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)

Alexander Kymn

Wells Fargo Funds Management, LLC

525 Market St., San Francisco, CA 94105

(Name and address of agent for service)

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

Date of fiscal year end: August 31

Registrant is making a filing for 9 of its series:

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

Date of reporting period: August 31, 2018

ITEM 1. REPORT TO STOCKHOLDERS

Annual Report

August 31, 2018

Wells Fargo Adjustable Rate Government 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	26
Statement of operations	27
Statement of changes in net assets	28
Financial highlights	29
Notes to financial statements	33
Report of independent registered public accounting firm	38
Other information	39
Appendix A	46

The views expressed and any forward-looking statements are as of August 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 Adjustable Rate Government Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

After advancing during 2017, economic growth and stock markets globally diverged during the first eight months of 2018.

Dear Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Adjustable Rate Government Fund for the 12-month period that ended August 31, 2018. After advancing during 2017, economic growth and stock markets globally diverged during the first eight months of 2018. For fixed-income investors, taxable bond returns suffered and high-yield and municipal bond returns were positive.

For the period, U.S. stocks, as measured by the S&P 500 Index,¹ gained 19.66%, and international stocks, as measured by the MSCI ACWI ex USA Index (Net),² added 3.18%. Based on the MSCI EM Index (Net),³ emerging market stocks lost 0.68%. For bond investors, the Bloomberg Barclays U.S. Aggregate Bond Index⁴ declined 1.05% while the Bloomberg Barclays Global Aggregate ex-USD Index⁵ fell 1.64%. The Bloomberg Barclays Municipal Bond Index⁶ added 0.49%, and the ICE BofAML U.S. High Yield Index⁷ was up 3.26%.

Continued optimism in the U.S. characterized the fourth quarter of 2017.

Some observers described economic conditions in late 2017 as a Goldilocks scenario: synchronized global growth, low inflation, healthy corporate earnings, and a weaker U.S. dollar that supported international growth. During the quarter, the U.S. Bureau of Economic Analysis reported that annualized U.S. gross domestic product (GDP) growth for the third quarter of 2017 was 2.8% and inflation remained below U.S. Federal Reserve (Fed) targets. U.S. corporate earnings and consumer confidence improved.

Economic momentum increased in Europe. The Bank of England (BOE) raised interest rates in November 2017 to 0.50%, the first increase in more than 10 years, indicating confidence in the economy’s growth potential. Meanwhile, the European Central Bank and the Bank of Japan kept interest rates low to spur business activities and bought bonds in an effort to encourage equity investments. The People’s Bank of China’s (PBOC’s) policies sought to stimulate business. Many emerging market economies benefited from stronger currencies versus the U.S. dollar, while commodity price increases benefited countries that rely on natural resources for exports.

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 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.

⁶  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.

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 Adjustable Rate Government Fund 3

Volatility reemerged during the first quarter of 2018 as global tensions and inflation fears increased.

Stock market gains in January 2018 followed the passage of lower U.S. tax rates. Some investors then grew concerned about trade, particularly between the U.S. and China, and the specter of inflation. The Fed followed its 25-basis-point (bp; 100 bps equal 1.00%) federal funds rate increase in December 2017 with a further 25-bp increase in March 2018. The inflation rate in March reached the Fed’s 2% target for the first time in a year.

The S&P 500 Index closed the first quarter with a negative return, the first negative quarterly return for the index since 2014. Overseas investment markets reversed strong returns in 2017, hurt by a stronger U.S. dollar and mounting trade and diplomatic tensions. After gaining 27.19% for the 12-month period that ended December 31, 2017, the MSCI ACWI ex USA Index (Net) declined 1.81% for the quarter that ended March 31, 2018.

Global trade tensions escalated during the second quarter.

Global trade tensions escalated throughout the second quarter of 2018. The U.S. government imposed tariffs, and foreign governments in North America, Europe, and Asia retaliated. The escalating tensions chilled investment activity as observers awaited signals of next steps.

Meanwhile, inflation continued an upward trend. The CPI-U⁸ added 0.1% in June after increases of 0.2% in both April and May. On a year-over-year basis, the all-items index rose 2.9% for the 12 months that ended June 30, 2018. The index for all items less food and energy rose 2.3% for the same 12-month period.

U.S. stocks gained while international stocks and bonds declined during the summer of 2018.

The U.S. economy strengthened during the summer months. Revised second-quarter GDP data released in August showed the U.S. economy growing at a 4.2% rate. After ticking up slightly in June, the unemployment rate in the U.S. was 3.9% in July and August, according to the U.S. Department of Labor. Wages showed more consistent growth than they had in recent quarters, and consumer confidence remained strong.

Several U.S. equity market indices reached records during August, with the S&P 500 Index gaining 7.76% for the three-month period that ended August 31, 2018. International stock values continued to suffer under the effects of a strong U.S. dollar and continuing trade tensions. The MSCI ACWI ex USA Index (Net) and the MSCI EM Index (Net) were down 4.70% and 1.64%, respectively, during the same three-month period.

The Fed increased the federal funds rate in June, and expectations grew that two more rate increases were in the offing in 2018. Long-term interest rates in the U.S. remained at higher levels relative to the prior 10 years. Rates on 10-year and 30-year Treasury bonds—2.46% and 2.81%, respectively, on January 1, 2018—were 2.86% and 3.02%, respectively, on August 31, off their peak levels on May 17, 2018, of 3.11% and 3.25%, respectively. Some investors became more aware of and concerned about the potential for an inverted yield curve—sometimes a recession signal—as short-term rates increased more quickly than long-term rates. The Fed decided to forgo an interest rate increase at its August meeting.

The S&P 500 Index closed the first quarter with a negative return, the first negative quarterly return for the index since 2014.

⁸  The Consumer Price Index for All Urban Consumers (CPI-U) measures the changes in the price of a basket of goods and services purchased by urban consumers. The urban consumer population is deemed by many as a better representative measure of the general public because close to 90% of the country’s population lives in highly populated areas. You cannot invest directly in an index.

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

Internationally, members of Prime Minister Theresa May’s U.K./Brexit negotiating team resigned amid unproductive negotiations. In early August, the BOE’s Monetary Policy Committee increased its key interest rate to 0.75%. Central banks in Europe and Japan maintained low interest rates and accommodative monetary policies. Amid rising trade uncertainty, the PBOC cut reserve requirement ratios and accelerated infrastructure spending and tax cuts for business enterprises and individuals. Nevertheless, a strengthening U.S. dollar and the trade tensions remained headwinds for investors overseas.

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

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

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

Sincerely,

Andrew Owen

President

Wells Fargo Funds

Notice to shareholders

∎ At a meeting held on May 22-23, 2018, the Board of Trustees of the Fund approved changes to the Fund’s Class A sales charge schedule, effective August 1, 2018. In connection with this change, the net asset value (NAV) breakpoint was lowered from $500,000 to $250,000 and NAV purchases of $250,000 or more redeemed within 12 months of purchase are assessed a contingent deferred sales charge (CDSC) of 0.40%. There is no change for purchase amounts below this breakpoint. Beginning August 1, 2018, any purchases made by a shareholder with an active Letter of Intent (LOI) are subject to the terms of the new load schedule.

∎ At a meeting held on August 14-15, 2018, the Board of Trustees of the Fund approved the following policy which will be effective on or about February 5, 2019:

Class C shares will convert automatically into Class A shares ten years after the initial date of purchase or, if you acquired your Class C shares through an exchange or conversion from another share class, ten years after the date you acquired your Class C shares. When Class C shares that you acquired through a purchase or exchange convert, any other Class C shares that you purchased with reinvested dividends and distributions also will convert into Class A shares on a pro rata basis. A shorter holding period may also apply depending on your intermediary. Please see “Appendix A—Sales Charge Reductions and Waivers for Certain Intermediaries” in the Fund’s prospectus or at the end of this report.

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 Adjustable Rate Government Fund Performance highlights (unaudited)

Investment objective

The Fund seeks current income consistent with capital preservation.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Christopher Y. Kauffman, CFA^®

Michal Stanczyk

Average annual total returns (%) as of August 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 (ESAAX)	6-30-2000		(1.01	)		0.02			1.00		0.98		0.43			1.21		0.80		0.74
Class C (ESACX)	6-30-2000		(0.77	)		(0.32	)		0.45		0.23		(0.32	)		0.45		1.55		1.49
Administrator Class (ESADX)	7-30-2010		–			–			–		1.12		0.57			1.35		0.74		0.60
Institutional Class (EKIZX)	10-1-1991		–			–			–		1.26		0.71			1.48		0.47		0.46
Bloomberg Barclays 6-Month Treasury Bill Index4	–		–			–			–		1.51		0.65			0.63		–		–

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

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

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

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

Please see footnotes on page 7.

Performance highlights (unaudited) Wells Fargo Adjustable Rate Government Fund 7

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

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

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

³  The manager has contractually committed through December 31, 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 Bloomberg Barclays 6-Month Treasury Bill Index tracks the performance and attributes of recently issued 6-Month U.S. Treasury bills. The index follows Bloomberg Barclays’ monthly rebalancing conventions. You cannot invest directly in an index.

⁵  The chart compares the performance of Class A shares for the most recent ten years with the performance of the Bloomberg Barclays 6-Month Treasury Bill 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 2.00%.

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

⁷  The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. You cannot invest directly in an index.

⁸  Amounts are calculated based on the total long-term investments of the Fund. These amounts are subject to change and may have changed since the date specified.

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

MANAGER’S DISCUSSION

Fund highlights

∎ The Fund underperformed its benchmark, the Bloomberg Barclays 6-Month Treasury Bill Index, for the 12-month period that ended August 31, 2018.

∎ The significant increase in short-term interest rates and flattening of the yield curve over the reporting period caused market expectations for adjustable-rate mortgage (ARM) prepayments to increase, which resulted in widening spreads. This resulted in negative price performance, which detracted from the Fund’s performance.

∎ The Fund’s focus on seasoned ARMs that have already had rate-adjustment resets and an increased allocation to lower-dollar-price floating-rate collateralized mortgage obligations (CMOs) mitigated some of the underperformance. Seasoned ARM securities generally exhibited slower, more stable prepayments compared with ARMs with rate-adjustment resets still pending.

∎ The Fund’s duration during the period remained roughly unchanged at 0.7 years.

Ten largest holdings (%) as of August 31, 20186
FNMA Series 2002-66 Class A3, 4.09%, 4-25-2042	2.00
FNMA Series 2004-W15 Class 3A, 3.96%, 6-25-2044	1.49
GNMA Series 2017-H11 Class FE, 2.84%, 5-20-2067	1.26
FHLMC Series T-67 Class 1A1C, 3.67%, 3-25-2036	1.22
FNMA Series 2006-W01 Class 3A, 3.59%, 10-25-2045	1.21
FNMA Series 2004-W12 Class 2A, 4.02%, 6-25-2044	1.17
FNMA Series 2001-T12 Class A4, 4.23%, 8-25-2041	1.08
FNMA Series 2003-W18 Class 2A, 4.04%, 6-25-2043	0.97
FHLMC Series T-67 Class 2A1C, 3.43%, 3-25-2036	0.95
FHLMC Series T-62 Class 1A1, 2.95%, 10-25-2044	0.89

Economic growth accelerated and policy normalization continued.

Over the past four quarters, U.S. gross domestic product (GDP) grew by 2.9% in real terms, which was above the post-financial-crisis average. Business investment was a significant source of strength, rising 4.8% for the 12 months that ended June 30, 2018. Consumer spending was a net contributor to growth, although it failed to keep pace with the business sector. Inventories were a net detractor from GDP growth, while trade and government spending were modestly positive factors.

The labor market generally was healthy over the past 12 months. Nonfarm payrolls expanded by an average of 194,000 jobs per month over the period, while the

unemployment rate declined to 3.9% at the end of August 2018 from 4.4% a year earlier. Also encouraging was a 0.2% rise in the employment/population ratio since August 2017, reflecting both the fall in unemployment and a modest increase in the labor force participation rate. Wage gains of about 2.9% over the past 12 months were sufficient to support consumption growth without sparking fears of rising inflation. The CPI⁷ also rose 2.9% over the past year, which accelerated due in part to higher energy prices.

The U.S. Federal Reserve’s (Fed’s) rate-setting committee, the Federal Open Market Committee (FOMC), raised the federal funds rate three times over the past 12 months by a total of 0.75% reflecting the continuation of its gradual approach to hiking interest rates.

In line with the FOMC’s policy moves, interest rates had an upward bias over the past 12 months, particularly in shorter-term maturity instruments. Yields on 2-year Treasuries rose by 130 basis points (bps; 100 bps equal 1.00%) during the period, while 10-year Treasuries were about 75 bps higher. Investment-grade credit spreads tightened rapidly into the start of 2018 after the corporate tax cut was enacted in the U.S. but ended the period slightly wider after trade tensions and heavy supply took their toll on bond prices.

Please see footnotes on page 7.

Performance highlights (unaudited) Wells Fargo Adjustable Rate Government Fund 9

Portfolio allocation as of August 31, 2018⁸

The Fund was predominantly invested in adjustable-rate residential mortgage securities.

The Fund remains defensively positioned with a significant out-of-benchmark allocation to ARMs and floating-rate CMOs that have frequent rate resets and are predominately indexed to the 1-Year Treasury Constant Maturity Rate and the 12-month London Interbank Offered Rate. Performance during the period lagged the benchmark due to the Fund’s heavy allocation to post-reset ARMs, which underperformed U.S. Treasuries. Spreads in the sector came under pressure as an increase in short-term interest rates combined with a flattening yield curve caused investors to anticipate that prepayments could accelerate as adjustable-rate mortgage holders refinanced into fixed-rate mortgages.

The Fund’s duration remained within a narrow band of 0.65 to 0.75 years during the reporting period. We continued to see value in seasoned ARMs that have already had their rates reset with favorable prepayment characteristics. We also increased the Fund’s positioning in floating-rate CMOs.

We expect modestly above-trend economic growth to continue.

We expect macroeconomic trends to remain relatively consistent in the coming quarters, aided by fiscal stimulus and looser regulations. Real GDP growth in the area of 3% is likely to persist for a period of time, barring some external shock. The biggest risks to the outlook include an escalation in trade tensions and a larger-than-expected slowdown in the Chinese economy.

Please see footnotes on page 7.

10 Wells Fargo Adjustable Rate Government Fund Fund expenses (unaudited)

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

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from March 1, 2018 to August 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 3-1-2018		Ending account value 8-31-2018		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,006.25	$	3.74		0.74	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.48	$	3.77		0.74	%
Class C
Actual	$	1,000.00	$	1,002.45	$	7.52		1.49	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.69	$	7.58		1.49	%
Administrator Class
Actual	$	1,000.00	$	1,005.82	$	3.03		0.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.18	$	3.06		0.60	%
Institutional Class
Actual	$	1,000.00	$	1,006.54	$	2.33		0.46	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.89	$	2.35		0.46	%

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

Portfolio of investments—August 31, 2018 Wells Fargo Adjustable Rate Government Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities: 95.53%
FDIC Series 2010-S2 Class 3A (1 Month LIBOR +0.70%) 144A±		2.78	%		12-29-2045	$	365,448	$	366,240
FHLMC (11th District Cost of Funds +1.25%) ±		2.00			5-1-2019		1,326		1,321
FHLMC (10 Year Treasury Constant Maturity -0.85%) ±		2.01			3-15-2024		384,036		381,291
FHLMC (11th District Cost of Funds +1.25%) ±		2.06			1-1-2030		2,914		2,866
FHLMC (11th District Cost of Funds +1.25%) ±		2.06			1-1-2030		2,421		2,396
FHLMC (11th District Cost of Funds +1.25%) ±		2.06			7-1-2030		145,528		143,553
FHLMC (11th District Cost of Funds +1.25%) ±		2.13			9-1-2018		11		11
FHLMC (11th District Cost of Funds +1.25%) ±		2.15			2-1-2019		841		838
FHLMC (11th District Cost of Funds +1.25%) ±		2.15			2-1-2035		178,420		176,207
FHLMC (11th District Cost of Funds +1.44%) ±		2.17			6-1-2020		6,579		6,548
FHLMC (11th District Cost of Funds +1.36%) ±		2.17			10-1-2030		4,900		4,877
FHLMC (11th District Cost of Funds +1.76%) ±		2.51			1-1-2022		3,847		3,840
FHLMC (1 Year Treasury Constant Maturity +0.71%) ±		2.61			4-1-2030		56,102		56,309
FHLMC (11th District Cost of Funds +1.88%) ±		2.64			6-1-2019		12,737		12,706
FHLMC (11th District Cost of Funds +1.25%) ±		2.69			11-1-2030		138,763		139,424
FHLMC (11th District Cost of Funds +1.86%) ±		2.72			3-1-2025		97,867		97,827
FHLMC (11th District Cost of Funds +2.05%) ±		2.81			6-1-2029		105,676		106,635
FHLMC (11th District Cost of Funds +2.25%) ±		3.00			8-1-2019		4,820		4,820
FHLMC (11th District Cost of Funds +1.53%) ±		3.03			6-1-2019		1,467		1,467
FHLMC (12 Month Treasury Average +1.90%) ±		3.12			5-1-2028		214,530		221,434
FHLMC (3 Year Treasury Constant Maturity +2.27%) ±		3.19			4-1-2032		86,398		87,768
FHLMC (11th District Cost of Funds +2.39%) ±		3.20			6-1-2021		38,751		38,906
FHLMC (1 Year Treasury Constant Maturity +1.99%) ±		3.24			11-1-2034		295,921		309,915
FHLMC (1 Year Treasury Constant Maturity +2.01%) ±		3.26			6-1-2020		250		249
FHLMC (1 Year Treasury Constant Maturity +2.03%) ±		3.36			3-1-2025		46,463		47,871
FHLMC (1 Year Treasury Constant Maturity +1.88%) ±		3.37			5-1-2035		301,090		314,214
FHLMC (1 Year Treasury Constant Maturity +2.02%) ±		3.39			5-1-2020		109		109
FHLMC (1 Year Treasury Constant Maturity +2.17%) ±		3.45			8-1-2034		876,937		922,672
FHLMC (1 Year Treasury Constant Maturity +2.22%) ±		3.46			10-1-2033		297,077		313,905
FHLMC (1 Year Treasury Constant Maturity +2.22%) ±		3.47			10-1-2033		1,144,278		1,206,303
FHLMC (1 Year Treasury Constant Maturity +2.22%) ±		3.47			10-1-2033		692,345		731,557
FHLMC (12 Month LIBOR +1.73%) ±		3.48			1-1-2035		414,413		436,476
FHLMC (1 Year Treasury Constant Maturity +2.25%) ±		3.48			9-1-2033		178,091		187,921
FHLMC (1 Year Treasury Constant Maturity +2.22%) ±		3.48			12-1-2033		496,930		518,044
FHLMC (12 Month LIBOR +1.74%) ±		3.49			12-1-2036		381,669		399,965
FHLMC (1 Year Treasury Constant Maturity +2.25%) ±		3.50			10-1-2034		1,425,000		1,508,425
FHLMC (1 Year Treasury Constant Maturity +2.27%) ±		3.52			5-1-2025		66,177		66,964
FHLMC (1 Year Treasury Constant Maturity +2.27%) ±		3.52			11-1-2029		40,245		40,779
FHLMC (12 Month LIBOR +1.78%) ±		3.53			11-1-2035		398,029		419,111
FHLMC (1 Year Treasury Constant Maturity +2.25%) ±		3.53			5-1-2034		84,192		89,047
FHLMC (1 Year Treasury Constant Maturity +2.24%) ±		3.55			1-1-2036		1,355,502		1,428,683
FHLMC (3 Year Treasury Constant Maturity +2.44%) ±		3.58			5-1-2031		112,648		117,656
FHLMC (1 Year Treasury Constant Maturity +2.25%) ±		3.58			1-1-2037		144,168		151,636
FHLMC (1 Year Treasury Constant Maturity +2.28%) ±		3.59			1-1-2035		343,617		360,910
FHLMC (1 Year Treasury Constant Maturity +2.25%) ±		3.59			4-1-2036		495,040		519,572
FHLMC (1 Year Treasury Constant Maturity +2.20%) ±		3.60			12-1-2034		426,784		447,676
FHLMC (1 Year Treasury Constant Maturity +2.05%) ±		3.61			1-1-2030		16,846		17,345
FHLMC (1 Year Treasury Constant Maturity +2.29%) ±		3.61			11-1-2029		155,452		159,711
FHLMC (1 Year Treasury Constant Maturity +2.02%) ±		3.62			5-1-2020		48		47
FHLMC (1 Year Treasury Constant Maturity +2.18%) ±		3.62			6-1-2036		942,713		991,432

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

12 Wells Fargo Adjustable Rate Government Fund Portfolio of investments—August 31, 2018

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FHLMC (1 Year Treasury Constant Maturity +2.25%) ±		3.64	%		11-1-2022	$	80,789	$	82,639
FHLMC (2 Year Treasury Constant Maturity +2.44%) ±		3.64			8-1-2029		100,825		103,403
FHLMC (12 Month LIBOR +1.75%) ±		3.65			2-1-2037		213,074		223,925
FHLMC (1 Year Treasury Constant Maturity +2.22%) ±		3.65			1-1-2033		496,193		518,025
FHLMC (1 Year Treasury Constant Maturity +2.30%) ±		3.66			11-1-2035		1,101,631		1,164,135
FHLMC (11th District Cost of Funds +2.26%) ±		3.66			12-1-2025		20,910		21,073
FHLMC (12 Month LIBOR +1.67%) ±		3.67			8-1-2035		143,536		146,213
FHLMC (12 Month Treasury Average +2.37%) ±		3.67			6-1-2028		93,036		94,975
FHLMC (1 Year Treasury Constant Maturity +2.27%) ±		3.69			2-1-2034		1,432,989		1,512,787
FHLMC (1 Year Treasury Constant Maturity +2.23%) ±		3.69			7-1-2034		136,609		144,094
FHLMC (1 Year Treasury Constant Maturity +2.32%) ±		3.69			7-1-2031		175,921		185,422
FHLMC (1 Year Treasury Constant Maturity +2.41%) ±		3.69			12-1-2032		279,147		292,293
FHLMC (1 Year Treasury Constant Maturity +2.29%) ±		3.70			11-1-2027		462,586		483,685
FHLMC (1 Year Treasury Constant Maturity +2.25%) ±		3.70			2-1-2036		891,554		935,807
FHLMC (1 Year Treasury Constant Maturity +2.05%) ±		3.70			8-1-2033		1,413,955		1,466,962
FHLMC (12 Month LIBOR +1.76%) ±		3.70			5-1-2037		1,181,184		1,237,368
FHLMC (5 Year Treasury Constant Maturity +2.13%) ±		3.71			8-1-2029		9,062		9,002
FHLMC (1 Year Treasury Constant Maturity +2.23%) ±		3.71			2-1-2034		949,244		989,129
FHLMC (12 Month LIBOR +1.98%) ±		3.73			11-1-2032		114,608		116,678
FHLMC (1 Year Treasury Constant Maturity +2.23%) ±		3.73			2-1-2034		480,613		504,331
FHLMC (1 Year Treasury Constant Maturity +2.33%) ±		3.73			9-1-2033		773,567		816,330
FHLMC (1 Year Treasury Constant Maturity +2.25%) ±		3.75			2-1-2034		571,153		604,106
FHLMC (1 Year Treasury Constant Maturity +2.16%) ±		3.76			6-1-2033		462,537		482,262
FHLMC (1 Year Treasury Constant Maturity +2.10%) ±		3.77			10-1-2037		1,183,138		1,239,838
FHLMC (1 Year Treasury Constant Maturity +2.21%) ±		3.77			1-1-2037		1,038,254		1,092,490
FHLMC (1 Year Treasury Constant Maturity +2.36%) ±		3.77			2-1-2035		970,621		1,028,364
FHLMC (12 Month LIBOR +1.87%) ±		3.78			9-1-2036		633,925		667,944
FHLMC (1 Year Treasury Constant Maturity +2.25%) ±		3.78			2-1-2036		1,031,272		1,083,714
FHLMC (1 Year Treasury Constant Maturity +2.22%) ±		3.79			7-1-2036		303,431		324,774
FHLMC (1 Year Treasury Constant Maturity +2.28%) ±		3.79			10-1-2036		396,346		417,374
FHLMC (1 Year Treasury Constant Maturity +2.28%) ±		3.79			2-1-2036		733,581		773,746
FHLMC (1 Year Treasury Constant Maturity +2.24%) ±		3.79			10-1-2036		410,632		432,075
FHLMC (1 Year Treasury Constant Maturity +2.55%) ±		3.80			9-1-2029		126,869		128,307
FHLMC (1 Year Treasury Constant Maturity +2.26%) ±		3.81			9-1-2038		621,177		644,798
FHLMC (5 Year Treasury Constant Maturity +2.44%) ±		3.82			8-1-2027		34,943		34,966
FHLMC (1 Year Treasury Constant Maturity +2.44%) ±		3.82			2-1-2029		2,226		2,217
FHLMC (1 Year Treasury Constant Maturity +2.48%) ±		3.82			6-1-2030		31,567		32,073
FHLMC (1 Year Treasury Constant Maturity +2.40%) ±		3.82			9-1-2031		67,074	��	67,949
FHLMC (1 Year Treasury Constant Maturity +1.55%) ±		3.82			7-1-2030		3,794		3,781
FHLMC (1 Year Treasury Constant Maturity +2.32%) ±		3.82			6-1-2035		993,565		1,049,216
FHLMC (1 Year Treasury Constant Maturity +2.25%) ±		3.82			8-1-2035		430,528		452,696
FHLMC (12 Month LIBOR +1.81%) ±		3.82			5-1-2039		788,100		826,203
FHLMC (1 Year Treasury Constant Maturity +2.25%) ±		3.83			11-1-2036		903,793		951,198
FHLMC (6 Month LIBOR +1.66%) ±		3.84			6-1-2037		406,629		419,212
FHLMC (1 Year Treasury Constant Maturity +2.21%) ±		3.84			11-1-2036		989,761		1,041,770
FHLMC (12 Month Treasury Average +2.46%) ±		3.85			10-1-2029		101,528		103,434
FHLMC (1 Year Treasury Constant Maturity +2.36%) ±		3.85			1-1-2028		17,518		18,235
FHLMC (1 Year Treasury Constant Maturity +2.02%) ±		3.86			12-1-2035		539,586		562,854
FHLMC (1 Year Treasury Constant Maturity +2.23%) ±		3.87			3-1-2034		695,000		725,931
FHLMC (12 Month LIBOR +1.93%) ±		3.87			4-1-2035		940,293		992,824

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

Portfolio of investments—August 31, 2018 Wells Fargo Adjustable Rate Government Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FHLMC (1 Year Treasury Constant Maturity +2.24%) ±		3.87	%		3-1-2027	$	91,475	$	92,789
FHLMC (6 Month LIBOR +1.70%) ±		3.87			1-1-2037		1,092,781		1,135,782
FHLMC (1 Year Treasury Constant Maturity +2.24%) ±		3.88			4-1-2037		519,246		546,273
FHLMC (1 Year Treasury Constant Maturity +2.32%) ±		3.88			10-1-2033		1,712,992		1,798,299
FHLMC (6 Month LIBOR +1.42%) ±		3.88			2-1-2037		6,160		6,338
FHLMC (1 Year Treasury Constant Maturity +2.36%) ±		3.89			4-1-2034		434,353		450,841
FHLMC (12 Month LIBOR +1.84%) ±		3.89			4-1-2035		1,352,416		1,425,072
FHLMC (3 Year Treasury Constant Maturity +2.44%) ±		3.89			5-1-2032		211,675		209,254
FHLMC (1 Year Treasury Constant Maturity +2.30%) ±		3.90			3-1-2037		321,212		337,302
FHLMC (1 Year Treasury Constant Maturity +2.35%) ±		3.90			6-1-2035		489,904		518,172
FHLMC (1 Year Treasury Constant Maturity +2.23%) ±		3.91			3-1-2034		766,536		799,950
FHLMC (1 Year Treasury Constant Maturity +2.31%) ±		3.91			7-1-2038		606,867		640,356
FHLMC (1 Year Treasury Constant Maturity +2.37%) ±		3.92			1-1-2037		1,558,443		1,646,660
FHLMC (1 Year Treasury Constant Maturity +2.24%) ±		3.94			2-1-2036		1,003,122		1,056,496
FHLMC (1 Year Treasury Constant Maturity +2.24%) ±		3.94			7-1-2037		499,132		525,973
FHLMC (1 Year Treasury Constant Maturity +2.25%) ±		3.94			4-1-2038		991,222		1,042,984
FHLMC (1 Year Treasury Constant Maturity +2.28%) ±		3.94			7-1-2031		968,600		996,950
FHLMC (1 Year Treasury Constant Maturity +2.30%) ±		3.95			1-1-2036		543,383		573,235
FHLMC (1 Year Treasury Constant Maturity +2.23%) ±		3.95			5-1-2038		851,926		893,737
FHLMC (1 Year Treasury Constant Maturity +2.25%) ±		3.96			8-1-2035		1,680,952		1,771,917
FHLMC (1 Year Treasury Constant Maturity +2.18%) ±		3.96			4-1-2023		176,189		176,778
FHLMC (12 Month LIBOR +1.99%) ±		3.97			7-1-2036		707,251		741,017
FHLMC (1 Year Treasury Constant Maturity +2.23%) ±		3.97			1-1-2034		745,025		780,318
FHLMC (1 Year Treasury Constant Maturity +2.26%) ±		3.98			5-1-2034		1,359,071		1,427,159
FHLMC (1 Year Treasury Constant Maturity +2.23%) ±		3.98			9-1-2035		1,356,575		1,427,290
FHLMC (1 Year Treasury Constant Maturity +2.24%) ±		3.98			8-1-2027		5,226		5,268
FHLMC (US Treasury H15 Treasury Bill 6 Month Auction High Discount +1.75%) ±		3.98			1-1-2023		21,883		22,810
FHLMC (12 Month LIBOR +1.87%) ±		3.99			4-1-2037		529,433		556,216
FHLMC (1 Year Treasury Constant Maturity +2.23%) ±		3.99			5-1-2038		1,100,975		1,155,622
FHLMC (1 Year Treasury Constant Maturity +2.25%) ±		3.99			6-1-2035		110,630		116,598
FHLMC (1 Year Treasury Constant Maturity +2.25%) ±		3.99			2-1-2036		613,117		640,657
FHLMC (1 Year Treasury Constant Maturity +2.43%) ±		4.00			10-1-2030		1,508,195		1,578,063
FHLMC (1 Year Treasury Constant Maturity +2.13%) ±		4.01			7-1-2019		306		304
FHLMC (1 Year Treasury Constant Maturity +2.26%) ±		4.01			2-1-2036		517,090		544,747
FHLMC (1 Year Treasury Constant Maturity +2.36%) ±		4.01			1-1-2028		2,406		2,521
FHLMC (1 Year Treasury Constant Maturity +2.36%) ±		4.01			2-1-2031		528,663		553,076
FHLMC (1 Year Treasury Constant Maturity +2.25%) ±		4.01			10-1-2034		871,478		917,783
FHLMC (11th District Cost of Funds +2.57%) ±		4.02			12-1-2025		345,471		360,348
FHLMC (1 Year Treasury Constant Maturity +2.38%) ±		4.03			6-1-2035		1,418,081		1,476,131
FHLMC (1 Year Treasury Constant Maturity +2.31%) ±		4.03			9-1-2029		637,792		666,067
FHLMC (1 Year Treasury Constant Maturity +2.35%) ±		4.03			2-1-2036		107,687		113,931
FHLMC (1 Year Treasury Constant Maturity +2.28%) ±		4.03			4-1-2037		1,369,750		1,444,889
FHLMC (1 Year Treasury Constant Maturity +2.34%) ±		4.03			9-1-2032		1,502,824		1,580,156
FHLMC (6 Month LIBOR +2.38%) ±		4.04			2-1-2024		16,222		16,270
FHLMC (1 Year Treasury Constant Maturity +2.32%) ±		4.04			9-1-2030		181,163		190,349
FHLMC (1 Year Treasury Constant Maturity +2.37%) ±		4.05			7-1-2027		503,779		506,588
FHLMC (12 Month LIBOR +1.91%) ±		4.05			3-1-2032		807,103		847,465
FHLMC (1 Year Treasury Constant Maturity +2.17%) ±		4.05			5-1-2037		177,278		185,951
FHLMC (1 Year Treasury Constant Maturity +2.52%) ±		4.05			11-1-2029		103,124		106,114
FHLMC (12 Month LIBOR +1.75%) ±		4.05			4-1-2035		217,624		228,872

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

14 Wells Fargo Adjustable Rate Government Fund Portfolio of investments—August 31, 2018

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FHLMC (1 Year Treasury Constant Maturity +2.29%) ±		4.06	%		9-1-2033	$	679,470	$	714,898
FHLMC (1 Year Treasury Constant Maturity +2.23%) ±		4.08			4-1-2034		313,120		326,885
FHLMC (12 Month LIBOR +1.90%) ±		4.10			4-1-2037		564,989		593,666
FHLMC (1 Year Treasury Constant Maturity +2.48%) ±		4.10			6-1-2035		1,521,649		1,617,871
FHLMC (1 Year Treasury Constant Maturity +2.23%) ±		4.11			4-1-2034		335,512		351,524
FHLMC (1 Year Treasury Constant Maturity +2.44%) ±		4.12			11-1-2029		620,506		645,190
FHLMC (1 Year Treasury Constant Maturity +2.25%) ±		4.13			5-1-2034		178,298		186,349
FHLMC (1 Year Treasury Constant Maturity +2.43%) ±		4.13			8-1-2029		77,873		78,895
FHLMC (1 Year Treasury Constant Maturity +2.48%) ±		4.15			10-1-2024		80,606		83,367
FHLMC (6 Month LIBOR +2.12%) ±		4.17			5-1-2037		62,076		65,125
FHLMC (1 Year Treasury Constant Maturity +2.23%) ±		4.20			5-1-2034		1,149,050		1,203,827
FHLMC (1 Year Treasury Constant Maturity +2.34%) ±		4.21			7-1-2034		560,240		582,635
FHLMC (1 Year Treasury Constant Maturity +2.66%) ±		4.21			5-1-2028		215,176		222,485
FHLMC (1 Year Treasury Constant Maturity +2.61%) ±		4.21			9-1-2030		101,705		103,394
FHLMC (12 Month LIBOR +1.77%) ±		4.21			10-1-2036		505,448		530,970
FHLMC (1 Year Treasury Constant Maturity +2.48%) ±		4.23			2-1-2030		30,164		30,489
FHLMC (1 Year Treasury Constant Maturity +2.23%) ±		4.23			5-1-2032		42,588		44,052
FHLMC (1 Year Treasury Constant Maturity +2.25%) ±		4.23			9-1-2038		191,104		195,383
FHLMC (6 Month LIBOR +1.73%) ±		4.23			6-1-2024		6,871		6,881
FHLMC (1 Year Treasury Constant Maturity +2.36%) ±		4.23			4-1-2038		1,419,488		1,491,937
FHLMC (1 Year Treasury Constant Maturity +2.25%) ±		4.25			3-1-2036		550,207		575,520
FHLMC (FHLMC National Average Mortgage Contract +3.27%) ±		4.27			2-1-2021		8,898		8,943
FHLMC (12 Month LIBOR +1.75%) ±		4.28			5-1-2033		189,927		200,202
FHLMC (12 Month LIBOR +1.78%) ±		4.31			10-1-2035		1,070,182		1,127,230
FHLMC (1 Year Treasury Constant Maturity +2.48%) ±		4.31			6-1-2030		96,138		97,793
FHLMC (1 Year Treasury Constant Maturity +2.44%) ±		4.32			4-1-2029		93,334		94,192
FHLMC (Federal Cost of Funds +2.72%) ±		4.32			4-1-2023		10,867		10,972
FHLMC (1 Year Treasury Constant Maturity +2.40%) ±		4.33			7-1-2029		54,515		56,637
FHLMC (1 Year Treasury Constant Maturity +2.31%) ±		4.36			6-1-2035		520,689		544,769
FHLMC (3 Year Treasury Constant Maturity +2.67%) ±		4.36			6-1-2035		900,808		944,212
FHLMC (1 Year Treasury Constant Maturity +2.25%) ±		4.37			11-1-2035		926,630		974,530
FHLMC (6 Month LIBOR +2.08%) ±		4.38			6-1-2026		816,116		837,930
FHLMC (12 Month LIBOR +1.87%) ±		4.39			5-1-2035		155,024		163,837
FHLMC (1 Year Treasury Constant Maturity +2.48%) ±		4.40			6-1-2030		264,000		274,675
FHLMC (12 Month LIBOR +1.75%) ±		4.41			6-1-2033		672,800		705,031
FHLMC (US Treasury H15 Treasury Bill 6 Month Auction High Discount +1.94%) ±		4.44			7-1-2024		30,805		30,572
FHLMC (1 Year Treasury Constant Maturity +2.35%) ±		4.44			7-1-2038		1,085,145		1,140,408
FHLMC (1 Year Treasury Constant Maturity +2.47%) ±		4.47			7-1-2034		808,504		847,668
FHLMC (1 Year Treasury Constant Maturity +2.22%) ±		4.47			8-1-2033		230,559		242,454
FHLMC (1 Year Treasury Constant Maturity +2.48%) ±		4.48			10-1-2025		27,921		27,956
FHLMC (1 Year Treasury Constant Maturity +2.60%) ±		4.48			6-1-2032		139,424		140,897
FHLMC (1 Year Treasury Constant Maturity +2.23%) ±		4.48			11-1-2026		69,010		71,043
FHLMC (1 Year Treasury Constant Maturity +2.48%) ±		4.51			10-1-2025		61,534		62,456
FHLMC (12 Month LIBOR +1.77%) ±		4.51			6-1-2035		942,644		994,439
FHLMC (1 Year Treasury Constant Maturity +2.43%) ±		4.63			6-1-2025		56,734		57,396
FHLMC		5.00			10-1-2022		8,029		8,199
FHLMC (1 Year Treasury Constant Maturity +2.32%) ±		5.50			8-1-2024		217,575		217,729
FHLMC (6 Month LIBOR +3.30%) ±		5.59			11-1-2026		93,355		96,150
FHLMC Series 0020 Class F ±±		2.61			7-1-2029		11,544		11,801
FHLMC Series 1671 Class QA (11th District Cost of Funds +0.95%) ±		1.88			2-15-2024		590,190		600,600

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

Portfolio of investments—August 31, 2018 Wells Fargo Adjustable Rate Government Fund 15

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FHLMC Series 1686 Class FE (11th District Cost of Funds +1.10%) ±		2.03	%		2-15-2024	$	17,662	$	18,001
FHLMC Series 1730 Class FA (10 Year Treasury Constant Maturity -0.60%) ±		2.26			5-15-2024		121,237		121,056
FHLMC Series 2315 Class FW (1 Month LIBOR +0.55%) ±		2.61			4-15-2027		80,245		81,236
FHLMC Series 2391 Class EF (1 Month LIBOR +0.50%) ±		2.56			6-15-2031		73,140		73,537
FHLMC Series 2454 Class SL (1 Month LIBOR +8.00%) ±(c)		5.94			3-15-2032		139,888		23,710
FHLMC Series 2461 Class FI (1 Month LIBOR +0.50%) ±		2.56			4-15-2028		102,535		102,932
FHLMC Series 2464 Class FE (1 Month LIBOR +1.00%) ±		3.06			3-15-2032		91,175		93,827
FHLMC Series 2466 Class FV (1 Month LIBOR +0.55%) ±		2.61			3-15-2032		183,163		185,911
FHLMC Series 2538 Class F (1 Month LIBOR +0.60%) ±		2.66			12-15-2032		396,063		401,783
FHLMC Series 3335 Class FT (1 Month LIBOR +0.15%) ±		2.21			8-15-2019		328		328
FHLMC Series 3436 Class A ±±		3.42			11-15-2036		775,406		819,024
FHLMC Series T-15 Class A6 (1 Month LIBOR +0.40%) ±		2.46			11-25-2028		514,557		512,483
FHLMC Series T-16 Class A (1 Month LIBOR +0.35%) ±		2.41			6-25-2029		1,352,778		1,321,789
FHLMC Series T-20 Class A7 (1 Month LIBOR +0.15%) ±		2.36			12-25-2029		2,522,132		2,479,642
FHLMC Series T-21 Class A (1 Month LIBOR +0.18%) ±		2.42			10-25-2029		1,169,955		1,161,946
FHLMC Series T-23 Class A (1 Month LIBOR +0.28%) ±		2.34			5-25-2030		1,518,255		1,517,198
FHLMC Series T-27 Class A (1 Month LIBOR +0.30%) ±		2.36			10-25-2030		1,009,412		1,014,721
FHLMC Series T-30 Class A7 (1 Month LIBOR +0.12%) ±		2.42			12-25-2030		1,087,685		1,054,217
FHLMC Series T-35 Class A (1 Month LIBOR +0.28%) ±		2.34			9-25-2031		2,782,698		2,754,292
FHLMC Series T-48 Class 2A ±±		3.96			7-25-2033		2,158,501		2,160,622
FHLMC Series T-54 Class 4A ±±		3.75			2-25-2043		1,502,518		1,490,955
FHLMC Series T-55 Class 1A1		6.50			3-25-2043		61,965		68,526
FHLMC Series T-56 Class 3AF (1 Month LIBOR +1.00%) ±		3.06			5-25-2043		969,316		991,394
FHLMC Series T-62 Class 1A1 (12 Month Treasury Average +1.20%) ±		2.95			10-25-2044		3,536,189		3,524,283
FHLMC Series T-63 Class 1A1 (12 Month Treasury Average +1.20%) ±		2.76			2-25-2045		3,187,097		3,184,617
FHLMC Series T-66 Class 2A1 ±±		3.88			1-25-2036		2,038,368		2,044,140
FHLMC Series T-67 Class 1A1C ±±		3.67			3-25-2036		4,710,012		4,785,682
FHLMC Series T-67 Class 2A1C ±±		3.43			3-25-2036		3,756,343		3,751,716
FHLMC Series T-75 Class A1 (1 Month LIBOR +0.04%) ±		2.10			12-25-2036		984,275		982,276
FNMA (11th District Cost of Funds +1.25%) ±		2.06			4-1-2019		85		85
FNMA (11th District Cost of Funds +1.25%) ±		2.06			4-1-2021		23,046		22,937
FNMA (11th District Cost of Funds +1.25%) ±		2.06			3-1-2033		121,480		121,510
FNMA (11th District Cost of Funds +1.25%) ±		2.08			11-1-2024		2,562		2,556
FNMA (11th District Cost of Funds +1.25%) ±		2.10			11-1-2020		122,673		121,926
FNMA (11th District Cost of Funds +1.25%) ±		2.13			3-1-2021		84		84
FNMA (11th District Cost of Funds +1.25%) ±		2.14			4-1-2042		1,975,713		1,966,212
FNMA (11th District Cost of Funds +1.25%) ±		2.14			10-1-2044		974,965		970,035
FNMA (11th District Cost of Funds +1.25%) ±		2.15			11-1-2023		25,262		25,060
FNMA (11th District Cost of Funds +1.26%) ±		2.16			1-1-2035		844,301		850,141
FNMA (11th District Cost of Funds +1.50%) ±		2.25			5-1-2019		14		14
FNMA (11th District Cost of Funds +1.25%) ±		2.26			1-1-2038		110,533		110,546
FNMA (11th District Cost of Funds +1.45%) ±		2.30			4-1-2024		1,687,253		1,688,665
FNMA (11th District Cost of Funds +1.25%) ±		2.33			9-1-2037		2,097,872		2,089,010
FNMA (11th District Cost of Funds +1.63%) ±		2.44			5-1-2028		19,793		19,763
FNMA (3 Year Treasury Constant Maturity +1.21%) ±		2.45			3-1-2030		17,404		17,372
FNMA (11th District Cost of Funds +1.50%) ±		2.50			1-1-2019		1,630		1,625
FNMA (11th District Cost of Funds +1.78%) ±		2.50			1-1-2036		212,236		213,500
FNMA (11th District Cost of Funds +1.82%) ±		2.51			5-1-2028		45,401		45,560
FNMA (11th District Cost of Funds +1.86%) ±		2.61			9-1-2019		2,401		2,398
FNMA (1 Year Treasury Constant Maturity +1.25%) ±		2.65			1-1-2021		802		811

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

16 Wells Fargo Adjustable Rate Government Fund Portfolio of investments—August 31, 2018

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA (1 Year Treasury Constant Maturity +1.25%) ±		2.65	%		1-1-2021	$	1,274	$	1,287
FNMA (11th District Cost of Funds +1.78%) ±		2.66			11-1-2022		22,513		22,512
FNMA (11th District Cost of Funds +1.83%) ±		2.67			1-1-2036		62,756		63,034
FNMA (11th District Cost of Funds +1.78%) ±		2.68			3-1-2033		268,165		268,809
FNMA (11th District Cost of Funds +1.91%) ±		2.69			9-1-2030		242,627		246,261
FNMA (11th District Cost of Funds +1.87%) ±		2.75			10-1-2027		445,778		450,474
FNMA (11th District Cost of Funds +1.87%) ±		2.75			10-1-2024		911		911
FNMA (6 Month LIBOR +1.00%) ±		2.75			12-1-2020		5,968		5,949
FNMA (11th District Cost of Funds +1.25%) ±		2.76			10-1-2018		113		113
FNMA (11th District Cost of Funds +2.02%) ±		2.77			11-1-2024		29,799		30,012
FNMA (11th District Cost of Funds +1.25%) ±		2.79			7-1-2020		464,334		463,991
FNMA (11th District Cost of Funds +1.25%) ±		2.84			3-1-2019		27,825		27,785
FNMA (11th District Cost of Funds +1.97%) ±		2.84			9-1-2021		7,251		7,243
FNMA (11th District Cost of Funds +1.97%) ±		2.85			1-1-2021		46,344		46,315
FNMA (11th District Cost of Funds +2.11%) ±		2.94			4-1-2020		953,753		951,602
FNMA (6 Month LIBOR +1.08%) ±		2.95			9-1-2032		53,823		53,750
FNMA (11th District Cost of Funds +1.70%) ±		2.99			4-1-2030		1,170		1,171
FNMA (3 Year Treasury Constant Maturity +2.14%) ±		3.02			10-1-2025		6,289		6,251
FNMA (11th District Cost of Funds +1.21%) ±		3.05			10-1-2034		121,526		122,386
FNMA (12 Month Treasury Average +1.40%) ±		3.05			12-1-2030		89,232		88,265
FNMA (1 Year Treasury Constant Maturity +1.74%) ±		3.12			1-1-2035		42,670		44,105
FNMA (6 Month LIBOR +1.38%) ±		3.13			8-1-2031		128,640		130,875
FNMA (11th District Cost of Funds +1.25%) ±		3.15			4-1-2034		1,289,848		1,313,929
FNMA (1 Year Treasury Constant Maturity +1.82%) ±		3.16			4-1-2038		389,511		406,159
FNMA (1 Year Treasury Constant Maturity +1.70%) ±		3.17			2-1-2033		275,593		285,094
FNMA (1 Month LIBOR +1.17%) ±		3.17			5-1-2029		44,074		45,585
FNMA (6 Month LIBOR +1.42%) ±		3.18			9-1-2031		148,088		151,809
FNMA (1 Year Treasury Constant Maturity +1.50%) ±		3.18			8-1-2030		1,140,095		1,165,934
FNMA (3 Year Treasury Constant Maturity +2.47%) ±		3.22			6-1-2024		16,913		16,871
FNMA (6 Month LIBOR +1.00%) ±		3.29			6-1-2021		17,952		18,367
FNMA (1 Year Treasury Constant Maturity +2.13%) ±		3.31			10-1-2025		89,449		90,976
FNMA (1 Year Treasury Constant Maturity +2.08%) ±		3.34			11-1-2035		667,962		701,846
FNMA (Federal Cost of Funds +2.00%) ±		3.35			2-1-2029		2,591		2,590
FNMA (1 Year Treasury Constant Maturity +1.58%) ±		3.36			3-1-2034		339,547		355,352
FNMA (1 Year Treasury Constant Maturity +2.13%) ±		3.38			10-1-2035		162,565		171,561
FNMA (6 Month LIBOR +1.18%) ±		3.40			8-1-2033		174,141		180,711
FNMA (12 Month LIBOR +1.65%) ±		3.40			9-1-2037		577,710		600,754
FNMA (1 Year Treasury Constant Maturity +2.28%) ±		3.40			9-1-2026		33,560		34,022
FNMA (1 Year Treasury Constant Maturity +2.09%) ±		3.40			1-1-2036		176,190		185,379
FNMA (12 Month LIBOR +1.67%) ±		3.42			9-1-2034		924,395		972,806
FNMA (1 Year Treasury Constant Maturity +2.17%) ±		3.42			12-1-2039		196,364		202,655
FNMA (1 Year Treasury Constant Maturity +2.18%) ±		3.44			9-1-2035		1,304,963		1,373,539
FNMA (Federal Cost of Funds +2.00%) ±		3.44			1-1-2029		214		215
FNMA (US Treasury H15 Treasury Bill 6 Month Auction High Discount +1.75%) ±		3.45			7-1-2020		518		519
FNMA (12 Month LIBOR +1.65%) ±		3.46			12-1-2033		1,050,271		1,100,202
FNMA (1 Year Treasury Constant Maturity +2.22%) ±		3.47			10-1-2034		429,199		453,658
FNMA (1 Year Treasury Constant Maturity +2.22%) ±		3.47			6-1-2026		30,768		31,562
FNMA (Federal Cost of Funds +2.00%) ±		3.49			8-1-2029		40,984		42,989
FNMA (1 Year Treasury Constant Maturity +2.13%) ±		3.50			1-1-2027		11,590		11,638
FNMA (1 Year Treasury Constant Maturity +2.29%) ±		3.50			12-1-2030		67,458		68,690

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

Portfolio of investments—August 31, 2018 Wells Fargo Adjustable Rate Government Fund 17

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA (1 Year Treasury Constant Maturity +2.24%) ±		3.50	%		2-1-2033	$	141,161	$	144,298
FNMA (1 Year Treasury Constant Maturity +2.33%) ±		3.51			11-1-2024		65,540		67,435
FNMA (1 Year Treasury Constant Maturity +1.90%) ±		3.52			7-1-2038		834,660		868,106
FNMA (1 Year Treasury Constant Maturity +1.52%) ±		3.53			8-1-2033		1,095,408		1,128,751
FNMA (12 Month LIBOR +1.65%) ±		3.54			9-1-2036		699,893		726,144
FNMA (12 Month LIBOR +1.75%) ±		3.54			1-1-2035		663,224		698,400
FNMA (1 Year Treasury Constant Maturity +1.67%) ±		3.54			4-1-2033		182,870		190,176
FNMA (12 Month Treasury Average +1.88%) ±		3.54			11-1-2035		34,110		34,901
FNMA (12 Month LIBOR +1.53%) ±		3.55			9-1-2035		1,215,089		1,266,984
FNMA (12 Month Treasury Average +1.89%) ±		3.55			11-1-2035		862,624		899,095
FNMA (1 Year Treasury Constant Maturity +2.18%) ±		3.55			12-1-2024		24,079		24,181
FNMA (1 Year Treasury Constant Maturity +2.17%) ±		3.56			12-1-2034		912,765		960,121
FNMA (1 Year Treasury Constant Maturity +2.32%) ±		3.57			5-1-2025		33,392		33,540
FNMA (12 Month Treasury Average +1.91%) ±		3.57			1-1-2036		2,148,943		2,202,514
FNMA (12 Month Treasury Average +1.92%) ±		3.58			6-1-2035		620,912		636,508
FNMA (12 Month LIBOR +1.83%) ±		3.58			1-1-2033		828,458		872,112
FNMA (12 Month Treasury Average +1.91%) ±		3.58			11-1-2035		146,412		150,441
FNMA (5 Year Treasury Constant Maturity +1.90%) ±		3.59			9-1-2031		211,780		215,867
FNMA (6 Month LIBOR +1.45%) ±		3.59			10-1-2037		790,661		814,266
FNMA (12 Month Treasury Average +1.99%) ±		3.59			7-1-2035		1,055,922		1,085,298
FNMA (1 Year Treasury Constant Maturity +2.22%) ±		3.60			8-1-2031		108,283		110,044
FNMA (1 Year Treasury Constant Maturity +2.31%) ±		3.60			12-1-2034		727,816		770,680
FNMA (12 Month Treasury Average +1.95%) ±		3.61			7-1-2035		705,462		723,843
FNMA (1 Year Treasury Constant Maturity +2.20%) ±		3.61			2-1-2035		199,636		210,124
FNMA (12 Month Treasury Average +2.48%) ±		3.62			6-1-2040		774,873		799,075
FNMA (1 Year Treasury Constant Maturity +2.25%) ±		3.62			6-1-2027		783		800
FNMA (1 Year Treasury Constant Maturity +2.37%) ±		3.62			7-1-2027		21,685		21,807
FNMA (1 Year Treasury Constant Maturity +2.18%) ±		3.62			11-1-2038		526,428		552,062
FNMA (Federal Cost of Funds +1.75%) ±		3.63			1-1-2029		440		441
FNMA (6 Month LIBOR +1.55%) ±		3.63			3-1-2034		269,267		278,418
FNMA (12 Month Treasury Average +1.97%) ±		3.63			12-1-2035		2,953,886		3,034,240
FNMA (12 Month Treasury Average +1.97%) ±		3.63			11-1-2035		999,263		1,039,745
FNMA (12 Month LIBOR +1.82%) ±		3.64			12-1-2046		633,848		670,484
FNMA (1 Year Treasury Constant Maturity +2.02%) ±		3.64			11-1-2027		23,712		23,809
FNMA (1 Year Treasury Constant Maturity +2.23%) ±		3.64			5-1-2035		1,153,893		1,214,091
FNMA (12 Month Treasury Average +1.98%) ±		3.64			10-1-2035		526,896		541,640
FNMA (6 Month LIBOR +1.15%) ±		3.65			8-1-2032		222,957		223,266
FNMA (1 Year Treasury Constant Maturity +2.06%) ±		3.65			12-1-2033		733,798		756,749
FNMA (12 Month Treasury Average +1.99%) ±		3.66			8-1-2035		63,861		63,653
FNMA (1 Year Treasury Constant Maturity +2.25%) ±		3.66			10-1-2029		70,041		71,316
FNMA (6 Month LIBOR +1.42%) ±		3.67			12-1-2031		219,184		227,305
FNMA (1 Year Treasury Constant Maturity +2.18%) ±		3.68			1-1-2035		86,671		90,468
FNMA (1 Year Treasury Constant Maturity +2.19%) ±		3.68			9-1-2035		175,469		184,623
FNMA (1 Year Treasury Constant Maturity +2.20%) ±		3.68			12-1-2032		542,606		570,470
FNMA (1 Year Treasury Constant Maturity +2.14%) ±		3.69			10-1-2033		302,766		318,208
FNMA (1 Year Treasury Constant Maturity +2.32%) ±		3.70			1-1-2028		2,645		2,643
FNMA (1 Year Treasury Constant Maturity +2.32%) ±		3.70			6-1-2032		21,714		21,812
FNMA (1 Year Treasury Constant Maturity +2.19%) ±		3.70			12-1-2035		340,457		359,231
FNMA (1 Year Treasury Constant Maturity +2.21%) ±		3.70			2-1-2034		1,446,510		1,512,279
FNMA (12 Month Treasury Average +2.08%) ±		3.70			1-1-2035		387,558		398,632

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

18 Wells Fargo Adjustable Rate Government Fund Portfolio of investments—August 31, 2018

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA (1 Year Treasury Constant Maturity +2.03%) ±		3.71	%		12-1-2032	$	624,381	$	645,820
FNMA (1 Year Treasury Constant Maturity +2.20%) ±		3.71			5-1-2033		289,902		301,838
FNMA (6 Month LIBOR +1.98%) ±		3.73			9-1-2033		54,726		55,127
FNMA (12 Month LIBOR +1.62%) ±		3.73			1-1-2040		234,969		245,595
FNMA (1 Year Treasury Constant Maturity +2.42%) ±		3.74			9-1-2033		525,558		556,714
FNMA (1 Year Treasury Constant Maturity +2.29%) ±		3.75			1-1-2031		324,458		341,618
FNMA (12 Month LIBOR +1.90%) ±		3.76			10-1-2034		463,546		493,471
FNMA (1 Year Treasury Constant Maturity +2.28%) ±		3.76			4-1-2024		10,425		10,682
FNMA (1 Year Treasury Constant Maturity +2.18%) ±		3.76			12-1-2034		734,863		772,186
FNMA (12 Month Treasury Average +2.60%) ±		3.76			7-1-2039		1,737,296		1,804,699
FNMA (1 Year Treasury Constant Maturity +2.19%) ±		3.76			5-1-2036		869,734		916,266
FNMA (1 Year Treasury Constant Maturity +2.52%) ±		3.77			11-1-2024		59,319		59,895
FNMA (1 Year Treasury Constant Maturity +1.89%) ±		3.77			6-1-2032		59,266		59,253
FNMA (1 Year Treasury Constant Maturity +2.13%) ±		3.77			5-1-2035		658,391		691,452
FNMA (3 Year Treasury Constant Maturity +2.15%) ±		3.77			10-1-2024		31,721		31,852
FNMA (1 Year Treasury Constant Maturity +2.28%) ±		3.78			7-1-2024		9,362		9,432
FNMA (1 Year Treasury Constant Maturity +2.28%) ±		3.78			2-1-2037		1,185,915		1,256,616
FNMA (12 Month LIBOR +1.68%) ±		3.78			9-1-2038		797,062		837,258
FNMA (1 Year Treasury Constant Maturity +2.27%) ±		3.78			5-1-2034		349,634		366,342
FNMA (1 Year Treasury Constant Maturity +2.15%) ±		3.80			4-1-2040		148,070		155,638
FNMA (1 Year Treasury Constant Maturity +2.21%) ±		3.80			7-1-2038		1,290,619		1,363,104
FNMA (6 Month LIBOR +1.42%) ±		3.81			12-1-2031		36,691		37,198
FNMA (1 Year Treasury Constant Maturity +2.18%) ±		3.81			1-1-2033		1,937,840		1,997,031
FNMA (1 Year Treasury Constant Maturity +2.11%) ±		3.81			5-1-2034		651,085		682,820
FNMA (Federal Cost of Funds +2.38%) ±		3.81			2-1-2029		1,056,410		1,083,243
FNMA (1 Year Treasury Constant Maturity +2.19%) ±		3.81			12-1-2040		307,206		322,843
FNMA (12 Month Treasury Average +2.16%) ±		3.81			8-1-2036		2,005,259		2,075,219
FNMA (1 Year Treasury Constant Maturity +2.22%) ±		3.82			12-1-2036		454,716		478,217
FNMA (1 Year Treasury Constant Maturity +2.50%) ±		3.82			5-1-2035		1,452,288		1,549,223
FNMA (1 Year Treasury Constant Maturity +2.24%) ±		3.82			10-1-2035		875,281		922,531
FNMA (1 Year Treasury Constant Maturity +2.21%) ±		3.83			1-1-2027		326,892		329,420
FNMA (6 Month LIBOR +1.52%) ±		3.84			11-1-2034		353,108		364,894
FNMA (1 Year Treasury Constant Maturity +2.37%) ±		3.84			9-1-2030		660,962		699,882
FNMA (1 Year Treasury Constant Maturity +2.60%) ±		3.85			10-1-2025		7,710		7,854
FNMA (1 Year Treasury Constant Maturity +1.88%) ±		3.85			4-1-2030		62,037		62,516
FNMA (1 Year Treasury Constant Maturity +2.04%) ±		3.85			6-1-2034		634,307		663,443
FNMA (1 Year Treasury Constant Maturity +2.19%) ±		3.85			6-1-2036		1,308,200		1,374,371
FNMA (12 Month LIBOR +1.71%) ±		3.86			2-1-2038		600,524		631,525
FNMA (1 Year Treasury Constant Maturity +2.22%) ±		3.86			4-1-2038		940,752		987,134
FNMA (1 Year Treasury Constant Maturity +2.22%) ±		3.86			9-1-2022		95,053		95,629
FNMA (1 Year Treasury Constant Maturity +2.20%) ±		3.86			10-1-2036		727,595		762,629
FNMA (6 Month LIBOR +1.37%) ±		3.87			1-1-2032		218,100		225,842
FNMA (6 Month LIBOR +1.16%) ±		3.87			8-1-2033		3,419		3,470
FNMA (12 Month LIBOR +1.74%) ±		3.87			6-1-2041		585,246		611,809
FNMA (1 Year Treasury Constant Maturity +2.20%) ±		3.87			7-1-2029		431,879		453,565
FNMA (US Treasury H15 Treasury Bill 6 Month Auction High Discount +2.00%) ±		3.88			10-1-2018		126		126
FNMA (6 Month LIBOR +1.38%) ±		3.88			12-1-2031		18,908		18,928
FNMA (1 Year Treasury Constant Maturity +2.15%) ±		3.89			1-1-2037		884,803		928,934
FNMA (1 Year Treasury Constant Maturity +2.36%) ±		3.89			11-1-2034		424,639		449,527
FNMA (1 Year Treasury Constant Maturity +2.26%) ±		3.89			5-1-2036		1,560,987		1,629,977

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

Portfolio of investments—August 31, 2018 Wells Fargo Adjustable Rate Government Fund 19

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA (1 Year Treasury Constant Maturity +1.63%) ±		3.90	%		11-1-2029	$	7,412	$	7,413
FNMA (1 Year Treasury Constant Maturity +2.21%) ±		3.90			9-1-2033		561,020		584,065
FNMA (1 Year Treasury Constant Maturity +2.40%) ±		3.90			6-1-2024		35,974		36,151
FNMA (6 Month LIBOR +1.84%) ±		3.90			4-1-2033		371,791		389,642
FNMA (1 Year Treasury Constant Maturity +2.22%) ±		3.90			12-1-2040		852,576		897,541
FNMA (1 Year Treasury Constant Maturity +2.07%) ±		3.91			9-1-2035		1,572,606		1,652,232
FNMA (12 Month Treasury Average +2.24%) ±		3.91			8-1-2035		743,440		763,239
FNMA (1 Year Treasury Constant Maturity +2.19%) ±		3.91			6-1-2036		867,904		912,575
FNMA (12 Month LIBOR +1.75%) ±		3.92			4-1-2033		381,561		395,562
FNMA (11th District Cost of Funds +2.06%) ±		3.92			7-1-2021		17,014		17,020
FNMA (12 Month Treasury Average +2.27%) ±		3.92			9-1-2036		441,053		458,318
FNMA (1 Year Treasury Constant Maturity +2.22%) ±		3.94			5-1-2033		1,412,062		1,468,352
FNMA (1 Year Treasury Constant Maturity +2.26%) ±		3.94			1-1-2038		650,786		687,800
FNMA (1 Year Treasury Constant Maturity +2.19%) ±		3.95			2-1-2036		647,955		683,021
FNMA (1 Year Treasury Constant Maturity +2.36%) ±		3.95			7-1-2028		528,239		544,670
FNMA (12 Month LIBOR +1.69%) ±		3.96			11-1-2038		514,676		535,736
FNMA (1 Year Treasury Constant Maturity +2.21%) ±		3.96			11-1-2035		1,200,038		1,263,533
FNMA (1 Year Treasury Constant Maturity +2.24%) ±		3.96			1-1-2037		1,236,829		1,306,266
FNMA (1 Year Treasury Constant Maturity +2.15%) ±		3.96			4-1-2033		1,008,392		1,061,516
FNMA (12 Month LIBOR +1.83%) ±		3.97			4-1-2035		1,035,075		1,090,651
FNMA (1 Year Treasury Constant Maturity +2.33%) ±		3.97			1-1-2037		825,539		867,677
FNMA (US Treasury H15 Treasury Bill 6 Month Auction High Discount +2.25%) ±		3.97			7-1-2020		6,840		6,835
FNMA (12 Month LIBOR +1.70%) ±		3.97			4-1-2034		603,163		632,968
FNMA (1 Year Treasury Constant Maturity +1.76%) ±		3.97			8-1-2032		134,439		137,016
FNMA (1 Year Treasury Constant Maturity +2.60%) ±		3.97			2-1-2028		36,097		36,261
FNMA (12 Month LIBOR +1.69%) ±		3.97			3-1-2037		388,061		409,324
FNMA (1 Year Treasury Constant Maturity +2.13%) ±		3.97			5-1-2033		546,591		570,793
FNMA (1 Year Treasury Constant Maturity +2.22%) ±		3.97			3-1-2038		1,538,717		1,623,077
FNMA (1 Year Treasury Constant Maturity +2.25%) ±		3.98			4-1-2033		517,548		544,688
FNMA (12 Month LIBOR +1.75%) ±		3.98			4-1-2034		363,662		380,146
FNMA (1 Year Treasury Constant Maturity +2.22%) ±		3.98			8-1-2026		299,114		313,336
FNMA (1 Year Treasury Constant Maturity +2.23%) ±		3.98			1-1-2032		56,712		57,455
FNMA (1 Year Treasury Constant Maturity +2.23%) ±		3.98			11-1-2037		652,234		686,027
FNMA (1 Year Treasury Constant Maturity +2.31%) ±		3.99			2-1-2035		682,346		720,556
FNMA (1 Year Treasury Constant Maturity +2.25%) ±		3.99			7-1-2030		454,884		473,932
FNMA (1 Year Treasury Constant Maturity +2.50%) ±		3.99			9-1-2030		511,876		534,703
FNMA (6 Month LIBOR +1.74%) ±		3.99			10-1-2024		38,421		38,560
FNMA (1 Year Treasury Constant Maturity +2.12%) ±		4.00			3-1-2031		33,268		33,244
FNMA (12 Month LIBOR +1.98%) ±		4.00			9-1-2035		444,227		470,779
FNMA (1 Year Treasury Constant Maturity +2.29%) ±		4.00			10-1-2036		654,253		691,184
FNMA (6 Month LIBOR +1.63%) ±		4.00			1-1-2022		5,957		5,948
FNMA (1 Year Treasury Constant Maturity +2.50%) ±		4.00			6-1-2032		88,399		90,136
FNMA (1 Year Treasury Constant Maturity +2.19%) ±		4.00			3-1-2035		682,701		713,053
FNMA (1 Year Treasury Constant Maturity +2.20%) ±		4.00			9-1-2035		483,003		507,716
FNMA (12 Month Treasury Average +2.81%) ±		4.00			4-1-2040		1,838,796		1,921,036
FNMA (12 Month Treasury Average +2.36%) ±		4.01			8-1-2040		478,103		491,899
FNMA (1 Year Treasury Constant Maturity +2.13%) ±		4.01			5-1-2033		407,590		426,895
FNMA (12 Month LIBOR +1.75%) ±		4.02			5-1-2035		882,054		929,142
FNMA (6 Month LIBOR +1.54%) ±		4.02			1-1-2035		1,370,304		1,416,789
FNMA (1 Year Treasury Constant Maturity +2.34%) ±		4.03			3-1-2033		1,040,255		1,100,577

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

20 Wells Fargo Adjustable Rate Government Fund Portfolio of investments—August 31, 2018

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA (1 Year Treasury Constant Maturity +2.22%) ±		4.04	%		5-1-2033	$	205,872	$	217,114
FNMA (1 Year Treasury Constant Maturity +2.46%) ±		4.04			8-1-2035		471,624		495,574
FNMA (12 Month Treasury Average +2.39%) ±		4.04			5-1-2036		338,884		353,746
FNMA (1 Year Treasury Constant Maturity +2.36%) ±		4.04			1-1-2029		226,531		233,429
FNMA (1 Year Treasury Constant Maturity +2.22%) ±		4.04			6-1-2027		82,491		83,852
FNMA (6 Month LIBOR +1.55%) ±		4.05			12-1-2022		5,705		5,717
FNMA (1 Year Treasury Constant Maturity +2.28%) ±		4.05			4-1-2024		37,442		37,715
FNMA (6 Month LIBOR +1.64%) ±		4.05			2-1-2033		130,719		134,265
FNMA (1 Year Treasury Constant Maturity +1.88%) ±		4.06			8-1-2031		58,511		60,640
FNMA (1 Year Treasury Constant Maturity +2.18%) ±		4.06			5-1-2035		201,373		213,107
FNMA (1 Year Treasury Constant Maturity +2.58%) ±		4.06			3-1-2032		115,651		118,430
FNMA (11th District Cost of Funds +1.87%) ±		4.07			5-1-2034		173,303		178,193
FNMA (1 Year Treasury Constant Maturity +2.12%) ±		4.07			5-1-2034		478,196		500,473
FNMA (3 Year Treasury Constant Maturity +2.20%) ±		4.08			5-1-2025		50		50
FNMA (1 Year Treasury Constant Maturity +2.32%) ±		4.08			10-1-2034		455,415		480,573
FNMA (1 Year Treasury Constant Maturity +2.21%) ±		4.08			5-1-2037		924,272		964,349
FNMA (1 Year Treasury Constant Maturity +2.11%) ±		4.08			9-1-2036		386,411		403,654
FNMA (1 Year Treasury Constant Maturity +2.22%) ±		4.09			4-1-2030		14,132		14,126
FNMA (1 Year Treasury Constant Maturity +2.22%) ±		4.09			4-1-2033		665,005		690,768
FNMA (12 Month Treasury Average +2.82%) ±		4.10			9-1-2032		1,341,631		1,400,693
FNMA (12 Month LIBOR +1.57%) ±		4.10			6-1-2035		1,621,048		1,696,982
FNMA (5 Year Treasury Constant Maturity +2.46%) ±		4.11			6-1-2019		298		298
FNMA (1 Year Treasury Constant Maturity +2.32%) ±		4.11			4-1-2028		128,379		131,907
FNMA (1 Year Treasury Constant Maturity +2.12%) ±		4.12			8-1-2026		31,109		31,353
FNMA (1 Year Treasury Constant Maturity +2.37%) ±		4.12			4-1-2038		553,818		578,922
FNMA (1 Year Treasury Constant Maturity +2.38%) ±		4.12			7-1-2027		92,897		94,883
FNMA (1 Year Treasury Constant Maturity +2.25%) ±		4.13			6-1-2025		6,003		5,988
FNMA (1 Year Treasury Constant Maturity +2.26%) ±		4.13			5-1-2035		420,870		441,496
FNMA (1 Year Treasury Constant Maturity +2.24%) ±		4.14			7-1-2037		436,979		458,757
FNMA (12 Month Treasury Average +2.47%) ±		4.14			4-1-2036		3,230,670		3,382,313
FNMA (1 Year Treasury Constant Maturity +2.89%) ±		4.14			1-1-2031		21,780		21,984
FNMA (1 Year Treasury Constant Maturity +2.31%) ±		4.14			1-1-2026		220,727		228,173
FNMA (1 Year Treasury Constant Maturity +2.21%) ±		4.14			6-1-2033		266,004		274,428
FNMA (12 Month LIBOR +1.85%) ±		4.16			12-1-2037		1,698,300		1,788,078
FNMA (1 Year Treasury Constant Maturity +2.25%) ±		4.17			12-1-2040		1,495,228		1,574,457
FNMA (1 Year Treasury Constant Maturity +2.40%) ±		4.17			9-1-2030		273,406		288,881
FNMA (1 Year Treasury Constant Maturity +2.18%) ±		4.17			9-1-2036		500,012		527,541
FNMA (1 Year Treasury Constant Maturity +2.18%) ±		4.17			6-1-2035		407,435		429,686
FNMA (1 Year Treasury Constant Maturity +2.21%) ±		4.18			6-1-2035		717,640		755,078
FNMA (1 Year Treasury Constant Maturity +2.41%) ±		4.18			5-1-2027		58,588		60,472
FNMA (1 Year Treasury Constant Maturity +2.24%) ±		4.18			7-1-2028		165		171
FNMA (1 Year Treasury Constant Maturity +2.34%) ±		4.19			4-1-2036		657,102		692,477
FNMA (1 Year Treasury Constant Maturity +2.31%) ±		4.19			5-1-2035		969,107		1,028,157
FNMA (1 Year Treasury Constant Maturity +2.18%) ±		4.19			1-1-2036		853,893		899,589
FNMA (5 Year Treasury Constant Maturity +2.43%) ±		4.20			6-1-2028		29,067		29,235
FNMA (1 Year Treasury Constant Maturity +2.22%) ±		4.21			6-1-2035		593,471		622,832
FNMA (1 Year Treasury Constant Maturity +2.19%) ±		4.21			7-1-2035		982,814		1,035,606
FNMA (1 Year Treasury Constant Maturity +2.09%) ±		4.21			8-1-2025		19,914		20,136
FNMA (1 Year Treasury Constant Maturity +2.21%) ±		4.22			6-1-2033		446,706		465,051
FNMA (12 Month LIBOR +1.73%) ±		4.23			12-1-2033		938,539		986,088

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

Portfolio of investments—August 31, 2018 Wells Fargo Adjustable Rate Government Fund 21

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA (1 Year Treasury Constant Maturity +2.23%) ±		4.23	%		1-1-2035	$	532,280	$	560,990
FNMA (1 Year Treasury Constant Maturity +2.21%) ±		4.23			8-1-2035		1,264,680		1,338,112
FNMA (1 Year Treasury Constant Maturity +2.32%) ±		4.24			9-1-2037		637,606		675,068
FNMA (6 Month LIBOR +1.74%) ±		4.24			12-1-2024		55,399		55,501
FNMA (12 Month LIBOR +1.74%) ±		4.24			5-1-2032		168,387		170,780
FNMA (1 Year Treasury Constant Maturity +2.10%) ±		4.24			7-1-2035		323,418		333,837
FNMA (3 Year Treasury Constant Maturity +2.38%) ±		4.25			10-1-2021		556		554
FNMA (US Treasury H15 Treasury Bill 6 Month Auction High Discount +2.23%) ±		4.25			7-1-2025		2,161		2,254
FNMA (1 Year Treasury Constant Maturity +2.47%) ±		4.25			9-1-2035		55,821		59,385
FNMA (12 Month LIBOR +1.75%) ±		4.26			7-1-2035		561,381		591,771
FNMA (1 Year Treasury Constant Maturity +2.35%) ±		4.27			12-1-2030		681,171		709,634
FNMA (11th District Cost of Funds +1.82%) ±		4.27			6-1-2034		158,750		163,980
FNMA (11th District Cost of Funds +1.93%) ±		4.28			12-1-2036		92,757		96,932
FNMA (1 Year Treasury Constant Maturity +2.50%) ±		4.29			10-1-2029		338,219		351,594
FNMA (1 Year Treasury Constant Maturity +2.35%) ±		4.29			6-1-2027		70,755		71,441
FNMA (1 Year Treasury Constant Maturity +2.27%) ±		4.30			6-1-2036		164,400		173,897
FNMA (6 Month LIBOR +2.10%) ±		4.32			2-1-2033		357,847		375,323
FNMA (1 Year Treasury Constant Maturity +2.11%) ±		4.32			7-1-2035		548,174		574,055
FNMA (6 Month LIBOR +2.25%) ±		4.32			3-1-2034		1,051,071		1,111,599
FNMA (1 Year Treasury Constant Maturity +2.64%) ±		4.33			7-1-2028		100,559		102,705
FNMA ±±		4.33			11-1-2019		75		71
FNMA (12 Month LIBOR +1.80%) ±		4.33			5-1-2033		477,396		502,031
FNMA (12 Month LIBOR +1.87%) ±		4.34			5-1-2038		760,259		801,745
FNMA (1 Year Treasury Constant Maturity +2.22%) ±		4.35			7-1-2035		175,873		184,975
FNMA (1 Year Treasury Constant Maturity +2.30%) ±		4.35			9-1-2030		105,938		107,302
FNMA (6 Month LIBOR +1.98%) ±		4.37			10-1-2024		79,865		82,067
FNMA (1 Year Treasury Constant Maturity +2.43%) ±		4.38			7-1-2037		1,733,211		1,840,955
FNMA (1 Year Treasury Constant Maturity +2.40%) ±		4.39			7-1-2037		628,588		655,479
FNMA (1 Year Treasury Constant Maturity +2.21%) ±		4.39			7-1-2033		63,505		66,986
FNMA (12 Month LIBOR +1.74%) ±		4.39			6-1-2036		316,793		333,026
FNMA (12 Month LIBOR +1.72%) ±		4.39			6-1-2035		172,904		182,314
FNMA (12 Month LIBOR +1.67%) ±		4.39			7-1-2035		1,225,599		1,285,943
FNMA (12 Month LIBOR +1.83%) ±		4.40			6-1-2041		679,870		714,731
FNMA (1 Year Treasury Constant Maturity +2.55%) ±		4.42			5-1-2035		1,109,996		1,184,424
FNMA (1 Year Treasury Constant Maturity +2.29%) ±		4.42			6-1-2037		546,873		571,163
FNMA (1 Year Treasury Constant Maturity +2.55%) ±		4.42			12-1-2021		7,981		7,979
FNMA (6 Month LIBOR +1.93%) ±		4.43			6-1-2032		69,106		69,789
FNMA (1 Year Treasury Constant Maturity +2.19%) ±		4.44			8-1-2033		1,030,530		1,080,749
FNMA (1 Year Treasury Constant Maturity +2.22%) ±		4.44			7-1-2035		756,964		797,673
FNMA (1 Year Treasury Constant Maturity +2.64%) ±		4.45			10-1-2028		114,521		117,177
FNMA (1 Year Treasury Constant Maturity +2.21%) ±		4.46			7-1-2035		554,264		587,299
FNMA (1 Year Treasury Constant Maturity +2.50%) ±		4.47			3-1-2027		81,524		83,952
FNMA (1 Year Treasury Constant Maturity +2.35%) ±		4.48			6-1-2030		51,640		52,308
FNMA (12 Month LIBOR +1.88%) ±		4.51			5-1-2037		1,569,342		1,656,550
FNMA (1 Year Treasury Constant Maturity +2.64%) ±		4.55			3-1-2030		8,391		8,552
FNMA (6 Month LIBOR +2.43%) ±		4.58			1-1-2033		92,210		94,099
FNMA (3 Year Treasury Constant Maturity +2.15%) ±		4.59			8-1-2031		34,734		35,152
FNMA (12 Month LIBOR +1.80%) ±		4.64			7-1-2033		664,017		699,987
FNMA (6 Month LIBOR +3.11%) ±		4.66			9-1-2033		38,583		38,990
FNMA (12 Month LIBOR +1.91%) ±		4.66			8-1-2034		1,665,796		1,763,786

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

22 Wells Fargo Adjustable Rate Government Fund Portfolio of investments—August 31, 2018

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA (6 Month LIBOR +2.65%) ±		4.68	%		4-1-2024	$	178,440	$	187,442
FNMA (1 Year Treasury Constant Maturity +2.47%) ±		4.72			9-1-2028		39,247		39,915
FNMA (11th District Cost of Funds +1.25%) ±		4.73			2-1-2019		20,268		20,338
FNMA (1 Year Treasury Constant Maturity +2.87%) ±		4.75			8-1-2030		80,049		80,767
FNMA (6 Month LIBOR +2.70%) ±		4.80			1-1-2033		61,726		62,690
FNMA (6 Month LIBOR +2.64%) ±		4.86			4-1-2033		260,033		273,028
FNMA (6 Month LIBOR +2.48%) ±		4.98			7-1-2033		34,790		35,008
FNMA (6 Month LIBOR +2.72%) ±		5.07			5-1-2033		982,073		1,055,464
FNMA		5.50			9-1-2019		69		69
FNMA (11th District Cost of Funds +1.25%) ±		5.68			1-1-2019		3,832		3,832
FNMA (6 Month LIBOR +3.47%) ±		5.69			12-1-2032		148,858		153,390
FNMA (6 Month LIBOR +3.68%) ±		5.70			11-1-2031		87,126		86,614
FNMA (6 Month LIBOR +3.43%) ±		5.93			4-1-2033		179,049		184,177
FNMA (1 Year Treasury Constant Maturity +1.75%) ±		6.00			1-1-2020		1,999		1,973
FNMA (6 Month LIBOR +3.57%) ±		6.07			11-1-2031		13,038		13,008
FNMA (11th District Cost of Funds +1.90%) ±		6.45			2-1-2034		12,391		12,279
FNMA		6.50			8-1-2028		50,944		52,265
FNMA		6.50			5-1-2031		136,240		149,288
FNMA		7.06			11-1-2024		8,202		8,212
FNMA		7.06			12-1-2024		23,851		23,920
FNMA		7.06			3-1-2025		43,218		43,883
FNMA		7.06			3-1-2025		3,227		3,230
FNMA		7.06			1-1-2027		24,586		24,595
FNMA		7.50			1-1-2031		59,200		62,940
FNMA		7.50			1-1-2033		216,121		234,013
FNMA		7.50			5-1-2033		170,220		183,892
FNMA		7.50			5-1-2033		152,061		162,176
FNMA		7.50			6-1-2033		27,031		27,172
FNMA		7.50			7-1-2033		42,952		43,959
FNMA		7.50			8-1-2033		54,332		56,390
FNMA		8.00			12-1-2026		74,329		80,240
FNMA		8.00			2-1-2030		177		178
FNMA		8.00			3-1-2030		239		255
FNMA		8.00			7-1-2031		24,834		24,980
FNMA		8.00			5-1-2033		88,131		93,449
FNMA		8.50			10-1-2026		2,625		2,651
FNMA		8.50			8-15-2024		36,486		37,043
FNMA		10.00			1-20-2021		2,037		2,058
FNMA Series 1989-74 Class J		9.80			10-25-2019		2,266		2,323
FNMA Series 1989-96 Class H		9.00			12-25-2019		1,191		1,218
FNMA Series 1992-39 Class FA (7-Year Treasury Constant Maturity +0.00%) ±		2.82			3-25-2022		81,426		81,361
FNMA Series 1992-45 Class F (7-Year Treasury Constant Maturity +0.00%) ±		2.82			4-25-2022		12,952		12,837
FNMA Series 1992-87 Class Z		8.00			5-25-2022		7,363		7,802
FNMA Series 1993-113 Class FA (10 Year Treasury Constant Maturity -0.65%) ±		2.22			7-25-2023		53,192		53,090
FNMA Series 1993-247 Class FM (11th District Cost of Funds +1.20%) ±		2.13			12-25-2023		249,760		254,476
FNMA Series 1994-14 Class F (11th District Cost of Funds +1.60%) ±		2.53			10-25-2023		141,008		144,914
FNMA Series 2001-50 Class BA		7.00			10-25-2041		143,535		158,374
FNMA Series 2001-63 Class FD (1 Month LIBOR +0.60%) ±		2.68			12-18-2031		139,084		140,516
FNMA Series 2001-81 Class F (1 Month LIBOR +0.55%) ±		2.61			1-25-2032		58,265		59,200
FNMA Series 2001-T08 Class A1		7.50			7-25-2041		127,168		143,194

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

Portfolio of investments—August 31, 2018 Wells Fargo Adjustable Rate Government Fund 23

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA Series 2001-T10 Class A2		7.50	%		12-25-2041	$	2,296,155	$	2,603,383
FNMA Series 2001-T12 Class A2		7.50			8-25-2041		180,682		205,112
FNMA Series 2001-T12 Class A4 ±±		4.23			8-25-2041		4,112,726		4,266,289
FNMA Series 2001-W01 Class AV1 (1 Month LIBOR +0.24%) ±		2.30			8-25-2031		59,443		57,954
FNMA Series 2001-W03 Class A ±±		6.13			9-25-2041		506,597		531,769
FNMA Series 2002-05 Class FD (1 Month LIBOR +0.90%) ±		2.96			2-25-2032		115,446		118,084
FNMA Series 2002-33 Class A4 ±±		5.27			11-25-2030		132,813		137,962
FNMA Series 2002-59 Class F (1 Month LIBOR +0.40%) ±		2.46			9-25-2032		395,693		395,952
FNMA Series 2002-66 Class A3 ±±		4.09			4-25-2042		7,556,352		7,863,329
FNMA Series 2002-T12 Class A3		7.50			5-25-2042		1,279,309		1,475,616
FNMA Series 2002-T12 Class A5 ±±		4.52			10-25-2041		1,610,488		1,647,233
FNMA Series 2002-T18 Class A5 ±±		4.38			5-25-2042		3,219,382		3,290,484
FNMA Series 2002-T19 Class A4 ±±		4.34			3-25-2042		184,539		192,321
FNMA Series 2002-W01 Class 3A ±±		3.87			4-25-2042		1,044,074		1,045,604
FNMA Series 2002-W04 Class A6 ±±		4.27			5-25-2042		1,762,099		1,800,661
FNMA Series 2003-07 Class A2 ±±		3.65			5-25-2042		727,089		736,217
FNMA Series 2003-63 Class A8 ±±		3.94			1-25-2043		1,276,887		1,319,418
FNMA Series 2003-W02 Class 1A3		7.50			7-25-2042		375,312		432,187
FNMA Series 2003-W04 Class 5A ±±		4.07			10-25-2042		994,551		998,737
FNMA Series 2003-W08 Class 4A ±±		4.12			11-25-2042		1,291,679		1,324,010
FNMA Series 2003-W09 Class A (1 Month LIBOR +0.12%) ±		2.18			6-25-2033		1,763,904		1,731,672
FNMA Series 2003-W10 Class 2A ±±		3.89			6-25-2043		2,489,001		2,479,298
FNMA Series 2003-W18 Class 2A ±±		4.04			6-25-2043		3,673,331		3,815,128
FNMA Series 2004-38 Class FT (1 Month LIBOR +0.43%) ±		2.49			10-25-2033		20,750		20,763
FNMA Series 2004-T03 Class 1A3		7.00			2-25-2044		485,477		546,263
FNMA Series 2004-T03 Class 2A ±±		4.20			8-25-2043		1,418,744		1,468,495
FNMA Series 2004-W01 Class 2A2		7.00			12-25-2033		257,441		289,800
FNMA Series 2004-W01 Class 3A ±±		4.19			1-25-2043		71,777		72,465
FNMA Series 2004-W02 Class 5A		7.50			3-25-2044		114,912		126,553
FNMA Series 2004-W12 Class 2A ±±		4.02			6-25-2044		4,474,596		4,597,082
FNMA Series 2004-W15 Class 3A ±±		3.96			6-25-2044		5,771,975		5,850,225
FNMA Series 2005-W03 Class 3A ±±		3.81			4-25-2045		1,165,817		1,170,924
FNMA Series 2006-15 Class FW (1 Month LIBOR +0.30%) ±		2.36			1-25-2036		113,604		113,960
FNMA Series 2006-44 Class FY (1 Month LIBOR +0.57%) ±		2.63			6-25-2036		968,674		981,045
FNMA Series 2006-W01 Class 3A ±±		3.59			10-25-2045		4,587,186		4,776,088
FNMA Series 2007-88 Class JF (1 Month LIBOR +0.55%) ±		2.61			4-25-2037		1,311,535		1,321,813
FNMA Series 2007-95 Class A2 (1 Month LIBOR +0.25%) ±		2.31			8-27-2036		379,647		378,218
FNMA Series 2012-47 Class FW (1 Month LIBOR +1.70%) ±		3.76			5-25-2027		434,872		452,825
FNMA Series 2016-82 Class FM (1 Month LIBOR +0.40%) ±		2.49			11-25-2046		1,739,917		1,737,095
FNMA Series G92-20 Class FB (7-Year Treasury Constant Maturity +0.00%) ±		2.82			4-25-2022		8,670		8,644
FNMA Series G93-1 Class K		6.68			1-25-2023		227,260		237,283
FNMA Series G93-19 Class FD (10 Year Treasury Constant Maturity -0.65%) ±		2.22			4-25-2023		131,507		131,472
GNMA		6.45			4-20-2025		34,979		38,628
GNMA		6.45			9-20-2025		35,221		40,266
GNMA		6.50			6-20-2034		73,694		74,539
GNMA		6.50			8-20-2034		494,439		529,990
GNMA		6.50			8-20-2034		102,011		104,530
GNMA		6.75			2-15-2029		42,411		46,592
GNMA		7.00			7-20-2034		52,820		53,514
GNMA		9.00			3-15-2020		601		602

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

24 Wells Fargo Adjustable Rate Government Fund Portfolio of investments—August 31, 2018

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
GNMA		9.00	%		8-15-2021	$	70	$	70
GNMA		9.00			8-20-2024		26		26
GNMA		9.00			9-20-2024		929		948
GNMA		9.00			11-20-2024		126		126
GNMA		9.00			1-20-2025		5,113		5,553
GNMA		9.00			2-20-2025		15,695		17,191
GNMA Series 2008-65 Class FG (1 Month LIBOR +0.75%) ±		2.83			8-20-2038		1,550,772		1,578,142
GNMA Series 2008-68 Class FA (1 Month LIBOR +0.95%) ±		3.03			8-20-2038		1,904,393		1,954,829
GNMA Series 2009-50 Class FW (1 Month LIBOR +1.00%) ±		3.08			7-20-2039		1,941,635		1,994,552
GNMA Series 2009-52 Class FD (1 Month LIBOR +0.95%) ±		3.01			7-16-2039		965,261		989,679
GNMA Series 2010-25 Class FH (1 Month LIBOR +0.72%) ±		2.78			2-16-2040		820,821		837,954
GNMA Series 2011-H12 Class FA (1 Month LIBOR +0.49%) ±		2.59			2-20-2061		2,608,466		2,613,461
GNMA Series 2011-H17 Class FA (1 Month LIBOR +0.53%) ±		2.63			6-20-2061		1,067,906		1,071,336
GNMA Series 2017-H11 Class FE (12 Month LIBOR +0.18%) ±		2.84			5-20-2067		4,956,631		4,968,507
Total Agency Securities (Cost $371,915,311)									376,251,593
	Yield					Shares
Short-Term Investments: 3.60%
Investment Companies: 3.60%
Wells Fargo Government Money Market Fund Select Class (l)(u)		1.87					14,194,527		14,194,527
Total Short-Term Investments (Cost $14,194,527)									14,194,527

Total investments in securities (Cost $386,109,838)	99.13	%		390,446,120
Other assets and liabilities, net	0.87			3,428,060
Total net assets	100.00	%	$	393,874,180

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

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

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

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

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

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

Abbreviations:

FDIC Federal Deposit Insurance Corporation

FHLMC Federal Home Loan Mortgage Corporation

FNMA Federal National Mortgage Association

GNMA Government National Mortgage Association

LIBOR London Interbank Offered Rate

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

Portfolio of investments—August 31, 2018 Wells Fargo Adjustable Rate Government Fund 25

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		8,353,190		182,751,007		176,909,670		14,194,527	$	0	$	0	$	153,959	$	14,194,527		3.60	%

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

26 Wells Fargo Adjustable Rate Government Fund Statement of assets and liabilities—August 31, 2018

Assets
Investments in unaffiliated securities, at value (cost $371,915,311)	$	376,251,593
Investments in affiliated securities, at value (cost $14,194,527)		14,194,527
Cash		19,263
Receivable for investments sold		17
Principal paydown receivable		2,103,634
Receivable for Fund shares sold		303,814
Receivable for interest		1,528,252
Prepaid expenses and other assets		125,395
Total assets		394,526,495
Liabilities
Payable for Fund shares redeemed		236,375
Dividends payable		131,306
Custodian and accounting fees payable		80,964
Management fee payable		69,801
Administration fees payable		41,090
Shareholder servicing fees payable		37,416
Distribution fee payable		32,353
Trustees’ fees and expenses payable		2,252
Accrued expenses and other liabilities		20,758
Total liabilities		652,315
Total net assets	$	393,874,180
NET ASSETS CONSIST OF
Paid-in capital	$	390,174,059
Overdistributed net investment income		(192,257	)
Accumulated net realized losses on investments		(443,904	)
Net unrealized gains on investments		4,336,282
Total net assets	$	393,874,180
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	103,963,224
Shares outstanding – Class A1		11,643,594
Net asset value per share – Class A		$8.93
Maximum offering price per share – Class A2		$9.11
Net assets – Class C	$	45,692,505
Shares outstanding – Class C1		5,117,938
Net asset value per share – Class C		$8.93
Net assets – Administrator Class	$	9,140,127
Shares outstanding – Administrator Class1		1,023,541
Net asset value per share – Administrator Class		$8.93
Net assets – Institutional Class	$	235,078,324
Shares outstanding – Institutional Class1		26,327,085
Net asset value per share – Institutional Class		$8.93

¹  The Fund has an unlimited number of authorized shares.

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

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

Statement of operations—year ended August 31, 2018 Wells Fargo Adjustable Rate Government Fund 27

Investment income
Interest	$	9,359,506
Income from affiliated securities		153,959
Total investment income		9,513,465
Expenses
Management fee		1,650,751
Administration fees
Class A		208,838
Class C		85,683
Administrator Class		13,845
Institutional Class		218,978
Shareholder servicing fees
Class A		326,310
Class C		133,879
Administrator Class		34,404
Distribution fee
Class C		401,637
Custody and accounting fees		78,329
Professional fees		71,309
Registration fees		99,095
Shareholder report expenses		41,265
Trustees’ fees and expenses		22,727
Other fees and expenses		39,156
Total expenses		3,426,206
Less: Fee waivers and/or expense reimbursements		(320,215	)
Net expenses		3,105,991
Net investment income		6,407,474
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on investments		736,194
Net change in unrealized gains (losses) on investments		(2,234,630	)
Net realized and unrealized gains (losses) on investments		(1,498,436	)
Net increase in net assets resulting from operations	$	4,909,038

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

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

	Year ended August 31, 2018						Year ended August 31, 2017
Operations
Net investment income				$	6,407,474					$	6,832,710
Net realized gains on investments					736,194						1,558,231
Net change in unrealized gains (losses) on investments					(2,234,630	)					(5,258,425	)
Net increase in net assets resulting from operations					4,909,038						3,132,516
Distributions to shareholders from
Net investment income
Class A					(1,690,233	)					(1,238,794	)
Class B					N/A						(5	)1
Class C					(291,921	)					(27,529	)
Administrator Class					(197,212	)					(324,646	)
Institutional Class					(4,228,118	)					(5,899,360	)
Total distributions to shareholders					(6,407,484	)					(7,490,334	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		959,219			8,580,205			3,084,824			27,722,527
Class C		96,466			864,644			174,032			1,564,611
Administrator Class		106,068			950,975			1,084,425			9,765,946
Institutional Class		5,355,474			47,989,301			17,873,034			160,859,388
					58,385,125						199,912,472
Reinvestment of distributions
Class A		138,550			1,239,446			111,286			1,000,787
Class B		N/A			N/A			1	1		5	1
Class C		31,593			282,408			2,348			21,130
Administrator Class		21,739			194,536			33,857			304,570
Institutional Class		358,053			3,204,150			499,163			4,490,201
					4,920,540						5,816,693
Payment for shares redeemed
Class A		(6,633,879	)		(59,360,844	)		(5,118,157	)		(46,046,224	)
Class B		N/A			N/A			(7,783	)1		(70,136	)1
Class C		(1,791,217	)		(16,036,464	)		(4,209,467	)		(37,840,666	)
Administrator Class		(1,202,643	)		(10,766,120	)		(5,862,305	)		(52,736,098	)
Institutional Class		(23,742,189	)		(212,822,264	)		(51,978,754	)		(467,553,596	)
					(298,985,692	)					(604,246,720	)
Net decrease in net assets resulting from capital share transactions					(235,680,027	)					(398,517,555	)
Total decrease in net assets					(237,178,473	)					(402,875,373	)
Net assets
Beginning of period					631,052,653						1,033,928,026
End of period				$	393,874,180					$	631,052,653
Overdistributed net investment income				$	(192,257	)				$	(192,247	)

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

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

Financial highlights Wells Fargo Adjustable Rate Government Fund 29

(For a share outstanding throughout each period)

	Year ended August 31
CLASS A	2018			2017			2016			2015			2014
Net asset value, beginning of period		$8.96			$9.01			$9.10			$9.15			$9.14
Net investment income		0.10			0.06			0.04			0.05			0.06
Net realized and unrealized gains (losses) on investments		(0.01	)		(0.04	)		(0.06	)		(0.03	)		0.02
Total from investment operations		0.09			0.02			(0.02	)		0.02			0.08
Distributions to shareholders from
Net investment income		(0.12	)		(0.07	)		(0.05	)		(0.05	)		(0.06	)
Tax basis return of capital		0.00			0.00			(0.02	)		(0.02	)		(0.01	)
Total distributions to shareholders		(0.12	)		(0.07	)		(0.07	)		(0.07	)		(0.07	)
Net asset value, end of period		$8.93			$8.96			$9.01			$9.10			$9.15
Total return1		0.98	%		0.23	%		(0.19	)%		0.24	%		0.90	%
Ratios to average net assets (annualized)
Gross expenses		0.83	%		0.80	%		0.78	%		0.79	%		0.80	%
Net expenses		0.74	%		0.74	%		0.74	%		0.74	%		0.74	%
Net investment income		1.28	%		0.72	%		0.56	%		0.58	%		0.64	%
Supplemental data
Portfolio turnover rate		3	%		2	%		13	%		10	%		18	%
Net assets, end of period (000s omitted)		$103,963			$153,953			$172,131			$215,830			$251,686

¹  Total return calculations do not include any sales charges.

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

30 Wells Fargo Adjustable Rate Government Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended August 31
CLASS C	2018			2017			2016			2015			2014
Net asset value, beginning of period		$8.96			$9.01			$9.10			$9.15			$9.14
Net investment income (loss)		0.05	1		(0.00	)1,2		(0.02	)1		(0.01	)1		(0.01	)1
Net realized and unrealized gains (losses) on investments		(0.03	)		(0.05	)		(0.07	)		(0.04	)		0.02
Total from investment operations		0.02			(0.05	)		(0.09	)		(0.05	)		0.01
Distributions to shareholders from
Net investment income		(0.05	)		(0.00	)3		(0.00	)3		(0.00	)3		(0.00	)3
Tax basis return of capital		0.00			0.00			(0.00	)3		(0.00	)3		(0.00	)3
Total distributions to shareholders		(0.05	)		(0.00	)3		(0.00	)3		(0.00	)3		(0.00	)3
Net asset value, end of period		$8.93			$8.96			$9.01			$9.10			$9.15
Total return4		0.23	%		(0.52	)%		(0.94	)%		(0.51	)%		0.15	%
Ratios to average net assets (annualized)
Gross expenses		1.59	%		1.55	%		1.53	%		1.54	%		1.55	%
Net expenses		1.49	%		1.49	%		1.49	%		1.49	%		1.49	%
Net investment income (loss)		0.54	%		(0.04	)%		(0.19	)%		(0.16	)%		(0.11	)%
Supplemental data
Portfolio turnover rate		3	%		2	%		13	%		10	%		18	%
Net assets, end of period (000s omitted)		$45,693			$60,766			$97,452			$121,117			$148,523

¹  Calculated based upon average shares outstanding

²  Amount is more than $(0.005).

³  Amount is less than $0.005.

⁴  Total return calculations do not include any sales charges.

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

Financial highlights Wells Fargo Adjustable Rate Government Fund 31

(For a share outstanding throughout each period)

	Year ended August 31
ADMINISTRATOR CLASS	2018			2017			2016			2015			2014
Net asset value, beginning of period		$8.96			$9.01			$9.10			$9.15			$9.14
Net investment income		0.13	1		0.07	1		0.06			0.06			0.07
Net realized and unrealized gains (losses) on investments		(0.03	)		(0.04	)		(0.06	)		(0.03	)		0.03
Total from investment operations		0.10			0.03			0.00			0.03			0.10
Distributions to shareholders from
Net investment income		(0.13	)		(0.08	)		(0.07	)		(0.06	)		(0.07	)
Tax basis return of capital		0.00			0.00			(0.02	)		(0.02	)		(0.02	)
Total distributions to shareholders		(0.13	)		(0.08	)		(0.09	)		(0.08	)		(0.09	)
Net asset value, end of period		$8.93			$8.96			$9.01			$9.10			$9.15
Total return		1.12	%		0.37	%		(0.05	)%		0.38	%		1.05	%
Ratios to average net assets (annualized)
Gross expenses		0.77	%		0.74	%		0.72	%		0.72	%		0.73	%
Net expenses		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Net investment income		1.42	%		0.82	%		0.71	%		0.72	%		0.78	%
Supplemental data
Portfolio turnover rate		3	%		2	%		13	%		10	%		18	%
Net assets, end of period (000s omitted)		$9,140			$18,805			$61,658			$66,037			$124,345

¹  Calculated based upon average shares outstanding

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

32 Wells Fargo Adjustable Rate Government Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended August 31
INSTITUTIONAL CLASS	2018			2017			2016			2015			2014
Net asset value, beginning of period		$8.96			$9.01			$9.10			$9.15			$9.14
Net investment income		0.16			0.09			0.08			0.08			0.08
Net realized and unrealized gains (losses) on investments		(0.05	)		(0.04	)		(0.07	)		(0.03	)		0.03
Total from investment operations		0.11			0.05			0.01			0.05			0.11
Distributions to shareholders from
Net investment income		(0.14	)		(0.10	)		(0.07	)		(0.08	)		(0.08	)
Tax basis return of capital		0.00			0.00			(0.03	)		(0.02	)		(0.02	)
Total distributions to shareholders		(0.14	)		(0.10	)		(0.10	)		(0.10	)		(0.10	)
Net asset value, end of period		$8.93			$8.96			$9.01			$9.10			$9.15
Total return		1.26	%		0.51	%		0.09	%		0.52	%		1.19	%
Ratios to average net assets (annualized)
Gross expenses		0.50	%		0.47	%		0.45	%		0.46	%		0.47	%
Net expenses		0.46	%		0.46	%		0.45	%		0.46	%		0.46	%
Net investment income		1.55	%		0.98	%		0.84	%		0.87	%		0.93	%
Supplemental data
Portfolio turnover rate		3	%		2	%		13	%		10	%		18	%
Net assets, end of period (000s omitted)		$235,078			$397,529			$702,617			$906,536			$844,221

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

Notes to financial statements Wells Fargo Adjustable Rate Government Fund 33

1. ORGANIZATION

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

Effective at the close of business on December 5, 2016, Class B shares were converted to Class A shares and are no longer offered by the Fund. Information for Class B shares reflected in the financial statements represents activity through December 5, 2016.

2. SIGNIFICANT ACCOUNTING POLICIES

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

Securities valuation

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

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

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

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

Security transactions and income recognition

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

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

Distributions to shareholders

Distributions to shareholders from net investment income are declared daily and paid monthly. Distributions from net realized gains, if any, 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

34 Wells Fargo Adjustable Rate Government Fund Notes to financial statements

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 August 31, 2018, the aggregate cost of all investments for federal income tax purposes was $386,487,299 and the unrealized gains (losses) consisted of:

Gross unrealized gains	$	5,518,620
Gross unrealized losses		(1,559,799	)
Net unrealized gains	$	3,958,821

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 a reclassification is due to expiration of capital loss carryforwards. At August 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
$(1,122,258)	$1,122,258

As of August 31, 2018, the Fund had capital loss carryforwards available to offset future net realized capital gains in the amount of $66,443 expiring in 2019.

Class allocations

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

3. FAIR VALUATION MEASUREMENTS

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

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

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

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

Notes to financial statements Wells Fargo Adjustable Rate Government Fund 35

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 August 31, 2018:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Agency securities	$	0	$	376,251,593	$	0	$	376,251,593
Short-term investments
Investment companies		14,194,527		0		0		14,194,527
Total assets	$	14,194,527	$	376,251,593	$	0	$	390,446,120

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At August 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 & 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 and providing fund-level administrative services in connection with the Fund’s operations. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.35% and declining to 0.255% as the average daily net assets of the Fund increase. For the year ended August 31, 2018, the management fee was equivalent to an annual rate of 0.35% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. Wells Capital Management Incorporated, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.20% and declining to 0.10% as the average daily net assets of the Fund increase.

Administration fees

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

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

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. When each class of the Fund has exceeded its expense cap, Funds Management has waived fees and/or reimbursed expenses from fund level expenses on a proportionate basis and then from class specific expenses; otherwise, waivers and/or reimbursements are applied against class specific expenses before fund level expenses. Funds Management has committed through December 31, 2018 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.74% for Class A shares, 1.49% for Class C shares, 0.60% for Administrator Class shares and 0.46% for Institutional Class shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

36 Wells Fargo Adjustable Rate Government Fund Notes to financial statements

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 August 31, 2018, Funds Distributor received $109 from the sale of Class A shares and $127 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 August 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.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding short-term securities, for the year ended August 31, 2018 were as follows:

Purchases at cost		Sales proceeds
U.S. government	Non-U.S. government	U.S. government	Non-U.S. government
$7,016,900	$7,580,065	$133,028,270	$7,635,720

6. BANK BORROWINGS

The Trust (excluding the money market funds), Wells Fargo Master Trust 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.

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

7. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid was $6,407,484 and $7,490,334 of ordinary income for the years ended August 31, 2018 and August 31, 2017, respectively.

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

Undistributed ordinary income	Unrealized gains	Capital loss carryforward
$41,268	$3,958,821	$(66,443)

8. INDEMNIFICATION

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

Notes to financial statements Wells Fargo Adjustable Rate Government Fund 37

9. NEW ACCOUNTING PRONOUNCEMENTS AND REGULATORY CHANGES

On August 17, 2018, the Securities and Exchange Commission (“SEC”) adopted Disclosure Update and Simplification, which amends certain disclosure requirements. The amendments are effective for filings subsequent to November 5, 2018. Management expects these amendments will impact the classification of disclosures in the financial statements.

In August 2018, FASB issued Accounting Standards Update (“ASU”) No. 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 updates the disclosure requirements for fair value measurements by modifying or removing certain disclosures and adding certain new disclosures. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. Management is currently evaluating the potential impact of this new guidance to the financial statements.

In March 2017, FASB issued ASU No. 2017-08, Premium Amortization on Purchased Callable Debt Securities. ASU 2017-08 shortens the amortization period for certain callable debt securities held at a premium. The amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 is effective for fiscal years beginning after December 15, 2018 and for interim periods within those fiscal years. Management is currently evaluating the potential impact of this new guidance to the financial statements.

38 Wells Fargo Adjustable Rate Government 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 Wells Fargo Adjustable Rate Government Fund (the “Fund”), including the portfolio of investments, as of August 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 August 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 Company 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 August 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

October 26, 2018

Other information (unaudited) Wells Fargo Adjustable Rate Government Fund 39

TAX INFORMATION

For the fiscal year ended August 31, 2018, $6,367,464 has been designated as interest-related dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.

PROXY VOTING INFORMATION

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

PORTFOLIO HOLDINGS INFORMATION

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

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

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 154 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 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.	N/A
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 The Ruth Bancroft Garden (non-profit organization). She is also an inactive Chartered Financial Analyst.	N/A
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 (private school). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	CIGNA Corporation
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, since 2009	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.	N/A
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.	N/A

Other information (unaudited) Wells Fargo Adjustable Rate Government Fund 41

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
Olivia S. Mitchell (Born 1953)	Trustee, since 2006; 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.	N/A
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.	N/A
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.	N/A
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.	N/A
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, on the Board of Directors, Governance Committee and Finance Committee for the Minnesota Philanthropy Partners (Saint Paul Foundation) from 2012 to 2018, 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 the Board Chair of the Minnesota Wild Foundation since 2010.	N/A

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

42 Wells Fargo Adjustable Rate Government 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 Kymn3 (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.
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 77 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.

³  Alexander Kymn became the Secretary and Chief Legal Officer effective April 17, 2018.

Other information (unaudited) Wells Fargo Adjustable Rate Government Fund 43

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Wells Fargo Adjustable Rate Government Fund

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at an in-person meeting held on May 22-23, 2018 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for Wells Fargo Adjustable Rate Government Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Wells Capital Management Incorporated (the “Sub-Adviser”), an affiliate of Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”

At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at an in-person meeting in April 2018, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing investment performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.

In providing information to the Board, Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2018. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and investment performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.

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

Nature, extent and quality of services

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

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

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

Fund investment performance and expenses

The Board considered the investment performance results for the Fund over various time periods ended December 31, 2017. The Board considered these results in comparison to the investment performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the investment performance of the Fund (Class A) was higher than the average investment performance of the Universe for the ten-year period under review, but lower than the average investment performance of the Universe for the one-, three-, and five-year periods under review. The Board also noted that the investment performance of the Fund was higher than or in range of its benchmark index, the Bloomberg Barclays 6-Month Treasury Bill Index, for the five- and ten-year periods under review, but lower than its benchmark for the one-and three-year periods under review.

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

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

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

Investment management and sub-advisory fee rates

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

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

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

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

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

Other information (unaudited) Wells Fargo Adjustable Rate Government Fund 45

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of both WFAM and Wells Fargo & Co. (“Wells Fargo”) as a whole, from providing services to the Fund and the fund family as a whole. The Board noted that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the WFAM and Wells Fargo profitability analysis.

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

Economies of scale

The Board considered the extent to which Funds Management may experience economies of scale in the provision of management services, and the extent to which scale benefits, if any, would be shared with shareholders. In particular, the Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size. It considered that, for a small fund or a fund that shrinks in size, breakpoints conversely can result in higher fee levels. The Board also considered that in addition to management fee breakpoints, competitive management fee rates set at the outset without regard to breakpoints and fee waiver and expense reimbursement arrangements, as well as investments in the business intended to enhance services available to Fund shareholders, are means of sharing potential economies of scale with shareholders of the Fund.

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

Other benefits to Funds Management and the Sub-Adviser

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

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

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

Conclusion

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

46 Wells Fargo Adjustable Rate Government Fund Appendix A (unaudited)

SALES CHARGE REDUCTIONS AND WAIVERS FOR CERTAIN INTERMEDIARIES

Ameriprise

Effective June 1, 2018, shareholders purchasing Fund shares through an Ameriprise Financial platform or account will be eligible only for the following Class A load waivers (front-end sales charge waivers), which may differ from those disclosed elsewhere in the Fund’s prospectus or Statement of Additional Information.

Front-end Sales Load Waivers on Class A Shares Available at Ameriprise Financial

• Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs or SAR-SEPs.

• Shares purchased through an Ameriprise Financial investment advisory program (if an Advisory or similar share class for such investment advisory program is not available)

• Shares purchased by third party investment advisors on behalf of their advisory clients through Ameriprise Financial’s platform (if an Advisory or similar share class for such investment advisory program is not available)

• Shares purchased through reinvestment of distributions and dividend reinvestment when purchasing shares of the same Fund (but not any other fund within the same fund family)

• Shares exchanged from Class C shares of the same fund in the month of or following the 10-year anniversary of the purchase date. To the extent that the Fund’s prospectus elsewhere provides for a waiver with respect to such shares following a shorter holding period, that waiver will apply to exchanges following such shorter period. To the extent that the Fund’s prospectus elsewhere provides for a waiver with respect to exchanges of Class C shares for load-waived shares, that waiver will also apply to such exchanges.

• Employees and registered representatives of Ameriprise Financial or its affiliates and their immediate family members

• Shares purchased by or through qualified accounts (including IRAs, Coverdell Education Savings Accounts, 401(k)s, 403(b) TSCAs subject to ERISA and defined benefit plans) that are held by a covered family member, defined as an Ameriprise financial advisor and/or the advisor’s spouse, advisor’s lineal ascendant (mother, father, grandmother, grandfather, great grandmother, great grandfather), advisor’s lineal descendant (son, step-son, daughter, step-daughter, grandson, granddaughter, great grandson, great granddaughter) or any spouse of a covered family member who is a lineal descendant

• Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (i.e. Rights of Reinstatement). Subject to the Fund’s policy regarding frequent purchases and redemptions of Fund shares, you may not be able to repurchase shares for the first 30 days after your redemption.

Automatic Exchange of Class C Shares Available at Ameriprise Financial

• Class C shares will automatically exchange to Class A shares in the month of the 10-year anniversary of the purchase date.

Merrill Lynch

Effective April 10, 2017, shareholders purchasing Fund shares through a Merrill Lynch platform or account will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ from those disclosed elsewhere in the Fund’s prospectus or Statement of Additional Information.

Front-end Sales Load Waivers on Class A Shares available at Merrill Lynch

• Employer-sponsored retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan

• Shares purchased by or through a 529 Plan

• Shares purchased through a Merrill Lynch affiliated investment advisory program

Appendix A (unaudited) Wells Fargo Adjustable Rate Government Fund 47

• Shares purchased by third party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform

• Shares of funds purchased through the Merrill Edge Self-Directed platform (if applicable)

• Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the fund family)

• Shares exchanged from Class C (i.e. level-load) shares of the same fund in the month of or following the 10-year anniversary of the purchase date

• Employees and registered representatives of Merrill Lynch or its affiliates and their family members, as defined by Merrill Lynch, which may differ from the definition of family member in the Fund’s prospectus.

• Directors or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in the Fund’s prospectus

• Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (known as Rights of Reinstatement). Subject to the Fund’s policy regarding frequent purchases and redemptions of Fund shares, you may not be able to repurchase shares for the first 30 days after your redemption.

CDSC Waivers on A, B and C Shares available at Merrill Lynch

• Death or disability of the shareholder

• Shares sold as part of a systematic withdrawal plan as described in the Fund’s prospectus

• Return of excess contributions from an IRA Account

• Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 70½

• Shares sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch

• Shares acquired through a right of reinstatement

• Shares held in retirement brokerage accounts, that are exchanged for a lower cost share class due to transfer to certain fee based accounts or platforms (applicable to A and C shares only)

Front-end load Discounts Available at Merrill Lynch: Breakpoints, Rights of Accumulation & Letters of Intent

• Breakpoints as described in the Fund’s prospectus

• Rights of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.

• Letters of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over a 13-month period of time (if applicable)

Morgan Stanley

Effective on or about July 1, 2018, shareholders purchasing Fund shares through a Morgan Stanley Wealth Management transactional brokerage account will be eligible only for the following Class A load waivers (front-end sales charge waivers), which may differ from and be more limited than those disclosed in the Fund’s prospectus or Statement of Additional Information.

Front-end Sales Load Waivers on Class A Shares Available at Morgan Stanley

• Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans.

• Morgan Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules

• Shares purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund

• Shares purchased through a Morgan Stanley self-directed brokerage account

48 Wells Fargo Adjustable Rate Government Fund Appendix A (unaudited)

• Class C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are exchanged to Class A shares of the same fund pursuant to Morgan Stanley Wealth Management’s share class exchange program.

• Shares purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred sales charge. This waiver is subject to the Fund’s policy regarding frequent purchases and redemption of Fund shares, as discussed under “Account Information—Frequent Purchases and Redemptions of Fund Shares” in the Fund’s prospectus.

For more information

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

Wells Fargo Funds

P.O. Box 219967

Kansas City, MO 64121-9967

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 the trade name for certain investment advisory/management firms owned by Wells Fargo & Company. These firms include but are not limited to Wells Capital Management Incorporated and Wells Fargo Funds Management, LLC. Certain products managed by WFAM entities are distributed by Wells Fargo Funds Distributor, LLC (a broker/dealer and Member FINRA).

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.

315402 10-18 A215/AR215 08-18

Annual Report

August 31, 2018

Wells Fargo Conservative Income Fund

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	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	20
Report of independent registered public accounting firm	25
Other information	26

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

Andrew Owen

President

Wells Fargo Funds

After advancing during 2017, economic growth and stock markets globally diverged during the first eight months of 2018.

Dear Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Conservative Income Fund for the 12-month period that ended August 31, 2018. After advancing during 2017, economic growth and stock markets globally diverged during the first eight months of 2018. For fixed-income investors, taxable bond returns suffered and high-yield and municipal bond returns were positive.

For the period, U.S. stocks, as measured by the S&P 500 Index,¹ gained 19.66%, and international stocks, as measured by the MSCI ACWI ex USA Index (Net),² added 3.18%. Based on the MSCI EM Index (Net),³ emerging market stocks lost 0.68%. For bond investors, the Bloomberg Barclays U.S. Aggregate Bond Index⁴ declined 1.05% while the Bloomberg Barclays Global Aggregate ex-USD Index⁵ fell 1.64%. The Bloomberg Barclays Municipal Bond Index⁶ added 0.49%, and the ICE BofAML U.S. High Yield Index⁷ was up 3.26%.

Continued optimism in the U.S. characterized the fourth quarter of 2017.

Some observers described economic conditions in late 2017 as a Goldilocks scenario: synchronized global growth, low inflation, healthy corporate earnings, and a weaker U.S. dollar that supported international growth. During the quarter, the U.S. Bureau of Economic Analysis reported that annualized U.S. gross domestic product (GDP) growth for the third quarter of 2017 was 2.8% and inflation remained below U.S. Federal Reserve (Fed) targets. U.S. corporate earnings and consumer confidence improved.

Economic momentum increased in Europe. The Bank of England (BOE) raised interest rates in November 2017 to 0.50%, the first increase in more than 10 years, indicating confidence in the economy’s growth potential. Meanwhile, the European Central Bank and the Bank of Japan kept interest rates low to spur business activities and bought bonds in an effort to encourage equity investments. The People’s Bank of China’s (PBOC’s) policies sought to stimulate business. Many emerging market economies benefited from stronger currencies versus the U.S. dollar, while commodity price increases benefited countries that rely on natural resources for exports.

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 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.

⁶  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.

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 Conservative Income Fund 3

Volatility reemerged during the first quarter of 2018 as global tensions and inflation fears increased.

Stock market gains in January 2018 followed the passage of lower U.S. tax rates. Some investors then grew concerned about trade, particularly between the U.S. and China, and the specter of inflation. The Fed followed its 25-basis-point (bp; 100 bps equal 1.00%) federal funds rate increase in December 2017 with a further 25-bp increase in March 2018. The inflation rate in March reached the Fed’s 2% target for the first time in a year.

The S&P 500 Index closed the first quarter with a negative return, the first negative quarterly return for the index since 2014. Overseas investment markets reversed strong returns in 2017, hurt by a stronger U.S. dollar and mounting trade and diplomatic tensions. After gaining 27.19% for the 12-month period that ended December 31, 2017, the MSCI ACWI ex USA Index (Net) declined 1.81% for the quarter that ended March 31, 2018.

Global trade tensions escalated during the second quarter.

Global trade tensions escalated throughout the second quarter of 2018. The U.S. government imposed tariffs, and foreign governments in North America, Europe, and Asia retaliated. The escalating tensions chilled investment activity as observers awaited signals of next steps.

Meanwhile, inflation continued an upward trend. The CPI-U⁸ added 0.1% in June after increases of 0.2% in both April and May. On a year-over-year basis, the all-items index rose 2.9% for the 12 months that ended June 30, 2018. The index for all items less food and energy rose 2.3% for the same 12-month period.

U.S. stocks gained while international stocks and bonds declined during the summer of 2018.

The U.S. economy strengthened during the summer months. Revised second-quarter GDP data released in August showed the U.S. economy growing at a 4.2% rate. After ticking up slightly in June, the unemployment rate in the U.S. was 3.9% in July and August, according to the U.S. Department of Labor. Wages showed more consistent growth than they had in recent quarters, and consumer confidence remained strong.

Several U.S. equity market indices reached records during August, with the S&P 500 Index gaining 7.76% for the three-month period that ended August 31, 2018. International stock values continued to suffer under the effects of a strong U.S. dollar and continuing trade tensions. The MSCI ACWI ex USA Index (Net) and the MSCI EM Index (Net) were down 4.70% and 1.64%, respectively, during the same three-month period.

The Fed increased the federal funds rate in June, and expectations grew that two more rate increases were in the offing in 2018. Long-term interest rates in the U.S. remained at higher levels relative to the prior 10 years. Rates on 10-year and 30-year Treasury bonds—2.46% and 2.81%, respectively, on January 1, 2018—were 2.86% and 3.02%, respectively, on August 31, off their peak levels on May 17, 2018, of 3.11% and 3.25%, respectively. Some investors became more aware of and concerned about the potential for an inverted yield curve—sometimes a recession signal—as short-term rates increased more quickly than long-term rates. The Fed decided to forgo an interest rate increase at its August meeting.

The S&P 500 Index closed the first quarter with a negative return, the first negative quarterly return for the index since 2014.

⁸  The Consumer Price Index for All Urban Consumers (CPI-U) measures the changes in the price of a basket of goods and services purchased by urban consumers. The urban consumer population is deemed by many as a better representative measure of the general public because close to 90% of the country’s population lives in highly populated areas. You cannot invest directly in an index.

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

Internationally, members of Prime Minister Theresa May’s U.K./Brexit negotiating team resigned amid unproductive negotiations. In early August, the BOE’s Monetary Policy Committee increased its key interest rate to 0.75%. Central banks in Europe and Japan maintained low interest rates and accommodative monetary policies. Amid rising trade uncertainty, the PBOC cut reserve requirement ratios and accelerated infrastructure spending and tax cuts for business enterprises and individuals. Nevertheless, a strengthening U.S. dollar and the trade tensions remained headwinds for investors overseas.

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 Conservative Income Fund Performance highlights (unaudited)

Investment objective

The Fund seeks current income consistent with capital preservation.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Andrew M. Greenberg, CFA^®

Anthony J. Melville, CFA^®

Jeffrey L. Weaver, CFA^®

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

									Expense ratios1 (%)
	Inception date	1 year		5 year		Since inception			Gross		Net2
Institutional Class (WCIIX)	5-31-2013		1.65		0.93		0.89			0.36		0.27
Bloomberg Barclays 6-9 Month Treasury Bill Index3	–		1.29		0.50		0.48	*		–		–

* Based on the inception date of Institutional Class.

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

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

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

Bond values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest rate changes and their impact on the Fund and its share price can be sudden and unpredictable. The use of derivatives may reduce returns and/or increase volatility. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to foreign investment risk, mortgage- and asset-backed securities risk, and municipal securities risk. Consult the Fund’s prospectus for additional information on these and other risks.

Please see footnotes on page 7.

Performance highlights (unaudited) Wells Fargo Conservative Income Fund 7

Growth of $1,000,000 investment as of August 31, 2018⁴

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

²  The manager has contractually committed through December 31, 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 amount shown. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses (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 prospectus.

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

⁴  The chart compares the performance of Institutional Class shares since inception with the performance of the Bloomberg Barclays 6-9 Month Treasury Bill Index. The chart assumes a hypothetical investment of $1,000,000 in Institutional Class shares and reflects all operating expenses.

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

⁶  The 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.

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 Conservative Income Fund Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

∎ The Fund outperformed its benchmark, the Bloomberg Barclays 6–9 Month Treasury Bill Index, for the 12-month period that ended August 31, 2018.

∎ The Fund is primarily invested in securities with a yield advantage over Treasuries, which added to performance. Corporate notes were the best-performing asset class within the portfolio, followed by commercial paper and asset-backed securities (ABS).

∎ The Fund maintained a shorter duration throughout the past 12 months to minimize both interest rate risk and the volatility of the Fund’s net asset value (NAV).

Ten largest holdings (%) as of August 31, 20185
Master Credit Card Trust Series 2017-1A Class A, 2.26%, 7-21-2021	1.86
World Omni Auto Receivables Trust Series 2018-C Class A2, 2.80%, 1-18-2022	1.75
Barclays Dryrock Issuance Trust Series 2014-3 Class A, 2.41%, 7-15-2022	1.74
Verizon Owner Trust Series 2017-2A Class A, 1.92%, 12-20-2021	1.60
Sumitomo Mitsui Trust Bank Limited, 3.24%, 10-18-2019	1.51
Santander UK plc, 2.92%, 6-1-2021	1.51
Bank of Montreal, 2.80%, 4-13-2021	1.51
Colorado Tender Option Bond Trust Receipts/Certificates Series 2017-TPG007, 2.60%, 10-29-2027	1.50
CarMax Auto Owner Trust Series 2018-3 Class A2A, 2.88%, 10-15-2021	1.49
Ally Auto Receivables Trust Series 2017-3 Class A3, 1.74%, 9-15-2021	1.49

Yield-advantaged sectors added value.

The largest allocation of the Fund was to corporate bonds. For the 12-month period that ended August 31, 2018, the segment of the Bloomberg Barclays U.S. Aggregate Bond Index⁶ that comprises one- to three-year credits rated A to AAA returned 34 basis points (bps; 100 bps equal 1.00%) of excess return versus comparable-maturity Treasuries, while the segment of the Bloomberg Barclays U.S. Aggregate Bond Index that comprises zero to three-year floating-rate note credits rated A to AAA had an excess return of 85 bps.

The Fund’s sector allocation changed during the year. The allocation to fixed-rate corporate positions decreased by 16%. These assets were redeployed to commercial paper in order to shorten the duration of the Fund. Floating-rate corporate exposure remained unchanged at 30%, and those securities were top performers as the London Interbank Offered Rate (LIBOR) increased by approximately 100 bps during the year. The increase in LIBOR translated into higher coupon resets of the floating-rate notes, many of which reset every quarter.

The Fund maintained significant exposure to AAA-rated ABS throughout the year. The Fund held both fixed-and floating-rate short-dated tranches (one-year weighted average life) across ABS sectors, with particular emphasis on senior classes in equipment and prime auto lease issuers. Sector fundamentals have been strong, and we continue to view the ABS sector as a defensive and liquid component of the Fund with a favorable profile.

Portfolio allocation as of August 31, 2018⁷

We kept duration relatively short due to concerns about higher interest rates.

The U.S. Federal Reserve (Fed) increased the federal funds rate by 25 bps three times during the reporting period, which caused short-term interest rates to move dramatically higher. During the 12-month period that ended August 31, 2018, 1-year Treasury bill yields rose 118 bps to yield 2.45%, 2-year Treasury note yields rose 128 bps to yield 2.63%, and 3-year Treasury note yields rose 123 bps to yield 2.69%.

Please see footnotes on page 7.

Performance highlights (unaudited) Wells Fargo Conservative Income Fund 9

The Fund’s duration was shortened to 0.33 years from 0.42 years during the period. We expect to maintain the Fund’s duration with a similar target going forward due to the expectation that rates will continue to move higher.

We see opportunities ahead.

Looking forward, we believe the Fed will likely raise the federal funds rate by 25 bps two more times in 2018. In addition, we expect several more rate hikes in 2019. The corporate bond market is both technically and fundamentally strong. Larger-than-anticipated issuance in the month of August was easily absorbed, especially bonds with maturities shorter than three years.

Going forward, we expect second-half 2018 corporate bond issuance to be less than the first half of the year, with full-year 2018 issuance to be lower than 2017. ABS issuance increased in the first half of 2018 compared with the first half of 2017, resulting in more attractive spreads in the new-issue market compared with the secondary market. Increased demand for commercial paper, primarily from prime money market funds, put downward pressure on commercial paper rates. However, Fed rate hikes and increased Treasury bill issuance in the fourth quarter are expected to put upward pressure on commercial paper rates, which should contribute to the portfolio’s performance.

The duration of the Fund will likely be positioned in a conservative manner in an effort to minimize the volatility of its NAV. We continue to rely on our significant credit research capabilities to potentially avoid credit downgrades from companies that are likely to leverage their balance sheets as the result of merger and acquisition activity.

Please see footnotes on page 7.

10 Wells Fargo Conservative Income Fund Fund expenses (unaudited)

As a shareholder of the Fund, you incur ongoing costs including management fees and other Fund expenses, This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from March 1, 2018 to August 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. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds.

	Beginning account value 3-1-2018		Ending account value 8-31-2018		Expenses paid during the period¹		Annualized net expense ratio
Institutional Class
Actual	$	1,000.00	$	1,010.86	$	1.37		0.27	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.84	$	1.38		0.27	%

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

Portfolio of investments—August 31, 2018 Wells Fargo Conservative Income Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Asset-Backed Securities: 24.14%
Ally Auto Receivables Trust Series 2017-3 Class A3		1.74	%		9-15-2021	$	6,000,000	$	5,944,530
Ally Auto Receivables Trust Series 2018-2 Class A1		2.30			5-15-2019		2,199,367		2,199,335
Barclays Dryrock Issuance Trust Series 2014-3 Class A		2.41			7-15-2022		7,000,000		6,970,901
CarMax Auto Owner Trust Series 2017-1 Class A3		1.98			11-15-2021		500,000		496,016
CarMax Auto Owner Trust Series 2018-3 Class A2A		2.88			10-15-2021		5,950,000		5,951,712
CCG Receivables Trust Series 2018-2 Class A2 144A		3.09			12-15-2025		4,460,000		4,459,479
Daimler Trucks Retail Trust Series 2018-1 Class A1 144A		2.20			4-15-2019		240,650		240,618
Dell Equipment Finance Trust Series 2018-1 Class A2A 144A		2.97			10-22-2020		1,250,000		1,251,131
GM Financial Automobile Leasing Trust Series 2011-1 Class A2A		2.39			4-20-2020		2,873,760		2,866,737
GM Financial Automobile Leasing Trust Series 2018-2 Class A2A		2.83			7-20-2020		3,600,000		3,601,543
Golden Credit Card Trust Series 2016-5A Class A 144A		1.60			9-15-2021		2,000,000		1,973,712
Golden Credit Card Trust Series 2017-2A Class A 144A		1.98			4-15-2022		5,000,000		4,915,326
Hertz Fleet Lease Funding LP Series 2017-1 Class A1 (1 Month LIBOR +0.65%) 144A±		2.71			4-10-2031		1,776,295		1,778,479
Honda Auto Receivables Owner Trust Series 2018-1 Class A2		2.36			6-15-2020		2,000,000		1,997,820
Honda Auto Receivables Owner Trust Series 2018-2 Class A2		2.66			12-18-2020		1,000,000		999,619
Hyundai Auto Lease Securitization Trust Series 2017-B Class A3 144A		1.97			7-15-2020		1,650,000		1,638,828
Hyundai Auto Lease Securitization Trust Series 2018-B Class A2 144A		2.81			12-15-2020		5,000,000		4,998,427
Kubota Credit Owner Trust Series 2018-1A Class A1 144A		2.37			5-15-2019		3,260,039		3,260,124
Master Credit Card Trust Series 2017-1A Class A 144A		2.26			7-21-2021		7,500,000		7,421,788
Nissan Auto Receivables Owner Trust Series 2015-A Class A4		1.50			9-15-2021		3,000,000		2,987,679
Oscar US Funding Trust Series 2016-2A Class A2A 144A		2.31			11-15-2019		101,050		101,021
Oscar US Funding Trust Series 2017-1A Class A2B (1 Month LIBOR +0.80%) 144A±		2.86			5-11-2020		1,073,850		1,075,057
Oscar US Funding Trust Series 2017-2A Class A2A 144A		2.13			11-10-2020		404,693		403,062
Oscar US Funding Trust Series 2018-1A Class A2B (1 Month LIBOR +0.49%) 144A±		2.55			4-12-2021		2,000,000		2,002,076
Oscar US Funding Trust Series 2018-2A Class A2A 144A		3.15			8-10-2021		3,645,000		3,647,770
Securitized Term Auto Receivables Trust Series 2017-2A Class A2A 144A		1.78			1-27-2020		1,764,785		1,759,686
Tesla Auto Lease Trust Series 2018-A Class A 144A		2.32			12-20-2019		1,087,059		1,083,788
Tesla Auto Lease Trust Series 2018-A Class C 144A		2.97			4-20-2020		1,870,000		1,862,426
Verizon Owner Trust Series 2017-1A Class A 144A		2.06			9-20-2021		1,000,000		991,239
Verizon Owner Trust Series 2017-2A Class A 144A		1.92			12-20-2021		6,500,000		6,416,452
Volkswagen Auto Loan Enhanced Trust Series 2018-1 Class A2A		2.81			7-20-2021		4,250,000		4,254,967
World Omni Auto Receivables Trust Series 2018-C Class A2		2.80			1-18-2022		7,000,000		7,002,250
Total Asset-Backed Securities (Cost $96,589,441)									96,553,598
Corporate Bonds and Notes: 15.69%
Financials: 15.69%
Banks: 4.76%
Bank of America Corporation (3 Month LIBOR +0.25%) ±		2.56			8-28-2020		3,000,000		3,001,848
Citibank NA (3 Month LIBOR +0.57%) ±		2.92			7-23-2021		5,500,000		5,528,078
Cooperatieve Rabobank UA (3 Month LIBOR +0.43%) ±		2.76			4-26-2021		3,000,000		3,004,293
Credit Suisse		2.30			5-28-2019		1,000,000		997,508
JPMorgan Chase Bank NA (3 Month LIBOR +0.23%) ±		2.55			9-1-2020		2,500,000		2,501,170
JPMorgan Chase Bank NA (3 Month LIBOR +0.34%) ±		2.67			4-26-2021		4,000,000		4,003,472
									19,036,369
Capital Markets: 2.51%
Goldman Sachs Group Incorporated (3 Month LIBOR +1.04%) ±		3.38			4-25-2019		4,000,000		4,023,207
Morgan Stanley (3 Month LIBOR +0.85%) ±		3.19			1-24-2019		1,000,000		1,003,134
Morgan Stanley (3 Month LIBOR +1.38%) ±		3.72			2-1-2019		5,000,000		5,026,326
									10,052,667

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

12 Wells Fargo Conservative Income Fund Portfolio of investments—August 31, 2018

Security name	Interest rate			Maturity date		Principal		Value
Consumer Finance: 3.59%
BMW US Capital LLC (3 Month LIBOR +0.41%) 144A±		2.75	%		9-13-2019	$	2,000,000	$	2,006,868
BMW US Capital LLC (3 Month LIBOR +0.50%) 144A±		2.82			8-13-2021		2,325,000		2,333,251
Daimler Finance North America LLC (3 Month LIBOR +0.53%) 144A±		2.87			5-5-2020		4,000,000		4,013,261
Nissan Motor Acceptance Corporation (3 Month LIBOR +0.52%) 144A±		2.86			3-15-2021		3,000,000		3,006,986
Nissan Motor Acceptance Corporation (3 Month LIBOR +1.01%) 144A±		3.33			3-8-2019		3,000,000		3,013,315
									14,373,681
Insurance: 4.83%
AIG Global Funding (3 Month LIBOR +0.46%) 144A±		2.80			6-25-2021		2,950,000		2,955,223
Jackson National Life Insurance Company (3 Month LIBOR +0.48%) 144A±		2.81			6-11-2021		2,525,000		2,530,365
Metropolitan Life Global Funding I (3 Month LIBOR +0.22%) 144A±		2.55			9-19-2019		3,000,000		3,005,414
Metropolitan Life Global Funding I (3 Month LIBOR +0.40%) 144A±		2.73			6-12-2020		3,000,000		3,014,948
New York Life Global Funding (3 Month LIBOR +0.32%) 144A±		2.66			8-6-2021		1,950,000		1,954,037
Protective Life Global Funding (3 Month LIBOR +0.52%) 144A±		2.86			6-28-2021		5,000,000		5,013,196
The Allstate Corporation (3 Month LIBOR +0.43%) ±		2.76			3-29-2021		825,000		826,011
									19,299,194
Total Corporate Bonds and Notes (Cost $62,573,583)									62,761,911
Municipal Obligations: 3.04%
Colorado: 1.50%
Health Revenue: 1.50%
Colorado Tender Option Bond Trust Receipts/Certificates Series 2017-TPG007 (Bank of America NA LIQ) 144Aø		2.60			10-29-2027		6,000,000		6,000,000
Kentucky: 1.17%
GO Revenue: 1.17%
Louisville Jefferson County KY Metropolitan Government Series A		1.95			12-1-2018		4,690,000		4,683,997
Texas: 0.37%
GO Revenue: 0.37%
Houston TX Taxable Pension Obligation Bonds Series 2017		2.20			3-1-2019		1,500,000		1,496,865
Total Municipal Obligations (Cost $12,190,000)									12,180,862
Non-Agency Mortgage-Backed Securities: 1.25%
NextGear Floorplan Master Trust Series 2018-1A Class A1 (1 Month LIBOR +0.64%) 144A±		2.71			2-15-2023		5,000,000		5,007,564
Total Non-Agency Mortgage-Backed Securities (Cost $5,000,000)									5,007,564
Yankee Corporate Bonds and Notes: 18.71%
Financials: 18.71%
Banks: 17.12%
ABN AMRO Bank NV 144A		2.10			1-18-2019		3,000,000		2,993,184
ABN AMRO Bank NV (3 Month LIBOR +0.57%) 144A±		2.88			8-27-2021		2,675,000		2,681,150
Bank of Montreal (3 Month LIBOR +0.46%) ±		2.80			4-13-2021		6,000,000		6,028,657
Barclays Bank plc (3 Month LIBOR +0.46%) ±		2.79			1-11-2021		5,000,000		5,004,657
Barclays Bank plc		6.75			5-22-2019		1,400,000		1,438,635

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

Portfolio of investments—August 31, 2018 Wells Fargo Conservative Income Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Banks (continued)
BNP Paribas		2.45	%		3-17-2019	$	4,246,000	$	4,244,667
BNZ International Funding of London (3 Month LIBOR +0.70%) 144A±		3.01			2-21-2020		1,750,000		1,761,750
Commonwealth Bank of Australia (3 Month LIBOR +0.40%) 144A±		2.73			9-18-2020		3,000,000		3,007,673
HSBC Holdings plc (3 Month LIBOR +0.60%) ±		2.92			5-18-2021		3,940,000		3,951,744
Mitsubishi UFJ Financial Group Incorporated (3 Month LIBOR +0.65%) ±		2.98			7-26-2021		4,000,000		4,018,567
National Australia Bank (3 Month LIBOR +0.35%) 144A±		2.69			1-12-2021		2,000,000		2,001,891
Rabobank Nederland NV (3 Month LIBOR +0.51%) ±		2.85			8-9-2019		3,000,000		3,012,749
Santander UK plc (3 Month LIBOR +0.62%) ±		2.92			6-1-2021		6,000,000		6,031,339
Sumitomo Mitsui Banking Corporation (3 Month LIBOR +0.31%) ±		2.64			10-18-2019		2,600,000		2,603,744
Sumitomo Mitsui Banking Corporation (3 Month LIBOR +0.35%) ±		2.69			1-17-2020		3,000,000		3,007,458
Sumitomo Mitsui Trust Bank Limited (3 Month LIBOR +0.91%) 144A±		3.24			10-18-2019		6,000,000		6,046,750
Svenska Handelsbanken AB (3 Month LIBOR +0.47%) ±		2.78			5-24-2021		5,500,000		5,517,765
The Bank of Nova Scotia (3 Month LIBOR +0.29%) ±		2.63			1-8-2021		1,000,000		999,553
United Overseas Bank Limited (3 Month LIBOR +0.48%) 144A±		2.83			4-23-2021		1,800,000		1,803,202
Westpac Banking Corporation (3 Month LIBOR +0.28%) ±		2.59			5-15-2020		2,325,000		2,328,389
									68,483,524
Capital Markets: 0.90%
Siemens Financieringsmaatschappij NV 144A		2.20			3-16-2020		1,500,000		1,482,413
Siemens Financieringsmaatschappij NV (3 Month LIBOR +0.32%) 144A±		2.65			9-13-2019		2,110,000		2,116,467
									3,598,880
Diversified Financial Services: 0.69%
UBS AG (3 Month LIBOR +0.48%) 144A±		2.80			12-1-2020		2,750,000		2,754,392
Total Yankee Corporate Bonds and Notes (Cost $74,608,079)									74,836,796
Yankee Government Bonds: 1.30%
Export-Import Bank of Korea		2.88			9-17-2018		1,200,000		1,199,980
Export-Import Bank of Korea (3 Month LIBOR +0.70%) ±		3.01			5-26-2019		4,000,000		4,005,952
Total Yankee Government Bonds (Cost $5,200,439)									5,205,932
Short-Term Investments: 37.32%
Commercial Paper: 37.29%
American Honda Finance Corporation (z)		2.01			10-23-2018		10,000,000		9,969,083
Antalis SA 144A(z)(p)		2.45			1-10-2019		3,000,000		2,974,062
Apple Incorporated 144A(z)		1.90			10-11-2018		2,530,000		2,524,237
Atlantic Asset Securitization LLC 144A(z)(p)		2.11			10-9-2018		2,550,000		2,544,215
Atlantic Asset Securitization LLC (z)(p)		2.26			11-16-2018		2,750,000		2,736,860
CDP Financial Incorporated 144A(z)		2.04			10-26-2018		5,000,000		4,983,846
CNPC Finance Hong Kong Limited 144A(z)		0.73			9-6-2018		9,800,000		9,796,572
CNPC Finance Hong Kong Limited 144A(z)		2.10			9-4-2018		2,500,000		2,499,418
CRC Funding LLC 144A(z)(p)		0.97			9-7-2018		6,000,000		5,997,713
CRC Funding LLC 144A(z)(p)		2.17			12-3-2018		4,000,000		3,976,228
Crown Point Capital Company LLC 144A(z)(p)		2.13			10-12-2018		1,650,000		1,645,915
Grand China Air Limited Hong Kong Limited (z)		1.16			9-7-2018		1,850,000		1,849,284
Grand China Air Limited Hong Kong Limited (z)		1.87			9-13-2018		3,150,000		3,147,716
Great Bridge Capital Company LLC 144A(z)(p)		1.92			10-3-2018		1,500,000		1,497,085
Kaiser Foundation Hospitals (z)		0.78			9-6-2018		8,300,000		8,297,027

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

14 Wells Fargo Conservative Income Fund Portfolio of investments—August 31, 2018

Security name	Interest rate			Maturity date		Principal		Value
Commercial Paper (continued)
La Fayette Asset Securitization LLC 144A(z)(p)		0.90	%		9-7-2018	$	10,500,000	$	10,495,937
Lexington Parker Capital Company LLC 144A(z)(p)		0.91			9-7-2018		7,000,000		6,997,265
LMA Americas LLC 144A(z)(p)		1.53			9-12-2018		2,500,000		2,498,363
LMA Americas LLC 144A(z)(p)		2.27			12-6-2018		5,000,000		4,969,162
Metlife Funding Incorporated (z)		1.99			11-14-2018		5,000,000		4,977,604
Mountcliff Funding 144A(z)(p)		1.34			9-10-2018		11,000,000		10,993,892
National Securities Clearing Corporation 144A(z)		1.98			10-12-2018		1,800,000		1,795,737
Old Line Funding LLC (1 Month LIBOR +0.20%) 144A±(p)		2.27			11-9-2018		7,000,000		7,002,835
Ontario Teachers’ Finance Trust 144A(z)		2.30			10-29-2018		6,000,000		5,978,986
Thunder Bay Funding LLC 144A(z)(p)		2.14			10-22-2018		10,300,000		10,268,266
Total Capital Canada Limited 144A(z)		1.97			10-16-2018		7,800,000		7,779,160
Total Capital Canada Limited 144A(z)		2.02			10-24-2018		3,000,000		2,990,388
Toyota Industries Commercial Finance Incorporated (z)		1.77			9-24-2018		5,000,000		4,993,520
Victory Receivables Corporation 144A(z)(p)		1.81			10-2-2018		3,000,000		2,994,507
									149,174,883
	Yield					Shares
Investment Companies: 0.03%
Wells Fargo Government Money Market Fund Select Class (l)(u)		1.87					96,943		96,943
Total Short-Term Investments (Cost $149,288,069)									149,271,826

Total investments in securities (Cost $405,449,611)	101.45	%		405,818,489
Other assets and liabilities, net	(1.45	)		(5,816,131	)
Total net assets	100.00	%	$	400,002,358

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

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

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

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

(p) Asset-backed commercial paper

(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.

Abbreviations:

GO General obligation

LIBOR London Interbank Offered Rate

LIQ Liquidity agreement

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

Portfolio of investments—August 31, 2018 Wells Fargo Conservative Income Fund 15

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		275,037		214,328,174		214,506,268		96,943	$	0	$	0	$	17,300	$	96,943		0.03	%

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

16 Wells Fargo Conservative Income Fund Statement of assets and liabilities—August 31, 2018

Assets
Investments in unaffiliated securities, at value (cost $405,352,668)	$	405,721,546
Investments in affiliated securities, at value (cost $96,943)		96,943
Receivable for investments sold		1,891,184
Receivable for interest		851,613
Prepaid expenses and other assets		53,499
Total assets		408,614,785
Liabilities
Payable for Fund shares redeemed		8,412,769
Dividends payable		102,031
Management fee payable		45,372
Administration fee payable		31,023
Trustees’ fees and expenses payable		1,982
Accrued expenses and other liabilities		19,250
Total liabilities		8,612,427
Total net assets	$	400,002,358
NET ASSETS CONSIST OF
Paid-in capital	$	400,406,231
Undistributed net investment income		4,184
Accumulated net realized losses on investments		(776,935	)
Net unrealized gains on investments		368,878
Total net assets	$	400,002,358
COMPUTATION OF NET ASSET VALUE PER SHARE
Net assets – Institutional Class	$	400,002,358
Shares outstanding – Institutional Class1		40,033,643
Net asset value per share – Institutional Class		$9.99

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 August 31, 2018 Wells Fargo Conservative Income Fund 17

Investment income
Interest (net of foreign interest withholding taxes of $1,106)	$	9,702,101
Income from affiliated securities		17,300
Total investment income		9,719,401
Expenses
Management fee		1,181,951
Administration fee
Institutional Class		378,224
Custody and accounting fees		29,436
Professional fees		45,082
Registration fees		64,889
Shareholder report expenses		8,603
Trustees’ fees and expenses		18,731
Other fees and expenses		6,182
Total expenses		1,733,098
Less: Fee waivers and/or expense reimbursements		(456,592	)
Net expenses		1,276,506
Net investment income		8,442,895
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized losses on investments		(776,935	)
Net change in unrealized gains (losses) on investments		(313,636	)
Net realized and unrealized gains (losses) on investments		(1,090,571	)
Net increase in net assets resulting from operations	$	7,352,324

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

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

	Year ended August 31, 2018						Year ended August 31, 2017
Operations
Net investment income				$	8,442,895					$	5,763,414
Net realized gains (losses) on investments					(776,935	)					376,009
Net change in unrealized gains (losses) on investments					(313,636	)��					(76,758	)
Net increase in net assets resulting from operations					7,352,324						6,062,665
Distributions to shareholders from
Net investment income
Institutional Class					(8,443,388	)					(5,765,706	)
Net realized gains
Institutional Class					(148,163	)					0
Total distributions to shareholders					(8,591,551	)					(5,765,706	)
Capital share transactions		Shares						Shares
Proceeds from shares sold – Institutional Class		50,241,480			502,485,302			32,361,100			323,882,718
Reinvestment of distributions – Institutional Class		739,437			7,389,754			500,446			5,007,754
Payment for shares redeemed – Institutional Class		(52,808,731	)		(527,872,511	)		(45,740,798	)		(457,777,428	)
Net decrease in net assets resulting from capital share transactions					(17,997,455	)					(128,886,956	)
Total decrease in net assets					(19,236,682	)					(128,589,997	)
Net assets
Beginning of period					419,239,040						547,829,037
End of period				$	400,002,358					$	419,239,040
Undistributed net investment income				$	4,184					$	5,094

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

Financial highlights Wells Fargo Conservative Income Fund 19

(For a share outstanding throughout each period)

	Year ended August 31
INSTITUTIONAL CLASS	2018			2017			2016			2015			2014
Net asset value, beginning of period		$10.01			$10.01			$10.00			$10.02			$9.99
Net investment income		0.18			0.12			0.07			0.05			0.04
Net realized and unrealized gains (losses) on investments		(0.02	)		0.00	1		0.01			(0.02	)		0.03
Total from investment operations		0.16			0.12			0.08			0.03			0.07
Distributions to shareholders from
Net investment income		(0.18	)		(0.12	)		(0.07	)		(0.05	)		(0.04	)
Net realized gains		(0.00	)1		0.00			0.00			(0.00	)1		(0.00	)1
Total distributions to shareholders		(0.18	)		(0.12	)		(0.07	)		(0.05	)		(0.04	)
Net asset value, end of period		$9.99			$10.01			$10.01			$10.00			$10.02
Total return		1.65	%		1.20	%		0.79	%		0.28	%		0.74	%
Ratios to average net assets (annualized)
Gross expenses		0.37	%		0.36	%		0.36	%		0.38	%		0.43	%
Net expenses		0.27	%		0.27	%		0.27	%		0.27	%		0.27	%
Net investment income		1.79	%		1.17	%		0.72	%		0.48	%		0.44	%
Supplemental data
Portfolio turnover rate		197	%		197	%		269	%		80	%		55	%
Net assets, end of period (000s omitted)		$400,002			$419,239			$547,829			$336,608			$143,418

¹  Amount is less than $0.005.

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

20 Wells Fargo Conservative Income 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 (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Wells Fargo Conservative Income Fund (the “Fund”) which is a diversified series of the Trust.

2. SIGNIFICANT ACCOUNTING POLICIES

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

Securities valuation

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

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

Futures contracts that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price.

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

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

When-issued transactions

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

Futures contracts

The Fund is subject to interest rate risk in the normal course of pursuing its investment objectives. Futures contracts are agreements between the Fund and a counterparty to buy or sell a specific amount of a commodity, financial instrument or currency at specified price and on a specified date. The Fund may buy and sell futures contracts in order to gain exposure to, or protect against, changes in interest rates. The primary risks associated with the use of futures contracts are the imperfect correlation between changes in market values of securities held by the Fund and the prices of futures

Notes to financial statements Wells Fargo Conservative Income Fund 21

contracts, and the possibility of an illiquid market. Futures contracts are generally entered into on a regulated futures exchange and cleared through a clearinghouse associated with the exchange. With futures contracts, there is minimal counterparty risk to the Fund since futures contracts are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures contracts against default.

Upon entering into a futures contracts, the Fund is required to deposit either cash or securities (initial margin) with the broker in an amount equal to a certain percentage of the contract value. Subsequent payments (variation margin) are paid to or from the broker each day equal to the daily changes in the contract value. Such payments are recorded as unrealized gains or losses and, if any, shown as variation margin receivable (payable) in the Statement of Assets and Liabilities. Should the Fund fail to make requested variation margin payments, the broker can gain access to the initial margin to satisfy the Fund’s payment obligations. When the contracts are closed, a realized gain or loss is recorded in 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.

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.

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

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

As of August 31, 2018, the aggregate cost of all investments for federal income tax purposes was $405,454,355 and the unrealized gains (losses) consisted of:

Gross unrealized gains	$	454,694
Gross unrealized losses		(90,560	)
Net unrealized gains	$	364,134

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 August 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
$(417)	$417

22 Wells Fargo Conservative Income Fund Notes to financial statements

As of August 31, 2018, the Fund had a capital loss carryforward which consisted of $772,191 in short-term capital losses.

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 August 31, 2018:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Asset-backed securities	$	0	$	96,553,598	$	0	$	96,553,598
Corporate bonds and notes		0		62,761,911		0		62,761,911
Municipal obligations		0		12,180,862		0		12,180,862
Non-agency mortgage-backed securities				5,007,564		0		5,007,564
Yankee corporate bonds and notes		0		74,836,796		0		74,836,796
Yankee government bonds		0		5,205,932		0		5,205,932
Short-term investments
Commercial paper		0		149,174,883		0		149,174,883
Investment companies		96,943		0		0		96,943
Total assets	$	96,943	$	405,721,546	$	0	$	405,818,489

Additional sector, industry or geographic detail is included in the Portfolio of Investments.

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At August 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 & 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 and providing fund-level administrative services in connection with the Fund’s operations. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.25% and declining to 0.18% as the average daily net assets of the Fund increase. For the year ended August 31, 2018, the management fee was equivalent to an annual rate of 0.25% of the Fund’s average daily net assets.

Notes to financial statements Wells Fargo Conservative Income Fund 23

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

Administration 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 of 0.08% which is calculated based on the average daily net assets of the Institutional Class.

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. When each class of the Fund has exceeded its expense cap, Funds Management has waived fees and/or reimbursed expenses from fund level expenses on a proportionate basis and then from class specific expenses; otherwise, waivers and/or reimbursements are applied against class specific expenses before fund level expenses. Funds Management has committed through December 31, 2018 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.27% for Institutional Class shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

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 August 31, 2018 were $664,190,489 and $766,510,974, respectively.

6. BANK BORROWINGS

The Trust (excluding the money market funds), Wells Fargo Master Trust 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.

For the year ended August 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 August 31, 2018 and August 31, 2017 were as follows:

	Year ended August 31
	2018		2017
Ordinary income	$	8,572,794	$	5,765,706
Long-term capital gain		18,757		0

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

Undistributed ordinary income	Unrealized gains	Capital loss carryforward
$106,215	$364,134	$(772,191)

24 Wells Fargo Conservative Income Fund Notes to financial statements

8. INDEMNIFICATION

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

9. NEW ACCOUNTING PRONOUNCEMENTS AND REGULATORY CHANGES

On August 17, 2018, the Securities and Exchange Commission (“SEC”) adopted Disclosure Update and Simplification, which amends certain disclosure requirements. The amendments are effective for filings subsequent to November 5, 2018. Management expects these amendments will impact the classification of disclosures in the financial statements.

In August 2018, FASB issued Accounting Standards Update (“ASU”) No. 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 updates the disclosure requirements for fair value measurements by modifying or removing certain disclosures and adding certain new disclosures. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. Management is currently evaluating the potential impact of this new guidance to the financial statements.

In March 2017, FASB issued ASU No. 2017-08, Premium Amortization on Purchased Callable Debt Securities. ASU 2017-08 shortens the amortization period for certain callable debt securities held at a premium. The amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 is effective for fiscal years beginning after December 15, 2018 and for interim periods within those fiscal years. Management is currently evaluating the potential impact of this new guidance to the financial statements.

Report of independent registered public accounting firm Wells Fargo Conservative Income Fund 25

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 Wells Fargo Conservative Income Fund (the “Fund”), including the portfolio of investments, as of August 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 August 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 August 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

October 26, 2018

26 Wells Fargo Conservative Income Fund Other information (unaudited)

TAX INFORMATION

Pursuant to Section 852 of the Internal Revenue Code, $18,757 was designated as a 20% rate gain distribution for the fiscal year ended August 31, 2018.

For the fiscal year ended August 31, 2018, $5,784,199 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 August 31, 2018, $128,989 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 Conservative Income Fund 27

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 154 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 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.	N/A
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 The Ruth Bancroft Garden (non-profit organization). She is also an inactive Chartered Financial Analyst.	N/A
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 (private school). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	CIGNA Corporation
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, since 2009	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.	N/A
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.	N/A

28 Wells Fargo Conservative Income Fund Other information (unaudited)

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
Olivia S. Mitchell (Born 1953)	Trustee, since 2006; 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.	N/A
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.	N/A
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.	N/A
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.	N/A
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, on the Board of Directors, Governance Committee and Finance Committee for the Minnesota Philanthropy Partners (Saint Paul Foundation) from 2012 to 2018, 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 the Board Chair of the Minnesota Wild Foundation since 2010.	N/A

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

Other information (unaudited) Wells Fargo Conservative Income Fund 29

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 Kymn3 (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.
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 77 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.

³  Alexander Kymn became the Secretary and Chief Legal Officer effective April 17, 2018.

30 Wells Fargo Conservative Income Fund Other information (unaudited)

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Wells Fargo Conservative Income Fund

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at an in-person meeting held on May 22-23, 2018 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for Wells Fargo Conservative Income Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Wells Capital Management Incorporated (the “Sub-Adviser”), an affiliate of Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”

At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at an in-person meeting in April 2018, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing investment performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.

In providing information to the Board, Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2018. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and investment performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.

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

Nature, extent and quality of services

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

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

Other information (unaudited) Wells Fargo Conservative Income Fund 31

Fund investment performance and expenses

The Board considered the investment performance results for the Fund over various time periods ended December 31, 2017. The Board considered these results in comparison to the investment performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the investment performance of the Fund (Institutional Class) was in range of the average investment performance of the Universe for the one- and three-year periods under review. The Board also noted that the investment performance of the Fund was higher than its benchmark index, the Bloomberg Barclays U.S. Treasury Bills: 6-9 Month Index, for the one- and three-year periods under review.

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

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

Investment management and sub-advisory fee rates

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

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

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

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

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

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of both WFAM and Wells Fargo & Co. (“Wells Fargo”) as a whole, from providing services to the Fund and the fund family as a whole. The Board noted that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the WFAM and Wells Fargo profitability analysis.

32 Wells Fargo Conservative Income Fund Other information (unaudited)

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

Economies of scale

The Board considered the extent to which Funds Management may experience economies of scale in the provision of management services, and the extent to which scale benefits, if any, would be shared with shareholders. In particular, the Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size. It considered that, for a small fund or a fund that shrinks in size, breakpoints conversely can result in higher fee levels. The Board also considered that in addition to management fee breakpoints, competitive management fee rates set at the outset without regard to breakpoints and fee waiver and expense reimbursement arrangements, as well as investments in the business intended to enhance services available to Fund shareholders, are means of sharing potential economies of scale with shareholders of the Fund.

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

Other benefits to Funds Management and the Sub-Adviser

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

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

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

Conclusion

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

For more information

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

Wells Fargo Funds

P.O. Box 219967

Kansas City, MO 64121-9967

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 the trade name for certain investment advisory/management firms owned by Wells Fargo & Company. These firms include but are not limited to Wells Capital Management Incorporated and Wells Fargo Funds Management, LLC. Certain products managed by WFAM entities are distributed by Wells Fargo Funds Distributor, LLC (a broker/dealer and Member FINRA).

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.

315404 10-18 A265/AR265 08-18

Annual Report

August 31, 2018

Wells Fargo Government Securities Fund

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Contents

Letter to shareholders	2
Performance highlights	6
Fund expenses	10
Portfolio of investments	11
Financial statements
Statement of assets and liabilities	22
Statement of operations	23
Statement of changes in net assets	24
Financial highlights	25
Notes to financial statements	29
Report of independent registered public accounting firm	35
Other information	36
Appendix A	43

The views expressed and any forward-looking statements are as of August 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 Government Securities Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

After advancing during 2017, economic growth and stock markets globally diverged during the first eight months of 2018.

Dear Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Government Securities Fund for the 12-month period that ended August 31, 2018. After advancing during 2017, economic growth and stock markets globally diverged during the first eight months of 2018. For fixed-income investors, taxable bond returns suffered and high-yield and municipal bond returns were positive.

For the period, U.S. stocks, as measured by the S&P 500 Index,¹ gained 19.66%, and international stocks, as measured by the MSCI ACWI ex USA Index (Net),² added 3.18%. Based on the MSCI EM Index (Net),³ emerging market stocks lost 0.68%. For bond investors, the Bloomberg Barclays U.S. Aggregate Bond Index⁴ declined 1.05% while the Bloomberg Barclays Global Aggregate ex-USD Index⁵ fell 1.64%. The Bloomberg Barclays Municipal Bond Index⁶ added 0.49%, and the ICE BofAML U.S. High Yield Index⁷ was up 3.26%.

Continued optimism in the U.S. characterized the fourth quarter of 2017.

Some observers described economic conditions in late 2017 as a Goldilocks scenario: synchronized global growth, low inflation, healthy corporate earnings, and a weaker U.S. dollar that supported international growth. During the quarter, the U.S. Bureau of Economic Analysis reported that annualized U.S. gross domestic product (GDP) growth for the third quarter of 2017 was 2.8% and inflation remained below U.S. Federal Reserve (Fed) targets. U.S. corporate earnings and consumer confidence improved.

Economic momentum increased in Europe. The Bank of England (BOE) raised interest rates in November 2017 to 0.50%, the first increase in more than 10 years, indicating confidence in the economy’s growth potential. Meanwhile, the European Central Bank and the Bank of Japan kept interest rates low to spur business activities and bought bonds in an effort to encourage equity investments. The People’s Bank of China’s (PBOC’s) policies sought to stimulate business. Many emerging market economies benefited from stronger currencies versus the U.S. dollar, while commodity price increases benefited countries that rely on natural resources for exports.

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 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.

⁶  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.

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 Government Securities Fund 3

Volatility reemerged during the first quarter of 2018 as global tensions and inflation fears increased.

Stock market gains in January 2018 followed the passage of lower U.S. tax rates. Some investors then grew concerned about trade, particularly between the U.S. and China, and the specter of inflation. The Fed followed its 25-basis-point (bp; 100 bps equal 1.00%) federal funds rate increase in December 2017 with a further 25-bp increase in March 2018. The inflation rate in March reached the Fed’s 2% target for the first time in a year.

The S&P 500 Index closed the first quarter with a negative return, the first negative quarterly return for the index since 2014. Overseas investment markets reversed strong returns in 2017, hurt by a stronger U.S. dollar and mounting trade and diplomatic tensions. After gaining 27.19% for the 12-month period that ended December 31, 2017, the MSCI ACWI ex USA Index (Net) declined 1.81% for the quarter that ended March 31, 2018.

Global trade tensions escalated during the second quarter.

Global trade tensions escalated throughout the second quarter of 2018. The U.S. government imposed tariffs, and foreign governments in North America, Europe, and Asia retaliated. The escalating tensions chilled investment activity as observers awaited signals of next steps.

Meanwhile, inflation continued an upward trend. The CPI-U⁸ added 0.1% in June after increases of 0.2% in both April and May. On a year-over-year basis, the all-items index rose 2.9% for the 12 months that ended June 30, 2018. The index for all items less food and energy rose 2.3% for the same 12-month period.

U.S. stocks gained while international stocks and bonds declined during the summer of 2018.

The U.S. economy strengthened during the summer months. Revised second-quarter GDP data released in August showed the U.S. economy growing at a 4.2% rate. After ticking up slightly in June, the unemployment rate in the U.S. was 3.9% in July and August, according to the U.S. Department of Labor. Wages showed more consistent growth than they had in recent quarters, and consumer confidence remained strong.

Several U.S. equity market indices reached records during August, with the S&P 500 Index gaining 7.76% for the three-month period that ended August 31, 2018. International stock values continued to suffer under the effects of a strong U.S. dollar and continuing trade tensions. The MSCI ACWI ex USA Index (Net) and the MSCI EM Index (Net) were down 4.70% and 1.64%, respectively, during the same three-month period.

The Fed increased the federal funds rate in June, and expectations grew that two more rate increases were in the offing in 2018. Long-term interest rates in the U.S. remained at higher levels relative to the prior 10 years. Rates on 10-year and 30-year Treasury bonds—2.46% and 2.81%, respectively, on January 1, 2018—were 2.86% and 3.02%, respectively, on August 31, off their peak levels on May 17, 2018, of 3.11% and 3.25%, respectively. Some investors became more aware of and concerned about the potential for an inverted yield curve—sometimes a recession signal—as short-term rates increased more quickly than long-term rates. The Fed decided to forgo an interest rate increase at its August meeting.

The S&P 500 Index closed the first quarter with a negative return, the first negative quarterly return for the index since 2014.

⁸  The Consumer Price Index for All Urban Consumers (CPI-U) measures the changes in the price of a basket of goods and services purchased by urban consumers. The urban consumer population is deemed by many as a better representative measure of the general public because close to 90% of the country’s population lives in highly populated areas. You cannot invest directly in an index.

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

Internationally, members of Prime Minister Theresa May’s U.K./Brexit negotiating team resigned amid unproductive negotiations. In early August, the BOE’s Monetary Policy Committee increased its key interest rate to 0.75%. Central banks in Europe and Japan maintained low interest rates and accommodative monetary policies. Amid rising trade uncertainty, the PBOC cut reserve requirement ratios and accelerated infrastructure spending and tax cuts for business enterprises and individuals. Nevertheless, a strengthening U.S. dollar and the trade tensions remained headwinds for investors overseas.

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

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

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

Sincerely,

Andrew Owen

President

Wells Fargo Funds

Notice to shareholders

At a meeting held on August 14-15, 2018, the Board of Trustees of the Fund approved the following policy which will be effective on or about February 5, 2019:

Class C shares will convert automatically into Class A shares ten years after the initial date of purchase or, if you acquired your Class C shares through an exchange or conversion from another share class, ten years after the date you acquired your Class C shares. When Class C shares that you acquired through a purchase or exchange convert, any other Class C shares that you purchased with reinvested dividends and distributions also will convert into Class A shares on a pro rata basis. A shorter holding period may also apply depending on your intermediary. Please see “Appendix A—Sales Charge Reductions and Waivers for Certain Intermediaries” in the Fund’s prospectus or at the end of this report.

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 Government Securities Fund Performance highlights (unaudited)

Investment objective

The Fund seeks current income.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Christopher Y. Kauffman, CFA^®

Jay N. Mueller, CFA^®

Michal Stanczyk

Average annual total returns (%) as of August 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 (SGVDX)	8-31-1999		(5.88	)		0.66		2.35		(1.44	)		1.59		2.82		0.87		0.85
Class C (WGSCX)	12-26-2002		(3.18	)		0.84		2.05		(2.18	)		0.84		2.05		1.62		1.60
Administrator Class (WGSDX)	4-8-2005		–			–		–		(1.23	)		1.83		3.03		0.81		0.64
Institutional Class (SGVIX)	8-31-1999		–			–		–		(0.99	)		1.99		3.22		0.54		0.48
Bloomberg Barclays U.S. Aggregate ex Credit Index3	–		–			–		–		(1.08	)		2.00		3.15		–		–
Bloomberg Barclays Intermediate U.S. Government Bond Index4	–		–			–		–		(1.25	)		1.18		2.32		–		–

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

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

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

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

Please see footnotes on page 7.

Performance highlights (unaudited) Wells Fargo Government Securities Fund 7

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

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

²  The manager has contractually committed through December 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.

³  The Bloomberg Barclays U.S. Aggregate ex Credit Index is composed of the Bloomberg Barclays U.S. Government Index and the Bloomberg Barclays U.S. Mortgage-Backed Securities Index and includes Treasury issues, agency issues, and mortgage-backed securities. You cannot invest directly in an index.

⁴  The Bloomberg Barclays Intermediate U.S. Government Bond Index is an unmanaged index composed of U.S. government securities with maturities in the one to 10-year range, including securities issued by the U.S. Treasury and U.S. government agencies. You cannot invest directly in an index.

⁵  The chart compares the performance of Class A shares for the most recent ten years with the performance of the Bloomberg Barclays U.S. Aggregate ex Credit Index and the Bloomberg Barclays Intermediate U.S. Government Bond Index. The chart assumes a hypothetical investment of $10,000 in Class A shares and reflects all operating expenses and assumes the maximum initial sales charge of 4.50%.

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

⁷  The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. You cannot invest directly in an index.

⁸  Amounts are calculated based on the total long-term investments of the Fund. These amounts are subject to change and may have changed since the date specified.

8 Wells Fargo Government Securities Fund Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

∎ The Fund (Class A shares, excluding sales charges) underperformed its benchmark, the Bloomberg Barclays U.S. Aggregate ex Credit Index, for the 12-month period that ended August 31, 2018.

∎ An overweight allocation to higher-coupon mortgages detracted because the duration of higher-coupon pools extended more than lower-coupon pools as interest rates increased during the period.

∎ An underweight to mortgage-backed securities (MBS) detracted from results, as did an overweight to higher-coupon 30-year and 15-year mortgages.

∎ The Fund’s overweight to securitized sectors, including commercial mortgage-backed securities (CMBS), collateralized mortgage obligations (CMOs), and asset-backed securities contributed to performance over the period due to the sectors’ yield advantage and narrowing spreads.

∎ The Fund’s yield-curve and conservative duration positioning contributed to results as interest rates rose and the Fund’s yield positioning benefited from a flattening yield curve, whereby longer-term yields rose less than short-term rates did.

∎ The Fund’s underweight allocation to Ginnie Mae mortgages contributed as higher-than-expected supply combined with tepid overseas demand caused the sector to underperform Fannie Mae and Freddie Mac bonds.

Ten largest holdings (%) as of August 31, 20186
FNMA, 4.50%, 9-13-2048	4.97
U.S. Treasury Note, 1.75%, 5-15-2023	3.46
FNMA, 3.00%, 12-1-2045	3.32
Resolution Funding Corporation STRIPS, 0.00%, 7-15-2020	3.25
U.S. Treasury Bond, 3.75%, 11-15-2043	3.20
FNMA, 3.50%, 9-18-2033	2.32
FNMA, 4.00%, 4-1-2046	2.28
GNMA, 4.00%, 12-20-2047	2.12
GNMA, 3.50%, 12-20-2047	2.09
GNMA, 3.50%, 9-21-2048	1.99

Economic growth accelerated and policy normalization continued.

Over the past four quarters, U.S. gross domestic product (GDP) grew by 2.9% in real terms, which was above the post-financial-crisis average. Business investment was a significant source of strength, rising 4.8% for the 12 months that ended June 30, 2018. Consumer spending was a net contributor to growth, although it failed to keep pace with the business sector. Inventories were a net detractor from GDP growth, while trade and government spending were modestly positive factors.

The labor market generally was healthy over the past 12 months. Nonfarm payrolls expanded by an average of 194,000 jobs per month over the period, while the

unemployment rate declined to 3.9% at the end of August 2018 from 4.4% a year earlier. Also encouraging was a 0.2% rise in the employment/population ratio since August 2017, reflecting both the fall in unemployment and a modest increase in the labor force participation rate. Wage gains of about 2.9% over the past 12 months were sufficient to support consumption growth without sparking fears of rising inflation. The CPI⁷ also rose 2.9% over the past year, which accelerated due in part to higher energy prices.

The U.S. Federal Reserve’s (Fed’s) rate-setting committee, the Federal Open Market Committee (FOMC), raised the federal funds rate three times over the past 12 months by a total of 0.75%. The FOMC’s gradual approach to hiking rates is supported by Fed Chairman Jerome Powell’s stated view that there is no sense that inflation will take off or move unexpectedly quickly.

In line with the FOMC’s policy moves, interest rates had an upward bias over the past 12 months, particularly in shorter-term maturity instruments. Yields on 2-year Treasuries rose by 130 basis points (bps; 100 bps equal 1.00%) during the period, while 10-year Treasuries were about 75 bps higher. Investment-grade credit spreads tightened rapidly into the start of 2018 after the corporate tax cut was enacted in the U.S. but ended the period slightly wider after trade tensions and heavy supply took their toll on bond prices.

Please see footnotes on page 7.

Performance highlights (unaudited) Wells Fargo Government Securities Fund 9

Portfolio allocation as of August 31, 2018⁸

The Fund had an overweight allocation to securitized sectors.

We continued to find relative value among securitized bonds, particularly CMOs and agency CMBS. Within the MBS sector, the Fund was underweight versus the benchmark, which detracted from performance, with an emphasis on higher-coupon paper. The Fund also maintained an underweight to Ginnie Mae bonds due to their rich valuations, deteriorating prepayment fundamentals, and poor supply/demand technicals, which contributed to performance. However, the Fund’s overweight to higher-coupon 30-year and 15-year mortgages detracted because the duration of those pools extended as rates rose.

During the period, the Fund maintained an overweight to agency CMBS and a neutral or underweight position to nonagency CMBS. The Fund’s overweight to agency CMBS contributed to results. The Fund held government-guaranteed or government-sponsored agency bonds rather than Treasuries, picking up additional yield and benefiting from positive spread performance. In lieu of holding cash (given its low yield), we instead purchased short-maturity agency and Treasury bonds as well as floating-rate agency CMOs. This allowed the Fund to earn additional income without significant incremental interest rate or credit risk.

We expect modestly above-trend economic growth to continue.

We expect macroeconomic trends to remain relatively consistent in the coming quarters, aided by fiscal stimulus and looser regulations. Real GDP growth in the area of 3% is likely to persist for a period of time, barring some external shock. The biggest risks to the outlook include an escalation in trade tensions and a larger-than-expected slowdown in the Chinese economy.

Please see footnotes on page 7.

10 Wells Fargo Government Securities Fund Fund expenses (unaudited)

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

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from March 1, 2018 to August 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 3-1-2018		Ending account value 8-31-2018		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,008.99	$	4.30		0.85	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.92	$	4.33		0.85	%
Class C
Actual	$	1,000.00	$	1,005.19	$	8.09		1.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.14	$	8.13		1.60	%
Administrator Class
Actual	$	1,000.00	$	1,010.05	$	3.24		0.64	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.98	$	3.26		0.64	%
Institutional Class
Actual	$	1,000.00	$	1,011.81	$	2.43		0.48	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.79	$	2.45		0.48	%

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

Portfolio of investments—August 31, 2018 Wells Fargo Government Securities Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities: 82.68%
FDIC Series 2010-R1 Class A 144A		2.18	%		5-25-2050	$	261,226	$	261,417
FDIC Series 2013-R1 Class A 144A		1.15			3-25-2033		1,607,345		1,582,983
FHLB		5.63			3-14-2036		6,020,000		7,850,772
FHLMC		1.42			5-25-2021		2,434,389		2,397,689
FHLMC		2.38			4-25-2023		2,200,313		2,163,256
FHLMC		2.46			3-25-2022		3,469,151		3,415,936
FHLMC (1 Month LIBOR +0.50%) ±		2.56			8-15-2037		3,452,373		3,480,523
FHLMC		2.62			12-25-2026		4,056,462		3,940,663
FHLMC		2.75			3-25-2027		6,328,942		6,233,099
FHLMC (1 Month LIBOR +0.67%) ±		2.75			2-25-2023		501,154		502,550
FHLMC		2.90			4-25-2026		6,490,015		6,420,710
FHLMC		3.00			5-15-2026		789,383		786,778
FHLMC		3.00			1-15-2054		173,087		170,573
FHLMC (1 Month LIBOR +1.18%) ±		3.24			12-15-2036		389,485		403,587
FHLMC ±±		3.31			5-25-2023		2,800,000		2,830,096
FHLMC (11th District Cost of Funds +1.25%) ±		3.41			7-1-2032		447,630		449,185
FHLMC (3 Year Treasury Constant Maturity +2.23%) ±		3.46			5-1-2026		36,696		36,513
FHLMC		3.50			8-1-2045		5,817,838		5,798,448
FHLMC		3.50			11-1-2045		10,487,555		10,452,598
FHLMC		3.50			12-1-2045		7,428,887		7,404,127
FHLMC		3.50			12-1-2045		2,527,007		2,518,591
FHLMC (12 Month LIBOR +1.91%) ±		3.66			9-1-2031		3,388		3,424
FHLMC (12 Month LIBOR +1.91%) ±		3.66			9-1-2031		44,938		45,179
FHLMC (1 Year Treasury Constant Maturity +2.14%) ±		3.74			10-1-2026		141,928		146,009
FHLMC (12 Month LIBOR +2.00%) ±		3.75			1-1-2038		1,070,802		1,130,443
FHLMC		4.00			12-15-2024		1,850,000		1,895,945
FHLMC		4.00			6-1-2044		5,151,734		5,259,873
FHLMC (1 Year Treasury Constant Maturity +2.25%) ±		4.31			6-1-2032		29,386		30,485
FHLMC (1 Year Treasury Constant Maturity +2.40%) ±		4.37			7-1-2029		95,490		98,435
FHLMC		4.50			3-1-2042		456,995		479,831
FHLMC		4.50			9-1-2044		3,844,397		4,000,998
FHLMC		5.00			4-1-2019		5,091		5,118
FHLMC		5.00			4-1-2019		7,394		7,433
FHLMC		5.00			6-1-2019		37,859		38,057
FHLMC		5.00			8-1-2019		114,823		116,656
FHLMC		5.00			10-1-2019		56,227		56,521
FHLMC		5.00			2-1-2020		184,890		185,912
FHLMC		5.00			8-1-2040		1,176,619		1,256,716
FHLMC		5.11			5-25-2019		1,140,000		1,150,505
FHLMC		5.50			7-1-2035		3,630,913		3,951,068
FHLMC		5.50			12-1-2038		2,150,577		2,325,839
FHLMC		6.00			10-1-2032		29,890		33,017
FHLMC		6.00			5-25-2043		4,489,612		4,862,479
FHLMC (1 Year Treasury Constant Maturity +2.13%) ±		6.38			1-1-2026		57,314		55,016
FHLMC		6.50			4-1-2021		1,868		1,902
FHLMC		6.50			4-1-2022		36,684		40,514
FHLMC		6.50			9-1-2028		16,980		18,753
FHLMC		6.50			9-1-2028		19,033		21,019
FHLMC		6.50			7-1-2031		3		3
FHLMC		7.00			12-1-2023		2,617		2,799

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

12 Wells Fargo Government Securities Fund Portfolio of investments—August 31, 2018

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FHLMC		7.00	%		12-1-2026	$	1,947	$	1,978
FHLMC		7.00			12-1-2026		429		453
FHLMC		7.00			4-1-2029		1,545		1,715
FHLMC		7.00			5-1-2029		9,015		10,031
FHLMC		7.00			4-1-2032		99,135		111,255
FHLMC		7.50			11-1-2031		189,553		213,668
FHLMC		7.50			4-1-2032		166,326		185,708
FHLMC		8.00			8-1-2023		7,433		7,806
FHLMC		8.00			6-1-2024		4,172		4,451
FHLMC		8.00			6-1-2024		2,756		2,789
FHLMC		8.00			6-1-2024		6,768		7,064
FHLMC		8.00			8-1-2026		15,466		17,357
FHLMC		8.00			11-1-2026		14,395		16,076
FHLMC		8.00			11-1-2028		9,817		10,552
FHLMC		8.50			7-1-2022		1,054		1,065
FHLMC		8.50			12-1-2025		9,746		10,529
FHLMC		8.50			5-1-2026		1,416		1,516
FHLMC		8.50			8-1-2026		5,008		5,064
FHLMC		8.50			8-1-2026		17,899		17,939
FHLMC		9.00			12-1-2019		4		4
FHLMC		9.00			1-1-2020		3		3
FHLMC		9.00			2-1-2020		37		38
FHLMC		9.00			3-1-2020		276		276
FHLMC		9.00			9-1-2020		36		36
FHLMC		9.00			9-1-2020		272		272
FHLMC		9.00			12-1-2020		8		8
FHLMC		9.00			3-1-2021		786		791
FHLMC		9.00			4-1-2021		387		388
FHLMC		9.00			4-1-2021		94		98
FHLMC		9.00			7-1-2021		1,740		1,745
FHLMC		9.00			7-1-2021		2,124		2,135
FHLMC		9.00			8-1-2021		171		179
FHLMC		9.00			7-1-2022		228		230
FHLMC		9.00			9-1-2024		321		324
FHLMC		9.50			8-1-2019		10		10
FHLMC		9.50			2-1-2020		1		1
FHLMC		9.50			6-1-2020		11		11
FHLMC		9.50			8-1-2020		70		72
FHLMC		9.50			9-1-2020		9		9
FHLMC		9.50			9-1-2020		293		295
FHLMC		9.50			9-1-2020		11		11
FHLMC		9.50			10-1-2020		19		20
FHLMC		9.50			10-1-2020		12		12
FHLMC		9.50			11-1-2020		27		28
FHLMC		9.50			5-1-2021		86		90
FHLMC		9.50			9-17-2022		62,228		62,074
FHLMC		9.50			4-1-2025		14,649		14,818
FHLMC		10.00			12-1-2019		49		49
FHLMC		10.00			3-1-2020		2		2
FHLMC		10.00			6-1-2020		6		7

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

Portfolio of investments—August 31, 2018 Wells Fargo Government Securities Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FHLMC		10.00	%		8-1-2020	$	11	$	11
FHLMC		10.00			10-1-2021		3,065		3,085
FHLMC		10.00			8-17-2022		2,029		2,010
FHLMC		10.00			2-17-2025		101,952		102,381
FHLMC		10.50			5-1-2019		1		1
FHLMC		10.50			6-1-2019		1		1
FHLMC		10.50			8-1-2019		1,349		1,353
FHLMC		10.50			12-1-2019		5,326		5,329
FHLMC		10.50			5-1-2020		2,295		2,307
FHLMC		10.50			8-1-2020		3,599		3,617
FHLMC Multifamily Structured Passthrough Series K075 Class A2 ±±		3.65			2-25-2028		4,370,000		4,443,669
FHLMC Series 2015-SC01 Class 1A		3.50			5-25-2045		2,436,397		2,406,705
FHLMC Series 2758 Class FH (1 Month LIBOR +0.35%) ±		2.41			3-15-2019		71,959		71,977
FHLMC Series 2882 Class TF (1 Month LIBOR +0.25%) ±		2.31			10-15-2034		333,795		334,342
FHLMC Series 3767 Class PD		4.00			7-15-2040		18,547		18,547
FHLMC Series 3948 Class DA		3.00			12-15-2024		189,432		189,707
FHLMC Series 4218 Class DF (1 Month LIBOR +0.25%) ±		2.31			7-15-2042		754,761		753,647
FHLMC Series K020 Class X1 ±±(c)		1.55			5-25-2022		44,530,662		1,902,580
FHLMC Series KJ14 Class A1		2.20			11-25-2023		4,969,828		4,809,556
FHLMC Series M036 Class A		4.16			12-15-2029		3,765,000		3,663,157
FHLMC Series T-15 Class A6 (1 Month LIBOR +0.40%) ±		2.46			11-25-2028		239,835		238,869
FHLMC Series T-23 Class A (1 Month LIBOR +0.28%) ±		2.34			5-25-2030		628,866		628,428
FHLMC Series T-35 Class A (1 Month LIBOR +0.28%) ±		2.34			9-25-2031		793,210		785,113
FHLMC Series T-42 Class A6		9.50			2-25-2042		815,307		970,819
FHLMC Series T-55 Class 2A1 ±±		3.72			3-25-2043		450,641		444,539
FHLMC Series T-57 Class 1A1		6.50			7-25-2043		1,089,206		1,225,411
FHLMC Series T-57 Class 2A1 ±±		3.92			7-25-2043		2,092,382		2,197,354
FHLMC Series T-62 Class 1A1 (12 Month Treasury Average +1.20%) ±		2.95			10-25-2044		1,187,209		1,183,211
FHLMC Series T-67 Class 1A1C ±±		3.67			3-25-2036		826,276		839,551
FHLMC Series T-67 Class 2A1C ±±		3.43			3-25-2036		1,456,519		1,454,725
FHLMC Series T-75 Class A1 (1 Month LIBOR +0.04%) ±		2.10			12-25-2036		1,121,580		1,119,303
FNMA ¤		0.00			10-9-2019		9,590,000		9,318,756
FNMA ¤		0.00			5-15-2030		7,700,000		5,164,182
FNMA		1.71			12-1-2022		3,502,447		3,399,112
FNMA		1.78			5-1-2020		903,146		885,058
FNMA (11th District Cost of Funds +1.26%) ±		2.23			5-1-2036		1,498,471		1,494,196
FNMA (1 Month LIBOR +0.35%) ±		2.41			2-25-2032		630,036		634,462
FNMA %%		2.50			9-18-2033		4,960,000		4,822,746
FNMA		2.50			4-25-2039		68,776		67,957
FNMA (12 Month LIBOR +1.61%) ±		2.51			5-1-2046		5,331,103		5,273,995
FNMA (11th District Cost of Funds +1.63%) ±		2.51			5-1-2023		171,876		171,800
FNMA (1 Month LIBOR +0.48%) ±		2.54			9-25-2037		2,967,168		2,990,232
FNMA (1 Month LIBOR +0.25%) ±		2.55			6-27-2036		111,189		109,150
FNMA		2.55			3-1-2022		1,618,808		1,592,786
FNMA		2.56			3-1-2021		942,954		930,148
FNMA (11th District Cost of Funds +1.25%) ±		2.59			9-1-2027		205,870		206,961
FNMA (1 Month LIBOR +0.55%) ±		2.61			4-25-2050		1,834,917		1,837,647
FNMA		2.86			11-1-2021		2,575,967		2,556,048
FNMA ±±		2.88			2-25-2027		10,000,000		9,578,047
FNMA		2.91			1-1-2024		3,123,414		3,120,165

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

14 Wells Fargo Government Securities Fund Portfolio of investments—August 31, 2018

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA		3.00	%		5-1-2027	$	1,547,056	$	1,548,750
FNMA %%		3.00			9-18-2033		13,275,000		13,191,287
FNMA		3.00			4-1-2045		132,705		128,882
FNMA		3.00			11-1-2045		10,618,713		10,291,691
FNMA		3.00			12-1-2045		24,379,944		23,615,202
FNMA		3.00			11-1-2046		7,292,030		7,056,704
FNMA		3.00			12-1-2046		812,928		786,694
FNMA		3.02			2-1-2026		6,238,483		6,131,045
FNMA (11th District Cost of Funds +1.25%) ±		3.23			5-1-2036		490,724		504,473
FNMA (12 Month LIBOR +1.54%) ±		3.31			1-1-2043		373,416		387,106
FNMA		3.31			9-25-2020		3,690,783		3,701,729
FNMA		3.38			9-1-2020		1,887,318		1,900,802
FNMA (1 Year Treasury Constant Maturity +2.19%) ±		3.43			11-1-2031		128,653		134,744
FNMA (12 Month LIBOR +1.73%) ±		3.49			9-1-2036		546,031		572,819
FNMA		3.49			12-1-2020		3,404,055		3,437,463
FNMA %%		3.50			9-18-2033		16,320,000		16,492,223
FNMA		3.50			2-1-2043		66,741		66,856
FNMA		3.50			2-1-2045		2,088,275		2,086,051
FNMA ##		3.50			4-1-2045		5,946,997		5,926,856
FNMA		3.50			8-1-2045		737,055		734,217
FNMA		3.50			12-1-2045		2,826,037		2,815,152
FNMA		3.50			2-1-2046		4,446,921		4,428,871
FNMA		3.50			5-1-2046		6,385,038		6,356,486
FNMA (1 Year Treasury Constant Maturity +2.23%) ±		3.69			12-1-2034		842,260		879,998
FNMA (1 Year Treasury Constant Maturity +2.23%) ±		3.86			12-1-2040		26,047		27,328
FNMA (12 Month LIBOR +1.64%) ±		3.89			4-1-2032		83,831		84,572
FNMA (12 Month LIBOR +1.80%) ±		3.92			8-1-2036		849,936		891,948
FNMA (1 Year Treasury Constant Maturity +2.21%) ±		3.99			9-1-2031		31,257		32,724
FNMA		4.00			5-1-2021		225,815		231,142
FNMA		4.00			10-25-2025		492,707		10,339
FNMA ##		4.00			4-1-2046		15,909,432		16,212,212
FNMA		4.00			3-1-2047		1,549,488		1,588,608
FNMA %%		4.00			9-13-2048		6,475,000		6,591,443
FNMA (1 Year Treasury Constant Maturity +2.43%) ±		4.04			10-1-2027		156,084		161,207
FNMA (1 Year Treasury Constant Maturity +2.27%) ±		4.08			9-1-2031		246,887		256,640
FNMA (1 Year Treasury Constant Maturity +2.06%) ±		4.16			2-1-2027		17,637		17,637
FNMA (1 Year Treasury Constant Maturity +2.22%) ±		4.19			6-1-2032		117,364		121,751
FNMA (1 Year Treasury Constant Maturity +2.32%) ±		4.35			7-1-2026		138,416		143,464
FNMA (1 Year Treasury Constant Maturity +2.30%) ±		4.42			6-1-2034		469,653		488,146
FNMA		4.50			12-1-2018		19,511		19,709
FNMA		4.50			1-1-2026		266,679		269,417
FNMA		4.50			10-1-2046		462,889		480,683
FNMA %%		4.50			9-13-2048		34,002,000		35,300,485
FNMA		4.68			2-1-2020		3,046,256		3,118,550
FNMA		5.00			12-1-2018		7,742		7,932
FNMA		5.00			6-1-2019		315		323
FNMA		5.00			4-1-2023		235,471		245,778
FNMA		5.00			6-1-2023		462,479		479,989
FNMA		5.00			3-1-2034		503,730		538,101
FNMA		5.00			8-1-2040		6,386,546		6,872,491

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

Portfolio of investments—August 31, 2018 Wells Fargo Government Securities Fund 15

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA		5.00	%		10-1-2040	$	748,674	$	801,902
FNMA		5.00			1-1-2042		598,558		641,032
FNMA %%		5.00			9-13-2048		7,525,000		7,954,480
FNMA (6 Month LIBOR +2.86%) ±		5.38			4-1-2033		20,781		21,510
FNMA		5.39			1-1-2024		1,692,171		1,772,615
FNMA		5.50			6-1-2020		154,200		155,696
FNMA		5.50			11-1-2023		72,977		75,994
FNMA		5.50			1-1-2025		37,903		39,253
FNMA		5.50			1-1-2025		175,380		181,440
FNMA		5.50			9-1-2033		1,962,168		2,135,627
FNMA		5.50			9-1-2033		796,057		865,280
FNMA		5.50			8-1-2035		586,920		636,867
FNMA		5.50			1-1-2037		602,846		654,720
FNMA		5.50			4-1-2040		1,557,328		1,692,954
FNMA		5.55			9-1-2019		20,934		20,895
FNMA		5.61			2-1-2021		1,165,471		1,190,225
FNMA		5.67			11-1-2021		5,057,349		5,256,768
FNMA		5.75			5-1-2021		3,166,649		3,288,894
FNMA		5.95			6-1-2024		1,606,821		1,700,244
FNMA		6.00			3-1-2024		65,782		71,297
FNMA		6.00			1-1-2028		951,245		1,031,393
FNMA		6.00			2-1-2035		1,290,975		1,383,304
FNMA		6.00			11-1-2037		475,724		525,970
FNMA		6.00			7-1-2038		180,178		198,842
FNMA		6.08			1-1-2019		118,645		118,422
FNMA (6 Month LIBOR +3.13%) ±		6.24			7-1-2033		142,450		145,899
FNMA		6.50			1-1-2024		22,126		24,245
FNMA		6.50			3-1-2028		21,186		22,022
FNMA		6.50			12-1-2029		221,141		244,070
FNMA		6.50			11-1-2031		50,916		55,793
FNMA		6.50			7-1-2036		366,244		409,171
FNMA		6.50			7-1-2036		306,237		338,870
FNMA		6.50			7-25-2042		1,521,161		1,692,089
FNMA		7.00			11-1-2026		5,538		5,804
FNMA		7.00			9-1-2031		4,039		4,040
FNMA		7.00			1-1-2032		2,105		2,222
FNMA		7.00			2-1-2032		88,438		101,008
FNMA		7.00			10-1-2032		199,436		228,530
FNMA		7.00			2-1-2034		1,985		2,178
FNMA		7.00			4-1-2034		141,337		160,287
FNMA		7.00			1-1-2036		6,358		6,659
FNMA		7.50			9-1-2031		90,077		102,956
FNMA		7.50			11-25-2031		391,318		442,127
FNMA		7.50			2-1-2032		32,712		37,043
FNMA		7.50			10-1-2037		913,002		1,075,507
FNMA		8.00			5-1-2027		31,479		31,947
FNMA		8.00			10-1-2027		1,476		1,478
FNMA		8.00			6-1-2028		5,219		5,635
FNMA		8.00			2-1-2030		55,083		59,180
FNMA		8.00			7-1-2031		991,751		1,111,304

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

16 Wells Fargo Government Securities Fund Portfolio of investments—August 31, 2018

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA		8.50	%		8-1-2024	$	6,631	$	6,690
FNMA		8.50			5-1-2026		104,884		112,456
FNMA		8.50			7-1-2026		22,818		23,457
FNMA		8.50			8-1-2026		11,734		11,807
FNMA		8.50			10-1-2026		59		59
FNMA		8.50			10-1-2026		4,303		4,309
FNMA		8.50			11-1-2026		27,663		28,009
FNMA		8.50			11-1-2026		7,550		7,760
FNMA		8.50			12-1-2026		139,073		153,557
FNMA		8.50			12-1-2026		15,746		17,102
FNMA		8.50			12-1-2026		261		261
FNMA		8.50			2-1-2027		225		245
FNMA		8.50			2-1-2027		6,448		6,457
FNMA		8.50			3-1-2027		776		818
FNMA		8.50			6-1-2027		65,570		67,586
FNMA		8.50			7-1-2029		812		814
FNMA		9.00			3-1-2021		6,325		6,365
FNMA		9.00			6-1-2021		72		75
FNMA		9.00			7-1-2021		4,509		4,528
FNMA		9.00			8-1-2021		90		94
FNMA		9.00			10-1-2021		938		943
FNMA		9.00			1-1-2025		16,069		17,295
FNMA		9.00			3-1-2025		992		994
FNMA		9.00			3-1-2025		1,890		1,897
FNMA		9.00			4-1-2025		787		788
FNMA		9.00			7-1-2028		4,536		4,572
FNMA		9.50			11-1-2020		28		28
FNMA		9.50			12-15-2020		8,240		8,328
FNMA		9.50			1-1-2021		6,567		6,635
FNMA		9.50			6-1-2022		518		521
FNMA		9.50			7-1-2028		5,803		5,815
FNMA		10.00			12-1-2020		492		492
FNMA		11.00			10-15-2020		282		286
FNMA Series 1989-10 Class Z		9.50			3-25-2019		5,571		5,614
FNMA Series 1989-100 Class Z		8.75			12-25-2019		4,536		4,622
FNMA Series 1989-12 Class Y		10.00			3-25-2019		4,612		4,655
FNMA Series 1989-22 Class G		10.00			5-25-2019		12,294		12,467
FNMA Series 1989-63 Class Z		9.40			10-25-2019		858		877
FNMA Series 1989-98 Class E		9.20			12-25-2019		4,809		4,836
FNMA Series 1990-144 Class W		9.50			12-25-2020		22,253		23,488
FNMA Series 1990-75 Class Z		9.50			7-25-2020		38,091		39,746
FNMA Series 1990-84 Class Y		9.00			7-25-2020		2,833		2,947
FNMA Series 1990-96 Class Z		9.67			8-25-2020		40,299		42,217
FNMA Series 1991-5 Class Z		8.75			1-25-2021		8,839		9,063
FNMA Series 1991-85 Class Z		8.00			6-25-2021		18,709		19,573
FNMA Series 1992-45 Class Z		8.00			4-25-2022		47,407		50,148
FNMA Series 1999-W6 Class A ±±		9.68			9-25-2028		972		970
FNMA Series 2000-T6 Class A2		9.50			11-25-2040		722,882		811,752
FNMA Series 2001-T10 Class A3		9.50			12-25-2041		961,922		1,097,770
FNMA Series 2001-T12 Class A3		9.50			8-25-2041		260,348		306,748

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

Portfolio of investments—August 31, 2018 Wells Fargo Government Securities Fund 17

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA Series 2002-T12 Class A5 ±±		4.52	%		10-25-2041	$	908,253	$	928,977
FNMA Series 2002-T19 Class A1		6.50			7-25-2042		4,112,058		4,621,444
FNMA Series 2002-T5 Class A1 (1 Month LIBOR +0.24%) ±		2.30			5-25-2032		196,548		196,119
FNMA Series 2002-W4 Class A4		6.25			5-25-2042		635,115		695,070
FNMA Series 2003-T2 Class A1 (1 Month LIBOR +0.14%) ±		2.34			3-25-2033		1,098,884		1,076,932
FNMA Series 2003-W09 Class A (1 Month LIBOR +0.12%) ±		2.18			6-25-2033		96,932		95,161
FNMA Series 2003-W1 Class 1A1 ±±		5.42			12-25-2042		603,508		629,359
FNMA Series 2003-W11 Class A1 ±±		5.27			6-25-2033		63,898		66,683
FNMA Series 2003-W3 Class 1A4 ±±		3.86			8-25-2042		2,536,523		2,629,677
FNMA Series 2003-W5 Class A (1 Month LIBOR +0.11%) ±		2.17			4-25-2033		319,080		307,396
FNMA Series 2003-W6 Class 6A ±±		4.06			8-25-2042		1,571,826		1,601,912
FNMA Series 2003-W6 Class PT4 ±±		8.22			10-25-2042		1,554,500		1,867,682
FNMA Series 2003-W8 Class PT1 ±±		10.38			12-25-2042		575,205		641,242
FNMA Series 2004-79 Class FA (1 Month LIBOR +0.29%) ±		2.35			8-25-2032		182,932		183,085
FNMA Series 2004-T1 Class 1A2		6.50			1-25-2044		580,346		644,519
FNMA Series 2004-W01 Class 2A2		7.00			12-25-2033		1,257,959		1,416,079
FNMA Series 2004-W15 Class 1A3		7.00			8-25-2044		799,156		900,721
FNMA Series 2005-71 Class DB		4.50			8-25-2025		650,635		661,928
FNMA Series 2007-W10 Class 2A ±±		6.32			8-25-2047		403,615		431,087
FNMA Series 2011-15 Class HI (c)		5.50			3-25-2026		448,831		18,558
FNMA Series 2015-M10 Class FA (1 Month LIBOR +0.25%) ±		2.33			3-25-2019		204,889		204,603
FNMA Series 265 Class 2		9.00			3-25-2024		73,709		82,565
FNMA Series G-8 Class E		9.00			4-25-2021		29,705		30,712
FNMA Series G92-30 Class Z		7.00			6-25-2022		43,188		44,490
FNMA Series G93-39 Class ZQ		6.50			12-25-2023		1,075,860		1,132,092
GNMA (1 Year Treasury Constant Maturity +0.45%) ±		2.78			5-20-2066		6,006,346		6,005,643	��
GNMA (1 Month LIBOR +0.70%) ±		2.80			8-20-2065		3,632,477		3,676,360
GNMA (1 Month LIBOR +0.73%) ±		2.83			9-20-2063		4,414,523		4,448,864
GNMA (1 Month LIBOR +0.80%) ±		2.88			9-20-2038		1,233,390		1,255,235
GNMA (1 Month LIBOR +0.90%) ±		3.00			8-20-2065		3,899,888		3,969,843
GNMA (1 Month LIBOR +0.90%) ±		3.00			4-20-2066		5,071,176		5,161,883
GNMA (1 Year Treasury Constant Maturity +1.50%) ±		3.00			8-20-2020		44,496		44,575
GNMA		3.00			11-20-2045		14,270,118		13,997,211
GNMA (1 Year Treasury Constant Maturity +1.50%) ±		3.13			11-20-2020		28,691		28,782
GNMA		3.50			12-20-2047		14,812,288		14,870,065
GNMA %%		3.50			9-21-2048		14,105,000		14,149,905
GNMA		4.00			12-20-2047		14,723,461		15,086,355
GNMA		5.00			7-20-2040		1,308,381		1,407,789
GNMA		5.50			4-20-2034		878,452		923,025
GNMA		6.00			8-20-2034		107,476		113,703
GNMA		6.50			12-15-2025		25,127		27,604
GNMA		6.50			5-15-2029		673		740
GNMA		6.50			5-15-2031		1,278		1,404
GNMA		6.50			9-20-2033		50,465		56,903
GNMA		7.00			12-15-2022		20,744		21,480
GNMA		7.00			5-15-2026		1,988		2,080
GNMA		7.00			3-15-2028		38,406		40,342
GNMA		7.00			4-15-2031		969		982
GNMA		7.00			8-15-2031		19,368		19,979
GNMA		7.00			3-15-2032		14,501		14,726
GNMA		7.34			10-20-2021		27,146		27,328
GNMA		7.34			2-20-2022		2,797		2,798

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

18 Wells Fargo Government Securities Fund Portfolio of investments—August 31, 2018

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
GNMA		7.34	%		9-20-2022	$	8,228	$	8,237
GNMA		8.00			6-15-2023		3,146		3,311
GNMA		8.00			12-15-2023		191,073		205,051
GNMA		8.00			2-15-2024		647		685
GNMA		8.00			9-15-2024		3,162		3,208
GNMA		8.00			6-15-2025		61		61
GNMA		8.35			4-15-2020		36,989		37,239
GNMA		8.40			5-15-2020		27,051		27,104
GNMA		9.50			10-20-2019		1,085		1,086
GNMA Series 2002-53 Class IO ±±(c)		0.60			4-16-2042		420,346		4
GNMA Series 2005-23 Class IO ±±(c)		0.01			6-17-2045		2,580,170		1,009
GNMA Series 2006-32 Class XM ±±(c)		0.03			11-16-2045		7,072,216		5,954
GNMA Series 2006-68 Class D ±±		5.31			12-16-2037		948,239		952,714
GNMA Series 2007-69 Class D ±±		5.25			6-16-2041		573,761		585,650
GNMA Series 2008-22 Class XM ±±(c)		0.96			2-16-2050		16,378,553		408,535
GNMA Series 2012-12 Class HD		2.00			5-20-2062		1,364,838		1,354,276
GNMA Series 2016-H07 Class FE (1 Month LIBOR +1.15%) ±		3.25			3-20-2066		4,388,056		4,518,259
GNMA Series 2016-H07 Class FH (1 Month LIBOR +1.00%) ±		3.10			2-20-2066		4,066,534		4,160,799
Resolution Funding Corporation STRIPS ¤		0.00			7-15-2020		24,300,000		23,093,420
Resolution Funding Corporation STRIPS ¤		0.00			4-15-2030		6,100,000		4,175,134
TVA ¤		0.00			11-1-2025		10,000,000		7,926,841
TVA		2.88			2-1-2027		2,430,000		2,373,223
TVA		4.63			9-15-2060		7,550,000		9,063,586
TVA		5.38			4-1-2056		4,900,000		6,557,871
TVA		5.88			4-1-2036		4,380,000		5,718,948
Total Agency Securities (Cost $591,331,560)									587,664,694
Asset-Backed Securities: 2.00%
Chesapeake Funding LLC Series 2017-3A Class A 144A		1.91			8-15-2029		5,732,716		5,666,828
Hyundai Auto Lease Securitization Trust Series 2017-B Class A3 144A		1.97			7-15-2020		4,200,000		4,171,563
MMAF Equipment Finance LLC Series 2017-AA Class A4 144A		2.41			8-16-2024		4,445,000		4,350,127
Total Asset-Backed Securities (Cost $14,348,572)									14,188,518
Corporate Bonds and Notes: 1.65%
Financials: 0.55%
Mortgage REITs: 0.55%
American Tower Trust I 144A		3.65			3-23-2048		4,000,000		3,941,292
Utilities: 1.10%
Electric Utilities: 1.10%
Cleveland Thermal LLC		6.25			11-1-2018		205,000		206,104
Cleveland Thermal LLC		7.75			11-1-2025		2,665,000		2,763,550
Cleveland Thermal LLC		8.00			11-1-2028		1,800,000		1,867,252
Cleveland Thermal LLC		8.25			11-1-2037		2,880,000		2,988,706
									7,825,612
Total Corporate Bonds and Notes (Cost $12,786,612)									11,766,904

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

Portfolio of investments—August 31, 2018 Wells Fargo Government Securities Fund 19

Security name	Interest rate			Maturity date		Principal		Value
Municipal Obligations: 0.90%
Texas: 0.90%
Miscellaneous Revenue: 0.90%
San Antonio TX Retama Development Corporation		10.00	%		12-15-2020	$	5,405,000	$	6,374,819
Total Municipal Obligations (Cost $5,946,771)									6,374,819
Non-Agency Mortgage-Backed Securities: 4.44%
Benchmark Mortgage Trust Series 2018-B1 Class A4		3.40			1-15-2051		305,000		300,317
CD Commercial Mortgage Trust Series 2017-6 Class A5		3.46			11-13-2050		2,340,000		2,307,615
CGBAM Commercial Mortgage Trust Series 2015-SMRT Class A 144A		2.81			4-10-2028		5,000,000		4,979,434
GAHR Commercial Mortgage Trust Series 2015-NRF Class AFX 144A		3.23			12-15-2034		4,195,000		4,200,598
GS Mortgage Securities Trust Series 2013-G1 Class A2 144A±±		3.56			4-10-2031		5,349,842		5,280,661
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2015-C28 Class A4		3.23			10-15-2048		5,000,000		4,913,678
Morgan Stanley Capital I Trust Series 2011-C2 Class A4 144A		4.66			6-15-2044		4,900,000		5,064,583
UBS Commercial Mortgage Trust Series 2017-C5 Class A5		3.47			11-15-2050		2,581,000		2,532,316
Vendee Mortgage Trust Series 1995-1 Class 4 ±±		8.31			2-15-2025		164,941		181,099
Vendee Mortgage Trust Series 1995-2C Class 3A		8.79			6-15-2025		231,349		258,584
Vendee Mortgage Trust Series 2011-1 Class DA		3.75			2-15-2035		1,524,493		1,537,101
Total Non-Agency Mortgage-Backed Securities (Cost $32,287,275)									31,555,986
U.S. Treasury Securities: 12.23%
STRIPS ¤		0.00			5-15-2036		8,765,000		5,134,623
U.S. Treasury Bond		2.75			8-15-2042		1,805,000		1,722,929
U.S. Treasury Bond		2.88			5-15-2028		9,445,000		9,446,476
U.S. Treasury Bond		3.13			5-15-2048		1,225,000		1,249,548
U.S. Treasury Bond ##		3.38			5-15-2044		3,295,000		3,501,967
U.S. Treasury Bond		3.63			8-15-2043		5,170,000		5,715,475
U.S. Treasury Bond ##		3.75			8-15-2041		3,310,000		3,718,837
U.S. Treasury Bond ##		3.75			11-15-2043		20,150,000		22,734,080
U.S. Treasury Bond ##		4.25			11-15-2040		1,590,000		1,913,217
U.S. Treasury Bond ##		6.13			11-15-2027		5,700,000		7,196,695
U.S. Treasury Note ##		1.75			5-15-2023		25,695,000		24,569,840
Total U.S. Treasury Securities (Cost $87,458,712)									86,903,687
Yankee Corporate Bonds and Notes: 0.90%
Financials: 0.90%
Banks: 0.90%
Royal Bank of Canada Incorporated		2.00			10-1-2018		6,370,000		6,367,962
Total Yankee Corporate Bonds and Notes (Cost $6,369,925)									6,367,962
Yankee Government Bonds: 5.71%
Hashemite Kingdom of Jordan		3.00			6-30-2025		10,636,000		10,577,263
State of Israel		5.50			12-4-2023		9,030,000		10,152,055
State of Israel		5.50			9-18-2033		7,390,000		9,213,555
Ukraine		1.47			9-29-2021		11,090,000		10,652,100
Total Yankee Government Bonds (Cost $42,595,064)									40,594,973

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

20 Wells Fargo Government Securities Fund Portfolio of investments—August 31, 2018

Security name	Yield					Shares		Value
Short-Term Investments: 2.89%
Investment Companies: 2.58%
Wells Fargo Government Money Market Fund Select Class (l)(u)##		1.87	%				18,303,812	$	18,303,812
				Maturity date		Principal
U.S. Treasury Securities: 0.31%
U.S. Treasury Bill (z)#		1.31			9-13-2018	$	2,225,000		2,223,939
Total Short-Term Investments (Cost $20,527,760)									20,527,751

Total investments in securities (Cost $813,652,251)	113.40	%		805,945,294
Other assets and liabilities, net	(13.40	)		(95,250,840	)
Total net assets	100.00	%	$	710,694,454

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

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

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

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

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

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

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

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

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

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

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

Abbreviations:

FDIC Federal Deposit Insurance Corporation

FHLB Federal Home Loan Bank

FHLMC Federal Home Loan Mortgage Corporation

FNMA Federal National Mortgage Association

GNMA Government National Mortgage Association

LIBOR London Interbank Offered Rate

REIT Real estate investment trust

STRIPS Separate trading of registered interest and principal securities

TVA Tennessee Valley Authority

Futures Contracts

Description	Number of contracts		Expiration date		Notional cost			Notional value			Unrealized gains		Unrealized losses
Long
5-Year U.S. Treasury Notes		70		12-31-2018	$	7,935,783		$	7,937,891		$	2,108	$	0
Short
10-Year U.S. Treasury Notes		(79)		12-19-2018		(9,480,490	)		(9,500,984	)		0		(20,494	)
U.S. Long Term Bonds		(66)		12-19-2018		(9,485,564	)		(9,518,437	)		0		(32,873	)
Ultra U.S. Treasury Bonds		(1)		12-19-2018		(158,983	)		(159,313	)		0		(330	)
2-Year U.S. Treasury Notes		(244)		12-31-2018		(51,546,285	)		(51,571,688	)		0		(25,403	)
											$	2,108	$	(79,100	)

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

Portfolio of investments—August 31, 2018 Wells Fargo Government Securities Fund 21

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		7,067,691		302,388,297		291,152,176		18,303,812		0	$	0	$	269,342	$	18,303,812		2.58	%

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

22 Wells Fargo Government Securities Fund Statement of assets and liabilities—August 31, 2018

Assets
Investments in unaffiliated securities, at value (cost $795,348,439)	$	787,641,482
Investments in affiliated securities, at value (cost $18,303,812)		18,303,812
Cash		6,193
Principal paydown receivable		17,739
Receivable for Fund shares sold		932,968
Receivable for interest		3,709,309
Receivable for daily variation margin on open futures contracts		7,109
Prepaid expenses and other assets		42,540
Total assets		810,661,152
Liabilities
Payable for when-issued securities purchased		98,403,913
Payable for Fund shares redeemed		763,678
Management fee payable		218,245
Distributions payable		191,148
Payable due to broker		133,000
Administration fees payable		78,338
Payable for daily variation margin on open futures contracts		46,174
Distribution fee payable		10,864
Trustees’ fees and expenses payable		2,160
Accrued expenses and other liabilities		119,178
Total liabilities		99,966,698
Total net assets	$	710,694,454
NET ASSETS CONSIST OF
Paid-in capital	$	750,038,937
Overdistributed net investment income		(12,956,930	)
Accumulated net realized losses on investments		(18,603,604	)
Net unrealized losses on investments		(7,783,949	)
Total net assets	$	710,694,454
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	292,550,004
Shares outstanding – Class A1		27,467,353
Net asset value per share – Class A		$10.65
Maximum offering price per share – Class A2		$11.15
Net assets – Class C	$	15,507,602
Shares outstanding – Class C1		1,456,213
Net asset value per share – Class C		$10.65
Net assets – Administrator Class	$	91,670,965
Shares outstanding – Administrator Class1		8,609,326
Net asset value per share – Administrator Class		$10.65
Net assets – Institutional Class	$	310,965,883
Shares outstanding – Institutional Class1		29,210,521
Net asset value per share – Institutional Class		$10.65

¹  The Fund has an unlimited number of authorized shares.

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

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

Statement of operations—year ended August 31, 2018 Wells Fargo Government Securities Fund 23

Investment income
Interest	$	21,899,481
Income from affiliated securities		269,342
Total investment income		22,168,823
Expenses
Management fee		3,601,754
Administration fees
Class A		547,522
Class C		28,571
Administrator Class		200,332
Institutional Class		206,190
Shareholder servicing fees
Class A		855,504
Class C		44,641
Administrator Class		500,829
Distribution fee
Class C		133,924
Custody and accounting fees		76,879
Professional fees		78,403
Registration fees		104,125
Shareholder report expenses		80,978
Trustees’ fees and expenses		23,472
Other fees and expenses		15,735
Total expenses		6,498,859
Less: Fee waivers and/or expense reimbursements		(785,180	)
Net expenses		5,713,679
Net investment income		16,455,144
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		(6,233,115	)
Futures contracts		789,135
Net realized losses on investments		(5,443,980	)
Net change in unrealized gains (losses) on:
Unaffiliated securities		(22,956,804	)
Futures contracts		(151,802	)
Net change in unrealized gains (losses) on investments		(23,108,606	)
Net realized and unrealized gains (losses) on investments		(28,552,586	)
Net decrease in net assets resulting from operations	$	(12,097,442	)

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

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

	Year ended August 31, 2018						Year ended August 31, 2017
Operations
Net investment income				$	16,455,144					$	17,271,849
Net realized losses on investments					(5,443,980	)					(10,219,835	)
Net change in unrealized gains (losses) on investments					(23,108,606	)					(14,516,843	)
Net decrease in net assets resulting from operations					(12,097,442	)					(7,464,829	)
Distributions to shareholders from
Net investment income
Class A					(6,375,215	)					(6,111,858	)
Class B					N/A						(161	)1
Class C					(199,378	)					(153,118	)
Administrator Class					(4,147,365	)					(3,440,050	)
Institutional Class					(5,781,887	)					(7,854,351	)
Net realized gains
Class A					0						(11,051,306	)
Class C					0						(620,183	)
Administrator Class					0						(5,318,345	)
Institutional Class					0						(11,260,803	)
Total distributions to shareholders					(16,503,845	)					(45,810,175	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		3,569,871			38,348,367			5,048,546			55,448,268
Class C		63,470			684,459			136,498			1,516,128
Administrator Class		6,511,960			70,326,132			4,525,225			49,877,489
Institutional Class		19,558,475			209,166,296			7,840,553			86,219,813
					318,525,254						193,061,698
Reinvestment of distributions
Class A		525,663			5,649,695			1,449,536			15,775,799
Class B		N/A			N/A			13	1		140	1
Class C		7,721			82,914			29,801			323,374
Administrator Class		380,074			4,081,678			793,271			8,634,028
Institutional Class		438,702			4,717,547			1,609,211			17,516,581
					14,531,834						42,249,922
Payment for shares redeemed
Class A		(12,470,498	)		(133,691,683	)		(12,626,464	)		(138,762,406	)
Class B		N/A			N/A			(16,453	)1		(185,560	)1
Class C		(443,637	)		(4,768,963	)		(691,050	)		(7,592,167	)
Administrator Class		(16,318,494	)		(174,401,645	)		(7,198,458	)		(79,199,255	)
Institutional Class		(28,678,375	)		(311,030,462	)		(13,914,348	)		(152,833,222	)
					(623,892,753	)					(378,572,610	)
Net decrease in net assets resulting from capital share transactions					(290,835,665	)					(143,260,990	)
Total decrease in net assets					(319,436,952	)					(196,535,994	)
Net assets
Beginning of period					1,030,131,406						1,226,667,400
End of period				$	710,694,454					$	1,030,131,406
Overdistributed net investment income				$	(12,956,930	)				$	(12,908,206	)

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

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

Financial highlights Wells Fargo Government Securities Fund 25

(For a share outstanding throughout each period)

	Year ended August 31
CLASS A	2018			2017			2016			2015			2014
Net asset value, beginning of period		$11.01			$11.51			$11.22			$11.11			$10.77
Net investment income		0.19			0.15			0.11	1		0.07	1		0.05
Net realized and unrealized gains (losses) on investments		(0.35	)		(0.22	)		0.34			0.13			0.40
Total from investment operations		(0.16	)		(0.07	)		0.45			0.20			0.45
Distributions to shareholders from
Net investment income		(0.20	)		(0.16	)		(0.10	)		(0.09	)		(0.11	)
Net realized gains		0.00			(0.27	)		(0.06	)		0.00			0.00
Total distributions to shareholders		(0.20	)		(0.43	)		(0.16	)		(0.09	)		(0.11	)
Net asset value, end of period		$10.65			$11.01			$11.51			$11.22			$11.11
Total return2		(1.44	)%		(0.52	)%		4.03	%		1.84	%		4.19	%
Ratios to average net assets (annualized)
Gross expenses		0.90	%		0.88	%		0.87	%		0.87	%		0.88	%
Net expenses		0.85	%		0.85	%		0.85	%		0.85	%		0.86	%
Net investment income		1.86	%		1.38	%		0.94	%		0.59	%		0.56	%
Supplemental data
Portfolio turnover rate		197	%		299	%		397	%		349	%		349	%
Net assets, end of period (000s omitted)		$292,550			$394,645			$483,112			$232,545			$173,772

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.

26 Wells Fargo Government Securities Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended August 31
CLASS C	2018			2017			2016			2015			2014
Net asset value, beginning of period		$11.01			$11.51			$11.21			$11.11			$10.77
Net investment income (loss)		0.12	1		0.07	1		0.02	1		(0.01	)1		(0.02	)1
Net realized and unrealized gains (losses) on investments		(0.36	)		(0.23	)		0.36			0.12			0.39
Total from investment operations		(0.24	)		(0.16	)		0.38			0.11			0.37
Distributions to shareholders from
Net investment income		(0.12	)		(0.07	)		(0.02	)		(0.01	)		(0.03	)
Net realized gains		0.00			(0.27	)		(0.06	)		0.00			0.00
Total distributions to shareholders		(0.12	)		(0.34	)		(0.08	)		(0.01	)		(0.03	)
Net asset value, end of period		$10.65			$11.01			$11.51			$11.21			$11.11
Total return2		(2.18	)%		(1.26	)%		3.25	%		1.08	%		3.42	%
Ratios to average net assets (annualized)
Gross expenses		1.65	%		1.61	%		1.62	%		1.62	%		1.63	%
Net expenses		1.60	%		1.60	%		1.60	%		1.60	%		1.61	%
Net investment income (loss)		1.12	%		0.63	%		0.16	%		(0.13	)%		(0.20	)%
Supplemental data
Portfolio turnover rate		197	%		299	%		397	%		349	%		349	%
Net assets, end of period (000s omitted)		$15,508			$20,132			$27,085			$26,981			$31,908

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 Government Securities Fund 27

(For a share outstanding throughout each period)

	Year ended August 31
ADMINISTRATOR CLASS	2018			2017			2016			2015			2014
Net asset value, beginning of period		$11.01			$11.51			$11.21			$11.11			$10.76
Net investment income		0.22	1		0.18	1		0.13			0.10			0.06
Net realized and unrealized gains (losses) on investments		(0.35	)		(0.23	)		0.36			0.12			0.42
Total from investment operations		(0.13	)		(0.05	)		0.49			0.22			0.48
Distributions to shareholders from
Net investment income		(0.23	)		(0.18	)		(0.13	)		(0.12	)		(0.13	)
Net realized gains		0.00			(0.27	)		(0.06	)		0.00			0.00
Total distributions to shareholders		(0.23	)		(0.45	)		(0.19	)		(0.12	)		(0.13	)
Net asset value, end of period		$10.65			$11.01			$11.51			$11.21			$11.11
Total return		(1.23	)%		(0.31	)%		4.34	%		1.97	%		4.51	%
Ratios to average net assets (annualized)
Gross expenses		0.84	%		0.82	%		0.81	%		0.80	%		0.81	%
Net expenses		0.64	%		0.64	%		0.64	%		0.64	%		0.64	%
Net investment income		2.07	%		1.60	%		1.13	%		0.82	%		0.79	%
Supplemental data
Portfolio turnover rate		197	%		299	%		397	%		349	%		349	%
Net assets, end of period (000s omitted)		$91,671			$198,520			$229,169			$216,428			$211,589

¹  Calculated based upon average shares outstanding

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

28 Wells Fargo Government Securities Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended August 31
INSTITUTIONAL CLASS	2018			2017			2016			2015			2014
Net asset value, beginning of period		$11.00			$11.50			$11.21			$11.10			$10.76
Net investment income		0.24	1		0.19	1		0.15			0.11	1		0.10
Net realized and unrealized gains (losses) on investments		(0.35	)		(0.22	)		0.35			0.14			0.39
Total from investment operations		(0.11	)		(0.03	)		0.50			0.25			0.49
Distributions to shareholders from
Net investment income		(0.24	)		(0.20	)		(0.15	)		(0.14	)		(0.15	)
Net realized gains		0.00			(0.27	)		(0.06	)		0.00			0.00
Total distributions to shareholders		(0.24	)		(0.47	)		(0.21	)		(0.14	)		(0.15	)
Net asset value, end of period		$10.65			$11.00			$11.50			$11.21			$11.10
Total return		(0.99	)%		(0.15	)%		4.42	%		2.22	%		4.59	%
Ratios to average net assets (annualized)
Gross expenses		0.57	%		0.55	%		0.54	%		0.54	%		0.55	%
Net expenses		0.48	%		0.48	%		0.48	%		0.48	%		0.48	%
Net investment income		2.22	%		1.75	%		1.28	%		0.99	%		0.94	%
Supplemental data
Portfolio turnover rate		197	%		299	%		397	%		349	%		349	%
Net assets, end of period (000s omitted)		$310,966			$416,834			$487,113			$468,859			$540,684

¹  Calculated based upon average shares outstanding

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

Notes to financial statements Wells Fargo Government Securities Fund 29

1. ORGANIZATION

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

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

2. SIGNIFICANT ACCOUNTING POLICIES

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

Securities valuation

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

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

Futures contracts that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price.

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

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

When-issued transactions

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

30 Wells Fargo Government Securities Fund Notes to financial statements

Futures contracts

The Fund is subject to interest rate risk in the normal course of pursuing its investment objectives. Futures contracts are agreements between the Fund and a counterparty to buy or sell a specific amount of a commodity, financial instrument or currency at specified price and on a specified date. The Fund may buy and sell futures contracts in order to gain exposure to, or protect against, changes in interest rates. The primary risks associated with the use of futures contracts are the imperfect correlation between changes in market values of securities held by the Fund and the prices of futures contracts, and the possibility of an illiquid market. Futures contracts are generally entered into on a regulated futures exchange and cleared through a clearinghouse associated with the exchange. With futures contracts, there is minimal counterparty risk to the Fund since futures contracts are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures contracts against default.

Upon entering into a futures contracts, the Fund is required to deposit either cash or securities (initial margin) with the broker in an amount equal to a certain percentage of the contract value. Subsequent payments (variation margin) are paid to or from the broker each day equal to the daily changes in the contract value. Such payments are recorded as unrealized gains or losses and, if any, shown as variation margin receivable (payable) in the Statement of Assets and Liabilities. Should the Fund fail to make requested variation margin payments, the broker can gain access to the initial margin to satisfy the Fund’s payment obligations. When the contracts are closed, a realized gain or loss is recorded in 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.

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 are declared daily and paid monthly. Distributions from net realized gains, if any, 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 August 31, 2018, the aggregate cost of all investments for federal income tax purposes was $827,231,781 and the unrealized gains (losses) consisted of:

Gross unrealized gains	$	7,503,628
Gross unrealized losses		(28,867,107	)
Net unrealized losses	$	(21,363,479	)

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

Notes to financial statements Wells Fargo Government Securities Fund 31

differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. At August 31, 2018, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Overdistributed net investment income	Accumulated net realized losses on investments
$(23)	$23

As of August 31, 2018, the Fund had capital loss carryforwards which consist of $16,765,738 in short-term capital losses and $1,766,136 in long-term capital losses.

Class allocations

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

3. FAIR VALUATION MEASUREMENTS

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

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

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

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

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

32 Wells Fargo Government Securities Fund Notes to financial statements

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

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Agency securities	$	0	$	587,664,694	$	0	$	587,664,694
Asset-backed securities		0		14,188,518		0		14,188,518
Corporate bonds and notes		0		11,766,904		0		11,766,904
Municipal obligations		0		6,374,819		0		6,374,819
Non-agency mortgage-backed securities		0		31,555,986		0		31,555,986
U.S. Treasuries securities		81,769,064		5,134,623		0		86,903,687
Yankee corporate bonds and notes		0		6,367,962		0		6,367,962
Yankee government bonds		0		40,594,973		0		40,594,973
Short-term investments
Investment companies		18,303,812		0		0		18,303,812
U.S. Treasury securities		2,223,939		0		0		2,223,939
		102,296,815		703,648,479		0		805,945,294
Futures contracts		2,108		0		0		2,108
Total assets	$	102,298,923	$	703,648,479	$	0	$	805,947,402
Liabilities
Futures contracts	$	79,100	$	0	$	0	$	79,100
Total liabilities	$	79,100	$	0	$	0	$	79,100

Additional sector, industry or geographic detail is included in the Portfolio of Investments.

Futures contracts are reported at their cumulative unrealized gains (losses) at measurement date as reported in the table following the Portfolio of Investments. For futures contracts the current day’s variation margin is reported on the Statement of Assets and Liabilities. 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 August 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 & 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 and providing fund-level administrative services in connection with the Fund’s operations. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.45% and declining to 0.32% as the average daily net assets of the Fund increase. Prior to January 1, 2018, Funds Management received an annual management fee which started at 0.45% and declined to 0.33% as the average daily net assets of the Fund increased. For the year ended August 31, 2018, the management fee was equivalent to an annual rate of 0.44% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. Wells Capital Management Incorporated, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.20% and declining to 0.10% as the average daily net assets of the Fund increase.

Notes to financial statements Wells Fargo Government Securities Fund 33

Administration fees

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

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

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. When each class of the Fund has exceeded its expense cap, Funds Management has waived fees and/or reimbursed expenses from fund level expenses on a proportionate basis and then from class specific expenses; otherwise, waivers and/or reimbursements are applied against class specific expenses before fund level expenses. Funds Management has committed through December 31, 2018 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.85% for Class A shares, 1.60% for Class C shares, 0.64% for Administrator Class shares, and 0.48% for Institutional Class shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

Distribution fee

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

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the year ended August 31, 2018, Funds Distributor received $1,214 from the sale of Class A shares and $20 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 August 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. Pursuant to these procedures, the Fund had $42,853,095 in interfund sales during the year ended August 31, 2018.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding short-term securities, for the year ended August 31, 2018 were as follows:

Purchases at cost		Sales proceeds
U.S. government	Non-U.S. government	U.S. government	Non-U.S. government
$1,752,050,254	$35,088,145	$1,950,141,354	$111,640,655

6. DERIVATIVE TRANSACTIONS

During the year ended August 31, 2018, the Fund entered into futures contracts to speculate on interest rates. The Fund had an average notional amount of $9,932,009 in long futures contracts and $57,618,041 in short futures contracts during the year ended August 31, 2018.

34 Wells Fargo Government Securities Fund Notes to financial statements

7. BANK BORROWINGS

The Trust (excluding the money market funds), Wells Fargo Master Trust 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.

For the year ended August 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 August 31, 2018 and August 31, 2017 were as follows:

	Year ended August 31
	2018		2017
Ordinary income	$	16,503,845	$	36,854,110
Long-term capital gain		0		8,956,065

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

Undistributed ordinary income	Unrealized losses	Capital loss carryforward
$765,712	$(21,363,479)	$(18,531,874)

9. INDEMNIFICATION

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

10. NEW ACCOUNTING PRONOUNCEMENTS AND REGULATORY CHANGES

On August 17, 2018, the Securities and Exchange Commission (“SEC”) adopted Disclosure Update and Simplification, which amends certain disclosure requirements. The amendments are effective for filings subsequent to November 5, 2018. Management expects these amendments will impact the classification of disclosures in the financial statements.

In August 2018, FASB issued Accounting Standards Update (“ASU”) No. 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 updates the disclosure requirements for fair value measurements by modifying or removing certain disclosures and adding certain new disclosures. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. Management is currently evaluating the potential impact of this new guidance to the financial statements.

In March 2017, FASB issued ASU No. 2017-08, Premium Amortization on Purchased Callable Debt Securities. ASU
2017-08 shortens the amortization period for certain callable debt securities held at a premium. The amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 is effective for fiscal years beginning after December 15, 2018 and for interim periods within those fiscal years . Management is currently evaluating the potential impact of this new guidance to the financial statements.

Report of independent registered public accounting firm Wells Fargo Government Securities Fund 35

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 Wells Fargo Government Securities Fund (the “Fund”), including the portfolio of investments, as of August 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 August 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 August 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

October 26, 2018

36 Wells Fargo Government Securities Fund Other information (unaudited)

TAX INFORMATION

For the fiscal year ended August 31, 2018, $15,385,509 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 August 31, 2018, 17.27% of the ordinary income distributed was derived from interest on U.S. Government Securities.

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 Government Securities Fund 37

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 154 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 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.	N/A
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 The Ruth Bancroft Garden (non-profit organization). She is also an inactive Chartered Financial Analyst.	N/A
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 (private school). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	CIGNA Corporation
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, since 2009	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.	N/A
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.	N/A

38 Wells Fargo Government Securities 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.	N/A
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.	N/A
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.	N/A
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.	N/A
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, on the Board of Directors, Governance Committee and Finance Committee for the Minnesota Philanthropy Partners (Saint Paul Foundation) from 2012 to 2018, 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 the Board Chair of the Minnesota Wild Foundation since 2010.	N/A

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

Other information (unaudited) Wells Fargo Government Securities Fund 39

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 Kymn3 (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.
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 77 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.

³  Alexander Kymn became the Secretary and Chief Legal Officer effective April 17, 2018.

40 Wells Fargo Government Securities Fund Other information (unaudited)

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Wells Fargo Government Securities Fund

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at an in-person meeting held on May 22-23, 2018 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for Wells Fargo Government Securities Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Wells Capital Management Incorporated (the “Sub-Adviser”), an affiliate of Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”

At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at an in-person meeting in April 2018, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing investment performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.

In providing information to the Board, Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2018. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and investment performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.

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

Nature, extent and quality of services

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

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

Other information (unaudited) Wells Fargo Government Securities Fund 41

Fund investment performance and expenses

The Board considered the investment performance results for the Fund over various time periods ended December 31, 2017. The Board considered these results in comparison to the investment performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the investment performance of the Fund (Administrator Class) was higher than the average investment performance of the Universe for all periods under review. The Board also noted that the investment performance of the Fund was in range of its benchmark index, the Bloomberg Barclays U.S. Aggregate ex Credit Index, for the one- and ten-year periods under review but was lower than its benchmark index for the three- and five-year periods under review.

The Board received information concerning, and discussed factors contributing to, the performance of the Fund relative to the Universe and benchmark for the periods identified above. The Board took note of the explanations for the positive performance during these periods, including with respect to investment decisions and market factors that affected the Fund’s investment performance. The Board noted that the Fund experienced a portfolio manager change in 2017.

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

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

Investment management and sub-advisory fee rates

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

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

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

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

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

42 Wells Fargo Government Securities Fund Other information (unaudited)

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of both WFAM and Wells Fargo & Co. (“Wells Fargo”) as a whole, from providing services to the Fund and the fund family as a whole. The Board noted that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the WFAM and Wells Fargo profitability analysis.

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

Economies of scale

The Board considered the extent to which Funds Management may experience economies of scale in the provision of management services, and the extent to which scale benefits, if any, would be shared with shareholders. In particular, the Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size. It considered that, for a small fund or a fund that shrinks in size, breakpoints conversely can result in higher fee levels. The Board also considered that in addition to management fee breakpoints, competitive management fee rates set at the outset without regard to breakpoints and fee waiver and expense reimbursement arrangements, as well as investments in the business intended to enhance services available to Fund shareholders, are means of sharing potential economies of scale with shareholders of the Fund.

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

Other benefits to Funds Management and the Sub-Adviser

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

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

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

Conclusion

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

Appendix A (unaudited) Wells Fargo Government Securities Fund 43

SALES CHARGE REDUCTIONS AND WAIVERS FOR CERTAIN INTERMEDIARIES

Ameriprise

Effective June 1, 2018, shareholders purchasing Fund shares through an Ameriprise Financial platform or account will be eligible only for the following Class A load waivers (front-end sales charge waivers), which may differ from those disclosed elsewhere in the Fund’s prospectus or Statement of Additional Information.

Front-end Sales Load Waivers on Class A Shares Available at Ameriprise Financial

• Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs or SAR-SEPs.

• Shares purchased through an Ameriprise Financial investment advisory program (if an Advisory or similar share class for such investment advisory program is not available)

• Shares purchased by third party investment advisors on behalf of their advisory clients through Ameriprise Financial’s platform (if an Advisory or similar share class for such investment advisory program is not available)

• Shares purchased through reinvestment of distributions and dividend reinvestment when purchasing shares of the same Fund (but not any other fund within the same fund family)

• Shares exchanged from Class C shares of the same fund in the month of or following the 10-year anniversary of the purchase date. To the extent that the Fund’s prospectus elsewhere provides for a waiver with respect to such shares following a shorter holding period, that waiver will apply to exchanges following such shorter period. To the extent that the Fund’s prospectus elsewhere provides for a waiver with respect to exchanges of Class C shares for load-waived shares, that waiver will also apply to such exchanges.

• Employees and registered representatives of Ameriprise Financial or its affiliates and their immediate family members

• Shares purchased by or through qualified accounts (including IRAs, Coverdell Education Savings Accounts, 401(k)s, 403(b) TSCAs subject to ERISA and defined benefit plans) that are held by a covered family member, defined as an Ameriprise financial advisor and/or the advisor’s spouse, advisor’s lineal ascendant (mother, father, grandmother, grandfather, great grandmother, great grandfather), advisor’s lineal descendant (son, step-son, daughter, step-daughter, grandson, granddaughter, great grandson, great granddaughter) or any spouse of a covered family member who is a lineal descendant

• Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (i.e. Rights of Reinstatement). Subject to the Fund’s policy regarding frequent purchases and redemptions of Fund shares, you may not be able to repurchase shares for the first 30 days after your redemption.

Automatic Exchange of Class C Shares Available at Ameriprise Financial

• Class C shares will automatically exchange to Class A shares in the month of the 10-year anniversary of the purchase date.

Merrill Lynch

Effective April 10, 2017, shareholders purchasing Fund shares through a Merrill Lynch platform or account will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ from those disclosed elsewhere in the Fund’s prospectus or Statement of Additional Information.

Front-end Sales Load Waivers on Class A Shares available at Merrill Lynch

• Employer-sponsored retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan

• Shares purchased by or through a 529 Plan

• Shares purchased through a Merrill Lynch affiliated investment advisory program

44 Wells Fargo Government Securities Fund Appendix A (unaudited)

• Shares purchased by third party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform

• Shares of funds purchased through the Merrill Edge Self-Directed platform (if applicable)

• Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the fund family)

• Shares exchanged from Class C (i.e. level-load) shares of the same fund in the month of or following the 10-year anniversary of the purchase date

• Employees and registered representatives of Merrill Lynch or its affiliates and their family members, as defined by Merrill Lynch, which may differ from the definition of family member in the Fund’s prospectus.

• Directors or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in the Fund’s prospectus

• Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (known as Rights of Reinstatement). Subject to the Fund’s policy regarding frequent purchases and redemptions of Fund shares, you may not be able to repurchase shares for the first 30 days after your redemption.

CDSC Waivers on A, B and C Shares available at Merrill Lynch

• Death or disability of the shareholder

• Shares sold as part of a systematic withdrawal plan as described in the Fund’s prospectus

• Return of excess contributions from an IRA Account

• Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 70½

• Shares sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch

• Shares acquired through a right of reinstatement

• Shares held in retirement brokerage accounts, that are exchanged for a lower cost share class due to transfer to certain fee based accounts or platforms (applicable to A and C shares only)

Front-end load Discounts Available at Merrill Lynch: Breakpoints, Rights of Accumulation & Letters of Intent

• Breakpoints as described in the Fund’s prospectus

• Rights of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.

• Letters of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over a 13-month period of time (if applicable)

Morgan Stanley

Effective on or about July 1, 2018, shareholders purchasing Fund shares through a Morgan Stanley Wealth Management transactional brokerage account will be eligible only for the following Class A load waivers (front-end sales charge waivers), which may differ from and be more limited than those disclosed in the Fund’s prospectus or Statement of Additional Information.

Front-end Sales Load Waivers on Class A Shares Available at Morgan Stanley

• Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans.

• Morgan Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules

• Shares purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund

• Shares purchased through a Morgan Stanley self-directed brokerage account

Appendix A (unaudited) Wells Fargo Government Securities Fund 45

• Class C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are exchanged to Class A shares of the same fund pursuant to Morgan Stanley Wealth Management’s share class exchange program.

• Shares purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred sales charge. This waiver is subject to the Fund’s policy regarding frequent purchases and redemption of Fund shares, as discussed under “Account Information—Frequent Purchases and Redemptions of Fund Shares” in the Fund’s prospectus.

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For more information

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

Wells Fargo Funds

P.O. Box 219967

Kansas City, MO 64121-9967

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 the trade name for certain investment advisory/management firms owned by Wells Fargo & Company. These firms include but are not limited to Wells Capital Management Incorporated and Wells Fargo Funds Management, LLC. Certain products managed by WFAM entities are distributed by Wells Fargo Funds Distributor, LLC (a broker/dealer and Member FINRA).

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.

315405 10-18 A216/AR216 08-18

Annual Report

August 31, 2018

Wells Fargo High Yield Bond Fund

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	6
Fund expenses	10
Portfolio of investments	11
Financial statements
Statement of assets and liabilities	19
Statement of operations	20
Statement of changes in net assets	21
Financial highlights	22
Notes to financial statements	26
Report of independent registered public accounting firm	32
Other information	33
Appendix A	40

The views expressed and any forward-looking statements are as of August 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 High Yield Bond Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

After advancing during 2017, economic growth and stock markets globally diverged during the first eight months of 2018.

Dear Shareholder:

We are pleased to offer you this annual report for the Wells Fargo High Yield Bond Fund for the 12-month period that ended August 31, 2018. After advancing during 2017, economic growth and stock markets globally diverged during the first eight months of 2018. For fixed-income investors, taxable bond returns suffered and high-yield and municipal bond returns were positive.

For the period, U.S. stocks, as measured by the S&P 500 Index,¹ gained 19.66%, and international stocks, as measured by the MSCI ACWI ex USA Index (Net),² added 3.18%. Based on the MSCI EM Index (Net),³ emerging market stocks lost 0.68%. For bond investors, the Bloomberg Barclays U.S. Aggregate Bond Index⁴ declined 1.05% while the Bloomberg Barclays Global Aggregate ex-USD Index⁵ fell 1.64%. The Bloomberg Barclays Municipal Bond Index⁶ added 0.49%, and the ICE BofAML U.S. High Yield Index⁷ was up 3.26%.

Continued optimism in the U.S. characterized the fourth quarter of 2017.

Some observers described economic conditions in late 2017 as a Goldilocks scenario: synchronized global growth, low inflation, healthy corporate earnings, and a weaker U.S. dollar that supported international growth. During the quarter, the U.S. Bureau of Economic Analysis reported that annualized U.S. gross domestic product (GDP) growth for the third quarter of 2017 was 2.8% and inflation remained below U.S. Federal Reserve (Fed) targets. U.S. corporate earnings and consumer confidence improved.

Economic momentum increased in Europe. The Bank of England (BOE) raised interest rates in November 2017 to 0.50%, the first increase in more than 10 years, indicating confidence in the economy’s growth potential. Meanwhile, the European Central Bank and the Bank of Japan kept interest rates low to spur business activities and bought bonds in an effort to encourage equity investments. The People’s Bank of China’s (PBOC’s) policies sought to stimulate business. Many emerging market economies benefited from stronger currencies versus the U.S. dollar, while commodity price increases benefited countries that rely on natural resources for exports.

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 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.

⁶  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.

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 High Yield Bond Fund 3

Volatility reemerged during the first quarter of 2018 as global tensions and inflation fears increased.

Stock market gains in January 2018 followed the passage of lower U.S. tax rates. Some investors then grew concerned about trade, particularly between the U.S. and China, and the specter of inflation. The Fed followed its 25-basis-point (bp; 100 bps equal 1.00%) federal funds rate increase in December 2017 with a further 25-bp increase in March 2018. The inflation rate in March reached the Fed’s 2% target for the first time in a year.

The S&P 500 Index closed the first quarter with a negative return, the first negative quarterly return for the index since 2014. Overseas investment markets reversed strong returns in 2017, hurt by a stronger U.S. dollar and mounting trade and diplomatic tensions. After gaining 27.19% for the 12-month period that ended December 31, 2017, the MSCI ACWI ex USA Index (Net) declined 1.81% for the quarter that ended March 31, 2018.

Global trade tensions escalated during the second quarter.

Global trade tensions escalated throughout the second quarter of 2018. The U.S. government imposed tariffs, and foreign governments in North America, Europe, and Asia retaliated. The escalating tensions chilled investment activity as observers awaited signals of next steps.

Meanwhile, inflation continued an upward trend. The CPI-U⁸ added 0.1% in June after increases of 0.2% in both April and May. On a year-over-year basis, the all-items index rose 2.9% for the 12 months that ended June 30, 2018. The index for all items less food and energy rose 2.3% for the same 12-month period.

U.S. stocks gained while international stocks and bonds declined during the summer of 2018.

The U.S. economy strengthened during the summer months. Revised second-quarter GDP data released in August showed the U.S. economy growing at a 4.2% rate. After ticking up slightly in June, the unemployment rate in the U.S. was 3.9% in July and August, according to the U.S. Department of Labor. Wages showed more consistent growth than they had in recent quarters, and consumer confidence remained strong.

Several U.S. equity market indices reached records during August, with the S&P 500 Index gaining 7.76% for the three-month period that ended August 31, 2018. International stock values continued to suffer under the effects of a strong U.S. dollar and continuing trade tensions. The MSCI ACWI ex USA Index (Net) and the MSCI EM Index (Net) were down 4.70% and 1.64%, respectively, during the same three-month period.

The Fed increased the federal funds rate in June, and expectations grew that two more rate increases were in the offing in 2018. Long-term interest rates in the U.S. remained at higher levels relative to the prior 10 years. Rates on 10-year and 30-year Treasury bonds—2.46% and 2.81%, respectively, on January 1, 2018—were 2.86% and 3.02%, respectively, on August 31, off their peak levels on May 17, 2018, of 3.11% and 3.25%, respectively. Some investors became more aware of and concerned about the potential for an inverted yield curve—sometimes a recession signal—as short-term rates increased more quickly than long-term rates. The Fed decided to forgo an interest rate increase at its August meeting.

The S&P 500 Index closed the first quarter with a negative return, the first negative quarterly return for the index since 2014.

⁸  The Consumer Price Index for All Urban Consumers (CPI-U) measures the changes in the price of a basket of goods and services purchased by urban consumers. The urban consumer population is deemed by many as a better representative measure of the general public because close to 90% of the country’s population lives in highly populated areas. You cannot invest directly in an index.

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

Internationally, members of Prime Minister Theresa May’s U.K./Brexit negotiating team resigned amid unproductive negotiations. In early August, the BOE’s Monetary Policy Committee increased its key interest rate to 0.75%. Central banks in Europe and Japan maintained low interest rates and accommodative monetary policies. Amid rising trade uncertainty, the PBOC cut reserve requirement ratios and accelerated infrastructure spending and tax cuts for business enterprises and individuals. Nevertheless, a strengthening U.S. dollar and the trade tensions remained headwinds for investors overseas.

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

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

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

Sincerely,

Andrew Owen

President

Wells Fargo Funds

Notice to shareholders

At a meeting held on August 14-15, 2018, the Board of Trustees of the Fund approved the following policy which will be effective on or about February 5, 2019:

Class C shares will convert automatically into Class A shares ten years after the initial date of purchase or, if you acquired your Class C shares through an exchange or conversion from another share class, ten years after the date you acquired your Class C shares. When Class C shares that you acquired through a purchase or exchange convert, any other Class C shares that you purchased with reinvested dividends and distributions also will convert into Class A shares on a pro rata basis. A shorter holding period may also apply depending on your intermediary. Please see “Appendix A—Sales Charge Reductions and Waivers for Certain Intermediaries” in the Fund’s prospectus or at the end of this report.

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 High Yield Bond Fund Performance highlights (unaudited)

Investment objective

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

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio manager

Margaret D. Patel

Average annual total returns (%) as of August 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 (EKHAX)	1-20-1998		(3.85	)		4.20		6.72		0.68			5.17		7.22		1.02		0.93
Class C (EKHCX)	1-21-1998		(1.07	)		4.39		6.43		(0.07	)		4.39		6.43		1.77		1.68
Administrator Class (EKHYX)	4-14-1998		–			–		–		0.82			5.43		7.48		0.96		0.80
Institutional Class (EKHIX)	10-31-2014		–			–		–		0.79			5.52		7.52		0.69		0.53
ICE BofAML U.S. High Yield Constrained Index4	–		–			–		–		3.27			5.64		8.41		–		–

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

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

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

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

Please see footnotes on page 7.

Performance highlights (unaudited) Wells Fargo High Yield Bond Fund 7

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

¹  Historical performance shown for the Institutional Class shares prior to their inception reflects the performance of the Administrator Class shares, and is not adjusted to reflect the Institutional Class expenses. If these expenses had been included, returns for the Institutional Class shares would be higher. Historical performance shown for all classes of the Fund prior to July 12, 2010 is based on the performance of the Fund’s predecessor, Evergreen High Income Fund.

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

³  The manager has contractually committed through December 31, 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 ICE BofAML U.S. High Yield Constrained Index is a market value-weighted index of all domestic and Yankee high-yield bonds, including deferred interest bonds and payment-in kind securities. Issues included in the index have maturities of one year or more and have a credit rating lower than BBB–/Baa3 but are not in default. The ICE BofAML U.S. High Yield Constrained Index limits any individual issuer to a maximum of 2% benchmark exposure. You cannot invest directly in an index. Copyright 2018. ICE Data Indices, LLC. All rights reserved.

⁵  The chart compares the performance of Class A shares for the most recent ten years with the performance of the ICE BofAML U.S. High Yield Constrained Index. The chart assumes a hypothetical investment of $10,000 in Class A shares and reflects all operating expenses and assumes the maximum initial sales charge of 4.50%.

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

⁷  The credit quality distribution of portfolio holdings reflected in the chart is based on ratings from Standard & Poor’s, Moody’s Investors Service, and/ or Fitch Ratings Ltd. Credit quality ratings apply to the underlying holdings of the Fund and not to the Fund itself. The percentages of the Fund’s portfolio with the ratings depicted in the chart are calculated based on the total market value of fixed income securities held by the Fund. If a security was rated by all three rating agencies, the middle rating was utilized. If rated by two of three rating agencies, the lower rating was utilized, and if rated by one of the rating agencies, that rating was utilized. Standard & Poor’s rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Ratings from A to CCC may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the rating categories. Standard & Poor’s rates the creditworthiness of short-term notes from SP-1 (highest) to SP-3 (lowest). Moody’s rates the creditworthiness of bonds, ranging from Aaa (highest) to C (lowest). Ratings Aa to B may be modified by the addition of a number 1 (highest) to 3 (lowest) to show relative standing within the ratings categories. Moody’s rates the creditworthiness of short-term U.S. tax-exempt municipal securities from MIG 1/VMIG 1 (highest) to SG (lowest). Fitch rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Credit quality distribution is subject to change and may have changed since the date specified.

* This security was no longer held at the end of the reporting period.

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

MANAGER’S DISCUSSION

Fund highlights

∎ The Fund underperformed its benchmark, the ICE BofAML U.S. High Yield Constrained Index, for the 12-month period that ended August 31, 2018.

∎ The Fund’s overweight to better-quality high-yield bonds detracted from performance during the fiscal year because higher-quality credit tiers underperformed lower-quality credit tiers amid strong investor demand for yield.

∎ The Fund’s modest allocation to common stocks (about 9% of total assets) provided above-index returns. Detractors included some of the Fund’s holdings in energy and midstream energy companies as well as information technology (IT) companies.

∎ Detractors from bond performance included Diebold, Incorporated, a maker of ATM machines and point-of-sale services; Adient Global Holdings Company an automotive seating supplier; and Iron Mountain Incorporated, a records management and storage company.

∎ Detractors from equity performance included energy-related Kinder Morgan, Incorporated, and The Williams Companies, Incorporated*, along with semiconductor company Broadcom, Incorporated and Applied Materials, Incorporated, a semiconductor equipment manufacturer.

Ten largest holdings (%) as of August 31, 20186
HCA Incorporated, 5.38%, 2-1-2025	2.96
Mallinckrodt plc, 5.50%, 4-15-2025	2.94
Cheniere Corpus Christi Holdings LLC, 5.13%, 6-30-2027	2.87
TransDigm Group Incorporated, 6.38%, 6-15-2026	2.68
SPX FLOW Incorporated, 5.88%, 8-15-2026	2.64
WESCO Distribution Incorporated, 5.38%, 6-15-2024	2.54
Iron Mountain Incorporated, 5.38%, 6-1-2026	2.52
AMN Healthcare Incorporated, 5.13%, 10-1-2024	2.50
Tronox Finance plc, 5.75%, 10-1-2025	2.41
Post Holdings Incorporated, 5.00%, 8-15-2026	2.01

Most sectors of the corporate bond market delivered slightly negative total returns over the fiscal year, as income earned was somewhat more than offset by declines in bond prices as interest rates moved higher.

Fixed-income investors realized modestly negative returns during the period.

Low inflation, positive growth, and moderately higher interest rates combined to produce modestly negative returns for fixed-income investors in virtually all quality sectors, including both investment-grade and high-yield corporate bonds, with the only exception being bonds rated CCC or lower, which produced positive returns. For example, 10-year U.S. Treasury bonds at the end of August 2017 yielded approximately 2.12%, and by month-end August 2018, the yield of these bonds had risen to 2.86%.

The average yield for high-yield bonds also increased in the fiscal year, with the result that the yield advantage of high-yield bonds over similar-maturity Treasury bonds dropped from +398 basis points (bps; 100 bps equal 1.00%) on August 31, 2017, to +360 bps and a yield of 6.31% on August 31, 2018.

Bonds of specialty chemicals maker A. Schulman, Incorporated, outperformed, as the company was acquired by investment-grade-rated LyondellBasell Industries N.V. Bonds of TransDigm Group Incorporated, a manufacturer of aircraft components, also outperformed, reflecting good financial results. Bonds of Cheniere Corpus Christi Holdings, LLC, a company focused on transporting liquefied natural gas, contributed to performance. In the IT sector, bonds of Micron Technology, Incorporated, a maker of memory products, and Seagate Technology plc, a manufacturer of hard disk drive memory products, added to performance.

The Fund’s stock allocation was a modest 9% of total assets. However, the Fund’s holdings substantially outperformed the high-yield market and thus provided incremental return and potential liquidity. Holdings of Plains All American Pipeline, L.P.; Abbott Laboratories; LyondellBasell; and Alphabet Incorporated contributed to performance.

Please see footnotes on page 7.

Performance highlights (unaudited) Wells Fargo High Yield Bond Fund 9

Credit quality as of August 31, 2018⁷

The Fund’s positioning reflects our optimistic economic outlook and expectations for interest rates.

The Fund’s holdings of higher-rated below-investment-grade bonds, along with a small exposure to common stocks, incorporate our forecast of continued moderate economic growth, historically low default rates for high-yield bonds, and gradual increases in short-term Treasury yields as the U.S. Federal Reserve (Fed) seeks to end its policy of low interest rates.

The portfolio maintains an allocation to out-of-benchmark BBB-rated debt, with continued avoidance of CCC-rated and distressed holdings, which we believe do not represent good relative investment value. In addition, the portfolio is

concentrated in companies whose operations are primarily in the U.S., with minimal exposure to companies whose products and services are dependent on commodity-based emerging market economies, many of which continue to experience growth rates that are below historical levels.

Virtually all of the Fund’s bond holdings are in companies with U.S. public equity outstanding, which we think provides a more flexible capital structure and more transparent reporting of financial results. We hold a modest allocation to common stocks, believing that this exposure offers fixed-income investors the potential for capital appreciation. In today’s high-yield bond market, most bonds are trading at prices around their face value, thus limiting the potential of future capital appreciation in our bond holdings.

Currently, many investors are worried that the Fed may continue to raise short-term interest rates, with possible negative effects on the yields and prices of high-yield bonds. We believe that the Fed will likely be sensitive in pursuing its higher interest rate policy so as not to disrupt the steady growth that the economy has been experiencing since the recovery from the financial crisis of 2008.

We believe the pace of any increase in Treasury interest rates may be quite modest and not likely to cause stress on the majority of high-yield, interest-rate-sensitive companies. We think the yield advantage offered by high-yield bonds over Treasury issues should remain near its historical low levels, reflecting low inflation, continued economic growth, and ample liquidity in the financial system.

We believe risk in the high-yield market could arise from those highly levered companies in weak or very competitive industries, putting pressure on those companies as they seek to service their debts. Thus, at a time of historically low interest rates and relatively narrow yield advantage to be gained from speculative-grade bonds, we continue to position the Fund in relatively higher-quality issues and in industries we perceive to be stable to growing, which may offer the best possibility of earning attractive total returns with lower risk of principal losses from deteriorating credits.

Please see footnotes on page 7.

10 Wells Fargo High Yield Bond Fund Fund expenses (unaudited)

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

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from March 1, 2018 to August 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 3-1-2018		Ending account value 8-31-2018		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,006.45	$	4.70		0.93	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.52	$	4.74		0.93	%
Class C
Actual	$	1,000.00	$	1,002.66	$	8.48		1.68	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.74	$	8.54		1.68	%
Administrator Class
Actual	$	1,000.00	$	1,010.18	$	4.05		0.80	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.17	$	4.08		0.80	%
Institutional Class
Actual	$	1,000.00	$	1,008.48	$	2.68		0.53	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.53	$	2.70		0.53	%

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

Portfolio of investments—August 31, 2018 Wells Fargo High Yield Bond Fund 11

Security name	Shares		Value
Common Stocks: 9.60%
Consumer Staples: 0.21%
Food Products: 0.21%
Lamb Weston Holdings Incorporated		15,000	$	1,014,000
Energy: 2.98%
Oil, Gas & Consumable Fuels: 2.98%
Andeavor Logistics LP		85,000		4,129,300
Enterprise Products Partners		50,000		1,430,000
Kinder Morgan Incorporated		225,000		3,982,500
Plains All American Pipeline LP		180,000		4,701,600
				14,243,400
Financials: 0.15%
Banks: 0.15%
PNC Financial Services Group Incorporated		5,000		717,700
Health Care: 0.90%
Health Care Equipment & Supplies: 0.67%
Abbott Laboratories		35,000		2,339,400
Becton Dickinson & Company		2,000		523,740
West Pharmaceutical Services Incorporated		3,000		351,150
				3,214,290
Life Sciences Tools & Services: 0.14%
Agilent Technologies Incorporated		10,000		675,400
Pharmaceuticals: 0.09%
Merck KGaA ADR		20,000		420,800
Industrials: 1.29%
Aerospace & Defense: 0.67%
Huntington Ingalls Industries Incorporated		5,000		1,222,350
Raytheon Company		10,000		1,994,400
				3,216,750
Industrial Conglomerates: 0.37%
Roper Industries Incorporated		6,000		1,790,220
Machinery: 0.25%
John Bean Technologies Corporation		10,000		1,183,000
Information Technology: 2.26%
Electronic Equipment, Instruments & Components: 0.20%
Amphenol Corporation Class A		10,000		945,800

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

12 Wells Fargo High Yield Bond Fund Portfolio of investments—August 31, 2018

Security name	Shares		Value
Internet Software & Services: 0.32%
Alphabet Incorporated Class A †		1,000	$	1,231,800
Nutanix Incorporated Class A †		5,000		281,600
				1,513,400
IT Services: 0.29%
Leidos Holdings Incorporated		20,000		1,415,400
Semiconductors & Semiconductor Equipment: 1.26%
Applied Materials Incorporated		10,000		430,200
Broadcom Incorporated		10,000		2,190,300
Microchip Technology Incorporated «		5,000		430,150
Micron Technology Incorporated †		25,000		1,313,000
QUALCOMM Incorporated		5,000		343,550
Texas Instruments Incorporated		5,000		562,000
Xilinx Incorporated		10,000		778,300
				6,047,500
Software: 0.16%
Salesforce.com Incorporated †		5,000		763,400
Technology Hardware, Storage & Peripherals: 0.03%
Pure Storage Incorporated Class A †		5,000		134,200
Materials: 1.18%
Chemicals: 1.18%
Celanese Corporation Series A		15,000		1,752,450
Eastman Chemical Company		10,000		970,300
Huntsman Corporation		22,000		670,780
LyondellBasell Industries NV Class A		20,000		2,255,600
				5,649,130
Real Estate: 0.19%
Equity REITs: 0.19%
Saul Centers Incorporated		15,000		900,000
Utilities: 0.44%
Electric Utilities: 0.15%
American Electric Power Company Incorporated		10,000		717,300
Gas Utilities: 0.29%
Atmos Energy Corporation		15,000		1,383,450
Total Common Stocks (Cost $40,174,919)				45,945,140

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

Portfolio of investments—August 31, 2018 Wells Fargo High Yield Bond Fund 13

Security name	Interest rate			Maturity date		Principal			Value
Corporate Bonds and Notes: 75.12%
Consumer Discretionary: 5.69%
Auto Components: 2.15%
Allison Transmission Incorporated 144A		5.00	%		10-1-2024	$	1,000,000		$	985,000
Dana Holding Corporation		5.50			12-15-2024		1,500,000			1,486,875
Goodyear Tire & Rubber Company «		5.13			11-15-2023		2,500,000			2,493,750
Tenneco Incorporated		5.00			7-15-2026		6,000,000			5,325,000
										10,290,625
Hotels, Restaurants & Leisure: 0.65%
Speedway Motorsports Incorporated		5.13			2-1-2023		3,115,000			3,083,850
Media: 2.89%
CCO Holdings LLC 144A		5.75			2-15-2026		3,000,000			3,000,000
Clear Channel Worldwide Holdings Incorporated		6.50			11-15-2022		3,000,000			3,056,250
McGraw-Hill Global Education Holdings LLC 144A«		7.88			5-15-2024		5,500,000			4,840,000
Sinclair Television Group Incorporated 144A		5.63			8-1-2024		3,000,000			2,955,000
										13,851,250
								��
Consumer Staples: 3.63%
Food Products: 3.21%
Dean Foods Company 144A«		6.50			3-15-2023		5,000,000			4,762,500
Lamb Weston Holdings Incorporated 144A		4.63			11-1-2024		1,000,000			982,500
Post Holdings Incorporated 144A		5.00			8-15-2026		10,000,000			9,600,000
										15,345,000
Household Products: 0.42%
Spectrum Brands Incorporated		5.75			7-15-2025		2,000,000			2,020,000
Energy: 4.17%
Energy Equipment & Services: 0.21%
NGPL PipeCo LLC 144A		4.88			8-15-2027		1,000,000			1,007,740
Oil, Gas & Consumable Fuels: 3.96%
Cheniere Corpus Christi Holdings LLC		5.13			6-30-2027		13,500,000			13,736,250
Tennessee Gas Pipeline Company		7.00			3-15-2027		4,534,000			5,244,568
										18,980,818
Financials: 2.12%
Banks: 0.66%
Bank of America Corporation (3 Month LIBOR +3.90%) ±		6.10			12-29-2049		3,000,000			3,159,750
Consumer Finance: 0.72%
Navient Corporation		5.88			10-25-2024		1,000,000			967,500
SLM Corporation		5.50			1-25-2023		2,500,000			2,471,850
										3,439,350

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

14 Wells Fargo High Yield Bond Fund Portfolio of investments—August 31, 2018

Security name	Interest rate			Maturity date		Principal		Value
Insurance: 0.74%
Genworth Holdings Incorporated		4.80	%		2-15-2024	$	4,000,000	$	3,560,000
Health Care: 17.29%
Health Care Equipment & Supplies: 2.15%
Avanos Medical Incorporated		6.25			10-15-2022		1,000,000		1,022,500
Teleflex Incorporated		4.88			6-1-2026		9,415,000		9,273,775
									10,296,275
Health Care Providers & Services: 11.17%
AMN Healthcare Incorporated 144A		5.13			10-1-2024		12,298,000		11,944,433
Davita Incorporated		5.00			5-1-2025		9,000,000		8,527,500
Davita Incorporated		5.13			7-15-2024		2,000,000		1,928,240
Encompass Health Corporation		5.75			11-1-2024		4,000,000		4,050,000
HCA Incorporated		5.38			2-1-2025		14,000,000		14,160,020
HealthSouth Corporation		5.13			3-15-2023		5,000,000		4,987,500
Select Medical Corporation		6.38			6-1-2021		3,500,000		3,535,000
West Street Merger Subordinate Incorporated 144A		6.38			9-1-2025		4,400,000		4,312,000
									53,444,693
Health Care Technology: 1.04%
Quintiles IMS Holdings Incorporated 144A		4.88			5-15-2023		3,000,000		3,007,500
Quintiles IMS Holdings Incorporated 144A		5.00			10-15-2026		2,000,000		1,975,000
									4,982,500
Life Sciences Tools & Services: 1.34%
Charles River Laboratories Incorporated 144A		5.50			4-1-2026		6,300,000		6,394,500
Pharmaceuticals: 1.59%
Catalent Pharma Solutions Incorporated 144A		4.88			1-15-2026		8,000,000		7,630,000
Industrials: 15.06%
Aerospace & Defense: 4.71%
Huntington Ingalls Industries Incorporated 144A		5.00			11-15-2025		4,500,000		4,663,800
Moog Incorporated 144A		5.25			12-1-2022		5,000,000		5,068,750
TransDigm Group Incorporated		6.38			6-15-2026		12,700,000		12,834,938
									22,567,488
Commercial Services & Supplies: 1.54%
Acco Brands Corporation 144A		5.25			12-15-2024		7,417,000		7,379,915
Construction & Engineering: 0.62%
Aecom Company		5.13			3-15-2027		3,000,000		2,947,500
Machinery: 5.00%
Oshkosh Corporation		5.38			3-1-2025		4,163,000		4,298,298
SPX FLOW Incorporated 144A		5.63			8-15-2024		7,000,000		7,017,500
SPX FLOW Incorporated 144A		5.88			8-15-2026		12,500,000		12,625,000
									23,940,798

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

Portfolio of investments—August 31, 2018 Wells Fargo High Yield Bond Fund 15

Security name	Interest rate			Maturity date		Principal		Value
Trading Companies & Distributors: 3.19%
United Rentals North America Incorporated		5.75	%		11-15-2024	$	3,000,000	$	3,096,600
WESCO Distribution Incorporated		5.38			6-15-2024		12,245,000		12,153,163
									15,249,763
Information Technology: 11.50%
Communications Equipment: 2.60%
CommScope Incorporated 144A		5.50			6-15-2024		8,200,000		8,302,500
CommScope Technologies Finance LLC 144A		6.00			6-15-2025		4,000,000		4,140,000
									12,442,500
Electronic Equipment, Instruments & Components: 1.87%
TTM Technologies Incorporated 144A		5.63			10-1-2025		9,000,000		8,955,000
IT Services: 0.42%
Gartner Incorporated 144A		5.13			4-1-2025		2,000,000		2,025,000
Semiconductors & Semiconductor Equipment: 3.61%
Micron Technology Incorporated		5.50			2-1-2025		7,900,000		8,175,710
Versum Materials Incorporated 144A		5.50			9-30-2024		8,901,000		9,101,273
									17,276,983
Software: 1.86%
Fair Isaac Corporation 144A		5.25			5-15-2026		1,000,000		1,007,500
Nuance Communications Company		6.00			7-1-2024		6,760,000		6,929,000
Symantec Corporation 144A		5.00			4-15-2025		1,000,000		991,125
									8,927,625
Technology Hardware, Storage & Peripherals: 1.14%
Diebold Incorporated «		8.50			4-15-2024		7,700,000		5,438,125
Materials: 8.86%
Chemicals: 6.61%
Koppers Incorporated 144A		6.00			2-15-2025		3,363,000		3,379,815
Olin Corporation		5.50			8-15-2022		8,275,000		8,543,938
Rayonier Advanced Materials Products Incorporated 144A		5.50			6-1-2024		7,775,000		7,408,253
Tronox Incorporated 144A«		6.50			4-15-2026		2,000,000		1,960,000
Valvoline Incorporated		4.38			8-15-2025		8,000,000		7,640,000
Valvoline Incorporated		5.50			7-15-2024		2,630,000		2,689,175
									31,621,181
Containers & Packaging: 1.58%
Berry Global Incorporated		5.13			7-15-2023		2,000,000		1,990,000
Crown Americas Capital Corporation IV		4.50			1-15-2023		2,000,000		2,000,000
Owens-Brockway Glass Container Incorporated 144A		5.88			8-15-2023		2,000,000		2,050,000
Sealed Air Corporation 144A		5.25			4-1-2023		1,500,000		1,522,500
									7,562,500

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

16 Wells Fargo High Yield Bond Fund Portfolio of investments—August 31, 2018

Security name		Interest rate			Maturity date		Principal		Value
Metals & Mining: 0.55%
Steel Dynamics Incorporated			5.50	%		10-1-2024	$	2,550,000	$	2,613,750
Paper & Forest Products: 0.12%
P.H. Glatfelter Company			5.38			10-15-2020		600,000		600,000
Real Estate: 6.36%
Equity REITs: 6.36%
Equinix Incorporated			5.38			5-15-2027		6,430,000		6,542,525
Equinix Incorporated			5.75			1-1-2025		5,193,000		5,348,790
Iron Mountain Incorporated 144A			4.88			9-15-2027		500,000		463,300
Iron Mountain Incorporated 144A			5.38			6-1-2026		12,750,000		12,080,625
Iron Mountain Incorporated			5.75			8-15-2024		2,000,000		1,982,500
Sabra Health Care LP			5.38			6-1-2023		4,000,000		4,050,000
										30,467,740
Telecommunication Services: 0.44%
Wireless Telecommunication Services: 0.44%
T-Mobile USA Incorporated			6.50			1-15-2026		2,000,000		2,114,380
	��
Total Corporate Bonds and Notes (Cost $368,156,603)										359,616,599
Yankee Corporate Bonds and Notes: 13.66%
Consumer Discretionary: 3.46%
Auto Components: 1.73%
Adient Global Holdings Company 144A			4.88			8-15-2026		9,210,000		8,289,000
Automobiles: 0.64%
Fiat Chrysler Automobiles NV			5.25			4-15-2023		3,000,000		3,048,750
Hotels, Restaurants & Leisure: 0.66%
International Game Technology plc 144A			6.50			2-15-2025		3,000,000		3,150,000
Media: 0.43%
Quebecor Media Incorporated			5.75			1-15-2023		2,000,000		2,070,000
Financials: 2.41%
Diversified Financial Services: 2.41%
Tronox Finance plc 144A			5.75			10-1-2025		12,000,000		11,550,000
Health Care: 2.95%
Pharmaceuticals: 2.95%
Mallinckrodt plc 144A«			5.50			4-15-2025		16,500,000		14,086,875
Industrials: 1.71%
Electrical Equipment: 1.71%
Sensata Technologies BV 144A			4.88			10-15-2023		3,000,000		3,000,000
Sensata Technologies BV 144A			5.63			11-1-2024		5,000,000		5,175,000
										8,175,000

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

Portfolio of investments—August 31, 2018 Wells Fargo High Yield Bond Fund 17

Security name	Interest rate			Maturity date		Principal		Value
Information Technology: 2.73%
Technology Hardware, Storage & Peripherals: 2.73%
Seagate HDD		4.75	%		6-1-2023	$	4,140,000	$	4,157,718
Seagate HDD		4.88			6-1-2027		9,500,000		8,914,629
									13,072,347
Telecommunication Services: 0.40%
Diversified Telecommunication Services: 0.40%
Virgin Media Finance plc 144A		5.75			1-15-2025		2,000,000		1,927,498
Total Yankee Corporate Bonds and Notes (Cost $68,698,726)									65,369,470
	Yield					Shares
Short-Term Investments: 7.79%
Investment Companies: 7.79%
Securities Lending Cash Investment LLC (l)(r)(u)		2.07					34,166,983		34,170,400
Wells Fargo Government Money Market Fund Select Class (l)(u)		1.87					3,114,436		3,114,436
Total Short-Term Investments (Cost $37,284,836)									37,284,836

Total investments in securities (Cost $514,315,084)	106.17	%		508,216,045
Other assets and liabilities, net	(6.17	)		(29,525,556	)
Total net assets	100.00	%	$	478,690,489

† 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.

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

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

(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.

Abbreviations:

ADR American depositary receipt

LIBOR London Interbank Offered Rate

REIT Real estate investment trust

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

18 Wells Fargo High Yield Bond Fund Portfolio of investments—August 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		13,052,787		84,227,779		63,113,583		34,166,983	$	654	$	(615	)	$	71,914	$	34,170,400
Wells Fargo Government Money Market Fund Select Class		8,238,288		163,497,303		168,621,155		3,114,436		0		0			60,060		3,114,436
									$	654	$	(615	)	$	131,974	$	37,284,836		7.79	%

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

Statement of assets and liabilities—August 31, 2018 Wells Fargo High Yield Bond Fund 19

Assets
Investments in unaffiliated securities (including $33,496,577 of securities loaned), at value (cost $477,030,248)	$	470,931,209
Investments in affiliated securities, at value (cost $37,284,836)		37,284,836
Receivable for Fund shares sold		50,892
Receivable for dividends and interest		5,883,012
Receivable for securities lending income		7,359
Prepaid expenses and other assets		113,511
Total assets		514,270,819
Liabilities
Payable upon receipt of securities loaned		34,169,293
Payable for Fund shares redeemed		1,037,840
Management fee payable		191,395
Administration fees payable		60,153
Distribution fee payable		33,786
Trustees’ fees and expenses payable		2,097
Accrued expenses and other liabilities		85,766
Total liabilities		35,580,330
Total net assets	$	478,690,489
NET ASSETS CONSIST OF
Paid-in capital	$	525,135,115
Overdistributed net investment income		(35,978	)
Accumulated net realized losses on investments		(40,309,609	)
Net unrealized losses on investments		(6,099,039	)
Total net assets	$	478,690,489
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	272,169,888
Shares outstanding – Class A1		82,923,853
Net asset value per share – Class A		$3.28
Maximum offering price per share – Class A2		$3.43
Net assets – Class C	$	47,810,706
Shares outstanding – Class C1		14,564,342
Net asset value per share – Class C		$3.28
Net assets – Administrator Class	$	23,939,686
Shares outstanding – Administrator Class1		7,287,087
Net asset value per share – Administrator Class		$3.29
Net assets – Institutional Class	$	134,770,209
Shares outstanding – Institutional Class1		41,031,317
Net asset value per share – Institutional Class		$3.28

¹  The Fund has an unlimited number of authorized shares.

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

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

20 Wells Fargo High Yield Bond Fund Statement of operations—year ended August 31, 2018

Investment income
Interest	$	25,030,711
Dividends (net of foreign withholding taxes of $817)		1,312,630
Income from affiliated securities		131,974
Total investment income		26,475,315
Expenses
Management fee		2,818,838
Administration fees
Class A		470,866
Class C		90,147
Administrator Class		27,576
Institutional Class		107,995
Shareholder servicing fees
Class A		735,727
Class C		140,854
Administrator Class		68,710
Distribution fee
Class C		422,562
Custody and accounting fees		32,686
Professional fees		62,301
Registration fees		83,083
Shareholder report expenses		104,409
Trustees’ fees and expenses		22,852
Other fees and expenses		14,156
Total expenses		5,202,762
Less: Fee waivers and/or expense reimbursements		(583,248	)
Net expenses		4,619,514
Net investment income		21,855,801
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		6,372,736
Affiliated securities		654
Net realized gains on investments		6,373,390
Net change in unrealized gains (losses) on:
Unaffiliated securities		(25,332,208	)
Affiliated securities		(615	)
Net change in unrealized gains (losses) on investments		(25,332,823	)
Net realized and unrealized gains (losses) on investments		(18,959,433	)
Net increase in net assets resulting from operations	$	2,896,368

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

Statement of changes in net assets Wells Fargo High Yield Bond Fund 21

	Year ended August 31, 2018						Year ended August 31, 2017
Operations
Net investment income				$	21,855,801					$	24,919,734
Net realized gains on investments					6,373,390						6,347,524
Net change in unrealized gains (losses) on investments					(25,332,823	)					7,886,932
Net increase in net assets resulting from operations					2,896,368						39,154,190
Distributions to shareholders from
Net investment income
Class A					(11,998,114	)					(14,210,998	)
Class B					N/A						(14,959	)1
Class C					(1,891,216	)					(2,374,586	)
Administrator Class					(1,158,390	)					(1,969,904	)
Institutional Class					(6,020,709	)					(5,524,870	)
Tax basis return of capital
Class A					(464,808	)					(410,144	)
Class B					N/A						(432	)1
Class C					(73,266	)					(68,533	)
Administrator Class					(44,876	)					(56,853	)
Institutional Class					(233,242	)					(159,453	)
Total distributions to shareholders					(21,884,621	)					(24,790,732	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		4,507,185			15,024,416			8,416,164			28,003,186
Class B		N/A			N/A			12	1		39	1
Class C		604,048			2,028,540			946,458			3,143,229
Administrator Class		1,169,119			3,905,011			6,750,591			22,463,004
Institutional Class		26,302,261			88,474,810			26,266,703			87,446,183
					109,432,777						141,055,641
Reinvestment of distributions
Class A		3,396,062			11,304,123			3,942,159			13,168,904
Class B		N/A			N/A			4,383	1		14,450	1
Class C		579,628			1,929,924			693,090			2,315,974
Administrator Class		345,781			1,152,618			589,815			1,965,669
Institutional Class		1,807,352			6,016,786			1,653,998			5,539,894
					20,403,451						23,004,891
Payment for shares redeemed
Class A		(17,281,250	)		(57,593,665	)		(32,018,320	)		(106,244,993	)
Class B		N/A			N/A			(268,372	)1		(896,622	)1
Class C		(4,753,703	)		(15,786,507	)		(5,530,431	)		(18,463,311	)
Administrator Class		(3,502,094	)		(11,686,695	)		(21,206,310	)		(69,867,066	)
Institutional Class		(24,076,647	)		(80,563,659	)		(21,129,365	)		(70,531,940	)
					(165,630,526	)					(266,003,932	)
Net decrease in net assets resulting from capital share transactions					(35,794,298	)					(101,943,400	)
Total decrease in net assets					(54,782,551	)					(87,579,942	)
Net assets
Beginning of period					533,473,040						621,052,982
End of period				$	478,690,489					$	533,473,040
Overdistributed net investment income				$	(35,978	)				$	(177,156	)

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

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

22 Wells Fargo High Yield Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended August 31
CLASS A	2018			2017			2016			2015			2014
Net asset value, beginning of period		$3.40			$3.31			$3.16			$3.35			$3.15
Net investment income		0.14			0.14			0.13			0.13			0.14
Net realized and unrealized gains (losses) on investments		(0.12	)		0.10			0.15			(0.19	)		0.20
Total from investment operations		0.02			0.24			0.28			(0.06	)		0.34
Distributions to shareholders from
Net investment income		(0.13	)		(0.15	)		(0.13	)		(0.13	)		(0.14	)
Tax basis return of capital		(0.01	)		(0.00	)1		0.00			0.00			0.00
Total distributions to shareholders		(0.14	)		(0.15	)		(0.13	)		(0.13	)		(0.14	)
Net asset value, end of period		$3.28			$3.40			$3.31			$3.16			$3.35
Total return2		0.68	%		7.28	%		9.25	%		(1.79	)%		11.02	%
Ratios to average net assets (annualized)
Gross expenses		1.02	%		1.01	%		1.04	%		1.04	%		1.03	%
Net expenses		0.93	%		0.93	%		1.01	%		1.03	%		1.03	%
Net investment income		4.26	%		4.39	%		4.24	%		4.04	%		4.35	%
Supplemental data
Portfolio turnover rate		18	%		20	%		75	%		55	%		40	%
Net assets, end of period (000s omitted)		$272,170			$314,156			$370,560			$179,357			$210,005

¹  Amount is less than $0.005.

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 High Yield Bond Fund 23

(For a share outstanding throughout each period)

	Year ended August 31
CLASS C	2018			2017			2016			2015			2014
Net asset value, beginning of period		$3.40			$3.31			$3.16			$3.35			$3.15
Net investment income		0.12			0.12			0.11			0.11			0.12
Net realized and unrealized gains (losses) on investments		(0.12	)		0.09			0.15			(0.19	)		0.20
Total from investment operations		0.00			0.21			0.26			(0.08	)		0.32
Distributions to shareholders from
Net investment income		(0.11	)		(0.12	)		(0.11	)		(0.11	)		(0.12	)
Tax basis return of capital		(0.01	)		(0.00	)1		0.00			0.00			0.00
Total distributions to shareholders		(0.12	)		(0.12	)		(0.11	)		(0.11	)		(0.12	)
Net asset value, end of period		$3.28			$3.40			$3.31			$3.16			$3.35
Total return2		(0.07	)%		6.49	%		8.44	%		(2.52	)%		10.20	%
Ratios to average net assets (annualized)
Gross expenses		1.77	%		1.76	%		1.80	%		1.79	%		1.78	%
Net expenses		1.68	%		1.68	%		1.77	%		1.78	%		1.78	%
Net investment income		3.51	%		3.65	%		3.48	%		3.29	%		3.60	%
Supplemental data
Portfolio turnover rate		18	%		20	%		75	%		55	%		40	%
Net assets, end of period (000s omitted)		$47,811			$61,734			$72,908			$60,753			$72,728

¹  Amount is less than $0.005.

²  Total return calculations do not include any sales charges.

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

24 Wells Fargo High Yield Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended August 31
ADMINISTRATOR CLASS	2018			2017			2016			2015			2014
Net asset value, beginning of period		$3.41			$3.31			$3.16			$3.36			$3.15
Net investment income		0.15			0.15			0.14	1		0.14			0.15
Net realized and unrealized gains (losses) on investments		(0.12	)		0.10			0.15			(0.20	)		0.21
Total from investment operations		0.03			0.25			0.29			(0.06	)		0.36
Distributions to shareholders from
Net investment income		(0.14	)		(0.15	)		(0.14	)		(0.14	)		(0.15	)
Tax basis return of capital		(0.01	)		(0.00	)2		0.00			0.00			0.00
Total distributions to shareholders		(0.15	)		(0.15	)		(0.14	)		(0.14	)		(0.15	)
Net asset value, end of period		$3.29			$3.41			$3.31			$3.16			$3.36
Total return		0.82	%		7.74	%		9.48	%		(1.86	)%		11.61	%
Ratios to average net assets (annualized)
Gross expenses		0.96	%		0.95	%		0.98	%		0.98	%		0.96	%
Net expenses		0.80	%		0.80	%		0.80	%		0.80	%		0.80	%
Net investment income		4.39	%		4.55	%		4.43	%		4.27	%		4.57	%
Supplemental data
Portfolio turnover rate		18	%		20	%		75	%		55	%		40	%
Net assets, end of period (000s omitted)		$23,940			$31,592			$76,688			$13,129			$20,177

¹  Calculated based upon average shares outstanding

²  Amount is less than $0.005.

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

Financial highlights Wells Fargo High Yield Bond Fund 25

(For a share outstanding throughout each period)

	Year ended August 31
INSTITUTIONAL CLASS	2018			2017			2016			20151
Net asset value, beginning of period		$3.41			$3.31			$3.17			$3.33
Net investment income		0.16			0.16			0.14			0.12
Net realized and unrealized gains (losses) on investments		(0.13	)		0.10			0.14			(0.16	)
Total from investment operations		0.03			0.26			0.28			(0.04	)
Distributions to shareholders from
Net investment income		(0.15	)		(0.16	)		(0.14	)		(0.12	)
Tax basis return of capital		(0.01	)		(0.00	)2		0.00			0.00
Total distributions to shareholders		(0.16	)		(0.16	)		(0.14	)		(0.12	)
Net asset value, end of period		$3.28			$3.41			$3.31			$3.17
Total return3		0.79	%		8.03	%		9.27	%		(1.31	)%
Ratios to average net assets (annualized)
Gross expenses		0.69	%		0.68	%		0.70	%		0.71	%
Net expenses		0.53	%		0.53	%		0.61	%		0.70	%
Net investment income		4.67	%		4.79	%		4.65	%		4.33	%
Supplemental data
Portfolio turnover rate		18	%		20	%		75	%		55	%
Net assets, end of period (000s omitted)		$134,770			$125,991			$100,023			$4,847

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

²  Amount is less than $0.005.

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

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

26 Wells Fargo High Yield Bond Fund Notes to financial statements

1. ORGANIZATION

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

Effective at the close of business on May 5, 2017, Class B shares were converted to Class A shares and are no longer offered by the Fund. Information for Class B shares reflected in the financial statements represents activity through May 5, 2017.

2. SIGNIFICANT ACCOUNTING POLICIES

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

Securities valuation

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

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

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

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

Investments which are not valued using any of the methods discussed above are valued at their fair value, as determined in good faith by the Board of Trustees. 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

Notes to financial statements Wells Fargo High Yield Bond Fund 27

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.

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.

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 are declared daily and paid monthly. Distributions from net realized gains, if any, 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 August 31, 2018, the aggregate cost of all investments for federal income tax purposes was $512,966,942 and the unrealized gains (losses) consisted of:

Gross unrealized gains	$	9,802,483
Gross unrealized losses		(14,553,380	)
Net unrealized losses	$	(4,750,897	)

28 Wells Fargo High Yield Bond Fund Notes to financial statements

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The primary permanent difference causing such reclassifications is due to recognition of partnership income. At August 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	Overdistributed net investment income	Accumulated net realized losses on investments
$(2,452)	$(646,194)	$648,646

As of August 31, 2018, the Fund had capital loss carryforwards which consist of $17,191,434 in short-term capital losses and $24,466,317 in long-term capital losses.

Class allocations

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

3. FAIR VALUATION MEASUREMENTS

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

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

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

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

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

Notes to financial statements Wells Fargo High Yield Bond Fund 29

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

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer staples	$	1,014,000	$	0	$	0	$	1,014,000
Energy		14,243,400		0		0		14,243,400
Financials		717,700		0		0		717,700
Health care		4,310,490		0		0		4,310,490
Industrials		6,189,970		0		0		6,189,970
Information technology		10,819,700		0		0		10,819,700
Materials		5,649,130		0		0		5,649,130
Real estate		900,000		0		0		900,000
Utilities		2,100,750		0		0		2,100,750
Corporate bonds and notes		0		359,616,599		0		359,616,599
Yankee corporate bonds and notes		0		65,369,470		0		65,369,470
Short-term investments
Investment companies		3,114,436		0		0		3,114,436
Investments measured at net asset value*								34,170,400
Total assets	$	49,059,576	$	424,986,069	$	0	$	508,216,045

* 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 $34,170,400 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

Additional sector, industry or geographic detail is included in the Portfolio of Investments.

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At August 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 and providing fund-level administrative services in connection with the Fund’s operations. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.55% and declining to 0.43% as the average daily net assets of the Fund increase. For the year ended August 31, 2018, the management fee was equivalent to an annual rate of 0.55% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. WellsCap is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.35% and declining to 0.20% as the average daily net assets of the Fund increase.

Administration fees

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

30 Wells Fargo High Yield Bond Fund Notes to financial statements

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

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

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. When each class of the Fund has exceeded its expense cap, Funds Management has waived fees and/or reimbursed expenses from fund level expenses on a proportionate basis and then from class specific expenses; otherwise, waivers and/or reimbursements are applied against class specific expenses before fund level expenses. Funds Management has committed through December 31, 2018 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.93% for Class A shares, 1.68% for Class C shares, 0.80% for Administrator Class shares, and 0.53% for Institutional Class shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. 

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 August 31, 2018, Funds Distributor received $4,016 from the sale of Class A shares and $14 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 August 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 August 31, 2018 were $91,837,383 and $117,817,886, respectively.

6. BANK BORROWINGS

The Trust (excluding the money market funds), Wells Fargo Master Trust 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.

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

Notes to financial statements Wells Fargo High Yield Bond Fund 31

7. DISTRIBUTIONS TO SHAREHOLDERS

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

	Year ended August 31
	2018		2017
Ordinary income	$	21,068,429	$	24,095,317
Tax basis return of capital		816,192		695,415

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

Unrealized losses	Capital loss carryforward
$(4,750,897)	$(41,657,751)

8. INDEMNIFICATION

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

9. NEW ACCOUNTING PRONOUNCEMENTS AND REGULATORY CHANGES

On August 17, 2018, the Securities and Exchange Commission (“SEC”) adopted Disclosure Update and Simplification, which amends certain disclosure requirements. The amendments are effective for filings subsequent to November 5, 2018. Management expects these amendments will impact the classification of disclosures in the financial statements.

In August 2018, FASB issued Accounting Standards Update (“ASU”) No. 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 updates the disclosure requirements for fair value measurements by modifying or removing certain disclosures and adding certain new disclosures. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. Management is currently evaluating the potential impact of this new guidance to the financial statements.

In March 2017, FASB issued ASU No. 2017-08, Premium Amortization on Purchased Callable Debt Securities. ASU 2017-08 shortens the amortization period for certain callable debt securities held at a premium. The amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 is effective for fiscal years beginning after December 15, 2018 and for interim periods within those fiscal years. Management is currently evaluating the potential impact of this new guidance to the financial statements.

32 Wells Fargo High Yield Bond 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 Wells Fargo High Yield Bond Fund (the “Fund”), including the portfolio of investments, as of August 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 August 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 August 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

October 26, 2018

Other information (unaudited) Wells Fargo High Yield Bond Fund 33

TAX INFORMATION

For corporate shareholders, pursuant to Section 854 of the Internal Revenue Code, 2.53% of ordinary income dividends qualify for the corporate dividends-received deduction for the fiscal year ended August 31, 2018

For the fiscal year ended August 31, 2018, $17,566,720 has been designated as interest-related dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.

Pursuant to Section 854 of the Internal Revenue Code, $754,253 of income dividends paid during the fiscal year ended August 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.

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

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 154 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 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.	N/A
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 The Ruth Bancroft Garden (non-profit organization). She is also an inactive Chartered Financial Analyst.	N/A
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 (private school). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	CIGNA Corporation
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, since 2009	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.	N/A
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.	N/A

Other information (unaudited) Wells Fargo High Yield Bond 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.	N/A
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.	N/A
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.	N/A
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.	N/A
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, on the Board of Directors, Governance Committee and Finance Committee for the Minnesota Philanthropy Partners (Saint Paul Foundation) from 2012 to 2018, 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 the Board Chair of the Minnesota Wild Foundation since 2010.	N/A

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

36 Wells Fargo High Yield Bond 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 Kymn3 (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.
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 77 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.

³  Alexander Kymn became the Secretary and Chief Legal Officer effective April 17, 2018.

Other information (unaudited) Wells Fargo High Yield Bond Fund 37

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Wells Fargo High Yield Bond Fund

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at an in-person meeting held on May 22-23, 2018 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for Wells Fargo High Yield Bond Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Wells Capital Management Incorporated (the “Sub-Adviser”), an affiliate of Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”

At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at an in-person meeting in April 2018, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing investment performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.

In providing information to the Board, Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2018. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and investment performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.

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

Nature, extent and quality of services

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

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

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

Fund investment performance and expenses

The Board considered the investment performance results for the Fund over various time periods ended December 31, 2017. The Board considered these results in comparison to the investment performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the investment performance of the Fund (Administrator Class) was higher than the average investment performance of the Universe for all periods under review. The Board also noted that the investment performance of the Fund was in range of its benchmark index, the ICE BofAML U.S. High Yield Constrained Index, for the one-year period under review, but lower than its benchmark index for the three-, five-, and ten-year periods under review.

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

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

Investment management and sub-advisory fee rates

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

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

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

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

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

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of both WFAM and Wells Fargo & Co. (“Wells Fargo”) as a whole, from providing services to the Fund and the fund family as a whole. The Board noted that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the WFAM and Wells Fargo profitability analysis.

Other information (unaudited) Wells Fargo High Yield Bond Fund 39

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

Economies of scale

The Board considered the extent to which Funds Management may experience economies of scale in the provision of management services, and the extent to which scale benefits, if any, would be shared with shareholders. In particular, the Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size. It considered that, for a small fund or a fund that shrinks in size, breakpoints conversely can result in higher fee levels. The Board also considered that in addition to management fee breakpoints, competitive management fee rates set at the outset without regard to breakpoints and fee waiver and expense reimbursement arrangements, as well as investments in the business intended to enhance services available to Fund shareholders, are means of sharing potential economies of scale with shareholders of the Fund.

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

Other benefits to Funds Management and the Sub-Adviser

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

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

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

Conclusion

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

40 Wells Fargo High Yield Bond Fund Appendix A (unaudited)

SALES CHARGE REDUCTIONS AND WAIVERS FOR CERTAIN INTERMEDIARIES

Ameriprise

Effective June 1, 2018, shareholders purchasing Fund shares through an Ameriprise Financial platform or account will be eligible only for the following Class A load waivers (front-end sales charge waivers), which may differ from those disclosed elsewhere in the Fund’s prospectus or Statement of Additional Information.

Front-end Sales Load Waivers on Class A Shares Available at Ameriprise Financial

• Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs or SAR-SEPs.

• Shares purchased through an Ameriprise Financial investment advisory program (if an Advisory or similar share class for such investment advisory program is not available)

• Shares purchased by third party investment advisors on behalf of their advisory clients through Ameriprise Financial’s platform (if an Advisory or similar share class for such investment advisory program is not available)

• Shares purchased through reinvestment of distributions and dividend reinvestment when purchasing shares of the same Fund (but not any other fund within the same fund family)

• Shares exchanged from Class C shares of the same fund in the month of or following the 10-year anniversary of the purchase date. To the extent that the Fund’s prospectus elsewhere provides for a waiver with respect to such shares following a shorter holding period, that waiver will apply to exchanges following such shorter period. To the extent that the Fund’s prospectus elsewhere provides for a waiver with respect to exchanges of Class C shares for load-waived shares, that waiver will also apply to such exchanges.

• Employees and registered representatives of Ameriprise Financial or its affiliates and their immediate family members

• Shares purchased by or through qualified accounts (including IRAs, Coverdell Education Savings Accounts, 401(k)s, 403(b) TSCAs subject to ERISA and defined benefit plans) that are held by a covered family member, defined as an Ameriprise financial advisor and/or the advisor’s spouse, advisor’s lineal ascendant (mother, father, grandmother, grandfather, great grandmother, great grandfather), advisor’s lineal descendant (son, step-son, daughter, step-daughter, grandson, granddaughter, great grandson, great granddaughter) or any spouse of a covered family member who is a lineal descendant

• Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (i.e. Rights of Reinstatement). Subject to the Fund’s policy regarding frequent purchases and redemptions of Fund shares, you may not be able to repurchase shares for the first 30 days after your redemption.

Automatic Exchange of Class C Shares Available at Ameriprise Financial

• Class C shares will automatically exchange to Class A shares in the month of the 10-year anniversary of the purchase date.

Merrill Lynch

Effective April 10, 2017, shareholders purchasing Fund shares through a Merrill Lynch platform or account will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ from those disclosed elsewhere in the Fund’s prospectus or Statement of Additional Information.

Front-end Sales Load Waivers on Class A Shares available at Merrill Lynch

• Employer-sponsored retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan

• Shares purchased by or through a 529 Plan

• Shares purchased through a Merrill Lynch affiliated investment advisory program

Appendix A (unaudited) Wells Fargo High Yield Bond Fund 41

• Shares purchased by third party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform

• Shares of funds purchased through the Merrill Edge Self-Directed platform (if applicable)

• Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the fund family)

• Shares exchanged from Class C (i.e. level-load) shares of the same fund in the month of or following the 10-year anniversary of the purchase date

• Employees and registered representatives of Merrill Lynch or its affiliates and their family members, as defined by Merrill Lynch, which may differ from the definition of family member in the Fund’s prospectus.

• Directors or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in the Fund’s prospectus

• Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (known as Rights of Reinstatement). Subject to the Fund’s policy regarding frequent purchases and redemptions of Fund shares, you may not be able to repurchase shares for the first 30 days after your redemption.

CDSC Waivers on A, B and C Shares available at Merrill Lynch

• Death or disability of the shareholder

• Shares sold as part of a systematic withdrawal plan as described in the Fund’s prospectus

• Return of excess contributions from an IRA Account

• Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 70½

• Shares sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch

• Shares acquired through a right of reinstatement

• Shares held in retirement brokerage accounts, that are exchanged for a lower cost share class due to transfer to certain fee based accounts or platforms (applicable to A and C shares only)

Front-end load Discounts Available at Merrill Lynch: Breakpoints, Rights of Accumulation & Letters of Intent

• Breakpoints as described in the Fund’s prospectus

• Rights of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.

• Letters of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over a 13-month period of time (if applicable)

Morgan Stanley

Effective on or about July 1, 2018, shareholders purchasing Fund shares through a Morgan Stanley Wealth Management transactional brokerage account will be eligible only for the following Class A load waivers (front-end sales charge waivers), which may differ from and be more limited than those disclosed in the Fund’s prospectus or Statement of Additional Information.

Front-end Sales Load Waivers on Class A Shares Available at Morgan Stanley

• Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans.

• Morgan Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules

• Shares purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund

• Shares purchased through a Morgan Stanley self-directed brokerage account

42 Wells Fargo High Yield Bond Fund Appendix A (unaudited)

• Class C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are exchanged to Class A shares of the same fund pursuant to Morgan Stanley Wealth Management’s share class exchange program.

• Shares purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred sales charge. This waiver is subject to the Fund’s policy regarding frequent purchases and redemption of Fund shares, as discussed under “Account Information—Frequent Purchases and Redemptions of Fund Shares” in the Fund’s prospectus.

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For more information

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

Wells Fargo Funds

P.O. Box 219967

Kansas City, MO 64121-9967

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 the trade name for certain investment advisory/management firms owned by Wells Fargo & Company. These firms include but are not limited to Wells Capital Management Incorporated and Wells Fargo Funds Management, LLC. Certain products managed by WFAM entities are distributed by Wells Fargo Funds Distributor, LLC (a broker/dealer and Member FINRA).

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.

315406 10-18 A218/AR218 08-18

Annual Report

August 31, 2018

Wells Fargo Core Plus Bond Fund

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	6
Fund expenses	10
Portfolio of investments	11
Financial statements
Statement of assets and liabilities	26
Statement of operations	27
Statement of changes in net assets	28
Financial highlights	29
Notes to financial statements	34
Report of independent registered public accounting firm	45
Other information	46
Appendix A	53

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

Andrew Owen

President

Wells Fargo Funds

After advancing during 2017, economic growth and stock markets globally diverged during the first eight months of 2018.

Dear Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Core Plus Bond Fund for the 12-month period that ended August 31, 2018. After advancing during 2017, economic growth and stock markets globally diverged during the first eight months of 2018. For fixed-income investors, taxable bond returns suffered and high-yield and municipal bond returns were positive.

For the period, U.S. stocks, as measured by the S&P 500 Index,¹ gained 19.66%, and international stocks, as measured by the MSCI ACWI ex USA Index (Net),² added 3.18%. Based on the MSCI EM Index (Net),³ emerging market stocks lost 0.68%. For bond investors, the Bloomberg Barclays U.S. Aggregate Bond Index⁴ declined 1.05% while the Bloomberg Barclays Global Aggregate ex-USD Index⁵ fell 1.64%. The Bloomberg Barclays Municipal Bond Index⁶ added 0.49%, and the ICE BofAML U.S. High Yield Index⁷ was up 3.26%.

Continued optimism in the U.S. characterized the fourth quarter of 2017.

Some observers described economic conditions in late 2017 as a Goldilocks scenario: synchronized global growth, low inflation, healthy corporate earnings, and a weaker U.S. dollar that supported international growth. During the quarter, the U.S. Bureau of Economic Analysis reported that annualized U.S. gross domestic product (GDP) growth for the third quarter of 2017 was 2.8% and inflation remained below U.S. Federal Reserve (Fed) targets. U.S. corporate earnings and consumer confidence improved.

Economic momentum increased in Europe. The Bank of England (BOE) raised interest rates in November 2017 to 0.50%, the first increase in more than 10 years, indicating confidence in the economy’s growth potential. Meanwhile, the European Central Bank and the Bank of Japan kept interest rates low to spur business activities and bought bonds in an effort to encourage equity investments. The People’s Bank of China’s (PBOC’s) policies sought to stimulate business. Many emerging market economies benefited from stronger currencies versus the U.S. dollar, while commodity price increases benefited countries that rely on natural resources for exports.

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 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.

⁶  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.

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 Core Plus Bond Fund 3

Volatility reemerged during the first quarter of 2018 as global tensions and inflation fears increased.

Stock market gains in January 2018 followed the passage of lower U.S. tax rates. Some investors then grew concerned about trade, particularly between the U.S. and China, and the specter of inflation. The Fed followed its 25-basis-point (bp; 100 bps equal 1.00%) federal funds rate increase in December 2017 with a further 25-bp increase in March 2018. The inflation rate in March reached the Fed’s 2% target for the first time in a year.

The S&P 500 Index closed the first quarter with a negative return, the first negative quarterly return for the index since 2014. Overseas investment markets reversed strong returns in 2017, hurt by a stronger U.S. dollar and mounting trade and diplomatic tensions. After gaining 27.19% for the 12-month period that ended December 31, 2017, the MSCI ACWI ex USA Index (Net) declined 1.81% for the quarter that ended March 31, 2018.

Global trade tensions escalated during the second quarter.

Global trade tensions escalated throughout the second quarter of 2018. The U.S. government imposed tariffs, and foreign governments in North America, Europe, and Asia retaliated. The escalating tensions chilled investment activity as observers awaited signals of next steps.

Meanwhile, inflation continued an upward trend. The CPI-U⁸ added 0.1% in June after increases of 0.2% in both April and May. On a year-over-year basis, the all-items index rose 2.9% for the 12 months that ended June 30, 2018. The index for all items less food and energy rose 2.3% for the same 12-month period.

U.S. stocks gained while international stocks and bonds declined during the summer of 2018.

The U.S. economy strengthened during the summer months. Revised second-quarter GDP data released in August showed the U.S. economy growing at a 4.2% rate. After ticking up slightly in June, the unemployment rate in the U.S. was 3.9% in July and August, according to the U.S. Department of Labor. Wages showed more consistent growth than they had in recent quarters, and consumer confidence remained strong.

Several U.S. equity market indices reached records during August, with the S&P 500 Index gaining 7.76% for the three-month period that ended August 31, 2018. International stock values continued to suffer under the effects of a strong U.S. dollar and continuing trade tensions. The MSCI ACWI ex USA Index (Net) and the MSCI EM Index (Net) were down 4.70% and 1.64%, respectively, during the same three-month period.

The Fed increased the federal funds rate in June, and expectations grew that two more rate increases were in the offing in 2018. Long-term interest rates in the U.S. remained at higher levels relative to the prior 10 years. Rates on 10-year and 30-year Treasury bonds—2.46% and 2.81%, respectively, on January 1, 2018—were 2.86% and 3.02%, respectively, on August 31, off their peak levels on May 17, 2018, of 3.11% and 3.25%, respectively. Some investors became more aware of and concerned about the potential for an inverted yield curve—sometimes a recession signal—as short-term rates increased more quickly than long-term rates. The Fed decided to forgo an interest rate increase at its August meeting.

The S&P 500 Index closed the first quarter with a negative return, the first negative quarterly return for the index since 2014.

⁸  The Consumer Price Index for All Urban Consumers (CPI-U) measures the changes in the price of a basket of goods and services purchased by urban consumers. The urban consumer population is deemed by many as a better representative measure of the general public because close to 90% of the country’s population lives in highly populated areas. You cannot invest directly in an index.

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

Internationally, members of Prime Minister Theresa May’s U.K./Brexit negotiating team resigned amid unproductive negotiations. In early August, the BOE’s Monetary Policy Committee increased its key interest rate to 0.75%. Central banks in Europe and Japan maintained low interest rates and accommodative monetary policies. Amid rising trade uncertainty, the PBOC cut reserve requirement ratios and accelerated infrastructure spending and tax cuts for business enterprises and individuals. Nevertheless, a strengthening U.S. dollar and the trade tensions remained headwinds for investors overseas.

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

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

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

Sincerely,

Andrew Owen

President

Wells Fargo Funds

Notice to shareholders

At a meeting held on August 14-15, 2018, the Board of Trustees of the Fund approved the following policy which will be effective on or about February 5, 2019:

Class C shares will convert automatically into Class A shares ten years after the initial date of purchase or, if you acquired your Class C shares through an exchange or conversion from another share class, ten years after the date you acquired your Class C shares. When Class C shares that you acquired through a purchase or exchange convert, any other Class C shares that you purchased with reinvested dividends and distributions also will convert into Class A shares on a pro rata basis. A shorter holding period may also apply depending on your intermediary. Please see “Appendix A—Sales Charge Reductions and Waivers for Certain Intermediaries” in the Fund’s prospectus or at the end of this report.

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 Core Plus Bond Fund Performance highlights (unaudited)

Investment objective

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

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Christopher Y. Kauffman, CFA^®

Jay N. Mueller, CFA^®‡

Thomas M. Price, CFA^®

Janet S. Rilling, CFA^®, CPA

Michael J. Schueller, CFA^®

Noah M. Wise, CFA^®

Average annual total returns (%) as of August 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 (STYAX)	7-13-1998		(5.31	)		2.58		4.37		(0.84	)		3.53		4.85		0.94		0.74
Class C (WFIPX)	7-13-1998		(2.50	)		2.77		4.08		(1.50	)*		2.77		4.08		1.69		1.49
Class R6 (STYJX)	10-31-2016		–			–		–		(0.46	)*		3.85		5.19		0.56		0.36
Administrator Class (WIPDX)	7-30-2010		–			–		–		(0.74	)		3.65		4.99		0.88		0.63
Institutional Class (WIPIX)	7-18-2008		–			–		–		(0.52	)		3.82		5.17		0.61		0.41
Bloomberg Barclays U.S. Aggregate Bond Index4	–		–			–		–		(1.05	)		2.49		3.70		–		–

* 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 4.50%. For Class C shares, the maximum contingent deferred sales charge is 1.00%. Performance including a contingent deferred sales charge assumes the sales charge for the corresponding time period. Class R6, Administrator Class, and Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.

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

Please see footnotes on page 7.

Performance highlights (unaudited) Wells Fargo Core Plus Bond Fund 7

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

^‡  Mr. Mueller became a portfolio manager of the Fund on January 1, 2018.

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

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

³  The manager has contractually committed through December 31, 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 0.73% for Class A, 1.48% for Class C, 0.35% for Class R6, 0.62% for Administrator Class, and 0.40% for Institutional Class. 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 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 chart compares the performance of Class A shares for the most recent ten years with the performance of the Bloomberg Barclays U.S. Aggregate Bond Index. The chart assumes a hypothetical investment of $10,000 in Class A shares and reflects all operating expenses and assumes the maximum initial sales charge of 4.50%.

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

⁷  The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. You cannot invest directly in an index.

⁸  Amounts are calculated based on the total long-term investments of the Fund. These amounts are subject to change and may have changed since the date specified.

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

MANAGER’S DISCUSSION

Fund highlights

∎ The Fund (Class A shares, excluding sales charges) outperformed its benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index, for the 12-month period that ended August 31, 2018.

∎ The Fund’s shorter duration relative to the index and exposure to a flatter U.S. Treasury yield curve contributed to performance, as did overweight allocations to U.S. high-yield and BBB-rated corporate bonds.

∎ The Fund’s allocations to emerging market bonds and foreign currencies detracted from performance.

Ten largest holdings (%) as of August 31, 20186
U.S. Treasury Note, 2.25%, 11-15-2027	3.45
FNMA , 3.50%, 3-1-2048	2.37
iShares iBoxx $ Investment Grade Corporate Bond ETF	2.04
FNMA, 4.50%, 9-13-2048	1.44
FNMA, 3.00%, 11-1-2047	1.43
U.S. Treasury Note, 2.00%, 10-31-2022	1.35
GNMA, 3.50%, 12-20-2047	1.32
FNMA, 3.50%, 8-1-2045	1.09
FNMA, 3.00%, 4-1-2048	0.98
U.S. Treasury Bond, 3.00%, 8-15-2048	0.95

Economic growth accelerated and policy normalization continued.

Over the past four quarters, U.S. gross domestic product (GDP) grew by 2.9% in real terms, which was above the post-financial-crisis average. Business investment was a significant source of strength, rising 4.8% for the 12 months that ended June 30, 2018. Consumer spending was a net contributor to growth, although it failed to keep pace with the business sector. Inventories were a net detractor from GDP growth, while trade and government spending were modestly positive factors.

The labor market generally was healthy over the past 12 months. Nonfarm payrolls expanded by an average of 194,000 jobs per month over the period, while the

unemployment rate declined to 3.9% at the end of August 2018 from 4.4% a year earlier. Also encouraging was a 0.2% rise in the employment/population ratio since August 2017, reflecting both the fall in unemployment and a modest increase in the labor force participation rate. Wage gains of about 2.9% over the past 12 months were sufficient to support consumption growth without sparking fears of rising inflation. The CPI⁷ also rose 2.9% over the past year, which accelerated due in part to higher energy prices.

The U.S. Federal Reserve’s (Fed’s) rate-setting committee, the Federal Open Market Committee (FOMC), raised the federal funds rate three times over the past 12 months by a total of 0.75%. The FOMC’s gradual approach to hiking rates is supported by Fed Chairman Jerome Powell’s stated view that there is no sense that inflation will take off or move unexpectedly quickly.

In line with the FOMC’s policy moves, interest rates had an upward bias over the past 12 months, particularly in shorter-term maturity instruments. Yields on 2-year Treasuries rose by 130 basis points (bps; 100 bps equal 1.00%) during the period, while 10-year Treasuries were about 75 bps higher. Investment-grade credit spreads tightened rapidly into the start of 2018 after the corporate tax cut was enacted in the U.S. but ended the period slightly wider after trade tensions and heavy supply took their toll on bond prices.

Portfolio allocation as of August 31, 2018⁸

The Fund increased holdings in European high-yield bonds and decreased exposure to floating-rate loans.

During the period, the Fund increased holdings in European high-yield bonds and decreased the overweight to floating-rate loans. We added European high-yield bonds because our assessment of both their fundamentals and valuations was of improvement throughout the year. However, European high-yield bond returns lagged due to an increase in Italian political risk and market outflows. The Fund also maintained a short duration profile relative to the index because we believed a defensive position was prudent given the likelihood of the FOMC continuing to gradually reduce its accommodative monetary policy.

Please see footnotes on page 7.

Performance highlights (unaudited) Wells Fargo Core Plus Bond Fund 9

The Fund’s shorter duration position in an environment where interest rates rose faster than the market anticipated was a key driver of favorable relative performance during the reporting period. Tighter U.S. high-yield spreads and selection within U.S. investment-grade credit also benefited results. Positioning that detracted from performance included allocations to several Latin American emerging market countries and their currencies, which lagged in the face of stronger U.S. economic growth, higher interest rates, and a stronger U.S. dollar.

We expect modestly above-trend economic growth to continue.

We expect macroeconomic trends to remain relatively consistent in the coming quarters, aided by fiscal stimulus and looser regulations. Real GDP growth in the area of 3% is likely to persist for a period of time, barring some external shock. The biggest risks to the outlook include an escalation in trade tensions and a larger-than-expected slowdown in the Chinese economy.

Please see footnotes on page 7.

10 Wells Fargo Core Plus Bond Fund Fund expenses (unaudited)

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

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from March 1, 2018 to August 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 3-1-2018		Ending account value 8-31-2018		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,005.79	$	3.69		0.73	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.53	$	3.72		0.73	%
Class C
Actual	$	1,000.00	$	1,001.91	$	7.47		1.48	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.74	$	7.53		1.48	%
Class R6
Actual	$	1,000.00	$	1,007.75	$	1.77		0.35	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.44	$	1.79		0.35	%
Administrator Class
Actual	$	1,000.00	$	1,006.36	$	3.14		0.62	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.08	$	3.16		0.62	%
Institutional Class
Actual	$	1,000.00	$	1,006.68	$	2.02		0.40	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.19	$	2.04		0.40	%

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

Portfolio of investments—August 31, 2018 Wells Fargo Core Plus Bond Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities: 23.09%
FHLMC (12 Month LIBOR +1.33%) ±		3.09	%		1-1-2036	$	23,738	$	24,531
FHLMC		3.50			12-1-2045		3,660,267		3,648,068
FHLMC		3.50			12-1-2045		1,388,686		1,384,061
FHLMC		4.00			6-1-2044		2,737,469		2,794,930
FHLMC		5.00			6-1-2036		264,721		282,158
FHLMC		5.00			8-1-2040		251,814		268,956
FHLMC		5.50			8-1-2038		59,818		64,556
FHLMC		5.50			12-1-2038		537,279		581,065
FHLMC		5.50			6-1-2040		852,450		919,943
FHLMC		8.00			2-1-2030		230		261
FHLMC Series 2015-SC01 Class 1A		3.50			5-25-2045		938,717		927,277
FHLMC Series 3774 Class AB		3.50			12-15-2020		90,695		91,427
FHLMC Series K020 Class X1 ±±(c)		1.55			5-25-2022		13,379,594		571,646
FHLMC Series T-42 Class A5		7.50			2-25-2042		1,525,235		1,740,682
FHLMC Series T-57 Class 2A1 ±±		3.92			7-25-2043		47,191		49,559
FHLMC Series T-59 Class 2A1 ±±		3.75			10-25-2043		237,443		230,163
FNMA		3.50			3-1-2048		14,125,955		14,045,391
FNMA ¤		0.00			10-9-2019		5,000,000		4,858,580
FNMA		2.27			3-1-2019		2,428,321		2,419,488
FNMA %%		2.50			9-18-2033		1,645,000		1,599,479
FNMA (12 Month LIBOR +1.61%) ±		2.51			3-1-2046		1,347,256		1,334,522
FNMA (12 Month LIBOR +1.61%) ±		2.51			5-1-2046		1,423,143		1,407,898
FNMA		3.00			11-1-2045		2,143,718		2,077,698
FNMA		3.00			12-1-2045		5,421,869		5,251,798
FNMA		3.00			12-1-2046		2,479,206		2,399,198
FNMA		3.00			11-1-2047		8,733,375		8,451,361
FNMA		3.00			4-1-2048		5,987,822		5,792,685
FNMA		3.02			2-1-2026		3,199,601		3,144,498
FNMA		3.27			7-1-2022		1,213,016		1,221,432
FNMA (12 Month LIBOR +1.73%) ±		3.49			9-1-2036		20,046		21,030
FNMA		3.50			10-1-2043		1,035,533		1,037,317
FNMA		3.50			4-1-2045		296,997		295,991
FNMA		3.50			8-1-2045		6,473,729		6,448,797
FNMA (1 Year Treasury Constant Maturity +2.27%) ±		3.66			1-1-2036		73,744		77,706
FNMA (1 Year Treasury Constant Maturity +2.26%) ±		3.86			8-1-2036		907,435		955,995
FNMA (12 Month LIBOR +1.80%) ±		3.92			8-1-2036		32,509		34,116
FNMA		3.95			9-1-2021		406,081		415,340
FNMA		4.00			9-1-2024		23,869		24,432
FNMA		4.00			2-1-2046		565,599		576,126
FNMA		4.00			4-1-2046		2,912,235		2,967,659
FNMA %%		4.00			9-13-2048		5,040,000		5,130,636
FNMA		4.26			4-1-2021		2,670,727		2,744,138
FNMA %%		4.50			9-13-2048		8,230,000		8,548,591
FNMA		5.00			1-1-2024		74,049		76,295
FNMA		5.00			2-1-2036		28,176		30,094
FNMA		5.00			6-1-2040		98,276		105,235
FNMA		5.00			8-1-2040		1,676,544		1,804,111
FNMA		5.50			11-1-2023		49,282		51,319
FNMA		5.50			8-1-2034		96,545		105,229
FNMA		5.50			2-1-2035		29,584		32,278

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

12 Wells Fargo Core Plus Bond Fund Portfolio of investments—August 31, 2018

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA		5.50	%		8-1-2038	$	105,821	$	113,488
FNMA		5.50			8-1-2038		408,138		439,891
FNMA		6.00			10-1-2037		477,615		526,440
FNMA		6.00			11-1-2037		36,857		40,750
FNMA		6.50			7-1-2036		24,053		26,872
FNMA		6.50			7-1-2036		11,001		12,174
FNMA		6.50			11-1-2036		4,759		5,215
FNMA		7.00			12-1-2022		141,102		145,292
FNMA		7.00			7-1-2036		10,863		11,468
FNMA		7.00			11-1-2037		7,978		8,650
FNMA		7.50			5-1-2038		1,944		1,959
FNMA Series 2002-T12 Class A3		7.50			5-25-2042		6,527		7,529
FNMA Series 2003-W08 Class 4A ±±		4.12			11-25-2042		151,183		154,967
FNMA Series 2003-W14 Class 2A ±±		3.75			6-25-2045		115,268		121,723
FNMA Series 2003-W14 Class 2A ±±		4.28			1-25-2043		274,344		288,240
FNMA Series 2004-W11 Class 1A3		7.00			5-25-2044		1,287,873		1,486,776
FNMA Series 2004-W15 Class 1A3		7.00			8-25-2044		629,025		708,968
GNMA		3.00			11-20-2045		4,613,695		4,525,461
GNMA		3.50			9-20-2047		3,713,817		3,728,303
GNMA		3.50			12-20-2047		7,811,013		7,841,481
GNMA		4.00			12-20-2047		4,818,502		4,937,265
GNMA		5.00			7-20-2040		666,907		717,577
GNMA		7.50			12-15-2029		675		735
GNMA Series 2008-22 Class XM ±±(c)		0.96			2-16-2050		1,197,111		29,860
STRIPS ¤		0.00			5-15-2036		4,945,000		2,896,829
STRIPS ¤		0.00			5-15-2044		9,125,000		4,197,771
TVA		5.88			4-1-2036		3,540,000		4,622,164
Total Agency Securities (Cost $137,633,702)									136,663,594
Asset-Backed Securities: 7.05%
Ally Auto Receivables Trust Series 2015-2 Class A3		1.49			11-15-2019		118,040		117,990
CarMax Auto Owner Trust Series 2015-3 Class A3		1.63			5-15-2020		530,345		529,232
CCG Receivables Trust Series 2016-1 Class A2 144A		1.69			9-14-2022		725,628		722,556
Citibank Credit Card Issuance Trust Series 2014-A6 Class A6		2.15			7-15-2021		2,650,000		2,637,764
Citibank Credit Card Issuance Trust Series 2016-A1 Class A1		1.75			11-19-2021		370,000		365,401
Dell Equipment Finance Trust Series 2017-2 Class A2B (1 Month LIBOR +0.30%) 144A±		2.37			2-24-2020		1,060,652		1,061,009
Discover Card Execution Note Trust Series 2014 Class A4		2.12			12-15-2021		1,015,000		1,010,997
Educational Services of America Series 2015-1 Class A (1 Month LIBOR +0.80%) 144A±		2.86			10-25-2056		1,212,475		1,215,647
Five Guys Funding LLC Series 17-1A Class A2 144A		4.60			7-25-2047		1,597,925		1,605,170
GMF Floorplan Owner Revolving Trust Series 2016-1 Class A2 (1 Month LIBOR +0.85%) 144A±		2.91			5-17-2021		2,105,000		2,114,392
Hertz Vehicle Financing LLC Series 2018-2A Class A 144A		3.65			6-27-2022		1,600,000		1,601,455
Hyundai Auto Receivables Trust Series 2015-A Class A4		1.37			7-15-2020		330,925		330,459
Hyundai Auto Receivables Trust Series 2016-A Class A4 144A		1.80			12-16-2019		1,629,176		1,628,489
Lendmark Funding Trust Series 2018-1A Class A 144A		3.81			12-21-2026		2,085,000		2,093,117
MMAF Equipment Finance LLC Series 2017-AA Class A4 144A		2.41			8-16-2024		1,975,000		1,932,846
Navient Student Loan Trust Series 2017-A Class A1 (1 Month LIBOR +0.40%) 144A±		2.46			12-16-2058		1,344,284		1,345,450
Nissan Auto Lease Trust Series 2017-B Class A3		2.05			9-15-2020		1,625,000		1,611,967
OCP Collateralized Loan Obligation Limited Trust Series 2012-2A Class A1R (3 Month LIBOR +1.40%) 144A±		3.71			11-22-2025		1,256,003		1,257,069

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

Portfolio of investments—August 31, 2018 Wells Fargo Core Plus Bond Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Asset-Backed Securities (continued)
Octagon Investment Partners Series 2015-1A Class A1R (3 Month LIBOR +0.90%) 144A±		3.21	%		5-21-2027	$	3,000,000	$	2,997,927
Octagon Investment Partners Series 2017-1A Class B1 (3 Month LIBOR +1.70%) 144A±		4.05			7-20-2030		1,000,000		1,000,501
SLM Student Loan Trust Series 2004-1 Class A4 (3 Month LIBOR +0.26%) ±		2.60			10-27-2025		1,753,000		1,753,389
South Carolina Student Loan Corporation Series 2014-1 Class A1 (1 Month LIBOR +0.75%) ±		2.83			5-1-2030		2,600,000		2,611,432
Student Loan Consolidation Center Series 2011-1 Class A (1 Month LIBOR +1.22%) 144A±		3.28			10-25-2027		2,151,132		2,174,131
Towd Point Asset Trust Series 2018-SL1 Class A (1 Month LIBOR +0.60%) 144A±		2.66			1-25-2046		3,738,807		3,719,471
Volvo Financial Equipment LLC Series 2018-AA (1 Month LIBOR +0.52%) 144A±		2.58			7-17-2023		2,590,000		2,597,284
Wheels SPV LLC Series 2018-1A Class A2 144A		3.06			4-20-2027		1,600,000		1,600,846
World Omni Auto Receivables Trust Series 2015-A Series A3		1.34			5-15-2020		73,738		73,703
Total Asset-Backed Securities (Cost $41,761,815)									41,709,694
Corporate Bonds and Notes: 17.07%
Consumer Discretionary: 1.66%
Internet & Direct Marketing Retail: 0.15%
Amazon.com Incorporated		4.95			12-5-2044		815,000		922,715
Media: 1.01%
CCO Holdings LLC 144A		5.13			5-1-2027		1,300,000		1,239,875
Charter Communications Operating LLC		4.20			3-15-2028		1,100,000		1,049,024
Charter Communications Operating LLC		6.48			10-23-2045		655,000		698,295
Discovery Communications LLC		3.95			3-20-2028		1,695,000		1,612,477
Discovery Communications LLC		6.35			6-1-2040		550,000		602,338
SES Global Americas Holding Company 144A		5.30			3-25-2044		880,000		768,461
									5,970,470
Multiline Retail: 0.16%
Macy’s Retail Holdings Incorporated		3.45			1-15-2021		940,000		934,652
Specialty Retail: 0.34%
Asbury Automotive Group Incorporated		6.00			12-15-2024		1,000,000		1,002,500
Group 1 Automotive Incorporated		5.00			6-1-2022		1,010,000		999,900
									2,002,400
Consumer Staples: 0.70%
Beverages: 0.30%
Anheuser-Busch InBev Worldwide Incorporated		4.60			4-15-2048		1,810,000		1,777,765
Tobacco: 0.40%
Philip Morris International Incorporated		1.38			2-25-2019		2,400,000		2,386,620
Energy: 0.56%
Energy Equipment & Services: 0.11%
Oceaneering International Incorporated		6.00			2-1-2028		680,000		674,772

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

14 Wells Fargo Core Plus Bond Fund Portfolio of investments—August 31, 2018

Security name	Interest rate			Maturity date		Principal		Value
Oil, Gas & Consumable Fuels: 0.45%
Energy Transfer Partners LP		6.13	%		12-15-2045	$	1,330,000	$	1,405,863
SemGroup Corporation		7.25			3-15-2026		875,000		870,625
Ultra Resources Incorporated 144A		6.88			4-15-2022		750,000		365,625
									2,642,113
Financials: 6.94%
Banks: 2.09%
Bank of America Corporation (3 Month LIBOR +0.94%) ±		3.86			7-23-2024		1,310,000		1,316,017
Bank of America Corporation		3.95			4-21-2025		1,170,000		1,151,132
Bank of America Corporation (3 Month LIBOR +3.90%) ±		6.10			12-29-2049		1,290,000		1,358,693
BBVA Bancomer SA of Texas 144A		7.25			4-22-2020		1,000,000		1,042,500
Huntington National Bank		2.20			11-6-2018		1,985,000		1,984,347
JPMorgan Chase & Company		2.97			1-15-2023		2,550,000		2,496,852
JPMorgan Chase & Company (3 Month LIBOR +3.25%) ±		5.15			12-29-2049		1,370,000		1,366,575
PNC Financial Services (3 Month LIBOR +3.30%) ±		5.00			12-29-2049		565,000		565,000
Santander Holdings USA Incorporated		3.70			3-28-2022		1,125,000		1,116,861	��
									12,397,977
Capital Markets: 1.57%
Blackstone Holdings Finance Company LLC 144A		5.00			6-15-2044		1,015,000		1,049,188
Goldman Sachs Group Incorporated (3 Month LIBOR +0.82%) ±		2.88			10-31-2022		1,910,000		1,867,793
Goldman Sachs Group Incorporated		5.15			5-22-2045		1,100,000		1,124,481
Goldman Sachs Group Incorporated (3 Month LIBOR +3.83%) ±		5.30			12-29-2049		1,100,000		1,100,550
Morgan Stanley (3 Month LIBOR +0.85%) ±		3.74			4-24-2024		4,155,000		4,138,698
									9,280,710
Consumer Finance: 1.20%
ERAC USA Finance LLC 144A		4.50			2-15-2045		1,695,000		1,623,610
PACCAR Financial Corporation		2.30			8-10-2022		3,000,000		2,899,542
Synchrony Financial		3.95			12-1-2027		2,800,000		2,551,240
									7,074,392
Diversified Financial Services: 0.99%
Brookfield Finance LLC		4.00			4-1-2024		2,005,000		1,998,541
Daimler Finance NA LLC 144A		1.75			10-30-2019		2,215,000		2,182,967
LPL Holdings Incorporated 144A		5.75			9-15-2025		600,000		586,500
Silversea Cruise Finance Limited 144A		7.25			2-1-2025		1,015,000		1,102,544
									5,870,552
Insurance: 1.09%
Brighthouse Financial Incorporated		4.70			6-22-2047		1,345,000		1,124,336
Guardian Life Insurance Company 144A		4.85			1-24-2077		1,045,000		1,040,482
National Life Insurance Company (3 Month LIBOR +3.31%) 144A±		5.25			7-19-2068		1,668,000		1,654,917
PartnerRe Finance II Incorporated (3 Month LIBOR +2.33%) ±		4.63			12-1-2066		1,345,000		1,129,800
Transatlantic Holdings Incorporated		8.00			11-30-2039		1,100,000		1,524,620
									6,474,155

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

Portfolio of investments—August 31, 2018 Wells Fargo Core Plus Bond Fund 15

Security name	Interest rate			Maturity date		Principal		Value
Health Care: 0.83%
Health Care Providers & Services: 0.83%
CHS Incorporated «		5.13	%		8-1-2021	$	1,000,000	$	965,000
CVS Health Corporation		4.78			3-25-2038		2,100,000		2,089,062
Highmark Incorporated 144A		6.13			5-15-2041		710,000		777,810
Tenet Healthcare Corporation		6.00			10-1-2020		1,010,000		1,049,138
									4,881,010
Industrials: 0.86%
Transportation Infrastructure: 0.86%
Toll Road Investors Partnership II LP 144A¤		0.00			2-15-2027		1,050,000		656,329
Toll Road Investors Partnership II LP 144A¤		0.00			2-15-2026		5,630,000		3,779,332
Toll Road Investors Partnership II LP 144A¤		0.00			2-15-2028		1,150,000		677,875
									5,113,536
Information Technology: 0.59%
Semiconductors & Semiconductor Equipment: 0.18%
Broadcom Corporation		2.65			1-15-2023		1,115,000		1,054,817
Software: 0.17%
Citrix Systems Incorporated		4.50			12-1-2027		1,045,000		1,015,735
Technology Hardware, Storage & Peripherals: 0.24%
Diamond 1 Finance Corporation 144A		8.35			7-15-2046		1,175,000		1,438,737
Materials: 0.76%
Chemicals: 0.40%
The Chemours Company		4.00			5-15-2026		2,000,000		2,338,679
Containers & Packaging: 0.36%
Silgan Holdings Incorporated		3.25			3-15-2025		1,800,000		2,145,136
Real Estate: 1.67%
Equity REITs: 1.29%
Federal Realty Investment Trust		3.63			8-1-2046		915,000		802,698
Iron Mountain Incorporated 144A		3.00			1-15-2025		2,000,000		2,292,829
Omega Healthcare Investors Incorporated		4.50			1-15-2025		2,130,000		2,108,493
Simon Property Group LP		2.20			2-1-2019		2,400,000		2,397,408
									7,601,428
Real Estate Management & Development: 0.38%
Washington Prime Group		3.85			4-1-2020		2,275,000		2,253,176
Telecommunication Services: 1.78%
Diversified Telecommunication Services: 0.89%
AT&T Incorporated		4.75			5-15-2046		1,075,000		969,702
AT&T Incorporated 144A		5.15			2-15-2050		610,000		568,298
AT&T Incorporated		5.25			3-1-2037		1,070,000		1,060,949

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

16 Wells Fargo Core Plus Bond Fund Portfolio of investments—August 31, 2018

Security name	Interest rate			Maturity date		Principal		Value
Diversified Telecommunication Services (continued)
AT&T Incorporated		5.65	%		2-15-2047	$	1,050,000	$	1,065,659
Verizon Communications Incorporated		5.01			4-15-2049		882,000		884,660
Verizon Communications Incorporated		5.50			3-16-2047		675,000		727,779
									5,277,047
Wireless Telecommunication Services: 0.89%
Crown Castle Towers LLC 144A		3.22			5-15-2042		2,600,000		2,570,100
SBA Tower Trust 144A		3.72			4-9-2048		1,968,000		1,950,664
Sprint Capital Corporation		6.88			11-15-2028		750,000		744,375
									5,265,139
Utilities: 0.72%
Electric Utilities: 0.53%
Basin Electric Power Cooperative 144A		4.75			4-26-2047		1,315,000		1,361,657
Southern California Edison Company		4.13			3-1-2048		1,835,000		1,775,364
									3,137,021
Independent Power & Renewable Electricity Producers: 0.19%
Harper Lake Solar Funding Corporation 144A		7.65			12-31-2018		310,724		313,831
Tri-State Generation and Transmission Association Incorporated		4.25			6-1-2046		850,000		776,341
									1,090,172
Total Corporate Bonds and Notes (Cost $101,696,042)									101,020,926
						Shares
Exchange-Traded Funds: 2.04%
iShares iBoxx $ Investment Grade Corporate Bond ETF							104,500		12,063,480
Total Exchange-Traded Funds (Cost $11,998,690)									12,063,480
						Principal
Foreign Corporate Bonds and Notes @: 3.95%
Consumer Discretionary: 2.00%
Auto Components: 0.24%
HP Pelzer Holding GmbH (EUR) 144A		4.13			4-1-2024		1,200,000		1,398,123
Automobiles: 0.84%
Peugeot SA Company (EUR)		2.00			3-20-2025		1,800,000		2,084,862
Volvo Car AB (EUR)		2.00			1-24-2025		2,500,000		2,872,531
									4,957,393
Hotels, Restaurants & Leisure: 0.24%
Snaitech SpA (EUR) 144A		6.38			11-7-2021		1,200,000		1,448,477
Internet & Direct Marketing Retail: 0.32%
Selecta Group BV (EUR) 144A		5.88			2-1-2024		1,650,000		1,908,055

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

Portfolio of investments—August 31, 2018 Wells Fargo Core Plus Bond Fund 17

Security name	Interest rate			Maturity date		Principal		Value
Media: 0.36%
Altice SA (EUR) 144A		7.25	%		5-15-2022		1,800,000	$	2,102,993
Energy: 0.91%
Oil, Gas & Consumable Fuels: 0.91%
Petroleos Mexicanos (EUR)		3.75			2-21-2024		1,000,000		1,190,278
Raffinerie Heide GmbH (EUR) 144A		6.38			12-1-2022		1,500,000		1,687,690
Total SA (5 Year EUR Swap +3.78%)(EUR) ±		3.88			12-29-2049		2,000,000		2,501,091
									5,379,059
Financials: 0.45%
Banks: 0.09%
ATF Netherlands BV (EUR)		1.50			7-15-2024		500,000		576,893
Diversified Financial Services: 0.36%
LKQ European Holdings BV Company (EUR) 144A		3.63			4-1-2026		1,800,000		2,120,690
Industrials: 0.59%
Commercial Services & Supplies: 0.24%
Paprec Holding SA (EUR) 144A		4.00			3-31-2025		1,200,000		1,406,506
Road & Rail: 0.35%
Europcar Groupe SA (EUR) 144A		4.13			11-15-2024		1,800,000		2,089,726
Total Foreign Corporate Bonds and Notes (Cost $23,962,526)									23,387,915
Foreign Government Bonds @: 1.51%
Brazil (BRL)		10.00			1-1-2025		8,600,000		1,942,808
Brazil (BRL)		10.00			1-1-2027		4,700,000		1,028,758
Indonesia (IDR)		7.88			4-15-2019		25,000,000,000		1,698,914
Italy (EUR) 144A		4.75			9-1-2028		2,500,000		3,250,082
Mexico (MXN)		6.50			6-9-2022		20,000,000		999,914
Total Foreign Government Bonds (Cost $10,567,585)									8,920,476
Loans: 2.88%
Consumer Discretionary: 0.11%
Media: 0.11%
CSC Holdings LLC (1 Month LIBOR +2.50%) ±		4.56			1-25-2026	$	626,430		626,587
Energy: 0.36%
Oil, Gas & Consumable Fuels: 0.36%
Lucid Energy Group II Borrower LLC (1 Month LIBOR +3.00%) ±		5.08			2-17-2025		1,246,875		1,226,613
Traverse Midstream Partners LLC (3 Month LIBOR +4.00%) ±		6.34			9-27-2024		935,000		938,506
									2,165,119
Financials: 0.15%
Insurance: 0.15%
Hub International Limited (2 Month LIBOR +3.00%) ±		5.33			4-25-2025		880,000		878,847

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

18 Wells Fargo Core Plus Bond Fund Portfolio of investments—August 31, 2018

Security name	Interest rate			Maturity date		Principal		Value
Health Care: 0.47%
Health Care Providers & Services: 0.21%
Surgery Center Holdings Incorporated (3 Month LIBOR +3.25%) ±		5.57	%		9-2-2024	$	1,240,625	$	1,238,553
Health Care Technology: 0.21%
Emerald Bidco Incorporated (1 Month LIBOR +2.75%) ±		4.83			10-23-2023		1,231,250		1,233,171
Pharmaceuticals: 0.05%
Valeant Pharmaceuticals International Incorporated (1 Month LIBOR +3.00%) ±		5.08			6-2-2025		306,125		307,092
Industrials: 0.73%
Aerospace & Defense: 0.21%
TransDigm Incorporated (1 Month LIBOR +2.50%) ±		4.58			5-30-2025		1,225,700		1,222,440
Commercial Services & Supplies: 0.31%
KAR Auction Services Incorporated (1 Month LIBOR +2.25%) ±		4.38			3-11-2021		1,231,710		1,233,767
Wrangler Buyer Corporation (1 Month LIBOR +2.75%) ±		4.83			9-27-2024		621,875		624,673
									1,858,440
Communications Equipment: 0.21%
Virgin Media Bristol LLC (1 Month LIBOR +2.50%) ±		4.56			1-15-2026		1,250,000		1,249,150
Information Technology: 0.53%
Internet Software & Services: 0.36%
Ancestry.com Incorporated (1 Month LIBOR +3.25%) ±		5.33			10-19-2023		1,221,875		1,222,180
Match Group Incorporated (1 Month LIBOR +2.50%) ±‡		4.58			11-16-2022		880,000		884,400
									2,106,580
IT Services: 0.17%
First Data Corporation (1 Month LIBOR +2.00%) ±		4.07			7-8-2022		1,026,388		1,025,690
Materials: 0.32%
Containers & Packaging: 0.32%
Berry Plastics Group Incorporated (2 Month LIBOR +1.75%) ±		3.94			2-8-2020		871,460		870,763
Consolidated Container Company LLC (1 Month LIBOR +2.75%) ±		4.83			5-22-2024		297,754		297,977
Flex Acquisition Company Incorporated (3 Month LIBOR +3.25%) ±		5.75			6-29-2025		750,000		749,063
									1,917,803
Telecommunication Services: 0.21%
Wireless Telecommunication Services: 0.21%
Sprint Communications Incorporated (1 Month LIBOR +2.50%) ±		4.63			2-2-2024		1,234,375		1,234,375
Total Loans (Cost $17,099,348)									17,063,847
Municipal Obligations: 4.42%
California: 0.58%
Airport Revenue: 0.36%
San Jose CA Series B (AGM Insured)		6.60			3-1-2041		2,000,000		2,148,640

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

Portfolio of investments—August 31, 2018 Wells Fargo Core Plus Bond Fund 19

Security name	Interest rate			Maturity date		Principal		Value
Transportation Revenue: 0.22%
Alameda CA Corridor Transportation Authority CAB Refunding Bond Subordinated Series B (Ambac Insured) ¤		0.00	%		10-1-2028	$	2,115,000	$	1,309,650
									3,458,290
Illinois: 1.49%
GO Revenue: 0.98%
Chicago IL		5.43			1-1-2042		1,000,000		922,990
Chicago IL Series B		7.38			1-1-2033		1,125,000		1,275,694
Cook County IL Series B (Build America Mutual Assurance Company Insured)		6.36			11-15-2033		1,745,000		2,164,673
Will County IL Community High School District (AGM Insured) ¤		0.00			1-1-2025		1,820,000		1,456,073
									5,819,430
Tax Revenue: 0.51%
Chicago IL Transit Authority Taxable Pension Funding Series A		6.90			12-1-2040		1,075,000		1,384,751
Metropolitan Pier & Exposition Authority Illinois CAB McCormick Place Expansion Project Series 2010-B1 (AGM Insured) ¤		0.00			6-15-2026		1,975,000		1,473,706
Metropolitan Pier & Exposition Authority Illinois CAB McCormick Place Expansion Project Series 2012-B ¤		0.00			12-15-2051		765,000		147,653
									3,006,110
									8,825,540
Maryland: 0.16%
Education Revenue: 0.16%
Maryland Health & HEFAR Green Street Academy Series B 144A		6.75			7-1-2023		975,000		957,704
Michigan: 0.35%
Miscellaneous Revenue: 0.35%
Michigan Finance Authority Local Government Loan Program Project Series E		7.19			11-1-2022		1,915,000		2,057,208
New Jersey: 0.88%
Miscellaneous Revenue: 0.88%
New Jersey EDA Series B (AGM Insured) ¤		0.00			2-15-2019		4,250,000		4,194,793
New Jersey EDA Series B		3.29			7-1-2019		1,000,000		1,000,450
									5,195,243
									5,195,243
New York: 0.18%
GO Revenue: 0.18%
Oyster Bay NY		3.55			2-1-2019		1,085,000		1,086,085
Pennsylvania: 0.49%
Health Revenue: 0.15%
Quakertown PA General Authority USDA Loan Anticipation Notes Series 2017-B		3.80			7-1-2021		900,000		888,849

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

20 Wells Fargo Core Plus Bond Fund Portfolio of investments—August 31, 2018

Security name	Interest rate			Maturity date		Principal		Value
Miscellaneous Revenue: 0.34%
Commonwealth of Pennsylvania Financing Authority Series A		4.14	%		6-1-2038	$	1,995,000	$	2,001,823
									2,890,672
Texas: 0.29%
Transportation Revenue: 0.29%
North Texas Tollway Authority Build America Bonds Subordinate Lien Series B-2		8.91			2-1-2030		1,595,000		1,719,171
Total Municipal Obligations (Cost $25,138,670)									26,189,913
Non-Agency Mortgage-Backed Securities: 8.65%
American Money Management Corporation Series 2015-16A Class AR (3 Month LIBOR +1.26%) 144A±		3.60			4-14-2029		3,000,000		3,002,361
Arbor Realty Collateralized Series 2016-FL Class A (1 Month LIBOR +1.70%) 144A±		3.76			9-15-2026		1,000,000		1,006,807
Banc of America Commercial Mortgage Securities Incorporated Series 2007-1 Class AMFX ±±		5.48			1-15-2049		778,703		781,843
Banc of America Funding Corporation Series 2016-R1 Class A1 144A±±		2.50			3-25-2040		897,621		871,941
BSPRT Commercial Mortgage Backed Series 2017-FL1 (1 Month LIBOR +1.35%) 144A±		3.41			6-15-2027		1,330,371		1,342,335
BX Trust 2017 Series A (1 Month LIBOR +1.05%) 144A±		3.11			10-15-2032		2,860,000		2,863,538
CD Commercial Mortgage Trust Series 2017-6 Class A5		3.46			11-13-2050		1,035,000		1,020,676
CIFC Funding Limited Series 2012-2RA Class A1 (3 Month LIBOR +0.80%) 144A±		3.15			1-20-2028		2,525,000		2,506,436
Commercial Mortgage Trust Series 2014-CR15 Class A2		2.93			2-10-2047		822,424		822,570
Credit Suisse First Boston Commercial Mortgage Trust Series 1998-C2 Class AX ±±(c)		0.23			11-15-2030		107,089		22
Crown Point Limited Series 2013-2A Class A1LR (3 Month LIBOR +0.59%) 144A±		2.93			12-31-2023		116,004		115,954
Crown Point Limited Series 2015-3A Class A1AR (3 Month LIBOR +0.91%) 144A±		3.25			12-31-2027		2,500,000		2,499,958
CSAIL Commercial Mortgage Trust Series 2015-C4 Class A1		2.01			11-15-2048		2,108,490		2,088,239
Financial Asset Securitization Incorporated Series 1997-NAM2 Class B2 ±±†		7.88			7-25-2027		23,442		16,424
FirstKey Mortgage Trust Series 2014-1 Class A2 144A±±		3.00			11-25-2044		1,630,591		1,621,572
GAHR Commercial Mortgage Trust Series 2015-NRF Class AFX 144A		3.23			12-15-2034		1,600,000		1,602,135
Great Wolf Trust Series 2017-A (1 Month LIBOR +0.85%) 144A±		3.06			9-15-2034		2,350,000		2,350,706
GS Mortgage Securities Trust Series 2007 Class AM ±±		5.98			8-10-2045		308,801		314,068
Hyatt Hotel Portfolio Trust Series 2017-HYTE Class A (1 Month LIBOR +0.66%) 144A±		2.72			8-9-2032		765,000		764,271
Jamestown Collateralized Loan Obligation Limited Series 2016-9A Class A1A (3 Month LIBOR +1.57%) 144A±		3.92			10-20-2028		2,000,000		2,000,380
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-CB18 Class AMFL (1 Month LIBOR +0.17%) ±		2.23			6-12-2047		639,419		628,319
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-LDPX Class AM ±±		5.46			1-15-2049		295,382		295,945
JPMorgan Chase Commercial Mortgage Securities Trust Series 2018-WPT Class AFL (1 Month LIBOR +0.95%) 144A±		3.03			7-5-2033		2,660,000		2,653,389
Morgan Stanley Capital I Series 2004-RR2 Class X 144A±±(c)		0.35			10-28-2033		6,880		122
Neuberger Berman Limited Series 2015-20A Class AR (3 Month LIBOR +0.80%) 144A±		3.14			1-15-2028		1,575,000		1,572,376
Palmer Square Loan Funding Limited Series 2018-3A Class A1 (3 Month LIBOR +0.85%) 144A±		3.19			8-15-2026		3,140,000		3,136,935
Rait Trust Series 2017-FL8 Class A (1 Month LIBOR +0.85%) 144A±		2.91			12-15-2037		1,366,030		1,366,028
Sound Point Collateralized Loan Obligation Limited Series 2013-2RA Class A1 (3 Month LIBOR +0.95%) 144A±		3.30			4-15-2029		2,825,000		2,820,149
Stonemont Portfolio Trust Series 2017 Class A (1 Month LIBOR +0.85%) 144A±		2.93			8-20-2030		2,544,900		2,544,887
UBS Commercial Mortgage Trust Series 2017-C5 Class A5		3.47			11-15-2050		1,140,000		1,118,497
Voya Collateralized Loan Obligation Limited Series 2015-2A Class AR (3 Month LIBOR +0.97%) 144A±		3.32			7-23-2027		2,900,000		2,899,948

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

Portfolio of investments—August 31, 2018 Wells Fargo Core Plus Bond Fund 21

Security name	Interest rate			Maturity date		Principal		Value
Non-Agency Mortgage-Backed Securities (continued)
West Collateralized Loan Obligation Limited Series 2014-2A Class A1 (3 Month LIBOR +0.87%) 144A±		3.21	%		1-16-2027	$	3,000,000	$	2,995,317
Wind River Collateralized Loan Obligation Limited Trust Series 2014-3A Class AR (3 Month LIBOR +1.10%) 144A±		3.45			1-22-2027		1,600,000		1,600,315
Total Non-Agency Mortgage-Backed Securities (Cost $51,520,413)									51,224,463
U.S. Treasury Securities: 12.62%
U.S. Treasury Bond		2.88			5-15-2028		5,625,000		5,625,879
U.S. Treasury Bond		3.00			8-15-2048		5,660,000		5,631,479
U.S. Treasury Bond		3.13			5-15-2048		575,000		586,522
U.S. Treasury Bond		3.38			5-15-2044		2,410,000		2,561,378
U.S. Treasury Bond		3.63			2-15-2044		4,245,000		4,698,021
U.S. Treasury Bond		3.75			8-15-2041		3,965,000		4,454,739
U.S. Treasury Bond		3.75			11-15-2043		2,775,000		3,130,872
U.S. Treasury Bond		4.25			11-15-2040		1,385,000		1,666,545
U.S. Treasury Note		1.63			8-31-2022		465,000		445,492
U.S. Treasury Note		1.75			5-15-2023		2,760,000		2,639,142
U.S. Treasury Note		2.00			10-31-2022		8,210,000		7,970,756
U.S. Treasury Note		2.25			11-15-2027		21,465,000		20,403,489
U.S. Treasury Note		2.38			1-31-2023		3,145,000		3,096,719
U.S. Treasury Note		2.50			3-31-2023		1,790,000		1,770,981
U.S. Treasury Note		2.63			2-28-2023		965,000		960,288
U.S. Treasury Note		2.63			6-30-2023		4,225,000		4,201,069
U.S. Treasury Note		6.13			11-15-2027		3,875,000		4,892,490
Total U.S. Treasury Securities (Cost $75,400,414)									74,735,861
Yankee Corporate Bonds and Notes: 9.29%
Consumer Staples: 0.55%
Beverages: 0.55%
Bacardi Limited 144A		5.30			5-15-2048		1,485,000		1,441,505
Coca-Cola Femsa SAB de CV		3.88			11-26-2023		1,810,000		1,826,894
									3,268,399
Energy: 0.74%
Energy Equipment & Services: 0.19%
Ensco plc		5.75			10-1-2044		1,500,000		1,091,250
Oil, Gas & Consumable Fuels: 0.55%
BP Capital Markets plc		3.22			11-28-2023		2,170,000		2,145,942
Comision Federal de Electricidad 144A		4.75			2-23-2027		1,140,000		1,125,750
									3,271,692
Financials: 6.00%
Banks: 3.04%
ABN AMRO Bank NV 144A		4.75			7-28-2025		1,800,000		1,822,594
Banco de Bogota SA 144A		4.38			8-3-2027		1,110,000		1,066,988
Banco do Brasil SA 144A		4.63			1-15-2025		1,615,000		1,465,774
Banco General SA 144A		4.13			8-7-2027		1,035,000		980,067

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

22 Wells Fargo Core Plus Bond Fund Portfolio of investments—August 31, 2018

Security name	Interest rate			Maturity date		Principal		Value
Banks (continued)
Banco Internacional del Peru SAA Interbank 144A		3.38	%		1-18-2023	$	1,526,000	$	1,466,868
Banco Nacional de Desenvolvimento Econômico e Social 144A		4.75			5-9-2024		905,000		849,343
Banco Safra SA 144A		4.13			2-8-2023		1,695,000		1,603,911
Banco Santander SA		4.25			4-11-2027		1,600,000		1,538,477
Banistmo SA 144A		3.65			9-19-2022		1,160,000		1,112,150
Banque Ouest Africaine de Developpement 144A		5.00			7-27-2027		2,520,000		2,424,240
BPCE SA 144A		5.15			7-21-2024		1,725,000		1,764,530
Credit Suisse Group Funding Limited (3 Month LIBOR +1.20%) 144A±		3.00			12-14-2023		1,485,000		1,424,925
Sumitomo Mitsui Financial Group Incorporated		2.44			10-19-2021		500,000		485,494
									18,005,361
Capital Markets: 0.41%
Macquarie Group Limited 144A		6.00			1-14-2020		2,365,000		2,444,992
Diversified Financial Services: 1.23%
Banco Nacional de Comercio Exterior SNC 144A		4.38			10-14-2025		2,350,000		2,314,774
Corporacion Financiera de Desarrollo SA (3 Month LIBOR +5.61%) 144A±		5.25			7-15-2029		1,185,000		1,202,775
Teva Pharmaceutical Finance Netherlands III BV		6.75			3-1-2028		800,000		834,046
UBS Group Funding Switzerland AG 144A		3.49			5-23-2023		1,165,000		1,149,701
UBS Group Funding Switzerland AG (5 Year USD Swap +4.87%) ±		7.00			12-29-2049		1,650,000		1,751,043
									7,252,339
Insurance: 0.93%
Axis Specialty Finance plc		2.65			4-1-2019		1,970,000		1,967,361
Sompo International Holdings Limited		7.00			7-15-2034		1,330,000		1,574,964
Validus Holdings Limited		8.88			1-26-2040		1,335,000		1,947,474
									5,489,799
Thrifts & Mortgage Finance: 0.39%
Nationwide Building Society (5 Year USD Swap Rate +1.85%) 144A±		4.13			10-18-2032		2,500,000		2,306,978
Health Care: 0.75%
Pharmaceuticals: 0.75%
Shire Acquisitions Investment Ireland Limited		2.40			9-23-2021		2,550,000		2,464,084
Teva Pharmaceutical Finance BV		4.10			10-1-2046		2,700,000		1,983,760
									4,447,844
Industrials: 0.12%
Transportation Infrastructure: 0.12%
Mexico City Airport Trust 144A		5.50			7-31-2047		840,000		745,441
Telecommunication Services: 0.54%
Diversified Telecommunication Services: 0.15%
Telefonica Emisiones SAU		5.21			3-8-2047		885,000		870,724
Wireless Telecommunication Services: 0.39%
Vodafone Group plc		4.38			5-30-2028		2,330,000		2,310,236

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

Portfolio of investments—August 31, 2018 Wells Fargo Core Plus Bond Fund 23

Security name	Interest rate			Maturity date		Principal		Value
Utilities: 0.59%
Electric Utilities: 0.59%
Transelec SA 144A		3.88	%		1-12-2029	$	860,000	$	795,504
Western Power Distributions Holdings Limited 144A		7.38			12-15-2028		2,265,000		2,686,390
									3,481,894
Total Yankee Corporate Bonds and Notes (Cost $55,301,514)									54,986,949
Yankee Government Bonds: 3.05%
Bermuda 144A		3.72			1-25-2027		995,000		937,817
Bermuda 144A		4.14			1-3-2023		1,210,000		1,221,253
Hashemite Kingdom of Jordan		3.00			6-30-2025		3,000,000		2,983,433
Province of Santa Fe 144A		7.00			3-23-2023		2,000,000		1,707,520
Republic of Argentina		6.88			4-22-2021		1,280,000		1,141,133
Republic of Argentina		6.88			1-11-2048		1,000,000		697,500
Republic of Argentina		7.50			4-22-2026		1,350,000		1,114,439
Republic of Brazil		4.63			1-13-2028		1,795,000		1,591,285
Republic of Chile		3.86			6-21-2047		1,000,000		953,500
Republic of Ecuador 144A		7.88			1-23-2028		500,000		428,750
Republic of Kenya 144A		8.25			2-28-2048		750,000		699,852
Republic of Senegal 144A		6.25			5-23-2033		750,000		674,925
Ukraine		1.47			9-29-2021		3,000,000		2,881,542
Ukraine 144A		7.38			9-25-2032		1,200,000		1,014,000
Total Yankee Government Bonds (Cost $19,931,044)									18,046,949
Short-Term Investments: 6.40%
Commercial Paper: 1.62%
Catholic Health Initiatives (z)		1.97			9-14-2018		5,000,000		4,996,191
Michigan State University Board of Trustees Series B		2.40			9-10-2018		4,600,000		4,600,138
									9,596,329
	Yield					Shares
Investment Companies: 4.43%
Securities Lending Cash Investment LLC (l)(r)(u)		2.07					892,078		892,167
Wells Fargo Government Money Market Fund Select Class (l)(u)##		1.87					25,332,190		25,332,190
									26,224,357
						Principal
U.S. Treasury Securities: 0.35%
U.S. Treasury Bill (z)#		1.31			9-13-2018	$	1,900,000		1,899,094
U.S. Treasury Bill (z)#		1.62			9-27-2018		180,000		179,781
									2,078,875
Total Short-Term Investments (Cost $37,899,362)									37,899,561

Total investments in securities (Cost $609,911,125)	102.02	%		603,913,628
Other assets and liabilities, net	(2.02	)		(11,983,652	)
Total net assets	100.00	%	$	591,929,976

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

24 Wells Fargo Core Plus Bond Fund Portfolio of investments—August 31, 2018

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

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

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

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

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

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

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

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

‡ Security is valued using significant unobservable inputs.

† Non-income-earning security

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

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

(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.

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

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

Abbreviations:

AGM Assured Guaranty Municipal

Ambac Ambac Financial Group Incorporated

BRL Brazilian real

CAB Capital appreciation bond

EDA Economic Development Authority

ETF Exchange-traded fund

EUR Euro

FHLMC Federal Home Loan Mortgage Corporation

FNMA Federal National Mortgage Association

GNMA Government National Mortgage Association

GO General obligation

HEFAR Higher Education Facilities Authority Revenue

IDR Indonesian rupiah

LIBOR London Interbank Offered Rate

MXN Mexican peso

REIT Real Estate Investment Trust

SBA Small Business Authority

STRIPS Separate trading of registered interest and principal securities

TVA Tennessee Valley Authority

Futures Contracts

Description	Number of contracts		Expiration date		Notional cost		Notional value		Unrealized gains		Unrealized losses
Long
Euro BTP Future		45		12-6-2018	$	6,329,236	$	6,308,792	$	0	$	(20,444	)
U.S. Long Term Bond		65		12-19-2018		9,395,307		9,374,219		0		(21,088	)
U.S. Ultra Bond		50		12-19-2018		7,999,491		7,965,625		0		(33,866	)
10-Year U.S. Treasury Notes		60		12-19-2018		7,219,784		7,215,938		0		(3,846	)
10-Year Ultra Futures		5		12-19-2018		641,024		640,234		0		(790	)
5-Year U.S. Treasury Notes		55		12-31-2018		6,235,258		6,236,914		1,656		0
2-Year U.S. Treasury Notes		180		12-31-2018		38,036,531		38,044,688		8,157		0

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

Portfolio of investments—August 31, 2018 Wells Fargo Core Plus Bond Fund 25

Futures Contracts (continued)

Description	Number of contracts		Expiration date		Notional cost			Notional value			Unrealized gains		Unrealized losses
Short
Euro-Bund Futures		(80)		12-6-2018	$	(14,906,685	)	$	(14,930,030	)	$	0	$	(23,345	)
Euro-BOBL Futures		(90)		12-6-2018		(13,744,642	)		(13,748,967	)		0		(4,325	)
											$	9,813	$	(107,704	)

Forward Foreign Currency Contracts

Currency to be received	Currency to be delivered	Counterparty	Settlement date	Unrealized gains		Unrealized losses
32,173,320 USD	27,600,000 EUR	Citibank	9-28-2018	$	82,127	$	0
4,239,349 USD	3,600,000 EUR	Citibank	9-28-2018		53,541		0
2,625,000 EUR	3,037,080 USD	Citibank	9-28-2018		15,071		0
314,000,000 JPY	2,870,463 USD	Citibank	9-28-2018		0		(39,918	)
1,430,615 USD	1,900,000 CAD	Citibank	9-28-2018		0		(25,986	)
				$	150,739	$	(65,904	)

Centrally Cleared Credit Default Swaps

Reference index	Fixed rate received			Payment frequency		Maturity date		Notional amount		Value		Premiums paid		Unrealized gains		Unrealized losses
Sell protection
Markit iTraxx Europe Index		1.00	%		Quarterly		6-20-2023		4,000,000 EUR	$	69,282	$	90,102	$	0	$	(20,820	)
Markit iTraxx Europe Index		5.00			Quarterly		6-20-2023		3,000,000 EUR		302,157		313,573		0		(11,416	)
												$	403,675	$	0	$	(32,236	)

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		2,797,697		144,943,430		146,849,049		892,078	$	(2	)	$	(3	)	$	45,877	$	892,167
Wells Fargo Government Money Market Fund Select Class		66,446,091		321,018,603		362,132,504		25,332,190		0			0			685,955		25,332,190
									$	(2	)	$	(3	)	$	731,832	$	26,224,357		4.43	%

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

26 Wells Fargo Core Plus Bond Fund Statement of assets and liabilities—August 31, 2018

Assets
Investments in unaffiliated securities (including $872,600 of securities loaned), at value (cost $583,686,828)	$	577,689,271
Investments in affiliated, at value (cost $26,224,297)		26,224,357
Cash at broker segregated for centrally cleared swaps		515,017
Foreign currency, at value (cost $332,470)		332,738
Principal paydown receivable		83
Receivable for Fund shares sold		916,097
Receivable for interest		4,105,007
Receivable for daily variation margin on open futures contracts		34,276
Receivable for securities lending income		1,955
Unrealized gains on forward foreign currency contracts		150,739
Prepaid expenses and other assets		262,599
Total assets		610,232,139
Liabilities
Payable for investments purchased		15,273,938
Payable for Fund shares redeemed		1,520,736
Payable upon receipt of securities loaned		891,240
Management fee payable		142,995
Due to custodian bank		76,125
Unrealized losses on forward foreign currency contracts		65,904
Administration fees payable		61,691
Payable for daily variation margin on centrally cleared swaps		10,659
Payable for daily variation margin on open futures contracts		56,822
Distribution fees payable		14,428
Trustees’ fees and expenses payable		2,276
Accrued expenses and other liabilities		185,349
Total liabilities		18,302,163
Total net assets	$	591,929,976
NET ASSETS CONSIST OF
Paid-in capital	$	598,832,572
Undistributed net investment income		2,094,155
Accumulated net realized losses on investments		(2,941,699	)
Net unrealized losses on investments		(6,055,052	)
Total net assets	$	591,929,976
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	229,687,519
Shares outstanding – Class A1		18,725,320
Net asset value per share – Class A		$12.27
Maximum offering price per share – Class A2		$12.85
Net assets – Class C	$	20,550,409
Shares outstanding – Class C1		1,675,927
Net asset value per share – Class C		$12.26
Net assets – Class R6	$	45,158,992
Shares outstanding – Class R61		3,676,140
Net asset value per share – Class R6		$12.28
Net assets – Administrator Class	$	32,241,404
Shares outstanding – Administrator Class1		2,632,775
Net asset value per share – Administrator Class		$12.25
Net assets – Institutional Class	$	264,291,652
Shares outstanding – Institutional Class1		21,524,499
Net asset value per share – Institutional Class		$12.28

¹  The Fund has an unlimited number of authorized shares.

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

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

Statement of operations—year ended August 31, 2018 Wells Fargo Core Plus Bond Fund 27

Investment income
Interest (net of foreign interest withholding taxes of $7,632)	$	18,588,591
Income from affiliated securities		731,832
Dividends		200,263
Total investment income		19,520,686
Expenses
Management fee		2,598,288
Administration fees
Class A		398,323
Class C		33,155
Class R6		11,811
Administrator Class		38,730
Institutional Class		187,147
Shareholder servicing fees
Class A		622,380
Class C		51,804
Administrator Class		96,615
Distribution fee
Class C		155,413
Custody and accounting fees		59,857
Professional fees		64,294
Registration fees		93,263
Shareholder report expenses		105,695
Trustees’ fees and expenses		24,204
Other fees and expenses		9,903
Total expenses		4,550,882
Less: Fee waivers and/or expense reimbursements		(1,113,188	)
Net expenses		3,437,694
Net investment income		16,082,992
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		(214,198	)
Affiliated securities		(2	)
Futures contracts		(2,344,997	)
Forward foreign currency contracts		(46,781	)
Credit default swap contracts		135,319
Net realized losses on investments		(2,470,659	)
Net change in unrealized gains (losses) on:
Unaffiliated securities		(19,418,939	)
Affiliated securities		(3	)
Futures contracts		(139,113	)
Forward foreign currency contracts		1,669,470
Credit default swap contracts		(18,762	)
Net change in unrealized gains (losses) on investments		(17,907,347	)
Net realized and unrealized gains (losses) on investments		(20,378,006	)
Net decrease in net assets resulting from operations	$	(4,295,014	)

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

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

	Year ended August 31, 2018						Year ended August 31, 2017
Operations
Net investment income				$	16,082,992					$	14,822,987
Net realized gains (losses) on investments					(2,470,659	)					4,956,568
Net change in unrealized gains (losses) on investments					(17,907,347	)					(6,580,780	)
Net increase (decrease) in net assets resulting from operations					(4,295,014	)					13,198,775
Distributions to shareholders from
Net investment income
Class A					(6,592,901	)					(8,298,601	)
Class B					N/A						(563	)1
Class C					(396,945	)					(354,581	)
Class R6					(1,205,963	)					(337,520	)2
Administrator Class					(1,057,877	)					(1,459,294	)
Institutional Class					(7,080,934	)					(3,111,816	)
Net realized gains
Class A					0						(174,322	)
Class C					0						(10,016	)
Class R6					0						(12	)2
Administrator Class					0						(28,708	)
Institutional Class					0						(41,445	)
Total distributions to shareholders					(16,334,620	)					(13,816,878	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		3,153,880			39,493,506			6,027,974			75,386,710
Class C		574,528			7,177,070			419,941			5,278,093
Class R6		1,231,456			15,394,192			2,444,368	2		30,444,742	2
Administrator Class		1,331,903			16,514,724			2,382,823			29,615,799
Institutional Class		15,277,371			190,922,160			10,894,809			136,214,194
					269,501,652						276,939,538
Reinvestment of distributions
Class A		490,954			6,097,803			633,102			7,894,693
Class B		N/A			N/A			44	1		550	1
Class C		29,298			363,379			22,979			286,809
Class R6		81,463			1,012,889			26,775	2		337,532	2
Administrator Class		84,932			1,053,385			119,039			1,483,140
Institutional Class		530,646			6,583,306			232,681			2,910,737
					15,110,762						12,913,461
Payment for shares redeemed
Class A		(5,034,990	)		(62,673,141	)		(14,092,819	)		(175,455,886	)
Class B		N/A			N/A			(10,056	)1		(124,139	)1
Class C		(426,093	)		(5,284,028	)		(615,840	)		(7,673,788	)
Class R6		(107,920	)		(1,336,675	)		(2	)2		(22	)2
Administrator Class		(2,078,726	)		(25,750,208	)		(4,817,096	)		(59,885,885	)
Institutional Class		(7,127,474	)		(88,356,112	)		(4,552,266	)		(56,762,736	)
					(183,400,164	)					(299,902,456	)
Net increase (decrease) in net assets resulting from capital share transactions					101,212,250						(10,049,457	)
Total increase (decrease) in net assets					80,582,616						(10,667,560	)
Net assets
Beginning of period					511,347,360						522,014,920
End of period				$	591,929,976					$	511,347,360
Undistributed net investment income				$	2,094,155					$	2,271,037

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

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

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

Financial highlights Wells Fargo Core Plus Bond Fund 29

(For a share outstanding throughout each period)

	Year ended August 31
CLASS A	2018			2017			2016			2015			2014
Net asset value, beginning of period		$12.71			$12.70			$12.14			$12.24			$11.66
Net investment income		0.34			0.36	1		0.33			0.21	1		0.26
Net realized and unrealized gains (losses) on investments		(0.45	)		(0.01	)		0.60			(0.08	)		0.57
Total from investment operations		(0.11	)		0.35			0.93			0.13			0.83
Distributions to shareholders from
Net investment income		(0.33	)		(0.33	)		(0.33	)		(0.21	)		(0.25	)
Net realized gains		0.00			(0.01	)		(0.04	)		(0.02	)		0.00
Total distributions to shareholders		(0.33	)		(0.34	)		(0.37	)		(0.23	)		(0.25	)
Net asset value, end of period		$12.27			$12.71			$12.70			$12.14			$12.24
Total return2		(0.84	)%		2.78	%		7.78	%		1.04	%		7.16	%
Ratios to average net assets (annualized)
Gross expenses		0.92	%		0.93	%		0.93	%		0.91	%		0.93	%
Net expenses		0.73	%		0.76	%		0.84	%		0.84	%		0.85	%
Net investment income		2.63	%		2.88	%		2.76	%		1.69	%		2.10	%
Supplemental data
Portfolio turnover rate		148	%		199	%		288	%		322	%		267	%
Net assets, end of period (000s omitted)		$229,688			$255,668			$349,852			$223,755			$129,646

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.

30 Wells Fargo Core Plus Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended August 31
CLASS C	2018			2017			2016			2015			2014
Net asset value, beginning of period		$12.71			$12.70			$12.14			$12.23			$11.65
Net investment income		0.23			0.26			0.24	1		0.12	1		0.16
Net realized and unrealized gains (losses) on investments		(0.44	)		(0.01	)		0.59			(0.08	)		0.58
Total from investment operations		(0.21	)		0.25			0.83			0.04			0.74
Distributions to shareholders from
Net investment income		(0.24	)		(0.23	)		(0.23	)		(0.11	)		(0.16	)
Net realized gains		0.00			(0.01	)		(0.04	)		(0.02	)		0.00
Total distributions to shareholders		(0.24	)		(0.24	)		(0.27	)		(0.13	)		(0.16	)
Net asset value, end of period		$12.26			$12.71			$12.70			$12.14			$12.23
Total return2		(1.66	)%		2.01	%		6.99	%		0.35	%		6.35	%
Ratios to average net assets (annualized)
Gross expenses		1.67	%		1.68	%		1.68	%		1.66	%		1.68	%
Net expenses		1.48	%		1.51	%		1.59	%		1.59	%		1.60	%
Net investment income		1.89	%		2.12	%		2.00	%		0.95	%		1.35	%
Supplemental data
Portfolio turnover rate		148	%		199	%		288	%		322	%		267	%
Net assets, end of period (000s omitted)		$20,550			$19,036			$21,216			$20,381			$24,212

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 Core Plus Bond Fund 31

(For a share outstanding throughout the period)

	Year ended August 31
CLASS R6	2018			20171
Net asset value, beginning of period		$12.73			$12.59
Net investment income		0.39			0.33	2
Net realized and unrealized gains (losses) on investments		(0.46	)		0.12
Total from investment operations		(0.07	)		0.45
Distributions to shareholders from
Net investment income		(0.38	)		(0.30	)
Net realized gains		0.00			(0.01	)
Total distributions to shareholders		(0.38	)		(0.31	)
Net asset value, end of period		$12.28			$12.73
Total return3		(0.55	)%		3.64	%
Ratios to average net assets (annualized)
Gross expenses		0.54	%		0.55	%
Net expenses		0.35	%		0.35	%
Net investment income		3.05	%		3.12	%
Supplemental data
Portfolio turnover rate		148	%		199	%
Net assets, end of period (000s omitted)		$45,159			$31,451

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

32 Wells Fargo Core Plus Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended August 31
ADMINISTRATOR CLASS	2018			2017			2016			2015			2014
Net asset value, beginning of period		$12.69			$12.68			$12.12			$12.22			$11.64
Net investment income		0.35			0.37			0.34			0.22			0.27	1
Net realized and unrealized gains (losses) on investments		(0.44	)		(0.01	)		0.60			(0.08	)		0.57
Total from investment operations		(0.09	)		0.36			0.94			0.14			0.84
Distributions to shareholders from
Net investment income		(0.35	)		(0.34	)		(0.34	)		(0.22	)		(0.26	)
Net realized gains		0.00			(0.01	)		(0.04	)		(0.02	)		0.00
Total distributions to shareholders		(0.35	)		(0.35	)		(0.38	)		(0.24	)		(0.26	)
Net asset value, end of period		$12.25			$12.69			$12.68			$12.12			$12.22
Total return		(0.74	)%		2.90	%		7.92	%		1.15	%		7.31	%
Ratios to average net assets (annualized)
Gross expenses		0.86	%		0.87	%		0.87	%		0.85	%		0.87	%
Net expenses		0.62	%		0.66	%		0.72	%		0.72	%		0.72	%
Net investment income		2.74	%		2.97	%		2.84	%		1.82	%		2.24	%
Supplemental data
Portfolio turnover rate		148	%		199	%		288	%		322	%		267	%
Net assets, end of period (000s omitted)		$32,241			$41,806			$71,133			$85,431			$101,653

¹  Calculated based upon average shares outstanding

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

Financial highlights Wells Fargo Core Plus Bond Fund 33

(For a share outstanding throughout each period)

	Year ended August 31
INSTITUTIONAL CLASS	2018			2017			2016			2015			2014
Net asset value, beginning of period		$12.72			$12.71			$12.15			$12.24			$11.67
Net investment income		0.37	1		0.38			0.36			0.24	1		0.28
Net realized and unrealized gains (losses) on investments		(0.44	)		0.01			0.60			(0.07	)		0.57
Total from investment operations		(0.07	)		0.39			0.96			0.17			0.85
Distributions to shareholders from
Net investment income		(0.37	)		(0.37	)		(0.36	)		(0.24	)		(0.28	)
Net realized gains		0.00			(0.01	)		(0.04	)		(0.02	)		0.00
Total distributions to shareholders		(0.37	)		(0.38	)		(0.40	)		(0.26	)		(0.28	)
Net asset value, end of period		$12.28			$12.72			$12.71			$12.15			$12.24
Total return		(0.52	)%		3.10	%		8.05	%		1.37	%		7.36	%
Ratios to average net assets (annualized)
Gross expenses		0.59	%		0.60	%		0.60	%		0.58	%		0.60	%
Net expenses		0.40	%		0.44	%		0.58	%		0.58	%		0.58	%
Net investment income		3.00	%		3.17	%		3.04	%		1.95	%		2.38	%
Supplemental data
Portfolio turnover rate		148	%		199	%		288	%		322	%		267	%
Net assets, end of period (000s omitted)		$264,292			$163,387			$79,687			$54,419			$32,438

¹  Calculated based upon average shares outstanding

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

34 Wells Fargo Core Plus Bond Fund Notes to financial statements

1. ORGANIZATION

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

Effective at the close of business on December 5, 2016, Class B shares were converted to Class A shares and are no longer offered by the Fund. Information for Class B shares reflected in the financial statements represents activity through December 5, 2016.

2. SIGNIFICANT ACCOUNTING POLICIES

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

Securities valuation

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

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

Equity securities and futures contracts 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.

Swap contracts 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”).

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. 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.

Notes to financial statements Wells Fargo Core Plus Bond Fund 35

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 contracts. 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.

When-issued transactions

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

36 Wells Fargo Core Plus Bond Fund Notes to financial statements

Loans

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

Futures contracts

The Fund is subject to interest rate risk and foreign currency risk in the normal course of pursuing its investment objectives. Futures contracts are agreements between the Fund and a counterparty to buy or sell a specific amount of a commodity, financial instrument or currency at specified price and on a specified date. The Fund may buy and sell futures contracts in order to gain exposure to, or protect against, changes in interest rates and foreign exchange rates. The primary risks associated with the use of futures contracts are the imperfect correlation between changes in market values of securities held by the Fund and the prices of futures contracts, and the possibility of an illiquid market. Futures contracts are generally entered into on a regulated futures exchange and cleared through a clearinghouse associated with the exchange. With futures contracts, there is minimal counterparty risk to the Fund since futures contracts are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures contracts against default.

Upon entering into a futures contracts, the Fund is required to deposit either cash or securities (initial margin) with the broker in an amount equal to a certain percentage of the contract value. Subsequent payments (variation margin) are paid to or from the broker each day equal to the daily changes in the contract value. Such payments are recorded as unrealized gains or losses and, if any, shown as variation margin receivable (payable) in the Statement of Assets and Liabilities. Should the Fund fail to make requested variation margin payments, the broker can gain access to the initial margin to satisfy the Fund’s payment obligations. When the contracts are closed, a realized gain or loss is recorded in the Statement of Operations.

Swap contracts

Swap contracts are agreements between the Fund and a counterparty to exchange a series of cash flows over a specified period. Swap agreements are privately negotiated contracts between the Fund and a counterparty in the OTC market and may be entered into as a bilateral contract (“OTC swaps”) or centrally cleared (“centrally cleared swaps”) with a central clearinghouse.

For OTC swaps, any upfront premiums paid and any upfront fees received are shown as swap premiums paid and swap premiums received, respectively, in the Statement of Assets and Liabilities and amortized over the term of the contract. The daily fluctuations in market value are recorded as unrealized gains or losses on OTC swaps in the Statement of Assets and Liabilities. Payments received or paid are recorded in the Statement of Operations as realized gains or losses, respectively. When an OTC swap is terminated, a realized gain or loss is recorded in the Statement of Operations equal to the difference between the proceeds from (or cost of) the closing transaction and the Fund’s basis in the contract, if any. Generally, the basis of the contract is the premium received or paid.

In a centrally cleared swap, immediately following execution of the swap contract, the swap contract is novated to a central counterparty (the “CCP”) and the Fund’s counterparty on the swap agreement becomes the CCP. Upon entering into a centrally cleared swap, the Fund is required to deposit an initial margin with the broker in the form of cash or securities. Securities deposited as initial margin are designated in the Portfolio of Investments and cash deposited is shown as cash segregated for centrally cleared swaps in the Statement of Assets and Liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). The variation margin is recorded as an unrealized gain (or loss) and shown as variation margin receivable (or payable) on centrally cleared swaps in the Statement of Assets and Liabilities. Payments received from (paid to) the counterparty, including at termination, are recorded as realized gains (losses) in the Statement of Operations.

Credit default swaps

The Fund is subject to credit risk in the normal course of pursuing its investment objectives. The Fund may enter into credit default swaps for hedging or speculative purposes to provide or receive a measure of protection against default on a referenced entity, obligation or index or a basket of single-name issuers or traded indexes. An index

Notes to financial statements Wells Fargo Core Plus Bond Fund 37

credit default swap references all the names in the index, and if a credit event is triggered, the credit event is settled based on that name’s weight in the index. Credit default swaps are agreements in which the protection buyer pays fixed periodic payments to the protection seller in consideration for a promise from the protection seller to make a specific payment should a negative credit event take place with respect to the referenced entity (e.g., bankruptcy, failure to pay, obligation acceleration, repudiation, moratorium or restructuring).

The Fund may enter into credit default swaps as either the seller of protection or the buyer of protection. If the Fund is the buyer of protection and a credit event occurs, the Fund will either receive from the seller an amount equal to the notional amount of the swap and deliver the referenced security or underlying securities comprising the index, or receive a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising the index. If the Fund is the seller of protection and a credit event occurs, the Fund will either pay the buyer an amount equal to the notional amount of the swap and take delivery of the referenced security or underlying securities comprising the index or pay a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising the index.

As the seller of protection, the Fund is subject to investment exposure on the notional amount of the swap and has assumed the risk of default of the underlying security or index. As the buyer of protection, the Fund could be exposed to risks if the seller of the protection defaults on its obligation to perform, or if there are unfavorable changes in the fluctuation of interest rates.

Security transactions and income recognition

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

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

Income dividends and capital gain distributions from investment companies are recorded on the ex-dividend date. Capital gain distributions from investment companies are treated as realized gains.

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 monthly 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 August 31, 2018, the aggregate cost of all investments for federal income tax purposes was $608,300,392 and the unrealized gains (losses) consisted of:

Gross unrealized gains	$	6,811,131
Gross unrealized losses		(11,243,187	)
Net unrealized losses	$	(4,432,056	)

38 Wells Fargo Core Plus Bond Fund Notes to financial statements

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The primary permanent difference causing such reclassification is due to foreign currency transactions. At August 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
$119,600	$74,746	$(194,346)

As of August 31, 2018, the Fund had capital loss carryforwards which consist of $2,883,692 in short-term capital losses and $57,244 in long-term capital losses.

Class allocations

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

3. FAIR VALUATION MEASUREMENTS

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

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

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

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

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

Notes to financial statements Wells Fargo Core Plus Bond Fund 39

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

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Agency securities	$	0	$	136,663,594	$	0	$	136,663,594
Asset-backed securities		0		41,709,694		0		41,709,694
Corporate bonds and notes		0		101,020,926		0		101,020,926
Exchange-traded funds		12,063,480		0		0		12,063,480
Foreign corporate bonds and notes		0		23,387,915		0		23,387,915
Foreign government bonds		0		8,920,476		0		8,920,476
Loans		0		16,179,447		884,400		17,063,847
Municipal obligations		0		26,189,913		0		26,189,913
Non-agency mortgage-backed securities		0		51,224,463		0		51,224,463
U.S. Treasury securities		74,735,861		0		0		74,735,861
Yankee corporate bonds and notes		0		54,986,949		0		54,986,949
Yankee government bonds				18,046,949				18,046,949
Short-term investments
Commercial paper		0		9,596,329		0		9,596,329
Investment companies		25,332,190		0		0		25,332,190
U.S. Treasury securities		2,078,875		0		0		2,078,875
Investments measured at net asset value*								892,167
		114,210,406		487,926,655		884,400		603,913,628
Forward foreign currency contracts		0		150,739		0		150,739
Futures contracts		9,813		0		0		9,813
Total assets	$	114,220,219	$	488,077,394	$	884,400	$	604,074,180
Liabilities
Credit default swap contracts	$	0	$	32,236	$	0	$	32,236
Forward foreign currency contracts		0		65,904		0		65,904
Futures contracts		107,704		0		0		107,704
Total liabilities	$	107,704	$	98,140	$	0	$	205,844

* 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 $892,167 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

Additional sector, industry or geographic detail is included in the Portfolio of Investments.

Forward foreign currency contracts, futures contracts and swap contracts are reported at their cumulative unrealized gains (losses) at measurement date as reported in the tables following the Portfolio of Investments. For futures contracts and centrally cleared swaps, the current day’s variation margin is reported on the Statement of Assets and Liabilities. 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 August 31, 2018, the Fund did not have any transfers into/out of Level 1. The Fund had no material transfers between Level 2 and Level 3.

40 Wells Fargo Core Plus Bond Fund Notes to financial statements

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 and providing fund-level administrative services in connection with the Fund’s operations. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.45% and declining to 0.32% as the average daily net assets of the Fund increase. Prior to January 1, 2018, Funds Management was entitled to receive an annual management fee which started at 0.45% and declined to 0.33% as the average daily net assets of the Fund increased. For the year ended August 31, 2018, the management fee was equivalent to an annual rate of 0.45% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. WellsCap is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.20% and declining to 0.10% as the average daily net assets of the Fund increase.

Administration fees

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

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

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. When each class of the Fund has exceeded its expense cap, Funds Management has waived fees and/or reimbursed expenses from fund level expenses on a proportionate basis and then from class specific expenses; otherwise, waivers and/or reimbursements are applied against class specific expenses before fund level expenses. Funds Management has committed through December 31, 2018 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.73% for Class A shares, 1.48% for Class C shares, 0.35% for Class R6 shares, 0.62% for Administrator Class shares, and 0.40% for Institutional Class shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

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 August 31, 2108, Funds Distributor received $13,375 from the sale of Class A shares and $11 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 August 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.

Notes to financial statements Wells Fargo Core Plus Bond Fund 41

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 short-term securities, for the year ended August 31, 2018 were as follows:

Purchases at cost		Sales proceeds
U.S. government	Non-U.S. government	U.S. government	Non-U.S. government
$620,141,502	$348,636,574	$544,021,408	$262,182,137

6. DERIVATIVE TRANSACTIONS

During the year ended August 31, 2018, the Fund entered into futures contracts to speculate on interest rates and to help manage the duration of the portfolio, forward foreign currency contracts for economic hedging purposes, and credit default swap contracts as a substitute for taking a position in the underlying security or basket of securities or to potentially enhance the Fund’s total return.

The volume of the Fund’s derivative activity during the year ended August 31, 2018 was as follows:

Futures contracts
Average notional balance on long futures	$	79,345,144
Average notional balance on short futures		27,526,186
Forward foreign currency contracts
Average contract amounts to buy		10,335,673
Average contract amounts to sell		31,075,740
Credit default swap contracts
Average notional balance		11,030,137

The Fund’s credit default swap may contain provisions for early termination in the event the net assets of the Fund declines below specific levels identified by the counterparty. If these levels are triggered, the counterparty may terminate the transaction and seek payment or request full collateralization of the derivative transactions in net liability positions.

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

The fair value of derivative instruments as of August 31, 2018 was as follows for the Fund:

	Asset derivatives				Liability derivatives
	Statement of Assets and Liabilities location	Fair value			Statement of Assets and Liabilities location	Fair value
Interest rate contracts	Unrealized gains on futures contracts	$	9,813	*	Unrealized losses on futures contracts	$	59,590	*
Foreign currency contracts	Unrealized gains on futures contracts		0	*	Unrealized losses on futures contracts		48,114	*
	Unrealized gains on forward foreign currency contracts		150,739		Unrealized losses on forward foreign currency contracts		65,904
Credit contracts	Net unrealized gains on swap contracts		0	*	Net unrealized losses on swap contracts		32,236	*
		$	160,552			$	205,844

* Amount represents cumulative unrealized gains (losses) as reported in the tables following the Portfolio of Investments. Only the current day’s variation margin as of August 31, 2018 is reported separately on the Statement of Assets and Liabilities.

42 Wells Fargo Core Plus Bond Fund Notes to financial statements

The effect of derivative instruments on the Statement of Operations for the year ended August 31, 2018 was as follows for the Fund:

	Amount of realized gains (losses) on derivatives
	Futures contracts			Forward foreign currency contracts			Swap contracts			Total
Interest rate risk	$	(1,616,611	)	$	0		$	0		$	(1,616,611	)
Foreign currency risk		(728,386	)		(46,781	)		0			(775,167	)
Credit risk		0			0			135,319			135,319
	$	(2,344,997	)	$	(46,781	)	$	135,319		$	(2,256,459	)
	Change in unrealized gains (losses) on derivatives
	Futures contracts			Forward foreign currency contracts			Swap contracts			Total
Interest rate risk	$	(164,615	)	$	0		$	0		$	(164,615	)
Foreign currency risk		25,502			1,669,470			0			1,694,972
Credit risk		0			0			(18,762	)		(18,762	)
	$	(139,113	)	$	1,669,470		$	(18,762	)	$	1,511,595

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 counterparty, including any collateral exposure, is as follows:

Counterparty	Gross amounts of assets in the Statement of Assets and Liabilities		Amounts subject to netting agreements			Collateral received		Net amount of assets
Citibank	$	150,739	$	(65,904	)	$	0	$	84,835

Counterparty	Gross amounts of liabilities in the Statement of Assets and Liabilities		Amounts subject to netting agreements			Collateral pledged		Net amount of liabilities
Citibank	$	65,904	$	(65,904	)	$	0	$	0

7. BANK BORROWINGS

The Trust (excluding the money market funds), Wells Fargo Master Trust 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.

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

Notes to financial statements Wells Fargo Core Plus Bond Fund 43

8. DISTRIBUTIONS TO SHAREHOLDERS

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

	Year ended August 31
	2018		2017
Ordinary income	$	16,334,620	$	13,562,587
Long-term capital gain		0		254,291

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

Undistributed ordinary income	Unrealized losses	Capital loss carryforward
$490,179	$(4,432,056)	$(2,940,936)

9. INDEMNIFICATION

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

10. NEW ACCOUNTING PRONOUNCEMENTS AND REGULATORY CHANGES

On August 17, 2018, the Securities and Exchange Commission (“SEC”) adopted Disclosure Update and Simplification, which amends certain disclosure requirements. The amendments are effective for filings subsequent to November 5, 2018. Management expects these amendments will impact the classification of disclosures in the financial statements.

In August 2018, FASB issued Accounting Standards Update (“ASU”) No. 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 updates the disclosure requirements for fair value measurements by modifying or removing certain disclosures and adding certain new disclosures. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. Management is currently evaluating the potential impact of this new guidance to the financial statements.

In March 2017, FASB issued ASU No. 2017-08, Premium Amortization on Purchased Callable Debt Securities. ASU 2017-08 shortens the amortization period for certain callable debt securities held at a premium. The amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 is effective for fiscal years beginning after December 15, 2018 and for interim periods within those fiscal years . Management is currently evaluating the potential impact of this new guidance to the financial statements.

11. SUBSEQUENT DISTRIBUTIONS

On September 24, 2018, the Fund declared distributions from net investment income to shareholders of record on September 21, 2018. The per share amounts payable on September 25, 2018 were as follows:

	Net investment income
Class A		$0.03054
Class C		0.02348
Class R6		0.03412
Administrator Class		0.03138
Institutional Class		0.03366

44 Wells Fargo Core Plus Bond Fund Notes to financial statements

On October 25, 2018, the Fund declared distributions from net investment income to shareholders of record on October 24, 2018. The per share amounts payable on October 26, 2018 were as follows:

	Net investment income
Class A		$    0.01958
Class C		0.01172
Class R6		0.02353
Administrator Class		0.02066
Institutional Class		0.02302

These distributions are not reflected in the accompanying financial statements.

Report of independent registered public accounting firm Wells Fargo Core Plus Bond Fund 45

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 Wells Fargo Core Plus Bond Fund (the “Fund”), including the portfolio of investments, as of August 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 August 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 August 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

October 26, 2018

46 Wells Fargo Core Plus Bond Fund Other information (unaudited)

TAX INFORMATION

For the fiscal year ended August 31, 2018, $10,869,557 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 August 31, 2018, 9.14% of the ordinary income distributed was derived from interest on U.S. government securities.

PROXY VOTING INFORMATION

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

PORTFOLIO HOLDINGS INFORMATION

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

Other information (unaudited) Wells Fargo Core Plus Bond Fund 47

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 154 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 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.	N/A
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 The Ruth Bancroft Garden (non-profit organization). She is also an inactive Chartered Financial Analyst.	N/A
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 (private school). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	CIGNA Corporation
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, since 2009	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.	N/A
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.	N/A

48 Wells Fargo Core Plus Bond Fund Other information (unaudited)

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
Olivia S. Mitchell (Born 1953)	Trustee, since 2006; 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.	N/A
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.	N/A
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.	N/A
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.	N/A
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, on the Board of Directors, Governance Committee and Finance Committee for the Minnesota Philanthropy Partners (Saint Paul Foundation) from 2012 to 2018, 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 the Board Chair of the Minnesota Wild Foundation since 2010.	N/A

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

Other information (unaudited) Wells Fargo Core Plus Bond Fund 49

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 Kymn3 (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.
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 77 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.

³  Alexander Kymn became the Secretary and Chief Legal Officer effective April 17, 2018.

50 Wells Fargo Core Plus Bond Fund Other information (unaudited)

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Wells Fargo Core Plus Bond Fund

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at an in-person meeting held on May 22-23, 2018 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for Wells Fargo Core Plus Bond Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Wells Capital Management Incorporated (the “Sub-Adviser”), an affiliate of Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”

At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at an in-person meeting in April 2018, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing investment performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.

In providing information to the Board, Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2018. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and investment performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.

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

Nature, extent and quality of services

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

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

Other information (unaudited) Wells Fargo Core Plus Bond Fund 51

Fund investment performance and expenses

The Board considered the investment performance results for the Fund over various time periods ended December 31, 2017. The Board considered these results in comparison to the investment performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the investment performance of the Fund (Class A) was higher than the average investment performance of the Universe for all periods under review. The Board also noted that the investment performance of the Fund was higher than its benchmark index, the Bloomberg Barclays U.S. Aggregate Bond Index, for all periods under review. The Board noted that the Fund experienced a portfolio manager change in 2017.

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

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

Investment management and sub-advisory fee rates

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

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

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

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

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

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of both WFAM and Wells Fargo & Co. (“Wells Fargo”) as a whole, from providing services to the Fund and the fund family as a whole. The Board noted that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the WFAM and Wells Fargo profitability analysis.

52 Wells Fargo Core Plus Bond Fund Other information (unaudited)

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

Economies of scale

The Board considered the extent to which Funds Management may experience economies of scale in the provision of management services, and the extent to which scale benefits, if any, would be shared with shareholders. In particular, the Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size. It considered that, for a small fund or a fund that shrinks in size, breakpoints conversely can result in higher fee levels. The Board also considered that in addition to management fee breakpoints, competitive management fee rates set at the outset without regard to breakpoints and fee waiver and expense reimbursement arrangements, as well as investments in the business intended to enhance services available to Fund shareholders, are means of sharing potential economies of scale with shareholders of the Fund.

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

Other benefits to Funds Management and the Sub-Adviser

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

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

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

Conclusion

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

Appendix A (unaudited) Wells Fargo Core Plus Bond Fund 53

SALES CHARGE REDUCTIONS AND WAIVERS FOR CERTAIN INTERMEDIARIES

Ameriprise

Effective June 1, 2018, shareholders purchasing Fund shares through an Ameriprise Financial platform or account will be eligible only for the following Class A load waivers (front-end sales charge waivers), which may differ from those disclosed elsewhere in the Fund’s prospectus or Statement of Additional Information.

Front-end Sales Load Waivers on Class A Shares Available at Ameriprise Financial

• Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs or SAR-SEPs.

• Shares purchased through an Ameriprise Financial investment advisory program (if an Advisory or similar share class for such investment advisory program is not available)

• Shares purchased by third party investment advisors on behalf of their advisory clients through Ameriprise Financial’s platform (if an Advisory or similar share class for such investment advisory program is not available)

• Shares purchased through reinvestment of distributions and dividend reinvestment when purchasing shares of the same Fund (but not any other fund within the same fund family)

• Shares exchanged from Class C shares of the same fund in the month of or following the 10-year anniversary of the purchase date. To the extent that the Fund’s prospectus elsewhere provides for a waiver with respect to such shares following a shorter holding period, that waiver will apply to exchanges following such shorter period. To the extent that the Fund’s prospectus elsewhere provides for a waiver with respect to exchanges of Class C shares for load-waived shares, that waiver will also apply to such exchanges.

• Employees and registered representatives of Ameriprise Financial or its affiliates and their immediate family members

• Shares purchased by or through qualified accounts (including IRAs, Coverdell Education Savings Accounts, 401(k)s, 403(b) TSCAs subject to ERISA and defined benefit plans) that are held by a covered family member, defined as an Ameriprise financial advisor and/or the advisor’s spouse, advisor’s lineal ascendant (mother, father, grandmother, grandfather, great grandmother, great grandfather), advisor’s lineal descendant (son, step-son, daughter, step-daughter, grandson, granddaughter, great grandson, great granddaughter) or any spouse of a covered family member who is a lineal descendant

• Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (i.e. Rights of Reinstatement). Subject to the Fund’s policy regarding frequent purchases and redemptions of Fund shares, you may not be able to repurchase shares for the first 30 days after your redemption.

Automatic Exchange of Class C Shares Available at Ameriprise Financial

• Class C shares will automatically exchange to Class A shares in the month of the 10-year anniversary of the purchase date.

Merrill Lynch

Effective April 10, 2017, shareholders purchasing Fund shares through a Merrill Lynch platform or account will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ from those disclosed elsewhere in the Fund’s prospectus or Statement of Additional Information.

Front-end Sales Load Waivers on Class A Shares available at Merrill Lynch

• Employer-sponsored retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan

• Shares purchased by or through a 529 Plan

• Shares purchased through a Merrill Lynch affiliated investment advisory program

54 Wells Fargo Core Plus Bond Fund Appendix A (unaudited)

• Shares purchased by third party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform

• Shares of funds purchased through the Merrill Edge Self-Directed platform (if applicable)

• Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the fund family)

• Shares exchanged from Class C (i.e. level-load) shares of the same fund in the month of or following the 10-year anniversary of the purchase date

• Employees and registered representatives of Merrill Lynch or its affiliates and their family members, as defined by Merrill Lynch, which may differ from the definition of family member in the Fund’s prospectus.

• Directors or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in the Fund’s prospectus

• Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (known as Rights of Reinstatement). Subject to the Fund’s policy regarding frequent purchases and redemptions of Fund shares, you may not be able to repurchase shares for the first 30 days after your redemption.

CDSC Waivers on A, B and C Shares available at Merrill Lynch

• Death or disability of the shareholder

• Shares sold as part of a systematic withdrawal plan as described in the Fund’s prospectus

• Return of excess contributions from an IRA Account

• Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 70½

• Shares sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch

• Shares acquired through a right of reinstatement

• Shares held in retirement brokerage accounts, that are exchanged for a lower cost share class due to transfer to certain fee based accounts or platforms (applicable to A and C shares only)

Front-end load Discounts Available at Merrill Lynch: Breakpoints, Rights of Accumulation & Letters of Intent

• Breakpoints as described in the Fund’s prospectus

• Rights of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.

• Letters of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over a 13-month period of time (if applicable)

Morgan Stanley

Effective on or about July 1, 2018, shareholders purchasing Fund shares through a Morgan Stanley Wealth Management transactional brokerage account will be eligible only for the following Class A load waivers (front-end sales charge waivers), which may differ from and be more limited than those disclosed in the Fund’s prospectus or Statement of Additional Information.

Front-end Sales Load Waivers on Class A Shares Available at Morgan Stanley

• Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans.

• Morgan Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules

• Shares purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund

• Shares purchased through a Morgan Stanley self-directed brokerage account

Appendix A (unaudited) Wells Fargo Core Plus Bond Fund 55

• Class C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are exchanged to Class A shares of the same fund pursuant to Morgan Stanley Wealth Management’s share class exchange program.

• Shares purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred sales charge. This waiver is subject to the Fund’s policy regarding frequent purchases and redemption of Fund shares, as discussed under “Account Information—Frequent Purchases and Redemptions of Fund Shares” in the Fund’s prospectus.

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For more information

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

Wells Fargo Funds

P.O. Box 219967

Kansas City, MO 64121-9967

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 the trade name for certain investment advisory/management firms owned by Wells Fargo & Company. These firms include but are not limited to Wells Capital Management Incorporated and Wells Fargo Funds Management, LLC. Certain products managed by WFAM entities are distributed by Wells Fargo Funds Distributor, LLC (a broker/dealer and Member FINRA).

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.

315407 10-18 A219/AR219 08-18

Annual Report

August 31, 2018

Wells Fargo

Short Duration Government Bond 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	23
Report of independent registered public accounting firm	29
Other information	30
Appendix A	37

The views expressed and any forward-looking statements are as of August 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 Short Duration Government Bond Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

After advancing during 2017, economic growth and stock markets globally diverged during the first eight months of 2018.

Dear Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Short Duration Government Bond Fund for the 12-month period that ended August 31, 2018. After advancing during 2017, economic growth and stock markets globally diverged during the first eight months of 2018. For fixed-income investors, taxable bond returns suffered and high-yield and municipal bond returns were positive.

For the period, U.S. stocks, as measured by the S&P 500 Index,¹ gained 19.66%, and international stocks, as measured by the MSCI ACWI ex USA Index (Net),² added 3.18%. Based on the MSCI EM Index (Net),³ emerging market stocks lost 0.68%. For bond investors, the Bloomberg Barclays U.S. Aggregate Bond Index⁴ declined 1.05% while the Bloomberg Barclays Global Aggregate ex-USD Index⁵ fell 1.64%. The Bloomberg Barclays Municipal Bond Index⁶ added 0.49%, and the ICE BofAML U.S. High Yield Index⁷ was up 3.26%.

Continued optimism in the U.S. characterized the fourth quarter of 2017.

Some observers described economic conditions in late 2017 as a Goldilocks scenario: synchronized global growth, low inflation, healthy corporate earnings, and a weaker U.S. dollar that supported international growth. During the quarter, the U.S. Bureau of Economic Analysis reported that annualized U.S. gross domestic product (GDP) growth for the third quarter of 2017 was 2.8% and inflation remained below U.S. Federal Reserve (Fed) targets. U.S. corporate earnings and consumer confidence improved.

Economic momentum increased in Europe. The Bank of England (BOE) raised interest rates in November 2017 to 0.50%, the first increase in more than 10 years, indicating confidence in the economy’s growth potential. Meanwhile, the European Central Bank and the Bank of Japan kept interest rates low to spur business activities and bought bonds in an effort to encourage equity investments. The People’s Bank of China’s (PBOC’s) policies sought to stimulate business. Many emerging market economies benefited from stronger currencies versus the U.S. dollar, while commodity price increases benefited countries that rely on natural resources for exports.

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 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.

⁶  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.

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 Short Duration Government Bond Fund 3

Volatility reemerged during the first quarter of 2018 as global tensions and inflation fears increased.

Stock market gains in January 2018 followed the passage of lower U.S. tax rates. Some investors then grew concerned about trade, particularly between the U.S. and China, and the specter of inflation. The Fed followed its 25-basis-point (bp; 100 bps equal 1.00%) federal funds rate increase in December 2017 with a further 25-bp increase in March 2018. The inflation rate in March reached the Fed’s 2% target for the first time in a year.

The S&P 500 Index closed the first quarter with a negative return, the first negative quarterly return for the index since 2014. Overseas investment markets reversed strong returns in 2017, hurt by a stronger U.S. dollar and mounting trade and diplomatic tensions. After gaining 27.19% for the 12-month period that ended December 31, 2017, the MSCI ACWI ex USA Index (Net) declined 1.81% for the quarter that ended March 31, 2018.

Global trade tensions escalated during the second quarter.

Global trade tensions escalated throughout the second quarter of 2018. The U.S. government imposed tariffs, and foreign governments in North America, Europe, and Asia retaliated. The escalating tensions chilled investment activity as observers awaited signals of next steps.

Meanwhile, inflation continued an upward trend. The CPI-U⁸ added 0.1% in June after increases of 0.2% in both April and May. On a year-over-year basis, the all-items index rose 2.9% for the 12 months that ended June 30, 2018. The index for all items less food and energy rose 2.3% for the same 12-month period.

U.S. stocks gained while international stocks and bonds declined during the summer of 2018.

The U.S. economy strengthened during the summer months. Revised second-quarter GDP data released in August showed the U.S. economy growing at a 4.2% rate. After ticking up slightly in June, the unemployment rate in the U.S. was 3.9% in July and August, according to the U.S. Department of Labor. Wages showed more consistent growth than they had in recent quarters, and consumer confidence remained strong.

Several U.S. equity market indices reached records during August, with the S&P 500 Index gaining 7.76% for the three-month period that ended August 31, 2018. International stock values continued to suffer under the effects of a strong U.S. dollar and continuing trade tensions. The MSCI ACWI ex USA Index (Net) and the MSCI EM Index (Net) were down 4.70% and 1.64%, respectively, during the same three-month period.

The Fed increased the federal funds rate in June, and expectations grew that two more rate increases were in the offing in 2018. Long-term interest rates in the U.S. remained at higher levels relative to the prior 10 years. Rates on 10-year and 30-year Treasury bonds—2.46% and 2.81%, respectively, on January 1, 2018—were 2.86% and 3.02%, respectively, on August 31, off their peak levels on May 17, 2018, of 3.11% and 3.25%, respectively. Some investors became more aware of and concerned about the potential for an inverted yield curve—sometimes a recession signal—as short-term rates increased more quickly than long-term rates. The Fed decided to forgo an interest rate increase at its August meeting.

The S&P 500 Index closed the first quarter with a negative return, the first negative quarterly return for the index since 2014.

⁸  The Consumer Price Index for All Urban Consumers (CPI-U) measures the changes in the price of a basket of goods and services purchased by urban consumers. The urban consumer population is deemed by many as a better representative measure of the general public because close to 90% of the country’s population lives in highly populated areas. You cannot invest directly in an index.

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

Internationally, members of Prime Minister Theresa May’s U.K./Brexit negotiating team resigned amid unproductive negotiations. In early August, the BOE’s Monetary Policy Committee increased its key interest rate to 0.75%. Central banks in Europe and Japan maintained low interest rates and accommodative monetary policies. Amid rising trade uncertainty, the PBOC cut reserve requirement ratios and accelerated infrastructure spending and tax cuts for business enterprises and individuals. Nevertheless, a strengthening U.S. dollar and the trade tensions remained headwinds for investors overseas.

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

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

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

Sincerely,

Andrew Owen

President

Wells Fargo Funds

Notice to shareholders

∎ At a meeting held on May 22-23, 2018, the Board of Trustees of the Fund approved changes to the Fund’s Class A sales charge schedule, effective August 1, 2018. In connection with this change, the net asset value (NAV) breakpoint was lowered from $500,000 to $250,000 and NAV purchases of $250,000 or more redeemed within 12 months of purchase are assessed a contingent deferred sales charge (CDSC) of 0.40%. There is no change for purchase amounts below this breakpoint. Beginning August 1, 2018, any purchases made by a shareholder with an active Letter of Intent (LOI) are subject to the terms of the new load schedule.

∎ At a meeting held on August 14-15, 2018, the Board of Trustees of the Fund approved the following policy which will be effective on or about February 5, 2019:

Class C shares will convert automatically into Class A shares ten years after the initial date of purchase or, if you acquired your Class C shares through an exchange or conversion from another share class, ten years after the date you acquired your Class C shares. When Class C shares that you acquired through a purchase or exchange convert, any other Class C shares that you purchased with reinvested dividends and distributions also will convert into Class A shares on a pro rata basis. A shorter holding period may also apply depending on your intermediary. Please see “Appendix A—Sales Charge Reductions and Waivers for Certain Intermediaries” in the Fund’s prospectus or at the end of this report.

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 Short Duration Government Bond Fund Performance highlights (unaudited)

Investment objective

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

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Maulik Bhansali, CFA^®‡

Thomas O’Connor, CFA^®

Jarad Vasquez^‡

Average annual total returns (%) as of August 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 (MSDAX)	3-11-1996		(2.55	)		0.07			1.47		(0.56	)		0.47			1.68		0.79		0.78
Class C (MSDCX)	5-31-2002		(2.30	)		(0.27	)		0.93		(1.30	)		(0.27	)		0.93		1.54		1.53
Class R6 (MSDRX)	11-30-2012		–			–			–		(0.14	)		0.89			2.13		0.41		0.37
Administrator Class (MNSGX)	12-18-1992		–			–			–		(0.37	)		0.66			1.90		0.73		0.60
Institutional Class (WSGIX)	4-8-2005		–			–			–		(0.20	)		0.86			2.08		0.46		0.42
Bloomberg Barclays U.S. 1-3 Year Government Bond Index4	–		–			–			–		(0.05	)		0.64			1.28		–		–

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

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

For Class A shares, the maximum front-end sales charge is 2.00%. For Class C shares, the maximum contingent deferred sales charge is 1.00%. Performance including a contingent deferred sales charge assumes the sales charge for the corresponding time period. Class R6, Administrator Class, and Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.

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

Please see footnotes on page 7.

Performance highlights (unaudited) Wells Fargo Short Duration Government Bond Fund 7

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

^‡  Mr. Bhansali and Mr. Vasquez became portfolio managers of the Fund on October 16, 2017.

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

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

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

⁵  The chart compares the performance of Class A shares for the most recent ten years with the performance of the Bloomberg Barclays U.S. 1–3 Year Government Bond 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 2.00%.

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

⁷  The Chicago Board Options Exchange Market Volatility Index (CBOE VIX) is a popular measure of the implied volatility of S&P 500 Index options. It represents one measure of the market’s expectation of stock market volatility over the next 30-day period. You cannot invest directly in an index.

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 Short Duration Government Bond Fund Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

∎ The Fund underperformed its benchmark, the Bloomberg Barclays U.S. 1–3 Year Government Bond Index, for the 12-month period that ended August 31, 2018.

∎ Yield-curve positioning was a slight detractor for the 12-month period, as the Fund was overweight longer-duration risk and underweight two-year risk versus the benchmark based on our bottom-up security research and selection.

∎ Security selection within agency mortgage-backed pass-through securities and asset-backed securities (ABS) were the largest contributors to performance.

∎ The Fund has out-of-benchmark allocations to high-quality ABS and commercial mortgage-backed securities (CMBS). These sector allocations also contributed to results.

Ten largest holdings (%) as of August 31, 20186
U.S. Treasury Note, 2.63%, 7-15-2021	8.09
GNMA, 5.00%, 7-20-2048	6.61
U.S. Treasury Note, 2.75%, 8-15-2021	6.45
U.S. Treasury Note, 1.63%, 10-15-2020	5.46
FNMA, 4.00%, 9-1-2033	4.77
U.S. Treasury Note, 2.63%, 7-31-2020	4.12
GNMA , 5.00%, 8-20-2048	3.80
FNMA, 3,00%, 7-1-2026	3.76
U.S. Treasury Note, 2.50%, 5-31-2020	3.05
U.S. Treasury Note, 2.38%, 4-30-2020	2.15

The economy and markets were favorable.

Early during the period, trends of low volatility and a healthy risk appetite prevailed. Credit spreads continued a one-way path tighter as the CBOE VIX⁷ declined to single-digit territory toward year-end 2017. Following the apparent shelving of health care reform legislation in the fourth quarter, markets quickly turned attention to the selection of the seemingly dovish Jerome Powell as U.S. Federal Reserve (Fed) chairman and, relatedly, the Fed’s continuing interest rate tightening campaign; the looming reversal of central bank stimulus in a number of global markets; and a policy focus toward tax reform in the U.S., with ever-shifting speculation and headlines regarding the timing, likelihood, and details of tax-reform legislation influencing risk-on appetites.

As we turned the calendar to 2018, investors saw negative returns for fixed income as bond yields rose sharply across the globe, driven by fears of emerging inflation and the upcoming reversal of central bank stimulus. In early February, risk sentiment shifted rapidly. U.S. Treasury yields marched higher for the second consecutive month, and risk assets, including equities and high-yield bonds, sold off sharply due to fears about both monetary and trade policies.

Following months of rising rates that weighed on bond prices in the first several months of the year, fixed income rebounded somewhat as U.S. Treasury yields retraced some ground. The 10-year Treasury ended the period at 2.86%, 45 basis points (bps; 100 bps equal 1.00%) higher since the start of the year, after piercing the 3.00% threshold earlier in May. The curve of the 2-year to 10-year section of the Treasury yield curve flattened to 23 bps at the end of August, a level not seen since just before the financial crisis.

As widely anticipated at its June meeting, the Fed raised its federal funds target rate by 25 bps, the third such increase since our last annual review and the second in 2018 under the leadership of Fed Chair Powell. While appeasing those with a more hawkish bent by signaling additional rate increases throughout the year, the Fed continues with a somewhat dovish tone, indicating that any moves could be data-dependent and gradual, perhaps resulting in small adjustments occurring over a more prolonged period of time, potentially extending into next year.

In Washington, President Trump directed the U.S. trade representative to level tariffs on more than $200 billion worth of Chinese imports following a seven-month investigation into Chinese trade abuses with a focus on intellectual property theft. Trade tensions worsened during the summer months, and the Trump administration stands ready to impose even more tariffs as negotiations with China continue.

In Italy, anti-European remarks by emerging Italian populist leaders sent bond and currency markets into a frenzy during May. The rhetoric sets the stage for a showdown between authorities in Rome and officials in Berlin and Brussels over the issue of deficit spending and will likely challenge the fiscal framework of the European Union.

Please see footnotes on page 7.

Performance highlights (unaudited) Wells Fargo Short Duration Government Bond Fund 9

Emerging markets—both debt and equity—continued their slide during the summer months while U.S. stock indices moved higher. Amid political and trade turmoil, investors fled developing nations and moved to the security of the U.S. dollar and its capital markets. During August, the Turkish financial system fell under pressure as the country moved to the brink of a debt crisis that presented risks of contagion.

Portfolio allocation as of August 31, 2018⁸

Portfolio positioning continues to be driven by our bottom-up research and selection.

We ended the period with approximately 8% of the portfolio in agency collateralized mortgage obligations, 18% in high-quality ABS and CMBS, 37% in agency mortgage-backed pass-through securities, 3% in mortgage hybrid adjustable-rate mortgages, 1% in nonagency mortgage-backed securities (MBS), and the remainder in U.S. Treasury and agency debt. We remained overweight the MBS, ABS, and CMBS sectors and underweight the agency and Treasury sectors. Driven by bottom-up security selection opportunities, we maintained an overweight to longer-duration risk and an underweight to two-year risk versus the benchmark. Our nongovernment exposure remained flat during the year.

Our outlook is positive.

Strength in the U.S. and global economies extended in August, continuing to provide some of the best performance in the post-financial-crisis environment. U.S. manufacturing and services activity appeared to increase in August to recent cyclical highs. Job growth has remained steady, with the unemployment rate dipping below 4.0%, the lowest level in decades. Consumption continues to hold up well, bolstered by wage gains, employment strength, and the benefits of tax reform. Among international markets, European indicators remain good, having rebounded from a slowdown during the spring.

A possible risk to watch going forward is a nascent slowdown in U.S. housing. Meanwhile, in emerging markets, sustained capital outflow pressures and mismatches between rising oil import costs relative to export costs are starting to affect fundamentals.

Recent commentary from Fed officials points to a likely increase in the federal funds rate by 25 bps at the upcoming September meeting and an additional increase in December. While stabilization of economic data has reduced volatility and supported valuations, a large calendar of policy and political events looms on the near-term horizon that could provide event risk to financial markets.

We believe fixed-income markets may likely provide healthy opportunities as we move through the balance of 2018 and into 2019, particularly if heightened volatility endures. We strive to add value through our bottom-up security selection process, providing active portfolio rotation among sectors and maturities with a focus on relative value while maintaining a disciplined risk management framework.

Consistent with our bottom-up process, we maintain a neutral duration, remain nimble and agile, and stand ready to take advantage of security selection opportunities as they arise.

Please see footnotes on page 7.

10 Wells Fargo Short Duration Government Bond Fund Fund expenses (unaudited)

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

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from March 1, 2018 to August 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 3-1-2018		Ending account value 8-31-2018		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,002.50	$	3.94		0.78	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.27	$	3.97		0.78	%
Class C
Actual	$	1,000.00	$	998.73	$	7.71		1.53	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.49	$	7.78		1.53	%
Class R6
Actual	$	1,000.00	$	1,004.60	$	1.87		0.37	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.34	$	1.89		0.37	%
Administrator Class
Actual	$	1,000.00	$	1,003.42	$	3.03		0.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.18	$	3.06		0.60	%
Institutional Class
Actual	$	1,000.00	$	1,004.33	$	2.12		0.42	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.09	$	2.14		0.42	%

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

Portfolio of investments—August 31, 2018 Wells Fargo Short Duration Government Bond Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities: 47.35%
FHLMC (12 Month LIBOR +1.84%) ±		3.41	%		5-1-2042	$	2,499,356	$	2,526,708
FHLMC		4.00			9-1-2030		254,811		262,326
FHLMC		4.00			3-1-2031		889,411		917,593
FHLMC		4.00			6-1-2031		1,739,339		1,784,421
FHLMC		4.00			3-1-2032		1,700,579		1,754,505
FHLMC		4.00			4-1-2032		739,662		757,777
FHLMC		4.00			10-1-2033		758,412		783,695
FHLMC		4.00			1-1-2034		3,866,847		3,995,264
FHLMC		4.00			1-1-2034		716,399		740,284
FHLMC		4.00			8-1-2035		485,238		501,400
FHLMC		4.50			10-1-2018		27,517		27,773
FHLMC		4.50			4-1-2031		1,715,883		1,788,875
FHLMC Multifamily Structured Pass-Through Certificates Series K017 Class A1		1.89			12-25-2020		1,038,717		1,031,815
FHLMC Multifamily Structured Pass-Through Certificates Series KI02 Class A (1 Month LIBOR +0.20%) ±		2.28			2-25-2023		3,160,000		3,159,995
FHLMC Series 3632 Class PK		5.00			2-15-2040		4,795,330		5,080,350
FHLMC Series 3653 Class AU		4.00			4-15-2040		1,562,176		1,603,109
FNMA (12 Month LIBOR +1.60%) ±		2.95			8-1-2047		4,624,679		4,615,794
FNMA (12 Month LIBOR +1.62%) ±		3.75			8-1-2048		3,618,000		3,694,991
FNMA		4.50			7-1-2048		9,171,583		9,524,150
FNMA ¤		0.00			10-9-2019		12,410,000		12,058,995
FNMA		2.00			3-25-2028		2,388,199		2,303,205
FNMA (12 Month LIBOR +1.61%) ±		2.77			3-1-2047		7,884,125		7,842,027
FNMA (12 Month LIBOR +1.56%) ±		2.94			12-1-2045		3,401,117		3,392,798
FNMA		3.00			7-1-2026		24,293,367		24,331,999
FNMA		4.00			12-1-2029		1,091,905		1,123,136
FNMA		4.00			9-1-2030		336,613		347,051
FNMA		4.00			10-1-2030		655,384		672,182
FNMA		4.00			4-1-2031		676,988		694,320
FNMA		4.00			1-1-2032		3,451,449		3,565,464
FNMA		4.00			2-1-2032		3,765,968		3,890,325
FNMA		4.00			3-1-2032		1,764,022		1,818,825
FNMA		4.00			4-1-2032		772,339		796,449
FNMA		4.00			6-1-2032		2,732,142		2,812,421
FNMA		4.00			6-1-2032		4,070,503		4,186,867
FNMA		4.00			10-1-2032		927,427		956,275
FNMA		4.00			8-1-2033		2,490,000		2,554,904
FNMA		4.00			9-1-2033		30,043,000		30,826,247
FNMA		4.00			10-1-2033		1,105,214		1,139,077
FNMA		4.00			2-1-2034		6,348,642		6,556,783
FNMA		4.00			7-1-2034		1,478,768		1,523,557
FNMA		4.50			4-1-2024		2,439,103		2,524,085
FNMA		4.50			6-1-2025		950,348		983,774
FNMA		4.50			10-1-2026		2,835,836		2,934,968
FNMA		4.50			10-1-2026		3,083,715		3,198,868
FNMA		4.50			3-1-2027		4,451,915		4,607,291
FNMA		4.50			9-1-2037		693,785		734,097
FNMA %%		4.50			9-13-2048		2,200,000		2,284,015
FNMA		5.00			2-1-2023		616,991		632,138
FNMA		5.00			5-1-2023		251,052		259,979

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

12 Wells Fargo Short Duration Government Bond Fund Portfolio of investments—August 31, 2018

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA		5.00	%		10-1-2040	$	1,435,975	$	1,520,855
FNMA		5.00			5-1-2046		541,103		573,210
FNMA Series 2009-20 Class DT		4.50			4-25-2039		2,182,958		2,293,994
FNMA Series 2013-103 Class H		4.50			3-25-2038		2,827,645		2,909,903
FNMA Series 2013-90 Class A		4.00			11-25-2038		4,106,865		4,158,885
FNMA Series 2015-57 Class AB		3.00			8-25-2045		3,538,448		3,485,748
FNMA Series 2015-M10 Class FA (1 Month LIBOR +0.25%) ±		2.33			3-25-2019		638,317		637,425
FNMA Series 2015-M4 Class FA (1 Month LIBOR +0.21%) ±		2.29			9-25-2018		153,802		153,575
FNMA Series 2015-M8 Class FA (1 Month LIBOR +0.17%) ±		2.25			11-25-2018		607,813		607,617
GNMA		5.00			7-20-2048		40,597,597		42,737,226
GNMA		5.00			8-20-2048		23,354,101		24,552,556
GNMA %%		5.00			9-20-2048		8,825,768		9,283,625
GNMA		4.50			7-20-2048		9,670,690		10,057,585
GNMA		5.00			10-15-2039		1,395,639		1,496,577
GNMA		5.00			6-20-2048		11,680,656		12,298,059
GNMA %%		5.00			10-18-2048		1,200,000		1,258,178
GNMA 2012-124 Class PT		6.00			10-20-2042		2,556,637		2,785,512
GNMA 2012-141 Class WD ±±		4.98			7-20-2040		2,725,439		2,896,762
GNMA Series 2011-137 Class WA ±±		5.56			7-20-2040		3,073,544		3,352,013
GNMA Series 2016-112 Class AW ±±		7.14			12-20-2040		2,598,567		2,952,712
Total Agency Securities (Cost $309,254,583)									306,114,964
Asset-Backed Securities: 14.78%
Ally Master Owner Trust Series 2018-4 Class A		3.30			7-17-2023		3,754,000		3,768,414
Ford Credit Auto Lease Trust Series 2018-A Class A4		3.05			8-15-2021		4,116,000		4,110,449
Ford Credit Auto Owner Trust Series 2017-1 Class A 144A		2.62			8-15-2028		6,085,000		5,951,659
Hertz Fleet Lease Funding LP Series 2018-1 Class A2 144A		3.23			5-10-2032		4,640,000		4,649,601
Hertz Vehicle Financing LLC Series 2015-3A Class A 144A		2.67			9-25-2021		10,196,000		10,037,911
Hertz Vehicle Financing LLC Series 2016-4A Class A 144A		2.65			7-25-2022		3,779,000		3,680,328
Navient Student Loan Trust Series 2014-CTA Class A (1 Month LIBOR +0.70%) 144A±		2.76			9-16-2024		3,296,328		3,300,101
Navient Student Loan Trust Series 2017-4A Class A2 (1 Month LIBOR +0.50%) 144A±		2.56			9-27-2066		4,030,000		4,043,294
Nelnet Student Loan Trust Series 2004-4 Class A5 (3 Month LIBOR +0.16%) ±		2.50			1-25-2037		2,966,926		2,941,452
Nelnet Student Loan Trust Series 2006-1 Class A5 (3 Month LIBOR +0.11%) ±		2.42			8-23-2027		1,115,699		1,114,723
Nelnet Student Loan Trust Series 2016-1A Class A (1 Month LIBOR +0.80%) 144A±		2.86			9-25-2065		6,429,050		6,502,381
Nelnet Student Loan Trust Series 2018-3A Class A2 (1 Month LIBOR +0.44%) 144A±		2.52			9-27-2066		6,616,000		6,615,993
SLC Student Loan Trust Series 2010-1 Class A (3 Month LIBOR +0.88%) ±		3.19			11-25-2042		1,492,683		1,510,549
SLM Student Loan Trust Series 2004-10 Class A7A (3 Month LIBOR +0.60%) 144A±		2.94			10-25-2029		3,874,000		3,899,628
SLM Student Loan Trust Series 2004-10 Class A7B (3 Month LIBOR +0.60%) 144A±		2.94			10-25-2029		6,174,000		6,198,968
SLM Student Loan Trust Series 2005-6 Class A6 (3 Month LIBOR +0.14%) ±		2.48			10-27-2031		3,517,503		3,494,530
SLM Student Loan Trust Series 2010-A Class 1A (PRIME -0.05%) 144A±		4.95			5-16-2044		736,076		745,977
SLM Student Loan Trust Series 2012-3 Class A (1 Month LIBOR +0.65%) ±		2.71			12-27-2038		6,492,938		6,517,885
SLM Student Loan Trust Series 2014-A Class A2A 144A		2.59			1-15-2026		1,140,622		1,138,478
SLM Student Loan Trust Series 2014-A Class A2B (1 Month LIBOR +1.15%) 144A±		3.21			1-15-2026		1,663,580		1,670,144
SMB Private Education Loan Trust Series 2015-A Class A2A 144A		2.49			6-15-2027		3,655,542		3,611,170
SMB Private Education Loan Trust Series 2015-C Class A2A 144A		2.75			7-15-2027		3,826,850		3,796,027
SMB Private Education Loan Trust Series 2016-B Class A2B (1 Month LIBOR +1.45%) 144A±		3.51			2-17-2032		2,645,101		2,694,345
Volkswagen Auto Loan Enhanced Trust Series 2018-1 Class A4		3.15			7-22-2024		3,546,000		3,548,890
Total Asset-Backed Securities (Cost $95,626,963)									95,542,897

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

Portfolio of investments—August 31, 2018 Wells Fargo Short Duration Government Bond Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Non-Agency Mortgage-Backed Securities: 3.91%
DBUBS Mortgage Trust Series 2011-LC2A Class A1 144A		3.53	%		7-10-2044	$	337,128	$	339,231
GS Mortgage Securities Trust Series 2010-C1 Class A1 144A		3.68			8-10-2043		751,629		754,580
GS Mortgage Securities Trust Series 2010-C2 Class A1 144A		3.85			12-10-2043		554,066		559,338
GS Mortgage Securities Trust Series 2012-GCJ7 Class AAB		2.94			5-10-2045		1,868,044		1,866,473
JPMorgan Chase Commercial Mortgage Securities Trust Series 2010-C1 Class A2 144A		4.61			6-15-2043		1,382,278		1,405,308
JPMorgan Chase Commercial Mortgage Securities Trust Series 2012-CBX Class A3		3.14			6-15-2045		785,112		785,076
JPMorgan Mortgage Trust Series 2017-5 Class A1 144A±±		3.17			10-26-2048		3,320,154		3,285,623
Morgan Stanley Capital I Trust Series 2011-C2 Class A3 144A		4.21			6-15-2044		325,424		329,247
SoFi Professional Loan Program LLC Series 2016-C Class A1 (1 Month LIBOR +1.10%) 144A±		3.16			10-27-2036		1,812,014		1,833,124
SoFi Professional Loan Program LLC Series 2016-D Class A1 (1 Month LIBOR +0.95%) 144A±		3.01			1-25-2039		4,088,289		4,111,353
SoFi Professional Loan Program LLC Series 2016-E Class A1 (1 Month LIBOR +0.85%) 144A±		2.91			7-25-2039		1,819,494		1,827,968
SoFi Professional Loan Program LLC Series 2017-A Class A1 (1 Month LIBOR +0.70%) 144A±		2.76			3-26-2040		2,315,534		2,322,356
SoFi Professional Loan Program LLC Series 2017-C Class A1 (1 Month LIBOR +0.60%) 144A±		2.66			7-25-2040		2,142,308		2,146,371
Verus Securitization Trust Series 2018-2 Class A1 144A±±		3.68			6-1-2058		3,743,895		3,743,218
Total Non-Agency Mortgage-Backed Securities (Cost $25,646,786)									25,309,266
U.S. Treasury Securities: 34.90%
U.S. Treasury Note		1.13			1-31-2019		4,689,000		4,667,387
U.S. Treasury Note		1.38			2-15-2020		3,289,000		3,232,984
U.S. Treasury Note		1.38			9-30-2020		840,000		818,573
U.S. Treasury Note		1.50			8-15-2020		2,533,000		2,478,778
U.S. Treasury Note		1.63			3-15-2020		3,592,000		3,540,225
U.S. Treasury Note		1.63			10-15-2020		36,028,000		35,269,442
U.S. Treasury Note		1.75			11-15-2020		8,740,000		8,569,980
U.S. Treasury Note		2.38			4-30-2020		13,979,000		13,925,487
U.S. Treasury Note		2.38			4-15-2021		6,612,000		6,560,085
U.S. Treasury Note		2.50			5-31-2020		19,741,000		19,699,359
U.S. Treasury Note		2.63			7-31-2020		26,670,000		26,663,749
U.S. Treasury Note		2.63			8-31-2020		4,167,000		4,166,186
U.S. Treasury Note		2.63			5-15-2021		2,000,000		1,996,406
U.S. Treasury Note		2.63			7-15-2021		52,387,000		52,280,589
U.S. Treasury Note		2.75			8-15-2021		41,676,000		41,731,351
Total U.S. Treasury Securities (Cost $226,224,337)									225,600,581
	Yield					Shares
Short-Term Investments: 1.78%
Investment Companies: 1.78%
Wells Fargo Government Money Market Fund Select Class (l)(u)##		1.87					11,514,693		11,514,693
Total Short-Term Investments (Cost $11,514,693)									11,514,693

Total investments in securities (Cost $668,267,362)	102.72	%		664,082,401
Other assets and liabilities, net	(2.72	)		(17,611,008	)
Total net assets	100.00	%	$	646,471,393

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

14 Wells Fargo Short Duration Government Bond Fund Portfolio of investments—August 31, 2018

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

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

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

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

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

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

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

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

Abbreviations:

FHLMC Federal Home Loan Mortgage Corporation

FNMA Federal National Mortgage Association

GNMA Government National Mortgage Association

LIBOR London Interbank Offered Rate

Futures Contracts

Description	Number of contracts		Expiration date		Notional cost			Notional value			Unrealized gains		Unrealized losses
Long
2-Year U.S. Treasury Notes		456		12-31-2018	$	96,295,241		$	96,379,875		$	84,634	$	0
Short
10-Year Ultra Futures		(128)		12-19-2018		(16,339,744	)		(16,390,000	)		0		(50,256	)
5-Year U.S. Treasury Notes		(415)		12-31-2018		(46,968,782	)		(47,060,352	)		0		(91,570	)
											$	84,634	$	(141,826	)

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		12,155,202		915,923,326		916,563,835		11,514,693	$	0	$	0	$	263,556	$	11,514,693		1.78	%

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

Statement of assets and liabilities—August 31, 2018 Wells Fargo Short Duration Government Bond Fund 15

Assets
Investments in unaffiliated securities, at value (cost $656,752,669)	$	652,567,708
Investments in affiliated securities, at value (cost $11,514,693)		11,514,693
Segregated cash for future contracts		525,000
Receivable for investments sold		71,151,442
Principal paydown receivable		132,093
Receivable for Fund shares sold		121,652
Receivable for interest		2,103,183
Receivable for daily variation margin on open futures contracts		42,750
Prepaid expenses and other assets		108,231
Total assets		738,266,752
Liabilities
Payable for investments purchased		86,468,874
Payable for Fund shares redeemed		5,003,288
Management fee payable		162,113
Payable for daily variation margin on open futures contracts		52,149
Administration fees payable		51,559
Due to custodian		23,813
Distribution fee payable		10,817
Trustees’ fees and expenses payable		2,015
Accrued expenses and other liabilities		20,731
Total liabilities		91,795,359
Total net assets	$	646,471,393
NET ASSETS CONSIST OF
Paid-in capital	$	727,120,731
Undistributed net investment income		480,677
Accumulated net realized losses on investments		(76,887,862	)
Net unrealized losses on investments		(4,242,153	)
Total net assets	$	646,471,393
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	30,538,242
Shares outstanding – Class A1		3,180,338
Net asset value per share – Class A		$9.60
Maximum offering price per share – Class A2		$9.80
Net assets – Class C	$	15,092,587
Shares outstanding – Class C1		1,569,052
Net asset value per share – Class C		$9.62
Net assets – Class R6	$	35,472,012
Shares outstanding – Class R61		3,680,428
Net asset value per share – Class R6		$9.64
Net assets – Administrator Class	$	71,996,846
Shares outstanding – Administrator Class1		7,483,843
Net asset value per share – Administrator Class		$9.62
Net assets – Institutional Class	$	493,371,706
Shares outstanding – Institutional Class1		51,297,247
Net asset value per share – Institutional Class		$9.62

¹  The Fund has an unlimited number of authorized shares.

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

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

16 Wells Fargo Short Duration Government Bond Fund Statement of operations—year ended August 31, 2018

Investment income
Interest	$	15,467,728
Income from affiliated securities		263,556
Total investment income		15,731,284
Expenses
Management fee		2,572,833
Administration fees
Class A		59,904
Class C		28,309
Class R6		18,424
Administrator Class		79,962
Institutional Class		430,869
Shareholder servicing fees
Class A		93,600
Class C		44,233
Administrator Class		199,684
Distribution fee
Class C		132,699
Custody and accounting fees		68,525
Professional fees		51,102
Registration fees		74,913
Shareholder report expenses		51,305
Trustees’ fees and expenses		23,070
Other fees and expenses		15,168
Total expenses		3,944,600
Less: Fee waivers and/or expense reimbursements		(412,798	)
Net expenses		3,531,802
Net investment income		12,199,482
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		(11,603,544	)
Futures contracts		289,255
Net realized losses on investments		(11,314,289	)
Net change in unrealized gains (losses) on:
Unaffiliated securities		(3,350,775	)
Futures contracts		9,987
Net change in unrealized gains (losses) on investments		(3,340,788	)
Net realized and unrealized gains (losses) on investments		(14,655,077	)
Net decrease in net assets resulting from operations	$	(2,455,595	)

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

Statement of changes in net assets Wells Fargo Short Duration Government Bond Fund 17

	Year ended August 31, 2018						Year ended August 31, 2017
Operations
Net investment income				$	12,199,482					$	11,107,728
Net realized losses on investments					(11,314,289	)					(5,488,498	)
Net change in unrealized gains (losses) on investments					(3,340,788	)					1,993,374
Net increase (decrease) in net assets resulting from operations					(2,455,595	)					7,612,604
Distributions to shareholders from
Net investment income
Class A					(735,153	)					(887,555	)
Class B					N/A						(73	)1
Class C					(217,568	)					(194,088	)
Class R6					(1,398,687	)					(4,107,221	)
Administrator Class					(1,726,039	)					(1,874,754	)
Institutional Class					(12,631,240	)					(11,823,677	)
Total distributions to shareholders					(16,708,687	)					(18,887,368	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		376,228			3,627,108			2,522,578			25,119,924
Class C		22,308			218,154			152,650			1,513,522
Class R6		2,144,288			20,939,039			2,382,978			23,634,167
Administrator Class		395,318			3,847,681			884,562			8,769,727
Institutional Class		13,527,957			131,987,736			21,525,925			213,452,302
					160,619,718						272,489,642
Reinvestment of distributions
Class A		71,432			692,759			82,087			811,706
Class B		N/A			N/A			7	1		68	1
Class C		20,781			201,738			17,877			177,097
Class R6		126,725			1,239,028			414,035			4,107,221
Administrator Class		178,230			1,730,952			185,942			1,841,783
Institutional Class		1,256,662			12,199,437			1,135,203			11,238,682
					16,063,914						18,176,557
Payment for shares redeemed
Class A		(2,532,682	)		(24,674,032	)		(3,159,388	)		(31,338,166	)
Class B		N/A			N/A			(4,044	)1		(40,138	)1
Class C		(502,772	)		(4,888,594	)		(893,469	)		(8,848,973	)
Class R6		(15,996,524	)		(157,173,416	)		(8,804,898	)		(87,286,298	)
Administrator Class		(2,179,946	)		(21,230,405	)		(4,164,783	)		(41,236,752	)
Institutional Class		(22,222,211	)		(216,535,537	)		(30,492,116	)		(302,273,975	)
					(424,501,984	)					(471,024,302	)
Net decrease in net assets resulting from capital share transactions					(247,818,352	)					(180,358,103	)
Total decrease in net assets					(266,982,634	)					(191,632,867	)
Net assets
Beginning of period					913,454,027						1,105,086,894
End of period				$	646,471,393					$	913,454,027
Undistributed net investment income				$	480,677					$	623,073

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

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

18 Wells Fargo Short Duration Government Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended August 31
CLASS A	2018			2017			2016			2015			2014
Net asset value, beginning of period		$9.85			$9.96			$10.02			$10.08			$10.09
Net investment income		0.14			0.07			0.07			0.04			0.03
Net realized and unrealized gains (losses) on investments		(0.20	)		(0.03	)		0.02			0.02			0.07
Total from investment operations		(0.06	)		0.04			0.09			0.06			0.10
Distributions to shareholders from
Net investment income		(0.19	)		(0.15	)		(0.15	)		(0.12	)		(0.11	)
Net asset value, end of period		$9.60			$9.85			$9.96			$10.02			$10.08
Total return1		(0.56	)%		0.45	%		0.90	%		0.55	%		1.03	%
Ratios to average net assets (annualized)
Gross expenses		0.80	%		0.79	%		0.78	%		0.78	%		0.80	%
Net expenses		0.78	%		0.78	%		0.78	%		0.78	%		0.78	%
Net investment income		1.36	%		0.79	%		0.70	%		0.55	%		0.38	%
Supplemental data
Portfolio turnover rate		331	%		348	%		284	%		500	%		408	%
Net assets, end of period (000s omitted)		$30,538			$51,890			$57,976			$62,504			$107,005

¹  Total return calculations do not include any sales charges.

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

Financial highlights Wells Fargo Short Duration Government Bond Fund 19

(For a share outstanding throughout each period)

	Year ended August 31
CLASS C	2018			2017			2016			2015			2014
Net asset value, beginning of period		$9.87			$9.98			$10.03			$10.10			$10.11
Net investment income (loss)		0.06	1		0.00	1,2		(0.01	)		(0.03	)		(0.05	)
Net realized and unrealized gains (losses) on investments		(0.19	)		(0.03	)		0.03			0.00	2		0.08
Total from investment operations		(0.13	)		(0.03	)		0.02			(0.03	)		0.03
Distributions to shareholders from
Net investment income		(0.12	)		(0.08	)		(0.07	)		(0.04	)		(0.04	)
Net asset value, end of period		$9.62			$9.87			$9.98			$10.03			$10.10
Total return3		(1.30	)%		(0.30	)%		0.25	%		(0.30	)%		0.28	%
Ratios to average net assets (annualized)
Gross expenses		1.55	%		1.54	%		1.53	%		1.53	%		1.55	%
Net expenses		1.53	%		1.53	%		1.53	%		1.53	%		1.53	%
Net investment income (loss)		0.62	%		0.04	%		(0.05	)%		(0.20	)%		(0.37	)%
Supplemental data
Portfolio turnover rate		331	%		348	%		284	%		500	%		408	%
Net assets, end of period (000s omitted)		$15,093			$20,026			$27,454			$31,910			$44,423

¹  Calculated based upon average shares outstanding

²  Amount is less than $0.005.

³  Total return calculations do not include any sales charges.

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

20 Wells Fargo Short Duration Government Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended August 31
CLASS R6	2018			2017			2016			2015			2014
Net asset value, beginning of period		$9.89			$9.99			$10.05			$10.11			$10.13
Net investment income		0.16	1		0.12	1		0.12			0.09	1		0.08	1
Net realized and unrealized gains (losses) on investments		(0.17	)		(0.02	)		0.01			0.01			0.05
Total from investment operations		(0.01	)		0.10			0.13			0.10			0.13
Distributions to shareholders from
Net investment income		(0.24	)		(0.20	)		(0.19	)		(0.16	)		(0.15	)
Net asset value, end of period		$9.64			$9.89			$9.99			$10.05			$10.11
Total return		(0.14	)%		0.96	%		1.32	%		0.96	%		1.35	%
Ratios to average net assets (annualized)
Gross expenses		0.42	%		0.41	%		0.40	%		0.40	%		0.41	%
Net expenses		0.37	%		0.37	%		0.37	%		0.37	%		0.37	%
Net investment income		1.64	%		1.19	%		1.11	%		0.88	%		0.76	%
Supplemental data
Portfolio turnover rate		331	%		348	%		284	%		500	%		408	%
Net assets, end of period (000s omitted)		$35,472			$172,106			$233,993			$231,878			$48,446

¹  Calculated based upon average shares outstanding

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

Financial highlights Wells Fargo Short Duration Government Bond Fund 21

(For a share outstanding throughout each period)

	Year ended August 31
ADMINISTRATOR CLASS	2018			2017			2016			2015			2014
Net asset value, beginning of period		$9.87			$9.98			$10.03			$10.10			$10.11
Net investment income		0.15	1		0.08			0.08			0.06			0.06	1
Net realized and unrealized gains (losses) on investments		(0.19	)		(0.02	)		0.04			0.00	2		0.06
Total from investment operations		(0.04	)		0.06			0.12			0.06			0.12
Distributions to shareholders from
Net investment income		(0.21	)		(0.17	)		(0.17	)		(0.13	)		(0.13	)
Net asset value, end of period		$9.62			$9.87			$9.98			$10.03			$10.10
Total return		(0.37	)%		0.63	%		1.18	%		0.63	%		1.21	%
Ratios to average net assets (annualized)
Gross expenses		0.74	%		0.73	%		0.72	%		0.72	%		0.74	%
Net expenses		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Net investment income		1.56	%		0.96	%		0.87	%		0.73	%		0.56	%
Supplemental data
Portfolio turnover rate		331	%		348	%		284	%		500	%		408	%
Net assets, end of period (000s omitted)		$71,997			$89,743			$121,576			$156,669			$191,469

¹  Calculated based upon average shares outstanding

²  Amount is less than $0.005.

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

22 Wells Fargo Short Duration Government Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended August 31
INSTITUTIONAL CLASS	2018			2017			2016			2015			2014
Net asset value, beginning of period		$9.87			$9.98			$10.03			$10.10			$10.10
Net investment income		0.17			0.11			0.11			0.09	1		0.07
Net realized and unrealized gains (losses) on investments		(0.19	)		(0.03	)		0.03			(0.01	)		0.08
Total from investment operations		(0.02	)		0.08			0.14			0.08			0.15
Distributions to shareholders from
Net investment income		(0.23	)		(0.19	)		(0.19	)		(0.15	)		(0.15	)
Net asset value, end of period		$9.62			$9.87			$9.98			$10.03			$10.10
Total return		(0.20	)%		0.81	%		1.37	%		0.81	%		1.50	%
Ratios to average net assets (annualized)
Gross expenses		0.47	%		0.46	%		0.45	%		0.45	%		0.47	%
Net expenses		0.42	%		0.42	%		0.42	%		0.42	%		0.42	%
Net investment income		1.75	%		1.15	%		1.06	%		0.92	%		0.74	%
Supplemental data
Portfolio turnover rate		331	%		348	%		284	%		500	%		408	%
Net assets, end of period (000s omitted)		$493,372			$579,690			$664,047			$587,835			$903,096

¹  Calculated based upon average shares outstanding

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

Notes to financial statements Wells Fargo Short Duration Government Bond 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 (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Wells Fargo Short Duration Government Bond Fund (the “Fund”) which is a diversified series of the Trust.

Effective at the close of business on December 5, 2016, Class B shares were converted to Class A shares and are no longer offered by the Fund. Information for Class B shares reflected in the financial statements represents activity through December 5, 2016.

2. SIGNIFICANT ACCOUNTING POLICIES

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

Securities valuation

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

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

Futures contracts that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price.

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

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

When-issued transactions

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

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

Futures contracts

The Fund is subject to interest rate risk in the normal course of pursuing its investment objectives. Futures contracts are agreements between the Fund and a counterparty to buy or sell a specific amount of a commodity, financial instrument or currency at specified price and on a specified date. The Fund may buy and sell futures contracts in order to gain exposure to, or protect against, changes in interest rates. The primary risks associated with the use of futures contracts are the imperfect correlation between changes in market values of securities held by the Fund and the prices of futures contracts, and the possibility of an illiquid market. Futures contracts are generally entered into on a regulated futures exchange and cleared through a clearinghouse associated with the exchange. With futures contracts, there is minimal counterparty risk to the Fund since futures contracts are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures contracts against default.

Upon entering into a futures contracts, the Fund is required to deposit either cash or securities (initial margin) with the broker in an amount equal to a certain percentage of the contract value. Subsequent payments (variation margin) are paid to or from the broker each day equal to the daily changes in the contract value. Such payments are recorded as unrealized gains or losses and, if any, shown as variation margin receivable (payable) in the Statement of Assets and Liabilities. Should the Fund fail to make requested variation margin payments, the broker can gain access to the initial margin to satisfy the Fund’s payment obligations. When the contracts are closed, a realized gain or loss is recorded in 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.

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 are declared daily and paid monthly. Distributions from net realized gains, if any, 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 August 31, 2018, the aggregate cost of all investments for federal income tax purposes was $668,393,790 and the unrealized gains (losses) consisted of:

Gross unrealized gains	$	549,841
Gross unrealized losses		(4,918,422	)
Net unrealized losses	$	(4,368,581	)

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

Notes to financial statements Wells Fargo Short Duration Government Bond Fund 25

per share. The primary permanent difference causing such reclassifications is due to paydown losses. At August 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
$4,366,809	$(4,366,809)

As of August 31, 2018, the Fund had capital loss carryforwards which consist of $44,623,890 in short-term capital losses and $32,137,541 in long-term capital losses.

Class allocations

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

3. FAIR VALUATION MEASUREMENTS

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

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

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

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

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

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

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Agency securities	$	0	$	306,114,964	$	0	$	306,114,964
Asset-backed securities		0		95,542,897		0		95,542,897
Non-agency mortgage-backed securities		0		25,309,266		0		25,309,266
U.S. Treasury securities		225,600,581		0		0		225,600,581
Short-term investments
Investment companies		11,514,693		0		0		11,514,693	��
		237,115,274		426,967,127		0		664,082,401
Futures contracts		84,634		0		0		84,634
Total assets	$	237,199,908	$	426,967,127	$	0	$	664,167,035
Liabilities
Futures contracts	$	141,826	$	0	$	0	$	141,826
Total liabilities	$	141,826	$	0	$	0	$	141,826

26 Wells Fargo Short Duration Government Bond Fund Notes to financial statements

Futures contracts are reported at their cumulative unrealized gains (losses) at measurement date as reported in the table following the Portfolio of Investments. For futures contracts the current day’s variation margin is reported on the Statement of Assets and Liabilities. 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 August 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 & 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 and providing fund-level administrative services in connection with the Fund’s operations. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.35% and declining to 0.255% as the average daily net assets of the Fund increase. For the year ended August 31, 2018, the management fee was equivalent to an annual rate of 0.35% of the Fund’s average daily net assets.

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

Administration fees

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

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

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. When each class of the Fund has exceeded its expense cap, Funds Management has waived fees and/or reimbursed expenses from fund level expenses on a proportionate basis and then from class specific expenses; otherwise, waivers and/or reimbursements are applied against class specific expenses before fund level expenses. Funds Management has committed through December 31, 2018 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.78% for Class A shares, 1.53% for Class C shares, 0.37% for Class R6 shares, 0.60% for Administrator Class shares, and 0.42% for Institutional Class shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

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 August 31, 2018, Funds Distributor received $163 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 August 31, 2018.

Notes to financial statements Wells Fargo Short Duration Government Bond Fund 27

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.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding short-term securities, for the year ended August 31, 2018 were as follows:

Purchases at cost		Sales proceeds
U.S. government	Non-U.S. government	U.S. government	Non-U.S. government
$2,314,230,338	$116,629,318	$2,412,669,631	$128,896,918

6. DERIVATIVE TRANSACTIONS

During the year ended August 31, 2018, the Fund entered into futures contracts to speculate on interest rates and to help manage the duration of the portfolio. The Fund had an average notional amount of $152,304,811 in long futures contracts and $75,335,049 in short futures contracts during the year ended August 31, 2018.

7. BANK BORROWINGS

The Trust (excluding the money market funds), Wells Fargo Master Trust 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.

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

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid was $16,708,687 and $18,887,368 of ordinary income for the years ended August 31, 2018 and August 31, 2017, respectively.

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

Undistributed ordinary income	Unrealized losses	Capital loss carryforward
$480,674	$(4,368,581)	$(76,761,431)

9. INDEMNIFICATION

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

28 Wells Fargo Short Duration Government Bond Fund Notes to financial statements

10. NEW ACCOUNTING PRONOUNCEMENTS AND REGULATORY CHANGES

On August 17, 2018, the Securities and Exchange Commission (“SEC”) adopted Disclosure Update and Simplification, which amends certain disclosure requirements. The amendments are effective for filings subsequent to November 5, 2018. Management expects these amendments will impact the classification of disclosures in the financial statements.

In August 2018, FASB issued Accounting Standards Update (“ASU”) No. 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 updates the disclosure requirements for fair value measurements by modifying or removing certain disclosures and adding certain new disclosures. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. Management is currently evaluating the potential impact of this new guidance to the financial statements.

In March 2017, FASB issued ASU No. 2017-08, Premium Amortization on Purchased Callable Debt Securities. ASU 2017-08 shortens the amortization period for certain callable debt securities held at a premium. The amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 is effective for fiscal years beginning after December 15, 2018 and for interim periods within those fiscal years . Management is currently evaluating the potential impact of this new guidance to the financial statements.

Report of independent registered public accounting firm Wells Fargo Short Duration Government Bond 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 Wells Fargo Short Duration Government Bond Fund (the “Fund”), including the portfolio of investments, as of August 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 August 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 August 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

October 26, 2018

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

TAX INFORMATION

For the fiscal year ended August 31, 2018. $16,759,542 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 August 31, 2018, 21.82% of the ordinary income distributed was derived from interest on U.S. government securities.

PROXY VOTING INFORMATION

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

PORTFOLIO HOLDINGS INFORMATION

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

Other information (unaudited) Wells Fargo Short Duration Government Bond 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 154 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 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.	N/A
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 The Ruth Bancroft Garden (non-profit organization). She is also an inactive Chartered Financial Analyst.	N/A
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 (private school). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	CIGNA Corporation
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, since 2009	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.	N/A
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.	N/A

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

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
Olivia S. Mitchell (Born 1953)	Trustee, since 2006; 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.	N/A
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.	N/A
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.	N/A
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.	N/A
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, on the Board of Directors, Governance Committee and Finance Committee for the Minnesota Philanthropy Partners (Saint Paul Foundation) from 2012 to 2018, 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 the Board Chair of the Minnesota Wild Foundation since 2010.	N/A

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

Other information (unaudited) Wells Fargo Short Duration Government Bond 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 Kymn3 (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.
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 77 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.

³  Alexander Kymn became the Secretary and Chief Legal Officer effective April 17, 2018.

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

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Wells Fargo Short Duration Government Bond Fund

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at an in-person meeting held on May 22-23, 2018 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for Wells Fargo Short Duration Government Bond Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Wells Capital Management Incorporated (the “Sub-Adviser”), an affiliate of Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”

At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at an in-person meeting in April 2018, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing investment performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.

In providing information to the Board, Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2018. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and investment performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.

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

Nature, extent and quality of services

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

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

Fund investment performance and expenses

The Board considered the investment performance results for the Fund over various time periods ended December 31, 2017. The Board considered these results in comparison to the investment performance of funds in a universe that was determined

Other information (unaudited) Wells Fargo Short Duration Government Bond Fund 35

by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the investment performance of the Fund (Administrator Class) was higher than the average investment performance of the Universe for all periods under review. The Board also noted that the investment performance of the Fund was higher than or in range of its benchmark index, the Bloomberg Barclays 1-3 Year Government Index, for all periods under review. The Board noted that the Fund experienced a portfolio manager change in 2017.

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

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

Investment management and sub-advisory fee rates

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

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

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

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

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

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of both WFAM and Wells Fargo & Co. (“Wells Fargo”) as a whole, from providing services to the Fund and the fund family as a whole. The Board noted that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the WFAM and Wells Fargo profitability analysis.

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

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

Economies of scale

The Board considered the extent to which Funds Management may experience economies of scale in the provision of management services, and the extent to which scale benefits, if any, would be shared with shareholders. In particular, the Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size. It considered that, for a small fund or a fund that shrinks in size, breakpoints conversely can result in higher fee levels. The Board also considered that in addition to management fee breakpoints, competitive management fee rates set at the outset without regard to breakpoints and fee waiver and expense reimbursement arrangements, as well as investments in the business intended to enhance services available to Fund shareholders, are means of sharing potential economies of scale with shareholders of the Fund.

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

Other benefits to Funds Management and the Sub-Adviser

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

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

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

Conclusion

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

Appendix A (unaudited) Wells Fargo Short Duration Government Bond Fund 37

SALES CHARGE REDUCTIONS AND WAIVERS FOR CERTAIN INTERMEDIARIES

Ameriprise

Effective June 1, 2018, shareholders purchasing Fund shares through an Ameriprise Financial platform or account will be eligible only for the following Class A load waivers (front-end sales charge waivers), which may differ from those disclosed elsewhere in the Fund’s prospectus or Statement of Additional Information.

Front-end Sales Load Waivers on Class A Shares Available at Ameriprise Financial

• Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs or SAR-SEPs.

• Shares purchased through an Ameriprise Financial investment advisory program (if an Advisory or similar share class for such investment advisory program is not available)

• Shares purchased by third party investment advisors on behalf of their advisory clients through Ameriprise Financial’s platform (if an Advisory or similar share class for such investment advisory program is not available)

• Shares purchased through reinvestment of distributions and dividend reinvestment when purchasing shares of the same Fund (but not any other fund within the same fund family)

• Shares exchanged from Class C shares of the same fund in the month of or following the 10-year anniversary of the purchase date. To the extent that the Fund’s prospectus elsewhere provides for a waiver with respect to such shares following a shorter holding period, that waiver will apply to exchanges following such shorter period. To the extent that the Fund’s prospectus elsewhere provides for a waiver with respect to exchanges of Class C shares for load-waived shares, that waiver will also apply to such exchanges.

• Employees and registered representatives of Ameriprise Financial or its affiliates and their immediate family members

• Shares purchased by or through qualified accounts (including IRAs, Coverdell Education Savings Accounts, 401(k)s, 403(b) TSCAs subject to ERISA and defined benefit plans) that are held by a covered family member, defined as an Ameriprise financial advisor and/or the advisor’s spouse, advisor’s lineal ascendant (mother, father, grandmother, grandfather, great grandmother, great grandfather), advisor’s lineal descendant (son, step-son, daughter, step-daughter, grandson, granddaughter, great grandson, great granddaughter) or any spouse of a covered family member who is a lineal descendant

• Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (i.e. Rights of Reinstatement). Subject to the Fund’s policy regarding frequent purchases and redemptions of Fund shares, you may not be able to repurchase shares for the first 30 days after your redemption.

Automatic Exchange of Class C Shares Available at Ameriprise Financial

• Class C shares will automatically exchange to Class A shares in the month of the 10-year anniversary of the purchase date.

Merrill Lynch

Effective April 10, 2017, shareholders purchasing Fund shares through a Merrill Lynch platform or account will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ from those disclosed elsewhere in the Fund’s prospectus or Statement of Additional Information.

Front-end Sales Load Waivers on Class A Shares available at Merrill Lynch

• Employer-sponsored retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan

• Shares purchased by or through a 529 Plan

• Shares purchased through a Merrill Lynch affiliated investment advisory program

38 Wells Fargo Short Duration Government Bond Fund Appendix A (unaudited)

• Shares purchased by third party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform

• Shares of funds purchased through the Merrill Edge Self-Directed platform (if applicable)

• Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the fund family)

• Shares exchanged from Class C (i.e. level-load) shares of the same fund in the month of or following the 10-year anniversary of the purchase date

• Employees and registered representatives of Merrill Lynch or its affiliates and their family members, as defined by Merrill Lynch, which may differ from the definition of family member in the Fund’s prospectus.

• Directors or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in the Fund’s prospectus

• Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (known as Rights of Reinstatement). Subject to the Fund’s policy regarding frequent purchases and redemptions of Fund shares, you may not be able to repurchase shares for the first 30 days after your redemption.

CDSC Waivers on A, B and C Shares available at Merrill Lynch

• Death or disability of the shareholder

• Shares sold as part of a systematic withdrawal plan as described in the Fund’s prospectus

• Return of excess contributions from an IRA Account

• Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 70½

• Shares sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch

• Shares acquired through a right of reinstatement

• Shares held in retirement brokerage accounts, that are exchanged for a lower cost share class due to transfer to certain fee based accounts or platforms (applicable to A and C shares only)

Front-end load Discounts Available at Merrill Lynch: Breakpoints, Rights of Accumulation & Letters of Intent

• Breakpoints as described in the Fund’s prospectus

• Rights of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.

• Letters of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over a 13-month period of time (if applicable)

Morgan Stanley

Effective on or about July 1, 2018, shareholders purchasing Fund shares through a Morgan Stanley Wealth Management transactional brokerage account will be eligible only for the following Class A load waivers (front-end sales charge waivers), which may differ from and be more limited than those disclosed in the Fund’s prospectus or Statement of Additional Information.

Front-end Sales Load Waivers on Class A Shares Available at Morgan Stanley

• Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans.

• Morgan Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules

• Shares purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund

• Shares purchased through a Morgan Stanley self-directed brokerage account

Appendix A (unaudited) Wells Fargo Short Duration Government Bond Fund 39

• Class C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are exchanged to Class A shares of the same fund pursuant to Morgan Stanley Wealth Management’s share class exchange program.

• Shares purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred sales charge. This waiver is subject to the Fund’s policy regarding frequent purchases and redemption of Fund shares, as discussed under “Account Information—Frequent Purchases and Redemptions of Fund Shares” in the Fund’s prospectus.

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, visit the Fund’s website, or call:

Wells Fargo Funds

P.O. Box 219967

Kansas City, MO 64121-9967

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 the trade name for certain investment advisory/management firms owned by Wells Fargo & Company. These firms include but are not limited to Wells Capital Management Incorporated and Wells Fargo Funds Management, LLC. Certain products managed by WFAM entities are distributed by Wells Fargo Funds Distributor, LLC (a broker/dealer and Member FINRA).

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.

315408 10-18 A220/AR220 08-18

Annual Report

August 31, 2018

Wells Fargo Short-Term Bond 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	23
Statement of operations	24
Statement of changes in net assets	25
Financial highlights	26
Notes to financial statements	30
Report of independent registered public accounting firm	36
Other information	37
Appendix A	44

The views expressed and any forward-looking statements are as of August 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 Short-Term Bond Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

After advancing during 2017, economic growth and stock markets globally diverged during the first eight months of 2018.

Dear Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Short-Term Bond Fund for the 12-month period that ended August 31, 2018. After advancing during 2017, economic growth and stock markets globally diverged during the first eight months of 2018. For fixed-income investors, taxable bond returns suffered and high-yield and municipal bond returns were positive.

For the period, U.S. stocks, as measured by the S&P 500 Index,¹ gained 19.66%, and international stocks, as measured by the MSCI ACWI ex USA Index (Net),² added 3.18%. Based on the MSCI EM Index (Net),³ emerging market stocks lost 0.68%. For bond investors, the Bloomberg Barclays U.S. Aggregate Bond Index⁴ declined 1.05% while the Bloomberg Barclays Global Aggregate ex-USD Index⁵ fell 1.64%. The Bloomberg Barclays Municipal Bond Index⁶ added 0.49%, and the ICE BofAML U.S. High Yield Index⁷ was up 3.26%.

Continued optimism in the U.S. characterized the fourth quarter of 2017.

Some observers described economic conditions in late 2017 as a Goldilocks scenario: synchronized global growth, low inflation, healthy corporate earnings, and a weaker U.S. dollar that supported international growth. During the quarter, the U.S. Bureau of Economic Analysis reported that annualized U.S. gross domestic product (GDP) growth for the third quarter of 2017 was 2.8% and inflation remained below U.S. Federal Reserve (Fed) targets. U.S. corporate earnings and consumer confidence improved.

Economic momentum increased in Europe. The Bank of England (BOE) raised interest rates in November 2017 to 0.50%, the first increase in more than 10 years, indicating confidence in the economy’s growth potential. Meanwhile, the European Central Bank and the Bank of Japan kept interest rates low to spur business activities and bought bonds in an effort to encourage equity investments. The People’s Bank of China’s (PBOC’s) policies sought to stimulate business. Many emerging market economies benefited from stronger currencies versus the U.S. dollar, while commodity price increases benefited countries that rely on natural resources for exports.

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 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.

⁶  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.

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 Short-Term Bond Fund 3

Volatility reemerged during the first quarter of 2018 as global tensions and inflation fears increased.

Stock market gains in January 2018 followed the passage of lower U.S. tax rates. Some investors then grew concerned about trade, particularly between the U.S. and China, and the specter of inflation. The Fed followed its 25-basis-point (bp; 100 bps equal 1.00%) federal funds rate increase in December 2017 with a further 25-bp increase in March 2018. The inflation rate in March reached the Fed’s 2% target for the first time in a year.

The S&P 500 Index closed the first quarter with a negative return, the first negative quarterly return for the index since 2014. Overseas investment markets reversed strong returns in 2017, hurt by a stronger U.S. dollar and mounting trade and diplomatic tensions. After gaining 27.19% for the 12-month period that ended December 31, 2017, the MSCI ACWI ex USA Index (Net) declined 1.81% for the quarter that ended March 31, 2018.

Global trade tensions escalated during the second quarter.

Global trade tensions escalated throughout the second quarter of 2018. The U.S. government imposed tariffs, and foreign governments in North America, Europe, and Asia retaliated. The escalating tensions chilled investment activity as observers awaited signals of next steps.

Meanwhile, inflation continued an upward trend. The CPI-U⁸ added 0.1% in June after increases of 0.2% in both April and May. On a year-over-year basis, the all-items index rose 2.9% for the 12 months that ended June 30, 2018. The index for all items less food and energy rose 2.3% for the same 12-month period.

U.S. stocks gained while international stocks and bonds declined during the summer of 2018.

The U.S. economy strengthened during the summer months. Revised second-quarter GDP data released in August showed the U.S. economy growing at a 4.2% rate. After ticking up slightly in June, the unemployment rate in the U.S. was 3.9% in July and August, according to the U.S. Department of Labor. Wages showed more consistent growth than they had in recent quarters, and consumer confidence remained strong.

Several U.S. equity market indices reached records during August, with the S&P 500 Index gaining 7.76% for the three-month period that ended August 31, 2018. International stock values continued to suffer under the effects of a strong U.S. dollar and continuing trade tensions. The MSCI ACWI ex USA Index (Net) and the MSCI EM Index (Net) were down 4.70% and 1.64%, respectively, during the same three-month period.

The Fed increased the federal funds rate in June, and expectations grew that two more rate increases were in the offing in 2018. Long-term interest rates in the U.S. remained at higher levels relative to the prior 10 years. Rates on 10-year and 30-year Treasury bonds—2.46% and 2.81%, respectively, on January 1, 2018—were 2.86% and 3.02%, respectively, on August 31, off their peak levels on May 17, 2018, of 3.11% and 3.25%, respectively. Some investors became more aware of and concerned about the potential for an inverted yield curve—sometimes a recession signal—as short-term rates increased more quickly than long-term rates. The Fed decided to forgo an interest rate increase at its August meeting.

The S&P 500 Index closed the first quarter with a negative return, the first negative quarterly return for the index since 2014.

⁸  The Consumer Price Index for All Urban Consumers (CPI-U) measures the changes in the price of a basket of goods and services purchased by urban consumers. The urban consumer population is deemed by many as a better representative measure of the general public because close to 90% of the country’s population lives in highly populated areas. You cannot invest directly in an index.

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

Internationally, members of Prime Minister Theresa May’s U.K./Brexit negotiating team resigned amid unproductive negotiations. In early August, the BOE’s Monetary Policy Committee increased its key interest rate to 0.75%. Central banks in Europe and Japan maintained low interest rates and accommodative monetary policies. Amid rising trade uncertainty, the PBOC cut reserve requirement ratios and accelerated infrastructure spending and tax cuts for business enterprises and individuals. Nevertheless, a strengthening U.S. dollar and the trade tensions remained headwinds for investors overseas.

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

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

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

Sincerely,

Andrew Owen

President

Wells Fargo Funds

Notice to shareholders

∎ At a meeting held on May 22-23, 2018, the Board of Trustees of the Fund approved changes to the Fund’s Class A sales charge schedule, effective August 1, 2018. In connection with this change, the net asset value (NAV) breakpoint was lowered from $500,000 to $250,000 and NAV purchases of $250,000 or more redeemed within 12 months of purchase are assessed a contingent deferred sales charge (CDSC) of 0.40%. There is no change for purchase amounts below this breakpoint. Beginning August 1, 2018, any purchases made by a shareholder with an active Letter of Intent (LOI) are subject to the terms of the new load schedule.

∎ At a meeting held on August 14-15, 2018, the Board of Trustees of the Fund approved the following policy which will be effective on or about February 5, 2019:

Class C shares will convert automatically into Class A shares ten years after the initial date of purchase or, if you acquired your Class C shares through an exchange or conversion from another share class, ten years after the date you acquired your Class C shares. When Class C shares that you acquired through a purchase or exchange convert, any other Class C shares that you purchased with reinvested dividends and distributions also will convert into Class A shares on a pro rata basis. A shorter holding period may also apply depending on your intermediary. Please see “Appendix A—Sales Charge Reductions and Waivers for Certain Intermediaries” in the Fund’s prospectus or at the end of this report.

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 Short-Term Bond Fund Performance highlights (unaudited)

Investment objective

The Fund seeks current income consistent with capital preservation.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Christopher Y. Kauffman, CFA^®

Jay N. Mueller, CFA^®

Noah M. Wise, CFA^®

Average annual total returns (%) as of August 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 (SSTVX)	8-31-1999		(1.69	)		0.73		2.07		0.31			1.14		2.28		0.82		0.73
Class C (WFSHX)	3-31-2008		(1.44	)		0.39		1.50		(0.44	)		0.39		1.50		1.57		1.48
Class R6 (SSTYX)	7-31-2018		–			–		–		0.58			1.43		2.58		0.82		0.40
Institutional Class (SSHIX)	8-31-1999		–			–		–		0.46			1.41		2.56		0.49		0.46
Bloomberg Barclays U.S. 1-3 Year Government/Credit Bond Index4	–		–			–		–		0.15			0.90		1.62		–		–

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

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

For Class A shares, the maximum front-end sales charge is 2.00%. For Class C shares, the maximum contingent deferred sales charge is 1.00%. Performance including a contingent deferred sales charge assumes the sales charge for the corresponding time period. Class R6 and Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.

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

Please see footnotes on page 7.

Performance highlights (unaudited) Wells Fargo Short-Term Bond Fund 7

Growth of $10,000 investment as of August 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.

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

³  The manager has contractually committed through December 31, 2018 (December 31, 2019 for Class C), to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waivers at 0.72% for Class A, 1.47% for Class C, 0.40% for Class R6, and 0.45% for Institutional Class. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses (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 Bloomberg Barclays U.S. 1-3 Year Government/Credit Bond Index is the one- to three-year component of the Bloomberg Barclays U.S. Government/Credit Bond Index that includes securities in the Government and Credit Indices. The Government Index includes Treasuries (that is, public obligations of the U.S. Treasury that have remaining maturities of more than one year) and agencies (that is, publicly issued debt of U.S. government agencies, quasi-federal corporations, and corporate or foreign debt guaranteed by the U.S. government). The Credit Index includes publicly issued U.S. corporate and foreign debentures and secured notes that meet specified maturity, liquidity, and quality requirements. You cannot invest directly in an index.

⁵  The chart compares the performance of Class A shares for the most recent ten years with the performance of the Bloomberg Barclays U.S. 1-3 Year Government/Credit Bond 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 2.00%.

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

⁷  The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. You cannot invest directly in an index.

⁸  Amounts are calculated based on the total long-term investments of the Fund. These amounts are subject to change and may have changed since the date specified.

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

MANAGER’S DISCUSSION

Fund highlights

∎ The Fund (Class A, excluding sales charges) outperformed its benchmark, the Bloomberg Barclays U.S. 1–3 Year Government/Credit Bond Index, for the 12-month period that ended August 31, 2018.

∎ The Fund’s performance was driven by overweights to corporate debt and structured products, both of which generated superior returns compared with similar-duration Treasuries.

∎ Cash holdings for liquidity purposes detracted from performance.

Ten largest holdings (%) as of August 31, 20186
Jackson National Life Insurance Company, 2.50%, 6-27-2022	1.15
EMC Corporation, 2.65%, 6-1-2020	1.01
GM Financial Securitized Term Auto Receivables Trust Series 2018-1 Class A2A, 2.08%, 1-19-2021	0.94
New Jersey EDA Series B, 0.00%, 2-15-2019	0.82
Toronto Dominion Bank, 1.45%, 9-6-2018	0.81
Michigan State University Board of Trustees Series B, 2.40%, 9-10-2018	0.76
GS Mortgage Securities Trust Series 2010-C1 Class A2, 4.59%, 8-10-2043	0.76
Illinois Series 2014, 5%, 5-1-2019	0.74
Verizon Communications Incorporated, 4.60%, 4-1-2021	0.74
HSBC Bank USA NA, 4.88%, 8-24-2020	0.74

Economic growth accelerated and policy normalization continued.

Over the past four quarters, U.S. gross domestic product (GDP) grew by 2.9% in real terms, which was above the post-financial-crisis average. Business investment was a significant source of strength, rising 4.8% for the 12 months that ended June 30, 2018. Consumer spending was a net contributor to growth, although it failed to keep pace with the business sector. Inventories were a net detractor from GDP growth, while trade and government spending were modestly positive factors

The labor market generally was healthy over the past 12 months. Nonfarm payrolls expanded by an average of 194,000 jobs per month over the period, while the unemployment rate declined to 3.9% at the end of August 2018 from 4.4% a year earlier. Also encouraging was a 0.2% rise in the employment/population ratio since August 2017, reflecting both the fall in unemployment

and a modest increase in the labor force participation rate. Wage gains of about 2.9% over the past 12 months were sufficient to support consumption growth without sparking fears of rising inflation. The CPI⁷ also rose 2.9% over the past year, which accelerated due in part to higher energy prices.

The U.S. Federal Reserve’s (Fed’s) rate-setting committee, the Federal Open Market Committee (FOMC), raised the federal funds rate three times over the past 12 months by a total of 0.75%. The FOMC’s gradual approach to hiking rates is supported by Fed Chairman Jerome Powell’s stated view that there is no sense that inflation will take off or move unexpectedly quickly.

In line with the FOMC’s policy moves, interest rates had an upward bias over the past 12 months, particularly in shorter-term maturity instruments. Yields on 2-year Treasuries rose by 130 basis points (bps; 100 bps equal 1.00%) during the period, while 10-year Treasuries were about 75 bps higher. Investment-grade credit spreads tightened rapidly into the start of 2018 after the corporate tax cut was enacted in the U.S. but ended the period slightly wider after trade tensions and heavy supply took their toll on bond prices.

Please see footnotes on page 7.

Performance highlights (unaudited) Wells Fargo Short-Term Bond Fund 9

Portfolio allocation as of August 31, 2018⁶

The Fund maintained overweights to corporate credit and securitized debt.

The Fund continued to overweight short-term corporate bonds as well as securitized debt while retaining underweights to U.S. Treasuries and agency debentures. A little over half of the Fund’s assets were invested in corporate debt, which benefited from a positive credit environment. The other primary sector commitment was to securitized debt: mortgage-backed securities, asset-backed securities, and collateralized mortgage obligations. We maintained the Fund’s duration at slightly less than two years during the reporting period with the expectation that short-term rates could rise.

We expect modestly above-trend economic growth to continue.

We expect macroeconomic trends to remain relatively consistent in the coming quarters, aided by fiscal stimulus and looser regulations. Real GDP growth in the area of 3% is likely to persist for a period of time, barring some external shock. The biggest risks to the outlook include an escalation in trade tensions and a larger-than-expected slowdown in the Chinese economy.

Please see footnotes on page 7.

10 Wells Fargo Short-Term Bond Fund Fund expenses (unaudited)

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

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from March 1, 2018 to August 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 3-1-2018		Ending account value 8-31-2018		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,008.25	$	3.64		0.72	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.58	$	3.67		0.72	%
Class C
Actual	$	1,000.00	$	1,004.45	$	7.43		1.47	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.80	$	7.48		1.47	%
Class R6
Actual	$	1,000.00	$	1,009.67	$	2.03		0.40	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.19	$	2.04		0.40	%
Institutional Class
Actual	$	1,000.00	$	1,008.46	$	2.28		0.45	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.94	$	2.29		0.45	%

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

Portfolio of investments—August 31, 2018 Wells Fargo Short-Term Bond Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities: 6.24%
FDIC Series 2010-R1 Class A 144A		2.18	%		5-25-2050	$	614,855	$	615,304
FDIC Series 2013-R1 Class A 144A		1.15			3-25-2033		502,295		494,682
FHLMC (3 Year Treasury Constant Maturity +2.23%) ±		3.46			5-1-2026		32,147		31,987
FHLMC		3.50			10-15-2025		529,047		538,305
FHLMC		3.50			6-15-2038		288,359		288,992
FHLMC (12 Month LIBOR +1.91%) ±		3.66			9-1-2031		2,541		2,568
FHLMC (1 Year Treasury Constant Maturity +2.25%) ±		3.68			4-1-2038		271,802		286,351
FHLMC		4.00			5-1-2025		1,001,683		1,027,234
FHLMC (1 Year Treasury Constant Maturity +2.25%) ±		4.12			4-1-2032		39,145		40,877
FHLMC (1 Year Treasury Constant Maturity +2.40%) ±		4.37			7-1-2029		2,313		2,384
FHLMC		6.00			10-1-2021		137,786		141,710
FHLMC		9.00			6-1-2019		2,872		2,875
FHLMC		9.00			10-1-2019		18,720		18,808
FHLMC		9.50			12-1-2022		7,237		7,298
FHLMC		10.50			2-1-2019		68		68
FHLMC		10.50			4-1-2019		72		72
FHLMC		10.50			5-1-2019		47		47
FHLMC		10.50			6-1-2019		277		278
FHLMC		10.50			7-1-2019		144		145
FHLMC Series 2597 Series AE		5.50			4-15-2033		72,889		76,639
FHLMC Series 2642 Class AR		4.50			7-15-2023		247,402		254,498
FHLMC Series 3266 Class D		5.00			1-15-2022		32,016		32,040
FHLMC Series 3609 Class LA		4.00			12-15-2024		34,395		34,474
FHLMC Series 3855 Class HL		3.50			2-15-2026		87,485		87,714
FHLMC Series 3920 Class AB		3.00			9-15-2025		347,438		348,439
FHLMC Series KI01 Class A (1 Month LIBOR +0.16%) ±		2.24			9-25-2022		226,091		226,121
FHLMC Series KP04 Class AG1 (1 Month LIBOR +0.22%) ±		2.30			7-25-2020		1,485,000		1,485,818
FHLMC Series QO04 Class AFL (12 Month Treasury Average +0.74%) ±		2.49			10-25-2021		1,294,821		1,296,046
FHLMC Series T-42 Class A6		9.50			2-25-2042		329,621		392,493
FHLMC Series T-57 Class 2A1 ±±		3.92			7-25-2043		81,405		85,489
FHLMC Series T-59 Class 2A1 ±±		3.75			10-25-2043		933,725		905,095
FNMA (1 Year Treasury Constant Maturity +1.27%) ±		2.69			8-1-2034		273,373		276,658
FNMA		3.02			11-1-2020		253,864		253,653
FNMA (1 Year Treasury Constant Maturity +2.19%) ±		3.43			11-1-2031		42,884		44,915
FNMA (1 Year Treasury Constant Maturity +2.26%) ±		3.86			8-1-2036		1,361,152		1,433,993
FNMA (12 Month Treasury Average +2.29%) ±		3.95			10-1-2036		1,002,924		1,041,360
FNMA		4.00			6-25-2026		545,196		568,823
FNMA		4.00			9-1-2026		1,520,445		1,556,684
FNMA		4.00			8-25-2037		406,365		410,972
FNMA (12 Month Treasury Average +2.40%) ±		4.03			7-1-2036		1,031,486		1,077,109
FNMA (12 Month LIBOR +1.82%) ±		4.04			9-1-2040		877,873		921,462
FNMA		5.50			3-1-2023		487,115		505,308
FNMA		5.50			8-25-2034		153,533		153,459
FNMA		6.00			4-1-2021		60,803		62,086
FNMA		6.00			3-1-2033		494,988		539,774
FNMA		6.28			11-1-2018		21,199		21,159
FNMA		6.50			8-1-2031		206,600		227,859
FNMA		8.00			9-1-2023		1,055		1,060
FNMA		8.33			7-15-2020		2,861		2,914
FNMA		9.00			2-15-2020		172		176

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

12 Wells Fargo Short-Term Bond Fund Portfolio of investments—August 31, 2018

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA		9.00	%		11-1-2024	$	42,181	$	45,010
FNMA		11.00			10-15-2020		1,814		1,838
FNMA Grantor Trust Series 2002-T12 Class A4		9.50			5-25-2042		544,197		634,525
FNMA Series 1989-29 Class Z		10.00			6-25-2019		10,430		10,638
FNMA Series 1989-63 Class Z		9.40			10-25-2019		1,839		1,879
FNMA Series 2002-T1 Class A4		9.50			11-25-2031		36,337		41,615
FNMA Series 2003-41 Class PE		5.50			5-25-2023		309,997		318,802
FNMA Series 2003-W11 Class A1 ±±		5.27			6-25-2033		8,777		9,159
FNMA Series 2003-W6 Class 6A ±±		4.06			8-25-2042		735,745		749,828
FNMA Series 2003-W6 Class PT4 ±±		8.22			10-25-2042		70,741		84,993
FNMA Series 2004-32 Class AY		4.00			5-25-2019		11,059		11,075
FNMA Series 2004-90 Class XY		4.00			9-25-2034		44,175		44,153
FNMA Series 2008-53 Class CA		5.00			7-25-2023		84,051		84,575
FNMA Series 2009-M01 Class A2		4.29			7-25-2019		853,061		855,901
FNMA Series 2010-37 Class A1		5.41			5-25-2035		1,924,773		1,978,827
FNMA Series 2011-133 Class A		3.50			6-25-2029		269,524		270,726
FNMA Series 2011-17 Class ED		3.50			7-25-2025		9,423		9,411
FNMA Series 2011-39 Class CA		3.00			5-25-2024		37,254		37,175
GNMA		4.50			4-20-2035		119,472		121,988
GNMA		8.00			12-15-2023		14,677		15,751
GNMA		9.00			11-15-2024		4,958		5,153
GNMA Series 2012-19 Class A		1.83			3-16-2039		767,602		761,809
GNMA Series 2017-H13 Class FJ (1 Month LIBOR +0.20%) ±		2.30			5-20-2067		606,158		605,335
GNMA Series 2017-H16 Class FD (1 Month LIBOR +0.20%) ±		2.30			8-20-2067		965,787		964,653
Vendee Mortgage Trust Series 2011-1 Class DA		3.75			2-15-2035		706,984		712,831
Total Agency Securities (Cost $26,169,197)									26,201,925
Asset-Backed Securities: 11.52%
Ascentium Equipment Receivables LLC Series 2017-2A Class A2 144A		2.00			5-11-2020		1,901,619		1,892,194
Avis Budget Rental Car Funding LLC Series 2013-1A Class A 144A		1.92			9-20-2019		236,667		236,569
BMW Vehicle Owner Trust Series 2017-1 Class A2		1.64			7-22-2019		525,746		525,166
CCG Receivables Trust Series 2015-1 Class A3 144A		1.92			1-17-2023		2,354,229		2,351,497
Chesapeake Funding LLC Series 2017-3A Class A 144A		1.91			8-15-2029		2,558,951		2,529,541
CNH Equipment Trust Series 2015-A Class A3		1.30			4-15-2020		65,469		65,412
Dell Equipment Finance Trust Series 2017-2 Class A2B (1 Month LIBOR +0.30%) 144A±		2.37			2-24-2020		923,350		923,661
Education Loan Asset-Backed Trust Series 2013-1 Class A1 (1 Month LIBOR +0.80%) 144A±		2.86			6-25-2026		1,205,401		1,210,218
Enterprise Fleet Financing Trust Series 2017-1 Class A2 144A		2.13			7-20-2022		2,987,853		2,972,217
Ford Credit Auto Lease Trust Series 2017-B Class A2A		1.80			6-15-2020		1,178,722		1,175,262
GM Financial Securitized Term Auto Receivables Trust Series 2018-1 Class A2A		2.08			1-19-2021		3,971,994		3,958,831
GMF Floorplan Owner Revolving Trust Series 2016-1 Class A2 (1 Month LIBOR +0.85%) 144A±		2.91			5-17-2021		1,830,000		1,838,165
Home Equity Asset Trust Series 2003-6 Class M1 (1 Month LIBOR +1.05%) ±		3.56			2-25-2034		969,549		949,115
Jimmy John’s Funding LLC Series 2017-1A Class A2I 144A		3.61			7-30-2047		1,237,500		1,225,979
John Deere Owner Trust Series 2016-A Class A3		1.36			4-15-2020		778,653		775,940
Lendmark Funding Trust Series 2018-1A Class A 144A		3.81			12-21-2026		1,855,000		1,862,221
Navistar Financial Dealer Note Master Trust Series 2017-1 Class A (1 Month LIBOR +0.78%) 144A±		2.84			6-27-2022		2,000,000		2,008,790
Nissan Auto Lease Trust Series 2017-B Class A3		2.05			9-15-2020		1,775,000		1,760,764
Santander Retail Auto Lease Trust Series 2017-A Class A2A 144A		2.02			3-20-2020		2,974,288		2,963,695

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

Portfolio of investments—August 31, 2018 Wells Fargo Short-Term Bond Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Asset-Backed Securities (continued)
SLC Student Loan Trust Series 2006-2 Class A5 (3 Month LIBOR +0.10%) ±		2.44	%		9-15-2026	$	1,738,741	$	1,736,840
SLM Student Loan Trust Series 2011-1 Class A1 (1 Month LIBOR +0.52%) ±		2.58			3-25-2026		473,613		474,779
SLM Student Loan Trust Series 2011-2 Class A1 (1 Month LIBOR +0.60%) ±		2.66			11-25-2027		375,412		377,086
SLM Student Loan Trust Series 2012-3 Class A (1 Month LIBOR +0.65%) ±		2.71			12-27-2038		2,149,598		2,157,857
Student Loan Consolidation Center Series 2011-1 Class A (1 Month LIBOR +1.22%) 144A±		3.28			10-25-2027		2,154,997		2,178,036
Towd Point Asset Trust Series 2018-SL1 Class A (1 Month LIBOR +0.60%) 144A±		2.66			1-25-2046		2,804,105		2,789,603
Verizon Owner Trust Series 2017-1A Class A 144A		2.06			9-20-2021		1,800,000		1,784,230
Volvo Financial Equipment LLC Series 2016-1A Class A3 144A		1.67			2-18-2020		703,515		701,671
Volvo Financial Equipment LLC Series 2018-AA (1 Month LIBOR +0.52%) 144A±		2.58			7-17-2023		2,240,000		2,246,300
Wheels SPV LLC Series 2018-1A Class A2 144A		3.06			4-20-2027		1,375,000		1,375,727
World Omni Auto Receivables Trust Series 2017-A Class A2		1.68			12-16-2019		1,342,545		1,338,863
Total Asset-Backed Securities (Cost $48,506,550)									48,386,229
Corporate Bonds and Notes: 42.94%
Consumer Discretionary: 4.68%
Auto Components: 0.51%
ZF North America Capital Incorporated 144A		4.00			4-29-2020		2,110,000		2,128,320
Hotels, Restaurants & Leisure: 0.65%
GLP Capital LP		4.88			11-1-2020		1,340,000		1,373,500
MGM Resorts International		5.25			3-31-2020		1,340,000		1,366,800
									2,740,300
Household Durables: 0.11%
Lennar Corporation		4.50			11-15-2019		445,000		449,450
Internet & Direct Marketing Retail: 0.18%
Amazon.com Incorporated		1.90			8-21-2020		765,000		750,701
Media: 2.64%
Charter Communications Operating LLC		3.58			7-23-2020		3,000,000		3,008,729
DIRECTV Holdings LLC		5.88			10-1-2019		1,680,000		1,729,614
Discovery Communications LLC		2.20			9-20-2019		1,275,000		1,264,625
NBCUniversal Enterprise Incorporated 144A		5.25			12-31-2049		1,655,000		1,675,688
TEGNA Incorporated		5.13			7-15-2020		1,340,000		1,351,725
Time Warner Cable Incorporated		4.88			3-15-2020		2,010,000		2,059,575
									11,089,956
Multiline Retail: 0.28%
Macy’s Retail Holdings Incorporated		3.45			1-15-2021		1,205,000		1,198,144
Specialty Retail: 0.31%
Group 1 Automotive Incorporated		5.00			6-1-2022		1,300,000		1,287,000
Consumer Staples: 2.63%
Food Products: 1.70%
Campbell Soup Company		3.30			3-15-2021		2,380,000		2,367,579
General Mills Incorporated		3.20			4-16-2021		1,800,000		1,796,488
Hershey Company		3.38			5-15-2023		2,950,000		2,966,807
									7,130,874

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

14 Wells Fargo Short-Term Bond Fund Portfolio of investments—August 31, 2018

Security name	Interest rate			Maturity date		Principal		Value
Tobacco: 0.93%
British American Tobacco Capital Corporation 144A		2.30	%		8-14-2020	$	1,785,000	$	1,752,533
Philip Morris International Incorporated		1.38			2-25-2019		2,165,000		2,152,930
									3,905,463
Energy: 0.91%
Oil, Gas & Consumable Fuels: 0.91%
BP AMI Leasing Incorporated 144A		5.52			5-8-2019		825,000		839,884
Enable Midstream Partner LP		2.40			5-15-2019		3,000,000		2,986,145
									3,826,029
Financials: 16.55%
Banks: 5.19%
Australia & New Zealand Banking Group Limited		2.25			11-9-2020		2,210,000		2,165,806
Bank of America Corporation		2.15			11-9-2020		2,000,000		1,958,994
Citibank NA		3.40			7-23-2021		2,000,000		2,004,115
Citigroup Incorporated		2.50			7-29-2019		2,235,000		2,230,117
Citizens Bank		2.20			5-26-2020		2,000,000		1,963,391
Fifth Third Bank		2.30			3-15-2019		1,845,000		1,842,824
HSBC Bank USA NA		4.88			8-24-2020		3,000,000		3,088,327
JPMorgan Chase (3 Month LIBOR +0.61%) ±		3.51			6-18-2022		1,000,000		1,004,769
JPMorgan Chase		1.65			9-23-2019		2,000,000		1,977,931
Synchrony Bank		3.65			5-24-2021		1,075,000		1,068,139
US Bank NA		2.05			10-23-2020		2,540,000		2,486,837
									21,791,250
Capital Markets: 1.59%
Goldman Sachs Group Incorporated		2.30			12-13-2019		1,000,000		992,414
Goldman Sachs Group Incorporated (3 Month LIBOR +0.82%) ±		2.88			10-31-2022		2,900,000		2,835,917
Morgan Stanley		2.20			12-7-2018		2,000,000		1,998,680
Morgan Stanley		2.45			2-1-2019		840,000		839,621
									6,666,632
Consumer Finance: 4.56%
Ally Financial Incorporated		3.25			11-5-2018		2,930,000		2,930,000
American Express Company		3.40			2-27-2023		1,120,000		1,110,269
Capital One Financial Corporation		2.50			5-12-2020		3,000,000		2,969,062
Daimler Finance North America LLC 144A		2.20			5-5-2020		520,000		511,223
Daimler Finance North America LLC 144A		3.00			2-22-2021		2,850,000		2,825,088
Ford Motor Credit Company LLC		2.94			1-8-2019		1,335,000		1,334,640
Ford Motor Credit Company LLC (3 Month LIBOR +0.88%) ±		3.22			10-12-2021		1,160,000		1,148,470
General Motors Financial Company Incorporated		3.15			1-15-2020		3,000,000		3,001,440
Nissan Motor Acceptance Corporation 144A		2.00			3-8-2019		2,000,000		1,992,407
Synchrony Financial		2.60			1-15-2019		1,335,000		1,333,730
									19,156,329
Diversified Financial Services: 0.52%
WEA Finance LLC 144A		3.25			10-5-2020		2,205,000		2,201,529

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

Portfolio of investments—August 31, 2018 Wells Fargo Short-Term Bond Fund 15

Security name	Interest rate			Maturity date		Principal		Value
Insurance: 4.69%
Axis Specialty Finance LLC		5.88	%		6-1-2020	$	1,794,000	$	1,867,774
Jackson National Life Global Company 144A		2.50			6-27-2022		5,000,000		4,826,297
Jackson National Life Global Company 144A		3.30			6-11-2021		2,340,000		2,339,297
Metropolitan Life Global Funding Incorporated 144A		1.55			9-13-2019		1,820,000		1,798,360
Metropolitan Life Global Funding Incorporated 144A		1.75			12-19-2018		2,000,000		1,996,380
OneBeacon US Holdings Incorporated		4.60			11-9-2022		2,075,000		2,090,519
Protective Life Global Funding 144A		2.26			4-8-2020		1,450,000		1,431,243
Reliance Standard Life Insurance 144A		2.15			10-15-2018		1,390,000		1,389,558
Reliance Standard Life Insurance 144A		2.38			5-4-2020		2,000,000		1,965,319
									19,704,747
Health Care: 3.39%
Health Care Providers & Services: 1.50%
Anthem Incorporated		2.50			11-21-2020		1,235,000		1,216,486
CVS Health Corporation		3.13			3-9-2020		2,345,000		2,346,044
HCA Incorporated		6.50			2-15-2020		1,315,000		1,364,970
Tenet Healthcare Corporation		6.00			10-1-2020		1,340,000		1,391,925
									6,319,425
Pharmaceuticals: 1.89%
Bayer US Finance LLC 144A		3.50			6-25-2021		1,640,000		1,638,323
Eli Lilly and Company		2.35			5-15-2022		3,000,000		2,932,743
EMD Finance LLC 144A		2.40			3-19-2020		1,925,000		1,900,472
Teva Pharmaceutical Finance LLC		2.25			3-18-2020		1,500,000		1,464,566
									7,936,104
Industrials: 2.63%
Aerospace & Defense: 0.96%
Rockwell Collins Incorporated		1.95			7-15-2019		1,530,000		1,517,904
Spirit AeroSystems Incorporated (3 Month LIBOR +0.80%) ±		2.98			6-15-2021		2,500,000		2,506,381
									4,024,285
Airlines: 0.59%
Delta Air Lines Incorporated		3.40			4-19-2021		1,000,000		993,713
Delta Air Lines Incorporated		4.75			11-7-2021		1,454,822		1,483,598
									2,477,311
Industrial Conglomerates: 0.70%
General Electric Company		2.50			3-28-2020		3,000,000		2,966,769
Professional Services: 0.12%
Equifax Incorporated		3.60			8-15-2021		500,000		499,202
Transportation Infrastructure: 0.26%
TTX Company 144A		2.25			2-1-2019		1,095,000		1,092,246
Information Technology: 4.52%
IT Services: 0.57%
IBM Corporation		1.80			5-17-2019		2,405,000		2,392,925

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

16 Wells Fargo Short-Term Bond Fund Portfolio of investments—August 31, 2018

Security name	Interest rate			Maturity date		Principal		Value
Semiconductors & Semiconductor Equipment: 1.29%
Broadcom Corporation		2.65	%		1-15-2023	$	3,000,000	$	2,838,072
KLA-Tencor Corporation		3.38			11-1-2019		2,000,000		2,008,135
Maxim Integrated Product Incorporated		2.50			11-15-2018		570,000		569,864
									5,416,071
Software: 0.35%
Microsoft Corporation		2.40			2-6-2022		1,500,000		1,473,400
Technology Hardware, Storage & Peripherals: 2.31%
Apple Incorporated		2.00			11-13-2020		3,000,000		2,948,448
EMC Corporation		2.65			6-1-2020		4,340,000		4,243,863
Hewlett Packard Enterprise Company		3.60			10-15-2020		2,500,000		2,516,925
									9,709,236
Materials: 0.59%
Paper & Forest Products: 0.59%
Georgia Pacific LLC 144A		2.54			11-15-2019		2,495,000		2,480,997
Real Estate: 1.58%
Equity REITs: 1.09%
DDR Corporation		4.63			7-15-2022		2,355,000		2,421,136
Simon Property Group LP		2.20			2-1-2019		2,165,000		2,162,662
									4,583,798
Real Estate Management & Development: 0.49%
Washington Prime Group		3.85			4-1-2020		2,065,000		2,045,191
Telecommunication Services: 2.29%
Diversified Telecommunication Services: 1.95%
AT&T Incorporated		2.80			2-17-2021		1,910,000		1,888,152
AT&T Incorporated		5.00			3-1-2021		1,085,000		1,126,370
AT&T Incorporated		5.80			2-15-2019		783,000		793,444
Broadcom International Limited		2.38			1-15-2020		1,280,000		1,266,297
Verizon Communications Incorporated		4.60			4-1-2021		3,000,000		3,103,657
									8,177,920
Wireless Telecommunication Services: 0.34%
Sprint Spectrum LP 144A		3.36			3-20-2023		1,430,000		1,422,221
Utilities: 3.17%
Electric Utilities: 2.52%
Duke Energy Corporation		5.05			9-15-2019		3,000,000		3,058,433
Edison International		2.13			4-15-2020		1,200,000		1,176,755
Exelon Corporation		3.50			6-1-2022		1,895,000		1,871,842
Interstate Power & Light Company		5.88			9-15-2018		580,000		580,516
NV Energy Incorporated		6.25			11-15-2020		2,000,000		2,121,077
Oklahoma Gas & Electric Company		6.35			9-1-2018		1,792,000		1,792,000
									10,600,623

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

Portfolio of investments—August 31, 2018 Wells Fargo Short-Term Bond Fund 17

Security name	Interest rate			Maturity date		Principal		Value
Multi-Utilities: 0.65%
Black Hills Corporation		2.50	%		1-11-2019	$	1,355,000	$	1,353,317
Dominion Resources Incorporated		2.96			7-1-2019		1,365,000		1,366,410
									2,719,727
Total Corporate Bonds and Notes (Cost $181,788,383)									180,364,175
Municipal Obligations: 5.31%
California: 0.72%
Miscellaneous Revenue: 0.72%
Los Angeles CA Municipal Improvement Refunding Bond Convention Center Series A		2.34			11-1-2018		1,380,000		1,379,600
Roman Catholic Diocese of Oakland CA		6.04			11-1-2019		1,635,000		1,663,039
									3,042,639
Connecticut: 0.71%
GO Revenue: 0.71%
Connecticut Series A		2.30			1-15-2019		3,000,000		2,993,400
Georgia: 0.25%
Health Revenue: 0.25%
Medical Center Hospital Authority Taxable Refunding Bond Columbus Regional Healthcare System Incorporated Project		4.88			8-1-2022		1,000,000		1,044,950
Illinois: 1.02%
Miscellaneous Revenue: 0.74%
Illinois Series 2014		5.00			5-1-2019		3,070,000		3,122,129
Tax Revenue: 0.28%
Chicago IL Retiree Health Series B		6.30			12-1-2021		1,125,000		1,180,890
									4,303,019
Michigan: 0.48%
Water & Sewer Revenue: 0.48%
Michigan Finance Authority Series D5		2.85			7-1-2019		2,000,000		1,999,140
New Jersey: 0.82%
Miscellaneous Revenue: 0.82%
New Jersey EDA Series B (AGM Insured) ¤		0.00			2-15-2019		3,500,000		3,454,535
Oregon: 0.24%
GO Revenue: 0.24%
Portland OR Taxable Pension (m)(n)		2.38			6-1-2019		1,000,000		1,000,000
Pennsylvania: 0.21%
Miscellaneous Revenue: 0.21%
Philadelphia PA IDA Pension Funding Series B (Ambac Insured) ¤		0.00			4-15-2021		970,000		881,449
Rhode Island: 0.30%
Industrial Development Revenue: 0.30%
Rhode Island EDA (AGM Insured)		7.75			11-1-2020		1,200,000		1,243,260

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

18 Wells Fargo Short-Term Bond Fund Portfolio of investments—August 31, 2018

Security name	Interest rate			Maturity date		Principal		Value
Wisconsin: 0.56%
Housing Revenue: 0.56%
Wisconsin Healthcare PFA (Citizens Bank LOC)		2.63	%		11-1-2019	$	2,365,000	$	2,331,535
Total Municipal Obligations (Cost $22,344,572)									22,293,927
Non-Agency Mortgage-Backed Securities: 15.56%
BDS Limited Series 2018-FL2 Class A (1 Month LIBOR +0.95%) 144A±		3.01			8-15-2035		1,165,000		1,168,292
BlueMountain CLO Limited Series 2014-2A Class AR (3 Month LIBOR +0.93%) 144A±		3.28			7-20-2026		2,030,000		2,029,231
BX Trust 2017 Series A (1 Month LIBOR +1.05%) 144A±		3.11			10-15-2032		2,640,000		2,643,266
CD Commercial Mortgage Trust Series 2017-CD3 Class A1		1.97			2-10-2050		1,283,127		1,262,396
CGBAM Commercial Mortgage Trust Series 2015-SMRT Class A 144A		2.81			4-10-2028		1,365,000		1,359,386
CGDBB Commercial Mortgage Trust Series 2017-BIOC Class A (1 Month LIBOR +0.79%) 144A±		2.85			7-15-2032		2,850,000		2,849,996
CIFC Funding Limited Series 2012-2RA Class A1 (3 Month LIBOR +0.80%) 144A±		3.15			1-20-2028		2,440,000		2,422,061
Citigroup Commercial Mortgage Trust Series 2016-P5 Class A2		2.40			10-10-2049		128,000		125,023
Citigroup Commercial Mortgage Trust Series 2017-1500 Class A (1 Month LIBOR +0.85%) 144A±		2.91			7-15-2032		2,100,000		2,100,680
Citigroup Commercial Mortgage Trust Series 2017-MDRB Class A (1 Month LIBOR +1.10%) 144A±		3.16			7-15-2030		1,605,052		1,599,219
Commercial Mortgage Trust Series 2012-CR1 Class ASB		3.05			5-15-2045		2,232,823		2,229,786
Commercial Mortgage Trust Series 2014-LC17 Class A2		3.16			10-10-2047		2,300,000		2,305,693
Commercial Mortgage Trust Series 2015-CR27 Class A1		1.58			10-10-2048		1,646,217		1,625,483
ContiMortgage Home Equity Trust Series 1996-2 Class IO ¤		0.00			7-15-2027		636,532		11,852
Countrywide Home Loans Mortgage Pass-Through Trust Series 2001-HYB1 Class 2A1 ±±		3.21			6-19-2031		107,177		105,443
Crown Point Limited Series 2013-2A Class A1LR (3 Month LIBOR +0.59%) 144A±		2.93			12-31-2023		62,932		62,905
Deutsche Bank UBS Securities Mortgage Trust Series 2011-LC2A Class A4 144A		4.54			7-10-2044		704,946		726,617
EquiFirst Mortgage Loan Trust Series 2003-2 Class 3A3 (1 Month LIBOR +1.13%) ±		3.19			9-25-2033		281,906		277,978
Golden National Mortgage Asset-Backed Certificates Series 1998-GN1 Class M2 ††		1.00			2-25-2027		34,322		34,198
Great Wolf Trust Series 2017-A (1 Month LIBOR +0.85%) 144A±		3.06			9-15-2034		2,150,000		2,150,646
GS Mortgage Securities Trust Series 2010-C1 Class A2 144A		4.59			8-10-2043		3,110,000		3,180,663
GS Mortgage Securities Trust Series 2013-GC16 Class A2		3.03			11-10-2046		520,568		520,372
GS Mortgage Securities Trust Series 2016-GS3 Class A1		1.43			10-10-2049		1,884,008		1,844,058
GSMPS Mortgage Loan Trust Series 1998-1 Class A 144A±±		8.00			9-19-2027		183,140		182,046
Hospitality Mortgage Trust Series 2017-HIT Class A (1 Month LIBOR +0.85%) 144A±		2.93			5-8-2030		750,000		750,700
Hyatt Hotel Portfolio Trust Series 2017-HYTE Class A (1 Month LIBOR +0.66%) 144A±		2.72			8-9-2032		2,986,000		2,983,155
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-CB18 Class AMFL (1 Month LIBOR +0.17%) ±		2.23			6-12-2047		917,488		901,561
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-LDPX Class AM ±±		5.46			1-15-2049		492,304		493,242
JPMorgan Chase Commercial Mortgage Securities Trust Series 2016-JP3 Class A1		1.46			8-15-2049		1,619,908		1,584,266
JPMorgan Chase Commercial Mortgage Securities Trust Series 2018-PHH Class A (1 Month LIBOR +0.91%) 144A±		2.97			6-15-2035		1,085,000		1,086,689
KKR Financial Holdings LLC (3 Month LIBOR +1.34%) 144A±		3.68			4-15-2029		2,250,000		2,252,608
LStar Commercial Mortgage Trust Series 2017-5 Class A1 144A		2.42			3-10-2050		515,799		508,020
Master Mortgages Trust Series 2002-3 Class 4A1 ±±		4.31			10-25-2032		3,841		3,839
Morgan Stanley Bank of America Merrill Lynch Trust Series 2014-C15 Class A2		2.98			4-15-2047		2,510,187		2,509,916
Morgan Stanley Capital I Trust Series 2016-C30 Class A1		1.39			9-15-2049		1,477,394		1,441,166
Neuberger Berman Limited Series 2015-20A Class AR (3 Month LIBOR +0.80%) 144A±		3.14			1-15-2028		1,340,000		1,337,768
Oaktree CLO Limited Series 15-1A Class A1R (3 Month LIBOR +0.87%) 144A±		3.22			10-20-2027		1,500,000		1,496,804
Octagon Investment Partners Series 2015-1A Class A1R (3 Month LIBOR +0.90%) 144A±		3.21			5-21-2027		2,000,000		1,998,618

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

Portfolio of investments—August 31, 2018 Wells Fargo Short-Term Bond Fund 19

Security name	Interest rate			Maturity date		Principal		Value
Non-Agency Mortgage-Backed Securities (continued)
Palmer Square Loan Funding Limited Series 2017-1A Class A1 (3 Month LIBOR +0.74%) 144A±		3.08	%		10-15-2025	$	1,804,738	$	1,798,031
RAIT Trust Series 2017-FL7 Class A (1 Month LIBOR +0.95%) 144A±		3.01			6-15-2037		745,865		746,229
RAIT Trust Series 2017-FL8 Class A (1 Month LIBOR +0.85%) 144A±		2.91			12-15-2037		1,329,010		1,329,008
ReadyCap Commercial Mortgage Trust Series 2017-FL1 Class A (1 Month LIBOR +0.85%) 144A±		2.91			5-25-2034		530,988		530,988
Regatta IV Funding Limited Series 2014-1A Class A2R (3 Month LIBOR +1.02%) 144A±		3.36			7-25-2026		1,755,000		1,755,156
SBA Tower Trust Series 2014-1A Class C 144A		2.90			10-15-2044		3,000,000		2,978,070
Stonemont Portfolio Trust Series 2017 Class A (1 Month LIBOR +0.85%) 144A±		2.93			8-20-2030		1,764,530		1,764,521
Wilshire Funding Corporation Series 1996-3 Class M2 ±±		7.12			8-25-2032		81,560		79,420
Wilshire Funding Corporation Series 1996-3 Class M3 ±±		7.12			8-25-2032		86,727		82,662
Wilshire Funding Corporation Series 1998-2 Class M1 ±±		2.00			12-28-2037		11,587		11,550
Wind River Collateralized Loan Obligation Limited Trust Series 2014-3A Class AR (3 Month LIBOR +1.10%) 144A±		3.45			1-22-2027		2,100,000		2,100,414
Total Non-Agency Mortgage-Backed Securities (Cost $65,800,451)									65,341,691
Yankee Corporate Bonds and Notes: 12.46%
Consumer Discretionary: 0.26%
Auto Components: 0.15%
IHO Verwaltungs GmbH 144A		4.13			9-15-2021		650,000		646,750
Automobiles: 0.11%
Jaguar Land Rover Limited 144A		4.25			11-15-2019		445,000		443,888
Consumer Staples: 0.68%
Beverages: 0.68%
Suntory Holdings Limited 144A		2.55			6-28-2022		2,975,000		2,859,332
Financials: 9.81%
Banks: 8.86%
Banco de Credito del Peru 144A		2.25			10-25-2019		1,500,000		1,477,500
Banco Internacional del Peru SAA Interbank 144A		3.38			1-18-2023		1,305,000		1,254,431
Banque Federative du Credit Mutuel SA 144A		2.20			7-20-2020		2,530,000		2,482,095
BPCE SA		2.50			7-15-2019		755,000		751,538
Commonwealth Bank of Australia 144A		1.75			11-7-2019		1,750,000		1,726,390
Cooperatieve Rabobank U.A.		2.75			1-10-2022		3,000,000		2,936,437
Corporacion Andina de Fomento		2.13			9-27-2021		3,000,000		2,886,900
Credit Suisse Group Funding Limited		3.13			12-10-2020		2,110,000		2,094,895
Danske Bank 144A		1.65			9-6-2019		3,000,000		2,959,773
Macquarie Bank Limited 144A		2.85			7-29-2020		3,000,000		2,972,512
Mitsubishi UFJ Trust and Banking Corporation 144A		2.45			10-16-2019		3,000,000		2,981,356
Nordea Bank Ab 144A		3.75			8-30-2023		2,000,000		1,991,502
Santander UK plc		2.50			3-14-2019		2,750,000		2,749,062
Sumitomo Mitsui Banking Corporation		2.09			10-18-2019		2,000,000		1,975,720
Svenska Handelsbanken AB		1.50			9-6-2019		2,605,000		2,569,718
Toronto Dominion Bank		1.45			9-6-2018		3,385,000		3,384,911
									37,194,740
Diversified Financial Services: 0.60%
UBS AG 144A		2.20			6-8-2020		1,275,000		1,252,083
UBS AG		2.38			8-14-2019		1,270,000		1,265,040
									2,517,123

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

20 Wells Fargo Short-Term Bond Fund Portfolio of investments—August 31, 2018

Security name	Interest rate			Maturity date		Principal		Value
Insurance: 0.35%
Sompo International Holdings Limited		4.70	%		10-15-2022	$	1,447,000	$	1,476,707
Health Care: 0.46%
Pharmaceuticals: 0.46%
Shire Acquisitions Investment Ireland Limited		1.90			9-23-2019		1,010,000		998,240
Shire Acquisitions Investment Ireland Limited		2.40			9-23-2021		980,000		946,981
									1,945,221
Industrials: 0.44%
Transportation Infrastructure: 0.44%
Asciano Finance Limited 144A		4.63			9-23-2020		1,821,000		1,844,952
Materials: 0.81%
Chemicals: 0.48%
Syngenta Finance NV 144A		3.93			4-23-2021		2,000,000		2,004,837
Metals & Mining: 0.33%
ArcelorMittal		5.50			3-1-2021		1,340,000		1,388,547
Total Yankee Corporate Bonds and Notes (Cost $52,957,195)									52,322,097
	Yield					Shares
Short-Term Investments: 5.51%
Commercial Paper: 1.83%
Baptist Memorial Health Care Facilities & Services		2.60			10-5-2018		1,500,000		1,499,370
Catholic Health Initiatives (p)(z)		1.97			9-14-2018		3,000,000		2,997,715
Michigan State University Board of Trustees Series B		2.40			9-10-2018		3,200,000		3,200,096
									7,697,181
Investment Companies: 3.53%
Wells Fargo Government Money Market Fund Select Class (l)(r)(u)		1.87					14,823,405		14,823,405
						Principal
U.S. Treasury Securities: 0.15%
U.S. Treasury Bill (z)#		1.31			9-13-2018	$	625,000		624,702
Total Short-Term Investments (Cost $23,145,817)									23,145,288

Total investments in securities (Cost $420,712,165)	99.54	%		418,055,332
Other assets and liabilities, net	0.46			1,919,491
Total net assets	100.00	%	$	419,974,823

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

Portfolio of investments—August 31, 2018 Wells Fargo Short-Term Bond Fund 21

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

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

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

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

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

(n) The auction to set the interest rate on the security failed at period end due to insufficient investor interest. A failed auction does not itself cause a default.

†† On the last interest date, partial interest was paid.

(p) Asset-backed commercial paper

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

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

(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.

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

Abbreviations:

AGM Assured Guaranty Municipal

Ambac Ambac Financial Group Incorporated

CLO Collateralized loan obligation

EDA Economic Development Authority

FDIC Federal Deposit Insurance Corporation

FHLMC Federal Home Loan Mortgage Corporation

FNMA Federal National Mortgage Association

GNMA Government National Mortgage Association

GO General obligation

IDA Industrial Development Authority

LIBOR London Interbank Offered Rate

LOC Letter of credit

PFA Public Finance Authority

SBA Small Business Authority

REIT Real estate investment trust

Futures Contracts

Description	Number of contracts		Expiration date		Notional cost			Notional value			Unrealized gains		Unrealized losses
Long
2-Year U.S. Treasury Notes		739		12-31-2018	$	156,161,388		$	156,194,579		$	33,191	$	0
Short
5-Year U.S. Treasury Notes		(186)		12-31-2018		(21,068,749	)		(21,092,110	)		0		(23,361	)
											$	33,191	$	(23,361	)

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

22 Wells Fargo Short-Term Bond Fund Portfolio of investments—August 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
Security Lending Cash Investment LLC*		1,127,387		118,238		1,245,625		0	$	0	$	0	$	914	$	0
Wells Fargo Government Money Market Fund Select Class		30,383,096		186,850,594		202,410,285		14,823,405		0		0		219,403		14,823,405		3.53	%
									$	0	$	0	$	220,317	$	14,823,405

* 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—August 31, 2018 Wells Fargo Short-Term Bond Fund 23

Assets
Investments in unaffiliated securities, at value (cost $405,888,760)	$	403,231,927
Investments in affiliated securities, at value (cost $14,823,405)		14,823,405
Cash		174
Principal paydown receivable		13,832
Receivable for Fund shares sold		275,353
Receivable for interest		2,588,799
Receivable for daily variation margin on open futures contracts		68,063
Prepaid expenses and other assets		34,731
Total assets		421,036,284
Liabilities
Payable for Fund shares redeemed		611,624
Dividends payable		184,649
Management fee payable		110,300
Administration fees payable		45,526
Payable for daily variation margin on open futures contracts		22,228
Distribution fee payable		6,121
Trustees’ fees and expenses payable		2,087
Accrued expenses and other liabilities		78,926
Total liabilities		1,061,461
Total net assets	$	419,974,823
NET ASSETS CONSIST OF
Paid-in capital	$	425,690,308
Undistributed net investment income		37,877
Accumulated net realized losses on investments		(3,106,359	)
Net unrealized losses on investments		(2,647,003	)
Total net assets	$	419,974,823
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	182,179,253
Shares outstanding – Class A1		21,062,959
Net asset value per share – Class A		$8.65
Maximum offering price per share – Class A2		$8.83
Net assets – Class C	$	8,587,774
Shares outstanding – Class C1		994,077
Net asset value per share – Class C		$8.64
Net assets – Class R6	$	2,552,599
Shares outstanding – Class R61		294,889
Net asset value per share – Class R6		$8.66
Net assets – Institutional Class	$	226,655,197
Shares outstanding – Institutional Class1		26,193,524
Net asset value per share – Institutional Class		$8.65

¹  The Fund has an unlimited number of authorized shares.

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

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

24 Wells Fargo Short-Term Bond Fund Statement of operations—year ended August 31, 2018

Investment income
Interest (net of foreign interest withholding taxes of $1,242)	$	10,564,748
Income from affiliated securities		220,317
Total investment income		10,785,065
Expenses
Management fee		1,568,099
Administration fees
Class A		330,412
Class C		15,613
Class R6		61	1
Institutional Class		185,248
Shareholder servicing fees
Class A		516,269
Class C		24,395
Distribution fee
Class C		73,186
Custody and accounting fees		42,246
Professional fees		54,253
Registration fees		78,866
Shareholder report expenses		47,909
Trustees’ fees and expenses		22,027
Other fees and expenses		13,235
Total expenses		2,971,819
Less: Fee waivers and/or expense reimbursements		(275,477	)
Net expenses		2,696,342
Net investment income		8,088,723
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized losses on:
Unaffiliated securities		(154,213	)
Futures contracts		(1,865,525	)
Net realized losses on investments		(2,019,738	)
Net change in unrealized gains (losses) on:
Unaffiliated securities		(4,293,133	)
Futures contracts		(91,470	)
Net change in unrealized gains (losses) on investments		(4,384,603	)
Net realized and unrealized gains (losses) on investments		(6,404,341	)
Net increase in net assets resulting from operations	$	1,684,382

¹  For the period from July 31, 2018 (commencement of operations) to August 31, 2018

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

Statement of changes in net assets Wells Fargo Short-Term Bond Fund 25

	Year ended August 31, 2018						Year ended August 31, 2017
Operations
Net investment income				$	8,088,723					$	7,341,144
Net realized losses on investments					(2,019,738	)					(292,973	)
Net change in unrealized gains (losses) on investments					(4,384,603	)					(686,076	)
Net increase in net assets resulting from operations					1,684,382						6,362,095
Distributions to shareholders from
Net investment income
Class A					(3,469,175	)					(3,318,768	)
Class C					(90,525	)					(75,709	)
Class R6					(4,529	)1					N/A
Institutional Class					(4,526,238	)					(3,946,663	)
Total distributions to shareholders					(8,090,467	)					(7,341,140	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		2,950,320			25,683,232			3,840,470			33,642,098
Class C		199,067			1,725,463			300,680			2,631,368
Class R6		295,683	1		2,557,641	1		N/A			N/A
Institutional Class		9,805,488			85,201,932			11,826,160			103,614,345
					115,168,268						139,887,811
Reinvestment of distributions
Class A		376,379			3,266,179			357,529			3,130,762
Class C		8,860			76,773			7,137			62,415
Class R6		517	1		4,475	1		N/A			N/A
Institutional Class		346,975			3,011,667			314,369			2,754,565
					6,359,094						5,947,742
Payment for shares redeemed
Class A		(8,005,429	)		(69,532,343	)		(10,195,238	)		(89,264,300	)
Class C		(510,548	)		(4,431,866	)		(630,122	)		(5,509,876	)
Class R6		(1,311	)1		(11,344	)1		N/A			N/A
Institutional Class		(10,231,298	)		(88,878,420	)		(14,653,735	)		(128,341,544	)
					(162,853,973	)					(223,115,720	)
Net decrease in net assets resulting from capital share transactions					(41,326,611	)					(77,280,167	)
Total decrease in net assets					(47,732,696	)					(78,259,212	)
Net assets
Beginning of period					467,707,519						545,966,731
End of period				$	419,974,823					$	467,707,519
Undistributed net investment income				$	37,877					$	39,621

¹  For the period from July 31, 2018 (commencement of operations) to August 31, 2018

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

26 Wells Fargo Short-Term Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended August 31
CLASS A	2018			2017			2016			2015			2014
Net asset value, beginning of period		$8.77			$8.78			$8.77			$8.82			$8.77
Net investment income		0.15			0.12			0.11			0.09			0.10
Net realized and unrealized gains (losses) on investments		(0.12	)		(0.01	)		0.04			(0.03	)		0.05
Total from investment operations		0.03			0.11			0.15			0.06			0.15
Distributions to shareholders from
Net investment income		(0.15	)		(0.12	)		(0.11	)		(0.09	)		(0.10	)
Net realized gains		0.00			0.00			(0.03	)		(0.02	)		0.00
Total distributions to shareholders		(0.15	)		(0.12	)		(0.14	)		(0.11	)		(0.10	)
Net asset value, end of period		$8.65			$8.77			$8.78			$8.77			$8.82
Total return1		0.31	%		1.25	%		1.77	%		0.66	%		1.72	%
Ratios to average net assets (annualized)
Gross expenses		0.82	%		0.81	%		0.81	%		0.80	%		0.82	%
Net expenses		0.72	%		0.72	%		0.72	%		0.74	%		0.78	%
Net investment income		1.68	%		1.35	%		1.29	%		1.00	%		1.12	%
Supplemental data
Portfolio turnover rate		43	%		50	%		59	%		57	%		70	%
Net assets, end of period (000s omitted)		$182,179			$225,797			$278,802			$65,454			$59,962

¹  Total return calculations do not include any sales charges.

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

Financial highlights Wells Fargo Short-Term Bond Fund 27

(For a share outstanding throughout each period)

	Year ended August 31
CLASS C	2018			2017			2016			2015			2014
Net asset value, beginning of period		$8.76			$8.77			$8.76			$8.81			$8.76
Net investment income		0.08			0.05			0.05			0.02			0.03
Net realized and unrealized gains (losses) on investments		(0.12	)		(0.01	)		0.04			(0.03	)		0.05
Total from investment operations		(0.04	)		0.04			0.09			(0.01	)		0.08
Distributions to shareholders from
Net investment income		(0.08	)		(0.05	)		(0.05	)		(0.02	)		(0.03	)
Net realized gains		0.00			0.00			(0.03	)		(0.02	)		0.00
Total distributions to shareholders		(0.08	)		(0.05	)		(0.08	)		(0.04	)		(0.03	)
Net asset value, end of period		$8.64			$8.76			$8.77			$8.76			$8.81
Total return1		(0.44	)%		0.49	%		1.01	%		(0.09	)%		0.97	%
Ratios to average net assets (annualized)
Gross expenses		1.57	%		1.56	%		1.56	%		1.55	%		1.57	%
Net expenses		1.47	%		1.47	%		1.47	%		1.49	%		1.53	%
Net investment income		0.93	%		0.61	%		0.53	%		0.25	%		0.37	%
Supplemental data
Portfolio turnover rate		43	%		50	%		59	%		57	%		70	%
Net assets, end of period (000s omitted)		$8,588			$11,361			$14,204			$11,508			$14,852

¹  Total return calculations do not include any sales charges.

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

28 Wells Fargo Short-Term Bond Fund Financial highlights

(For a share outstanding throughout each period)

CLASS R6	Year ended August 31 20181
Net asset value, beginning of period		$8.64
Net investment income		0.02	2
Net realized and unrealized gains (losses) on investments		0.02
Total from investment operations		0.04
Distributions to shareholders from
Net investment income		(0.02	)
Net asset value, end of period		$8.66
Total return		0.42	%
Ratios to average net assets (annualized)
Gross expenses		0.44	%
Net expenses		0.40	%
Net investment income		2.24	%
Supplemental data
Portfolio turnover rate		43	%
Net assets, end of period (000s omitted)		$2,553

¹  For the period from July 31, 2018 (commencement of class operations) to August 31, 2018

²  Calculated based upon average shares outstanding

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

Financial highlights Wells Fargo Short-Term Bond Fund 29

(For a share outstanding throughout each period)

	Year ended August 31
INSTITUTIONAL CLASS	2018			2017			2016			2015			2014
Net asset value, beginning of period		$8.78			$8.79			$8.77			$8.83			$8.77
Net investment income		0.17			0.14			0.13			0.11			0.12
Net realized and unrealized gains (losses) on investments		(0.13	)		(0.01	)		0.05			(0.04	)		0.07
Total from investment operations		0.04			0.13			0.18			0.07			0.19
Distributions to shareholders from
Net investment income		(0.17	)		(0.14	)		(0.13	)		(0.11	)		(0.13	)
Net realized gains		0.00			0.00			(0.03	)		(0.02	)		0.00
Total distributions to shareholders		(0.17	)		(0.14	)		(0.16	)		(0.13	)		(0.13	)
Net asset value, end of period		$8.65			$8.78			$8.79			$8.77			$8.83
Total return		0.46	%		1.49	%		2.14	%		0.82	%		2.15	%
Ratios to average net assets (annualized)
Gross expenses		0.49	%		0.48	%		0.48	%		0.47	%		0.49	%
Net expenses		0.46	%		0.48	%		0.48	%		0.47	%		0.47	%
Net investment income		1.95	%		1.59	%		1.51	%		1.26	%		1.42	%
Supplemental data
Portfolio turnover rate		43	%		50	%		59	%		57	%		70	%
Net assets, end of period (000s omitted)		$226,655			$230,549			$252,961			$306,832			$330,613

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

30 Wells Fargo Short-Term Bond Fund Notes to financial statements

1. ORGANIZATION

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

2. SIGNIFICANT ACCOUNTING POLICIES

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

Securities valuation

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

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

Equity securities and futures contracts 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

Notes to financial statements Wells Fargo Short-Term Bond Fund 31

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.

When-issued transactions

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

Futures contracts

The Fund is subject to interest rate risk in the normal course of pursuing its investment objectives. Futures contracts are agreements between the Fund and a counterparty to buy or sell a specific amount of a commodity, financial instrument or currency at specified price and on a specified date. The Fund may buy and sell futures contracts in order to gain exposure to, or protect against, changes in interest rates. The primary risks associated with the use of futures contracts are the imperfect correlation between changes in market values of securities held by the Fund and the prices of futures contracts, and the possibility of an illiquid market. Futures contracts are generally entered into on a regulated futures exchange and cleared through a clearinghouse associated with the exchange. With futures contracts, there is minimal counterparty risk to the Fund since futures contracts are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures contracts against default.

Upon entering into a futures contracts, the Fund is required to deposit either cash or securities (initial margin) with the broker in an amount equal to a certain percentage of the contract value. Subsequent payments (variation margin) are paid to or from the broker each day equal to the daily changes in the contract value. Such payments are recorded as unrealized gains or losses and, if any, shown as variation margin receivable (payable) in the Statement of Assets and Liabilities. Should the Fund fail to make requested variation margin payments, the broker can gain access to the initial margin to satisfy the Fund’s payment obligations. When the contracts are closed, a realized gain or loss is recorded in 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.

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.

Dividend income is recognized on the ex-dividend date.

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

Distributions to shareholders

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

32 Wells Fargo Short-Term Bond Fund Notes to financial statements

Federal and other taxes

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

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

As of August 31, 2018, the aggregate cost of all investments for federal income tax purposes was $420,721,995 and the unrealized gains (losses) consisted of:

Gross unrealized gains	$	519,745
Gross unrealized losses		(3,176,578	)
Net unrealized losses	$	(2,656,833	)

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 August 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
$(50)	$50

As of August 31, 2018, the Fund had capital loss carryforwards which consist of $170,149 in short-term capital losses and $1,246,541 in long-term capital losses.

As of August 31, 2018, the Fund had current year deferred post-October capital losses consisting of $744,588 in short-term losses and $935,251 in long-term losses which will be recognized on the first day of the following fiscal year.

Class allocations

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

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)

Notes to financial statements Wells Fargo Short-Term Bond Fund 33

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 August 31, 2018:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Agency securities	$	0	$	26,201,925	$	0	$	26,201,925
Asset-backed securities		0		48,386,229		0		48,386,229
Corporate bonds and notes		0		180,364,175		0		180,364,175
Municipal obligations		0		22,293,927		0		22,293,927
Non-agency mortgage-backed securities		0		65,341,691		0		65,341,691
Yankee corporate bonds and notes		0		52,322,097		0		52,322,097
Short-term investments
Commercial papers		0		7,697,181		0		7,697,181
Investment companies		14,823,405		0		0		14,823,405
U.S. Treasury securities		624,702		0		0		624,702
	$	15,448,107	$	402,607,225	$	0	$	418,055,332
Futures contracts		33,191		0		0		33,191
Total assets	$	15,481,298	$	402,607,225	$	0	$	418,088,523
Liabilities
Futures contracts	$	23,361	$	0	$	0	$	23,361
Total liabilities	$	23,361	$	0	$	0	$	23,361

Additional sector, industry or geographic detail is included in the Portfolio of Investments.

Futures contracts are reported at their cumulative unrealized gains (losses) at measurement date as reported in the table following the Portfolio of Investments. For futures contracts the current day’s variation margin is reported on the Statement of Assets and Liabilities. 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 August 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 and providing fund-level administrative services in connection with the Fund’s operations. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.35% and declining to 0.255% as the average daily net assets of the Fund increase. For the year ended August 31, 2018, the management fee was equivalent to an annual rate of 0.35% of the Fund’s average daily net assets.

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

34 Wells Fargo Short-Term Bond Fund Notes to financial statements

Administration fees

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

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

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. When each class of the Fund has exceeded its expense cap, Funds Management has waived fees and/or reimbursed expenses from fund level expenses on a proportionate basis and then from class specific expenses; otherwise, waivers and/or reimbursements are applied against class specific expenses before fund level expenses. Funds Management has committed through December 31, 2018 (December 31, 2019 for Class C) to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.72% for Class A shares, 1.47% for Class C shares, 0.40% for Class R6 shares, and 0.45% for Institutional Class shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Prior to February 28, 2018, the Fund’s expense was capped at 0.48% 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 August 31, 2018, Funds Distributor received $464 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 August 31, 2018.

Shareholder servicing fees

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

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

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 short-term securities, for the year ended August 31, 2018 were as follows:

Purchases at cost		Sales proceeds
U.S. government	Non-U.S. government	U.S. government	Non-U.S. government
$8,874,719	$209,316,943	$175,560	$180,044,529

Notes to financial statements Wells Fargo Short-Term Bond Fund 35

6. DERIVATIVE TRANSACTIONS

During the year ended August 31, 2018, the Fund entered into futures contracts to speculate on interest rates and to help manage the duration of the portfolio. The Fund had an average notional amount of $179,813,790 in long futures contracts and $28,834,314 in short future contracts during the year ended August 31, 2018.

7. BANK BORROWINGS

The Trust (excluding the money market funds), Wells Fargo Master Trust 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.

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

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid was $8,090,467 and $7,341,140 of ordinary income for the years ended August 31, 2018 and August 31, 2017, respectively.

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

Undistributed ordinary income	Unrealized losses	Post-October capital losses deferred	Capital loss carryforward
$317,427	$(2,751,734)	$(1,679,839)	$(1,416,690)

9. INDEMNIFICATION

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

10. NEW ACCOUNTING PRONOUNCEMENTS AND REGULATORY CHANGES

On August 17, 2018, the Securities and Exchange Commission (“SEC”) adopted Disclosure Update and Simplification, which amends certain disclosure requirements. The amendments are effective for filings subsequent to November 5, 2018. Management expects these amendments will impact the classification of disclosures in the financial statements.

In August 2018, FASB issued Accounting Standards Update (“ASU”) No. 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 updates the disclosure requirements for fair value measurements by modifying or removing certain disclosures and adding certain new disclosures. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. Management is currently evaluating the potential impact of this new guidance to the financial statements.

In March 2017, FASB issued ASU No. 2017-08, Premium Amortization on Purchased Callable Debt Securities. ASU 2017-08 shortens the amortization period for certain callable debt securities held at a premium. The amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 is effective for fiscal years beginning after December 15, 2018 and for interim periods within those fiscal years. Management is currently evaluating the potential impact of this new guidance to the financial statements.

36 Wells Fargo Short-Term Bond 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 Wells Fargo Short-Term Bond Fund (the “Fund”), including the portfolio of investments, as of August 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 August 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 August 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

October 26, 2018

Other information (unaudited) Wells Fargo Short-Term Bond Fund 37

TAX INFORMATION

For the fiscal year ended August 31, 2018, $6,694,700 has been designated as interest-related dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.

PROXY VOTING INFORMATION

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

PORTFOLIO HOLDINGS INFORMATION

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

38 Wells Fargo Short-Term Bond Fund Other information (unaudited)

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 154 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 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.	N/A
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 The Ruth Bancroft Garden (non-profit organization). She is also an inactive Chartered Financial Analyst.	N/A
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 (private school). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	CIGNA Corporation
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, since 2009	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.	N/A
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.	N/A

Other information (unaudited) Wells Fargo Short-Term Bond Fund 39

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.	N/A
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.	N/A
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.	N/A
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.	N/A
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, on the Board of Directors, Governance Committee and Finance Committee for the Minnesota Philanthropy Partners (Saint Paul Foundation) from 2012 to 2018, 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 the Board Chair of the Minnesota Wild Foundation since 2010.	N/A

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

40 Wells Fargo Short-Term Bond 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 Kymn3 (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.
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 77 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.

³  Alexander Kymn became the Secretary and Chief Legal Officer effective April 17, 2018.

Other information (unaudited) Wells Fargo Short-Term Bond Fund 41

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Wells Fargo Short-Term Bond Fund

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at an in-person meeting held on May 22-23, 2018 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for Wells Fargo Short-Term Bond Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Wells Capital Management Incorporated (the “Sub-Adviser”), an affiliate of Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”

At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at an in-person meeting in April 2018, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing investment performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.

In providing information to the Board, Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2018. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and investment performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.

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

Nature, extent and quality of services

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

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

42 Wells Fargo Short-Term Bond Fund Other information (unaudited)

Fund investment performance and expenses

The Board considered the investment performance results for the Fund over various time periods ended December 31, 2017. The Board considered these results in comparison to the investment performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the investment performance of the Fund (Class A) was higher than or in range of the average investment performance of the Universe for the three-, five-, and ten-year periods under review, but lower than the average investment performance of the Universe for the one-year period under review. The Board also noted that the investment performance of the Fund was higher than its benchmark index, the Bloomberg Barclays 1-3 Year US Government/Credit Index, for all periods under review.

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

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

Investment management and sub-advisory fee rates

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

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

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

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

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

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of both WFAM and Wells Fargo & Co. (“Wells Fargo”) as a whole, from providing services to the Fund and the fund family as a whole. The Board noted that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the WFAM and Wells Fargo profitability analysis.

Other information (unaudited) Wells Fargo Short-Term Bond Fund 43

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

Economies of scale

The Board considered the extent to which Funds Management may experience economies of scale in the provision of management services, and the extent to which scale benefits, if any, would be shared with shareholders. In particular, the Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size. It considered that, for a small fund or a fund that shrinks in size, breakpoints conversely can result in higher fee levels. The Board also considered that in addition to management fee breakpoints, competitive management fee rates set at the outset without regard to breakpoints and fee waiver and expense reimbursement arrangements, as well as investments in the business intended to enhance services available to Fund shareholders, are means of sharing potential economies of scale with shareholders of the Fund.

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

Other benefits to Funds Management and the Sub-Adviser

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

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

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

Conclusion

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

44 Wells Fargo Short-Term Bond Fund Appendix A (unaudited)

SALES CHARGE REDUCTIONS AND WAIVERS FOR CERTAIN INTERMEDIARIES

Ameriprise

Effective June 1, 2018, shareholders purchasing Fund shares through an Ameriprise Financial platform or account will be eligible only for the following Class A load waivers (front-end sales charge waivers), which may differ from those disclosed elsewhere in the Fund’s prospectus or Statement of Additional Information.

Front-end Sales Load Waivers on Class A Shares Available at Ameriprise Financial

• Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs or SAR-SEPs.

• Shares purchased through an Ameriprise Financial investment advisory program (if an Advisory or similar share class for such investment advisory program is not available)

• Shares purchased by third party investment advisors on behalf of their advisory clients through Ameriprise Financial’s platform (if an Advisory or similar share class for such investment advisory program is not available)

• Shares purchased through reinvestment of distributions and dividend reinvestment when purchasing shares of the same Fund (but not any other fund within the same fund family)

• Shares exchanged from Class C shares of the same fund in the month of or following the 10-year anniversary of the purchase date. To the extent that the Fund’s prospectus elsewhere provides for a waiver with respect to such shares following a shorter holding period, that waiver will apply to exchanges following such shorter period. To the extent that the Fund’s prospectus elsewhere provides for a waiver with respect to exchanges of Class C shares for load-waived shares, that waiver will also apply to such exchanges.

• Employees and registered representatives of Ameriprise Financial or its affiliates and their immediate family members

• Shares purchased by or through qualified accounts (including IRAs, Coverdell Education Savings Accounts, 401(k)s, 403(b) TSCAs subject to ERISA and defined benefit plans) that are held by a covered family member, defined as an Ameriprise financial advisor and/or the advisor’s spouse, advisor’s lineal ascendant (mother, father, grandmother, grandfather, great grandmother, great grandfather), advisor’s lineal descendant (son, step-son, daughter, step-daughter, grandson, granddaughter, great grandson, great granddaughter) or any spouse of a covered family member who is a lineal descendant

• Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (i.e. Rights of Reinstatement). Subject to the Fund’s policy regarding frequent purchases and redemptions of Fund shares, you may not be able to repurchase shares for the first 30 days after your redemption.

Automatic Exchange of Class C Shares Available at Ameriprise Financial

• Class C shares will automatically exchange to Class A shares in the month of the 10-year anniversary of the purchase date.

Merrill Lynch

Effective April 10, 2017, shareholders purchasing Fund shares through a Merrill Lynch platform or account will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ from those disclosed elsewhere in the Fund’s prospectus or Statement of Additional Information.

Front-end Sales Load Waivers on Class A Shares available at Merrill Lynch

• Employer-sponsored retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan

• Shares purchased by or through a 529 Plan

• Shares purchased through a Merrill Lynch affiliated investment advisory program

Appendix A (unaudited) Wells Fargo Short-Term Bond Fund 45

• Shares purchased by third party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform

• Shares of funds purchased through the Merrill Edge Self-Directed platform (if applicable)

• Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the fund family)

• Shares exchanged from Class C (i.e. level-load) shares of the same fund in the month of or following the 10-year anniversary of the purchase date

• Employees and registered representatives of Merrill Lynch or its affiliates and their family members, as defined by Merrill Lynch, which may differ from the definition of family member in the Fund’s prospectus.

• Directors or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in the Fund’s prospectus

• Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (known as Rights of Reinstatement). Subject to the Fund’s policy regarding frequent purchases and redemptions of Fund shares, you may not be able to repurchase shares for the first 30 days after your redemption.

CDSC Waivers on A, B and C Shares available at Merrill Lynch

• Death or disability of the shareholder

• Shares sold as part of a systematic withdrawal plan as described in the Fund’s prospectus

• Return of excess contributions from an IRA Account

• Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 70½

• Shares sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch

• Shares acquired through a right of reinstatement

• Shares held in retirement brokerage accounts, that are exchanged for a lower cost share class due to transfer to certain fee based accounts or platforms (applicable to A and C shares only)

Front-end load Discounts Available at Merrill Lynch: Breakpoints, Rights of Accumulation & Letters of Intent

• Breakpoints as described in the Fund’s prospectus

• Rights of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.

• Letters of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over a 13-month period of time (if applicable)

Morgan Stanley

Effective on or about July 1, 2018, shareholders purchasing Fund shares through a Morgan Stanley Wealth Management transactional brokerage account will be eligible only for the following Class A load waivers (front-end sales charge waivers), which may differ from and be more limited than those disclosed in the Fund’s prospectus or Statement of Additional Information.

Front-end Sales Load Waivers on Class A Shares Available at Morgan Stanley

• Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans.

• Morgan Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules

• Shares purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund

46 Wells Fargo Short-Term Bond Fund Appendix A (unaudited)

• Shares purchased through a Morgan Stanley self-directed brokerage account

• Class C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are exchanged to Class A shares of the same fund pursuant to Morgan Stanley Wealth Management’s share class exchange program.

• Shares purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred sales charge. This waiver is subject to the Fund’s policy regarding frequent purchases and redemption of Fund shares, as discussed under “Account Information—Frequent Purchases and Redemptions of Fund Shares” in the Fund’s prospectus.

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For more information

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

Wells Fargo Funds

P.O. Box 219967

Kansas City, MO 64121-9967

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 the trade name for certain investment advisory/management firms owned by Wells Fargo & Company. These firms include but are not limited to Wells Capital Management Incorporated and Wells Fargo Funds Management, LLC. Certain products managed by WFAM entities are distributed by Wells Fargo Funds Distributor, LLC (a broker/dealer and Member FINRA).

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.

315409 10-18 A221/AR221 08-18

Annual Report

August 31, 2018

Wells Fargo Short-Term High Yield Bond Fund

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Contents

Letter to shareholders	2
Performance highlights	6
Fund expenses	9
Portfolio of investments	10
Financial statements
Statement of assets and liabilities	18
Statement of operations	19
Statement of changes in net assets	20
Financial highlights	21
Notes to financial statements	25
Report of independent registered public accounting firm	30
Other information	31
Appendix A	38

The views expressed and any forward-looking statements are as of August 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 Short-Term High Yield Bond Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

After advancing during 2017, economic growth and stock markets globally diverged during the first eight months of 2018.

Dear Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Short-Term High Yield Bond Fund for the 12-month period that ended August 31, 2018. After advancing during 2017, economic growth and stock markets globally diverged during the first eight months of 2018. For fixed-income investors, taxable bond returns suffered and high-yield and municipal bond returns were positive.

For the period, U.S. stocks, as measured by the S&P 500 Index,¹ gained 19.66%, and international stocks, as measured by the MSCI ACWI ex USA Index (Net),² added 3.18%. Based on the MSCI EM Index (Net),³ emerging market stocks lost 0.68%. For bond investors, the Bloomberg Barclays U.S. Aggregate Bond Index⁴ declined 1.05% while the Bloomberg Barclays Global Aggregate ex-USD Index⁵ fell 1.64%. The Bloomberg Barclays Municipal Bond Index⁶ added 0.49%, and the ICE BofAML U.S. High Yield Index⁷ was up 3.26%.

Continued optimism in the U.S. characterized the fourth quarter of 2017.

Some observers described economic conditions in late 2017 as a Goldilocks scenario: synchronized global growth, low inflation, healthy corporate earnings, and a weaker U.S. dollar that supported international growth. During the quarter, the U.S. Bureau of Economic Analysis reported that annualized U.S. gross domestic product (GDP) growth for the third quarter of 2017 was 2.8% and inflation remained below U.S. Federal Reserve (Fed) targets. U.S. corporate earnings and consumer confidence improved.

Economic momentum increased in Europe. The Bank of England (BOE) raised interest rates in November 2017 to 0.50%, the first increase in more than 10 years, indicating confidence in the economy’s growth potential. Meanwhile, the European Central Bank and the Bank of Japan kept interest rates low to spur business activities and bought bonds in an effort to encourage equity investments. The People’s Bank of China’s (PBOC’s) policies sought to stimulate business. Many emerging market economies benefited from stronger currencies versus the U.S. dollar, while commodity price increases benefited countries that rely on natural resources for exports.

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 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.

⁶  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.

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 Short-Term High Yield Bond Fund 3

Volatility reemerged during the first quarter of 2018 as global tensions and inflation fears increased.

Stock market gains in January 2018 followed the passage of lower U.S. tax rates. Some investors then grew concerned about trade, particularly between the U.S. and China, and the specter of inflation. The Fed followed its 25-basis-point (bp; 100 bps equal 1.00%) federal funds rate increase in December 2017 with a further 25-bp increase in March 2018. The inflation rate in March reached the Fed’s 2% target for the first time in a year.

The S&P 500 Index closed the first quarter with a negative return, the first negative quarterly return for the index since 2014. Overseas investment markets reversed strong returns in 2017, hurt by a stronger U.S. dollar and mounting trade and diplomatic tensions. After gaining 27.19% for the 12-month period that ended December 31, 2017, the MSCI ACWI ex USA Index (Net) declined 1.81% for the quarter that ended March 31, 2018.

Global trade tensions escalated during the second quarter.

Global trade tensions escalated throughout the second quarter of 2018. The U.S. government imposed tariffs, and foreign governments in North America, Europe, and Asia retaliated. The escalating tensions chilled investment activity as observers awaited signals of next steps.

Meanwhile, inflation continued an upward trend. The CPI-U⁸ added 0.1% in June after increases of 0.2% in both April and May. On a year-over-year basis, the all-items index rose 2.9% for the 12 months that ended June 30, 2018. The index for all items less food and energy rose 2.3% for the same 12-month period.

U.S. stocks gained while international stocks and bonds declined during the summer of 2018.

The U.S. economy strengthened during the summer months. Revised second-quarter GDP data released in August showed the U.S. economy growing at a 4.2% rate. After ticking up slightly in June, the unemployment rate in the U.S. was 3.9% in July and August, according to the U.S. Department of Labor. Wages showed more consistent growth than they had in recent quarters, and consumer confidence remained strong.

Several U.S. equity market indices reached records during August, with the S&P 500 Index gaining 7.76% for the three-month period that ended August 31, 2018. International stock values continued to suffer under the effects of a strong U.S. dollar and continuing trade tensions. The MSCI ACWI ex USA Index (Net) and the MSCI EM Index (Net) were down 4.70% and 1.64%, respectively, during the same three-month period.

The Fed increased the federal funds rate in June, and expectations grew that two more rate increases were in the offing in 2018. Long-term interest rates in the U.S. remained at higher levels relative to the prior 10 years. Rates on 10-year and 30-year Treasury bonds—2.46% and 2.81%, respectively, on January 1, 2018—were 2.86% and 3.02%, respectively, on August 31, off their peak levels on May 17, 2018, of 3.11% and 3.25%, respectively. Some investors became more aware of and concerned about the potential for an inverted yield curve—sometimes a recession signal—as short-term rates increased more quickly than long-term rates. The Fed decided to forgo an interest rate increase at its August meeting.

The S&P 500 Index closed the first quarter with a negative return, the first negative quarterly return for the index since 2014.

⁸  The Consumer Price Index for All Urban Consumers (CPI-U) measures the changes in the price of a basket of goods and services purchased by urban consumers. The urban consumer population is deemed by many as a better representative measure of the general public because close to 90% of the country’s population lives in highly populated areas. You cannot invest directly in an index.

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

Internationally, members of Prime Minister Theresa May’s U.K./Brexit negotiating team resigned amid unproductive negotiations. In early August, the BOE’s Monetary Policy Committee increased its key interest rate to 0.75%. Central banks in Europe and Japan maintained low interest rates and accommodative monetary policies. Amid rising trade uncertainty, the PBOC cut reserve requirement ratios and accelerated infrastructure spending and tax cuts for business enterprises and individuals. Nevertheless, a strengthening U.S. dollar and the trade tensions remained headwinds for investors overseas.

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

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

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

Sincerely,

Andrew Owen

President

Wells Fargo Funds

Notice to shareholders

At a meeting held on August 14-15, 2018, the Board of Trustees of the Fund approved the following policy which will be effective on or about February 5, 2019:

Class C shares will convert automatically into Class A shares ten years after the initial date of purchase or, if you acquired your Class C shares through an exchange or conversion from another share class, ten years after the date you acquired your Class C shares. When Class C shares that you acquired through a purchase or exchange convert, any other Class C shares that you purchased with reinvested dividends and distributions also will convert into Class A shares on a pro rata basis. A shorter holding period may also apply depending on your intermediary. Please see “Appendix A—Sales Charge Reductions and Waivers for Certain Intermediaries” in the Fund’s prospectus or at the end of this report.

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

Investment objective

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

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Kevin J. Maas, CFA^®

Thomas M. Price, CFA^®

Michael J. Schueller, CFA^®

Average annual total returns (%) as of August 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 (SSTHX)	2-29-2000		(1.06	)		1.92		3.39		2.00		2.54		3.70		0.93		0.82
Class C (WFHYX)	3-31-2008		0.36			1.81		2.93		1.36		1.81		2.93		1.68		1.57
Administrator Class (WDHYX)	7-30-2010		–			–		–		2.16		2.73		3.83		0.87		0.66
Institutional Class (STYIX)	11-30-2012		–			–		–		2.31		2.89		3.90		0.60		0.51
ICE BofAML High Yield U.S. Corporates, Cash Pay, BB Rated, 1-5 Year Index4	–		–			–		–		2.04		4.52		6.97		–		–

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

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

For Class A shares, the maximum front-end sales charge is 3.00%. For Class C shares, the maximum contingent deferred sales charge is 1.00%. Performance including a contingent deferred sales charge assumes the sales charge for the corresponding time period. Administrator Class and Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.

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

Please see footnotes on page 7.

Performance highlights (unaudited) Wells Fargo Short-Term High Yield Bond Fund 7

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

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

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

³  The manager has contractually committed through December 31, 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 0.81% for Class A, 1.56% for Class C, 0.65% for Administrator Class, and 0.50% 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 ICE BofAML High Yield U.S. Corporates, Cash Pay, BB Rated, 1-5 Year Index is an unmanaged index that generally tracks the performance of BB rated U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market with maturities of one to five years. You cannot invest directly in an index. Copyright 2018. ICE Data Indices, LLC. All rights reserved.

⁵  The chart compares the performance of Class A shares for the most recent ten years with the performance of the ICE BofAML High Yield U.S. Corporates, Cash Pay, BB Rated, 1-5 Year 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 3.00%.

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

⁷  The credit quality distribution of portfolio holdings reflected in the chart is based on ratings from Standard & Poor’s, Moody’s Investors Service, and/or Fitch Ratings Ltd. Credit quality ratings apply to the underlying holdings of the Fund and not to the Fund itself. The percentages of the Fund’s portfolio with the ratings depicted in the chart are calculated based on the total market value of fixed income securities held by the Fund. If a security was rated by all three rating agencies, the middle rating was utilized. If rated by two of three rating agencies, the lower rating was utilized, and if rated by one of the rating agencies, that rating was utilized. Standard & Poor’s rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Ratings from A to CCC may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the rating categories. Standard & Poor’s rates the creditworthiness of short-term notes from SP-1 (highest) to SP-3 (lowest). Moody’s rates the creditworthiness of bonds, ranging from Aaa (highest) to C (lowest). Ratings Aa to B may be modified by the addition of a number 1 (highest) to 3 (lowest) to show relative standing within the ratings categories. Moody’s rates the creditworthiness of short-term U.S. tax-exempt municipal securities from MIG 1/VMIG 1 (highest) to SG (lowest). Fitch rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Credit quality distribution is subject to change and may have changed since the date specified.

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

MANAGER’S DISCUSSION

Fund highlights

∎ The Fund (Class A, excluding sales charges) underperformed its benchmark, the ICE BofAML High Yield U.S. Corporates, Cash Pay, BB Rated, 1-5 Year Index, by 4 basis points (bps; 100 bps equal 1.00%) for the 12-month period that ended August 31, 2018.

∎ The Fund is conservatively positioned relative to the benchmark, which detracted from performance as the Fund generated a lower yield than the index.

∎ The Fund focuses on conservative credit selection and seeks to limit volatility. The Fund has a lower duration than the index, which contributed to performance during a period of higher Treasury rates.

Ten largest holdings (%) as of August 31, 20186
Charter Communications Operating LLC, 4.98%, 4-30-2025	1.77
Ally Financial Incorporated, 3.75%, 11-18-2019	1.61
Virgin Media Bristol LLC, 4.56%, 1-15-2026	1.54
Ineos US Finance LLC, 4.17%, 3-31-2024	1.50
MGM Growth Properties LLC, 4.08%, 3-21-2025	1.46
Level 3 Financing Incorporated, 4.32%, 2-22-2024	1.43
Sprint Communications Incorporated, 9.00%, 11-15-2018	1.39
Equinix Incorporated, 5.38%, 1-1-2022	1.36
SBA Senior Finance II LLC, 4.08%, 4-11-2025	1.34
Service Corporation International, 5.38%, 1-15-2022	1.31

The Fund invests in shorter-duration and more-conservative securities relative to the index.

BB-rated high-yield credit spreads relative to U.S. Treasury yields were unchanged over the period. U.S. economic growth, continued relatively accommodative monetary policy by the U.S. Federal Reserve, and low default rates combined to create a supportive environment for high-yield spreads. Total returns for the high-yield market were limited relative to yields due to the impact of higher Treasury rates.

Our views on the economy, high-yield spreads, and default rates were largely accurate during the period. However, due to the Fund’s strategy of selecting higher-rated, short-term high-yield securities, our focus is on individual credit selection. The overall Fund positioning does not change significantly. Our exposure to

floating-rate bank loans did increase approximately 5% during the period as we looked to take advantage of increasing London Interbank Offered Rate levels. The increase in floating-rate holdings also allowed us to maintain an effective duration between 0.8 and 1.0 years during the period, which benefited returns relative to the index during a period of higher short-term Treasury rates.

Credit quality as of August 31, 2018⁷

We continued to adhere to the Fund’s basic portfolio strategy.

The Fund’s investments fit into three principal categories. The first category is composed of short-maturity bonds that we expect to be repaid on the maturity date. The second category is composed of bonds with high coupons that we expect to be refinanced on the call date. These two categories comprised 60% to 70% of the portfolio during the reporting period. The third category consists of floating-rate securities, primarily leveraged loans, which ranged from 29% to 34% of the portfolio.

Yields on the Fund’s leveraged-loan holdings were higher than on its fixed-rate holdings over the period, but the higher yield is appropriate for the greater spread risk, which is the price sensitivity to a change in credit spreads.

Conservative credit selection will likely continue to drive our selection process, and we monitor market conditions to determine the Fund’s floating-rate exposure. We intend to continue evaluating relative-value opportunities for the Fund in the upcoming period, but we do not expect significant changes to overall portfolio positioning.

Please see footnotes on page 7.

Fund expenses (unaudited) Wells Fargo Short-Term High Yield Bond Fund 9

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 March 1, 2018 to August 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 3-1-2018		Ending account value 8-31-2018		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,012.97	$	4.11		0.81	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.12	$	4.13		0.81	%
Class C
Actual	$	1,000.00	$	1,010.41	$	7.91		1.56	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.34	$	7.93		1.56	%
Administrator Class
Actual	$	1,000.00	$	1,013.79	$	3.30		0.65	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.93	$	3.31		0.65	%
Institutional Class
Actual	$	1,000.00	$	1,014.55	$	2.54		0.50	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.68	$	2.55		0.50	%

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

10 Wells Fargo Short-Term High Yield Bond Fund Portfolio of investments—August 31, 2018

Security name	Interest rate			Maturity date		Principal		Value
Corporate Bonds and Notes: 53.58%
Consumer Discretionary: 20.36%
Auto Components: 0.65%
American Axle & Manufacturing Incorporated		7.75	%		11-15-2019	$	4,080,000	$	4,284,000
Cooper Tire & Rubber Company		8.00			12-15-2019		2,568,000		2,704,130
									6,988,130
Diversified Consumer Services: 2.07%
Service Corporation International		5.38			1-15-2022		13,800,000		14,011,692
TRI Pointe Group Incorporated		4.38			6-15-2019		8,142,000		8,182,710
									22,194,402
Hotels, Restaurants & Leisure: 2.63%
GLP Capital LP/GLP Financing II Incorporated		4.88			11-1-2020		11,929,000		12,227,225
MGM Resorts International		5.25			3-31-2020		9,365,000		9,552,300
NCL Corporation Limited 144A		4.75			12-15-2021		6,382,000		6,421,888
									28,201,413
Household Durables: 2.34%
KB Home		4.75			5-15-2019		7,835,000		7,854,588
Lennar Corporation		4.50			6-15-2019		3,400,000		3,421,250
Lennar Corporation		6.63			5-1-2020		2,485,000		2,589,519
Pulte Group Incorporated		4.25			3-1-2021		11,145,000		11,204,069
									25,069,426
Internet & Direct Marketing Retail: 1.29%
Netflix Incorporated		5.38			2-1-2021		13,445,000		13,831,544
Media: 7.62%
Cable One Incorporated 144A		5.75			6-15-2022		10,268,000		10,447,690
DISH DBS Corporation		7.88			9-1-2019		11,065,000		11,438,444
LIN Television Corporation		5.88			11-15-2022		2,870,000		2,927,400
National CineMedia LLC		6.00			4-15-2022		10,175,000		10,327,625
Nexstar Broadcasting Group Incorporated 144A		6.13			2-15-2022		11,535,000		11,729,653
Outfront Media Capital Corporation		5.25			2-15-2022		10,515,000		10,567,470
Sinclair Television Group Incorporated		6.13			10-1-2022		13,200,000		13,532,640
TEGNA Incorporated		5.13			10-15-2019		6,174,000		6,174,000
TEGNA Incorporated		5.13			7-15-2020		4,505,000		4,544,419
									81,689,341
Specialty Retail: 2.82%
Gap Incorporated		5.95			4-12-2021		8,965,000		9,375,978
Group 1 Automotive Incorporated		5.00			6-1-2022		7,855,000		7,776,450
Penske Auto Group Incorporated		3.75			8-15-2020		1,905,000		1,881,188
Penske Auto Group Incorporated		5.75			10-1-2022		10,920,000		11,138,400
									30,172,016
Textiles, Apparel & Luxury Goods: 0.94%
The William Carter Company		5.25			8-15-2021		9,890,000		10,025,988

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

Portfolio of investments—August 31, 2018 Wells Fargo Short-Term High Yield Bond Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Consumer Staples: 2.26%
Food Products: 1.31%
B&G Foods Incorporated		4.63	%		6-1-2021	$	14,070,000	$	13,999,650
Personal Products: 0.95%
Edgewell Personal Care Company		4.70			5-19-2021		10,124,000		10,199,930
Energy: 4.79%
Oil, Gas & Consumable Fuels: 4.79%
DCP Midstream Operating LP		2.70			4-1-2019		9,700,000		9,639,375
DCP Midstream Operating LP 144A		5.35			3-15-2020		5,668,000		5,795,530
Rockies Express Pipeline LLC 144A		5.63			4-15-2020		3,190,000		3,289,688
Rockies Express Pipeline LLC 144A		6.00			1-15-2019		6,360,000		6,419,657
Sabine Pass Liquefaction LLC		5.63			2-1-2021		10,000,000		10,428,730
Southern Star Central Corporation 144A		5.13			7-15-2022		8,995,000		8,995,000
Targa Resources Partners LP		4.13			11-15-2019		6,720,000		6,725,376
									51,293,356
Financials: 5.41%
Banks: 0.49%
CIT Group Incorporated		3.88			2-19-2019		5,203,000		5,231,617
Consumer Finance: 4.02%
Ally Financial Incorporated		3.75			11-18-2019		17,160,000		17,224,350
Navient Corporation		5.50			1-15-2019		13,635,000		13,741,353
Springleaf Finance Corporation		5.25			12-15-2019		9,380,000		9,508,975
Toll Brothers Finance Corporation		4.00			12-31-2018		2,650,000		2,650,000
									43,124,678
Real Estate Management & Development: 0.90%
Realogy Group LLC «144A		5.25			12-1-2021		9,645,000		9,645,000
Health Care: 4.68%
Health Care Providers & Services: 4.68%
Acadia Healthcare Company Incorporated		5.13			7-1-2022		7,232,000		7,268,160
Acadia Healthcare Company Incorporated		6.13			3-15-2021		1,618,000		1,630,135
DaVita Incorporated		5.75			8-15-2022		7,755,000		7,861,631
HCA Incorporated		3.75			3-15-2019		4,030,000		4,044,105
HCA Incorporated		6.50			2-15-2020		4,120,000		4,276,560
Lifepoint Health Incorporated		5.50			12-1-2021		10,617,000		10,789,526
Select Medical Corporation		6.38			6-1-2021		5,345,000		5,398,450
Tenet Healthcare Corporation		6.00			10-1-2020		8,550,000		8,881,313
									50,149,880
Industrials: 5.28%
Aerospace & Defense: 2.07%
Alcoa Incorporated		6.15			8-15-2020		8,830,000		9,183,200
Moog Incorporated 144A		5.25			12-1-2022		12,865,000		13,041,894
									22,225,094

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

12 Wells Fargo Short-Term High Yield Bond Fund Portfolio of investments—August 31, 2018

Security name	Interest rate			Maturity date		Principal		Value
Commercial Services & Supplies: 1.05%
Clean Harbors Incorporated		5.13	%		6-1-2021	$	11,195,000	$	11,222,988
Machinery: 0.88%
CNH Industrial Capital LLC		4.38			11-6-2020		1,425,000		1,442,813
Enpro Industries Incorporated		5.88			9-15-2022		7,780,000		7,925,875
									9,368,688
Trading Companies & Distributors: 1.28%
HD Supply Incorporated 144A		5.75			4-15-2024		10,620,000		11,164,275
International Lease Finance Corporation		6.25			5-15-2019		2,500,000		2,555,341
									13,719,616
Information Technology: 3.38%
Electronic Equipment, Instruments & Components: 1.13%
Sanmina Corporation 144A		4.38			6-1-2019		12,100,000		12,151,425
Software: 0.44%
Symantec Corporation		4.20			9-15-2020		4,635,000		4,664,705
Technology Hardware, Storage & Peripherals: 1.81%
EMC Corporation		2.65			6-1-2020		11,850,000		11,587,506
NCR Corporation		4.63			2-15-2021		7,925,000		7,786,313
									19,373,819
Materials: 2.75%
Chemicals: 0.30%
Huntsman International LLC		4.88			11-15-2020		3,175,000		3,248,025
Containers & Packaging: 1.43%
Ball Corporation		4.38			12-15-2020		10,425,000		10,555,313
Reynolds Group Holdings		5.75			10-15-2020		4,768,010		4,773,970
									15,329,283
Metals & Mining: 1.02%
Freeport-McMoRan Incorporated		3.10			3-15-2020		1,840,000		1,824,636
Steel Dynamics Incorporated		5.13			10-1-2021		8,963,000		9,088,482
									10,913,118
Real Estate: 2.68%
Equity REITs: 1.91%
CoreCivic Incorporated		4.13			4-1-2020		2,545,000		2,551,363
Equinix Incorporated		5.38			1-1-2022		14,195,000		14,618,011
Sabra Health Care REIT Incorporated		5.50			2-1-2021		3,249,000		3,311,949
									20,481,323
Real Estate Management & Development: 0.77%
Taylor Morrison Communities Incorporated 144A		5.25			4-15-2021		8,285,000		8,274,644

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

Portfolio of investments—August 31, 2018 Wells Fargo Short-Term High Yield Bond Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Telecommunication Services: 1.51%
Diversified Telecommunication Services: 0.12%
Hughes Satellite Systems Corporation		6.50	%		6-15-2019	$	1,215,000	$	1,244,039
Wireless Telecommunication Services: 1.39%
Sprint Communications Incorporated 144A		9.00			11-15-2018		14,780,000		14,946,275
Utilities: 0.48%
Independent Power & Renewable Electricity Producers: 0.48%
NRG Energy Incorporated		6.25			7-15-2022		4,967,000		5,128,418
Total Corporate Bonds and Notes (Cost $581,069,649)									574,107,831
Loans: 32.79%
Consumer Discretionary: 4.65%
Auto Components: 0.92%
Allison Transmission Incorporated (1 Month LIBOR +1.75%) ±		3.82			9-23-2022		7,515,033		7,548,399
Belron Finance US LLC (3 Month LIBOR +2.50%) ±		4.84			11-7-2024		2,288,500		2,295,182
									9,843,581
Household Products: 1.44%
Michaels Stores Incorporated (1 Month LIBOR +2.50%) ±		4.57			1-28-2023		10,694,149		10,646,025
The ServiceMaster Company LLC (1 Month LIBOR +2.50%) ±		4.58			11-8-2023		4,828,273		4,829,143
									15,475,168
Media: 2.08%
Altice US Finance I Corporation (1 Month LIBOR +2.25%) ±		4.33			7-28-2025		10,395,000		10,373,378
CSC Holdings LLC (1 Month LIBOR +2.50%) ±		4.56			1-25-2026		11,902,170		11,905,146
									22,278,524
Specialty Retail: 0.21%
Sally Beauty Holdings LLC (1 Month LIBOR +2.25%) ±		4.33			7-5-2024		2,347,263		2,283,699
Consumer Staples: 1.71%
Food Products: 1.71%
Pinnacle Foods Finance LLC (1 Month LIBOR +1.75%) ±		3.83			2-2-2024		7,262,591		7,262,591
Post Holdings Incorporated (1 Month LIBOR +2.00%) ±		4.07			5-24-2024		11,063,250		11,050,527
									18,313,118
Financials: 3.02%
Diversified Consumer Services: 0.88%
TransUnion LLC (1 Month LIBOR +2.00%) ±		4.08			6-19-2025		9,395,000		9,424,406
Diversified Financial Services: 2.14%
Delos Finance SARL (3 Month LIBOR +1.75%) ±		4.08			10-6-2023		9,865,000		9,889,663
LPL Holdings Incorporated (1 Month LIBOR +2.25%) ±		4.48			9-23-2024		13,064,339		13,061,073
									22,950,736

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

14 Wells Fargo Short-Term High Yield Bond Fund Portfolio of investments—August 31, 2018

Security name		Interest rate			Maturity date		Principal		Value
Health Care: 2.55%
Health Care Providers & Services: 1.49%
HCA Incorporated (1 Month LIBOR +1.75%) ±			3.83	%		3-18-2023	$	10,082,574	$	10,124,618
Select Medical Corporation (1 Month LIBOR +2.75%) ±			4.82			3-1-2021		5,870,687		5,897,575
										16,022,193
Health Care Technology: 0.54%
Change Healthcare Holdings Incorporated (1 Month LIBOR +2.75%) ±			4.83			3-1-2024		5,772,138		5,773,754
Pharmaceuticals: 0.52%
Endo Finance LLC (1 Month LIBOR +4.25%) ±			6.38			4-29-2024		5,549,348		5,577,095
Industrials: 9.28%
Airlines: 0.73%
United Airlines Incorporated (1 Month LIBOR +1.75%) ±	��		3.83			4-1-2024		7,830,875		7,814,587
Commercial Services & Supplies: 3.98%
Advanced Disposal Services Incorporated (1 Month LIBOR +2.25%) ±			4.21			11-10-2023		12,373,687		12,392,247
Aramark Services Incorporated (3 Month LIBOR +1.75%) ±			4.08			3-28-2024		6,327,661		6,338,228
Aramark Services Incorporated (3 Month LIBOR +1.75%) ±			4.08			3-11-2025		6,344,100		6,352,030
KAR Auction Services Incorporated (1 Month LIBOR +2.25%) ±			4.38			3-11-2021		13,282,200		13,304,382
Sensata Technologies BV (1 Month LIBOR +1.75%) ±			3.82			10-14-2021		4,187,303		4,196,892
										42,583,779
Communications Equipment: 3.31%
Charter Communications Operating LLC (1 Month LIBOR +2.00%) ±			4.08			4-30-2025		19,019,425		19,019,425
Virgin Media Bristol LLC (1 Month LIBOR +2.50%) ±			4.56			1-15-2026		16,465,000		16,453,804
										35,473,229
Machinery: 1.26%
Columbus McKinnon Corporation (3 Month LIBOR +2.50%) ± ‡			4.83			1-31-2024		6,097,064		6,104,686
RBS Global Incorporated (1 Month LIBOR +2.00%) ±			4.06			8-21-2024		7,400,000		7,420,794
										13,525,480
Information Technology: 3.33%
Communications Equipment: 0.32%
CommScope Incorporated (1 Month LIBOR +2.00%) ±			4.08			12-29-2022		3,359,949		3,372,549
Electronic Equipment, Instruments & Components: 0.73%
Dell Incorporated (1 Month LIBOR +2.00%) ±			4.08			9-7-2023		2,654,203		2,653,088
Zebra Technologies Corporation (3 Month LIBOR +1.75%) ±			4.06			11-15-2021		5,158,404		5,182,030
										7,835,118
Internet Software & Services: 0.92%
Zayo Group LLC (1 Month LIBOR +2.25%) ±			4.33			1-19-2024		9,837,884		9,870,349
IT Services: 1.07%
First Data Corporation (1 Month LIBOR +2.00%) ±			4.07			7-8-2022		11,495,549		11,487,732

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

Portfolio of investments—August 31, 2018 Wells Fargo Short-Term High Yield Bond Fund 15

Security name	Interest rate			Maturity date		Principal		Value
Semiconductors & Semiconductor Equipment: 0.29%
Micron Technology Incorporated (1 Month LIBOR +1.75%) ±		3.83	%		4-26-2022	$	3,080,000	$	3,088,994
Materials: 4.02%
Chemicals: 2.03%
Ashland LLC (1 Month LIBOR +1.75%) ±		3.83			5-17-2024		5,687,550		5,694,659
Ineos US Finance LLC (3 Month LIBOR +2.00%) ±		4.17			3-31-2024		16,137,979		16,111,028
									21,805,687
Containers & Packaging: 1.99%
Berry Global Incorporated (2 Month LIBOR +1.75%) ±		3.94			2-8-2020		11,029,194		11,020,371
Reynolds Group Holdings Incorporated (1 Month LIBOR +2.75%) ±		4.83			2-5-2023		10,231,375		10,260,636
									21,281,007
Real Estate: 1.46%
Equity REITs: 1.46%
MGM Growth Properties LLC (1 Month LIBOR +2.00%) ±		4.08			3-21-2025		15,654,209		15,645,443
Telecommunication Services: 2.77%
Diversified Telecommunication Services: 1.43%
Level 3 Financing Incorporated (1 Month LIBOR +2.25%) ±		4.32			2-22-2024		15,258,850		15,273,651
Wireless Telecommunication Services: 1.34%
SBA Senior Finance II LLC (1 Month LIBOR +2.00%) ±		4.08			4-11-2025		14,437,500		14,385,381
Total Loans (Cost $352,370,521)									351,385,260
Non-Agency Mortgage-Backed Securities: 0.00%
Salomon Brothers Mortgage Securities VII Series 1994-5 Class B2 ±±		4.30			4-25-2024		27,041		24,221
Total Non-Agency Mortgage-Backed Securities (Cost $26,779)									24,221
Yankee Corporate Bonds and Notes: 8.76%
Consumer Discretionary: 3.68%
Auto Components: 1.20%
IHO Verwaltungs GmbH 144A		4.13			9-15-2021		12,890,000		12,825,550
Automobiles: 1.23%
Jaguar Land Rover Automotive plc 144A		4.13			12-15-2018		13,235,000		13,235,000
Hotels, Restaurants & Leisure: 1.25%
International Game Technology plc 144A		5.63			2-15-2020		13,120,000		13,349,600
Financials: 1.29%
Banks: 1.28%
Nielsen Holding and Finance BV 144A		5.50			10-1-2021		13,670,000		13,687,088
Diversified Financial Services: 0.01%
Virgin Media Finance plc		5.25			1-15-2021		75,000		76,781

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

16 Wells Fargo Short-Term High Yield Bond Fund Portfolio of investments—August 31, 2018

Security name	Interest rate			Maturity date		Principal		Value
Health Care: 2.36%
Pharmaceuticals: 2.36%
Bausch Health Companies Incorporated 144A		6.50	%		3-15-2022	$	11,695,000	$	12,104,325
Teva Pharmaceuticals Industries Incorporated		1.70			7-19-2019		13,458,000		13,230,107
									25,334,432
Information Technology: 0.47%
Communications Equipment: 0.29%
Nokia Corporation		5.38			5-15-2019		3,094,000		3,138,708
Semiconductors & Semiconductor Equipment: 0.18%
NXP BV/NXP Funding LLC 144A		4.13			6-15-2020		1,900,000		1,916,625
Materials: 0.96%
Metals & Mining: 0.96%
ArcelorMittal		5.50			3-1-2021		9,970,000		10,331,201
Total Yankee Corporate Bonds and Notes (Cost $95,114,532)									93,894,985
	Yield					Shares
Short-Term Investments: 4.53%
Investment Companies: 4.53%
Securities Lending Cash Investment LLC (l)(r)(u)		2.07					146,956		146,970
Wells Fargo Government Money Market Fund Select Class (l)(u)		1.87					48,392,907		48,392,907
Total Short-Term Investments (Cost $48,539,877)									48,539,877

Total investments in securities (Cost $1,077,121,358)	99.66	%		1,067,952,174
Other assets and liabilities, net	0.34			3,593,599
Total net assets	100.00	%	$	1,071,545,773

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

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

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

‡ Security is valued using significant unobservable inputs.

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

(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.

Abbreviations:

LIBOR London Interbank Offered Rate

REIT Real estate investment trust

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

Portfolio of investments—August 31, 2018 Wells Fargo Short-Term High Yield Bond 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		25,070,746		13,560,209		38,483,999		146,956	$	513	$	(513	)	$	38,797	$	146,970
Wells Fargo Government Money Market Fund Select Class		69,795,859		668,530,473		689,933,425		48,392,907		0		0			720,340		48,392,907
									$	513	$	(513	)	$	759,137	$	48,539,877		4.53	%

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

18 Wells Fargo Short-Term High Yield Bond Fund Statement of assets and liabilities—August 31, 2018

Assets
Investments in unaffiliated securities, (including $143,905 of securities loaned), at value (cost $1,028,581,481)	$	1,019,412,297
Investments in affiliated securities, at value (cost $48,539,877)		48,539,877
Receivable for investments sold		59,050
Principal paydown receivable		361
Receivable for Fund shares sold		1,940,455
Receivable for interest		10,198,778
Receivable for securities lending income		134
Prepaid expenses and other assets		7,942
Total assets		1,080,158,894
Liabilities
Payable for Fund shares redeemed		7,563,924
Management fee payable		374,497
Dividends payable		197,727
Payable upon receipt of securities loaned		146,970
Administration fees payable		96,814
Distribution fee payable		54,346
Trustees’ fees and expenses payable		2,019
Accrued expenses and other liabilities		176,824
Total liabilities		8,613,121
Total net assets	$	1,071,545,773
NET ASSETS CONSIST OF
Paid-in capital	$	1,115,456,923
Undistributed net investment income		7
Accumulated net realized losses on investments		(34,741,973	)
Net unrealized losses on investments		(9,169,184	)
Total net assets	$	1,071,545,773
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	127,024,000
Shares outstanding – Class A1		15,888,492
Net asset value per share – Class A		$7.99
Maximum offering price per share – Class A2		$8.24
Net assets – Class C	$	77,168,523
Shares outstanding – Class C1		9,649,351
Net asset value per share – Class C		$8.00
Net assets – Administrator Class	$	102,673,219
Shares outstanding – Administrator Class1		12,843,336
Net asset value per share – Administrator Class		$7.99
Net assets – Institutional Class	$	764,680,031
Shares outstanding – Institutional Class1		95,780,010
Net asset value per share – Institutional Class		$7.98

¹  The Fund has an unlimited number of authorized shares.

²  Maximum offering price is computed as 100/97 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 August 31, 2018 Wells Fargo Short-Term High Yield Bond Fund 19

Investment income
Interest	$	46,149,332
Income from affiliated securities		759,137
Total investment income		46,908,469
Expenses
Management fee		6,020,813
Administration fees
Class A		240,006
Class C		148,689
Administrator Class		113,817
Institutional Class		717,751
Shareholder servicing fees
Class A		375,009
Class C		232,327
Administrator Class		282,081
Distribution fee
Class C		696,980
Custody and accounting fees		90,634
Professional fees		60,411
Registration fees		134,927
Shareholder report expenses		104,493
Trustees’ fees and expenses		22,930
Other fees and expenses		25,409
Total expenses		9,266,277
Less: Fee waivers and/or expense reimbursements		(1,431,276	)
Net expenses		7,835,001
Net investment income		39,073,468
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		(3,236,382	)
Affiliated securities		513
Net realized losses on investments		(3,235,869	)
Net change in unrealized gains (losses) on:
Unaffiliated securities		(9,349,697	)
Affiliated securities		(513	)
Net change in unrealized gains (losses) on investments		(9,350,210	)
Net realized and unrealized gains (losses) on investments		(12,586,079	)
Net increase in net assets resulting from operations	$	26,487,389

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

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

	Year ended August 31, 2018						Year ended August 31, 2017
Operations
Net investment income				$	39,073,468					$	43,836,738
Net realized gains (losses) on investments					(3,235,869	)					802,646
Net change in unrealized gains (losses) on investments					(9,350,210	)					(6,629,131	)
Net increase in net assets resulting from operations					26,487,389						38,010,253
Distributions to shareholders from
Net investment income
Class A					(4,410,776	)					(6,731,705	)
Class C					(2,041,138	)					(2,509,379	)
Administrator Class					(3,531,933	)					(6,042,398	)
Institutional Class					(29,089,633	)					(28,553,188	)
Total distributions to shareholders					(39,073,480	)					(43,836,670	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		3,772,243			30,248,401			8,218,727			66,450,237
Class C		821,295			6,596,115			2,295,200			18,559,388
Administrator Class		4,344,267			34,806,968			10,857,614			87,797,670
Institutional Class		40,175,145			322,039,713			70,215,763			566,574,238
					393,691,197						739,381,533
Reinvestment of distributions
Class A		534,775			4,287,383			809,709			6,545,416
Class C		250,383			2,008,417			300,002			2,425,528
Administrator Class		424,158			3,399,349			692,079			5,593,836
Institutional Class		2,938,060			23,529,667			2,812,373			22,702,333
					33,224,816						37,267,113
Payment for shares redeemed
Class A		(9,754,483	)		(78,216,370	)		(24,321,739	)		(196,820,631	)
Class C		(5,207,987	)		(41,812,691	)		(4,080,018	)		(32,986,378	)
Administrator Class		(8,542,255	)		(68,570,248	)		(28,866,091	)		(232,943,723	)
Institutional Class		(72,766,723	)		(582,432,153	)		(38,479,828	)		(310,549,066	)
					(771,031,462	)					(773,299,798	)
Net increase (decrease) in net assets resulting from capital share transactions					(344,115,449	)					3,348,848
Total decrease in net assets					(356,701,540	)					(2,477,569	)
Net assets
Beginning of period					1,428,247,313						1,430,724,882
End of period				$	1,071,545,773					$	1,428,247,313
Undistributed net investment income				$	7					$	19

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

Financial highlights Wells Fargo Short-Term High Yield Bond Fund 21

(For a share outstanding throughout each period)

	Year ended August 31
CLASS A	2018			2017			2016			2015			2014
Net asset value, beginning of period		$8.07			$8.10			$8.07			$8.20			$8.21
Net investment income		0.24			0.23			0.24			0.25			0.27
Net realized and unrealized gains (losses) on investments		(0.08	)		(0.03	)		0.03			(0.13	)		0.01
Total from investment operations		0.16			0.20			0.27			0.12			0.28
Distributions to shareholders from
Net investment income		(0.24	)		(0.23	)		(0.24	)		(0.25	)		(0.27	)
Net realized gains		0.00			0.00			0.00			0.00			(0.02	)
Total distributions to shareholders		(0.24	)		(0.23	)		(0.24	)		(0.25	)		(0.29	)
Net asset value, end of period		$7.99			$8.07			$8.10			$8.07			$8.20
Total return1		2.00	%		2.51	%		3.37	%		1.46	%		3.40	%
Ratios to average net assets (annualized)
Gross expenses		0.93	%		0.92	%		0.92	%		0.92	%		0.91	%
Net expenses		0.81	%		0.81	%		0.81	%		0.81	%		0.81	%
Net investment income		2.96	%		2.88	%		2.95	%		3.11	%		3.27	%
Supplemental data
Portfolio turnover rate		34	%		35	%		32	%		40	%		28	%
Net assets, end of period (000s omitted)		$127,024			$172,151			$296,817			$203,856			$276,436

¹  Total return calculations do not include any sales charges.

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

22 Wells Fargo Short-Term High Yield Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended August 31
CLASS C	2018			2017			2016			2015			2014
Net asset value, beginning of period		$8.07			$8.10			$8.07			$8.20			$8.21
Net investment income		0.18			0.17			0.18			0.19			0.21
Net realized and unrealized gains (losses) on investments		(0.07	)		(0.03	)		0.03			(0.13	)		0.01
Total from investment operations		0.11			0.14			0.21			0.06			0.22
Distributions to shareholders from
Net investment income		(0.18	)		(0.17	)		(0.18	)		(0.19	)		(0.21	)
Net realized gains		0.00			0.00			0.00			0.00			(0.02	)
Total distributions to shareholders		(0.18	)		(0.17	)		(0.18	)		(0.19	)		(0.23	)
Net asset value, end of period		$8.00			$8.07			$8.10			$8.07			$8.20
Total return1		1.36	%		1.75	%		2.60	%		0.70	%		2.62	%
Ratios to average net assets (annualized)
Gross expenses		1.68	%		1.67	%		1.67	%		1.67	%		1.66	%
Net expenses		1.56	%		1.56	%		1.56	%		1.56	%		1.56	%
Net investment income		2.21	%		2.11	%		2.20	%		2.36	%		2.52	%
Supplemental data
Portfolio turnover rate		34	%		35	%		32	%		40	%		28	%
Net assets, end of period (000s omitted)		$77,169			$111,268			$123,745			$123,521			$143,444

¹  Total return calculations do not include any sales charges.

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

Financial highlights Wells Fargo Short-Term High Yield Bond Fund 23

(For a share outstanding throughout each period)

	Year ended August 31
ADMINISTRATOR CLASS	2018			2017			2016			2015			2014
Net asset value, beginning of period		$8.07			$8.10			$8.07			$8.20			$8.20
Net investment income		0.25			0.24			0.25			0.26			0.28
Net realized and unrealized gains (losses) on investments		(0.08	)		(0.03	)		0.03			(0.13	)		0.02
Total from investment operations		0.17			0.21			0.28			0.13			0.30
Distributions to shareholders from
Net investment income		(0.25	)		(0.24	)		(0.25	)		(0.26	)		(0.28	)
Net realized gains		0.00			0.00			0.00			0.00			(0.02	)
Total distributions to shareholders		(0.25	)		(0.24	)		(0.25	)		(0.26	)		(0.30	)
Net asset value, end of period		$7.99			$8.07			$8.10			$8.07			$8.20
Total return		2.16	%		2.68	%		3.54	%		1.62	%		3.69	%
Ratios to average net assets (annualized)
Gross expenses		0.86	%		0.86	%		0.86	%		0.85	%		0.84	%
Net expenses		0.65	%		0.65	%		0.65	%		0.65	%		0.65	%
Net investment income		3.13	%		3.03	%		3.11	%		3.28	%		3.44	%
Supplemental data
Portfolio turnover rate		34	%		35	%		32	%		40	%		28	%
Net assets, end of period (000s omitted)		$102,673			$134,070			$274,878			$328,934			$509,059

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

24 Wells Fargo Short-Term High Yield Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended August 31
INSTITUTIONAL CLASS	2018			2017			2016			2015			2014
Net asset value, beginning of period		$8.06			$8.09			$8.06			$8.18			$8.19
Net investment income		0.27			0.25			0.26			0.28			0.29
Net realized and unrealized gains (losses) on investments		(0.08	)		(0.02	)		0.03			(0.13	)		0.01
Total from investment operations		0.19			0.23			0.29			0.15			0.30
Distributions to shareholders from
Net investment income		(0.27	)		(0.26	)		(0.26	)		(0.27	)		(0.29	)
Net realized gains		0.00			0.00			0.00			0.00			(0.02	)
Total distributions to shareholders		(0.27	)		(0.26	)		(0.26	)		(0.27	)		(0.31	)
Net asset value, end of period		$7.98			$8.06			$8.09			$8.06			$8.18
Total return		2.31	%		2.83	%		3.69	%		1.90	%		3.72	%
Ratios to average net assets (annualized)
Gross expenses		0.59	%		0.59	%		0.59	%		0.59	%		0.58	%
Net expenses		0.50	%		0.50	%		0.50	%		0.50	%		0.50	%
Net investment income		3.27	%		3.16	%		3.26	%		3.40	%		3.58	%
Supplemental data
Portfolio turnover rate		34	%		35	%		32	%		40	%		28	%
Net assets, end of period (000s omitted)		$764,680			$1,010,757			$735,285			$608,704			$540,824

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

Notes to financial statements Wells Fargo Short-Term High Yield Bond Fund 25

1. ORGANIZATION

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

2. SIGNIFICANT ACCOUNTING POLICIES

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

Securities valuation

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

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

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.

26 Wells Fargo Short-Term High Yield Bond Fund Notes to financial statements

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

Loans

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

Security transactions and income recognition

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

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

Distributions to shareholders

Distributions to shareholders from net investment income are declared daily and paid monthly. Distributions from net realized gains, if any, 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 August 31, 2018, the aggregate cost of all investments for federal income tax purposes was $1,077,126,157 and the unrealized gains (losses) consisted of:

Gross unrealized gains	$	281,241
Gross unrealized losses		(9,455,224	)
Net unrealized losses	$	(9,173,983	)

Notes to financial statements Wells Fargo Short-Term High Yield Bond Fund 27

As of August 31, 2018, the Fund had capital loss carryforwards available to offset future net realized capital gains which consist of $11,356,983 in short-term capital losses and $23,380,190 in long-term capital losses.

Class allocations

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

3. FAIR VALUATION MEASUREMENTS

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

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

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

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

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

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

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Corporate bonds and notes	$	0	$	574,107,831	$	0	$	574,107,831
Loans		0		345,280,574		6,104,686		351,385,260
Non-agency mortgage-backed securities		0		24,221		0		24,221
Yankee corporate bonds and notes		0		93,894,985		0		93,894,985
Short-term investments
Investment companies		48,392,907		0		0		48,392,907
Investments measured at net asset value*								146,970
Total assets	$	48,392,907	$	1,013,307,611	$	6,104,686	$	1,067,952,174

* 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 $146,970 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

Additional sector, industry or geographic detail is included in the Portfolio of Investments.

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

28 Wells Fargo Short-Term High Yield Bond Fund Notes to financial statements

management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the subadviser and providing fund-level administrative services in connection with the Fund’s operations. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.50% and declining to 0.38% as the average daily net assets of the Fund increase. For the year ended August 31, 2018, the management fee was equivalent to an annual rate of 0.48% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. WellsCap is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.35% and declining to 0.20% as the average daily net assets of the Fund increase.

Administration fees

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

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

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. When each class of the Fund has exceeded its expense cap, Funds Management has waived fees and/or reimbursed expenses from fund level expenses on a proportionate basis and then from class specific expenses; otherwise, waivers and/or reimbursements are applied against class specific expenses before fund level expenses. Funds Management has committed through December 31, 2018 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.81% for Class A shares, 1.56% for Class C shares, 0.65% for Administrator Class shares, and 0.50% for Institutional Class shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

Distribution fee

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

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the year ended August 31, 2018, Funds Distributor received $1,593 from the sale of Class A shares and $150 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 August 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 Short-Term High Yield Bond Fund 29

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended August 31, 2018 were $404,734,481 and $558,284,572, respectively.

6. BANK BORROWINGS

The Trust (excluding the money market funds), Wells Fargo Master Trust 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.

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

7. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid was $39,073,480 and $43,836,670 of ordinary income for the years ended August 31, 2018 and August 31, 2017, respectively.

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

Undistributed ordinary income	Unrealized losses	Capital loss carryforward
$197,733	$(9,173,983)	$(34,737,173)

8. INDEMNIFICATION

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

9. NEW ACCOUNTING PRONOUNCEMENTS AND REGULATORY CHANGES

On August 17, 2018, the Securities and Exchange Commission (“SEC”) adopted Disclosure Update and Simplification, which amends certain disclosure requirements. The amendments are effective for filings subsequent to November 5, 2018. Management expects these amendments will impact the classification of disclosures in the financial statements.

In August 2018, FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 updates the disclosure requirements for fair value measurements by modifying or removing certain disclosures and adding certain new disclosures. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. Management is currently evaluating the potential impact of this new guidance to the financial statements.

In March 2017, FASB issued ASU No. 2017-08, Premium Amortization on Purchased Callable Debt Securities. ASU 2017-08 shortens the amortization period for certain callable debt securities held at a premium. The amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 is effective for fiscal years beginning after December 15, 2018 and for interim periods within those fiscal years. Management is currently evaluating the potential impact of this new guidance to the financial statements.

30 Wells Fargo Short-Term High Yield Bond 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 Wells Fargo Short-Term High Yield Bond Fund (the “Fund”), including the portfolio of investments, as of August 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 August 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 August 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

October 26, 2018

Other information (unaudited) Wells Fargo Short-Term High Yield Bond Fund 31

TAX INFORMATION

For the fiscal year ended August 31, 2018, $22,400,790 has been designated as interest-related dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.

PROXY VOTING INFORMATION

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

PORTFOLIO HOLDINGS INFORMATION

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

32 Wells Fargo Short-Term High Yield Bond Fund Other information (unaudited)

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 154 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 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.	N/A
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 The Ruth Bancroft Garden (non-profit organization). She is also an inactive Chartered Financial Analyst.	N/A
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 (private school). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	CIGNA Corporation
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, since 2009	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.	N/A
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.	N/A

Other information (unaudited) Wells Fargo Short-Term High Yield Bond 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.	N/A
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.	N/A
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.	N/A
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.	N/A
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, on the Board of Directors, Governance Committee and Finance Committee for the Minnesota Philanthropy Partners (Saint Paul Foundation) from 2012 to 2018, 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 the Board Chair of the Minnesota Wild Foundation since 2010.	N/A

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

34 Wells Fargo Short-Term High Yield Bond 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 Kymn3 (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.
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 77 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.

³  Alexander Kymn became the Secretary and Chief Legal Officer effective April 17, 2018.

Other information (unaudited) Wells Fargo Short-Term High Yield Bond Fund 35

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Wells Fargo Short-Term High Yield Bond Fund

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at an in-person meeting held on May 22-23, 2018 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for Wells Fargo Short-Term High Yield Bond Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Wells Capital Management Incorporated (the “Sub-Adviser”), an affiliate of Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”

At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at an in-person meeting in April 2018, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing investment performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.

In providing information to the Board, Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2018. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and investment performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.

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

Nature, extent and quality of services

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

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

36 Wells Fargo Short-Term High Yield Bond Fund Other information (unaudited)

Fund investment performance and expenses

The Board considered the investment performance results for the Fund over various time periods ended December 31, 2017. The Board considered these results in comparison to the investment performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the investment performance of the Fund (Class A) was lower than the average investment performance of the Universe for all periods under review. The Board also noted that the investment performance of the Fund was lower than its benchmark index, the ICE BofAML 1-5 Year BB Cash Pay High Yield Index, for all periods under review.

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

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

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

Investment management and sub-advisory fee rates

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

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

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

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

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

Other information (unaudited) Wells Fargo Short-Term High Yield Bond Fund 37

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of both WFAM and Wells Fargo & Co. (“Wells Fargo”) as a whole, from providing services to the Fund and the fund family as a whole. The Board noted that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the WFAM and Wells Fargo profitability analysis.

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

Economies of scale

The Board considered the extent to which Funds Management may experience economies of scale in the provision of management services, and the extent to which scale benefits, if any, would be shared with shareholders. In particular, the Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size. It considered that, for a small fund or a fund that shrinks in size, breakpoints conversely can result in higher fee levels. The Board also considered that in addition to management fee breakpoints, competitive management fee rates set at the outset without regard to breakpoints and fee waiver and expense reimbursement arrangements, as well as investments in the business intended to enhance services available to Fund shareholders, are means of sharing potential economies of scale with shareholders of the Fund.

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

Other benefits to Funds Management and the Sub-Adviser

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

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

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

Conclusion

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

38 Wells Fargo Short-Term High Yield Bond Fund Appendix A (unaudited)

SALES CHARGE REDUCTIONS AND WAIVERS FOR CERTAIN INTERMEDIARIES

Ameriprise

Effective June 1, 2018, shareholders purchasing Fund shares through an Ameriprise Financial platform or account will be eligible only for the following Class A load waivers (front-end sales charge waivers), which may differ from those disclosed elsewhere in the Fund’s prospectus or Statement of Additional Information.

Front-end Sales Load Waivers on Class A Shares Available at Ameriprise Financial

• Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs or SAR-SEPs.

• Shares purchased through an Ameriprise Financial investment advisory program (if an Advisory or similar share class for such investment advisory program is not available)

• Shares purchased by third party investment advisors on behalf of their advisory clients through Ameriprise Financial’s platform (if an Advisory or similar share class for such investment advisory program is not available)

• Shares purchased through reinvestment of distributions and dividend reinvestment when purchasing shares of the same Fund (but not any other fund within the same fund family)

• Shares exchanged from Class C shares of the same fund in the month of or following the 10-year anniversary of the purchase date. To the extent that the Fund’s prospectus elsewhere provides for a waiver with respect to such shares following a shorter holding period, that waiver will apply to exchanges following such shorter period. To the extent that the Fund’s prospectus elsewhere provides for a waiver with respect to exchanges of Class C shares for load-waived shares, that waiver will also apply to such exchanges.

• Employees and registered representatives of Ameriprise Financial or its affiliates and their immediate family members

• Shares purchased by or through qualified accounts (including IRAs, Coverdell Education Savings Accounts, 401(k)s, 403(b) TSCAs subject to ERISA and defined benefit plans) that are held by a covered family member, defined as an Ameriprise financial advisor and/or the advisor’s spouse, advisor’s lineal ascendant (mother, father, grandmother, grandfather, great grandmother, great grandfather), advisor’s lineal descendant (son, step-son, daughter, step-daughter, grandson, granddaughter, great grandson, great granddaughter) or any spouse of a covered family member who is a lineal descendant

• Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (i.e. Rights of Reinstatement). Subject to the Fund’s policy regarding frequent purchases and redemptions of Fund shares, you may not be able to repurchase shares for the first 30 days after your redemption.

Automatic Exchange of Class C Shares Available at Ameriprise Financial

• Class C shares will automatically exchange to Class A shares in the month of the 10-year anniversary of the purchase date.

Merrill Lynch

Effective April 10, 2017, shareholders purchasing Fund shares through a Merrill Lynch platform or account will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ from those disclosed elsewhere in the Fund’s prospectus or Statement of Additional Information.

Front-end Sales Load Waivers on Class A Shares available at Merrill Lynch

• Employer-sponsored retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan

• Shares purchased by or through a 529 Plan

• Shares purchased through a Merrill Lynch affiliated investment advisory program

Appendix A (unaudited) Wells Fargo Short-Term High Yield Bond Fund 39

• Shares purchased by third party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform

• Shares of funds purchased through the Merrill Edge Self-Directed platform (if applicable)

• Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the fund family)

• Shares exchanged from Class C (i.e. level-load) shares of the same fund in the month of or following the 10-year anniversary of the purchase date

• Employees and registered representatives of Merrill Lynch or its affiliates and their family members, as defined by Merrill Lynch, which may differ from the definition of family member in the Fund’s prospectus.

• Directors or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in the Fund’s prospectus

• Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (known as Rights of Reinstatement). Subject to the Fund’s policy regarding frequent purchases and redemptions of Fund shares, you may not be able to repurchase shares for the first 30 days after your redemption.

CDSC Waivers on A, B and C Shares available at Merrill Lynch

• Death or disability of the shareholder

• Shares sold as part of a systematic withdrawal plan as described in the Fund’s prospectus

• Return of excess contributions from an IRA Account

• Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 70½

• Shares sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch

• Shares acquired through a right of reinstatement

• Shares held in retirement brokerage accounts, that are exchanged for a lower cost share class due to transfer to certain fee based accounts or platforms (applicable to A and C shares only)

Front-end load Discounts Available at Merrill Lynch: Breakpoints, Rights of Accumulation & Letters of Intent

• Breakpoints as described in the Fund’s prospectus

• Rights of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.

• Letters of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over a 13-month period of time (if applicable)

Morgan Stanley

Effective on or about July 1, 2018, shareholders purchasing Fund shares through a Morgan Stanley Wealth Management transactional brokerage account will be eligible only for the following Class A load waivers (front-end sales charge waivers), which may differ from and be more limited than those disclosed in the Fund’s prospectus or Statement of Additional Information.

Front-end Sales Load Waivers on Class A Shares Available at Morgan Stanley

• Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans.

• Morgan Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules

• Shares purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund

• Shares purchased through a Morgan Stanley self-directed brokerage account

40 Wells Fargo Short-Term High Yield Bond Fund Appendix A (unaudited)

• Class C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are exchanged to Class A shares of the same fund pursuant to Morgan Stanley Wealth Management’s share class exchange program.

• Shares purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred sales charge. This waiver is subject to the Fund’s policy regarding frequent purchases and redemption of Fund shares, as discussed under “Account Information—Frequent Purchases and Redemptions of Fund Shares” in the Fund’s prospectus.

For more information

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

Wells Fargo Funds

P.O. Box 219967

Kansas City, MO 64121-9967

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 the trade name for certain investment advisory/management firms owned by Wells Fargo & Company. These firms include but are not limited to Wells Capital Management Incorporated and Wells Fargo Funds Management, LLC. Certain products managed by WFAM entities are distributed by Wells Fargo Funds Distributor, LLC (a broker/dealer and Member FINRA).

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.

315410 10-18 A222/AR222 08-18

Annual Report

August 31, 2018

Wells Fargo Ultra Short-Term Income Fund

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Contents

Letter to shareholders	2
Performance highlights	6
Fund expenses	10
Portfolio of investments	11
Financial statements
Statement of assets and liabilities	24
Statement of operations	25
Statement of changes in net assets	26
Financial highlights	27
Notes to financial statements	31
Report of independent registered public accounting firm	37
Other information	38
Appendix A	45

The views expressed and any forward-looking statements are as of August 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 Ultra Short-Term Income Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

After advancing during 2017, economic growth and stock markets globally diverged during the first eight months of 2018.

Dear Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Ultra Short-Term Income Fund for the 12-month period that ended August 31, 2018. After advancing during 2017, economic growth and stock markets globally diverged during the first eight months of 2018. For fixed-income investors, taxable bond returns suffered and high-yield and municipal bond returns were positive.

For the period, U.S. stocks, as measured by the S&P 500 Index,¹ gained 19.66%, and international stocks, as measured by the MSCI ACWI ex USA Index (Net),² added 3.18%. Based on the MSCI EM Index (Net),³ emerging market stocks lost 0.68%. For bond investors, the Bloomberg Barclays U.S. Aggregate Bond Index⁴ declined 1.05% while the Bloomberg Barclays Global Aggregate ex-USD Index⁵ fell 1.64%. The Bloomberg Barclays Municipal Bond Index⁶ added 0.49%, and the ICE BofAML U.S. High Yield Index⁷ was up 3.26%.

Continued optimism in the U.S. characterized the fourth quarter of 2017.

Some observers described economic conditions in late 2017 as a Goldilocks scenario: synchronized global growth, low inflation, healthy corporate earnings, and a weaker U.S. dollar that supported international growth. During the quarter, the U.S. Bureau of Economic Analysis reported that annualized U.S. gross domestic product (GDP) growth for the third quarter of 2017 was 2.8% and inflation remained below U.S. Federal Reserve (Fed) targets. U.S. corporate earnings and consumer confidence improved.

Economic momentum increased in Europe. The Bank of England (BOE) raised interest rates in November 2017 to 0.50%, the first increase in more than 10 years, indicating confidence in the economy’s growth potential. Meanwhile, the European Central Bank and the Bank of Japan kept interest rates low to spur business activities and bought bonds in an effort to encourage equity investments. The People’s Bank of China’s (PBOC’s) policies sought to stimulate business. Many emerging market economies benefited from stronger currencies versus the U.S. dollar, while commodity price increases benefited countries that rely on natural resources for exports.

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 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.

⁶  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.

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 Ultra Short-Term Income Fund 3

Volatility reemerged during the first quarter of 2018 as global tensions and inflation fears increased.

Stock market gains in January 2018 followed the passage of lower U.S. tax rates. Some investors then grew concerned about trade, particularly between the U.S. and China, and the specter of inflation. The Fed followed its 25-basis-point (bp; 100 bps equal 1.00%) federal funds rate increase in December 2017 with a further 25-bp increase in March 2018. The inflation rate in March reached the Fed’s 2% target for the first time in a year.

The S&P 500 Index closed the first quarter with a negative return, the first negative quarterly return for the index since 2014. Overseas investment markets reversed strong returns in 2017, hurt by a stronger U.S. dollar and mounting trade and diplomatic tensions. After gaining 27.19% for the 12-month period that ended December 31, 2017, the MSCI ACWI ex USA Index (Net) declined 1.81% for the quarter that ended March 31, 2018.

Global trade tensions escalated during the second quarter.

Global trade tensions escalated throughout the second quarter of 2018. The U.S. government imposed tariffs, and foreign governments in North America, Europe, and Asia retaliated. The escalating tensions chilled investment activity as observers awaited signals of next steps.

Meanwhile, inflation continued an upward trend. The CPI-U⁸ added 0.1% in June after increases of 0.2% in both April and May. On a year-over-year basis, the all-items index rose 2.9% for the 12 months that ended June 30, 2018. The index for all items less food and energy rose 2.3% for the same 12-month period.

U.S. stocks gained while international stocks and bonds declined during the summer of 2018.

The U.S. economy strengthened during the summer months. Revised second-quarter GDP data released in August showed the U.S. economy growing at a 4.2% rate. After ticking up slightly in June, the unemployment rate in the U.S. was 3.9% in July and August, according to the U.S. Department of Labor. Wages showed more consistent growth than they had in recent quarters, and consumer confidence remained strong.

Several U.S. equity market indices reached records during August, with the S&P 500 Index gaining 7.76% for the three-month period that ended August 31, 2018. International stock values continued to suffer under the effects of a strong U.S. dollar and continuing trade tensions. The MSCI ACWI ex USA Index (Net) and the MSCI EM Index (Net) were down 4.70% and 1.64%, respectively, during the same three-month period.

The Fed increased the federal funds rate in June, and expectations grew that two more rate increases were in the offing in 2018. Long-term interest rates in the U.S. remained at higher levels relative to the prior 10 years. Rates on 10-year and 30-year Treasury bonds—2.46% and 2.81%, respectively, on January 1, 2018—were 2.86% and 3.02%, respectively, on August 31, off their peak levels on May 17, 2018, of 3.11% and 3.25%, respectively. Some investors became more aware of and concerned about the potential for an inverted yield curve—sometimes a recession signal—as short-term rates increased more quickly than long-term rates. The Fed decided to forgo an interest rate increase at its August meeting.

The S&P 500 Index closed the first quarter with a negative return, the first negative quarterly return for the index since 2014.

⁸  The Consumer Price Index for All Urban Consumers (CPI-U) measures the changes in the price of a basket of goods and services purchased by urban consumers. The urban consumer population is deemed by many as a better representative measure of the general public because close to 90% of the country’s population lives in highly populated areas. You cannot invest directly in an index.

4 Wells Fargo Ultra Short-Term Income Fund Letter to shareholders (unaudited)

Internationally, members of Prime Minister Theresa May’s U.K./Brexit negotiating team resigned amid unproductive negotiations. In early August, the BOE’s Monetary Policy Committee increased its key interest rate to 0.75%. Central banks in Europe and Japan maintained low interest rates and accommodative monetary policies. Amid rising trade uncertainty, the PBOC cut reserve requirement ratios and accelerated infrastructure spending and tax cuts for business enterprises and individuals. Nevertheless, a strengthening U.S. dollar and the trade tensions remained headwinds for investors overseas.

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

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

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

Sincerely,

Andrew Owen

President

Wells Fargo Funds

Notice to shareholders

∎ At a meeting held on May 22-23, 2018, the Board of Trustees of the Fund approved changes to the Fund’s Class A sales charge schedule, effective August 1, 2018. In connection with this change, the net asset value (NAV) breakpoint was lowered from $500,000 to $250,000 and NAV purchases of $250,000 or more redeemed within 12 months of purchase are assessed a contingent deferred sales charge (CDSC) of 0.40%. There is no change for purchase amounts below this breakpoint. Beginning August 1, 2018, any purchases made by a shareholder with an active Letter of Intent (LOI) are subject to the terms of the new load schedule.

∎ At a meeting held on August 14-15, 2018, the Board of Trustees of the Fund approved the following policy which will be effective on or about February 5, 2019:

Class C shares will convert automatically into Class A shares ten years after the initial date of purchase or, if you acquired your Class C shares through an exchange or conversion from another share class, ten years after the date you acquired your Class C shares. When Class C shares that you acquired through a purchase or exchange convert, any other Class C shares that you purchased with reinvested dividends and distributions also will convert into Class A shares on a pro rata basis. A shorter holding period may also apply depending on your intermediary. Please see “Appendix A—Sales Charge Reductions and Waivers for Certain Intermediaries” in the Fund’s prospectus or at the end of this report.

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 Ultra Short-Term Income Fund Performance highlights (unaudited)

Investment objective

The Fund seeks current income consistent with capital preservation.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Christopher Y. Kauffman, CFA^®

Jay N. Mueller, CFA^®

Noah M. Wise, CFA^®

Average annual total returns (%) as of August 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 (SADAX)	8-31-1999		(0.79	)		0.42		1.12		1.24		0.83		1.32		0.80		0.71
Class C (WUSTX)	7-18-2008		(0.40	)		0.11		0.58		0.60		0.11		0.58		1.55		1.46
Administrator Class (WUSDX)	4-8-2005		–			–		–		1.39		0.98		1.48		0.74		0.56
Institutional Class (SADIX)	8-31-1999		–			–		–		1.59		1.21		1.68		0.47		0.36
Bloomberg Barclays Short-Term U.S. Government/Credit Bond Index3	–		–			–		–		1.54		0.70		0.79		–		–

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

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

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

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

Please see footnotes on page 7.

Performance highlights (unaudited) Wells Fargo Ultra Short-Term Income Fund 7

Growth of $10,000 investment as of August 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 December 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 0.70% for Class A, 1.45% for Class C, 0.55% for Administrator Class, and 0.35% 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 Bloomberg Barclays Short-Term U.S. Government/Credit Bond Index contains securities that have fallen out of the Bloomberg Barclays U.S. Government/Credit Bond Index because of the standard minimum one-year-to-maturity constraint. Securities in the Bloomberg Barclays Short-Term U.S. Government/Credit Bond Index must have a maturity from 1 up to (but not including) 12 months. You cannot invest directly in an index.

⁴  The chart compares the performance of Class A shares for the most recent ten years with the performance of the Bloomberg Barclays Short-Term U.S. Government/Credit Bond 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 2.00%.

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

⁶  The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. You cannot invest directly in an index.

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 Ultra Short-Term Income Fund Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

∎ The Fund underperformed its benchmark, the Bloomberg Barclays Short-Term U.S. Government/Credit Bond Index, for the 12-month period that ended August 31, 2018, after deduction of expenses. The Fund’s Institutional Class, which has lower expenses, outperformed the benchmark during the same period.

∎ Overweights to corporate debt and structured products, both of which generated superior returns compared with similar-duration Treasuries, generated positive results for the Fund.

Ten largest holdings (%) as of August 31, 20185
SPDR Portfolio Short Term Corporate Bond ETF	3.00
AT&T Incorporated, 5.00%, 3-1-2021	1.02
Deutsche Telekom International Finance BV, 2.23%, 1-17-2020	0.98
ANZ New Zealand International Limited, 2.60%, 9-23-2019	0.81
Banco Santander Chile, 2.50%, 12-15-2020	0.80
Corporacion Andina de Fomento, 2.00%, 5-10-2019	0.79
Commercial Mortgage Trust Series 2014-LC17 Class A2, 3.16%, 10-10-2047	0.79
Huntington National Bank, 2.38%, 3-10-2020	0.78
Teva Pharmaceuticals Industries Incorporated, 1.70%, 7-19-2019	0.78
Georgia Pacific LLC, 2.54%, 11-15-2019	0.76

Economic growth accelerated and policy normalization continued.

Over the past four quarters, U.S. gross domestic product (GDP) grew by 2.9% in real terms, which was above the post-financial-crisis average. Business investment was a significant source of strength, rising 4.8% for the 12 months that ended June 30, 2018. Consumer spending was a net contributor to growth, although it failed to keep pace with the business sector. Inventories were a net detractor from GDP growth, while trade and government spending were modestly positive factors.

The labor market generally was healthy over the past 12 months. Nonfarm payrolls expanded by an average of 194,000 jobs per month over the period, while the unemployment rate declined to 3.9% at the end of August 2018 from 4.4% a year earlier. Also encouraging was a 0.2% rise in the employment/population ratio since

August 2017, reflecting both the fall in unemployment and a modest increase in the labor force participation rate. Wage gains of about 2.9% over the past 12 months were sufficient to support consumption growth without sparking fears of rising inflation. The CPI⁶ also rose 2.9% over the past year, which accelerated due in part to higher energy prices.

The U.S. Federal Reserve’s (Fed’s) rate-setting committee, the Federal Open Market Committee (FOMC), raised the federal funds rate three times over the past 12 months by a total of 0.75%. The FOMC’s gradual approach to hiking rates is supported by Fed Chairman Jerome Powell’s stated view that there is no sense that inflation will take off or move unexpectedly quickly.

In line with the FOMC’s policy moves, interest rates had an upward bias over the past 12 months, particularly in shorter-term maturity instruments. Yields on 2-year Treasuries rose by 130 basis points (bps; 100 bps equal 1.00%) during the period, while 10-year Treasuries were about 75 bps higher. Investment-grade credit spreads tightened rapidly into the start of 2018 after the corporate tax cut was enacted in the U.S. but ended the period slightly wider after trade tensions and heavy supply took their toll on bond prices.

Please see footnotes on page 7.

Performance highlights (unaudited) Wells Fargo Ultra Short-Term Income Fund 9

Portfolio allocation as of August 31, 2018⁷

The Fund maintained overweights to corporate credit and securitized debt.

The Fund continued to overweight short-term corporate bonds as well as securitized debt while underweighting U.S. Treasuries and agency debentures. The Fund’s investments in corporate debt benefited from a positive credit environment. The other primary sector commitment was to securitized debt: mortgage-backed securities, asset-backed securities, and a subset of agency securities. These spread sectors benefited the Fund due to their yield advantage. We maintained the Fund’s duration at slightly under half a year during the reporting period because we expected short-term interest rates could rise. In addition, we maintained substantial liquidity in the Fund.

We expect modestly above-trend economic growth to continue.

We expect macroeconomic trends to remain relatively consistent in the coming quarters, aided by fiscal stimulus and looser regulations. Real GDP growth in the area of 3% is likely to persist for a period of time, barring some external shock. The biggest risks to the outlook include an escalation in trade tensions and a larger-than-expected slowdown in the Chinese economy.

Please see footnotes on page 7.

10 Wells Fargo Ultra Short-Term Income Fund Fund expenses (unaudited)

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

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from March 1, 2018 to August 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 3-1-2018		Ending account value 8-31-2018		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,009.34	$	3.55		0.70	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.68	$	3.57		0.70	%
Class C
Actual	$	1,000.00	$	1,006.73	$	7.33		1.45	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.90	$	7.38		1.45	%
Administrator Class
Actual	$	1,000.00	$	1,010.11	$	2.79		0.55	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.43	$	2.80		0.55	%
Institutional Class
Actual	$	1,000.00	$	1,011.12	$	1.77		0.35	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.44	$	1.79		0.35	%

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

Portfolio of investments—August 31, 2018 Wells Fargo Ultra Short-Term Income Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities: 11.15%
FDIC Series 2013-R1 Class A 144A		1.15	%		3-25-2033	$	1,105,050	$	1,088,301
FHLMC (1 Year Treasury Constant Maturity +2.25%) ±		3.68			4-1-2038		819,227		863,079
FHLMC (1 Year Treasury Constant Maturity +2.25%) ±		3.90			9-1-2038		1,444,806		1,521,611
FHLMC (1 Year Treasury Constant Maturity +2.25%) ±		3.96			10-1-2038		890,317		941,685
FHLMC (1 Year Treasury Constant Maturity +2.18%) ±		4.00			5-1-2035		383,920		403,122
FHLMC (1 Year Treasury Constant Maturity +2.23%) ±		4.05			3-1-2035		803,163		846,268
FHLMC (1 Year Treasury Constant Maturity +2.25%) ±		4.12			4-1-2032		92,970		97,082
FHLMC (1 Year Treasury Constant Maturity +2.33%) ±		4.21			1-1-2029		37,909		37,989
FHLMC (1 Year Treasury Constant Maturity +2.25%) ±		4.31			6-1-2032		2,270		2,355
FHLMC (1 Year Treasury Constant Maturity +2.25%) ±		4.37			11-1-2035		2,699,141		2,838,669
FHLMC (1 Year Treasury Constant Maturity +2.40%) ±		4.37			7-1-2029		2,313		2,384
FHLMC		4.50			2-1-2020		236,913		239,121
FHLMC		4.50			8-1-2020		148,112		149,631
FHLMC		4.50			1-1-2022		130,900		132,334
FHLMC		4.50			6-1-2024		1,236,282		1,278,256
FHLMC		4.50			9-1-2026		1,974,186		2,041,044
FHLMC		5.00			12-1-2019		332,819		337,875
FHLMC		5.50			12-1-2022		549,080		567,538
FHLMC		5.50			12-1-2023		581,673		601,458
FHLMC		6.00			10-1-2021		692,715		713,030
FHLMC		6.00			10-1-2021		770,108		792,034
FHLMC		6.00			1-1-2024		563,753		584,264
FHLMC		7.00			6-1-2031		283,627		310,068
FHLMC		9.00			10-1-2019		5,485		5,511
FHLMC		9.50			9-1-2020		18,774		18,874
FHLMC		9.50			12-1-2022		12,374		12,480
FHLMC		10.00			11-17-2021		4,793		4,796
FHLMC		10.50			5-1-2020		19,263		19,433
FHLMC Series 2611 Class HD		5.00			5-15-2023		639,988		661,765
FHLMC Series 2649 Class WL		4.00			7-15-2023		1,309,525		1,330,217
FHLMC Series 2704 Class BH		4.50			11-15-2023		451,549		463,330
FHLMC Series 2707 Class QE		4.50			11-15-2018		6,177		6,172
FHLMC Series 2843 Class BC		5.00			8-15-2019		25,891		25,938
FHLMC Series 2849 Class B		5.00			8-15-2019		83,780		84,053
FHLMC Series 2855 Class WN		4.00			9-15-2019		13,647		13,669
FHLMC Series 2881 Class AE		5.00			8-15-2034		240,074		244,956
FHLMC Series 2896 Class CB		4.50			11-15-2019		75,081		75,118
FHLMC Series 2953 Class LD		5.00			12-15-2034		197,240		198,175
FHLMC Series 3166 Class AC		5.00			6-15-2021		1,691,388		1,707,019
FHLMC Series 3266 Class D		5.00			1-15-2022		74,093		74,149
FHLMC Series 3609 Class LA		4.00			12-15-2024		53,476		53,600
FHLMC Series 3772 Class HC		3.00			10-15-2018		1,230		1,230
FHLMC Series 3821 Class LA		3.50			4-15-2025		197,167		197,704
FHLMC Series 3834 Class EA		3.50			6-15-2029		277,683		280,812
FHLMC Series 3842 Class CJ		2.00			9-15-2018		751		750
FHLMC Series 3888 Class NA		2.25			1-15-2040		1,875,482		1,828,780
FHLMC Series 3898 Class NE		4.00			7-15-2040		206,539		205,934
FHLMC Series 4172 Class PB		1.50			7-15-2040		379,767		366,128
FHLMC Series 4318 Class LC		2.00			6-15-2038		515,208		506,483
FHLMC Series 4348 Class MH		3.00			6-15-2039		2,432,261		2,415,944

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

12 Wells Fargo Ultra Short-Term Income Fund Portfolio of investments—August 31, 2018

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FHLMC Series K005 Class A2		4.32	%		11-25-2019	$	500,000	$	506,014
FHLMC Series KJ13 Class A1		2.06			9-25-2021		2,002,035		1,980,843
FHLMC Series KP04 Class AG1 (1 Month LIBOR +0.22%) ±		2.30			7-25-2020		4,515,000		4,517,487
FHLMC Series QO04 Class AFL (12 Month Treasury Average +0.74%) ±		2.49			10-25-2021		4,058,455		4,062,293
FHLMC Series T-42 Class A6		9.50			2-25-2042		633,886		754,793
FNMA		1.77			9-1-2019		1,077,273		1,068,631
FNMA		2.00			4-1-2023		3,878,018		3,806,561
FNMA		2.48			7-1-2020		3,383,374		3,374,934
FNMA (1 Year Treasury Constant Maturity +2.02%) ±		3.37			12-1-2034		446,448		466,995
FNMA (1 Year Treasury Constant Maturity +2.19%) ±		3.43			11-1-2031		61,637		64,556
FNMA (6 Month LIBOR +1.39%) ±		3.44			10-1-2031		122,223		124,986
FNMA (1 Year Treasury Constant Maturity +2.28%) ±		3.53			11-1-2032		480,469		505,038
FNMA (1 Year Treasury Constant Maturity +2.26%) ±		3.60			11-1-2035		210,267		222,168
FNMA (1 Year Treasury Constant Maturity +2.13%) ±		3.60			5-1-2032		5,165		5,335
FNMA (1 Year Treasury Constant Maturity +2.27%) ±		3.74			2-1-2036		2,102,881		2,215,353
FNMA (1 Year Treasury Constant Maturity +2.25%) ±		3.75			11-1-2033		1,950,207		2,052,582
FNMA (6 Month LIBOR +1.51%) ±		3.81			9-1-2037		399,347		412,990
FNMA (1 Year Treasury Constant Maturity +2.19%) ±		3.83			4-1-2038		2,127,900		2,242,305
FNMA (1 Year Treasury Constant Maturity +2.19%) ±		3.84			2-1-2035		1,066,257		1,122,325
FNMA (12 Month Treasury Average +2.22%) ±		3.85			8-1-2045		702,589		729,606
FNMA (1 Year Treasury Constant Maturity +1.86%) ±		3.86			1-1-2023		7,294		7,277
FNMA (1 Year Treasury Constant Maturity +2.26%) ±		3.86			8-1-2036		2,313,958		2,437,787
FNMA (1 Year Treasury Constant Maturity +2.23%) ±		3.86			12-1-2040		136,746		143,470
FNMA (1 Year Treasury Constant Maturity +2.22%) ±		3.87			7-1-2038		1,501,262		1,582,439
FNMA (1 Year Treasury Constant Maturity +2.36%) ±		3.89			11-1-2034		1,068,055		1,130,653
FNMA (12 Month Treasury Average +2.29%) ±		3.94			5-1-2036		821,758		846,403
FNMA (1 Year Treasury Constant Maturity +2.27%) ±		3.95			2-1-2033		369,464		386,382
FNMA		4.00			3-1-2025		1,120,832		1,147,375
FNMA		4.00			9-1-2026		4,476,653		4,583,350
FNMA (1 Year Treasury Constant Maturity +2.31%) ±		4.04			5-1-2036		836,324		884,482
FNMA (12 Month LIBOR +1.82%) ±		4.04			9-1-2040		2,633,618		2,764,386
FNMA (1 Year Treasury Constant Maturity +2.22%) ±		4.19			6-1-2032		98,586		102,271
FNMA (1 Year Treasury Constant Maturity +2.22%) ±		4.25			6-1-2034		918,109		967,690
FNMA		4.50			6-1-2019		19,979		20,183
FNMA		4.50			1-1-2027		2,239,891		2,318,005
FNMA		5.00			5-1-2022		508,067		522,539
FNMA		5.00			6-1-2024		2,387,126		2,477,961
FNMA (6 Month LIBOR +2.86%) ±		5.38			4-1-2033		1,385		1,434
FNMA		6.00			4-1-2021		112,920		115,303
FNMA		6.00			1-1-2023		1,376,745		1,429,100
FNMA		6.50			8-1-2031		332,394		366,599
FNMA		8.33			7-15-2020		3,983		4,058
FNMA		9.00			2-15-2020		19,474		19,999
FNMA		9.00			10-15-2021		10,148		10,508
FNMA		9.00			6-1-2024		16,736		16,856
FNMA		9.50			12-1-2020		14,866		15,298
FNMA		10.25			9-1-2021		1,281		1,281
FNMA		10.50			8-1-2020		196		196
FNMA		10.50			4-1-2022		191		192
FNMA Series 1989-30 Class Z		9.50			6-25-2019		5,110		5,169

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

Portfolio of investments—August 31, 2018 Wells Fargo Ultra Short-Term Income Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA Series 1990-111 Class Z		8.75	%		9-25-2020	$	2,255	$	2,344
FNMA Series 1990-119 Class J		9.00			10-25-2020		15,984		16,697
FNMA Series 1990-124 Class Z		9.00			10-25-2020		6,483		6,743
FNMA Series 1990-21 Class Z		9.00			3-25-2020		25,902		26,744
FNMA Series 1990-27 Class Z		9.00			3-25-2020		13,298		13,704
FNMA Series 1990-30 Class D		9.75			3-25-2020		3,495		3,631
FNMA Series 1990-77 Class D		9.00			6-25-2020		11,178		11,369
FNMA Series 1991-132 Class Z		8.00			10-25-2021		34,710		36,574
FNMA Series 1992-71 Class X		8.25			5-25-2022		18,648		19,989
FNMA Series 2000-T6 Class A2		9.50			11-25-2040		347,184		389,866
FNMA Series 2001-T10 Class A3		9.50			12-25-2041		631,798		721,024
FNMA Series 2001-T12 Class A3		9.50			8-25-2041		572,213		674,194
FNMA Series 2002-T1 Class A4		9.50			11-25-2031		677,880		776,352
FNMA Series 2002-W04 Class A6 ±±		4.27			5-25-2042		713,902		729,525
FNMA Series 2003-125 Class AY		4.00			12-25-2018		5,941		5,937
FNMA Series 2003-129 Class AP		4.00			1-25-2019		17		17
FNMA Series 2003-92 Class PE		4.50			9-25-2018		51		51
FNMA Series 2003-W11 Class A1 ±±		5.27			6-25-2033		22,628		23,614
FNMA Series 2003-W3 Class 1A4 ±±		3.86			8-25-2042		35,488		36,791
FNMA Series 2004-10 Class FA (1 Month LIBOR +0.35%) ±		2.41			2-25-2034		218,329		218,530
FNMA Series 2004-17 Class HJ		4.75			4-25-2019		7,671		7,660
FNMA Series 2004-32 Class AY		4.00			5-25-2019		4,700		4,707
FNMA Series 2004-92 Class QY		4.50			8-25-2034		119,376		119,364
FNMA Series 2007-W2 Class 1A1 (1 Month LIBOR +0.32%) ±		2.38			3-25-2037		373,910		373,856
FNMA Series 2008-76 Class GF (1 Month LIBOR +0.65%) ±		2.71			9-25-2023		12,689		12,697
FNMA Series 2008-81 Class LK		5.00			9-25-2023		2,470		2,471
FNMA Series 2009-31 Class B		4.00			5-25-2024		1,690,404		1,693,153
FNMA Series 2010-115 Class NC		2.75			1-25-2039		951,918		941,793
FNMA Series 2010-153 Class AB		2.00			11-25-2018		1,620		1,618
FNMA Series 2010-153 Class BG		2.50			11-25-2018		1,585		1,583
FNMA Series 2010-25 Class ND		3.50			3-25-2025		44,306		44,324
FNMA Series 2010-37 Class A1		5.41			5-25-2035		5,798,322		5,961,160
FNMA Series 2010-57 Class DQ		3.00			6-25-2025		273,089		270,491
FNMA Series 2010-89 Class DP		3.00			6-25-2038		2,049,335		2,053,782
FNMA Series 2011-122 Class A		3.00			12-25-2025		388,510		388,092
FNMA Series 2011-33 Class GA		3.50			10-25-2028		135,443		135,332
FNMA Series 2011-40 Class CA		3.50			12-25-2028		542,989		543,996
FNMA Series 2012-72 Class QE		3.00			1-25-2038		473,641		473,211
FNMA Series 2012-94 Class E		3.00			6-25-2022		23,938		23,928
FNMA Series 2013-26 Class AK		2.50			11-25-2038		4,128,342		4,026,044
FNMA Series 2014-19 Class HA		2.00			6-25-2040		1,034,292		989,239
GNMA		7.00			6-15-2033		411,666		476,236
GNMA Series 2012-57 Class LG		1.50			3-16-2035		215,107		213,483
GNMA Series 2016-H19 Class FE (1 Month LIBOR +0.37%) ±		2.47			6-20-2061		1,362,270		1,361,821
GNMA Series 2017-H13 Class FJ (1 Month LIBOR +0.20%) ±		2.30			5-20-2067		1,818,475		1,816,005
GNMA Series 2017-H16 Class FD (1 Month LIBOR +0.20%) ±		2.30			8-20-2067		3,002,354		2,998,828
Vendee Mortgage Trust Series 2011-1 Class DA		3.75			2-15-2035		2,120,952		2,138,493
Total Agency Securities (Cost $112,959,359)									112,523,722

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

14 Wells Fargo Ultra Short-Term Income Fund Portfolio of investments—August 31, 2018

Security name	Interest rate			Maturity date		Principal		Value
Asset-Backed Securities: 10.03%
Ally Master Owner Trust Series 2017-1 Class A (1 Month LIBOR +0.40%) ±		2.46	%		2-15-2021	$	1,300,000	$	1,301,529
Avis Budget Rental Car Funding LLC Series 2014-1A Class A 144A		2.46			7-20-2020		1,000,000		996,631
CCG Receivables Trust Series 2016-1 Class A2 144A		1.69			9-14-2022		1,608,622		1,601,810
CCG Receivables Trust Series 2017-1 Class A2 144A		1.84			11-14-2023		5,763,539		5,719,952
Chesapeake Funding LLC Series 2017-3A Class A 144A		1.91			8-15-2029		7,464,993		7,379,196
Dell Equipment Finance Trust Series 2017-2 Class A2B (1 Month LIBOR +0.30%) 144A±		2.37			2-24-2020		2,351,283		2,352,074
DLL Securitization Trust Series 2017-A Class A2 144A		1.89			7-15-2020		3,748,670		3,735,431
Education Loan Asset-Backed Trust Series 2013-1 Class A1 (1 Month LIBOR +0.80%) 144A±		2.86			6-25-2026		3,643,166		3,657,724
Educational Services of America Incorporated Series 2015-2 Class A (1 Month LIBOR +1.00%) 144A±		3.06			12-25-2056		1,186,369		1,195,912
Enterprise Fleet Financing Trust Series 2017-1 Class A2 144A		2.13			7-20-2022		3,878,139		3,857,844
Enterprise Fleet Financing Trust Series 2017-2 Class A2 144A		1.97			1-20-2023		1,031,267		1,023,968
Finance of America Structured Series 2017-HB1 Class A 144A±±‡		2.32			11-25-2027		2,601,947		2,594,532
GMF Floorplan Owner Revolving Trust Series 2016-1 Class A2 (1 Month LIBOR +0.85%) 144A±		2.91			5-17-2021		4,655,000		4,675,770
Harley-Davidson Motorcycle Trust Series 2015-1 Class A3		1.41			6-15-2020		198,346		198,159
Hyundai Auto Lease Securitization Trust Series 2017-C Class A3 144A		2.12			2-16-2021		5,320,000		5,280,268
John Deere Owner Trust Series 2016-A Class A3		1.36			4-15-2020		778,653		775,940
Navistar Financial Dealer Note Master Trust Series 2017-1 Class A (1 Month LIBOR +0.78%) 144A±		2.84			6-27-2022		6,000,000		6,026,370
Santander Retail Auto Lease Trust Series 2017-A Class A2A 144A		2.02			3-20-2020		2,370,933		2,362,488
SLC Student Loan Trust Series 2006-2 Class A5 (3 Month LIBOR +0.10%) ±		2.44			9-15-2026		1,917,567		1,915,471
SLM Student Loan Trust Series 2004-1 Class A3 (3 Month LIBOR +0.21%) ±		2.55			4-25-2023		79,787		79,798
SLM Student Loan Trust Series 2004-8A Class A5 (3 Month LIBOR +0.50%) 144A±		2.84			4-25-2024		621,900		622,994
SLM Student Loan Trust Series 2006-10 Class A5A (3 Month LIBOR +0.10%) ±		2.44			4-25-2027		1,581,824		1,580,161
SLM Student Loan Trust Series 2011-2 Class A1 (1 Month LIBOR +0.60%) ±		2.66			11-25-2027		2,131,590		2,141,093
SLM Student Loan Trust Series 2012-3 Class A (1 Month LIBOR +0.65%) ±		2.71			12-27-2038		5,458,109		5,479,079
SLM Student Loan Trust Series 2013-1 Class A3 (1 Month LIBOR +0.55%) ±		2.61			5-26-2055		4,381,128		4,398,775
South Texas Higher Education 2012-1 Class A2 (3 Month LIBOR +0.85%) ±		3.19			10-1-2024		5,436,836		5,460,541
Structured Asset Securities Corporation Series 1998-2 Class A (1 Month LIBOR +0.52%) ±		2.58			2-25-2028		130,602		129,676
Student Loan Consolidation Center Series 2011-1 Class A (1 Month LIBOR +1.22%) 144A±		3.28			10-25-2027		6,562,886		6,633,052
Towd Point Asset Trust Series 2018-SL1 Class A (1 Month LIBOR +0.60%) 144A±		2.66			1-25-2046		5,608,211		5,579,207
Verizon Owner Trust Series 2017-1A Class A 144A		2.06			9-20-2021		5,175,000		5,129,661
Volvo Financial Equipment LLC Series 2016-1A Class A3 144A		1.67			2-18-2020		144,710		144,331
Wheels SPV LLC Series 2018-1A Class A2 144A		3.06			4-20-2027		3,385,000		3,386,790
World Omni Auto Receivables Trust Series 2016-B Class A3		1.30			2-15-2022		3,880,507		3,837,843
Total Asset-Backed Securities (Cost $101,329,516)									101,254,070
Corporate Bonds and Notes: 33.66%
Consumer Discretionary: 4.17%
Auto Components: 0.36%
ZF North America Capital Incorporated 144A		4.00			4-29-2020		3,641,000		3,672,617
Hotels, Restaurants & Leisure: 0.94%
GLP Capital LP/GLP Financing II Incorporated		4.88			11-1-2020		3,660,000		3,751,500
MGM Resorts International		5.25			3-31-2020		3,660,000		3,733,200
Royal Caribbean Cruises Limited		2.65			11-28-2020		2,000,000		1,966,159
									9,450,859

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

Portfolio of investments—August 31, 2018 Wells Fargo Ultra Short-Term Income Fund 15

Security name	Interest rate				Maturity date		Principal		Value
Household Durables: 0.42%
D.R. Horton Incorporated		3.75	%	��		3-1-2019	$	2,990,000	$	2,995,811
Lennar Corporation		4.50				11-15-2019		1,220,000		1,232,200
										4,228,011
Media: 2.45%
DIRECTV Holdings LLC		5.88				10-1-2019		4,902,000		5,046,767
Discovery Communications LLC		2.20				9-20-2019		3,725,000		3,694,688
NBCUniversal Enterprise Incorporated 144A		5.25				12-31-2049		6,000,000		6,075,000
TEGNA Incorporated		5.13				7-15-2020		3,660,000		3,692,025
Time Warner Cable Incorporated		4.88				3-15-2020		6,010,000		6,158,231
										24,666,711
Consumer Staples: 1.65%
Food Products: 0.59%
Campbell Soup Company		3.30				3-15-2021		6,040,000		6,008,477
Tobacco: 1.06%
Altria Group Incorporated		9.70				11-10-2018		3,625,000		3,670,969
British American Tobacco Capital Corporation 144A		2.30				8-14-2020		5,215,000		5,120,144
Reynolds American Incorporated		8.13				6-23-2019		1,793,000		1,866,685
										10,657,798
Energy: 1.10%
Oil, Gas & Consumable Fuels: 1.10%
Enable Midstream Partner LP		2.40				5-15-2019		7,465,000		7,430,523
Sabine Pass Liquefaction LLC		5.63				2-1-2021		3,500,000		3,650,055
										11,080,578
Financials: 16.63%
Banks: 7.43%
Australia & New Zealand Banking Group Limited		2.25				11-9-2020		5,790,000		5,674,215
Bank of America Corporation (3 Month LIBOR +0.63%) ±		2.33				10-1-2021		5,000,000		4,896,262
BB&T Corporation		2.15				2-1-2021		7,000,000		6,835,394
Citigroup Incorporated		2.45				1-10-2020		4,000,000		3,969,441
Citigroup Incorporated		2.50				7-29-2019		6,087,000		6,073,701
Discover Bank		2.60				11-13-2018		5,000,000		5,000,300
Fifth Third Bank		2.30				3-15-2019		4,470,000		4,464,728
Huntington National Bank		2.38				3-10-2020		8,000,000		7,912,999
JPMorgan Chase & Company (3 Month LIBOR +0.61%) ±		3.51				6-18-2022		7,000,000		7,033,380
JPMorgan Chase Bank		1.45				9-21-2018		2,000,000		1,999,379
PNC Bank		2.45				11-5-2020		7,000,000		6,899,295
Rabobank Nederland NY		1.38				8-9-2019		7,000,000		6,909,950
US Bank		2.05				10-23-2020		7,460,000		7,303,861
										74,972,905
Capital Markets: 1.50%
Goldman Sachs Group Incorporated		2.00				4-25-2019		4,000,000		3,981,358
Goldman Sachs Group Incorporated		5.38				3-15-2020		5,000,000		5,166,906

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

16 Wells Fargo Ultra Short-Term Income Fund Portfolio of investments—August 31, 2018

Security name	Interest rate			Maturity date		Principal		Value
Capital Markets (continued)
Morgan Stanley		2.20	%		12-7-2018	$	4,000,000	$	3,997,361
Morgan Stanley		2.45			2-1-2019		1,960,000		1,959,116
									15,104,741
Consumer Finance: 4.72%
Ally Financial Incorporated		3.25			11-5-2018		7,665,000		7,665,000
BMW US Capital LLC 144A		2.15			4-6-2020		1,000,000		986,006
Capital One Financial Corporation		2.50			5-12-2020		7,000,000		6,927,811
Daimler Finance North America LLC 144A		1.50			7-5-2019		3,000,000		2,967,520
Daimler Finance North America LLC 144A		2.20			5-5-2020		1,480,000		1,455,019
Daimler Finance North America LLC 144A		2.30			2-12-2021		4,000,000		3,900,598
Ford Motor Credit Company LLC		2.94			1-8-2019		3,665,000		3,664,010
Ford Motor Credit Company LLC (3 Month LIBOR +0.88%) ±		3.22			10-12-2021		2,840,000		2,811,770
Hyundai Capital America Incorporated 144A		2.75			9-18-2020		4,000,000		3,929,318
John Deere Capital Corporation		1.95			6-22-2020		3,000,000		2,952,261
Nissan Motor Acceptance Corporation 144A		2.25			1-13-2020		4,000,000		3,948,772
Synchrony Bank		3.65			5-24-2021		2,650,000		2,633,088
Synchrony Financial		2.60			1-15-2019		3,815,000		3,811,372
									47,652,545
Diversified Financial Services: 0.39%
WEA Finance LLC 144A		2.70			9-17-2019		2,975,000		2,965,590
WEA Finance LLC 144A		3.25			10-5-2020		1,000,000		998,426
									3,964,016
Insurance: 2.59%
Axis Specialty Finance LLC		5.88			6-1-2020		1,685,000		1,754,292
Jackson National Life Global Funding 144A		2.30			4-16-2019		3,251,000		3,246,035
Metropolitan Life Global Funding Incorporated 144A		1.55			9-13-2019		5,180,000		5,118,409
Metropolitan Life Global Funding Incorporated 144A		1.75			9-19-2019		3,000,000		2,965,179
PartnerRe Finance B LLC		5.50			6-1-2020		1,000,000		1,034,538
Protective Life Global Funding 144A		2.26			4-8-2020		4,415,000		4,357,889
Reliance Standard Life Insurance 144A		2.15			10-15-2018		7,610,000		7,607,577
									26,083,919
Health Care: 2.44%
Health Care Providers & Services: 1.85%
Anthem Incorporated		2.50			11-21-2020		5,040,000		4,964,444
CVS Health Corporation		3.13			3-9-2020		6,100,000		6,102,716
HCA Incorporated		6.50			2-15-2020		3,685,000		3,825,030
Tenet Healthcare Corporation		6.00			10-1-2020		3,660,000		3,801,825
									18,694,015
Pharmaceuticals: 0.59%
EMD Finance LLC 144A		2.40			3-19-2020		5,965,000		5,888,994

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

Portfolio of investments—August 31, 2018 Wells Fargo Ultra Short-Term Income Fund 17

Security name	Interest rate			Maturity date		Principal		Value
Industrials: 1.57%
Airlines: 0.59%
Delta Air Lines Incorporated		2.60	%		12-4-2020	$	3,000,000	$	2,939,702
Delta Air Lines Incorporated		3.40			4-19-2021		3,000,000		2,981,138
									5,920,840
Machinery: 0.34%
CNH Industrial Capital LLC		4.38			11-6-2020		3,375,000		3,417,188
Road & Rail: 0.35%
ERAC USA Finance LLC 144A		2.35			10-15-2019		3,605,000		3,577,025
Transportation Infrastructure: 0.29%
TTX Company 144A		2.25			2-1-2019		2,905,000		2,897,695
Information Technology: 1.34%
Technology Hardware, Storage & Peripherals: 1.34%
EMC Corporation		2.65			6-1-2020		6,660,000		6,512,472
Hewlett Packard Enterprise Company		3.60			10-15-2020		7,000,000		7,047,391
									13,559,863
Materials: 0.76%
Paper & Forest Products: 0.76%
Georgia Pacific LLC 144A		2.54			11-15-2019		7,740,000		7,696,560
Telecommunication Services: 2.67%
Diversified Telecommunication Services: 2.67%
AT&T Incorporated		5.00			3-1-2021		9,915,000		10,293,045
Broadcom International Limited		2.20			1-15-2021		7,000,000		6,786,792
Broadcom International Limited		2.38			1-15-2020		3,720,000		3,680,175
Verizon Communications Incorporated		4.60			4-1-2021		6,000,000		6,207,314
									26,967,326
Utilities: 1.33%
Electric Utilities: 0.61%
Duke Energy Florida LLC		2.10			12-15-2019		1,500,000		1,493,421
Interstate Power & Light Company		5.88			9-15-2018		1,675,000		1,676,491
Pinnacle West Capital Corporation		2.25			11-30-2020		3,000,000		2,933,892
									6,103,804
Multi-Utilities: 0.72%
Black Hills Corporation		2.50			1-11-2019		3,645,000		3,640,474
Dominion Resources Incorporated		2.96			7-1-2019		3,635,000		3,638,755
									7,279,229
Total Corporate Bonds and Notes (Cost $342,658,180)									339,545,716

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

18 Wells Fargo Ultra Short-Term Income Fund Portfolio of investments—August 31, 2018

Security name						Shares		Value
Exchange-Traded Funds: 3.00%
SPDR Portfolio Short Term Corporate Bond ETF «							1,000,000	$	30,260,000
Total Exchange-Traded Funds (Cost $30,200,000)									30,260,000
	Interest rate			Maturity date		Principal
Municipal Obligations: 2.78%
California: 0.36%
Miscellaneous Revenue: 0.36%
Los Angeles CA Municipal Improvement Refunding Bond Convention Center Series A		2.34	%		11-1-2018	$	3,620,000		3,618,950
Connecticut: 0.64%
GO Revenue: 0.64%
Connecticut Series A		2.30			1-15-2019		5,000,000		4,989,000
Connecticut Series A		5.46			3-1-2019		1,420,000		1,436,188
									6,425,188
Illinois: 0.50%
Miscellaneous Revenue: 0.50%
Illinois		5.00			5-1-2019		4,930,000		5,013,711
Michigan: 0.15%
Miscellaneous Revenue: 0.15%
Michigan Finance Authority Subordinated Bond Series C-2 (Municipal Government Guaranty Insured)		1.61			11-1-2018		1,000,000		999,010
Michigan Finance Authority Subordinated Bond Series C-4 (Municipal Government Guaranty Insured)		2.27			4-1-2019		500,000		495,580
									1,494,590
New Jersey: 0.39%
Miscellaneous Revenue: 0.39%
New Jersey TTFA Series B		1.76			12-15-2018		4,000,000		3,988,440
Wisconsin: 0.74%
Housing Revenue: 0.74%
Wisconsin Healthcare PFA (Citizens Bank LOC)		2.63			11-1-2019		7,610,000		7,502,319
Total Municipal Obligations (Cost $28,142,631)									28,043,198
Non-Agency Mortgage-Backed Securities: 15.93%
Banc of America Funding Corporation Series 2016-R1 Class A1 144A±±		2.50			3-25-2040		1,907,445		1,852,874
BDS Limited Series 2018-FL2 Class A (1 Month LIBOR +0.95%) 144A±		3.01			8-15-2035		2,855,000		2,863,067
BlueMountain CLO Limited Series 2014-2A Class AR (3 Month LIBOR +0.93%) 144A±		3.28			7-20-2026		5,970,000		5,967,737
BX Trust 2017 Series A (1 Month LIBOR +1.05%) 144A±		3.11			10-15-2032		1,615,000		1,616,998
CD Commercial Mortgage Trust Series 2017-CD3 Class A1		1.97			2-10-2050		3,984,842		3,920,460
CGDBB Commercial Mortgage Trust Series 2017-BIOC Class A (1 Month LIBOR +0.79%) 144A±		2.85			7-15-2032		5,600,000		5,599,992
CIFC Funding Limited Series 2012-2RA Class A1 (3 Month LIBOR +0.80%) 144A±		3.15			1-20-2028		7,550,000		7,494,492
CIFC Funding Limited Series 2015-2A Class AR (3 Month LIBOR +0.78%) 144A±		3.12			4-15-2027		7,000,000		6,971,552

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

Portfolio of investments—August 31, 2018 Wells Fargo Ultra Short-Term Income Fund 19

Security name	Interest rate			Maturity date		Principal		Value
Non-Agency Mortgage-Backed Securities (continued)
Citigroup Commercial Mortgage Trust Series 2008-C7 Class AMA ±±		6.34	%		12-10-2049	$	1,000,000	$	1,000,000
Citigroup Commercial Mortgage Trust Series 2014-GC25 Class A2		3.26			10-10-2047		3,563,000		3,574,340
Citigroup Commercial Mortgage Trust Series 2017-1500 Class A (1 Month LIBOR +0.85%) 144A±		2.91			7-15-2032		6,150,000		6,151,993
Citigroup Commercial Mortgage Trust Series 2017-MDRB Class A (1 Month LIBOR +1.10%) 144A±		3.16			7-15-2030		4,715,235		4,698,099
Collateralized Mortgage Obligation Trust Series 66 Class Z		8.00			9-20-2021		10,440		10,762
Commercial Mortgage Trust Series 2010-C1 Class A3 144A		4.21			7-10-2046		1,592,394		1,617,667
Commercial Mortgage Trust Series 2014-LC17 Class A2		3.16			10-10-2047		7,925,000		7,944,616
Commercial Mortgage Trust Series 2014-UBS5 Class A2		3.03			9-10-2047		4,518,637		4,521,516
Commercial Mortgage Trust Series 2015-LC23 Class A1		1.81			10-10-2048		5,048,323		4,989,939
Countrywide Home Loans Mortgage Pass-Through Trust Series 2001-HYB1 Class 1A1 ±±		3.29			6-19-2031		148,568		148,653
Countrywide Home Loans Mortgage Pass-Through Trust Series 2001-HYB1 Class 2A1 ±±		3.21			6-19-2031		91,503		90,023
Crown Point Limited Series 2013-2A Class A1LR (3 Month LIBOR +0.59%) 144A±		2.93			12-31-2023		180,676		180,599
Crown Point Limited Series 2015-3A Class A1AR (3 Month LIBOR +0.91%) 144A±		3.25			12-31-2027		7,030,000		7,029,880
CSAIL Commercial Mortgage Trust Series 2015-C4 Class A1		2.01			11-15-2048		1,511,421		1,496,905
DLJ Mortgage Acceptance Corporation Series 1990-2 Class A ±±		3.37			1-25-2022		12,584		12,584
EquiFirst Mortgage Loan Trust Series 2003-2 Class 3A3 (1 Month LIBOR +1.13%) ±		3.19			9-25-2033		373,270		368,068
FirstKey Mortgage Trust Series 2014-1 Class A2 144A±±		3.00			11-25-2044		3,619,260		3,599,242
GS Mortgage Securities Trust Series 2010-C1 Class A1 144A		3.68			8-10-2043		1,784,320		1,791,327
GS Mortgage Securities Trust Series 2011-GC3 Class A4 144A		4.75			3-10-2044		5,315,217		5,478,662
GS Mortgage Securities Trust Series 2013-GC12 Class A2		2.01			6-10-2046		47,820		47,786
GS Mortgage Securities Trust Series 2015-GS1 Class A1		1.94			11-10-2048		570,163		563,960
GS Mortgage Securities Trust Series 2016-GS3 Class A1		1.43			10-10-2049		1,541,461		1,508,775
GSMPS Mortgage Loan Trust Series 1998-1 Class A 144A±±		8.00			9-19-2027		42,122		41,871
Halcyon Loan Advisors Funding Series 2014-3A Class AR (3 Month LIBOR +1.10%) 144A±		3.45			10-22-2025		7,000,000		7,001,379
Housing Securities Incorporated Series 1992-8 Class E ±±		4.95			6-25-2024		37,032		37,324
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-CB18 Class AMFL (1 Month LIBOR +0.17%) ±		2.23			6-12-2047		2,207,617		2,169,294
JPMorgan Chase Commercial Mortgage Securities Trust Series 2012-LC9 Class A3		2.48			12-15-2047		1,692,524		1,690,546
JPMorgan Chase Commercial Mortgage Securities Trust Series 2015-C28 Class A2		2.77			10-15-2048		115,000		114,576
JPMorgan Chase Commercial Mortgage Securities Trust Series 2015-C33 Class A1		1.90			12-15-2048		3,824,903		3,794,300
JPMorgan Chase Commercial Mortgage Securities Trust Series 2016-JP3 Class A1		1.46			8-15-2049		3,227,667		3,156,650
JPMorgan Chase Commercial Mortgage Securities Trust Series 2017-JP5 Class A1		2.09			3-15-2050		3,670,786		3,607,623
JPMorgan Chase Commercial Mortgage Securities Trust Series 2018-PHH Class A (1 Month LIBOR +0.91%) 144A±		2.97			6-15-2035		3,915,000		3,921,093
Master Mortgages Trust Series 2002-3 Class 4A1 ±±		4.31			10-25-2032		7,681		7,678
Morgan Stanley Bank of America Merrill Lynch Trust Series 2013-C11 Class A2		3.09			8-15-2046		1,889,657		1,887,631
Morgan Stanley Bank of America Merrill Lynch Trust Series 2014-C15 Class A2		2.98			4-15-2047		2,598,574		2,598,293
Morgan Stanley Bank of America Merrill Lynch Trust Series 2016-C28 Class A1		1.53			1-15-2049		1,581,072		1,551,932
Morgan Stanley Capital I Trust Series 2016-C30 Class A1		1.39			9-15-2049		5,540,226		5,404,373
Neuberger Berman Limited Series 2015-20A Class AR (3 Month LIBOR +0.80%) 144A±		3.14			1-15-2028		4,085,000		4,078,194
Octagon Investment Partners Series 2015-1A Class A1R (3 Month LIBOR +0.90%) 144A±		3.21			5-21-2027		6,300,000		6,295,647
Rait Trust Series 2017-FL7 Class A (1 Month LIBOR +0.95%) 144A±		3.01			6-15-2037		2,193,504		2,194,574
Regatta IV Funding Limited Series 2014-1A Class A2R (3 Month LIBOR +1.02%) 144A±		3.36			7-25-2026		5,245,000		5,245,467

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

20 Wells Fargo Ultra Short-Term Income Fund Portfolio of investments—August 31, 2018

Security name	Interest rate			Maturity date		Principal		Value
Non-Agency Mortgage-Backed Securities (continued)
Salomon Brothers Mortgage Securities VII Series 1990-2 Class A ±±		3.05	%		11-25-2020	$	146,108	$	146,182
Stonemont Portfolio Trust Series 2017 Class A (1 Month LIBOR +0.85%) 144A±		2.93			8-20-2030		5,169,328		5,169,302
Structured Asset Mortgage Investments Incorporated Series 2001-4 Class A2 ±±		8.15			10-25-2024		8,527		8,565
Venture CDO Limited Series 2015-20A Class AR (3 Month LIBOR +0.82%) 144A±		3.16			4-15-2027		7,000,000		6,980,239
Wilshire Funding Corporation Series 1996-3 Class M2 ±±		7.12			8-25-2032		134,807		131,271
Wilshire Funding Corporation Series 1996-3 Class M3 ±±		7.12			8-25-2032		126,374		120,450
Wilshire Funding Corporation Series 1998-2 Class M1 ±±		2.00			12-28-2037		221,299		220,602
Total Non-Agency Mortgage-Backed Securities (Cost $161,823,377)									160,687,624
Yankee Corporate Bonds and Notes: 17.13%
Consumer Discretionary: 0.82%
Automobiles: 0.12%
Jaguar Land Rover Limited 144A		4.25			11-15-2019		1,220,000		1,216,950
Media: 0.70%
British Sky Broadcasting Group plc 144A		9.50			11-15-2018		7,000,000		7,092,154
Consumer Staples: 0.09%
Beverages: 0.09%
Suntory Holdings Limited 144A		2.55			9-29-2019		850,000		844,900
Energy: 0.71%
Oil, Gas & Consumable Fuels: 0.71%
TransCanada PipeLines Limited		9.88			1-1-2021		6,200,000		7,127,368
Financials: 12.36%
Banks: 8.63%
ABN AMRO Bank NV 144A		3.40			8-27-2021		7,000,000		6,993,833
ANZ New Zealand International Limited 144A		2.60			9-23-2019		8,175,000		8,142,535
Banco de Credito del Peru 144A		2.25			10-25-2019		4,500,000		4,432,500
Banco Santander Chile 144A		2.50			12-15-2020		8,255,000		8,058,944
Bank of Tokyo-Mitsubishi UFJ Limited 144A		2.15			9-14-2018		3,000,000		2,999,871
Banque Federative du Credit Mutuel SA 144A		2.20			7-20-2020		7,470,000		7,328,556
BPCE SA		2.50			7-15-2019		2,245,000		2,234,704
Commonwealth Bank of Australia 144A		1.75			11-7-2019		5,250,000		5,179,171
DNB Bank ASA 144A		2.13			10-2-2020		7,000,000		6,831,574
Federation des Caisses Desjardins du Quebec 144A		2.25			10-30-2020		5,000,000		4,891,649
ING Bank NV 144A		1.65			8-15-2019		7,000,000		6,909,559
Sumitomo Mitsui Banking Corporation		2.09			10-18-2019		5,000,000		4,939,300
Sumitomo Mitsui Trust Bank Limited 144A		1.95			9-19-2019		7,000,000		6,917,145
Suncorp-Metway Limited 144A		2.38			11-9-2020		4,000,000		3,911,960
Svenska Handelsbanken AB		1.50			9-6-2019		7,395,000		7,294,843
									87,066,144
Capital Markets: 0.97%
BP Capital Markets plc		1.68			5-3-2019		7,000,000		6,961,294
Macquarie Group Limited 144A		6.00			1-14-2020		2,750,000		2,843,014
									9,804,308

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

Portfolio of investments—August 31, 2018 Wells Fargo Ultra Short-Term Income Fund 21

Security name	Interest rate			Maturity date		Principal		Value
Diversified Financial Services: 2.10%
Corporacion Andina de Fomento		2.00	%		5-10-2019	$	8,000,000	$	7,949,456
GE Capital International Funding Company		2.34			11-15-2020		6,000,000		5,877,030
UBS AG 144A		2.20			6-8-2020		3,725,000		3,658,047
UBS AG		2.38			8-14-2019		3,730,000		3,715,432
									21,199,965
Insurance: 0.66%
Axis Specialty Finance plc		2.65			4-1-2019		6,641,000		6,632,103
Health Care: 1.30%
Pharmaceuticals: 1.30%
Shire Acquisitions Investment Ireland Limited		1.90			9-23-2019		2,880,000		2,846,465
Shire Acquisitions Investment Ireland Limited		2.40			9-23-2021		2,520,000		2,435,095
Teva Pharmaceuticals Industries Incorporated		1.70			7-19-2019		8,000,000		7,864,531
									13,146,091
Materials: 0.87%
Chemicals: 0.49%
Syngenta Finance NV 144A		3.70			4-24-2020		5,000,000		5,002,656
Metals & Mining: 0.38%
ArcelorMittal SA		5.50			3-1-2021		3,660,000		3,792,597
Telecommunication Services: 0.98%
Diversified Telecommunication Services: 0.98%
Deutsche Telekom International Finance BV 144A		2.23			1-17-2020		10,000,000		9,889,411
Total Yankee Corporate Bonds and Notes (Cost $174,600,905)									172,814,647
	Yield
Short-Term Investments: 6.29%
Commercial Paper: 2.11%
Baptist Memorial Health Care Facilities & Services		2.60			10-5-2018		3,500,000		3,498,530
Catholic Health Initiatives (z)		1.97			9-14-2018		10,000,000		9,992,382
Michigan State University Board of Trustees Series B		2.40			9-10-2018		7,805,000		7,805,234
									21,296,146
						Shares
Investment Companies: 3.99%
Securities Lending Cash Investment LLC (l)(r)(u)		2.07					6,848,410		6,849,095
Wells Fargo Government Money Market Fund Select Class (l)(u)		1.87					33,367,503		33,367,503
									40,216,598

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

22 Wells Fargo Ultra Short-Term Income Fund Portfolio of investments—August 31, 2018

Security name	Yield			Maturity date		Principal		Value
U.S. Treasury Securities: 0.19%
U.S. Treasury Bill (z)#		1.31	%		9-13-2018	$	1,950,000	$	1,949,070
Total Short-Term Investments (Cost $63,463,037)									63,461,814

Total investments in securities (Cost $1,015,177,005)	99.97	%		1,008,590,791
Other assets and liabilities, net	0.03			254,576
Total net assets	100.00	%	$	1,008,845,367

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

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

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

‡ Security is valued using significant unobservable inputs.

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

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

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

(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.

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

Abbreviations:

CDO Collateralized debt obligation

CLO Collateralized loan obligation

ETF Exchange-traded fund

FDIC Federal Deposit Insurance Corporation

FHLMC Federal Home Loan Mortgage Corporation

FNMA Federal National Mortgage Association

GNMA Government National Mortgage Association

GO General obligation

LIBOR London Interbank Offered Rate

LOC Letter of credit

PFA Public Finance Authority

TTFA Transportation Trust Fund Authority

Futures Contracts

Description	Number of contracts		Expiration date		Notional cost			Notional value			Unrealized gains		Unrealized losses
Short
2-Year U.S. Treasury Notes		(1,483)		12-31-2018	$	(313,291,560	)	$	(313,445,955	)	$	0	$	(154,395	)
5-Year U.S. Treasury Notes		(47)		12-31-2018		(5,323,824	)		(5,329,727	)		0		(5,903	)
											$	0	$	(160,298	)

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

Portfolio of investments—August 31, 2018 Wells Fargo Ultra Short-Term Income Fund 23

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		16,853,860		10,005,450		6,848,410	$	0	$	0	$	26,516	$	6,849,095
Wells Fargo Government Money Market Fund Select Class		119,018,607		789,550,336		875,201,440		33,367,503		0		0		646,300		33,367,503
									$	0	$	0	$	672,816	$	40,216,598		3.99	%

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

24 Wells Fargo Ultra Short-Term Income Fund Statement of assets and liabilities—August 31, 2018

Assets
Investments in unaffiliated securities (including $6,687,460 of securities loaned), at value (cost $974,960,407)	$	968,374,193
Investments in affiliated securities, at value (cost $40,216,598)		40,216,598
Principal paydown receivable		199,811
Receivable for Fund shares sold		3,669,244
Receivable for interest		6,072,267
Receivable for securities lending income		18,652
Prepaid expenses and other assets		1,553
Total assets		1,018,552,318
Liabilities
Payable upon receipt of securities loaned		6,849,095
Payable for Fund shares redeemed		1,155,037
Dividends payable		828,727
Management fee payable		258,450
Payable for daily variation margin on open futures contracts		143,805
Administration fees payable		95,451
Distribution fee payable		3,546
Trustees’ fees and expenses payable		2,269
Accrued expenses and other liabilities		370,571
Total liabilities		9,706,951
Total net assets	$	1,008,845,367
NET ASSETS CONSIST OF
Paid-in capital	$	1,048,364,808
Overdistributed net investment income		(597,033	)
Accumulated net realized losses on investments		(32,175,896	)
Net unrealized losses on investments		(6,746,512	)
Total net assets	$	1,008,845,367
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	243,908,529
Shares outstanding – Class A1		28,814,437
Net asset value per share – Class A		$8.46
Maximum offering price per share – Class A2		$8.63
Net assets – Class C	$	5,055,937
Shares outstanding – Class C1		597,976
Net asset value per share – Class C		$8.46
Net assets – Administrator Class	$	15,037,158
Shares outstanding – Administrator Class1		1,784,154
Net asset value per share – Administrator Class		$8.43
Net assets – Institutional Class	$	744,843,743
Shares outstanding – Institutional Class1		88,033,931
Net asset value per share – Institutional Class		$8.46

¹  The Fund has an unlimited number of authorized shares.

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

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

Statement of operations—year ended August 31, 2018 Wells Fargo Ultra Short-Term Income Fund 25

Investment income
Interest	$	25,292,524
Income from affiliated securities		672,816
Dividends		61,069
Total investment income		26,026,409
Expenses
Management fee		4,184,410
Administration fees
Class A		429,650
Class C		8,575
Administrator Class		25,792
Institutional Class		728,218
Shareholder servicing fees
Class A		671,328
Class C		13,399
Administrator Class		64,018
Distribution fee
Class C		40,198
Custody and accounting fees		89,485
Professional fees		72,965
Registration fees		272,009
Shareholder report expenses		82,616
Trustees’ fees and expenses		23,041
Other fees and expenses		37,500
Total expenses		6,743,204
Less: Fee waivers and/or expense reimbursements		(1,457,962	)
Net expenses		5,285,242
Net investment income		20,741,167
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		(1,361,278	)
Futures contracts		6,606,498
Net realized gains on investments		5,245,220
Net change in unrealized gains (losses) on:
Unaffiliated securities		(8,376,810	)
Futures contracts		(257,002	)
Net change in unrealized gains (losses) on investments		(8,633,812	)
Net realized and unrealized gains (losses) on investments		(3,388,592	)
Net increase in net assets resulting from operations	$	17,352,575

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

26 Wells Fargo Ultra Short-Term Income Fund Statement of changes in net assets

	Year ended August 31, 2018						Year ended August 31, 2017
Operations
Net investment income				$	20,741,167					$	20,208,850
Net realized gains on investments					5,245,220						782,603
Net change in unrealized gains (losses) on investments					(8,633,812	)					(2,659,824	)
Net increase in net assets resulting from operations					17,352,575						18,331,629
Distributions to shareholders from
Net investment income
Class A					(3,917,235	)					(3,275,149	)
Class C					(37,856	)					(21,988	)
Administrator Class					(394,368	)					(314,568	)
Institutional Class					(16,292,768	)					(16,612,992	)
Total distributions to shareholders					(20,642,227	)					(20,224,697	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		9,821,346			83,149,259			8,702,208			73,793,334
Class C		132,182			1,117,321			156,489			1,325,887
Administrator Class		5,167,624			43,651,565			1,447,554			12,229,691
Institutional Class		96,798,778			819,199,382			131,295,470			1,113,341,644
					947,117,527						1,200,690,556
Reinvestment of distributions
Class A		449,252			3,800,963			372,917			3,162,637
Class C		4,431			37,441			2,557			21,662
Administrator Class		46,300			390,336			36,668			309,753
Institutional Class		710,263			6,007,655			844,776			7,162,350
					10,236,395						10,656,402
Payment for shares redeemed
Class A		(13,762,670	)		(116,485,682	)		(14,399,228	)		(122,123,201	)
Class C		(218,323	)		(1,846,435	)		(359,267	)		(3,043,190	)
Administrator Class		(6,654,246	)		(56,159,888	)		(1,414,056	)		(11,944,464	)
Institutional Class		(134,706,249	)		(1,139,718,949	)		(147,978,477	)		(1,254,571,635	)
					(1,314,210,954	)					(1,391,682,490	)
Net decrease in net assets resulting from capital share transactions					(356,857,032	)					(180,335,532	)
Total decrease in net assets					(360,146,684	)					(182,228,600	)
Net assets
Beginning of period					1,368,992,051						1,551,220,651
End of period				$	1,008,845,367					$	1,368,992,051
Overdistributed net investment income				$	(597,033	)				$	(695,973	)

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

Financial highlights Wells Fargo Ultra Short-Term Income Fund 27

(For a share outstanding throughout each period)

	Year ended August 31
CLASS A	2018			2017			2016			2015			2014
Net asset value, beginning of period		$8.48			$8.49			$8.46			$8.53			$8.53
Net investment income		0.13			0.09			0.08			0.05			0.06
Net realized and unrealized gains (losses) on investments		(0.02	)		(0.01	)		0.03			(0.06	)		0.00
Total from investment operations		0.11			0.08			0.11			(0.01	)		0.06
Distributions to shareholders from
Net investment income		(0.13	)		(0.09	)		(0.08	)		(0.05	)		(0.06	)
Tax basis return of capital		0.00			0.00			0.00			(0.01	)		0.00
Total distributions to shareholders		(0.13	)		(0.09	)		(0.08	)		(0.06	)		(0.06	)
Net asset value, end of period		$8.46			$8.48			$8.49			$8.46			$8.53
Total return1		1.24	%		0.97	%		1.28	%		(0.07	)%		0.74	%
Ratios to average net assets (annualized)
Gross expenses		0.80	%		0.79	%		0.79	%		0.77	%		0.78	%
Net expenses		0.70	%		0.70	%		0.70	%		0.70	%		0.70	%
Net investment income		1.47	%		1.09	%		0.93	%		0.64	%		0.70	%
Supplemental data
Portfolio turnover rate		55	%		56	%		51	%		70	%		47	%
Net assets, end of period (000s omitted)		$243,909			$274,079			$319,565			$151,561			$196,459

¹ Total return calculations do not include any sales charges.

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

28 Wells Fargo Ultra Short-Term Income Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended August 31
CLASS C	2018			2017			2016			2015			2014
Net asset value, beginning of period		$8.47			$8.48			$8.45			$8.52			$8.52
Net investment income (loss)		0.06			0.02			0.01			(0.01	)		(0.01	)
Net realized and unrealized gains (losses) on investments		(0.01	)		0.00			0.03			(0.06	)		0.01
Total from investment operations		0.05			0.02			0.04			(0.07	)		0.00
Distributions to shareholders from
Net investment income		(0.06	)		(0.03	)		(0.01	)		(0.00	)1		(0.00	)1
Tax basis return of capital		0.00			0.00			0.00			(0.00	)1		0.00
Total distributions to shareholders		(0.06	)		(0.03	)		(0.01	)		(0.00	)1		(0.00	)1
Net asset value, end of period		$8.46			$8.47			$8.48			$8.45			$8.52
Total return2		0.60	%		0.22	%		0.52	%		(0.81	)%		0.05	%
Ratios to average net assets (annualized)
Gross expenses		1.55	%		1.54	%		1.54	%		1.52	%		1.53	%
Net expenses		1.45	%		1.45	%		1.45	%		1.45	%		1.45	%
Net investment income (loss)		0.72	%		0.34	%		0.17	%		(0.10	)%		(0.05	)%
Supplemental data
Portfolio turnover rate		55	%		56	%		51	%		70	%		47	%
Net assets, end of period (000s omitted)		$5,056			$5,760			$7,464			$7,642			$9,078

¹ Amount is less than $0.005.

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 Ultra Short-Term Income Fund 29

(For a share outstanding throughout each period)

	Year ended August 31
ADMINISTRATOR CLASS	2018			2017			2016			2015			2014
Net asset value, beginning of period		$8.45			$8.46			$8.42			$8.50			$8.50
Net investment income		0.13			0.10			0.09			0.07	1		0.07
Net realized and unrealized gains (losses) on investments		(0.01	)		(0.01	)		0.04			(0.07	)		0.01
Total from investment operations		0.12			0.09			0.13			0.00			0.08
Distributions to shareholders from
Net investment income		(0.14	)		(0.10	)		(0.09	)		(0.07	)		(0.08	)
Tax basis return of capital		0.00			0.00			0.00			(0.01	)		0.00
Total distributions to shareholders		(0.14	)		(0.10	)		(0.09	)		(0.08	)		(0.08	)
Net asset value, end of period		$8.43			$8.45			$8.46			$8.42			$8.50
Total return		1.39	%		1.12	%		1.55	%		(0.04	)%		0.89	%
Ratios to average net assets (annualized)
Gross expenses		0.74	%		0.73	%		0.73	%		0.71	%		0.72	%
Net expenses		0.55	%		0.55	%		0.55	%		0.55	%		0.55	%
Net investment income		1.54	%		1.24	%		1.05	%		0.81	%		0.84	%
Supplemental data
Portfolio turnover rate		55	%		56	%		51	%		70	%		47	%
Net assets, end of period (000s omitted)		$15,037			$27,245			$26,679			$44,682			$119,884

¹ Calculated based upon average shares outstanding

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

30 Wells Fargo Ultra Short-Term Income Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended August 31
INSTITUTIONAL CLASS	2018			2017			2016			2015			2014
Net asset value, beginning of period		$8.48			$8.49			$8.45			$8.53			$8.52
Net investment income		0.15			0.12			0.11			0.08			0.09
Net realized and unrealized gains (losses) on investments		(0.02	)		(0.01	)		0.04			(0.07	)		0.01
Total from investment operations		0.13			0.11			0.15			0.01			0.10
Distributions to shareholders from
Net investment income		(0.15	)		(0.12	)		(0.11	)		(0.08	)		(0.09	)
Tax basis return of capital		0.00			0.00			0.00			(0.01	)		0.00
Total distributions to shareholders		(0.15	)		(0.12	)		(0.11	)		(0.09	)		(0.09	)
Net asset value, end of period		$8.46			$8.48			$8.49			$8.45			$8.53
Total return		1.59	%		1.33	%		1.75	%		0.16	%		1.21	%
Ratios to average net assets (annualized)
Gross expenses		0.47	%		0.46	%		0.46	%		0.44	%		0.45	%
Net expenses		0.35	%		0.35	%		0.35	%		0.35	%		0.35	%
Net investment income		1.80	%		1.43	%		1.27	%		0.99	%		1.05	%
Supplemental data
Portfolio turnover rate		55	%		56	%		51	%		70	%		47	%
Net assets, end of period (000s omitted)		$744,844			$1,061,908			$1,197,514			$1,137,808			$1,418,101

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

Notes to financial statements Wells Fargo Ultra Short-Term Income Fund 31

1. ORGANIZATION

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

2. SIGNIFICANT ACCOUNTING POLICIES

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

Securities valuation

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

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

Equity securities and futures contracts 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

32 Wells Fargo Ultra Short-Term Income Fund Notes to financial statements

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.

When-issued transactions

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

Futures contracts

The Fund is subject to interest rate risk in the normal course of pursuing its investment objectives. Futures contracts are agreements between the Fund and a counterparty to buy or sell a specific amount of a commodity, financial instrument or currency at specified price and on a specified date. The Fund may buy and sell futures contracts in order to gain exposure to, or protect against, changes in interest rates. The primary risks associated with the use of futures contracts are the imperfect correlation between changes in market values of securities held by the Fund and the prices of futures contracts, and the possibility of an illiquid market. Futures contracts are generally entered into on a regulated futures exchange and cleared through a clearinghouse associated with the exchange. With futures contracts, there is minimal counterparty risk to the Fund since futures contracts are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures contracts against default.

Upon entering into a futures contracts, the Fund is required to deposit either cash or securities (initial margin) with the broker in an amount equal to a certain percentage of the contract value. Subsequent payments (variation margin) are paid to or from the broker each day equal to the daily changes in the contract value. Such payments are recorded as unrealized gains or losses and, if any, shown as variation margin receivable (payable) in the Statement of Assets and Liabilities. Should the Fund fail to make requested variation margin payments, the broker can gain access to the initial margin to satisfy the Fund’s payment obligations. When the contracts are closed, a realized gain or loss is recorded in 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.

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.

Income dividends and capital gain distributions from investment companies are recorded on the ex-dividend date. Capital gain distributions from investment companies are treated as realized gains.

Distributions to shareholders

Distributions to shareholders from net investment income are declared daily and paid monthly. Distributions from net realized gains, if any, 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.

Notes to financial statements Wells Fargo Ultra Short-Term Income Fund 33

Federal and other taxes

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

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

As of August 31, 2018, the aggregate cost of all investments for federal income tax purposes was $1,015,016,707 and the unrealized gains (losses) consisted of:

Gross unrealized gains	$	1,190,540
Gross unrealized losses		(7,776,754	)
Net unrealized losses	$	(6,586,214	)

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 August 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
$(7,738,751)	$7,738,751

Capital loss carryforwards that do not expire are required to be utilized prior to capital loss carryforwards that expire. As of August 31, 2018, capital loss carryforwards available to offset future net realized capital gains were as follows through the indicated expiration dates:

	No expiration
2019	Short-term	Long-term
$7,448,920	$1,631,759	$23,255,515

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)

34 Wells Fargo Ultra Short-Term Income Fund Notes to financial statements

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 August 31, 2018:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Agency securities	$	0	$	112,523,722	$	0	$	112,523,722
Asset-backed securities		0		98,659,538		2,594,532		101,254,070
Corporate bonds and notes		0		339,545,716		0		339,545,716
Exchange-traded funds		30,260,000		0		0		30,260,000
Municipal obligations		0		28,043,198		0		28,043,198
Non-agency mortgage-backed securities		0		160,687,624		0		160,687,624
Yankee corporate bonds and notes		0		172,814,647		0		172,814,647
Short-term investments
Commercial paper		0		21,296,146		0		21,296,146
Investment companies		33,367,503		0		0		33,367,503
U.S. Treasury securities		1,949,070		0		0		1,949,070
Investments measured at net asset value*								6,849,095
Total assets	$	65,576,573	$	933,570,591	$	2,594,532	$	1,008,590,791
Liabilities
Futures contracts	$	160,298	$	0	$	0	$	160,298
Total liabilities	$	160,298	$	0	$	0	$	160,298

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amount presented in the table is intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statement of Assets and Liabilities. The Fund’s investment in Securities Lending Cash Investments, LLC valued at $6,849,095 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

Additional sector, industry or geographic detail is included in the Portfolio of Investments.

Futures contracts are reported at their cumulative unrealized gains (losses) at measurement date as reported in the table following the Portfolio of Investments. For futures contracts, the current day’s variation margin is reported on the Statement of Assets and Liabilities. 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 August 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 and providing fund-level administrative services in connection with the Fund’s operations. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.35% and declining to 0.255% as the average daily net assets of the Fund increase. For the year ended August 31, 2018, the management fee was equivalent to an annual rate of 0.35% of the Fund’s average daily net assets.

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

Notes to financial statements Wells Fargo Ultra Short-Term Income Fund 35

Administration fees

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

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

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. When each class of the Fund has exceeded its expense cap, Funds Management has waived fees and/or reimbursed expenses from fund level expenses on a proportionate basis and then from class specific expenses; otherwise, waivers and/or reimbursements are applied against class specific expenses before fund level expenses. Funds Management has committed through December 31, 2018 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.70% for Class A shares, 1.45% for Class C shares, 0.55% for Administrator Class shares, and 0.35% for Institutional Class shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

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 August 31, 2018, Funds Distributor received $1,181 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 August 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.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding short-term securities, for the year ended August 31, 2018 were as follows:

Purchases at cost		Sales proceeds
U.S. government	Non-U.S. government	U.S. government	Non-U.S. government
$33,033,659	$590,567,102	$9,754,933	$667,123,584

6. DERIVATIVE TRANSACTIONS

During the year ended August 31, 2018, the Fund entered into futures contracts to speculate on interest rates and to help manage the duration. The Fund had an average notional amount of $363,440,344 in short futures contracts during the year ended August 31, 2018.

36 Wells Fargo Ultra Short-Term Income Fund Notes to financial statements

7. BANK BORROWINGS

The Trust (excluding the money market funds), Wells Fargo Master Trust 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.

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

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid was $20,642,227 and $20,224,697 of ordinary income for the years ended August 31, 2018 and August 31, 2017, respectively.

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

Undistributed ordinary income	Unrealized gains (losses)	Capital loss carryforward
$231,694	$(6,586,214)	$(32,336,194)

9. INDEMNIFICATION

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

10. NEW ACCOUNTING PRONOUNCEMENTS AND REGULATORY CHANGES

On August 17, 2018, the Securities and Exchange Commission (“SEC”) adopted Disclosure Update and Simplification, which amends certain disclosure requirements. The amendments are effective for filings subsequent to November 5, 2018. Management expects these amendments will impact the classification of disclosures in the financial statements.

In August 2018, FASB issued Accounting Standards Update (“ASU”) No. 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 updates the disclosure requirements for fair value measurements by modifying or removing certain disclosures and adding certain new disclosures. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. Management is currently evaluating the potential impact of this new guidance to the financial statements.

In March 2017, FASB issued ASU No. 2017-08, Premium Amortization on Purchased Callable Debt Securities. ASU 2017-08 shortens the amortization period for certain callable debt securities held at a premium. The amendments require the premium to be mortized to the earliest call date. The amendments do not require an accounting change or securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 is effective for fiscal years beginning after December 15, 2018 and for interim periods within those fiscal years . Management is currently evaluating the potential impact of this new guidance to the financial statements.

Report of independent registered public accounting firm Wells Fargo Ultra Short-Term Income Fund 37

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 Wells Fargo Ultra Short-Term Income Fund (the “Fund”), including the portfolio of investments, as of August 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 August 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 August 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

October 26, 2018

38 Wells Fargo Ultra Short-Term Income Fund Other information (unaudited)

TAX INFORMATION

For the fiscal year ended August 31, 2018, $15,573,235 has been designated as interest-related dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.

PROXY VOTING INFORMATION

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

PORTFOLIO HOLDINGS INFORMATION

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

Other information (unaudited) Wells Fargo Ultra Short-Term Income Fund 39

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 154 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 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.	N/A
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 The Ruth Bancroft Garden (non-profit organization). She is also an inactive Chartered Financial Analyst.	N/A
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 (private school). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	CIGNA Corporation
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, since 2009	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.	N/A
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.	N/A

40 Wells Fargo Ultra Short-Term Income Fund Other information (unaudited)

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
Olivia S. Mitchell (Born 1953)	Trustee, since 2006; 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.	N/A
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.	N/A
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.	N/A
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.	N/A
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, on the Board of Directors, Governance Committee and Finance Committee for the Minnesota Philanthropy Partners (Saint Paul Foundation) from 2012 to 2018, 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 the Board Chair of the Minnesota Wild Foundation since 2010.	N/A

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

Other information (unaudited) Wells Fargo Ultra Short-Term Income Fund 41

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 Kymn3 (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.
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 77 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.

³  Alexander Kymn became the Secretary and Chief Legal Officer effective April 17, 2018.

42 Wells Fargo Ultra Short-Term Income Fund Other information (unaudited)

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Wells Fargo Ultra Short-Term Income Fund

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at an in-person meeting held on May 22-23, 2018 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for Wells Fargo Ultra Short-Term Income Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Wells Capital Management Incorporated (the “Sub-Adviser”), an affiliate of Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”

At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at an in-person meeting in April 2018, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing investment performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.

In providing information to the Board, Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2018. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and investment performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.

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

Nature, extent and quality of services

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

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

Other information (unaudited) Wells Fargo Ultra Short-Term Income Fund 43

Fund investment performance and expenses

The Board considered the investment performance results for the Fund over various time periods ended December 31, 2017. The Board considered these results in comparison to the investment performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the investment performance of the Fund (Administrator Class) was higher than or in range of the average investment performance of the Universe for all periods under review. The Board also noted that the investment performance of the Fund was higher than its benchmark index, the Bloomberg Barclays S/T U.S. Govt/Credit Bond Index, all periods under review.

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

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

Investment management and sub-advisory fee rates

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

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

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

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

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

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of both WFAM and Wells Fargo & Co. (“Wells Fargo”) as a whole, from providing services to the Fund and the fund family as a whole. The Board noted that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the WFAM and Wells Fargo profitability analysis.

Funds Management reported on the methodologies and estimates used in calculating profitability, including a description of the methodology used to allocate certain expenses and recent enhancements made to the methodology.

44 Wells Fargo Ultra Short-Term Income Fund Other information (unaudited)

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

Economies of scale

The Board considered the extent to which Funds Management may experience economies of scale in the provision of management services, and the extent to which scale benefits, if any, would be shared with shareholders. In particular, the Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size. It considered that, for a small fund or a fund that shrinks in size, breakpoints conversely can result in higher fee levels. The Board also considered that in addition to management fee breakpoints, competitive management fee rates set at the outset without regard to breakpoints and fee waiver and expense reimbursement arrangements, as well as investments in the business intended to enhance services available to Fund shareholders, are means of sharing potential economies of scale with shareholders of the Fund.

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

Other benefits to Funds Management and the Sub-Adviser

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

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

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

Conclusion

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

Appendix A (unaudited) Wells Fargo Ultra Short-Term Income Fund 45

SALES CHARGE REDUCTIONS AND WAIVERS FOR CERTAIN INTERMEDIARIES

Ameriprise

Effective June 1, 2018, shareholders purchasing Fund shares through an Ameriprise Financial platform or account will be eligible only for the following Class A load waivers (front-end sales charge waivers), which may differ from those disclosed elsewhere in the Fund’s prospectus or Statement of Additional Information.

Front-end Sales Load Waivers on Class A Shares Available at Ameriprise Financial

• Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs or SAR-SEPs.

• Shares purchased through an Ameriprise Financial investment advisory program (if an Advisory or similar share class for such investment advisory program is not available)

• Shares purchased by third party investment advisors on behalf of their advisory clients through Ameriprise Financial’s platform (if an Advisory or similar share class for such investment advisory program is not available)

• Shares purchased through reinvestment of distributions and dividend reinvestment when purchasing shares of the same Fund (but not any other fund within the same fund family)

• Shares exchanged from Class C shares of the same fund in the month of or following the 10-year anniversary of the purchase date. To the extent that the Fund’s prospectus elsewhere provides for a waiver with respect to such shares following a shorter holding period, that waiver will apply to exchanges following such shorter period. To the extent that the Fund’s prospectus elsewhere provides for a waiver with respect to exchanges of Class C shares for load-waived shares, that waiver will also apply to such exchanges.

• Employees and registered representatives of Ameriprise Financial or its affiliates and their immediate family members

• Shares purchased by or through qualified accounts (including IRAs, Coverdell Education Savings Accounts, 401(k)s, 403(b) TSCAs subject to ERISA and defined benefit plans) that are held by a covered family member, defined as an Ameriprise financial advisor and/or the advisor’s spouse, advisor’s lineal ascendant (mother, father, grandmother, grandfather, great grandmother, great grandfather), advisor’s lineal descendant (son, step-son, daughter, step-daughter, grandson, granddaughter, great grandson, great granddaughter) or any spouse of a covered family member who is a lineal descendant

• Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (i.e. Rights of Reinstatement). Subject to the Fund’s policy regarding frequent purchases and redemptions of Fund shares, you may not be able to repurchase shares for the first 30 days after your redemption.

Automatic Exchange of Class C Shares Available at Ameriprise Financial

• Class C shares will automatically exchange to Class A shares in the month of the 10-year anniversary of the purchase date.

Merrill Lynch

Effective April 10, 2017, shareholders purchasing Fund shares through a Merrill Lynch platform or account will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ from those disclosed elsewhere in the Fund’s prospectus or Statement of Additional Information.

Front-end Sales Load Waivers on Class A Shares available at Merrill Lynch

• Employer-sponsored retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan

• Shares purchased by or through a 529 Plan

• Shares purchased through a Merrill Lynch affiliated investment advisory program

46 Wells Fargo Ultra Short-Term Income Fund Appendix A (unaudited)

• Shares purchased by third party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform

• Shares of funds purchased through the Merrill Edge Self-Directed platform (if applicable)

• Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the fund family)

• Shares exchanged from Class C (i.e. level-load) shares of the same fund in the month of or following the 10-year anniversary of the purchase date

• Employees and registered representatives of Merrill Lynch or its affiliates and their family members, as defined by Merrill Lynch, which may differ from the definition of family member in the Fund’s prospectus.

• Directors or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in the Fund’s prospectus

• Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (known as Rights of Reinstatement). Subject to the Fund’s policy regarding frequent purchases and redemptions of Fund shares, you may not be able to repurchase shares for the first 30 days after your redemption.

CDSC Waivers on A, B and C Shares available at Merrill Lynch

• Death or disability of the shareholder

• Shares sold as part of a systematic withdrawal plan as described in the Fund’s prospectus

• Return of excess contributions from an IRA Account

• Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 70½

• Shares sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch

• Shares acquired through a right of reinstatement

• Shares held in retirement brokerage accounts, that are exchanged for a lower cost share class due to transfer to certain fee based accounts or platforms (applicable to A and C shares only)

Front-end load Discounts Available at Merrill Lynch: Breakpoints, Rights of Accumulation & Letters of Intent

• Breakpoints as described in the Fund’s prospectus

• Rights of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.

• Letters of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over a 13-month period of time (if applicable)

Morgan Stanley

Effective on or about July 1, 2018, shareholders purchasing Fund shares through a Morgan Stanley Wealth Management transactional brokerage account will be eligible only for the following Class A load waivers (front-end sales charge waivers), which may differ from and be more limited than those disclosed in the Fund’s prospectus or Statement of Additional Information.

Front-end Sales Load Waivers on Class A Shares Available at Morgan Stanley

• Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans.

• Morgan Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules

• Shares purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund

• Shares purchased through a Morgan Stanley self-directed brokerage account

Appendix A (unaudited) Wells Fargo Ultra Short-Term Income Fund 47

• Class C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are exchanged to Class A shares of the same fund pursuant to Morgan Stanley Wealth Management’s share class exchange program.

• Shares purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred sales charge. This waiver is subject to the Fund’s policy regarding frequent purchases and redemption of Fund shares, as discussed under “Account Information—Frequent Purchases and Redemptions of Fund Shares” in the Fund’s prospectus.

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For more information

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

Wells Fargo Funds

P.O. Box 219967

Kansas City, MO 64121-9967

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 the trade name for certain investment advisory/management firms owned by Wells Fargo & Company. These firms include but are not limited to Wells Capital Management Incorporated and Wells Fargo Funds Management, LLC. Certain products managed by WFAM entities are distributed by Wells Fargo Funds Distributor, LLC (a broker/dealer and Member FINRA).

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.

315411 10-18 A223/AR223 08-18

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 August 31, 2018		Fiscal year ended August 31, 2017
Audit fees	$	421,385	$	412,012
Audit-related fees		—		—
Tax fees (1)		39,335		38,040
All other fees		—		—
	$	460,720	$	450,052

⁽¹⁾  Tax fees consist of fees for tax compliance, tax advice, tax planning and excise tax.

(e) The Chairman of the Audit Committees is authorized to pre-approve: (1) audit services for the mutual funds of Wells Fargo Funds Trust; (2) non-audit tax or compliance consulting or training services provided to the Funds by the independent auditors (“Auditors”) if the fees for any particular engagement are not anticipated to exceed $50,000; and (3) non-audit tax or compliance consulting or training services provided by the Auditors to a Fund’s investment adviser and its controlling entities (where pre-approval is required because the engagement relates directly to the operations and financial reporting of the Fund) if the fee to the Auditors for any particular engagement is not anticipated to exceed $50,000. For any such pre-approval sought from the Chairman, Management shall prepare a brief description of the proposed services. If the Chairman approves of such service, he or she shall sign the statement prepared by Management. Such written statement shall be presented to the full Committees at their next regularly scheduled meetings.

(f) Not applicable

(g) Not applicable

(h) Not applicable

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS

Not applicable.

ITEM 6. INVESTMENTS

A Portfolio of Investments for each series of Wells Fargo Funds Trust is included as part of the report to shareholders filed under Item 1 of this Form.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not applicable.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not applicable.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS

Not applicable.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees that have been implemented since the registrant’s last provided disclosure in response to the requirements of this Item.

ITEM 11. CONTROLS AND PROCEDURES

(a) The President and Treasurer have concluded that the Wells Fargo Funds Trust (the “Trust”) disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) provide reasonable assurances that material information relating to the Trust is made known to them by the appropriate persons based on their evaluation of these controls and procedures as of a date within 90 days of the filing of this report.

(b) There were no significant changes in the Trust’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the second fiscal quarter of the period covered by this report that materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

ITEM 12. EXHIBITS

(a)(1) Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as Exhibit COE.

(a)(2) Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.

(a)(3) Not applicable.

(b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is filed and attached hereto as Exhibit 99.906CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Wells Fargo Funds Trust
By:
	/s/ Andrew Owen
	Andrew Owen
	President
Date:	October 26, 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:
	/s/ Andrew Owen
	Andrew Owen
	President
Date:	October 26, 2018
By:
	/s/ Nancy Wiser
	Nancy Wiser
	Treasurer
Date:	October 26, 2018