)					8,093,313
Net increase in net assets resulting from operations					6,363,862						23,404,217
Distributions to shareholders from
Net investment income
Class A					0						(256,325	)
Administrator Class					0						(23,316	)
Institutional Class					0						(465,017	)
Total distributions to shareholders					0						(744,658	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		56,287			1,697,291			94,698			2,625,025
Class C		3,291			88,944			26,166			698,694
Administrator Class		9,745			302,977			20,547			548,375
Institutional Class		134,112			4,360,186			642,995			18,321,155
					6,449,398						22,193,249
Reinvestment of distributions
Class A		0			0			8,734			248,050
Administrator Class		0			0			314			9,086
Institutional Class		0			0			12,540			365,784
					0						622,920
Payment for shares redeemed
Class A		(261,867	)		(7,767,468	)		(401,261	)		(10,930,489	)
Class C		(11,065	)		(298,907	)		(2,636	)		(65,871	)
Administrator Class		(115,713	)		(3,702,140	)		(77,690	)		(2,099,588	)
Institutional Class		(1,288,079	)		(37,985,828	)		(1,582,608	)		(40,376,065	)
					(49,754,343	)					(53,472,013	)
Net decrease in net assets resulting from capital share transactions					(43,304,945	)					(30,655,844	)
Total decrease in net assets					(36,941,083	)					(7,996,285	)
Net assets
Beginning of period					118,152,020						126,148,305
End of period				$	81,210,937					$	118,152,020
Undistributed net investment income				$	0					$	0

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

18 Wells Fargo Intrinsic Small Cap Value Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended March 31															Year ended October 31, 2013
CLASS A	2018			2017			2016			2015			20141
Net asset value, beginning of period		$28.92			$23.49			$25.50			$23.53			$22.16			$15.96
Net investment income (loss)		(0.08	)2		(0.15	)2		0.22	2		0.04			0.02			0.03
Net realized and unrealized gains (losses) on investments		2.62			5.71			(2.09	)		1.93			1.35			6.17
Total from investment operations		2.54			5.56			(1.87	)		1.97			1.37			6.20
Distributions to shareholders from
Net investment income		0.00			(0.13	)		(0.14	)		0.00			0.00			0.00
Net asset value, end of period		$31.46			$28.92			$23.49			$25.50			$23.53			$22.16
Total return3		8.78	%		23.68	%		(7.36	)%		8.37	%		6.33	%		38.66	%
Ratios to average net assets (annualized)
Gross expenses		1.54	%		1.48	%		1.47	%		1.46	%		1.57	%		1.56	%
Net expenses		1.35	%		1.35	%		1.35	%		1.40	%		1.44	%		1.45	%
Net investment income (loss)		(0.26	)%		(0.57	)%		0.95	%		0.15	%		0.19	%		0.11	%
Supplemental data
Portfolio turnover rate		27	%		142	%		66	%		60	%		22	%		75	%
Net assets, end of period (000s omitted)		$50,993			$52,817			$49,898			$817			$908			$967

¹  For the five months ended March 31, 2014. The Fund changed its fiscal year end from October 31 to March 31, effective March 31, 2014.

²  Calculated based upon average shares outstanding

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

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

Financial highlights Wells Fargo Intrinsic Small Cap Value Fund 19

(For a share outstanding throughout each period)

	Year ended March 31															Year ended October 31, 2013
CLASS C	2018			2017			2016			2015			20141
Net asset value, beginning of period		$27.14			$22.11			$24.04			$22.35			$21.12			$15.32
Net investment loss		(0.28	)2		(0.39	)2		(0.00	)2,3		(0.14	)2		(0.05	)		(0.13	)2
Net realized and unrealized gains (losses) on investments		2.44			5.42			(1.93	)		1.83			1.28			5.93
Total from investment operations		2.16			5.03			(1.93	)		1.69			1.23			5.80
Net asset value, end of period		$29.30			$27.14			$22.11			$24.04			$22.35			$21.12
Total return4		7.96	%		22.75	%		(8.03	)%		7.56	%		6.02	%		37.60	%
Ratios to average net assets (annualized)
Gross expenses		2.29	%		2.22	%		2.22	%		2.21	%		2.33	%		2.30	%
Net expenses		2.10	%		2.10	%		2.12	%		2.15	%		2.19	%		2.20	%
Net investment loss		(1.02	)%		(1.52	)%		(0.00	)%		(0.62	)%		(0.54	)%		(0.66	)%
Supplemental data
Portfolio turnover rate		27	%		142	%		66	%		60	%		22	%		75	%
Net assets, end of period (000s omitted)		$840			$989			$285			$304			$429			$418

¹  For the five months ended March 31, 2014. The Fund changed its fiscal year end from October 31 to March 31, effective March 31, 2014.

²  Calculated based upon average shares outstanding

³  Amount is more 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.

20 Wells Fargo Intrinsic Small Cap Value Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended March 31															Year ended October 31, 2013
ADMINISTRATOR CLASS	2018			2017			2016			2015			20141
Net asset value, beginning of period		$29.43			$23.89			$25.95			$23.90			$22.49			$16.16
Net investment income (loss)		(0.03	)2		(0.10	)2		0.22	2		0.07	2		0.04	2		0.09
Net realized and unrealized gains (losses) on investments		2.66			5.80			(2.08	)		1.98			1.37			6.24
Total from investment operations		2.63			5.70			(1.86	)		2.05			1.41			6.33
Distributions to shareholders from
Net investment income		0.00			(0.16	)		(0.20	)		0.00			(0.00	)3		0.00
Net asset value, end of period		$32.06			$29.43			$23.89			$25.95			$23.90			$22.49
Total return4		8.94	%		23.86	%		(7.17	)%		8.58	%		6.43	%		38.99	%
Ratios to average net assets (annualized)
Gross expenses		1.46	%		1.40	%		1.37	%		1.30	%		1.42	%		1.40	%
Net expenses		1.20	%		1.20	%		1.20	%		1.20	%		1.20	%		1.20	%
Net investment income (loss)		(0.10	)%		(0.38	)%		0.91	%		0.27	%		0.45	%		0.52	%
Supplemental data
Portfolio turnover rate		27	%		142	%		66	%		60	%		22	%		75	%
Net assets, end of period (000s omitted)		$1,347			$4,355			$4,893			$5,110			$10,498			$11,182

¹  For the five months ended March 31, 2014. The Fund changed its fiscal year end from October 31 to March 31, effective March 31, 2014.

²  Calculated based upon average shares outstanding

³  Amount is less than $0.005.

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

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

Financial highlights Wells Fargo Intrinsic Small Cap Value Fund 21

(For a share outstanding throughout each period)

	Year ended March 31															Year ended October 31, 2013
INSTITUTIONAL CLASS	2018			2017			2016			2015			20141
Net asset value, beginning of period		$29.73			$24.13			$26.22			$24.19			$22.78			$16.32
Net investment income (loss)		0.03	2		(0.07	)2		0.33			0.14	2		0.06	2		0.12	2
Net realized and unrealized gains (losses) on investments		2.69			5.89			(2.17	)		1.99			1.39			6.34
Total from investment operations		2.72			5.82			(1.84	)		2.13			1.45			6.46
Distributions to shareholders from
Net investment income		0.00			(0.22	)		(0.25	)		(0.10	)		(0.04	)		0.00
Net asset value, end of period		$32.45			$29.73			$24.13			$26.22			$24.19			$22.78
Total return3		9.15	%		24.14	%		(7.02	)%		8.83	%		6.50	%		39.40	%
Ratios to average net assets (annualized)
Gross expenses		1.21	%		1.15	%		1.12	%		1.03	%		1.15	%		1.10	%
Net expenses		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%
Net investment income (loss)		0.08	%		(0.26	)%		1.10	%		0.57	%		0.64	%		0.58	%
Supplemental data
Portfolio turnover rate		27	%		142	%		66	%		60	%		22	%		75	%
Net assets, end of period (000s omitted)		$28,032			$59,991			$71,072			$84,563			$79,312			$71,934

¹  For the five months ended March 31, 2014. The Fund changed its fiscal year end from October 31 to March 31, effective March 31, 2014.

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 Intrinsic Small 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 Intrinsic Small Cap Value Fund (the “Fund”) which is a diversified series of the Trust.

2. SIGNIFICANT ACCOUNTING POLICIES

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

Securities valuation

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

Equity securities that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price. If no sale occurs on the primary exchange or market that day, the prior day’s price will be deemed “stale” and a fair value price will be determined in accordance with the Fund’s Valuation Procedures.

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

Investments which are not valued using any of the methods discussed above are valued at their fair value, as determined in good faith by the Board of Trustees of the Fund. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Wells Fargo Asset Management Pricing Committee at 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 Wells Fargo Asset Management Pricing Committee 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 adviser 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.

Securities lending

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

Notes to financial statements Wells Fargo Intrinsic Small Cap Value Fund 23

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, if any, is included in income from affiliated 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 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 any net realized gains are recorded on the ex-dividend date and paid at least annually. 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 at year end.

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 March 31, 2018, the aggregate cost of all investments for federal income tax purposes was $71,543,058 and the unrealized gains (losses) consisted of:

Gross unrealized gains	$	17,165,646
Gross unrealized losses		(3,186,916	)
Net unrealized gains	$	13,978,730

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The primary permanent differences causing such reclassifications are due to expiration of capital loss carryforwards and net operating losses. At March 31, 2018, 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
$(365,228)	$122,689	$242,539

24 Wells Fargo Intrinsic Small Cap Value Fund Notes to financial statements

Class allocations

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

3. FAIR VALUATION MEASUREMENTS

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

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

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

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

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

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of March 31, 2018:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	7,375,058	$	0	$	0	$	7,375,058
Consumer staples		438,727		0		0		438,727
Energy		5,751,870		0		0		5,751,870
Financials		21,512,985		0		0		21,512,985
Health care		10,026,872		0		0		10,026,872
Industrials		15,808,577		0		0		15,808,577
Information technology		9,659,722		0		0		9,659,722
Materials		2,943,307		0		0		2,943,307
Real estate		6,531,009		0		0		6,531,009
Short-term investments
Investment companies		893,311		0		0		893,311
Investments measured at net asset value*								4,580,350
Total assets	$	80,941,438	$	0	$	0	$	85,521,788

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amount presented in the table is intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statement of Assets and Liabilities. The Fund’s investment in Securities Lending Cash Investments, LLC valued at $4,580,350 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At March 31, 2018, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

Notes to financial statements Wells Fargo Intrinsic Small Cap Value Fund 25

4. TRANSACTIONS WITH AFFILIATES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo, is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the subadviser, providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.85% and declining to 0.71% as the average daily net assets of the Fund increase. For the year ended March 31, 2018, the management fee was equivalent to an annual rate of 0.85% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. WellsCap is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.55% and declining to 0.40% as the average daily net assets of the Fund increase.

Administration fees

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

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

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through July 31, 2018 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 1.35% for Class A shares, 2.10% for Class C shares, 1.20% for Administrator Class shares, and 1.00% for Institutional Class shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

Distribution fee

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

In addition, Funds Distributor is 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 March 31, 2018, Funds Distributor received $623 from the sale of Class A shares. No contingent deferred sales charges were incurred by Class A and Class C for the year ended March 31, 2018.

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 is 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 under 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.

26 Wells Fargo Intrinsic Small Cap Value Fund Notes to financial statements

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended March 31, 2018 were $22,688,620 and $63,546,888, 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.

During the year ended March 31, 2018, the Fund had average borrowings outstanding of $75,158 at an average rate of 2.21% and paid interest in the amount of $1,661.

7. DISTRIBUTIONS TO SHAREHOLDERS

For the year ended March 31, 2018, the Fund did not have any distributions paid to shareholders. The tax character of distributions paid for the year ended March 31, 2017 was $744,658 of ordinary income.

As of March 31, 2018, distributable earnings on a tax basis consisted of $13,978,730 in unrealized gains.

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 Intrinsic Small Cap Value Fund 27

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of the Wells Fargo Intrinsic Small Cap Value Fund (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, including the portfolio of investments, as of March 31, 2018, 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 related notes (collectively, the “financial statements”) and the financial highlights for each of the years in the four-year period then ended, the period from November 1, 2013 to March 31, 2014, and the year ended October 31, 2013. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of March 31, 2018, 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 noted above, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

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 are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of March 31, 2018, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.

We have not been able to determine the specific year that we began serving as the auditor of one or more Wells Fargo Funds investment companies, however we are aware that we have served as the auditor of one or more Wells Fargo Funds investment companies since at least 1955.

Boston, Massachusetts

May 23, 2018

28 Wells Fargo Intrinsic Small Cap Value Fund Other information (unaudited)

PROXY VOTING INFORMATION

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

PORTFOLIO HOLDINGS INFORMATION

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

Other information (unaudited) Wells Fargo Intrinsic Small 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 153 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; Chair Liaison, since 2018	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 the Glimmerglass Festival. She is also an inactive Chartered Financial Analyst.	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 Intrinsic Small 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; Governance Committee Chairman, since 2018	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; Chairman, since 2018; Vice Chairman, from 2017 to 2018	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
James G. Polisson***** (Born 1959)	Trustee, since 2018; Advisory Board Member, from 2017 to 2018	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. Trustee of the San Francisco Mechanics’ Institute, a non-profit organization, from 2013 to 2015. 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.	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. Trustee of the Evergreen Fund 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
Pamela Wheelock***** (Born 1959)	Trustee, since 2018; Advisory Board Member, from 2017 to 2018	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.	Asset Allocation Trust

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

** Jane Freeman became Chair Liaison effective January 1, 2018.

*** Olivia Mitchell became Chairman of the Governance Committee effective January 1, 2018.

**** Timothy Penny became Chairman effective January 1, 2018.

***** James Polisson and Pamela Wheelock each became a Trustee effective January 1, 2018.

Other information (unaudited) Wells Fargo Intrinsic Small 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.
Alexander Kymn* (Born 1973)	Secretary, since 2018; Chief Legal Officer, since 2018	Senior Company Counsel of Wells Fargo Bank, N.A. since 2018 (previously Senior Counsel from 2007 to 2018). Vice President of Wells Fargo Funds Management, LLC from 2008 to 2014.
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 77 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 76 funds and Assistant Treasurer of 77 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.

* Alexander Kymn became the Secretary and Chief Legal Officer effective April 17, 2018.

** David Messman was the Secretary and Chief Legal Officer until April 16, 2018.

32 Wells Fargo Intrinsic Small Cap Value Fund List of abbreviations

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

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

INR —  Indian rupee

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 Agency

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

SIFMA —  Securities Industry and Financial Markets Association

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

© 2018 Wells Fargo Funds Management, LLC. All rights reserved.

309981 05-18 A242/AR242 03-18

Annual Report

March 31, 2018

Wells Fargo Small Cap Core 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	23
Report of independent registered public accounting firm	28
Other information	29
List of abbreviations	33

The views expressed and any forward-looking statements are as of March 31, 2018, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Funds Management, LLC. Discussions of individual securities, or the markets generally, or any Wells Fargo Fund are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements. The views expressed are subject to change at any time in response to changing circumstances in the market. Wells Fargo Funds Management, LLC and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

2 Wells Fargo Small Cap Core Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

Dear Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Small Cap Core Fund for the 12-month period that ended March 31, 2018. During the last three quarters of 2017, investors enjoyed consistently rising equity values globally. Short-term interest rates tended to increase, while long-term rates remained flat to lower. During the final two months of the first quarter of 2018, equity market volatility returned, stocks reversed year-to-date gains, and bond yields rose while prices fell.

For the period, U.S. stocks, as measured by the S&P 500 Index,¹ gained 13.99% and international stocks, as measured by the MSCI ACWI ex USA Index (Net),² added 16.53%. Emerging market stocks, as measured by the MSCI EM Index (Net),³ added 24.93%. In bond markets, the Bloomberg Barclays U.S. Aggregate Bond Index⁴ added 1.20% and the Bloomberg Barclays Municipal Bond Index⁵ added 2.66% while fixed-income investments outside the U.S. gained 11.75%, according to the Bloomberg Barclays Global Aggregate ex-USD Index.⁶ The ICE BofAML U.S. High Yield Index⁷ earned 3.69%.

Through the last nine months of 2017, stocks advanced on synchronized global growth, which led to higher investor and consumer confidence. The first quarter of 2018 began with strong stock market gains in January. A strong January 2018 U.S. employment report and inflation concerns prompted equity volatility in February. Investor optimism for growth was supplanted with concerns over trade tensions, increased interest rates, and the prospect of new data privacy regulations.

Reactions to U.S. interest rate increases were uneven across the yield curve and globally.

The U.S. Federal Reserve (Fed) increased the federal funds rate three times during the 12-month period for a combined 75 basis points (bps; 100 bps equals 1.00%). Following an increase in March 2017, short-term bond yields in the U.S. rose while longer-term Treasury yields were little changed. Municipal bond returns were positive, helped by strong demand and constrained new-issue supply. The Fed raised the target interest rate once again in June 2017 to a range of 1.00% to 1.25%. Ten-year U.S. Treasury yields declined, the yield curve flattened, and long-term bond prices benefited.

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 indices or any securities or financial products. This report is not approved, reviewed, or produced by MSCI. You cannot invest directly in an index.

³ The MSCI Emerging Markets (EM) Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure large- and mid-cap equity market performance of emerging markets. The MSCI EM Index (Net) consists of the following 24 emerging market country indices: 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.

⁴  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.

⁵  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.

⁶  The Bloomberg Barclays Global Aggregate ex-USD Index 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.

⁷  The ICE BofAML U.S. High Yield Index is a market-capitalization-weighted index of domestic and Yankee high-yield bonds. The index tracks the performance of high-yield securities traded in the U.S. bond market. You cannot invest directly in an index. Copyright 2018. ICE Data Indices, LLC. All rights reserved.

Letter to shareholders (unaudited) Wells Fargo Small Cap Core Fund 3

Internationally, central banks maintained low interest rates and accommodative monetary policies that supported business activity and stock values in foreign markets. A weaker U.S. dollar was generally supportive of business activity in regions around the globe. The Bank of Japan continued its accommodative monetary policies, and industrial production, retail sales, and fixed asset investment increased in China.

Growth continued through the summer of 2017.

Globally, stocks moved higher during the third quarter of 2017. Low inflation and interest rates supported accelerating global economic growth and corporate earnings. Brief episodes of geopolitical tensions, often associated with North Korea’s advancing nuclear missile program, flaring conflicts in the Middle East, and uncertainty surrounding U.S. trade policies, did not discourage investing activity.

In the U.S., economic data released during the quarter reflected a generally healthy economy. Second-quarter economic output grew at a 3.1% annual rate. Stocks in international developed and emerging markets continued to benefit from improving economic growth.

Positive economic and market news continued as 2017 closed and 2018 began.

During the fourth quarter of 2017, stock markets continued the move higher. Third-quarter economic output in the U.S. grew at a 3.2% annual rate. The unemployment rate fell to a 17-year low of 4.1%. Tax reform passed and wage growth data improved, encouraging increased business and consumer spending.

Fed officials announced in October 2017 plans to begin unwinding its $4.5 trillion portfolio of bonds and other assets accumulated during rounds of quantitative easing conducted since the 2008–2009 recession. Still, restrained inflation kept long-term bond rates steady and the flattened yield curve persisted. The Fed raised the federal funds rate target to a range of 1.25% to 1.50% in December 2017 and began selling bonds held in its portfolio.

2018 opened with continued stock advances, then volatility.

Improving business and economic data globally continued to support stocks through January 2018. Political wrangling in the U.S. over budget resolutions could not dissuade investors from buying stocks as payrolls and factory orders increased. Long-term interest rates in the U.S. trended higher as the yield curve steepened—the 10-year Treasury rate moved from 2.46% to 2.84% and the 30-year rate moved from 2.81% to 3.08% during January 2018.

Investor sentiment shifted in February as inflation concerns emerged in the U.S. when readings from the Producer Price Index in January rose 2.5% year over year. During February, the U.S. market endured a loss from January’s high of nearly 12% before recovering much of that loss. The Fed raised the federal funds rate in March 2018. Bond yields rose across the yield curve.

During January 2018, purchasing managers’ indices in China, the eurozone, India, and Japan reported data for December that indicated continued growth. Despite positive economic signals and business fundamentals, international stock values fell during February and March 2018, swept up in the selling momentum in U.S. markets.

Globally, stocks moved higher during the third quarter of 2017.

During February, the U.S. market endured a loss from January’s high of nearly 12% before recovering much of that loss.

4 Wells Fargo Small Cap Core 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.

This page is intentionally left blank.

6 Wells Fargo Small Cap Core Fund Performance highlights (unaudited)

Investment objective

The Fund seeks long-term capital appreciation.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

John R. Campbell, CFA^®

Justin P. Carr, CFA^®

Greg W. Golden, CFA^®

Average annual total returns (%) as of March 31, 2018¹

		Including sales charge							Excluding sales charge							Expense ratios2 (%)
	Inception date	1 year			5 year		10 year		1 year			5 year		10 year		Gross		Net3
Class A (WOSCX)	5-20-2016		(8.76	)		7.68		6.04		(3.20	)*		8.97		6.67		1.49		1.35
Class C (WCSCX)	5-20-2016		(4.90	)		8.16		5.88		(3.93	)		8.16		5.88		2.24		2.10
Class R6 (WRSCX)	5-20-2016		–			–		–		(2.76	)*		9.39		7.06		1.06		0.90
Administrator Class (WNSCX)	5-20-2016		–			–		–		(3.15	)*		9.08		6.77		1.41		1.25
Institutional Class (WYSCX)	9-13-2005		–			–		–		(2.81	)		9.37		7.05		1.16		1.00
Russell 2000® Index4	–		–			–		–		11.79			11.47		9.84		–		–

* Total return differs from the return in the Financial Highlights in this report. The total return presented is calculated based on the NAV at which the shareholder transactions were processed. The NAV and total return presented in the Financial Highlights reflects certain adjustments made to the net assets of the Fund that are necessary under U.S. generally accepted accounting principles.

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

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

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

Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to foreign investment risk and smaller-company securities risk. Consult the Fund’s prospectus for additional information on these and other risks.

Please see footnotes on page 7.

Performance highlights (unaudited) Wells Fargo Small Cap Core Fund 7

Growth of $10,000 investment as of March 31, 2018⁵

¹  Historical performance shown for the Class A, Class C, and Administrator Class shares prior to their inception reflects the performance of the Institutional Class shares, and are adjusted to reflect Class A, Class C, and Administrator shares expenses, respectively. Historical performance shown for the Class R6 shares prior to their inception reflects the performance of the Institutional Class shares, and has not been adjusted to reflect the expenses of the Class R6 shares. If these expenses had been included, returns for Class R6 shares would be higher. Historical performance shown for all classes of the Fund prior to May 20, 2016 is based on the performance of the Fund’s predecessor, Golden Small Cap Core Fund.

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

³  The manager has contractually committed through July 31, 2019, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee 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 (if any), 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 (the total annual fund operating expenses after fee waivers) as stated in the prospectuses.

⁴  The Russell 2000^® Index measures the performance of the 2,000 smallest companies in the Russell 3000^® Index, which represents approximately 8% of the total market capitalization of the Russell 3000^® Index. You cannot invest directly in an index.

⁵  The chart compares the performance of Class A shares for the most recent ten years with the Russell 2000^® Index. The chart assumes a hypothetical 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 Small Cap Core Fund Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

∎ The Fund underperformed its benchmark, the Russell 2000^® Index, for the 12-month period that ended March 31, 2018.

∎ Stock selection was a detractor in 9 of the 10 sectors in which the Fund held investments, with the weakest results in information technology (IT), health care, consumer discretionary, and industrials. Stock selection added value in the materials sector.

∎ Sector exposures contributed positively to the Fund’s relative performance. An overweight to health care and an underweight to real estate were the most beneficial. An overweight to IT and a modest cash position were the top detracting allocations.

∎ The Fund was positioned with overweight exposures to health care, industrials, and IT. It had underweight exposures to real estate, financials, and energy. Other sector exposures were within 1% of the benchmark.

Ten largest holdings (%) as of March 31, 20186
Magellan Health Services Incorporated	2.26
ICU Medical Incorporated	2.23
The Greenbrier Companies Incorporated	2.20
EMCOR Group Incorporated	2.13
Insperity Incorporated	2.09
Ruth’s Chris Steak House Incorporated	2.04
Encompass Health Corporation	2.03
Applied Industrial Technologies Incorporated	2.01
FCB Financial Holdings Class A	2.00
Brooks Automation Incorporated	2.00

Selected stocks detracted from relative performance

Stock selection led to the Fund’s underperformance. The top detractors were Nutrisystem, Incorporated; Westmoreland Coal Company; and Sanmina Corporation. Nutrisystem is a leading provider of weight-management products and services, including the Nutrisystem and South Beach Diet brands. Its shares declined after the company reported disappointing fourth-quarter 2017 earnings per share (EPS). Management noted a slower-than-expected start to diet season results, which it attributed to a poor response to the company’s marketing campaign. Management issued guidance for fiscal-year 2018 earnings with the midpoint of the guided EPS range nearly 13% below the consensus estimate. This was viewed as a temporary and fixable setback, and management said it expected a return to meaningful growth in 2019.

Westmoreland Coal was added and removed as a Fund holding in 2017. In addition to its attractiveness from our model’s perspective, we anticipated reduced regulatory pressures and a push for energy development to provide a healthy environment for coal companies. Those expectations did not materialize. Westmoreland’s operating earnings for second-quarter 2017 failed to meet analysts’ estimates, and it lowered guidance for fiscal 2017 results. Management cited an unfavorable sales mix and higher costs as factors that weighed on performance.

Sanmina is a leading producer of optical, electronic, and mechanical products. The company reported disappointing financial results in the second half of calendar-year 2017, and management cited slower-than-expected new program ramps and an unfavorable program mix. We sold our position in January 2018.

There were some notable positive contributors, including ICU Medical, Incorporated; Insperity, Incorporated; and Supernus Pharmaceuticals, Incorporated.

Our investment process seeks to identify attractively valued companies likely to exceed earnings expectations.

Our investment process, which we refer to as an active-quant approach, combines quantitative and qualitative evaluations of each company being considered. Our quantitative evaluation looks at valuation, earnings, and momentum-related factors to produce an objective, unbiased review of each company in the investment universe and its ranking compared with other companies being considered. A company’s ranking is the primary basis for our buy and sell decisions. We also place a high value on qualitative analysis; our investment professionals evaluate each company in light of overall market conditions and the company’s potential impact on the Fund from a risk/reward perspective. We have developed measurement tools and have tailored our investment process in support of two key tenets of our investment philosophy: Companies purchased should be available at a reasonable price, and they should be profitable and capable of increasing revenues and earnings.

Please see footnotes on page 7.

Performance highlights (unaudited) Wells Fargo Small Cap Core Fund 9

We believe our process will continue to uncover potentially attractive investment opportunities.

In 2017 and the first quarter of 2018, investors favored companies producing strong earnings growth and did not seem to be deterred by the elevated valuations of many of these companies. While we expect earnings growth to be the primary market driver in coming quarters, we think it is unlikely the market’s price/earnings multiple will expand much given elevated valuation levels and rising interest rates. We believe a renewed focus on valuations will benefit our investment strategy.

Inflation and the interest rate environment are likely to be a focus for investors in 2018. We expect the Federal Open Market Committee’s measured path of monetary policy normalization to continue under the committee’s new chairman, Jerome Powell. While we see inflation trending higher, we do not anticipate a sharp increase over the course of 2018.

Trade policies, including tariffs, ought to be monitored; however, a relatively weak U.S. dollar and a strong global backdrop should support exports. Domestic demand could benefit from fiscal stimulus.

Though we are mindful of how political and macroeconomic environments evolve, including their impact on expectations for corporate earnings and investors’ risk appetites, we will maintain focus on company fundamentals.

Sector distribution as of March 31, 2018⁷

Please see footnotes on page 7.

10 Wells Fargo Small Cap Core Fund Fund expenses (unaudited)

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

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from October 1, 2017 to March 31, 2018.

Actual expenses

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

Hypothetical example for comparison purposes

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

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

	Beginning account value 10-1-2017		Ending account value 3-31-2018		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	948.10	$	6.56		1.35	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.20	$	6.79		1.35	%
Class C
Actual	$	1,000.00	$	944.30	$	10.18		2.10	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,014.46	$	10.55		2.10	%
Class R6
Actual	$	1,000.00	$	950.00	$	4.38		0.90	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.44	$	4.54		0.90	%
Administrator Class
Actual	$	1,000.00	$	948.50	$	6.07		1.25	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.70	$	6.29		1.25	%
Institutional Class
Actual	$	1,000.00	$	950.00	$	4.86		1.00	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.95	$	5.04		1.00	%

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

Portfolio of investments—March 31, 2018 Wells Fargo Small Cap Core Fund 11

Security name	Shares		Value
Common Stocks: 99.61%
Consumer Discretionary: 13.88%
Auto Components: 4.62%
LCI Industries		10,301	$	1,072,849
Tenneco Incorporated		21,340		1,170,926
Tower International Incorporated		31,440		872,460
				3,116,235
Automobiles: 1.31%
Winnebago Industries Incorporated		23,480		882,848
Hotels, Restaurants & Leisure: 2.04%
Ruth’s Chris Steak House Incorporated		56,204		1,374,188
Internet & Direct Marketing Retail: 1.08%
Nutrisystem Incorporated		27,125		731,019
Multiline Retail: 1.50%
Big Lots Stores Incorporated «		23,292		1,013,901
Specialty Retail: 1.90%
Children’s Place Retail Stores Incorporated		9,503		1,285,281
Textiles, Apparel & Luxury Goods: 1.43%
Skechers U.S.A. Incorporated Class A †		24,834		965,794
Consumer Staples: 1.70%
Food Products: 1.70%
Sanderson Farms Incorporated		9,622		1,145,210
Energy: 1.73%
Energy Equipment & Services: 1.73%
C&J Energy Services Incorporated †		45,289		1,169,362
Financials: 16.18%
Banks: 3.85%
FCB Financial Holdings Class A †		26,474		1,352,821
First Merchants Corporation		29,908		1,247,164
				2,599,985
Capital Markets: 5.75%
Brightsphere Investment Group Incorporated		80,163		1,263,369
Evercore Partners Incorporated Class A		15,084		1,315,325
Houlihan Lokey Incorporated		29,221		1,303,257
				3,881,951

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

12 Wells Fargo Small Cap Core Fund Portfolio of investments—March 31, 2018

Security name	Shares		Value
Insurance: 6.58%
Heritage Insurance Holdings Incorporated «		69,759	$	1,057,546
National General Holdings Corporation		52,166		1,268,155
Third Point Reinsurance Limited †		69,492		969,413
Universal Insurance Holdings Company		35,982		1,147,826
				4,442,940
Health Care: 19.18%
Biotechnology: 1.11%
MiMedx Group Incorporated Ǡ		107,305		747,916
Health Care Equipment & Supplies: 5.57%
ICU Medical Incorporated †		5,958		1,503,799
OraSure Technologies Incorporated †		64,607		1,091,212
Orthofix International NV †		19,809		1,164,373
				3,759,384
Health Care Providers & Services: 5.97%
Encompass Health Corporation		23,931		1,368,135
Magellan Health Services Incorporated †		14,276		1,528,960
Tivity Health Incorporated †		28,533		1,131,333
				4,028,428
Life Sciences Tools & Services: 1.36%
Syneos Health Incorporated †		25,967		921,829
Pharmaceuticals: 5.17%
Catalent Incorporated †		27,097		1,112,603
Corcept Therapeutics Incorporated Ǡ		62,841		1,033,734
Supernus Pharmaceuticals Incorporated †		29,417		1,347,299
				3,493,636
Industrials: 20.09%
Commercial Services & Supplies: 4.98%
ACCO Brands Corporation		87,171		1,093,996
SP Plus Corporation †		30,174		1,074,194
UniFirst Corporation		7,397		1,195,725
				3,363,915
Construction & Engineering: 4.93%
Argan Incorporated		19,137		821,934
EMCOR Group Incorporated		18,442		1,437,185
MasTec Incorporated †		22,749		1,070,340
				3,329,459
Machinery: 3.76%
EnPro Industries Incorporated		13,577		1,050,588
The Greenbrier Companies Incorporated «		29,607		1,487,752
				2,538,340

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

Portfolio of investments—March 31, 2018 Wells Fargo Small Cap Core Fund 13

Security name	Shares		Value
Professional Services: 2.95%
Insperity Incorporated		20,319	$	1,413,186
RPX Corporation		53,931		576,522
				1,989,708
Trading Companies & Distributors: 3.47%
Applied Industrial Technologies Incorporated		18,576		1,354,190
Rush Enterprises Incorporated †		23,338		991,632
				2,345,822
Information Technology: 16.17%
Electronic Equipment, Instruments & Components: 4.60%
Kemet Corporation †		55,535		1,006,850
Methode Electronics Incorporated		24,479		957,129
Synnex Corporation		9,610		1,137,824
				3,101,803
Internet Software & Services: 1.49%
Appfolio Incorporated Class A †		24,651		1,006,993
IT Services: 3.68%
Hackett Group Incorporated		72,479		1,164,013
ManTech International Corporation Class A		23,841		1,322,460
				2,486,473
Semiconductors & Semiconductor Equipment: 6.40%
Advanced Energy Industries Incorporated †		16,533		1,056,459
Brooks Automation Incorporated		49,820		1,349,126
Cirrus Logic Incorporated †		22,128		899,061
Ultra Clean Holdings Incorporated †		52,879		1,017,921
				4,322,567
Materials: 5.10%
Chemicals: 1.91%
Trinseo SA		17,451		1,292,247
Metals & Mining: 3.19%
Materion Corporation		22,130		1,129,737
Suncoke Energy Incorporated †		95,035		1,022,577
				2,152,314
Real Estate: 2.87%
Equity REITs: 2.87%
Ashford Hospitality Trust Incorporated		140,202		905,705
The Geo Group Incorporated		50,405		1,031,790
				1,937,495

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

14 Wells Fargo Small Cap Core Fund Portfolio of investments—March 31, 2018

Security name				Shares		Value
Utilities: 2.71%
Electric Utilities: 0.99%
Spark Energy Incorporated Class A «					56,784	$	672,890
Independent Power & Renewable Electricity Producers: 1.72%
NRG Yield Incorporated Class A					70,545		1,159,760
Total Common Stocks (Cost $57,663,232)							67,259,693
	Yield
Short-Term Investments: 6.98%
Investment Companies: 6.98%
Securities Lending Cash Investment LLC (l)(r)(u)		1.89	%		4,708,943		4,709,414
Total Short-Term Investments (Cost $4,709,414)							4,709,414

Total investments in securities (Cost $62,372,646)	106.59	%		71,969,107
Other assets and liabilities, net	(6.59	)		(4,446,508	)
Total net assets	100.00	%	$	67,522,599

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

† Non-income-earning security

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

(r) The investment is a non-registered investment 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		13,532,762		8,823,819		4,708,943	$	0	$	0	$	26,541	$	4,709,414
Wells Fargo Government Money Market Fund Select Class *		794,950		20,511,508		21,306,458		0		0		0		6,439		0
									$	0	$	0	$	32,980	$	4,709,414		6.98	%

* No longer held at the end of the period

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

Statement of assets and liabilities—March 31, 2018 Wells Fargo Small Cap Core Fund 15

Assets
Investments in unaffiliated securities (including $4,619,333, of securities loaned), at value (cost $57,663,232)		$	67,259,693
Investments in affiliated securities, at value (cost $4,709,414)			4,709,414
Receivable for investments sold			2,509,342
Receivable for Fund shares sold			397
Receivable for dividends			37,668
Receivable for securities lending income			12,759
Receivable from manager	��		29,496
Prepaid expenses and other assets			20,669
Total assets			74,579,438
Liabilities
Payable upon receipt of securities loaned			4,709,414
Due to custodian bank			2,208,652
Payable for Fund shares redeemed			80,261
Administration fees payable			4,022
Trustees’ fees and expenses payable			474
Distribution fee payable			301
Accrued expenses and other liabilities			53,715
Total liabilities			7,056,839
Total net assets		$	67,522,599
NET ASSETS CONSIST OF
Paid-in capital		$	58,336,026
Undistributed net investment income			105,535
Accumulated net realized losses on investments			(515,423	)
Net unrealized gains on investments			9,596,461
Total net assets		$	67,522,599
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A		$	806,137
Shares outstanding – Class A1			39,734
Net asset value per share – Class A			$20.29
Maximum offering price per share – Class A2			$21.53
Net assets – Class C		$	449,077
Shares outstanding – Class C1			22,426
Net asset value per share – Class C			$20.02
Net assets – Class R6		$	44,923,862
Shares outstanding – Class R61			2,195,970
Net asset value per share – Class R6			$20.46
Net assets – Administrator Class		$	135,525
Shares outstanding – Administrator Class1			6,668
Net asset value per share – Administrator Class			$20.33
Net assets – Institutional Class		$	21,207,998
Shares outstanding – Institutional Class1			1,038,074
Net asset value per share – Institutional Class			$20.43

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 Small Cap Core Fund Statement of operations—year ended March 31, 2018

Investment income
Dividends	$	846,364
Income from affiliated securities		32,980
Total investment income		879,344
Expenses
Management fee		655,846
Administration fees
Class A		1,524
Class C		865
Class R6		1,557
Administrator Class		179
Institutional Class		91,903
Shareholder servicing fees
Class A		1,814
Class C		1,030
Administrator Class		343
Distribution fee
Class C		3,089
Custody and accounting fees		19,612
Professional fees		55,714
Registration fees		113,798
Shareholder report expenses		35,628
Trustees’ fees and expenses		16,870
Other fees and expenses		10,795
Total expenses		1,010,567
Less: Fee waivers and/or expense reimbursements		(236,758	)
Net expenses		773,809
Net investment income		105,535
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on investments		8,151,237
Net change in unrealized gains (losses) on investments		(10,668,825	)
Net realized and unrealized gains (losses) on investments		(2,517,588	)
Net decrease in net assets resulting from operations	$	(2,412,053	)

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

Statement of changes in net assets Wells Fargo Small Cap Core Fund 17

	Year ended March 31, 2018						Year ended March 31, 20171						Year ended June 30, 20162
Operations
Net investment income (loss)				$	105,535					$	(35,541	)				$	285,872
Net realized gains (losses) on investments					8,151,237						5,996,629						(10,551,715	)
Net change in unrealized gains (losses) on investments					(10,668,825	)					15,099,348						(2,795,570	)
Net increase (decrease) in net assets resulting from operations					(2,412,053	)					21,060,436						(13,061,413	)
Distributions to shareholders from
Net investment income
Class A					0						(604	)					0	3
Class C					0						(175	)					0	3
Class R6					0						(284	)					0	3
Administrator Class					0						(256	)					0	3
Institutional Class					0						(215,546	)					(153,914	)
Total distributions to shareholders					0						(216,865	)					(153,914	)
Capital share transactions		Shares						Shares						Shares
Proceeds from shares sold
Class A		37,520			783,618			20,038			404,696			7,790	3		130,000	3
Class C		16,509			337,254			3,008			61,918			6,017	3		100,000	3
Class R6		2,403,202			49,394,331			0			0			6,017	3		100,000	3
Administrator Class		526			10,842			112			2,000			6,017	3		100,000	3
Institutional Class		439,875			9,607,302			249,066			4,819,045			5,103,153			91,283,720
					60,133,347						5,287,659						91,713,720
Reinvestment of distributions
Class A		0			0			30			604			0	3		0	3
Class C		0			0			9			175			0	3		0	3
Class R6		0			0			14			284			0	3		0	3
Administrator Class		0			0			13			256			0	3		0	3
Institutional Class		0			0			2,392			48,291			1,813			32,246
					0						49,610						32,246
Payment for shares redeemed
Class A		(18,944	)		(398,834	)		(6,700	)		(137,246	)		0	3		0	3
Class C		(1,955	)		(40,335	)		(1,162	)		(23,747	)		0	3		0	3
Class R6		(213,263	)		(4,357,007	)		0			0			0	3		0	3
Institutional Class		(3,401,750	)		(70,332,621	)		(2,874,456	)		(53,427,708	)		(2,992,788	)		(50,609,931	)
					(75,128,797	)					(53,588,701	)					(50,609,931	)
Net increase (decrease) in net assets resulting from capital share transactions					(14,995,450	)					(48,251,432	)					41,136,035
Total increase (decrease) in net assets					(17,407,503	)					(27,407,861	)					27,920,708
Net assets
Beginning of period					84,930,102						112,337,963						84,417,255
End of period				$	67,522,599					$	84,930,102					$	112,337,963
Undistributed net investment income				$	105,535					$	0					$	216,815

¹  For the nine months ended March 31, 2017. The Fund changed its fiscal year end from June 30 to March 31, effective March 31, 2017.

²  After the close of business on May 20, 2016, the Fund acquired the net assets of Golden Small Cap Core Fund, which became the accounting and performance survivor in the transaction. The information for the periods prior to May 20, 2016 is that of Golden Small Cap Core Fund.

³  For the period May 20, 2016 (commencement of class operations) to June 30, 2016.

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

18 Wells Fargo Small Cap Core Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended March 31						Year ended June 30, 20162
CLASS A	2018			20171
Net asset value, beginning of period		$20.95			$16.89			$16.62
Net investment income (loss)		(0.05	)3		(0.05	)3		0.01	3
Net realized and unrealized gains (losses) on investments		(0.61	)		4.15			0.26
Total from investment operations		(0.66	)		4.10			0.27
Distributions to shareholders from
Net investment income		0.00			(0.04	)		0.00
Net asset value, end of period		$20.29			$20.95			$16.89
Total return4		(3.15	)%		24.30	%		1.62	%
Ratios to average net assets (annualized)
Gross expenses		1.66	%		1.50	%		1.46	%
Net expenses		1.35	%		1.35	%		1.35	%
Net investment income (loss)		(0.25	)%		(0.32	)%		0.65	%
Supplemental data
Portfolio turnover rate		53	%		25	%		61	%
Net assets, end of period (000s omitted)		$806			$443			$132

¹  For the nine months ended March 31, 2017. The Fund changed its fiscal year end from June 30 to March 31, effective March 31, 2017.

²  For the period May 20, 2016 (commencement of class operations) to June 30, 2016.

³  Calculated based upon average shares outstanding.

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

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

Financial highlights Wells Fargo Small Cap Core Fund 19

(For a share outstanding throughout each period)

	Year ended March 31						Year ended June 30, 20162
CLASS C	2018			20171
Net asset value, beginning of period		$20.84			$16.87			$16.62
Net investment loss		(0.08	)		(0.12	)		(0.00	)3,4
Net realized and unrealized gains (losses) on investments		(0.74	)		4.12			0.25
Total from investment operations		(0.82	)		4.00			0.25
Distributions to shareholders from
Net investment income		0.00			(0.03	)		0.00
Net asset value, end of period5		$20.02			$20.84			$16.87
Total return5		(3.93	)%		23.70	%		1.50	%
Ratios to average net assets (annualized)
Gross expenses		2.41	%		2.24	%		2.21	%
Net expenses		2.10	%		2.10	%		2.10	%
Net investment loss		(0.98	)%		(1.10	)%		(0.27	)%
Supplemental data
Portfolio turnover rate		53	%		25	%		61	%
Net assets, end of period (000s omitted)		$449			$164			$102

¹  For the nine months ended March 31, 2017. The Fund changed its fiscal year end from June 30 to March 31, effective March 31, 2017.

²  For the period May 20, 2016 (commencement of class operations) to June 30, 2016.

³  Calculated based upon average shares outstanding

⁴  Amount is more than $(0.005).

⁵  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 Small Cap Core Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended March 31						Year ended June 30, 20162
CLASS R6	2018			20171
Net asset value, beginning of period		$21.03			$16.90			$16.62
Net investment income (loss)		(0.01	)		0.01			0.02	3
Net realized and unrealized gains (losses) on investments		(0.56	)		4.17			0.26
Total from investment operations		(0.57	)		4.18			0.28
Distributions to shareholders from
Net investment income		0.00			(0.05	)		0.00
Net asset value, end of period		$20.46			$21.03			$16.90
Total return4		(2.71	)%		24.73	%		1.68	%
Ratios to average net assets (annualized)
Gross expenses		2.15	%		1.06	%		1.03	%
Net expenses		0.90	%		0.90	%		0.90	%
Net investment income (loss)		(1.41	)%		0.09	%		0.93	%
Supplemental data
Portfolio turnover rate		53	%		25	%		61	%
Net assets, end of period (000s omitted)		$44,924			$127			$102

¹  For the nine months ended March 31, 2017. The Fund changed its fiscal year end from June 30 to March 31, effective March 31, 2017.

²  For the period May 20, 2016 (commencement of class operations) to June 30, 2016.

³  Calculated based upon average shares outstanding

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

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

Financial highlights Wells Fargo Small Cap Core Fund 21

(For a share outstanding throughout each period)

	Year ended March 31						Year ended June 30, 20162
ADMINISTRATOR CLASS	2018			20171
Net asset value, beginning of period		$20.98			$16.89			$16.62
Net investment income (loss)		(0.02	)		(0.04	)		0.01	3
Net realized and unrealized gains (losses) on investments		(0.63	)		4.17			0.26
Total from investment operations		(0.65	)		4.13			0.27
Distributions to shareholders from
Net investment income		0.00			(0.04	)		0.00
Net asset value, end of period		$20.33			$20.98			$16.89
Total return4		(3.10	)%		24.47	%		1.62	%
Ratios to average net assets (annualized)
Gross expenses		1.57	%		1.41	%		1.37	%
Net expenses		1.25	%		1.25	%		1.25	%
Net investment income (loss)		(0.13	)%		(0.26	)%		0.58	%
Supplemental data
Portfolio turnover rate		53	%		25	%		61	%
Net assets, end of period (000s omitted)		$136			$129			$102

¹  For the nine months ended March 31, 2017. The Fund changed its fiscal year end from June 30 to March 31, effective March 31, 2017.

²  For the period May 20, 2016 (commencement of class operations) to June 30, 2016.

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 Small Cap Core Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended March 31						Year ended June 30
INSTITUTIONAL CLASS	2018			20171			20162			20152			20142			20132
Net asset value, beginning of period		$21.02			$16.90			$18.71			$16.76			$13.57			$10.64
Net investment income (loss)		0.06	3		(0.01	)3		0.04	3		0.06	3		0.05	3		0.16	3
Net realized and unrealized gains (losses) on investments		(0.65	)		4.18			(1.83	)		1.92			3.36			2.77
Total from investment operations		(0.59	)		4.17			(1.79	)		1.98			3.41			2.93
Distributions to shareholders from
Net investment income		0.00			(0.05	)		(0.02	)		(0.03	)		(0.22	)		0.00
Net asset value, end of period		$20.43			$21.02			$16.90			$18.71			$16.76			$13.57
Total return4		(2.81	)%		24.67	%		(9.57	)%		11.80	%		25.21	%		27.54	%
Ratios to average net assets (annualized)
Gross expenses		1.24	%		1.16	%		1.11	%		1.10	%		1.10	%		1.10	%
Net expenses		1.00	%		1.00	%		1.09	%		1.10	%		1.10	%		1.10	%
Net investment income (loss)		0.26	%		(0.05	)%		0.25	%		0.37	%		0.30	%		1.32	%
Supplemental data
Portfolio turnover rate		53	%		25	%		61	%		57	%		68	%		52	%
Net assets, end of period (000s omitted)		$21,208			$84,067			$111,902			$84,417			$22,170			$20,093

¹  For the nine months ended March 31, 2017. The Fund changed its fiscal year end from June 30 to March 31, effective March 31, 2017.

²  After the close of business on May 20, 2016, the Fund acquired the net assets of Golden Small Cap Core Fund, which became the accounting and performance survivor in the transaction. The information for the periods prior to May 20, 2016 is that of Golden Small Cap Core Fund.

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 Small Cap Core 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 Small Cap Core Fund (the “Fund”) which is a diversified series of the Trust.

After the close of business on May 20, 2016, the net assets of Golden Small Cap Core Fund were acquired by the Fund, which was created to receive the assets of Golden Small Cap Core Fund, in an exchange for shares of the Fund. Institutional shares of Golden Small Cap Core Fund received shares of Institutional Class of the Fund in the transaction. Since Golden Small Cap Core Fund contributed all of the net assets and shareholders to the newly created Wells Fargo fund, the accounting and performance history of Golden Small Cap Core Fund has been carried forward in the financial statements contained herein.

2. SIGNIFICANT ACCOUNTING POLICIES

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

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 Wells Fargo Asset Management Pricing Committee at 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 Wells Fargo Asset Management Pricing Committee 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.

Securities lending

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

24 Wells Fargo Small Cap Core Fund Notes to financial statements

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, if any, is included in income from affiliated 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 any net realized gains are recorded on the ex-dividend date and paid at least annually. 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 at year end.

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 March 31, 2018, the aggregate cost of all investments for federal income tax purposes was $62,888,069 and the unrealized gains (losses) consisted of:

Gross unrealized gains	$	12,709,703
Gross unrealized losses		(3,628,665	)
Net unrealized gains	$	9,081,038

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 March 31, 2018, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Paid-in capital	Accumulated net realized losses on investments
$(45,471,391)	$45,471,391

Notes to financial statements Wells Fargo Small Cap Core 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 March 31, 2018:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	9,369,266	$	0	$	0	$	9,369,266
Consumer staples		1,145,210		0		0		1,145,210
Energy		1,169,362		0		0		1,169,362
Financials		10,924,876		0		0		10,924,876
Health care		12,951,193		0		0		12,951,193
Industrials		13,567,244		0		0		13,567,244
Information technology		10,917,836		0		0		10,917,836
Materials		3,444,561		0		0		3,444,561
Real estate		1,937,495		0		0		1,937,495
Utilities		1,832,650		0		0		1,832,650
Investments measured at net asset value*								4,709,414
Total assets	$	67,259,693	$	0	$	0	$	71,969,107

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amount presented in the table is intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statement of Assets and Liabilities. The Fund’s investment in Securities Lending Cash Investments, LLC valued at $4,709,414 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At March 31, 2018, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

4. TRANSACTIONS WITH AFFILIATES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo, 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

26 Wells Fargo Small Cap Core Fund Notes to financial statements

connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.85% and declining to 0.71% as the average daily net assets of the Fund increase. For the year ended March 31, 2018, the management fee was equivalent to an annual rate of 0.85% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. In connection with the completion of the merger of Golden Capital Management LLC into WellsCap on January 1, 2018, WellsCap became the subadviser to the Fund. The merger did not result in any change to the services provided to the Fund or to its strategies or fees and expenses. WellsCap is entitled to receive a fee from Funds Management at an annual rate starting at 0.55% and declining to 0.45% as the average daily net assets of the Fund increase.

Administration fees

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

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

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through July 31, 2019 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 1.35% for Class A shares, 2.10% for Class C shares, 0.90% for Class R6 shares, 1.25% for Administrator Class shares, and 1.00% for Institutional Class shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

Distribution fee

The Trust has adopted a distribution plan for Class C shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class C shares and paid to Wells Fargo Funds Distributor, LLC, 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 March 31, 2018, Funds Distributor received $873 from the sale of Class A. No contingent deferred sales charges were incurred by Class A and Class C shares for the year ended March 31, 2018.

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 under 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 Small Cap Core Fund 27

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended March 31, 2018 were $40,690,944 and $54,797,622, 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 March 31, 2018, there were no borrowings by the Fund under the agreement.

7. DISTRIBUTIONS TO SHAREHOLDERS

The tax characters of distributions paid were as follows:

	Year ended March 31				Year ended June 2016
	2018		2017*
Ordinary income	$	0	$	216,865	$	153,914

* For the nine months ended March 31, 2017. The Fund changed its fiscal year end from June 30 to March 31, effective March 31, 2017.

As of March 31, 2018, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Unrealized gains
$105,535	$9,081,038

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.

28 Wells Fargo Small Cap Core Fund Report of independent registered public accounting firm

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of the Wells Fargo Small Cap Core Fund (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, including the portfolio of investments, as of March 31, 2018, 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 from July 1, 2016 to March 31, 2017, and the year ended June 30, 2016, and the related notes (collectively, the “financial statements”), and the financial highlights for the year then ended, for the period from July 1, 2016 to March 31, 2017, and for the year ended June 30, 2016. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of March 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the years or periods noted above, and the financial highlights for each of the years or periods noted above, in conformity with U.S. generally accepted accounting principles. The financial highlights for each of the years in the three-year period ended June 30, 2015, were audited by other independent registered public accountants whose report, dated August 19, 2015, expressed an unqualified opinion on those financial highlights.

Basis for Opinion

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 are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of March 31, 2018, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.

We have not been able to determine the specific year that we began serving as the auditor of one or more Wells Fargo Funds investment companies, however we are aware that we have served as the auditor of one or more Wells Fargo Funds investment companies since at least 1955.

Boston, Massachusetts

May 23, 2018

Other information (unaudited) Wells Fargo Small Cap Core Fund 29

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 Small Cap Core Fund Other information (unaudited)

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 153 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; Chair Liaison, since 2018	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 the Glimmerglass Festival. She is also an inactive Chartered Financial Analyst.	Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. Chairman of the Board of CIGNA Corporation since 2009, and Director since 2005. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (charter school). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	CIGNA Corporation; Asset Allocation Trust
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, since 2008	Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant.	Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of the Corporate Governance Research Initiative and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust

Other information (unaudited) Wells Fargo Small Cap Core Fund 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; Governance Committee Chairman, since 2018	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; Chairman, since 2018; Vice Chairman, from 2017 to 2018	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
James G. Polisson***** (Born 1959)	Trustee, since 2018; Advisory Board Member, from 2017 to 2018	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. Trustee of the San Francisco Mechanics’ Institute, a non-profit organization, from 2013 to 2015. 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.	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. Trustee of the Evergreen Fund 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
Pamela Wheelock***** (Born 1959)	Trustee, since 2018; Advisory Board Member, from 2017 to 2018	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.	Asset Allocation Trust

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

** Jane Freeman became Chair Liaison effective January 1, 2018.

*** Olivia Mitchell became Chairman of the Governance Committee effective January 1, 2018.

**** Timothy Penny became Chairman effective January 1, 2018.

***** James Polisson and Pamela Wheelock each became a Trustee effective January 1, 2018.

32 Wells Fargo Small Cap Core 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.
Alexander Kymn* (Born 1973)	Secretary, since 2018; Chief Legal Officer, since 2018	Senior Company Counsel of Wells Fargo Bank, N.A. since 2018 (previously Senior Counsel from 2007 to 2018). Vice President of Wells Fargo Funds Management, LLC from 2008 to 2014.
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 77 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 76 funds and Assistant Treasurer of 77 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.

* Alexander Kymn became the Secretary and Chief Legal Officer effective April 17, 2018.

** David Messman was the Secretary and Chief Legal Officer until April 16, 2018.

List of abbreviations Wells Fargo Small Cap Core Fund 33

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

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

INR —  Indian rupee

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 Agency

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

SIFMA —  Securities Industry and Financial Markets Association

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

© 2018 Wells Fargo Funds Management, LLC. All rights reserved.

309982 05-18 A269/AR269 03-18

Annual Report

March 31, 2018

Wells Fargo Small Cap Opportunities 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	18
Statement of operations	19
Statement of changes in net assets	20
Financial highlights	21
Notes to financial statements	24
Report of independent registered public accounting firm	29
Other information	30
List of abbreviations	34

The views expressed and any forward-looking statements are as of March 31, 2018, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Funds Management, LLC. Discussions of individual securities, or the markets generally, or any Wells Fargo Fund are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements. The views expressed are subject to change at any time in response to changing circumstances in the market. Wells Fargo Funds Management, LLC and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

2 Wells Fargo Small Cap Opportunities Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

Dear Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Small Cap Opportunities Fund for the 12-month period that ended March 31, 2018. During the last three quarters of 2017, investors enjoyed consistently rising equity values globally. Short-term interest rates tended to increase, while long-term rates remained flat to lower. During the final two months of the first quarter of 2018, equity market volatility returned, stocks reversed year-to-date gains, and bond yields rose while prices fell.

For the period, U.S. stocks, as measured by the S&P 500 Index,¹ gained 13.99% and international stocks, as measured by the MSCI ACWI ex USA Index (Net),² added 16.53%. Emerging market stocks, as measured by the MSCI EM Index (Net),³ added 24.93%. In bond markets, the Bloomberg Barclays U.S. Aggregate Bond Index⁴ added 1.20% and the Bloomberg Barclays Municipal Bond Index⁵ added 2.66% while fixed-income investments outside the U.S. gained 11.75%, according to the Bloomberg Barclays Global Aggregate ex-USD Index.⁶ The ICE BofAML U.S. High Yield Index⁷ earned 3.69%.

Through the last nine months of 2017, stocks advanced on synchronized global growth, which led to higher investor and consumer confidence. The first quarter of 2018 began with strong stock market gains in January. A strong January 2018 U.S. employment report and inflation concerns prompted equity volatility in February. Investor optimism for growth was supplanted with concerns over trade tensions, increased interest rates, and the prospect of new data privacy regulations.

Reactions to U.S. interest rate increases were uneven across the yield curve and globally.

The U.S. Federal Reserve (Fed) increased the federal funds rate three times during the 12-month period for a combined 75 basis points (bps; 100 bps equals 1.00%). Following an increase in March 2017, short-term bond yields in the U.S. rose while longer-term Treasury yields were little changed. Municipal bond returns were positive, helped by strong demand and constrained new-issue supply. The Fed raised the target interest rate once again in June 2017 to a range of 1.00% to 1.25%. Ten-year U.S. Treasury yields declined, the yield curve flattened, and long-term bond prices benefited.

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 indices or any securities or financial products. This report is not approved, reviewed, or produced by MSCI. You cannot invest directly in an index.

³ The MSCI Emerging Markets (EM) Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure large- and mid-cap equity market performance of emerging markets. The MSCI EM Index (Net) consists of the following 24 emerging market country indices: 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.

⁴  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.

⁵  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.

⁶  The Bloomberg Barclays Global Aggregate ex-USD Index 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.

⁷  The ICE BofAML U.S. High Yield Index is a market-capitalization-weighted index of domestic and Yankee high-yield bonds. The index tracks the performance of high-yield securities traded in the U.S. bond market. You cannot invest directly in an index. Copyright 2018. ICE Data Indices, LLC. All rights reserved.

Letter to shareholders (unaudited) Wells Fargo Small Cap Opportunities Fund 3

Internationally, central banks maintained low interest rates and accommodative monetary policies that supported business activity and stock values in foreign markets. A weaker U.S. dollar was generally supportive of business activity in regions around the globe. The Bank of Japan continued its accommodative monetary policies, and industrial production, retail sales, and fixed asset investment increased in China.

Growth continued through the summer of 2017.

Globally, stocks moved higher during the third quarter of 2017. Low inflation and interest rates supported accelerating global economic growth and corporate earnings. Brief episodes of geopolitical tensions, often associated with North Korea’s advancing nuclear missile program, flaring conflicts in the Middle East, and uncertainty surrounding U.S. trade policies, did not discourage investing activity.

In the U.S., economic data released during the quarter reflected a generally healthy economy. Second-quarter economic output grew at a 3.1% annual rate. Stocks in international developed and emerging markets continued to benefit from improving economic growth.

Positive economic and market news continued as 2017 closed and 2018 began.

During the fourth quarter of 2017, stock markets continued the move higher. Third-quarter economic output in the U.S. grew at a 3.2% annual rate. The unemployment rate fell to a 17-year low of 4.1%. Tax reform passed and wage growth data improved, encouraging increased business and consumer spending.

Fed officials announced in October 2017 plans to begin unwinding its $4.5 trillion portfolio of bonds and other assets accumulated during rounds of quantitative easing conducted since the 2008–2009 recession. Still, restrained inflation kept long-term bond rates steady and the flattened yield curve persisted. The Fed raised the federal funds rate target to a range of 1.25% to 1.50% in December 2017 and began selling bonds held in its portfolio.

2018 opened with continued stock advances, then volatility.

Improving business and economic data globally continued to support stocks through January 2018. Political wrangling in the U.S. over budget resolutions could not dissuade investors from buying stocks as payrolls and factory orders increased. Long-term interest rates in the U.S. trended higher as the yield curve steepened—the 10-year Treasury rate moved from 2.46% to 2.84% and the 30-year rate moved from 2.81% to 3.08% during January 2018.

Investor sentiment shifted in February as inflation concerns emerged in the U.S. when readings from the Producer Price Index in January rose 2.5% year over year. During February, the U.S. market endured a loss from January’s high of nearly 12% before recovering much of that loss. The Fed raised the federal funds rate in March 2018. Bond yields rose across the yield curve.

During January 2018, purchasing managers’ indices in China, the eurozone, India, and Japan reported data for December that indicated continued growth. Despite positive economic signals and business fundamentals, international stock values fell during February and March 2018, swept up in the selling momentum in U.S. markets.

Globally, stocks moved higher during the third quarter of 2017.

During February, the U.S. market endured a loss from January’s high of nearly 12% before recovering much of that loss.

4 Wells Fargo Small Cap Opportunities 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.

This page is intentionally left blank.

6 Wells Fargo Small Cap Opportunities Fund Performance highlights (unaudited)

Investment objective

The Fund seeks long-term capital appreciation.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Schroder Investment Management North America Inc.

Portfolio managers

Jenny B. Jones

Robert Kaynor, CFA^®‡

Average annual total returns (%) as of March 31, 2018¹

								Expense ratios2 (%)
	Inception date	1 year		5 year		10 year		Gross		Net3
Class R6 (WSCJX)	10-31-2016		8.95		12.08		9.68		1.00		0.92
Administrator Class (NVSOX)	8-1-1993		8.52		11.84		9.57		1.35		1.27
Institutional Class (WSCOX)	10-31-2014		8.81		12.04		9.67		1.10		1.02
Russell 2000® Index4	–		11.79		11.47		9.84		–		–

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.

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. 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 Small Cap Opportunities Fund 7

Growth of $1,000,000 investment as of March 31, 2018⁵

^‡  Mr. Kaynor became a portfolio manager of the Fund on January 12, 2018.

¹  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 would be higher. 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. If these expenses had been included, returns for the Institutional Class shares would be higher.

²  Reflects the expense ratios as stated in the most recent prospectuses, which include the impact of 0.07% 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 July 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 0.85% for Class R6, 1.20% for Administrator Class, and 0.95% 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 (if any), 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 (the total annual fund operating expenses after fee waivers) as stated in the prospectuses.

⁴  The Russell 2000^® Index measures the performance of the 2,000 smallest companies in the Russell 3000^® Index, which represents approximately 8% of the total market capitalization of the Russell 3000^® Index. You cannot invest directly in an index.

⁵  The chart compares the performance of Administrator Class shares for the most recent ten years with the Russell 2000^® Index. The chart assumes a hypothetical investment of $1,000,000 in Administrator Class shares and reflects all operating expenses.

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 no longer held at the end of the reporting period.

8 Wells Fargo Small Cap Opportunities Fund Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

∎ The Fund underperformed its benchmark, the Russell 2000^® Index, for the 12-month period that ended March 31, 2018.

∎ Negative stock selection occurred most significantly within the health care, industrials, and consumer discretionary sectors. The Fund’s allocation to cash also hindered performance.

∎ The Fund benefited from positive stock selection in the energy, information technology (IT), and real estate sectors.

∎ The index rose by 11.79% for the reporting period. The broader market was driven by large-cap, growth, and momentum stocks.

A strong economy and tax bill stimulus sent U.S. stocks climbing higher.

The U.S. economy was generally positive, as seen in a number of data points. The employment picture remained strong. The Institute for Supply Management Nonmanufacturing Index remained in expansionary territory. Small business confidence (as measured by the National Federation of Independent Business Optimism Index) set an average-monthly-optimism record over the period (there is a 45-year history for this measure). One highlight was third-quarter gross domestic product expanding at a 3.2% annual rate ahead of the 2.6% consensus. The year ended with retail sales rising ahead of consensus, with global Purchasing Managers’ Index readings also strong. The government also is adding stimulus to the economy from the recently passed $1.3 trillion U.S. budget. However, the period ended with a spike in volatility as talks of tariffs and trade wars have spooked investors.

We made several changes to the Fund’s portfolio during the period.

The most noteworthy change to the Fund’s portfolio during the period was a weighting shift in the Fund’s health care sector from a slight underweight to a more significant underweight. This was due to a surge in the biotechnology sector, which rallied over 34% in the period (within the index) and now accounts for 39% of the index’s health care sector weight. The Fund increased its exposure to both the IT and financials sectors over the quarter. Within financials, the Fund added new positions in regional banks CenterState Bank Corporation, Union Bankshares Corporation, and First Merchants Corporation. The Fund also purchased two new stocks in internet services and software IT services: Carbonite, Incorporated, and CSG Systems International, Incorporated.

Ten largest holdings (%) as of March 31, 20186
Chemical Financial Corporation	1.41
First Citizens BancShares Corporation Class A	1.30
Terreno Realty Corporation	1.29
CoreLogic Incorporated	1.29
Hexcel Corporation	1.29
ServiceMaster Global Holdings Incorporated	1.29
Entegris Incorporated	1.29
Catalent Incorporated	1.26
Cavco Industries Incorporated	1.24
Ashland Global Holdings Incorporated	1.24

Stock selection in the health care and consumer discretionary sectors detracted from Fund performance.

Stock selection was negative for the reporting period, especially in the health care and consumer discretionary sectors. The lag in consumer discretionary was largely due to our position in AMC Entertainment Holdings, Incorporated*. Within health care, underperformance was a result of an underweight to the biotechnology industry, which rose over 34% within the index during the period, as well as stock selection. The Fund’s position in Otonomy, Incorporated*, and not holding Kite Pharma, Incorporated, and Nektar Therapeutics detracted from returns. The strategy’s average cash position of 7.4% also detracted from returns.

Holdings within the energy sector contributed to the Fund’s performance for the period, as did select IT holdings.

Key stock contributors were led by Match Group, Incorporated; Catalent, Incorporated; and ON Semiconductor Corporation. Match Group, a provider of online dating services, is continuing to add value after reporting a series of better-than-expected earnings results. Match Group’s Tinder Gold mobile application continues to deliver growth, and the core Match business has stabilized. Contract manufacturing organization Catalent outperformed after a competitor received a buyout offer at a significant premium and after reporting a series of strong earnings and reaffirming guidance. ON Semiconductor, a designer and manufacturer of semiconductor components, rallied after reporting strong earnings, specifically among industrials sector clients, as well as issuing solid forward guidance.

The strategy also benefited from underweights to real estate and consumer staples.

Please see footnotes on page 7.

Performance highlights (unaudited) Wells Fargo Small Cap Opportunities Fund 9

Sector distribution as of March 31, 2018⁷

Valuations and potential trade tariffs remain concerns.

The impact of the tax reform bill and the fiscal stimulus from the new budget has driven earnings expectations higher. As a result, valuations have come down.

An interesting point is that after a decade of monetary policy driving growth, fiscal policy is now in the driver’s seat. Key recent headlines from Washington, at least as far as the market is concerned, center on trade issues. The proposed tariffs on foreign steel and aluminum, plus the additional tariffs proposed on an undetermined set of Chinese products, have spooked investors. The Chinese have quickly responded in kind, albeit in a measured fashion. We remind our investors to look at what the U.S. administration does and to not get caught up in various

headlines and tweets. To the extent that tariffs and trade wars materialize, this may likely be to the disadvantage of U.S. large- cap stocks, as a larger percentage of their revenues come from non-U.S. sources (36%) than small-cap companies (18%).

Please see footnotes on page 7.

10 Wells Fargo Small Cap Opportunities Fund Fund expenses (unaudited)

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

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from October 1, 2017 to March 31, 2018.

Actual expenses

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

Hypothetical example for comparison purposes

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

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

	Beginning account value 10-1-2017		Ending account value 3-31-2018		Expenses paid during the period¹		Annualized net expense ratio
Class R6
Actual	$	1,000.00	$	1,023.31	$	4.29		0.85	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.69	$	4.28		0.85	%
Administrator Class
Actual	$	1,000.00	$	1,021.27	$	6.05		1.20	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.95	$	6.04		1.20	%
Institutional Class
Actual	$	1,000.00	$	1,022.80	$	4.79		0.95	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.19	$	4.78		0.95	%

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

Portfolio of investments—March 31, 2018 Wells Fargo Small Cap Opportunities Fund 11

Security name	Shares		Value
Common Stocks: 91.61%
Consumer Discretionary: 13.81%
Auto Components: 1.34%
Gentherm Incorporated †		39,131	$	1,328,497
Standard Motor Products Incorporated		23,503		1,118,038
				2,446,535
Diversified Consumer Services: 2.17%
Graham Holdings Company Class B		2,696		1,623,666
ServiceMaster Global Holdings Incorporated †		46,394		2,359,135
				3,982,801
Hotels, Restaurants & Leisure: 2.55%
Extended Stay America Incorporated		4,372		86,434
Jack in the Box Incorporated		7,657		653,372
Playags Incorporated †		50,634		1,177,747
Red Rock Resorts Incorporated Class A		30,571		895,119
The Cheesecake Factory Incorporated «		38,604		1,861,485
				4,674,157
Household Durables: 1.48%
Cavco Industries Incorporated †		13,045		2,266,569
Helen of Troy Limited †		5,063		440,481
				2,707,050
Leisure Products: 1.15%
The Brunswick Corporation		35,445		2,105,079
Media: 0.94%
Hemisphere Media Group Incorporated †		41,780		470,025
MDC Partners Incorporated Class A †		173,057		1,246,010
				1,716,035
Specialty Retail: 1.92%
Asbury Automotive Group Incorporated †		22,026		1,486,755
Caleres Incorporated		30,492		1,024,531
Hudson Limited Class A †«		63,669		1,012,974
				3,524,260
Textiles, Apparel & Luxury Goods: 2.26%
Oxford Industries Incorporated		29,475		2,197,656
Steven Madden Limited		44,364		1,947,580
				4,145,236
Consumer Staples: 2.05%
Food & Staples Retailing: 0.80%
Performance Food Group Company †		49,193		1,468,411

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

12 Wells Fargo Small Cap Opportunities Fund Portfolio of investments—March 31, 2018

Security name	Shares		Value
Food Products: 1.25%
Darling Ingredients Incorporated †		51,220	$	886,106
Hain Celestial Group Incorporated †		43,657		1,400,080
				2,286,186
Energy: 3.20%
Energy Equipment & Services: 1.29%
ProPetro Holding Corporation †«		94,135		1,495,805
Solaris Oilfield Infrastructure Incorporated Class A †		52,232		864,962
				2,360,767
Oil, Gas & Consumable Fuels: 1.91%
Centennial Resource Development Class A †«		42,458		779,104
Jagged Peak Energy Incorporated †		1,291		18,242
Ring Energy Incorporated †		14,578		209,194
SRC Energy Incorporated †		177,157		1,670,591
World Fuel Services Corporation		33,671		826,623
				3,503,754
Financials: 18.45%
Banks: 12.22%
CenterState Banks Incorporated		36,379		965,135
Chemical Financial Corporation		47,123		2,576,683
First Citizens BancShares Corporation Class A		5,767		2,383,155
First Horizon National Corporation		104,450		1,966,794
First Merchants Corporation		35,835		1,494,320
First Midwest Bancorp Incorporated		90,624		2,228,444
Heritage Financial Corporation		54,067		1,654,450
Lakeland Financial Corporation		22,047		1,019,233
Simmons First National Corporation Class A		40,684		1,157,460
Union Bankshares Corporation		17,856		655,494
United Community Bank		68,831		2,178,501
Univest Corporation of Pennsylvania		24,680		683,636
Westamerica Bancorporation «		20,197		1,173,042
Western Alliance Bancorp †		38,656		2,246,300
				22,382,647
Capital Markets: 0.85%
Golub Capital BDC Incorporated «		87,099		1,558,201
Diversified Financial Services: 0.83%
Compass Diversified Holdings		92,735		1,520,854
Insurance: 4.55%
Amerisafe Incorporated		25,032		1,383,018
Brown & Brown Incorporated		78,457		1,995,946
National General Holdings Corporation		89,282		2,170,445

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

Portfolio of investments—March 31, 2018 Wells Fargo Small Cap Opportunities Fund 13

Security name	Shares		Value
Insurance (continued)
ProAssurance Corporation		17,705	$	859,578
Reinsurance Group of America Incorporated		12,515		1,927,310
				8,336,297
Health Care: 9.56%
Biotechnology: 1.35%
Flexion Therapeutics Incorporated †«		42,297		947,876
Puma Biotechnology Incorporated †		7,394		503,162
Repligen Corporation †		28,363		1,026,173
				2,477,211
Health Care Equipment & Supplies: 3.37%
Dentsply Sirona Incorporated		20,615		1,037,141
DexCom Incorporated †«		18,753		1,390,722
K2M Group Holdings Incorporated †		59,905		1,135,200
Masimo Corporation †		10,390		913,801
Sientra Incorporated †«		41,837		404,145
The Cooper Companies Incorporated		4,132		945,443
West Pharmaceutical Services Incorporated		3,889		343,360
				6,169,812
Health Care Providers & Services: 0.31%
Patterson Companies Incorporated «		25,787		573,245
Health Care Technology: 0.42%
Teladoc Incorporated †«		18,896		761,509
Life Sciences Tools & Services: 1.98%
Bio-Techne Corporation		14,885		2,248,230
Syneos Health Incorporated †		39,009		1,384,820
				3,633,050
Pharmaceuticals: 2.13%
Akorn Incorporated †		27,339		511,513
Catalent Incorporated †		56,334		2,313,074
Evolus Incorporated †		39,808		359,466
Pacira Pharmaceuticals Incorporated †		22,688		706,731
				3,890,784
Industrials: 15.31%
Aerospace & Defense: 1.85%
Hexcel Corporation		36,582		2,362,831
Maxar Technologies Limited		22,053		1,019,951
				3,382,782
Airlines: 1.21%
Allegiant Travel Company		7,758		1,338,643
Spirit Airlines Incorporated †«		23,132		873,927
				2,212,570

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

14 Wells Fargo Small Cap Opportunities Fund Portfolio of investments—March 31, 2018

Security name	Shares		Value
Building Products: 1.05%
Fortune Brands Home & Security Incorporated		13,418	$	790,186
Simpson Manufacturing Company Incorporated		19,697		1,134,350
				1,924,536
Commercial Services & Supplies: 1.33%
Advanced Disposal Services Incorporated †		56,188		1,251,869
Covanta Holding Corporation		57,921		839,855
Knoll Incorporated		17,496		353,244
				2,444,968
Construction & Engineering: 1.87%
Dycom Industries Incorporated †		11,865		1,277,030
Valmont Industries Incorporated		14,666		2,145,636
				3,422,666
Electrical Equipment: 0.58%
Generac Holdings Incorporated †		23,106		1,060,796
Machinery: 4.43%
EnPro Industries Incorporated		14,478		1,120,308
ESCO Technologies Incorporated		28,817		1,687,235
Franklin Electric Company Incorporated		47,076		1,918,347
IDEX Corporation		13,461		1,918,327
Kornit Digital Limited †«		15,523		200,247
REV Group Incorporated		61,596		1,278,733
				8,123,197
Professional Services: 1.26%
ASGN Incorporated †		23,247		1,903,464
Exponent Incorporated		5,146		404,733
				2,308,197
Road & Rail: 0.91%
Ryder System Incorporated		22,871		1,664,780
Trading Companies & Distributors: 0.82%
MSC Industrial Direct Company Class A		6,140		563,099
Univar Incorporated †		33,769		937,090
				1,500,189
Information Technology: 17.19%
Communications Equipment: 1.87%
Acacia Communications Incorporated †«		31,292		1,203,490
Ciena Corporation †		85,897		2,224,732
				3,428,222

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

Portfolio of investments—March 31, 2018 Wells Fargo Small Cap Opportunities Fund 15

Security name	Shares		Value
Electronic Equipment, Instruments & Components: 1.88%
Arrow Electronics Incorporated †		12,038	$	927,167
Fabrinet †		51,556		1,617,827
Novanta Incorporated †		17,328		903,655
				3,448,649
Internet Software & Services: 2.31%
Carbonite Incorporated †		56,010		1,613,088
Match Group Incorporated †«		28,877		1,283,294
Shutterstock Incorporated †		3,191		153,647
Yelp Incorporated †		28,170		1,176,098
				4,226,127
IT Services: 5.57%
Acxiom Corporation †		51,032		1,158,937
CoreLogic Incorporated †		52,267		2,364,036
CSG Systems International Incorporated		33,977		1,538,818
EPAM Systems Incorporated †		16,783		1,921,989
Leidos Holdings Incorporated		26,049		1,703,605
WNS Holdings Limited †		33,500		1,518,555
				10,205,940
Semiconductors & Semiconductor Equipment: 3.61%
Entegris Incorporated		67,754		2,357,839
Integrated Device Technology Incorporated †		43,713		1,335,869
ON Semiconductor Corporation †		71,243		1,742,604
Versum Materials Incorporated		31,130		1,171,422
				6,607,734
Software: 1.95%
Cadence Design Systems Incorporated †		16,659		612,551
Fortinet Incorporated †		12,885		690,378
PTC Incorporated †		28,986		2,261,198
				3,564,127
Materials: 4.47%
Chemicals: 2.24%
Ashland Global Holdings Incorporated		32,468		2,265,942
Valvoline Incorporated		82,918		1,834,975
				4,100,917
Containers & Packaging: 1.41%
Ardagh Group SA «		50,463		942,649
Graphic Packaging Holding Company		106,854		1,640,209
				2,582,858
Metals & Mining: 0.82%
Pretium Resources Incorporated †«		66,604		443,583
Steel Dynamics Incorporated		23,816		1,053,144
				1,496,727

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

16 Wells Fargo Small Cap Opportunities Fund Portfolio of investments—March 31, 2018

Security name				Shares		Value
Real Estate: 5.42%
Equity REITs: 4.46%
Columbia Property Trust Incorporated					41,985	$	859,013
Douglas Emmett Incorporated					31,360		1,152,794
Equity Lifestyle Properties Incorporated					17,923		1,573,102
Gramercy Property Trust Incorporated					53,036		1,152,472
Mid-America Apartment Communities Incorporated					11,673		1,065,045
Terreno Realty Corporation					68,657		2,369,353
							8,171,779
Real Estate Management & Development: 0.96%
HFF Incorporated Class A					15,746		782,576
Kennedy Wilson Holdings Incorporated					56,246		978,680
							1,761,256
Utilities: 2.15%
Electric Utilities: 1.16%
IDACORP Incorporated					24,126		2,129,602
Multi-Utilities: 0.45%
Vectren Corporation					12,964		828,659
Water Utilities: 0.54%
SJW Corporation					18,659		983,516
Total Common Stocks (Cost $131,718,497)							167,804,675
	Yield
Short-Term Investments: 15.59%
Investment Companies: 15.59%
Securities Lending Cash Investment LLC (l)(r)(u)		1.89	%		13,754,682		13,756,058
Wells Fargo Government Money Market Fund Select Class (l)(u)		1.54			14,793,357		14,793,357
Total Short-Term Investments (Cost $28,549,415)							28,549,415

Total investments in securities (Cost $160,267,912)	107.20	%		196,354,090
Other assets and liabilities, net	(7.20	)		(13,179,716	)
Total net assets	100.00	%	$	183,174,374

† 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.

Portfolio of investments—March 31, 2018 Wells Fargo Small Cap Opportunities Fund 17

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		15,210,362		158,507,521		159,963,201		13,754,682	$	1,305	$	(1,184	)	$	389,516	$	13,756,058
Wells Fargo Government Money Market Fund Select Class		13,563,576		105,832,637		104,602,856		14,793,357		0		0			186,463		14,793,357
									$	1,305	$	(1,184	)	$	575,979	$	28,549,415		15.59	%

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

18 Wells Fargo Small Cap Opportunities Fund Statement of assets and liabilities—March 31, 2018

Assets
Investments in unaffiliated securities (including $13,710,653 of securities loaned), at value (cost $131,718,497)	$	167,804,675
Investments in affiliated securities, at value (cost $28,549,415)		28,549,415
Receivable for investments sold		2,503,815
Receivable for Fund shares sold		152,681
Receivable for dividends		174,351
Receivable for securities lending income		22,618
Prepaid expenses and other assets		39,148
Total assets		199,246,703
Liabilities
Payable upon receipt of securities loaned		13,754,688
Payable for investments purchased		1,810,775
Payable for Fund shares redeemed		269,423
Management fee payable		78,222
Due to custodian bank		69,614
Administration fees payable		19,669
Trustees’ fees and expenses payable		915
Accrued expenses and other liabilities		69,023
Total liabilities		16,072,329
Total net assets	$	183,174,374
NET ASSETS CONSIST OF
Paid-in capital	$	113,651,180
Undistributed net investment income		168,078
Accumulated net realized gains on investments		33,268,938
Net unrealized gains on investments		36,086,178
Total net assets	$	183,174,374
COMPUTATION OF NET ASSET VALUE PER SHARE
Net assets – Class R6	$	23,870,636
Shares outstanding – Class R61		1,054,846
Net asset value per share – Class R6		$22.63
Net assets – Administrator Class	$	91,506,188
Shares outstanding – Administrator Class1		4,062,410
Net asset value per share – Administrator Class		$22.53
Net assets – Institutional Class	$	67,797,550
Shares outstanding – Institutional Class1		2,999,116
Net asset value per share – Institutional Class		$22.61

¹  The Fund has an unlimited number of authorized shares.

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

Statement of operations—year ended March 31, 2018 Wells Fargo Small Cap Opportunities Fund 19

Investment income
Dividends (net of foreign withholding taxes of $9,549)	$	2,908,887
Securities lending income from affiliates, net		389,516
Income from affiliated securities		186,463
Total investment income		3,484,866
Expenses
Management fee		2,249,316
Administration fees
Class R6		1,361
Administrator Class		245,703
Institutional Class		92,411
Shareholder servicing fees
Administrator Class		470,952
Custody and accounting fees		11,869
Professional fees		47,372
Registration fees		71,737
Shareholder report expenses		38,526
Trustees’ fees and expenses		23,455
Other fees and expenses		11,653
Total expenses		3,264,355
Less: Fee waivers and/or expense reimbursements		(282,445	)
Net expenses		2,981,910
Net investment income		502,956
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		54,266,080
Affiliated securities		1,305
Net realized gains on investments		54,267,385
Net change in unrealized gains (losses) on:
Unaffiliated securities		(28,400,321	)
Affiliated securities		(1,184	)
Net change in unrealized gains (losses) on investments		(28,401,505	)
Net realized and unrealized gains (losses) on investments		25,865,880
Net increase in net assets resulting from operations	$	26,368,836

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

20 Wells Fargo Small Cap Opportunities Fund Statement of changes in net assets

	Year ended March 31, 2018						Year ended March 31, 2017
Operations
Net investment income				$	502,956					$	1,060,402
Net realized gains on investments					54,267,385						28,776,630
Net change in unrealized gains (losses) on investments					(28,401,505	)					26,052,434
Net increase in net assets resulting from operations					26,368,836						55,889,466
Distributions to shareholders from
Net investment income
Class R6					(5,027	)					(166	)1
Administrator Class					(339,109	)					(757,254	)
Institutional Class					(183,973	)					(205,414	)
Net realized gains
Class R6					(260,359	)					(2,149	)1
Administrator Class					(27,052,520	)					(19,845,550	)
Institutional Class					(10,040,057	)					(2,743,894	)
Total distributions to shareholders					(37,881,045	)					(23,554,427	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class R6		1,016,892			23,696,710			68,165	1		1,622,149	1
Administrator Class		1,003,396			24,583,627			1,687,551			38,157,468
Institutional Class		1,609,570			39,079,106			2,357,789			54,583,111
					87,359,443						94,362,728
Reinvestment of distributions
Class R6		11,427			261,336			99	1		2,315	1
Administrator Class		1,202,741			27,387,299			876,609			20,454,367
Institutional Class		386,831			8,839,448			120,565			2,820,495
					36,488,083						23,277,177
Payment for shares redeemed
Class R6		(41,737	)		(978,591	)		0	1		0	1
Administrator Class		(7,857,302	)		(184,787,406	)		(5,357,915	)		(122,878,100	)
Institutional Class		(1,280,303	)		(30,434,668	)		(207,771	)		(4,880,539	)
					(216,200,665	)					(127,758,639	)
Net decrease in net assets resulting from capital share transactions					(92,353,139	)					(10,118,734	)
Total increase (decrease) in net assets					(103,865,348	)					22,216,305
Net assets
Beginning of period					287,039,722						264,823,417
End of period				$	183,174,374					$	287,039,722
Undistributed net investment income				$	168,078					$	257,825

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

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

Financial highlights Wells Fargo Small Cap Opportunities Fund 21

(For a share outstanding throughout each period)

	Year ended March 31
CLASS R6	2018			20171
Net asset value, beginning of period		$23.82			$22.43
Net investment income		0.07			0.14
Net realized and unrealized gains (losses) on investments		2.08			3.32
Total from investment operations		2.15			3.46
Distributions to shareholders from
Net investment income		(0.06	)		(0.14	)
Net realized gains		(3.28	)		(1.93	)
Total distributions to shareholders		(3.34	)		(2.07	)
Net asset value, end of period		$22.63			$23.82
Total return2		8.95	%		15.63	%
Ratios to average net assets (annualized)
Gross expenses		1.06	%		0.92	%
Net expenses		0.85	%		0.85	%
Net investment income		0.14	%		0.67	%
Supplemental data
Portfolio turnover rate		48	%		73	%
Net assets, end of period (000s omitted)		$23,871			$1,626

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

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

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

22 Wells Fargo Small Cap Opportunities Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended March 31															Year ended October 31, 2013
ADMINISTRATOR CLASS	2018			2017			2016			2015			20141
Net asset value, beginning of period		$23.79			$21.15			$25.19			$37.93			$42.43			$34.45
Net investment income		0.06			0.08	2		0.06			0.02			0.02			0.11
Net realized and unrealized gains (losses) on investments		2.00			4.56			(1.24	)		3.13			2.33			10.48
Total from investment operations		2.06			4.64			(1.18	)		3.15			2.35			10.59
Distributions to shareholders from
Net investment income		(0.04	)		(0.07	)		(0.02	)		0.00			(0.02	)		(0.08	)
Net realized gains		(3.28	)		(1.93	)		(2.84	)		(15.89	)		(6.83	)		(2.53	)
Total distributions to shareholders		(3.32	)		(2.00	)		(2.86	)		(15.89	)		(6.85	)		(2.61	)
Net asset value, end of period		$22.53			$23.79			$21.15			$25.19			$37.93			$42.43
Total return3		8.52	%		22.13	%		(4.39	)%		11.75	%		6.26	%		33.19	%
Ratios to average net assets (annualized)
Gross expenses		1.30	%		1.28	%		1.29	%		1.24	%		1.24	%		1.22	%
Net expenses		1.20	%		1.20	%		1.20	%		1.20	%		1.20	%		1.20	%
Net investment income		0.12	%		0.36	%		0.25	%		0.06	%		0.11	%		0.31	%
Supplemental data
Portfolio turnover rate		48	%		73	%		59	%		60	%		26	%		76	%
Net assets, end of period (000s omitted)		$91,506			$231,039			$264,560			$306,628			$471,330			$705,671

¹  For the five months ended March 31, 2014. The Fund changed its fiscal year end from October 31 to March 31, effective March 31, 2014.

²  Calculated based upon average shares outstanding

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

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

Financial highlights Wells Fargo Small Cap Opportunities Fund 23

(For a share outstanding throughout each period)

	Year ended March 31
INSTITUTIONAL CLASS	2018			2017			2016			20151
Net asset value, beginning of period		$23.82			$21.18			$25.22			$39.04
Net investment income		0.09			0.09			0.16	2		0.06
Net realized and unrealized gains (losses) on investments		2.03			4.61			(1.28	)		2.01
Total from investment operations		2.12			4.70			(1.12	)		2.07
Distributions to shareholders from
Net investment income		(0.05	)		(0.13	)		(0.08	)		0.00
Net realized gains		(3.28	)		(1.93	)		(2.84	)		(15.89	)
Total distributions to shareholders		(3.33	)		(2.06	)		(2.92	)		(15.89	)
Net asset value, end of period		$22.61			$23.82			$21.18			$25.22
Total return3		8.81	%		22.43	%		(4.12	)%		8.68	%
Ratios to average net assets (annualized)
Gross expenses		1.07	%		1.03	%		1.05	%		0.92	%
Net expenses		0.95	%		0.95	%		0.95	%		0.92	%
Net investment income		0.37	%		0.56	%		0.71	%		0.59	%
Supplemental data
Portfolio turnover rate		48	%		73	%		59	%		60	%
Net assets, end of period (000s omitted)		$67,798			$54,375			$263			$11

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

24 Wells Fargo Small Cap Opportunities 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 Small Cap Opportunities Fund (the “Fund”) which is a diversified series of the Trust.

2. SIGNIFICANT ACCOUNTING POLICIES

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

Securities valuation

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

Equity securities that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price. If no sale occurs on the principal exchange or market that day, 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 Wells Fargo Asset Management Pricing Committee at 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 Wells Fargo Asset Management Pricing Committee 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.

Securities lending

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

Notes to financial statements Wells Fargo Small Cap Opportunities Fund 25

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, if any, 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 any net realized gains are recorded on the ex-dividend date and paid at least annually. 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 at year end.

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 March 31, 2018, the aggregate cost of all investments for federal income tax purposes was $160,983,900 and the unrealized gains (losses) consisted of:

Gross unrealized gains	$	39,678,727
Gross unrealized losses		(4,308,537	)
Net unrealized gains	$	35,370,190

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 passive foreign investment companies and recognition of partnership income. At March 31, 2018, 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
$(10)	$(64,594)	$64,604

26 Wells Fargo Small Cap Opportunities Fund Notes to financial statements

Class allocations

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

3. FAIR VALUATION MEASUREMENTS

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

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

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

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

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

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of March 31, 2018:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	25,301,153	$	0	$	0	$	25,301,153
Consumer staples		3,754,597		0		0		3,754,597
Energy		5,864,521		0		0		5,864,521
Financials		33,797,999		0		0		33,797,999
Health care		17,505,611		0		0		17,505,611
Industrials		28,044,681		0		0		28,044,681
Information technology		31,480,799		0		0		31,480,799
Materials		8,180,502		0		0		8,180,502
Real estate		9,933,035		0		0		9,933,035
Utilities		3,941,777		0		0		3,941,777
Short-term investments
Investment companies		14,793,357		0		0		14,793,357
Investments measured at net asset value*								13,756,058
Total assets	$	182,598,032	$	0	$	0	$	196,354,090

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amount presented in the table is intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statement of Assets and Liabilities. The Fund’s investment in Securities Lending Cash Investments, LLC valued at $13,756,058 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At March 31, 2018, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

Notes to financial statements Wells Fargo Small Cap Opportunities Fund 27

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 0.85% and declining to 0.71% as the average daily net assets of the Fund increase. For the year ended March 31, 2018, the management fee was equivalent to an annual rate of 0.85% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. Schroder Investment Management North America Inc., 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 0.50% and declining to 0.45% as the average daily net assets of the Fund increase.

Administration fees

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

	Class-level administration fee
Class 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 July 31, 2018 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.85% for Class R6 shares, 1.20% for Administrator Class shares, and 0.95% 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.

Shareholder servicing fees

The Trust has entered into contracts with one or more shareholder servicing agents, whereby Administrator Class of the Fund is charged a fee at an annual rate of 0.25% of its average daily net assets.

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 under 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 March 31, 2018 were $117,267,063 and $227,799,362, 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.

28 Wells Fargo Small Cap Opportunities Fund Notes to financial statements

For the year ended March 31, 2018, there were no borrowings by the Fund under the agreement.

7. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended March 31, 2018 and March 31, 2017 were as follows:

	Year ended March 31
	2018		2017
Ordinary income	$	4,968,700	$	962,834
Long-term capital gain		32,912,345		22,591,593

As of March 31, 2018, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Undistributed long-term gain	Unrealized gains
$812,180	$33,340,824	$35,370,190

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 Small Cap Opportunities Fund 29

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of the Wells Fargo Small Cap Opportunities Fund (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, including the portfolio of investments, as of March 31, 2018, 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 related notes (collectively, the “financial statements”) and the financial highlights for each of the years in the four-year period then ended, the period from November 1, 2013 to March 31, 2014, and the year ended October 31, 2013. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of March 31, 2018, 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 noted above, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

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 are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of March 31, 2018, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.

We have not been able to determine the specific year that we began serving as the auditor of one or more Wells Fargo Funds investment companies, however we are aware that we have served as the auditor of one or more Wells Fargo Funds investment companies since at least 1955.

Boston, Massachusetts

May 23, 2018

30 Wells Fargo Small Cap Opportunities Fund Other information (unaudited)

TAX INFORMATION

For corporate shareholders, pursuant to Section 854 of the Internal Revenue Code, 52.64% of ordinary income dividends qualify for the corporate dividends-received deduction for the fiscal year ended March 31, 2018.

Pursuant to Section 852 of the Internal Revenue Code, $32,912,345 was designated as a 20% rate gain distribution for the fiscal year ended March 31, 2018.

Pursuant to Section 854 of the Internal Revenue Code, $2,610,665 of income dividends paid during the fiscal year ended March 31, 2018 has been designated as qualified dividend income (QDI).

For the fiscal year ended March 31, 2018, $8,720 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 March 31, 2018, $4,440,591 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 Small Cap Opportunities 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 153 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; Chair Liaison, since 2018	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 the Glimmerglass Festival. She is also an inactive Chartered Financial Analyst.	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 Small Cap Opportunities 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; Governance Committee Chairman, since 2018	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; Chairman, since 2018; Vice Chairman, from 2017 to 2018	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
James G. Polisson***** (Born 1959)	Trustee, since 2018; Advisory Board Member, from 2017 to 2018	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. Trustee of the San Francisco Mechanics’ Institute, a non-profit organization, from 2013 to 2015. 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.	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. Trustee of the Evergreen Fund 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
Pamela Wheelock***** (Born 1959)	Trustee, since 2018; Advisory Board Member, from 2017 to 2018	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.	Asset Allocation Trust

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

** Jane Freeman became Chair Liaison effective January 1, 2018.

*** Olivia Mitchell became Chairman of the Governance Committee effective January 1, 2018.

**** Timothy Penny became Chairman effective January 1, 2018.

***** James Polisson and Pamela Wheelock each became a Trustee effective January 1, 2018.

Other information (unaudited) Wells Fargo Small Cap Opportunities 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.
Alexander Kymn* (Born 1973)	Secretary, since 2018; Chief Legal Officer, since 2018	Senior Company Counsel of Wells Fargo Bank, N.A. since 2018 (previously Senior Counsel from 2007 to 2018). Vice President of Wells Fargo Funds Management, LLC from 2008 to 2014.
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 77 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 76 funds and Assistant Treasurer of 77 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.

* Alexander Kymn became the Secretary and Chief Legal Officer effective April 17, 2018.

** David Messman was the Secretary and Chief Legal Officer until April 16, 2018.

34 Wells Fargo Small Cap Opportunities 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

INR —  Indian rupee

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 Agency

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

SIFMA —  Securities Industry and Financial Markets Association

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

© 2018 Wells Fargo Funds Management, LLC. All rights reserved.

309983 05-18 A243/AR243 03-18

Annual Report

March 31, 2018

Wells Fargo Small Cap Value Fund

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	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	35

The views expressed and any forward-looking statements are as of March 31, 2018, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Funds Management, LLC. Discussions of individual securities, or the markets generally, or any Wells Fargo Fund are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements. The views expressed are subject to change at any time in response to changing circumstances in the market. Wells Fargo Funds Management, LLC and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

2 Wells Fargo Small Cap Value Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

Dear Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Small Cap Value Fund for the 12-month period that ended March 31, 2018. During the last three quarters of 2017, investors enjoyed consistently rising equity values globally. Short-term interest rates tended to increase, while long-term rates remained flat to lower. During the final two months of the first quarter of 2018, equity market volatility returned, stocks reversed year-to-date gains, and bond yields rose while prices fell.

For the period, U.S. stocks, as measured by the S&P 500 Index,¹ gained 13.99% and international stocks, as measured by the MSCI ACWI ex USA Index (Net),² added 16.53%. Emerging market stocks, as measured by the MSCI EM Index (Net),³ added 24.93%. In bond markets, the Bloomberg Barclays U.S. Aggregate Bond Index⁴ added 1.20% and the Bloomberg Barclays Municipal Bond Index⁵ added 2.66% while fixed-income investments outside the U.S. gained 11.75%, according to the Bloomberg Barclays Global Aggregate ex-USD Index.⁶ The ICE BofAML U.S. High Yield Index⁷ earned 3.69%.

Through the last nine months of 2017, stocks advanced on synchronized global growth, which led to higher investor and consumer confidence. The first quarter of 2018 began with strong stock market gains in January. A strong January 2018 U.S. employment report and inflation concerns prompted equity volatility in February. Investor optimism for growth was supplanted with concerns over trade tensions, increased interest rates, and the prospect of new data privacy regulations.

Reactions to U.S. interest rate increases were uneven across the yield curve and globally.

The U.S. Federal Reserve (Fed) increased the federal funds rate three times during the 12-month period for a combined 75 basis points (bps; 100 bps equals 1.00%). Following an increase in March 2017, short-term bond yields in the U.S. rose while longer-term Treasury yields were little changed. Municipal bond returns were positive, helped by strong demand and constrained new-issue supply. The Fed raised the target interest rate once again in June 2017 to a range of 1.00% to 1.25%. Ten-year U.S. Treasury yields declined, the yield curve flattened, and long-term bond prices benefited.

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 indices or any securities or financial products. This report is not approved, reviewed, or produced by MSCI. You cannot invest directly in an index.

³ The MSCI Emerging Markets (EM) Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure large- and mid-cap equity market performance of emerging markets. The MSCI EM Index (Net) consists of the following 24 emerging market country indices: 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.

⁴  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.

⁵  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.

⁶  The Bloomberg Barclays Global Aggregate ex-USD Index 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.

⁷  The ICE BofAML U.S. High Yield Index is a market-capitalization-weighted index of domestic and Yankee high-yield bonds. The index tracks the performance of high-yield securities traded in the U.S. bond market. You cannot invest directly in an index. Copyright 2018. ICE Data Indices, LLC. All rights reserved.

Letter to shareholders (unaudited) Wells Fargo Small Cap Value Fund 3

Internationally, central banks maintained low interest rates and accommodative monetary policies that supported business activity and stock values in foreign markets. A weaker U.S. dollar was generally supportive of business activity in regions around the globe. The Bank of Japan continued its accommodative monetary policies, and industrial production, retail sales, and fixed asset investment increased in China.

Growth continued through the summer of 2017.

Globally, stocks moved higher during the third quarter of 2017. Low inflation and interest rates supported accelerating global economic growth and corporate earnings. Brief episodes of geopolitical tensions, often associated with North Korea’s advancing nuclear missile program, flaring conflicts in the Middle East, and uncertainty surrounding U.S. trade policies, did not discourage investing activity.

In the U.S., economic data released during the quarter reflected a generally healthy economy. Second-quarter economic output grew at a 3.1% annual rate. Stocks in international developed and emerging markets continued to benefit from improving economic growth.

Positive economic and market news continued as 2017 closed and 2018 began.

During the fourth quarter of 2017, stock markets continued the move higher. Third-quarter economic output in the U.S. grew at a 3.2% annual rate. The unemployment rate fell to a 17-year low of 4.1%. Tax reform passed and wage growth data improved, encouraging increased business and consumer spending.

Fed officials announced in October 2017 plans to begin unwinding its $4.5 trillion portfolio of bonds and other assets accumulated during rounds of quantitative easing conducted since the 2008–2009 recession. Still, restrained inflation kept long-term bond rates steady and the flattened yield curve persisted. The Fed raised the federal funds rate target to a range of 1.25% to 1.50% in December 2017 and began selling bonds held in its portfolio.

2018 opened with continued stock advances, then volatility.

Improving business and economic data globally continued to support stocks through January 2018. Political wrangling in the U.S. over budget resolutions could not dissuade investors from buying stocks as payrolls and factory orders increased. Long-term interest rates in the U.S. trended higher as the yield curve steepened—the 10-year Treasury rate moved from 2.46% to 2.84% and the 30-year rate moved from 2.81% to 3.08% during January 2018.

Investor sentiment shifted in February as inflation concerns emerged in the U.S. when readings from the Producer Price Index in January rose 2.5% year over year. During February, the U.S. market endured a loss from January’s high of nearly 12% before recovering much of that loss. The Fed raised the federal funds rate in March 2018. Bond yields rose across the yield curve.

During January 2018, purchasing managers’ indices in China, the eurozone, India, and Japan reported data for December that indicated continued growth. Despite positive economic signals and business fundamentals, international stock values fell during February and March 2018, swept up in the selling momentum in U.S. markets.

Globally, stocks moved higher during the third quarter of 2017.

During February, the U.S. market endured a loss from January’s high of nearly 12% before recovering much of that loss.

4 Wells Fargo Small 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.

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6 Wells Fargo Small 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

Erik C. Astheimer

Michael Schneider, CFA^®

Average annual total returns (%) as of March 31, 2018¹

		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 (SMVAX)	11-30-2000		1.78		6.23		6.34		7.97		7.50		6.97		1.32		1.28
Class C (SMVCX)	11-30-2000		6.08		6.69		6.17		7.08		6.69		6.17		2.07		2.03
Class R6 (SMVRX)	6-28-2013		–		–		–		8.38		7.97		7.44		0.89		0.83
Administrator Class (SMVDX)	7-30-2010		–		–		–		8.18		7.72		7.22		1.24		1.08
Institutional Class (WFSVX)	7-31-2007		–		–		–		8.39		7.93		7.42		0.99		0.88
Russell 2000® Value Index4	–		–		–		–		5.13		9.96		8.61		–		–

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. The use of derivatives may reduce returns and/or increase volatility. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to foreign investment risk. Consult the Fund’s prospectus for additional information on these and other risks.

Please see footnotes on page 7.

Performance highlights (unaudited) Wells Fargo Small Cap Value Fund 7

Growth of $10,000 investment as of March 31, 2018⁵

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 Institutional Class shares prior to their inception reflects the performance of the former Investor Class shares, and includes the higher expenses applicable to the former Investor class shares. If these expenses had not been included, returns for Institutional Class shares would be higher. Effective June 20, 2008, Class Z was renamed Investor Class and modified to assume the features and attributes of the Investor Class.

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

³  The manager has contractually committed through July 31, 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 (if any), 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 (the total annual fund operating expenses after fee waivers) as stated in the prospectuses.

⁴  The Russell 2000^® Value Index measures the performance of those Russell 2000 companies with lower price/book ratios and lower 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 2000^® Value Index. The chart assumes a hypothetical investment of $10,000 in Class A shares and reflects all operating expenses.

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 no longer held at the end of the reporting period.

8 Wells Fargo Small Cap Value Fund Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

∎ The Fund outperformed its benchmark, the Russell 2000^® Value Index, for the 12-month period that ended March 31, 2018.

∎ Strong stock selection in the consumer discretionary and financials sectors drove performance, as did an underweight to the real estate sector.

∎ Weakness in the industrials and information technology (IT) sectors detracted from performance.

U.S. small-cap equities posted a solid year in 2017. Economic growth in the U.S. was strong and improved globally. Major tax legislation was passed in the U.S., which, among other things, lowers the corporate tax rate. This should benefit many U.S.-based small-cap companies. However, after many years of strong performance, we are cautious on the markets overall. A lot of good news already may be priced into stocks, and any negative change in outlook could cause pressure on equities. In addition, rising interest rates, which currently are being viewed as a positive, could at some point start putting pressure on earnings multiples, which also could be a headwind for stocks.

Portfolio positions in selected stocks increased.

We are bottom-up stock pickers, so sector weights are a reflection of individual stock selection. Over the past year, the Fund’s weighting in banks increased materially. We expect the yield curve to steepen, which may lead to increased profitability for the industry as a whole and for selected stocks in the portfolio. In addition, we believe a more benign regulatory environment is also a tailwind for these companies. We have increased our exposure to selected energy sector stocks and are now slightly overweight the sector. This is primarily driven by our increased investment in Navigator Holdings Limited, which operates a fleet of liquefied gas carriers and stands to benefit from new petrochemical plants coming online, as well as increased U.S. exports.

The Fund benefited from positive stock selection in the consumer discretionary and financials sectors as well as an underweight to the real estate sector.

Strong stock selection in the consumer discretionary sector helped Fund performance. The Fund’s positions in Cavco Industries, Incorporated, and Skyline Corporation returned 49% and 134%, respectively. Both companies are manufactured-housing producers, which have been continuing to benefit from the improvement in the industry. Cavco is the second-largest producer in the country and has an excellent management team and a solid balance sheet. Skyline is merging with a much larger, private manufactured-housing producer, which has increased the company’s market share materially. Our outlook for both companies remains positive.

The Fund’s financial stocks contributed to performance. Enova International, Incorporated, an online consumer lender, increased 48%. Enova was aided by strong demand for its products, solid credit performance, and a more benign regulatory environment. Another contributor was The Bancorp, Incorporated, which increased 112%. Bancorp is a commercial bank and is expected to benefit from higher interest rates more than its peers.

Our underweight to the poorly performing real estate sector aided Fund performance for the period. Within our holdings, we continue to remain positive on UMH Properties, Incorporated, which owns manufactured-housing communities. We believe the demand for low-cost housing may continue to increase, which could benefit UMH.

Weakness in the industrials and IT sectors hindered the Fund’s performance.

The Fund’s industrial holdings detracted from performance. The primary detractor within industrials was Armstrong Flooring, Incorporated, which decreased 26%. Armstrong, a producer of wood flooring products, was affected by the ongoing competition from Chinese imports. The company’s turnaround is taking longer than expected; however, we remain constructive, as we believe there is ample room to improve margins.

Within the IT sector, the Fund’s holdings detracted from performance during the period. Synchronoss Technologies, Incorporated*, a provider of telecom cloud-services, was the largest detractor, decreasing 63%. The underperformance of Synchronoss was due to the ill-timed strategy pivot to enter the enterprise security market with the purchase of Intralinks Holdings, Incorporated. We exited our position in the company during the period.

Please see footnotes on page 7.

Performance highlights (unaudited) Wells Fargo Small Cap Value Fund 9

We believe it is prudent to remain cautious.

We are cautious on the broader equity market. After such a strong run over the past several years, we would not be surprised to see the equity market take a pause. We expect volatility to increase as the Federal Reserve slowly unwinds the extraordinary monetary policies it put in place during the Great Recession.

While we are cautious on the broader markets, we are positive on how the portfolio is positioned. We believe that rising interest rates and the potential for deregulation and consolidation are positive for the banking industry, and we are overweight banks. We own gold miners, which tend to have very little correlation with the broader equity market, and we are hopeful that our investment in these stocks can provide stability to the portfolio in times of broader market volatility. In addition, increased volatility may provide us with a greater set of investment opportunities for us to deploy capital. We remain encouraged with our current holdings and our outlook for the Fund.

Ten largest holdings (%) as of March 31, 20186
National General Holdings Corporation	3.83
Randgold Resources Limited ADR	3.58
BankUnited Incorporated	3.09
Enova International Incorporated	3.03
The Bancorp Incorporated	2.80
Bloomin’ Brands Incorporated	2.51
CenterState Banks Incorporated	2.45
ACCO Brands Corporation	2.45
OSI Systems Incorporated	2.38
Navigator Holdings Limited	2.37

Sector distribution as of March 31, 2018⁷

Please see footnotes on page 7.

10 Wells Fargo Small Cap Value Fund Fund expenses (unaudited)

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

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from October 1, 2017 to March 31, 2018.

Actual expenses

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

Hypothetical example for comparison purposes

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

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

	Beginning account value 10-1-2017		Ending account value 3-31-2018		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,010.55	$	6.42		1.28	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.55	$	6.44		1.28	%
Class C
Actual	$	1,000.00	$	1,006.31	$	10.15		2.03	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,014.81	$	10.20		2.03	%
Class R6
Actual	$	1,000.00	$	1,011.90	$	4.16		0.83	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.79	$	4.18		0.83	%
Administrator Class
Actual	$	1,000.00	$	1,011.43	$	5.42		1.08	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.55	$	5.44		1.08	%
Institutional Class
Actual	$	1,000.00	$	1,012.39	$	4.42		0.88	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.54	$	4.43		0.88	%

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

Portfolio of investments—March 31, 2018 Wells Fargo Small Cap Value Fund 11

Security name	Shares		Value
Common Stocks: 98.10%
Consumer Discretionary: 10.66%
Hotels, Restaurants & Leisure: 4.49%
Bloomin’ Brands Incorporated		566,600	$	13,757,048
Century Casinos Incorporated †		1,326,000		9,891,960
Peak Resorts Incorporated		100		485
Scientific Games Corporation Class A †		8,600		357,760
The Wendy’s Company		38,100		668,655
				24,675,908
Household Durables: 5.96%
Cavco Industries Incorporated †		73,606		12,789,043
Nobility Homes Incorporated		64,300		1,350,300
Skyline Corporation †		366,900		8,071,800
Taylor Morrison Home Corporation Class A †		181,000		4,213,680
The New Home Company Incorporated †		568,700		6,301,196
				32,726,019
Textiles, Apparel & Luxury Goods: 0.21%
G-III Apparel Group Limited †		30,300		1,141,704
Consumer Staples: 0.71%
Food Products: 0.71%
Amira Nature Foods Limited †		932,600		3,888,942
Energy: 7.36%
Energy Equipment & Services: 2.42%
CARBO Ceramics Incorporated †		655,600		4,753,100
Newpark Resources Incorporated †		544,200		4,408,020
Parker Drilling Company †		769,000		488,315
PHI Incorporated - Non Voting †		92,200		944,128
Smart Sand Incorporated †		466,300		2,713,866
				13,307,429
Oil, Gas & Consumable Fuels: 4.94%
Navigator Holdings Limited †		1,109,600		13,037,800
Oasis Petroleum Incorporated †		551,400		4,466,340
Paramount Resources Limited Class A †		183,120		2,090,516
Range Resources Corporation		306,100		4,450,694
Sanchez Energy Corporation †		986,500		3,087,745
				27,133,095
Financials: 33.33%
Banks: 21.01%
Ameris Bancorp		135,300		7,157,370
BankUnited Incorporated		424,200		16,959,516
CenterState Banks Incorporated		508,000		13,477,240
First Horizon National Corporation		392,800		7,396,424

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

12 Wells Fargo Small Cap Value Fund Portfolio of investments—March 31, 2018

Security name	Shares		Value
Banks (continued)
Hanmi Financial Corporation		178,100	$	5,476,575
Hilltop Holdings Incorporated		217,500		5,102,550
Hope Bancorp Incorporated		708,700		12,891,253
IBERIABANK Corporation		160,700		12,534,600
LegacyTexas Financial Group		208,900		8,945,098
OFG Bancorp		184,400		1,926,980
Sterling BanCorp		233,100		5,256,405
The Bancorp Incorporated †		1,424,900		15,388,920
Valley National Bancorp		229,600		2,860,816
				115,373,747
Capital Markets: 0.34%
Medley Management Incorporated Class A (l)		323,400		1,843,380
Consumer Finance: 3.03%
Enova International Incorporated †		753,800		16,621,290
Insurance: 6.51%
Argo Group International Holdings Limited		128,230		7,360,402
First Acceptance Corporation †		83,100		70,635
James River Group Holdings Limited		205,900		7,303,273
National General Holdings Corporation		865,100		21,030,581
				35,764,891
Mortgage REITs: 1.84%
Redwood Trust Incorporated		654,600		10,126,662
Thrifts & Mortgage Finance: 0.60%
BofI Holding Incorporated †		49,000		1,985,970
Essent Group Limited †		30,500		1,298,080
				3,284,050
Health Care: 6.59%
Health Care Equipment & Supplies: 0.85%
Hologic Incorporated †		29,900		1,117,064
Lantheus Holdings Incorporated †		216,800		3,447,120
OraSure Technologies Incorporated †		6,800		114,852
				4,679,036
Health Care Providers & Services: 2.67%
Cross Country Healthcare Incorporated †		563,300		6,258,263
Tivity Health Incorporated †		211,500		8,385,975
				14,644,238
Health Care Technology: 2.39%
Allscripts Healthcare Solutions Incorporated †		683,800		8,444,930
Omnicell Incorporated †		108,600		4,713,240
				13,158,170

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

Portfolio of investments—March 31, 2018 Wells Fargo Small Cap Value Fund 13

Security name	Shares		Value
Pharmaceuticals: 0.68%
Prestige Brands Holdings Incorporated †		110,300	$	3,719,316
Industrials: 13.30%
Air Freight & Logistics: 0.84%
Atlas Air Worldwide Holdings Incorporated †		76,300		4,612,335
Building Products: 1.60%
Armstrong Flooring Incorporated †		344,700		4,677,579
CSW Industrials Incorporated †		91,200		4,108,560
				8,786,139
Commercial Services & Supplies: 3.83%
ABM Industries Incorporated		151,000		5,055,480
ACCO Brands Corporation		1,073,700		13,474,935
Healthcare Services Group Incorporated		40,300		1,752,244
Hudson Technologies Incorporated †		149,000		736,060
				21,018,719
Construction & Engineering: 1.44%
Bird Construction Incorporated (a)		194,200		1,288,638
IES Holdings Incorporated †		142,800		2,163,420
Tutor Perini Corporation †		202,900		4,473,945
				7,926,003
Machinery: 3.74%
Actuant Corporation Class A		209,000		4,859,250
Freightcar America Incorporated (l)		697,800		9,350,520
Milacron Holdings Corporation †		67,100		1,351,394
Mueller Water Products Incorporated Class A		457,300		4,970,851
				20,532,015
Professional Services: 1.03%
Hill International Incorporated †		987,800		5,630,460
Trading Companies & Distributors: 0.82%
Applied Industrial Technologies Incorporated		62,000		4,519,800
Information Technology: 8.32%
Communications Equipment: 1.68%
Finisar Corporation †		291,300		4,605,453
Harmonic Incorporated †		1,210,800		4,601,040
				9,206,493
Electronic Equipment, Instruments & Components: 2.78%
Coherent Incorporated †		11,700		2,192,580
OSI Systems Incorporated †		200,400		13,080,108
				15,272,688

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

14 Wells Fargo Small Cap Value Fund Portfolio of investments—March 31, 2018

Security name	Shares		Value
IT Services: 0.48%
Travelport Worldwide Limited		161,100	$	2,632,374
Technology Hardware, Storage & Peripherals: 3.38%
Cray Incorporated †		534,900		11,072,430
Diebold Nixdorf Incorporated		229,600		3,535,840
Quantum Corporation †		1,090,300		3,968,692
				18,576,962
Materials: 13.63%
Containers & Packaging: 0.33%
Intertape Polymer Group Incorporated		112,500		1,789,875
Metals & Mining: 13.30%
Agnico Eagle Mines Limited		11,300		475,391
Argonaut Gold Incorporated †		734,600		1,388,394
Carpenter Technology Corporation		91,400		4,032,568
Eldorado Gold Corporation †		1,242,600		1,043,784
Haynes International Incorporated		201,500		7,477,665
Nevsun Resources Limited		986,600		2,348,108
NovaGold Resources Incorporated †		956,700		4,142,511
Olympic Steel Incorporated		95,300		1,954,603
Randgold Resources Limited ADR		235,900		19,636,316
Royal Gold Incorporated		34,300		2,945,341
Ryerson Holding Corporation †		347,900		2,835,385
Sandstorm Gold Limited †		2,588,200		12,319,832
Schnitzer Steel Industry		252,000		8,152,200
SSR Mining Incorporated †		188,700		1,811,520
TimkenSteel Corporation †		163,200		2,479,008
				73,042,626
Real Estate: 1.69%
Equity REITs: 1.69%
UMH Properties Incorporated		690,600		9,260,946
Telecommunication Services: 2.51%
Diversified Telecommunication Services: 2.51%
Cincinnati Bell Incorporated †		614,600		8,512,210
Iradium Communications Incorporated †		470,800		5,296,500
				13,808,710
Total Common Stocks (Cost $437,249,129)				538,704,022
Exchange-Traded Funds: 1.40%
SPDR S&P Regional Banking ETF		22,400		1,352,736
VanEck Vectors Gold Miners ETF		181,451		3,988,293
VanEck Vectors Junior Gold Miners ETF		72,683		2,336,758
Total Exchange-Traded Funds (Cost $7,826,674)				7,677,787

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

Portfolio of investments—March 31, 2018 Wells Fargo Small Cap Value Fund 15

Security name	Yield			Shares		Value
Short-Term Investments: 0.31%
Investment Companies: 0.31%
Wells Fargo Government Money Market Fund Select Class (l)(u)		1.54	%		1,673,791	$	1,673,791
Total Short-Term Investments (Cost $1,673,791)							1,673,791

Total investments in securities (Cost $446,749,594)	99.81	%		548,055,600
Other assets and liabilities, net	0.19			1,064,882
Total net assets	100.00	%	$	549,120,482

† 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.

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

(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
Common Stocks
Consumer Discretionary
Hotels, Restaurants & Leisure
Century Casinos Incorporated *		1,762,300		201,800		638,100		1,326,000	$	1,916,512		$	(1,931,298	)	$	0	$	9,891,960
Household Durables
Skyline Corporation *		815,200		12,669		460,969		366,900		3,598,814			2,456,000			0		8,071,800
Financials
Capital Markets
Medley Management Incorporated Class A		454,000		30,000		160,600		323,400		(1,328,602	)		311,568			273,800		1,843,380
Industrials
Machinery
Freightcar America Incorporated		420,700		418,000		140,900		697,800		507,681			(1,207,330	)		63,045		9,350,520
																		29,157,660		5.31	%
Short-Term Investments
Investment Companies
Wells Fargo Government Money Market Fund Select Class		85,665,191		168,036,832		252,028,232		1,673,791		0			0			223,820		1,673,791		0.31
									$	4,694,405		$	(371,060	)	$	560,665	$	30,831,451		5.62	%

* No longer an affiliate of the Fund at the end of the period.

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

16 Wells Fargo Small Cap Value Fund Statement of assets and liabilities—March 31, 2018

Assets
Investments in unaffiliated securities, at value (cost $429,236,052)	$	535,187,909
Investments in affiliated securities, at value (cost $17,513,542)		12,867,691
Cash		132,079
Receivable for investments sold		1,629,859
Receivable for Fund shares sold		70,763
Receivable for dividends		683,279
Prepaid expenses and other assets		38,085
Total assets		550,609,665
Liabilities
Payable for Fund shares redeemed		676,622
Management fee payable		383,398
Payable for investments purchased		106,819
Shareholder servicing fees payable		106,534
Administration fees payable		93,824
Distribution fee payable		17,135
Trustees’ fees and expenses payable		1,382
Accrued expenses and other liabilities		103,469
Total liabilities		1,489,183
Total net assets	$	549,120,482
NET ASSETS CONSIST OF
Paid-in capital	$	377,732,493
Accumulated net investment loss		(666,360	)
Accumulated net realized gains on investments		70,748,343
Net unrealized gains on investments		101,306,006
Total net assets	$	549,120,482
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	437,703,682
Shares outstanding – Class A1		25,616,483
Net asset value per share – Class A		$17.09
Maximum offering price per share – Class A2		$18.13
Net assets – Class C	$	25,110,868
Shares outstanding – Class C1		2,171,482
Net asset value per share – Class C		$11.56
Net assets – Class R6	$	43,671,226
Shares outstanding – Class R61		2,357,679
Net asset value per share – Class R6		$18.52
Net assets – Administrator Class	$	9,935,993
Shares outstanding – Administrator Class1		541,860
Net asset value per share – Administrator Class		$18.34
Net assets – Institutional Class	$	32,698,713
Shares outstanding – Institutional Class1		1,768,470
Net asset value per share – Institutional Class		$18.49

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 March 31, 2018 Wells Fargo Small Cap Value Fund 17

Investment income
Dividends (net of foreign withholding taxes of $40,991)	$	5,226,688
Income from affiliated securities		560,665
Total investment income		5,787,353
Expenses
Management fee		6,097,615
Administration fees
Class A		991,936
Class C		62,156
Class R6		21,669
Administrator Class		15,129
Institutional Class		179,875
Shareholder servicing fees
Class A		1,180,876
Class C		73,996
Administrator Class		28,872
Distribution fee
Class C		221,987
Custody and accounting fees		41,955
Professional fees		46,950
Registration fees		20,548
Shareholder report expenses		5,489
Trustees’ fees and expenses		25,025
Other fees and expenses		27,338
Total expenses		9,041,416
Less: Fee waivers and/or expense reimbursements		(451,703	)
Net expenses		8,589,713
Net investment loss		(2,802,360	)
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		311,620,644
Affiliated securities		4,694,405
Net realized gains on investments		316,315,049
Net change in unrealized gains (losses) on:
Unaffiliated securities		(258,974,104	)
Affiiliated securities		(371,060	)
Net change in unrealized gains (losses) on investments		(259,345,164	)
Net realized and unrealized gains (losses) on investments		56,969,885
Net increase in net assets resulting from operations	$	54,167,525

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

18 Wells Fargo Small Cap Value Fund Statement of changes in net assets

	Year ended March 31, 2018						Year ended March 31, 2017
Operations
Net investment loss				$	(2,802,360	)				$	(3,089,007	)
Net realized gains on investments					316,315,049						178,473,238
Net change in unrealized gains (losses) on investments					(259,345,164	)					76,306,664
Net increase in net assets resulting from operations					54,167,525						251,690,895
Distributions to shareholders from
Net realized gains
Class A					(139,185,621	)					(56,388,139	)
Class C					(11,577,587	)					(5,270,387	)
Class R6					(18,852,432	)					(10,487,806	)
Administrator Class					(3,280,317	)					(2,045,288	)
Institutional Class					(59,214,889	)					(37,253,131	)
Total distributions to shareholders					(232,110,846	)					(111,444,751	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		1,049,139			20,283,556			1,740,528			35,433,223
Class C		82,745			1,093,645			191,902			3,019,730
Class R6		362,552			7,674,684			424,030			9,098,907
Administrator Class		79,721			1,605,699			130,653			2,811,213
Institutional Class		453,494			9,352,699			4,669,898			101,916,638
					40,010,283						152,279,711
Reinvestment of distributions
Class A		7,549,312			135,464,919			2,776,179			55,114,701
Class C		870,426			10,955,100			292,458			4,514,956
Class R6		964,823			18,847,152			502,696			10,487,806
Administrator Class		144,268			2,762,509			87,246			1,799,155
Institutional Class		2,910,455			57,830,989			1,730,984			36,212,221
					225,860,669						108,128,839
Payment for shares redeemed
Class A		(5,792,964	)		(110,590,516	)		(7,484,677	)		(152,570,289	)
Class B		N/A			N/A			(285	)1		(4,290	)1
Class C		(909,855	)		(12,886,548	)		(803,103	)		(12,684,211	)
Class R6		(2,930,324	)		(61,212,656	)		(1,679,233	)		(36,127,102	)
Administrator Class		(251,974	)		(5,114,206	)		(1,056,888	)		(22,334,104	)
Institutional Class		(19,803,060	)		(399,900,378	)		(2,762,181	)		(58,313,031	)
					(589,704,304	)					(282,033,027	)
Net asset value of shares issued in acquisition
Class A		0			0			2,339,168			45,638,463
Class C		0			0			219,630			3,343,096
Administrator Class		0			0			141,240			2,888,953
Institutional Class		0			0			172,399			3,537,176
					0						55,407,688
Net increase (decrease) in net assets resulting from capital share transactions					(323,833,352	)					33,783,211
Total increase (decrease) in net assets					(501,776,673	)					174,029,355
Net assets
Beginning of period					1,050,897,155						876,867,800
End of period				$	549,120,482					$	1,050,897,155
Accumulated net investment loss				$	(666,360	)				$	(2,079,153	)

¹  For the period from April 1, 2016 to June 6, 2016. Effective June 7, 2016, Class B shares of the Fund are no longer offered to shareholders.

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

Financial highlights Wells Fargo Small Cap Value Fund 19

(For a share outstanding throughout each period)

	Year ended March 31															Year ended October 31, 2013
CLASS A	2018			2017			2016			2015			20141
Net asset value, beginning of period		$21.68			$18.84			$27.51			$35.74			$36.33			$32.87
Net investment income (loss)		(0.09	)2		(0.11	)		(0.06	)2		0.01	2		0.18			0.23
Net realized and unrealized gains (losses) on investments		1.62			5.45			(1.19	)		(2.55	)		2.71			4.68
Total from investment operations		1.53			5.34			(1.25	)		(2.54	)		2.89			4.91
Distributions to shareholders from
Net investment income		0.00			0.00			0.00			(0.13	)		(0.11	)		(0.24	)
Net realized gains		(6.12	)		(2.50	)		(7.42	)		(5.56	)		(3.37	)		(1.21	)
Total distributions to shareholders		(6.12	)		(2.50	)		(7.42	)		(5.69	)		(3.48	)		(1.45	)
Net asset value, end of period		$17.09			$21.68			$18.84			$27.51			$35.74			$36.33
Total return3		7.97	%		29.92	%		(2.90	)%		(7.29	)%		8.87	%		15.67	%
Ratios to average net assets (annualized)
Gross expenses		1.33	%		1.32	%		1.36	%		1.35	%		1.33	%		1.33	%
Net expenses		1.28	%		1.28	%		1.28	%		1.29	%		1.30	%		1.30	%
Net investment income (loss)		(0.47	)%		(0.48	)%		(0.27	)%		0.02	%		1.26	%		0.72	%
Supplemental data
Portfolio turnover rate		36	%		31	%		16	%		9	%		7	%		18	%
Net assets, end of period (000s omitted)		$437,704			$494,607			$441,679			$289,669			$443,671			$482,677

¹  For the five months ended March 31, 2014. The Fund changed its fiscal year end from October 31 to March 31, effective March 31, 2014.

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 Small Cap Value Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended March 31															Year ended October 31, 2013
CLASS C	2018			2017			2016			2015			20141
Net asset value, beginning of period		$16.67			$15.09			$23.80			$31.89			$32.77			$29.82
Net investment income (loss)		(0.17	)2		(0.20	)2		(0.24	)2		(0.20	)2		0.07	2		(0.02	)2
Net realized and unrealized gains (losses) on investments		1.18			4.28			(1.05	)		(2.27	)		2.42			4.23
Total from investment operations		1.01			4.08			(1.29	)		(2.47	)		2.49			4.21
Distributions to shareholders from
Net investment income		0.00			0.00			0.00			(0.06	)		0.00			(0.05	)
Net realized gains		(6.12	)		(2.50	)		(7.42	)		(5.56	)		(3.37	)		(1.21	)
Total distributions to shareholders		(6.12	)		(2.50	)		(7.42	)		(5.62	)		(3.37	)		(1.26	)
Net asset value, end of period		$11.56			$16.67			$15.09			$23.80			$31.89			$32.77
Total return3		7.08	%		28.93	%		(3.58	)%		(8.00	)%		8.53	%		14.80	%
Ratios to average net assets (annualized)
Gross expenses		2.08	%		2.07	%		2.11	%		2.10	%		2.08	%		2.08	%
Net expenses		2.03	%		2.03	%		2.03	%		2.04	%		2.05	%		2.05	%
Net investment income (loss)		(1.23	)%		(1.23	)%		(1.18	)%		(0.70	)%		0.52	%		(0.06	)%
Supplemental data
Portfolio turnover rate		36	%		31	%		16	%		9	%		7	%		18	%
Net assets, end of period (000s omitted)		$25,111			$35,470			$33,601			$80,969			$105,309			$105,491

¹  For the five months ended March 31, 2014. The Fund changed its fiscal year end from October 31 to March 31, effective March 31, 2014.

²  Calculated based upon average shares outstanding

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

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

Financial highlights Wells Fargo Small Cap Value Fund 21

(For a share outstanding throughout each period)

	Year ended March 31															Year ended October 31, 20132
CLASS R6	2018			2017			2016			2015			20141
Net asset value, beginning of period		$22.93			$19.72			$28.29			$36.52			$37.13			$33.69
Net investment income (loss)		(0.00	)3,4		(0.01	)3		0.03	3		0.23	3		0.35			0.07	3
Net realized and unrealized gains (losses) on investments		1.71			5.72			(1.18	)		(2.69	)		2.67			3.37
Total from investment operations		1.71			5.71			(1.15	)		(2.46	)		3.02			3.44
Distributions to shareholders from
Net investment income		0.00			0.00			0.00			(0.21	)		(0.26	)		0.00
Net realized gains		(6.12	)		(2.50	)		(7.42	)		(5.56	)		(3.37	)		0.00
Total distributions to shareholders		(6.12	)		(2.50	)		(7.42	)		(5.77	)		(3.63	)		0.00
Net asset value, end of period		$18.52			$22.93			$19.72			$28.29			$36.52			$37.13
Total return5		8.38	%		30.50	%		(2.43	)%		(6.90	)%		9.07	%		10.21	%
Ratios to average net assets (annualized)
Gross expenses		0.90	%		0.89	%		0.92	%		0.87	%		0.85	%		0.85	%
Net expenses		0.83	%		0.83	%		0.83	%		0.83	%		0.85	%		0.85	%
Net investment income (loss)		(0.01	)%		(0.03	)%		0.12	%		0.72	%		2.82	%		0.60	%
Supplemental data
Portfolio turnover rate		36	%		31	%		16	%		9	%		7	%		18	%
Net assets, end of period (000s omitted)		$43,671			$90,809			$92,929			$52,613			$398			$28

¹  For the five months ended March 31, 2014. The Fund changed its fiscal year end from October 31 to March 31, effective March 31, 2014.

²  For the period from June 28, 2013 (commencement of class operations) to October 31, 2013.

³  Calculated based upon average shares outstanding

⁴  Amount is more than $(0.005).

⁵  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 Small Cap Value Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended March 31															Year ended October 31, 2013
ADMINISTRATOR CLASS	2018			2017			2016			2015			20141
Net asset value, beginning of period		$22.80			$19.66			$28.30			$36.40			$36.98			$33.45
Net investment income (loss)		(0.06	)2		(0.07	)2		(0.06	)2		0.01	2		0.21			0.31
Net realized and unrealized gains (losses) on investments		1.72			5.71			(1.16	)		(2.55	)		2.77			4.75
Total from investment operations		1.66			5.64			(1.22	)		(2.54	)		2.98			5.06
Distributions to shareholders from
Net investment income		0.00			0.00			0.00			0.00			(0.19	)		(0.32	)
Net realized gains		(6.12	)		(2.50	)		(7.42	)		(5.56	)		(3.37	)		(1.21	)
Total distributions to shareholders		(6.12	)		(2.50	)		(7.42	)		(5.56	)		(3.56	)		(1.53	)
Net asset value, end of period		$18.34			$22.80			$19.66			$28.30			$36.40			$36.98
Total return3		8.18	%		30.22	%		(2.70	)%		(7.16	)%		8.97	%		15.92	%
Ratios to average net assets (annualized)
Gross expenses		1.24	%		1.24	%		1.25	%		1.19	%		1.17	%		1.17	%
Net expenses		1.08	%		1.08	%		1.08	%		1.09	%		1.10	%		1.10	%
Net investment income (loss)		(0.28	)%		(0.31	)%		(0.24	)%		0.03	%		1.48	%		0.87	%
Supplemental data
Portfolio turnover rate		36	%		31	%		16	%		9	%		7	%		18	%
Net assets, end of period (000s omitted)		$9,936			$12,994			$24,927			$74,820			$711,869			$666,812

¹  For the five months ended March 31, 2014. The Fund changed its fiscal year end from October 31 to March 31, effective March 31, 2014.

²  Calculated based upon average shares outstanding

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

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

Financial highlights Wells Fargo Small Cap Value Fund 23

(For a share outstanding throughout each period)

	Year ended March 31															Year ended October 31, 2013
INSTITUTIONAL CLASS	2018			2017			2016			2015			20141
Net asset value, beginning of period		$22.90			$19.71			$28.29			$36.53			$37.12			$33.56
Net investment income (loss)		(0.02	)2		(0.01	)2		(0.01	)2		0.17	2		0.26			0.38	2
Net realized and unrealized gains (losses) on investments		1.73			5.70			(1.15	)		(2.65	)		2.76			4.76
Total from investment operations		1.71			5.69			(1.16	)		(2.48	)		3.02			5.14
Distributions to shareholders from
Net investment income		0.00			0.00			0.00			(0.20	)		(0.24	)		(0.37	)
Net realized gains		(6.12	)		(2.50	)		(7.42	)		(5.56	)		(3.37	)		(1.21	)
Total distributions to shareholders		(6.12	)		(2.50	)		(7.42	)		(5.76	)		(3.61	)		(1.58	)
Net asset value, end of period		$18.49			$22.90			$19.71			$28.29			$36.53			$37.12
Total return3		8.39	%		30.41	%		(2.46	)%		(6.95	)%		9.05	%		16.15	%
Ratios to average net assets (annualized)
Gross expenses		0.99	%		0.99	%		0.99	%		0.92	%		0.90	%		0.90	%
Net expenses		0.88	%		0.88	%		0.88	%		0.89	%		0.90	%		0.90	%
Net investment income (loss)		(0.11	)%		(0.06	)%		(0.03	)%		0.52	%		1.66	%		1.08	%
Supplemental data
Portfolio turnover rate		36	%		31	%		16	%		9	%		7	%		18	%
Net assets, end of period (000s omitted)		$32,699			$417,018			$283,728			$1,017,115			$984,881			$1,081,869

¹  For the five months ended March 31, 2014. The Fund changed its fiscal year end from October 31 to March 31, effective March 31, 2014.

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 Small 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 Small Cap Value Fund (the “Fund”) which is a diversified series of the Trust.

Effective June 7, 2016, Class B shares of the Fund are no longer offered. Information for Class B shares reflected in the financial statements represents activity through June 6, 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.

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 Wells Fargo Asset Management Pricing Committee at Wells Fargo Funds Management, LLC (“Funds Management”).

Many securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange and therefore may not fully reflect trading or events that occur after the close of the principal exchange in which the foreign securities are traded, but before the close of the New York Stock Exchange. If such trading or events are expected to materially affect the value of such securities, then fair value pricing procedures approved by the Board of Trustees of the Fund are applied. These procedures take into account multiple factors including movements in U.S. securities markets after foreign exchanges close. Foreign securities that are fair valued under these procedures are categorized as Level 2 and the application of these procedures may result in transfers between Level 1 and Level 2. Depending on market activity, such fair valuations may be frequent. Such fair value pricing may result in net asset values that are higher or lower than net asset values based on the last reported sales price or latest quoted bid price. On March 31, 2018, such fair value pricing was used in pricing certain foreign securities.

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

Investments which are not valued using any of the methods discussed above are valued at their fair value, as determined in good faith by the Board of Trustees. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Wells Fargo Asset Management Pricing Committee at 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 Wells Fargo Asset Management Pricing Committee which may include items for ratification.

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

Notes to financial statements Wells Fargo Small Cap Value Fund 25

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 Wells Fargo Asset Management Pricing Committee. 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 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 any net realized gains are recorded on the ex-dividend date and paid at least annually. 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 at year end.

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 March 31, 2018, the aggregate cost of all investments for federal income tax purposes was $448,609,579 and the unrealized gains (losses) consisted of:

Gross unrealized gains	$	154,891,451
Gross unrealized losses		(55,445,430	)
Net unrealized gains	$	99,446,021

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, passive foreign investment companies, and redemptions in-kind. At March 31, 2018, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Paid-in capital	Accumulated net investment loss	Accumulated net realized gains on investments
$140,178,228	$4,215,153	$(144,393,381)

26 Wells Fargo Small Cap Value Fund Notes to financial statements

Class allocations

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

3. FAIR VALUATION MEASUREMENTS

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

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

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

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

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

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of March 31, 2018:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer Discretionary	$	57,193,331	$	1,350,300	$	0	$	58,543,631
Consumer Staples		3,888,942		0		0		3,888,942
Energy		40,440,524		0		0		40,440,524
Financials		183,014,020		0		0		183,014,020
Health Care		36,200,760		0		0		36,200,760
Industrials		71,736,833		1,288,638		0		73,025,471
Information Technology		45,688,517		0		0		45,688,517
Materials		73,042,626		1,789,875		0		74,832,501
Real Estate		9,260,946		0		0		9,260,946
Telecommunication Services		13,808,710		0		0		13,808,710
Exchange-traded funds		7,677,787		0		0		7,677,787
Short-term investments
Investment companies		1,673,791		0		0		1,673,791
Total assets	$	543,626,787	$	4,428,813	$	0	$	548,055,600

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At March 31, 2018, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

4. TRANSACTIONS WITH AFFILIATES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo, is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment

Notes to financial statements Wells Fargo Small Cap Value Fund 27

objectives and strategies of the Fund, supervising the subadviser, providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.85% and declining to 0.71% as the average daily net assets of the Fund increase. For the year ended March 31, 2018, the management fee was equivalent to an annual rate of 0.84% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. Wells Capital Management Incorporated, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.55% and declining to 0.40% 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 July 31, 2018 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 1.28% for Class A shares, 2.03% for Class C shares, 0.83% for Class R6 shares, 1.08% for Administrator Class shares, and 0.88% for Institutional Class shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

Distribution fee

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

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the year ended March 31, 2018, Funds Distributor received $4,938 from the sale of Class A shares and $21 in contingent deferred sales charges from redemptions of Class C shares. No contingent deferred sales charges were incurred by Class A shares for the year ended March 31, 2018.

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 under 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.

28 Wells Fargo Small Cap Value Fund Notes to financial statements

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended March 31, 2018 were $ 256,067,688 and $391,109,896, respectively.

6. ACQUISITION

After the close of business on July 22, 2016, the Fund acquired the net assets of Wells Fargo Small/Mid Cap Value Fund. The purpose of the transaction was to combine two funds with similar investment objectives and strategies. Shareholders holding Class A, Class C, Administrator Class, and Institutional Class shares of Wells Fargo Small/Mid Cap Value Fund received Class A, Class C, Administrator Class, and Institutional Class shares, respectively, of the Fund in there organization. The acquisition was accomplished by a tax-free exchange of all of the shares of Wells Fargo Small/Mid Cap Value Fund for 2,872,437 shares of the Fund valued at $55,407,688 at an exchange ratio of 0.63, 0.75, 0.62, and 0.63 for Class A, Class C, Administrator Class, and Institutional Class shares, respectively. The investment portfolio of Wells Fargo Small/Mid Cap Value Fund with a fair value of $45,240,508, identified cost of $27,461,432 and unrealized gains of $17,779,076 at July 22, 2016 were the principal assets acquired by the Fund. The aggregate net assets of Wells Fargo Small/Mid Cap Value Fund and the Fund immediately prior to the acquisition were $55,407,688 and $934,257,976, respectively. The aggregate net assets of the Fund immediately after the acquisition were $989,665,664. For financial reporting purposes, assets received and shares issued by the Fund were recorded at fair value; however, the cost basis of the investments received from Wells Fargo Small/Mid Cap Value Fund was carried forward to align ongoing reporting of the Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.

Assuming the acquisition had been completed April 1, 2016, the beginning of the annual reporting period for the Fund, the pro forma results of operations for the year ended March 31, 2017 would have been:

Net investment loss	$	(2,807,515	)
Net realized and unrealized gains (losses) on investments		261,166,279
Net increase in net assets resulting from operations	$	258,358,764

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 March 31, 2018, there were no borrowings by the Fund under the agreement.

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended March 31, 2018 and March 31, 2017 were as follows:

	Year ended March 31
	2018		2017
Ordinary income	$	1,352,843	$	0
Long-term capital gain		230,758,003		111,444,751

As of March 31, 2018, the components of distributable earnings on a tax basis were as follows:

Undistributed long-term gain	Unrealized gains
$71,941,968	$99,446,021

Notes to financial statements Wells Fargo Small Cap Value Fund 29

9. 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.

10. 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.

11. REDEMPTION IN-KIND

After the close of business on July 7, 2017, the Fund redeemed assets through an in-kind redemption. In the redemption transaction, the Fund issued securities with a value of $317,068,893 and cash in the amount of $17,087,078. The Fund recognized gains in the amount of $145,197,411 which is reflected on the Statement of Operations. The redemption in-kind by a shareholder of the Institutional Class represented 34% of the Fund and is reflected on the Statement of Changes in Net Assets.

30 Wells Fargo Small Cap Value Fund Report of independent registered public accounting firm

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of the Wells Fargo Small Cap Value Fund (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, including the portfolio of investments, as of March 31, 2018, 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 related notes (collectively, the “financial statements”) and the financial highlights for each of the years in the four-year period then ended, the period from November 1, 2013 to March 31, 2014, and the year ended October 31, 2013. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of March 31, 2018, 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 noted above, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

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 are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of March 31, 2018, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.

We have not been able to determine the specific year that we began serving as the auditor of one or more Wells Fargo Funds investment companies, however we are aware that we have served as the auditor of one or more Wells Fargo Funds investment companies since at least 1955.

Boston, Massachusetts

May 23, 2018

Other information (unaudited) Wells Fargo Small Cap Value Fund 31

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 March 31, 2018.

Pursuant to Section 852 of the Internal Revenue Code, $230,758,003 was designated as a 20% rate gain distribution for the fiscal year ended March 31, 2018.

Pursuant to Section 854 of the Internal Revenue Code, $1,352,843 of income dividends paid during the fiscal year ended March 31, 2018 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.

32 Wells Fargo Small Cap Value Fund Other information (unaudited)

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 153 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; Chair Liaison, since 2018	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 the Glimmerglass Festival. She is also an inactive Chartered Financial Analyst.	Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. Chairman of the Board of CIGNA Corporation since 2009, and Director since 2005. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (charter school). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	CIGNA Corporation; Asset Allocation Trust
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, since 2008	Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant.	Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of the Corporate Governance Research Initiative and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust

Other information (unaudited) Wells Fargo Small Cap Value 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; Governance Committee Chairman, since 2018	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; Chairman, since 2018; Vice Chairman, from 2017 to 2018	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
James G. Polisson***** (Born 1959)	Trustee, since 2018; Advisory Board Member, from 2017 to 2018	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. Trustee of the San Francisco Mechanics’ Institute, a non-profit organization, from 2013 to 2015. 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.	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. Trustee of the Evergreen Fund 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
Pamela Wheelock***** (Born 1959)	Trustee, since 2018; Advisory Board Member, from 2017 to 2018	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.	Asset Allocation Trust

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

** Jane Freeman became Chair Liaison effective January 1, 2018.

*** Olivia Mitchell became Chairman of the Governance Committee effective January 1, 2018.

**** Timothy Penny became Chairman effective January 1, 2018.

***** James Polisson and Pamela Wheelock each became a Trustee effective January 1, 2018.

34 Wells Fargo Small Cap Value 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.
Alexander Kymn* (Born 1973)	Secretary, since 2018; Chief Legal Officer, since 2018	Senior Company Counsel of Wells Fargo Bank, N.A. since 2018 (previously Senior Counsel from 2007 to 2018). Vice President of Wells Fargo Funds Management, LLC from 2008 to 2014.
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 77 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 76 funds and Assistant Treasurer of 77 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.

* Alexander Kymn became the Secretary and Chief Legal Officer effective April 17, 2018.

** David Messman was the Secretary and Chief Legal Officer until April 16, 2018.

List of abbreviations Wells Fargo Small 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

INR —  Indian rupee

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 Agency

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

SIFMA —  Securities Industry and Financial Markets Association

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

© 2018 Wells Fargo Funds Management, LLC. All rights reserved.

309984 05-18 A244/AR244 03-18

Annual Report

March 31, 2018

Wells Fargo Special Small Cap Value 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	26
Report of independent registered public accounting firm	32
Other information	33
List of abbreviations	37

The views expressed and any forward-looking statements are as of March 31, 2018, 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 Small Cap Value Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

Dear Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Special Small Cap Value Fund for the 12-month period that ended March 31, 2018. During the last three quarters of 2017, investors enjoyed consistently rising equity values globally. Short-term interest rates tended to increase, while long-term rates remained flat to lower. During the final two months of the first quarter of 2018, equity market volatility returned, stocks reversed year-to-date gains, and bond yields rose while prices fell.

For the period, U.S. stocks, as measured by the S&P 500 Index,¹ gained 13.99% and international stocks, as measured by the MSCI ACWI ex USA Index (Net),² added 16.53%. Emerging market stocks, as measured by the MSCI EM Index (Net),³ added 24.93%. In bond markets, the Bloomberg Barclays U.S. Aggregate Bond Index⁴ added 1.20% and the Bloomberg Barclays Municipal Bond Index⁵ added 2.66% while fixed-income investments outside the U.S. gained 11.75%, according to the Bloomberg Barclays Global Aggregate ex-USD Index.⁶ The ICE BofAML U.S. High Yield Index⁷ earned 3.69%.

Through the last nine months of 2017, stocks advanced on synchronized global growth, which led to higher investor and consumer confidence. The first quarter of 2018 began with strong stock market gains in January. A strong January 2018 U.S. employment report and inflation concerns prompted equity volatility in February. Investor optimism for growth was supplanted with concerns over trade tensions, increased interest rates, and the prospect of new data privacy regulations.

Reactions to U.S. interest rate increases were uneven across the yield curve and globally.

The U.S. Federal Reserve (Fed) increased the federal funds rate three times during the 12-month period for a combined 75 basis points (bps; 100 bps equals 1.00%). Following an increase in March 2017, short-term bond yields in the U.S. rose while longer-term Treasury yields were little changed. Municipal bond returns were positive, helped by strong demand and constrained new-issue supply. The Fed raised the target interest rate once again in June 2017 to a range of 1.00% to 1.25%. Ten-year U.S. Treasury yields declined, the yield curve flattened, and long-term bond prices benefited.

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 indices or any securities or financial products. This report is not approved, reviewed, or produced by MSCI. You cannot invest directly in an index.

³ The MSCI Emerging Markets (EM) Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure large- and mid-cap equity market performance of emerging markets. The MSCI EM Index (Net) consists of the following 24 emerging market country indices: 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.

⁴  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.

⁵  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.

⁶  The Bloomberg Barclays Global Aggregate ex-USD Index 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.

⁷  The ICE BofAML U.S. High Yield Index is a market-capitalization-weighted index of domestic and Yankee high-yield bonds. The index tracks the performance of high-yield securities traded in the U.S. bond market. You cannot invest directly in an index. Copyright 2018. ICE Data Indices, LLC. All rights reserved.

Letter to shareholders (unaudited) Wells Fargo Special Small Cap Value Fund 3

Internationally, central banks maintained low interest rates and accommodative monetary policies that supported business activity and stock values in foreign markets. A weaker U.S. dollar was generally supportive of business activity in regions around the globe. The Bank of Japan continued its accommodative monetary policies, and industrial production, retail sales, and fixed asset investment increased in China.

Growth continued through the summer of 2017.

Globally, stocks moved higher during the third quarter of 2017. Low inflation and interest rates supported accelerating global economic growth and corporate earnings. Brief episodes of geopolitical tensions, often associated with North Korea’s advancing nuclear missile program, flaring conflicts in the Middle East, and uncertainty surrounding U.S. trade policies, did not discourage investing activity.

In the U.S., economic data released during the quarter reflected a generally healthy economy. Second-quarter economic output grew at a 3.1% annual rate. Stocks in international developed and emerging markets continued to benefit from improving economic growth.

Positive economic and market news continued as 2017 closed and 2018 began.

During the fourth quarter of 2017, stock markets continued the move higher. Third-quarter economic output in the U.S. grew at a 3.2% annual rate. The unemployment rate fell to a 17-year low of 4.1%. Tax reform passed and wage growth data improved, encouraging increased business and consumer spending.

Fed officials announced in October 2017 plans to begin unwinding its $4.5 trillion portfolio of bonds and other assets accumulated during rounds of quantitative easing conducted since the 2008–2009 recession. Still, restrained inflation kept long-term bond rates steady and the flattened yield curve persisted. The Fed raised the federal funds rate target to a range of 1.25% to 1.50% in December 2017 and began selling bonds held in its portfolio.

2018 opened with continued stock advances, then volatility.

Improving business and economic data globally continued to support stocks through January 2018. Political wrangling in the U.S. over budget resolutions could not dissuade investors from buying stocks as payrolls and factory orders increased. Long-term interest rates in the U.S. trended higher as the yield curve steepened—the 10-year Treasury rate moved from 2.46% to 2.84% and the 30-year rate moved from 2.81% to 3.08% during January 2018.

Investor sentiment shifted in February as inflation concerns emerged in the U.S. when readings from the Producer Price Index in January rose 2.5% year over year. During February, the U.S. market endured a loss from January’s high of nearly 12% before recovering much of that loss. The Fed raised the federal funds rate in March 2018. Bond yields rose across the yield curve.

During January 2018, purchasing managers’ indices in China, the eurozone, India, and Japan reported data for December that indicated continued growth. Despite positive economic signals and business fundamentals, international stock values fell during February and March 2018, swept up in the selling momentum in U.S. markets.

Globally, stocks moved higher during the third quarter of 2017.

During February, the U.S. market endured a loss from January’s high of nearly 12% before recovering much of that loss.

4 Wells Fargo Special Small 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.

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6 Wells Fargo Special Small 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

Robert Rifkin, CFA^®

James M. Tringas, CFA^®

Bryant VanCronkhite, CFA^®, CPA

Average annual total returns (%) as of March 31, 2018¹

		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 (ESPAX)	5-7-1993		3.14		11.59		9.08		9.42		12.92		9.72		1.33		1.33
Class C (ESPCX)	12-12-2000		7.60		12.07		8.90		8.60		12.07		8.90		2.08		2.08
Class R (ESPHX)	9-30-2015		–		–		–		9.13		12.65		9.43		1.58		1.58
Class R6 (ESPRX)	10-31-2014		–		–		–		9.85		13.39		10.13		0.90		0.90
Administrator Class (ESPIX)	7-23-1996		–		–		–		9.52		13.12		9.96		1.25		1.21
Institutional Class (ESPNX)	7-30-2010		–		–		–		9.82		13.36		10.12		1.00		0.95
Russell 2000® Value Index4	–		–		–		–		5.13		9.96		8.61		–		–

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 Small Cap Value Fund 7

Growth of $10,000 investment as of March 31, 2018⁵

¹  Historical performance shown for 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 for Class R6 shares prior to their inception reflects the performance of the 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 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. Historical performance shown for all classes of the Fund prior to July 19, 2010, is based on the performance of the Fund’s predecessor, Evergreen Special Values Fund.

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

³  The manager has contractually committed through July 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 1.34% for Class A, 2.09% for Class C, 1.59% for Class R, 0.89% for Class R6, 1.20% for Administrator Class, and 0.94% 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 (if any), 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 (the total annual fund operating expenses after fee waivers) as stated in the prospectuses.

⁴  The Russell 2000^® Value Index measures the performance of those Russell 2000 companies with lower price/book ratios and lower 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 2000^® 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 Small Cap Value Fund Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

∎ The Fund outperformed its benchmark, the Russell 2000^® Value Index, for the 12-month period that ended March 31, 2018.

∎ Stock selection in the information technology (IT) sector as well as an overweight to the industrials sector contributed to relative performance.

∎ Stock selection in the health care sector and an overweight to consumer staples detracted from performance.

Over the 12-month reporting period, small-cap value stocks provided favorable returns. The Russell 2000^® Value Index rose more than 5% during the period. Through much of 2017, small-cap value stocks traded in a narrow range coming off of an exceptionally strong 2016. Beginning in September, small-cap value stocks began to move higher as investors began to see the increased likelihood for corporate tax reform to become a reality, which was eventually passed into legislation in December. The benefits of tax reform were quickly discarded by equity investors in the first quarter of 2018 as volatility spiked based on fears of higher interest rates and potential protectionist trade policies.

Ten largest holdings (%) as of March 31, 20186
Simpson Manufacturing Company Incorporated	2.55
First Citizens BancShares Corporation Class A	2.40
UMB Financial Corporation	2.15
Neenah Paper Incorporated	2.15
Innospec Incorporated	2.03
HRG Group Incorporated	2.01
Mueller Industries Incorporated	1.91
Eagle Materials Incorporated	1.88
Denny’s Corporation	1.81
Hawaiian Electric Industries Incorporated	1.75

Recent market volatility strengthens our belief that it is always prudent to protect downside risks. Our bottom-up process is designed to find companies that can control their own destiny via their clear competitive advantages, strong and sustainable free cash flows, and flexible balance sheets that can be used to grow shareholder value regardless of the macro environment. We did not make any major changes to portfolio positioning during the reporting period, and we continue to emphasize companies that prudently allocate their capital.

Key contributors included stock selection within IT and an overweight to industrials.

Stock selection in IT contributed to relative performance. Novanta Incorporated, a manufacturer of photonic and motion control components for the industrial and medical markets, benefited the Fund’s performance. We have been attracted to Novanta’s capital redeployment strategy to diversify its end markets into the higher margin and more stable medical portion of the business. The company has continued delivering favorable results, which in turn has led to further multiple expansion.

The Fund’s overweight to the industrials sector contributed to the Fund’s relative performance as investors anticipated stronger economic tailwinds. The overweight was driven by favorable reward-to-risk valuation opportunities our process uncovered within the sector.

Detractors to performance included stock selection in health care and an overweight to consumer staples.

Stock selection in health care detracted from relative performance. Patterson Companies, Incorporated, is a distributor of dental and animal health products. The company has faced challenges primarily as a result of actions it took to break into the corporate account market, including restructuring its sales force, which subsequently led to lost market share. Talk of Amazon.com, Incorporated, entering the dental distribution market has also pressured the stock. We believe the current valuation reflects these concerns, and we are optimistic that the new management team should benefit the stock going forward.

The Fund’s overweight to the consumer staples sector detracted from relative performance. As investors preferred more economically sensitive stocks during the period, consumer staples stocks underperformed.

Please see footnotes on page 7.

Performance highlights (unaudited) Wells Fargo Special Small Cap Value Fund 9

Sector distribution as of March 31, 2018⁷

Our outlook is cautious yet confident.

As we look out over the next 12 months, we expect volatility to remain elevated. We believe it is prudent to protect the Fund’s downside risks as we look for investment opportunities to present themselves. We do not focus on forecasting future macroeconomic news and the short-term direction of the market. Through our bottom-up stock selection process, we focus on investing in companies that have the potential to generate strong cash flows and have the balance sheet flexibility to make intelligent investment decisions. In our view, this approach may better position our investments to reap outsized rewards relative to other stocks. Because of this disciplined investment process, we remain confident in our ability to navigate all economic environments over the long term.

Please see footnotes on page 7.

10 Wells Fargo Special Small Cap Value Fund Fund expenses (unaudited)

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

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from October 1, 2017 to March 31, 2018.

Actual expenses

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

Hypothetical example for comparison purposes

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

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

	Beginning account value 10-1-2017		Ending account value 3-31-2018		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,039.04	$	6.65		1.31	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.41	$	6.58		1.31	%
Class C
Actual	$	1,000.00	$	1,035.24	$	10.44		2.06	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,014.67	$	10.34		2.06	%
Class R
Actual	$	1,000.00	$	1,037.46	$	7.93		1.56	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.14	$	7.85		1.56	%
Class R6
Actual	$	1,000.00	$	1,041.15	$	4.45		0.88	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.57	$	4.41		0.88	%
Administrator Class
Actual	$	1,000.00	$	1,039.43	$	6.10		1.20	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.95	$	6.04		1.20	%
Institutional Class
Actual	$	1,000.00	$	1,040.83	$	4.78		0.94	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.24	$	4.73		0.94	%

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

Portfolio of investments—March 31, 2018 Wells Fargo Special Small Cap Value Fund 11

Security name	Shares		Value
Common Stocks: 92.77%
Consumer Discretionary: 9.30%
Diversified Consumer Services: 0.12%
Liberty Tax Incorporated «		270,146	$	2,728,475
Hotels, Restaurants & Leisure: 4.54%
Denny’s Corporation †		2,668,018		41,167,518
DineEquity Incorporated «		532,400		34,914,792
The Wendy’s Company		1,560,500		27,386,775
				103,469,085
Household Durables: 1.40%
Dixie Group Incorporated †		706,635		1,943,246
Helen of Troy Limited †		345,000		30,015,000
				31,958,246
Media: 1.44%
A.H. Belo Corporation Class A (l)		1,423,589		7,331,483
Gannett Company Incorporated		965,621		9,636,898
New Media Investment Group Incorporated		923,143		15,822,671
				32,791,052
Specialty Retail: 0.58%
Christopher & Banks Corporation «†		1,070,348		1,145,272
Signet Jewelers Limited «		88,300		3,401,316
The Buckle Incorporated «		391,500		8,671,725
				13,218,313
Textiles, Apparel & Luxury Goods: 1.22%
Delta Apparel Incorporated †(l)		459,492		8,280,046
Steven Madden Limited		444,000		19,491,600
				27,771,646
Consumer Staples: 6.56%
Beverages: 0.82%
Cott Corporation		1,266,100		18,636,992
Food & Staples Retailing: 0.29%
SUPERVALU Incorporated Ǡ		434,603		6,619,004
Food Products: 2.31%
Hostess Brands Incorporated †		496,723		7,346,533
Nomad Foods Limited †		1,987,424		31,282,054
TreeHouse Foods Incorporated †		363,785		13,922,052
				52,550,639

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

12 Wells Fargo Special Small Cap Value Fund Portfolio of investments—March 31, 2018

Security name	Shares		Value
Household Products: 3.14%
Central Garden & Pet Company †		553,580	$	23,803,940
Central Garden & Pet Company Class A †		53,900		2,134,979
HRG Group Incorporated †		2,772,300		45,715,227
				71,654,146
Energy: 4.95%
Energy Equipment & Services: 2.64%
C&J Energy Services Incorporated †		505,900		13,062,338
Forum Energy Technologies Incorporated †		116,600		1,282,600
Frank’s International NV «		526,243		2,857,499
Oil States International Incorporated †		493,000		12,916,600
Patterson-UTI Energy Incorporated		1,046,700		18,327,717
Tetra Technologies Incorporated †		2,248,700		8,432,625
US Silica Holdings Incorporated «		130,200		3,322,704
				60,202,083
Oil, Gas & Consumable Fuels: 2.31%
Laredo Petroleum Incorporated †		822,300		7,162,233
QEP Resources Incorporated †		1,391,300		13,620,827
WPX Energy Incorporated †		2,153,968		31,835,647
				52,618,707
Financials: 18.38%
Banks: 10.13%
Associated Banc Corporation		1,257,800		31,256,330
First Citizens BancShares Corporation Class A		132,550		54,774,962
Hancock Holding Company		587,800		30,389,260
IBERIABANK Corporation		288,400		22,495,200
Renasant Corporation		834,868		35,531,982
South State Corporation		86,700		7,395,510
UMB Financial Corporation		677,386		49,035,973
				230,879,217
Capital Markets: 3.21%
Apollo Investment Corporation		2,343,416		12,232,632
Artisan Partners Asset Management Incorporated Class A		762,301		25,384,623
New Mountain Finance Corporation		1,009,500		13,274,925
Westwood Holdings Group Incorporated		394,885		22,307,054
				73,199,234
Insurance: 4.31%
Aspen Insurance Holdings Limited		475,500		21,326,175
ProAssurance Corporation		575,394		27,935,379
Stewart Information Services Corporation		573,607		25,204,292
Validus Holdings Limited		351,400		23,701,930
				98,167,776

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

Portfolio of investments—March 31, 2018 Wells Fargo Special Small Cap Value Fund 13

Security name	Shares		Value
Mortgage REITs: 0.73%
Apollo Commercial Real Estate Finance Incorporated «		917,937	$	16,504,507
Health Care: 4.18%
Health Care Equipment & Supplies: 2.19%
Analogic Corporation		377,099		36,163,794
Haemonetics Corporation †		187,400		13,710,184
				49,873,978
Health Care Providers & Services: 0.63%
Patterson Companies Incorporated «		645,600		14,351,688
Pharmaceuticals: 1.36%
Innoviva Incorporated †		682,302		11,373,974
Prestige Brands Holdings Incorporated †		579,300		19,533,996
				30,907,970
Industrials: 20.87%
Building Products: 4.10%
CSW Industrials Incorporated †		664,244		29,924,192
Griffon Corporation		144,200		2,631,650
Quanex Building Products Corporation		159,300		2,771,820
Simpson Manufacturing Company Incorporated		1,009,195		58,119,540
				93,447,202
Commercial Services & Supplies: 5.37%
ACCO Brands Corporation		1,462,211		18,350,748
Brady Corporation Class A		634,874		23,585,569
Deluxe Corporation		407,000		30,122,070
Ennis Incorporated (l)		1,320,620		26,016,214
LSC Communications Incorporated		290,962		5,077,287
Viad Corporation		364,750		19,131,138
				122,283,026
Electrical Equipment: 2.01%
Atkore International Incorporated †		968,492		19,224,566
EnerSys		381,935		26,494,831
				45,719,397
Machinery: 8.39%
Douglas Dynamics Incorporated		738,570		32,017,010
Franklin Electric Company Incorporated		864,536		35,229,842
Global Brass & Copper Holdings Incorporated		684,996		22,913,116
Hillenbrand Incorporated		566,644		26,008,960
Kadant Incorporated		270,278		25,541,271
Mueller Industries Incorporated		1,663,573		43,519,070
NN Incorporated		248,500		5,964,000
				191,193,269

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

14 Wells Fargo Special Small Cap Value Fund Portfolio of investments—March 31, 2018

Security name	Shares		Value
Professional Services: 1.00%
Korn/Ferry International		443,732	$	22,892,134
Information Technology: 7.73%
Communications Equipment: 0.74%
NETGEAR Incorporated †		296,702		16,971,354
Electronic Equipment, Instruments & Components: 4.53%
AVX Corporation		867,260		14,353,153
Badger Meter Incorporated		168,395		7,939,824
Belden Incorporated		520,400		35,876,376
Novanta Incorporated †		521,145		27,177,712
Orbotech Limited †		285,630		17,760,473
				103,107,538
IT Services: 1.58%
Conduent Incorporated †		847,500		15,797,400
Sykes Enterprises Incorporated †		696,400		20,153,816
				35,951,216
Semiconductors & Semiconductor Equipment: 0.28%
DSP Group Incorporated †		533,415		6,294,297
Technology Hardware, Storage & Peripherals: 0.60%
Glassbridge Enterprises Incorporated Ǡ(l)		305,221		363,213
NCR Corporation †		422,300		13,310,896
				13,674,109
Materials: 14.47%
Chemicals: 7.18%
A. Schulman Incorporated		552,558		23,759,994
Innophos Holdings Incorporated		103,500		4,161,735
Innospec Incorporated		675,491		46,338,683
KMG Chemicals Incorporated		488,626		29,293,129
PolyOne Corporation		304,700		12,955,844
PQ Group Holdings Incorporated †		591,073		8,257,290
Quaker Chemical Corporation		100,690		14,915,210
Sensient Technologies Corporation		339,800		23,983,084
				163,664,969
Construction Materials: 1.88%
Eagle Materials Incorporated		416,600		42,930,630
Containers & Packaging: 1.47%
Silgan Holdings Incorporated		1,200,542		33,435,095
Metals & Mining: 0.79%
Compass Minerals International Incorporated «		299,600		18,065,880

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

Portfolio of investments—March 31, 2018 Wells Fargo Special Small Cap Value Fund 15

Security name				Shares		Value
Paper & Forest Products: 3.15%
Neenah Paper Incorporated					623,520	$	48,883,968
Schweitzer-Mauduit International Incorporated					582,587		22,808,281
							71,692,249
Real Estate: 3.47%
Equity REITs: 3.47%
Acadia Realty Trust					304,300		7,485,780
Gramercy Property Trust Incorporated					958,738		20,833,377
LaSalle Hotel Properties					1,093,900		31,734,039
Washington REIT					699,657		19,100,636
							79,153,832
Telecommunication Services: 0.24%
Diversified Telecommunication Services: 0.24%
Consolidated Communications Holdings Incorporated «					497,724		5,455,055
Utilities: 2.62%
Electric Utilities: 2.62%
Hawaiian Electric Industries Incorporated					1,157,354		39,789,831
IDACORP Incorporated					226,400		19,984,324
							59,774,155
Total Common Stocks (Cost $1,837,400,512)							2,113,808,165
Exchange-Traded Funds: 0.70%
iShares Russell 2000 Value Index ETF «					130,700		15,929,716
Total Exchange-Traded Funds (Cost $16,581,325)							15,929,716
	Dividend yield
Preferred Stocks: 0.40%
Financials: 0.40%
Diversified Financial Services: 0.40%
Steel Partners Holdings LP «		7.35	%		453,550		9,256,956
Total Preferred Stocks (Cost $11,398,218)							9,256,956
	Yield
Short-Term Investments: 9.68%
Investment Companies: 9.68%
Securities Lending Cash Investment LLC (l)(r)(u)		1.89			81,074,217		81,082,324
Wells Fargo Government Money Market Fund Select Class (l)(u)		1.54			139,485,748		139,485,748
Total Short-Term Investments (Cost $220,568,072)							220,568,072

Total investments in securities (Cost $2,085,948,127)	103.55	%		2,359,562,909
Other assets and liabilities, net	(3.55	)		(80,992,754	)
Total net assets	100.00	%	$	2,278,570,155

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

16 Wells Fargo Special Small Cap Value Fund Portfolio of investments—March 31, 2018

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

† Non-income-earning security

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

(r) The investment is a non-registered investment 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
Common Stocks
Consumer Discretionary
Media
A.H. Belo Corporation Class A		1,289,840		133,749		0		1,423,589	$	0		$	(1,270,591	)	$	606,830	$	7,331,483
Textiles, Apparel & Luxury Goods
Delta Apparel Incorporated		440,392		19,100		0		459,492		0			141,162			0		8,280,046
Industrials
Commercial Services & Supplies
Ennis Incorporated		1,285,320		38,100		2,800		1,320,620		(1,684	)		3,482,684			1,136,732		26,016,214
Information Technology
Technology Hardware, Storage & Peripherals
Glassbridge Enterprises Incorporated		305,221		0		0		305,221		0			(1,107,952	)		0		363,213
																		41,990,956		1.84	%
Short-Term Investments
Investment Companies
Securities Lending Cash Investment LLC		48,035,648		495,342,880		462,304,311		81,074,217		3,062			(3,156	)		448,448		81,082,324
Wells Fargo Government Money Market Fund Select Class		129,441,277		523,651,403		513,606,932		139,485,748		0			0			1,306,233		139,485,748
																		220,568,072		9.68
									$	1,378		$	1,242,147		$	3,498,243	$	262,559,028		11.52	%

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

Statement of assets and liabilities—March 31, 2018 Wells Fargo Special Small Cap Value Fund 17

Assets
Investments in unaffiliated securities (including $79,625,229 of securities loaned), at value (cost $1,799,010,843)	$	2,097,003,881
Investments in affiliated securities, at value (cost $286,937,284)		262,559,028
Receivable for investments sold		6,721,235
Receivable for Fund shares sold		8,807,113
Receivable for dividends		3,553,932
Receivable for securities lending income		55,979
Prepaid expenses and other assets		143,328
Total assets		2,378,844,496
Liabilities
Payable upon receipt of securities loaned		81,066,778
Payable for investments purchased		10,210,530
Payable for Fund shares redeemed		6,504,263
Management fee payable		1,476,904
Due to custodian bank		347,187
Administration fees payable		278,711
Distribution fees payable		36,133
Trustees’ fees and expenses payable		2,435
Accrued expenses and other liabilities		351,400
Total liabilities		100,274,341
Total net assets	$	2,278,570,155
NET ASSETS CONSIST OF
Paid-in capital	$	1,920,374,104
Undistributed net investment income		3,571,012
Accumulated net realized gains on investments		81,010,257
Net unrealized gains on investments		273,614,782
Total net assets	$	2,278,570,155
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	539,499,299
Shares outstanding – Class A1		15,675,943
Net asset value per share – Class A		$34.42
Maximum offering price per share – Class A2		$36.52
Net assets – Class C	$	53,145,322
Shares outstanding – Class C1		1,703,043
Net asset value per share – Class C		$31.21
Net assets – Class R	$	4,631,310
Shares outstanding – Class R1		132,543
Net asset value per share – Class R		$34.94
Net assets – Class R6	$	254,800,964
Shares outstanding – Class R61		7,227,398
Net asset value per share – Class R6		$35.25
Net assets – Administrator Class	$	229,991,912
Shares outstanding – Administrator Class1		6,529,700
Net asset value per share – Administrator Class		$35.22
Net assets – Institutional Class	$	1,196,501,348
Shares outstanding – Institutional Class1		33,925,862
Net asset value per share – Institutional Class		$35.27

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 Special Small Cap Value Fund Statement of operations—year ended March 31, 2018

Investment income
Dividends (net of foreign withholding taxes of $45,241)	$	37,592,403
Income from affiliated securities		3,498,243
Interest		5,242
Total investment income		41,095,888
Expenses
Management fee		17,074,220
Administration fees
Class A		1,171,392
Class B		42	1
Class C		117,162
Class R		5,438
Class R6		67,286
Administrator Class		270,039
Institutional Class		1,355,565
Shareholder servicing fees
Class A		1,394,515
Class B		50	1
Class C		139,479
Class R		6,473
Administrator Class		516,263
Distribution fees
Class B		151	1
Class C		418,438
Class R		6,473
Custody and accounting fees		99,469
Professional fees		73,435
Registration fees		268,709
Shareholder report expenses		216,654
Trustees’ fees and expenses		21,590
Other fees and expenses		39,450
Total expenses		23,262,293
Less: Fee waivers and/or expense reimbursements		(524,536	)
Net expenses		22,737,757
Net investment income		18,358,131
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		147,677,516
Affiliated securities		1,378
Futures contracts		596,919
Net realized gains on investments		148,275,813
Net change in unrealized gains (losses) on:
Unaffiliated securities		20,125,355
Affiliated securities		1,242,147
Net change in unrealized gains (losses) on investments		21,367,502
Net realized and unrealized gains (losses) on investments		169,643,315
Net increase in net assets resulting from operations	$	188,001,446

¹  For the period from April 1, 2017 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 Special Small Cap Value Fund 19

	Year ended March 31, 2018						Year ended March 31, 2017
Operations
Net investment income				$	18,358,131					$	18,930,061
Net realized gains on investments					148,275,813						56,938,105
Net change in unrealized gains (losses) on investments					21,367,502						180,498,414
Net increase in net assets resulting from operations					188,001,446						256,366,580
Distributions to shareholders from
Net investment income
Class A					(5,156,558	)					(3,100,647	)
Class C					(80,902	)					0
Class R					(28,233	)					(1,857	)
Class R6					(3,491,795	)					(1,263,592	)
Administrator Class					(2,253,608	)					(1,252,758	)
Institutional Class					(14,206,922	)					(4,942,668	)
Net realized gains
Class A					(23,767,259	)					(9,755,571	)
Class B					0	1					(14,723	)
Class C					(2,620,489	)					(1,021,360	)
Class R					(123,012	)					(4,214	)
Class R6					(10,469,298	)					(2,330,686	)
Administrator Class					(8,842,873	)					(3,021,363	)
Institutional Class					(45,129,294	)					(9,439,217	)
Total distributions to shareholders					(116,170,243	)					(36,148,656	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		2,772,875			94,731,826			6,332,575			198,916,138
Class B		0	1		0	1		753			22,742
Class C		191,743			5,942,942			671,919			19,355,935
Class R		122,899			4,239,675			23,263			763,546
Class R6		4,147,795			146,057,838			4,344,349			138,461,632
Administrator Class		2,707,738			94,110,194			4,235,478			132,626,330
Institutional Class		15,040,023			526,877,607			23,307,034			756,707,717
					871,960,082						1,246,854,040
Reinvestment of distributions
Class A		772,732			26,881,022			368,285			12,346,246
Class B		0	1		0	1		435			13,247
Class C		82,534			2,591,651			29,455			902,197
Class R		4,226			149,401			178			6,071
Class R6		360,421			12,863,108			104,957			3,594,278
Administrator Class		304,887			10,860,280			122,938			4,212,480
Institutional Class		1,252,402			44,708,634			352,682			12,086,229
					98,054,096						33,160,748
Payment for shares redeemed
Class A		(5,222,764	)		(178,462,050	)		(4,570,348	)		(144,377,311	)
Class B		(11,387	)1		(339,787	)1		(40,390	)		(1,132,998	)
Class C		(568,844	)		(17,485,661	)		(320,882	)		(9,162,909	)
Class R		(17,869	)		(617,184	)		(1,114	)		(37,538	)
Class R6		(2,479,153	)		(87,096,747	)		(548,575	)		(18,002,089	)
Administrator Class		(2,360,366	)		(81,310,178	)		(1,872,525	)		(58,288,811	)
Institutional Class		(9,522,751	)		(332,025,710	)		(5,644,752	)		(181,693,370	)
					(697,337,317	)					(412,695,026	)
Net increase in net assets resulting from capital share transactions					272,676,861						867,319,762
Total increase in net assets					344,508,064						1,087,537,686
Net assets
Beginning of period					1,934,062,091						846,524,405
End of period				$	2,278,570,155					$	1,934,062,091
Undistributed net investment income				$	3,571,012					$	10,432,382

¹  For the period from April 1, 2017 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 Special Small Cap Value Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended March 31															Year ended October 31, 2013
CLASS A	2018			2017			2016			2015			20141
Net asset value, beginning of period		$33.15			$27.40			$29.27			$32.59			$31.35			$22.97
Net investment income		0.24			0.35	2		0.20			0.26			0.10			0.01	2
Net realized and unrealized gains (losses) on investments		2.89			6.15			(1.46	)		1.81			3.14			8.37
Total from investment operations		3.13			6.50			(1.26	)		2.07			3.24			8.38
Distributions to shareholders from
Net investment income		(0.32	)		(0.18	)		(0.19	)		(0.21	)		(0.03	)		0.00
Net realized gains		(1.54	)		(0.57	)		(0.42	)		(5.18	)		(1.97	)		0.00
Total distributions to shareholders		(1.86	)		(0.75	)		(0.61	)		(5.39	)		(2.00	)		0.00
Net asset value, end of period		$34.42			$33.15			$27.40			$29.27			$32.59			$31.35
Total return3		9.42	%		23.69	%		(4.21	)%		7.56	%		10.74	%		36.48	%
Ratios to average net assets (annualized)
Gross expenses		1.31	%		1.32	%		1.36	%		1.39	%		1.41	%		1.40	%
Net expenses		1.31	%		1.32	%		1.34	%		1.34	%		1.34	%		1.34	%
Net investment income		0.66	%		1.14	%		0.73	%		0.90	%		0.75	%		0.04	%
Supplemental data
Portfolio turnover rate		41	%		51	%		46	%		79	%		37	%		65	%
Net assets, end of period (000s omitted)		$539,499			$575,269			$417,161			$448,980			$429,089			$409,557

¹  For the five months ended March 31, 2014. The Fund changed its fiscal year end from October 31 to March 31, effective March 31, 2014.

²  Calculated based upon average shares outstanding

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

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

Financial highlights Wells Fargo Special Small Cap Value Fund 21

(For a share outstanding throughout each period)

	Year ended March 31															Year ended October 31, 2013
CLASS C	2018			2017			2016			2015			20141
Net asset value, beginning of period		$30.19			$25.05			$26.81			$30.31			$29.34			$21.66
Net investment income (loss)		(0.03	)2		0.12	2		(0.03	)		0.04	2		0.00	2,3		(0.18	)2
Net realized and unrealized gains (losses) on investments		2.64			5.59			(1.31	)		1.65			2.94			7.86
Total from investment operations		2.61			5.71			(1.34	)		1.69			2.94			7.68
Distributions to shareholders from
Net investment income		(0.05	)		0.00			0.00			(0.01	)		0.00			0.00
Net realized gains		(1.54	)		(0.57	)		(0.42	)		(5.18	)		(1.97	)		0.00
Total distributions to shareholders		(1.59	)		(0.57	)		(0.42	)		(5.19	)		(1.97	)		0.00
Net asset value, end of period		$31.21			$30.19			$25.05			$26.81			$30.31			$29.34
Total return4		8.60	%		22.75	%		(4.93	)%		6.75	%		10.42	%		35.46	%
Ratios to average net assets (annualized)
Gross expenses		2.06	%		2.07	%		2.11	%		2.14	%		2.16	%		2.15	%
Net expenses		2.06	%		2.07	%		2.09	%		2.09	%		2.09	%		2.09	%
Net investment income (loss)		(0.10	)%		0.42	%		(0.02	)%		0.15	%		0.00	%		(0.71	)%
Supplemental data
Portfolio turnover rate		41	%		51	%		46	%		79	%		37	%		65	%
Net assets, end of period (000s omitted)		$53,145			$60,309			$40,512			$44,327			$42,816			$39,620

¹  For the five months ended March 31, 2014. The Fund changed its fiscal year end from October 31 to March 31, effective March 31, 2014.

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.

22 Wells Fargo Special Small Cap Value Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended March 31
CLASS R	2018			2017			20161
Net asset value, beginning of period		$33.73			$27.97			$26.72
Net investment income		0.17			0.63	2		0.08	2
Net realized and unrealized gains (losses) on investments		2.92			5.94			1.87
Total from investment operations		3.09			6.57			1.95
Distributions to shareholders from
Net investment income		(0.34	)		(0.24	)		(0.28	)
Net realized gains		(1.54	)		(0.57	)		(0.42	)
Total distributions to shareholders		(1.88	)		(0.81	)		(0.70	)
Net asset value, end of period		$34.94			$33.73			$27.97
Total return3		9.13	%		23.47	%		7.40	%
Ratios to average net assets (annualized)
Gross expenses		1.57	%		1.56	%		1.59	%
Net expenses		1.56	%		1.56	%		1.58	%
Net investment income		0.43	%		1.86	%		0.56	%
Supplemental data
Portfolio turnover rate		41	%		51	%		46	%
Net assets, end of period (000s omitted)		$4,631			$785			$27

¹  For the period from September 30, 2015 (commencement of class operations) to March 31, 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 Special Small Cap Value Fund 23

(For a share outstanding throughout each period)

	Year ended March 31
CLASS R6	2018			2017			2016			20151
Net asset value, beginning of period		$33.93			$28.01			$29.91			$33.38
Net investment income		0.38	2		0.61	2		0.39			0.26	2
Net realized and unrealized gains (losses) on investments		2.97			6.18			(1.54	)		1.80
Total from investment operations		3.35			6.79			(1.15	)		2.06
Distributions to shareholders from
Net investment income		(0.49	)		(0.30	)		(0.33	)		(0.35	)
Net realized gains		(1.54	)		(0.57	)		(0.42	)		(5.18	)
Total distributions to shareholders		(2.03	)		(0.87	)		(0.75	)		(5.53	)
Net asset value, end of period		$35.25			$33.93			$28.01			$29.91
Total return3		9.85	%		24.22	%		(3.74	)%		7.42	%
Ratios to average net assets (annualized)
Gross expenses		0.88	%		0.89	%		0.93	%		0.89	%
Net expenses		0.88	%		0.89	%		0.89	%		0.89	%
Net investment income		1.10	%		1.87	%		1.56	%		2.19	%
Supplemental data
Portfolio turnover rate		41	%		51	%		46	%		79	%
Net assets, end of period (000s omitted)		$254,801			$176,362			$36,344			$27

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

24 Wells Fargo Special Small Cap Value Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended March 31															Year ended October 31, 2013
ADMINISTRATOR CLASS	2018			2017			2016			2015			20141
Net asset value, beginning of period		$33.90			$28.02			$29.94			$33.21			$31.85			$23.28
Net investment income		0.27	2		0.44	2		0.26	2		0.35	2		0.14	2		0.08	2
Net realized and unrealized gains (losses) on investments		2.97			6.24			(1.49	)		1.83			3.21			8.49
Total from investment operations		3.24			6.68			(1.23	)		2.18			3.35			8.57
Distributions to shareholders from
Net investment income		(0.38	)		(0.23	)		(0.27	)		(0.27	)		(0.02	)		(0.00	)3
Net realized gains		(1.54	)		(0.57	)		(0.42	)		(5.18	)		(1.97	)		0.00
Total distributions to shareholders		(1.92	)		(0.80	)		(0.69	)		(5.45	)		(1.99	)		(0.00	)3
Net asset value, end of period		$35.22			$33.90			$28.02			$29.94			$33.21			$31.85
Total return4		9.52	%		23.82	%		(4.01	)%		7.78	%		10.91	%		36.82	%
Ratios to average net assets (annualized)
Gross expenses		1.23	%		1.24	%		1.26	%		1.23	%		1.24	%		1.23	%
Net expenses		1.20	%		1.20	%		1.17	%		1.09	%		1.09	%		1.09	%
Net investment income		0.76	%		1.36	%		0.95	%		1.10	%		1.04	%		0.30	%
Supplemental data
Portfolio turnover rate		41	%		51	%		46	%		79	%		37	%		65	%
Net assets, end of period (000s omitted)		$229,992			$199,262			$95,030			$70,100			$78,563			$96,940

¹  For the five months ended March 31, 2014. The Fund changed its fiscal year end from October 31 to March 31, effective March 31, 2014.

²  Calculated based upon average shares outstanding

³  Amount is less than $0.005.

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

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

Financial highlights Wells Fargo Special Small Cap Value Fund 25

(For a share outstanding throughout each period)

	Year ended March 31															Year ended October 31, 2013
INSTITUTIONAL CLASS	2018			2017			2016			2015			20141
Net asset value, beginning of period		$33.94			$28.03			$29.93			$33.21			$31.94			$23.36
Net investment income		0.33			0.60	2		0.30			0.43	2		0.15			0.10
Net realized and unrealized gains (losses) on investments		3.01			6.17			(1.46	)		1.80			3.22			8.53
Total from investment operations		3.34			6.77			(1.16	)		2.23			3.37			8.63
Distributions to shareholders from
Net investment income		(0.47	)		(0.29	)		(0.32	)		(0.33	)		(0.13	)		(0.05	)
Net realized gains		(1.54	)		(0.57	)		(0.42	)		(5.18	)		(1.97	)		0.00
Total distributions to shareholders		(2.01	)		(0.86	)		(0.74	)		(5.51	)		(2.10	)		(0.05	)
Net asset value, end of period		$35.27			$33.94			$28.03			$29.93			$33.21			$31.94
Total return3		9.82	%		24.13	%		(3.79	)%		7.96	%		10.97	%		37.02	%
Ratios to average net assets (annualized)
Gross expenses		0.98	%		0.99	%		1.01	%		0.96	%		0.98	%		0.97	%
Net expenses		0.94	%		0.94	%		0.94	%		0.94	%		0.94	%		0.94	%
Net investment income		1.02	%		1.86	%		1.17	%		1.36	%		1.15	%		0.42	%
Supplemental data
Portfolio turnover rate		41	%		51	%		46	%		79	%		37	%		65	%
Net assets, end of period (000s omitted)		$1,196,501			$921,732			$256,190			$189,965			$146,162			$138,638

¹  For the five months ended March 31, 2014. The Fund changed its fiscal year end from October 31 to March 31, effective March 31, 2014.

²  Calculated based upon average shares outstanding

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

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

26 Wells Fargo Special Small 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 Small Cap Value 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 Wells Fargo Asset Management Pricing Committee at 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 Wells Fargo Asset Management Pricing Committee 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.

Futures contracts

The Fund is subject to 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 security values 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.

Notes to financial statements Wells Fargo Special Small Cap Value Fund 27

Securities lending

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, if any, is included in income from affiliated 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.

Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily. 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 any net realized gains are recorded on the ex-dividend date and paid at least annually. 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 at year end.

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 March 31, 2018, the aggregate cost of all investments for federal income tax purposes was $2,092,829,498 and the unrealized gains (losses) consisted of:

Gross unrealized gains	$	392,796,635
Gross unrealized losses		(126,063,224	)
Net unrealized gains	$	266,733,411

28 Wells Fargo Special Small Cap Value 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. At March 31, 2018, 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
$5	$(1,483)	$1,478

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 Special Small Cap Value Fund 29

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of March 31, 2018:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	211,936,817	$	0	$	0	$	211,936,817
Consumer staples		149,460,781		0		0		149,460,781
Energy		112,820,790		0		0		112,820,790
Financials		418,750,734		0		0		418,750,734
Health care		95,133,636		0		0		95,133,636
Industrials		475,535,028		0		0		475,535,028
Information technology		175,998,514		0		0		175,998,514
Materials		329,788,823		0		0		329,788,823
Real estate		79,153,832		0		0		79,153,832
Telecommunication services		5,455,055		0		0		5,455,055
Utilities		59,774,155		0		0		59,774,155
Exchange-traded funds		15,929,716		0		0		15,929,716
Preferred stocks
Financials		9,256,956		0		0		9,256,956
Short-term investments
Investment companies		139,485,748		0		0		139,485,748
Investments measured at net asset value*								81,082,324
Total assets	$	2,278,480,585	$	0	$	0	$	2,359,562,909

* 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 $81,082,324 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At March 31, 2018, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

4. TRANSACTIONS WITH AFFILIATES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo, is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the subadviser, providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.85% and declining to 0.71% as the average daily net assets of the Fund increase. For the year ended March 31, 2018, the management fee was equivalent to an annual rate of 0.82% 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 0.55% and declining to 0.40% 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

30 Wells Fargo Special Small Cap Value Fund Notes to financial statements

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, 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 July 31, 2018 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 1.34% for Class A shares, 2.09% for Class C shares, 1.59% for Class R shares, 0.89% for Class R6 shares, 1.20% for Administrator Class shares, and 0.94% for Institutional Class shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

Distribution fees

The Trust has adopted a distribution plan for Class B, Class C, and Class R shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. Distribution fees are charged to Class B, 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 B and 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 March 31, 2018, Funds Distributor received $26,549 from the sale of Class A shares and $89 in contingent deferred sales charges from redemptions of Class C shares, respectively. No contingent deferred sales charges were incurred by Class A and Class B shares for the year ended March 31, 2018.

Shareholder servicing fees

The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class B, 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. Pursuant to these procedures, the Fund had $8,488,986 and $27,535,380 in interfund purchases and sales, respectively, during the year ended March 31, 2018.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended March 31, 2018 were $1,015,225,019 and $817,003,422, respectively.

6. DERIVATIVE TRANSACTIONS

During the year ended March 31, 2018, the Fund entered into futures contracts to gain market exposure. The Fund had an average notional amount of $7,409,729 in long futures contracts during the year ended March 31, 2018.

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.

Notes to financial statements Wells Fargo Special Small Cap Value Fund 31

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 March 31, 2018, there were no borrowings by the Fund under the agreement.

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended March 31, 2018 and March 31, 2017 were as follows:

	Year ended March 31
	2018		2017
Ordinary income	$	55,288,780	$	20,122,971
Long-term capital gain		60,881,463		16,025,685

As of March 31, 2018, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Undistributed long-term gain	Unrealized gains
$15,701,431	$75,797,298	$266,733,411

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.

32 Wells Fargo Special Small Cap Value Fund Report of independent registered public accounting firm

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of the Wells Fargo Special Small Cap Value Fund (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, including the portfolio of investments, as of March 31, 2018, 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 related notes (collectively, the “financial statements”) and the financial highlights for each of the years in the four-year period then ended, the period from November 1, 2013 to March 31, 2014, and the year ended October 31, 2013. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of March 31, 2018, 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 noted above, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

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 are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of March 31, 2018, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.

We have not been able to determine the specific year that we began serving as the auditor of one or more Wells Fargo Funds investment companies, however we are aware that we have served as the auditor of one or more Wells Fargo Funds investment companies since at least 1955.

Boston, Massachusetts

May 23, 2018

Other information (unaudited) Wells Fargo Special Small Cap Value Fund 33

TAX INFORMATION

For corporate shareholders, pursuant to Section 854 of the Internal Revenue Code, 59.29% of ordinary income dividends qualify for the corporate dividends-received deduction for the fiscal year ended March 31, 2018.

Pursuant to Section 852 of the Internal Revenue Code, $60,881,463 was designated as a 20% rate gain distribution for the fiscal year ended March 31, 2018.

Pursuant to Section 854 of the Internal Revenue Code, $33,905,245 of income dividends paid during the fiscal year ended March 31, 2018 has been designated as qualified dividend income (QDI).

For the fiscal year ended March 31, 2018, $589,829 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 March 31, 2018, $30,070,762 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.

34 Wells Fargo Special Small Cap Value Fund Other information (unaudited)

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 153 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; Chair Liaison, since 2018	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 the Glimmerglass Festival. She is also an inactive Chartered Financial Analyst.	Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. Chairman of the Board of CIGNA Corporation since 2009, and Director since 2005. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (charter school). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	CIGNA Corporation; Asset Allocation Trust
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, since 2008	Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant.	Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of the Corporate Governance Research Initiative and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust

Other information (unaudited) Wells Fargo Special Small Cap Value Fund 35

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
Olivia S. Mitchell*** (Born 1953)	Trustee, since 2006; Governance Committee Chairman, since 2018	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; Chairman, since 2018; Vice Chairman, from 2017 to 2018	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
James G. Polisson***** (Born 1959)	Trustee, since 2018; Advisory Board Member, from 2017 to 2018	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. Trustee of the San Francisco Mechanics’ Institute, a non-profit organization, from 2013 to 2015. 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.	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. Trustee of the Evergreen Fund 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
Pamela Wheelock***** (Born 1959)	Trustee, since 2018; Advisory Board Member, from 2017 to 2018	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.	Asset Allocation Trust

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

** Jane Freeman became Chair Liaison effective January 1, 2018.

*** Olivia Mitchell became Chairman of the Governance Committee effective January 1, 2018.

**** Timothy Penny became Chairman effective January 1, 2018.

***** James Polisson and Pamela Wheelock each became a Trustee effective January 1, 2018.

36 Wells Fargo Special Small Cap Value 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.
Alexander Kymn* (Born 1973)	Secretary, since 2018; Chief Legal Officer, since 2018	Senior Company Counsel of Wells Fargo Bank, N.A. since 2018 (previously Senior Counsel from 2007 to 2018). Vice President of Wells Fargo Funds Management, LLC from 2008 to 2014.
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 77 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 76 funds and Assistant Treasurer of 77 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.

* Alexander Kymn became the Secretary and Chief Legal Officer effective April 17, 2018.

** David Messman was the Secretary and Chief Legal Officer until April 16, 2018.

List of abbreviations Wells Fargo Special Small 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

INR —  Indian rupee

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 Agency

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

SIFMA —  Securities Industry and Financial Markets Association

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

© 2018 Wells Fargo Funds Management, LLC. All rights reserved.

309985 05-18 A246/AR246 03-18

Annual Report

March 31, 2018

Wells Fargo Traditional Small Cap Growth 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	27
Other information	28
List of abbreviations	32

The views expressed and any forward-looking statements are as of March 31, 2018, 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 Traditional Small Cap Growth Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

Dear Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Traditional Small Cap Growth Fund for the 12-month period that ended March 31, 2018. During the last three quarters of 2017, investors enjoyed consistently rising equity values globally. Short-term interest rates tended to increase, while long-term rates remained flat to lower. During the final two months of the first quarter of 2018, equity market volatility returned, stocks reversed year-to-date gains, and bond yields rose while prices fell.

For the period, U.S. stocks, as measured by the S&P 500 Index,¹ gained 13.99% and international stocks, as measured by the MSCI ACWI ex USA Index (Net),² added 16.53%. Emerging market stocks, as measured by the MSCI EM Index (Net),³ added 24.93%. In bond markets, the Bloomberg Barclays U.S. Aggregate Bond Index⁴ added 1.20% and the Bloomberg Barclays Municipal Bond Index⁵ added 2.66% while fixed-income investments outside the U.S. gained 11.75%, according to the Bloomberg Barclays Global Aggregate ex-USD Index.⁶ The ICE BofAML U.S. High Yield Index⁷ earned 3.69%.

Through the last nine months of 2017, stocks advanced on synchronized global growth, which led to higher investor and consumer confidence. The first quarter of 2018 began with strong stock market gains in January. A strong January 2018 U.S. employment report and inflation concerns prompted equity volatility in February. Investor optimism for growth was supplanted with concerns over trade tensions, increased interest rates, and the prospect of new data privacy regulations.

Reactions to U.S. interest rate increases were uneven across the yield curve and globally.

The U.S. Federal Reserve (Fed) increased the federal funds rate three times during the 12-month period for a combined 75 basis points (bps; 100 bps equals 1.00%). Following an increase in March 2017, short-term bond yields in the U.S. rose while longer-term Treasury yields were little changed. Municipal bond returns were positive, helped by strong demand and constrained new-issue supply. The Fed raised the target interest rate once again in June 2017 to a range of 1.00% to 1.25%. Ten-year U.S. Treasury yields declined, the yield curve flattened, and long-term bond prices benefited.

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 indices or any securities or financial products. This report is not approved, reviewed, or produced by MSCI. You cannot invest directly in an index.

³ The MSCI Emerging Markets (EM) Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure large- and mid-cap equity market performance of emerging markets. The MSCI EM Index (Net) consists of the following 24 emerging market country indices: 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.

⁴  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.

⁵  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.

⁶  The Bloomberg Barclays Global Aggregate ex-USD Index 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.

⁷  The ICE BofAML U.S. High Yield Index is a market-capitalization-weighted index of domestic and Yankee high-yield bonds. The index tracks the performance of high-yield securities traded in the U.S. bond market. You cannot invest directly in an index. Copyright 2018. ICE Data Indices, LLC. All rights reserved.

Letter to shareholders (unaudited) Wells Fargo Traditional Small Cap Growth Fund 3

Internationally, central banks maintained low interest rates and accommodative monetary policies that supported business activity and stock values in foreign markets. A weaker U.S. dollar was generally supportive of business activity in regions around the globe. The Bank of Japan continued its accommodative monetary policies, and industrial production, retail sales, and fixed asset investment increased in China.

Growth continued through the summer of 2017.

Globally, stocks moved higher during the third quarter of 2017. Low inflation and interest rates supported accelerating global economic growth and corporate earnings. Brief episodes of geopolitical tensions, often associated with North Korea’s advancing nuclear missile program, flaring conflicts in the Middle East, and uncertainty surrounding U.S. trade policies, did not discourage investing activity.

In the U.S., economic data released during the quarter reflected a generally healthy economy. Second-quarter economic output grew at a 3.1% annual rate. Stocks in international developed and emerging markets continued to benefit from improving economic growth.

Positive economic and market news continued as 2017 closed and 2018 began.

During the fourth quarter of 2017, stock markets continued the move higher. Third-quarter economic output in the U.S. grew at a 3.2% annual rate. The unemployment rate fell to a 17-year low of 4.1%. Tax reform passed and wage growth data improved, encouraging increased business and consumer spending.

Fed officials announced in October 2017 plans to begin unwinding its $4.5 trillion portfolio of bonds and other assets accumulated during rounds of quantitative easing conducted since the 2008–2009 recession. Still, restrained inflation kept long-term bond rates steady and the flattened yield curve persisted. The Fed raised the federal funds rate target to a range of 1.25% to 1.50% in December 2017 and began selling bonds held in its portfolio.

2018 opened with continued stock advances, then volatility.

Improving business and economic data globally continued to support stocks through January 2018. Political wrangling in the U.S. over budget resolutions could not dissuade investors from buying stocks as payrolls and factory orders increased. Long-term interest rates in the U.S. trended higher as the yield curve steepened—the 10-year Treasury rate moved from 2.46% to 2.84% and the 30-year rate moved from 2.81% to 3.08% during January 2018.

Investor sentiment shifted in February as inflation concerns emerged in the U.S. when readings from the Producer Price Index in January rose 2.5% year over year. During February, the U.S. market endured a loss from January’s high of nearly 12% before recovering much of that loss. The Fed raised the federal funds rate in March 2018. Bond yields rose across the yield curve.

During January 2018, purchasing managers’ indices in China, the eurozone, India, and Japan reported data for December that indicated continued growth. Despite positive economic signals and business fundamentals, international stock values fell during February and March 2018, swept up in the selling momentum in U.S. markets.

Globally, stocks moved higher during the third quarter of 2017.

During February, the U.S. market endured a loss from January’s high of nearly 12% before recovering much of that loss.

4 Wells Fargo Traditional Small Cap Growth 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.

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6 Wells Fargo Traditional Small Cap Growth Fund Performance highlights (unaudited)

Investment objective

The Fund seeks long-term capital appreciation.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers^‡

Michael T. Smith, CFA^®

Christopher J. Warner, CFA^®

Average annual total returns (%) as of March 31, 2018¹

		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 (EGWAX)	6-5-1995		9.39		9.32		8.70		16.08		10.63		9.35		1.51		1.33
Class C (EGWCX)	7-30-2010		14.17		9.80		8.53		15.17		9.80		8.53		2.26		2.08
Administrator Class (EGWDX)	7-30-2010		–		–		–		16.21		10.82		9.49		1.43		1.20
Institutional Class (EGRYX)	11-19-1997		–		–		–		16.40		11.01		9.70		1.18		0.98
Russell 2000® Growth Index4	–		–		–		–		18.63		12.90		10.95		–		–

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

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

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

Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. 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 Traditional Small Cap Growth Fund 7

Growth of $10,000 investment as of March 31, 2018⁵

^‡  Mr. Smith and Mr. Warner became portfolio managers of the Fund on March 1, 2018.

¹  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 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 19, 2010, is based on the performance of the Fund’s predecessor, Evergreen Growth Fund.

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

³  The manager has contractually committed through July 31, 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 (if any), 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 (the total annual fund operating expenses after fee waivers) as stated in the prospectuses.

⁴  The Russell 2000^® Growth Index measures the performance of those Russell 2000 companies with higher price/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 2000^® 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 Traditional Small Cap Growth Fund Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

∎ The Fund underperformed its benchmark, the Russell 2000^® Growth Index, for the 12-month period that ended March 31, 2018.

∎ Relative weakness within the consumer discretionary, industrials, and health care sectors weighed on the Fund’s performance.

∎ Holdings within the financials and consumer staples sectors generated strong relative performance; an underweight to the real estate and energy sectors also contributed positively.

U.S. stocks rallied for most of the past 12 months, aided by synchronized global growth.

The U.S. stock market benefited from steady improvement in global economic activity and corporate earnings, which more than offset various geopolitical concerns. Market leadership was often found in market segments with strong earnings and favorable earnings revisions, which influenced the solid results from the information technology (IT) sector. However, during parts of this period, market leadership was found in stocks with the highest valuations as well as companies with no earnings, evident specifically in the small-cap biotechnology industry. These market dynamics created a challenging environment at times for the Fund’s emphases of profitable companies and sustainable growth.

Sector allocations became more diversified.

The Fund’s allocation to the IT sector was reduced, while the allocation to the health care sector was increased over this period. These changes in positioning were in an effort to continue managing the overall volatility and stock-specific risks in the Fund. Within IT, the primary change was a decrease in the IT services industry, highlighted by the sale of Silver Spring Networks, Incorporated. Within health care, the key change was an increase to the providers and services industry, highlighted by a greater allocation to AMN Healthcare Services, Incorporated; LHC Group, Incorporated; and The Ensign Group, Incorporated.

Select holdings in the consumer discretionary, industrials, and health care sectors detracted from performance.

The Fund’s underperformance in the consumer discretionary sector was heavily influenced by weakness in Motorcar Parts of America, Incorporated, which suffered in the midst of a relatively mild winter. Consequently, customer demand for the company’s after-market auto parts was less robust than anticipated and earnings estimates declined as a result. Nautilus, Incorporated, also declined over the period as it suffered multiple fundamental disappointments, which led to the position being sold from the Fund. Within industrials, professional services firm WageWorks, Incorporated, declined significantly in the first quarter of 2018 following the announcement by company management of a delay in the company’s filing of financial statements. Within health care, an underweight allocation to the biotechnology industry significantly hindered relative returns as the industry rallied over this period, influenced partly by increased merger and acquisition activity and Food and Drug Administration approvals.

Solid results from financials and consumer staples holdings boosted Fund performance.

The Fund’s success in the financials sector was influenced by the Fund’s holdings in niche consumer growth areas. Green Dot Corporation and LendingTree, Incorporated, continued to benefit from a broad consumer migration to alternative sources of banking, loans, and payments. Green Dot was the top contributor in the Fund as the company continued to generate robust growth largely from its core business of prepaid debit cards. The Fund’s outperformance in consumer staples was driven by Freshpet, Incorporated, which rallied earlier in this period, supported by progress by company management on various operational efficiency initiatives. Finally, the Fund’s underweight to the real estate sector contributed strongly as investors tended to favor companies with more attractive earnings-growth prospects in other sectors.

Caution is warranted but opportunities remain.

Over the past few months, investor attention shifted from widespread bullishness to higher risk awareness. Long-dormant market volatility has spiked, talk of tariffs has increased fears of a trade war, and short-term interest rates have risen meaningfully. We expect that these risk factors, in addition to the potential new ones to emerge, will linger over market sentiment for some time.

Please see footnotes on page 7.

Performance highlights (unaudited) Wells Fargo Traditional Small Cap Growth Fund 9

Although there is considerable caution, in our view opportunities remain. The key aspects of our outlook are for moderate economic growth, low inflation, and rising corporate earnings. We do not see harbingers of a bear market like a recession or credit bubble on the horizon. Even with higher volatility, we see a constructive environment for companies with strong revenue growth, profitable business models, and durable free cash flows. Capital should continue to be drawn to companies with these traits.

This market backdrop should allow the durable fundamentals of the portfolio to be unlocked. We anticipate a market that continues to reward companies that produce superior growth. We remain committed to themes of global e-commerce, mobile payments, cloud computing, automation, and mobile gaming. As such, the portfolio maintains a mix of secular and idiosyncratic growth companies, along with caution around cyclicality and momentum.

Ten largest holdings (%) as of March 31, 20186
AMN Healthcare Services Incorporated	4.04
Green Dot Corporation Class A	3.07
The Trade Desk Incorporated Class A	2.79
Deluxe Corporation	2.76
Planet Fitness Incorporated Class A	2.61
Summit Materials Incorporated Class A	2.60
Blackhawk Network Incorporated	2.52
LogMeIn Incorporated	2.46
LHC Group Incorporated	2.29
Freshpet Incorporated	2.27

Sector distribution as of March 31, 2018⁷

Please see footnotes on page 7.

10 Wells Fargo Traditional Small Cap Growth Fund Fund expenses (unaudited)

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

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from October 1, 2017 to March 31, 2018.

Actual expenses

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

Hypothetical example for comparison purposes

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

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

	Beginning account value 10-1-2017		Ending account value 3-31-2018		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,041.65	$	6.77		1.33	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.30	$	6.69		1.33	%
Class C
Actual	$	1,000.00	$	1,037.53	$	10.57		2.08	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,014.56	$	10.45		2.08	%
Administrator Class
Actual	$	1,000.00	$	1,042.71	$	6.11		1.20	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.95	$	6.04		1.20	%
Institutional Class
Actual	$	1,000.00	$	1,043.56	$	4.99		0.98	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.04	$	4.94		0.98	%

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

Portfolio of investments—March 31, 2018 Wells Fargo Traditional Small Cap Growth Fund 11

Security name	Shares		Value
Common Stocks: 97.23%
Consumer Discretionary: 14.73%
Auto Components: 2.53%
Horizon Global Corporation †		80,900	$	666,616
Motorcar Parts of America Incorporated †		80,000		1,714,400
				2,381,016
Hotels, Restaurants & Leisure: 9.34%
BJ’s Restaurants Incorporated		10,000		449,000
Boyd Gaming Corporation «		60,000		1,911,600
Cedar Fair Entertainment Company		24,000		1,533,120
Dave & Buster’s Entertainment Incorporated †		25,000		1,043,500
Planet Fitness Incorporated Class A †		65,000		2,455,050
Sonic Corporation «		55,000		1,387,650
				8,779,920
Household Durables: 0.57%
TopBuild Corporation †		7,000		535,640
Internet & Direct Marketing Retail: 1.95%
Shutterfly Incorporated †		22,500		1,828,125
Specialty Retail: 0.34%
National Vision Holdings Incorporated †		10,000		323,100
Consumer Staples: 2.27%
Food Products: 2.27%
Freshpet Incorporated Ǡ		130,000		2,138,500
Energy: 0.59%
Energy Equipment & Services: 0.59%
Aspen Aerogels Incorporated †		130,000		555,100
Financials: 8.32%
Banks: 2.20%
Heartland Financial USA Incorporated		39,000		2,068,950
Consumer Finance: 3.07%
Green Dot Corporation Class A †		45,000		2,887,200
Insurance: 1.40%
Stewart Information Services Corporation		30,000		1,318,200
Thrifts & Mortgage Finance: 1.65%
BofI Holding Incorporated Ǡ		30,000		1,215,900
LendingTree Incorporated Ǡ		1,000		328,150
				1,544,050

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

12 Wells Fargo Traditional Small Cap Growth Fund Portfolio of investments—March 31, 2018

Security name	Shares		Value
Health Care: 23.04%
Biotechnology: 3.11%
ACADIA Pharmaceuticals Incorporated Ǡ		7,500	$	168,525
Emergent BioSolutions Incorporated †		18,000		947,700
Ligand Pharmaceuticals Incorporated Ǡ		5,000		825,800
Repligen Corporation †		27,000		976,860
				2,918,885
Health Care Equipment & Supplies: 5.88%
Globus Medical Incorporated Class A †		26,000		1,295,320
Halyard Health Incorporated †		38,000		1,751,040
Inogen Incorporated †		11,000		1,351,240
Nevro Corporation †		13,000		1,126,710
				5,524,310
Health Care Providers & Services: 8.57%
AMN Healthcare Services Incorporated †		67,000		3,802,250
LHC Group Incorporated †		35,000		2,154,600
The Ensign Group Incorporated		80,000		2,104,000
				8,060,850
Health Care Technology: 2.00%
Medidata Solutions Incorporated †		30,000		1,884,300
Life Sciences Tools & Services: 1.70%
Charles River Laboratories International Incorporated †		15,000		1,601,100
Pharmaceuticals: 1.78%
Horizon Pharma plc †		40,000		568,000
Intersect ENT Incorporated †		28,000		1,100,400
				1,668,400
Industrials: 19.52%
Commercial Services & Supplies: 7.02%
Cimpress NV †		4,000		618,800
Deluxe Corporation		35,000		2,590,350
Healthcare Services Group Incorporated		45,000		1,956,600
Mobile Mini Incorporated		33,000		1,435,500
				6,601,250
Electrical Equipment: 2.20%
Generac Holdings Incorporated †		45,000		2,065,950
Machinery: 4.80%
Astec Industries Incorporated		20,000		1,103,600
Franklin Electric Company Incorporated		27,000		1,100,250
REV Group Incorporated		40,000		830,400
Rexnord Corporation †		50,000		1,484,000
				4,518,250

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

Portfolio of investments—March 31, 2018 Wells Fargo Traditional Small Cap Growth Fund 13

Security name	Shares		Value
Professional Services: 2.26%
WageWorks Incorporated †		47,020	$	2,125,304
Road & Rail: 1.60%
Saia Incorporated †		20,000		1,503,000
Trading Companies & Distributors: 1.64%
Siteone Landscape Supply Incorporated †		20,000		1,540,800
Information Technology: 23.76%
Communications Equipment: 0.43%
NETGEAR Incorporated †		7,000		400,400
Electronic Equipment, Instruments & Components: 2.42%
Littelfuse Incorporated		8,000		1,665,440
VeriFone Systems Incorporated †		40,000		615,200
				2,280,640
Internet Software & Services: 7.25%
2U Incorporated †		10,000		840,300
LogMeIn Incorporated		20,000		2,311,000
Quotient Technology Incorporated †		80,000		1,048,000
The Trade Desk Incorporated Class A Ǡ		52,822		2,621,028
				6,820,328
IT Services: 4.58%
Blackhawk Network Incorporated †		53,000		2,369,100
EPAM Systems Incorporated †		10,000		1,145,200
Euronet Worldwide Incorporated †		10,000		789,200
				4,303,500
Semiconductors & Semiconductor Equipment: 3.22%
Advanced Energy Industries Incorporated †		20,000		1,278,000
Integrated Device Technology Incorporated †		27,000		825,120
Monolithic Power Systems Incorporated		8,000		926,160
				3,029,280
Software: 5.86%
Bottomline Technologies (de) Incorporated †		40,000		1,550,000
PTC Incorporated †		11,000		858,110
Rapid7 Incorporated †		75,000		1,917,750
RealPage Incorporated †		23,000		1,184,500
				5,510,360
Materials: 3.60%
Chemicals: 0.75%
Sensient Technologies Corporation		10,000		705,800
Construction Materials: 2.60%
Summit Materials Incorporated Class A †		80,699		2,443,566

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

14 Wells Fargo Traditional Small Cap Growth Fund Portfolio of investments—March 31, 2018

Security name				Shares		Value
Metals & Mining: 0.25%
Allegheny Technologies Incorporated †					10,000	$	236,800
Telecommunication Services: 1.40%
Diversified Telecommunication Services: 1.40%
ORBCOMM Incorporated †					140,000		1,311,799
Total Common Stocks (Cost $70,120,317)							91,414,673
Exchange-Traded Funds: 2.00%
SPDR S&P Biotech ETF «					21,500		1,886,195
Total Exchange-Traded Funds (Cost $1,521,021)							1,886,195
	Yield
Short-Term Investments: 12.12%
Investment Companies: 12.12%
Securities Lending Cash Investment LLC (l)(r)(u)		1.89	%		10,521,186		10,522,238
Wells Fargo Government Money Market Fund Select Class (l)(u)		1.54			870,700		870,700
Total Short-Term Investments (Cost $11,392,938)							11,392,938

Total investments in securities (Cost $83,034,276)	111.35	%		104,693,806
Other assets and liabilities, net	(11.35	)		(10,671,524	)
Total net assets	100.00	%	$	94,022,282

† 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		11,600,829		60,755,268		61,834,911		10,521,186	$	853	$	(855	)	$	66,137	$	10,522,238
Wells Fargo Government Money Market Fund Select Class		3,170,531		21,699,629		23,999,460		870,700		0		0			26,081		870,700
									$	853	$	(855	)	$	92,218	$	11,392,938		12.12	%

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

Statement of assets and liabilities—March 31, 2018 Wells Fargo Traditional Small Cap Growth Fund 15

Assets
Investments in unaffiliated securities (including $10,306,504 of securities loaned), at value (cost $71,641,338)	$	93,300,868
Investments in affiliated securities, at value (cost $11,392,938)		11,392,938
Cash		9,000
Receivable for Fund shares sold		15,005
Receivable for dividends		10,490
Receivable for securities lending income		7,054
Prepaid expenses and other assets		23,549
Total assets		104,758,904
Liabilities
Payable upon receipt of securities loaned		10,521,250
Payable for Fund shares redeemed		71,995
Management fee payable		50,868
Administration fees payable		17,168
Trustees’ fees and expenses payable		2,077
Distribution fee payable		184
Accrued expenses and other liabilities		73,080
Total liabilities		10,736,622
Total net assets	$	94,022,282
NET ASSETS CONSIST OF
Paid-in capital	$	68,779,380
Accumulated net investment loss		(73,600	)
Accumulated net realized gains on investments		3,656,972
Net unrealized gains on investments		21,659,530
Total net assets	$	94,022,282
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	84,737,510
Shares outstanding – Class A1		5,531,244
Net asset value per share – Class A		$15.32
Maximum offering price per share – Class A2		$16.25
Net assets – Class C	$	273,691
Shares outstanding – Class C1		19,628
Net asset value per share – Class C		$13.94
Net assets – Administrator Class	$	132,599
Shares outstanding – Administrator Class1		7,735
Net asset value per share – Administrator Class		$17.14
Net assets – Institutional Class	$	8,878,482
Shares outstanding – Institutional Class1		506,402
Net asset value per share – Institutional Class		$17.53

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 Traditional Small Cap Growth Fund Statement of operations—year ended March 31, 2018

Investment income
Dividends	$	413,634
Securities lending income from affiliates, net		66,137
Income from affiliated securities		26,081
Total investment income		505,852
Expenses
Management fee		795,215
Administration fees
Class A		177,856
Class C		509
Administrator Class		180
Institutional Class		11,025
Shareholder servicing fees
Class A		211,733
Class C		605
Administrator Class		345
Distribution fee
Class C		1,816
Custody and accounting fees		13,879
Professional fees		51,130
Registration fees		67,478
Shareholder report expenses		35,342
Trustees’ fees and expenses		16,753
Other fees and expenses		10,050
Total expenses		1,393,916
Less: Fee waivers and/or expense reimbursements		(177,685	)
Net expenses		1,216,231
Net investment loss		(710,379	)
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		6,531,396
Affiliated securities		853
Net realized gains on investments		6,532,249
Net change in unrealized gains (losses) on:
Unaffiliated securities		8,068,287
Affiliated securities		(855	)
Net change in unrealized gains (losses) on investments		8,067,432
Net realized and unrealized gains (losses) on investments		14,599,681
Net increase in net assets resulting from operations	$	13,889,302

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

Statement of changes in net assets Wells Fargo Traditional Small Cap Growth Fund 17

	Year ended March 31, 2018						Year ended March 31, 2017
Operations
Net investment loss				$	(710,379	)				$	(690,644	)
Net realized gains on investments					6,532,249						8,140,814
Net change in unrealized gains (losses) on investments					8,067,432						9,695,337
Net increase in net assets resulting from operations					13,889,302						17,145,507
Distributions to shareholders from
Net realized gains
Class A					(5,360,360	)					(2,281,810	)
Class C					(16,142	)					(5,379	)
Administrator Class					(7,844	)					(4,301	)
Institutional Class					(468,228	)					(251,489	)
Total distributions to shareholders					(5,852,574	)					(2,542,979	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		100,773			1,525,252			89,073			1,166,255
Class C		3,801			52,022			3,789			47,755
Administrator Class		6,799			114,428			6,204			87,459
Institutional Class		85,364			1,472,577			270,621			4,080,166
					3,164,279						5,381,635
Reinvestment of distributions
Class A		352,388			5,243,537			164,284			2,217,829
Class C		975			13,232			388			4,844
Administrator Class		362			6,032			269			4,025
Institutional Class		26,092			443,822			15,888			242,297
					5,706,623						2,468,995
Payment for shares redeemed
Class A		(795,898	)		(11,972,813	)		(1,362,749	)		(17,646,891	)
Class C		(2,471	)		(34,576	)		(1,303	)		(15,835	)
Administrator Class		(10,531	)		(172,453	)		(176,884	)		(2,575,835	)
Institutional Class		(107,067	)		(1,838,265	)		(447,579	)		(6,776,181	)
					(14,018,107	)					(27,014,742	)
Net decrease in net assets resulting from capital share transactions					(5,147,205	)					(19,164,112	)
Total increase (decrease) in net assets					2,889,523						(4,561,584	)
Net assets
Beginning of period					91,132,759						95,694,343
End of period				$	94,022,282					$	91,132,759
Accumulated net investment loss				$	(73,600	)				$	(12,593	)

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

18 Wells Fargo Traditional Small Cap Growth Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended March 31															Year ended October 31, 2013
CLASS A	2018			2017			2016			2015			20141
Net asset value, beginning of period		$14.08			$12.05			$18.04			$20.37			$23.11			$17.08
Net investment loss		(0.12	)2		(0.10	)2		(0.12	)2		(0.18	)		(0.09	)2		(0.11	)2
Net realized and unrealized gains (losses) on investments		2.35			2.51			(2.13	)		1.33			0.96			6.34
Total from investment operations		2.23			2.41			(2.25	)		1.15			0.87			6.23
Distributions to shareholders from
Net realized gains		(0.99	)		(0.38	)		(3.74	)		(3.48	)		(3.61	)		(0.20	)
Net asset value, end of period		$15.32			$14.08			$12.05			$18.04			$20.37			$23.11
Total return3		16.08	%		20.10	%		(12.86	)%		6.77	%		4.14	%		36.98	%
Ratios to average net assets (annualized)
Gross expenses		1.52	%		1.51	%		1.50	%		1.47	%		1.54	%		1.48	%
Net expenses		1.33	%		1.33	%		1.33	%		1.33	%		1.33	%		1.33	%
Net investment loss		(0.79	)%		(0.77	)%		(0.74	)%		(0.87	)%		(1.04	)%		(0.58	)%
Supplemental data
Portfolio turnover rate		44	%		113	%		123	%		73	%		36	%		77	%
Net assets, end of period (000s omitted)		$84,738			$82,734			$84,139			$123,712			$141,446			$141,933

¹  For the five months ended March 31, 2014. The Fund changed its fiscal year end from October 31 to March 31, effective March 31, 2014.

²  Calculated based upon average shares outstanding

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

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

Financial highlights Wells Fargo Traditional Small Cap Growth Fund 19

(For a share outstanding throughout each period)

	Year ended March 31															Year ended October 31, 2013
CLASS C	2018			2017			2016			2015			20141
Net asset value, beginning of period		$12.99			$11.22			$17.21			$19.73			$22.56			$16.80
Net investment loss		(0.21	)2		(0.18	)2		(0.18	)		(0.29	)2		(0.15	)2		(0.26	)
Net realized and unrealized gains (losses) on investments		2.15			2.33			(2.07	)		1.25			0.93			6.22
Total from investment operations		1.94			2.15			(2.25	)		0.96			0.78			5.96
Distributions to shareholders from
Net realized gains		(0.99	)		(0.38	)		(3.74	)		(3.48	)		(3.61	)		(0.20	)
Net asset value, end of period		$13.94			$12.99			$11.22			$17.21			$19.73			$22.56
Total return3		15.17	%		19.26	%		(13.55	)%		5.98	%		3.85	%		35.92	%
Ratios to average net assets (annualized)
Gross expenses		2.27	%		2.26	%		2.25	%		2.22	%		2.30	%		2.23	%
Net expenses		2.08	%		2.08	%		2.08	%		2.08	%		2.08	%		2.08	%
Net investment loss		(1.54	)%		(1.52	)%		(1.49	)%		(1.61	)%		(1.81	)%		(1.36	)%
Supplemental data
Portfolio turnover rate		44	%		113	%		123	%		73	%		36	%		77	%
Net assets, end of period (000s omitted)		$274			$225			$162			$232			$403			$150

¹  For the five months ended March 31, 2014. The Fund changed its fiscal year end from October 31 to March 31, effective March 31, 2014.

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 Traditional Small Cap Growth Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended March 31															Year ended October 31, 2013
ADMINISTRATOR CLASS	2018			2017			2016			2015			20141
Net asset value, beginning of period		$15.63			$13.29			$19.44			$21.65			$24.33			$17.94
Net investment loss		(0.11	)2		(0.09	)2		(0.10	)2		(0.15	)2		(0.08	)2		(0.09	)2
Net realized and unrealized gains (losses) on investments		2.61			2.81			(2.31	)		1.42			1.01			6.68
Total from investment operations		2.50			2.72			(2.41	)		1.27			0.93			6.59
Distributions to shareholders from
Net realized gains		(0.99	)		(0.38	)		(3.74	)		(3.48	)		(3.61	)		(0.20	)
Net asset value, end of period		$17.14			$15.63			$13.29			$19.44			$21.65			$24.33
Total return3		16.21	%		20.56	%		(12.76	)%		6.93	%		4.18	%		37.21	%
Ratios to average net assets (annualized)
Gross expenses		1.44	%		1.43	%		1.39	%		1.29	%		1.32	%		1.26	%
Net expenses		1.20	%		1.20	%		1.20	%		1.19	%		1.19	%		1.17	%
Net investment loss		(0.66	)%		(0.64	)%		(0.61	)%		(0.73	)%		(0.90	)%		(0.43	)%
Supplemental data
Portfolio turnover rate		44	%		113	%		123	%		73	%		36	%		77	%
Net assets, end of period (000s omitted)		$133			$174			$2,413			$3,128			$3,896			$3,882

¹  For the five months ended March 31, 2014. The Fund changed its fiscal year end from October 31 to March 31, effective March 31, 2014.

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 Traditional Small Cap Growth Fund 21

(For a share outstanding throughout each period)

	Year ended March 31															Year ended October 31, 2013
INSTITUTIONAL CLASS	2018			2017			2016			2015			20141
Net asset value, beginning of period		$15.94			$13.54			$19.69			$21.84			$24.50			$18.03
Net investment income (loss)		(0.08	)2		(0.06	)2		(0.07	)2		(0.11	)2		(0.07	)2		0.00	2,3
Net realized and unrealized gains (losses) on investments		2.66			2.84			(2.34	)		1.44			1.02			6.67
Total from investment operations		2.58			2.78			(2.41	)		1.33			0.95			6.67
Distributions to shareholders from
Net realized gains		(0.99	)		(0.38	)		(3.74	)		(3.48	)		(3.61	)		(0.20	)
Net asset value, end of period		$17.53			$15.94			$13.54			$19.69			$21.84			$24.50
Total return4		16.40	%		20.62	%		(12.58	)%		7.16	%		4.29	%		37.42	%
Ratios to average net assets (annualized)
Gross expenses		1.19	%		1.18	%		1.14	%		1.04	%		1.10	%		1.04	%
Net expenses		0.98	%		0.98	%		0.98	%		0.98	%		0.98	%		0.98	%
Net investment income (loss)		(0.44	)%		(0.43	)%		(0.39	)%		(0.52	)%		(0.69	)%		0.01	%
Supplemental data
Portfolio turnover rate		44	%		113	%		123	%		73	%		36	%		77	%
Net assets, end of period (000s omitted)		$8,878			$8,001			$8,980			$11,812			$17,086			$17,997

¹  For the five months ended March 31, 2014. The Fund changed its fiscal year end from October 31 to March 31, effective March 31, 2014.

²  Calculated based upon average shares outstanding

³  Amount is less than $0.005.

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

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

22 Wells Fargo Traditional Small Cap Growth 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 Traditional Small Cap Growth Fund (the “Fund”) which is a diversified series of the Trust.

2. SIGNIFICANT ACCOUNTING POLICIES

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

Securities valuation

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

Equity securities that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price. If no sale occurs on the principal exchange or market that day, 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 Wells Fargo Asset Management Pricing Committee at 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 Wells Fargo Asset Management Pricing Committee 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.

Securities lending

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

Notes to financial statements Wells Fargo Traditional Small Cap Growth Fund 23

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, if any, 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.

Distributions to shareholders

Distributions to shareholders from net investment income and any net realized gains are recorded on the ex-dividend date and paid at least annually. 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 at year end.

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 March 31, 2018, the aggregate cost of all investments for federal income tax purposes was $83,158,119 and the unrealized gains (losses) consisted of:

Gross unrealized gains	$	23,840,533
Gross unrealized losses		(2,304,846	)
Net unrealized gains	$	21,535,687

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 dividends from certain securities, net operating losses, and recognition of partnership income. At March 31, 2018, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Paid-in capital	Accumulated net investment loss	Accumulated net realized gains on investments
$(4,963)	$649,372	$(644,409)

As of March 31, 2018, the Fund had a qualified late-year ordinary loss of $61,372 which will be recognized on the first day of the following fiscal year.

24 Wells Fargo Traditional Small Cap Growth Fund Notes to financial statements

Class allocations

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

3. FAIR VALUATION MEASUREMENTS

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

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

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

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

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

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of March 31, 2018:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	13,847,801	$	0	$	0	$	13,847,801
Consumer staples		2,138,500		0		0		2,138,500
Energy		555,100		0		0		555,100
Financials		7,818,400		0		0		7,818,400
Health care		21,657,845		0		0		21,657,845
Industrials		18,354,554		0		0		18,354,554
Information technology		22,344,508		0		0		22,344,508
Materials		3,386,166		0		0		3,386,166
Telecommunication services		1,311,799		0		0		1,311,799
Exchange-traded funds		1,886,195		0		0		1,886,195
Short-term investments
Investment companies		870,700		0		0		870,700
Investments measured at net asset value*								10,522,238
Total assets	$	94,171,568	$	0	$	0	$	104,693,806

* 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 $10,522,238 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At March 31, 2018, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

Notes to financial statements Wells Fargo Traditional Small Cap Growth Fund 25

4. TRANSACTIONS WITH AFFILIATES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo, is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the subadviser, providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.85% and declining to 0.71% as the average daily net assets of the Fund increase. For the year ended March 31, 2018, the management fee was equivalent to an annual rate of 0.85% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. WellsCap is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.55% and declining to 0.40% as the average daily net assets of the Fund increase.

Administration fees

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

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

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through July 31, 2018 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 1.33% for Class A shares, 2.08% for Class C shares, 1.20% for Administrator Class shares, and 0.98% for Institutional Class shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

Distribution fee

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

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the year ended March 31, 2018, Funds Distributor received $632 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 March 31, 2018.

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 under 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.

26 Wells Fargo Traditional Small Cap Growth Fund Notes to financial statements

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended March 31, 2018 were $40,141,287 and $47,765,367, 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 March 31, 2018, there were no borrowings by the Fund under the agreement.

7. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended March 31, 2018 and March 31, 2017 were as follows:

	Year ended March 31
	2018		2017
Ordinary income	$	2,191,875	$	0
Long-term capital gain		3,660,699		2,542,979

As of March 31, 2018, the components of distributable earnings on a tax basis were as follows:

Undistributed long-term gain	Unrealized gains	Late-year ordinary losses deferred
$3,780,815	$21,535,687	$(61,372)

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 Traditional Small Cap Growth Fund 27

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of the Wells Fargo Traditional Small Cap Growth Fund (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, including the portfolio of investments, as of March 31, 2018, 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 related notes (collectively, the “financial statements”) and the financial highlights for each of the years in the four-year period then ended, the period from November 1, 2013 to March 31, 2014, and the year ended October 31, 2013. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of March 31, 2018, 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 noted above, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

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 are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of March 31, 2018, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.

We have not been able to determine the specific year that we began serving as the auditor of one or more Wells Fargo Funds investment companies, however we are aware that we have served as the auditor of one or more Wells Fargo Funds investment companies since at least 1955.

Boston, Massachusetts

May 23, 2018

28 Wells Fargo Traditional Small Cap Growth Fund Other information (unaudited)

TAX INFORMATION

For corporate shareholders, pursuant to Section 854 of the Internal Revenue Code, 34.42% of ordinary income dividends qualify for the corporate dividends-received deduction for the fiscal year ended March 31, 2018.

Pursuant to Section 852 of the Internal Revenue Code, $3,660,699 was designated as a 20% rate gain distribution for the fiscal year ended March 31, 2018.

Pursuant to Section 854 of the Internal Revenue Code, $753,088 of income dividends paid during the fiscal year ended March 31, 2018 has been designated as qualified dividend income (QDI).

For the fiscal year ended March 31, 2018, $2,191,875 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 Traditional Small Cap Growth 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 153 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; Chair Liaison, since 2018	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 the Glimmerglass Festival. She is also an inactive Chartered Financial Analyst.	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 Traditional Small Cap Growth 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; Governance Committee Chairman, since 2018	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; Chairman, since 2018; Vice Chairman, from 2017 to 2018	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
James G. Polisson***** (Born 1959)	Trustee, since 2018; Advisory Board Member, from 2017 to 2018	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. Trustee of the San Francisco Mechanics’ Institute, a non-profit organization, from 2013 to 2015. 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.	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. Trustee of the Evergreen Fund 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
Pamela Wheelock***** (Born 1959)	Trustee, since 2018; Advisory Board Member, from 2017 to 2018	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.	Asset Allocation Trust

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

** Jane Freeman became Chair Liaison effective January 1, 2018.

*** Olivia Mitchell became Chairman of the Governance Committee effective January 1, 2018.

**** Timothy Penny became Chairman effective January 1, 2018.

***** James Polisson and Pamela Wheelock each became a Trustee effective January 1, 2018.

Other information (unaudited) Wells Fargo Traditional Small Cap Growth 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.
Alexander Kymn* (Born 1973)	Secretary, since 2018; Chief Legal Officer, since 2018	Senior Company Counsel of Wells Fargo Bank, N.A. since 2018 (previously Senior Counsel from 2007 to 2018). Vice President of Wells Fargo Funds Management, LLC from 2008 to 2014.
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 77 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 76 funds and Assistant Treasurer of 77 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.

* Alexander Kymn became the Secretary and Chief Legal Officer effective April 17, 2018.

** David Messman was the Secretary and Chief Legal Officer until April 16, 2018.

32 Wells Fargo Traditional Small Cap Growth 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

INR —  Indian rupee

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 Agency

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

SIFMA —  Securities Industry and Financial Markets Association

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

© 2018 Wells Fargo Funds Management, LLC. All rights reserved.

309986 05-18 A247/AR247 03-18

Annual Report

March 31, 2018

Wells Fargo Precious Metals 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
Consolidated portfolio of investments	11
Financial statements
Consolidated statement of assets and liabilities	13
Consolidated statement of operations	14
Consolidated statement of changes in net assets	15
Consolidated financial highlights	16
Notes to consolidated financial statements	20
Report of independent registered public accounting firm	26
Other information	27
List of abbreviations	31

The views expressed and any forward-looking statements are as of March 31, 2018, 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 Precious Metals Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

Dear Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Precious Metals Fund for the 12-month period that ended March 31, 2018. During the last three quarters of 2017, investors enjoyed consistently rising equity values globally. Short-term interest rates tended to increase, while long-term rates remained flat to lower. During the final two months of the first quarter of 2018, equity market volatility returned, stocks reversed year-to-date gains, and bond yields rose while prices fell.

For the period, U.S. stocks, as measured by the S&P 500 Index,¹ gained 13.99% and international stocks, as measured by the MSCI ACWI ex USA Index (Net),² added 16.53%. Emerging market stocks, as measured by the MSCI EM Index (Net),³ added 24.93%. In bond markets, the Bloomberg Barclays U.S. Aggregate Bond Index⁴ added 1.20% and the Bloomberg Barclays Municipal Bond Index⁵ added 2.66% while fixed-income investments outside the U.S. gained 11.75%, according to the Bloomberg Barclays Global Aggregate ex-USD Index.⁶ The ICE BofAML U.S. High Yield Index⁷ earned 3.69%.

Through the last nine months of 2017, stocks advanced on synchronized global growth, which led to higher investor and consumer confidence. The first quarter of 2018 began with strong stock market gains in January. A strong January 2018 U.S. employment report and inflation concerns prompted equity volatility in February. Investor optimism for growth was supplanted with concerns over trade tensions, increased interest rates, and the prospect of new data privacy regulations.

Reactions to U.S. interest rate increases were uneven across the yield curve and globally.

The U.S. Federal Reserve (Fed) increased the federal funds rate three times during the 12-month period for a combined 75 basis points (bps; 100 bps equals 1.00%). Following an increase in March 2017, short-term bond yields in the U.S. rose while longer-term Treasury yields were little changed. Municipal bond returns were positive, helped by strong demand and constrained new-issue supply. The Fed raised the target interest rate once again in June 2017 to a range of 1.00% to 1.25%. Ten-year U.S. Treasury yields declined, the yield curve flattened, and long-term bond prices benefited.

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 indices or any securities or financial products. This report is not approved, reviewed, or produced by MSCI. You cannot invest directly in an index.

³ The MSCI Emerging Markets (EM) Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure large- and mid-cap equity market performance of emerging markets. The MSCI EM Index (Net) consists of the following 24 emerging market country indices: 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.

⁴  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.

⁵  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.

⁶  The Bloomberg Barclays Global Aggregate ex-USD Index 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.

⁷  The ICE BofAML U.S. High Yield Index is a market-capitalization-weighted index of domestic and Yankee high-yield bonds. The index tracks the performance of high-yield securities traded in the U.S. bond market. You cannot invest directly in an index. Copyright 2018. ICE Data Indices, LLC. All rights reserved.

Letter to shareholders (unaudited) Wells Fargo Precious Metals Fund 3

Internationally, central banks maintained low interest rates and accommodative monetary policies that supported business activity and stock values in foreign markets. A weaker U.S. dollar was generally supportive of business activity in regions around the globe. The Bank of Japan continued its accommodative monetary policies, and industrial production, retail sales, and fixed asset investment increased in China.

Growth continued through the summer of 2017.

Globally, stocks moved higher during the third quarter of 2017. Low inflation and interest rates supported accelerating global economic growth and corporate earnings. Brief episodes of geopolitical tensions, often associated with North Korea’s advancing nuclear missile program, flaring conflicts in the Middle East, and uncertainty surrounding U.S. trade policies, did not discourage investing activity.

In the U.S., economic data released during the quarter reflected a generally healthy economy. Second-quarter economic output grew at a 3.1% annual rate. Stocks in international developed and emerging markets continued to benefit from improving economic growth.

Positive economic and market news continued as 2017 closed and 2018 began.

During the fourth quarter of 2017, stock markets continued the move higher. Third-quarter economic output in the U.S. grew at a 3.2% annual rate. The unemployment rate fell to a 17-year low of 4.1%. Tax reform passed and wage growth data improved, encouraging increased business and consumer spending.

Fed officials announced in October 2017 plans to begin unwinding its $4.5 trillion portfolio of bonds and other assets accumulated during rounds of quantitative easing conducted since the 2008–2009 recession. Still, restrained inflation kept long-term bond rates steady and the flattened yield curve persisted. The Fed raised the federal funds rate target to a range of 1.25% to 1.50% in December 2017 and began selling bonds held in its portfolio.

2018 opened with continued stock advances, then volatility.

Improving business and economic data globally continued to support stocks through January 2018. Political wrangling in the U.S. over budget resolutions could not dissuade investors from buying stocks as payrolls and factory orders increased. Long-term interest rates in the U.S. trended higher as the yield curve steepened—the 10-year Treasury rate moved from 2.46% to 2.84% and the 30-year rate moved from 2.81% to 3.08% during January 2018.

Investor sentiment shifted in February as inflation concerns emerged in the U.S. when readings from the Producer Price Index in January rose 2.5% year over year. During February, the U.S. market endured a loss from January’s high of nearly 12% before recovering much of that loss. The Fed raised the federal funds rate in March 2018. Bond yields rose across the yield curve.

During January 2018, purchasing managers’ indices in China, the eurozone, India, and Japan reported data for December that indicated continued growth. Despite positive economic signals and business fundamentals, international stock values fell during February and March 2018, swept up in the selling momentum in U.S. markets.

Globally, stocks moved higher during the third quarter of 2017.

During February, the U.S. market endured a loss from January’s high of nearly 12% before recovering much of that loss.

4 Wells Fargo Precious Metals 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.

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6 Wells Fargo Precious Metals Fund Performance highlights (unaudited)

Investment objective

The Fund seeks long-term capital appreciation.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Michael Bradshaw, CFA^®

Oleg Makhorine

Average annual total returns (%) as of March 31, 2018¹

		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 (EKWAX)	1-20-1998		(12.89	)		(9.84	)		(5.66	)		(7.56	)		(8.77	)		(5.10	)	1.21	1.09
Class C (EKWCX)	1-29-1998		(9.24	)		(9.44	)		(5.81	)		(8.24	)		(9.44	)		(5.81	)	1.96	1.84
Administrator Class (EKWDX)	7-30-2010		–			–			–			(7.40	)		(8.63	)		(4.97	)	1.13	0.95
Institutional Class (EKWYX)	2-29-2000		–			–			–			(7.27	)		(8.50	)		(4.82	)	0.88	0.79
FTSE Gold Mines Index4	–		–			–			–			(4.94	)		(8.30	)		(6.13	)	–	–
S&P 500 Index5	–		–			–			–			13.99			13.31			9.49		–	–

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.

While the S&P 500 Index is comprised of U.S. equity securities of companies diversified across ten sectors, the Fund’s holdings are concentrated primarily in precious metals related stocks. Therefore, the performance of the S&P 500 Index is displayed only to show how the concentrated Fund performed compared with a diversified selection of U.S. equity securities.

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. 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. Funds that concentrate their investments in limited sectors, such as gold-related investments, are more vulnerable to adverse market, economic, regulatory, political, or other developments affecting those sectors. 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, geographic, non-diversification risk, smaller-company securities risk, and subsidiary 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 Precious Metals Fund 7

Growth of $10,000 investment as of March 31, 2018⁶

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 19, 2010, is based on the Fund’s predecessor Evergreen Precious Metals Fund.

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

³  The manager has contractually committed through July 31, 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 (if any), 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 (the total annual fund operating expenses after fee waivers) as stated in the prospectuses.

⁴  FTSE Gold Mines Index is an unmanaged, open-ended index designed to reflect the performance of the worldwide market in the shares of companies whose principal activity is the mining of gold. You cannot invest directly in an index.

⁵  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.

⁶  The chart compares the performance of Class A shares for the most recent ten years with the FTSE Gold Mines 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%.

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

⁸  Amounts are calculated based on the total long-term investments of the Fund. These amounts are subject to change and may have changed since the date specified.

* This security was no longer held at the end of the reporting period.

8 Wells Fargo Precious Metals Fund Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

∎ The Fund underperformed the FTSE Gold Mines Index for the 12-month period that ended March 31, 2018.

∎ The Fund’s positions in Torex Gold Resources Incorporated, Pretium Resources Incorporated*, and Mag Silver Corporation detracted from results, as did its underweight to Newmont Mining Corporation and Northern Star Resources Limited.

∎ The Fund’s holdings in Royal Gold, Incorporated, and Franco-Nevada Corporation aided results during the period. Overweights to Kirkland Lake Gold Limited, Kinross Gold Corporation, and B2Gold Corporation also helped results.

∎ The price of gold rose approximately 6.1% during the 12-month period, and the share prices of precious metals stocks underperformed the gold price.

The price of gold declined 0.6% during the first quarter of the reporting period after positive economic commentary from U.S. Federal Reserve (Fed) Chair Janet Yellen on June 14 led to an increase in bond yields. During the second and third quarters of the reporting period, gold prices rose 5%. The gold price was propelled higher during the summer months by rising military tensions between the U.S. and North Korea. During the fourth quarter of the reporting period, the gold price rose 1.7%. Fears of rising inflation, uncertainty around global trade, and a declining stock market provided the backdrop for a higher gold price.

Purchases and sales of gold exchange-traded funds (ETFs) have an impact on gold prices. Purchases of gold ETFs increased during every quarter of the reporting period, positively affecting the price of gold. During the second quarter of the reporting period, gold-backed ETF purchases accelerated as rising military tensions with North Korea caused the stock market and bond yields to fall.

Ten largest holdings (%) as of March 31, 20187
Newmont Mining Corporation	7.82
Randgold Resources Limited ADR	7.62
Royal Gold Incorporated	5.63
Kinross Gold Corporation	5.12
Kirkland Lake Gold Limited	4.35
B2Gold Corporation	4.25
Gold Bullion	4.25
Newcrest Mining Limited	3.85
Goldcorp Incorporated	3.46
Agnico Eagle Mines Limited	3.41

Gold-mining stocks underperformed relative to the price of gold.

The prices of gold-mining stocks typically rise or fall more sharply than the price of gold. However, this was not the case during the 12-month reporting period. Companies that delivered better-than-expected operating and financial results fared the best, while those with assets domiciled in Australia also outperformed.

Two of the Fund’s most noteworthy detractors were Torex Gold and Pretium Resources. Torex Gold declined after the firm announced on November 6, 2017, that because of an illegal blockade at its El Limon Mine in Mexico, the company would be suspending mining operations. Pretium dropped on news that the commissioning

of its Brucejack Mine in Canada was behind schedule and, as a result, the 2018 operating plan would be lower than expected. The Fund’s underweight to Newmont Mining also detracted from performance as the company benefited from better-than-expected operating and financial results during the reporting period.

Royal Gold was among the Fund’s best contributors. The company benefited from better-than-expected financial results during the reporting period. Kirkland Lake Gold’s share price more than doubled during the reporting period as exploration success at its Fosterville Mine in Australia led to a doubling of gold reserves. Other key contributors included Kinross Gold, B2Gold, and Franco-Nevada.

Please see footnotes on page 7.

Performance highlights (unaudited) Wells Fargo Precious Metals Fund 9

Country allocation as of March 31, 2018⁸

In our view, investment in gold and precious metals companies likely will remain a perceived hedge against economic and political uncertainty.

We believe the short-term outlook for gold prices depends largely on economic data and their resulting impact on U.S. interest rates and the U.S. dollar. In addition, global trade tensions between the U.S. and China could negatively affect economic growth and cause the Fed to delay further interest rate increases. Should this occur, we believe the economic environment likely would continue to support gold prices and gold stocks.

Over the longer term, we believe the primary drivers of gold are positive. First, rising fiscal deficits in the U.S. could cause the dollar to weaken. Second, increasing inflation in the U.S., caused by a tight labor market and higher cost imports, could benefit the price of gold. And finally, increased stock market volatility from rising geopolitical risks may cause investors to offset this risk by adding gold to their investment portfolios.

We believe gold-related stocks may have better appreciation potential than the metal itself. However, stock selection will remain important because company fundamentals tend to drive stock prices; higher-quality companies with internal growth catalysts, such as effective execution of business plans and mining successes, are most likely to outperform.

Please see footnotes on page 7.

10 Wells Fargo Precious Metals Fund Fund expenses (unaudited)

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

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from October 1, 2017 to March 31, 2018.

Actual expenses

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

Hypothetical example for comparison purposes

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

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

	Beginning account value 10-1-2017		Ending account value 3-31-2018		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	921.84	$	4.70		0.98	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.04	$	4.94		0.98	%
Class C
Actual	$	1,000.00	$	918.42	$	8.27		1.73	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.31	$	8.70		1.73	%
Administrator Class
Actual	$	1,000.00	$	922.66	$	4.12		0.86	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.64	$	4.33		0.86	%
Institutional Class
Actual	$	1,000.00	$	923.21	$	3.21		0.67	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.59	$	3.38		0.67	%

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).

Consolidated portfolio of investments—March 31, 2018 Wells Fargo Precious Metals Fund 11

Security name	Shares		Value
Common Stocks: 93.76%
Australia: 6.20%
Evolution Mining Limited (Materials, Metals & Mining)		2,000,000	$	4,689,079
Newcrest Mining Limited (Materials, Metals & Mining)		772,294		11,648,181
Northern Star Resources Limited (Materials, Metals & Mining)		500,000		2,426,788
				18,764,048
Canada: 59.83%
Agnico-Eagle Mines Limited (Materials, Metals & Mining)		245,164		10,314,049
Agnico-Eagle Mines Limited-Legend Shares (Materials, Metals & Mining)		35,000		1,472,450
Agnico-Eagle Mines Limited-U.S. Exchange Traded Shares (Materials, Metals & Mining)		212,370		8,934,260
Alamos Gold Incorporated Class A (Materials, Metals & Mining)		1,428,980		7,431,339
B2Gold Corporation (Materials, Metals & Mining) †		4,700,000		12,877,712
Barrick Gold Corporation (Materials, Metals & Mining)		549,083		6,836,083
Centerra Gold Incorporated-Legend Shares (Materials, Metals & Mining) 144A		350,000		2,007,607
Continental Gold Incorporated (Materials, Metals & Mining) †		500,000		1,373,850
Detour Gold Corporation (Materials, Metals & Mining) †		521,057		5,273,864
Detour Gold Corporation-Legend Shares (Materials, Metals & Mining) †144A		525,000		5,313,773
Detour Gold Corporation-Legend Shares (Materials, Metals & Mining) †		90,000		910,933
Endeavour Mining Corporation (Materials, Metals & Mining) †		480,000		8,855,979
Franco-Nevada Corporation-Legend Shares (Materials, Metals & Mining) 144A		142,948		9,752,885
Goldcorp Incorporated (Materials, Metals & Mining)		757,454		10,459,197
Goldcorp Incorporated-U.S. Exchange Traded Shares (Materials, Metals & Mining)		300,694		4,155,591
IAMGOLD Corporation (Materials, Metals & Mining) †		1,650,000		8,555,129
Kinross Gold Corporation (Materials, Metals & Mining) †		3,925,553		15,509,035
Kirkland Lake Gold Limited (Materials, Metals & Mining)		850,000		13,175,379
Mag Silver Corporation (Materials, Metals & Mining) †		580,000		5,681,375
Mag Silver Corporation-Legend Shares (Materials, Metals & Mining) †		100,000		979,547
OceanaGold Corporation (Materials, Metals & Mining)		1,200,000		3,232,041
Osisko Gold Royalties Limited (Materials, Metals & Mining)		246,700		2,382,076
Pan American Silver Corporation (Materials, Metals & Mining)		475,000		7,671,250
Platinum Group Metals Limited-Legend Shares (Materials, Metals & Mining)		80,000		23,907
Semafo Incorporated (Materials, Metals & Mining) †		2,860,400		8,236,957
SSR Mining Incorporated (Materials, Metals & Mining) †		350,000		3,360,000
Tahoe Resources Incorporated (Materials, Metals & Mining)		84,820		398,309
Tahoe Resources Incorporated-Legend Shares (Materials, Metals & Mining)		280,000		1,314,860
Torex Gold Resources Incorporated (Materials, Metals & Mining) †		400,000		2,455,854
Torex Gold Resources Incorporated-Legend Shares (Materials, Metals & Mining) †144A		185,000		1,135,833
Torex Gold Resources Incorporated-Legend Shares (Materials, Metals & Mining) †		266,250		1,634,678
Wheaton Precious Metals Corporation (Materials, Metals & Mining)		12,950		263,855
Wheaton Precious Metals Corporation-U.S. Exchange Traded Shares (Materials, Metals & Mining)		380,000		7,740,600
Yamana Gold Incorporated (Materials, Metals & Mining)		500,000		1,381,612
				181,101,869
South Africa: 2.37%
AngloGold Ashanti Limited ADR (Materials, Metals & Mining)		755,591		7,170,560
United Kingdom: 11.91%
Centamin plc (Materials, Metals & Mining)		1,200,000		2,601,810
Fresnillo plc (Materials, Metals & Mining)		500,000		8,927,933

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

12 Wells Fargo Precious Metals Fund Consolidated portfolio of investments—March 31, 2018

Security name				Shares		Value
United Kingdom (continued)
Hochschild Mining plc (Materials, Metals & Mining)					526,470	$	1,473,883
Randgold Resources Limited ADR (Materials, Metals & Mining)					277,000		23,057,480
							36,061,106
United States: 13.45%
Newmont Mining Corporation (Materials, Metals & Mining)					605,455		23,655,127
Royal Gold Incorporated (Materials, Metals & Mining)					198,436		17,039,699
							40,694,826
Total Common Stocks (Cost $218,290,535)							283,792,409
				Troy ounces
Commodities: 4.25%
Gold Bullion †**					9,690		12,854,044
Total Commodities (Cost $5,772,407)							12,854,044
	Yield			Shares
Short-Term Investments: 1.63%
Investment Companies: 1.63%
Wells Fargo Government Money Market Fund Select Class (l)(u)		1.54	%		4,941,346		4,941,346
Total Short-Term Investments (Cost $4,941,346)							4,941,346

Total investments in securities (Cost $229,004,288)	99.64	%		301,587,799
Other assets and liabilities, net	0.36			1,091,155
Total net assets	100.00	%	$	302,678,954

† Non-income-earning security

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

** Represents an investment held in Special Investments (Cayman) SPC, the consolidated entity.

(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.

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		11,654,511		119,863,191		126,576,356		4,941,346	$	0	$	0	$	53,087	$	4,941,346		1.63	%

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

Consolidated statement of assets and liabilities—March 31, 2018 Wells Fargo Precious Metals Fund 13

Assets
Investments in unaffiliated securities, at value (cost $218,290,535)	$	283,792,409
Investments in commodities, at value (cost $5,772,407)		12,854,044
Investments in affiliated securities, at value (cost $4,941,346)		4,941,346
Cash		76,256
Foreign currency, at value (cost $649,067)		648,054
Receivable for investments sold		1,406
Receivable for Fund shares sold		657,786
Receivable for dividends		824,673
Prepaid expenses and other assets		55,919
Total assets		303,851,893
Liabilities
Payable for Fund shares redeemed		670,700
Management fee payable		151,797
Administration fees payable		48,869
Distribution fees payable		21,628
Trustees’ fees and expenses payable		2,959
Accrued expenses and other liabilities		276,986
Total liabilities		1,172,939
Total net assets	$	302,678,954
NET ASSETS CONSIST OF
Paid-in capital	$	421,002,675
Accumulated net investment loss		(12,736	)
Accumulated net realized losses on investments		(190,892,640	)
Net unrealized gains on investments		72,581,655
Total net assets	$	302,678,954
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	177,859,007
Shares outstanding – Class A1		5,422,358
Net asset value per share – Class A		$32.80
Maximum offering price per share – Class A2		$34.80
Net assets – Class C	$	33,021,754
Shares outstanding – Class C1		1,135,318
Net asset value per share – Class C		$29.09
Net assets – Administrator Class	$	9,147,981
Shares outstanding – Administrator Class1		276,499
Net asset value per share – Administrator Class		$33.09
Net assets – Institutional Class	$	82,650,212
Shares outstanding – Institutional Class1		2,481,838
Net asset value per share – Institutional Class		$33.30

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.

14 Wells Fargo Precious Metals Fund Consolidated statement of operations—March 31, 2018

Investment income
Dividends (net of foreign withholding taxes of $149,869)	$	2,536,280
Income from affiliated securities		53,087
Total investment income		2,589,367
Expenses
Management fee		2,352,199
Administration fees
Class A		457,760
Class B		43	1
Class C		84,751
Administrator Class		19,567
Institutional Class		115,006
Shareholder servicing fees
Class A		544,952
Class B		52	1
Class C		100,894
Administrator Class		37,427
Distribution fees
Class B		155	1
Class C		302,682
Custody and accounting fees		69,486
Professional fees		73,238
Registration fees		100,469
Shareholder report expenses		67,301
Trustees’ fees and expenses		20,950
Interest expense		2,025
Other fees and expenses		38,602
Total expenses		4,387,559
Less: Fee waivers and/or expense reimbursements		(612,569	)
Net expenses		3,774,990
Net investment loss		(1,185,623	)
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		(3,435,693	)
Commodities		2,845,965
Net realized losses on investments		(589,728	)
Net change in unrealized gains (losses) on:
Unaffiliated securities		(22,203,670	)
Commodities		(1,973,726	)
Net change in unrealized gains (losses) on investments		(24,177,396	)
Net realized and unrealized gains (losses) on investments		(24,767,124	)
Net decrease in net assets resulting from operations	$	(25,952,747	)

¹  For the period from April 1, 2017 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.

Consolidated statement of changes in net assets Wells Fargo Precious Metals Fund 15

	Year ended March 31, 2018						Year ended March 31, 2017
Operations
Net investment loss				$	(1,185,623	)				$	(2,691,281	)
Net realized losses on investments					(589,728	)					(13,480,723	)
Net change in unrealized gains (losses) on investments					(24,177,396	)					53,869,022
Net increase (decrease) in net assets resulting from operations					(25,952,747	)					37,697,018
Distributions to shareholders from
Net investment income
Class A					(2,808,058	)					(2,528,219	)
Class C					(414,068	)					(93,205	)
Administrator Class					(169,120	)					(171,836	)
Institutional Class					(1,238,811	)					(1,107,568	)
Total distributions to shareholders					(4,630,057	)					(3,900,828	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		1,343,343			47,874,671			3,226,333			129,043,997
Class C		71,931			2,255,869			176,439			6,487,911
Administrator Class		312,074			11,409,031			400,135			16,365,612
Institutional Class		1,240,353			44,707,060			2,035,032			80,762,220
					106,246,631						232,659,740
Reinvestment of distributions
Class A		76,499			2,579,538			73,573			2,335,195
Class C		12,259			367,387			2,603			73,806
Administrator Class		4,880			165,920			5,281			168,842
Institutional Class		34,049			1,164,824			32,082			1,030,807
					4,277,669						3,608,650
Payment for shares redeemed
Class A		(2,732,751	)		(97,070,775	)		(3,783,850	)		(149,375,218	)
Class B		(9,235	)1		(291,832	)1		(43,303	)		(1,545,178	)
Class C		(467,766	)		(14,797,679	)		(469,094	)		(15,888,846	)
Administrator Class		(463,024	)		(16,820,569	)		(471,423	)		(17,496,401	)
Institutional Class		(1,251,776	)		(44,720,355	)		(1,419,312	)		(56,098,146	)
					(173,701,210	)					(240,403,789	)
Net decrease in net assets resulting from capital share transactions					(63,176,910	)					(4,135,399	)
Total increase (decrease) in net assets					(93,759,714	)					29,660,791
Net assets
Beginning of period					396,438,668						366,777,877
End of period				$	302,678,954					$	396,438,668
Undistributed (accumulated) net investment income (loss)				$	(12,736	)				$	4,610,365

¹  For the period from April 1, 2017 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.

16 Wells Fargo Precious Metals Fund Consolidated financial highlights

(For a share outstanding throughout each period)

	Year ended March 31
CLASS A	2018			2017			2016			2015			20141
Net asset value, beginning of period		$35.99			$32.73			$28.99			$36.65			$53.59
Net investment income (loss)		(0.11	)2		(0.22	)2		(0.05	)		(0.11	)2		0.05	2
Net realized and unrealized gains (losses) on investments		(2.60	)		3.85			3.79			(7.55	)		(16.78	)
Total from investment operations		(2.71	)		3.63			3.74			(7.66	)		(16.73	)
Distributions to shareholders from
Net investment income		(0.48	)		(0.37	)		0.00			0.00			0.00
Net realized gains		0.00			0.00			0.00			0.00			(0.21	)
Total distributions to shareholders		(0.48	)		(0.37	)		0.00			0.00			(0.21	)
Net asset value, end of period		$32.80			$35.99			$32.73			$28.99			$36.65
Total return3		(7.56	)%		11.24	%		12.90	%		(20.90	)%		(31.17	)%
Ratios to average net assets (annualized)
Gross expenses		1.21	%		1.20	%		1.23	%		1.23	%		1.22	%
Net expenses		1.04	%		1.09	%		1.10	%		1.10	%		1.09	%
Net investment income (loss)		(0.33	)%		(0.57	)%		(0.24	)%	��	(0.30	)%		0.12	%
Supplemental data
Portfolio turnover rate		27	%4		21	%4		18	%4		9	%4		16	%
Net assets, end of period (000s omitted)		$177,859			$242,423			$236,310			$211,477			$300,906

¹ Amounts do not reflect the consolidated financial results of its wholly-owned subsidiary.

²  Calculated based upon average shares outstanding

³  Total return calculations do not include any sales charges.

⁴  Portfolio turnover rate includes the purchases and sales transactions of its wholly-owned subsidiary.

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

Consolidated financial highlights Wells Fargo Precious Metals Fund 17

(For a share outstanding throughout each period)

	Year ended March 31
CLASS C	2018			2017			2016			2015			20141
Net asset value, beginning of period		$32.07			$29.10			$25.97			$33.08			$48.76
Net investment loss		(0.33	)2		(0.46	)2		(0.24	)2		(0.35	)2		(0.22	)2
Net realized and unrealized gains (losses) on investments		(2.30	)		3.49			3.37			(6.76	)		(15.25	)
Total from investment operations		(2.63	)		3.03			3.13			(7.11	)		(15.47	)
Distributions to shareholders from
Net investment income		(0.35	)		(0.06	)		0.00			0.00			0.00
Net realized gains		0.00			0.00			0.00			0.00			(0.21	)
Total distributions to shareholders		(0.35	)		(0.06	)		0.00			0.00			(0.21	)
Net asset value, end of period		$29.09			$32.07			$29.10			$25.97			$33.08
Total return3		(8.24	)%		10.42	%		12.05	%		(21.49	)%		(31.67	)%
Ratios to average net assets (annualized)
Gross expenses		1.96	%		1.95	%		1.99	%		1.98	%		1.97	%
Net expenses		1.79	%		1.84	%		1.85	%		1.85	%		1.84	%
Net investment loss		(1.07	)%		(1.32	)%		(0.99	)%		(1.06	)%		(0.62	)%
Supplemental data
Portfolio turnover rate		27	%4		21	%4		18	%4		9	%4		16	%
Net assets, end of period (000s omitted)		$33,022			$48,710			$52,648			$59,074			$94,865

¹  Amounts do not reflect the consolidated financial results of its wholly-owned subsidiary.

²  Calculated based upon average shares outstanding

³  Total return calculations do not include any sales charges.

⁴  Portfolio turnover rate includes the purchases and sales transactions of its wholly-owned subsidiary.

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

18 Wells Fargo Precious Metals Fund Consolidated financial highlights

(For a share outstanding throughout each period)

	Year ended March 31
ADMINISTRATOR CLASS	2018			2017			2016			2015			20141
Net asset value, beginning of period		$36.27			$32.98			$29.17			$36.82			$53.75
Net investment income (loss)		(0.09	)2		(0.17	)2		(0.03	)2		(0.06	)2		0.10	2
Net realized and unrealized gains (losses) on investments		(2.59	)		3.87			3.84			(7.59	)		(16.82	)
Total from investment operations		(2.68	)		3.70			3.81			(7.65	)		(16.72	)
Distributions to shareholders from
Net investment income		(0.50	)		(0.41	)		0.00			0.00			0.00
Net realized gains		0.00			0.00			0.00			0.00			(0.21	)
Total distributions to shareholders		(0.50	)		(0.41	)		0.00			0.00			(0.21	)
Net asset value, end of period		$33.09			$36.27			$32.98			$29.17			$36.82
Total return		(7.40	)%		11.37	%		13.06	%		(20.78	)%		(31.06	)%
Ratios to average net assets (annualized)
Gross expenses		1.15	%		1.12	%		1.13	%		1.07	%		1.04	%
Net expenses		0.91	%		0.95	%		0.96	%		0.96	%		0.95	%
Net investment income (loss)		(0.25	)%		(0.44	)%		(0.10	)%		(0.17	)%		0.26	%
Supplemental data
Portfolio turnover rate		27	%3		21	%3		18	%3		9	%3		16	%
Net assets, end of period (000s omitted)		$9,148			$15,325			$16,114			$21,917			$32,230

¹  Amounts do not reflect the consolidated financial results of its wholly-owned subsidiary.

²  Calculated based upon average shares outstanding

³  Portfolio turnover rate includes the purchases and sales transactions of its wholly-owned subsidiary.

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

Consolidated financial highlights Wells Fargo Precious Metals Fund 19

(For a share outstanding throughout each period)

	Year ended March 31
INSTITUTIONAL CLASS	2018			2017			2016			2015			20141
Net asset value, beginning of period		$36.47			$33.21			$29.33			$36.96			$53.87
Net investment income (loss)		0.02			(0.09	)2		0.02	2		0.01	2		0.16	2
Net realized and unrealized gains (losses) on investments		(2.67	)		3.85			3.86			(7.64	)		(16.86	)
Total from investment operations		(2.65	)		3.76			3.88			(7.63	)		(16.70	)
Distributions to shareholders from
Net investment income		(0.52	)		(0.50	)		0.00			0.00			0.00
Net realized gains		0.00			0.00			0.00			0.00			(0.21	)
Total distributions to shareholders		(0.52	)		(0.50	)		0.00			0.00			(0.21	)
Net asset value, end of period		$33.30			$36.47			$33.21			$29.33			$36.96
Total return		(7.27	)%		11.49	%		13.23	%		(20.64	)%		(30.95	)%
Ratios to average net assets (annualized)
Gross expenses		0.88	%		0.88	%		0.88	%		0.80	%		0.79	%
Net expenses		0.73	%		0.79	%		0.80	%		0.79	%		0.78	%
Net investment income (loss)		0.01	%		(0.24	)%		0.06	%		0.03	%		0.41	%
Supplemental data
Portfolio turnover rate		27	%3		21	%3		18	%3		9	%3		16	%
Net assets, end of period (000s omitted)		$82,650			$89,680			$60,156			$43,014			$41,993

¹  Amounts do not reflect the consolidated financial results of its wholly-owned subsidiary.

²  Calculated based upon average shares outstanding

³  Portfolio turnover rate includes the purchases and sales transactions of its wholly-owned subsidiary.

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

20 Wells Fargo Precious Metals Fund Notes to consolidated 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 Precious Metals Fund (the “Fund”) which is a non-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. INVESTMENT IN SUBSIDIARY

The Fund invests in precious metals and minerals through Special Investments (Cayman) SPC (the “Subsidiary”), a wholly-owned subsidiary incorporated on May 3, 2005 under the laws of the Cayman Islands as an exempted segregated portfolio company with limited liability. As of March 31, 2018, the Subsidiary held $12,854,044 in gold bullion representing 100% of its net assets. The Fund is the sole shareholder of the Subsidiary. As of March 31, 2018, the Fund held $12,807,583 in the Subsidiary, representing 4.23% of the Fund’s net assets.

The consolidated financial statements of the Fund include the financial results of its wholly-owned subsidiary. The Consolidated Portfolio of Investments includes positions of the Fund and the Subsidiary and the consolidated financial statements include the accounts of the Fund and the Subsidiary. Accordingly, all interfund balances and transactions between the Fund and the Subsidiary have been eliminated in consolidation.

3. 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 commodities are valued at their last traded price.

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 Wells Fargo Asset Management Pricing Committee at Wells Fargo Funds Management, LLC (“Funds Management”)

Many securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange and therefore may not fully reflect trading or events that occur after the close of the principal exchange in which the foreign securities are traded, but before the close of the New York Stock Exchange. If such trading or events are expected to materially affect the value of such securities, then fair value pricing procedures approved by the Board of Trustees of the Fund are applied. These procedures take into account multiple factors including movements in U.S. securities markets after foreign exchanges close. Foreign securities that are fair valued under these procedures are categorized as Level 2 and the application of these procedures may result in transfers between Level 1 and Level 2. Depending on market activity, such fair valuations may be frequent. Such fair value pricing may result in net asset values that are higher or lower than net asset values based on the last reported sales price or latest quoted bid price. On March 31, 2018, such fair value pricing was used in pricing certain foreign securities.

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

Investments which are not valued using any of the methods discussed above are valued at their fair value, as determined in good faith by the Board of Trustees. The Board of Trustees has established a Valuation Committee comprised of the

Notes to consolidated financial statements Wells Fargo Precious Metals Fund 21

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 Wells Fargo Asset Management Pricing Committee. 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 Wells Fargo Asset Management Pricing Committee 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 Wells Fargo Asset Management Pricing Committee. 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 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 any net realized gains are recorded on the ex-dividend date and paid at least annually. 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 at year end.

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 Subsidiary is classified as a controlled foreign corporation under Subchapter N of the Internal Revenue Code. Therefore, the Fund is required to increase its taxable income by its share of the Subsidiary’s income. Net investment losses of the Subsidiary cannot be deducted by the Fund in the current period nor carried forward to offset taxable income in future periods.

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

22 Wells Fargo Precious Metals Fund Notes to consolidated financial statements

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 March 31, 2018, the aggregate cost of all investments for federal income tax purposes was $243,705,071 and the unrealized gains (losses) consisted of:

Gross unrealized gains	$	84,145,104
Gross unrealized losses		(26,262,376	)
Net unrealized gains	$	57,882,728

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 dividends from certain securities, net operating losses, and passive foreign investment companies. At March 31, 2018, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Paid-in capital	Accumulated net investment loss	Accumulated net realized losses on investments
$(610,528)	$1,192,579	$(582,051)

As of March 31, 2018, the Fund had capital loss carryforwards which consist of $25,473,541 in short-term capital losses and $150,718,316 in long-term capital losses.

Class allocations

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

4. 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 consolidated financial statements Wells Fargo Precious Metals Fund 23

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of March 31, 2018:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Australia	$	0	$	18,764,048	$	0	$	18,764,048
Canada		156,555,396		24,546,473		0		181,101,869
South Africa		7,170,560		0		0		7,170,560
United Kingdom		23,057,480		13,003,626		0		36,061,106
United States		40,694,826		0		0		40,694,826
Commodities		12,854,044		0		0		12,854,044
Short-term investments
Investment companies		4,941,346		0		0		4,941,346
Total assets	$	245,273,652	$	56,314,147	$	0	$	301,587,799

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At March 31, 2018, fair value pricing was used in pricing certain foreign securities and common stocks valued at $24,651,807 were transferred from Level 1 to Level 2 within the fair value hierarchy. The Fund did not have any transfers into/out of Level 3.

5. TRANSACTIONS WITH AFFILIATES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the subadviser, providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.65% and declining to 0.48% as the average daily net assets of the Fund increase. For the year ended March 31, 2018, the management fee was equivalent to an annual rate of 0.65% of the Fund’s average daily net assets.

The Subsidiary has entered into a separate advisory contract with Funds Management to manage the investment and reinvestment of its assets in conformity with its investment objectives and restrictions. Under this agreement, the Subsidiary does not pay Funds Management a fee for its services.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. Wells Capital Management Incorporated, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.40% 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

24 Wells Fargo Precious Metals Fund Notes to consolidated 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 July 31, 2018 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 1.09% for Class A shares, 1.84% for Class C shares, 0.95% for Administrator Class shares, and 0.79% for Institutional Class shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

Distribution fees

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

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the year ended March 31, 2018, Funds Distributor received $14,703 from the sale of Class A shares and $102 in contingent deferred sales charges from redemptions of Class C shares, respectively. No contingent deferred sales charges were incurred by Class A and Class B shares for the year ended March 31, 2018.

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 investment securities to other Wells Fargo affiliates pursuant to Rule 17a-7 under 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.

6. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended March 31, 2018 were $96,558,564 and $166,398,137, respectively. These amounts include purchases and sales transactions of the Subsidiary.

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.

During the year ended March 31, 2018, the Fund had average borrowings outstanding of $81,984 at an average interest rate of 2.47% and paid interest in the amount of $2,025.

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid was $4,630,057 and $3,900,828 of ordinary income for the years ended March 31, 2018 and March 31, 2017, respectively.

As of March 31, 2018, the components of distributable earnings on a tax basis were as follows:

Unrealized gains	Capital loss carryforward
$57,880,872	$(176,191,857)

Notes to consolidated financial statements Wells Fargo Precious Metals Fund 25

9. CONCENTRATION RISK

The Fund invests a substantial portion of its assets in precious metals companies and, therefore, may be more affected by changes in the precious metals sector than a fund whose investments are not heavily weighted in any sector.

10. INDEMNIFICATION

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

26 Wells Fargo Precious Metals Fund Report of independent registered public accounting firm

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

Opinion on the Financial Statements

We have audited the accompanying consolidated statement of assets and liabilities of the Wells Fargo Precious Metals Fund (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, including the consolidated portfolio of investments, as of March 31, 2018, the related consolidated statement of operations for the year then ended, the consolidated statements of changes in net assets for each of the years in the two-year period then ended, and the related consolidated notes (collectively, the “consolidated financial statements”) and the consolidated financial highlights for each of the years in the five-year period then ended. In our opinion, the consolidated financial statements and consolidated financial highlights present fairly, in all material respects, the consolidated financial position of the Fund as of March 31, 2018, 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.

Basis for Opinion

These consolidated financial statements and consolidated financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these consolidated financial statements and consolidated financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements and consolidated financial highlights are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements and consolidated financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements and consolidated financial highlights. Such procedures also included confirmation of securities owned as of March 31, 2018, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements and consolidated financial highlights. We believe that our audits provide a reasonable basis for our opinion.

We have not been able to determine the specific year that we began serving as the auditor of one or more Wells Fargo Funds investment companies, however we are aware that we have served as the auditor of one or more Wells Fargo Funds investment companies since at least 1955.

Boston, Massachusetts

May 23, 2018

Other information (unaudited) Wells Fargo Precious Metals Fund 27

TAX INFORMATION

For corporate shareholders, pursuant to Section 854 of the Internal Revenue Code, 5.18% of ordinary income dividends qualify for the corporate dividends-received deduction for the fiscal year ended March 31, 2018.

Pursuant to Section 854 of the Internal Revenue Code, $2,556,657 of income dividends paid during the fiscal year ended March 31, 2018 has been designated as qualified dividend income (QDI).

For the fiscal year ended March 31, 2018, $24,539 has been designated as interest-related dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.

Pursuant to Section 853 of the Internal Revenue Code, the Fund expects to designate amounts as foreign taxes paid for the fiscal year ended March 31, 2018. Additional details will be available in the semiannual report.

PROXY VOTING INFORMATION

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

PORTFOLIO HOLDINGS INFORMATION

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

28 Wells Fargo Precious Metals 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 153 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; Chair Liaison, since 2018	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 the Glimmerglass Festival. She is also an inactive Chartered Financial Analyst.	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 Precious Metals Fund 29

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
Olivia S. Mitchell*** (Born 1953)	Trustee, since 2006; Governance Committee Chairman, since 2018	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; Chairman, since 2018; Vice Chairman, from 2017 to 2018	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
James G. Polisson***** (Born 1959)	Trustee, since 2018; Advisory Board Member, from 2017 to 2018	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. Trustee of the San Francisco Mechanics’ Institute, a non-profit organization, from 2013 to 2015. 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.	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. Trustee of the Evergreen Fund 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
Pamela Wheelock***** (Born 1959)	Trustee, since 2018; Advisory Board Member, from 2017 to 2018	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.	Asset Allocation Trust

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

** Jane Freeman became Chair Liaison effective January 1, 2018.

*** Olivia Mitchell became Chairman of the Governance Committee effective January 1, 2018.

**** Timothy Penny became Chairman effective January 1, 2018.

***** James Polisson and Pamela Wheelock each became a Trustee effective January 1, 2018.

30 Wells Fargo Precious Metals 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.
Alexander Kymn* (Born 1973)	Secretary, since 2018; Chief Legal Officer, since 2018	Senior Company Counsel of Wells Fargo Bank, N.A. since 2018 (previously Senior Counsel from 2007 to 2018). Vice President of Wells Fargo Funds Management, LLC from 2008 to 2014.
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 77 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 76 funds and Assistant Treasurer of 77 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.

* Alexander Kymn became the Secretary and Chief Legal Officer effective April 17, 2018.

** David Messman was the Secretary and Chief Legal Officer until April 16, 2018.

List of abbreviations Wells Fargo Precious Metals Fund 31

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

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

INR —  Indian rupee

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 Agency

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

SIFMA —  Securities Industry and Financial Markets Association

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

© 2018 Wells Fargo Funds Management, LLC. All rights reserved.

309987 05-18 A316/AR316 03-18

Annual Report

March 31, 2018

Wells Fargo Specialized Technology 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	29
Other information	30
List of abbreviations	34

The views expressed and any forward-looking statements are as of March 31, 2018, 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 Specialized Technology Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

Dear Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Specialized Technology Fund for the 12-month period that ended March 31, 2018. During the last three quarters of 2017, investors enjoyed consistently rising equity values globally. Short-term interest rates tended to increase, while long-term rates remained flat to lower. During the final two months of the first quarter of 2018, equity market volatility returned, stocks reversed year-to-date gains, and bond yields rose while prices fell.

For the period, U.S. stocks, as measured by the S&P 500 Index,¹ gained 13.99% and international stocks, as measured by the MSCI ACWI ex USA Index (Net),² added 16.53%. Emerging market stocks, as measured by the MSCI EM Index (Net),³ added 24.93%. In bond markets, the Bloomberg Barclays U.S. Aggregate Bond Index⁴ added 1.20% and the Bloomberg Barclays Municipal Bond Index⁵ added 2.66% while fixed-income investments outside the U.S. gained 11.75%, according to the Bloomberg Barclays Global Aggregate ex-USD Index.⁶ The ICE BofAML U.S. High Yield Index⁷ earned 3.69%.

Through the last nine months of 2017, stocks advanced on synchronized global growth, which led to higher investor and consumer confidence. The first quarter of 2018 began with strong stock market gains in January. A strong January 2018 U.S. employment report and inflation concerns prompted equity volatility in February. Investor optimism for growth was supplanted with concerns over trade tensions, increased interest rates, and the prospect of new data privacy regulations.

Reactions to U.S. interest rate increases were uneven across the yield curve and globally.

The U.S. Federal Reserve (Fed) increased the federal funds rate three times during the 12-month period for a combined 75 basis points (bps; 100 bps equals 1.00%). Following an increase in March 2017, short-term bond yields in the U.S. rose while longer-term Treasury yields were little changed. Municipal bond returns were positive, helped by strong demand and constrained new-issue supply. The Fed raised the target interest rate once again in June 2017 to a range of 1.00% to 1.25%. Ten-year U.S. Treasury yields declined, the yield curve flattened, and long-term bond prices benefited.

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 indices or any securities or financial products. This report is not approved, reviewed, or produced by MSCI. You cannot invest directly in an index.

³  The MSCI Emerging Markets (EM) Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure large- and mid-cap equity market performance of emerging markets. The MSCI EM Index (Net) consists of the following 24 emerging market country indices: 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.

⁴  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.

⁵  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.

⁶  The Bloomberg Barclays Global Aggregate ex-USD Index 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.

⁷  The ICE BofAML U.S. High Yield Index is a market-capitalization-weighted index of domestic and Yankee high-yield bonds. The index tracks the performance of high-yield securities traded in the U.S. bond market. You cannot invest directly in an index. Copyright 2018. ICE Data Indices, LLC. All rights reserved.

Letter to shareholders (unaudited) Wells Fargo Specialized Technology Fund 3

Internationally, central banks maintained low interest rates and accommodative monetary policies that supported business activity and stock values in foreign markets. A weaker U.S. dollar was generally supportive of business activity in regions around the globe. The Bank of Japan continued its accommodative monetary policies, and industrial production, retail sales, and fixed asset investment increased in China.

Growth continued through the summer of 2017.

Globally, stocks moved higher during the third quarter of 2017. Low inflation and interest rates supported accelerating global economic growth and corporate earnings. Brief episodes of geopolitical tensions, often associated with North Korea’s advancing nuclear missile program, flaring conflicts in the Middle East, and uncertainty surrounding U.S. trade policies, did not discourage investing activity.

In the U.S., economic data released during the quarter reflected a generally healthy economy. Second-quarter economic output grew at a 3.1% annual rate. Stocks in international developed and emerging markets continued to benefit from improving economic growth.

Positive economic and market news continued as 2017 closed and 2018 began.

During the fourth quarter of 2017, stock markets continued the move higher. Third-quarter economic output in the U.S. grew at a 3.2% annual rate. The unemployment rate fell to a 17-year low of 4.1%. Tax reform passed and wage growth data improved, encouraging increased business and consumer spending.

Fed officials announced in October 2017 plans to begin unwinding its $4.5 trillion portfolio of bonds and other assets accumulated during rounds of quantitative easing conducted since the 2008–2009 recession. Still, restrained inflation kept long-term bond rates steady and the flattened yield curve persisted. The Fed raised the federal funds rate target to a range of 1.25% to 1.50% in December 2017 and began selling bonds held in its portfolio.

2018 opened with continued stock advances, then volatility.

Improving business and economic data globally continued to support stocks through January 2018. Political wrangling in the U.S. over budget resolutions could not dissuade investors from buying stocks as payrolls and factory orders increased. Long-term interest rates in the U.S. trended higher as the yield curve steepened—the 10-year Treasury rate moved from 2.46% to 2.84% and the 30-year rate moved from 2.81% to 3.08% during January 2018.

Investor sentiment shifted in February as inflation concerns emerged in the U.S. when readings from the Producer Price Index in January rose 2.5% year over year. During February, the U.S. market endured a loss from January’s high of nearly 12% before recovering much of that loss. The Fed raised the federal funds rate in March 2018. Bond yields rose across the yield curve.

During January 2018, purchasing managers’ indices in China, the eurozone, India, and Japan reported data for December that indicated continued growth. Despite positive economic signals and business fundamentals, international stock values fell during February and March 2018, swept up in the selling momentum in U.S. markets.

Globally, stocks moved higher during the third quarter of 2017.

During February, the U.S. market endured a loss from January’s high of nearly 12% before recovering much of that loss.

4 Wells Fargo Specialized Technology 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.

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6 Wells Fargo Specialized Technology Fund Performance highlights (unaudited)

Investment objective

The Fund seeks long-term capital appreciation.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Allianz Global Investors U.S. LLC

Portfolio managers

Huachen Chen, CFA^®

Walter C. Price, Jr., CFA^®

Average annual total returns (%) as of March 31, 2018¹

		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 (WFSTX)	9-18-2000		30.43		20.00		13.59		38.41		21.43		14.26		1.42		1.41
Class C (WFTCX)	9-18-2000		36.45		20.51		13.40		37.45		20.51		13.40		2.17		2.16
Administrator Class (WFTDX)	7-30-2010		–		–		–		38.55		21.59		14.40		1.34		1.31
Institutional Class (WFTIX)	10-31-2016		–		–		–		38.91		21.65		14.43		1.09		1.06
S&P North American Technology Index4	–		–		–		–		31.12		21.40		14.81		–		–
S&P 500 Index5	–		–		–		–		13.99		13.31		9.49		–		–

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.

Please keep in mind that high double-digit returns were primarily achieved during favorable market conditions. You should not expect that such favorable returns can be consistently achieved. A fund’s performance, especially for short time periods, should not be the sole factor in making your investment decision.

While the S&P 500 Index is comprised of U.S. equity securities of companies diversified across ten sectors, the Fund’s holdings are concentrated primarily in technology related stocks. Therefore, the performance of the S&P 500 Index is displayed only to show how the concentrated Fund performed compared with a diversified selection of U.S. equity securities.

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. Funds that concentrate their investments in limited sectors, such as information technology, are more vulnerable to adverse market, economic, regulatory, political, or other developments affecting those sectors. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to convertible securities risk, foreign investment risk, non-diversification 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 Specialized Technology Fund 7

Growth of $10,000 investment as of March 31, 2018⁶

¹  Historical performance shown for Administrator Class shares prior to their inception reflects the performance of Class A shares, and includes the higher expenses applicable to Class A shares. If these expenses had not been included, returns for Administrator Class shares would be higher. Historical performance shown for the Institutional Class shares prior to their inception reflects the performance of the Administrator Class shares, and is not adjusted to reflect Institutional Class expenses. If these expenses had been included, returns for Institutional Class 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 August 1, 2019, 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 (if any), 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 (the total annual fund operating expenses after fee waivers) as stated in the prospectuses.

⁴  The S&P North American Technology Index is a modified market-capitalization-weighted index of select technology stocks. You cannot invest directly in an index.

⁵  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.

⁶  The chart compares the performance of Class A shares for the most recent ten years with the S&P North American Technology 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%.

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

⁸  Amounts are calculated based on the total long-term investments of the Fund. These amounts are subject to change and may have changed since the date specified.

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

8 Wells Fargo Specialized Technology Fund Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

∎ The Fund outperformed the S&P North American Technology Index for the 12-month period that ended March 31, 2018.

∎ The primary drivers for the Fund’s absolute and relative performance include our overweights to some high-growth software companies as well as strong stock selection within the semiconductor industry.

∎ The Fund’s underweight to some mega-cap information technology (IT) companies, such as Amazon.com, Incorporated, and Microsoft Corporation, detracted from relative performance. While the underweight positions hurt relative performance, these stocks remain key holdings in the Fund and our positions helped absolute returns.

The concerns over the health of the global economy that weighed on investor sentiment for much of 2016 dissipated in 2017. Over the past 12 months, the global economy experienced a synchronized economic upturn, led by the U.S. This was supportive for corporate earnings, which in many cases remained robust.

The IT sector’s performance was particularly strong, fueled by multiple factors, including robust earnings growth.

We believe one of the most attractive qualities of the IT sector is the regular emergence of new and disruptive trends. Many of these new technologies potentially could expand the influence of technology into other areas of the economy as well as draw value from predecessor technologies within the sector. Our primary goal continues to be to identify these major trends ahead of the crowd and invest in the emerging leaders.

Over the 12-month period, we increased our exposure to selected software and storage and equipment companies benefiting from the accelerating adoption of cloud computing and software-as-a-service solutions. Many of these stocks performed well due to higher demand for their innovative product offerings, which led to consistently strong earnings growth. Conversely, after very strong performance from the semiconductor stocks in the Fund, the team reduced exposure to the industry. We believe the semiconductor industry should continue to benefit from higher demand and tighter supply in the near term, but the risk/reward profile is not as compelling as it was a year ago.

Overweights to Square and ServiceNow were the primary contributors to the Fund’s performance.

The Fund’s overweight to Square, Incorporated, was the top contributor during the period. The company develops business management software for small and medium-size businesses and monetizes many of these products through transaction processing. The company continues to execute well against its long-term goals. We believe Square is unique in the payments-processing space due to its ability to expand payments processing and software solutions to previously untapped markets.

The Fund’s overweight to ServiceNow, Incorporated, was also among the top contributors during the period. The company has expanded its product offerings and created a platform that can automate workflow processes across multiple departments of an enterprise. As the company closes a greater number of larger-size deals, many of which are subscription-based, we expect to see earnings growth over time.

Other top contributors to relative returns included an overweight to Paycom Software, Incorporated; an underweight to Oracle Corporation;* and not owning IBM Corporation.

The portfolio’s underweight to some mega-cap IT companies such as Amazon and Microsoft detracted from relative performance. We maintain a positive long-term view of these companies; however, the benchmark is heavily concentrated in the largest IT companies. The combined weight of the benchmark’s top five holdings is over 39%. The team prefers to spread the Fund’s risks and theme exposures across a larger variety of stocks, as we believe this approach offers a more attractive risk/reward profile.

The Fund’s underweight to Amazon was the top detractor from relative returns. The company has demonstrated robust top-line growth as well as significant operational efficiency. Amazon remains the clear leader in the e-commerce and cloud infrastructure markets as it continues to develop new products and services that enhance customer loyalty.

Please see footnotes on page 7.

Performance highlights (unaudited) Wells Fargo Specialized Technology Fund 9

The Fund’s underweight to Microsoft was also among the top detractors from relative performance. Microsoft has been investing in data centers and developing partnerships to boost sales of its main cloud products, which appear to be paying off for the company. We believe Microsoft’s push toward more innovative products and services should drive strong long-term sales and profit growth. Other top detractors from relative returns included an overweight to Tesla Motors, Incorporated; an underweight to PayPal Holdings, Incorporated; and not owning Intel Corporation.

We retain an optimistic outlook for the IT sector and for the Fund.

Looking forward, we continue to believe the IT sector may provide some of the stock markets’ best absolute- and relative-return opportunities, especially for bottom-up stock pickers like us. We have observed a wave of innovation within the sector that we believe could produce attractive returns for companies offering best-in-class solutions. We also see a number of companies with present valuations that, in our view, do not fully reflect positive company-specific and/or industry-specific tailwinds. We believe some of the attractive growth themes include cloud computing, auto technology, artificial intelligence, and robotics.

Ten largest holdings (%) as of March 31, 20187
Amazon.com Incorporated	6.39
Microsoft Corporation	5.65
Micron Technology Incorporated	4.21
ServiceNow Incorporated	4.00
NetApp Incorporated	3.71
Square Incorporated Class A	3.62
Netflix Incorporated	3.28
Arista Networks Incorporated	3.11
Apple Incorporated	3.05
DXC Technology Company	3.05

Industry distribution as of March 31, 2018⁸

Please see footnotes on page 7.

10 Wells Fargo Specialized Technology Fund Fund expenses (unaudited)

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

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from October 1, 2017 to March 31, 2018.

Actual expenses

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

Hypothetical example for comparison purposes

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

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

	Beginning account value 10-1-2017		Ending account value 3-31-2018		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,180.37	$	7.61		1.40	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.95	$	7.05		1.40	%
Class C
Actual	$	1,000.00	$	1,175.96	$	11.66		2.15	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,014.21	$	10.80		2.15	%
Administrator Class
Actual	$	1,000.00	$	1,180.58	$	7.12		1.31	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.40	$	6.59		1.31	%
Institutional Class
Actual	$	1,000.00	$	1,181.87	$	5.77		1.06	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.65	$	5.34		1.06	%

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

Portfolio of investments—March 31, 2018 Wells Fargo Specialized Technology Fund 11

Security name	Shares		Value
Common Stocks: 96.21%
Consumer Discretionary: 10.26%
Automobiles: 0.46%
Tesla Motors Incorporated †		7,185	$	1,912,144
Internet & Direct Marketing Retail: 9.80%
Amazon.com Incorporated †		18,360		26,573,162
Ctrip.com International Limited ADR †		12,040		564,294
JD.com Incorporated ADR †		595		24,092
Netflix Incorporated †		46,165		13,634,833
				40,796,381
Health Care: 0.27%
Health Care Technology: 0.27%
Veeva Systems Incorporated Class A †		15,065		1,100,046
Industrials: 0.27%
Professional Services: 0.27%
51job Incorporated ADR †		13,040		1,121,962
Information Technology: 85.41%
Communications Equipment: 7.45%
Arista Networks Incorporated †		50,770		12,961,581
Cisco Systems Incorporated		145,345		6,233,847
Palo Alto Networks Incorporated †		65,010		11,800,615
				30,996,043
Electronic Equipment, Instruments & Components: 1.73%
CDW Corporation of Delaware		6,890		484,436
Cognex Corporation		52,955		2,753,130
Dolby Laboratories Incorporated Class A		8,125		516,425
Flex Limited †		27,390		447,279
IPG Photonics Corporation †		12,735		2,972,094
				7,173,364
Internet Software & Services: 13.27%
Alibaba Group Holding Limited ADR †		32,620		5,987,075
Alphabet Incorporated Class A †		9,630		9,987,658
Alphabet Incorporated Class C †		7,095		7,320,550
Baidu Incorporated ADR †		5,020		1,120,414
Dropbox Incorporated Class A «†		3,935		122,969
Facebook Incorporated Class A †		54,080		8,641,443
MercadoLibre Incorporated		1,600		570,224
MongoDB Incorporated Ǡ		40,380		1,752,492
MuleSoft Incorporated Class A †		52,319		2,300,990
NetEase Incorporated ADR		6,975		1,955,720
Okta Incorporated †		146,085		5,821,487
Tencent Holdings Limited		98,000		5,260,595

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

12 Wells Fargo Specialized Technology Fund Portfolio of investments—March 31, 2018

Security name	Shares		Value
Internet Software & Services (continued)
Yandex NV Class A †		97,175	$	3,833,554
Yelp Incorporated †		13,370		558,198
				55,233,369
IT Services: 11.58%
Amadeus IT Holding SA Class A		14,685		1,086,736
Capgemini SA		8,150		1,016,911
Cognizant Technology Solutions Corporation Class A		46,650		3,755,325
DXC Technology Company		126,140		12,680,854
Global Payments Incorporated		25,625		2,857,700
MasterCard Incorporated Class A		7,700		1,348,732
PayPal Holdings Incorporated †		77,295		5,864,372
Square Incorporated Class A †		306,310		15,070,452
Total System Services Incorporated		35,840		3,091,558
Visa Incorporated Class A		7,485		895,356
Worldpay Incorporated Class A †		6,370		523,869
				48,191,865
Semiconductors & Semiconductor Equipment: 15.62%
ams AG		2,625		275,652
Applied Materials Incorporated		15,610		868,072
ASML Holding NV «		5,625		1,116,900
Broadcom Limited		7,595		1,789,762
Cree Incorporated †		115,665		4,662,456
Infineon Technologies AG		168,275		4,525,457
Lam Research Corporation		33,950		6,897,282
Marvell Technology Group Limited		138,395		2,906,295
Microchip Technology Incorporated «		103,960		9,497,786
Micron Technology Incorporated †		335,955		17,516,694
NVIDIA Corporation		26,900		6,229,771
ON Semiconductor Corporation †		79,180		1,936,743
SK Hynix Incorporated		38,270		2,931,940
Teradyne Incorporated		84,320		3,854,267
				65,009,077
Software: 28.10%
Adobe Systems Incorporated †		3,100		669,848
Atlassian Corporation plc Class A †		15,055		811,766
Autodesk Incorporated †		13,235		1,662,051
FireEye Incorporated †		66,810		1,131,093
Guidewire Software Incorporated †		9,130		737,978
HubSpot Incorporated †		13,265		1,436,600
Microsoft Corporation		257,490		23,501,112
Nintendo Company Limited		7,000		3,109,912
Paycom Software Incorporated Ǡ		100,675		10,811,488
Proofpoint Incorporated †		99,550		11,313,858
RealPage Incorporated †		10,555		543,583
Red Hat Incorporated †		30,235		4,520,435
RingCentral Incorporated Class A †		80,820		5,132,070

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

Portfolio of investments—March 31, 2018 Wells Fargo Specialized Technology Fund 13

Security name				Shares		Value
Software (continued)
Salesforce.com Incorporated †					90,180	$	10,487,934
ServiceNow Incorporated †					100,695		16,659,988
Sophos Group plc 144A					610,170		3,716,800
Splunk Incorporated †					33,125		3,259,169
Tableau Software Incorporated Class A †					22,585		1,825,320
Take-Two Interactive Software Incorporated †					26,945		2,634,682
Temenos Group AG					19,010		2,279,475
Workday Incorporated Class A †					84,075		10,686,770
							116,931,932
Technology Hardware, Storage & Peripherals: 7.66%
Apple Incorporated					75,755		12,710,174
HP Incorporated					77,620		1,701,430
NetApp Incorporated					250,550		15,456,430
Pure Storage Incorporated Class A †					101,095		2,016,845
							31,884,879
Total Common Stocks (Cost $253,789,054)							400,351,062
	Yield
Short-Term Investments: 6.40%
Investment Companies: 6.40%
Securities Lending Cash Investment LLC (l)(r)(u)		1.89	%		23,934,530		23,936,923
Wells Fargo Government Money Market Fund Select Class (l)(u)		1.54			2,705,051		2,705,051
Total Short-Term Investments (Cost $26,641,974)							26,641,974

Total investments in securities (Cost $280,431,028)	102.61	%		426,993,036
Other assets and liabilities, net	(2.61	)		(10,860,523	)
Total net assets	100.00	%	$	416,132,513

† 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.

Forward Foreign Currency Contracts

Currency to be received	Currency to be delivered	Counterparty	Settlement date	Unrealized gains		Unrealized losses
398,807 USD	42,340,819 JPY	Northern Trust Company¤¤	4-4-2018	$	860	$	0

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

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

14 Wells Fargo Specialized Technology Fund Portfolio of investments—March 31, 2018

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		10,457,879		308,046,500		294,569,849		23,934,530	$	23	$	0	$	63,668	$	23,936,923
Wells Fargo Government Money Market Fund Select Class		15,382,494		138,533,213		151,210,656		2,705,051		0		0		138,838		2,705,051
									$	23	$	0	$	202,506	$	26,641,974		6.40	%

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

Statement of assets and liabilities—March 31, 2018 Wells Fargo Specialized Technology Fund 15

Assets
Investments in unaffiliated securities (including $20,915,947 of securities loaned), at value (cost $253,789,054)	$	400,351,062
Investments in affiliated securities, at value (cost $26,641,974)		26,641,974
Cash		296
Foreign currency, at value (cost $25)		25
Receivable for investments sold		45,446,065
Receivable for Fund shares sold		661,339
Receivable for dividends		146,633
Receivable for securities lending income		7,688
Unrealized gains on forward foreign currency contracts		860
Prepaid expenses and other assets		38,117
Total assets		473,294,059
Liabilities
Payable for Fund shares redeemed		28,307,082
Payable upon receipt of securities loaned		23,936,900
Payable for investments purchased		4,290,980
Management fee payable		356,823
Administration fees payable		80,744
Distribution fee payable		10,835
Trustees’ fees and expenses payable		1,453
Accrued expenses and other liabilities		176,729
Total liabilities		57,161,546
Total net assets	$	416,132,513
NET ASSETS CONSIST OF
Paid-in capital	$	188,277,070
Accumulated net investment loss		(860	)
Accumulated net realized gains on investments		81,293,333
Net unrealized gains on investments		146,562,970
Total net assets	$	416,132,513
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	353,552,363
Shares outstanding – Class A1		25,104,692
Net asset value per share – Class A2		$14.08
Maximum offering price per share – Class A		$14.94
Net assets – Class C	$	15,931,665
Shares outstanding – Class C1		1,399,389
Net asset value per share – Class C		$11.38
Net assets – Administrator Class	$	19,139,894
Shares outstanding – Administrator Class1		1,334,330
Net asset value per share – Administrator Class		$14.34
Net assets – Institutional Class	$	27,508,591
Shares outstanding – Institutional Class1		1,913,712
Net asset value per share – Institutional Class		$14.37

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 Specialized Technology Fund Statement of operations—year ended March 31, 2018

Investment income
Dividends (net of foreign withholding taxes of $33,098)	$	2,458,912
Income from affiliated securities		202,506
Total investment income		2,661,418
Expenses
Management fee		3,554,835
Administration fees
Class A		651,851
Class C		30,089
Administrator Class		68,684
Institutional Class		29,877
Shareholder servicing fees
Class A		776,014
Class C		35,820
Administrator Class		132,084
Distribution fee
Class C		107,460
Custody and accounting fees		31,943
Professional fees		49,261
Registration fees		85,504
Shareholder report expenses		58,851
Trustees’ fees and expenses		23,028
Other fees and expenses		13,734
Total expenses		5,649,035
Less: Fee waivers and/or expense reimbursements		(19,292	)
Net expenses		5,629,743
Net investment loss		(2,968,325	)
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		85,427,800
Affiliated securities		23
Forward foreign currency contracts		35,766
Net realized gains on investments		85,463,589
Net change in unrealized gains (losses) on:
Unaffiliated securities		45,514,804
Forward foreign currency contracts		860
Net change in unrealized gains (losses) on investments		45,515,664
Net realized and unrealized gains (losses) on investments		130,979,253
Net increase in net assets resulting from operations	$	128,010,928

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

Statement of changes in net assets Wells Fargo Specialized Technology Fund 17

	Year ended March 31, 2018						Year ended March 31, 2017
Operations
Net investment loss				$	(2,968,325	)				$	(941,513	)
Net realized gains on investments					85,463,589						34,096,006
Net change in unrealized gains (losses) on investments					45,515,664						34,389,614
Net increase in net assets resulting from operations					128,010,928						67,544,107
Distributions to shareholders from
Net realized gains
Class A					(22,775,603	)					(14,880,730	)
Class C					(1,248,847	)					(848,385	)
Administrator Class					(3,999,359	)					(1,833,645	)
Institutional Class					(1,741,744	)					(171,234	)1
Total distributions to shareholders					(29,765,553	)					(17,733,994	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		2,084,687			27,533,950			1,119,979			11,186,546
Class B		N/A			N/A			3,850	2		30,758	2
Class C		192,101			2,045,595			126,948			1,060,179
Administrator Class		1,546,441			19,850,044			1,074,890			11,187,307
Institutional Class		564,328			7,724,961			1,879,809	1		20,363,858	1
					57,154,550						43,828,648
Reinvestment of distributions
Class A		1,731,116			22,071,725			1,487,581			14,459,290
Class C		116,005			1,198,329			96,557			779,219
Administrator Class		307,642			3,990,121			165,740			1,635,859
Institutional Class		123,913			1,610,864			17,366	1		171,234	1
					28,871,039						17,045,602
Payment for shares redeemed
Class A		(3,040,823	)		(38,796,202	)		(6,802,529	)		(69,234,485	)
Class B		N/A			N/A			(19,232	)2		(163,421	)2
Class C		(323,924	)		(3,371,408	)		(549,746	)		(4,592,945	)
Administrator Class		(4,102,652	)		(57,561,216	)		(1,059,277	)		(10,759,802	)
Institutional Class		(561,375	)		(7,267,274	)		(110,329	)1		(1,179,831	)1
					(106,996,100	)					(85,930,484	)
Net decrease in net assets resulting from capital share transactions					(20,970,511	)					(25,056,234	)
Total increase in net assets					77,274,864						24,753,879
Net assets
Beginning of period					338,857,649						314,103,770
End of period				$	416,132,513					$	338,857,649
Undistributed (accumulated) net investment income (loss)				$	(860	)				$	0

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

²  For the period from April 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 Specialized Technology Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended March 31
CLASS A	2018			2017			2016			2015			2014
Net asset value, beginning of period		$10.95			$9.39			$10.74			$10.65			$8.15
Net investment loss		(0.10	)1		(0.03	)1		(0.06	)		(0.06	)		(0.06	)
Net realized and unrealized gains (losses) on investments		4.20			2.17			0.02			1.43			3.07
Total from investment operations		4.10			2.14			(0.04	)		1.37			3.01
Distributions to shareholders from
Net realized gains		(0.97	)		(0.58	)		(1.31	)		(1.28	)		(0.51	)
Net asset value, end of period		$14.08			$10.95			$9.39			$10.74			$10.65
Total return2		38.41	%		23.55	%		(0.66	)%		13.24	%		37.27	%
Ratios to average net assets (annualized)
Gross expenses		1.41	%		1.44	%		1.45	%		1.52	%		1.60	%
Net expenses		1.41	%		1.44	%		1.45	%		1.51	%		1.56	%
Net investment loss		(0.75	)%		(0.28	)%		(0.53	)%		(0.58	)%		(0.63	)%
Supplemental data
Portfolio turnover rate		109	%		131	%		153	%		119	%		132	%
Net assets, end of period (000s omitted)		$353,552			$266,329			$267,811			$168,108			$154,833

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 Specialized Technology Fund 19

(For a share outstanding throughout each period)

	Year ended March 31
CLASS C	2018			2017			2016			2015			2014
Net asset value, beginning of period		$9.06			$7.92			$9.33			$9.47			$7.35
Net investment loss		(0.16	)		(0.09	)1		(0.12	)1		(0.13	)1		(0.12	)1
Net realized and unrealized gains (losses) on investments		3.45			1.81			0.02			1.27			2.75
Total from investment operations		3.29			1.72			(0.10	)		1.14			2.63
Distributions to shareholders from
Net realized gains		(0.97	)		(0.58	)		(1.31	)		(1.28	)		(0.51	)
Net asset value, end of period		$11.38			$9.06			$7.92			$9.33			$9.47
Total return2		37.45	%		22.59	%		(1.45	)%		12.44	%		36.14	%
Ratios to average net assets (annualized)
Gross expenses		2.16	%		2.19	%		2.20	%		2.27	%		2.35	%
Net expenses		2.16	%		2.19	%		2.20	%		2.26	%		2.31	%
Net investment loss		(1.49	)%		(1.03	)%		(1.34	)%		(1.33	)%		(1.38	)%
Supplemental data
Portfolio turnover rate		109	%		131	%		153	%		119	%		132	%
Net assets, end of period (000s omitted)		$15,932			$12,827			$13,797			$14,143			$10,907

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 Specialized Technology Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended March 31
ADMINISTRATOR CLASS	2018			2017			2016			2015			2014
Net asset value, beginning of period		$11.12			$9.52			$10.86			$10.74			$8.20
Net investment loss		(0.09	)1		(0.02	)		(0.05	)		(0.05	)		(0.05	)
Net realized and unrealized gains (losses) on investments		4.28			2.20			0.02			1.45			3.10
Total from investment operations		4.19			2.18			(0.03	)		1.40			3.05
Distributions to shareholders from
Net realized gains		(0.97	)		(0.58	)		(1.31	)		(1.28	)		(0.51	)
Net asset value, end of period		$14.34			$11.12			$9.52			$10.86			$10.74
Total return		38.55	%		23.65	%		(0.56	)%		13.42	%		37.54	%
Ratios to average net assets (annualized)
Gross expenses		1.33	%		1.36	%		1.35	%		1.36	%		1.44	%
Net expenses		1.32	%		1.33	%		1.33	%		1.35	%		1.40	%
Net investment loss		(0.66	)%		(0.17	)%		(0.48	)%		(0.42	)%		(0.48	)%
Supplemental data
Portfolio turnover rate		109	%		131	%		153	%		119	%		132	%
Net assets, end of period (000s omitted)		$19,140			$39,833			$32,373			$31,842			$31,681

¹  Calculated based upon average shares outstanding

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

Financial highlights Wells Fargo Specialized Technology Fund 21

(For a share outstanding throughout each period)

	Year ended March 31
INSTITUTIONAL CLASS	2018			20171
Net asset value, beginning of period		$11.12			$10.42
Net investment income (loss)		(0.05	)		0.01	2
Net realized and unrealized gains (losses) on investments		4.27			1.27
Total from investment operations		4.22			1.28
Distributions to shareholders from
Net realized gains		(0.97	)		(0.58	)
Net asset value, end of period		$14.37			$11.12
Total return3		38.91	%		12.97	%
Ratios to average net assets (annualized)
Gross expenses		1.08	%		1.11	%
Net expenses		1.07	%		1.08	%
Net investment income (loss)		(0.40	)%		0.17	%
Supplemental data
Portfolio turnover rate		109	%		131	%
Net assets, end of period (000s omitted)		$27,509			$19,869

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

²  Calculated based upon average shares outstanding

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

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

22 Wells Fargo Specialized Technology 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 Specialized Technology Fund (the “Fund”) which is a non-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 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 Wells Fargo Asset Management Pricing Committee at Wells Fargo Funds Management, LLC (“Funds Management”).

Many securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange and therefore may not fully reflect trading or events that occur after the close of the principal exchange in which the foreign securities are traded, but before the close of the New York Stock Exchange. If such trading or events are expected to materially affect the value of such securities, then fair value pricing procedures approved by the Board of Trustees of the Fund are applied. These procedures take into account multiple factors including movements in U.S. securities markets after foreign exchanges close. Foreign securities that are fair valued under these procedures are categorized as Level 2 and the application of these procedures may result in transfers between Level 1 and Level 2. Depending on market activity, such fair valuations may be frequent. Such fair value pricing may result in net asset values that are higher or lower than net asset values based on the last reported sales price or latest quoted bid price. On March 31, 2018, such fair value pricing was used in pricing certain 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 Wells Fargo Asset Management Pricing Committee. 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 Wells Fargo Asset Management Pricing Committee 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

Notes to financial statements Wells Fargo Specialized Technology Fund 23

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 Wells Fargo Asset Management Pricing Committee. 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.

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.

Securities lending

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, if any, is included in income from affiliated securities on the Statement of Operations.

24 Wells Fargo Specialized Technology Fund Notes to financial statements

Security transactions and income recognition

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

Dividend income is recognized on the ex-dividend date, except for certain dividends from foreign securities, which are recorded as soon as the custodian verifies the ex-dividend date. Dividend income from foreign securities is recorded net of foreign taxes withheld where recovery of such taxes is not assured.

Distributions to shareholders

Distributions to shareholders from net investment income and any net realized gains are recorded on the ex-dividend date and paid at least annually. 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 at year end.

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 March 31, 2018, the aggregate cost of all investments for federal income tax purposes was $282,487,305 and the unrealized gains (losses) consisted of:

Gross unrealized gains	$	146,003,779
Gross unrealized losses		(1,497,188	)
Net unrealized gains	$	144,506,591

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The primary permanent difference causing such reclassification is due to net operating losses. At March 31, 2018, 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
$2,967,465	$(2,967,465)

Class allocations

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

3. FAIR VALUATION MEASUREMENTS

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

Notes to financial statements Wells Fargo Specialized Technology Fund 25

based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:

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

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

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

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

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of March 31, 2018:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	42,708,525	$	0	$	0	$	42,708,525
Health care		1,100,046		0		0		1,100,046
Industrials		1,121,962		0		0		1,121,962
Information technology		331,217,051		24,203,478		0		355,420,529
Short-term investments
Investment companies		2,705,051		0		0		2,705,051
Investments measured at net asset value*								23,936,923
		378,852,635		24,203,478		0		426,993,036
Forward foreign currency contracts		0		860		0		860
Total assets	$	378,852,635	$	24,204,338	$	0	$	426,993,896

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amount presented in the table is intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statement of Assets and Liabilities. The Fund’s investment in Securities Lending Cash Investments, LLC valued at $23,936,923 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

Forward foreign currency contracts are reported at their cumulative unrealized gains (losses) at measurement date. All other assets and liabilities are reported at their market value at measurement date.

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At March 31, 2018, fair value pricing was used in pricing certain foreign securities and common stocks valued at $9,786,052 were transferred between Level 1 and Level 2 within the fair value hierarchy. The Fund did not have any transfers into/out of Level 3.

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo, 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 0.88% and declining to 0.78% as the average daily net assets of the Fund increase. Prior to September 1, 2017, Funds Management received a fee at an annual rate which started at 0.90% and declined to 0.78% as the average daily net assets of the Fund decreased. For the year ended March 31, 2018, the management fee was equivalent to an annual rate of 0.89% of the Fund’s average daily net assets.

26 Wells Fargo Specialized Technology Fund Notes to financial statements

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. Allianz Global Investors U.S. LLC, 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 0.80% and declining to 0.55% as the average daily net assets of the Fund increase. Prior to September 1, 2017, the subadviser received an annual fee which started at 0.90% and declined to 0.55% as the average daily net assets of the Fund increased.

Administration fees

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

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

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through August 1, 2019 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 1.41% for Class A shares, 2.16% for Class C shares, 1.31% for Administrator Class shares, and 1.06% 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 September 1, 2017, the Fund’s expenses were capped at 1.50% for Class A shares, 2.25% for Class C shares, 1.33% for Administrator Class shares, and 1.08% for Institutional Class shares.

Distribution fee

The Trust has adopted a distribution plan for Class C shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class C shares and paid to Wells Fargo Funds Distributor, LLC (“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 March 31, 2018, Funds Distributor received $17,760 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 March 31, 2018.

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 investment securities to other Wells Fargo affiliates pursuant to Rule 17a-7 under 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 March 31, 2018 were $417,783,105 and $476,752,552, respectively.

Notes to financial statements Wells Fargo Specialized Technology Fund 27

6. DERIVATIVE TRANSACTIONS

During the year ended March 31, 2018, the Fund entered into forward foreign currency contracts for economic hedging purposes. The Fund had average contract amounts of $82,460 and $22,124 in forward foreign currency contracts to buy and forward foreign currency contracts to sell, respectively, during the year ended March 31, 2018.

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
Northern Trust Company	$	860	$	0	$	0	$	860

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 March 31, 2018, there were no borrowings by the Fund under the agreement.

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended March 31, 2018 and March 31, 2017 were as follows:

	Year ended March 31
	2018		2017
Ordinary income	$	7,805,610	$	0
Long-term capital gain		21,959,943		17,733,994

As of March 31, 2018, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Undistributed long-term gain	Unrealized gains
$30,325,807	$53,022,944	$144,506,693

28 Wells Fargo Specialized Technology Fund Notes to financial statements

9. CONCENTRATION RISK

The Fund invests a substantial portion of its assets in technology companies and, therefore, would be more affected by changes in the technology sector than would be a fund whose investments are not heavily weighted in the sector.

10. 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 Specialized Technology Fund 29

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of the Wells Fargo Specialized Technology Fund (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, including the portfolio of investments, as of March 31, 2018, 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 related notes (collectively, the “financial statements”) and the financial highlights for each of the years or periods in the five-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of March 31, 2018, 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.

Basis for Opinion

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 are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of March 31, 2018, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.

We have not been able to determine the specific year that we began serving as the auditor of one or more Wells Fargo Funds investment companies, however we are aware that we have served as the auditor of one or more Wells Fargo Funds investment companies since at least 1955.

Boston, Massachusetts

May 23, 2018

30 Wells Fargo Specialized Technology Fund Other information (unaudited)

TAX INFORMATION

For corporate shareholders, pursuant to Section 854 of the Internal Revenue Code, 46.67% of ordinary income dividends qualify for the corporate dividends-received deduction for the fiscal year ended March 31, 2018.

Pursuant to Section 852 of the Internal Revenue Code, $21,959,943 was designated as a 20% rate gain distribution for the fiscal year ended March 31, 2018.

Pursuant to Section 854 of the Internal Revenue Code, $3,642,761 of income dividends paid during the fiscal year ended March 31, 2018 has been designated as qualified dividend income (QDI).

For the fiscal year ended March 31, 2018, $7,805,610 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 Specialized Technology 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 153 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; Chair Liaison, since 2018	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 the Glimmerglass Festival. She is also an inactive Chartered Financial Analyst.	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 Specialized Technology 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; Governance Committee Chairman, since 2018	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; Chairman, since 2018; Vice Chairman, from 2017 to 2018	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
James G. Polisson***** (Born 1959)	Trustee, since 2018; Advisory Board Member, from 2017 to 2018	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. Trustee of the San Francisco Mechanics’ Institute, a non-profit organization, from 2013 to 2015. 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.	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. Trustee of the Evergreen Fund 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
Pamela Wheelock***** (Born 1959)	Trustee, since 2018; Advisory Board Member, from 2017 to 2018	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.	Asset Allocation Trust

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

** Jane Freeman became Chair Liaison effective January 1, 2018.

*** Olivia Mitchell became Chairman of the Governance Committee effective January 1, 2018.

**** Timothy Penny became Chairman effective January 1, 2018.

***** James Polisson and Pamela Wheelock each became a Trustee effective January 1, 2018.

Other information (unaudited) Wells Fargo Specialized Technology 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.
Alexander Kymn* (Born 1973)	Secretary, since 2018; Chief Legal Officer, since 2018	Senior Company Counsel of Wells Fargo Bank, N.A. since 2018 (previously Senior Counsel from 2007 to 2018). Vice President of Wells Fargo Funds Management, LLC from 2008 to 2014.
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 77 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 76 funds and Assistant Treasurer of 77 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.

* Alexander Kymn became the Secretary and Chief Legal Officer effective April 17, 2018.

** David Messman was the Secretary and Chief Legal Officer until April 16, 2018.

34 Wells Fargo Specialized Technology 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

INR —  Indian rupee

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 Agency

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

SIFMA —  Securities Industry and Financial Markets Association

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

© 2018 Wells Fargo Funds Management, LLC. All rights reserved.

309988 05-18 A317/AR317 03-18

Annual Report

March 31, 2018

Wells Fargo Utility and Telecommunications 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	14
Statement of operations	15
Statement of changes in net assets	16
Financial highlights	17
Notes to financial statements	21
Report of independent registered public accounting firm	27
Other information	28
List of abbreviations	32

The views expressed and any forward-looking statements are as of March 31, 2018, 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 Utility and Telecommunications Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

Dear Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Utility and Telecommunications Fund for the 12-month period that ended March 31, 2018. During the last three quarters of 2017, investors enjoyed consistently rising equity values globally. Short-term interest rates tended to increase, while long-term rates remained flat to lower. During the final two months of the first quarter of 2018, equity market volatility returned, stocks reversed year-to-date gains, and bond yields rose while prices fell.

For the period, U.S. stocks, as measured by the S&P 500 Index,¹ gained 13.99% and international stocks, as measured by the MSCI ACWI ex USA Index (Net),² added 16.53%. Emerging market stocks, as measured by the MSCI EM Index (Net),³ added 24.93%. In bond markets, the Bloomberg Barclays U.S. Aggregate Bond Index⁴ added 1.20% and the Bloomberg Barclays Municipal Bond Index⁵ added 2.66% while fixed-income investments outside the U.S. gained 11.75%, according to the Bloomberg Barclays Global Aggregate ex-USD Index.⁶ The ICE BofAML U.S. High Yield Index⁷ earned 3.69%.

Through the last nine months of 2017, stocks advanced on synchronized global growth, which led to higher investor and consumer confidence. The first quarter of 2018 began with strong stock market gains in January. A strong January 2018 U.S. employment report and inflation concerns prompted equity volatility in February. Investor optimism for growth was supplanted with concerns over trade tensions, increased interest rates, and the prospect of new data privacy regulations.

Reactions to U.S. interest rate increases were uneven across the yield curve and globally.

The U.S. Federal Reserve (Fed) increased the federal funds rate three times during the 12-month period for a combined 75 basis points (bps; 100 bps equals 1.00%). Following an increase in March 2017, short-term bond yields in the U.S. rose while longer-term Treasury yields were little changed. Municipal bond returns were positive, helped by strong demand and constrained new-issue supply. The Fed raised the target interest rate once again in June 2017 to a range of 1.00% to 1.25%. Ten-year U.S. Treasury yields declined, the yield curve flattened, and long-term bond prices benefited.

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 indices or any securities or financial products. This report is not approved, reviewed, or produced by MSCI. You cannot invest directly in an index.

³ The MSCI Emerging Markets (EM) Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure large- and mid-cap equity market performance of emerging markets. The MSCI EM Index (Net) consists of the following 24 emerging market country indices: 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.

⁴  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.

⁵  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.

⁶  The Bloomberg Barclays Global Aggregate ex-USD Index 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.

⁷  The ICE BofAML U.S. High Yield Index is a market-capitalization-weighted index of domestic and Yankee high-yield bonds. The index tracks the performance of high-yield securities traded in the U.S. bond market. You cannot invest directly in an index. Copyright 2018. ICE Data Indices, LLC. All rights reserved.

Letter to shareholders (unaudited) Wells Fargo Utility and Telecommunications Fund 3

Internationally, central banks maintained low interest rates and accommodative monetary policies that supported business activity and stock values in foreign markets. A weaker U.S. dollar was generally supportive of business activity in regions around the globe. The Bank of Japan continued its accommodative monetary policies, and industrial production, retail sales, and fixed asset investment increased in China.

Growth continued through the summer of 2017.

Globally, stocks moved higher during the third quarter of 2017. Low inflation and interest rates supported accelerating global economic growth and corporate earnings. Brief episodes of geopolitical tensions, often associated with North Korea’s advancing nuclear missile program, flaring conflicts in the Middle East, and uncertainty surrounding U.S. trade policies, did not discourage investing activity.

In the U.S., economic data released during the quarter reflected a generally healthy economy. Second-quarter economic output grew at a 3.1% annual rate. Stocks in international developed and emerging markets continued to benefit from improving economic growth.

Positive economic and market news continued as 2017 closed and 2018 began.

During the fourth quarter of 2017, stock markets continued the move higher. Third-quarter economic output in the U.S. grew at a 3.2% annual rate. The unemployment rate fell to a 17-year low of 4.1%. Tax reform passed and wage growth data improved, encouraging increased business and consumer spending.

Fed officials announced in October 2017 plans to begin unwinding its $4.5 trillion portfolio of bonds and other assets accumulated during rounds of quantitative easing conducted since the 2008–2009 recession. Still, restrained inflation kept long-term bond rates steady and the flattened yield curve persisted. The Fed raised the federal funds rate target to a range of 1.25% to 1.50% in December 2017 and began selling bonds held in its portfolio.

2018 opened with continued stock advances, then volatility.

Improving business and economic data globally continued to support stocks through January 2018. Political wrangling in the U.S. over budget resolutions could not dissuade investors from buying stocks as payrolls and factory orders increased. Long-term interest rates in the U.S. trended higher as the yield curve steepened—the 10-year Treasury rate moved from 2.46% to 2.84% and the 30-year rate moved from 2.81% to 3.08% during January 2018.

Investor sentiment shifted in February as inflation concerns emerged in the U.S. when readings from the Producer Price Index in January rose 2.5% year over year. During February, the U.S. market endured a loss from January’s high of nearly 12% before recovering much of that loss. The Fed raised the federal funds rate in March 2018. Bond yields rose across the yield curve.

During January 2018, purchasing managers’ indices in China, the eurozone, India, and Japan reported data for December that indicated continued growth. Despite positive economic signals and business fundamentals, international stock values fell during February and March 2018, swept up in the selling momentum in U.S. markets.

Globally, stocks moved higher during the third quarter of 2017.

During February, the U.S. market endured a loss from January’s high of nearly 12% before recovering much of that loss.

4 Wells Fargo Utility and Telecommunications 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.

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6 Wells Fargo Utility and Telecommunications Fund Performance highlights (unaudited)

Investment objective

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

Manager

Wells Fargo Funds Management, LLC

Subadviser

Crow Point Partners, LLC

Portfolio manager

Timothy P. O’Brien, CFA^®

Average annual total returns (%) as of March 31, 2018¹

		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 (EVUAX)	1-4-1994		(1.98	)		5.89		5.77		4.00		7.15		6.40		1.18		1.14
Class C (EVUCX)	9-2-1994		2.24			6.36		5.60		3.24		6.36		5.60		1.93		1.89
Administrator Class (EVUDX)	7-30-2010		–			–		–		4.21		7.36		6.56		1.10		0.95
Institutional Class (EVUYX)	2-28-1994		–			–		–		4.38		7.51		6.72		0.85		0.78
S&P 500 Utilities Index4	–		–			–		–		1.89		9.16		7.07		–		–
S&P 500 Index5	–		–			–		–		13.99		13.31		9.49		–		–

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.

While the S&P 500 Index is comprised of U.S. equity securities of companies diversified across ten sectors, the Fund’s holdings are concentrated primarily in utilities and telecommunication services stocks. Therefore, the performance of the S&P 500 Index is displayed only to show how the concentrated Fund performed compared with a diversified selection of U.S. equity securities.

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. 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. Funds that concentrate their investments in limited sectors, such as utilities and telecommunication services, are more vulnerable to adverse market, economic, regulatory, political, or other developments affecting those sectors. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to convertible securities risk, foreign investment risk, high-yield securities risk, smaller-company securities risk, non-diversification risk and subsidiary 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 Utility and Telecommunications Fund 7

Growth of $10,000 investment as of March 31, 2018⁶

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 19, 2010, is based on the performance of the Fund’s predecessor, Evergreen Utility and Telecommunications Fund.

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

³  The manager has contractually committed through July 31, 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. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses (if any), and extraordinary expenses are excluded from the expense cap. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Without this cap, the Fund’s returns would have been lower. The expense ratio paid by an investor is the net expense ratio (the total annual fund operating expenses after fee waivers) as stated in the prospectuses.

⁴  The S&P 500 Utilities Index is a market-value-weighted index, that measures the performance of all stocks within the utilities sector of the S&P 500 Index. You cannot invest directly in an index.

⁵  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.

⁶  The chart compares the performance of Class A shares for the most recent ten years with the S&P 500 Utilities 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%.

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

⁸  Amounts are calculated based on the total long-term investments of the Fund. These amounts are subject to change and may have changed since the date specified.

8 Wells Fargo Utility and Telecommunications Fund Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

∎ The Fund outperformed the S&P 500 Utilities Index for the 12-month period that ended March 31, 2018.

∎ The Fund benefited from strength in many regulated utilities holdings, certain telecommunication services firms, and select information technology holdings.

∎ A California electric utility and certain telecommunication services holdings detracted from performance.

A strong economy accompanied rising energy prices and interest rates.

Energy prices recovered substantially during the 12-month reporting period. Oil prices rose following producer-output reductions and modestly higher demand. The recovery in natural gas prices was less impressive, with demand depressed by comparatively warm winter weather. Interest rates rose during the year, not only on the short end but also on the long end of the yield curve. U.S. economic growth during the year was robust.

We made only moderate changes to the Fund during the reporting period.

The Fund’s composition did not change dramatically during the reporting period, and turnover remained low. We initiated and subsequently eliminated a position in PG&E Corporation after initially thinking concerns about fire liability were overblown and then deciding that they weren’t. Positions in Chatham Lodging Trust; Clipper Realty Incorporated; EQT Corporation; Snam S.p.A; and South Jersey Industries, Incorporated, were eliminated. We initiated a position in Hera S.p.A and added to existing positions in Perma-Pipe International Holdings, Incorporated, and Dominion Energy, Incorporated.

Some of the Fund’s best-performing utility holdings included American Water Works Company, Incorporated; PNM Resources, Incorporated; and Alliant Energy Corporation. The position in Shenandoah Telecommunications Company performed particularly well, as did the Visa Incorporated and MasterCard Incorporated positions.

Wheeler Real Estate Investment Trust, Incorporated, was a drag on performance, as were telecommunication services and related media holdings AT&T Incorporated and Comcast Corporation. California utility holding Edison International was a material detractor, falling in price over concerns about its potential liability for wildfires. Spark Energy, Incorporated, lagged badly after it reduced guidance.

Our outlook for utilities remains, on balance, favorable.

In our view, the fundamentals of regulated network utilities appear strong. Regulated utilities may have abundant opportunities to invest in their core businesses at returns we view as attractive. While the U.S. retains adequate power-generation capacity, current regulatory mandates are requiring utilities to increase renewable-energy sources and reduce the country’s historical reliance on fossil fuels in general and coal in particular. The development of U.S. shale-gas production has been providing investors with opportunities to make investments in gas gathering, processing, and transport infrastructure. Overall, utilities may be growing faster than at any time since the 1950s, and their growth could be sustainable for the intermediate term or longer. Our outlook for telecommunication services companies generally is less robust, with the legacy local-exchange telephone business in secular decline, cable under pressure, and wireless approaching saturation; however, select telecommunication services stocks likely present opportunities.

Short-term interest rates have begun to normalize after years of central-bank suppression. We do not believe that rates are likely to go up much on the short or the long end of the yield curve, as inflation seems well contained. A continued low interest rate environment likely should help support the prices of utilities stocks because income-seeking investors favor their relatively generous dividends. Also, the tax environment has remained reasonably favorable for utilities investors. While the tax rate on qualified dividend income increased to 23.8% from 15.0% in 2013, it remains well below the top marginal tax rate for ordinary income and has had little visible impact on the performance of utilities stocks. For now, we view the outlook for utilities as reasonably bright, with many important positives outweighing a few limited concerns.

Please see footnotes on page 7.

Performance highlights (unaudited) Wells Fargo Utility and Telecommunications Fund 9

Ten largest holdings (%) as of March 31, 20187
Visa Incorporated Class A	8.85
CMS Energy Corporation	7.44
NextEra Energy Incorporated	7.38
Eversource Energy	6.86
Alliant Energy Corporation	6.49
PNM Resources Incorporated	6.29
Sempra Energy	6.09
Edison International	5.67
Dominion Energy Incorporated	4.97
Shenandoah Telecommunications Company	4.93

Industry distribution as of March 31, 2018⁸

Please see footnotes on page 7.

10 Wells Fargo Utility and Telecommunications Fund Fund expenses (unaudited)

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

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from October 1, 2017 to March 31, 2018.

Actual expenses

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

Hypothetical example for comparison purposes

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

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

	Beginning account value 10-1-2017		Ending account value 3-31-2018		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	978.23	$	5.61		1.14	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.26	$	5.72		1.14	%
Class C
Actual	$	1,000.00	$	974.50	$	9.29		1.89	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.52	$	9.48		1.89	%
Administrator Class
Actual	$	1,000.00	$	978.78	$	4.69		0.95	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.19	$	4.78		0.95	%
Institutional Class
Actual	$	1,000.00	$	979.56	$	3.85		0.78	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.04	$	3.93		0.78	%

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

Portfolio of investments—March 31, 2018 Wells Fargo Utility and Telecommunications Fund 11

Security name	Shares			Value
Common Stocks: 95.83%
Consumer Discretionary: 4.21%
Media: 4.21%
Comcast Corporation Class A		450,200		$	15,383,334
Financials: 0.17%
Diversified Financial Services: 0.17%
A-Mark Precious Metals Incorporated		49,427			605,481
Industrials: 0.51%
Machinery: 0.51%
Perma-Pipe International Holdings Incorporated †		206,842			1,871,920
Information Technology: 13.41%
IT Services: 13.41%
MasterCard Incorporated Class A		95,000			16,640,200
Visa Incorporated Class A		270,000			32,297,400
					48,937,600
Real Estate: 1.10%
Equity REITs: 1.10%
Gladstone Land REIT Corporation		40,000			483,200
Preferred Apartment Communities Incorporated Series A		250,000			3,547,500
			��		4,030,700
Telecommunication Services: 5.91%
Diversified Telecommunication Services: 0.98%
AT&T Incorporated		100,000			3,565,000
Wireless Telecommunication Services: 4.93%
Shenandoah Telecommunications Company		500,000			18,000,000
Utilities: 70.52%
Electric Utilities: 40.37%
ALLETE Incorporated		10,000			722,500
Alliant Energy Corporation		580,000			23,698,800
American Electric Power Company Incorporated		175,000			12,003,250
Edison International		325,000			20,689,500
Eversource Energy		425,000			25,041,000
Great Plains Energy Incorporated		210,000			6,675,900
NextEra Energy Incorporated		165,000			26,949,450
PNM Resources Incorporated		600,000			22,950,000
Spark Energy Incorporated Class A (l)		729,006			8,638,721
					147,369,121
Multi-Utilities: 25.65%
CenterPoint Energy Incorporated		250,000			6,850,000
CMS Energy Corporation		600,000			27,174,000

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

12 Wells Fargo Utility and Telecommunications Fund Portfolio of investments—March 31, 2018

Security name						Shares		Value
Multi-Utilities (continued)
Dominion Energy Incorporated							269,000	$	18,138,670
Hera SpA							1,000,000		3,664,140
Northwestern Corporation							102,411		5,509,712
Public Service Enterprise Group Incorporated							200,000		10,048,000
Sempra Energy							200,000		22,244,000
									93,628,522
Water Utilities: 4.50%
American Water Works Company Incorporated							200,000		16,426,000
Total Common Stocks (Cost $148,888,409)									349,817,678
	Dividend yield
Preferred Stocks: 1.63%
Real Estate: 0.64%
Equity REITs: 0.64%
Wheeler REIT Incorporated «		14.00	%				150,000		2,344,500
Utilities: 0.99%
Electric Utilities: 0.99%
Spark Energy Incorporated		9.87					150,000		3,600,000
Total Preferred Stocks (Cost $7,496,558)									5,944,500
				Expiration date
Warrants: 0.00%
Energy: 0.00%
Oil, Gas & Consumable Fuels: 0.00%
Energy & Exploration Partners Incorporated †(a)					5-16-2023		9		0
Total Warrants (Cost $0)									0
	Yield
Short-Term Investments: 2.92%
Investment Companies: 2.92%
Securities Lending Cash Investment LLC (l)(r)(u)		1.89					1,328,142		1,328,275
Wells Fargo Government Money Market Fund Select Class (l)(u)		1.54					9,340,273		9,340,273
Total Short-Term Investments (Cost $10,668,548)									10,668,548

Total investments in securities (Cost $167,053,515)	100.38	%		366,430,726
Other assets and liabilities, net	(0.38	)		(1,403,882	)
Total net assets	100.00	%	$	365,026,844

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

Portfolio of investments—March 31, 2018 Wells Fargo Utility and Telecommunications Fund 13

† 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.

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

± 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.

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
Utilities
Electric Utilities
Spark Energy Incorporated Class A		364,503		364,503		0		729,006	$	0	$	(3,007,150	)	$	528,529	$	8,638,721		2.36	%
Short-Term Investments
Investment Companies
Securities Lending Cash Investment LLC		40,496		36,449,783		35,162,137		1,328,142		50		0			85,097		1,328,275
Wells Fargo Government Money Market Fund Select Class		9,484,804		57,839,019		57,983,550		9,340,273		0		0			93,791		9,340,273
																	10,668,548		2.92
									$	50	$	(3,007,150	)	$	707,417	$	19,307,269		5.28	%

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

14 Wells Fargo Utility and Telecommunications Fund Statement of assets and liabilities—March 31, 2018

Assets
Investments in unaffiliated securities (including $1,361,373 of securities loaned), at value (cost $149,628,926)	$	347,123,457
Investments in affiliated securities, at value (cost $17,424,589)		19,307,269
Cash		306,625
Foreign currency, at value (cost $183,983)		181,793
Receivable for Fund shares sold		151,819
Receivable for dividends		616,225
Receivable for securities lending income		3,813
Prepaid expenses and other assets		28,054
Total assets		367,719,055
Liabilities
Payable upon receipt of securities loaned		1,328,225
Payable for investments purchased		690,716
Payable for Fund shares redeemed		221,214
Management fee payable		204,346
Administration fees payable		63,884
Distribution fees payable		27,285
Trustees’ fees and expenses payable		2,025
Shareholder servicing fees payable		72,461
Accrued expenses and other liabilities		82,055
Total liabilities		2,692,211
Total net assets	$	365,026,844
NET ASSETS CONSIST OF
Paid-in capital	$	175,206,324
Undistributed net investment income		451,894
Accumulated net realized losses on investments		(10,006,395	)
Net unrealized gains on investments		199,375,021
Total net assets	$	365,026,844
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	287,047,139
Shares outstanding – Class A1		14,028,458
Net asset value per share – Class A		$20.46
Maximum offering price per share – Class A2		$21.71
Net assets – Class C	$	41,729,112
Shares outstanding – Class C1		2,038,623
Net asset value per share – Class C		$20.47
Net assets – Administrator Class	$	4,702,476
Shares outstanding – Administrator Class1		229,569
Net asset value per share – Administrator Class		$20.48
Net assets – Institutional Class	$	31,548,117
Shares outstanding – Institutional Class1		1,542,526
Net asset value per share – Institutional Class		$20.45

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 March 31, 2018 Wells Fargo Utility and Telecommunications Fund 15

Investment income
Dividends (net of foreign withholding taxes of $25,604)	$	9,964,967
Income from affiliated securities		707,417
Total investment income		10,672,384
Expenses
Management fee		2,530,016
Administration fees
Class A		651,639
Class B		102	1
Class C		100,228
Administrator Class		6,092
Institutional Class		34,407
Shareholder servicing fees
Class A		775,761
Class B		121	1
Class C		119,319
Administrator Class		11,715
Distribution fees
Class B		363	1
Class C		357,957
Custody and accounting fees		25,623
Professional fees		48,819
Registration fees		71,133
Shareholder report expenses		75,850
Trustees’ fees and expenses		18,999
Other fees and expenses		10,795
Total expenses		4,838,939
Less: Fee waivers and/or expense reimbursements		(153,432	)
Net expenses		4,685,507
Net investment income		5,986,877
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		(3,563,434	)
Affiliated securities		50
Net realized losses on investments		(3,563,384	)
Net change in unrealized gains (losses) on:
Unaffiliated securities		16,376,553
Affiliated securities		(3,007,150	)
Net change in unrealized gains (losses) on investments		13,369,403
Net realized and unrealized gains (losses) on investments		9,806,019
Net increase in net assets resulting from operations	$	15,792,896

¹  For the period from April 1, 2017 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.

16 Wells Fargo Utility and Telecommunications Fund Statement of changes in net assets

	Year ended March 31, 2018						Year ended March 31, 2017
Operations
Net investment income				$	5,986,877					$	6,758,973
Net realized gains (losses) on investments					(3,563,384	)					9,085,832
Net change in unrealized gains (losses) on investments					13,369,403						16,612,203
Net increase in net assets resulting from operations					15,792,896						32,457,008
Distributions to shareholders from
Net investment income
Class A					(5,216,624	)					(5,455,227	)
Class B					0	1					(13,658	)
Class C					(426,300	)					(530,072	)
Administrator Class					(90,935	)					(123,585	)
Institutional Class					(572,093	)					(469,463	)
Total distributions to shareholders					(6,305,952	)					(6,592,005	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		519,687			10,873,178			856,994			16,502,586
Class B		0	1		0	1		931			17,537
Class C		32,953			695,831			133,306			2,547,241
Administrator Class		69,039			1,434,536			167,059			3,222,053
Institutional Class		667,149			13,862,735			1,186,116			22,755,310
					26,866,280						45,044,727
Reinvestment of distributions
Class A		231,217			4,823,724			261,582			5,117,059
Class B		0	1		0	1		526			10,337
Class C		19,292			401,388			24,081			472,936
Administrator Class		4,175			87,094			6,212			121,579
Institutional Class		25,626			532,962			21,471			420,106
					5,845,168						6,142,017
Payment for shares redeemed
Class A		(2,125,163	)		(44,280,111	)		(2,573,856	)		(49,397,946	)
Class B		(34,601	)1		(704,872	)1		(121,956	)		(2,335,058	)
Class C		(568,843	)		(11,910,983	)		(673,370	)		(12,905,384	)
Administrator Class		(101,645	)		(2,105,048	)		(275,364	)		(5,137,966	)
Institutional Class		(379,011	)		(7,884,279	)		(797,063	)		(15,174,155	)
					(66,885,293	)					(84,950,509	)
Net decrease in net assets resulting from capital share transactions					(34,173,845	)					(33,763,765	)
Total decrease in net assets					(24,686,901	)					(7,898,762	)
Net assets
Beginning of period					389,713,745						397,612,507
End of period				$	365,026,844					$	389,713,745
Undistributed net investment income				$	451,894					$	779,965

¹  For the period from April 1, 2017 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.

Financial highlights Wells Fargo Utility and Telecommunications Fund 17

(For a share outstanding throughout each period)

	Year ended March 31
CLASS A	2018			2017			2016			2015			2014
Net asset value, beginning of period		$20.01			$18.70			$18.23			$17.71			$15.85
Net investment income		0.34			0.35			0.31			0.29			0.36
Net realized and unrealized gains (losses) on investments		0.47			1.30			0.45			0.57			1.84
Total from investment operations		0.81			1.65			0.76			0.86			2.20
Distributions to shareholders from
Net investment income		(0.36	)		(0.34	)		(0.29	)		(0.34	)		(0.34	)
Net asset value, end of period		$20.46			$20.01			$18.70			$18.23			$17.71
Total return1		4.00	%		8.87	%		4.30	%		4.82	%		14.12	%
Ratios to average net assets (annualized)
Gross expenses		1.17	%		1.18	%		1.20	%		1.22	%		1.22	%
Net expenses		1.14	%		1.14	%		1.14	%		1.14	%		1.14	%
Net investment income		1.60	%		1.79	%		1.73	%		1.57	%		2.21	%
Supplemental data
Portfolio turnover rate		7	%		22	%		15	%		29	%		20	%
Net assets, end of period (000s omitted)		$287,047			$308,152			$315,238			$341,342			$350,029

¹  Total return calculations do not include any sales charges.

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

18 Wells Fargo Utility and Telecommunications Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended March 31
CLASS C	2018			2017			2016			2015			2014
Net asset value, beginning of period		$20.01			$18.70			$18.25			$17.73			$15.86
Net investment income		0.13			0.16			0.17	1		0.15			0.24	1
Net realized and unrealized gains (losses) on investments		0.52			1.34			0.45			0.57			1.85
Total from investment operations		0.65			1.50			0.62			0.72			2.09
Distributions to shareholders from
Net investment income		(0.19	)		(0.19	)		(0.17	)		(0.20	)		(0.22	)
Net asset value, end of period		$20.47			$20.01			$18.70			$18.25			$17.73
Total return2		3.24	%	��	8.04	%		3.49	%		4.04	%		13.31	%
Ratios to average net assets (annualized)
Gross expenses		1.92	%		1.93	%		1.95	%		1.97	%		1.97	%
Net expenses		1.89	%		1.89	%		1.89	%		1.89	%		1.89	%
Net investment income		0.85	%		1.02	%		0.99	%		0.82	%		1.46	%
Supplemental data
Portfolio turnover rate		7	%		22	%		15	%		29	%		20	%
Net assets, end of period (000s omitted)		$41,729			$51,123			$57,431			$63,632			$61,329

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 Utility and Telecommunications Fund 19

(For a share outstanding throughout each period)

	Year ended March 31
ADMINISTRATOR CLASS	2018			2017			2016			2015			2014
Net asset value, beginning of period		$20.03			$18.72			$18.25			$17.73			$15.86
Net investment income		0.37			0.38			0.34			0.33			0.40
Net realized and unrealized gains (losses) on investments		0.48			1.30			0.45			0.56			1.84
Total from investment operations		0.85			1.68			0.79			0.89			2.24
Distributions to shareholders from
Net investment income		(0.40	)		(0.37	)		(0.32	)		(0.37	)		(0.37	)
Net asset value, end of period		$20.48			$20.03			$18.72			$18.25			$17.73
Total return		4.21	%		9.04	%		4.49	%		5.01	%		14.41	%
Ratios to average net assets (annualized)
Gross expenses		1.09	%		1.10	%		1.09	%		1.06	%		1.04	%
Net expenses		0.95	%		0.95	%		0.95	%		0.95	%		0.95	%
Net investment income		1.80	%		1.93	%		1.93	%		1.79	%		2.38	%
Supplemental data
Portfolio turnover rate		7	%		22	%		15	%		29	%		20	%
Net assets, end of period (000s omitted)		$4,702			$5,168			$6,740			$8,365			$9,383

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

20 Wells Fargo Utility and Telecommunications Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended March 31
INSTITUTIONAL CLASS	2018			2017			2016			2015			2014
Net asset value, beginning of period		$20.00			$18.69			$18.23			$17.74			$15.87
Net investment income		0.41			0.42			0.36	1		0.35	1		0.42
Net realized and unrealized gains (losses) on investments		0.47			1.30			0.45			0.54			1.85
Total from investment operations		0.88			1.72			0.81			0.89			2.27
Distributions to shareholders from
Net investment income		(0.43	)		(0.41	)		(0.35	)		(0.40	)		(0.40	)
Net asset value, end of period		$20.45			$20.00			$18.69			$18.23			$17.74
Total return		4.38	%		9.26	%		4.63	%		5.02	%		14.58	%
Ratios to average net assets (annualized)
Gross expenses		0.84	%		0.85	%		0.84	%		0.79	%		0.79	%
Net expenses		0.78	%		0.78	%		0.78	%		0.78	%		0.78	%
Net investment income		1.95	%		2.18	%		2.03	%		1.89	%		2.56	%
Supplemental data
Portfolio turnover rate		7	%		22	%		15	%		29	%		20	%
Net assets, end of period (000s omitted)		$31,548			$24,575			$15,295			$14,156			$10,325

¹  Calculated based upon average shares outstanding

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

Notes to financial statements Wells Fargo Utility and Telecommunications Fund 21

1. ORGANIZATION

Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Wells Fargo Utility and Telecommunications Fund (the “Fund”) which is a non-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 and options that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price. If no sale occurs on the principal exchange or market that day, a fair value price will be determined in accordance with the Fund’s Valuation Procedures.

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

The values of securities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Wells Fargo Asset Management Pricing Committee at Wells Fargo Funds Management, LLC (“Funds Management”).

Many securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange and therefore may not fully reflect trading or events that occur after the close of the principal exchange in which the foreign securities are traded, but before the close of the New York Stock Exchange. If such trading or events are expected to materially affect the value of such securities, then fair value pricing procedures approved by the Board of Trustees of the Fund are applied. These procedures take into account multiple factors including movements in U.S. securities markets after foreign exchanges close. Foreign securities that are fair valued under these procedures are categorized as Level 2 and the application of these procedures may result in transfers between Level 1 and Level 2. Depending on market activity, such fair valuations may be frequent. Such fair value pricing may result in net asset values that are higher or lower than net asset values based on the last reported sales price or latest quoted bid price. On March 31, 2018, such fair value pricing was used in pricing certain 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 Wells Fargo Asset Management Pricing Committee. 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 Wells Fargo Asset Management Pricing Committee 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

22 Wells Fargo Utility and Telecommunications Fund Notes to financial statements

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 Wells Fargo Asset Management Pricing Committee. 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.

Securities lending

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, if any, is included in income from affiliated securities on the Statement of Operations.

Options

The Fund is subject to equity price risk in the normal course of pursuing its investment objectives. The Fund may write covered call options or secured put options on individual securities and/or indexes. When the Fund writes an option, an amount equal to the premium received is recorded as a liability and is subsequently adjusted to the current market value of the written option. Premiums received from written options that expire unexercised are recognized as realized gains on the expiration date. For exercised options, the difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is treated as a realized gain or loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security in calculating the realized gain or loss on the sale. If a put option is exercised, the premium reduces the cost of the security purchased. The Fund, as a writer of an option, bears the market risk of an unfavorable change in the price of the security and/or index underlying the written option.

Notes to financial statements Wells Fargo Utility and Telecommunications Fund 23

The Fund may also purchase call or put options. Premiums paid are included in the Statement of Assets and Liabilities as investments, the values of which are subsequently adjusted based on the current market values of the options. Premiums paid for purchased options that expire are recognized as realized losses on the expiration date. Premiums paid for purchased options that are exercised or closed are added to the amount paid or offset against the proceeds received for the underlying security to determine the realized gain or loss. The risk of loss associated with purchased options is limited to the premium paid.

Options traded on an exchange are regulated and terms of the options are standardized. Purchased options traded over-the-counter expose the Fund to counterparty risk in the event the counterparty does not perform. This risk can be mitigated by having a master netting arrangement between the Fund and the counterparty and by having the counterparty post collateral to cover the Fund’s exposure to the counterparty.

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 are recorded on the ex-dividend date and paid from net investment income quarterly and any net realized gains are paid at least annually. 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 at year end.

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 March 31, 2018, the aggregate cost of all investments for federal income tax purposes was $172,076,229 and the unrealized gains (losses) consisted of:

Gross unrealized gains	$	200,932,069
Gross unrealized losses		(6,577,572	)
Net unrealized gains	$	194,354,497

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 March 31, 2018, 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
$(8,996)	$8,996

As of March 31, 2018 the Fund had capital loss carryforwards which consist of $4,983,682 in short-term capital losses.

Class allocations

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

24 Wells Fargo Utility and Telecommunications Fund Notes to financial statements

3. FAIR VALUATION MEASUREMENTS

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

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

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

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

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

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of March 31, 2018:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	15,383,334	$	0	$	0	$	15,383,334
Financials		605,481		0		0		605,481
Industrials		1,871,920		0		0		1,871,920
Information technology		48,937,600		0		0		48,937,600
Real estate		4,030,700		0		0		4,030,700
Telecommunication services		21,565,000		0		0		21,565,000
Utilities		253,759,503		3,664,140		0		257,423,643
Preferred stocks
Real estate		2,344,500		0		0		2,344,500
Utilities		3,600,000		0		0		3,600,000
Warrants
Energy		0		0		0		0
Short-term investments
Investment companies		9,340,273		0		0		9,340,273
Investments measured at net asset value*								1,328,275
Total assets	$	361,438,311	$	3,664,140	$	0	$	366,430,726

* 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 $1,328,275 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At March 31, 2018, the Fund had no material transfers between Level 1 and Level 2. The Fund did not have any transfers into/out of Level 3.

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo, is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment

Notes to financial statements Wells Fargo Utility and Telecommunications Fund 25

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 March 31, 2018, the management fee was equivalent to an annual rate of 0.65% 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. Crow Point Partners, LLC, 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 0.20% and declining to 0.10% as the average daily net assets of the Fund increase.

Administration fees

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

	Class-level administration fee
Class A, Class B, Class C		0.21	%
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 July 31, 2018 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 1.14% for Class A shares, 1.89% for Class C shares, 0.95% 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.

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 March 31, 2018, Funds Distributor received $10,424 from the sale of Class A shares. No contingent deferred sales charges were incurred by Class A, Class B, and Class C for the year ended March 31, 2018.

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 under 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 March 31, 2018 were $ 27,740,788 and $61,626,120, respectively.

26 Wells Fargo Utility and Telecommunications 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 March 31, 2018, there were no borrowings by the Fund under the agreement.

7. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid was $6,305,952 and $6,592,005 of ordinary income for the years ended March 31, 2018 and March 31, 2017, respectively.

As of March 31 2018, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Unrealized gains	Capital loss carryforward
$459,714	$194,352,307	$(4,983,682)

8. CONCENTRATION RISK

The Fund invests a substantial portion of its assets in utility and telecommunications companies and, therefore, may be more affected by changes in the utility and telecommunications sectors 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 Utility and Telecommunications Fund 27

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of the Wells Fargo Utility and Telecommunications Fund (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, including the portfolio of investments, as of March 31, 2018, 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 related notes (collectively, the “financial statements”) and the financial highlights for each of the years in the five-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of March 31, 2018, 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.

Basis for Opinion

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 are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of March 31, 2018, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.

We have not been able to determine the specific year that we began serving as the auditor of one or more Wells Fargo Funds investment companies, however we are aware that we have served as the auditor of one or more Wells Fargo Funds investment companies since at least 1955.

Boston, Massachusetts

May 23, 2018

28 Wells Fargo Utility and Telecommunications 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 March 31, 2018.

Pursuant to Section 854 of the Internal Revenue Code, $6,305,952 of income dividends paid during the fiscal year ended March 31, 2018 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 Utility and Telecommunications 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 153 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; Chair Liaison, since 2018	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 the Glimmerglass Festival. She is also an inactive Chartered Financial Analyst.	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 Utility and Telecommunications 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; Governance Committee Chairman, since 2018	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; Chairman, since 2018; Vice Chairman, from 2017 to 2018	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
James G. Polisson***** (Born 1959)	Trustee, since 2018; Advisory Board Member, from 2017 to 2018	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. Trustee of the San Francisco Mechanics’ Institute, a non-profit organization, from 2013 to 2015. 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.	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. Trustee of the Evergreen Fund 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
Pamela Wheelock***** (Born 1959)	Trustee, since 2018; Advisory Board Member, from 2017 to 2018	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.	Asset Allocation Trust

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

** Jane Freeman became Chair Liaison effective January 1, 2018.

*** Olivia Mitchell became Chairman of the Governance Committee effective January 1, 2018.

**** Timothy Penny became Chairman effective January 1, 2018.

***** James Polisson and Pamela Wheelock each became a Trustee effective January 1, 2018.

Other information (unaudited) Wells Fargo Utility and Telecommunications 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.
Alexander Kymn* (Born 1973)	Secretary, since 2018; Chief Legal Officer, since 2018	Senior Company Counsel of Wells Fargo Bank, N.A. since 2018 (previously Senior Counsel from 2007 to 2018). Vice President of Wells Fargo Funds Management, LLC from 2008 to 2014.
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 77 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 76 funds and Assistant Treasurer of 77 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.

* Alexander Kymn became the Secretary and Chief Legal Officer effective April 17, 2018.

** David Messman was the Secretary and Chief Legal Officer until April 16, 2018.

32 Wells Fargo Utility and Telecommunications 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

INR —  Indian rupee

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 Agency

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

SIFMA —  Securities Industry and Financial Markets Association

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

© 2018 Wells Fargo Funds Management, LLC. All rights reserved.

309989 05-18 A318/AR318 03-18

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 March 31, 2018		Fiscal year ended March 31, 2017
Audit fees	$	295,730	$	286,125
Audit-related fees		—		—
Tax fees (1)		40,565		39,400
All other fees		—		—
	$	336,295	$	325,525

(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:
	Andrew Owen
	President
Date:	May 23, 2018

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:
	Andrew Owen
	President
Date:	May 23, 2018
By:	/s/ Nancy Wiser
	Nancy Wiser
	Treasurer
Date: May 23, 2018