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

FORMN-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)

Catherine Kennedy

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, 2019

ITEM 1. REPORT TO STOCKHOLDERS

Annual Report

August 31, 2019

Wells Fargo Core Plus Bond Fund

Beginning on January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, paper copies of the Wells Fargo Funds’ annual and semi-annual shareholder reports issued after this date will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Funds’ website, and you will be notified by mail each time a report is posted and provided with a website address to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling1-800-222-8222 or by enrolling at wellsfargo.com/advantagedelivery.

You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports; if you invest directly with the Fund, you can call 1-800-222-8222. Your election to receive reports in paper will apply to all Wells Fargo Funds held in your account with your financial intermediary or, if you are a direct investor, to all Wells Fargo Funds that you hold.

Contents

Letter to shareholders	2
Performance highlights	6
Fund expenses	10
Portfolio of investments	11
Financial statements
Statement of assets and liabilities	27
Statement of operations	28
Statement of changes in net assets	29
Financial highlights	30
Notes to financial statements	35
Report of independent registered public accounting firm	45
Other information	46

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The views expressed and any forward-looking statements are as of August 31, 2019, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Asset Management. 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 Asset Management and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

INVESTMENT PRODUCTS: NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾  MAY LOSE VALUE

Wells Fargo Core Plus Bond Fund  |  1

Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

Dear Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Core Plus Bond Fund for the12-month period that ended August 31, 2019. After the first half of the period yielded eitherlow-single-digit or negative investment returns, U.S. stock and global bond investors generally saw markets recover during the second half amid intensifying market volatility, global economic growth concerns, international trade staredowns, and simmering geopolitical tensions.

Overall, fixed-income investors enjoyed a distinct advantage over stock investors. For the period, U.S. stocks, based on the S&P 500 Index,¹ gained 2.92% and international stocks, as measured by the MSCI ACWI ex USA Index (Net),² fell 3.27%. The MSCI EM Index (Net)³ slipped 4.36%. Among fixed income investors, the Bloomberg Barclays U.S. Aggregate Bond Index⁴ added 10.17%, the Bloomberg Barclays Global Aggregateex-USD Index⁵ added 5.71%, the Bloomberg Barclays Municipal Bond Index⁶ gained 8.72%, and the ICE BofAML U.S. High Yield Index⁷ added 6.58%.

Entering the fourth quarter of 2018, economic data was encouraging.

Entering the fourth quarter of 2018, there were reasons for investors to be optimistic. The U.S. Bureau of Economic Analysis reported U.S. gross domestic product (GDP) grew 4.2% on an annualized basis during the second quarter. Hiring improved. Unemployment declined. Consumer spending gained. Third-quarter corporate earnings reports were generally positive. U.S. trade negotiations with Mexico and Canada advanced. In September 2018, the U.S. Federal Reserve (Fed) raised the federal funds rate by 25 basis points (bps; 100 bps equal 1.00%) to a target range of between 2.00% and 2.25% in an indication of its confidence that U.S. economic growth was sustainable.

International markets presented numerous challenges. U.S.-China trade tensions increased. The U.S. imposed $200 billion in tariffs on Chinese goods. China reacted with $60 billion in tariffs on U.S. goods. Economic growth in China caused concern. In September 2018, international investors began to factor in a number of disconcerting economic and business data points: lower July manufacturing and industrial orders in Germany; declining purchasing managers’ index numbers for August from the United Kingdom, China, and India; and declining household spending for August in Japan. Taken together, the data fed growing concerns that global economic growth was slowing.

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 and emerging markets, excluding the U.S. 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 the equity market performance of emerging markets. 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 Aggregateex-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-termtax-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 2019. ICE Data Indices, LLC. All rights reserved.

2  |  Wells Fargo Core Plus Bond Fund

Letter to shareholders (unaudited)

Investors had to digest unsettling events during the fourth quarter of 2018.

November’s U.S. midterm elections shifted control of the House of Representatives from Republicans to Democrats, presaging partisan clashes that followed and caused uncertainty among investors. A partial U.S. government shutdown driven by partisan policy disputes extended into January 2019. Third-quarter U.S. GDP was announced at an annualized 3.4% rate, lower than the second-quarter rate. Brexit efforts stalled. The value of the renminbi declined even as the People’s Bank of China cut reserve requirement ratios, accelerated infrastructure spending, and cut taxes in efforts to spur economic activity.

The combination of news in the U.S. and generally weak economic indicators outside of the U.S. caused investors to seek safe havens. December’s S&P 500 Index performance was the worst since 1931. Globally, fixed-income investments fared better than stocks during the last two months of the year. The Fed increased the federal funds rate by 25 bps in December 2018 to a target range of between 2.25% and 2.50% even as observers expressed concerns that higher rates could slow the economy.

The market climbs a wall of worry.

Investment returns appeared to reaffirm the adage that markets climb a wall of worry as 2019 opened. Following its December decline, the S&P 500 Index gained 8.01% for the month of January, the best monthly performance in 30 years. Returns for the MSCI ACWI ex USA Index (Net), the Bloomberg Barclays U.S. Aggregate Bond Index, and the Bloomberg Barclays Global Aggregateex-USD Index also were positive.

In February 2019, signs of slowing global growth grew more ominous. The Bureau of Economic Analysis announced fourth-quarter 2018 GDP grew at an annualized 2.2% rate, down from the levels of the prior two quarters. In a February report, the Bank of England forecast the slowest growth for 2019 since the financial crisis. China and the U.S. continued to wrangle over trade issues. By the end of the first quarter of 2019, more accommodative Fed sentiment and steady, if not spectacular, U.S. economic and business metrics encouraged domestic investors.

Early second-quarter 2019 enthusiasm among investors faded.

During April 2019, favorable sentiment found additional support in reports of sustained low inflation, solid employment data, and first-quarter U.S. GDP of an annualized rate of 3.2%. During May, markets tumbled on mixed investment signals. In the U.S., partisan wrangling ramped up as Democrats and Republicans set their sights on 2020 presidential politics. The U.K.’s Brexit contretemps caused Prime Minister Theresa May to resign. Boris Johnson succeeded her only to exacerbate uncertainty about Brexit’s resolution ahead of an October 2019 deadline. The European Commission downgraded the 2019 growth forecast to 1.2%. The U.S. increased tariffs on products from China, China responded, and then talks broke down. President Donald Trump threatened to turn his foreign policy tariff tool to Mexico over immigration issues.

During the third quarter of 2019, investors regrouped. Just as the investment horizon appeared to darken, sentiment turned and U.S. equity markets gained during June and July. The gains, primarily driven by geopolitical and monetary policy events, pushed equity markets to new highs. European Central Bank President Mario Draghi said that if the outlook doesn’t improve, the bank would cut rates or buy more assets to prop up inflation. President Trump backed off of tariff threats against Mexico and China. In the U.S., the Fed implemented a 0.25% federal funds rate cut in July.

Later in July, the U.S. reversed course and threatened to impose higher tariffs on China’s exports after talks failed. China responded with tariff threats of its own and

“December’s S&P 500 Index performance was the worst since 1931.”

“Following its December decline, the S&P 500 Index gained 8.01% for the month of January, the best monthly performance in 30 years.”

Wells Fargo Core Plus Bond Fund  |  3

Letter to shareholders (unaudited)

For further information about your Fund, contact your investment professional, visit our website at wfam.com, or call us directly at1-800-222-8222.

devalued the renminbi, a move that roiled global markets. Major U.S. stock market indices closed July 2019 with the worst weekly results of the year. Bond prices gained as Treasury yields fell to levels not seen since November 2016 and the yield curve inverted at multiple points along the30-year arc.

In a microcosm, August 2019 encapsulated many of the unnerving events that plagued investors during the prior 11 months. The U.S.-China trade relationship swung from discouraging to hopeful and back again with no evident compromise on the horizon. Evidence of a continued global economic slowdown continued to mount as central banks in China, New Zealand, and Thailand cut interest rates. Industrial and manufacturing data declined in China, Canada, Japan, and Germany. Adding to the uncertain environment, Italy’s prime minister resigned, many feared a crackdown in Hong Kong as protesters sustained their calls for reform throughout the month, and Boris Johnson planned to suspend Parliament as Brexit’s deadline neared.

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

4  |  Wells Fargo Core Plus Bond Fund

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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, 2019

		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 (STYAX)	7-13-1998		4.79		3.06		4.33		9.74		4.02		4.81		0.93		0.74
Class C (WFIPX)	7-13-1998		7.91		3.26		4.03		8.91		3.26		4.03		1.68		1.49
Class R6 (STYJX)3	10-31-2016		–		–		–		10.14		4.38		5.15		0.55		0.36
Administrator Class (WIPDX)4	7-30-2010		–		–		–		9.88		4.14		4.94		0.87		0.63
Institutional Class (WIPIX)	7-18-2008		–		–		–		10.17		4.36		5.14		0.60		0.41
Bloomberg Barclays U.S. Aggregate Bond Index5	–		–		–		–		10.17		3.35		3.91		–		–

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. Currentmonth-end performance is available on the Fund’s website,wfam.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 maximumfront-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 afront-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.

6  |  Wells Fargo Core Plus Bond Fund

Performance highlights (unaudited)

Growth of $10,000 investment as of August 31, 2019⁶

^‡  CFA^® and Chartered Financial Analyst^® are trademarks owned by CFA Institute.

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, 2019, to waive fees and/or reimburse expenses to the extent necessary to cap the expenses of each class after fee waivers at 0.73% for Class A, 1.48% for Class C, 0.35% for Class R6, 0.62% for Administrator Class, and 0.40% for Institutional Class. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses (if any), and extraordinary expenses are excluded from the expense cap. Prior to or after the commitment expiration date, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Without this cap, the Fund’s returns would have been lower. The expense ratio paid by an investor is the net expense ratio (the total annual fund operating expenses after fee waivers) as stated in the prospectuses.

³  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.

⁴  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.

⁵  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.

⁶  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%.

⁷  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.

⁸  The Personal Consumption Expenditures Index is the primary measure of consumer spending on goods and services in the U.S. economy. It accounts for abouttwo-thirds of domestic final spending and is part of the personal income report issued by the Bureau of Economic Analysis of the Department of Commerce. You cannot invest directly in an index.

⁹  Amounts are calculated based on the total long-term investments of the Fund. These amounts are subject to change and may have changed since the date specified.

Wells Fargo Core Plus Bond Fund  |  7

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 Bond Index, for the12-month period that ended August 31, 2019.

∎ The Fund’s shorter duration relative to the index and exposure to a flatter U.S. Treasury yield curve detracted from performance during the period.

∎ The Fund’snon-U.S. holdings, especially European investment grade and high yield, contributed to performance, as did overweight allocations to U.S. high-yield andBBB-rated corporate bonds.

Ten largest holdings(%) as of August 31, 20197
FNMA, 3.50%,8-1-2049	2.40
FNMA, 3.50%,3-1-2048	1.48
U.S. Treasury Bond, 1.63%,8-15-2029	1.30
TVA, 5.88%,4-1-2036	1.04
U.S. Treasury Bond, 2.88%,5-15-2049	1.03
GNMA, 3.00%,9-19-2049	0.96
U.S. Treasury Note, 2.00%,10-31-2022	0.92
U.S. Treasury Bond, 3.00%,8-15-2048	0.91
FNMA, 3.00%,11-1-2047	0.91
U.S. Treasury Bond, 3.38%,5-15-2044	0.83

An economic slowdown

The pace of gross domestic product growth decelerated over the past 12 months as business investment, inventory effects, and trade restrained overall economic activity. For the four quarters that ended June 30, 2019, the U.S. economy expanded by 2.3% in inflation-adjusted terms, compared with a 3.2% trailing12-month growth rate at the midway point in 2018. Rising anxiety over the contentious U.S.-China trade relationship appeared to discourage capital investment over the12-month period that ended August 31, 2019. Housing investment also was a modest drag despite low mortgage rates. Consumer spending held up fairly well, however, with the Personal Consumption Expenditures Index⁸ rising at a 2.7% year-over-year rate though the end of July.

Consumption was supported by a relatively firm labor market. While job growth slowed modestly over the period, wages grew by 3.2% in real terms and the unemployment rate remained below 4%. Measures of labor force participation also generally showed improvement.

In response to slower growth and lower-than-targeted inflation, the Federal Open Market Committee (FOMC) voted to reduce its policy rate target for overnight funds by 0.25% at its July 31 meeting. This was the first interest rate reduction engineered by the FOMC in the decade since the financial crisis. While the monetary authorities suggested that their decision should be seen as a “midcourse correction” rather than the beginning of an extended easing cycle, markets have priced multiple additional rate cuts into the term structure. Indeed, interest rates fell across the board over the past 12 months, with intermediate-term Treasury yields dropping by about 1.35%.

Portfolio allocation as of August 31, 2019⁹

The Fund reduced its overall allocation to plus sectors outside the benchmark throughout the period while increasing allocations to sectors with better valuations, namely securitized assets.

During the period, the Fund decreased holdings in European high-yield bonds and U.S. floating-rate loans while increasing the allocation to securitized debt, namely higher-quality collateralized loan obligations and asset-backed securities. Given strong performance and tight valuations in many plus sectors during the period, we gradually reduced allocations there in favor of higher-quality securitized sectors with strong fundamentals. The Fund started the period with a short duration profile relative to the index given the likelihood of the FOMC continuing to gradually reduce its accommodative monetary policy as we entered 2019. This positioning changed as the period ended, however, and the Fund ended closer to neutral due to the rising risk of a recession and growing downward pressure from negatively yielding bonds globally.

Please see footnotes on page 7.

8  |  Wells Fargo Core Plus Bond Fund

Performance highlights (unaudited)

Tighter U.S. high-yield spreads and selection within U.S. investment-grade credit benefited results.Non-U.S. holdings, especially European investment grade and high yield materially outperformed, while emerging markets and exposure tonon-U.S. currency produced mixed results. The Fund’s shorter duration position in an environment where interest rates moved lower than the market anticipated was a detractor from relative performance during the reporting period.

We expect trend economic growth to continue in the U.S. with a more challenging outlook across the globe.

U.S.-China trade disputes, a global economic slowdown, and dovish tilts from central banks across the world have depressed rates in all developed markets, including the U.S. Even with a continued tight labor market and rather loose financial conditions, the U.S. market is pricing in several more rate cuts in 2019 and it looks more likely that further stimulus could be coming from the European Central Bank. We plan to trade our duration position more tactically and not fight the market’s sentiment despite the stable economic outlook.

The spreads on most credit sectors tightened back inside of their five-year averages near the end of the period, and U.S. Treasury yields have inverted across a number of important points along the curve. This tells us that valuations are less attractive than they were earlier in the year and that we should expect further bouts of volatility sooner rather than later. Against this backdrop, we have reduced credit risk thoughtfully throughout the period but will look to become more aggressive if opportunities present themselves later this year.

Wells Fargo Core Plus Bond Fund  |  9

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 thesix-month period and held for the entire period from March 1, 2019 to August 31, 2019.

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 3-1-2019		Ending account value 8-31-2019		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,072.79	$	3.81		0.73	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.53	$	3.72		0.73	%
Class C
Actual	$	1,000.00	$	1,068.80	$	7.72		1.48	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.75	$	7.53		1.48	%
Class R6
Actual	$	1,000.00	$	1,074.71	$	1.83		0.35	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.44	$	1.78		0.35	%
Administrator Class
Actual	$	1,000.00	$	1,073.53	$	3.24		0.62	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.08	$	3.16		0.62	%
Institutional Class
Actual	$	1,000.00	$	1,075.30	$	2.09		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 theone-half-year period).

10  |  Wells Fargo Core Plus Bond Fund

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Agency Securities: 19.28%
FHLMC %%		3.00	%		9-1-2034	$	1,651,175	$	1,693,580
FHLMC		3.50			6-15-2042		3,492,951		3,593,509
FHLMC		3.50			12-1-2045		3,209,998		3,353,857
FHLMC		3.50			12-1-2045		1,070,373		1,117,667
FHLMC		4.00			6-1-2044		2,376,624		2,513,799
FHLMC (12 Month LIBOR +1.33%)±		4.26			1-1-2036		19,106		19,758
FHLMC		5.00			6-1-2036		214,868		239,183
FHLMC		5.00			8-1-2040		219,703		242,155
FHLMC		5.50			8-1-2038		52,397		58,989
FHLMC		5.50			12-1-2038		464,555		522,836
FHLMC		5.50			6-1-2040		703,052		782,414
FHLMC		8.00			2-1-2030		185		215
FHLMC Series 2015-SC01 Class 1A		3.50			5-25-2045		803,816		820,109
FHLMC Series 3774 Class AB		3.50			12-15-2020		35,050		35,251
FHLMC Series K020 Class X1±±(c)		1.53			5-25-2022		13,036,496		416,112
FHLMC SeriesT-42 Class A5		7.50			2-25-2042		1,369,707		1,653,754
FHLMC SeriesT-57 Class 2A1±±		4.16			7-25-2043		41,092		44,674
FHLMC SeriesT-59 Class 2A1±±		4.03			10-25-2043		211,108		224,109
FNMA		3.50			3-1-2048		13,003,784		13,468,482
FNMA ¤		0.00			10-9-2019		5,000,000		4,989,422
FNMA (12 Month LIBOR +1.61%)±		2.49			5-1-2046		1,299,353		1,316,425
FNMA (12 Month LIBOR +1.61%)±		2.52			3-1-2046		1,132,757		1,148,726
FNMA		3.00			2-1-2034		66,456		68,048
FNMA		3.00			11-1-2045		1,946,837		2,005,998
FNMA		3.00			12-1-2045		4,927,617		5,077,517
FNMA		3.00			12-1-2046		2,268,147		2,330,218
FNMA		3.00			11-1-2047		8,066,713		8,278,740
FNMA		3.00			4-1-2048		5,660,511		5,795,506
FNMA		3.02			2-1-2026		3,151,837		3,339,484
FNMA		3.27			7-1-2022		1,187,318		1,233,278
FNMA		3.48			3-1-2029		994,180		1,104,270
FNMA		3.50			10-1-2043		983,462		1,028,615
FNMA		3.50			4-1-2045		256,545		267,941
FNMA		3.50			8-1-2045		5,726,064		5,975,833
FNMA		3.50			8-1-2049		21,185,637		21,818,736
FNMA		3.62			3-1-2029		443,000		499,548
FNMA		3.63			3-1-2029		1,250,000		1,397,531
FNMA		3.77			3-1-2029		994,826		1,122,144
FNMA		3.77			3-1-2029		1,085,591		1,223,579
FNMA		3.95			9-1-2021		397,193		410,457
FNMA		4.00			2-1-2046		468,949		493,837
FNMA		4.00			4-1-2046		2,479,870		2,613,426
FNMA		4.00			6-1-2048		6,673,517		6,930,353
FNMA		4.00			9-1-2048		4,281,499		4,444,989
FNMA		4.00			9-1-2048		3,565,054		3,716,160
FNMA		4.00			10-1-2048		549,922		571,063
FNMA		4.50			11-1-2048		6,381,963		6,726,359
FNMA (12 Month LIBOR +1.78%)±		4.50			8-1-2036		20,438		21,550
FNMA (12 Month LIBOR +1.73%)±		4.61			9-1-2036		13,201		13,742
FNMA (1 Year Treasury Constant Maturity +2.26%)±		4.72			8-1-2036		690,202		729,129
FNMA (1 Year Treasury Constant Maturity +2.27%)±		4.90			1-1-2036		49,313		51,934

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

Wells Fargo Core Plus Bond Fund  |  11

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA		5.00	%		1-1-2024	$	47,672	$	49,444
FNMA		5.00			2-1-2036		23,616		26,293
FNMA		5.00			6-1-2040		82,415		90,689
FNMA		5.00			8-1-2040		1,373,989		1,509,710
FNMA		5.50			11-1-2023		34,469		36,129
FNMA		5.50			8-1-2034		82,376		93,191
FNMA		5.50			2-1-2035		25,157		28,450
FNMA		5.50			8-1-2038		101,612		109,667
FNMA		5.50			8-1-2038		183,031		197,541
FNMA		6.00			10-1-2037		438,435		500,851
FNMA		6.00			11-1-2037		31,725		36,202
FNMA		6.50			7-1-2036		20,914		24,999
FNMA		6.50			7-1-2036		10,471		12,130
FNMA		6.50			11-1-2036		4,559		5,193
FNMA		7.00			12-1-2022		95,952		98,373
FNMA		7.00			7-1-2036		10,549		11,393
FNMA		7.00			11-1-2037		5,953		6,675
FNMA		7.50			5-1-2038		1,904		1,920
FNMA Series2002-T12 Class A3		7.50			5-25-2042		5,871		7,082
FNMA Series2003-W08 Class 4A±±		4.54			11-25-2042		122,839		127,369
FNMA Series2003-W14 Class 2A±±		4.42			6-25-2045		94,120		99,828
FNMA Series2003-W14 Class 2A±±		4.62			1-25-2043		214,628		224,563
FNMA Series2004-W11 Class 1A3		7.00			5-25-2044		1,009,219		1,130,379
FNMA Series2004-W15 Class 1A3		7.00			8-25-2044		529,667		625,068
GNMA		3.00			11-20-2045		3,945,155		4,086,514
GNMA %%		3.00			9-19-2049		8,420,000		8,681,152
GNMA		3.50			9-20-2047		3,256,646		3,397,728
GNMA		3.50			12-20-2047		6,862,215		7,156,797
GNMA		4.00			12-20-2047		3,964,905		4,154,377
GNMA		4.50			10-20-2048		94,646		98,855
GNMA %%		4.50			8-20-2049		1,624,707		1,717,504
GNMA		5.00			7-20-2040		559,981		617,532
GNMA		7.50			12-15-2029		631		704
GNMA Series2008-22 Class XM±±(c)		1.01			2-16-2050		990,973		23,606
STRIPS ¤		0.00			5-15-2039		4,670,000		3,185,153
TVA		5.88			4-1-2036		6,400,000		9,447,427
Total Agency Securities (Cost $169,268,897)									175,165,499
Asset-Backed Securities: 9.01%
Ally Auto Receivables Trust Series2019-1 Class A3		2.91			9-15-2023		4,945,000		5,039,614
AmeriCredit Automobile Receivables Trust Series2015-2 Class D		3.00			6-8-2021		2,462,000		2,464,203
California Republic Auto Receivables Trust Series2017-1 Class A4		2.28			6-15-2022		4,792,996		4,793,651
Carmax Auto Owner Trust Series2015-4 Class C		2.50			10-15-2021		1,885,000		1,885,228
Chesapeake Funding LLC Series2016-2A Class A1 144A		1.88			6-15-2028		1,110,067		1,109,410
Citibank Credit Card Issuance Trust Series2016-A1 Class A1		1.75			11-19-2021		370,000		369,665
Dell Equipment Finance Trust Series2018-1 Class A2A 144A		2.97			10-22-2020		3,234,851		3,241,669
Drive Auto Receivables Trust Series2018-3 Class B		3.37			9-15-2022		5,590,000		5,603,050
DT Auto Owner Trust Series2016-1A Class D 144A		4.66			12-15-2022		3,056,040		3,075,936
Educational Services of America Series2015-1 Class A (1 Month LIBOR +0.80%) 144A±		2.95			10-25-2056		991,510		985,236
Enterprise Fleet Financing Trust Series2017-2 Class A2 144A		1.97			1-20-2023		4,146,102		4,141,257

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

12  |  Wells Fargo Core Plus Bond Fund

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Asset-Backed Securities (continued)
Five Guys Funding LLC Series17-1A Class A2 144A		4.60	%		7-25-2047	$	1,597,925	$	1,694,011
GM Financial Consumer Automobile Receivables Trust Series2017-2A Class A3 144A		1.86			12-16-2021		4,678,963		4,671,702
Hertz Vehicle Financing LLC Series2018-2A Class A 144A		3.65			6-27-2022		1,800,000		1,842,028
Hertz Vehicle Financing LLC Series2019-1A Class A 144A		3.71			3-25-2023		3,308,000		3,419,167
Honda Auto Receivables Owner Trust Series2016-2 Class A4		1.62			8-15-2022		781,689		781,484
Honda Auto Receivables Owner Trust Series2016-4 Class A4		1.36			1-18-2023		4,998,000		4,974,692
MMAF Equipment Finance LLC Series2017-AA Class A4 144A		2.41			8-16-2024		1,975,000		1,989,807
MMAF Equipment Finance LLC Series2019-A Class A2 144A		2.84			1-10-2022		2,000,000		2,015,768
Navient Student Loan Trust Series2017-A Class A1 (1 Month LIBOR +0.40%) 144A±		2.60			12-16-2058		354,938		354,837
Nissan Auto Lease Trust Series2017-B Class A3		2.05			9-15-2020		1,097,170		1,096,844
Oscar US Funding Trust Series2016-2A Class A4 144A		2.99			12-15-2023		5,400,000		5,433,878
SLM Student Loan Trust Series2004-1 Class A4 (3 Month LIBOR +0.26%) ±		2.54			10-27-2025		1,341,087		1,332,723
South Carolina Student Loan Corporation Series2014-1 Class A1 (1 Month LIBOR +0.75%)±		2.98			5-1-2030		1,810,496		1,799,609
Student Loan Consolidation Center Series2011-1 Class A (1 Month LIBOR +1.22%) 144A±		3.37			10-25-2027		1,474,214		1,478,568
TCF Auto Receivables Owner Trust Series2016-1A Class A4 144A		2.03			2-15-2022		1,730,026		1,727,085
Towd Point Asset Trust Series2018-SL1 Class A (1 Month LIBOR +0.60%) 144A±		2.75			1-25-2046		2,821,514		2,778,786
Toyota Auto Receivables Owner Trust Series2018-D Class A3		3.18			3-15-2023		5,995,000		6,124,250
Volvo Financial Equipment LLC Series2018-AA Class A (1 Month LIBOR +0.52%) 144A±		2.72			7-17-2023		2,590,000		2,593,810
Westlake Automobile Receivable Series2019-2A Class A1 144A		2.53			6-15-2020		1,680,420		1,680,829
Wheels SPV LLC Series2018-1A Class A2 144A		3.06			4-20-2027		1,290,559		1,297,671
Total Asset-Backed Securities (Cost $81,421,332)									81,796,468
Corporate Bonds and Notes: 20.35%
Communication Services: 1.75%
Diversified Telecommunication Services: 0.61%
AT&T Incorporated		4.75			5-15-2046		1,975,000		2,208,343
AT&T Incorporated		5.65			2-15-2047		1,050,000		1,316,092
Verizon Communications Incorporated		5.01			4-15-2049		882,000		1,127,494
Verizon Communications Incorporated		5.50			3-16-2047		675,000		906,050
									5,557,979
Media: 0.56%
CCO Holdings LLC 144A		5.13			5-1-2027		1,300,000		1,374,737
Charter Communications Operating LLC		5.38			4-1-2038		705,000		795,182
Charter Communications Operating LLC		6.48			10-23-2045		655,000		809,934
Diamond Sports Group LLC 144A		5.38			8-15-2026		70,000		73,500
Diamond Sports Group LLC 144A		6.63			8-15-2027		70,000		73,325
Discovery Communications LLC		6.35			6-1-2040		1,550,000		1,921,272
Nexstar Escrow Incorporated 144A		5.63			7-15-2027		45,000		46,913
									5,094,863
Wireless Telecommunication Services: 0.58%
Crown Castle Towers LLC 144A		3.22			5-15-2042		2,600,000		2,636,703
SBA Tower Trust 144A		3.72			4-9-2048		1,968,000		2,045,572
Sprint Spectrum Company 144A		5.15			9-20-2029		530,000		571,075
									5,253,350

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

Wells Fargo Core Plus Bond Fund  |  13

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Consumer Discretionary: 0.44%
Hotels, Restaurants & Leisure: 0.34%
Las Vegas Sands Corporation		3.90	%		8-8-2029	$	3,000,000	$	3,090,899
Multiline Retail: 0.10%
Macy’s Retail Holdings Incorporated		3.45			1-15-2021		940,000		947,622
Consumer Staples: 0.49%
Beverages: 0.23%
Anheuser-Busch InBev Worldwide Incorporated		4.60			4-15-2048		1,810,000		2,104,077
Tobacco: 0.26%
Altria Group Incorporated		4.40			2-14-2026		1,620,000		1,776,391
Reynolds American Incorporated		7.00			8-4-2041		450,000		568,209
									2,344,600
Energy: 2.90%
Energy Equipment & Services: 0.07%
Oceaneering International Incorporated		6.00			2-1-2028		680,000		654,500
Oil, Gas & Consumable Fuels: 2.83%
Antero Resources Corporation		5.38			11-1-2021		1,900,000		1,845,375
Apache Corporation		5.35			7-1-2049		1,250,000		1,303,056
Baker Hughes LLC		2.77			12-15-2022		1,870,000		1,903,951
Boardwalk Pipelines LP		4.80			5-3-2029		1,620,000		1,710,175
Energy Transfer Operating Partners LP		5.25			4-15-2029		905,000		1,036,680
Energy Transfer Operating Partners LP		6.13			12-15-2045		1,330,000		1,581,837
EQT Corporation		3.90			10-1-2027		4,955,000		4,315,802
Indigo Natural Resources LLC 144A		6.88			2-15-2026		1,000,000		825,000
Midcontinent Express Pipeline LLC 144A		6.70			9-15-2019		4,234,000		4,237,176
Occidental Petroleum Corporation		4.40			8-15-2049		1,570,000		1,637,549
Rockies Express Pipeline LLC 144A		5.63			4-15-2020		2,250,000		2,300,074
SemGroup Corporation		7.25			3-15-2026		875,000		835,625
Southern Star Central Corporation 144A		5.13			7-15-2022		1,189,000		1,202,685
Whiting Petroleum Corporation		1.25			4-1-2020		975,000		955,916
									25,690,901
Financials: 6.47%
Banks: 1.90%
Bank of America Corporation (3 Month LIBOR +0.94%)±		3.86			7-23-2024		1,310,000		1,390,972
Bank of America Corporation		3.95			4-21-2025		1,170,000		1,249,215
Bank of America Corporation (3 Month LIBOR +3.90%)±		6.10			12-29-2049		2,590,000		2,823,100
BBVA Bancomer SA 144A		7.25			4-22-2020		1,000,000		1,025,010
Citigroup Incorporated (3 Month LIBOR +4.52%)±		6.25			12-29-2049		1,030,000		1,153,600
Deutsche Bank AG		4.88			12-1-2032		1,750,000		1,564,255
JPMorgan Chase & Company		2.97			1-15-2023		2,550,000		2,602,144
JPMorgan Chase & Company (3 Month LIBOR +3.25%)±		5.15			12-29-2049		3,625,000		3,715,625
PNC Financial Services (3 Month LIBOR +3.30%)±		5.00			12-29-2049		565,000		580,538
Santander Holdings USA Incorporated		3.70			3-28-2022		1,125,000		1,154,387
									17,258,846

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

14  |  Wells Fargo Core Plus Bond Fund

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Capital Markets: 0.73%
Blackstone Holdings Finance Company LLC 144A		5.00	%		6-15-2044	$	1,015,000	$	1,263,863
Goldman Sachs Group Incorporated (3 Month LIBOR +0.82%)±		2.88			10-31-2022		1,910,000		1,936,314
Morgan Stanley		3.70			10-23-2024		3,235,000		3,455,645
									6,655,822
Consumer Finance: 1.82%
Daimler Finance NA LLC 144A		1.75			10-30-2019		2,215,000		2,213,029
ERAC USA Finance LLC 144A		4.50			2-15-2045		1,695,000		1,930,645
Ford Motor Credit Company LLC		3.20			1-15-2021		2,890,000		2,904,304
General Motors Financial Company Incorporated		5.65			1-17-2029		1,330,000		1,488,071
PACCAR Financial Corporation		2.30			8-10-2022		3,000,000		3,032,092
Synchrony Financial		2.85			7-25-2022		2,000,000		2,026,987
Synchrony Financial		3.95			12-1-2027		2,800,000		2,902,720
									16,497,848
Diversified Financial Services: 0.36%
Brookfield Finance LLC		4.00			4-1-2024		2,005,000		2,138,851
LPL Holdings Incorporated 144A		5.75			9-15-2025		1,100,000		1,157,750
									3,296,601
Insurance: 1.66%
Assurant Incorporated		3.70			2-22-2030		4,250,000		4,273,771
Athene Holding Limited		4.13			1-12-2028		3,000,000		3,069,271
Brighthouse Financial Incorporated		4.70			6-22-2047		1,955,000		1,761,028
Guardian Life Insurance Company 144A		4.85			1-24-2077		1,045,000		1,354,375
National Life Insurance Company (3 Month LIBOR +3.31%) 144A±		5.25			7-19-2068		1,668,000		1,977,307
PartnerRe Finance II Incorporated (3 Month LIBOR +2.33%)±		4.85			12-1-2066		1,345,000		979,389
Transatlantic Holdings Incorporated		8.00			11-30-2039		1,100,000		1,658,042
									15,073,183
Health Care: 1.90%
Health Care Providers & Services: 1.90%
CHS Incorporated «		5.13			8-1-2021		1,000,000		1,000,000
CommonSpirit Health		2.95			11-1-2022		1,250,000		1,272,853
CommonSpirit Health		3.82			10-1-2049		1,810,000		1,877,294
CVS Health Corporation		4.78			3-25-2038		3,100,000		3,476,223
Dignity Health		3.81			11-1-2024		2,000,000		2,140,160
Highmark Incorporated 144A		6.13			5-15-2041		710,000		884,312
Magellan Health Incorporated		4.90			9-22-2024		2,710,000		2,712,710
WellPoint Incorporated		3.13			5-15-2022		3,804,000		3,896,615
									17,260,167
Industrials: 1.31%
Airlines: 0.22%
American Airlines Group Company 144A		5.50			10-1-2019		2,000,000		2,003,000
Industrial Conglomerates: 0.27%
General Electric Company		4.63			1-7-2021		1,060,000		1,083,965
General Electric Company (3 Month LIBOR +3.33%)±		5.00			12-29-2049		1,495,000		1,356,713
									2,440,678

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

Wells Fargo Core Plus Bond Fund  |  15

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Machinery: 0.00%
Harsco Corporation 144A		5.75	%		7-31-2027	$	20,000	$	20,725
Trading Companies & Distributors: 0.20%
Air Lease Corporation		3.63			12-1-2027		1,690,000		1,761,080
Transportation Infrastructure: 0.62%
Toll Road Investors Partnership II LP 144A¤		0.00			2-15-2027		1,050,000		734,492
Toll Road Investors Partnership II LP 144A¤		0.00			2-15-2026		5,630,000		4,163,513
Toll Road Investors Partnership II LP 144A¤		0.00			2-15-2028		1,150,000		763,038
									5,661,043
Information Technology: 2.25%
Communications Equipment: 0.24%
Motorola Solutions Incorporated		4.60			2-23-2028		2,000,000		2,168,379
Electronic Equipment, Instruments & Components: 0.11%
Arrow Electronics Incorporated		3.88			1-12-2028		1,000,000		1,033,145
IT Services: 0.24%
Global Payments Incorporated		4.15			8-15-2049		2,030,000		2,147,599
Semiconductors & Semiconductor Equipment: 0.76%
Broadcom Corporation		3.88			1-15-2027		3,140,000		3,142,141
Qualcomm Incorporated		3.00			5-20-2022		3,700,000		3,805,291
									6,947,432
Software: 0.48%
Citrix Systems Incorporated		4.50			12-1-2027		2,045,000		2,204,126
Symantec Corporation		4.20			9-15-2020		2,145,000		2,176,122
									4,380,248
Technology Hardware, Storage & Peripherals: 0.42%
Apple Incorporated		4.65			2-23-2046		990,000		1,266,149
Diamond 1 Finance Corporation 144A		8.35			7-15-2046		1,175,000		1,543,784
NCR Corporation		4.63			2-15-2021		1,000,000		1,000,100
									3,810,033
Materials: 0.58%
Containers & Packaging: 0.58%
Silgan Holdings Incorporated		3.25			3-15-2025		1,800,000		2,040,111
WRKCo Incorporated		3.90			6-1-2028		3,000,000		3,184,419
									5,224,530
Real Estate: 1.76%
Equity REITs: 1.51%
Federal Realty Investment Trust		3.63			8-1-2046		915,000		971,948
Omega Healthcare Investors Incorporated		4.50			1-15-2025		2,130,000		2,251,906
Omega Healthcare Investors Incorporated		5.25			1-15-2026		1,700,000		1,881,250
Sabra Health Care LP / Sabra Capital Corporation		4.80			6-1-2024		2,000,000		2,096,860
Tanger Properties LP		3.75			12-1-2024		1,600,000		1,645,848
Welltower Incorporated		4.25			4-1-2026		4,465,000		4,875,425
									13,723,237

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

16  |  Wells Fargo Core Plus Bond Fund

Portfolio of investments—August 31, 2019

		Interest rate			Maturity date		Principal		Value
Real Estate Management & Development: 0.25%
Washington Prime Group Incorporated			3.85	%		4-1-2020	$	2,275,000	$	2,260,281
Utilities: 0.50%
Electric Utilities: 0.39%
Basin Electric Power Cooperative 144A			4.75			4-26-2047		1,315,000		1,580,385
ITC Holdings Corporation			2.70			11-15-2022		673,000		683,122
Oglethorpe Power Corporation			5.05			10-1-2048		1,060,000		1,327,882
										3,591,389
Independent Power & Renewable Electricity Producers: 0.11%
Tri-State Generation and Transmission Association Incorporated			4.25			6-1-2046		850,000		955,641
Total Corporate Bonds and Notes (Cost $175,602,934)										184,909,698
							Shares
Exchange-Traded Funds: 0.88%
SPDR Barclays High Yield Bond ETF								24,666		2,683,907
Vaneck Vectors JPMorgan Emerging Markets Local Currency Bond ETF	��							161,000		5,308,170
Total Exchange-Traded Funds (Cost $7,965,231)										7,992,077
							Principal
Foreign Corporate Bonds and Notes: 3.20%
Communication Services: 0.05%
Media: 0.05%
Altice SA 144A			7.25			5-15-2022	EUR	386,024		434,088
Consumer Discretionary: 0.37%
Auto Components: 0.13%
HP Pelzer Holding GmbH 144A			4.13			4-1-2024	EUR	1,200,000		1,199,898
Automobiles: 0.24%
Peugeot SA Company			2.00			3-20-2025	EUR	1,800,000		2,146,594
Consumer Staples: 0.91%
Food & Staples Retailing: 0.21%
Tasty Bondco 1 SA 144A			6.25			5-15-2026	EUR	1,600,000		1,871,458
Food Products: 0.50%
Danone SA			1.75			12-31-2099	EUR	2,600,000		2,936,111
Sigma Holdings Company BV 144A			5.75			5-15-2026	EUR	1,500,000		1,629,616
										4,565,727
Household Products: 0.20%
Energizer Gamma Acquisition BV 144A			4.63			7-15-2026	EUR	1,600,000		1,842,359
Energy: 0.81%
Oil, Gas & Consumable Fuels: 0.81%
Eni SpA			1.13			9-19-2028	EUR	3,200,000		3,798,548
Petroleos Mexicanos			3.75			2-21-2024	EUR	1,000,000		1,110,590
Total SA			3.88			12-29-2049	EUR	2,000,000		2,406,919
										7,316,057

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

Wells Fargo Core Plus Bond Fund  |  17

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Financials: 0.63%
Banks: 0.40%
Bankia SA		6.00	%		12-31-2099	EUR	1,200,000	$	1,336,994
Caixa Geral de Depositos SA		10.75			12-31-2099	EUR	1,800,000		2,277,308
									3,614,302
Diversified Financial Services: 0.23%
LKQ European Holdings BV Company 144A		3.63			4-1-2026	EUR	1,800,000		2,095,008
Industrials: 0.37%
Commercial Services & Supplies: 0.14%
Paprec Holding SA 144A		4.00			3-31-2025	EUR	1,200,000		1,311,746
Road & Rail: 0.23%
Europcar Groupe SA 144A		4.13			11-15-2024	EUR	1,800,000		2,077,718
Real Estate: 0.06%
Real Estate Management & Development: 0.06%
ATF Netherlands BV		1.50			7-15-2024	EUR	500,000		581,309
Total Foreign Corporate Bonds and Notes (Cost $29,629,594)									29,056,264
Foreign Government Bonds: 0.68%
Brazil		10.00			1-1-2025	BRL	8,600,000		2,334,836
Italy Buoni Poliennali del Tesoro		0.05			4-15-2021	EUR	3,500,000		3,860,531
Total Foreign Government Bonds (Cost $6,613,239)									6,195,367
Loans: 0.84%
Communication Services: 0.45%
Entertainment: 0.19%
Diamond Sports Group LLC (3 Month LIBOR +3.25%)±%%<		5.39			8-24-2026	$	1,700,000		1,700,000
Media: 0.13%
Ancestry.com Incorporated (1 Month LIBOR +3.25%)±		5.34			10-19-2023		1,215,625		1,208,027
Wireless Telecommunication Services: 0.13%
Sprint Communications Incorporated (1 Month LIBOR +2.50%)±		4.63			2-2-2024		1,221,875		1,213,090
Energy: 0.12%
Oil, Gas & Consumable Fuels: 0.12%
Lucid Energy Group II Borrower LLC (1 Month LIBOR +3.00%)±		5.11			2-17-2025		1,234,375		1,137,168
Health Care: 0.13%
Health Care Providers & Services: 0.13%
Surgery Center Holdings Incorporated (1 Month LIBOR +3.25%)±		5.37			9-2-2024		1,228,125		1,166,719
Industrials: 0.14%
Communications Equipment: 0.14%
Virgin Media Bristol LLC (1 Month LIBOR +2.50%)±		4.70			1-15-2026		1,250,000		1,249,038
Total Loans (Cost $7,859,337)									7,674,042

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

18  |  Wells Fargo Core Plus Bond Fund

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Municipal Obligations: 2.56%
California: 0.41%
Airport Revenue: 0.23%
San Jose CA Series B (AGM Insured)		6.60	%		3-1-2041	$	2,000,000	$	2,136,180
Transportation Revenue: 0.18%
Alameda CA Corridor Transportation Authority CAB Refunding Bond Subordinated Series B (Ambac Insured) ¤		0.00			10-1-2028		2,115,000		1,619,709
									3,755,889
Illinois: 1.31%
GO Revenue: 0.93%
Chicago IL Series B		5.43			1-1-2042		1,000,000		1,039,170
Cook County IL Series B (Build America Mutual Assurance Company Insured)		6.36			11-15-2033		1,745,000		2,447,712
Illinois Taxable Pension «		5.10			6-1-2033		3,040,000		3,308,250
Will County ILLincoln-Way Community High School District #210 Unrefunded CAB (AGM Insured) ¤		0.00			1-1-2025		1,820,000		1,620,291
									8,415,423
Tax Revenue: 0.38%
Chicago IL Transit Authority Taxable Pension Funding Series A		6.90			12-1-2040		1,075,000		1,553,407
Metropolitan Pier & Exposition Authority Illinois CAB McCormick Place Expansion Project Series2010-B1 (AGM Insured) ¤		0.00			6-15-2026		1,975,000		1,713,866
Metropolitan Pier & Exposition Authority Illinois CAB McCormick Place Expansion Project Series2012-B ¤		0.00			12-15-2051		765,000		233,960
									3,501,233
									11,916,656
Maryland: 0.11%
Education Revenue: 0.11%
Maryland Health & HEFAR Green Street Academy Series B 144A		6.75			7-1-2023		975,000		982,118
Michigan: 0.19%
Miscellaneous Revenue: 0.19%
Michigan Finance Authority Local Government Loan Program Project Series E		7.19			11-1-2022		1,585,000		1,713,575
Pennsylvania: 0.36%
Health Revenue: 0.10%
Quakertown PA General Authority USDA Loan Anticipation NotesSeries 2017-B		3.80			7-1-2021		900,000		900,135
Miscellaneous Revenue: 0.26%
Commonwealth of Pennsylvania Financing Authority Series A		4.14			6-1-2038		1,995,000		2,353,681
									3,253,816
Texas: 0.18%
Transportation Revenue: 0.18%
North Texas Tollway Authority Build America Bonds Subordinate LienSeries B-2		8.91			2-1-2030		1,595,000		1,640,075
Total Municipal Obligations (Cost $20,580,389)									23,262,129

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

Wells Fargo Core Plus Bond Fund  |  19

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Non-Agency Mortgage-Backed Securities: 11.51%
American Money Management Corporation Series2015-16A Class AR (3 Month LIBOR +1.26%) 144A±		3.56	%		4-14-2029	$	3,000,000	$	3,000,051
Banc of America Commercial Mortgage Securities Incorporated Series2007-1 Class AMFX±±		5.48			1-15-2049		661,125		662,013
Banc of America Funding Corporation Series2016-R1 Class A1 144A±±		2.50			3-25-2040		645,703		644,460
BDS Limited Series2018-FL2 Class A (1 Month LIBOR +0.95%) 144A±		3.15			8-15-2035		1,728,582		1,728,581
Benefit Street Partners CLO Limited Series2014-IVA Class A1RR (3 Month LIBOR +1.25%) 144A±		3.53			1-20-2029		1,000,000		1,000,173
Benefit Street Partners CLO Limited Series2016-10A Class A1R (3 Month LIBOR +1.14%) 144A±		3.44			1-15-2029		3,500,000		3,499,948
Bluemountain CLO Limited Series2012-2A Class AR2 (3 Month LIBOR +1.05%) 144A±		3.19			11-20-2028		935,000		935,006
Bluemountain CLO Limited Series2013-1A Class A1R2 (3 Month LIBOR +1.23%) 144A±		3.51			1-20-2029		1,935,000		1,936,080
Bunker Hill Loan Depositary Trust Series2019-1 Class A1 144A		3.61			10-26-2048		1,265,577		1,278,588
Cascade Funding Mortgage Trust Series 2018- RM2 Class A 144A±±		4.00			10-25-2068		570,497		590,738
CD Commercial Mortgage Trust Series2017-6 Class A5		3.46			11-13-2050		1,035,000		1,125,741
CIFC Funding Limited Series2012-2RA Class A1 (3 Month LIBOR +0.80%) 144A±		3.08			1-20-2028		2,525,000		2,516,208
CIFC Funding Limited Series2016-1A Class A (3 Month LIBOR +1.48%) 144A±		3.76			10-21-2028		3,350,000		3,353,601
Citigroup Commercial Mortgage Trust 2017-MDRA Class A 144A		3.66			7-10-2030		2,000,000		2,062,779
Colt Funding LLC Series2018-3 Class A1 144A±±		3.69			10-26-2048		2,018,625		2,035,288
Commercial Mortgage Trust Series 2014-CR15 Class A2		2.93			2-10-2047		295,009		294,898
Credit Suisse First Boston Commercial Mortgage Trust Series1998-C2 Class AX ±±(c)		1.23			11-15-2030		11,794		4
Crown Point Limited Series2015-3A Class A1AR (3 Month LIBOR +0.91%) 144A±		3.21			12-31-2027		2,500,000		2,500,328
Crown Point Limited Series2018-6A Class A1 (3 Month LIBOR +1.17%) 144A±		3.45			10-20-2028		3,500,000		3,499,962
CSAIL Commercial Mortgage Trust Series2015-C4 Class A1		2.01			11-15-2048		1,095,789		1,092,380
Deephaven Residential Mortgage Series2019-2A Class A1 144A±±		3.56			4-25-2059		2,661,783		2,685,254
Financial Asset Securitization Incorporated Series 1997-NAM2 Class B2 †		8.00			7-25-2027		20,098		1,089
FirstKey Mortgage Trust Series2014-1 Class A2 144A±±		3.00			11-25-2044		897,064		895,233
GCAT Series 2019-NQM1 Class A1 144A		2.99			2-25-2059		3,971,333		3,987,982
Great Wolf Trust Series 2017 Class A (1 Month LIBOR +0.85%) 144A±		3.05			9-15-2034		2,350,000		2,349,226
GS Mortgage Securities Trust Series 2013-KING Class A 144A		2.71			12-10-2027		4,228,079		4,225,707
GS Mortgage Securities Trust Series 2019- PJ1 Class A6 144A±±		4.00			8-25-2049		1,409,976		1,424,276
Homeward Opportunities Fund I Trust Series2019-1 Class A1 144A±±		3.45			1-25-2059		2,417,812		2,441,126
Hospitality Mortgage Trust Series 2019 Class A (1 Month LIBOR +1.00%) 144A±		3.20			11-15-2036		2,970,000		2,967,205
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-LDPX Class AM±±		5.46			1-15-2049		143,162		142,670
JPMorgan Chase Commercial Mortgage Securities Trust Series2012-C8 Class ASB		2.38			10-15-2045		2,381,705		2,391,745
Lendmark Funding Trust Series2018-1A Class A 144A		3.81			12-21-2026		2,685,000		2,752,601
Lendmark Funding Trust Series2018-2A Class A 144A		4.23			4-20-2027		600,000		625,322
LoanCore Limited Series 2018-CRE1 Class A (1 Month LIBOR +1.13%) 144A±		3.33			5-15-2028		3,000,000		3,002,802
Mach One Trust Commercial Mortgage Backed Series2004-1 Class X 144A±±(c)		0.78			5-28-2040		69,187		0
Mello Warehouse Securitization Series2019-1 Class A (1 Month LIBOR +0.80%) 144A±		2.95			6-25-2052		3,115,000		3,112,242
Metlife Securitization Trust2019-1A Class A1A 144A±±		3.75			4-25-2058		2,683,414		2,796,994
Morgan Stanley Capital I Series2004-RR2 Class X 144A±±(c)		0.35			10-28-2033		4,769		19
Neuberger Berman Limited Series2015-20A Class AR (3 Month LIBOR +0.80%) 144A±		3.10			1-15-2028		1,575,000		1,566,336

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

20  |  Wells Fargo Core Plus Bond Fund

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Non-Agency Mortgage-Backed Securities (continued)
New Residential Mortgage Loan Trust Series 2018-NQM1 Class A1 144A±±		3.99	%		11-25-2048	$	2,505,581	$	2,551,365
Octagon Investment Partners Series2017-1A Class B1 (3 Month LIBOR +1.70%) 144A±		3.98			7-20-2030		1,000,000		993,176
Palmer Square Loan Funding Limited Series2019-2A Class A1 (3 Month LIBOR +0.97%) 144A±		3.49			4-20-2027		3,140,000		3,139,846
Sound Point CLO Limited Series2013-2RA Class A1 (3 Month LIBOR +0.95%) 144A±		3.25			4-15-2029		2,825,000		2,807,067
Starwood Mortgage Residential Trust Series2019-1 Class A1 144A±±		2.94			6-25-2049		3,377,825		3,385,491
Stonemont Portfolio Trust Series 2017 Class A (1 Month LIBOR +0.85%) 144A±		3.02			8-20-2030		2,473,715		2,472,904
UBS Commercial Mortgage Trust Series2017-C5 Class A5		3.47			11-15-2050		1,140,000		1,242,868
UBS Commercial Mortgage Trust Series 2018-NYCH Class A (1 Month LIBOR +0.85%) 144A±		3.05			2-15-2032		2,930,000		2,923,603
Verus Securitization Trust Series2019-1 Class A1 144A±±		3.40			12-25-2059		2,274,234		2,295,260
Verus Securitization Trust Series2019-2 Class A1 144A±±		3.21			4-25-2059		4,634,747		4,674,833
Voya CLO Limited Series2015-2A Class AR (3 Month LIBOR +0.97%) 144A±		3.23			7-23-2027		2,900,000		2,897,025
West CLO Limited Series2014-2A Class A1 (3 Month LIBOR +0.87%) 144A±		3.19			1-16-2027		2,209,448		2,204,850
Whitehorse Limited Series2014-1A Class AR (3 Month LIBOR +0.90%) 144A±		3.15			5-1-2026		1,897,708		1,896,306
TotalNon-Agency Mortgage-Backed Securities (Cost $104,235,637)									104,609,250
U.S. Treasury Securities: 8.82%
TIPS		1.38			2-15-2044		3,088,499		3,828,810
U.S. Treasury Bond ¤		0.00			11-15-2027		1,795,000		1,581,893
U.S. Treasury Bond ¤		0.00			5-15-2044		9,125,000		5,590,899
U.S. Treasury Bond		1.63			8-15-2029		11,695,000		11,827,939
U.S. Treasury Bond		2.25			8-15-2049		1,050,000		1,116,650
U.S. Treasury Bond		2.75			11-15-2042		4,850,000		5,601,182
U.S. Treasury Bond		2.88			8-15-2045		2,495,000		2,962,910
U.S. Treasury Bond		2.88			5-15-2049		7,745,000		9,332,422
U.S. Treasury Bond		3.00			8-15-2048		6,755,000		8,297,831
U.S. Treasury Bond		3.38			5-15-2044		5,895,000		7,558,265
U.S. Treasury Bond		3.75			8-15-2041		3,965,000		5,299,470
U.S. Treasury Bond		4.25			11-15-2040		4,560,000		6,483,928
U.S. Treasury Bond		6.13			11-15-2027		1,375,000		1,868,979
U.S. Treasury Note		1.63			8-31-2022		465,000		467,525
U.S. Treasury Note		2.00			10-31-2022		8,210,000		8,353,034
Total U.S. Treasury Securities (Cost $71,207,716)									80,171,737
Yankee Corporate Bonds and Notes: 8.14%
Communication Services: 0.90%
Diversified Telecommunication Services: 0.19%
Telefonica Emisiones SAU		5.21			3-8-2047		1,485,000		1,729,714
Interactive Media & Services: 0.36%
Tencent Holdings Limited 144A		3.98			4-11-2029		3,000,000		3,257,420
Wireless Telecommunication Services: 0.35%
British Telecommunication		5.13			12-4-2028		2,740,000		3,172,849
Consumer Staples: 0.44%
Beverages: 0.21%
Coca-Cola Femsa SAB de CV		3.88			11-26-2023		1,810,000		1,925,357

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

Wells Fargo Core Plus Bond Fund  |  21

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Tobacco: 0.23%
Imperial Brands Finance plc 144A		3.50	%		7-26-2026	$	2,055,000	$	2,089,130
Energy: 0.41%
Energy Equipment & Services: 0.08%
Valaris plc		5.75			10-1-2044		1,500,000		750,000
Oil, Gas & Consumable Fuels: 0.33%
Comision Federal de Electricidad 144A		4.75			2-23-2027		1,140,000		1,187,036
Encana Corporation		6.50			2-1-2038		836,000		1,018,505
Petroleos Mexicanos		6.50			1-23-2029		765,000		776,475
									2,982,016
Financials: 5.57%
Banks: 2.93%
ABN AMRO Bank NV 144A		4.75			7-28-2025		1,800,000		1,962,572
Banco de Bogota SA 144A		4.38			8-3-2027		1,110,000		1,172,449
Banco do Brasil SA 144A		4.63			1-15-2025		1,615,000		1,685,899
Banco General SA 144A		4.13			8-7-2027		1,035,000		1,077,704
Banco Internacional del Peru SAA Interbank 144A«		3.38			1-18-2023		1,526,000		1,541,260
Banco Mercantil del Norte SA (5 Year Treasury Constant Maturity +4.97%) 144A±		6.75			12-31-2099		1,565,000		1,542,934
Banco Safra SA 144A		4.13			2-8-2023		1,695,000		1,722,544
Banco Santander Mexico (5 Year Treasury Constant Maturity +3.00%) 144A±		5.95			10-1-2028		1,700,000		1,808,392
Banco Santander SA		4.25			4-11-2027		1,600,000		1,733,715
Banistmo SA 144A		3.65			9-19-2022		1,160,000		1,160,012
Banque Ouest Africaine de Developpement 144A		5.00			7-27-2027		2,520,000		2,667,672
BPCE SA 144A		5.15			7-21-2024		1,725,000		1,894,113
Danske Bank 144A		5.38			1-12-2024		1,705,000		1,885,843
Perrigo Finance plc		4.90			12-15-2044		1,500,000		1,476,231
Perrigo Finance Unlimited Company		3.50			3-15-2021		1,305,000		1,311,978
Perrigo Finance Unlimited Company		4.38			3-15-2026		1,365,000		1,405,069
Sumitomo Mitsui Financial Group Incorporated		2.44			10-19-2021		500,000		503,032
									26,551,419
Capital Markets: 0.38%
Cadillac Fairview Corporation Limited 144A		4.13			2-1-2029		1,760,000		1,992,008
Credit Suisse Group Funding Limited (3 Month LIBOR +1.20%) 144A±		3.00			12-14-2023		1,485,000		1,505,426
									3,497,434
Diversified Financial Services: 1.38%
AerCap Ireland Limited		2.88			8-14-2024		3,655,000		3,666,987
Banco Nacional de Comercio Exterior SNC 144A		4.38			10-14-2025		2,350,000		2,446,938
Corporacion Financiera de Desarrollo SA (3 Month LIBOR +5.61%) 144A±		5.25			7-15-2029		1,185,000		1,275,368
UBS Group Funding Switzerland 144A		3.49			5-23-2023		1,165,000		1,200,389
UBS Group Funding Switzerland AG (5 Year USD Swap +4.87%)±		7.00			12-29-2049		1,650,000		1,806,047
WPP Finance Limited 2010		3.75			9-19-2024		2,054,000		2,147,284
									12,543,013
Insurance: 0.61%
Sompo International Holdings Limited		7.00			7-15-2034		1,330,000		1,811,742
Swiss Re Finance (Luxembourg) SA (5 Year Treasury Constant Maturity +3.58%) 144A±		5.00			4-2-2049		1,600,000		1,764,000

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

22  |  Wells Fargo Core Plus Bond Fund

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Insurance (continued)
Validus Holdings Limited		8.88	%		1-26-2040	$	1,210,000	$	2,001,986
									5,577,728
Thrifts & Mortgage Finance: 0.27%
Nationwide Building Society 144A		4.13			10-18-2032		2,500,000		2,484,669
Health Care: 0.44%
Pharmaceuticals: 0.44%
Shire Acquisitions Investment Ireland Limited		2.40			9-23-2021		2,550,000		2,557,905
Teva Pharmaceutical Finance BV		2.20			7-21-2021		600,000		561,750
Teva Pharmaceutical Finance Netherlands III BV «		6.75			3-1-2028		1,000,000		841,650
									3,961,305
Industrials: 0.06%
Transportation Infrastructure: 0.06%
Mexico City Airport Trust 144A		5.50			7-31-2047		570,000		569,293
Utilities: 0.32%
Electric Utilities: 0.32%
Western Power Distributions Holdings Limited 144A		7.38			12-15-2028		2,265,000		2,912,609
Total Yankee Corporate Bonds and Notes (Cost $69,531,399)									74,003,956
Yankee Government Bonds: 3.00%
Bermuda 144A		3.72			1-25-2027		995,000		1,064,650
Bermuda 144A		4.14			1-3-2023		1,210,000		1,276,562
Federative Republic of Brazil		4.50			5-30-2029		1,495,000		1,579,094
Federative Republic of Brazil		4.63			1-13-2028		1,795,000		1,929,643
Hashemite Kingdom of Jordan		3.00			6-30-2025		3,000,000		3,206,468
Kingdom of Spain 144A		1.45			4-30-2029		3,350,000		4,170,158
Province of Santa Fe 144A		7.00			3-23-2023		2,000,000		1,140,000
Republic of Argentina		6.88			4-22-2021		1,280,000		537,613
Republic of Argentina		6.88			1-11-2048		1,000,000		379,010
Republic of Argentina		7.50			4-22-2026		1,350,000		519,750
Republic of Chile		3.50			1-25-2050		1,069,000		1,219,735
Republic of Kenya 144A		8.25			2-28-2048		750,000		774,269
Republic of Paraguay 144A		5.40			3-30-2050		1,000,000		1,175,000
Republic of Senegal 144A		6.25			5-23-2033		750,000		741,897
Saudi Arabia 144A		4.38			4-16-2029		2,840,000		3,273,884
Ukraine		1.47			9-29-2021		3,000,000		2,994,817
Ukraine 144A		7.38			9-25-2032		1,200,000		1,233,290
Total Yankee Government Bonds (Cost $28,665,002)									27,215,840
	Yield					Shares
Short-Term Investments: 10.29%
Investment Companies: 10.08%
Securities Lending Cash Investments LLC (l)(r)(u)		2.24					5,226,857		5,227,379
Wells Fargo Government Money Market Fund Select Class (l)(u)##		2.04					86,371,118		86,371,118
									91,598,497

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

Wells Fargo Core Plus Bond Fund  |  23

Portfolio of investments—August 31, 2019

	Yield			Maturity date		Principal		Value
U.S. Treasury Securities: 0.21%
U.S. Treasury Bill (z)#		1.65	%		9-12-2019	$	1,900,000	$	1,899,115
Total Short-Term Investments (Cost $93,497,388)									93,497,612

Total investments in securities (Cost $866,078,095)	98.56	%		895,549,939
Other assets and liabilities, net	1.44			13,104,999
Total net assets	100.00	%	$	908,654,938

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

± 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.

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.

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

† Non-income-earning security

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

(r) The investment is anon-registered investment company purchased with cash collateral received from securities on loan.

(u) The rate represents the7-day annualized yield at period end.

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

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

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

Abbreviations:

AGM Assured Guaranty Municipal

BRL Brazilian real

CAB Capital appreciation bond

CAD Canadian dollar

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

JPY Japanese yen

LIBOR London Interbank Offered Rate

PLN Polish zloty

REIT Real estate investment trust

STRIPS Separate trading of registered interest and principal securities

TIPS Treasury inflation-protected securities

TVA Tennessee Valley Authority

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

24  |  Wells Fargo Core Plus Bond Fund

Portfolio of investments—August 31, 2019

Futures Contracts

Description	Number of contracts		Expiration date		Notional cost			Notional value			Unrealized gains		Unrealized losses
Long
U.S. Ultra Bond		44		12-19-2019	$	8,570,549		$	8,687,250		$	116,701	$	0
U.S. Long Term Bond		50		12-19-2019		8,173,916			8,262,500			88,584		0
10-Year U.S. Treasury Notes		206		12-19-2019		26,991,366			27,134,063			142,697		0
2-Year U.S. Treasury Notes		560		12-31-2019		120,899,645			121,025,625			125,980		0
5-Year U.S. Treasury Notes		943		12-31-2019		112,725,165			113,137,899			412,734		0
Short
Euro-Schatz Futures		(45)		9-6-2019		(5,551,258	)		(5,568,390	)		0		(17,132	)
Euro-Bund Futures		(45)		9-6-2019		(8,453,656	)		(8,857,791	)		0		(404,135	)
Euro-BOBL Futures		(85)		9-6-2019		(12,501,229	)		(12,726,500	)		0		(225,271	)
											$	886,696	$	(646,538	)

Forward Foreign Currency Contracts

Currency to be received	Currency to be delivered	Counterparty	Settlement date	Unrealized gains		Unrealized losses
2,799,140 USD	4,000,000 AUD	Citibank	9-30-2019	$	103,147	$	0
1,418,272 USD	1,900,000 CAD	Citibank	9-30-2019		0		(9,424	)
36,297,847 USD	32,000,500 EUR	Citibank	9-30-2019		1,055,502		0
5,467,750 PLN	1,250,000 EUR	Citibank	9-30-2019		0		(2,509	)
16,443,973 USD	14,520,000 EUR	Citibank	9-30-2019		453,008		0
11,012,720 EUR	12,319,743 USD	Citibank	9-30-2019		0		(191,367	)
314,000,000 JPY	2,928,749 USD	Citibank	9-30-2019		32,694		0
1,250,000 EUR	5,388,125 PLN	Citibank	9-30-2019		22,519		0
				$	1,666,870	$	(203,300	)

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		12-20-2023		4,000,000 EUR	$	107,432	$	63,471	$	43,961	$	0

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

Wells Fargo Core Plus Bond Fund  |  25

Portfolio of investments—August 31, 2019

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 Investments LLC		892,078		68,561,536		64,226,757		5,226,857	$	785	$	2	$	83,731	#	$	5,227,379
Wells Fargo Government Money Market Fund Select Class		25,332,190		458,472,662		397,433,734		86,371,118		0		0		988,148			86,371,118
									$	785	$	2	$	1,071,879		$	91,598,497		10.08	%

^#  Amount shown represents income before fees and rebates.

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, 2019

Assets
Investments in unaffiliated securities (including $5,085,539 of securities loaned), at value (cost $774,479,660)	$	803,951,442
Investments in affiliated securities, at value (cost $91,598,435)		91,598,497
Cash		2,784,697
Cash at broker segregated for centrally cleared swaps		33,581
Principal paydown receivable		60
Receivable for investments sold		3,231,473
Receivable for interest		5,429,044
Receivable for Fund shares sold		23,556,948
Receivable for daily variation margin on open futures contracts		166,182
Receivable for securities lending income, net		5,304
Unrealized gains on forward foreign currency contracts		1,666,870
Prepaid expenses and other assets		281,862
Total assets		932,705,960
Liabilities
Payable for investments purchased		16,463,533
Payable for Fund shares redeemed		702,084
Unrealized losses on forward foreign currency contracts		203,300
Payable upon receipt of securities loaned		5,225,665
Cash collateral due to broker for forward foreign currency contracts		990,000
Payable for daily variation margin on centrally cleared swaps		1,224
Management fee payable		214,852
Distribution fee payable		12,058
Administration fees payable		79,016
Trustees’ fees and expenses payable		4,221
Accrued expenses and other liabilities		155,069
Total liabilities		24,051,022
Total net assets	$	908,654,938
Net assets consist of
Paid-in capital	$	868,864,345
Total distributable earnings		39,790,593
Total net assets	$	908,654,938
Computation of net asset value and offering price per share
Net assets – Class A	$	245,879,154
Shares outstanding – Class A1		18,777,779
Net asset value per share – Class A		$13.09
Maximum offering price per share – Class A2		$13.71
Net assets – Class C	$	18,194,512
Shares outstanding – Class C1		1,389,890
Net asset value per share – Class C		$13.09
Net assets – Class R6	$	62,521,940
Shares outstanding – Class R61		4,767,488
Net asset value per share – Class R6		$13.11
Net assets – Administrator Class	$	57,316,117
Shares outstanding – Administrator Class1		4,384,283
Net asset value per share – Administrator Class		$13.07
Net assets – Institutional Class	$	524,743,215
Shares outstanding – Institutional Class1		40,028,553
Net asset value per share – Institutional Class		$13.11

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.

Wells Fargo Core Plus Bond Fund  |  27

Statement of operations—year ended August 31, 2019

Investment income
Interest (net of foreign interest withholding taxes of $20,071)	$	22,699,350
Income from affiliated securities		1,018,552
Dividends		416,207
Total investment income		24,134,109
Expenses
Management fee		2,893,135
Administration fees
Class A		370,862
Class C		28,667
Class R6		16,025
Administrator Class		26,854
Institutional Class		257,145
Shareholder servicing fees
Class A		579,472
Class C		44,792
Administrator Class		67,136
Distribution fee
Class C		134,357
Custody and accounting fees		59,834
Professional fees		67,962
Registration fees		99,725
Shareholder report expenses		90,749
Trustees’ fees and expenses		21,592
Other fees and expenses		13,951
Total expenses		4,772,258
Less: Fee waivers and/or expense reimbursements
Fund-level		(1,157,708	)
Class A		(3,963	)
Class C		(403	)
Class R6		(545	)
Administrator Class		(13,584	)
Net expenses		3,596,055
Net investment income		20,538,054
Realized and unrealized gains (losses) on investments
Net realized gains (losses) on
Unaffiliated securities		(645,162	)
Affiliated securities		785
Futures contracts		6,932,831
Forward foreign currency contracts		1,897,442
Credit default swap contracts		401,568
Net realized gains on investments		8,587,464
Net change in unrealized gains (losses) on
Unaffiliated securities		35,477,343
Affiliated securities		2
Futures contracts		338,049
Forward foreign currency contracts		1,378,735
Credit default swap contracts		76,197
Net change in unrealized gains (losses) on investments		37,270,326
Net realized and unrealized gains (losses) on investments		45,857,790
Net increase in net assets resulting from operations	$	66,395,844

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, 2019						Year ended August 31, 20181
Operations
Net investment income				$	20,538,054					$	16,082,992
Net realized gains (losses) on investments					8,587,464						(2,470,659	)
Net change in unrealized gains (losses) on investments					37,270,326						(17,907,347	)
Net increase (decrease) in net assets resulting from operations					66,395,844						(4,295,014	)
Distributions to shareholders from net investment income and net realized gains
Class A					(6,574,947	)					(6,592,901	)
Class C					(370,804	)					(396,945	)
Class R6					(1,715,047	)					(1,205,963	)
Administrator Class					(771,693	)					(1,057,877	)
Institutional Class					(10,270,164	)					(7,080,934	)
Total distributions to shareholders					(19,702,655	)					(16,334,620	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		2,680,470			33,438,451			3,153,880			39,493,506
Class C		481,331			6,064,332			574,528			7,177,070
Class R6		1,501,220			18,804,815			1,231,456			15,394,192
Administrator Class		3,315,239			42,606,846			1,331,903			16,514,724
Institutional Class		29,266,462			369,237,004			15,277,371			190,922,160
					470,151,448						269,501,652
Reinvestment of distributions
Class A		489,790			6,110,716			490,954			6,097,803
Class C		27,365			340,533			29,298			363,379
Class R6		108,554			1,359,721			81,463			1,012,889
Administrator Class		61,503			767,914			84,932			1,053,385
Institutional Class		744,184			9,339,392			530,646			6,583,306
					17,918,276						15,110,762
Payment for shares redeemed
Class A		(3,117,801	)		(38,772,694	)		(5,034,990	)		(62,673,141	)
Class C		(794,733	)		(9,880,274	)		(426,093	)		(5,284,028	)
Class R6		(518,426	)		(6,649,954	)		(107,920	)		(1,336,675	)
Administrator Class		(1,625,234	)		(20,018,219	)		(2,078,726	)		(25,750,208	)
Institutional Class		(11,506,592	)		(142,716,810	)		(7,127,474	)		(88,356,112	)
					(218,037,951	)					(183,400,164	)
Net increase in net assets resulting from capital share transactions					270,031,773						101,212,250
Total increase in net assets					316,724,962						80,582,616
Net assets
Beginning of period					591,929,976						511,347,360
End of period				$	908,654,938					$	591,929,976

¹  Effective for all filings after November 4, 2018, the SEC prospectively eliminated the requirement to parenthetically disclose undistributed net investment income at the end of the period and permitted the aggregation of distributions, with the exception of tax basis returns of capital. Undistributed net investment income at August 31, 2018 was $2,094,155. The disaggregated distributions information for the year ended August 31, 2018 is included in Note9, Distributions to Shareholders, in the notes to the financial statements.

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

Wells Fargo Core Plus Bond Fund  |  29

Financial highlights

(For a share outstanding throughout each period)

	Year ended August 31
CLASS A	2019			2018			2017			2016			2015
Net asset value, beginning of period		$12.27			$12.71			$12.70			$12.14			$12.24
Net investment income		0.37			0.34			0.36	1		0.33			0.21	1
Net realized and unrealized gains (losses) on investments		0.80			(0.45	)		(0.01	)		0.60			(0.08	)
Total from investment operations		1.17			(0.11	)		0.35			0.93			0.13
Distributions to shareholders from
Net investment income		(0.35	)		(0.33	)		(0.33	)		(0.33	)		(0.21	)
Net realized gains		0.00			0.00			(0.01	)		(0.04	)		(0.02	)
Total distributions to shareholders		(0.35	)		(0.33	)		(0.34	)		(0.37	)		(0.23	)
Net asset value, end of period		$13.09			$12.27			$12.71			$12.70			$12.14
Total return2		9.74	%		(0.84	)%		2.78	%		7.78	%		1.04	%
Ratios to average net assets (annualized)
Gross expenses		0.91	%		0.92	%		0.93	%		0.93	%		0.91	%
Net expenses		0.73	%		0.73	%		0.76	%		0.84	%		0.84	%
Net investment income		2.99	%		2.63	%		2.88	%		2.76	%		1.69	%
Supplemental data
Portfolio turnover rate		89	%		148	%		199	%		288	%		322	%
Net assets, end of period (000s omitted)		$245,879			$229,688			$255,668			$349,852			$223,755

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	2019			2018			2017			2016			2015
Net asset value, beginning of period		$12.26			$12.71			$12.70			$12.14			$12.23
Net investment income		0.28			0.23			0.26			0.24	1		0.12	1
Net realized and unrealized gains (losses) on investments		0.81			(0.44	)		(0.01	)		0.59			(0.08	)
Total from investment operations		1.09			(0.21	)		0.25			0.83			0.04
Distributions to shareholders from
Net investment income		(0.26	)		(0.24	)		(0.23	)		(0.23	)		(0.11	)
Net realized gains		0.00			0.00			(0.01	)		(0.04	)		(0.02	)
Total distributions to shareholders		(0.26	)		(0.24	)		(0.24	)		(0.27	)		(0.13	)
Net asset value, end of period		$13.09			$12.26			$12.71			$12.70			$12.14
Total return2		8.91	%		(1.66	)%		2.01	%		6.99	%		0.35	%
Ratios to average net assets (annualized)
Gross expenses		1.66	%		1.67	%		1.68	%		1.68	%		1.66	%
Net expenses		1.48	%		1.48	%		1.51	%		1.59	%		1.59	%
Net investment income		2.25	%		1.89	%		2.12	%		2.00	%		0.95	%
Supplemental data
Portfolio turnover rate		89	%		148	%		199	%		288	%		322	%
Net assets, end of period (000s omitted)		$18,195			$20,550			$19,036			$21,216			$20,381

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.

Wells Fargo Core Plus Bond Fund  |  31

Financial highlights

(For a share outstanding throughout each period)

	Year ended August 31
CLASS R6	2019			2018			20171
Net asset value, beginning of period		$12.28			$12.73			$12.59
Net investment income		0.41			0.39			0.33	2
Net realized and unrealized gains (losses) on investments		0.82			(0.46	)		0.12
Total from investment operations		1.23			(0.07	)		0.45
Distributions to shareholders from
Net investment income		(0.40	)		(0.38	)		(0.30	)
Net realized gains		0.00			0.00			(0.01	)
Total distributions to shareholders		(0.40	)		(0.38	)		(0.31	)
Net asset value, end of period		$13.11			$12.28			$12.73
Total return3		10.14	%		(0.55	)%		3.64	%
Ratios to average net assets (annualized)
Gross expenses		0.53	%		0.54	%		0.55	%
Net expenses		0.35	%		0.35	%		0.35	%
Net investment income		3.36	%		3.05	%		3.12	%
Supplemental data
Portfolio turnover rate		89	%		148	%		199	%
Net assets, end of period (000s omitted)		$62,522			$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	2019			2018			2017			2016			2015
Net asset value, beginning of period		$12.25			$12.69			$12.68			$12.12			$12.22
Net investment income		0.38			0.35			0.37			0.34			0.22
Net realized and unrealized gains (losses) on investments		0.81			(0.44	)		(0.01	)		0.60			(0.08	)
Total from investment operations		1.19			(0.09	)		0.36			0.94			0.14
Distributions to shareholders from
Net investment income		(0.37	)		(0.35	)		(0.34	)		(0.34	)		(0.22	)
Net realized gains		0.00			0.00			(0.01	)		(0.04	)		(0.02	)
Total distributions to shareholders		(0.37	)		(0.35	)		(0.35	)		(0.38	)		(0.24	)
Net asset value, end of period		$13.07			$12.25			$12.69			$12.68			$12.12
Total return		9.88	%		(0.74	)%		2.90	%		7.92	%		1.15	%
Ratios to average net assets (annualized)
Gross expenses		0.85	%		0.86	%		0.87	%		0.87	%		0.85	%
Net expenses		0.62	%		0.62	%		0.66	%		0.72	%		0.72	%
Net investment income		3.07	%		2.74	%		2.97	%		2.84	%		1.82	%
Supplemental data
Portfolio turnover rate		89	%		148	%		199	%		288	%		322	%
Net assets, end of period (000s omitted)		$57,316			$32,241			$41,806			$71,133			$85,431

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

Wells Fargo Core Plus Bond Fund  |  33

Financial highlights

(For a share outstanding throughout each period)

	Year ended August 31
INSTITUTIONAL CLASS	2019			2018			2017			2016			2015
Net asset value, beginning of period		$12.28			$12.72			$12.71			$12.15			$12.24
Net investment income		0.39			0.37	1		0.38			0.36			0.24	1
Net realized and unrealized gains (losses) on investments		0.83			(0.44	)		0.01			0.60			(0.07	)
Total from investment operations		1.22			(0.07	)		0.39			0.96			0.17
Distributions to shareholders from
Net investment income		(0.39	)		(0.37	)		(0.37	)		(0.36	)		(0.24	)
Net realized gains		0.00			0.00			(0.01	)		(0.04	)		(0.02	)
Total distributions to shareholders		(0.39	)		(0.37	)		(0.38	)		(0.40	)		(0.26	)
Net asset value, end of period		$13.11			$12.28			$12.72			$12.71			$12.15
Total return		10.17	%		(0.52	)%		3.10	%		8.05	%		1.37	%
Ratios to average net assets (annualized)
Gross expenses		0.58	%		0.59	%		0.60	%		0.60	%		0.58	%
Net expenses		0.40	%		0.40	%		0.44	%		0.58	%		0.58	%
Net investment income		3.29	%		3.00	%		3.17	%		3.04	%		1.95	%
Supplemental data
Portfolio turnover rate		89	%		148	%		199	%		288	%		322	%
Net assets, end of period (000s omitted)		$524,743			$264,292			$163,387			$79,687			$54,419

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 anopen-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.

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 (e.g. taking into account various factors, including yields, maturities, or credit ratings) 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.

Forward foreign currency contracts are recorded at the forward rate 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”).

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.

Investments in registeredopen-end investment companies are valued at net asset value. Interests innon-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.

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.

Wells Fargo Core Plus Bond Fund  |  35

Notes to financial statements

Forward foreign currency contracts

A forward foreign currency contract is an agreement between two parties to purchase or sell a specific currency for anagreed-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 andmarked-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 is subject to foreign currency risk and may 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. When securities are on loan, the Fund receives interest or dividends on those securities. Cash collateral received in connection with its securities lending transactions is invested in Securities Lending Cash Investments, LLC (the “Securities Lending Fund”). Investments in Securities Lending Fund are valued at the evaluated bid price provided by an independent pricing service. Income earned from investment in the Securities Lending Fund (net of fees and rebates), if any, is included in income from affiliated securities on the Statement of Operations.

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. The Fund has the right under the lending agreement to recover the securities from the borrower on demand. 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 such an event, the terms of the agreement allows the unaffiliated securities lending agent to use the collateral to purchase replacement securities on behalf of the Fund or pay the Fund the market value of the loaned securities. The Fund will bear the risk of loss with respect to depreciation of its investment of the cash collateral.

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 purchasewhen-issued securities. Securities purchased on a when-issued basis aremarked-to-market daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.

Loans

The Fund may invest in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. The loans pay interest at rates which are periodically reset by reference to a base lending rate plus a spread. Investments in loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties. When the Fund purchases participations, it generally has no rights to enforce compliance with the 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

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 a 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 and is subject to interest rate risk and foreign currency risk. 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 the counterparty to all exchange traded futures, guarantees the futures contracts against default.

36  |  Wells Fargo Core Plus Bond Fund

Notes to financial statements

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 that are entered into as bilateral contracts in the OTC market (“OTC swaps”) or centrally cleared (“centrally cleared swaps”) with a central clearinghouse.

The Fund entered into centrally cleared swaps. 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 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 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.

By entering into credit default swap contracts, the Fund is exposed to credit risk. In addition, certain credit default swap contracts entered into by the Fund provide for conditions that result in events of default or termination that enable the counterparty to the agreement to cause an early termination of the transactions under those agreements.

Security transactions and income recognition

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

Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily. To the extent debt obligations are placed onnon-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 fromnon-accrual status.

Income dividends and capital gain distributions from investment companies are recorded on theex-dividend date. Capital gain distributions from investment companies are treated as realized gains.

Wells Fargo Core Plus Bond Fund  |  37

Notes to financial statements

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

Distributions to shareholders

Distributions to shareholders are recorded on theex-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, 2019, the aggregate cost of all investments for federal income tax purposes was $865,772,524 and the unrealized gains (losses) consisted of:

Gross unrealized gains	$	40,434,454
Gross unrealized losses		(8,909,350	)
Net unrealized gains	$	31,525,104

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 fund-level 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.

38  |  Wells Fargo Core Plus Bond 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, 2019:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Agency securities	$	0	$	175,165,499	$	0	$	175,165,499
Asset-backed securities		0		81,796,468		0		81,796,468
Corporate bonds and notes		0		184,909,698		0		184,909,698
Exchange-traded funds		7,992,077		0		0		7,992,077
Foreign corporate bonds and notes		0		29,056,264		0		29,056,264
Foreign government bonds		0		6,195,367		0		6,195,367
Loans		0		7,674,042		0		7,674,042
Municipal obligations		0		23,262,129		0		23,262,129
Non-agency mortgage-backed securities		0		104,609,250		0		104,609,250
U.S. Treasury securities		72,998,945		7,172,792		0		80,171,737
Yankee corporate bonds and notes		0		74,003,956		0		74,003,956
Yankee government bonds		0		27,215,840		0		27,215,840
Short-term investments
Investment companies		91,598,497		0		0		91,598,497
U.S. Treasury securities		1,899,115		0		0		1,899,115
		174,488,634		721,061,305		0		895,549,939
Futures contracts		886,696		0		0		886,696
Forward foreign currency contracts		0		1,666,870		0		1,666,870
Credit default swap contracts		0		43,961		0		43,961
Total assets	$	175,375,330	$	722,772,136	$	0	$	898,147,466
Liabilities
Futures contracts	$	646,538	$	0	$	0	$	646,538
Forward foreign currency contracts		0		203,300		0		203,300
Total liabilities	$	646,538	$	203,300	$	0	$	849,838

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

Futures contracts, forward foreign currency 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.

For the year ended August 31, 2019, the Fund did not have any transfers into/out of 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

Wells Fargo Core Plus Bond Fund  |  39

Notes to financial statements

connection with the Fund’s operations. As compensation for its services under the investment management agreement, Funds Management is entitled to receive a management fee at the following annual rate based on the Fund’s average daily net assets:

Average daily net assets	Management fee
First $500 million		0.450	%
Next $500 million		0.425
Next $2 billion		0.400
Next $2 billion		0.375
Next $5 billion		0.340
Over $10 billion		0.320

For the year ended August 31, 2019, 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 (“WellsCap”), 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	%
Class R6		0.03
Administrator Class		0.10
Institutional Class		0.08

Waivers and/or expense reimbursements

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. When only certain classes exceed their expense caps, waivers and/or reimbursements are applied against class specific expenses before fund-level expenses. Funds Management has committed through December 31, 2019 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. Prior to or after the commitment expiration date, 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 Rule12b-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 thefront-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, 2019, Funds Distributor received $9,211 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, 2019.

40  |  Wells Fargo Core Plus Bond Fund

Notes to financial statements

Shareholder servicing fees

The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class 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 Rule17a-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, 2019 were as follows:

Purchases at cost		Sales proceeds
U.S. government	Non-U.S. government	U.S. government	Non-U.S. government
$293,196,506	$507,806,020	$255,094,137	$289,161,707

As of August 31, 2019, the Fund had unfunded term loan commitments of $1,707,813.

6. SECURITIES LENDING TRANSACTIONS

The Fund lends its securities through an unaffiliated securities lending agent and 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 increases or decreases in the required collateral are exchanged between the Fund and the counterparty on the next business day. Cash collateral received is invested in the Securities Lending Fund which 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 and is exempt from registration under Section 3(c)(7) of the 1940 Act. Securities Lending Fund is managed by Funds Management and is subadvised by WellsCap. 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.

In the event of counterparty default or the failure of a borrower to return a loaned security, the Fund has the right to use the collateral to offset any losses incurred. As of August 31, 2019, the Fund had securities lending transactions with the following counterparties which are subject to offset:

Counterparty	Value of securities on loan		Collateral received1			Net amount
Barclays Capital Inc.	$	3,509,976	$	(3,509,976	)	$	0
Citigroup Global Markets Inc.		903,972		(903,972	)		0
JPMorgan Securities LLC		671,591		(671,591	)		0

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

7. DERIVATIVE TRANSACTIONS

During the year ended August 31, 2019, the Fund entered into futures contracts to speculate on interest rates and to help manage the duration of the portfolio. The Fund also entered into forward foreign currency contracts for economic hedging purposes and entered into credit default swap contracts to hedge risks and/or enhance total returns.

The volume of the Fund’s derivative activity during the year ended August 31, 2019 was as follows:

Futures contracts
Average notional balance on long futures	$	138,626,021
Average notional balance on short futures		26,948,673
Forward foreign currency contracts
Average contract amounts to buy		14,501,668
Average contract amounts to sell		47,400,591
Credit default swap contracts
Average notional balance		11,741,231

Wells Fargo Core Plus Bond Fund  |  41

Notes to financial statements

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 risk is outlined in the following tables.

The fair value of derivative instruments as of August 31, 2019 by risk type was as follows for the Fund:

	Asset derivatives				Liability derivatives
	Statement of Assets and Liabilities location	Fair value			Statement of Assets and Liabilities location	Fair value
Interest rate risk	Unrealized gains on futures contracts	$	886,696	*	Unrealized losses on futures contracts	$	0	*
Foreign currency risk	Unrealized gains on futures contracts		0	*	Unrealized losses on futures contracts		646,538	*
Foreign currency risk	Unrealized gains on forward foreign currency contracts		1,666,870		Unrealized losses on forward foreign currency contracts		203,300
Credit risk	Net unrealized gains on swap contracts		43,961	*	Net unrealized losses on swap contracts		0	*
		$	2,597,527			$	849,838

* 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, 2019 is reported separately on the Statement of Assets and Liabilities.

The effect of derivative instruments on the Statement of Operations for the year ended August 31, 2019 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	$	7,480,788		$	0	$	0	$	7,480,788
Foreign currency risk		(547,957	)		1,897,442		0		1,349,485
Credit risk		0			0		401,568		401,568
	$	6,932,831		$	1,897,442	$	401,568	$	9,231,841
	Change in unrealized gains (losses) on derivatives
	Futures contracts			Forward foreign currency contracts		Swap contracts		Total
Interest rate risk	$	936,473		$	0	$	0	$	936,473
Foreign currency risk		(598,424	)		1,378,735		0		780,311
Credit risk		0			0		76,197		76,197
	$	338,049		$	1,378,735	$	76,197	$	1,792,981

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 forover-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

42  |  Wells Fargo Core Plus Bond Fund

Notes to financial statements

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	$1,666,870	$(203,300)	$	0	$	1,463,570
Counterparty	Gross amounts of liabilities in the Statement of Assets and Liabilities	Amounts subject to netting agreements	Collateral pledged		Net amount of liabilities
Citibank	$203,300	$(203,300)	$	0	$	0

8. 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, 2019, there were no borrowings by the Fund under the agreement.

9. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid was $19,702,655 and $16,334,620 of ordinary income for the years ended August 31, 2019 and August 31, 2018, respectively.

As of August 31, 2019, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Undistributed long-term gain	Unrealized gains
$4,499,822	$3,784,799	$31,525,104

Effective for all filings after November 4, 2018, the Securities and Exchange Commission eliminated the requirement to separately state the components of distributions to shareholders under U.S. generally accepted accounting principles. The amounts of distributions to shareholders for the year ended August 31, 2018 were as follows:

	Net investment income
Class A	$	6,592,901
Class C		396,945
Class R6		1,205,963
Administrator Class		1,057,877
Institutional Class		7,080,934

10. INDEMNIFICATION

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

Wells Fargo Core Plus Bond Fund  |  43

Notes to financial statements

11. NEW ACCOUNTING PRONOUNCEMENTS

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. ASU2018-13 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 has adopted the removal and modification of disclosures early, as permitted, and will adopt the additional new disclosures at the effective date.

In March 2017, FASB issued ASUNo. 2017-08,Premium Amortization on Purchased Callable Debt Securities. ASU2017-08 shortens the amortization period for certain callable debt securities held at a premium and requires the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount and discounts will continue to be accreted to the maturity date of the security. ASU2017-08 is effective for fiscal years beginning after December 15, 2018 and for interim periods within those fiscal years. During the current reporting period, management of the Fund adopted the change in accounting policy which did not have a material impact to the Fund’s financial statements.

44  |  Wells Fargo Core Plus Bond Fund

Report of independent registered public accounting firm

TO THE SHAREHOLDERS OF THE FUND AND BOARD OF TRUSTEES 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), one of the funds constituting Wells Fargo Funds Trust, including the portfolio of investments, as of August 31, 2019, 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, 2019, 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, 2019, by correspondence with the custodian, transfer agent 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 28, 2019

Wells Fargo Core Plus Bond Fund  |  45

Other information (unaudited)

TAX INFORMATION

For corporate shareholders, pursuant to Section 854 of the Internal Revenue Code, 1.50% of ordinary income dividends qualify for the corporate dividends-received deduction for the fiscal year ended August 31, 2019.

Pursuant to Section 854 of the Internal Revenue Code, $295,034 of income dividends paid during the fiscal year ended August 31, 2019 has been designated as qualified dividend income (QDI).

For the fiscal year ended August 31, 2019, $12,477,919 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, 2019, 7.18% of the ordinary income distributed was derived from interest on U.S. government securities.

PROXY VOTING INFORMATION

A description of the policies and procedures used to determine how to vote proxies relating to portfolio securities is available, upon request, by calling1-800-222-8222, visiting our website atwfam.com, or visiting the SEC website at sec.gov. Information regarding how the proxies related to portfolio securities were voted during the most recent12-month period ended June 30 is available on the website atwfam.comor by visiting the SEC website at sec.gov.

QUARTERLY PORTFOLIO HOLDINGS INFORMATION

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 or FormN-PORT, which is available by visiting the SEC website at sec.gov. Those forms may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling1-800-SEC-0330.

46  |  Wells Fargo Core Plus 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 152 mutual funds comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and fourclosed-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. Audit Committee Chair and Investment Committee Chair of the Vincent Memorial Hospital Endowment(non-profit organization). 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; Audit Committee Chairman, since 2019	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, from 2009 to 2018	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

Wells Fargo Core Plus Bond Fund  |  47

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
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
Olivia S. Mitchell (Born 1953)	Trustee, since 2006; Nominating and 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	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, anon-profit organization, since 2007. Member of the Board of Trustees of NorthStar Education Finance, Inc., anon-profit organization, since 2007.	N/A
James G. Polisson (Born 1959)	Trustee, since 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, anon-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

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

48  |  Wells Fargo Core Plus 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.
Michelle Rhee3 (Born 1966)	Chief Legal Officer, since 2019	Secretary of Wells Fargo Funds Management, LLC, Chief Legal Counsel of Wells Fargo Asset Management and Assistant General Counsel of Wells Fargo Bank, N.A. since 2018. Associate General Counsel and Managing Director of Bank of America Corporation from 2004 to 2018.
Catherine Kennedy4 (Born 1969)	Secretary, since 2019	Vice President of Wells Fargo Funds Management, LLC and Senior Counsel of the Wells Fargo Legal Department since 2010. Vice President and Senior Counsel of Evergreen Investment Management Company, LLC from 1998 to 2010.
Michael H. Whitaker(Born 1967)	Chief Compliance Officer, since 2016	Chief Compliance Officer of Wells Fargo Asset Management 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 65 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 87 funds and Assistant Treasurer of 65 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 calling1-800-222-8222 or by visiting the website atwfam.com.

³  Michelle Rhee became Chief Legal Officer effective October 22, 2019.

⁴  Catherine Kennedy became Secretary effective October 22, 2019.

Wells Fargo Core Plus Bond Fund  |  49

Other information (unaudited)

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT ANDSUB-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 andsub-advisory agreements. In this regard, at anin-person meeting held on May21-22, 2019 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management andsub-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 investmentsub-advisory agreement (the“Sub-Advisory Agreement”) with Wells Capital Management Incorporated (the“Sub-Adviser”), an affiliate of Funds Management. The Management Agreement and theSub-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 theSub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at anin-person meeting in April 2019, 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 asub-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 theSub-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 2019. 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 theSub-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 wasall-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 aone-year term and determined that the compensation payable to Funds Management and theSub-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 afund-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 theSub-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 theSub-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 theSub-Adviser, and a description of Funds Management’s and theSub-Adviser’s business continuity planning programs and of their approaches to data privacy and cybersecurity. The Board received and reviewed information about Funds Management’s role as administrator of the Fund’s liquidity risk management program. The Board also considered the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for theday-to-day portfolio management of the Fund.

The Board evaluated the ability of Funds Management and theSub-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 theSub-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, 2018. The Board considered these results in comparison to the investment performance of funds in a universe that was determined by

50  |  Wells Fargo Core Plus Bond Fund

Other information (unaudited)

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 theone-, three- and five-year periods under review, but lower than the average investment performance of the Universe for theten-year period under review. The Board also noted that the investment performance of the Fund was lower than its benchmark index, the Bloomberg Barclays U.S. Aggregate Bond Index, for theone-year period under review, but higher than its benchmark for the three-, five- andten-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 othernon-management fees, and Rule12b-1 andnon-Rule12b-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 fromyear-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 tore-approve the Advisory Agreements.

Investment management andsub-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 andsub-transfer agency costs (collectively, the “Management Rates”). The Board also reviewed and considered the contractual investmentsub-advisory fee rates that are payable by Funds Management to theSub-Adviser for investmentsub-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 theSub-Adviser forsub-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 theSub-Adviser, and about Funds Management’son-going oversight services. Given the affiliation between Funds Management and theSub-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 theSub-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 proprietary mutual funds compared with those associated with managing assets of other types of clients, including third-partysub-advised fund clients andnon-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 theSub-Adviser under theSub-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”) from providing services to the fund family as a whole. The Board noted that theSub-Adviser’s profitability information with respect to providing services to the Fund and other funds in the family 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. Among other things, the Board noted that the levels of profitability

Wells Fargo Core Plus Bond Fund  |  51

Other information (unaudited)

reported on afund-by-fund basis varied widely, depending on factors such as the size, type and age 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 received and considered information about the potential for Funds Management to experience economies of scale in the provision of management services to the Fund, the difficulties of calculating economies of scale at an individual fund level, and the extent to which potential scale benefits are shared with shareholders. 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. The Board considered that in addition to management fee breakpoints, Funds Management shares potential economies of scale from its management business in a variety of ways, including through fee waiver and expense reimbursement arrangements, services that benefit shareholders, competitive management fee rates set at the outset without regard to breakpoints, and investments in the business intended to enhance services available to shareholders.

The Board concluded that Funds Management’s arrangements with respect to the Fund, 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 theSub-Adviser

The Board received and considered information regarding potential“fall-out” or ancillary benefits received by Funds Management and its affiliates, including theSub-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 theSub-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 andsub-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 theSub-Adviser, fees earned by Funds Management and theSub-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 theSub-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 aone-year term and determined that the compensation payable to Funds Management and theSub-Adviser under each of the Advisory Agreements was reasonable.

52  |  Wells Fargo Core Plus Bond Fund

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:wfam.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, call1-800-222-8222 or visit the Fund’s website atwfam.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.

INVESTMENT PRODUCTS: NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

© 2019 Wells Fargo Funds Management, LLC. All rights reserved.

405805 10-19

A219/AR219 08-19

Annual Report

August 31, 2019

Wells Fargo

Short Duration Government Bond Fund

Beginning on January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, paper copies of the Wells Fargo Funds’ annual and semi-annual shareholder reports issued after this date will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Funds’ website, and you will be notified by mail each time a report is posted and provided with a website address to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling1-800-222-8222 or by enrolling at wellsfargo.com/advantagedelivery.

You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports; if you invest directly with the Fund, you can call 1-800-222-8222. Your election to receive reports in paper will apply to all Wells Fargo Funds held in your account with your financial intermediary or, if you are a direct investor, to all Wells Fargo Funds that you hold.

Contents

Letter to shareholders	2
Performance highlights	6
Fund expenses	10
Portfolio of investments	11
Financial statements
Statement of assets and liabilities	16
Statement of operations	17
Statement of changes in net assets	18
Financial highlights	19
Notes to financial statements	24
Report of independent registered public accounting firm	30
Other information	31

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The views expressed and any forward-looking statements are as of August 31, 2019, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Asset Management. 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 Asset Management and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

INVESTMENT PRODUCTS: NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾  MAY LOSE VALUE

Wells Fargo Short Duration Government Bond Fund  |  1

Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

Dear Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Short Duration Government Bond Fund for the 12-month period that ended August 31, 2019. After the first half of the period yielded either low-single-digit or negative investment returns, U.S. stock and global bond investors generally saw markets recover during the second half amid intensifying market volatility, global economic growth concerns, international trade staredowns, and simmering geopolitical tensions.

Overall, fixed-income investors enjoyed a distinct advantage over stock investors. For the period, U.S. stocks, based on the S&P 500 Index,¹ gained 2.92% and international stocks, as measured by the MSCI ACWI ex USA Index (Net),² fell 3.27%. The MSCI EM Index (Net)³ slipped 4.36%. Among fixed income investors, the Bloomberg Barclays U.S. Aggregate Bond Index⁴ added 10.17%, the Bloomberg Barclays Global Aggregate ex-USD Index⁵ added 5.71%, the Bloomberg Barclays Municipal Bond Index⁶ gained 8.72%, and the ICE BofAML U.S. High Yield Index⁷ added 6.58%.

Entering the fourth quarter of 2018, economic data was encouraging.

Entering the fourth quarter of 2018, there were reasons for investors to be optimistic. The U.S. Bureau of Economic Analysis reported U.S. gross domestic product (GDP) grew 4.2% on an annualized basis during the second quarter. Hiring improved. Unemployment declined. Consumer spending gained. Third-quarter corporate earnings reports were generally positive. U.S. trade negotiations with Mexico and Canada advanced. In September 2018, the U.S. Federal Reserve (Fed) raised the federal funds rate by 25 basis points (bps; 100 bps equal 1.00%) to a target range of between 2.00% and 2.25% in an indication of its confidence that U.S. economic growth was sustainable.

International markets presented numerous challenges. U.S.-China trade tensions increased. The U.S. imposed $200 billion in tariffs on Chinese goods. China reacted with $60 billion in tariffs on U.S. goods. Economic growth in China caused concern. In September 2018, international investors began to factor in a number of disconcerting economic and business data points: lower July manufacturing and industrial orders in Germany; declining purchasing managers’ index numbers for August from the United Kingdom, China, and India; and declining household spending for August in Japan. Taken together, the data fed growing concerns that global economic growth was slowing.

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 and emerging markets, excluding the U.S. 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 the equity market performance of emerging markets. 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 2019. ICE Data Indices, LLC. All rights reserved.

2  |  Wells Fargo Short Duration Government Bond Fund

Letter to shareholders (unaudited)

Investors had to digest unsettling events during the fourth quarter of 2018.

November’s U.S. midterm elections shifted control of the House of Representatives from Republicans to Democrats, presaging partisan clashes that followed and caused uncertainty among investors. A partial U.S. government shutdown driven by partisan policy disputes extended into January 2019. Third-quarter U.S. GDP was announced at an annualized 3.4% rate, lower than the second-quarter rate. Brexit efforts stalled. The value of the renminbi declined even as the People’s Bank of China cut reserve requirement ratios, accelerated infrastructure spending, and cut taxes in efforts to spur economic activity.

The combination of news in the U.S. and generally weak economic indicators outside of the U.S. caused investors to seek safe havens. December’s S&P 500 Index performance was the worst since 1931. Globally, fixed-income investments fared better than stocks during the last two months of the year. The Fed increased the federal funds rate by 25 bps in December 2018 to a target range of between 2.25% and 2.50% even as observers expressed concerns that higher rates could slow the economy.

The market climbs a wall of worry.

Investment returns appeared to reaffirm the adage that markets climb a wall of worry as 2019 opened. Following its December decline, the S&P 500 Index gained 8.01% for the month of January, the best monthly performance in 30 years. Returns for the MSCI ACWI ex USA Index (Net), the Bloomberg Barclays U.S. Aggregate Bond Index, and the Bloomberg Barclays Global Aggregate ex-USD Index also were positive.

In February 2019, signs of slowing global growth grew more ominous. The Bureau of Economic Analysis announced fourth-quarter 2018 GDP grew at an annualized 2.2% rate, down from the levels of the prior two quarters. In a February report, the Bank of England forecast the slowest growth for 2019 since the financial crisis. China and the U.S. continued to wrangle over trade issues. By the end of the first quarter of 2019, more accommodative Fed sentiment and steady, if not spectacular, U.S. economic and business metrics encouraged domestic investors.

Early second-quarter 2019 enthusiasm among investors faded.

During April 2019, favorable sentiment found additional support in reports of sustained low inflation, solid employment data, and first-quarter U.S. GDP of an annualized rate of 3.2%. During May, markets tumbled on mixed investment signals. In the U.S., partisan wrangling ramped up as Democrats and Republicans set their sights on 2020 presidential politics. The U.K.’s Brexit contretemps caused Prime Minister Theresa May to resign. Boris Johnson succeeded her only to exacerbate uncertainty about Brexit’s resolution ahead of an October 2019 deadline. The European Commission downgraded the 2019 growth forecast to 1.2%. The U.S. increased tariffs on products from China, China responded, and then talks broke down. President Donald Trump threatened to turn his foreign policy tariff tool to Mexico over immigration issues.

During the third quarter of 2019, investors regrouped. Just as the investment horizon appeared to darken, sentiment turned and U.S. equity markets gained during June and July. The gains, primarily driven by geopolitical and monetary policy events, pushed equity markets to new highs. European Central Bank President Mario Draghi said that if the outlook doesn’t improve, the bank would cut rates or buy more assets to prop up inflation. President Trump backed off of tariff threats against Mexico and China. In the U.S., the Fed implemented a 0.25% federal funds rate cut in July.

Later in July, the U.S. reversed course and threatened to impose higher tariffs on China’s exports after talks failed. China responded with tariff threats of its own and

“December’s S&P 500 Index performance was the worst since 1931.”

“Following its December decline, the S&P 500 Index gained 8.01% for the month of January, the best monthly performance in 30 years.”

Wells Fargo Short Duration Government Bond Fund  |  3

Letter to shareholders (unaudited)

For further information about your Fund, contact your investment professional, visit our website at wfam.com,

or call us directly at1-800-222-8222.

devalued the renminbi, a move that roiled global markets. Major U.S. stock market indices closed July 2019 with the worst weekly results of the year. Bond prices gained as Treasury yields fell to levels not seen since November 2016 and the yield curve inverted at multiple points along the 30-year arc.

In a microcosm, August 2019 encapsulated many of the unnerving events that plagued investors during the prior 11 months. The U.S.-China trade relationship swung from discouraging to hopeful and back again with no evident compromise on the horizon. Evidence of a continued global economic slowdown continued to mount as central banks in China, New Zealand, and Thailand cut interest rates. Industrial and manufacturing data declined in China, Canada, Japan, and Germany. Adding to the uncertain environment, Italy’s prime minister resigned, many feared a crackdown in Hong Kong as protesters sustained their calls for reform throughout the month, and Boris Johnson planned to suspend Parliament as Brexit’s deadline neared.

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

4  |  Wells Fargo Short Duration Government Bond Fund

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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, 2019

		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 (MSDAX)	3-11-1996		1.84		0.63		1.11		3.92		1.04		1.31		0.80		0.78
Class C (MSDCX)	5-31-2002		2.14		0.29		0.56		3.14		0.29		0.56		1.55		1.53
Class R6 (MSDRX)3	11-30-2012		–		–		–		4.34		1.48		1.75		0.42		0.37
Administrator Class (MNSGX)	12-18-1992		–		–		–		4.10		1.22		1.52		0.74		0.60
Institutional Class (WSGIX)	4-8-2005		–		–		–		4.29		1.41		1.70		0.47		0.42
Bloomberg Barclays U.S. 1-3 Year Government Bond Index4	–		–		–		–	��	4.41		1.35		1.24		–		–

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,wfam.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.

6  |  Wells Fargo Short Duration Government Bond Fund

Performance highlights (unaudited)

Growth of $10,000 investment as of August 31, 2019⁵

^‡  CFA^® and Chartered Financial Analyst^® are trademarks owned by CFA Institute.

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, 2019, to waive fees and/or reimburse expenses to the extent necessary to cap the expenses of each class after fee waivers at the amounts shown. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses (if any), and extraordinary expenses are excluded from the expense cap. Prior to or after the commitment expiration date, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Without this cap, the Fund’s returns would have been lower. The expense ratio paid by an investor is the net expense ratio (the total annual fund operating expenses after fee waivers) as stated in the prospectuses.

³  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.

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 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.

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.

Wells Fargo Short Duration Government Bond Fund  |  7

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, 2019.

∎ Positioning and security selection within agency mortgage-backed pass-through securities detracted from performance as the interest rate sensitivity associated with these positions weighed on performance.

∎ The Fund has out-of-benchmark allocations to high-quality asset-backed securities (ABS) and commercial mortgage-backed securities (CMBS), which detracted from performance toward the end of 2018.

∎ Security selection and positioning in agency mortgage-backed securities (MBS), specifically within high-coupon specified pools, adjustable-rate mortgages (ARMs), and collateralized mortgage obligations (CMOs), contributed to performance.

Ten largest holdings (%) as of August 31, 20196
U.S. Treasury Note, 2.75%, 4-30-2023	5.37
U.S. Treasury Note, 2.13%, 8-15-2021	4.73
U.S. Treasury Note, 2.13%, 5-31-2021	4.53
U.S. Treasury Note, 1.50%, 8-15-2022	4.20
GNMA, 5.00%, 4-20-2049	3.61
U.S. Treasury Note, 1.75%, 7-15-2022	3.33
U.S. Treasury Note, 2.13%, 5-15-2022	3.19
FNMA, 2.50%, 6-1-2029	3.12
FNMA, 5.00%, 1-1-2049	2.33
U.S. Treasury Note, 1.88%, 8-31-2022	2.25

The economy and markets were favorable.

Early during the period, the U.S. economy began to cool amid signals of a synchronized deceleration of global growth and weakness in China and parts of Europe. Despite this, and with trade and political risks mounting, stocks rose to new highs and market participants were keenly focused on a growing economy and monetary policy, including forecasts for rate hikes to extend through 2020. Fixed-income markets also performed well, while rates trended somewhat higher despite inflationary pressures remaining nonexistent.

Across the Pacific, President Donald Trump met with North Korean leader Kim Jong Un in Singapore as planned in the first-ever summit meeting between leaders of the

contending nations. Meanwhile, The Bank of Japan tweaked its long-running monetary stimulus program in potentially a step toward normalization. On the trade front, as previously signaled and with the looming deadline for implementation, the Trump administration slapped tariffs on $200 billion in Chinese goods while China responded with duties of its own on $60 billion in U.S. goods.

In Europe, political risks were averted as Italy finalized its budget with the European Commission, although Brexit negotiations stalled in Parliament despite the travails of Theresa May. The Turkish financial system and the Turkish lira fell under significant pressure during the summer months, exacerbating a broader slide in emerging markets. Parts of Europe are in recession, with the major centers of economic activity registering anemic growth.

Toward year-end, credit spreads began to widen despite solid reports of gross domestic product and with the unemployment rate touching a 45-year low. Following the U.S. elections in November that drew a record number of voters to the polls, Democrats seized control of the House of Representatives while Republicans held onto the Senate in what was seen by many as a national referendum on President Trump. As anticipated, the U.S. Federal Reserve (Fed) unanimously decided to raise its key federal funds rate in December, the third hike of the year and, as it turns out, perhaps the last one for quite a while. Stocks plunged in December amid a ferocious flight to quality. Following a refusal by President Trump to sign the Senate’s version of a short-term spending bill, the federal government partially shut down just prior to the Christmas holiday and remained shuttered for over a month.

As we moved into 2019, a more tepid Fed completely reversed course, sounding off a more dovish tone. Stock and credit markets rebounded in spectacular fashion, with the S&P 500 Index⁷ posting its best January since 1987. The yield curve inverted somewhat during the first weeks of the year, perhaps a harbinger of the slowdown emerging as a result of trade tensions between the U.S. and China, among other influences. Futures markets indicated a rate cut in the intermediate term, an astounding reversal of conditions heading into year-end.

The return of interest rate and spread volatility set the stage for strong security selection opportunities early during 2019. Despite the reversal of stock prices and credit amid the actions of Fed Chairman Jay Powell and the Federal Open Market Committee, we believe that volatile conditions remain firmly in place, with doubts surrounding resolution of trade and political risks, while the global economy continues to sputter. The Fed seems intent on lowering rates in a preemptive move, giving rise to dissention among investors who are concerned about impacts on the consumer and prepayment activity, notably in the mortgage-backed securities (MBS) sector of the fixed-income market. We look forward to employing our risk-constrained investment process in what could be very disorderly markets laden with inefficiently priced securities.

Please see footnotes on page 7.

8  |  Wells Fargo Short Duration Government Bond Fund

Performance highlights (unaudited)

Portfolio allocation as of August 31, 2019⁸

Portfolio positioning continues to be driven by our bottom-up research and selection.

We ended the year with approximately 13% of the portfolio in agency collateralized mortgage obligations (CMOs), 11% in high-quality ABS and CMBS, 33% in agency mortgage-backed pass-through securities, 10% in mortgage hybrid adjustable-rate mortgages (ARMs), 6% in non-agency MBS, and the remainder in U.S. Treasury and agency debt. We remain overweight the MBS, ABS, and CMBS sectors and underweight the agency and U.S. Treasury sectors. Throughout the month and 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.

We decreased agency MBS exposure, offset by purchasing floating-rate CMOs as we looked to defend the MBS portfolio from prepayment risks. We ramped up agency hybrid ARM exposure as well because ARM spreads held in well relative to fixed-rate MBS and offered value. Within agency pass-through securities, we’ve favored higher-coupon, specified pools, including pools focused on low loan balance mortgages and loans originated in New York state. Our nongovernment exposure remained constant during the year despite active rotation between sectors.

Our outlook is cautious.

The U.S. economy appeared to further decelerate in August, sustaining a trend beginning early in the second quarter. Manufacturing slowed noticeably amid trade tensions and concerns with The Boeing Company’s production, and nonresidential construction pulled back sharply. A softer picture for consumption also began to emerge early in the third quarter, with housing showing signs of a continued slowdown. Beginning in August, however, there were early indications that the recent plunge in interest rates may support consumer durables sectors like autos, while a pickup in mortgage refinancing could improve discretionary income and somewhat stabilize fragile housing markets. Job growth also was sustained, albeit at slower run rates. International growth indicators, while remaining on the soft side, appeared to be stabilizing after weakening noticeably in the second quarter and early in the third. Signs of renewed trade tensions also reemerged in August, although there is some possibility that a pain point has been reached that could help bring parties back to the table in October. The most recent round of tariffs is expected to be implemented in early October, with an uncertain effect on the economy.

As the global economy showed signs of slowing, U.S. and global inflation continued to be on the soft side. Measures of U.S. consumer prices firmed somewhat during the closing months of the period after a particularly weak start to the year, with hourly earnings picking up although producer prices softened anew in light of the persistent strength of the dollar and, to a lesser extent, other developed market currencies relative to emerging markets. In international markets such as Europe and Japan, inflation remains well below central banks’ targets.

Given these developments, monetary policymakers began to respond. The Fed pivoted to a more accommodative stance at its June 2019 meeting and delivered a 25 basis-point (bp; 100 bps equal 1.00%) rate cut in July, the first in over 10 years, and market participants expect another cut in September. The European Central Bank is expected to announce further policy measures at its September meeting, which could entail more negative rates and possibly a restart of quantitative easing programs along with implementation of a tiered rate system to relieve pressure on banks’ net interest margins. One particular risk for market participants is calibration of mixed messaging from policy officials. While there is a sense that easing could occur should data continue to weaken, with more aggressive policy changes than seen in past economic cycles, calibration versus expectations is also key. Policymakers, particularly in the U.S., seem keen to make mid-cycle calibrations rather than larger moves unless further economic weakness is seen. On the other hand, the recent Jackson Hole conference of global monetary policy officials revealed broad dissatisfaction with the status quo, which could portend some possibility of paradigm shifts in the form of new and innovative policy proposals over the coming quarters.

For the balance of the third quarter, market participants may be closely calibrating incoming data versus likely policy reactions as well as event risks emerging from trade talks and political topics like Brexit. Government bond markets, following a sharp rally in the third quarter, could be overpricing the risks to the global economy, although some premium paid for bonds’ portfolio insurance value could be warranted. High valuations in the equity markets, while looking perhaps more stable in the near term, could alternatively be vulnerable should economic data continue to weaken.

Consistent with our bottom-up process, we maintain a neutral duration. We remain nimble and agile, and we stand ready to take advantage of security selection opportunities as they arise.

Please see footnotes on page 7.

Wells Fargo Short Duration Government Bond Fund  |  9

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, 2019 to August 31, 2019.

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 3-1-2019		Ending account value 8-31-2019		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,026.99	$	3.98		0.78	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.27	$	3.97		0.78	%
Class C
Actual	$	1,000.00	$	1,023.09	$	7.80		1.53	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.49	$	7.78		1.53	%
Class R6
Actual	$	1,000.00	$	1,029.04	$	1.89		0.37	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.34	$	1.89		0.37	%
Administrator Class
Actual	$	1,000.00	$	1,027.90	$	3.07		0.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.18	$	3.06		0.60	%
Institutional Class
Actual	$	1,000.00	$	1,028.82	$	2.15		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).

10  |  Wells Fargo Short Duration Government Bond Fund

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Agency Securities: 54.96%
FHLMC (12 Month LIBOR +1.65%)±		2.34	%		3-1-2043	$	1,697,818	$	1,713,346
FHLMC (12 Month LIBOR +1.84%)±		3.40			5-1-2042		2,050,827		2,105,897
FHLMC (12 Month LIBOR +1.64%)±		3.59			2-1-2049		556,079		575,928
FHLMC		4.00			10-1-2033		674,849		724,714
FHLMC		4.00			1-1-2034		618,364		664,035
FHLMC		4.00			5-15-2039		1,228,971		1,246,965
FHLMC		4.00			10-1-2048		538,917		559,539
FHLMC		4.00			11-1-2048		1,681,467		1,744,849
FHLMC		4.50			4-1-2031		1,346,205		1,442,293
FHLMC Multifamily Structured Pass-Through Certificates Series KI02 Class A (1 Month LIBOR +0.20%)±		2.42			2-25-2023		2,116,610		2,113,568
FHLMC Series 3632 Class PK		5.00			2-15-2040		3,795,791		4,153,194
FHLMC Series 3653 Class AU		4.00			4-15-2040		1,341,705		1,452,235
FHLMC Series 3738 Class BP		4.00			12-15-2038		1,539,679		1,567,625
FHLMC Series 4239 Class AB		4.00			12-15-2039		1,096,010		1,122,231
FHLMC Series 4891 Class PA		3.50			7-15-2048		4,306,567		4,416,731
FHLMC Series 4897 Class F (1 Month LIBOR +0.40%)±		2.60			7-15-2049		1,461,583		1,461,384
FNMA		2.00			3-25-2028		1,895,892		1,900,859
FNMA (12 Month LIBOR +1.69%)±		2.42			11-1-2042		3,282,451		3,315,743
FNMA		2.50			5-1-2028		4,908,947		4,992,389
FNMA		2.50			6-1-2029		17,392,512		17,625,788
FNMA		2.50			11-1-2031		6,928,242		7,036,083
FNMA (12 Month LIBOR +1.60%)±		2.55			10-1-2046		4,863,213		4,932,789
FNMA (12 Month LIBOR +1.59%)±		2.66			1-1-2046		3,383,865		3,442,492
FNMA (12 Month LIBOR +1.58%)±		2.68			2-1-2046		4,657,144		4,728,775
FNMA (12 Month LIBOR +1.57%)±		2.69			3-1-2045		2,903,256		2,956,670
FNMA (12 Month LIBOR +1.60%)±		2.73			1-1-2045		1,203,044		1,223,732
FNMA (12 Month LIBOR +1.61%)±		2.74			3-1-2047		6,584,713		6,709,683
FNMA (12 Month LIBOR +1.58%)±		2.75			6-1-2045		2,927,072		2,986,677
FNMA (12 Month LIBOR +1.57%)±		2.75			3-1-2045		1,795,406		1,831,119
FNMA (12 Month LIBOR +1.60%)±		2.90			7-1-2046		10,070,841		10,263,491
FNMA (12 Month LIBOR +1.60%)±		2.95			8-1-2047		4,045,365		4,131,207
FNMA (12 Month LIBOR +1.61%)±		3.07			6-1-2047		4,052,590		4,142,333
FNMA %%		3.50			9-12-2049		11,900,000		12,230,969
FNMA (12 Month LIBOR +1.61%)±		3.53			5-1-2049		91,866		95,029
FNMA (12 Month LIBOR +1.62%)±		3.82			9-1-2048		77,795		81,425
FNMA (12 Month LIBOR +1.61%)±		3.85			12-1-2048		22,756		23,883
FNMA		4.00			4-1-2032		598,612		642,463
FNMA		4.00			10-1-2033		963,410		1,027,020
FNMA		4.00			1-1-2034		5,386,132		5,742,645
FNMA		4.00			1-1-2034		4,714,142		5,019,261
FNMA		4.00			2-1-2034		5,440,630		5,760,504
FNMA		4.00			7-1-2034		1,242,132		1,316,855
FNMA		4.00			1-1-2049		12,056,813		12,504,770
FNMA		4.50			2-1-2034		1,368,238		1,457,330
FNMA		4.50			9-1-2037		639,368		696,914
FNMA		4.50			3-1-2049		4,232,941		4,529,616
FNMA		5.00			10-1-2040		1,202,762		1,339,294
FNMA		5.00			5-1-2046		468,960		521,412
FNMA		5.00			8-1-2048		3,254,577		3,563,680
FNMA		5.00			1-1-2049		12,052,022		13,165,390

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

Wells Fargo Short Duration Government Bond Fund  |  11

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal			Value
Agency Securities (continued)
FNMA		5.00	%		1-1-2049	$	5,687,688		$	6,246,114
FNMA		5.00			2-1-2049		265,567			290,103
FNMA		5.00			3-1-2049		535,503			586,367
FNMA		5.00			3-1-2049		2,028,595			2,207,423
FNMA		5.00			8-1-2049		7,519,459			8,278,405
FNMA		5.50			6-1-2049		7,601,186			8,568,189
FNMA Series2009-20 Class DT		4.50			4-25-2039		1,887,075			2,096,085
FNMA Series2011-14 Class GD		4.00			4-25-2040		2,799,776			2,892,153
FNMA Series2013-103 Class H		4.50			3-25-2038		1,967,467			2,023,422
FNMA Series2013-90 Class A		4.00			11-25-2038		2,746,124			2,779,135
FNMA Series2015-57 Class AB		3.00			8-25-2045		3,066,505			3,184,342
FNMA Series2018-86 Class MF (1 Month LIBOR +0.30%)±		2.45			12-25-2048		7,081,839			7,042,112
FNMA Series2019-13 Class FG (1 Month LIBOR +0.40%)±		2.55			4-25-2049		2,997,358			3,001,734
FNMA Series2019-18 Class FA (1 Month LIBOR +0.45%)±		2.60			5-25-2049		2,339,773			2,343,572
FNMA Series2019-18 Class FB (1 Month LIBOR +0.45%)±		2.60			5-25-2049		2,745,013			2,749,644
FNMA Series2019-18 Class FE (1 Month LIBOR +0.35%)±		2.50			5-25-2049		5,468,135			5,460,139
FNMA Series2019-6 Class FA (1 Month LIBOR +0.40%)±		2.55			3-25-2049		4,828,495			4,826,435
FNMA Series 4853 Class FG (1 Month LIBOR +0.40%)±		2.60			4-15-2038		1,879,249			1,878,246
GNMA		4.50			2-20-2049		4,704,116			5,012,071
GNMA		4.50			4-20-2049		1,081,610			1,152,942
GNMA		5.00			10-15-2039		1,148,592			1,286,195
GNMA		5.00			3-20-2048		2,745,200			2,920,356
GNMA		5.00			6-20-2048		355,601			389,148
GNMA		5.00			6-20-2048		225,472			244,539
GNMA		5.00			7-20-2048		268,329			289,894
GNMA		5.00			9-20-2048		1,899,300			2,049,977
GNMA		5.00			3-20-2049		555,549			602,382
GNMA		5.00			3-20-2049		2,633,135			2,833,310
GNMA		5.00			4-20-2049		19,409,692			20,445,533
GNMA		5.00			4-20-2049		3,841,569			4,167,391
GNMA		5.00			5-20-2049		95,145			100,586
GNMA		5.00			5-20-2049		3,177,387			3,444,551
GNMA		5.50			8-20-2049		6,461,000			6,888,589
GNMA Series2011-137 Class WA±±		5.56			7-20-2040		2,710,764	��		3,120,125
GNMA Series2012-141 Class WD±±		4.97			7-20-2040		2,437,426			2,726,050
GNMA Series2017-99 Class DE		2.50			7-20-2045		3,781,738			3,811,737
GNMA Series2018-153 Class FQ (1 Month LIBOR +0.30%)±		2.47			11-20-2048		1,209,784			1,205,090
GNMA Series2018-36 Class KC		3.00			2-20-2046		2,713,059			2,774,695
Total Agency Securities (Cost $308,347,976)										310,921,605
Asset-Backed Securities: 12.84%
Bank of The West Auto Trust Series2019-1 Class A4 144A		2.51			10-15-2024		1,316,000			1,338,390
Ford Credit Auto Owner Trust Series2017-1 Class A 144A		2.62			8-15-2028		6,085,000			6,190,448
Ford Credit Auto Owner Trust Series2017-2 Class A 144A		2.36			3-15-2029		2,368,000			2,399,337
Hertz Vehicle Financing LLC Series2015-3A Class A 144A		2.67			9-25-2021		2,652,000			2,663,845
Hertz Vehicle Financing LLC Series2016-4A Class A 144A		2.65			7-25-2022		2,651,000			2,665,551
Hertz Vehicle Financing LLC Series2019-1A Class A 144A		3.71			3-25-2023		5,889,000			6,086,903
Navient Student Loan Trust Series2014-CTA Class A (1 Month LIBOR +0.70%) 144A±		2.90			9-16-2024		1,362,298			1,363,120
Nelnet Student Loan Trust Series2004-4 Class A5 (3 Month LIBOR +0.16%)±		2.44			1-25-2037		3,900,750			3,807,773

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

12  |  Wells Fargo Short Duration Government Bond Fund

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Asset-Backed Securities (continued)
Nelnet Student Loan Trust Series2012-1A Class A (1 Month LIBOR +0.80%) 144A±		2.95	%		12-27-2039	$	2,406,507	$	2,399,593
Nelnet Student Loan Trust Series2016-1A Class A (1 Month LIBOR +0.80%) 144A±		2.95			9-25-2065		5,384,598		5,410,911
Nelnet Student Loan Trust Series2018-3A Class A2 (1 Month LIBOR +0.44%) 144A±		2.93			9-27-2066		3,773,000		3,766,078
SLC Student Loan Trust Series2010-1 Class A (3 Month LIBOR +0.88%)±		3.01			11-25-2042		1,230,041		1,239,556
SLM Student Loan Trust Series2004-10 Class A7A (3 Month LIBOR +0.60%) 144A±		2.88			10-25-2029		3,874,000		3,846,491
SLM Student Loan Trust Series2004-10 Class A7B (3 Month LIBOR +0.60%) 144A±		2.88			10-25-2029		6,174,000		6,136,786
SLM Student Loan Trust Series2005-6 Class A6 (3 Month LIBOR +0.14%)±		2.42			10-27-2031		2,859,192		2,821,960
SLM Student Loan Trust Series2010-A Class 1A (PRIME-0.05%) 144A±		5.20			5-16-2044		87,443		87,588
SLM Student Loan Trust Series2012-3 Class A (1 Month LIBOR +0.65%)±		2.80			12-27-2038		5,580,638		5,571,159
SMB Private Education Loan Trust Series2015-A Class A2A 144A		2.49			6-15-2027		2,432,306		2,440,341
SMB Private Education Loan Trust Series2015-C Class A2A 144A		2.75			7-15-2027		2,562,350		2,581,349
SMB Private Education Loan Trust Series2016-B Class A2B (1 Month LIBOR +1.45%) 144A±		3.65			2-17-2032		2,005,266		2,037,037
SoFi Professional Loan Program LLC Series2016-C Class A1 (1 Month LIBOR +1.10%) 144A±		3.25			10-27-2036		1,012,066		1,022,786
SoFi Professional Loan Program LLC Series2016-D Class A1 (1 Month LIBOR +0.95%) 144A±		3.10			1-25-2039		2,177,799		2,186,277
SoFi Professional Loan Program LLC Series2016-E Class A1 (1 Month LIBOR +0.85%) 144A±		3.00			7-25-2039		923,697		928,757
SoFi Professional Loan Program LLC Series2017-A Class A1 (1 Month LIBOR +0.70%) 144A±		2.85			3-26-2040		1,219,396		1,222,940
SoFi Professional Loan Program LLC Series2017-C Class A1 (1 Month LIBOR +0.60%) 144A±		2.75			7-25-2040		1,195,427		1,196,987
SoFi Professional Loan Program LLC Series2017-E Class A2B 144A		2.72			11-26-2040		1,183,000		1,204,988
Total Asset-Backed Securities (Cost $72,247,328)									72,616,951
Non-Agency Mortgage-Backed Securities: 6.11%
Angel Oak Mortgage Trust Series2019-2 Class A1 144A±±		3.63			3-25-2049		1,946,413		1,974,199
Bunker Hill Loan Depositary Trust Series2019-1 Class A1 144A		3.61			10-26-2048		1,952,984		1,973,063
Bunker Hill Loan Depositary Trust Series2019-2 Class A1 144A		2.88			7-25-2049		2,106,890		2,116,220
Colt Funding LLC Series2018-4 Class A1 144A±±		4.01			12-28-2048		1,332,675		1,351,957
Colt Funding LLC Series2019-1 Class A1 144A±±		3.71			3-25-2049		879,736		892,488
Commercial Mortgage Trust Series 2013-LC6 Class A3		2.67			1-10-2046		1,243,735		1,266,352
DBUBS Mortgage Trust Series 2011-LC2A Class A1 144A		3.53			7-10-2044		202,642		203,912
GCAT Series 2019-NQM1 Class A1 144A		2.99			2-25-2059		2,082,423		2,091,153
GS Mortgage Securities Trust Series2010-C1 Class A1 144A		3.68			8-10-2043		219,799		219,989
GS Mortgage Securities Trust Series2010-C2 Class A1 144A		3.85			12-10-2043		304,869		307,141
GS Mortgage Securities Trust Series 2012-GCJ7 Class AAB		2.94			5-10-2045		1,077,473		1,080,257
JPMorgan Chase Commercial Mortgage Securities Trust Series2010-C1 Class A2 144A		4.61			6-15-2043		403,717		404,779
Morgan Stanley Capital I Trust Series2011-C2 Class A3 144A		4.21			6-15-2044		92,932		93,338
New Residential Mortgage Loan Trust Series 2019-NQM2 Class A1 144A±±		3.60			4-25-2049		1,861,790		1,886,518
Spruce Hill Mortgage Loan Trust Series2019-SH1 Class A1 144A±±		3.40			4-29-2049		1,328,081		1,341,736
Verus Securitization Trust Series2018-2 Class A1 144A±±		3.68			6-1-2058		2,437,156		2,460,976
Verus Securitization Trust Series2019-1 Class A1 144A±±		3.84			2-25-2059		2,600,686		2,638,198
Verus Securitization Trust Series2019-2 Class A1 144A±±		2.91			7-25-2059		3,051,380		3,075,138
Verus Securitization Trust Series2019-2 Class A1 144A±±		3.21			4-25-2059		2,817,926		2,842,298

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

Wells Fargo Short Duration Government Bond Fund  |  13

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Non-Agency Mortgage-Backed Securities (continued)
Verus Securitization Trust Series2019-3 Class A1 144A		2.78	%		7-25-2059	$	3,091,762	$	3,097,783
Visio Trust Series2019-1 Class A1 144A±±		3.57			6-25-2054		3,146,047		3,223,023
TotalNon-Agency Mortgage-Backed Securities (Cost $34,296,502)									34,540,518
U.S. Treasury Securities: 34.09%
U.S. Treasury Note		1.50			8-15-2022		23,709,000		23,756,233
U.S. Treasury Note ##		1.75			7-31-2021		4,793,000		4,812,846
U.S. Treasury Note		1.75			7-15-2022		18,687,000		18,848,321
U.S. Treasury Note		1.88		��	8-31-2022		12,586,000		12,747,258
U.S. Treasury Note		2.00			10-31-2022		2,058,000		2,093,854
U.S. Treasury Note		2.13			5-31-2021		25,390,000		25,627,040
U.S. Treasury Note		2.13			8-15-2021		26,465,000		26,757,562
U.S. Treasury Note		2.13			5-15-2022		17,723,000		18,033,845
U.S. Treasury Note		2.25			3-31-2021		5,821,000		5,877,618
U.S. Treasury Note		2.25			4-15-2022		12,366,000		12,615,252
U.S. Treasury Note		2.50			1-31-2021		4,444,000		4,494,863
U.S. Treasury Note		2.75			4-30-2023		29,019,000		30,378,132
U.S. Treasury Note		2.75			7-31-2023		6,478,000		6,801,647
Total U.S. Treasury Securities (Cost $191,265,412)									192,844,471
	Yield					Shares
Short-Term Investments: 1.34%
Investment Companies: 1.34%
Wells Fargo Government Money Market Fund Select Class (l)(u)##		2.04					7,563,717		7,563,717
Total Short-Term Investments (Cost $7,563,717)									7,563,717

Total investments in securities (Cost $613,720,935)	109.34	%		618,487,262
Other assets and liabilities, net	(9.34	)		(52,824,197	)
Total net assets	100.00	%	$	565,663,065

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

%% The security is purchased 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.

## 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 the7-day annualized yield at period end.

Abbreviations:

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.

14  |  Wells Fargo Short Duration Government Bond Fund

Portfolio of investments—August 31, 2019

Futures Contracts

Description	Number of contracts			Expiration date		Notional cost			Notional value			Unrealized gains		Unrealized losses
Long
2-Year U.S. Treasury Notes		594			12-31-2019	$	128,379,088		$	128,373,610		$	0	$	(5,478	)
Short
10-Year Ultra Futures		(17	)		12-19-2019		(2,461,381	)		(2,455,438	)		5,943		0
5-Year U.S. Treasury Notes		(487	)		12-31-2019		(58,437,696	)		(58,428,586	)		9,110		0
												$	15,053	$	(5,478	)

Investments in Affiliates

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

	Shares, beginning of period		Shares purchased		Shares sold		Shares, end of period		Net realized gains (losses)		Net change in unrealized gains (losses)		Income from affiliated securities		Value, end of period		% of net assets
Short-Term Investments
Investment Companies
Wells Fargo Government Money Market Fund Select Class		11,514,693		698,667,411		702,618,387		7,563,717	$	0	$	0	$	291,701	$	7,563,717		1.34	%

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

Wells Fargo Short Duration Government Bond Fund  |  15

Statement of assets and liabilities—August 31, 2019

Assets
Investments in unaffiliated securities, at value (cost $606,157,218)	$	610,923,545
Investments in affiliated securities, at value (cost $7,563,717)		7,563,717
Cash segregated for future contracts		532,008
Receivable for investments sold		46,066,270
Principal paydown receivable		480,012
Receivable for Fund shares sold		1,499,132
Receivable for interest		2,078,258
Receivable for daily variation margin on open futures contracts		7,906
Prepaid expenses and other assets		109,379
Total assets		669,260,227
Liabilities
Payable for investments purchased		102,803,551
Payable for Fund shares redeemed		358,642
Management fee payable		142,916
Dividends payable		56,137
Administration fees payable		42,487
Distribution fee payable		6,902
Trustees’ fees and expenses payable		3,961
Accrued expenses and other liabilities		182,566
Total liabilities		103,597,162
Total net assets	$	565,663,065
Net assets consist of
Paid-in capital	$	638,852,285
Total distributable loss		(73,189,220	)
Total net assets	$	565,663,065
Computation of net asset value and offering price per share
Net assets – Class A	$	29,617,683
Shares outstanding – Class A1		3,043,029
Net asset value per share – Class A		$9.73
Maximum offering price per share – Class A2		$9.93
Net assets – Class C	$	10,031,503
Shares outstanding – Class C1		1,028,905
Net asset value per share – Class C		$9.75
Net assets – Class R6	$	41,987,080
Shares outstanding – Class R61		4,297,584
Net asset value per share – Class R6		$9.77
Net assets – Administrator Class	$	38,816,083
Shares outstanding – Administrator Class1		3,980,035
Net asset value per share – Administrator Class		$9.75
Net assets – Institutional Class	$	445,210,716
Shares outstanding – Institutional Class1		45,668,230
Net asset value per share – Institutional Class		$9.75

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, 2019

Investment income
Interest	$	17,394,295
Income from affiliated securities		291,701
Total investment income		17,685,996
Expenses
Management fee		2,057,053
Administration fees
Class A		48,098
Class C		20,547
Class R6		11,117
Administrator Class		56,731
Institutional Class		360,830
Shareholder servicing fees
Class A		75,153
Class C		32,104
Administrator Class		141,487
Distribution fee
Class C		96,314
Custody and accounting fees		67,151
Professional fees		53,847
Registration fees		79,778
Shareholder report expenses		69,808
Trustees’ fees and expenses		21,592
Other fees and expenses		19,944
Total expenses		3,211,554
Less: Fee waivers and/or expense reimbursements
Fund-level		(195,364	)
Class A		(73	)
Class R6		(11,117	)
Administrator Class		(67,745	)
Institutional Class		(135,416	)
Net expenses		2,801,839
Net investment income		14,884,157
Realized and unrealized gains (losses) on investments
Net realized gains (losses) on
Unaffiliated securities		1,611,260
Futures contracts		(1,561,137	)
Net realized gains on investments		50,123
Net change in unrealized gains (losses) on
Unaffiliated securities		8,951,288
Futures contracts		66,767
Net change in unrealized gains (losses) on investments		9,018,055
Net realized and unrealized gains (losses) on investments		9,068,178
Net increase in net assets resulting from operations	$	23,952,335

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

Wells Fargo Short Duration Government Bond Fund  |  17

Statement of changes in net assets

	Year ended August 31, 2019						Year ended August 31, 20181
Operations
Net investment income				$	14,884,157					$	12,199,482
Net realized gains (losses) on investments					50,123						(11,314,289	)
Net change in unrealized gains (losses) on investments					9,018,055						(3,340,788	)
Net increase (decrease) in net assets resulting from operations					23,952,335						(2,455,595	)
Distributions to shareholders from net investment income and net realized gains
Class A					(753,979	)					(735,153	)
Class C					(226,983	)					(217,568	)
Class R6					(1,078,024	)					(1,398,687	)
Administrator Class					(1,529,339	)					(1,726,039	)
Institutional Class					(12,903,892	)					(12,631,240	)
Total distributions to shareholders					(16,492,217	)					(16,708,687	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		617,334			5,934,764			376,228			3,627,108
Class C		106,035			1,018,014			22,308			218,154
Class R6		2,188,387			21,183,601			2,144,288			20,939,039
Administrator Class		238,230			2,291,607			395,318			3,847,681
Institutional Class		10,430,140			100,435,708			13,527,957			131,987,736
					130,863,694						160,619,718
Reinvestment of distributions
Class A		74,715			719,348			71,432			692,759
Class C		21,609			208,280			20,781			201,738
Class R6		93,340			902,462			126,725			1,239,028
Administrator Class		157,806			1,521,378			178,230			1,730,952
Institutional Class		1,279,269			12,338,544			1,256,662			12,199,437
					15,690,012						16,063,914
Payment for shares redeemed
Class A		(829,358	)		(7,984,256	)		(2,532,682	)		(24,674,032	)
Class C		(667,791	)		(6,437,263	)		(502,772	)		(4,888,594	)
Class R6		(1,664,571	)		(16,097,185	)		(15,996,524	)		(157,173,416	)
Administrator Class		(3,899,844	)		(37,590,853	)		(2,179,946	)		(21,230,405	)
Institutional Class		(17,338,426	)		(166,712,595	)		(22,222,211	)		(216,535,537	)
					(234,822,152	)					(424,501,984	)
Net decrease in net assets resulting from capital share transactions					(88,268,446	)					(247,818,352	)
Total decrease in net assets					(80,808,328	)					(266,982,634	)
Net assets
Beginning of period					646,471,393						913,454,027
End of period				$	565,663,065					$	646,471,393

¹  Effective for all filings after November 4, 2018, the SEC prospectively eliminated the requirement to parenthetically disclose undistributed net investment income at the end of the period and permitted the aggregation of distributions, with the exception of tax basis returns of capital. Undistributed net investment income at August 31, 2018 was $480,677. The disaggregated distributions information for the year ended August 31, 2018 is included in Note 8,Distributions to Shareholders, in the notes to the financial statements.

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	2019			2018			2017			2016			2015
Net asset value, beginning of period		$9.60			$9.85			$9.96			$10.02			$10.08
Net investment income		0.21			0.14			0.07			0.07			0.04
Net realized and unrealized gains (losses) on investments		0.16			(0.20	)		(0.03	)		0.02			0.02
Total from investment operations		0.37			(0.06	)		0.04			0.09			0.06
Distributions to shareholders from
Net investment income		(0.24	)		(0.19	)		(0.15	)		(0.15	)		(0.12	)
Net asset value, end of period		$9.73			$9.60			$9.85			$9.96			$10.02
Total return1		3.92	%		(0.56	)%		0.45	%		0.90	%		0.55	%
Ratios to average net assets (annualized)
Gross expenses		0.81	%		0.80	%		0.79	%		0.78	%		0.78	%
Net expenses		0.78	%		0.78	%		0.78	%		0.78	%		0.78	%
Net investment income		2.22	%		1.36	%		0.79	%		0.70	%		0.55	%
Supplemental data
Portfolio turnover rate		635	%		331	%		348	%		284	%		500	%
Net assets, end of period (000s omitted)		$29,618			$30,538			$51,890			$57,976			$62,504

¹  Total return calculations do not include any sales charges.

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

Wells Fargo Short Duration Government Bond Fund  |  19

Financial highlights

(For a share outstanding throughout each period)

	Year ended August 31
CLASS C	2019			2018			2017			2016			2015
Net asset value, beginning of period		$9.62			$9.87			$9.98			$10.03			$10.10
Net investment income (loss)		0.14	1		0.06	1		0.00	1,2		(0.01	)		(0.03	)
Net realized and unrealized gains (losses) on investments		0.16			(0.19	)		(0.03	)		0.03			0.00	2
Total from investment operations		0.30			(0.13	)		(0.03	)		0.02			(0.03	)
Distributions to shareholders from
Net investment income		(0.17	)		(0.12	)		(0.08	)		(0.07	)		(0.04	)
Net asset value, end of period		$9.75			$9.62			$9.87			$9.98			$10.03
Total return3		3.14	%		(1.30	)%		(0.30	)%		0.25	%		(0.30	)%
Ratios to average net assets (annualized)
Gross expenses		1.56	%		1.55	%		1.54	%		1.53	%		1.53	%
Net expenses		1.53	%		1.53	%		1.53	%		1.53	%		1.53	%
Net investment income (loss)		1.49	%		0.62	%		0.04	%		(0.05	)%		(0.20	)%
Supplemental data
Portfolio turnover rate		635	%		331	%		348	%		284	%		500	%
Net assets, end of period (000s omitted)		$10,032			$15,093			$20,026			$27,454			$31,910

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	2019			2018			2017			2016			2015
Net asset value, beginning of period		$9.64			$9.89			$9.99			$10.05			$10.11
Net investment income		0.25	1		0.16	1		0.12	1		0.12			0.09	1
Net realized and unrealized gains (losses) on investments		0.16			(0.17	)		(0.02	)		0.01			0.01
Total from investment operations		0.41			(0.01	)		0.10			0.13			0.10
Distributions to shareholders from
Net investment income		(0.28	)		(0.24	)		(0.20	)		(0.19	)		(0.16	)
Net asset value, end of period		$9.77			$9.64			$9.89			$9.99			$10.05
Total return		4.34	%		(0.14	)%		0.96	%		1.32	%		0.96	%
Ratios to average net assets (annualized)
Gross expenses		0.43	%		0.42	%		0.41	%		0.40	%		0.40	%
Net expenses		0.37	%		0.37	%		0.37	%		0.37	%		0.37	%
Net investment income		2.62	%		1.64	%		1.19	%		1.11	%		0.88	%
Supplemental data
Portfolio turnover rate		635	%		331	%		348	%		284	%		500	%
Net assets, end of period (000s omitted)		$41,987			$35,472			$172,106			$233,993			$231,878

¹  Calculated based upon average shares outstanding

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

Wells Fargo Short Duration Government Bond Fund  |  21

Financial highlights

(For a share outstanding throughout each period)

	Year ended August 31
ADMINISTRATOR CLASS	2019			2018			2017			2016			2015
Net asset value, beginning of period		$9.62			$9.87			$9.98			$10.03			$10.10
Net investment income		0.23	1		0.15	1		0.08			0.08			0.06
Net realized and unrealized gains (losses) on investments		0.16			(0.19	)		(0.02	)		0.04			0.00	2
Total from investment operations		0.39			(0.04	)		0.06			0.12			0.06
Distributions to shareholders from
Net investment income		(0.26	)		(0.21	)		(0.17	)		(0.17	)		(0.13	)
Net asset value, end of period		$9.75			$9.62			$9.87			$9.98			$10.03
Total return		4.10	%		(0.37	)%		0.63	%		1.18	%		0.63	%
Ratios to average net assets (annualized)
Gross expenses		0.75	%		0.74	%		0.73	%		0.72	%		0.72	%
Net expenses		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Net investment income		2.41	%		1.56	%		0.96	%		0.87	%		0.73	%
Supplemental data
Portfolio turnover rate		635	%		331	%		348	%		284	%		500	%
Net assets, end of period (000s omitted)		$38,816			$71,997			$89,743			$121,576			$156,669

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	2019			2018			2017			2016			2015
Net asset value, beginning of period		$9.62			$9.87			$9.98			$10.03			$10.10
Net investment income		0.25			0.17			0.11			0.11			0.09	1
Net realized and unrealized gains (losses) on investments		0.16			(0.19	)		(0.03	)		0.03			(0.01	)
Total from investment operations		0.41			(0.02	)		0.08			0.14			0.08
Distributions to shareholders from
Net investment income		(0.28	)		(0.23	)		(0.19	)		(0.19	)		(0.15	)
Net asset value, end of period		$9.75			$9.62			$9.87			$9.98			$10.03
Total return		4.29	%		(0.20	)%		0.81	%		1.37	%		0.81	%
Ratios to average net assets (annualized)
Gross expenses		0.48	%		0.47	%		0.46	%		0.45	%		0.45	%
Net expenses		0.42	%		0.42	%		0.42	%		0.42	%		0.42	%
Net investment income		2.57	%		1.75	%		1.15	%		1.06	%		0.92	%
Supplemental data
Portfolio turnover rate		635	%		331	%		348	%		284	%		500	%
Net assets, end of period (000s omitted)		$445,211			$493,372			$579,690			$664,047			$587,835

¹  Calculated based upon average shares outstanding

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

Wells Fargo Short Duration Government Bond Fund  |  23

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 Duration Government 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 (e.g. taking into account various factors, including yields, maturities, or credit ratings) 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.

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

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 a 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 is subject to interest rate risk. 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 the 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

24  |  Wells Fargo Short Duration Government Bond Fund

Notes to financial statements

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, 2019, the aggregate cost of all investments for federal income tax purposes was $613,780,655 and the unrealized gains (losses) consisted of:

Gross unrealized gains	$	5,414,202
Gross unrealized losses		(698,020	)
Net unrealized gains	$	4,716,182

As of August 31, 2019, the Fund had capital loss carryforwards which consist of $42,276,451 in short-term capital losses and $36,146,102 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 fund-level 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)

Wells Fargo Short Duration Government Bond Fund  |  25

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, 2019:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Agency securities	$	0	$	310,921,605	$	0	$	310,921,605
Asset-backed securities		0		72,616,951		0		72,616,951
Non-agency mortgage-backed securities		0		34,540,518		0		34,540,518
U.S. Treasury securities		192,844,471		0		0		192,844,471
Short-term investments
Investment companies		7,563,717		0		0		7,563,717
		200,408,188		418,079,074		0		618,487,262
Futures contracts		15,053		0		0		15,053
Total assets	$	200,423,241	$	418,079,074	$	0	$	618,502,315
Liabilities
Futures contracts	$	5,478	$	0	$	0	$	5,478
Total liabilities	$	5,478	$	0	$	0	$	5,478

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.

For the year ended August 31, 2019, the Fund did not have any transfers into/out of 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 a management fee at the following annual rate based on the Fund’s average daily net assets:

Average daily net assets	Management fee
First $1 billion		0.350	%
Next $4 billion		0.325
Next $3 billion		0.290
Next $2 billion		0.265
Over $10 billion		0.255

For the year ended August 31, 2019, 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

26  |  Wells Fargo Short Duration Government Bond Fund

Notes to financial statements

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

Waivers and/or expense reimbursements

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. When only certain classes exceed their expense caps, waivers and/or reimbursements are applied against class specific expenses before fund-level expenses. Funds Management has committed through December 31, 2019 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. Prior to or after the commitment expiration date, 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, 2019, Funds Distributor received $470 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, 2019.

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, 2019 were as follows:

Purchases at cost		Sales proceeds
U.S. government	Non-U.S. government	U.S. government	Non-U.S. government
$3,754,990,629	$93,267,625	$3,752,633,840	$36,190,340

Wells Fargo Short Duration Government Bond Fund  |  27

Notes to financial statements

6. DERIVATIVE TRANSACTIONS

During the year ended August 31, 2019, 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 $129,061,129 in long futures contracts and $67,236,156 in short futures contracts during the year ended August 31, 2019.

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

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, 2019, there were no borrowings by the Fund under the agreement.

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid was $16,492,217 and $16,708,687 of ordinary income for the years ended August 31, 2019 and August 31, 2018, respectively.

As of August 31, 2019, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Unrealized gains	Capital loss carryforward
$573,288	$4,716,182	$(78,422,553)

Effective for all filings after November 4, 2018, the Securities and Exchange Commission eliminated the requirement to separately state the components of distributions to shareholders under U.S. generally accepted accounting principles. The amounts of distributions to shareholders for the year ended August 31, 2018 were as follows:

	Net investment income
Class A	$	735,153
Class C		217,568
Class R6		1,398,687
Administrator Class		1,726,039
Institutional Class		12,631,240

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

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 has adopted the removal and modification of disclosures early, as permitted, and will adopt the additional new disclosures at the effective date.

28  |  Wells Fargo Short Duration Government Bond Fund

Notes to 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 and requires the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount and discounts will continue to be accreted to the maturity date of the security. ASU 2017-08 is effective for fiscal years beginning after December 15, 2018 and for interim periods within those fiscal years. During the current reporting period, management of the Fund adopted the change in accounting policy which did not have a material impact to the Fund’s financial statements.

Wells Fargo Short Duration Government Bond Fund  |  29

Report of independent registered public accounting firm

TO THE SHAREHOLDERS OF THE FUND AND BOARD OF TRUSTEES 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), one of the funds constituting Wells Fargo Funds Trust, including the portfolio of investments, as of August 31, 2019, 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, 2019, 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, 2019, by correspondence with the custodian, transfer agent 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 28, 2019

30  |  Wells Fargo Short Duration Government Bond Fund

Other information (unaudited)

TAX INFORMATION

For the fiscal year ended August 31, 2019, $16,436,080 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, 2019, 22.15% of the ordinary income distributed was derived from interest on U.S. government securities.

PROXY VOTING INFORMATION

A description of the policies and procedures used to determine how to vote proxies relating to portfolio securities is available, upon request, by calling1-800-222-8222, visiting our website atwfam.com, or visiting the SEC website at sec.gov. Information regarding how the proxies related to portfolio securities were voted during the most recent 12-month period ended June 30 is available on the website atwfam.comor by visiting the SEC website at sec.gov.

QUARTERLY PORTFOLIO HOLDINGS INFORMATION

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 or Form N-PORT, which is available by visiting the SEC website at sec.gov. Those forms may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling1-800-SEC-0330.

Wells Fargo Short Duration Government Bond Fund  |  31

Other information (unaudited)

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 152 mutual funds comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information². The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.

Independent Trustees

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
William R. Ebsworth (Born 1957)	Trustee, since 2015	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief investment officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong, and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he led a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Audit Committee Chair and Investment Committee Chair of the Vincent Memorial Hospital Endowment (non-profit organization). 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; Audit Committee Chairman, since 2019	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, from 2009 to 2018	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

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
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
Olivia S. Mitchell (Born 1953)	Trustee, since 2006; Nominating and 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	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	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

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

Wells Fargo Short Duration Government Bond Fund  |  33

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.
Michelle Rhee3 (Born 1966)	Chief Legal Officer, since 2019	Secretary of Wells Fargo Funds Management, LLC, Chief Legal Counsel of Wells Fargo Asset Management and Assistant General Counsel of Wells Fargo Bank, N.A. since 2018. Associate General Counsel and Managing Director of Bank of America Corporation from 2004 to 2018.
Catherine Kennedy4 (Born 1969)	Secretary, since 2019	Vice President of Wells Fargo Funds Management, LLC and Senior Counsel of the Wells Fargo Legal Department since 2010. Vice President and Senior Counsel of Evergreen Investment Management Company, LLC from 1998 to 2010.
Michael H. Whitaker (Born 1967)	Chief Compliance Officer, since 2016	Chief Compliance Officer of Wells Fargo Asset Management 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 65 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 87 funds and Assistant Treasurer of 65 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 atwfam.com.

³  Michelle Rhee became Chief Legal Officer effective October 22, 2019.

⁴  Catherine Kennedy became Secretary effective October 22, 2019.

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 21-22, 2019 (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 2019, 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 2019. 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 received and reviewed information about Funds Management’s role as administrator of the Fund’s liquidity risk management program. 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.

Wells Fargo Short Duration Government Bond Fund  |  35

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, 2018. 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 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 in range of or higher than its benchmark index, the Bloomberg Barclays U.S. 1-3 Year Government Bond Index, for the three-, five- and ten-year periods under review, but lower than its benchmark for the one-year period 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 in range of or 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 proprietary mutual funds compared with those associated with managing assets of other types of clients, including third-party sub-advised fund clients and 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”) from providing services to the fund family as a whole. The Board noted that the Sub-Adviser’s profitability information with respect to providing services to the Fund and other funds in the family was subsumed in the WFAM and Wells Fargo profitability analysis.

36  |  Wells Fargo Short Duration Government Bond Fund

Other information (unaudited)

Funds Management reported on the methodologies and estimates used in calculating profitability, including a description of the methodology used to allocate certain expenses. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size, type and age 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 received and considered information about the potential for Funds Management to experience economies of scale in the provision of management services to the Fund, the difficulties of calculating economies of scale at an individual fund level, and the extent to which potential scale benefits are shared with shareholders. 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. The Board considered that in addition to management fee breakpoints, Funds Management shares potential economies of scale from its management business in a variety of ways, including through fee waiver and expense reimbursement arrangements, services that benefit shareholders, competitive management fee rates set at the outset without regard to breakpoints, and investments in the business intended to enhance services available to shareholders.

The Board concluded that Funds Management’s arrangements with respect to the Fund, 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.

Wells Fargo Short Duration Government Bond Fund  |  37

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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:wfam.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, call1-800-222-8222 or visit the Fund’s website atwfam.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.

INVESTMENT PRODUCTS: NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

© 2019 Wells Fargo Funds Management, LLC. All rights reserved.

405806 10-19

A220/AR220 08-19

Annual Report

August 31, 2019

Wells Fargo

Government Securities Fund

Beginning on January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, paper copies of the Wells Fargo Funds’ annual and semi-annual shareholder reports issued after this date will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Funds’ website, and you will be notified by mail each time a report is posted and provided with a website address to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling1-800-222-8222 or by enrolling at wellsfargo.com/advantagedelivery.

You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports; if you invest directly with the Fund, you can call 1-800-222-8222. Your election to receive reports in paper will apply to all Wells Fargo Funds held in your account with your financial intermediary or, if you are a direct investor, to all Wells Fargo Funds that you hold.

Contents

Letter to shareholders	2
Performance highlights	6
Fund expenses	10
Portfolio of investments	11
Financial statements
Statement of assets and liabilities	21
Statement of operations	22
Statement of changes in net assets	23
Financial highlights	24
Notes to financial statements	28
Report of independent registered public accounting firm	34
Other information	35

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The views expressed and any forward-looking statements are as of August 31, 2019, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Asset Management. 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 Asset Management and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

INVESTMENT PRODUCTS: NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾  MAY LOSE VALUE

Wells Fargo Government Securities Fund  |  1

Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

Dear Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Government Securities Fund for the 12-month period that ended August 31, 2019. After the first half of the period yielded either low-single-digit or negative investment returns, U.S. stock and global bond investors generally saw markets recover during the second half amid intensifying market volatility, global economic growth concerns, international trade staredowns, and simmering geopolitical tensions.

Overall, fixed-income investors enjoyed a distinct advantage over stock investors. For the period, U.S. stocks, based on the S&P 500 Index,¹ gained 2.92% and international stocks, as measured by the MSCI ACWI ex USA Index (Net),² fell 3.27%. The MSCI EM Index (Net)³ slipped 4.36%. Among fixed income investors, the Bloomberg Barclays U.S. Aggregate Bond Index⁴ added 10.17%, the Bloomberg Barclays Global Aggregate ex-USD Index⁵ added 5.71%, the Bloomberg Barclays Municipal Bond Index⁶ gained 8.72%, and the ICE BofAML U.S. High Yield Index⁷ added 6.58%.

Entering the fourth quarter of 2018, economic data was encouraging.

Entering the fourth quarter of 2018, there were reasons for investors to be optimistic. The U.S. Bureau of Economic Analysis reported U.S. gross domestic product (GDP) grew 4.2% on an annualized basis during the second quarter. Hiring improved. Unemployment declined. Consumer spending gained. Third-quarter corporate earnings reports were generally positive. U.S. trade negotiations with Mexico and Canada advanced. In September 2018, the U.S. Federal Reserve (Fed) raised the federal funds rate by 25 basis points (bps; 100 bps equal 1.00%) to a target range of between 2.00% and 2.25% in an indication of its confidence that U.S. economic growth was sustainable.

International markets presented numerous challenges. U.S.-China trade tensions increased. The U.S. imposed $200 billion in tariffs on Chinese goods. China reacted with $60 billion in tariffs on U.S. goods. Economic growth in China caused concern. In September 2018, international investors began to factor in a number of disconcerting economic and business data points: lower July manufacturing and industrial orders in Germany; declining purchasing managers’ index numbers for August from the United Kingdom, China, and India; and declining household spending for August in Japan. Taken together, the data fed growing concerns that global economic growth was slowing.

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 and emerging markets, excluding the U.S. 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 the equity market performance of emerging markets. 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 2019. ICE Data Indices, LLC. All rights reserved.

2  |  Wells Fargo Government Securities Fund

Letter to shareholders (unaudited)

Investors had to digest unsettling events during the fourth quarter of 2018.

November’s U.S. midterm elections shifted control of the House of Representatives from Republicans to Democrats, presaging partisan clashes that followed and caused uncertainty among investors. A partial U.S. government shutdown driven by partisan policy disputes extended into January 2019. Third-quarter U.S. GDP was announced at an annualized 3.4% rate, lower than the second-quarter rate. Brexit efforts stalled. The value of the renminbi declined even as the People’s Bank of China cut reserve requirement ratios, accelerated infrastructure spending, and cut taxes in efforts to spur economic activity.

The combination of news in the U.S. and generally weak economic indicators outside of the U.S. caused investors to seek safe havens. December’s S&P 500 Index performance was the worst since 1931. Globally, fixed-income investments fared better than stocks during the last two months of the year. The Fed increased the federal funds rate by 25 bps in December 2018 to a target range of between 2.25% and 2.50% even as observers expressed concerns that higher rates could slow the economy.

The market climbs a wall of worry.

Investment returns appeared to reaffirm the adage that markets climb a wall of worry as 2019 opened. Following its December decline, the S&P 500 Index gained 8.01% for the month of January, the best monthly performance in 30 years. Returns for the MSCI ACWI ex USA Index (Net), the Bloomberg Barclays U.S. Aggregate Bond Index, and the Bloomberg Barclays Global Aggregate ex-USD Index also were positive.

In February 2019, signs of slowing global growth grew more ominous. The Bureau of Economic Analysis announced fourth-quarter 2018 GDP grew at an annualized 2.2% rate, down from the levels of the prior two quarters. In a February report, the Bank of England forecast the slowest growth for 2019 since the financial crisis. China and the U.S. continued to wrangle over trade issues. By the end of the first quarter of 2019, more accommodative Fed sentiment and steady, if not spectacular, U.S. economic and business metrics encouraged domestic investors.

Early second-quarter 2019 enthusiasm among investors faded.

During April 2019, favorable sentiment found additional support in reports of sustained low inflation, solid employment data, and first-quarter U.S. GDP of an annualized rate of 3.2%. During May, markets tumbled on mixed investment signals. In the U.S., partisan wrangling ramped up as Democrats and Republicans set their sights on 2020 presidential politics. The U.K.’s Brexit contretemps caused Prime Minister Theresa May to resign. Boris Johnson succeeded her only to exacerbate uncertainty about Brexit’s resolution ahead of an October 2019 deadline. The European Commission downgraded the 2019 growth forecast to 1.2%. The U.S. increased tariffs on products from China, China responded, and then talks broke down. President Donald Trump threatened to turn his foreign policy tariff tool to Mexico over immigration issues.

During the third quarter of 2019, investors regrouped. Just as the investment horizon appeared to darken, sentiment turned and U.S. equity markets gained during June and July. The gains, primarily driven by geopolitical and monetary policy events, pushed equity markets to new highs. European Central Bank President Mario Draghi said that if the outlook doesn’t improve, the bank would cut rates or buy more assets to prop up inflation. President Trump backed off of tariff threats against Mexico and China. In the U.S., the Fed implemented a 0.25% federal funds rate cut in July.

Later in July, the U.S. reversed course and threatened to impose higher tariffs on China’s exports after talks failed. China responded with tariff threats of its own and

“December’s S&P 500 Index performance was the worst since 1931.”

“Following its December decline, the S&P 500 Index gained 8.01% for the month of January, the best monthly performance in 30 years.”

Wells Fargo Government Securities Fund  |  3

Letter to shareholders (unaudited)

For further information about your Fund, contact your investment professional, visit our website at wfam.com,

or call us directly at1-800-222-8222.

devalued the renminbi, a move that roiled global markets. Major U.S. stock market indices closed July 2019 with the worst weekly results of the year. Bond prices gained as Treasury yields fell to levels not seen since November 2016 and the yield curve inverted at multiple points along the 30-year arc.

In a microcosm, August 2019 encapsulated many of the unnerving events that plagued investors during the prior 11 months. The U.S.-China trade relationship swung from discouraging to hopeful and back again with no evident compromise on the horizon. Evidence of a continued global economic slowdown continued to mount as central banks in China, New Zealand, and Thailand cut interest rates. Industrial and manufacturing data declined in China, Canada, Japan, and Germany. Adding to the uncertain environment, Italy’s prime minister resigned, many feared a crackdown in Hong Kong as protesters sustained their calls for reform throughout the month, and Boris Johnson planned to suspend Parliament as Brexit’s deadline neared.

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

4  |  Wells Fargo Government Securities Fund

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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, 2019

		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		3.76		1.51		2.41		8.65		2.45		2.89		0.90		0.85
Class C (WGSCX)	12-26-2002		6.84		1.69		2.12		7.84		1.69		2.12		1.65		1.60
Administrator Class (WGSDX)	4-8-2005		–		–		–		8.88		2.67		3.10		0.84		0.64
Institutional Class (SGVIX)	8-31-1999		–		–		–		9.05		2.85		3.27		0.57		0.48
Bloomberg Barclays U.S. Aggregate ex Credit Index3	–		–		–		–		9.02		2.90		3.30		–		–
Bloomberg Barclays Intermediate U.S. Government Bond Index4	–		–		–		–		7.45		2.20		2.44		–		–

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

6  |  Wells Fargo Government Securities Fund

Performance highlights (unaudited)

Growth of $10,000 investment as of August 31, 2019⁵

^‡ CFA^® and Chartered Financial Analyst^® are trademarks owned by CFA Institute.

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, 2019, to waive fees and/or reimburse expenses to the extent necessary to cap the expenses of each class after fee waivers at the amounts shown. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses (if any), and extraordinary expenses are excluded from the expense cap. Prior to or after the commitment expiration date, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Without this cap, the Fund’s returns would have been lower. The expense ratio paid by an investor is the net expense ratio (the total annual fund operating expenses after fee waivers) as stated in the prospectus.

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 to10-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 Personal Consumption Expenditures Index is the primary measure of consumer spending on goods and services in the U.S. economy. It accounts for abouttwo-thirds of domestic final spending and is part of the personal income report issued by the Bureau of Economic Analysis of the Department of Commerce. 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.

Wells Fargo Government Securities Fund  |  7

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 the12-month period that ended August 31, 2019.

∎ An overweight allocation to higher-coupon mortgages detracted due to heightened prepayment concern resulting from the rally in Treasury rates.

∎ An underweight to mortgage-backed securities (MBS) contributed to results as the sector underperformed Treasuries and other spread sectors.

∎ The Fund’s short duration positioning for most of the period detracted from results as interest rates rallied significantly. The Fund’s yield-curve positioning, however, contributed to performance as the yield curve flattened.

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

Ten largest holdings(%) as of August 31, 20196
FNMA, 3.00%,12-1-2045	3.81
FNMA, 3.00%,6-1-2034	2.55
U.S. Treasury Bond, 4.25%,11-15-2040	2.45
FNMA, 4.00%,4-1-2046	2.38
Resolution Funding Corporation STRIPS,0.00%, 7-15-2020	2.35
FNMA, 3.50%,4-1-2034	2.30
GNMA, 3.50%,12-20-2047	2.26
U.S. Treasury Bond, 3.75%,11-15-2043	2.10
FNMA, 4.50%,9-12-2049	1.92
TVA, 4.63%,9-15-2060	1.90

An economic slowdown

The pace of gross domestic product growth decelerated over the past 12 months as business investment, inventory effects, and trade restrained overall economic activity. For the four quarters that ended June 30, 2019, the U.S. economy expanded by 2.3% in inflation-adjusted terms, compared with a 3.2% trailing12-month growth rate at the midway point in 2018. Rising anxiety over the contentious U.S.-China trade relationship appeared to discourage capital investment over the12-month period that ended August 31, 2019. Housing investment also was a modest drag despite low mortgage rates. Consumer spending held up fairly well, however, with the Personal Consumption Expenditures Index⁷ rising at a 2.7% year-over-year rate though the end of July.

Consumption was supported by a relatively firm labor market. While job growth slowed modestly over the period, wages grew by 3.2% in real terms and the unemployment rate remained below 4%. Measures of labor force participation also generally showed improvement.

In response to slower growth and lower-than-targeted inflation, the Federal Open Market Committee (FOMC) voted to reduce its policy rate target for overnight funds by 0.25% at its July 31 meeting. This was the first interest rate reduction engineered by the FOMC in the decade since the financial crisis. While the monetary authorities suggested that their decision should be seen as a “midcourse correction” rather than the beginning of an extended easing cycle, markets have priced multiple additional rate cuts into the term structure. Indeed, interest rates fell across the board over the past 12 months, with the intermediate-term Treasury yields dropping by about 1.35%.

Please see footnotes on page 7.

8  |  Wells Fargo Government Securities Fund

Performance highlights (unaudited)

Portfolio composition as of August 31, 2019⁸

The Fund reduced its overweight allocation to securitized sectors.

During the period, we reduced the Fund’s allocation toto-be-announced (TBA) MBS, which offer a forward-settlement feature, and short duration CMO and agency commercial mortgage-backed cash surrogates in favor of specified pools. This caused the Fund’s overall securitized allocation to decline. This change was primarily the result of deteriorating carry or book value on TBA mortgages brought on by the introduction in June 2019 of uniform MBS. Within the MBS sector, the Fund was underweight versus the benchmark, which contributed to 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 slightly to performance. However, the Fund’s overweight to higher-coupon30-year and15-year mortgages detracted because the duration of those pools contracted as rates fell.

During the period, the Fund maintained an overweight to agency CMBS,non-agency CMBS, and ABS, all of which 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. The Fund also increased its allocation tonon-agency CMOs—in particular, those collateralized by nonqualifying mortgages, which are not eligible for sale to Fannie Mae and Freddie Mac. We believe certain securities within this sector look attractive due to their better prepayment characteristics and the additional spread offered versus agency CMOs.

The trade war is a persistent cloud.

We expect the U.S.-China trade dispute to drag on for some months to come, depressing business investment. Slower growth, in turn, is likely to incline the monetary authorities to ease policy further, with at least one and probably more rate cuts to be implemented over the next 6 to 12 months. A quick resolution to the dispute—as unlikely as that seems at this time—could probably boost business confidence and perhaps reduce the pressure for accommodative monetary policy. In this environment, we anticipate taking a cautious approach to both duration and sector allocation decisions, with a bias towardup-in-quality trades. As always, relative-value considerations will dominate our security selection process.

Please see footnotes on page 7.

Wells Fargo Government Securities Fund  |  9

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 thesix-month period and held for the entire period from March 1, 2019 to August 31, 2019.

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 3-1-2019		Ending account value 8-31-2019		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,067.57	$	4.43		0.85	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.92	$	4.33		0.85	%
Class C
Actual	$	1,000.00	$	1,063.57	$	8.32		1.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.14	$	8.13		1.60	%
Administrator Class
Actual	$	1,000.00	$	1,067.84	$	3.34		0.64	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.98	$	3.26		0.64	%
Institutional Class
Actual	$	1,000.00	$	1,068.61	$	2.50		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 theone-half-year period).

10  |  Wells Fargo Government Securities Fund

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Agency Securities: 76.36%
FDIC Series2010-R1 Class A 144A		2.18	%		5-25-2050	$	38,666	$	38,617
FDIC Series2013-R1 Class A 144A		1.15			3-25-2033		856,251		851,125
FHLB		3.25			11-16-2028		4,240,000		4,811,177
FHLB		5.63			3-14-2036		6,020,000		9,025,665
FHLMC		5.00			6-1-2026		1,335,140		1,384,436
FHLMC		2.38			4-25-2023		551,300		553,355
FHLMC		2.46			3-25-2022		1,310,921		1,319,753
FHLMC		2.62			12-25-2026		3,962,246		4,071,735
FHLMC		2.75			3-25-2027		5,697,793		5,880,708
FHLMC		2.90			4-25-2026		6,339,036		6,630,940
FHLMC		3.00			5-15-2026		609,718		621,172
FHLMC		3.00			1-15-2054		135,253		137,163
FHLMC (1 Month LIBOR +1.18%)±		3.38			12-15-2036		335,832		347,460
FHLMC		3.50			8-1-2045		5,083,095		5,307,711
FHLMC		3.50			11-1-2045		9,244,774		9,659,128
FHLMC		3.50			12-1-2045		1,947,770		2,033,832
FHLMC		3.50			12-1-2045		6,515,019		6,806,996
FHLMC (11th District Cost of Funds +1.25%)±		3.55			7-1-2032		348,377		350,427
FHLMC (3 Year Treasury Constant Maturity +2.24%)±		3.63			5-1-2026		28,179		28,507
FHLMC		4.00			12-15-2024		1,684,356		1,747,130
FHLMC		4.00			6-1-2044		4,472,649		4,730,802
FHLMC		4.00			9-1-2049		1,475,000		1,534,700
FHLMC		4.50			3-1-2042		382,021		413,970
FHLMC		4.50			9-1-2044		3,320,333		3,569,541
FHLMC		4.50			9-1-2049		4,100,000		4,324,602
FHLMC (12 Month LIBOR +1.75%)±		4.63			7-1-2038		1,467,163		1,544,540
FHLMC (12 Month LIBOR +1.91%)±		4.66			9-1-2031		3,166		3,208
FHLMC (12 Month LIBOR +1.91%)±		4.66			9-1-2031		42,555		42,835
FHLMC (1 Year Treasury Constant Maturity +2.25%)±		4.67			6-1-2032		19,943		20,643
FHLMC (1 Year Treasury Constant Maturity +2.14%)±		4.69			10-1-2026		122,023		126,125
FHLMC (1 Year Treasury Constant Maturity +2.40%)±		4.90			7-1-2029		67,882		69,873
FHLMC		5.00			10-1-2019		3,634		3,748
FHLMC		5.00			2-1-2020		39,264		40,502
FHLMC		5.00			8-1-2040		1,026,577		1,131,483
FHLMC (12 Month LIBOR +2.05%)±		5.05			1-1-2038		574,413		610,044
FHLMC		5.50			7-1-2035		2,909,125		3,231,937
FHLMC		5.50			12-1-2038		1,859,484		2,092,768
FHLMC		6.00			10-1-2032		25,125		28,809
FHLMC		6.00			5-25-2043		4,065,752		4,677,305
FHLMC (1 Year Treasury Constant Maturity +2.13%)±		6.38			1-1-2026		49,674		48,600
FHLMC		6.50			4-1-2021		938		942
FHLMC		6.50			4-1-2022		23,737		26,307
FHLMC		6.50			9-1-2028		13,836		15,565
FHLMC		6.50			9-1-2028		17,649		19,561
FHLMC		6.50			7-1-2031		2		2
FHLMC		7.00			12-1-2023		1,874		2,012
FHLMC		7.00			12-1-2026		362		389
FHLMC		7.00			4-1-2029		1,175		1,339
FHLMC		7.00			5-1-2029		7,381		8,523
FHLMC		7.00			4-1-2032		80,014		93,124
FHLMC		7.50			11-1-2031		180,738		210,935

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

Wells Fargo Government Securities Fund  |  11

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FHLMC		7.50	%		4-1-2032	$	151,244	$	174,677
FHLMC		8.00			8-1-2023		5,719		6,005
FHLMC		8.00			6-1-2024		3,144		3,374
FHLMC		8.00			6-1-2024		2,375		2,398
FHLMC		8.00			6-1-2024		4,454		4,568
FHLMC		8.00			8-1-2026		12,832		14,671
FHLMC		8.00			11-1-2026		11,856		13,480
FHLMC		8.00			11-1-2028		7,362		7,957
FHLMC		8.50			7-1-2022		721		728
FHLMC		8.50			12-1-2025		7,897		8,607
FHLMC		8.50			5-1-2026		1,033		1,093
FHLMC		8.50			8-1-2026		4,475		4,518
FHLMC		8.50			8-1-2026		15,350		15,384
FHLMC		9.00			2-1-2020		10		10
FHLMC		9.00			3-1-2020		70		70
FHLMC		9.00			9-1-2020		2		2
FHLMC		9.00			9-1-2020		105		105
FHLMC		9.00			3-1-2021		62		63
FHLMC		9.00			4-1-2021		51		51
FHLMC		9.00			4-1-2021		52		53
FHLMC		9.00			7-1-2021		713		716
FHLMC		9.00			8-1-2021		56		58
FHLMC		9.00			7-1-2022		34		35
FHLMC		9.00			9-1-2024		150		151
FHLMC		9.50			6-1-2020		5		5
FHLMC		9.50			8-1-2020		18		18
FHLMC		9.50			9-1-2020		4		4
FHLMC		9.50			9-1-2020		93		93
FHLMC		9.50			9-1-2020		4		4
FHLMC		9.50			10-1-2020		5		5
FHLMC		9.50			10-1-2020		4		4
FHLMC		9.50			11-1-2020		10		10
FHLMC		9.50			5-1-2021		52		54
FHLMC		9.50			9-17-2022		17,929		17,959
FHLMC		9.50			4-1-2025		12,115		12,240
FHLMC		10.00			12-1-2019		7		7
FHLMC		10.00			6-1-2020		2		2
FHLMC		10.00			8-1-2020		4		4
FHLMC		10.00			10-1-2021		765		769
FHLMC		10.00			8-17-2022		517		522
FHLMC		10.00			2-17-2025		34,346		34,347
FHLMC		10.50			12-1-2019		692		691
FHLMC Series 2015-SC01 Class 1A		3.50			5-25-2045		2,086,267		2,128,556
FHLMC Series 2882 Class TF (1 Month LIBOR +0.25%)±		2.45			10-15-2034		98,140		98,177
FHLMC Series 3948 Class DA		3.00			12-15-2024		30,884		30,880
FHLMC Series 4218 Class DF (1 Month LIBOR +0.25%)±		2.45			7-15-2042		642,259		639,964
FHLMC Series K020 Class X1±±(c)		1.53			5-25-2022		43,388,745		1,384,925
FHLMC Series K032 Class A2±±		3.31			5-25-2023		2,800,000		2,940,974
FHLMC Series K039 Class A2		3.30			7-25-2024		325,000		346,216
FHLMC Series K075 Class A2±±		3.65			2-25-2028		4,370,000		4,900,064
FHLMC Series K153 Class A3±±		3.12			10-25-2031		160,000		172,460

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

12  |  Wells Fargo Government Securities Fund

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FHLMC Series KF15 Class A (1 Month LIBOR +0.67%)±		2.89	%		2-25-2023	$	273,261	$	273,091
FHLMC Series KJ14 Class A1		2.20			11-25-2023		2,980,192		3,024,711
FHLMC Series M036 Class A		4.16			12-15-2029		3,550,000		3,858,673
FHLMC SeriesT-15 Class A6 (1 Month LIBOR +0.40%)±		2.55			11-25-2028		180,173		180,864
FHLMC SeriesT-23 Class A (1 Month LIBOR +0.14%)±		2.29			5-25-2030		565,128		564,422
FHLMC SeriesT-35 Class A (1 Month LIBOR +0.14%)±		2.55			9-25-2031		688,249		681,460
FHLMC SeriesT-42 Class A6		9.50			2-25-2042		735,677		909,435
FHLMC SeriesT-55 Class 2A1±±		4.00			3-25-2043		369,402		371,937
FHLMC SeriesT-57 Class 1A1		6.50			7-25-2043		949,496		1,139,147
FHLMC SeriesT-57 Class 2A1±±		4.16			7-25-2043		1,821,947		1,980,778
FHLMC SeriesT-62 Class 1A1 (12 Month Treasury Average +1.20%)±		3.68			10-25-2044		994,104		1,004,564
FHLMC SeriesT-67 Class 1A1C±±		3.90			3-25-2036		665,786		679,578
FHLMC SeriesT-67 Class 2A1C±±		3.74			3-25-2036		1,297,787		1,314,887
FHLMC SeriesT-75 Class A1 (1 Month LIBOR +0.04%)±		2.31			12-25-2036		245,627		245,912
FNMA ¤		0.00			5-15-2030		7,700,000		6,242,775
FNMA		1.71			12-1-2022		2,737,871		2,731,177
FNMA (11th District Cost of Funds +1.25%)±		2.45			5-1-2036		1,110,375		1,106,152
FNMA (12 Month LIBOR +1.61%)±		2.49			5-1-2046		4,867,385		4,931,338
FNMA (1 Month LIBOR +0.35%)±		2.50			2-25-2032		494,137		494,571
FNMA		2.50			4-25-2039		24,930		24,826
FNMA		2.55			3-1-2022		1,592,578		1,622,803
FNMA (1 Month LIBOR +0.25%)±		2.60			6-27-2036		88,133		86,538
FNMA (11th District Cost of Funds +1.56%)±		2.68			5-1-2023		36,064		35,957
FNMA (11th District Cost of Funds +1.25%)±		2.79			9-1-2027		158,855		159,821
FNMA		2.86			11-1-2021		2,518,783		2,583,001
FNMA±±		2.89			2-25-2027		10,000,000		10,545,106
FNMA		3.00			5-1-2027		1,211,416		1,246,844
FNMA		3.00			6-1-2034		14,911,423		15,295,165
FNMA		3.00			4-1-2045		118,755		122,369
FNMA		3.00			11-1-2045		9,643,480		9,936,531
FNMA		3.00			12-1-2045		22,157,494		22,831,531
FNMA		3.00			12-1-2046		743,722		764,075
FNMA		3.02			2-1-2026		6,145,353		6,511,221
FNMA		3.05			1-1-2024		25,134		26,006
FNMA		3.31			9-25-2020		2,551,118		2,571,493
FNMA (11th District Cost of Funds +1.25%)±		3.37			5-1-2036		375,329		389,825
FNMA		3.38			9-1-2020		1,839,486		1,851,192
FNMA		3.48			3-1-2029		924,588		1,026,971
FNMA		3.50			4-1-2034		13,316,949		13,803,955
FNMA		3.50			2-1-2043		53,572		56,035
FNMA		3.50			2-1-2045		1,847,747		1,931,394
FNMA		3.50			4-1-2045		5,136,994		5,365,198
FNMA		3.50			8-1-2045		651,931		680,368
FNMA		3.50			12-1-2045		2,443,329		2,549,967
FNMA		3.50			2-1-2046		2,375,145		2,478,569
FNMA		3.50			8-1-2049		9,148,456		9,421,843
FNMA		3.63			3-1-2029		390,000		436,030
FNMA		3.77			3-1-2029		994,826		1,122,144
FNMA		3.86			3-1-2029		843,870		959,132
FNMA (c)		4.00			10-25-2025		112,609		1,788
FNMA		4.00			4-1-2046		13,547,438		14,277,049

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

Wells Fargo Government Securities Fund  |  13

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA		4.00	%		3-1-2047	$	1,516,070	$	1,620,332
FNMA		4.50			1-1-2026		83,977		86,358
FNMA		4.50			10-1-2046		385,184		409,104
FNMA		4.50			9-1-2049		5,052,371		5,334,148
FNMA %%		4.50			9-12-2049		10,940,000		11,515,092
FNMA (12 Month LIBOR +1.78%)±		4.50			8-1-2036		534,351		563,424
FNMA (12 Month LIBOR +1.54%)±		4.51			1-1-2043		211,595		217,833
FNMA (1 Year Treasury Constant Maturity +2.21%)±		4.58			9-1-2031		28,722		30,199
FNMA (1 Year Treasury Constant Maturity +2.26%)±		4.59			9-1-2031		109,567		113,425
FNMA (12 Month LIBOR +1.73%)±		4.61			9-1-2036		359,573		374,315
FNMA (12 Month LIBOR +1.63%)±		4.63			4-1-2032		66,318		66,891
FNMA (1 Year Treasury Constant Maturity +2.19%)±		4.64			11-1-2031		118,656		124,389
FNMA (1 Year Treasury Constant Maturity +2.30%)±		4.67			6-1-2034		281,380		291,762
FNMA (1 Year Treasury Constant Maturity +2.23%)±		4.70			12-1-2040		24,323		25,577
FNMA (1 Year Treasury Constant Maturity +2.22%)±		4.72			6-1-2032		110,771		115,196
FNMA (1 Year Treasury Constant Maturity +2.20%)±		4.76			2-1-2027		1,445		1,445
FNMA (1 Year Treasury Constant Maturity +2.22%)±		4.86			12-1-2034		419,391		436,104
FNMA (1 Year Treasury Constant Maturity +2.42%)±		4.87			10-1-2027		110,785		114,615
FNMA		5.00			4-1-2023		148,400		153,868
FNMA		5.00			6-1-2023		278,799		287,649
FNMA		5.00			3-1-2034		431,001		479,701
FNMA		5.00			8-1-2040		5,234,006		5,751,013
FNMA		5.00			10-1-2040		653,060		719,169
FNMA		5.00			1-1-2042		496,330		545,658
FNMA		5.00			11-1-2048		2,001,119		2,143,579
FNMA		5.00			12-1-2048		1,809,510		1,937,485
FNMA (1 Year Treasury Constant Maturity +2.32%)±		5.13			7-1-2026		110,411		114,277
FNMA		5.50			6-1-2020		58,058		58,292
FNMA		5.50			11-1-2023		51,042		53,500
FNMA		5.50			1-1-2025		112,660		116,560
FNMA		5.50			1-1-2025		23,105		23,941
FNMA		5.50			9-1-2033		1,753,770		1,983,204
FNMA		5.50			9-1-2033		652,256		737,157
FNMA		5.50			8-1-2035		500,285		565,558
FNMA		5.50			1-1-2037		508,672		575,347
FNMA		5.50			4-1-2040		1,328,210		1,502,299
FNMA		5.61			2-1-2021		719,682		731,241
FNMA		5.75			5-1-2021		3,067,984		3,182,238
FNMA		5.95			6-1-2024		1,558,136		1,656,554
FNMA		6.00			3-1-2024		51,332		56,492
FNMA		6.00			1-1-2028		773,734		851,505
FNMA		6.00			2-1-2035		1,089,146		1,205,346
FNMA		6.00			11-1-2037		409,487		467,271
FNMA		6.00			7-1-2038		146,339		167,906
FNMA (6 Month LIBOR +2.86%)±		6.23			4-1-2033		11,434		11,845
FNMA (6 Month LIBOR +3.13%)±		6.24			7-1-2033		137,139		140,302
FNMA		6.50			1-1-2024		14,050		15,565
FNMA		6.50			3-1-2028		12,827		13,703
FNMA		6.50			12-1-2029		179,669		203,647
FNMA		6.50			11-1-2031		39,820		44,596
FNMA		6.50			7-1-2036		318,443		380,640

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

14  |  Wells Fargo Government Securities Fund

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA		6.50	%		7-1-2036	$	291,477	$	337,660
FNMA		6.50			7-25-2042		1,312,151		1,535,653
FNMA		7.00			11-1-2026		4,612		4,939
FNMA		7.00			9-1-2031		3,374		3,375
FNMA		7.00			1-1-2032		2,002		2,243
FNMA		7.00			2-1-2032		75,418		89,678
FNMA		7.00			10-1-2032		168,066		201,199
FNMA		7.00			2-1-2034		1,865		2,129
FNMA		7.00			4-1-2034		116,738		137,348
FNMA		7.00			1-1-2036		6,191		6,608
FNMA		7.50			9-1-2031		77,081		91,106
FNMA		7.50			11-25-2031		312,471		370,558
FNMA		7.50			2-1-2032		26,742		31,104
FNMA		7.50			10-1-2037		738,285		886,937
FNMA		8.00			5-1-2027		25,701		25,870
FNMA		8.00			6-1-2028		4,047		4,412
FNMA		8.00			2-1-2030		30,160		30,455
FNMA		8.00			7-1-2031		829,465		948,349
FNMA		8.50			8-1-2024		4,616		4,624
FNMA		8.50			5-1-2026		79,346		86,372
FNMA		8.50			7-1-2026		19,545		20,078
FNMA		8.50			10-1-2026		51		51
FNMA		8.50			10-1-2026		2,729		2,733
FNMA		8.50			11-1-2026		25,188		25,477
FNMA		8.50			11-1-2026		6,254		6,424
FNMA		8.50			12-1-2026		106,009		118,189
FNMA		8.50			12-1-2026		13,694		15,080
FNMA		8.50			12-1-2026		237		237
FNMA		8.50			2-1-2027		159		175
FNMA		8.50			2-1-2027		5,645		5,654
FNMA		8.50			3-1-2027		705		748
FNMA		8.50			6-1-2027		56,731		58,583
FNMA		9.00			3-1-2021		2,973		2,990
FNMA		9.00			6-1-2021		38		39
FNMA		9.00			8-1-2021		39		40
FNMA		9.00			10-1-2021		499		502
FNMA		9.00			1-1-2025		13,635		14,785
FNMA		9.00			3-1-2025		1,673		1,676
FNMA		9.00			3-1-2025		803		804
FNMA		9.00			7-1-2028		3,745		3,773
FNMA		9.50			11-1-2020		15		15
FNMA		9.50			12-15-2020		1,471		1,479
FNMA		9.50			6-1-2022		302		304
FNMA		9.50			7-1-2028		5,032		5,044
FNMA		11.00			10-15-2020		45		46
FNMA Series1989-100 Class Z		8.75			12-25-2019		138		138
FNMA Series1989-63 Class Z		9.40			10-25-2019		36		36
FNMA Series1990-144 Class W		9.50			12-25-2020		7,283		7,534
FNMA Series1990-75 Class Z		9.50			7-25-2020		1,993		2,015
FNMA Series1990-84 Class Y		9.00			7-25-2020		1,183		1,204
FNMA Series1990-96 Class Z		9.67			8-25-2020		14,655		14,949

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

Wells Fargo Government Securities Fund  |  15

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Agency Securities(continued)
FNMA Series1991-5 Class Z		8.75	%		1-25-2021	$	316	$	316
FNMA Series1991-85 Class Z		8.00			6-25-2021		10,405		10,767
FNMA Series1992-45 Class Z		8.00			4-25-2022		31,116		32,749
FNMA Series2000-T6 Class A2		9.50			11-25-2040		625,123		716,068
FNMA Series2001-T10 Class A3		9.50			12-25-2041		717,621		850,807
FNMA Series2001-T12 Class A3		9.50			8-25-2041		200,637		243,475
FNMA Series2002-T12 Class A5±±		4.88			10-25-2041		787,083		817,755
FNMA Series2002-T19 Class A1		6.50			7-25-2042		3,539,647		4,177,499
FNMA Series2002-T5 Class A1 (1 Month LIBOR +0.24%)±		2.39			5-25-2032		145,153		143,552
FNMA Series2002-W4 Class A4		6.25			5-25-2042		519,871		595,879
FNMA Series2003-T2 Class A1 (1 Month LIBOR +0.14%)±		2.68			3-25-2033		952,236		934,010
FNMA Series2003-W09 Class A (1 Month LIBOR +0.12%)±		2.51			6-25-2033		83,766		82,317
FNMA Series2003-W1 Class 1A1±±		5.32			12-25-2042		684,476		753,673
FNMA Series2003-W11 Class A1±±		5.44			6-25-2033		40,288		42,097
FNMA Series2003-W3 Class 1A4±±		4.23			8-25-2042		2,160,473		2,274,962
FNMA Series2003-W5 Class A (1 Month LIBOR +0.11%)±		2.49			4-25-2033		279,403		273,381
FNMA Series2003-W6 Class 6A±±		4.45			8-25-2042		1,185,879		1,219,488
FNMA Series2003-W6 Class PT4±±		8.57			10-25-2042		1,205,916		1,518,779
FNMA Series2003-W8 Class PT1±±		9.20			12-25-2042		454,787		527,666
FNMA Series2004-T1 Class 1A2		6.50			1-25-2044		375,763		433,480
FNMA Series2004-W01 Class 2A2		7.00			12-25-2033		994,755		1,150,556
FNMA Series2004-W15 Class 1A3		7.00			8-25-2044		672,925		794,129
FNMA Series2005-71 Class DB		4.50			8-25-2025		445,837		456,302
FNMA Series2007-W10 Class 2A±±		6.31			8-25-2047		323,892		364,181
FNMA Series2011-15 Class HI (c)		5.50			3-25-2026		147,578		4,130
FNMA Series2013-17 Class PC		2.00			3-25-2039		1,268,526		1,270,506
FNMA Series2014-20 Class TM±±		4.84			4-25-2044		1,206,798		1,373,156
FNMA Series2018-M13 Class A2±±		3.82			9-25-2030		460,000		523,498
FNMA Series 265 Class 2		9.00			3-25-2024		48,703		54,570
FNMA SeriesG-8 Class E		9.00			4-25-2021		10,109		10,325
FNMA SeriesG92-30 Class Z		7.00			6-25-2022		16,128		16,613
FNMA SeriesG93-39 Class ZQ		6.50			12-25-2023		769,497		818,328
GNMA±±(c)		1.66			4-20-2069		11,074,767		458,663
GNMA		3.00			11-20-2045		10,090,833		10,452,396
GNMA %%		3.00			9-19-2049		6,870,000		7,083,077
GNMA		3.50			12-20-2047		13,013,050		13,571,676
GNMA %%		3.50			9-19-2049		8,105,000		8,420,335
GNMA (1 Year Treasury Constant Maturity +1.50%)±		4.00			8-20-2020		13,887		13,903
GNMA		4.00			11-15-2024		1,169,290		1,215,284
GNMA		4.00			12-20-2047		9,465,484		9,917,816
GNMA (1 Year Treasury Constant Maturity +1.50%)±		4.13			11-20-2020		11,118		11,160
GNMA		4.25			6-20-2036		434,801		459,974
GNMA		4.50			10-20-2048		148,597		155,204
GNMA		4.50			8-20-2049		2,565,000		2,702,698
GNMA		5.00			7-20-2040		1,098,607		1,211,513
GNMA		5.50			4-20-2034		601,841		647,792
GNMA		6.00			8-20-2034		85,334		91,700
GNMA		6.50			12-15-2025		6,667		7,336
GNMA		6.50			5-15-2029		602		662
GNMA		6.50			5-15-2031		1,213		1,334
GNMA		6.50			9-20-2033		43,722		51,204

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

16  |  Wells Fargo Government Securities Fund

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Agency Securities(continued)
GNMA		7.00	%		12-15-2022	$	7,994	$	8,268
GNMA		7.00			5-15-2026		1,659		1,763
GNMA		7.00			3-15-2028		20,913		21,166
GNMA		7.00			4-15-2031		879		894
GNMA		7.00			8-15-2031		18,453		19,127
GNMA		7.00			3-15-2032		13,847		14,095
GNMA		7.34			10-20-2021		16,622		16,727
GNMA		7.34			9-20-2022		5,682		5,689
GNMA		8.00			6-15-2023		2,495		2,631
GNMA		8.00			12-15-2023		130,537		140,142
GNMA		8.00			2-15-2024		507		541
GNMA		8.00			9-15-2024		2,564		2,596
GNMA		8.00			6-15-2025		50		50
GNMA		8.35			4-15-2020		1,281		1,281
GNMA		8.40			5-15-2020		1,866		1,866
GNMA		9.50			10-20-2019		15		15
GNMA Series2002-53 Class IO±±(c)		0.60			4-16-2042		402,814		6
GNMA Series2005-23 Class IO±±(c)		0.02			6-17-2045		1,732,400		949
GNMA Series2006-32 Class XM±±(c)		0.03			11-16-2045		5,848,431		5,547
GNMA Series2006-68 Class D±±		5.31			12-16-2037		218,373		218,288
GNMA Series2007-69 Class D±±		5.25			6-16-2041		447,924		464,423
GNMA Series2008-22 Class XM±±(c)		1.00			2-16-2050		13,558,229		322,972
GNMA Series2010-158 Class EI (c)		4.00			12-16-2025		7,919,898		613,065
GNMA Series2012-12 Class HD		2.00			5-20-2062		332,945		331,973
Resolution Funding Corporation STRIPS ¤		0.00			7-15-2020		14,300,000		14,079,457
Resolution Funding Corporation STRIPS ¤		0.00			4-15-2030		6,100,000		4,951,158
Resolution Funding Corporation STRIPS ¤		0.00			5-15-2039		8,275,000		5,643,928
TVA ¤		0.00			11-1-2025		10,000,000		8,906,925
TVA		4.25			9-15-2065		2,600,000		3,727,742
TVA		2.88			2-1-2027		2,430,000		2,613,906
TVA		4.63			9-15-2060		7,550,000		11,371,456
TVA		5.88			4-1-2036		4,380,000		6,465,583
Total Agency Securities (Cost $437,767,738)									457,991,426
Asset-Backed Securities: 0.98%
MMAF Equipment Finance LLC Series2017-AA Class A4 144A		2.41			8-16-2024		4,445,000		4,478,325
Tesla Auto Lease Trust Series2018-B Class A 144A		3.71			8-20-2021		1,372,404		1,396,800
Total Asset-Backed Securities (Cost $5,817,416)									5,875,125
Corporate Bonds and Notes: 0.73%
Financials: 0.73%
Mortgage REITs: 0.73%
American Tower Trust I 144A		3.65			3-15-2048		4,000,000		4,356,856
Total Corporate Bonds and Notes (Cost $4,000,000)									4,356,856
Municipal Obligations: 1.59%
New Jersey: 0.59%
GO Revenue: 0.59%
Newark NJ		3.75			11-1-2019		3,515,000		3,521,960

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

Wells Fargo Government Securities Fund  |  17

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Texas: 1.00%
Miscellaneous Revenue: 1.00%
San Antonio TX Retama Development Corporation		10.00	%		12-15-2020	$	5,405,000	$	6,008,198
Total Municipal Obligations (Cost $9,236,244)									9,530,158
Non-Agency Mortgage-Backed Securities: 5.52%
Benchmark Mortgage Trust Series2018-B1 Class A4		3.40			1-15-2051		305,000		331,677
CD Commercial Mortgage Trust Series2017-6 Class A5		3.46			11-13-2050		2,340,000		2,545,153
GS Mortgage Securities Trust Series2013-G1 Class A2 144A±±		3.56			4-10-2031		5,349,842		5,490,754
GS Mortgage Securities Trust Series 2019- PJ1 Class A6 144A±±		4.00			8-25-2049		1,368,506		1,382,386
JPMorgan Chase Commercial Mortgage Securities CorporationSeries 2015-C28 Class A4		3.23			10-15-2048		5,000,000		5,295,356
Mello Warehouse Securitization Series2019-1 Class A (1 Month LIBOR +0.80%) 144A±		2.95			6-25-2052		3,000,000		2,997,344
Morgan Stanley Capital I Trust Series2011-C2 Class A4 144A		4.66			6-15-2044		4,900,000		5,068,171
Starwood Mortgage Residential Trust Series2019-1 Class A1 144A±±		2.94			6-25-2049		2,546,734		2,552,514
UBS Commercial Mortgage Trust Series2017-C5 Class A5		3.47			11-15-2050		2,581,000		2,813,896
Vendee Mortgage Trust Series1995-1 Class 4±±		8.29			2-15-2025		128,630		142,787
Vendee Mortgage Trust Series1995-2C Class 3A		8.79			6-15-2025		169,841		192,772
Vendee Mortgage Trust Series2011-1 Class DA		3.75			2-15-2035		1,006,769		1,019,895
Verus Securitization Trust Series2019-2 Class A1 144A±±		3.21			4-25-2059		3,244,323		3,272,383
TotalNon-Agency Mortgage-Backed Securities (Cost $32,412,980)									33,105,088
U.S. Treasury Securities: 9.54%
TIPS		1.38			2-15-2044		3,017,057		3,740,243
U.S. Treasury Bond ##		1.63			8-15-2029		1,080,000		1,092,277
U.S. Treasury Bond ##		2.50			5-15-2046		3,600,000		4,002,047
U.S. Treasury Bond ##		2.88			5-15-2049		265,000		319,315
U.S. Treasury Bond ##		3.38			5-15-2044		5,425,000		6,955,655
U.S. Treasury Bond ##		3.63			2-15-2044		7,065,000		9,400,038
U.S. Treasury Bond ##		3.75			8-15-2041		3,310,000		4,424,022
U.S. Treasury Bond ##		3.75			11-15-2043		9,295,000		12,580,565
U.S. Treasury Bond ##		4.25			11-15-2040		10,330,000		14,688,372
Total U.S. Treasury Securities (Cost $48,513,011)									57,202,534
Yankee Corporate Bonds and Notes: 0.42%
Financials: 0.42%
Banks: 0.42%
Inter-American Development Bank		7.00			6-15-2025		2,000,000		2,553,763
Total Yankee Corporate Bonds and Notes (Cost $2,379,584)									2,553,763
Yankee Government Bonds: 5.48%
Hashemite Kingdom of Jordan		3.00			6-30-2025		10,636,000		11,367,997
State of Israel		5.50			12-4-2023		9,030,000		10,466,033
Ukraine		1.47			9-29-2021		11,090,000		11,070,838
Total Yankee Government Bonds (Cost $32,662,552)									32,904,868

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

18  |  Wells Fargo Government Securities Fund

Portfolio of investments—August 31, 2019

	Yield					Shares		Value
Short-Term Investments: 3.95%
Investment Companies: 3.58%
Wells Fargo Government Money Market Fund Select Class (l)(u)##		2.04	%				21,461,781	$	21,461,781
				Maturity date		Principal
U.S. Treasury Securities: 0.37%
U.S. Treasury Bill (z)#		1.66			9-12-2019	$	2,225,000		2,223,964
Total Short-Term Investments (Cost $23,685,554)									23,685,745

Total investments in securities (Cost $596,475,079)	104.57	%		627,205,563
Other assets and liabilities, net	(4.57	)		(27,414,414	)
Total net assets	100.00	%	$	599,791,149

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 purchased 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 the7-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

GO General obligation

LIBOR London Interbank Offered Rate

STRIPS Separate trading of registered interest and principal securities

TIPS Treasury inflation-protected securities

TVA Tennessee Valley Authority

Futures Contracts

Description	Number of contracts			Expiration date		Notional cost			Notional value			Unrealized gains		Unrealized losses
Long
2-Year U.S. Treasury Notes		257			12-31-2019	$	55,484,301		$	55,542,117		$	57,816	$	0
5-Year U.S. Treasury Notes		477			12-31-2019		57,037,372			57,228,821			191,449		0
10-Year U.S. Treasury Notes		139			12-19-2019		18,231,658			18,308,906			77,248		0
Short
U.S. Long Term Bonds		(138	)		12-19-2019		(22,996,946	)		(22,804,500	)		192,446		0
U.S. Ultra Bond		(25	)		12-19-2019		(4,997,387	)		(4,935,938	)		61,449		0
10-Year Ultra Futures		(49	)		12-19-2019		(7,109,506	)		(7,077,438	)		32,068		0
												$	612,476	$	0

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

Wells Fargo Government Securities Fund  |  19

Portfolio of investments—August 31, 2019

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		18,303,812		237,145,103		233,987,134		21,461,781	$	0	$	0	$	473,864	$	21,461,781		3.58	%

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

20  |  Wells Fargo Government Securities Fund

Statement of assets and liabilities—August 31, 2019

Assets
Investments in unaffiliated securities, at value (cost $575,013,298)	$	605,743,782
Investments in affiliated securities, at value (cost $21,461,781)		21,461,781
Receivable for interest		2,604,652
Receivable for investments sold		2,539,981
Receivable for Fund shares sold		548,415
Principal paydown receivable		238,889
Receivable for daily variation margin on open futures contracts		78,543
Prepaid expenses and other assets		48,009
Total assets		633,264,052
Liabilities
Payable for investments purchased		28,148,112
Payable for Fund shares redeemed		3,236,803
Due to custodian bank		1,375,401
Distributions payable		185,836
Management fee payable		181,503
Administration fees payable		65,469
Distribution fee payable		7,387
Trustees’ fees and expenses payable		4,105
Accrued expenses and other liabilities		268,287
Total liabilities		33,472,903
Total net assets	$	599,791,149
Net assets consist of
Paid-in capital	$	602,622,329
Total distributable loss		(2,831,180	)
Total net assets	$	599,791,149
Computation of net asset value and offering price per share
Net assets – Class A	$	271,986,111
Shares outstanding – Class A1		24,047,862
Net asset value per share – Class A		$11.31
Maximum offering price per share – Class A2		$11.84
Net assets – Class C	$	11,025,632
Shares outstanding – Class C1		974,988
Net asset value per share – Class C		$11.31
Net assets – Administrator Class	$	106,354,983
Shares outstanding – Administrator Class1		9,407,329
Net asset value per share – Administrator Class		$11.31
Net assets – Institutional Class	$	210,424,423
Shares outstanding – Institutional Class1		18,611,890
Net asset value per share – Institutional Class		$11.31

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.

Wells Fargo Government Securities Fund  |  21

Statement of operations—year ended August 31, 2019

Investment income
Interest	$	19,052,950
Income from affiliated securities		473,864
Total investment income		19,526,814
Expenses
Management fee		2,851,553
Administration fees
Class A		440,859
Class C		20,128
Administrator Class		89,711
Institutional Class		211,036
Shareholder servicing fees
Class A		688,842
Class C		31,450
Administrator Class		223,491
Distribution fee
Class C		94,349
Custody and accounting fees		76,043
Professional fees		80,775
Registration fees		64,821
Shareholder report expenses		114,685
Trustees’ fees and expenses		21,592
Other fees and expenses		17,221
Total expenses		5,026,556
Less: Fee waivers and/or expense reimbursements
Fund-level		(402,618	)
Class A		(1,598	)
Administrator Class		(134,456	)
Institutional Class		(104,524	)
Net expenses		4,383,360
Net investment income		15,143,454
Realized and unrealized gains (losses) on investments
Net realized gains (losses) on
Unaffiliated securities		1,322,922
Futures contracts		(3,247,993	)
Net realized losses on investments		(1,925,071	)
Net change in unrealized gains (losses) on
Unaffiliated securities		38,437,441
Futures contracts		689,468
Net change in unrealized gains (losses) on investments		39,126,909
Net realized and unrealized gains (losses) on investments		37,201,838
Net increase in net assets resulting from operations	$	52,345,292

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

22  |  Wells Fargo Government Securities Fund

Statement of changes in net assets

	Year ended August 31, 2019						Year ended August 31, 2018¹
Operations
Net investment income				$	15,143,454					$	16,455,144
Net realized losses on investments					(1,925,071	)					(5,443,980	)
Net change in unrealized gains (losses) on investments					39,126,909						(23,108,606	)
Net increase (decrease) in net assets resulting from operations					52,345,292						(12,097,442	)
Distributions to shareholders from net investment income and net realized gains
Class A					(6,313,196	)					(6,375,215	)
Class C					(195,136	)					(199,378	)
Administrator Class					(2,239,507	)					(4,147,365	)
Institutional Class					(7,084,150	)					(5,781,887	)
Total distributions to shareholders					(15,831,989	)					(16,503,845	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		2,998,141			32,247,697			3,569,871			38,348,367
Class C		130,403			1,399,972			63,470			684,459
Administrator Class		3,748,099			40,844,711			6,511,960			70,326,132
Institutional Class		10,629,768			114,197,617			19,558,475			209,166,296
					188,689,997						318,525,254
Reinvestment of distributions
Class A		514,113			5,557,375			525,663			5,649,695
Class C		6,968			75,010			7,721			82,914
Administrator Class		202,767			2,194,061			380,074			4,081,678
Institutional Class		527,779			5,677,579			438,702			4,717,547
					13,504,025						14,531,834
Payment for shares redeemed
Class A		(6,931,745	)		(74,634,484	)		(12,470,498	)		(133,691,683	)
Class C		(618,596	)		(6,623,742	)		(443,637	)		(4,768,963	)
Administrator Class		(3,152,863	)		(33,929,729	)		(16,318,494	)		(174,401,645	)
Institutional Class		(21,756,178	)		(234,422,675	)		(28,678,375	)		(311,030,462	)
					(349,610,630	)					(623,892,753	)
Net decrease in net assets resulting from capital share transactions					(147,416,608	)					(290,835,665	)
Total decrease in net assets					(110,903,305	)					(319,436,952	)
Net assets
Beginning of period					710,694,454						1,030,131,406
End of period				$	599,791,149					$	710,694,454

¹  Effective for all filings after November 4, 2018, the SEC prospectively eliminated the requirement to parenthetically disclose undistributed net investment income at the end of the period and permitted the aggregation of distributions, with the exception of tax basis returns of capital. Overdistributed net investment income at August 31, 2018 was $12,956,930. The disaggregated distributions information for the year ended August 31, 2018 is included in Note 8,Distributions to Shareholders,in the notes to the financial statements.

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

Wells Fargo Government Securities Fund  |  23

Financial highlights

(For a share outstanding throughout each period)

	Year ended August 31
CLASS A	2019			2018			2017			2016			2015
Net asset value, beginning of period		$10.65			$11.01			$11.51			$11.22			$11.11
Net investment income		0.23			0.19			0.15			0.11	1		0.07	1
Net realized and unrealized gains (losses) on investments		0.68			(0.35	)		(0.22	)		0.34			0.13
Total from investment operations		0.91			(0.16	)		(0.07	)		0.45			0.20
Distributions to shareholders from
Net investment income		(0.25	)		(0.20	)		(0.16	)		(0.10	)		(0.09	)
Net realized gains		0.00			0.00			(0.27	)		(0.06	)		0.00
Total distributions to shareholders		(0.25	)		(0.20	)		(0.43	)		(0.16	)		(0.09	)
Net asset value, end of period		$11.31			$10.65			$11.01			$11.51			$11.22
Total return2		8.65	%		(1.44	)%		(0.52	)%		4.03	%		1.84	%
Ratios to average net assets (annualized)
Gross expenses		0.91	%		0.90	%		0.88	%		0.87	%		0.87	%
Net expenses		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%
Net investment income		2.20	%		1.86	%		1.38	%		0.94	%		0.59	%
Supplemental data
Portfolio turnover rate		178	%		197	%		299	%		397	%		349	%
Net assets, end of period (000s omitted)		$271,986			$292,550			$394,645			$483,112			$232,545

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.

24  |  Wells Fargo Government Securities Fund

Financial highlights

(For a share outstanding throughout each period)

	Year ended August 31
CLASS C	2019			2018			2017			2016			2015
Net asset value, beginning of period		$10.65			$11.01			$11.51			$11.21			$11.11
Net investment income (loss)		0.15	1		0.12	1		0.07	1		0.02	1		(0.01	)1
Net realized and unrealized gains (losses) on investments		0.68			(0.36	)		(0.23	)		0.36			0.12
Total from investment operations		0.83			(0.24	)		(0.16	)		0.38			0.11
Distributions to shareholders from
Net investment income		(0.17	)		(0.12	)		(0.07	)		(0.02	)		(0.01	)
Net realized gains		0.00			0.00			(0.27	)		(0.06	)		0.00
Total distributions to shareholders		(0.17	)		(0.12	)		(0.34	)		(0.08	)		(0.01	)
Net asset value, end of period		$11.31			$10.65			$11.01			$11.51			$11.21
Total return2		7.84	%		(2.18	)%		(1.26	)%		3.25	%		1.08	%
Ratios to average net assets (annualized)
Gross expenses		1.66	%		1.65	%		1.61	%		1.62	%		1.62	%
Net expenses		1.60	%		1.60	%		1.60	%		1.60	%		1.60	%
Net investment income (loss)		1.44	%		1.12	%		0.63	%		0.16	%		(0.13	)%
Supplemental data
Portfolio turnover rate		178	%		197	%		299	%		397	%		349	%
Net assets, end of period (000s omitted)		$11,026			$15,508			$20,132			$27,085			$26,981

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.

Wells Fargo Government Securities Fund  |  25

Financial highlights

(For a share outstanding throughout each period)

	Year ended August 31
ADMINISTRATOR CLASS	2019			2018			2017			2016			2015
Net asset value, beginning of period		$10.65			$11.01			$11.51			$11.21			$11.11
Net investment income		0.26	1		0.22	1		0.18	1		0.13			0.10
Net realized and unrealized gains (losses) on investments		0.67			(0.35	)		(0.23	)		0.36			0.12
Total from investment operations		0.93			(0.13	)		(0.05	)		0.49			0.22
Distributions to shareholders from
Net investment income		(0.27	)		(0.23	)		(0.18	)		(0.13	)		(0.12	)
Net realized gains		0.00			0.00			(0.27	)		(0.06	)		0.00
Total distributions to shareholders		(0.27	)		(0.23	)		(0.45	)		(0.19	)		(0.12	)
Net asset value, end of period		$11.31			$10.65			$11.01			$11.51			$11.21
Total return		8.88	%		(1.23	)%		(0.31	)%		4.34	%		1.97	%
Ratios to average net assets (annualized)
Gross expenses		0.85	%		0.84	%		0.82	%		0.81	%		0.80	%
Net expenses		0.64	%		0.64	%		0.64	%		0.64	%		0.64	%
Net investment income		2.42	%		2.07	%		1.60	%		1.13	%		0.82	%
Supplemental data
Portfolio turnover rate		178	%		197	%		299	%		397	%		349	%
Net assets, end of period (000s omitted)		$106,355			$91,671			$198,520			$229,169			$216,428

¹  Calculated based upon average shares outstanding

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
INSTITUTIONAL CLASS	2019			2018			2017			2016			2015
Net asset value, beginning of period		$10.65			$11.00			$11.50			$11.21			$11.10
Net investment income		0.27	1		0.24	1		0.19	1		0.15			0.11	1
Net realized and unrealized gains (losses) on investments		0.68			(0.35	)		(0.22	)		0.35			0.14
Total from investment operations		0.95			(0.11	)		(0.03	)		0.50			0.25
Distributions to shareholders from
Net investment income		(0.29	)		(0.24	)		(0.20	)		(0.15	)		(0.14	)
Net realized gains		0.00			0.00			(0.27	)		(0.06	)		0.00
Total distributions to shareholders		(0.29	)		(0.24	)		(0.47	)		(0.21	)		(0.14	)
Net asset value, end of period		$11.31			$10.65			$11.00			$11.50			$11.21
Total return		9.05	%		(0.99	)%		(0.15	)%		4.42	%		2.22	%
Ratios to average net assets (annualized)
Gross expenses		0.58	%		0.57	%		0.55	%		0.54	%		0.54	%
Net expenses		0.48	%		0.48	%		0.48	%		0.48	%		0.48	%
Net investment income		2.56	%		2.22	%		1.75	%		1.28	%		0.99	%
Supplemental data
Portfolio turnover rate		178	%		197	%		299	%		397	%		349	%
Net assets, end of period (000s omitted)		$210,424			$310,966			$416,834			$487,113			$468,859

¹  Calculated based upon average shares outstanding

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

Wells Fargo Government Securities Fund  |  27

Notes to financial statements

1. ORGANIZATION

Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is anopen-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.

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 (e.g. taking into account various factors, including yields, maturities, or credit ratings) 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 registeredopen-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.

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 purchasewhen-issued securities. Securities purchased on a when-issued basis aremarked-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

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 a 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 the 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.

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Notes to financial statements

Security transactions and income recognition

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

Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily. To the extent debt obligations are placed onnon-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 fromnon-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 theex-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, 2019, the aggregate cost of all investments for federal income tax purposes was $610,841,707 and the unrealized gains (losses) consisted of:

Gross unrealized gains	$	18,312,098
Gross unrealized losses		(1,335,766	)
Net unrealized gains	$	16,976,332

As of August 31, 2019, the Fund had capital loss carryforwards which consist of $14,573,374 in short-term capital losses and $5,297,260 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 fund-level 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.

Wells Fargo Government Securities Fund  |  29

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, 2019:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Agency securities	$	0	$	457,991,426	$	0	$	457,991,426
Asset-backed securities		0		5,875,125		0		5,875,125
Corporate bonds and notes		0		4,356,856		0		4,356,856
Municipal obligations		0		9,530,158		0		9,530,158
Non-agency mortgage-backed securities		0		33,105,088		0		33,105,088
U.S. Treasury securities		57,202,534		0		0		57,202,534
Yankee corporate bonds and notes		0		2,553,763		0		2,553,763
Yankee government bonds		0		32,904,868		0		32,904,868
Short-term investments
Investment companies		21,461,781		0		0		21,461,781
U.S. Treasury securities		2,223,964		0		0		2,223,964
		80,888,279		546,317,284		0		627,205,563
Futures contracts		612,476		0		0		612,476
Total assets	$	81,500,755	$	546,317,284	$	0	$	627,818,039

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.

For year ended August 31, 2019, the Fund did not have any transfers into/out of 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 a management fee at the following annual rate based on the Fund’s average daily net assets:

Average daily net assets	Management fee
First $500 million		0.450	%
Next $500 million		0.425
Next $2 billion		0.400
Next $2 billion		0.375
Next $5 billion		0.340
Over $10 billion		0.320

For the year ended August 31, 2019, the management fee was equivalent to an annual rate of 0.44% of the Fund’s average daily net assets.

30  |  Wells Fargo Government Securities Fund

Notes to financial statements

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. Wells Capital Management Incorporated (“WellsCap”), 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

Waivers and/or expense reimbursements

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. When only certain classes exceed their expense caps, waivers and/or reimbursements are applied against class specific expenses before fund-level expenses. Funds Management has committed through December 31, 2019 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. Prior to or after the commitment expiration date, 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 Rule12b-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 thefront-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, 2019, Funds Distributor received $3,269 from the sale of Class A shares and $181 in contingent deferred sales charges from redemptions of Class C shares, respectively. No contingent deferred sales charges were incurred by Class A for the year ended August 31, 2019.

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 Rule17a-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, 2019 were as follows:

Purchases at cost		Sales proceeds
U.S. government	Non-U.S. government	U.S. government	Non-U.S. government
$1,206,754,091	$37,666,256	$1,284,540,702	$103,025,530

Wells Fargo Government Securities Fund  |  31

Notes to financial statements

6. DERIVATIVE TRANSACTIONS

During the year ended August 31, 2019, the Fund entered into futures contracts to manage duration and yield curve exposures. The Fund had an average notional amount of $43,547,365 in long futures contracts and $45,593,937 in short futures contracts during the year ended August 31, 2019.

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

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, 2019, there were no borrowings by the Fund under the agreement.

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid was $15,831,989 and $16,503,845 of ordinary income for the years ended August 31, 2019 and August 31, 2018, respectively.

As of August 31, 2019, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Unrealized gains	Capital loss carryforward
$271,874	$16,976,332	$(19,870,634)

Effective for all filings after November 4, 2018, the Securities and Exchange Commission eliminated the requirement to separately state the components of distributions to shareholders under U.S. generally accepted accounting principles. The amounts of distributions to shareholders for the year ended August 31, 2018 were as follows:

	Net investment income
Class A		$6,375,215
Class C		199,378
Administrator Class		4,147,365
Institutional Class		5,781,887

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

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.ASU2018-13 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 has adopted the removal and modification of disclosures early, as permitted, and will adopt the additional new disclosures at the effective date.

32  |  Wells Fargo Government Securities Fund

Notes to financial statements

In March 2017, FASB issued ASUNo. 2017-08,Premium Amortization on Purchased Callable Debt Securities. ASU2017-08 shortens the amortization period for certain callable debt securities held at a premium and requires the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount and discounts will continue to be accreted to the maturity date of the security. ASU2017-08 is effective for fiscal years beginning after December 15, 2018 and for interim periods within those fiscal years. During the current reporting period, management of the Fund adopted the change in accounting policy which did not have a material impact to the Fund’s financial statements.

Wells Fargo Government Securities Fund  |  33

Report of independent registered public accounting firm

TO THE SHAREHOLDERS OF THE FUND AND BOARD OF TRUSTEES 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), one of the funds constituting Wells Fargo Funds Trust, including the portfolio of investments, as of August 31, 2019, 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, 2019, 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, 2019, by correspondence with the custodian, transfer agent 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 28, 2019

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Other information (unaudited)

TAX INFORMATION

For the fiscal year ended August 31, 2019, $15,022,046 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, 2019, 9.95% of the ordinary income distributed was derived from interest on U.S. government securities.

PROXY VOTING INFORMATION

A description of the policies and procedures used to determine how to vote proxies relating to portfolio securities is available, upon request, by calling1-800-222-8222, visiting our website atwfam.com, or visiting the SEC website at sec.gov. Information regarding how the proxies related to portfolio securities were voted during the most recent12-month period ended June 30 is available on the website atwfam.comor by visiting the SEC website at sec.gov.

QUARTERLY PORTFOLIO HOLDINGS INFORMATION

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 or FormN-PORT, which is available by visiting the SEC website at sec.gov. Those forms may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling1-800-SEC-0330.

Wells Fargo Government Securities Fund  |  35

Other information (unaudited)

BOARD OF TRUSTEES AND OFFICERS    

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 152 mutual funds comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and fourclosed-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. Audit Committee Chair and Investment Committee Chair of the Vincent Memorial Hospital Endowment(non-profit organization). 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; Audit Committee Chairman, since 2019	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, from 2009 to 2018	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

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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
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
Olivia S. Mitchell (Born 1953)	Trustee, since 2006; Nominating and 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	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, anon-profit organization, since 2007. Member of the Board of Trustees of NorthStar Education Finance, Inc., anon-profit organization, since 2007.	N/A
James G. Polisson (Born 1959)	Trustee, since 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, anon-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

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

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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.
Michelle Rhee3 (Born 1966)	Chief Legal Officer, since 2019	Secretary of Wells Fargo Funds Management, LLC, Chief Legal Counsel of Wells Fargo Asset Management and Assistant General Counsel of Wells Fargo Bank, N.A. since 2018. Associate General Counsel and Managing Director of Bank of America Corporation from 2004 to 2018.
Catherine Kennedy4 (Born 1969)	Secretary, since 2019	Vice President of Wells Fargo Funds Management, LLC and Senior Counsel of the Wells Fargo Legal Department since 2010. Vice President and Senior Counsel of Evergreen Investment Management Company, LLC from 1998 to 2010.
Michael H. Whitaker (Born 1967)	Chief Compliance Officer, since 2016	Chief Compliance Officer of Wells Fargo Asset Management 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 65 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 87 funds and Assistant Treasurer of 65 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 calling1-800-222-8222 or by visiting the website atwfam.com.    

³  Michelle Rhee became Chief Legal Officer effective October 22, 2019.

⁴  Catherine Kennedy became Secretary effective October 22, 2019.

38  |  Wells Fargo Government Securities Fund

Other information (unaudited)

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT ANDSUB-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 andsub-advisory agreements. In this regard, at anin-person meeting held on May21-22, 2019 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management andsub-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 investmentsub-advisory agreement (the“Sub-Advisory Agreement”) with Wells Capital Management Incorporated (the“Sub-Adviser”), an affiliate of Funds Management. The Management Agreement and theSub-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 theSub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at anin-person meeting in April 2019, 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 asub-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 theSub-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 2019. 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 theSub-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 wasall-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 aone-year term and determined that the compensation payable to Funds Management and theSub-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 afund-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 theSub-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 theSub-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 theSub-Adviser, and a description of Funds Management’s and theSub-Adviser’s business continuity planning programs and of their approaches to data privacy and cybersecurity. The Board received and reviewed information about Funds Management’s role as administrator of the Fund’s liquidity risk management program. The Board also considered the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for theday-to-day portfolio management of the Fund.    

The Board evaluated the ability of Funds Management and theSub-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 theSub-Adviser. In addition, the Board took into account the full range of services provided to the Fund by Funds Management and its affiliates.

Wells Fargo Government Securities Fund  |  39

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, 2018. 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 three- andten-year periods under review, but lower than its benchmark for theone- and five-year periods under review.

The Board received information concerning, and discussed factors contributing to, the underperformance of the Fund relative to the benchmark for the periods identified above. The Board took note of the explanations for the relative underperformance during these periods, including with respect to market factors that affected the Fund’s investment performance. The Board also took note of the Fund’s outperformance relative to the Universe over all the 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 othernon-management fees, and Rule12b-1 andnon-Rule12b-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 fromyear-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 tore-approve the Advisory Agreements.

Investment management andsub-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 andsub-transfer agency costs (collectively, the “Management Rates”). The Board also reviewed and considered the contractual investmentsub-advisory fee rates that are payable by Funds Management to theSub-Adviser for investmentsub-advisory services.

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

The Board also received and considered information about the portion of the total management fee that was retained by Funds Management after payment of the fee to theSub-Adviser forsub-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 theSub-Adviser, and about Funds Management’son-going oversight services. Given the affiliation between Funds Management and theSub-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 theSub-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 proprietary mutual funds compared with those associated with managing assets of other types of clients, including third-partysub-advised fund clients andnon-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 theSub-Adviser under theSub-Advisory Agreement was reasonable.

40  |  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”) from providing services to the fund family as a whole. The Board noted that theSub-Adviser’s profitability information with respect to providing services to the Fund and other funds in the family 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. Among other things, the Board noted that the levels of profitability reported on afund-by-fund basis varied widely, depending on factors such as the size, type and age 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 received and considered information about the potential for Funds Management to experience economies of scale in the provision of management services to the Fund, the difficulties of calculating economies of scale at an individual fund level, and the extent to which potential scale benefits are shared with shareholders. 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. The Board considered that in addition to management fee breakpoints, Funds Management shares potential economies of scale from its management business in a variety of ways, including through fee waiver and expense reimbursement arrangements, services that benefit shareholders, competitive management fee rates set at the outset without regard to breakpoints, and investments in the business intended to enhance services available to shareholders.

The Board concluded that Funds Management’s arrangements with respect to the Fund, 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 theSub-Adviser

The Board received and considered information regarding potential“fall-out” or ancillary benefits received by Funds Management and its affiliates, including theSub-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 theSub-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 andsub-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 theSub-Adviser, fees earned by Funds Management and theSub-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 theSub-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 aone-year term and determined that the compensation payable to Funds Management and theSub-Adviser under each of the Advisory Agreements was reasonable.

Wells Fargo Government Securities Fund  |  41

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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:wfam.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, call1-800-222-8222 or visit the Fund’s website atwfam.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.

INVESTMENT PRODUCTS: NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

© 2019 Wells Fargo Funds Management, LLC. All rights reserved.

405803 10-19

A216/AR216 08-19

Annual Report

August 31, 2019

Wells Fargo Short-Term Bond Fund

Beginning on January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, paper copies of the Wells Fargo Funds’ annual and semi-annual shareholder reports issued after this date will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Funds’ website, and you will be notified by mail each time a report is posted and provided with a website address to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling1-800-222-8222 or by enrolling at wellsfargo.com/advantagedelivery.

You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports; if you invest directly with the Fund, you can call 1-800-222-8222. Your election to receive reports in paper will apply to all Wells Fargo Funds held in your account with your financial intermediary or, if you are a direct investor, to all Wells Fargo Funds that you hold.

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

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The views expressed and any forward-looking statements are as of August 31, 2019, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Asset Management. 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 Asset Management and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

INVESTMENT PRODUCTS: NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾  MAY LOSE VALUE

Wells Fargo Short-Term Bond Fund  |  1

Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

Dear Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Short-Term Bond Fund for the12-month period that ended August 31, 2019. After the first half of the period yielded eitherlow-single-digit or negative investment returns, U.S. stock and global bond investors generally saw markets recover during the second half amid intensifying market volatility, global economic growth concerns, international trade staredowns, and simmering geopolitical tensions.

Overall, fixed-income investors enjoyed a distinct advantage over stock investors. For the period, U.S. stocks, based on the S&P 500 Index,¹ gained 2.92% and international stocks, as measured by the MSCI ACWI ex USA Index (Net),² fell 3.27%. The MSCI EM Index (Net)³ slipped 4.36%. Among fixed income investors, the Bloomberg Barclays U.S. Aggregate Bond Index⁴ added 10.17%, the Bloomberg Barclays Global Aggregateex-USD Index⁵ added 5.71%, the Bloomberg Barclays Municipal Bond Index⁶ gained 8.72%, and the ICE BofAML U.S. High Yield Index⁷ added 6.58%.

Entering the fourth quarter of 2018, economic data was encouraging.

Entering the fourth quarter of 2018, there were reasons for investors to be optimistic. The U.S. Bureau of Economic Analysis reported U.S. gross domestic product (GDP) grew 4.2% on an annualized basis during the second quarter. Hiring improved. Unemployment declined. Consumer spending gained. Third-quarter corporate earnings reports were generally positive. U.S. trade negotiations with Mexico and Canada advanced. In September 2018, the U.S. Federal Reserve (Fed) raised the federal funds rate by 25 basis points (bps; 100 bps equal 1.00%) to a target range of between 2.00% and 2.25% in an indication of its confidence that U.S. economic growth was sustainable.

International markets presented numerous challenges. U.S.-China trade tensions increased. The U.S. imposed $200 billion in tariffs on Chinese goods. China reacted with $60 billion in tariffs on U.S. goods. Economic growth in China caused concern. In September 2018, international investors began to factor in a number of disconcerting economic and business data points: lower July manufacturing and industrial orders in Germany; declining purchasing managers’ index numbers for August from the United Kingdom, China, and India; and declining household spending for August in Japan. Taken together, the data fed growing concerns that global economic growth was slowing.

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 and emerging markets, excluding the U.S. 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 the equity market performance of emerging markets. 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 Aggregateex-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-termtax-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 2019. ICE Data Indices, LLC. All rights reserved.

2  |  Wells Fargo Short-Term Bond Fund

Letter to shareholders (unaudited)

Investors had to digest unsettling events during the fourth quarter of 2018.

November’s U.S. midterm elections shifted control of the House of Representatives from Republicans to Democrats, presaging partisan clashes that followed and caused uncertainty among investors. A partial U.S. government shutdown driven by partisan policy disputes extended into January 2019. Third-quarter U.S. GDP was announced at an annualized 3.4% rate, lower than the second-quarter rate. Brexit efforts stalled. The value of the renminbi declined even as the People’s Bank of China cut reserve requirement ratios, accelerated infrastructure spending, and cut taxes in efforts to spur economic activity.

The combination of news in the U.S. and generally weak economic indicators outside of the U.S. caused investors to seek safe havens. December’s S&P 500 Index performance was the worst since 1931. Globally, fixed-income investments fared better than stocks during the last two months of the year. The Fed increased the federal funds rate by 25 bps in December 2018 to a target range of between 2.25% and 2.50% even as observers expressed concerns that higher rates could slow the economy.

The market climbs a wall of worry.

Investment returns appeared to reaffirm the adage that markets climb a wall of worry as 2019 opened. Following its December decline, the S&P 500 Index gained 8.01% for the month of January, the best monthly performance in 30 years. Returns for the MSCI ACWI ex USA Index (Net), the Bloomberg Barclays U.S. Aggregate Bond Index, and the Bloomberg Barclays Global Aggregateex-USD Index also were positive.

In February 2019, signs of slowing global growth grew more ominous. The Bureau of Economic Analysis announced fourth-quarter 2018 GDP grew at an annualized 2.2% rate, down from the levels of the prior two quarters. In a February report, the Bank of England forecast the slowest growth for 2019 since the financial crisis. China and the U.S. continued to wrangle over trade issues. By the end of the first quarter of 2019, more accommodative Fed sentiment and steady, if not spectacular, U.S. economic and business metrics encouraged domestic investors.

Early second-quarter 2019 enthusiasm among investors faded.

During April 2019, favorable sentiment found additional support in reports of sustained low inflation, solid employment data, and first-quarter U.S. GDP of an annualized rate of 3.2%. During May, markets tumbled on mixed investment signals. In the U.S., partisan wrangling ramped up as Democrats and Republicans set their sights on 2020 presidential politics. The U.K.’s Brexit contretemps caused Prime Minister Theresa May to resign. Boris Johnson succeeded her only to exacerbate uncertainty about Brexit’s resolution ahead of an October 2019 deadline. The European Commission downgraded the 2019 growth forecast to 1.2%. The U.S. increased tariffs on products from China, China responded, and then talks broke down. President Donald Trump threatened to turn his foreign policy tariff tool to Mexico over immigration issues.

During the third quarter of 2019, investors regrouped. Just as the investment horizon appeared to darken, sentiment turned and U.S. equity markets gained during June and July. The gains, primarily driven by geopolitical and monetary policy events, pushed equity markets to new highs. European Central Bank President Mario Draghi said that if the outlook doesn’t improve, the bank would cut rates or buy more assets to prop up inflation. President Trump backed off of tariff threats against Mexico and China. In the U.S., the Fed implemented a 0.25% federal funds rate cut in July.

Later in July, the U.S. reversed course and threatened to impose higher tariffs on China’s exports after talks failed. China responded with tariff threats of its own and

“December’s S&P 500 Index performance was the worst since 1931.”

“Following its December decline, the S&P 500 Index gained 8.01% for the month of January, the best monthly performance in 30 years.”

Wells Fargo Short-Term Bond Fund  |  3

Letter to shareholders (unaudited)

For further information about your Fund, contact your investment professional, visit our website at wfam.com, or call us directly at1-800-222-8222.

devalued the renminbi, a move that roiled global markets. Major U.S. stock market indices closed July 2019 with the worst weekly results of the year. Bond prices gained as Treasury yields fell to levels not seen since November 2016 and the yield curve inverted at multiple points along the30-year arc.

In a microcosm, August 2019 encapsulated many of the unnerving events that plagued investors during the prior 11 months. The U.S.-China trade relationship swung from discouraging to hopeful and back again with no evident compromise on the horizon. Evidence of a continued global economic slowdown continued to mount as central banks in China, New Zealand, and Thailand cut interest rates. Industrial and manufacturing data declined in China, Canada, Japan, and Germany. Adding to the uncertain environment, Italy’s prime minister resigned, many feared a crackdown in Hong Kong as protesters sustained their calls for reform throughout the month, and Boris Johnson planned to suspend Parliament as Brexit’s deadline neared.

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

4  |  Wells Fargo Short-Term Bond Fund

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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^®‡

Michael J. Schueller, CFA^®‡*

Noah M. Wise, CFA^®‡

Average annual total returns (%) as of August 31, 2019

		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 (SSTVX)	8-31-1999		2.51		1.30		1.97		4.60		1.71		2.18		0.83		0.73
Class C (WFSHX)	3-31-2008		2.82		0.95		1.42		3.82		0.95		1.42		1.58		1.48
Class R6 (SSTYX)3	7-31-2018		–		–		–		4.69		1.93		2.47		0.45		0.41
Institutional Class (SSHIX)	8-31-1999		–		–		–		4.88		1.95		2.47		0.50		0.46
Bloomberg Barclays U.S.1-3 Year Government/Credit Bond Index4	–		–		–		–		4.62		1.58		1.57		–		–

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

6  |  Wells Fargo Short-Term Bond Fund

Performance highlights (unaudited)

Growth of $10,000 investment as of August 31, 2019⁵

^‡  CFA^®and Chartered Financial Analyst^® are trademarks owned by CFA Institute.

* Mr. Schueller became a portfolio manager of the Fund on June 6, 2019.

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, 2019, to waive fees and/or reimburse expenses to the extent necessary to cap the expenses of each class 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. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses (if any), and extraordinary expenses are excluded from the expense cap. Prior to or after the commitment expiration date, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Without this cap, the Fund’s returns would have been lower. The expense ratio paid by an investor is the net expense ratio (the total annual fund operating expenses after fee waivers) as stated in the prospectuses.

³  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.

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

⁵  The 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 Personal Consumption Expenditures Index is the primary measure of consumer spending on goods and services in the U.S. economy. It accounts for abouttwo-thirds of domestic final spending and is part of the personal income report issued by the Bureau of Economic Analysis of the Department of Commerce. 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.

Wells Fargo Short-Term Bond Fund  |  7

Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

∎ The Fund (Class A shares, excluding sales charges) underperformed its benchmark, the Bloomberg Barclays 1–3 year U.S. Government/Credit Bond Index, for the12-month period that ended August 31, 2019.

∎ Cash reserves were a modest detractor.

∎ Overweights to corporate debt and structured products, both of which generated superior yield returns compared with similar-duration Treasuries, generated positive results for the Fund.

Ten largest holdings(%) as of August 31, 20196
Jackson National Life Global Company,2.50%, 6-27-2022	1.16
Morgan Stanley, 2.75%,5-19-2022	0.94
Honda Auto Receivables Owner Trust Series2016-4 Class A4, 1.36%,1-18-2023	0.79
GS Mortgage Securities Trust Series2010-C1 Class A2, 4.59%,8-10-2043	0.75
Comcast Corporation, 3.45%,10-1-2021	0.71
GS Mortgage Securities Trust Series 2014-GC22 Class A3, 3.52%,6-10-2047	0.71
HSBC Bank USA NA, 4.88%,8-24-2020	0.71
General Motors Financial Company,3.45%, 4-10-2022	0.70
Cooperatieve Rabobank U.A., 2.75%,1-10-2022	0.70
California Republic Auto Receivables Trust Series2017-1 Class A4, 2.28%,6-15-2022	0.70

An economic slowdown

The pace of gross domestic product growth decelerated over the past 12 months as business investment, inventory effects, and trade restrained overall economic activity. For the four quarters that ended June 30, 2019, the U.S. economy expanded by 2.3% in inflation-adjusted terms, compared with a 3.2% trailing12-month growth rate at the midway point in 2018. Rising anxiety over the contentious U.S.-China trade relationship appeared to discourage capital investment over the12-month period that ended August 31, 2019. Housing investment also was a modest drag despite low mortgage rates. Consumer spending held up fairly well, however, with the Personal Consumption Expenditures Index⁷ rising at a 2.7% year-over-year rate though the end of July.

Consumption was supported by a relatively firm labor market. While job growth slowed modestly over the period, wages grew by 3.2% in real terms and the unemployment rate remained below 4%. Measures of labor force participation also generally showed improvement.

In response to slower growth and lower-than-targeted inflation, the Federal Open Market Committee (FOMC) voted to reduce its policy rate target for overnight funds by 0.25% at its July 31 meeting. This was the first interest rate reduction engineered by the FOMC in the decade since the financial crisis. While the monetary authorities suggested that their decision should be seen as a “midcourse correction” rather than the beginning of an extended easing cycle, markets have priced multiple additional rate cuts into the term structure. Indeed, interest rates fell across the board over the past 12 months, with the intermediate-term Treasury yields dropping by about 1.35%.

Portfolio composition as of August 31, 2019⁸

The Fund continued to favor corporate credit and securitized obligations.

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 yield advantage versus Treasuries, while short-term credit spreads were little changed on a year-over-year basis. The Fund’s second-largest sector commitment was to securitized debt: asset-backed securities, residential mortgage-backed securities, commercial mortgage-backed securities, and collateralized loan obligations. The Fund benefited from the yield advantage accruing to these holdings.

While our emphasis in certain outperforming sectors like telecom, airlines, and real estate investment trusts added to relative performance, selection in these sectors detracted as the Fund holdings tended to underperform index holdings.

Please see footnotes on page 7.

8  |  Wells Fargo Short-Term Bond Fund

Performance highlights (unaudited)

The trade war is a persistent cloud.

We expect the U.S.-China trade dispute to drag on for some months to come, depressing business investment. Slower growth, in turn, is likely to incline the monetary authorities to ease policy further, with at least one and probably more rate cuts to be implemented over the next 6 to 12 months. A quick resolution to the dispute—as unlikely as that seems at this time—could probably boost business confidence and perhaps reduce the pressure for accommodative monetary policy. In this environment, we anticipate taking a cautious approach to both duration and sector allocation decisions, with a bias towardup-in-quality trades. As always, relative-value considerations will dominate our security selection process.

Wells Fargo Short-Term Bond Fund  |  9

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 thesix-month period and held for the entire period from March 1, 2019 to August 31, 2019.

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 3-1-2019		Ending account value 8-31-2019		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,029.53	$	3.68		0.72	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.58	$	3.67		0.72	%
Class C
Actual	$	1,000.00	$	1,025.67	$	7.50		1.47	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.80	$	7.48		1.47	%
Class R6
Actual	$	1,000.00	$	1,030.02	$	2.05		0.40	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.19	$	2.04		0.40	%
Institutional Class
Actual	$	1,000.00	$	1,029.74	$	2.30		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 theone-half-year period).

10  |  Wells Fargo Short-Term Bond Fund

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Agency Securities: 4.46%
FDIC Series2010-R1 Class A 144A		2.18	%		5-25-2050	$	91,009	$	90,894
FDIC Series2013-R1 Class A 144A		1.15			3-25-2033		267,579		265,977
FHLMC		3.50			10-15-2025		403,486		419,552
FHLMC		3.50			6-15-2038		158,475		158,892
FHLMC (3 Year Treasury Constant Maturity +2.24%)±		3.63			5-1-2026		24,686		24,973
FHLMC		4.00			5-1-2025		704,651		735,272
FHLMC (12 Month LIBOR +1.91%)±		4.66			9-1-2031		2,375		2,406
FHLMC (1 Year Treasury Constant Maturity +2.25%)±		4.76			4-1-2032		34,258		36,097
FHLMC (1 Year Treasury Constant Maturity +2.25%)±		4.84			4-1-2038		215,463		227,198
FHLMC (1 Year Treasury Constant Maturity +2.40%)±		4.90			7-1-2029		1,644		1,692
FHLMC		6.00			10-1-2021		70,341		71,996
FHLMC		9.00			10-1-2019		193		192
FHLMC		9.50			12-1-2022		1,973		1,987
FHLMC Series 2597 Class AE		5.50			4-15-2033		47,435		50,916
FHLMC Series 2642 Class AR		4.50			7-15-2023		170,311		174,820
FHLMC Series 3609 Class LA		4.00			12-15-2024		4,280		4,290
FHLMC Series 3855 Class HL		3.50			2-15-2026		29,777		29,806
FHLMC Series 3920 Class AB		3.00			9-15-2025		191,442		192,859
FHLMC Series KI01 Class A (1 Month LIBOR +0.16%)±		2.38			9-25-2022		89,050		88,859
FHLMC Series QO04 Class AFL (12 Month Treasury Average +0.74%)±		3.22			5-25-2044		1,017,673		1,018,558
FHLMC SeriesT-42 Class A6		9.50			2-25-2042		297,427		367,676
FHLMC SeriesT-57 Class 2A1±±		4.16			7-25-2043		70,884		77,063
FHLMC SeriesT-59 Class 2A1±±		4.03			10-25-2043		830,165		881,290
FHMLC Series 4358 Class DA		3.00			6-15-2040		1,877,032		1,909,992
FNMA		2.02			6-1-2021		1,988,786		1,992,185
FNMA		3.02			11-1-2020		249,161		250,668
FNMA (1 Year Treasury Constant Maturity +1.27%)±		3.83			8-1-2034		219,591		223,134
FNMA		4.00			6-25-2026		410,003		436,183
FNMA		4.00			8-25-2037		304,808		314,715
FNMA (1 Year Treasury Constant Maturity +2.19%)±		4.64			11-1-2031		39,552		41,463
FNMA (12 Month LIBOR +1.81%)±		4.69			9-1-2040		614,115		648,126
FNMA (1 Year Treasury Constant Maturity +2.26%)±		4.72			8-1-2036		1,035,302		1,093,694
FNMA (12 Month Treasury Average +2.29%)±		4.82			10-1-2036		836,069		877,028
FNMA (12 Month Treasury Average +2.43%)±		4.92			7-1-2036		821,419		866,192
FNMA		5.50			3-1-2023		307,853		319,323
FNMA		6.00			4-1-2021		22,479		22,804
FNMA		6.00			3-1-2033		313,885		346,938
FNMA		6.50			8-1-2031		163,174		190,607
FNMA		8.00			9-1-2023		726		730
FNMA		8.33			7-15-2020		154		155
FNMA		9.00			2-15-2020		22		22
FNMA		9.00			11-1-2024		32,146		34,583
FNMA		11.00			10-15-2020		292		294
FNMA Grantor Trust Series2002-T12 Class A4		9.50			5-25-2042		490,316		586,679
FNMA Series1989-63 Class Z		9.40			10-25-2019		77		77
FNMA Series2002-T1 Class A4		9.50			11-25-2031		29,015		34,821
FNMA Series2003-41 Class PE		5.50			5-25-2023		187,546		194,798
FNMA Series2003-W11 Class A1±±		5.44			6-25-2033		5,534		5,782
FNMA Series2003-W6 Class 6A±±		4.45			8-25-2042		555,090		570,822
FNMA Series2003-W6 Class PT4±±		8.57			10-25-2042		54,878		69,116
FNMA Series2005-84 Class MB		5.75			10-25-2035		321,560		354,821

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

Wells Fargo Short-Term Bond Fund  |  11

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA Series2006-W1 Class 2AF2 (1 Month LIBOR +0.19%)±		2.34	%		2-25-2046	$	1,133,667	$	1,115,362
FNMA Series2008-53 Class CA		5.00			7-25-2023		7,416		7,412
FNMA Series2010-37 Class A1		5.41			5-25-2035		1,436,762		1,502,572
FNMA Series2011-133 Class A		3.50			6-25-2029		43,288		43,258
GNMA		4.50			4-20-2035		83,677		87,822
GNMA		8.00			12-15-2023		10,027		10,765
GNMA		9.00			11-15-2024		1,803		1,833
GNMA Series2017-H13 Class FJ (1 Month LIBOR +0.20%)±		2.58			5-20-2067		137,122		137,049
GNMA Series2017-H16 Class FD (1 Month LIBOR +0.20%)±		2.58			8-20-2067		157,420		157,377
Total Agency Securities (Cost $18,862,253)									19,372,467
Asset-Backed Securities: 12.11%
Ascentium Equipment Receivables LLC Series2017-2A Class A2 144A		2.00			5-11-2020		336,556		336,445
California Republic Auto Receivables Trust Series2017-1 Class A4		2.28			6-15-2022		3,030,992		3,031,406
Chesapeake Funding II LLC Series2017-3A Class A1 144A		1.91			8-15-2029		1,509,386		1,505,211
CPS Auto Trust Series2018-C Class A 144A		2.87			9-15-2021		1,178,121		1,179,153
Dell Equipment Finance Trust Series2018-1 Class A2A 144A		2.97			10-22-2020		2,211,062		2,215,722
DT Auto Owner Trust Series2017-2A Class D 144A		3.89			1-15-2023		535,000		540,333
Education Loan Asset-Backed Trust Series2013-1 Class A1 (1 Month LIBOR +0.80%) 144A±		2.95			6-25-2026		649,402		650,025
Educational Services of America Incorporated Series2015-2 Class A (1 Month LIBOR +1.00%) 144A±		3.15			12-25-2056		1,051,221		1,051,252
Enterprise Fleet Financing Trust Series2017-1 Class A2 144A		2.13			7-20-2022		988,376		988,009
Enterprise Fleet Financing Trust Series2017-2 Class A2 144A		1.97			1-20-2023		2,799,143		2,795,872
Fifth Third Auto Trust Series2019-1 Class A2A		2.66			5-16-2022		2,015,000		2,024,371
Flagship Credit Auto Trust Series2018-2 Class A 144A		2.97			10-17-2022		1,150,768		1,155,689
GM Financial Consumer Automobile Receivables Trust Series2017-2A Class A3 144A		1.86			12-16-2021		2,830,219		2,825,827
GM Financial Securitized Term Auto Receivables Trust Series2018-1 Class A2A		2.08			1-19-2021		655,927		655,793
Hertz Fleet Lease Funding LP Series2016-1 Class A2 144A		1.96			4-10-2030		91,852		91,791
Hertz Vehicle Financing LLC Series2019-1A Class A 144A		3.71			3-25-2023		2,280,000		2,356,621
Hertz Vehicle Financing LLC Series2019-1A Class B 144A		4.10			3-25-2023		1,500,000		1,551,804
Home Equity Asset Trust Series2003-6 Class M1 (1 Month LIBOR +1.05%)±		3.77			2-25-2034		887,298		881,754
Honda Auto Receivables Owner Trust Series2016-4 Class A4		1.36			1-18-2023		3,435,000		3,418,981
Jimmy John’s Funding LLC Series2017-1A Class A2I 144A		3.61			7-30-2047		1,225,000		1,237,030
Lendmark Funding Trust Series2018-1A Class A 144A		3.81			12-21-2026		1,855,000		1,901,704
MMAF Equipment Finance LLC Series2019-A Class A2 144A		2.84			1-10-2022		1,875,000		1,889,783
Nissan Auto Lease Trust Series2017-B Class A3		2.05			9-15-2020		1,198,447		1,198,091
SLC Student Loan Trust Series2006-2 Class A5 (3 Month LIBOR +0.10%)±		2.51			9-15-2026		1,053,077		1,050,678
SLM Student Loan Trust Series 2007- 4 Class B1 (3 Month LIBOR +0.14%)±		2.42			7-25-2025		648,448		645,259
SLM Student Loan Trust Series2011-1 Class A1 (1 Month LIBOR +0.52%)±		2.67			3-25-2026		204,883		205,117
SLM Student Loan Trust Series2011-2 Class A1 (1 Month LIBOR +0.60%)±		2.75			11-25-2027		238,492		238,040
SLM Student Loan Trust Series2012-3 Class A (1 Month LIBOR +0.65%)±		2.80			12-27-2038		1,847,565		1,844,427
Student Loan Consolidation Center Series2011-1 Class A (1 Month LIBOR +1.22%) 144A±		3.37			10-25-2027		1,476,862		1,481,224
Tesla Auto Lease Trust Series2018-B Class A 144A		3.71			8-20-2021		798,193		812,382
Towd Point Asset Trust Series2018-SL1 Class A (1 Month LIBOR +0.60%) 144A±		2.75			1-25-2046		2,116,136		2,084,090
Toyota Auto Receivables Owner Trust Series2018-D Class A3		3.18			3-15-2023		1,365,000		1,394,429
Verizon Owner Trust Series2017-1A Class A 144A		2.06			9-20-2021		969,117		968,780
Volvo Financial Equipment LLC Series2018-A Class A (1 Month LIBOR +0.52%) 144A±		2.72			7-17-2023		2,240,000		2,243,295

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

12  |  Wells Fargo Short-Term Bond Fund

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Asset-Backed Securities (continued)
Westlake Automobile Receivables Trust Series2018-2A Class B 144A		3.20	%		1-16-2024	$	1,300,000	$	1,307,109
Wheels SPV LLC Series2018-1A Class A2 144A		3.06			4-20-2027		1,109,074		1,115,186
World Omni Automobile Lease Southeast Series2019-A Class A4		3.01			7-15-2024		1,710,000		1,747,675
Total Asset-Backed Securities (Cost $52,375,121)									52,620,358
Corporate Bonds and Notes: 41.59%
Communication Services: 4.44%
Diversified Telecommunication Services: 0.77%
AT&T Incorporated		2.80			2-17-2021		1,910,000		1,928,905
Broadcom Corporation		3.00			1-15-2022		1,415,000		1,426,479
									3,355,384
Media: 3.44%
Charter Communications Operating LLC		3.58			7-23-2020		3,000,000		3,028,583
Comcast Corporation		3.45			10-1-2021		3,000,000		3,090,009
Discovery Communications LLC		3.50			6-15-2022		2,025,000		2,084,258
Fox Corporation 144A		4.03			1-25-2024		1,070,000		1,145,959
Interpublic Group Companies		3.75			2-15-2023		2,025,000		2,130,190
NBCUniversal Enterprise Incorporated 144A		5.25			3-19-2021		1,655,000		1,708,788
TEGNA Incorporated		5.13			7-15-2020		1,740,000		1,746,090
									14,933,877
Wireless Telecommunication Services: 0.23%
Sprint Spectrum Company LLC 144A		3.36			3-20-2023		990,000		993,762
Consumer Discretionary: 1.42%
Household Durables: 0.66%
D.R. Horton Incorporated		4.75			2-15-2023		2,000,000		2,140,775
Lennar Corporation		4.50			11-15-2019		445,000		445,267
Lennar Corporation		4.75			11-15-2022		251,000		264,805
									2,850,847
Internet & Direct Marketing Retail: 0.18%
Amazon.com Incorporated		1.90			8-21-2020		765,000		764,527
Multiline Retail: 0.28%
Macy’s Retail Holdings Incorporated		3.45			1-15-2021		1,205,000		1,214,771
Specialty Retail: 0.30%
Group 1 Automotive Incorporated		5.00			6-1-2022		1,300,000		1,313,000
Consumer Staples: 2.86%
Food Products: 1.79%
Campbell Soup Company		3.30			3-15-2021		2,380,000		2,413,504
Conagra Brands Incorporated		3.80			10-22-2021		1,440,000		1,481,528
General Mills Incorporated		3.20			4-16-2021		1,800,000		1,831,655
Hershey Company		3.38			5-15-2023		1,935,000		2,034,529
									7,761,216

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

Wells Fargo Short-Term Bond Fund  |  13

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Tobacco: 1.07%
Altria Group Incorporated		2.85	%		8-9-2022	$	2,805,000	$	2,862,846
BAT Capital Corporation		2.30			8-14-2020		1,785,000		1,785,193
									4,648,039
Energy: 1.91%
Oil, Gas & Consumable Fuels: 1.91%
Baker Hughes LLC		2.77			12-15-2022		1,360,000		1,384,692
Energy Transfer Partners LP		5.20			2-1-2022		2,060,000		2,184,940
Occidental Petroleum Corporation		2.90			8-15-2024		2,365,000		2,387,117
Rockies Express Pipeline LLC 144A		5.63			4-15-2020		2,300,000		2,351,187
									8,307,936
Financials: 15.87%
Banks: 5.63%
Australia & New Zealand Banking Group Limited		2.25			11-9-2020		2,210,000		2,218,229
Bank of America Corporation		2.15			11-9-2020		2,000,000		2,001,072
Bank of America NA (3 Month LIBOR +0.65%)±		3.34			1-25-2023		1,000,000		1,030,688
BBVA Bancomer SA 144A		7.25			4-22-2020		2,240,000		2,296,022
Citibank NA		3.40			7-23-2021		2,000,000		2,049,297
Citibank NA (3 Month LIBOR +0.60%)±		2.84			5-20-2022		2,000,000		2,022,377
Citizens Bank		2.20			5-26-2020		2,000,000		1,999,691
HSBC Bank USA NA		4.88			8-24-2020		3,000,000		3,078,196
JPMorgan Chase & Company		1.65			9-23-2019		2,000,000		1,999,403
JPMorgan Chase & Company (3 Month LIBOR +0.70%)±		3.21			4-1-2023		1,080,000		1,110,332
JPMorgan Chase & Company (3 Month LIBOR +0.61%)±		3.51			6-18-2022		1,000,000		1,023,697
Synchrony Bank		3.65			5-24-2021		1,075,000		1,096,925
US Bank NA		2.05			10-23-2020		2,540,000		2,544,029
									24,469,958
Capital Markets: 1.85%
Goldman Sachs Group Incorporated		2.30			12-13-2019		1,000,000		1,000,069
Goldman Sachs Group Incorporated (3 Month LIBOR +0.82%)±		2.88			10-31-2022		2,900,000		2,939,954
Morgan Stanley		2.75			5-19-2022		4,023,000		4,092,129
									8,032,152
Consumer Finance: 3.88%
American Express Company		3.40			2-27-2023		1,120,000		1,170,046
Capital One Financial Corporation		2.50			5-12-2020		3,000,000		3,005,361
Daimler Finance North America LLC 144A		2.20			5-5-2020		520,000		520,031
Daimler Finance North America LLC 144A		3.00			2-22-2021		2,850,000		2,875,935
Ford Motor Credit Company LLC		3.20			1-15-2021		1,335,000		1,341,607
Ford Motor Credit Company LLC (3 Month LIBOR +0.88%)±		3.22			10-12-2021		1,160,000		1,147,860
General Motors Financial Company		3.45			4-10-2022		3,000,000		3,059,474
Nissan Motor Acceptance Corporation 144A		3.88			9-21-2023		2,030,000		2,138,921
Synchrony Financial		2.70			2-3-2020		1,645,000		1,647,109
									16,906,344
Diversified Financial Services: 1.12%
IBM Credit LLC		3.45			11-30-2020		2,590,000		2,634,783
WEA Finance LLC 144A		3.25			10-5-2020		2,205,000		2,231,161
									4,865,944

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

14  |  Wells Fargo Short-Term Bond Fund

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Insurance: 3.39%
Axis Specialty Finance LLC		5.88	%		6-1-2020	$	1,794,000	$	1,841,188
Jackson National Life Global Company 144A		3.30			6-11-2021		2,340,000		2,387,992
Jackson National Life Global Company 144A		2.50			6-27-2022		5,000,000		5,057,825
Metropolitan Life Global Funding Incorporated 144A		1.55			9-13-2019		1,820,000		1,819,685
OneBeacon US Holdings Incorporated		4.60			11-9-2022		2,075,000		2,160,143
Protective Life Global Funding 144A		2.26			4-8-2020		1,450,000		1,449,827
									14,716,660
Health Care: 4.23%
Biotechnology: 0.49%
AbbVie Incorporated		3.38			11-14-2021		2,065,000		2,116,847
Health Care Providers & Services: 2.54%
Anthem Incorporated		2.50			11-21-2020		1,235,000		1,241,186
Cigna Holding Company		4.00			2-15-2022		2,095,000		2,179,579
CVS Health Corporation		2.63			8-15-2024		1,520,000		1,528,710
CVS Health Corporation		2.80			7-20-2020		2,360,000		2,371,764
Dignity Health		3.13			11-1-2022		2,255,000		2,310,357
Tenet Healthcare Corporation		6.00			10-1-2020		1,340,000		1,392,260
									11,023,856
Pharmaceuticals: 1.20%
Bayer US Finance LLC 144A		3.88			12-15-2023		1,725,000		1,811,118
EMD Finance LLC 144A		2.40			3-19-2020		1,925,000		1,925,800
Teva Pharmaceutical Finance LLC		2.25			3-18-2020		1,500,000		1,488,750
									5,225,668
Industrials: 2.88%
Aerospace & Defense: 1.43%
Boeing Capital Corporation		1.88			6-15-2023		3,000,000		2,985,255
Spirit AeroSystems Incorporated (3 Month LIBOR +0.80%)±		3.21			6-15-2021		2,500,000		2,499,991
The Boeing Company		2.70			5-1-2022		710,000		724,529
									6,209,775
Airlines: 0.50%
Delta Air Lines Incorporated		3.40			4-19-2021		1,000,000		1,013,767
Delta Air Lines Incorporated		4.75			11-7-2021		1,150,256		1,166,130
									2,179,897
Industrial Conglomerates: 0.83%
General Electric Company		2.50			3-28-2020		3,000,000		2,980,920
General Electric Company		4.63			1-7-2021		605,000		618,678
									3,599,598
Professional Services: 0.12%
Equifax Incorporated		3.60			8-15-2021		500,000		511,015
Information Technology: 3.35%
IT Services: 0.49%
Global Payments Incorporated		2.65			2-15-2025		2,135,000		2,146,460

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

Wells Fargo Short-Term Bond Fund  |  15

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Semiconductors & Semiconductor Equipment: 1.15%
Broadcom Corporation		2.65	%		1-15-2023	$	3,000,000	$	2,995,998
KLA-Tencor Corporation		3.38			11-1-2019		2,000,000		2,001,418
									4,997,416
Technology Hardware, Storage & Peripherals: 1.71%
Apple Incorporated		2.15			2-9-2022		3,000,000		3,026,032
Hewlett Packard Enterprise Company		3.60			10-15-2020		2,500,000		2,535,807
NCR Corporation		4.63			2-15-2021		1,875,000		1,875,188
									7,437,027
Materials: 1.07%
Chemicals: 0.50%
DowDuPont Incorporated		4.21			11-15-2023		2,010,000		2,165,433
Paper & Forest Products: 0.57%
Georgia Pacific LLC 144A		2.54			11-15-2019		2,495,000		2,495,474
Real Estate: 1.08%
Equity REITs: 0.61%
DDR Corporation		4.63			7-15-2022		739,000		774,836
Host Hotels & Resorts Company		6.00			10-1-2021		600,000		638,039
Omega Healthcare Investors Incorporated		4.95			4-1-2024		1,160,000		1,248,950
									2,661,825
Real Estate Management & Development: 0.47%
Washington Prime Group Incorporated		3.85			4-1-2020		2,065,000		2,051,639
Utilities: 2.48%
Electric Utilities: 1.89%
Duke Energy Corporation		5.05			9-15-2019		3,000,000		3,002,210
Edison International		2.13			4-15-2020		1,200,000		1,193,526
Exelon Corporation		3.50			6-1-2022		1,895,000		1,951,110
NV Energy Incorporated		6.25			11-15-2020		2,000,000		2,091,350
									8,238,196
Multi-Utilities: 0.59%
Dominion Energy Incorporated		2.72			8-15-2021		1,170,000		1,179,842
DTE Energy Company		2.53			10-1-2024		1,360,000		1,371,582
									2,551,424
Total Corporate Bonds and Notes (Cost $177,804,166)									180,745,967
Municipal Obligations: 1.41%
California: 0.22%
Miscellaneous Revenue: 0.22%
Roman Catholic Diocese of Oakland CA		6.04			11-1-2019		935,000		940,042
Georgia: 0.25%
Health Revenue: 0.25%
Georgia Medical Center Hospital Authority Taxable Refunding Bond Columbus Regional Healthcare System Incorporated Project		4.88			8-1-2022		1,000,000		1,066,480

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

16  |  Wells Fargo Short-Term Bond Fund

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal			Value
Illinois: 0.21%
Tax Revenue: 0.21%
Chicago IL Retiree Health Series B		6.30	%		12-1-2021	$	870,000		$	912,378
Indiana: 0.33%
Education Revenue: 0.33%
Indiana Secondary Market for Education Loans Incorporated (1 Month LIBOR +0.80%)±		3.07			2-25-2044		1,444,901			1,431,781
Pennsylvania: 0.21%
Miscellaneous Revenue: 0.21%
Philadelphia PA IDA Pension Funding Series B (Ambac Insured) ¤		0.00			4-15-2021		970,000			935,546
Rhode Island: 0.19%
Industrial Development Revenue: 0.19%
Rhode Island EDA (AGM Insured)		7.75			11-1-2020		800,000			821,744
Total Municipal Obligations (Cost $6,048,615)										6,107,971
Non-Agency Mortgage-Backed Securities: 21.16%
Barclays Commercial Mortgage Trust Series2015-STP Class A 144A		3.32			9-10-2028		1,426,788			1,439,500
BDS Limited Series2018-FL2 Class A (1 Month LIBOR +0.95%) 144A±		3.15			8-15-2035		1,131,347			1,131,347
Benefit Street Partners CLO Limited Series2014-IVA Class A1RR (3 Month LIBOR +1.25%) 144A±		3.53			1-20-2029		2,300,000	��		2,300,398
BlueMountain CLO Limited Series2012-2A Class AR2 (3 Month LIBOR +1.05%) 144A±		3.19			11-20-2028		1,400,000			1,400,008
Bunker Hill Loan Depositary Trust Series2019-1 Class A1 144A		3.61			10-26-2048		914,768			924,172
Cascade Funding Mortgage Trust Series 2018- RM2 Class A 144A±±		4.00			10-25-2068		489,639			507,011
CCG Receivables Trust LLC Series2018-1 Class A2 144A		2.50			6-16-2025		1,020,043			1,022,277
CD Commercial Mortgage Trust Series2017-CD3 Class A1		1.97			2-10-2050		959,934			958,402
CGBAM Commercial Mortgage Trust Series 2015-SMRT Class A 144A		2.81			4-10-2028		1,365,000			1,366,775
CGDBB Commercial Mortgage Trust Series 2017-BIOC Class A (1 Month LIBOR +0.79%) 144A±		2.99			7-15-2032		2,850,000			2,849,995
CIFC Funding Limited Series2012-2RA Class A1 (3 Month LIBOR +0.80%) 144A±		3.08			1-20-2028		2,440,000			2,431,504
Citigroup Commercial Mortgage Trust Series2016-P5 Class A2		2.40			10-10-2049		128,000			128,863
Citigroup Commercial Mortgage Trust Series 2017-1500 Class A (1 Month LIBOR +0.85%) 144A±		3.05			7-15-2032		2,100,000			2,100,021
Citigroup Commercial Mortgage Trust Series 2017-MDRB Class A (1 Month LIBOR +1.10%) 144A±		3.30			7-15-2030		1,056,867			1,048,166
Colt Funding LLC Series2018-3 Class A1 144A±±		3.69			10-26-2048		1,148,300			1,157,779
Commercial Mortgage Trust Series2012-CR1 Class ASB		3.05			5-15-2045		1,632,493			1,649,165
Commercial Mortgage Trust Series 2014-LC17 Class A2		3.16			10-10-2047		392,385			392,206
Commercial Mortgage Trust Series 2015-CR27 Class A1		1.58			10-10-2048		829,692			826,428
ContiMortgage Home Equity Trust Series1996-2 Class IO±±(c)		0.00			7-15-2027		592,802			11,008
Countrywide Home Loans Mortgage Pass-Through Trust Series 2001-HYB1 Class 2A1±±		4.46			6-19-2031		99,014			99,247
Credit Suisse Mortgage Trust Series 2019-SKLZ Class A (1 Month LIBOR +1.25%) 144A±		3.45			1-15-2034		1,400,000			1,403,192
Crown Point Limited Series2018-6A Class A1 (3 Month LIBOR +1.17%) 144A±		3.45			10-20-2028		2,350,000			2,349,974
Deutsche Bank UBS Securities Mortgage Trust Series 2011-LC2A Class A4 144A		4.54			7-10-2044		704,369			726,213
EquiFirst Mortgage Loan Trust Series2003-2 Class 3A3 (1 Month LIBOR +1.13%) ±		3.32			9-25-2033		242,366			239,879
GCAT Series 2019-NQM1 Class A1 144A		2.99			2-25-2059		2,772,713			2,784,337

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

Wells Fargo Short-Term Bond Fund  |  17

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Non-Agency Mortgage-Backed Securities (continued)
Golden National Mortgage Asset-Backed Certificates Series1998-GN1 Class M2		1.00	%		2-25-2027	$	34,322	$	34,243
Great Wolf Trust Series 2017 Class A (1 Month LIBOR +0.85%) 144A±		3.05			9-15-2034		2,150,000		2,149,292
GS Mortgage Securities Trust Series2010-C1 Class A2 144A		4.59			8-10-2043		3,210,000		3,250,780
GS Mortgage Securities Trust Series 2012-ALOH Class A 144A		3.55			4-10-2034		2,414,000		2,495,937
GS Mortgage Securities Trust Series2013-G1 Class A2 144A±±		3.56			4-10-2031		530,140		544,104
GS Mortgage Securities Trust Series 2014-GC22 Class A3		3.52			6-10-2047		3,031,556		3,084,086
GS Mortgage Securities Trust Series2016-GS3 Class A1		1.43			10-10-2049		1,299,258		1,290,638
GS Mortgage Securities Trust Series 2019- PJ1 Class A6 144A±±		4.00			8-25-2049		1,054,026		1,064,716
GSMPS Mortgage Loan Trust Series1998-1 Class A 144A±±		8.00			9-19-2027		161,515		160,613
Homeward Opportunities Fund I Trust Series2019-1 Class A1 144A±±		3.45			1-25-2059		1,939,468		1,958,169
Hospitality Mortgage Trust Series 2019 Class A (1 Month LIBOR +1.00%) 144A±		3.20			11-15-2036		2,160,000		2,157,967
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-LDPX Class AM±±		5.46			1-15-2049		238,603		237,783
JPMorgan Chase Commercial Mortgage Securities Trust Series2012-C8 Class A3		2.83			10-15-2045		2,456,780		2,514,438
JPMorgan Chase Commercial Mortgage Securities Trust Series 2013-LC11 Class A4		2.69			4-15-2046		1,608,504		1,648,325
JPMorgan Chase Commercial Mortgage Securities Trust Series2018-PHH Class A (1 Month LIBOR +0.91%) 144A±		3.11			6-15-2035		1,051,458		1,051,518
KKR Financial Holdings LLC (3 Month LIBOR +1.34%) 144A±		3.64			4-15-2029		2,250,000		2,250,383
Lendmark Funding Trust Series 2018-2A Class A 144A		4.23			4-20-2027		160,000		166,753
LoanCore Limited Series 2018-CRE1 Class A (1 Month LIBOR +1.13%) 144A±		3.33			5-15-2028		2,000,000		2,001,868
LStar Commercial Mortgage Trust Series2017-5 Class A1 144A		2.42			3-10-2050		481,800		483,281
Master Mortgages Trust Series2002-3 Class 4A1±±		4.98			10-25-2032		1,458		1,482
Mello Warehouse Securitization Series2018-W1 Class A (1 Month LIBOR +0.85%) 144A±		3.00			11-25-2051		2,000,000		1,998,982
Mello Warehouse Securitization Series2019-1 Class A (1 Month LIBOR +0.80%) 144A±		2.95			6-25-2052		2,240,000		2,238,017
Morgan Stanley Capital I Trust Series2016-C30 Class A1		1.39			9-15-2049		1,072,744		1,064,656
Neuberger Berman Limited Series2015-20A Class AR (3 Month LIBOR +0.80%) 144A±		3.10			1-15-2028		1,340,000		1,332,629
New Residential Mortgage Loan Trust Series 2018-NQM1 Class A1 144A±±		3.99			11-25-2048		1,435,197		1,461,422
Oaktree CLO Limited Series15-1A Class A1R (3 Month LIBOR +0.87%) 144A±		3.15			10-20-2027		1,500,000		1,500,020
Palmer Square Loan Funding Limited Series2017-1A Class A1 (3 Month LIBOR +0.74%) 144A±		3.04			10-15-2025		1,196,581		1,194,626
Palmer Square Loan Funding Limited Series2018-4A Class A1 (3 Month LIBOR +0.90%) 144A±		3.06			11-15-2026		1,407,306		1,407,775
RAIT Trust Series2017-FL7 Class A (1 Month LIBOR +0.95%) 144A±		3.15			6-15-2037		333,228		332,967
ReadyCap Commercial Mortgage Trust Series2019-5 Class A 144A		3.78			2-25-2052		1,616,963		1,674,259
Regatta II Funding LP Series2013-2A Class A1R2 (3 Month LIBOR +1.25%) 144A±		3.55			1-15-2029		2,925,000		2,924,939
Salem Fields CLO Limited Series2016-2A Class A (3 Month LIBOR +1.15%) 144A±		3.43			10-25-2028		1,800,000		1,797,530
SBA Tower Trust Series2014-1A Class C 144A		2.90			10-15-2044		3,000,000		3,000,386
Starwood Mortgage Residential Trust Series2019-1 Class A1 144A±±		2.94			6-25-2049		1,885,750		1,890,029
Stonemont Portfolio Trust Series 2017 Class A (1 Month LIBOR +0.85%) 144A±		3.02			8-20-2030		1,715,174		1,714,611
THL Credit Wind River CLO Limited Series2012-1A Class AR2 (3 Month LIBOR +0.88%) 144A±		3.18			1-15-2026		2,045,000		2,044,965
UBS Commercial Mortgage Trust Series 2018-NYCH Class A (1 Month LIBOR +0.85%) 144A±		3.05			2-15-2032		1,680,000		1,676,332
Vendee Mortgage Trust Series2011-1 Class DA		3.75			2-15-2035		855,963		867,124

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

18  |  Wells Fargo Short-Term Bond Fund

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Non-Agency Mortgage-Backed Securities (continued)
Verus Securitization Trust Series2019-1 Class A1 144A±±		3.40	%		12-25-2059	$	1,844,348	$	1,861,400
Wilshire Funding Corporation Series1996-3 Class M2±±		7.07			8-25-2032		81,108		79,708
Wilshire Funding Corporation Series1996-3 Class M3±±	��	7.07			8-25-2032		83,832		81,227
Wilshire Funding Corporation Series1998-2 Class M1±±		2.00			12-28-2037		8,615		8,695
TotalNon-Agency Mortgage-Backed Securities (Cost $91,791,637)									91,946,542
U.S. Treasury Securities: 0.36%
U.S. Treasury Note		2.50			1-15-2022		1,545,000		1,581,271
Total U.S. Treasury Securities (Cost $1,544,022)									1,581,271
Yankee Corporate Bonds and Notes: 15.60%
Communication Services: 0.55%
Interactive Media & Services: 0.55%
Tencent Holdings Limited 144A		3.28			4-11-2024		2,310,000		2,392,905
Consumer Discretionary: 0.68%
Auto Components: 0.58%
Toyota Industries Corporation 144A		3.11			3-12-2022		2,460,000		2,510,362
Automobiles: 0.10%
Jaguar Land Rover Limited 144A		4.25			11-15-2019		445,000		443,443
Energy: 0.23%
Oil, Gas & Consumable Fuels: 0.23%
Petroleos Mexicanos Company		5.38			3-13-2022		995,000		1,017,388
Financials: 11.64%
Banks: 9.90%
Banco de Credito del Peru 144A		2.25			10-25-2019		1,500,000		1,499,265
Banco Internacional del Peru 144A«		3.38			1-18-2023		1,305,000		1,318,050
Banco Santander SA 144A		4.13			11-9-2022		2,095,000		2,170,944
Banque Federative du Credit Mutuel SA 144A		2.20			7-20-2020		2,530,000		2,533,789
Commonwealth Bank of Australia 144A		1.75			11-7-2019		1,750,000		1,748,605
Cooperatieve Rabobank U.A.		2.75			1-10-2022		3,000,000		3,053,606
Corporación Andina de Fomento		2.13			9-27-2021		3,000,000		2,991,360
Credit Suisse Group Funding Limited		3.13			12-10-2020		2,110,000		2,133,682
Danske Bank AS 144A		1.65			9-6-2019		3,000,000		2,999,890
Danske Bank AS 144A		5.00			1-12-2022		1,405,000		1,481,800
Global Bank Corporation 144A		4.50			10-20-2021		470,000		483,630
Macquarie Bank Limited 144A		2.85			7-29-2020		3,000,000		3,017,929
Mitsubishi UFJ Trust and Banking Corporation 144A		2.45			10-16-2019		3,000,000		3,000,552
Mizuho Financial Group 144A		2.63			4-12-2021		1,000,000		1,006,062
Nordea Bank AB 144A		3.75			8-30-2023		2,000,000		2,102,722
Santander UK plc		3.40			6-1-2021		2,000,000		2,041,429
Sumitomo Mitsui Financial Group		2.70			7-16-2024		2,510,000		2,552,916
Sumitomo Mitsui Financial Group (3 Month LIBOR +0.80%)±		3.12			10-16-2023		2,000,000		2,005,186
Svenska Handelsbanken AB		1.88			9-7-2021		2,500,000		2,490,364
UniCredit SpA 144A		6.57			1-14-2022		2,220,000		2,387,137
									43,018,918

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

Wells Fargo Short-Term Bond Fund  |  19

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Diversified Financial Services: 1.24%
AerCap Ireland Capital DAC		4.45	%		12-16-2021	$	1,410,000	$	1,465,141
Enel Finance International NV 144A		4.25			9-14-2023		2,500,000		2,659,236
UBS AG 144A		2.20			6-8-2020		1,275,000		1,275,578
									5,399,955
Insurance: 0.50%
Sompo International Holdings Limited		4.70			10-15-2022		2,058,000		2,149,937
Health Care: 0.78%
Pharmaceuticals: 0.78%
Perrigo Company plc		4.00			11-15-2023		323,000		330,052
Perrigo Finance Unlimited Company		3.50			3-15-2021		1,065,000		1,070,695
Shire Acquisitions Investment Ireland Limited		1.90			9-23-2019		1,010,000		1,009,778
Shire Acquisitions Investment Ireland Limited		2.40			9-23-2021		980,000		983,038
									3,393,563
Industrials: 0.56%
Semiconductors & Semiconductor Equipment: 0.14%
NXP BV 144A		4.13			6-1-2021		585,000		600,342
Transportation Infrastructure: 0.42%
Asciano Finance Limited 144A		4.63			9-23-2020		1,821,000		1,856,793
Materials: 1.16%
Chemicals: 0.48%
Syngenta Finance NV 144A		4.44			4-24-2023		2,000,000		2,095,608
Containers & Packaging: 0.36%
Ardagh Packaging Finance plc 144A		4.63			5-15-2023		1,500,000		1,535,190
Metals & Mining: 0.32%
ArcelorMittal SA		5.50			3-1-2021		1,340,000		1,398,078
Total Yankee Corporate Bonds and Notes (Cost $66,370,559)									67,812,482
	Yield					Shares
Short-Term Investments: 2.73%
Investment Companies: 2.59%
Securities Lending Cash Investments LLC (l)(r)(u)		2.24					1,285,334		1,285,463
Wells Fargo Government Money Market Fund Select Class (l)(u)		2.04					9,958,213		9,958,213
									11,243,676
						Principal
U.S. Treasury Securities: 0.14%
U.S. Treasury Bill #(z)		1.65			9-12-2019	$	625,000		624,709
Total Short-Term Investments (Cost $11,868,331)									11,868,385

Total investments in securities (Cost $426,664,704)	99.42	%		432,055,443
Other assets and liabilities, net	0.58			2,538,130
Total net assets	100.00	%	$	434,593,573

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

20  |  Wells Fargo Short-Term Bond Fund

Portfolio of investments—August 31, 2019

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.

(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.

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

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

(r) The investment is anon-registered investment company purchased with cash collateral received from securities on loan.

(u) The rate represents the7-day annualized yield at period end.

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

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

Abbreviations:

AGM Assured Guaranty Municipal

Ambac Ambac Financial Group Incorporated

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

IDA Industrial Development Authority

LIBOR London Interbank Offered Rate

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		870		12-31-2019	$	187,833,735		$	188,021,953		$	188,218	$	0
Short
5-Year U.S. Treasury Notes		(281)		12-31-2019		(33,756,350	)		(33,713,414	)		42,936		0
											$	231,154	$	0

Investments in Affiliates

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

	Shares, beginning of period		Shares purchased		Shares sold		Shares, end of period		Net realized gains (losses)		Net change in unrealized gains (losses)		Income from affiliated securities			Value, end of period		% of net assets
Short-Term Investments
Investment Companies
Securities Lending Cash Investments LLC		0		9,154,801		7,869,467		1,285,334	$	10	$	0	$	17,292	#	$	1,285,463
Wells Fargo Government Money Market Fund Select Class		14,823,405		189,290,975		194,156,167		9,958,213		0		0		409,347			9,958,213
									$	10	$	0	$	426,639		$	11,243,676		2.59	%

^#  Amount shown represents income before fees and rebates.

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

Wells Fargo Short-Term Bond Fund  |  21

Statement of assets and liabilities—August 31, 2019

Assets
Investments in unaffiliated securities (including $1,259,598 of securities loaned), at value (cost $415,421,028)	$	420,811,767
Investments in affiliated securities, at value (cost $11,243,676)		11,243,676
Cash		1,445,468
Principal paydown receivable		4,664
Receivable for Fund shares sold		520,212
Receivable for interest		2,620,293
Receivable for daily variation margin on open futures contracts		55,587
Receivable for securities lending income, net		301
Prepaid expenses and other assets		38,792
Total assets		436,740,760
Liabilities
Payable upon receipt of securities loaned		1,285,389
Payable for Fund shares redeemed		322,186
Dividends payable		237,803
Management fee payable		112,137
Custodian and accounting fees payable		58,894
Administration fees payable		42,723
Distribution fee payable		4,477
Trustees’ fees and expenses payable		4,032
Accrued expenses and other liabilities		79,546
Total liabilities		2,147,187
Total net assets	$	434,593,573
Net assets consist of
Paid-in capital	$	431,053,004
Total distributable earnings		3,540,569
Total net assets	$	434,593,573
Computation of net asset value and offering price per share
Net assets – Class A	$	170,345,438
Shares outstanding – Class A1		19,274,610
Net asset value per share – Class A		$8.84
Maximum offering price per share – Class A2		$9.02
Net assets – Class C	$	7,146,270
Shares outstanding – Class C1		809,517
Net asset value per share – Class C		$8.83
Net assets – Class R6	$	30,584,941
Shares outstanding – Class R61		3,462,649
Net asset value per share – Class R6		$8.83
Net assets – Institutional Class	$	226,516,924
Shares outstanding – Institutional Class1		25,619,554
Net asset value per share – Institutional Class		$8.84

¹  The Fund has an unlimited number of authorized shares.

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

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

22  |  Wells Fargo Short-Term Bond Fund

Statement of operations—year ended August 31, 2019

Investment income
Interest	$	12,485,728
Income from affiliated securities		411,479
Total investment income		12,897,207
Expenses
Management fee		1,478,011
Administration fees
Class A		274,215
Class C		12,292
Class R6		7,907
Institutional Class		173,491
Shareholder servicing fees
Class A		428,461
Class C		19,207
Distribution fee
Class C		57,620
Custody and accounting fees		41,787
Professional fees		54,403
Registration fees		69,808
Shareholder report expenses		55,845
Trustees’ fees and expenses		21,592
Other fees and expenses		10,972
Total expenses		2,705,611
Less: Fee waivers and/or expense reimbursements
Fund-level		(167,765	)
Class A		(103,572	)
Class C		(4,653	)
Institutional Class		(1,746	)
Net expenses		2,427,875
Net investment income		10,469,332
Realized and unrealized gains (losses) on investments
Net realized gains (losses) on
Unaffiliated securities		(54,880	)
Affiliated securities		10
Futures contracts		1,043,042
Net realized gains on investments		988,172
Net change in unrealized gains (losses) on
Unaffiliated securities		8,047,573
Futures contracts		221,324
Net change in unrealized gains (losses) on investments		8,268,897
Net realized and unrealized gains (losses) on investments		9,257,069
Net increase in net assets resulting from operations	$	19,726,401

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

Wells Fargo Short-Term Bond Fund  |  23

Statement of changes in net assets

	Year ended August 31, 2019						Year ended August 31, 20181
Operations
Net investment income				$	10,469,332					$	8,088,723
Net realized gains (losses) on investments					988,172						(2,019,738	)
Net change in unrealized gains (losses) on investments					8,268,897						(4,384,603	)
Net increase in net assets resulting from operations					19,726,401						1,684,382
Distributions to shareholders from net investment income and net realized gains
Class A					(3,992,982	)					(3,469,175	)
Class C					(120,972	)					(90,525	)
Class R6					(713,351	)					(4,529	)2
Institutional Class					(5,643,042	)					(4,526,238	)
Total distributions to shareholders					(10,470,347	)					(8,090,467	)
		Shares						Shares
Capital share transactions
Proceeds from shares sold
Class A		2,223,647			19,328,602			2,950,320			25,683,232
Class C		271,321			2,363,056			199,067			1,725,463
Class R6		5,013,680			43,272,366			295,683	2		2,557,641	2
Institutional Class		10,058,620			87,525,507			9,805,488			85,201,932
					152,489,531						115,168,268
Reinvestment of distributions
Class A		431,307			3,760,725			376,379			3,266,179
Class C		11,990			104,366			8,860			76,773
Class R6		421			3,677			517	2		4,475	2
Institutional Class		465,911			4,065,263			346,975			3,011,667
					7,934,031						6,359,094
Payment for shares redeemed
Class A		(4,443,303	)		(38,566,762	)		(8,005,429	)		(69,532,343	)
Class C		(467,871	)		(4,067,578	)		(510,548	)		(4,431,866	)
Class R6		(1,846,341	)		(16,085,357	)		(1,311	)2		(11,344	)2
Institutional Class		(11,098,501	)		(96,341,169	)		(10,231,298	)		(88,878,420	)
					(155,060,866	)					(162,853,973	)
Net increase (decrease) in net assets resulting from capital share transactions					5,362,696						(41,326,611	)
Total increase (decrease) in net assets					14,618,750						(47,732,696	)
Net assets
Beginning of period					419,974,823						467,707,519
End of period				$	434,593,573					$	419,974,823

¹  Effective for all filings after November 4, 2018, the SEC prospectively eliminated the requirement to parenthetically disclose undistributed net investment income at the end of the period and permitted the aggregation of distributions, with the exception of tax basis returns of capital. Undistributed net investment income at August 31, 2018 was $37,877. The disaggregated distributions information for the year ended August 31, 2018 is included in Note 9,Distributions to Shareholders, in the notes to the financial statements.

²  For the period from July 31, 2018 (commencement of class operations) to August 31, 2018

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

24  |  Wells Fargo Short-Term Bond Fund

Financial highlights

(For a share outstanding throughout each period)

	Year ended August 31
CLASS A	2019			2018			2017			2016			2015
Net asset value, beginning of period		$8.65			$8.77			$8.78			$8.77			$8.82
Net investment income		0.20			0.15			0.12			0.11			0.09
Net realized and unrealized gains (losses) on investments		0.19			(0.12	)		(0.01	)		0.04			(0.03	)
Total from investment operations		0.39			0.03			0.11			0.15			0.06
Distributions to shareholders from
Net investment income		(0.20	)		(0.15	)		(0.12	)		(0.11	)		(0.09	)
Net realized gains		0.00			0.00			0.00			(0.03	)		(0.02	)
Total distributions to shareholders		(0.20	)		(0.15	)		(0.12	)		(0.14	)		(0.11	)
Net asset value, end of period		$8.84			$8.65			$8.77			$8.78			$8.77
Total return1		4.60	%		0.31	%		1.25	%		1.77	%		0.66	%
Ratios to average net assets (annualized)
Gross expenses		0.82	%		0.82	%		0.81	%		0.81	%		0.80	%
Net expenses		0.72	%		0.72	%		0.72	%		0.72	%		0.74	%
Net investment income		2.33	%		1.68	%		1.35	%		1.29	%		1.00	%
Supplemental data
Portfolio turnover rate		43	%		43	%		50	%		59	%		57	%
Net assets, end of period (000s omitted)		$170,345			$182,179			$225,797			$278,802			$65,454

¹  Total return calculations do not include any sales charges.

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

Wells Fargo Short-Term Bond Fund  |  25

Financial highlights

(For a share outstanding throughout each period)

	Year ended August 31
CLASS C	2019			2018			2017			2016			2015
Net asset value, beginning of period		$8.64			$8.76			$8.77			$8.76			$8.81
Net investment income		0.14			0.08			0.05			0.05			0.02
Net realized and unrealized gains (losses) on investments		0.19			(0.12	)		(0.01	)		0.04			(0.03	)
Total from investment operations		0.33			(0.04	)		0.04			0.09			(0.01	)
Distributions to shareholders from
Net investment income		(0.14	)		(0.08	)		(0.05	)		(0.05	)		(0.02	)
Net realized gains		0.00			0.00			0.00			(0.03	)		(0.02	)
Total distributions to shareholders		(0.14	)		(0.08	)		(0.05	)		(0.08	)		(0.04	)
Net asset value, end of period		$8.83			$8.64			$8.76			$8.77			$8.76
Total return1		3.82	%		(0.44	)%		0.49	%		1.01	%		(0.09	)%
Ratios to average net assets (annualized)
Gross expenses		1.57	%		1.57	%		1.56	%		1.56	%		1.55	%
Net expenses		1.47	%		1.47	%		1.47	%		1.47	%		1.49	%
Net investment income		1.57	%		0.93	%		0.61	%		0.53	%		0.25	%
Supplemental data
Portfolio turnover rate		43	%		43	%		50	%		59	%		57	%
Net assets, end of period (000s omitted)		$7,146			$8,588			$11,361			$14,204			$11,508

¹  Total return calculations do not include any sales charges.

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 R6	2019			20181
Net asset value, beginning of period		$8.66			$8.64
Net investment income		0.23			0.02	2
Net realized and unrealized gains (losses) on investments		0.17			0.02
Total from investment operations		0.40			0.04
Distributions to shareholders from
Net investment income		(0.23	)		(0.02	)
Net asset value, end of period		$8.83			$8.66
Total return3		4.69	%		0.42	%
Ratios to average net assets (annualized)
Gross expenses		0.44	%		0.44	%
Net expenses		0.40	%		0.40	%
Net investment income		2.71	%		2.24	%
Supplemental data
Portfolio turnover rate		43	%		43	%
Net assets, end of period (000s omitted)		$30,585			$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

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

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

Wells Fargo Short-Term Bond Fund  |  27

Financial highlights

(For a share outstanding throughout each period)

	Year ended August 31
INSTITUTIONAL CLASS	2019			2018			2017			2016			2015
Net asset value, beginning of period		$8.65			$8.78			$8.79			$8.77			$8.83
Net investment income		0.23			0.17			0.14			0.13			0.11
Net realized and unrealized gains (losses) on investments		0.19			(0.13	)		(0.01	)		0.05			(0.04	)
Total from investment operations		0.42			0.04			0.13			0.18			0.07
Distributions to shareholders from
Net investment income		(0.23	)		(0.17	)		(0.14	)		(0.13	)		(0.11	)
Net realized gains		0.00			0.00			0.00			(0.03	)		(0.02	)
Total distributions to shareholders		(0.23	)		(0.17	)		(0.14	)		(0.16	)		(0.13	)
Net asset value, end of period		$8.84			$8.65			$8.78			$8.79			$8.77
Total return		4.88	%		0.46	%		1.49	%		2.14	%		0.82	%
Ratios to average net assets (annualized)
Gross expenses		0.49	%		0.49	%		0.48	%		0.48	%		0.47	%
Net expenses		0.45	%		0.46	%		0.48	%		0.48	%		0.47	%
Net investment income		2.60	%		1.95	%		1.59	%		1.51	%		1.26	%
Supplemental data
Portfolio turnover rate		43	%		43	%		50	%		59	%		57	%
Net assets, end of period (000s omitted)		$226,517			$226,655			$230,549			$252,961			$306,832

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

28  |  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 anopen-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 (e.g. taking into account various factors, including yields, maturities, or credit ratings) 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 registeredopen-end investment companies are valued at net asset value. Interests innon-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.

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. When securities are on loan, the Fund receives interest or dividends on those securities. Cash collateral received in connection with its securities lending transactions is invested in Securities Lending Cash Investments, LLC (the “Securities Lending Fund”). Investments in Securities Lending Fund are valued at the evaluated bid price provided by an independent pricing service. Income earned from investment in the Securities Lending Fund (net of fees and rebates), if any, is included in income from affiliated securities on the Statement of Operations.

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. The Fund has the right under the lending agreement to recover the securities from the borrower on demand. 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 such an event, the terms of the agreement allows the unaffiliated securities lending agent to use the collateral to purchase replacement securities on behalf of the Fund or pay the Fund the market value of the loaned securities. The Fund will bear the risk of loss with respect to depreciation of its investment of the cash collateral.

Futures contracts

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 a 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 is subject to interest rate risk. The primary risks

Wells Fargo Short-Term Bond Fund  |  29

Notes to financial statements

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 the 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 onnon-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 fromnon-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 theex-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, 2019, the aggregate cost of all investments for federal income tax purposes was $426,950,764 and the unrealized gains (losses) consisted of:

Gross unrealized gains	$	5,667,338
Gross unrealized losses		(331,505	)
Net unrealized gains	$	5,335,833

As of August 31, 2019, the Fund had capital loss carryforwards which consist of $209,263 in short-term capital losses and $1,720,034 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 fund-level 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.

30  |  Wells Fargo Short-Term Bond Fund

Notes to financial statements

3. FAIR VALUATION MEASUREMENTS

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

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

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

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

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

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of August 31, 2019:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Agency securities	$	0	$	19,372,467	$	0	$	19,372,467
Asset-backed securities		0		52,620,358		0		52,620,358
Corporate bonds and notes		0		180,745,967		0		180,745,967
Municipal obligations		0		6,107,971		0		6,107,971
Non-agency mortgage-backed securities		0		91,946,542		0		91,946,542
U.S. Treasury securities		1,581,271		0		0		1,581,271
Yankee corporate bonds and notes		0		67,812,482		0		67,812,482
Short-term investments
Investment companies		11,243,676		0		0		11,243,676
U.S. Treasury securities		624,709		0		0		624,709
		13,449,656		418,605,787		0		432,055,443
Futures contracts		231,154		0		0		231,154
Total assets	$	13,680,810	$	418,605,787	$	0	$	432,286,597

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.

For the year ended August 31, 2019, the Fund did not have any transfers into/out of 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

Wells Fargo Short-Term Bond Fund  |  31

Notes to financial statements

connection with the Fund’s operations. As compensation for its services under the investment management agreement, Funds Management is entitled to receive a management fee at the following annual rate based on the Fund’s average daily net assets:

Average daily net assets	Management fee
First $1 billion	0.350%
Next $4 billion	0.325
Next $3 billion	0.290
Next $2 billion	0.265
Over $10 billion	0.255

For the year ended August 31, 2019, 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 (“WellsCap”), 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
Institutional Class		0.08

Waivers and/or expense reimbursements

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. When only certain classes exceed their expense caps, waivers and/or reimbursements are applied against class specific expenses before fund-level expenses. Funds Management has committed through December 31, 2019 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. Prior to or after the commitment expiration date, 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 Rule12b-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 thefront-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, 2019, Funds Distributor received $311 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, 2019.

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.

32  |  Wells Fargo Short-Term Bond Fund

Notes to financial statements

Interfund transactions

The Fund may purchase or sell portfolio investment securities to certain other Wells Fargo affiliates pursuant to Rule17a-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, 2019 were as follows:

Purchases at cost		Sales proceeds
U.S. government	Non-U.S. government	U.S. government	Non-U.S. government
$6,653,434	$249,441,965	$4,313,219	$167,541,977

6. SECURITIES LENDING TRANSACTIONS

The Fund lends its securities through an unaffiliated securities lending agent and 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 increases or decreases in the required collateral are exchanged between the Fund and the counterparty on the next business day. Cash collateral received is invested in the Securities Lending Fund which 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 and is exempt from registration under Section 3(c)(7) of the 1940 Act. Securities Lending Fund is managed by Funds Management and is subadvised by WellsCap. 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.

In the event of counterparty default or the failure of a borrower to return a loaned security, the Fund has the right to use the collateral to offset any losses incurred. As of August 31, 2019, the Fund had securities lending transactions with the following counterparties which are subject to offset:

Counterparty	Value of securities on loan	Collateral received1	Net amount
Barclays Capital Inc.	$1,259,598	$(1,259,598)	$	0

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

7. DERIVATIVE TRANSACTIONS

During the year ended August 31, 2019, 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 $170,819,980 in long futures contracts and $29,364,082 in short futures contracts during the year ended August 31, 2019.

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

8. 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, 2019, there were no borrowings by the Fund under the agreement.

9. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid was $10,470,347 and $8,090,467 of ordinary income for the years ended August 31, 2019 and August 31, 2018, respectively.

Wells Fargo Short-Term Bond Fund  |  33

Notes to financial statements

As of August 31, 2019, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Unrealized gains	Capital loss carryforward
$371,836	$5,335,833	$(1,929,297)

Effective for all filings after November 4, 2018, the Securities and Exchange Commission eliminated the requirement to separately state the components of distributions to shareholders under U.S. generally accepted accounting principles. The amounts of distributions to shareholders for the year ended August 31, 2018 were as follows:

	Net investment income
Class A		$3,469,175
Class C		90,525
Class R6		4,529	1
Institutional Class		4,526,238

¹  For the period from July 31, 2018 (commencement of class operations) to August 31, 2018.

10. INDEMNIFICATION

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

11. NEW ACCOUNTING PRONOUNCEMENTS

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. ASU2018-13 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 has adopted the removal and modification of disclosures early, as permitted, and will adopt the additional new disclosures at the effective date.

In March 2017, FASB issued ASUNo. 2017-08,Premium Amortization on Purchased Callable Debt Securities. ASU2017-08

shortens the amortization period for certain callable debt securities held at a premium and requires the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount and discounts will continue to be accreted to the maturity date of the security. ASU2017-08 is effective for fiscal years beginning after December 15, 2018 and for interim periods within those fiscal years. During the current reporting period, management of the Fund adopted the change in accounting policy which did not have a material impact to the Fund’s financial statements.

34  |  Wells Fargo Short-Term Bond Fund

Report of independent registered public accounting firm

TO THE SHAREHOLDERS OF THE FUND AND BOARD OF TRUSTEES 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), one of the funds constituting Wells Fargo Funds Trust, including the portfolio of investments, as of August 31, 2019, 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, 2019, 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, 2019, by correspondence with the custodian, transfer agent and brokers. 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 28, 2019

Wells Fargo Short-Term Bond Fund  |  35

Other information (unaudited)

TAX INFORMATION

For the fiscal year ended August 31, 2019, $8,156,126 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 used to determine how to vote proxies relating to portfolio securities is available, upon request, by calling1-800-222-8222, visiting our website atwfam.com, or visiting the SEC website at sec.gov. Information regarding how the proxies related to portfolio securities were voted during the most recent12-month period ended June 30 is available on the website atwfam.comor by visiting the SEC website at sec.gov.

QUARTERLY PORTFOLIO HOLDINGS INFORMATION

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 or FormN-PORT, which is available by visiting the SEC website at sec.gov. Those forms may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling1-800-SEC-0330.

36  |  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 152 mutual funds comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and fourclosed-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. Audit Committee Chair and Investment Committee Chair of the Vincent Memorial Hospital Endowment(non-profit organization). 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; Audit Committee Chairman, since 2019	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, from 2009 to 2018	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

Wells Fargo Short-Term Bond Fund  |  37

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
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
Olivia S. Mitchell (Born 1953)	Trustee, since 2006; Nominating and 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	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, anon-profit organization, since 2007. Member of the Board of Trustees of NorthStar Education Finance, Inc., anon-profit organization, since 2007.	N/A
James G. Polisson (Born 1959)	Trustee, since 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, anon-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

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

38  |  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.
Michelle Rhee3 (Born 1966)	Chief Legal Officer, since 2019	Secretary of Wells Fargo Funds Management, LLC, Chief Legal Counsel of Wells Fargo Asset Management and Assistant General Counsel of Wells Fargo Bank, N.A. since 2018. Associate General Counsel and Managing Director of Bank of America Corporation from 2004 to 2018.
Catherine Kennedy4 (Born 1969)	Secretary, since 2019	Vice President of Wells Fargo Funds Management, LLC and Senior Counsel of the Wells Fargo Legal Department since 2010. Vice President and Senior Counsel of Evergreen Investment Management Company, LLC from 1998 to 2010.
Michael H. Whitaker(Born 1967)	Chief Compliance Officer, since 2016	Chief Compliance Officer of Wells Fargo Asset Management 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 65 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 87 funds and Assistant Treasurer of 65 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 calling1-800-222-8222 or by visiting the website atwfam.com.

³  Michelle Rhee became Chief Legal Officer effective October 22, 2019.

⁴  Catherine Kennedy became Secretary effective October 22, 2019.

Wells Fargo Short-Term Bond Fund  |  39

Other information (unaudited)

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT ANDSUB-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 andsub-advisory agreements. In this regard, at anin-person meeting held on May21-22, 2019 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management andsub-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 investmentsub-advisory agreement (the“Sub-Advisory Agreement”) with Wells Capital Management Incorporated (the“Sub-Adviser”), an affiliate of Funds Management. The Management Agreement and theSub-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 theSub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at anin-person meeting in April 2019, 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 asub-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 theSub-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 2019. 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 theSub-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 wasall-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 aone-year term and determined that the compensation payable to Funds Management and theSub-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 afund-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 theSub-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 theSub-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 theSub-Adviser, and a description of Funds Management’s and theSub-Adviser’s business continuity planning programs and of their approaches to data privacy and cybersecurity. The Board received and reviewed information about Funds Management’s role as administrator of the Fund’s liquidity risk management program. The Board also considered the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for theday-to-day portfolio management of the Fund.

The Board evaluated the ability of Funds Management and theSub-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 theSub-Adviser. In addition, the Board took into account the full range of services provided to the Fund by Funds Management and its affiliates.

40  |  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, 2018. 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 in range of or higher than the average investment performance of the Universe for theone-, five- andten-year periods under review, but lower than the average investment performance of the Universe for the three-year period under review. The Board also noted that the investment performance of the Fund was lower than its benchmark index, the Bloomberg Barclays U.S.1-3 Year Government/Credit Bond Index, for theone-year period under review, but higher than its benchmark for the three-, five- andten-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 market factors that affected the Fund’s investment performance. The Board also took note of the Fund’s outperformance relative to the benchmark over the longer time 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 othernon-management fees, and Rule12b-1 andnon-Rule12b-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 fromyear-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 tore-approve the Advisory Agreements.

Investment management andsub-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 andsub-transfer agency costs (collectively, the “Management Rates”). The Board also reviewed and considered the contractual investmentsub-advisory fee rates that are payable by Funds Management to theSub-Adviser for investmentsub-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 theSub-Adviser forsub-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 theSub-Adviser, and about Funds Management’son-going oversight services. Given the affiliation between Funds Management and theSub-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 theSub-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 proprietary mutual funds compared with those associated with managing assets of other types of clients, including third-partysub-advised fund clients andnon-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 theSub-Adviser under theSub-Advisory Agreement was reasonable.

Wells Fargo Short-Term Bond Fund  |  41

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”) from providing services to the fund family as a whole. The Board noted that theSub-Adviser’s profitability information with respect to providing services to the Fund and other funds in the family 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. Among other things, the Board noted that the levels of profitability reported on afund-by-fund basis varied widely, depending on factors such as the size, type and age 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 received and considered information about the potential for Funds Management to experience economies of scale in the provision of management services to the Fund, the difficulties of calculating economies of scale at an individual fund level, and the extent to which potential scale benefits are shared with shareholders. 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. The Board considered that in addition to management fee breakpoints, Funds Management shares potential economies of scale from its management business in a variety of ways, including through fee waiver and expense reimbursement arrangements, services that benefit shareholders, competitive management fee rates set at the outset without regard to breakpoints, and investments in the business intended to enhance services available to shareholders.

The Board concluded that Funds Management’s arrangements with respect to the Fund, 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 theSub-Adviser

The Board received and considered information regarding potential“fall-out” or ancillary benefits received by Funds Management and its affiliates, including theSub-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 theSub-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 andsub-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 theSub-Adviser, fees earned by Funds Management and theSub-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 theSub-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 aone-year term and determined that the compensation payable to Funds Management and theSub-Adviser under each of the Advisory Agreements was reasonable.

42  |  Wells Fargo Short-Term Bond Fund

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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:wfam.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, call1-800-222-8222 or visit the Fund’s website atwfam.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.

INVESTMENT PRODUCTS: NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

© 2019 Wells Fargo Funds Management, LLC. All rights reserved.

405807 10-19

A221/AR221 08-19

Annual Report

August 31, 2019

Wells Fargo

Short-Term High Yield Bond Fund

Beginning on January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, paper copies of the Wells Fargo Funds’ annual and semi-annual shareholder reports issued after this date will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Funds’ website, and you will be notified by mail each time a report is posted and provided with a website address to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling1-800-222-8222 or by enrolling at wellsfargo.com/advantagedelivery.

You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports; if you invest directly with the Fund, you can call 1-800-222-8222. Your election to receive reports in paper will apply to all Wells Fargo Funds held in your account with your financial intermediary or, if you are a direct investor, to all Wells Fargo Funds that you hold.

Contents

Letter to shareholders	2
Performance highlights	6
Fund expenses	10
Portfolio of investments	11
Financial statements
Statement of assets and liabilities	18
Statement of operations	19
Statement of changes in net assets	20
Financial highlights	21
Notes to financial statements	25
Report of independent registered public accounting firm	31
Other information	32

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Save trees.

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The views expressed and any forward-looking statements are as of August 31, 2019, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Asset Management. 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 Asset Management and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

INVESTMENT PRODUCTS: NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾  MAY LOSE VALUE

Wells Fargo Short-Term High Yield Bond Fund  |  1

Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

Dear Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Short-Term High Yield Bond Fund for the 12-month period that ended August 31, 2019. After the first half of the period yielded either low-single-digit or negative investment returns, U.S. stock and global bond investors generally saw markets recover during the second half amid intensifying market volatility, global economic growth concerns, international trade staredowns, and simmering geopolitical tensions.

Overall, fixed-income investors enjoyed a distinct advantage over stock investors. For the period, U.S. stocks, based on the S&P 500 Index,¹ gained 2.92% and international stocks, as measured by the MSCI ACWI ex USA Index (Net),² fell 3.27%. The MSCI EM Index (Net)³ slipped 4.36%. Among fixed income investors, the Bloomberg Barclays U.S. Aggregate Bond Index⁴ added 10.17%, the Bloomberg Barclays Global Aggregate ex-USD Index⁵ added 5.71%, the Bloomberg Barclays Municipal Bond Index⁶ gained 8.72%, and the ICE BofAML U.S. High Yield Index⁷ added 6.58%.

Entering the fourth quarter of 2018, economic data was encouraging.

Entering the fourth quarter of 2018, there were reasons for investors to be optimistic. The U.S. Bureau of Economic Analysis reported U.S. gross domestic product (GDP) grew 4.2% on an annualized basis during the second quarter. Hiring improved. Unemployment declined. Consumer spending gained. Third-quarter corporate earnings reports were generally positive. U.S. trade negotiations with Mexico and Canada advanced. In September 2018, the U.S. Federal Reserve (Fed) raised the federal funds rate by 25 basis points (bps; 100 bps equal 1.00%) to a target range of between 2.00% and 2.25% in an indication of its confidence that U.S. economic growth was sustainable.

International markets presented numerous challenges. U.S.-China trade tensions increased. The U.S. imposed $200 billion in tariffs on Chinese goods. China reacted with $60 billion in tariffs on U.S. goods. Economic growth in China caused concern. In September 2018, international investors began to factor in a number of disconcerting economic and business data points: lower July manufacturing and industrial orders in Germany; declining purchasing managers’ index numbers for August from the United Kingdom, China, and India; and declining household spending for August in Japan. Taken together, the data fed growing concerns that global economic growth was slowing.

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 and emerging markets, excluding the U.S. 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 the equity market performance of emerging markets. 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 2019. ICE Data Indices, LLC. All rights reserved.

2  |  Wells Fargo Short-Term High Yield Bond Fund

Letter to shareholders (unaudited)

Investors had to digest unsettling events during the fourth quarter of 2018.

November’s U.S. midterm elections shifted control of the House of Representatives from Republicans to Democrats, presaging partisan clashes that followed and caused uncertainty among investors. A partial U.S. government shutdown driven by partisan policy disputes extended into January 2019. Third-quarter U.S. GDP was announced at an annualized 3.4% rate, lower than the second-quarter rate. Brexit efforts stalled. The value of the renminbi declined even as the People’s Bank of China cut reserve requirement ratios, accelerated infrastructure spending, and cut taxes in efforts to spur economic activity.

The combination of news in the U.S. and generally weak economic indicators outside of the U.S. caused investors to seek safe havens. December’s S&P 500 Index performance was the worst since 1931. Globally, fixed-income investments fared better than stocks during the last two months of the year. The Fed increased the federal funds rate by 25 bps in December 2018 to a target range of between 2.25% and 2.50% even as observers expressed concerns that higher rates could slow the economy.

The market climbs a wall of worry.

Investment returns appeared to reaffirm the adage that markets climb a wall of worry as 2019 opened. Following its December decline, the S&P 500 Index gained 8.01% for the month of January, the best monthly performance in 30 years. Returns for the MSCI ACWI ex USA Index (Net), the Bloomberg Barclays U.S. Aggregate Bond Index, and the Bloomberg Barclays Global Aggregate ex-USD Index also were positive.

In February 2019, signs of slowing global growth grew more ominous. The Bureau of Economic Analysis announced fourth-quarter 2018 GDP grew at an annualized 2.2% rate, down from the levels of the prior two quarters. In a February report, the Bank of England forecast the slowest growth for 2019 since the financial crisis. China and the U.S. continued to wrangle over trade issues. By the end of the first quarter of 2019, more accommodative Fed sentiment and steady, if not spectacular, U.S. economic and business metrics encouraged domestic investors.

Early second-quarter 2019 enthusiasm among investors faded.

During April 2019, favorable sentiment found additional support in reports of sustained low inflation, solid employment data, and first-quarter U.S. GDP of an annualized rate of 3.2%. During May, markets tumbled on mixed investment signals. In the U.S., partisan wrangling ramped up as Democrats and Republicans set their sights on 2020 presidential politics. The U.K.’s Brexit contretemps caused Prime Minister Theresa May to resign. Boris Johnson succeeded her only to exacerbate uncertainty about Brexit’s resolution ahead of an October 2019 deadline. The European Commission downgraded the 2019 growth forecast to 1.2%. The U.S. increased tariffs on products from China, China responded, and then talks broke down. President Donald Trump threatened to turn his foreign policy tariff tool to Mexico over immigration issues.

During the third quarter of 2019, investors regrouped. Just as the investment horizon appeared to darken, sentiment turned and U.S. equity markets gained during June and July. The gains, primarily driven by geopolitical and monetary policy events, pushed equity markets to new highs. European Central Bank President Mario Draghi said that if the outlook doesn’t improve, the bank would cut rates or buy more assets to prop up inflation. President Trump backed off of tariff threats against Mexico and China. In the U.S., the Fed implemented a 0.25% federal funds rate cut in July.

Later in July, the U.S. reversed course and threatened to impose higher tariffs on China’s exports after talks failed. China responded with tariff threats of its own and

“December’s S&P 500 Index performance was the worst since 1931.”

“Following its December decline, the S&P 500 Index gained 8.01% for the month of January, the best monthly performance in 30 years.”

Wells Fargo Short-Term High Yield Bond Fund  |  3

Letter to shareholders (unaudited)

For further information about your Fund, contact your investment professional, visit our website at wfam.com,

or call us directly at1-800-222-8222.

devalued the renminbi, a move that roiled global markets. Major U.S. stock market indices closed July 2019 with the worst weekly results of the year. Bond prices gained as Treasury yields fell to levels not seen since November 2016 and the yield curve inverted at multiple points along the 30-year arc.

In a microcosm, August 2019 encapsulated many of the unnerving events that plagued investors during the prior 11 months. The U.S.-China trade relationship swung from discouraging to hopeful and back again with no evident compromise on the horizon. Evidence of a continued global economic slowdown continued to mount as central banks in China, New Zealand, and Thailand cut interest rates. Industrial and manufacturing data declined in China, Canada, Japan, and Germany. Adding to the uncertain environment, Italy’s prime minister resigned, many feared a crackdown in Hong Kong as protesters sustained their calls for reform throughout the month, and Boris Johnson planned to suspend Parliament as Brexit’s deadline neared.

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

4  |  Wells Fargo Short-Term High Yield Bond Fund

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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, 2019

		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 (SSTHX)	2-29-2000		1.14		2.09		3.57		4.27	*		2.72		3.88		0.94		0.82
Class C (WFHYX)	3-31-2008		2.49		1.98		3.12		3.49			1.98		3.12		1.69		1.57
Administrator Class (WDHYX)3	7-30-2010		–		–		–		4.44			2.88		4.03		0.88		0.66
Institutional Class (STYIX)4	11-30-2012		–		–		–		4.59			3.06		4.12		0.61		0.51
ICE BofAML High Yield U.S. Corporates, Cash Pay, BB Rated, 1-5 Year Index5	–		–		–		–		7.11			4.58		6.93		–		–

* 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,wfam.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.

6  |  Wells Fargo Short-Term High Yield Bond Fund

Performance highlights (unaudited)

Growth of $10,000 investment as of August 31, 2019⁶

^‡  CFA^® and Chartered Financial Analyst^® are trademarks owned by CFA Institute.

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, 2019, to waive fees and/or reimburse expenses to the extent necessary to cap the expenses of each class after fee waivers at 0.81% for Class A, 1.56% for Class C, 0.65% for Administrator Class, and 0.50% for Institutional Class. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses (if any), and extraordinary expenses are excluded from the expense cap. Prior to or after the commitment expiration date, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Without this cap, the Fund’s returns would have been lower. The expense ratio paid by an investor is the net expense ratio (the total annual fund operating expenses after fee waivers) as stated in the prospectuses.

³  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.

⁴  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.

⁵  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.

⁶  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%.

⁷  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.

⁸  The Personal Consumption Expenditures Index is the primary measure of consumer spending on goods and services in the U.S. economy. It accounts for about two-thirds of domestic final spending and is part of the personal income report issued by the Bureau of Economic Analysis of the Department of Commerce. You cannot invest directly in an index.

⁹  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.

Wells Fargo Short-Term High Yield Bond Fund  |  7

Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

∎ The Fund underperformed its benchmark, the ICE BofAML High Yield U.S. Corporates, Cash Pay, BB Rated, 1–5 Year Index, for the 12-month period that ended August 31, 2019.

∎ The Fund’s conservative positioning relative to the benchmark detracted from performance, as the Fund has a lower yield and shorter duration, both of which detracted during a period when credit spreads ended the period at similar levels to where they started and Treasury rates declined.

∎ The Fund focuses on conservative credit selection and seeks to limit volatility, leading to outperformance relative to the benchmark during the fourth quarter of 2018 when credit spreads widened significantly.

Ten largest holdings (%) as of August 31, 20197
Sirius XM Radio Incorporated, 3.88%, 8-1-2022	1.91
Charter Communications Operating LLC, 4.33%,4-30-2025	1.88
Ally Financial Incorporated, 3.75%, 11-18-2019	1.75
Ineos US Finance LLC, 4.26%, 3-31-2024	1.65
Springleaf Finance Corporation, 7.75%, 10-1-2021	1.57
TerraForm Power Operating LLC, 4.25%, 1-31-2023	1.55
B&G Foods Incorporated, 4.63%, 6-1-2021	1.48
Netflix Incorporated, 5.38%, 2-1-2021	1.46
Teva Pharmaceutical Finance BV, 2.20%, 7-21-2021	1.44
Sinclair Television Group Incorporated, 6.13%,10-1-2022	1.41

An economic slowdown

The pace of gross domestic product growth decelerated over the past 12 months as business investment, inventory effects, and trade restrained overall economic activity. For the four quarters that ended June 30, 2019, the U.S. economy expanded by 2.3% in inflation-adjusted terms, compared with a 3.2% trailing 12-month growth rate at the midway point in 2018. Rising anxiety over the contentious U.S.-China trade relationship appeared to discourage capital investment over the 12-month period that ended August 31, 2019. Housing investment also was a modest drag despite low mortgage rates. Consumer spending held up fairly well, however, with the Personal Consumption Expenditures Index⁸ rising at a 2.7% year-over-year rate through the end of July.

Consumption was supported by a relatively firm labor market. While job growth slowed modestly over the period, wages grew by 3.2% in real terms and the unemployment rate remained below 4%. Measures of labor force participation also generally showed improvement.

In response to slower growth and lower-than-targeted inflation, the Federal Open Market Committee (FOMC) voted to reduce its policy rate target for overnight funds by 0.25% at its July 31 meeting. This was the first interest rate reduction engineered by the FOMC in the decade since the financial crisis. While the monetary authorities suggested that their decision should be seen as a “midcourse correction” rather than the beginning of an extended easing cycle, markets have priced multiple additional rate cuts into the term structure. Indeed, interest rates fell across the board over the past 12 months, with the intermediate-term Treasury yields dropping by about 1.35%.

Credit quality as of August 31, 2019⁹

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 volatile but unchanged over the period. Continued U.S. economic growth, low default rates, and a search for yield combined to create a supportive environment for high-yield spreads. Total returns for the high-yield market were also supported by the reduction in 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 primarily on individual credit selection. Given the end of the FOMC’s rate increases, the three-month London Interbank Offered Rate declined from 2.32% to 2.14% during the period, leading us to reduce our exposure to floating-rate bank loans from 32.6% to 21.3%.

Please see footnotes on page 7.

8  |  Wells Fargo Short-Term High Yield Bond Fund

Performance highlights (unaudited)

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 65% to 75% of the portfolio during the reporting period. The third category consists of floating-rate bank loans.

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 may 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.

Wells Fargo Short-Term High Yield Bond Fund  |  9

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, 2019 to August 31, 2019.

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 3-1-2019		Ending account value 8-31-2019		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,021.93	$	4.13		0.81	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.12	$	4.13		0.81	%
Class C
Actual	$	1,000.00	$	1,019.34	$	7.94		1.56	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.34	$	7.93		1.56	%
Administrator Class
Actual	$	1,000.00	$	1,024.03	$	3.32		0.65	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.93	$	3.31		0.65	%
Institutional Class
Actual	$	1,000.00	$	1,024.81	$	2.55		0.50	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1022.69	$	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, 2019

	Interest rate			Maturity date		Principal		Value
Corporate Bonds and Notes: 63.44%
Communication Services: 11.54%
Diversified Telecommunication Services: 0.36%
Level 3 Financing Incorporated		5.38	%		1-15-2024	$	3,390,000	$	3,449,325
Entertainment: 1.46%
Netflix Incorporated		5.38			2-1-2021		13,445,000		13,915,575
Media: 8.70%
CSC Holdings LLC		6.75			11-15-2021		900,000		972,000
DISH DBS Corporation		7.88			9-1-2019		11,135,000		11,135,000
Lamar Media Corporation		5.00			5-1-2023		5,115,000		5,215,702
National CineMedia LLC		6.00			4-15-2022		10,175,000		10,264,031
Nexstar Broadcasting Group Incorporated		5.88			11-15-2022		1,220,000		1,241,350
Nexstar Broadcasting Group Incorporated 144A		6.13			2-15-2022		11,535,000		11,679,188
Sinclair Television Group Incorporated		6.13			10-1-2022		13,200,000		13,381,500
Sirius XM Radio Incorporated 144A		3.88			8-1-2022		17,870,000		18,182,725
TEGNA Incorporated		5.13			10-15-2019		6,174,000		6,180,791
TEGNA Incorporated		5.13			7-15-2020		4,505,000		4,520,768
									82,773,055
Wireless Telecommunication Services: 1.02%
T-Mobile USA Incorporated «		4.00			4-15-2022		9,442,000		9,719,406
Consumer Discretionary: 8.69%
Auto Components: 0.50%
Allison Transmission Incorporated 144A		5.00			10-1-2024		2,125,000		2,186,306
Cooper Tire & Rubber Company		8.00			12-15-2019		2,568,000		2,600,100
									4,786,406
Distributors: 0.52%
LKQ Corporation		4.75			5-15-2023		4,875,000		4,942,031
Hotels, Restaurants & Leisure: 1.77%
MGM Resorts International		7.75			3-15-2022		3,455,000		3,879,032
NCL Corporation Limited 144A		4.75			12-15-2021		12,741,000		12,932,115
									16,811,147
Household Durables: 1.46%
Lennar Corporation		6.63			5-1-2020		2,485,000		2,551,598
Pulte Group Incorporated		4.25			3-1-2021		11,145,000		11,367,900
									13,919,498
Specialty Retail: 4.44%
Gap Incorporated		5.95			4-12-2021		8,965,000		9,335,782
Group 1 Automotive Incorporated		5.00			6-1-2022		10,865,000		10,973,650
L Brands Incorporated		6.63			4-1-2021		7,805,000		8,214,763
Penske Auto Group Incorporated		3.75			8-15-2020		2,655,000		2,661,638
Penske Auto Group Incorporated		5.75			10-1-2022		10,920,000		11,063,052
									42,248,885

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

Wells Fargo Short-Term High Yield Bond Fund  |  11

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Consumer Staples: 2.63%
Food Products: 1.48%
B&G Foods Incorporated		4.63	%		6-1-2021	$	14,070,000	$	14,115,728
Personal Products: 1.15%
Edgewell Personal Care Company		4.70			5-19-2021		10,774,000		10,962,545
Energy: 6.43%
Oil, Gas & Consumable Fuels: 6.43%
Antero Resources Corporation		5.38			11-1-2021		4,955,000		4,812,544
Archrock Partners LP		6.00			10-1-2022		6,445,000		6,547,798
Crestwood Midstream Partners LP		6.25			4-1-2023		5,620,000		5,718,350
DCP Midstream Operating LP 144A		4.75			9-30-2021		1,515,000		1,552,875
DCP Midstream Operating LP 144A		5.35			3-15-2020		7,943,000		8,038,316
Rockies Express Pipeline LLC 144A		5.63			4-15-2020		3,390,000		3,465,444
Sabine Pass Liquefaction LLC		5.63			2-1-2021		10,000,000		10,346,793
Southern Star Central Corporation 144A		5.13			7-15-2022		11,095,000		11,222,703
Tallgrass Energy Partners LP 144A		4.75			10-1-2023		9,565,000		9,481,306
									61,186,129
Financials: 6.11%
Consumer Finance: 5.44%
Ally Financial Incorporated		3.75			11-18-2019		16,660,000		16,684,990
Ford Motor Credit Company LLC		3.34			3-18-2021		4,840,000		4,871,611
Ford Motor Credit Company LLC		5.60			1-7-2022		4,840,000		5,118,222
Navient Corporation		5.00			10-26-2020		4,950,000		5,067,563
Navient Corporation		8.00			3-25-2020		5,000,000		5,150,000
Springleaf Finance Corporation		7.75			10-1-2021		13,645,000		14,907,163
									51,799,549
Real Estate Management & Development: 0.67%
Realogy Group LLC 144A«		5.25			12-1-2021		6,530,000		6,399,400
Health Care: 6.94%
Health Care Equipment & Supplies: 0.76%
Kinetics Concepts Incorporated 144A		7.88			2-15-2021		7,040,000		7,253,242
Health Care Providers & Services: 6.18%
Acadia Healthcare Company Incorporated		5.13			7-1-2022		7,232,000		7,286,240
Acadia Healthcare Company Incorporated		6.13			3-15-2021		1,618,000		1,622,045
Centene Corporation		4.75			5-15-2022		10,555,000		10,816,447
DaVita HealthCare Partners Incorporated		5.75			8-15-2022		7,755,000		7,833,326
HCA Incorporated		5.88			5-1-2023		4,365,000		4,820,597
MEDNAX Incorporated 144A		5.25			12-1-2023		7,315,000		7,351,575
Molina Healthcare Incorporated		5.38			11-15-2022		6,800,000		7,267,772
Tenet Healthcare Corporation		4.75			6-1-2020		2,825,000		2,873,025
Tenet Healthcare Corporation		6.00			10-1-2020		8,550,000		8,883,450
									58,754,477
Industrials: 4.54%
Aerospace & Defense: 2.34%
Alcoa Incorporated		6.15			8-15-2020		8,830,000		9,129,692
Moog Incorporated 144A		5.25			12-1-2022		12,865,000		13,106,219
									22,235,911

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, 2019

	Interest rate			Maturity date		Principal		Value
Airlines: 1.14%
American Airlines Group Company 144A		5.00	%		6-1-2022	$	5,015,000	$	5,215,600
American Airlines Group Company 144A		5.50			10-1-2019		3,435,000		3,440,153
United Continental Holdings Incorporated		4.25			10-1-2022		2,100,000		2,163,000
									10,818,753
Commercial Services & Supplies: 0.55%
ADT Corporation		6.25			10-15-2021		4,975,000		5,285,938
Construction & Engineering: 0.51%
United Rentals North America Incorporated		4.63			7-15-2023		4,750,000		4,853,906
Information Technology: 3.59%
Software: 1.14%
Symantec Corporation		4.20			9-15-2020		10,675,000		10,829,886
Technology Hardware, Storage & Peripherals: 2.45%
Dell International LLC 144A		5.88			6-15-2021		2,170,000		2,205,866
EMC Corporation		2.65			6-1-2020		11,850,000		11,804,106
NCR Corporation		4.63			2-15-2021		9,333,000		9,333,933
									23,343,905
Materials: 6.31%
Chemicals: 1.01%
Chemours Company		6.63			5-15-2023		9,445,000		9,610,288
Containers & Packaging: 2.36%
Ball Corporation		4.38			12-15-2020		10,425,000		10,659,563
Owens-Brockway Glass Container Incorporated 144A		5.00			1-15-2022		6,910,000		7,074,113
Reynolds Group Holdings		5.75			10-15-2020		4,768,010		4,779,930
									22,513,606
Metals & Mining: 2.94%
Freeport-McMoRan Incorporated		3.55			3-1-2022		8,404,000		8,425,010
Freeport-McMoRan Incorporated		4.00			11-14-2021		6,530,000		6,637,027
Steel Dynamics Incorporated		5.13			10-1-2021		12,883,000		12,918,944
									27,980,981
Real Estate: 4.41%
Equity REITs: 3.47%
CoreCivic Incorporated		4.13			4-1-2020		11,870,000		11,840,325
Equinix Incorporated		5.38			1-1-2022		12,030,000		12,330,750
SBA Communications Corporation		4.00			10-1-2022		2,270,000		2,309,725
SBA Communications Corporation		4.88			7-15-2022		6,460,000		6,560,776
									33,041,576
Real Estate Management & Development: 0.94%
Washington Prime Group Incorporated		3.85			4-1-2020		8,969,000		8,910,971
Utilities: 2.25%
Electric Utilities: 0.28%
NextEra Energy Operating Partners LP 144A		4.25			7-15-2024		2,575,000		2,645,813

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

Wells Fargo Short-Term High Yield Bond Fund  |  13

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Independent Power & Renewable Electricity Producers: 1.97%
TerraForm Power Operating LLC 144A		4.25	%		1-31-2023	$	14,368,000	$	14,722,171
Vistra Energy Corporation		7.63			11-1-2024		3,795,000		4,024,703
									18,746,874
Total Corporate Bonds and Notes (Cost $600,793,367)									603,854,806
Loans: 21.28%
Communication Services: 5.44%
Diversified Telecommunication Services: 0.55%
Level 3 Financing Incorporated (1 Month LIBOR +2.25%)±		4.36			2-22-2024		5,258,850		5,261,059
Entertainment: 1.05%
Diamond Sports Group LLC (3 Month LIBOR +3.25%)±<		5.39			8-24-2026		10,000,000		10,000,000
Media: 3.28%
Charter Communications Operating LLC (3 Month LIBOR +2.00%)±		4.33			4-30-2025		17,835,832		17,872,395
CSC Holdings LLC (1 Month LIBOR +2.50%)±		4.70			1-25-2026		10,924,370		10,906,126
Neptune Finco Corporation (1 Month LIBOR +2.25%)±		4.45			1-15-2026		2,462,625		2,448,268
									31,226,789
Wireless Telecommunication Services: 0.56%
SBA Senior Finance II LLC (1 Month LIBOR +2.00%)±		4.12			4-11-2025		5,360,794		5,326,753
Consumer Discretionary: 1.30%
Auto Components: 0.45%
Allison Transmission Incorporated (1 Month LIBOR +2.00%)±		4.17			3-29-2026		4,241,093		4,274,216
Household Products: 0.66%
Michaels Stores Incorporated (1 Month LIBOR +2.50%)±		4.63			1-30-2023		5,346,993		5,066,276
The ServiceMaster Company LLC (1 Month LIBOR +2.50%)±		4.61			11-8-2023		1,285,413		1,283,266
									6,349,542
Specialty Retail: 0.19%
Sally Beauty Holdings Incorporated (1 Month LIBOR +2.25%)±‡		4.37			7-5-2024		1,829,113		1,787,957
Consumer Staples: 0.70%
Food Products: 0.70%
Post Holdings Incorporated (1 Month LIBOR +2.00%)±		4.15			5-24-2024		6,651,665		6,650,734
Financials: 3.25%
Consumer Finance: 1.02%
TransUnion LLC (1 Month LIBOR +2.00%)±		4.11			6-19-2025		9,719,847		9,725,096
Diversified Financial Services: 2.23%
Delos Finance SARL (3 Month LIBOR +1.75%)±		4.08			10-6-2023		8,220,833		8,229,630
LPL Holdings Incorporated (1 Month LIBOR +2.25%)±		4.40			9-23-2024		12,932,708		12,948,874
									21,178,504
Health Care: 1.61%
Health Care Providers & Services: 1.61%
HCA Incorporated (3 Month LIBOR +1.75%)±		4.08			3-17-2023		9,981,495		9,991,177
Select Medical Corporation (3 Month LIBOR +2.50%)±		4.85			3-6-2025		5,326,507		5,295,454
									15,286,631

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, 2019

	Interest rate			Maturity date		Principal		Value
Industrials: 5.91%
Airlines: 0.98%
United Airlines Incorporated (1 Month LIBOR +1.75%)±		3.86	%		4-1-2024	$	7,751,575	$	7,734,134
WestJet Airlines Limited (3 Month LIBOR +3.00%)±<		5.14			8-6-2026		1,550,000		1,553,395
									9,287,529
Commercial Services & Supplies: 3.21%
Advanced Disposal Services Incorporated (1 Month LIBOR +2.25%)±		4.39			11-10-2023		11,941,041		11,948,563
Aramark Services Incorporated (3 Month LIBOR +1.75%)±		4.08			3-28-2024		5,082,497		5,074,873
Aramark Services Incorporated (3 Month LIBOR +1.75%)±		4.08			3-11-2025		5,931,734		5,924,319
KAR Auction Services Incorporated (3 Month LIBOR +2.25%)±		4.63			3-11-2021		3,462,323		3,455,121
Sensata Technologies BV (1 Month LIBOR +1.75%)±		3.94			10-14-2021		4,165,618		4,181,239
									30,584,115
Communications Equipment: 0.49%
Virgin Media Bristol LLC (1 Month LIBOR +2.50%)±		4.70			1-15-2026		4,615,000		4,611,446
Machinery: 1.23%
Columbus McKinnon Corporation (3 Month LIBOR +2.50%)±‡		4.83			1-31-2024		5,012,660		5,006,394
RBS Global Incorporated (1 Month LIBOR +2.00%)±		4.11			8-21-2024		6,706,250		6,728,917
									11,735,311
Information Technology: 0.28%
Electronic Equipment, Instruments & Components: 0.28%
Dell Incorporated (1 Month LIBOR +2.00%)±		4.12			9-7-2023		2,627,460		2,632,636
Materials: 2.26%
Chemicals: 2.18%
Ashland LLC (1 Month LIBOR +1.75%)±		3.84			5-17-2024		5,113,050		5,100,267
Ineos US Finance LLC (2 Month LIBOR +2.00%)±		4.26			3-31-2024		15,975,788		15,674,485
									20,774,752
Containers & Packaging: 0.08%
Berry Plastics Group Incorporated (1 Month LIBOR +2.00%)±		4.20			1-6-2021		741,581		741,581
Real Estate: 0.53%
Equity REITs: 0.53%
MGM Growth Properties LLC (1 Month LIBOR +2.00%)±		4.11			3-21-2025		5,074,833		5,073,260
Total Loans (Cost $203,766,743)									202,507,911
Non-Agency Mortgage-Backed Securities: 0.00%
Salomon Brothers Mortgage Securities VII Series 1994-5 Class B2±±		5.24			4-25-2024		22,671		20,938
Total Non-Agency Mortgage-Backed Securities (Cost $22,452)									20,938
Yankee Corporate Bonds and Notes: 9.14%
Communication Services: 1.34%
Media: 1.34%
Nielsen Holding and Finance BV 144A		5.50			10-1-2021		12,710,000		12,746,859

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

Wells Fargo Short-Term High Yield Bond Fund  |  15

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Consumer Discretionary: 1.07%
Automobiles: 0.39%
Jaguar Land Rover Limited 144A		4.25	%		11-15-2019	$	3,756,000	$	3,742,854
Hotels, Restaurants & Leisure: 0.68%
International Game Technology plc 144A		6.25			2-15-2022		6,100,000		6,450,750
Financials: 0.54%
Diversified Financial Services: 0.54%
General Electric Capital International Funding Company		2.34			11-15-2020		5,225,000		5,195,710
Health Care: 3.01%
Pharmaceuticals: 3.01%
Bausch Health Companies Incorporated 144A		6.50			3-15-2022		11,695,000		12,107,834
Teva Pharmaceutical Finance BV		2.20			7-21-2021		14,600,000		13,669,250
Teva Pharmaceutical Finance BV		3.65			11-10-2021		3,000,000		2,853,750
									28,630,834
Industrials: 0.66%
Airlines: 0.66%
Air Canada Company 144A		7.75			4-15-2021		5,870,000		6,284,363
Materials: 2.52%
Chemicals: 1.03%
Park Aerospace Holdings Company 144A		5.25			8-15-2022		9,305,000		9,828,406
Containers & Packaging: 0.40%
Ardagh Packaging Finance plc 144A		4.63			5-15-2023		3,655,000		3,740,746
Metals & Mining: 1.09%
ArcelorMittal SA		5.50			3-1-2021		9,970,000		10,402,121
Total Yankee Corporate Bonds and Notes (Cost $86,837,682)									87,022,643
	Yield					Shares
Short-Term Investments: 5.63%
Investment Companies: 5.63%
Securities Lending Cash Investments LLC (l)(r)(u)		2.24					5,730,371		5,730,944
Wells Fargo Government Money Market Fund Select Class (l)(u)##		2.04					47,797,221		47,797,221
Total Short-Term Investments (Cost $53,528,165)									53,528,165

Total investments in securities (Cost $944,948,409)	99.49	%		946,934,463
Other assets and liabilities, net	0.51			4,898,385
Total net assets	100.00	%	$	951,832,848

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, 2019

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.

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

‡ 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.

## All or a portion of this security is segregated for unfunded loans.

Abbreviations:

LIBOR London Interbank Offered Rate

REIT Real estate investment trust

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 Investments LLC		146,956		26,450,472		20,867,057		5,730,371	$	836	$	0	$	52,203	#	$	5,730,944
Wells Fargo Government Money Market Fund Select Class		48,392,907		510,307,507		510,903,193		47,797,221		0		0		998,183			47,797,221
									$	836	$	0	$	1,050,386		$	53,528,165		5.63	%

^#  Amount shown represents income before fees and rebates.

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

Wells Fargo Short-Term High Yield Bond Fund  |  17

Statement of assets and liabilities—August 31, 2019

Assets
Investments in unaffiliated securities (including $5,575,817 of securities loaned), at value (cost $891,420,244)	$	893,406,298
Investments in affiliated securities, at value (cost $53,528,165)		53,528,165
Cash		12,400,012
Receivable for investments sold		517,050
Receivable for Fund shares sold		513,783
Receivable for interest		11,288,066
Receivable for securities lending income, net		745
Prepaid expenses and other assets		970
Total assets		971,655,089
Liabilities
Payable for investments purchased		11,588,281
Payable upon receipt of securities loaned		5,730,108
Payable for Fund shares redeemed		1,350,520
Dividends payable		439,697
Management fee payable		315,432
Administration fees payable		82,519
Distribution fee payable		40,224
Trustees’ fees and expenses payable		3,964
Accrued expenses and other liabilities		271,496
Total liabilities		19,822,241
Total net assets	$	951,832,848
Net assets consist of
Paid-in capital	$	988,590,268
Total distributable loss		(36,757,420	)
Total net assets	$	951,832,848
Computation of net asset value and offering price per share
Net assets – Class A	$	104,671,182
Shares outstanding – Class A1		12,978,218
Net asset value per share – Class A		$8.07
Maximum offering price per share – Class A2		$8.32
Net assets – Class C	$	59,112,952
Shares outstanding – Class C1		7,327,205
Net asset value per share – Class C		$8.07
Net assets – Administrator Class	$	86,891,760
Shares outstanding – Administrator Class1		10,774,722
Net asset value per share – Administrator Class		$8.06
Net assets – Institutional Class	$	701,156,954
Shares outstanding – Institutional Class1		87,060,817
Net asset value per share – Institutional Class		$8.05

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.

18  |  Wells Fargo Short-Term High Yield Bond Fund

Statement of operations—year ended August 31, 2019

Investment income
Interest	$	38,092,276
Income from affiliated securities		1,004,993
Total investment income		39,097,269
Expenses
Management fee		4,778,296
Administration fees
Class A		181,891
Class C		105,617
Administrator Class		91,359
Institutional Class		567,473
Shareholder servicing fees
Class A		284,204
Class C		165,027
Administrator Class		225,454
Distribution fee
Class C		495,081
Custody and accounting fees		79,778
Professional fees		55,842
Registration fees		99,725
Shareholder report expenses		98,618
Trustees’ fees and expenses		21,592
Other fees and expenses		26,921
Total expenses		7,276,878
Less Fee waivers and/or expense reimbursements
Fund-level		(1,043,595	)
Class A		(22,701	)
Class C		(13,167	)
Administrator Class		(106,632	)
Net expenses		6,090,783
Net investment income		33,006,486
Realized and unrealized gains (losses) on investments
Net realized gains (losses) on
Unaffiliated securities		(2,707,775	)
Affiliated securities		836
Net realized losses on investments		(2,706,939	)
Net change in unrealized gains (losses) on investments		11,155,238
Net realized and unrealized gains (losses) on investments		8,448,299
Net increase in net assets resulting from operations	$	41,454,785

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

Wells Fargo Short-Term High Yield Bond Fund  |  19

Statement of changes in net assets

	Year ended August 31, 2019						Year ended August 31, 20181
Operations
Net investment income				$	33,006,486					$	39,073,468
Net realized losses on investments					(2,706,939	)					(3,235,869	)
Net change in unrealized gains (losses) on investments					11,155,238						(9,350,210	)
Net increase in net assets resulting from operations					41,454,785						26,487,389
Distributions to shareholders from net investment income and net realized gains
Class A					(3,762,988	)					(4,410,776	)
Class C					(1,689,410	)					(2,041,138	)
Administrator Class					(3,168,104	)					(3,531,933	)
Institutional Class					(25,680,553	)					(29,089,633	)
Total distributions to shareholders					(34,301,055	)					(39,073,480	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		2,334,881			18,662,572			3,772,243			30,248,401
Class C		550,907			4,399,664			821,295			6,596,115
Administrator Class		3,608,062			28,884,553			4,344,267			34,806,968
Institutional Class		39,157,823			312,749,375			40,175,145			322,039,713
					364,696,164						393,691,197
Reinvestment of distributions
Class A		455,888			3,644,906			534,775			4,287,383
Class C		206,987			1,655,385			250,383			2,008,417
Administrator Class		388,986			3,109,963			424,158			3,399,349
Institutional Class		2,585,685			20,647,043			2,938,060			23,529,667
					29,057,297						33,224,816
Payment for shares redeemed
Class A		(5,701,043	)		(45,524,301	)		(9,754,483	)		(78,216,370	)
Class C		(3,080,040	)		(24,607,930	)		(5,207,987	)		(41,812,691	)
Administrator Class		(6,065,662	)		(48,429,129	)		(8,542,255	)		(68,570,248	)
Institutional Class		(50,462,701	)		(402,058,756	)		(72,766,723	)		(582,432,153	)
					(520,620,116	)					(771,031,462	)
Net decrease in net assets resulting from capital share transactions					(126,866,655	)					(344,115,449	)
Total decrease in net assets					(119,712,925	)					(356,701,540	)
Net assets
Beginning of period					1,071,545,773						1,428,247,313
End of period				$	951,832,848					$	1,071,545,773

¹  Effective for all filings after November 4, 2018, the SEC prospectively eliminated the requirement to parenthetically disclose undistributed net investment income at the end of the period and permitted the aggregation of distributions, with the exception of tax basis returns of capital. Undistributed net investment income at August 31, 2018 was $7. The disaggregated distributions information for the year ended August 31, 2018 is included in Note 8,Distributions to Shareholders, in the notes to the financial statements.

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

20  |  Wells Fargo Short-Term High Yield Bond Fund

Financial highlights

(For a share outstanding throughout each period)

	Year ended August 31
CLASS A	2019			2018			2017			2016			2015
Net asset value, beginning of period		$7.99			$8.07			$8.10			$8.07			$8.20
Net investment income		0.25			0.24			0.23			0.24			0.25
Net realized and unrealized gains (losses) on investments		0.09			(0.08	)		(0.03	)		0.03			(0.13	)
Total from investment operations		0.34			0.16			0.20			0.27			0.12
Distributions to shareholders from
Net investment income		(0.26	)		(0.24	)		(0.23	)		(0.24	)		(0.25	)
Net realized gains		0.00			0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.26	)		(0.24	)		(0.23	)		(0.24	)		(0.25	)
Net asset value, end of period		$8.07			$7.99			$8.07			$8.10			$8.07
Total return1		4.40	%		2.00	%		2.51	%		3.37	%		1.46	%
Ratios to average net assets (annualized)
Gross expenses		0.94	%		0.93	%		0.92	%		0.92	%		0.92	%
Net expenses		0.81	%		0.81	%		0.81	%		0.81	%		0.81	%
Net investment income		3.18	%		2.96	%		2.88	%		2.95	%		3.11	%
Supplemental data
Portfolio turnover rate		44	%		34	%		35	%		32	%		40	%
Net assets, end of period (000s omitted)		$104,671			$127,024			$172,151			$296,817			$203,856

¹  Total return calculations do not include any sales charges.

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

Wells Fargo Short-Term High Yield Bond Fund  |  21

Financial highlights

(For a share outstanding throughout each period)

	Year ended August 31
CLASS C	2019			2018			2017			2016			2015
Net asset value, beginning of period		$8.00			$8.07			$8.10			$8.07			$8.20
Net investment income		0.19			0.18			0.17			0.18			0.19
Net realized and unrealized gains (losses) on investments		0.08			(0.07	)		(0.03	)		0.03			(0.13	)
Total from investment operations		0.27			0.11			0.14			0.21			0.06
Distributions to shareholders from
Net investment income		(0.20	)		(0.18	)		(0.17	)		(0.18	)		(0.19	)
Net realized gains		0.00			0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.20	)		(0.18	)		(0.17	)		(0.18	)		(0.19	)
Net asset value, end of period		$8.07			$8.00			$8.07			$8.10			$8.07
Total return1		3.49	%		1.36	%		1.75	%		2.60	%		0.70	%
Ratios to average net assets (annualized)
Gross expenses		1.69	%		1.68	%		1.67	%		1.67	%		1.67	%
Net expenses		1.56	%		1.56	%		1.56	%		1.56	%		1.56	%
Net investment income		2.43	%		2.21	%		2.11	%		2.20	%		2.36	%
Supplemental data
Portfolio turnover rate		44	%		34	%		35	%		32	%		40	%
Net assets, end of period (000s omitted)		$59,113			$77,169			$111,268			$123,745			$123,521

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
ADMINISTRATOR CLASS	2019			2018			2017			2016			2015
Net asset value, beginning of period		$7.99			$8.07			$8.10			$8.07			$8.20
Net investment income		0.27			0.25			0.24			0.25			0.26
Net realized and unrealized gains (losses) on investments		0.08			(0.08	)		(0.03	)		0.03			(0.13	)
Total from investment operations		0.35			0.17			0.21			0.28			0.13
Distributions to shareholders from
Net investment income		(0.28	)		(0.25	)		(0.24	)		(0.25	)		(0.26	)
Net realized gains		0.00			0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.28	)		(0.25	)		(0.24	)		(0.25	)		(0.26	)
Net asset value, end of period		$8.06			$7.99			$8.07			$8.10			$8.07
Total return		4.44	%		2.16	%		2.68	%		3.54	%		1.62	%
Ratios to average net assets (annualized)
Gross expenses		0.87	%		0.86	%		0.86	%		0.86	%		0.85	%
Net expenses		0.65	%		0.65	%		0.65	%		0.65	%		0.65	%
Net investment income		3.34	%		3.13	%		3.03	%		3.11	%		3.28	%
Supplemental data
Portfolio turnover rate		44	%		34	%		35	%		32	%		40	%
Net assets, end of period (000s omitted)		$86,892			$102,673			$134,070			$274,878			$328,934

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

Wells Fargo Short-Term High Yield Bond Fund  |  23

Financial highlights

(For a share outstanding throughout each period)

	Year ended August 31
INSTITUTIONAL CLASS	2019			2018			2017			2016			2015
Net asset value, beginning of period		$7.98			$8.06			$8.09			$8.06			$8.18
Net investment income		0.28			0.27			0.25			0.26			0.28
Net realized and unrealized gains (losses) on investments		0.08			(0.08	)		(0.02	)		0.03			(0.13	)
Total from investment operations		0.36			0.19			0.23			0.29			0.15
Distributions to shareholders from
Net investment income		(0.29	)		(0.27	)		(0.26	)		(0.26	)		(0.27	)
Net realized gains		0.00			0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.29	)		(0.27	)		(0.26	)		(0.26	)		(0.27	)
Net asset value, end of period		$8.05			$7.98			$8.06			$8.09			$8.06
Total return		4.59	%		2.31	%		2.83	%		3.69	%		1.90	%
Ratios to average net assets (annualized)
Gross expenses		0.61	%		0.59	%		0.59	%		0.59	%		0.59	%
Net expenses		0.50	%		0.50	%		0.50	%		0.50	%		0.50	%
Net investment income		3.49	%		3.27	%		3.16	%		3.26	%		3.40	%
Supplemental data
Portfolio turnover rate		44	%		34	%		35	%		32	%		40	%
Net assets, end of period (000s omitted)		$701,157			$764,680			$1,010,757			$735,285			$608,704

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

24  |  Wells Fargo Short-Term 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 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 (e.g. taking into account various factors, including yields, maturities, or credit ratings) 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.

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. When securities are on loan, the Fund receives interest or dividends on those securities. Cash collateral received in connection with its securities lending transactions is invested in Securities Lending Cash Investments, LLC (the “Securities Lending Fund”). Investments in Securities Lending Fund are valued at the evaluated bid price provided by an independent pricing service. Income earned from investment in the Securities Lending Fund (net of fees and rebates), if any, is included in income from affiliated securities on the Statement of Operations.

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. The Fund has the right under the lending agreement to recover the securities from the borrower on demand. 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 such an event, the terms of the agreement allows the unaffiliated securities lending agent to use the collateral to purchase replacement securities on behalf of the Fund or pay the Fund the market value of the loaned securities. The Fund will bear the risk of loss with respect to depreciation of its investment of the cash collateral.

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.

Wells Fargo Short-Term High Yield Bond Fund  |  25

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 the 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, 2019, the aggregate cost of all investments for federal income tax purposes was $946,242,604 and the unrealized gains (losses) consisted of:

Gross unrealized gains	$	3,811,156
Gross unrealized losses		(3,119,297	)
Net unrealized gains	$	691,859

As of August 31, 2019, the Fund had capital loss carryforwards available to offset future net realized capital gains which consist of $11,453,225 in short-term capital losses and $25,995,472 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 fund-level 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

26  |  Wells Fargo Short-Term High Yield Bond Fund

Notes to financial statements

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, 2019:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Corporate bonds and notes	$	0	$	603,854,806	$	0	$	603,854,806
Loans		0		195,713,560		6,794,351		202,507,911
Non-agency mortgage-backed securities		0		20,938		0		20,938
Yankee corporate bonds and notes		0		87,022,643		0		87,022,643
Short-term investments
Investment companies		53,528,165		0		0		53,528,165
Total assets	$	53,528,165	$	886,611,947	$	6,794,351	$	946,934,463

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

For the year ended August 31, 2019, the Fund had no material transfers into/out of 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 a management fee at the following annual rate based on the Fund’s average daily net assets:

Average daily net assets	Management Fee
First $500 million		0.500	%
Next $500 million		0.475
Next $2 billion		0.450
Next $2 billion		0.425
Next $5 billion		0.390
Over $10 billion		0.380

For the year ended August 31, 2019, the management fee was equivalent to an annual rate of 0.49% 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 (“WellsCap”), an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.35% and declining to 0.20% as the average daily net assets of the Fund increase.

Wells Fargo Short-Term High Yield Bond Fund  |  27

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	%
Administrator Class		0.10
Institutional Class		0.08

Waivers and/or expense reimbursements

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. When only certain classes exceed their expense caps, waivers and/or reimbursements are applied against class specific expenses before fund-level expenses. Funds Management has committed through December 31, 2019 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. Prior to or after the commitment expiration date, 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, 2019, Funds Distributor received $2,468 from the sale of Class A shares and $1,031, 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, 2019.

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 U.S. government obligations (if any) and short-term securities, for the year ended August 31, 2019 were $425,219,949 and $405,355,857, respectively.

As of August 31, 2019, the Fund had unfunded term loan commitments of $11,588,281.

6. SECURITIES LENDING TRANSACTIONS

The Fund lends its securities through an unaffiliated securities lending agent and 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 increases or decreases in the required collateral are exchanged between the Fund and the counterparty on the next business day. Cash collateral received is invested in the Securities Lending Fund which seeks to provide a positive return compared to the daily Fed Funds Open Rate by investing in high-quality, U.S. dollar-denominated

28  |  Wells Fargo Short-Term High Yield Bond Fund

Notes to financial statements

short-term money market instruments and is exempt from registration under Section 3(c)(7) of the 1940 Act. Securities Lending Fund is managed by Funds Management and is subadvised by WellsCap. 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. In the event of counterparty default or the failure of a borrower to return a loaned security, the Fund has the right to use the collateral to offset any losses incurred.

In the event of counterparty default or the failure of a borrower to return a loaned security, the Fund has the right to use the collateral to offset any losses incurred. As of August 31, 2019, the Fund had securities lending transactions with the following counterparties which are subject to offset:

Counterparty	Value of securities on loan		Collateral received1			Net amount
Barclays Capital Inc.	$	3,678,763	$	(3,678,763	)	$	0
Citigroup Global Markets Inc.		1,897,054		(1,897,054	)		0

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

7. BANK BORROWINGS

The Trust (excluding the money market funds), 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, 2019, there were no borrowings by the Fund under the agreement.

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid was $34,301,055 and $39,073,480 of ordinary income for the years ended August 31, 2019 and August 31, 2018, respectively.

As of August 31, 2019, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Unrealized gains	Capital loss carryforward
$439,115	$691,859	$(37,448,697)

Effective for all filings after November 4, 2018, the Securities and Exchange Commission eliminated the requirement to separately state the components of distributions to shareholders under U.S. generally accepted accounting principles. The amounts of distributions to shareholders for the year ended August 31, 2018 were as follows:

	Net investment income
Class A		$4,410,776
Class C		2,041,138
Administrator Class		3,531,933
Institutional Class		29,089,633

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.

Wells Fargo Short-Term High Yield Bond Fund  |  29

Notes to financial statements

10. NEW ACCOUNTING PRONOUNCEMENTS

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 has adopted the removal and modification of disclosures early, as permitted, and will adopt the additional new disclosures at the effective date.

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 and requires the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount and discounts will continue to be accreted to the maturity date of the security. ASU 2017-08 is effective for fiscal years beginning after December 15, 2018 and for interim periods within those fiscal years. During the current reporting period, management of the Fund adopted the change in accounting policy which did not have a material impact to the Fund’s financial statements.

30  |  Wells Fargo Short-Term High Yield Bond Fund

Report of independent registered public accounting firm

TO THE SHAREHOLDERS OF THE FUND AND BOARD OF TRUSTEES 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), one of the funds constituting Wells Fargo Funds Trust, including the portfolio of investments, as of August 31, 2019, 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, 2019, 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, 2019, by correspondence with the custodian, transfer agent 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 28, 2019

Wells Fargo Short-Term High Yield Bond Fund  |  31

Other information (unaudited)

TAX INFORMATION

For the fiscal year ended August 31, 2019, $20,618,628 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 used to determine how to vote proxies relating to portfolio securities is available, upon request, by calling1-800-222-8222, visiting our website atwfam.com, or visiting the SEC website at sec.gov. Information regarding how the proxies related to portfolio securities were voted during the most recent 12-month period ended June 30 is available on the website atwfam.comor by visiting the SEC website at sec.gov.

QUARTERLY PORTFOLIO HOLDINGS INFORMATION

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 or Form N-PORT, which is available by visiting the SEC website at sec.gov. Those forms may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling1-800-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 152 mutual funds comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information². The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.

Independent Trustees

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
William R. Ebsworth (Born 1957)	Trustee, since 2015	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief investment officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong, and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he led a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Audit Committee Chair and Investment Committee Chair of the Vincent Memorial Hospital Endowment (non-profit organization). 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; Audit Committee Chairman, since 2019	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, from 2009 to 2018	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

Wells Fargo Short-Term High Yield Bond Fund  |  33

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
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
Olivia S. Mitchell (Born 1953)	Trustee, since 2006; Nominating and 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	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	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

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

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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.
Michelle Rhee3 (Born 1966)	Chief Legal Officer, since 2019	Secretary of Wells Fargo Funds Management, LLC, Chief Legal Counsel of Wells Fargo Asset Management and Assistant General Counsel of Wells Fargo Bank, N.A. since 2018. Associate General Counsel and Managing Director of Bank of America Corporation from 2004 to 2018.
Catherine Kennedy4 (Born 1969)	Secretary, since 2019	Vice President of Wells Fargo Funds Management, LLC and Senior Counsel of the Wells Fargo Legal Department since 2010. Vice President and Senior Counsel of Evergreen Investment Management Company, LLC from 1998 to 2010.
Michael H. Whitaker (Born 1967)	Chief Compliance Officer, since 2016	Chief Compliance Officer of Wells Fargo Asset Management 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 65 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 87 funds and Assistant Treasurer of 65 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 calling1-800-222-8222 or by visiting the website atwfam.com.

³  Michelle Rhee became Chief Legal Officer effective October 22, 2019.

⁴  Catherine Kennedy became Secretary effective October 22, 2019.

Wells Fargo Short-Term High Yield Bond Fund  |  35

Other information (unaudited)

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 21-22, 2019 (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 2019, 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 2019. 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 received and reviewed information about Funds Management’s role as administrator of the Fund’s liquidity risk management program. 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.

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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, 2018. 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 one-year period under review, but lower than the average investment performance of the Universe for the three-, five- and ten-year periods under review. The Board also noted that the investment performance of the Fund was lower than its benchmark index, the ICE BofAML High Yield U.S. Corporates, Cash Pay, BB Rated, 1-5 Year Index, for the three-, five- and ten-year periods under review, but higher than its benchmark for the one-year period 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 strategies and structural biases, as well as those regarding market factors, that affected the Fund’s investment performance. The Board also took note of the Fund’s short-term outperformance relative to the Universe and benchmark, and of the Fund’s ability to generate positive performance with less than half of the volatility experienced by the other mutual funds in the Universe.

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 proprietary mutual funds compared with those associated with managing assets of other types of clients, including third-party sub-advised fund clients and 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.

Wells Fargo Short-Term High Yield Bond Fund  |  37

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”) from providing services to the fund family as a whole. The Board noted that the Sub-Adviser’s profitability information with respect to providing services to the Fund and other funds in the family 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. 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, type and age 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 received and considered information about the potential for Funds Management to experience economies of scale in the provision of management services to the Fund, the difficulties of calculating economies of scale at an individual fund level, and the extent to which potential scale benefits are shared with shareholders. 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. The Board considered that in addition to management fee breakpoints, Funds Management shares potential economies of scale from its management business in a variety of ways, including through fee waiver and expense reimbursement arrangements, services that benefit shareholders, competitive management fee rates set at the outset without regard to breakpoints, and investments in the business intended to enhance services available to shareholders.

The Board concluded that Funds Management’s arrangements with respect to the Fund, 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.

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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:wfam.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, call1-800-222-8222 or visit the Fund’s website atwfam.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).

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INVESTMENT PRODUCTS: NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

© 2019 Wells Fargo Funds Management, LLC. All rights reserved.

405808 10-19

A222/AR222 08-19

Annual Report

August 31, 2019

Wells Fargo

Ultra Short-Term Income Fund

Beginning on January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, paper copies of the Wells Fargo Funds’ annual and semi-annual shareholder reports issued after this date will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Funds’ website, and you will be notified by mail each time a report is posted and provided with a website address to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling1-800-222-8222 or by enrolling at wellsfargo.com/advantagedelivery.

You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports; if you invest directly with the Fund, you can call 1-800-222-8222. Your election to receive reports in paper will apply to all Wells Fargo Funds held in your account with your financial intermediary or, if you are a direct investor, to all Wells Fargo Funds that you hold.

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

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The views expressed and any forward-looking statements are as of August 31, 2019, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Asset Management. 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 Asset Management and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

INVESTMENT PRODUCTS: NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾  MAY LOSE VALUE

Wells Fargo Ultra Short-Term Income Fund  |  1

Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

Dear Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Ultra Short-Term Income Fund for the12-month period that ended August 31, 2019. After the first half of the period yielded eitherlow-single-digit or negative investment returns, U.S. stock and global bond investors generally saw markets recover during the second half amid intensifying market volatility, global economic growth concerns, international trade staredowns, and simmering geopolitical tensions.

Overall, fixed-income investors enjoyed a distinct advantage over stock investors. For the period, U.S. stocks, based on the S&P 500 Index,¹ gained 2.92% and international stocks, as measured by the MSCI ACWI ex USA Index (Net),² fell 3.27%. The MSCI EM Index (Net)³ slipped 4.36%. Among fixed income investors, the Bloomberg Barclays U.S. Aggregate Bond Index⁴ added 10.17%, the Bloomberg Barclays Global Aggregateex-USD Index⁵ added 5.71%, the Bloomberg Barclays Municipal Bond Index⁶ gained 8.72%, and the ICE BofAML U.S. High Yield Index⁷ added 6.58%.

Entering the fourth quarter of 2018, economic data was encouraging.

Entering the fourth quarter of 2018, there were reasons for investors to be optimistic. The U.S. Bureau of Economic Analysis reported U.S. gross domestic product (GDP) grew 4.2% on an annualized basis during the second quarter. Hiring improved. Unemployment declined. Consumer spending gained. Third-quarter corporate earnings reports were generally positive. U.S. trade negotiations with Mexico and Canada advanced. In September 2018, the U.S. Federal Reserve (Fed) raised the federal funds rate by 25 basis points (bps; 100 bps equal 1.00%) to a target range of between 2.00% and 2.25% in an indication of its confidence that U.S. economic growth was sustainable.

International markets presented numerous challenges. U.S.-China trade tensions increased. The U.S. imposed $200 billion in tariffs on Chinese goods. China reacted with $60 billion in tariffs on U.S. goods. Economic growth in China caused concern. In September 2018, international investors began to factor in a number of disconcerting economic and business data points: lower July manufacturing and industrial orders in Germany; declining purchasing managers’ index numbers for August from the United Kingdom, China, and India; and declining household spending for August in Japan. Taken together, the data fed growing concerns that global economic growth was slowing.

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 and emerging markets, excluding the U.S. 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 the equity market performance of emerging markets. 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 Aggregateex-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-termtax-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 2019. ICE Data Indices, LLC. All rights reserved.

2  |  Wells Fargo Ultra Short-Term Income Fund

Letter to shareholders (unaudited)

Investors had to digest unsettling events during the fourth quarter of 2018.

November’s U.S. midterm elections shifted control of the House of Representatives from Republicans to Democrats, presaging partisan clashes that followed and caused uncertainty among investors. A partial U.S. government shutdown driven by partisan policy disputes extended into January 2019. Third-quarter U.S. GDP was announced at an annualized 3.4% rate, lower than the second-quarter rate. Brexit efforts stalled. The value of the renminbi declined even as the People’s Bank of China cut reserve requirement ratios, accelerated infrastructure spending, and cut taxes in efforts to spur economic activity.

The combination of news in the U.S. and generally weak economic indicators outside of the U.S. caused investors to seek safe havens. December’s S&P 500 Index performance was the worst since 1931. Globally, fixed-income investments fared better than stocks during the last two months of the year. The Fed increased the federal funds rate by 25 bps in December 2018 to a target range of between 2.25% and 2.50% even as observers expressed concerns that higher rates could slow the economy.

The market climbs a wall of worry.

Investment returns appeared to reaffirm the adage that markets climb a wall of worry as 2019 opened. Following its December decline, the S&P 500 Index gained 8.01% for the month of January, the best monthly performance in 30 years. Returns for the MSCI ACWI ex USA Index (Net), the Bloomberg Barclays U.S. Aggregate Bond Index, and the Bloomberg Barclays Global Aggregateex-USD Index also were positive.

In February 2019, signs of slowing global growth grew more ominous. The Bureau of Economic Analysis announced fourth-quarter 2018 GDP grew at an annualized 2.2% rate, down from the levels of the prior two quarters. In a February report, the Bank of England forecast the slowest growth for 2019 since the financial crisis. China and the U.S. continued to wrangle over trade issues. By the end of the first quarter of 2019, more accommodative Fed sentiment and steady, if not spectacular, U.S. economic and business metrics encouraged domestic investors.

Early second-quarter 2019 enthusiasm among investors faded.

During April 2019, favorable sentiment found additional support in reports of sustained low inflation, solid employment data, and first-quarter U.S. GDP of an annualized rate of 3.2%. During May, markets tumbled on mixed investment signals. In the U.S., partisan wrangling ramped up as Democrats and Republicans set their sights on 2020 presidential politics. The U.K.’s Brexit contretemps caused Prime Minister Theresa May to resign. Boris Johnson succeeded her only to exacerbate uncertainty about Brexit’s resolution ahead of an October 2019 deadline. The European Commission downgraded the 2019 growth forecast to 1.2%. The U.S. increased tariffs on products from China, China responded, and then talks broke down. President Donald Trump threatened to turn his foreign policy tariff tool to Mexico over immigration issues.

During the third quarter of 2019, investors regrouped. Just as the investment horizon appeared to darken, sentiment turned and U.S. equity markets gained during June and July. The gains, primarily driven by geopolitical and monetary policy events, pushed equity markets to new highs. European Central Bank President Mario Draghi said that if the outlook doesn’t improve, the bank would cut rates or buy more assets to prop up inflation. President Trump backed off of tariff threats against Mexico and China. In the U.S., the Fed implemented a 0.25% federal funds rate cut in July.

Later in July, the U.S. reversed course and threatened to impose higher tariffs on China’s exports after talks failed. China responded with tariff threats of its own and

“December’s S&P 500 Index performance was the worst since 1931.”

“Following its December decline, the S&P 500 Index gained 8.01% for the month of January, the best monthly performance in 30 years.”

Wells Fargo Ultra Short-Term Income Fund  |  3

Letter to shareholders (unaudited)

For further information about your Fund, contact your investment professional, visit our website at wfam.com, or call us directly at1-800-222-8222.

devalued the renminbi, a move that roiled global markets. Major U.S. stock market indices closed July 2019 with the worst weekly results of the year. Bond prices gained as Treasury yields fell to levels not seen since November 2016 and the yield curve inverted at multiple points along the30-year arc.

In a microcosm, August 2019 encapsulated many of the unnerving events that plagued investors during the prior 11 months. The U.S.-China trade relationship swung from discouraging to hopeful and back again with no evident compromise on the horizon. Evidence of a continued global economic slowdown continued to mount as central banks in China, New Zealand, and Thailand cut interest rates. Industrial and manufacturing data declined in China, Canada, Japan, and Germany. Adding to the uncertain environment, Italy’s prime minister resigned, many feared a crackdown in Hong Kong as protesters sustained their calls for reform throughout the month, and Boris Johnson planned to suspend Parliament as Brexit’s deadline neared.

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

4  |  Wells Fargo Ultra Short-Term Income Fund

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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^®‡

Michael J. Schueller, CFA^®‡*

Noah M. Wise, CFA^®‡

Average annual total returns (%) as of August 31, 2019

		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		0.98		0.88		1.42		3.04		1.29		1.62		0.81		0.71
Class C (WUSTX)	7-18-2008		1.27		0.56		0.88		2.27		0.56		0.88		1.56		1.46
Administrator Class (WUSDX)	4-8-2005		–		–		–		3.19		1.44		1.78		0.75		0.56
Institutional Class (SADIX)	8-31-1999		–		–		–		3.40		1.64		1.98		0.48		0.36
Bloomberg Barclays Short-Term U.S. Government/Corporate Bond Index3	–		–		–		–		2.76		1.20		0.81		–		–

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. Currentmonth-end performance is available on the Fund’s website,wfam.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 maximumfront-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 afront-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.

6  |  Wells Fargo Ultra Short-Term Income Fund

Performance highlights (unaudited)

Growth of $10,000 investment as of August 31, 2019⁴

^‡  CFA^®and Chartered Financial Analyst^® are trademarks owned by CFA Institute.

* Mr. Schueller became a portfolio manager of the Fund on June 6, 2019.

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, 2019 to waive fees and/or reimburse expenses to the extent necessary to cap the expenses of each class after fee waivers at 0.70% for Class A, 1.45% for Class C, 0.55% for Administrator Class, and 0.35% for Institutional Class. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses (if any), and extraordinary expenses are excluded from the expense cap. Prior to or after the commitment expiration date, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Without this cap, the Fund’s returns would have been lower. The expense ratio paid by an investor is the net expense ratio (the total annual fund operating expenses after fee waivers) as stated in the prospectuses.

³  The Bloomberg Barclays Short-Term U.S. Government/Corporate Bond Index contains securities that have fallen out of the Bloomberg Barclays U.S. Government/Credit Bond Index because of the standard minimumone-year-to-maturity constraint. Securities in the Bloomberg Barclays Short-Term U.S. Government/Corporate 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 10 years with the performance of the Bloomberg Barclays Short-Term U.S. Government/Corporate 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 Personal Consumption Expenditures Index is the primary measure of consumer spending on goods and services in the U.S. economy. It accounts for abouttwo-thirds of domestic final spending and is part of the personal income report issued by the Bureau of Economic Analysis of the Department of Commerce. 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.

Wells Fargo Ultra Short-Term Income Fund  |  7

Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

∎ The Fund (Class A shares, excluding sales charges) outperformed its benchmark, the Bloomberg Barclays Short-Term U.S. Government/Corporate Bond Index, for the12-month period that ended August 31, 2019.

∎ Overweights to corporate debt and structured products, both of which generated positive yield returns compared with similar-duration Treasuries, generated positive results for the Fund.

∎ Overnight cash investments were a modest drag on performance.

Ten largest holdings(%) as of August 31, 20195
SPDR Portfolio Short Term Corporate Bond ETF	2.88
iShares Short-Term Corporate Bond ETF	2.87
Banco Santander SA, 3.50%,4-11-2022	0.96
Bank of America Corporation, 2.33%,10-1-2021	0.94
Deutsche Telekom International Finance BV,2.23%, 1-17-2020	0.93
Morgan Stanley, 2.75%,5-19-2022	0.90
American Credit Acceptance Receivables Trust Series2019-2 Class A, 2.85%,7-12-2022	0.81
Banco Santander Chile, 2.50%,12-15-2020	0.77
ANZ New Zealand International Limited,2.60%, 9-23-2019	0.76
Huntington National Bank, 2.38%,3-10-2020	0.75

An economic slowdown

The pace of gross domestic product growth decelerated over the past 12 months as business investment, inventory effects, and trade restrained overall economic activity. For the four quarters that ended June 30, 2019, the U.S. economy expanded by 2.3% in inflation-adjusted terms, compared with a 3.2% trailing12-month growth rate at the midway point in 2018. Rising anxiety over the contentious U.S.-China trade relationship appeared to discourage capital investment over the12-month period that ended August 31, 2019. Housing investment also was a modest drag despite low mortgage rates. Consumer spending held up fairly well, however, with the Personal Consumption Expenditures Index⁶ rising at a 2.7% year-over-year rate through the end of July.

Consumption was supported by a relatively firm labor market. While job growth slowed modestly over the period, wages grew by 3.2% in real terms and the unemployment rate remained below 4%. Measures of labor force participation also generally showed improvement.

In response to slower growth and lower-than-targeted inflation, the Federal Open Market Committee (FOMC) voted to reduce its policy rate target for overnight funds by 0.25% at its July 31 meeting. This was the first interest rate reduction engineered by the FOMC in the decade since the financial crisis. While the monetary authorities suggested that their decision should be seen as a “midcourse correction” rather than the beginning of an extended easing cycle, markets have priced multiple additional rate cuts into the term structure. Indeed, interest rates fell across the board over the past 12 months, with intermediate-term Treasury yields dropping by about 1.35%.

Portfolio allocation as of August 31, 2019⁷

The Fund continued to favor corporate credit and securitized obligations.

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 yield advantage versus Treasuries, while short-term credit spreads were little changed on a year-over-year basis. The Fund’s second-largest sector commitment was to securitized debt: asset-backed securities, residential mortgage-backed securities, commercial mortgage-backed securities, and collateralized loan obligations. The Fund benefited from the yield advantage provided by these holdings. The Fund’s duration was generally maintained near the0.5-year mark, in line with its benchmark.

Please see footnotes on page 7.

8  |  Wells Fargo Ultra Short-Term Income Fund

Performance highlights (unaudited)

The trade war is a persistent cloud.

We expect the U.S.-China trade dispute to drag on for some months to come, depressing business investment. Slower growth, in turn, is likely to incline the monetary authorities to ease policy further, with at least one and probably more rate cuts to be implemented over the next 6 to 12 months. A quick resolution to the dispute—as unlikely as that seems at this time—could potentially boost business confidence and perhaps reduce the pressure for accommodative monetary policy. In this environment, we anticipate taking a cautious approach to both duration and sector allocation decisions, with a bias towardup-in-quality trades. As always, relative-value considerations will dominate our security selection process.

Wells Fargo Ultra Short-Term Income Fund  |  9

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 thesix-month period and held for the entire period from March 1, 2019 to August 31, 2019.

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 3-1-2019		Ending account value 8-31-2019		Expenses paid during the period1		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,015.55	$	3.56		0.70	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.68	$	3.57		0.70	%
Class C
Actual	$	1,000.00	$	1,012.91	$	7.36		1.45	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.90	$	7.37		1.45	%
Administrator Class
Actual	$	1,000.00	$	1,017.54	$	2.80		0.55	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.43	$	2.80		0.55	%
Institutional Class
Actual	$	1,000.00	$	1,018.54	$	1.78		0.35	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.44	$	1.78		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 theone-half-year period).

10  |  Wells Fargo Ultra Short-Term Income Fund

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Agency Securities: 6.63%
FDIC Series2013-R1 Class A 144A		1.15	%		3-25-2033	$	588,673	$	585,149
FHLMC (1 Month LIBOR +0.50%)±		2.70			9-15-2041		1,607,426		1,613,996
FHLMC		4.50			2-1-2020		42,699		43,927
FHLMC		4.50			8-1-2020		34,432		35,422
FHLMC		4.50			1-1-2022		38,661		39,773
FHLMC		4.50			6-1-2024		854,222		888,215
FHLMC		4.50			9-1-2026		1,345,755		1,399,259
FHLMC (1 Year Treasury Constant Maturity +2.25%)±		4.65			11-1-2035		1,415,751		1,488,334
FHLMC (1 Year Treasury Constant Maturity +2.25%)±		4.67			6-1-2032		1,540		1,595
FHLMC (1 Year Treasury Constant Maturity +2.23%)±		4.69			3-1-2035		641,893		677,488
FHLMC (1 Year Treasury Constant Maturity +2.25%)±		4.72			10-1-2038		646,445		687,128
FHLMC (1 Year Treasury Constant Maturity +2.25%)±		4.76			4-1-2032		81,363		85,729
FHLMC (1 Year Treasury Constant Maturity +2.19%)±		4.79			5-1-2035		238,535		251,020
FHLMC (1 Year Treasury Constant Maturity +2.33%)±		4.83			1-1-2029		33,067		33,391
FHLMC (1 Year Treasury Constant Maturity +2.25%)±		4.84			4-1-2038		649,419		684,790
FHLMC (1 Year Treasury Constant Maturity +2.25%)±		4.86			9-1-2038		1,233,636		1,303,476
FHLMC (1 Year Treasury Constant Maturity +2.40%)±		4.90			7-1-2029		1,644		1,692
FHLMC		5.00			12-1-2019		51,439		53,060
FHLMC		5.50			12-1-2022		321,994		333,857
FHLMC		5.50			12-1-2023		374,695		390,664
FHLMC		6.00			10-1-2021		366,759		375,382
FHLMC		6.00			10-1-2021		393,145		402,395
FHLMC		6.00			1-1-2024		321,958		332,338
FHLMC		7.00			6-1-2031		237,588		267,069
FHLMC		9.00			10-1-2019		57		56
FHLMC		9.50			9-1-2020		6,289		6,317
FHLMC		9.50			12-1-2022		3,373		3,397
FHLMC		10.00			11-17-2021		2,442		2,455
FHLMC		10.50			5-1-2020		4,534		4,552
FHLMC Series 2611 Class HD		5.00			5-15-2023		434,559		451,324
FHLMC Series 2649 Class WL		4.00			7-15-2023		801,622		812,735
FHLMC Series 2704 Class BH		4.50			11-15-2023		312,208		320,289
FHLMC Series 2881 Class AE		5.00			8-15-2034		146,970		151,228
FHLMC Series 2896 Class CB		4.50			11-15-2019		198		199
FHLMC Series 2953 Class LD		5.00			12-15-2034		144,561		150,246
FHLMC Series 3166 Class AC		5.00			6-15-2021		292,149		292,519
FHLMC Series 3266 Class D		5.00			1-15-2022		3		3
FHLMC Series 3609 Class LA		4.00			12-15-2024		6,654		6,670
FHLMC Series 3821 Class LA		3.50			4-15-2025		66,802		66,863
FHLMC Series 3834 Class EA		3.50			6-15-2029		189,123		191,502
FHLMC Series 3888 Class NA		2.25			1-15-2040		1,385,814		1,392,160
FHLMC Series 3898 Class NE		4.00			7-15-2040		95,105		95,213
FHLMC Series 4172 Class PB		1.50			7-15-2040		284,848		281,937
FHLMC Series 4318 Class LC		2.00			6-15-2038		311,488		309,971
FHLMC Series 4348 Class MH		3.00			6-15-2039		1,992,024		2,028,753
FHLMC Series 4764 Class BA		4.00			6-15-2042		1,136,549		1,154,630
FHLMC Series 4889 Class CD		3.00			4-15-2049		4,912,651		4,973,171
FHLMC Series K005 Class A2		4.32			11-25-2019		319,101		318,948
FHLMC Series KF15 Class A (1 Month LIBOR +0.67%)±		2.89			2-25-2023		722,276		721,827
FHLMC Series KI01 Class A (1 Month LIBOR +0.16%)±		2.38			9-25-2022		2,419,492		2,414,301
FHLMC Series KJ13 Class A1		2.06			9-25-2021		368,523		367,597

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

Wells Fargo Ultra Short-Term Income Fund  |  11

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Agency Securities(continued)
FHLMC Series QO04 Class AFL (12 Month Treasury Average +0.74%)±		3.22	%		5-25-2044	$	3,189,768	$	3,192,542
FHLMC SeriesT-42 Class A6		9.50			2-25-2042		571,975		707,069
FNMA		2.00			4-1-2023		2,578,986		2,578,252
FNMA (6 Month LIBOR +1.51%)±		4.16			9-1-2037		313,887		324,557
FNMA (6 Month LIBOR +1.40%)±		4.28			10-1-2031		69,192		70,698
FNMA (1 Year Treasury Constant Maturity +2.02%)±		4.44			12-1-2034		302,139		316,073
FNMA		4.50			1-1-2027		1,598,272		1,683,932
FNMA (1 Year Treasury Constant Maturity +2.25%)±		4.63			11-1-2033		1,413,896		1,492,292
FNMA (1 Year Treasury Constant Maturity +2.19%)±		4.64			11-1-2031		56,848		59,594
FNMA (1 Year Treasury Constant Maturity +2.19%)±		4.65			2-1-2035		840,268		886,130
FNMA (1 Year Treasury Constant Maturity +2.13%)±		4.67			5-1-2032		4,772		4,928
FNMA (1 Year Treasury Constant Maturity +2.19%)±		4.68			4-1-2038		1,601,313		1,688,814
FNMA (12 Month LIBOR +1.81%)±		4.69			9-1-2040		1,842,345		1,944,377
FNMA (1 Year Treasury Constant Maturity +2.22%)±		4.69			6-1-2034		807,306		853,085
FNMA (1 Year Treasury Constant Maturity +2.21%)±		4.70			7-1-2038		1,100,922		1,162,152
FNMA (1 Year Treasury Constant Maturity +2.23%)±		4.70			12-1-2040		127,696		134,279
FNMA (1 Year Treasury Constant Maturity +2.28%)±		4.71			11-1-2032		454,358		475,573
FNMA (1 Year Treasury Constant Maturity +2.22%)±		4.72			6-1-2032		93,047		96,765
FNMA (1 Year Treasury Constant Maturity +2.26%)±		4.72			8-1-2036		1,760,014		1,859,280
FNMA (12 Month Treasury Average +2.22%)±		4.72			8-1-2045		558,277		585,298
FNMA (1 Year Treasury Constant Maturity +2.26%)±		4.76			11-1-2035		150,524		158,851
FNMA (1 Year Treasury Constant Maturity +2.31%)±		4.78			5-1-2036		500,910		529,431
FNMA (1 Year Treasury Constant Maturity +2.36%)±		4.78			11-1-2034		775,892		822,340
FNMA (12 Month Treasury Average +2.33%)±		4.84			5-1-2036		708,678		737,902
FNMA (1 Year Treasury Constant Maturity +2.27%)±		4.99			2-1-2036		1,169,777		1,232,389
FNMA		5.00			5-1-2022		227,208		234,277
FNMA		5.00			6-1-2024		1,636,900		1,698,345
FNMA (1 Year Treasury Constant Maturity +2.27%)±		5.02			2-1-2033		351,603		365,218
FNMA		6.00			4-1-2021		41,746		42,350
FNMA		6.00			1-1-2023		882,474		916,199
FNMA (6 Month LIBOR +2.86%)±		6.23			4-1-2033		762		790
FNMA		6.50			8-1-2031		262,528		306,664
FNMA		8.33			7-15-2020		215		215
FNMA		9.00			2-15-2020		2,489		2,496
FNMA		9.00			10-15-2021		2,742		2,767
FNMA		9.00			6-1-2024		7,211		7,260
FNMA		9.50			12-1-2020		4,323		4,347
FNMA		10.50			4-1-2022		63		63
FNMA Series1990-111 Class Z		8.75			9-25-2020		977		996
FNMA Series1990-119 Class J		9.00			10-25-2020		7,001		7,187
FNMA Series1990-124 Class Z		9.00			10-25-2020		1,984		2,024
FNMA Series1990-21 Class Z		9.00			3-25-2020		5,972		6,021
FNMA Series1990-27 Class Z		9.00			3-25-2020		1,485		1,493
FNMA Series1990-30 Class D		9.75			3-25-2020		996		1,006
FNMA Series1990-77 Class D		9.00			6-25-2020		3,660		3,684
FNMA Series1991-132 Class Z		8.00			10-25-2021		17,208		17,953
FNMA Series1992-71 Class X		8.25			5-25-2022		12,901		13,722
FNMA Series2000-T6 Class A2		9.50			11-25-2040		300,233		343,911
FNMA Series2001-T10 Class A3		9.50			12-25-2041		471,339		558,817
FNMA Series2001-T12 Class A3		9.50			8-25-2041		440,976		535,128
FNMA Series2002-T1 Class A4		9.50			11-25-2031		541,294		649,595

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

12  |  Wells Fargo Ultra Short-Term Income Fund

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Agency Securities(continued)
FNMA Series2002-W04 Class A6±±		4.59	%		5-25-2042	$	554,250	$	573,418
FNMA Series2003-W11 Class A1±±		5.44			6-25-2033		14,267		14,908
FNMA Series2003-W3 Class 1A4±±		4.23			8-25-2042		30,227		31,829
FNMA Series2004-92 Class QY		4.50			8-25-2034		12,109		12,084
FNMA Series2007-W2 Class 1A1 (1 Month LIBOR +0.32%)±		2.47			3-25-2037		306,144		306,154
FNMA Series2008-76 Class GF (1 Month LIBOR +0.65%)±		2.80			9-25-2023		2,681		2,679
FNMA Series2009-31 Class B		4.00			5-25-2024		137,478		137,532
FNMA Series2010-115 Class NC		2.75			1-25-2039		687,850		688,030
FNMA Series2010-25 Class ND		3.50			3-25-2025		9,070		9,038
FNMA Series2010-37 Class A1		5.41			5-25-2035		4,328,206		4,526,455
FNMA Series2010-57 Class DQ		3.00			6-25-2025		183,455		184,723
FNMA Series2010-89 Class DP		3.00			6-25-2038		483,952		483,756
FNMA Series2011-122 Class A		3.00			12-25-2025		91,107		90,969
FNMA Series2012-72 Class QE		3.00			1-25-2038		307,518		310,396
FNMA Series2012-94 Class E		3.00			6-25-2022		5,805		5,798
FNMA Series2013-26 Class AK		2.50			11-25-2038		3,365,389		3,391,767
FNMA Series2014-19 Class HA		2.00			6-25-2040		752,821		760,046
GNMA		7.00			6-15-2033		379,417		454,279
GNMA Series2012-57 Class LG		1.50			3-16-2035		37,949		37,887
GNMA Series2016-H19 Class FE (1 Month LIBOR +0.37%)±		2.75			6-20-2061		239,109		239,102
GNMA Series2017-H13 Class FJ (1 Month LIBOR +0.20%)±		2.58			5-20-2067		411,365		411,146
GNMA Series2017-H16 Class FD (1 Month LIBOR +0.20%)±		2.58			8-20-2067		489,374		489,238
Total Agency Securities (Cost $69,741,456)									70,974,377
Asset-Backed Securities: 12.80%
American Credit Acceptance Receivables Trust Series2018-1 Class C 144A		3.55			4-10-2024		2,750,000		2,766,408
American Credit Acceptance Receivables Trust Series2019-2 Class A 144A		2.85			7-12-2022		8,608,483		8,628,148
AmeriCredit Automobile Receivables Trust Series2017-2 Class A3		1.98			12-20-2021		2,843,167		2,840,721
Bank of the West Auto Trust Series2018-1 Class A2 144A		3.09			4-15-2021		3,264,450		3,271,267
California Republic Auto Receivables Trust Series2017-1 Class A4		2.28			6-15-2022		3,654,456		3,654,955
CCG Receivables Trust Series2017-1 Class A2 144A		1.84			11-14-2023		1,869,807		1,866,388
Chesapeake Funding II LLC Series2017-3A Class A1 144A		1.91			8-15-2029		4,403,191		4,391,013
Chesapeake Funding II LLC Series2018-3A Class A1 144A		3.39			1-15-2031		6,165,314		6,281,609
CPS Auto Trust Series2018-C Class A 144A		2.87			9-15-2021		464,853		465,260
Dell Equipment Finance Trust Series2018-1 Class A2A 144A		2.97			10-22-2020		5,274,389		5,285,505
Drive Auto Receivables Trust Series2015-BA Class D 144A		3.84			7-15-2021		2,582,594		2,587,092
Drive Auto Receivables Trust Series2016-CA Class C 144A		3.02			11-15-2021		2,761,683		2,764,156
Drive Auto Receivables Trust Series2017-BA Class D 144A		3.72			10-17-2022		3,589,802		3,611,270
DT Auto Owner Trust Series2018-3A Class A 144A		3.02			2-15-2022		2,161,017		2,167,466
Education Loan Asset-Backed Trust Series2013-1 Class A1 (1 Month LIBOR +0.80%) 144A±		2.95			6-25-2026		1,962,732		1,964,614
Educational Services of America Incorporated Series2015-2 Class A (1 Month LIBOR +1.00%) 144A±		3.15			12-25-2056		1,108,044		1,108,076
Enterprise Fleet Financing Trust Series2016-2 Class A2 144A		1.74			2-22-2022		199,131		199,035
Enterprise Fleet Financing Trust Series2017-1 Class A2 144A		2.13			7-20-2022		2,755,404		2,754,382
Enterprise Fleet Financing Trust Series2017-2 Class A2 144A		1.97			1-20-2023		1,576,507		1,574,665
Exeter Automobile Receivables Trust Series2019-2A Class A 144A		2.93			7-15-2022		2,710,300		2,718,065
Fifth Third Auto Trust Series2019-1 Class A2A		2.66			5-16-2022		4,610,000		4,631,440
GM Financial Automobile Leasing Trust Series2017-2 Class A3		2.02			9-21-2020		882,638		882,148
GM Financial Consumer Automobile Receivables Trust Series2017-2A Class A3 144A		1.86			12-16-2021		6,374,239		6,364,348
Honda Auto Receivables Owner Trust Series2018-3 Class A2		2.67			12-21-2020		3,185,609		3,190,226

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

Wells Fargo Ultra Short-Term Income Fund  |  13

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Asset-Backed Securities(continued)
Hyundai Auto Lease Securitization Trust Series2017-C Class A3 144A		2.12	%		2-16-2021	$	4,458,767	$	4,458,110
Mercedes-Benz Auto Lease Trust Series2019-A Class A2		3.01			2-16-2021		5,398,203		5,412,600
MMAF Equipment Finance LLC Series2019-A Class A2 144A		2.84			1-10-2022		3,100,000		3,124,441
Oscar US Funding Trust Series2016-2A Class A4 144A		2.99			12-15-2023		4,700,000		4,729,486
Panhandle Plains Higher Education Authority Incoporated Series2011-1 Class A3 (3 Month LIBOR +0.95%)±		3.27			10-1-2037		2,937,589		2,934,789
Prestige Auto Receivables Trust Series2017-1A Class B 144A		2.39			5-16-2022		1,370,000		1,368,959
SLC Student Loan Trust Series2006-2 Class A5 (3 Month LIBOR +0.10%) ±		2.51			9-15-2026		1,161,384		1,158,738
SLM Student Loan Trust Series2004-8A Class A5 (3 Month LIBOR +0.50%) 144A±		2.78			4-25-2024		141,006		141,038
SLM Student Loan Trust Series2006-10 Class A5A (3 Month LIBOR +0.10%) ±		2.38			4-25-2027		873,998		872,421
SLM Student Loan Trust Series2011-2 Class A1 (1 Month LIBOR +0.60%) ±		2.75			11-25-2027		1,385,637		1,383,013
SLM Student Loan Trust Series2012-3 Class A (1 Month LIBOR +0.65%)±		2.80			12-27-2038		4,691,209		4,683,241
SLM Student Loan Trust Series2013-1 Class A3 (1 Month LIBOR +0.55%) ±		2.70			5-26-2055		4,301,585		4,328,488
South Texas Higher Education2012-1 Class A2 (3 Month LIBOR +0.85%)±		3.17			10-1-2024		3,010,552		3,011,997
Structured Asset Securities Corporation Series1998-2 Class A (1 Month LIBOR +0.52%)±		2.67			2-25-2028		46,969		46,799
Student Loan Consolidation Center Series2011-1 Class A (1 Month LIBOR +1.22%) 144A±		3.37			10-25-2027		4,497,677		4,510,961
Tesla Auto Lease Trust Series2018-B Class A 144A		3.71			8-20-2021		2,007,701		2,043,390
Towd Point Asset Trust Series2018-SL1 Class A (1 Month LIBOR +0.60%) 144A±		2.75			1-25-2046		4,232,272		4,168,180
Verizon Owner Trust Series2017-1A Class A 144A		2.06			9-20-2021		2,786,211		2,785,243
Volvo Financial Equipment LLC Series2017-1A Class A3 144A		1.92			3-15-2021		5,622,154		5,615,623
Wheels SPV LLC Series2018-1A Class A2 144A		3.06			4-20-2027		2,730,339		2,745,385
World Omni Auto Receivables Trust Series2016-B Class A3		1.30			2-15-2022		1,670,907		1,665,081
Total Asset-Backed Securities (Cost $136,854,625)									137,156,240
Corporate Bonds and Notes: 30.10%
Communication Services: 3.16%
Diversified Telecommunication Services: 0.99%
Broadcom Corporation		2.20			1-15-2021		7,000,000		6,966,699
Broadcom Corporation		3.00			1-15-2022		3,585,000		3,614,082
									10,580,781
Media: 1.93%
Discovery Communications LLC		2.20			9-20-2019		3,725,000		3,724,404
Fox Corporation 144A		3.67			1-25-2022		3,880,000		4,021,889
Interpublic Group Companies		3.50			10-1-2020		2,000,000		2,027,472
NBCUniversal Enterprise Incorporated 144A		5.25			12-31-2049		6,000,000		6,195,000
TEGNA Incorporated		5.13			7-15-2020		4,755,000		4,771,643
									20,740,408
Wireless Telecommunication Services: 0.24%
Sprint Spectrum Company LLC 144A		3.36			3-20-2023		2,531,250		2,540,869
Consumer Discretionary: 0.50%
Automobiles: 0.38%
Daimler Finance NA LLC 144A		3.40			2-22-2022		4,000,000		4,099,618
Household Durables: 0.12%
Lennar Corporation		4.50			11-15-2019		1,220,000		1,220,732

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

14  |  Wells Fargo Ultra Short-Term Income Fund

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Consumer Staples: 1.89%
Food Products: 0.91%
Campbell Soup Company		3.30	%		3-15-2021	$	6,040,000	$	6,125,026
Conagra Brands Incorporated		3.80			10-22-2021		3,560,000		3,662,667
									9,787,693
Tobacco: 0.98%
Altria Group Incorporated		4.75			5-5-2021		5,000,000		5,216,228
BAT Capital Corporation		2.30			8-14-2020		5,215,000		5,215,563
									10,431,791
Energy: 1.95%
Oil, Gas & Consumable Fuels: 1.95%
Energy Transfer Partners LP		5.20			2-1-2022		5,435,000		5,764,634
Occidental Petroleum Corporation		2.60			8-13-2021		2,320,000		2,335,419
Occidental Petroleum Corporation		2.70			8-15-2022		3,090,000		3,120,414
Rockies Express Pipeline LLC 144A		5.63			4-15-2020		5,950,000		6,082,417
Sabine Pass Liquefaction LLC		5.63			2-1-2021		3,500,000		3,621,378
									20,924,262
Financials: 14.30%
Banks: 6.83%
Australia & New Zealand Banking Group Limited		2.25			11-9-2020		5,790,000		5,811,560
Bank of America Corporation (3 Month LIBOR +0.63%)±		2.33			10-1-2021		10,000,000		10,015,720
BB&T Corporation		2.15			2-1-2021		7,000,000		7,012,104
BBVA Bancomer SA 144A		7.25			4-22-2020		5,000,000		5,125,050
Citibank NA (3 Month LIBOR +0.60%)±		2.84			5-20-2022		6,000,000		6,067,132
Citigroup Incorporated		2.45			1-10-2020		4,000,000		4,002,906
Huntington National Bank		2.38			3-10-2020		8,000,000		8,006,507
JPMorgan Chase & Company (3 Month LIBOR +0.70%)±		3.21			4-1-2023		2,635,000		2,709,005
JPMorgan Chase & Company (3 Month LIBOR +0.61%)±		3.51			6-18-2022		7,000,000		7,165,877
PNC Bank		2.45			11-5-2020		7,000,000		7,036,223
Synchrony Bank		3.65			5-24-2021		2,650,000		2,704,048
US Bank NA		2.05			10-23-2020		7,460,000		7,471,832
									73,127,964
Capital Markets: 1.37%
Goldman Sachs Group Incorporated		5.38			3-15-2020		5,000,000		5,084,356
Morgan Stanley		2.75			5-19-2022		9,435,000		9,597,125
									14,681,481
Consumer Finance: 3.77%
BMW US Capital LLC 144A		2.15			4-6-2020		1,000,000		999,900
Capital One Financial Corporation		2.50			5-12-2020		7,000,000		7,012,510
Daimler Finance North America LLC 144A		2.20			5-5-2020		1,480,000		1,480,087
Ford Motor Credit Company LLC		3.20			1-15-2021		3,665,000		3,683,139
Ford Motor Credit Company LLC (3 Month LIBOR +0.88%)±		3.22			10-12-2021		2,840,000		2,810,277
General Motors Financial Company Incorporated		4.20			11-6-2021		5,000,000		5,184,943
Hyundai Capital America Incorporated 144A		2.75			9-18-2020		4,000,000		4,009,824
John Deere Capital Corporation		1.95			6-22-2020		3,000,000		2,997,639

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

Wells Fargo Ultra Short-Term Income Fund  |  15

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Consumer Finance(continued)
Nissan Motor Acceptance Corporation 144A		2.25	%		1-13-2020	$	4,000,000	$	3,996,777
Nissan Motor Acceptance Corporation 144A		3.65			9-21-2021		4,000,000		4,097,801
Synchrony Financial		2.70			2-3-2020		4,140,000		4,145,308
									40,418,205
Diversified Financial Services: 0.99%
IBM Credit LLC		3.45			11-30-2020		6,500,000		6,612,389
WEA Finance LLC 144A		2.70			9-17-2019		2,975,000		2,975,183
WEA Finance LLC 144A		3.25			10-5-2020		1,000,000		1,011,864
									10,599,436
Insurance: 1.34%
Axis Specialty Finance LLC		5.88			6-1-2020		1,685,000		1,729,321
Metropolitan Life Global Funding Incorporated 144A		1.55			9-13-2019		5,180,000		5,179,102
Metropolitan Life Global Funding Incorporated 144A		1.75			9-19-2019		3,000,000		2,999,350
Protective Life Global Funding 144A		2.26			4-8-2020		4,415,000		4,414,473
									14,322,246
Health Care: 2.93%
Biotechnology: 0.47%
Abbvie Incorporated		3.38			11-14-2021		4,935,000		5,058,906
Health Care Providers & Services: 1.90%
Anthem Incorporated		2.50			11-21-2020		5,040,000		5,065,245
Cigna Holding Company		4.00			2-15-2022		5,375,000		5,592,000
CVS Health Corporation		2.80			7-20-2020		5,910,000		5,939,461
Tenet Healthcare Corporation		6.00			10-1-2020		3,660,000		3,802,740
									20,399,446
Pharmaceuticals: 0.56%
EMD Finance LLC 144A		2.40			3-19-2020		5,965,000		5,967,478
Industrials: 2.01%
Aerospace & Defense: 0.16%
The Boeing Company		2.70			5-1-2022		1,615,000		1,648,047
Air Freight & Logistics: 0.48%
FedEx Corporation		3.40			1-14-2022		5,000,000		5,158,425
Airlines: 0.57%
Delta Air Lines Incorporated		3.40			4-19-2021		3,000,000		3,041,301
Delta Air Lines Incorporated		3.63			3-15-2022		3,000,000		3,087,544
									6,128,845
Industrial Conglomerates: 0.14%
General Electric Company		4.63			1-7-2021		1,485,000		1,518,574
Machinery: 0.32%
CNH Industrial Capital LLC		4.38			11-6-2020		3,375,000		3,442,061
Road & Rail: 0.34%
ERAC USA Finance LLC 144A		2.35			10-15-2019		3,605,000		3,604,137

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

16  |  Wells Fargo Ultra Short-Term Income Fund

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Information Technology: 1.14%
Semiconductors & Semiconductor Equipment: 0.48%
Qualcomm Incorporated		3.00	%		5-20-2022	$	5,000,000	$	5,142,285
Technology Hardware, Storage & Peripherals: 0.66%
Hewlett Packard Enterprise Company		3.60			10-15-2020		7,000,000		7,100,258
Materials: 1.20%
Chemicals: 0.48%
DowDuPont Incorporated		3.77			11-15-2020		5,000,000		5,103,145
Paper & Forest Products: 0.72%
Georgia Pacific LLC 144A		2.54			11-15-2019		7,740,000		7,741,470
Real Estate: 0.44%
Equity REITs: 0.44%
Crown Castle International Corporation		2.25			9-1-2021		4,700,000		4,700,377
Utilities: 0.58%
Electric Utilities: 0.33%
Duke Energy Florida LLC		2.10			12-15-2019		500,000		499,797
Pinnacle West Capital Corporation		2.25			11-30-2020		3,000,000		2,999,779
									3,499,576
Multi-Utilities: 0.25%
Dominion Energy Incorporated		2.72			8-15-2021		2,700,000		2,722,712
Total Corporate Bonds and Notes (Cost $319,332,640)									322,411,228
						Shares
Exchange-Traded Funds: 5.76%
iShares Short-Term Corporate Bond ETF							572,000		30,762,160
SPDR Portfolio Short Term Corporate Bond ETF							1,000,000		30,880,000
Total Exchange-Traded Funds (Cost $60,738,737)									61,642,160
						Principal
Municipal Obligations: 0.53%
Indiana: 0.30%
Education Revenue: 0.30%
Indiana Secondary Market for Education Loans Incorporated (1 Month LIBOR +0.80%)±		3.07			2-25-2044	$	3,216,070		3,186,868
Wisconsin: 0.23%
Housing Revenue: 0.23%
Wisconsin PFA Affinity Living Group Project (Citizens Bank LOC)		3.75			2-1-2022		2,500,000		2,510,125
Total Municipal Obligations (Cost $5,684,197)									5,696,993
Non-Agency Mortgage-Backed Securities: 20.48%
Angel Oak Mortgage Trust I LLC Series2019-4 Class A1 144A±±		2.99			7-26-2049		5,352,169		5,372,238
Banc of America Funding Corporation Series2016-R1 Class A1 144A±±		2.50			3-25-2040		1,372,119		1,369,478

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

Wells Fargo Ultra Short-Term Income Fund  |  17

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Non-Agency Mortgage-Backed Securities(continued)
BDS Limited Series2018-FL2 Class A (1 Month LIBOR +0.95%) 144A±		3.15	%		8-15-2035	$	2,772,529	$	2,772,528
Bluemountain CLO Limited Series2015-1A Class A1R (3 Month LIBOR +1.33%) 144A±		3.63			4-13-2027		1,138,081		1,138,609
Bunker Hill Loan Depositary Trust Series2019-1 Class A1 144A		3.61			10-26-2048		2,260,275		2,283,513
Bunker Hill Loan Depositary Trust Series2019-2 Class A1 144A		2.88			7-25-2049		4,890,645		4,912,302
Cascade Funding Mortgage Trust Series 2018- RM2 Class A 144A±±		4.00			10-25-2068		1,203,960		1,246,675
CD Commercial Mortgage Trust Series2017-CD3 Class A1		1.97			2-10-2050		2,981,142		2,976,385
CGDBB Commercial Mortgage Trust Series 2017-BIOC Class A (1 Month LIBOR +0.79%) 144A±		2.99			7-15-2032		5,600,000		5,599,991
CIFC Funding Limited Series2012-2RA Class A1 (3 Month LIBOR +0.80%) 144A±		3.08			1-20-2028		7,550,000		7,523,711
CIFC Funding Limited Series2015-2A Class AR (3 Month LIBOR +0.78%) 144A±		3.08			4-15-2027		6,935,849		6,918,836
Citigroup Commercial Mortgage Trust Series 2014-GC25 Class A2		3.26			10-10-2047		656,976		656,835
Citigroup Commercial Mortgage Trust Series 2017-1500 Class A (1 Month LIBOR +0.85%) 144A±		3.05			7-15-2032		6,150,000		6,150,063
Citigroup Commercial Mortgage Trust Series 2017-MDRB Class A (1 Month LIBOR +1.10%) 144A±		3.30			7-15-2030		3,104,805		3,079,246
Collateralized Mortgage Obligation Trust Series 66 Class Z		8.00			9-20-2021		3,496		3,562
Colt Funding LLC Series2018-3 Class A1 144A±±		3.69			10-26-2048		2,624,212		2,645,874
Commercial Mortgage Pass-Through Certificate Series2010-C1 Class A3 144A		4.21			7-10-2046		2,000,059		2,016,901
Commercial Mortgage Trust Series 2014-CR15 Class A2		2.93			2-10-2047		2,372,757		2,371,863
Commercial Mortgage Trust Series 2014-CR16 Class ASB		3.65			4-10-2047		3,804,243		3,929,582
Commercial Mortgage Trust Series 2014-LC17 Class A2		3.16			10-10-2047		1,352,022		1,351,405
Commercial Mortgage Trust Series 2014-UBS5 Class A2		3.03			9-10-2047		994,418		996,847
Commercial Mortgage Trust Series 2015-LC23 Class A1		1.81			10-10-2048		2,165,424		2,158,679
Countrywide Home Loans Mortgage Pass-Through Trust Series 2001-HYB1 Class 1A1±±		4.07			6-19-2031		135,898		137,816
Countrywide Home Loans Mortgage Pass-Through Trust Series 2001-HYB1 Class 2A1±±		4.46			6-19-2031		84,534		84,733
Credit Suisse Mortgage Trust Series 2019-SKLZ Class A (1 Month LIBOR +1.25%) 144A±		3.45			1-15-2034		3,600,000		3,608,207
Crown Point Limited Series2015-3A Class A1AR (3 Month LIBOR +0.91%) 144A±		3.21			12-31-2027		7,030,000		7,030,921
CSAIL Commercial Mortgage Trust Series2015-C4 Class A1		2.01			11-15-2048		785,491		783,047
DLJ Mortgage Acceptance Corporation Series1990-2 Class A±±		3.57			1-25-2022		1,619		1,619
EquiFirst Mortgage Loan Trust Series2003-2 Class 3A3 (1 Month LIBOR +1.13%)±		3.32			9-25-2033		320,914		317,621
FirstKey Mortgage Trust Series2014-1 Class A2 144A±±		3.00			11-25-2044		1,991,123		1,987,060
GCAT Series 2019-NQM1 Class A1 144A		2.99			2-25-2059		6,238,604		6,264,758
GCO Education Loan Funding Trust Series2006-1 Class A9L (3 Month LIBOR +0.16%)±		2.68			5-25-2026		3,454,085		3,451,021
Great Wolf Trust Series 2017 Class A (1 Month LIBOR +0.85%) 144A±		3.05			9-15-2034		2,500,000		2,499,176
GS Mortgage Securities Trust Series2010-C1 Class A1 144A		3.68			8-10-2043		575,125		575,623
GS Mortgage Securities Trust Series2010-C2 Class A2 144A±±		5.16			12-10-2043		3,190,000		3,291,043
GS Mortgage Securities Trust Series2011-GC3 Class A4 144A		4.75			3-10-2044		5,898,882		6,035,771
GS Mortgage Securities Trust Series 2013-KING Class A 144A		2.71			12-10-2027		5,197,360		5,194,445
GS Mortgage Securities Trust Series 2014-GC22 Class A3		3.52			6-10-2047		3,031,556		3,084,086
GS Mortgage Securities Trust Series2015-GS1 Class A1		1.94			11-10-2048		325,110		324,236
GS Mortgage Securities Trust Series2016-GS3 Class A1		1.43			10-10-2049		1,063,029		1,055,977
GSMPS Mortgage Loan Trust Series1998-1 Class A 144A±±		8.00			9-19-2027		37,148		36,941

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

18  |  Wells Fargo Ultra Short-Term Income Fund

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Non-Agency Mortgage-Backed Securities(continued)
Halcyon Loan Advisors Funding Series2014-3A Class AR (3 Month LIBOR +1.10%) 144A±		3.38	%		10-22-2025	$	4,085,986	$	4,086,149
Homeward Opportunities Fund I Trust Series2019-1 Class A1 144A±±		3.45			1-25-2059		4,679,074		4,724,193
Hospitality Mortgage Trust Series 2019 Class A (1 Month LIBOR +1.00%) 144A±		3.20			11-15-2036		4,870,000		4,865,417
JPMorgan Chase Commercial Mortgage Securities Trust Series2011-C5 Class A3		4.17			8-15-2046		4,261,624		4,396,535
JPMorgan Chase Commercial Mortgage Securities Trust Series2015-C28 Class A2		2.77			10-15-2048		93,259		93,211
JPMorgan Chase Commercial Mortgage Securities Trust Series2015-C33 Class A1		1.90			12-15-2048		1,556,274		1,551,893
JPMorgan Chase Commercial Mortgage Securities Trust Series2017-JP5 Class A1		2.09			3-15-2050		2,833,387		2,829,365
JPMorgan Chase Commercial Mortgage Securities Trust Series2018-PHH Class A (1 Month LIBOR +0.91%) 144A±		3.11			6-15-2035		3,793,970		3,794,186
JPMorgan Chase Commercial Mortgage Securities Trust Series2019-MFP Class A (1 Month LIBOR +0.96%) 144A±		3.16			7-15-2036		5,000,000		4,996,878
LCM XII LP Series2013-A Class ARR (3 Month LIBOR +1.14%) 144A±		3.32			7-19-2027		6,000,000		6,000,444
Master Mortgages Trust Series2002-3 Class 4A1±±		4.98			10-25-2032		2,916		2,963
Mello Warehouse Securitization Series2018-W1 Class A (1 Month LIBOR +0.85%) 144A±		3.00			11-25-2051		5,500,000		5,497,202
Mello Warehouse Securitization Series2019-1 Class A (1 Month LIBOR +0.80%) 144A±		2.95			6-25-2052		5,065,000		5,060,515
Morgan Stanley Bank of America Merrill Lynch Trust Series2016-C28 Class A1		1.53			1-15-2049		732,623		728,569
Morgan Stanley Capital I Trust Series2011-C2 Class A4 144A		4.66			6-15-2044		3,125,000		3,232,252
Morgan Stanley Capital I Trust Series2016-C30 Class A1		1.39			9-15-2049		4,022,790		3,992,461
Neuberger Berman Limited Series2015-20A Class AR (3 Month LIBOR +0.80%) 144A±		3.10			1-15-2028		4,085,000		4,062,528
New Residential Mortgage Loan Trust Series 2018-NQM1 Class A1 144A±±		3.99			11-25-2048		3,527,858		3,592,321
Palmer Square Loan Funding Limited Series2018-4A Class A1 (3 Month LIBOR +0.90%) 144A±		3.06			11-15-2026		3,559,657		3,560,842
RAIT Trust Series2017-FL7 Class A (1 Month LIBOR +0.95%) 144A±		3.15			6-15-2037		901,413		900,706
ReadyCap Commercial Mortgage Trust Series2019-5 Class A 144A		3.78			2-25-2052		4,089,964		4,234,891
Salomon Brothers Mortgage Securities VII Series1990-2 Class A±±		2.71			11-25-2020		125,120		125,097
Starwood Mortgage Residential Trust Series2019-1 Class A1 144A±±		2.94			6-25-2049		4,408,182		4,418,187
Stonemont Portfolio Trust Series 2017 Class A (1 Month LIBOR +0.85%) 144A±		3.02			8-20-2030		5,024,734		5,023,087
Structured Asset Mortgage Investments Incorporated Series2001-4 Class A2 ±±		8.15			10-25-2024		3,829		3,856
THL Credit Wind River CLO Limited Series2012-1A Class AR2 (3 Month LIBOR +0.88%) 144A±		3.18			1-15-2026		4,705,000		4,704,920
UBS Commercial Mortgage Trust Series2012-C1 Class A3		3.40			5-10-2045		1,450,550		1,491,312
UBS Commercial Mortgage Trust Series 2018-NYCH Class A (1 Month LIBOR +0.85%) 144A±		3.05			2-15-2032		4,115,000		4,106,015
Vendee Mortgage Trust Series2011-1 Class DA		3.75			2-15-2035		2,178,816		2,207,224
Venture CDO Limited Series2015-20A Class AR (3 Month LIBOR +0.82%) 144A±		3.12			4-15-2027		6,817,700		6,798,303
Verus Securitization Trust Series2019-1 Class A1 144A±±		3.40			12-25-2059		4,469,887		4,511,212
Wilshire Funding Corporation Series1996-3 Class M2±±		7.07			8-25-2032		134,061		131,746
Wilshire Funding Corporation Series1996-3 Class M3±±		7.07			8-25-2032		122,155		118,360
Wilshire Funding Corporation Series1998-2 Class M1±±		2.00			12-28-2037		164,550		166,080
TotalNon-Agency Mortgage-Backed Securities (Cost $218,769,842)									219,248,144

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

Wells Fargo Ultra Short-Term Income Fund  |  19

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Yankee Corporate Bonds and Notes: 16.54%
Communication Services: 0.93%
Diversified Telecommunication Services: 0.93%
Deutsche Telekom International Finance BV 144A		2.23	%		1-17-2020	$	10,000,000	$	9,992,791
Consumer Discretionary: 1.17%
Auto Components: 0.59%
Toyota Industries Corporation 144A		3.11			3-12-2022		6,145,000		6,270,803
Automobiles: 0.11%
Jaguar Land Rover Limited 144A		4.25			11-15-2019		1,220,000		1,215,730
Household Durables: 0.47%
Panasonic Corporation 144A		2.54			7-19-2022		5,000,000		5,048,083
Consumer Staples: 0.51%
Beverages: 0.08%
Suntory Holdings Limited 144A		2.55			9-29-2019		850,000		850,016
Food & Staples Retailing: 0.43%
Seven & I Holdings Company Limited 144A		3.35			9-17-2021		4,500,000		4,608,542
Energy: 0.88%
Oil, Gas & Consumable Fuels: 0.88%
Petroleos Mexicanos Company		5.38			3-13-2022		2,525,000		2,581,813
TransCanada PipeLines Limited		9.88			1-1-2021		6,200,000		6,810,895
									9,392,708
Financials: 11.26%
Banks: 10.07%
ABN AMRO Bank NV 144A		3.40			8-27-2021		7,000,000		7,159,804
ANZ New Zealand International Limited 144A		2.60			9-23-2019		8,175,000		8,176,744
Banco de Credito del Peru 144A		2.25			10-25-2019		4,500,000		4,497,795
Banco Santander Chile 144A		2.50			12-15-2020		8,255,000		8,255,000
Banco Santander SA		3.50			4-11-2022		10,020,000		10,325,970
Banque Federative du Credit Mutuel SA 144A		2.20			7-20-2020		7,470,000		7,481,188
Commonwealth Bank of Australia 144A		1.75			11-7-2019		5,250,000		5,245,815
Corporación Andina de Fomento		4.38			6-15-2022		5,400,000		5,708,718
Danske Bank AS 144A		5.00			1-12-2022		3,565,000		3,759,869
DNB Bank ASA 144A		2.13			10-2-2020		7,000,000		7,003,586
Federation des Caisses Desjardins du Quebec 144A		2.25			10-30-2020		5,000,000		5,013,006
Global Bank Corporation 144A		4.50			10-20-2021		1,180,000		1,214,220
Sumitomo Mitsui Banking Corporation (3 Month LIBOR +0.37%)±		2.69			10-16-2020		5,000,000		5,011,768
Sumitomo Mitsui Financial Group		2.06			7-14-2021		5,000,000		4,994,114
Sumitomo Mitsui Trust Bank Limited 144A		1.95			9-19-2019		7,000,000		6,998,611
Suncorp-Metway Limited 144A		2.38			11-9-2020		4,000,000		4,012,300
Svenska Handelsbanken AB		1.88			9-7-2021		7,000,000		6,973,018
UniCredit SpA 144A		6.57			1-14-2022		5,615,000		6,037,736
									107,869,262

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

20  |  Wells Fargo Ultra Short-Term Income Fund

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Diversified Financial Services: 1.19%
AerCap Ireland Capital DAC		4.45	%		12-16-2021	$	3,590,000	$	3,730,394
General Electric Capital International Funding Company		2.34			11-15-2020		5,322,000		5,292,166
UBS AG 144A		2.20			6-8-2020		3,725,000		3,726,688
									12,749,248
Health Care: 0.75%
Pharmaceuticals: 0.75%
Perrigo Finance Unlimited Company		3.50			3-15-2021		2,665,000		2,679,251
Shire Acquisitions Investment Ireland Limited		1.90			9-23-2019		2,880,000		2,879,366
Shire Acquisitions Investment Ireland Limited		2.40			9-23-2021		2,520,000		2,527,812
									8,086,429
Industrials: 0.21%
Semiconductors & Semiconductor Equipment: 0.21%
NXP BV 144A		4.13			6-1-2021		2,215,000		2,273,088
Materials: 0.83%
Chemicals: 0.47%
Syngenta Finance NV 144A		3.70			4-24-2020		5,000,000		5,019,292
Metals & Mining: 0.36%
ArcelorMittal SA		5.50			3-1-2021		3,660,000		3,818,623
Total Yankee Corporate Bonds and Notes (Cost $175,104,535)									177,194,615
	Yield					Shares
Short-Term Investments: 5.98%
Investment Companies: 5.80%
Wells Fargo Government Money Market Fund Select Class (l)(u)		2.04					62,084,487		62,084,487
						Principal
U.S. Treasury Securities: 0.18%
U.S. Treasury Bill (z)#		1.65			9-12-2019	$	1,950,000		1,949,092
Total Short-Term Investments (Cost $64,033,412)									64,033,579

Total investments in securities (Cost $1,050,259,444)	98.82	%		1,058,357,336
Other assets and liabilities, net	1.18			12,607,762
Total net assets	100.00	%	$	1,070,965,098

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.

(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 the7-day annualized yield at period end.

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

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

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

Wells Fargo Ultra Short-Term Income Fund  |  21

Portfolio of investments—August 31, 2019

Abbreviations:

CDO Collateralized debt obligation

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

LOC Letter of credit

PFA Public Finance Authority

REIT Real estate investment trust

Futures Contracts

Description	Number of contracts	Expiration date	Notional cost			Notional value			Unrealized gains		Unrealized losses
Short
2-Year U.S. Treasury Notes	(1,024)	12-31-2019	$	(221,326,360	)	$	(221,304,000	)	$	22,360	$	0
5-Year U.S. Treasury Notes	(172)	12-31-2019		(20,662,250	)		(20,635,969	)		26,281		0
									$	48,641	$	0

Investments in Affiliates

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

	Shares, beginning of period		Shares purchased		Shares sold		Shares, end of period		Net realized gains (losses)		Net change in unrealized gains (losses)		Income from affiliated securities			Value, end of period		% of net assets
Short-Term Investments
Investment Companies
Securities Lending Cash Investments LLC*		6,848,410		180,438,153		187,286,563		0	$	498	$	0	$	75,771	#	$	0
Wells Fargo Government Money Market Fund Select Class		33,367,503		634,446,848		605,729,864		62,084,487		0		0		1,267,838			62,084,487
									$	498	$	0	$	1,343,609		$	62,084,487		5.80	%

* No longer held at the end of the period

^#  Amount shown represents income before fees and rebates.

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

22  |  Wells Fargo Ultra Short-Term Income Fund

Statement of assets and liabilities—August 31, 2019

Assets
Investments in unaffiliated securities, at value (cost $988,174,957)	$	996,272,849
Investments in affiliated securities, at value (cost $62,084,487)		62,084,487
Cash		3,933,707
Cash due from broker		1,900,199
Principal paydown receivable		222,629
Receivable for Fund shares sold		5,802,495
Receivable for interest		5,627,560
Receivable for securities lending income, net		2,283
Prepaid expenses and other assets		758
Total assets		1,075,846,967
Liabilities
Dividends payable		860,671
Payable for investments purchased		1,155,626
Payable for Fund shares redeemed		1,880,332
Payable for daily variation margin on open futures contracts		112,143
Management fee payable		226,050
Distribution fee payable		3,470
Administration fees payable		93,492
Trustees’ fees and expenses payable		4,214
Accrued expenses and other liabilities		545,871
Total liabilities		4,881,869
Total net assets	$	1,070,965,098
Net assets consist of
Paid-in capital	$	1,093,291,605
Total distributable loss		(22,326,507	)
Total net assets	$	1,070,965,098
Computation of net asset value and offering price per share
Net assets – Class A	$	215,503,254
Shares outstanding – Class A1		25,221,232
Net asset value per share – Class A		$8.54
Maximum offering price per share – Class A2		$8.71
Net assets – Class C	$	5,257,396
Shares outstanding – Class C1		615,941
Net asset value per share – Class C		$8.54
Net assets – Administrator Class	$	13,748,441
Shares outstanding – Administrator Class1		1,616,239
Net asset value per share – Administrator Class		$8.51
Net assets – Institutional Class	$	836,456,007
Shares outstanding – Institutional Class1		97,945,444
Net asset value per share – Institutional Class		$8.54

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.

Wells Fargo Ultra Short-Term Income Fund  |  23

Statement of operations—year ended August 31, 2019

Investment income
Interest	$	26,063,928
Income from affiliated securities		1,285,732
Dividends		929,050
Total investment income		28,278,710
Expenses
Management fee		3,578,435
Administration fees
Class A		365,733
Class C		8,531
Administrator Class		13,776
Institutional Class		621,398
Shareholder servicing fees
Class A		571,457
Class C		13,329
Administrator Class		34,236
Distribution fee
Class C		39,988
Custody and accounting fees		89,751
Professional fees		73,794
Registration fees		134,629
Shareholder report expenses		69,808
Trustees’ fees and expenses		21,592
Other fees and expenses		22,310
Total expenses		5,658,767
Less: Fee waivers and/or expense reimbursements
Fund-level		(1,019,910	)
Administrator Class		(12,184	)
Institutional Class		(155,244	)
Net expenses		4,471,429
Net investment income		23,807,281
Realized and unrealized gains (losses) on investments
Net realized gains (losses) on
Unaffiliated securities		(43,464	)
Affiliated securities		498
Futures contracts		(5,131,020	)
Net realized losses on investments		(5,173,986	)
Net change in unrealized gains (losses) on
Unaffiliated securities		14,684,106
Futures contracts		208,939
Net change in unrealized gains (losses) on investments		14,893,045
Net realized and unrealized gains (losses) on investments		9,719,059
Net increase in net assets resulting from operations	$	33,526,340

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

24  |  Wells Fargo Ultra Short-Term Income Fund

Statement of changes in net assets

	Year ended August 31, 2019						Year ended August 31, 20181
Operations
Net investment income				$	23,807,281					$	20,741,167
Net realized gains (losses) on investments					(5,173,986	)					5,245,220
Net change in unrealized gains (losses) on investments					14,893,045						(8,633,812	)
Net increase in net assets resulting from operations					33,526,340						17,352,575
Distributions to shareholders from net investment income and net realized gains
Class A					(4,691,164	)					(3,917,235	)
Class C					(69,389	)					(37,856	)
Administrator Class					(302,857	)					(394,368	)
Institutional Class					(18,718,916	)					(16,292,768	)
Total distributions to shareholders					(23,782,326	)					(20,642,227	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		3,440,445			29,216,109			9,821,346			83,149,259
Class C		442,509			3,748,406			132,182			1,117,321
Administrator Class		508,071			4,302,476			5,167,624			43,651,565
Institutional Class		79,096,663			671,176,689			96,798,778			819,199,382
					708,443,680						947,117,527
Reinvestment of distributions
Class A		534,195			4,540,259			449,252			3,800,963
Class C		8,101			68,784			4,431			37,441
Administrator Class		35,444			299,894			46,300			390,336
Institutional Class		1,026,803			8,724,965			710,263			6,007,655
					13,633,902						10,236,395
Payment for shares redeemed
Class A		(7,567,845	)		(64,257,129	)		(13,762,670	)		(116,485,682	)
Class C		(432,645	)		(3,668,839	)		(218,323	)		(1,846,435	)
Administrator Class		(711,430	)		(6,017,265	)		(6,654,246	)		(56,159,888	)
Institutional Class		(70,211,953	)		(595,758,632	)		(134,706,249	)		(1,139,718,949	)
					(669,701,865	)					(1,314,210,954	)
Net increase (decrease) in net assets resulting from capital share transactions					52,375,717						(356,857,032	)
Total increase (decrease) in net assets					62,119,731						(360,146,684	)
Net assets
Beginning of period					1,008,845,367						1,368,992,051
End of period				$	1,070,965,098					$	1,008,845,367

¹  Effective for all filings after November 4, 2018, the SEC prospectively eliminated the requirement to parenthetically disclose undistributed net investment income at the end of the period and permitted the aggregation of distributions, with the exception of tax basis returns of capital. Overdistributed net investment income at August 31, 2018 was $597,033. The disaggregated distributions information for the year ended August 31, 2018 is included in Note 9,Distributions to Shareholders, in the notes to the financial statements.

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

Wells Fargo Ultra Short-Term Income Fund  |  25

Financial highlights

(For a share outstanding throughout each period)

	Year ended August 31
CLASS A	2019			2018			2017			2016			2015
Net asset value, beginning of period		$8.46			$8.48			$8.49			$8.46			$8.53
Net investment income		0.17	1		0.13			0.09			0.08			0.05
Net realized and unrealized gains (losses) on investments		0.08			(0.02	)		(0.01	)		0.03			(0.06	)
Total from investment operations		0.25			0.11			0.08			0.11			(0.01	)
Distributions to shareholders from
Net investment income		(0.17	)		(0.13	)		(0.09	)		(0.08	)		(0.05	)
Tax basis return of capital		0.00			0.00			0.00			0.00			(0.01	)
Total distributions to shareholders		(0.17	)		(0.13	)		(0.09	)		(0.08	)		(0.06	)
Net asset value, end of period		$8.54			$8.46			$8.48			$8.49			$8.46
Total return2		3.04	%		1.24	%		0.97	%		1.28	%		(0.07	)%
Ratios to average net assets (annualized)
Gross expenses		0.80	%		0.80	%		0.79	%		0.79	%		0.77	%
Net expenses		0.70	%		0.70	%		0.70	%		0.70	%		0.70	%
Net investment income		2.05	%		1.47	%		1.09	%		0.93	%		0.64	%
Supplemental data
Portfolio turnover rate		36	%		55	%		56	%		51	%		70	%
Net assets, end of period (000s omitted)		$215,503			$243,909			$274,079			$319,565			$151,561

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 Ultra Short-Term Income Fund

Financial highlights

(For a share outstanding throughout each period)

	Year ended August 31
CLASS C	2019			2018			2017			2016			2015
Net asset value, beginning of period		$8.46			$8.47			$8.48			$8.45			$8.52
Net investment income (loss)		0.11			0.06			0.02			0.01			(0.01	)
Net realized and unrealized gains (losses) on investments		0.08			(0.01	)		0.00			0.03			(0.06	)
Total from investment operations		0.19			0.05			0.02			0.04			(0.07	)
Distributions to shareholders from
Net investment income		(0.11	)		(0.06	)		(0.03	)		(0.01	)		(0.00	)1
Tax basis return of capital		0.00			0.00			0.00			0.00			(0.00	)1
Total distributions to shareholders		(0.11	)		(0.06	)		(0.03	)		(0.01	)		(0.00	)1
Net asset value, end of period		$8.54			$8.46			$8.47			$8.48			$8.45
Total return2		2.27	%		0.60	%		0.22	%		0.52	%		(0.81	)%
Ratios to average net assets (annualized)
Gross expenses		1.55	%		1.55	%		1.54	%		1.54	%		1.52	%
Net expenses		1.45	%		1.45	%		1.45	%		1.45	%		1.45	%
Net investment income (loss)		1.31	%		0.72	%		0.34	%		0.17	%		(0.10	)%
Supplemental data
Portfolio turnover rate		36	%		55	%		56	%		51	%		70	%
Net assets, end of period (000s omitted)		$5,257			$5,056			$5,760			$7,464			$7,642

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.

Wells Fargo Ultra Short-Term Income Fund  |  27

Financial highlights

(For a share outstanding throughout each period)

	Year ended August 31
ADMINISTRATOR CLASS	2019			2018			2017			2016			2015
Net asset value, beginning of period		$8.43			$8.45			$8.46			$8.42			$8.50
Net investment income		0.19	1		0.13			0.10			0.09			0.07	1
Net realized and unrealized gains (losses) on investments		0.08			(0.01	)		(0.01	)		0.04			(0.07	)
Total from investment operations		0.27			0.12			0.09			0.13			0.00
Distributions to shareholders from
Net investment income		(0.19	)		(0.14	)		(0.10	)		(0.09	)		(0.07	)
Tax basis return of capital		0.00			0.00			0.00			0.00			(0.01	)
Total distributions to shareholders		(0.19	)		(0.14	)		(0.10	)		(0.09	)		(0.08	)
Net asset value, end of period		$8.51			$8.43			$8.45			$8.46			$8.42
Total return		3.19	%		1.39	%		1.12	%		1.55	%		(0.04	)%
Ratios to average net assets (annualized)
Gross expenses		0.74	%		0.74	%		0.73	%		0.73	%		0.71	%
Net expenses		0.55	%		0.55	%		0.55	%		0.55	%		0.55	%
Net investment income		2.20	%		1.54	%		1.24	%		1.05	%		0.81	%
Supplemental data
Portfolio turnover rate		36	%		55	%		56	%		51	%		70	%
Net assets, end of period (000s omitted)		$13,748			$15,037			$27,245			$26,679			$44,682

¹ Calculated based upon average shares outstanding

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
INSTITUTIONAL CLASS	2019			2018			2017			2016			2015
Net asset value, beginning of period		$8.46			$8.48			$8.49			$8.45			$8.53
Net investment income		0.20			0.15			0.12			0.11			0.08
Net realized and unrealized gains (losses) on investments		0.08			(0.02	)		(0.01	)		0.04			(0.07	)
Total from investment operations		0.28			0.13			0.11			0.15			0.01
Distributions to shareholders from
Net investment income		(0.20	)		(0.15	)		(0.12	)		(0.11	)		(0.08	)
Tax basis return of capital		0.00			0.00			0.00			0.00			(0.01	)
Total distributions to shareholders		(0.20	)		(0.15	)		(0.12	)		(0.11	)		(0.09	)
Net asset value, end of period		$8.54			$8.46			$8.48			$8.49			$8.45
Total return		3.40	%		1.59	%		1.33	%		1.75	%		0.16	%
Ratios to average net assets (annualized)
Gross expenses		0.47	%		0.47	%		0.46	%		0.46	%		0.44	%
Net expenses		0.35	%		0.35	%		0.35	%		0.35	%		0.35	%
Net investment income		2.41	%		1.80	%		1.43	%		1.27	%		0.99	%
Supplemental data
Portfolio turnover rate		36	%		55	%		56	%		51	%		70	%
Net assets, end of period (000s omitted)		$836,456			$744,844			$1,061,908			$1,197,514			$1,137,808

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

Wells Fargo Ultra Short-Term Income Fund  |  29

Notes to financial statements

1. ORGANIZATION

Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is anopen-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 (e.g. taking into account various factors, including yields, maturities, or credit ratings) 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 registeredopen-end investment companies are valued at net asset value. Interests innon-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.

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. When securities are on loan, the Fund receives interest or dividends on those securities. Cash collateral received in connection with its securities lending transactions is invested in Securities Lending Cash Investments, LLC (the “Securities Lending Fund”). Investments in Securities Lending Fund are valued at the evaluated bid price provided by an independent pricing service. Income earned from investment in the Securities Lending Fund (net of fees and rebates), if any, is included in income from affiliated securities on the Statement of Operations.

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. The Fund has the right under the lending agreement to recover the securities from the borrower on demand. 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 such an event, the terms of the agreement allows the unaffiliated securities lending agent to use the collateral to purchase replacement securities on behalf of the Fund or pay the Fund the market value of the loaned securities. The Fund will bear the risk of loss with respect to depreciation of its investment of the cash collateral.

30  |  Wells Fargo Ultra Short-Term Income Fund

Notes to financial statements

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 aremarked-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

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 a 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 is subject to interest rate risk. 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 the 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 onnon-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 fromnon-accrual status.

Income dividends and capital gain distributions from investment companies are recorded on theex-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 theex-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, 2019, the aggregate cost of all investments for federal income tax purposes was $1,050,308,085 and the unrealized gains (losses) consisted of:

Gross unrealized gains	$	8,817,695
Gross unrealized losses		(719,803	)
Net unrealized gains	$	8,097,892

Wells Fargo Ultra Short-Term Income Fund  |  31

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 expiration of capital loss carryforwards. At August 31, 2019, 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	Total distributableloss
$(7,448,920)	$7,448,920

As of August 31, 2019, the Fund had capital loss carryforwards which consist of $1,313,832 in short-term capital losses and $22,815,824 in long-term capital losses.

As of August 31, 2019, the Fund had current year deferred post-October capital losses consisting of $2,111,387 in short-term losses and $3,611,278 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 fund-level 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, 2019:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Agency securities	$	0	$	70,974,377	$	0	$	70,974,377
Asset-backed securities		0		137,156,240		0		137,156,240
Corporate bonds and notes		0		322,411,228		0		322,411,228
Exchange-traded funds		61,642,160		0		0		61,642,160
Municipal obligations		0		5,696,993		0		5,696,993
Non-agency mortgage-backed securities		0		219,248,144		0		219,248,144
Yankee corporate bonds and notes		0		177,194,615		0		177,194,615
Short-term investments
Investment companies		62,084,487		0		0		62,084,487
U.S. Treasury securities		1,949,092		0		0		1,949,092
		125,675,739		932,681,597		0		1,058,357,336
Futures contracts		48,641		0		0		48,641
Total assets	$	125,724,380	$	932,681,597	$	0	$	1,058,405,977

32  |  Wells Fargo Ultra Short-Term Income Fund

Notes to financial statements

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.

For the year ended August 31, 2019, the Fund did not have any transfers into/out of 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 a management fee at the following annual rate based on the Fund’s average daily net assets:

Average daily net assets	Management fee
First $1 billion	0.350%
Next $4 billion	0.325
Next $3 billion	0.290
Next $2 billion	0.265
Over $10 billion	0.255

For the year ended August 31, 2019, 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 (“WellsCap”), 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%
Administrator Class	0.10
Institutional Class	0.08

Waivers and/or expense reimbursements

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. When only certain classes exceed their expense caps, waivers and/or reimbursements are applied against class specific expenses before fund-level expenses. Funds Management has committed through December 31, 2019 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. Prior to or after the commitment expiration date, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

Wells Fargo Ultra Short-Term Income Fund  |  33

Notes to financial statements

Distribution fee

The Trust has adopted a distribution plan for Class C shares of the Fund pursuant to Rule12b-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 thefront-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, 2019, Funds Distributor received $818 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, 2019.

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 Rule17a-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, 2019 were as follows:

Purchases at cost		Sales proceeds
U.S. government	Non-U.S. government	U.S. government	Non-U.S. government
$16,650,778	$596,873,611	$9,989,248	$338,750,943

6. SECURITIES LENDING TRANSACTIONS

The Fund lends its securities through an unaffiliated securities lending agent and 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 increases or decreases in the required collateral are exchanged between the Fund and the counterparty on the next business day. Cash collateral received is invested in the Securities Lending Fund which 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 and is exempt from registration under Section 3(c)(7) of the 1940 Act. Securities Lending Fund is managed by Funds Management and is subadvised by WellsCap. 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.

In the event of counterparty default or the failure of a borrower to return a loaned security, the Fund has the right to use the collateral to offset any losses incurred. As of August 31, 2019, the Fund did not have any securities on loan.

7. DERIVATIVE TRANSACTIONS

During the year ended August 31, 2019, the Fund entered into futures contracts to help manage duration. The Fund had an average notional amount of $277,111,188 in short futures contracts during the year ended August 31, 2019.

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

8. 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, 2019, there were no borrowings by the Fund under the agreement.

34  |  Wells Fargo Ultra Short-Term Income Fund

Notes to financial statements

9. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid was $23,782,326 and $20,642,227 of ordinary income for the years ended August 31, 2019 and August 31, 2018, respectively.

As of August 31, 2019, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Unrealized gains	Post-October capital losses deferred	Capital loss carryforward
$288,593	$8,097,892	$(5,722,665)	$(24,129,656)

Effective for all filings after November 4, 2018, the Securities and Exchange Commission eliminated the requirement to separately state the components of distributions to shareholders under U.S. generally accepted accounting principles. The amounts of distributions to shareholders for the year ended August 31, 2018 were as follows:

	Net investment income
Class A		$3,917,235
Class C		37,856
Administrator Class		394,368
Institutional Class		16,292,768

10. INDEMNIFICATION

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

11. NEW ACCOUNTING PRONOUNCEMENTS

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. ASU2018-13 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 has adopted the removal and modification of disclosures early, as permitted, and will adopt the additional new disclosures at the effective date.

In March 2017, FASB issued ASUNo. 2017-08,Premium Amortization on Purchased Callable Debt Securities. ASU2017-08 shortens the amortization period for certain callable debt securities held at a premium and requires the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount and discounts will continue to be accreted to the maturity date of the security. ASU2017-08 is effective for fiscal years beginning after December 15, 2018 and for interim periods within those fiscal years. During the current reporting period, management of the Fund adopted the change in accounting policy which did not have a material impact to the Fund’s financial statements.

Wells Fargo Ultra Short-Term Income Fund  |  35

Report of independent registered public accounting firm

TO THE SHAREHOLDERS OF THE FUND AND BOARD OF TRUSTEES 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), one of the funds constituting Wells Fargo Funds Trust, including the portfolio of investments, as of August 31, 2019, 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, 2019, 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, 2019, by correspondence with the custodian, transfer agent 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 28, 2019

36  |  Wells Fargo Ultra Short-Term Income Fund

Other information (unaudited)

TAX INFORMATION

For the fiscal year ended August 31, 2019, $17,153,023 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 used to determine how to vote proxies relating to portfolio securities is available, upon request, by calling1-800-222-8222, visiting our website atwfam.com, or visiting the SEC website at sec.gov. Information regarding how the proxies related to portfolio securities were voted during the most recent12-month period ended June 30 is available on the website atwfam.comor by visiting the SEC website at sec.gov.

QUARTERLY PORTFOLIO HOLDINGS INFORMATION

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on FormN-Q or FormN-PORT, which is available by visiting the SEC website at sec.gov. Those forms may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling1-800-SEC-0330.

Wells Fargo Ultra Short-Term Income Fund  |  37

Other information (unaudited)

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 152 mutual funds comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and fourclosed-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. Audit Committee Chair and Investment Committee Chair of the Vincent Memorial Hospital Endowment(non-profit organization). 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; Audit Committee Chairman, since 2019	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, from 2009 to 2018	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

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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
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
Olivia S. Mitchell (Born 1953)	Trustee, since 2006; Nominating and 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	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, anon-profit organization, since 2007. Member of the Board of Trustees of NorthStar Education Finance, Inc., anon-profit organization, since 2007.	N/A
James G. Polisson (Born 1959)	Trustee, since 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, anon-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

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

Wells Fargo Ultra Short-Term Income Fund  |  39

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.
Michelle Rhee3 (Born 1966)	Chief Legal Officer, since 2019	Secretary of Wells Fargo Funds Management, LLC, Chief Legal Counsel of Wells Fargo Asset Management and Assistant General Counsel of Wells Fargo Bank, N.A. since 2018. Associate General Counsel and Managing Director of Bank of America Corporation from 2004 to 2018.
Catherine Kennedy4 (Born 1969)	Secretary, since 2019	Vice President of Wells Fargo Funds Management, LLC and Senior Counsel of the Wells Fargo Legal Department since 2010. Vice President and Senior Counsel of Evergreen Investment Management Company, LLC from 1998 to 2010.
Michael H. Whitaker(Born 1967)	Chief Compliance Officer, since 2016	Chief Compliance Officer of Wells Fargo Asset Management 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 65 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 87 funds and Assistant Treasurer of 65 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 calling1-800-222-8222 or by visiting the website atwfam.com.

³  Michelle Rhee became Chief Legal Officer effective October 22, 2019.

⁴  Catherine Kennedy became Secretary effective October 22, 2019.

40  |  Wells Fargo Ultra Short-Term Income Fund

Other information (unaudited)

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT ANDSUB-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 andsub-advisory agreements. In this regard, at anin-person meeting held on May21-22, 2019 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management andsub-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 investmentsub-advisory agreement (the“Sub-Advisory Agreement”) with Wells Capital Management Incorporated (the“Sub-Adviser”), an affiliate of Funds Management. The Management Agreement and theSub-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 theSub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at anin-person meeting in April 2019, 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 asub-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 theSub-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 2019. 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 theSub-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 wasall-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 aone-year term and determined that the compensation payable to Funds Management and theSub-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 afund-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 theSub-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 theSub-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 theSub-Adviser, and a description of Funds Management’s and theSub-Adviser’s business continuity planning programs and of their approaches to data privacy and cybersecurity. The Board received and reviewed information about Funds Management’s role as administrator of the Fund’s liquidity risk management program. The Board also considered the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for theday-to-day portfolio management of the Fund.

The Board evaluated the ability of Funds Management and theSub-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 theSub-Adviser. In addition, the Board took into account the full range of services provided to the Fund by Funds Management and its affiliates.

Wells Fargo Ultra Short-Term Income Fund  |  41

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, 2018. 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 lower than its benchmark index, the Bloomberg Barclays Short-Term U.S. Government/Corporate Bond Index, for theone-year period under review, but higher than its benchmark for the three-, five- andten-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 othernon-management fees, and Rule12b-1 andnon-Rule12b-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 fromyear-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratios of the Fund were in range of, 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 tore-approve the Advisory Agreements.

Investment management andsub-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 andsub-transfer agency costs (collectively, the “Management Rates”). The Board also reviewed and considered the contractual investmentsub-advisory fee rates that are payable by Funds Management to theSub-Adviser for investmentsub-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 theSub-Adviser forsub-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 theSub-Adviser, and about Funds Management’son-going oversight services. Given the affiliation between Funds Management and theSub-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 theSub-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 proprietary mutual funds compared with those associated with managing assets of other types of clients, including third-partysub-advised fund clients andnon-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 theSub-Adviser under theSub-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”) from providing services to the fund family as a whole. The Board noted that theSub-Adviser’s profitability information with respect to providing services to the Fund and other funds in the family was subsumed in the WFAM and Wells Fargo profitability analysis.

42  |  Wells Fargo Ultra Short-Term 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. Among other things, the Board noted that the levels of profitability reported on afund-by-fund basis varied widely, depending on factors such as the size, type and age 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 received and considered information about the potential for Funds Management to experience economies of scale in the provision of management services to the Fund, the difficulties of calculating economies of scale at an individual fund level, and the extent to which potential scale benefits are shared with shareholders. 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. The Board considered that in addition to management fee breakpoints, Funds Management shares potential economies of scale from its management business in a variety of ways, including through fee waiver and expense reimbursement arrangements, services that benefit shareholders, competitive management fee rates set at the outset without regard to breakpoints, and investments in the business intended to enhance services available to shareholders.

The Board concluded that Funds Management’s arrangements with respect to the Fund, 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 theSub-Adviser

The Board received and considered information regarding potential“fall-out” or ancillary benefits received by Funds Management and its affiliates, including theSub-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 theSub-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 andsub-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 theSub-Adviser, fees earned by Funds Management and theSub-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 theSub-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 aone-year term and determined that the compensation payable to Funds Management and theSub-Adviser under each of the Advisory Agreements was reasonable.

Wells Fargo Ultra Short-Term Income Fund  |  43

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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:wfam.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, call1-800-222-8222 or visit the Fund’s website atwfam.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.

INVESTMENT PRODUCTS: NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

© 2019 Wells Fargo Funds Management, LLC. All rights reserved.

405809 10-19

A223/AR223 08-19

Annual Report

August 31, 2019

Wells Fargo

Adjustable Rate Government Fund

Beginning on January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, paper copies of the Wells Fargo Funds’ annual and semi-annual shareholder reports issued after this date will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Funds’ website, and you will be notified by mail each time a report is posted and provided with a website address to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling1-800-222-8222 or by enrolling at wellsfargo.com/advantagedelivery.

You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports; if you invest directly with the Fund, you can call 1-800-222-8222. Your election to receive reports in paper will apply to all Wells Fargo Funds held in your account with your financial intermediary or, if you are a direct investor, to all Wells Fargo Funds that you hold.

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	36
Other information	37

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Save trees.

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

The views expressed and any forward-looking statements are as of August 31, 2019, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Asset Management. 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 Asset Management and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

INVESTMENT PRODUCTS: NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾  MAY LOSE VALUE

Wells Fargo Adjustable Rate Government Fund  |  1

Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

Dear Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Adjustable Rate Government Fund for the 12-month period that ended August 31, 2019. After the first half of the period yielded either low-single-digit or negative investment returns, U.S. stock and global bond investors generally saw markets recover during the second half amid intensifying market volatility, global economic growth concerns, international trade staredowns, and simmering geopolitical tensions.

Overall, fixed-income investors enjoyed a distinct advantage over stock investors. For the period, U.S. stocks, based on the S&P 500 Index,¹ gained 2.92% and international stocks, as measured by the MSCI ACWI ex USA Index (Net),² fell 3.27%. The MSCI EM Index (Net)³ slipped 4.36%. Among fixed income investors, the Bloomberg Barclays U.S. Aggregate Bond Index⁴ added 10.17%, the Bloomberg Barclays Global Aggregate ex-USD Index⁵ added 5.71%, the Bloomberg Barclays Municipal Bond Index⁶ gained 8.72%, and the ICE BofAML U.S. High Yield Index⁷ added 6.58%.

Entering the fourth quarter of 2018, economic data was encouraging.

Entering the fourth quarter of 2018, there were reasons for investors to be optimistic. The U.S. Bureau of Economic Analysis reported U.S. gross domestic product (GDP) grew 4.2% on an annualized basis during the second quarter. Hiring improved. Unemployment declined. Consumer spending gained. Third-quarter corporate earnings reports were generally positive. U.S. trade negotiations with Mexico and Canada advanced. In September 2018, the U.S. Federal Reserve (Fed) raised the federal funds rate by 25 basis points (bps; 100 bps equal 1.00%) to a target range of between 2.00% and 2.25% in an indication of its confidence that U.S. economic growth was sustainable.

International markets presented numerous challenges. U.S.-China trade tensions increased. The U.S. imposed $200 billion in tariffs on Chinese goods. China reacted with $60 billion in tariffs on U.S. goods. Economic growth in China caused concern. In September 2018, international investors began to factor in a number of disconcerting economic and business data points: lower July manufacturing and industrial orders in Germany; declining purchasing managers’ index numbers for August from the United Kingdom, China, and India; and declining household spending for August in Japan. Taken together, the data fed growing concerns that global economic growth was slowing.

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 and emerging markets, excluding the U.S. 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 the equity market performance of emerging markets. 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 2019. ICE Data Indices, LLC. All rights reserved.

2  |  Wells Fargo Adjustable Rate Government Fund

Letter to shareholders (unaudited)

Investors had to digest unsettling events during the fourth quarter of 2018.

November’s U.S. midterm elections shifted control of the House of Representatives from Republicans to Democrats, presaging partisan clashes that followed and caused uncertainty among investors. A partial U.S. government shutdown driven by partisan policy disputes extended into January 2019. Third-quarter U.S. GDP was announced at an annualized 3.4% rate, lower than the second-quarter rate. Brexit efforts stalled. The value of the renminbi declined even as the People’s Bank of China cut reserve requirement ratios, accelerated infrastructure spending, and cut taxes in efforts to spur economic activity.

The combination of news in the U.S. and generally weak economic indicators outside of the U.S. caused investors to seek safe havens. December’s S&P 500 Index performance was the worst since 1931. Globally, fixed-income investments fared better than stocks during the last two months of the year. The Fed increased the federal funds rate by 25 bps in December 2018 to a target range of between 2.25% and 2.50% even as observers expressed concerns that higher rates could slow the economy.

The market climbs a wall of worry.

Investment returns appeared to reaffirm the adage that markets climb a wall of worry as 2019 opened. Following its December decline, the S&P 500 Index gained 8.01% for the month of January, the best monthly performance in 30 years. Returns for the MSCI ACWI ex USA Index (Net), the Bloomberg Barclays U.S. Aggregate Bond Index, and the Bloomberg Barclays Global Aggregate ex-USD Index also were positive.

In February 2019, signs of slowing global growth grew more ominous. The Bureau of Economic Analysis announced fourth-quarter 2018 GDP grew at an annualized 2.2% rate, down from the levels of the prior two quarters. In a February report, the Bank of England forecast the slowest growth for 2019 since the financial crisis. China and the U.S. continued to wrangle over trade issues. By the end of the first quarter of 2019, more accommodative Fed sentiment and steady, if not spectacular, U.S. economic and business metrics encouraged domestic investors.

Early second-quarter 2019 enthusiasm among investors faded.

During April 2019, favorable sentiment found additional support in reports of sustained low inflation, solid employment data, and first-quarter U.S. GDP of an annualized rate of 3.2%. During May, markets tumbled on mixed investment signals. In the U.S., partisan wrangling ramped up as Democrats and Republicans set their sights on 2020 presidential politics. The U.K.’s Brexit contretemps caused Prime Minister Theresa May to resign. Boris Johnson succeeded her only to exacerbate uncertainty about Brexit’s resolution ahead of an October 2019 deadline. The European Commission downgraded the 2019 growth forecast to 1.2%. The U.S. increased tariffs on products from China, China responded, and then talks broke down. President Donald Trump threatened to turn his foreign policy tariff tool to Mexico over immigration issues.

During the third quarter of 2019, investors regrouped. Just as the investment horizon appeared to darken, sentiment turned and U.S. equity markets gained during June and July. The gains, primarily driven by geopolitical and monetary policy events, pushed equity markets to new highs. European Central Bank President Mario Draghi said that if the outlook doesn’t improve, the bank would cut rates or buy more assets to prop up inflation. President Trump backed off of tariff threats against Mexico and China. In the U.S., the Fed implemented a 0.25% federal funds rate cut in July.

Later in July, the U.S. reversed course and threatened to impose higher tariffs on China’s exports after talks failed. China responded with tariff threats of its own and

“December’s S&P 500 Index performance was the worst since 1931.”

“Following its December decline, the S&P 500 Index gained 8.01% for the month of January, the best monthly performance in 30 years.”

Wells Fargo Adjustable Rate Government Fund  |  3

Letter to shareholders (unaudited)

For further information about your Fund, contact your investment professional, visit our website at wfam.com,

or call us directly at1-800-222-8222.

devalued the renminbi, a move that roiled global markets. Major U.S. stock market indices closed July 2019 with the worst weekly results of the year. Bond prices gained as Treasury yields fell to levels not seen since November 2016 and the yield curve inverted at multiple points along the 30-year arc.

In a microcosm, August 2019 encapsulated many of the unnerving events that plagued investors during the prior 11 months. The U.S.-China trade relationship swung from discouraging to hopeful and back again with no evident compromise on the horizon. Evidence of a continued global economic slowdown continued to mount as central banks in China, New Zealand, and Thailand cut interest rates. Industrial and manufacturing data declined in China, Canada, Japan, and Germany. Adding to the uncertain environment, Italy’s prime minister resigned, many feared a crackdown in Hong Kong as protesters sustained their calls for reform throughout the month, and Boris Johnson planned to suspend Parliament as Brexit’s deadline neared.

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

4  |  Wells Fargo Adjustable Rate Government Fund

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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, 2019

		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 (ESAAX)3	6-30-2000		0.61		0.36		1.04		2.64		0.77		1.24		0.83		0.74
Class C (ESACX)3	6-30-2000		0.76		0.00		0.47		1.76		0.00		0.47		1.58		1.49
Administrator Class (ESADX)3,4	7-30-2010		–		–		–		2.78		0.91		1.38		0.77		0.60
Institutional Class (EKIZX)3	10-1-1991		–		–		–		2.93		1.06		1.51		0.50		0.46
Bloomberg Barclays 6-Month Treasury Bill Index5	–		–		–		–		2.63		1.14		0.69		–		–

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, wfam.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.

6  |  Wells Fargo Adjustable Rate Government Fund

Performance highlights (unaudited)

Growth of $10,000 investment as of August 31, 2019⁶

^‡  CFA^® and Chartered Financial Analyst^® are trademarks owned by CFA Institute.

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, 2019, to waive fees and/or reimburse expenses to the extent necessary to cap the expenses of each class after fee waivers at the amounts shown. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses (if any), and extraordinary expenses are excluded from the expense cap. Prior to or after the commitment expiration date, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Without this cap, the Fund’s returns would have been lower. The expense ratio paid by an investor is the net expense ratio (the total annual fund operating expenses after fee waivers) as stated in the prospectuses.

³  Historical performance shown prior to July 12, 2010, is based on the performance of the Fund’s predecessor, Evergreen Adjustable Rate Fund.

⁴  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.

⁵  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.

⁶  The chart compares the performance of Class A shares for the most recent ten years with the performance of the Bloomberg Barclays6-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%.

⁷  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.

⁸  The Personal Consumption Expenditures Index is the primary measure of consumer spending on goods and services in the U.S. economy. It accounts for about two-thirds of domestic final spending and is part of the personal income report issued by the Bureau of Economic Analysis of the Department of Commerce. You cannot invest directly in an index.

⁹  Amounts are calculated based on the total long-term investments of the Fund. These amounts are subject to change and may have changed since the date specified.

Wells Fargo Adjustable Rate Government Fund  |  7

Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

∎ The Fund (Class A shares, excluding sales charges) outperformed its benchmark, the Bloomberg Barclays 6-Month Treasury Bill Index, for the 12-month period that ended August 31, 2019.

∎ Declining prepayment speeds over the period benefited income generated by the Fund and reduced capital losses. Income also benefited from the lagging nature of the coupon resets, which generally reflect short rates from about six months prior. Fund performance also benefited from tightening spreads on both adjustable-rate mortgages (ARMs) and floating-rate collateralized mortgage obligations (CMOs).

∎ During the period, the Fund continued to reduce its allocation to higher dollar price ARMs in favor of floating-rate CMOs to mitigate the negative impact of prepayments. The Fund also modestly increased its exposure to short-term, fixed-rate pools and CMOs.

∎ The Fund’s duration during the period increased slightly from 0.7 to 0.9 years.

∎ The Fund’s allocation to certain CMOs backed by Federal Housing Administration-insured reverse mortgages detracted from performance, as spreads in the sector widened modestly.

Ten largest holdings (%) as of August 31, 20197
FNMA, Series 2002-66 Class A3, 4.45%, 4-25-2042	2.38
FNMA, Series 2004-W15 Class 3A, 4.56%,6-25-2044	1.76
GNMA, Series 2017-H11 Class FE, 2.91%, 5-20-2067	1.63
FNMA, Series 2006-W01 Class 3A, 4.40%,10-25-2045	1.39
FHLMC, Series T-67 Class 1A1C, 3.90%, 3-25-2036	1.34
FNMA, Series 2001-T12 Class A4, 4.66%, 8-25-2041	1.21
FHLMC, Series T-67 Class 2A1C, 3.74%, 3-25-2036	1.17
FNMA, Series 2004-W12 Class 2A, 4.45%,6-25-2044	1.14
FNMA, Series 2003-W18 Class 2A, 4.43%,6-25-2043	1.11
FNMA, Series 2002-T18 Class A5, 4.63%,5-25-2042	1.04

An economic slowdown

The pace of gross domestic product growth decelerated over the past 12 months as business investment, inventory effects, and trade restrained overall economic activity. For the four quarters that ended June 30, 2019, the U.S. economy expanded by 2.3% in inflation-adjusted terms, compared with a 3.2% trailing 12-month growth rate at the midway point last year. Rising anxiety over the contentious U.S.-China trade relationship appeared to discourage capital investment over the past 12 months. Housing investment also was a modest drag despite low mortgage rates. Consumer spending held up fairly well, however, with the Personal Consumption Expenditures Index⁸ rising at a 2.7% year-over-year rate though the end of July.

Consumption was supported by a relatively firm labor market. While job growth slowed modestly over the period, wages grew by 3.2% in real terms and the unemployment rate remained below 4%. Measures of labor force participation also generally showed improvement.

In response to slower growth and lower-than-targeted inflation, the Federal Open Market Committee (FOMC) voted to reduce its policy rate target for overnight funds by 0.25% at its July 31 meeting. This was the first interest rate reduction engineered by the FOMC in the decade since the financial crisis. While the monetary authorities suggested that their decision should be seen as a “midcourse correction” rather than the beginning of an extended easing cycle, markets have priced multiple additional rate cuts into the term structure. Indeed, interest rates fell across the board over the past 12 months, with the intermediate-term Treasury yields dropping by about 1.35%.

Portfolio allocation as of August 31, 2019⁹

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 beat the benchmark due to slowing ARM prepayments and tighter spreads in both the ARM and floating-rate CMO sectors.

The Fund’s duration modestly increased from 0.7 to 0.9 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.

Please see footnotes on page 7.

8  |  Wells Fargo Adjustable Rate Government Fund

Performance highlights (unaudited)

The trade war is a persistent cloud.

We expect the U.S.-China trade dispute to drag on for some months to come, depressing business investment. Slower growth, in turn, is likely to incline the monetary authorities to ease policy further, with at least one and probably more rate cuts to be implemented over the next 6 to 12 months. A quick resolution to the dispute—as unlikely as that seems at this time—could potentially boost business confidence and perhaps reduce the pressure for accommodative monetary policy. In this environment, we anticipate taking a cautious approach to both duration and sector allocation decisions, with a bias toward up-in-quality trades. As always, relative-value considerations will dominate our security selection process.

Wells Fargo Adjustable Rate Government Fund  |  9

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, 2019 to August 31, 2019.

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 3-1-2019		Ending account value 8-31-2019		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,016.41	$	3.76		0.74	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.48	$	3.77		0.74	%
Class C
Actual	$	1,000.00	$	1,012.58	$	7.56		1.49	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.69	$	7.58		1.49	%
Administrator Class
Actual	$	1,000.00	$	1,017.13	$	3.05		0.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.18	$	3.06		0.60	%
Institutional Class
Actual	$	1,000.00	$	1,017.84	$	2.34		0.46	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.89	$	2.34		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).

10  |  Wells Fargo Adjustable Rate Government Fund

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Agency Securities: 95.47%
FDIC Series2010-S2 Class 3A (1 Month LIBOR +0.70%) 144A±		2.93	%		12-29-2045	$	247,707	$	248,019
FHLMC (10 Year Treasury Constant Maturity-0.85%)±		1.22			3-15-2024		257,294		255,783
FHLMC (11th District Cost of Funds +0.90%)±		1.96			1-1-2022		365		363
FHLMC (11th District Cost of Funds +1.25%)±		2.21			1-1-2030		2,286		2,260
FHLMC (11th District Cost of Funds +1.25%)±		2.21			1-1-2030		1,203		1,189
FHLMC (11th District Cost of Funds +1.25%)±		2.21			7-1-2030		129,856		128,163
FHLMC (11th District Cost of Funds +1.37%)±		2.32			10-1-2030		2,581		2,570
FHLMC (11th District Cost of Funds +1.25%)±		2.35			2-1-2035		129,079		127,252
FHLMC (11th District Cost of Funds +1.74%)±		2.81			3-1-2025		7,276		7,251
FHLMC (11th District Cost of Funds +1.25%)±		3.00			11-1-2030		59,024		59,505
FHLMC (1 Year Treasury Constant Maturity +0.71%)±		3.17			4-1-2030		37,657		38,239
FHLMC (11th District Cost of Funds +2.23%)±		3.35			6-1-2029		43,201		43,470
FHLMC (11th District Cost of Funds +2.39%)±		3.47			6-1-2021		20,647		20,676
FHLMC (5 Year Treasury Constant Maturity +2.44%)±		3.82			8-1-2027		31,438		31,554
FHLMC (3 Year Treasury Constant Maturity +2.44%)±		3.89			5-1-2032		191,910		192,613
FHLMC (3 Year Treasury Constant Maturity +2.27%)±		3.97			4-1-2032		80,510		82,297
FHLMC (6 Month LIBOR +1.42%)±		3.99			2-1-2037		4,483		4,622
FHLMC (3 Year Treasury Constant Maturity +2.44%)±		4.03			5-1-2031		97,545		103,417
FHLMC (12 Month Treasury Average +1.90%)±		4.13			5-1-2028		185,720		192,397
FHLMC (1 Year Treasury Constant Maturity +0.00%)±		4.28			7-1-2030		1,636		1,636
FHLMC (1 Year Treasury Constant Maturity +1.88%)±		4.29			5-1-2035		286,078		300,275
FHLMC (6 Month LIBOR +1.73%)±		4.36			6-1-2024		5,641		5,659
FHLMC (6 Month LIBOR +1.68%)±		4.37			1-1-2037		848,593		881,192
FHLMC (11th District Cost of Funds +2.29%)±		4.38			12-1-2025		7,711		7,739
FHLMC (1 Year Treasury Constant Maturity +2.03%)±		4.39			3-1-2025		32,853		33,941
FHLMC (6 Month LIBOR +1.70%)±		4.42			6-1-2037		332,500		342,166
FHLMC (US Treasury H15 Treasury Bill 6 Month Auction High Discount +1.75%) ±		4.44			1-1-2023		16,766		17,397
FHLMC (5 Year Treasury Constant Maturity +2.13%)±		4.44			8-1-2029		8,375		8,379
FHLMC (3 Year Treasury Constant Maturity +2.71%)±		4.44			6-1-2035		702,505		745,567
FHLMC (1 Year Treasury Constant Maturity +1.99%)±		4.49			11-1-2034		281,052		295,792
FHLMC (1 Year Treasury Constant Maturity +2.03%)±		4.49			12-1-2035		409,215		430,074
FHLMC (1 Year Treasury Constant Maturity +2.04%)±		4.52			1-1-2030		13,677		14,141
FHLMC (12 Month LIBOR +1.77%)±		4.54			6-1-2035		686,563		724,958
FHLMC (12 Month LIBOR +1.66%)±		4.54			2-1-2037		81,040		85,103
FHLMC (1 Year Treasury Constant Maturity +2.25%)±		4.56			9-1-2033		131,309		138,122
FHLMC (US Treasury H15 Treasury Bill 6 Month Auction High Discount +1.94%) ±		4.56			7-1-2024		25,265		25,173
FHLMC (12 Month LIBOR +1.78%)±		4.57			11-1-2035		283,401		295,333
FHLMC (1 Year Treasury Constant Maturity +2.06%)±		4.57			8-1-2033		1,120,396		1,164,841
FHLMC (12 Month LIBOR +1.77%)±		4.58			10-1-2035		694,730		730,784
FHLMC (1 Year Treasury Constant Maturity +2.22%)±		4.60			8-1-2033		68,456		71,346
FHLMC (12 Month LIBOR +1.75%)±		4.60			6-1-2033		389,663		408,811
FHLMC (12 Month LIBOR +1.75%)±		4.60			9-1-2037		293,020		308,139
FHLMC (1 Year Treasury Constant Maturity +2.23%)±		4.60			11-1-2026		61,199		62,969
FHLMC (12 Month LIBOR +1.73%)±		4.61			1-1-2035		392,061		414,958
FHLMC (1 Year Treasury Constant Maturity +2.22%)±		4.61			10-1-2033		226,014		237,482
FHLMC (11th District Cost of Funds +2.57%)±		4.61			12-1-2025		271,687		280,638
FHLMC (12 Month LIBOR +1.74%)±		4.62			12-1-2036		231,157		242,849
FHLMC (1 Year Treasury Constant Maturity +2.10%)±		4.62			10-1-2037		936,275		981,993
FHLMC (12 Month LIBOR +1.77%)±		4.63			10-1-2036		389,557		410,867

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

Wells Fargo Adjustable Rate Government Fund  |  11

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FHLMC (1 Year Treasury Constant Maturity +2.22%)±		4.63	%		10-1-2033	$	814,069	$	855,403
FHLMC (1 Year Treasury Constant Maturity +2.25%)±		4.64			8-1-2035		1,393,092		1,471,283
FHLMC (1 Year Treasury Constant Maturity +2.25%)±		4.64			2-1-2036		804,012		848,023
FHLMC (1 Year Treasury Constant Maturity +2.27%)±		4.65			5-1-2025		56,764		57,488
FHLMC (2 Year Treasury Constant Maturity +2.44%)±		4.65			8-1-2029		90,719		94,458
FHLMC (1 Year Treasury Constant Maturity +2.25%)±		4.65			11-1-2035		486,035		510,953
FHLMC (1 Year Treasury Constant Maturity +2.22%)±		4.65			10-1-2033		511,782		538,747
FHLMC (1 Year Treasury Constant Maturity +2.24%)±		4.65			10-1-2034		719,775		759,595
FHLMC (1 Year Treasury Constant Maturity +2.28%)±		4.66			7-1-2031		606,860		627,747
FHLMC (12 Month LIBOR +1.75%)±		4.66			5-1-2033		143,096		150,293
FHLMC (1 Year Treasury Constant Maturity +2.33%)±		4.66			9-1-2033		576,107		608,166
FHLMC (1 Year Treasury Constant Maturity +2.16%)±		4.66			8-1-2034		705,595		738,944
FHLMC (12 Month LIBOR +1.75%)±		4.66			4-1-2035		151,313		159,055
FHLMC (1 Year Treasury Constant Maturity +2.17%)±		4.67			5-1-2037		78,716		82,697
FHLMC (1 Year Treasury Constant Maturity +2.24%)±		4.68			2-1-2036		723,950		762,943
FHLMC (1 Year Treasury Constant Maturity +2.23%)±		4.69			10-1-2036		284,064		298,406
FHLMC (1 Year Treasury Constant Maturity +2.24%)±		4.69			3-1-2035		549,187		579,378
FHLMC (1 Year Treasury Constant Maturity +2.29%)±		4.70			11-1-2027		379,366		397,138
FHLMC (1 Year Treasury Constant Maturity +2.33%)±		4.70			7-1-2031		152,114		161,156
FHLMC (1 Year Treasury Constant Maturity +2.25%)±		4.70			4-1-2036		400,670		422,589
FHLMC (1 Year Treasury Constant Maturity +2.28%)±		4.70			10-1-2036		307,033		324,309
FHLMC (12 Month LIBOR +1.77%)±		4.70			9-1-2037		392,286		408,487
FHLMC (1 Year Treasury Constant Maturity +2.26%)±		4.70			7-1-2035		439,722		464,162
FHLMC (1 Year Treasury Constant Maturity +2.20%)±		4.71			11-1-2036		806,354		848,703
FHLMC (1 Year Treasury Constant Maturity +2.25%)±		4.71			9-1-2038		146,481		151,752
FHLMC (1 Year Treasury Constant Maturity +2.24%)±		4.71			5-1-2038		639,662		676,996
FHLMC (1 Year Treasury Constant Maturity +2.23%)±		4.72			7-1-2034		103,763		109,351
FHLMC (1 Year Treasury Constant Maturity +2.25%)±		4.72			5-1-2034		73,253		77,245
FHLMC (1 Year Treasury Constant Maturity +2.25%)±		4.72			3-1-2036		431,260		454,249
FHLMC (1 Year Treasury Constant Maturity +2.35%)±		4.73			7-1-2038		339,165		358,132
FHLMC (12 Month Treasury Average +2.30%)±		4.73			6-1-2028		82,111		83,763
FHLMC (1 Year Treasury Constant Maturity +2.23%)±		4.73			5-1-2032		37,709		39,006
FHLMC (1 Year Treasury Constant Maturity +2.23%)±		4.73			5-1-2034		839,274		875,921
FHLMC (1 Year Treasury Constant Maturity +2.17%)±		4.73			6-1-2036		729,435		767,702
FHLMC (1 Year Treasury Constant Maturity +2.23%)±		4.73			7-1-2036		223,626		233,187
FHLMC (1 Year Treasury Constant Maturity +2.23%)±		4.73			4-1-2034		274,528		289,094
FHLMC (6 Month LIBOR +2.08%)±		4.73			6-1-2026		633,822		651,557
FHLMC (1 Year Treasury Constant Maturity +2.22%)±		4.73			12-1-2033		464,073		486,211
FHLMC (12 Month LIBOR +1.74%)±		4.74			5-1-2037		893,117		940,620
FHLMC (12 Month LIBOR +1.87%)±		4.75			5-1-2035		117,167		124,223
FHLMC (1 Year Treasury Constant Maturity +2.25%)±		4.75			8-1-2035		365,133		384,976
FHLMC (1 Year Treasury Constant Maturity +2.24%)±		4.75			4-1-2037		406,132		433,760
FHLMC (12 Month LIBOR +1.86%)±		4.75			7-1-2038		1,356,974		1,429,450
FHLMC (1 Year Treasury Constant Maturity +2.25%)±		4.75			5-1-2034		126,806		132,644
FHLMC (1 Year Treasury Constant Maturity +2.34%)±		4.75			7-1-2034		450,729		470,570
FHLMC (1 Year Treasury Constant Maturity +2.24%)±		4.75			2-1-2036		482,047		509,741
FHLMC (1 Year Treasury Constant Maturity +2.36%)±		4.76			7-1-2027		436,665		440,506
FHLMC (1 Year Treasury Constant Maturity +2.21%)±		4.76			1-1-2037		758,779		800,135
FHLMC (1 Year Treasury Constant Maturity +2.31%)±		4.76			3-1-2037		237,475		250,863
FHLMC (1 Year Treasury Constant Maturity +2.23%)±		4.77			9-1-2035		1,095,337		1,155,342
FHLMC (1 Year Treasury Constant Maturity +2.26%)±		4.77			5-1-2034		1,105,247		1,161,472

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

12  |  Wells Fargo Adjustable Rate Government Fund

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FHLMC (1 Year Treasury Constant Maturity +2.25%)±		4.77	%		12-1-2034	$	278,576	$	294,639
FHLMC (1 Year Treasury Constant Maturity +2.25%)±		4.77			6-1-2035		84,478		89,240
FHLMC (1 Year Treasury Constant Maturity +2.27%)±		4.77			11-1-2029		37,257		37,890
FHLMC (1 Year Treasury Constant Maturity +2.28%)±		4.77			4-1-2037		1,027,582		1,085,996
FHLMC (1 Year Treasury Constant Maturity +2.36%)±		4.77			1-1-2028		2,088		2,194
FHLMC (1 Year Treasury Constant Maturity +2.18%)±		4.78			4-1-2023		134,135		135,173
FHLMC (1 Year Treasury Constant Maturity +2.25%)±		4.78			11-1-2036		682,892		720,121
FHLMC (1 Year Treasury Constant Maturity +2.29%)±		4.79			11-1-2029		60,245		61,499
FHLMC (1 Year Treasury Constant Maturity +2.16%)±		4.79			6-1-2033		438,568		459,453
FHLMC (1 Year Treasury Constant Maturity +2.26%)±		4.79			2-1-2036		366,313		386,705
FHLMC (12 Month LIBOR +1.67%)±		4.79			8-1-2035		136,739		139,861
FHLMC (1 Year Treasury Constant Maturity +2.40%)±		4.80			9-1-2031		62,643		63,686
FHLMC (1 Year Treasury Constant Maturity +2.36%)±		4.80			1-1-2028		15,548		16,246
FHLMC (1 Year Treasury Constant Maturity +2.43%)±		4.80			6-1-2025		46,777		47,439
FHLMC (1 Year Treasury Constant Maturity +2.25%)±		4.80			1-1-2037		99,363		105,023
FHLMC (12 Month LIBOR +1.82%)±		4.80			5-1-2039		609,245		645,422
FHLMC (12 Month LIBOR +1.87%)±		4.81			9-1-2036		549,320		579,192
FHLMC (12 Month LIBOR +1.93%)±		4.82			4-1-2035		801,805		844,364
FHLMC (1 Year Treasury Constant Maturity +2.25%)±		4.82			7-1-2037		393,463		414,732
FHLMC (1 Year Treasury Constant Maturity +2.31%)±		4.82			7-1-2038		497,666		525,773
FHLMC (1 Year Treasury Constant Maturity +2.23%)±		4.82			1-1-2034		625,797		663,040
FHLMC (1 Year Treasury Constant Maturity +2.28%)±		4.82			1-1-2035		249,957		263,166
FHLMC (12 Month Treasury Average +2.46%)±		4.83			10-1-2029		91,511		93,833
FHLMC (1 Year Treasury Constant Maturity +2.36%)±		4.83			2-1-2031		380,824		400,102
FHLMC (1 Year Treasury Constant Maturity +2.23%)±		4.84			4-1-2034		205,291		216,213
FHLMC (1 Year Treasury Constant Maturity +2.35%)±		4.84			9-1-2030		125,178		129,678
FHLMC (1 Year Treasury Constant Maturity +2.33%)±		4.84			10-1-2033		1,060,441		1,113,570
FHLMC (1 Year Treasury Constant Maturity +2.34%)±		4.84			6-1-2035		685,059		723,610
FHLMC (1 Year Treasury Constant Maturity +2.24%)±		4.85			3-1-2027		67,728		69,203
FHLMC (1 Year Treasury Constant Maturity +2.29%)±		4.85			9-1-2033		420,113		443,167
FHLMC (1 Year Treasury Constant Maturity +2.32%)±		4.85			9-1-2029		462,042		485,832
FHLMC (1 Year Treasury Constant Maturity +2.36%)±		4.85			2-1-2036		86,841		91,824
FHLMC (6 Month LIBOR +2.12%)±		4.85			5-1-2037		45,528		47,775
FHLMC (12 Month LIBOR +1.98%)±		4.85			11-1-2032		108,945		111,440
FHLMC (1 Year Treasury Constant Maturity +2.48%)±		4.85			6-1-2030		233,003		243,492
FHLMC (1 Year Treasury Constant Maturity +2.36%)±		4.86			4-1-2038		913,259		967,969
FHLMC (12 Month LIBOR +1.89%)±		4.86			4-1-2037		378,569		400,484
FHLMC (1 Year Treasury Constant Maturity +2.24%)±		4.87			8-1-2027		4,622		4,690
FHLMC (1 Year Treasury Constant Maturity +2.31%)±		4.87			1-1-2036		400,608		423,331
FHLMC (12 Month LIBOR +1.86%)±		4.87			4-1-2037		445,063		471,228
FHLMC (1 Year Treasury Constant Maturity +2.29%)±		4.88			2-1-2036		513,196		541,197
FHLMC (1 Year Treasury Constant Maturity +2.25%)±		4.89			11-1-2022		59,948		61,315
FHLMC (1 Year Treasury Constant Maturity +2.25%)±		4.89			2-1-2034		503,773		537,480
FHLMC (1 Year Treasury Constant Maturity +2.26%)±		4.89			9-1-2038		461,489		484,826
FHLMC (1 Year Treasury Constant Maturity +2.39%)±		4.89			12-1-2032		210,775		221,533
FHLMC (1 Year Treasury Constant Maturity +2.39%)±		4.89			6-1-2035		1,000,720		1,044,229
FHLMC (FHLMC National Average Mortgage Contract +0.00%)±		4.89			2-1-2021		757		757
FHLMC (12 Month LIBOR +1.99%)±		4.89			7-1-2036		678,423		715,559
FHLMC (1 Year Treasury Constant Maturity +2.34%)±		4.90			9-1-2032		1,230,745		1,294,144
FHLMC (1 Year Treasury Constant Maturity +2.28%)±		4.90			2-1-2034		986,944		1,039,285
FHLMC (1 Year Treasury Constant Maturity +2.40%)±		4.91			7-1-2029		50,380		52,636

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

Wells Fargo Adjustable Rate Government Fund  |  13

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal			Value
Agency Securities (continued)
FHLMC (12 Month LIBOR +1.91%)±		4.91	%		3-1-2032	$	339,696		$	358,794
FHLMC (1 Year Treasury Constant Maturity +2.25%)±		4.91			4-1-2038		784,611			827,070
FHLMC (1 Year Treasury Constant Maturity +2.22%)±		4.91			1-1-2033		264,753			276,887
FHLMC (12 Month LIBOR +1.84%)±		4.91			4-1-2035		1,007,850			1,061,554
FHLMC (1 Year Treasury Constant Maturity +2.23%)±		4.92			3-1-2034		568,308			596,682
FHLMC (1 Year Treasury Constant Maturity +2.36%)±		4.92			6-1-2035		386,481			407,963
FHLMC (1 Year Treasury Constant Maturity +2.28%)±		4.93			11-1-2035		703,180			737,251
FHLMC (1 Year Treasury Constant Maturity +2.23%)±		4.93			3-1-2034		632,261			666,142
FHLMC (1 Year Treasury Constant Maturity +2.25%)±		4.94			2-1-2036		647,894			681,075
FHLMC (1 Year Treasury Constant Maturity +2.47%)±		4.94			7-1-2034		593,073			625,025
FHLMC (1 Year Treasury Constant Maturity +2.40%)±		4.94			11-1-2029		374,974			390,387
FHLMC (1 Year Treasury Constant Maturity +2.38%)±		4.96			1-1-2037		1,296,215			1,371,557
FHLMC (1 Year Treasury Constant Maturity +2.23%)±		4.96			2-1-2034		905,891			949,227
FHLMC (1 Year Treasury Constant Maturity +2.47%)±		4.97			6-1-2035		181,237			190,558
FHLMC (1 Year Treasury Constant Maturity +2.55%)±		4.97			9-1-2029		80,573			81,619
FHLMC (1 Year Treasury Constant Maturity +2.23%)±		4.98			2-1-2034		444,333			469,689
FHLMC (1 Year Treasury Constant Maturity +2.45%)±		4.99			10-1-2030		1,165,966			1,217,671
FHLMC (1 Year Treasury Constant Maturity +2.38%)±		4.99			4-1-2034		353,319			369,403
FHLMC (Federal Cost of Funds +2.72%)±		5.00			4-1-2023		6,030			6,052
FHLMC (1 Year Treasury Constant Maturity +2.48%)±		5.00			10-1-2025		47,281			48,130
FHLMC		5.00			10-1-2022		6,089			6,283
FHLMC (1 Year Treasury Constant Maturity +2.36%)±		5.00			2-1-2035		792,505			841,958
FHLMC (1 Year Treasury Constant Maturity +2.43%)±		5.05			8-1-2029		55,599			56,577
FHLMC (1 Year Treasury Constant Maturity +2.48%)±		5.06			6-1-2030		28,464			29,089
FHLMC (1 Year Treasury Constant Maturity +2.44%)±		5.07			4-1-2029		77,988			79,238
FHLMC (1 Year Treasury Constant Maturity +2.52%)±		5.07			11-1-2029		89,980			92,964
FHLMC (1 Year Treasury Constant Maturity +2.60%)±		5.10			6-1-2032		135,191			137,662
FHLMC (1 Year Treasury Constant Maturity +2.61%)±		5.10			5-1-2028		167,491			173,752
FHLMC (1 Year Treasury Constant Maturity +2.61%)±		5.11			9-1-2030		94,076			96,171
FHLMC (1 Year Treasury Constant Maturity +2.48%)±		5.16			6-1-2030		74,936			76,846
FHLMC (1 Year Treasury Constant Maturity +2.48%)±		5.23			10-1-2024		65,917			68,100
FHLMC (1 Year Treasury Constant Maturity +2.48%)±		5.23			2-1-2030		28,017			28,536
FHLMC (6 Month LIBOR +2.38%)±		5.27			2-1-2024		12,459			12,500
FHLMC (1 Year Treasury Constant Maturity +2.32%)±		5.49			8-1-2024		173,622			175,093
FHLMC (6 Month LIBOR +3.83%)±		6.71			11-1-2026		27,219			27,867
FHLMC Series 0020 Class F±±		3.49			7-1-2029		8,099			8,319
FHLMC Series 1671 Class QA (11th District Cost of Funds +0.95%)±		2.09			2-15-2024		590,190			598,437
FHLMC Series 1686 Class FE (11th District Cost of Funds +1.10%)±		2.24			2-15-2024		12,421			12,623
FHLMC Series 1730 Class FA (10 Year Treasury Constant Maturity-0.60%)±		1.47			5-15-2024		88,638			88,546
FHLMC Series 2315 Class FW (1 Month LIBOR +0.55%)±		2.75			4-15-2027		63,167			63,544
FHLMC Series 2391 Class EF (1 Month LIBOR +0.50%)±		2.70			6-15-2031		59,951			60,362
FHLMC Series 2454 Class SL (1 Month LIBOR +8.00%)±(c)		5.80			3-15-2032		118,702			20,142
FHLMC Series 2461 Class FI (1 Month LIBOR +0.50%)±		2.70			4-15-2028		83,630	��		84,072
FHLMC Series 2464 Class FE (1 Month LIBOR +1.00%)±		3.20			3-15-2032		77,367			79,440
FHLMC Series 2466 Class FV (1 Month LIBOR +0.55%)±		2.75			3-15-2032		153,289			154,699
FHLMC Series 2538 Class F (1 Month LIBOR +0.60%)±		2.80			12-15-2032		333,259			337,006
FHLMC Series 3436 Class A±±		4.44			11-15-2036		562,829			579,522
FHLMC SeriesT-15 Class A6 (1 Month LIBOR +0.40%)±		2.55			11-25-2028		386,555			388,036
FHLMC SeriesT-16 Class A (1 Month LIBOR +0.10%)±		2.25			6-25-2029		1,134,221			1,173,128
FHLMC SeriesT-20 Class A7 (1 Month LIBOR +0.15%)±		2.30			12-25-2029		2,386,213			2,346,017
FHLMC SeriesT-21 Class A (1 Month LIBOR +0.18%)±		2.33			10-25-2029		924,408			919,166

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

14  |  Wells Fargo Adjustable Rate Government Fund

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FHLMC SeriesT-23 Class A (1 Month LIBOR +0.14%)±		2.29	%		5-25-2030	$	1,364,375	$	1,362,672
FHLMC SeriesT-27 Class A (1 Month LIBOR +0.15%)±		2.30			10-25-2030		895,401		899,692
FHLMC SeriesT-30 Class A7 (1 Month LIBOR +0.24%)±		2.39			12-25-2030		1,011,900		982,311
FHLMC SeriesT-35 Class A (1 Month LIBOR +0.14%)±		2.55			9-25-2031		2,414,479		2,390,663
FHLMC SeriesT-48 Class 2A±±		4.26			7-25-2033		1,851,398		1,887,979
FHLMC SeriesT-54 Class 4A±±		4.22			2-25-2043		1,318,213		1,348,898
FHLMC SeriesT-55 Class 1A1		6.50			3-25-2043		54,828		62,787
FHLMC SeriesT-56 Class 3AF (1 Month LIBOR +1.00%)±		3.15			5-25-2043		869,828		889,075
FHLMC SeriesT-62 Class 1A1 (12 Month Treasury Average +1.20%)±		3.68			10-25-2044		2,961,013		2,992,167
FHLMC SeriesT-63 Class 1A1 (12 Month Treasury Average +1.20%)±		3.51			2-25-2045		2,618,100		2,615,318
FHLMC SeriesT-66 Class 2A1±±		4.35			1-25-2036		1,611,752		1,608,505
FHLMC SeriesT-67 Class 1A1C±±		3.90			3-25-2036		3,795,174		3,873,792
FHLMC SeriesT-67 Class 2A1C±±		3.74			3-25-2036		3,346,975		3,391,075
FHLMC SeriesT-75 Class A1 (1 Month LIBOR +0.04%)±		2.31			12-25-2036		215,557		215,807
FNMA (11th District Cost of Funds +1.25%)±		2.18			4-1-2021		11,071		11,060
FNMA (11th District Cost of Funds +1.25%)±		2.20			11-1-2024		1,157		1,153
FNMA (11th District Cost of Funds +1.25%)±		2.21			11-1-2020		51,240		51,034
FNMA (11th District Cost of Funds +1.25%)±		2.21			3-1-2033		96,831		96,857
FNMA (1 Year Treasury Constant Maturity +1.66%)±		2.26			7-1-2048		1,893,496		1,913,791
FNMA (11th District Cost of Funds +1.25%)±		2.35			11-1-2023		11,002		10,922
FNMA (11th District Cost of Funds +1.25%)±		2.36			1-1-2038		48,713		48,590
FNMA (11th District Cost of Funds +1.26%)±		2.37			1-1-2035		666,529		671,235
FNMA (11th District Cost of Funds +1.25%)±		2.38			3-1-2021		25		24
FNMA (11th District Cost of Funds +1.25%)±		2.39			4-1-2042		1,714,591		1,706,448
FNMA (11th District Cost of Funds +1.25%)±		2.39			10-1-2044		932,174		927,367
FNMA (11th District Cost of Funds +1.25%)±		2.43			9-1-2037		1,656,570		1,649,736
FNMA (11th District Cost of Funds +1.44%)±		2.59			4-1-2024		1,071,234		1,074,062
FNMA (11th District Cost of Funds +1.78%)±		2.76			1-1-2036		193,902		194,922
FNMA (11th District Cost of Funds +1.82%)±		2.78			5-1-2028		36,641		36,785
FNMA (11th District Cost of Funds +1.25%)±		2.80			7-1-2020		111,500		111,179
FNMA (11th District Cost of Funds +1.80%)±		2.89			3-1-2033		225,061		225,261
FNMA (11th District Cost of Funds +1.83%)±		2.90			1-1-2036		29,626		29,733
FNMA (11th District Cost of Funds +1.78%)±		2.91			11-1-2022		8,257		8,248
FNMA (11th District Cost of Funds +1.92%)±		2.94			9-1-2030		219,759		218,141
FNMA (11th District Cost of Funds +1.88%)±		2.97			10-1-2024		459		458
FNMA (11th District Cost of Funds +1.86%)±		2.97			10-1-2027		336,779		339,759
FNMA (11th District Cost of Funds +1.19%)±		3.04			10-1-2034		97,187		97,181
FNMA (11th District Cost of Funds +1.70%)±		3.07			4-1-2030		827		820
FNMA (11th District Cost of Funds +2.09%)±		3.08			4-1-2020		318,010		317,669
FNMA (11th District Cost of Funds +1.25%)±		3.16			4-1-2034		973,243		985,771
FNMA (3 Year Treasury Constant Maturity +2.47%)±		3.22			6-1-2024		12,770		12,897
FNMA (1 Month LIBOR +1.17%)±		3.55			5-1-2029		40,808		42,129
FNMA (6 Month LIBOR +1.15%)±		3.65			8-1-2032		155,347		155,762
FNMA (6 Month LIBOR +1.00%)±		3.67			6-1-2021		6,121		6,197
FNMA (12 Month Treasury Average +1.25%)±		3.74			1-1-2021		432		434
FNMA (12 Month Treasury Average +1.25%)±		3.75			1-1-2021		712		718
FNMA (3 Year Treasury Constant Maturity +2.15%)±		3.77			10-1-2024		26,318		26,751
FNMA (6 Month LIBOR +1.18%)±		3.85			8-1-2033		161,625		167,505
FNMA (5 Year Treasury Constant Maturity +1.90%)±		3.85			9-1-2031		184,449		191,172
FNMA (1 Year Treasury Constant Maturity +1.52%)±		3.86			8-1-2033		733,796		758,604
FNMA (6 Month LIBOR +1.37%)±		3.87			1-1-2032		196,051		202,509

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

Wells Fargo Adjustable Rate Government Fund  |  15

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA (6 Month LIBOR +1.38%)±		3.88	%		12-1-2031	$	17,817	$	17,862
FNMA (12 Month Treasury Average +1.40%)±		3.91			12-1-2030		66,546		65,795
FNMA (3 Year Treasury Constant Maturity +1.21%)±		3.95			3-1-2030		15,815		16,034
FNMA (6 Month LIBOR +1.08%)±		3.95			9-1-2032		51,051		51,036
FNMA (1 Year Treasury Constant Maturity +1.63%)±		4.00			11-1-2029		6,895		6,920
FNMA (6 Month LIBOR +1.16%)±		4.00			8-1-2033		3,262		3,313
FNMA (1 Year Treasury Constant Maturity +1.50%)±		4.00			8-1-2030		913,875		938,001
FNMA (6 Month LIBOR +1.43%)±		4.09			10-1-2037		601,990		621,657
FNMA (6 Month LIBOR +1.42%)±		4.09			12-1-2031		190,015		196,639
FNMA (6 Month LIBOR +1.53%)±		4.11			1-1-2035		988,580		1,022,487
FNMA (1 Year Treasury Constant Maturity +1.76%)±		4.13			8-1-2032		127,393		130,464
FNMA (Federal Cost of Funds +2.00%)±		4.14			8-1-2029		32,915		34,096
FNMA (6 Month LIBOR +1.52%)±		4.14			11-1-2034		337,321		348,629
FNMA (11th District Cost of Funds +1.87%)±		4.15			5-1-2034		133,158		135,728
FNMA (6 Month LIBOR +1.55%)±		4.17			12-1-2022		3,185		3,195
FNMA (5 Year Treasury Constant Maturity +2.43%)±		4.21			6-1-2028		25,563		25,793
FNMA (1 Year Treasury Constant Maturity +1.67%)±		4.21			4-1-2033		172,808		179,786
FNMA (11th District Cost of Funds +1.82%)±		4.21			6-1-2034		130,691		133,311
FNMA (11th District Cost of Funds +1.93%)±		4.23			12-1-2036		65,384		67,751
FNMA (12 Month LIBOR +1.52%)±		4.24			9-1-2036		367,247		381,904
FNMA (6 Month LIBOR +1.63%)±		4.25			1-1-2022		4,225		4,224
FNMA (6 Month LIBOR +1.38%)±		4.25			8-1-2031		121,280		123,315
FNMA (12 Month LIBOR +1.53%)±		4.25			9-1-2035		937,058		976,093
FNMA (1 Year Treasury Constant Maturity +1.88%)±		4.26			8-1-2031		54,490		56,672
FNMA (6 Month LIBOR +1.55%)±		4.28			3-1-2034		208,521		215,355
FNMA (6 Month LIBOR +1.42%)±		4.29			9-1-2031		124,661		127,576
FNMA (1 Year Treasury Constant Maturity +1.58%)±		4.29			3-1-2034		289,463		303,900
FNMA (6 Month LIBOR +1.74%)±		4.37			10-1-2024		32,947		33,083
FNMA (6 Month LIBOR +1.74%)±		4.37			12-1-2024		46,366		46,493
FNMA (1 Year Treasury Constant Maturity +1.74%)±		4.37			1-1-2035		40,928		42,485
FNMA (12 Month Treasury Average +1.86%)±		4.38			11-1-2035		27,187		28,049
FNMA (3 Year Treasury Constant Maturity +2.14%)±		4.39			10-1-2025		5,477		5,511
FNMA (12 Month Treasury Average +1.89%)±		4.40			11-1-2035		693,227		721,215
FNMA (12 Month LIBOR +1.65%)±		4.40			9-1-2037		558,880		578,962
FNMA (1 Year Treasury Constant Maturity +1.93%)±		4.40			7-1-2038		512,902		532,054
FNMA (12 Month LIBOR +1.67%)±		4.41			7-1-2035		960,348		1,009,494
FNMA (1 Year Treasury Constant Maturity +1.70%)±		4.42			2-1-2033		262,067		270,563
FNMA (12 Month Treasury Average +1.94%)±		4.42			6-1-2035		531,897		550,286
FNMA (12 Month Treasury Average +1.95%)±		4.42			7-1-2035		879,484		910,142
FNMA (12 Month Treasury Average +1.91%)±		4.43			11-1-2035		122,022		126,141
FNMA (1 Year Treasury Constant Maturity +2.03%)±		4.43			11-1-2027		20,306		20,379
FNMA (1 Year Treasury Constant Maturity +1.87%)±		4.44			4-1-2030		46,661		47,270
FNMA (Federal Cost of Funds +2.38%)±		4.44			2-1-2029		895,194		918,594
FNMA (1 Year Treasury Constant Maturity +1.82%)±		4.45			4-1-2038		375,785		393,638
FNMA (12 Month Treasury Average +1.98%)±		4.46			7-1-2035		512,630		530,298
FNMA (1 Year Treasury Constant Maturity +2.09%)±		4.46			8-1-2025		17,400		17,680
FNMA (1 Year Treasury Constant Maturity +2.13%)±		4.49			10-1-2025		78,642		80,023
FNMA (1 Year Treasury Constant Maturity +2.12%)±		4.49			8-1-2026		26,375		26,680
FNMA (12 Month LIBOR +1.80%)±		4.49			7-1-2033		572,478		602,705
FNMA (1 Year Treasury Constant Maturity +2.11%)±		4.49			7-1-2035		456,684		479,929
FNMA (1 Year Treasury Constant Maturity +2.10%)±		4.50			7-1-2035		198,600		206,498

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

16  |  Wells Fargo Adjustable Rate Government Fund

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA (12 Month Treasury Average +1.98%)±		4.50	%		11-1-2035	$	771,481	$	791,112
FNMA (1 Year Treasury Constant Maturity +2.05%)±		4.50			12-1-2033		533,905		555,228
FNMA (1 Year Treasury Constant Maturity +2.18%)±		4.51			9-1-2035		934,601		984,162
FNMA (1 Year Treasury Constant Maturity +1.89%)±		4.52			6-1-2032		55,739		56,011
FNMA (1 Year Treasury Constant Maturity +2.28%)±		4.53			9-1-2026		29,817		30,301
FNMA (6 Month LIBOR +1.74%)±		4.53			4-1-2033		304,369		317,858
FNMA (1 Year Treasury Constant Maturity +2.14%)±		4.53			10-1-2033		195,664		205,699
FNMA (12 Month Treasury Average +2.00%)±		4.53			10-1-2035		391,202		405,827
FNMA (12 Month LIBOR +1.63%)±		4.54			1-1-2040		191,820		201,243
FNMA (1 Year Treasury Constant Maturity +2.29%)±		4.54			12-1-2030		19,861		20,226
FNMA (12 Month LIBOR +1.67%)±		4.54			9-1-2034		820,202		862,372
FNMA (1 Year Treasury Constant Maturity +2.05%)±		4.55			9-1-2035		1,345,057		1,413,467
FNMA (6 Month LIBOR +1.93%)±		4.55			6-1-2032		65,607		66,313
FNMA (12 Month LIBOR +1.68%)±		4.55			9-1-2038		578,779		607,110
FNMA (1 Year Treasury Constant Maturity +2.12%)±		4.55			10-1-2035		131,243		137,864
FNMA (12 Month LIBOR +1.91%)±		4.56			8-1-2034		1,348,534		1,426,654
FNMA (12 Month LIBOR +1.67%)±		4.56			11-1-2038		283,862		297,991
FNMA (1 Year Treasury Constant Maturity +2.11%)±		4.56			9-1-2036		313,896		326,467
FNMA (1 Year Treasury Constant Maturity +2.19%)±		4.57			8-1-2033		506,389		531,806
FNMA (1 Year Treasury Constant Maturity +2.25%)±		4.57			10-1-2029		63,651		65,021
FNMA (1 Year Treasury Constant Maturity +2.18%)±		4.57			9-1-2036		394,347		418,759
FNMA (12 Month Treasury Average +2.07%)±		4.57			1-1-2035		313,350		317,813
FNMA (1 Year Treasury Constant Maturity +2.08%)±		4.58			11-1-2035		435,359		456,101
FNMA (1 Year Treasury Constant Maturity +2.21%)±		4.58			8-1-2035		796,222		845,458
FNMA (12 Month LIBOR +1.70%)±		4.58			8-1-2036		469,794		492,717
FNMA (12 Month LIBOR +1.75%)±		4.58			7-1-2035		464,057		488,756
FNMA (1 Year Treasury Constant Maturity +2.21%)±		4.59			7-1-2033		47,869		50,500
FNMA (1 Year Treasury Constant Maturity +2.21%)±		4.59			7-1-2035		300,309		318,857
FNMA (1 Year Treasury Constant Maturity +2.12%)±		4.59			4-1-2040		105,741		111,185
FNMA (12 Month LIBOR +1.72%)±		4.59			6-1-2035		138,767		146,263
FNMA (1 Year Treasury Constant Maturity +2.03%)±		4.60			12-1-2032		504,096		523,367
FNMA (1 Year Treasury Constant Maturity +2.22%)±		4.60			6-1-2026		7,148		7,326
FNMA (1 Year Treasury Constant Maturity +2.22%)±		4.60			7-1-2035		133,048		140,670
FNMA (1 Year Treasury Constant Maturity +2.22%)±		4.60			7-1-2035		524,792		554,599
FNMA (1 Year Treasury Constant Maturity +2.13%)±		4.60			1-1-2037		665,093		700,228
FNMA (1 Year Treasury Constant Maturity +2.04%)±		4.61			6-1-2034		457,536		480,678
FNMA (1 Year Treasury Constant Maturity +2.18%)±		4.61			6-1-2035		239,550		252,343
FNMA (12 Month LIBOR +1.82%)±		4.61			4-1-2035		795,428		837,336
FNMA (12 Month LIBOR +1.71%)±		4.62			2-1-2038		406,158		426,498
FNMA (1 Year Treasury Constant Maturity +2.18%)±		4.62			11-1-2038		453,841		479,313
FNMA (1 Year Treasury Constant Maturity +2.12%)±		4.62			5-1-2034		409,435		426,277
FNMA (12 Month LIBOR +1.74%)±		4.62			5-1-2032		158,034		160,330
FNMA (1 Year Treasury Constant Maturity +2.22%)±		4.62			10-1-2034		136,237		144,029
FNMA (1 Year Treasury Constant Maturity +2.12%)±		4.62			3-1-2031		30,805		30,905
FNMA (12 Month LIBOR +1.79%)±		4.62			6-1-2036		232,871		246,198
FNMA (12 Month Treasury Average +2.48%)±		4.62			6-1-2040		694,054		714,279
FNMA (12 Month LIBOR +1.71%)±		4.62			3-1-2037		288,590		304,651
FNMA (1 Year Treasury Constant Maturity +2.13%)±		4.63			5-1-2033		336,031		348,697
FNMA (1 Year Treasury Constant Maturity +2.33%)±		4.63			11-1-2024		55,369		56,892
FNMA (1 Year Treasury Constant Maturity +2.13%)±		4.63			5-1-2033		338,498		356,176
FNMA (1 Year Treasury Constant Maturity +2.21%)±		4.63			9-1-2022		59,022		59,499

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

Wells Fargo Adjustable Rate Government Fund  |  17

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA (12 Month LIBOR +1.70%)±		4.63	%		4-1-2034	$	454,696	$	476,772
FNMA (12 Month LIBOR +1.72%)±		4.64			12-1-2033		836,609		878,907
FNMA (US Treasury H15 Treasury Bill 6 Month Auction High Discount +2.23%)±		4.64			7-1-2025		1,207		1,227
FNMA (12 Month LIBOR +1.90%)±		4.64			10-1-2034		404,468		425,453
FNMA (1 Year Treasury Constant Maturity +2.20%)±		4.64			7-1-2029		372,583		392,923
FNMA (1 Year Treasury Constant Maturity +2.18%)±		4.64			1-1-2036		537,272		567,476
FNMA (1 Year Treasury Constant Maturity +2.10%)±		4.65			5-1-2034		510,630		531,052
FNMA (6 Month LIBOR +2.00%)±		4.65			10-1-2024		53,198		54,206
FNMA (1 Year Treasury Constant Maturity +2.17%)±		4.65			12-1-2034		853,658		896,340
FNMA (12 Month LIBOR +1.65%)±		4.65			12-1-2033		873,015		907,504
FNMA (1 Year Treasury Constant Maturity +2.21%)±		4.66			6-1-2027		68,976		70,502
FNMA (1 Year Treasury Constant Maturity +2.09%)±		4.66			1-1-2036		98,539		103,612
FNMA (1 Year Treasury Constant Maturity +2.21%)±		4.66			1-1-2027		251,570		253,778
FNMA (1 Year Treasury Constant Maturity +2.20%)±		4.66			9-1-2035		318,294		337,354
FNMA (12 Month LIBOR +1.75%)±		4.67			4-1-2034		264,633		277,738
FNMA (1 Year Treasury Constant Maturity +2.18%)±		4.67			9-1-2035		126,275		133,286
FNMA (1 Year Treasury Constant Maturity +2.29%)±		4.67			6-1-2037		372,084		390,402
FNMA (1 Year Treasury Constant Maturity +2.17%)±		4.67			12-1-2039		181,096		185,858
FNMA (6 Month LIBOR +2.44%)±		4.67			1-1-2033		88,263		90,158
FNMA (1 Year Treasury Constant Maturity +2.19%)±		4.67			2-1-2036		482,214		508,908
FNMA (1 Year Treasury Constant Maturity +2.18%)±		4.68			12-1-2035		258,651		272,532
FNMA (1 Year Treasury Constant Maturity +2.15%)±		4.68			5-1-2035		458,496		482,611
FNMA (1 Year Treasury Constant Maturity +2.20%)±		4.68			6-1-2033		342,152		356,901
FNMA (1 Year Treasury Constant Maturity +2.20%)±		4.68			10-1-2036		514,543		542,042
FNMA (1 Year Treasury Constant Maturity +2.19%)±		4.68			1-1-2033		1,431,022		1,476,026
FNMA (1 Year Treasury Constant Maturity +2.30%)±		4.68			2-1-2033		76,762		78,581
FNMA (1 Year Treasury Constant Maturity +2.19%)±		4.68			7-1-2035		857,508		894,192
FNMA (1 Year Treasury Constant Maturity +2.22%)±		4.68			12-1-2040		651,261		687,703
FNMA (1 Year Treasury Constant Maturity +2.23%)±		4.69			1-1-2035		386,106		407,927
FNMA (1 Year Treasury Constant Maturity +2.18%)±		4.69			5-1-2035		136,296		144,151
FNMA (1 Year Treasury Constant Maturity +2.19%)±		4.69			6-1-2036		877,405		924,450
FNMA (12 Month LIBOR +1.75%)±		4.69			5-1-2035		653,864		688,254
FNMA (1 Year Treasury Constant Maturity +2.28%)±		4.69			4-1-2024		26,867		27,163
FNMA (1 Year Treasury Constant Maturity +2.38%)±		4.69			7-1-2027		78,785		80,737
FNMA (1 Year Treasury Constant Maturity +2.25%)±		4.69			1-1-2037		1,007,225		1,063,922
FNMA (1 Year Treasury Constant Maturity +2.23%)±		4.69			7-1-2037		357,435		378,600
FNMA (1 Year Treasury Constant Maturity +2.24%)±		4.69			12-1-2040		454,930		480,449
FNMA (1 Year Treasury Constant Maturity +2.18%)±		4.69			12-1-2040		219,924		231,821
FNMA (1 Year Treasury Constant Maturity +2.18%)±		4.70			12-1-2034		414,089		434,696
FNMA (1 Year Treasury Constant Maturity +2.20%)±		4.70			11-1-2035		910,759		960,886
FNMA (12 Month LIBOR +1.87%)±		4.70			5-1-2038		567,089		601,907
FNMA (1 Year Treasury Constant Maturity +2.21%)±		4.70			6-1-2035		514,915		544,406
FNMA (1 Year Treasury Constant Maturity +2.30%)±		4.70			9-1-2030		83,942		84,962
FNMA (1 Year Treasury Constant Maturity +2.22%)±		4.70			2-1-2034		1,103,881		1,155,710
FNMA (1 Year Treasury Constant Maturity +2.22%)±		4.71			5-1-2033		1,002,615		1,045,117
FNMA (1 Year Treasury Constant Maturity +2.22%)±		4.71			8-1-2026		234,561		243,292
FNMA (12 Month LIBOR +1.84%)±		4.71			6-1-2041		571,009		599,211
FNMA (1 Year Treasury Constant Maturity +2.25%)±		4.71			5-1-2034		229,120		241,800
FNMA (12 Month LIBOR +1.80%)±		4.72			5-1-2033		290,949		305,881
FNMA (1 Year Treasury Constant Maturity +2.22%)±		4.72			6-1-2035		356,083		376,015
FNMA (1 Year Treasury Constant Maturity +2.21%)±		4.72			5-1-2037		767,251		801,387

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

18  |  Wells Fargo Adjustable Rate Government Fund

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA (1 Year Treasury Constant Maturity +2.35%)±		4.73	%		6-1-2030	$	48,341	$	49,275
FNMA (1 Year Treasury Constant Maturity +2.15%)±		4.73			4-1-2033		768,913		812,048
FNMA (1 Year Treasury Constant Maturity +2.24%)±		4.73			12-1-2040		1,129,493		1,194,431
FNMA (12 Month LIBOR +2.00%)±		4.73			9-1-2035		390,775		414,689
FNMA (12 Month LIBOR +1.75%)±		4.73			6-1-2041		395,976		413,166
FNMA (1 Year Treasury Constant Maturity +2.23%)±		4.74			5-1-2033		195,745		202,583
FNMA (1 Year Treasury Constant Maturity +2.22%)±		4.74			6-1-2036		559,227		589,661
FNMA (1 Year Treasury Constant Maturity +2.27%)±		4.74			6-1-2036		122,863		130,349
FNMA (1 Year Treasury Constant Maturity +2.32%)±		4.74			10-1-2034		144,397		153,179
FNMA (1 Year Treasury Constant Maturity +2.26%)±		4.74			1-1-2038		434,064		459,116
FNMA (1 Year Treasury Constant Maturity +2.22%)±		4.74			4-1-2038		609,501		642,005
FNMA (1 Year Treasury Constant Maturity +2.24%)±		4.74			7-1-2028		103		107
FNMA (1 Year Treasury Constant Maturity +2.23%)±		4.74			11-1-2037		475,796		502,584
FNMA (12 Month LIBOR +1.75%)±		4.75			4-1-2033		342,644		355,767
FNMA (12 Month LIBOR +1.82%)±		4.76			12-1-2046		292,459		309,013
FNMA (1 Year Treasury Constant Maturity +2.19%)±		4.76			12-1-2032		396,305		417,287
FNMA (1 Year Treasury Constant Maturity +2.28%)±		4.76			4-1-2024		8,319		8,540
FNMA (1 Year Treasury Constant Maturity +2.26%)±		4.76			5-1-2035		404,015		424,530
FNMA (1 Year Treasury Constant Maturity +2.37%)±		4.76			9-1-2030		606,023		643,119
FNMA (1 Year Treasury Constant Maturity +2.23%)±		4.76			5-1-2035		864,128		910,855
FNMA (1 Year Treasury Constant Maturity +2.21%)±		4.76			12-1-2036		360,213		380,128
FNMA (1 Year Treasury Constant Maturity +2.21%)±		4.77			6-1-2033		242,222		252,073
FNMA (1 Year Treasury Constant Maturity +2.24%)±		4.77			10-1-2035		675,910		712,872
FNMA (1 Year Treasury Constant Maturity +2.19%)±		4.77			5-1-2036		558,303		588,312
FNMA (1 Year Treasury Constant Maturity +2.24%)±		4.77			4-1-2033		369,511		390,041
FNMA (12 Month LIBOR +1.75%)±		4.77			1-1-2035		436,152		457,875
FNMA (12 Month LIBOR +1.90%)±		4.78			5-1-2037		1,258,621		1,336,685
FNMA (1 Year Treasury Constant Maturity +2.36%)±		4.78			11-1-2034		308,480		326,947
FNMA (12 Month Treasury Average +2.26%)±		4.79			9-1-2036		340,609		349,991
FNMA (12 Month LIBOR +1.83%)±		4.79			1-1-2033		435,579		455,800
FNMA (1 Year Treasury Constant Maturity +2.22%)±		4.79			4-1-2033		611,479		636,153
FNMA (1 Year Treasury Constant Maturity +2.25%)±		4.79			5-1-2036		1,229,444		1,283,687
FNMA (1 Year Treasury Constant Maturity +2.25%)±		4.80			7-1-2030		357,626		373,434
FNMA (1 Year Treasury Constant Maturity +2.31%)±		4.80			12-1-2034		648,306		684,860
FNMA (1 Year Treasury Constant Maturity +2.18%)±		4.80			12-1-2024		20,760		20,962
FNMA (1 Year Treasury Constant Maturity +2.28%)±		4.80			10-1-2036		451,782		477,652
FNMA (1 Year Treasury Constant Maturity +2.22%)±		4.81			9-1-2033		399,298		418,772
FNMA (1 Year Treasury Constant Maturity +2.32%)±		4.82			5-1-2025		28,259		28,417
FNMA (12 Month Treasury Average +2.31%)±		4.82			9-1-2036		372,261		389,883
FNMA (1 Year Treasury Constant Maturity +2.35%)±		4.82			7-1-2028		429,657		445,441
FNMA (1 Year Treasury Constant Maturity +2.31%)±		4.82			5-1-2035		707,964		748,848
FNMA (1 Year Treasury Constant Maturity +2.33%)±		4.83			9-1-2037		523,145		558,723
FNMA (12 Month Treasury Average +2.28%)±		4.83			8-1-2035		543,923		557,558
FNMA (1 Year Treasury Constant Maturity +2.35%)±		4.83			12-1-2030		620,612		649,031
FNMA (1 Year Treasury Constant Maturity +2.35%)±		4.83			1-1-2029		165,775		171,887
FNMA (1 Year Treasury Constant Maturity +2.19%)±		4.83			2-1-2035		136,289		143,315
FNMA (1 Year Treasury Constant Maturity +2.33%)±		4.83			4-1-2036		394,256		418,002
FNMA (1 Year Treasury Constant Maturity +2.47%)±		4.84			9-1-2028		36,150		36,941
FNMA (1 Year Treasury Constant Maturity +2.22%)±		4.84			5-1-2033		162,441		171,205
FNMA (1 Year Treasury Constant Maturity +2.41%)±		4.84			9-1-2033		460,879		487,625
FNMA (1 Year Treasury Constant Maturity +2.22%)±		4.85			8-1-2031		101,749		103,890
FNMA (1 Year Treasury Constant Maturity +2.34%)±		4.85			1-1-2037		615,554		654,388

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

Wells Fargo Adjustable Rate Government Fund  |  19

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA (6 Month LIBOR +1.98%)±		4.85	%		9-1-2033	$	52,439	$	52,881
FNMA (1 Year Treasury Constant Maturity +2.35%)±		4.85			6-1-2027		63,487		64,533
FNMA (12 Month Treasury Average +2.35%)±		4.86			8-1-2040		417,369		427,774
FNMA (1 Year Treasury Constant Maturity +2.29%)±		4.86			1-1-2031		291,082		307,426
FNMA (1 Year Treasury Constant Maturity +2.25%)±		4.87			6-1-2027		638		654
FNMA (1 Year Treasury Constant Maturity +2.37%)±		4.87			7-1-2027		19,171		19,350
FNMA (12 Month Treasury Average +2.37%)±		4.89			5-1-2036		306,849		322,819
FNMA (1 Year Treasury Constant Maturity +2.50%)±		4.89			9-1-2030		443,041		463,360
FNMA (3 Year Treasury Constant Maturity +2.15%)±		4.90			8-1-2031		32,426		32,915
FNMA (1 Year Treasury Constant Maturity +2.30%)±		4.90			1-1-2026		165,065		169,923
FNMA (1 Year Treasury Constant Maturity +2.19%)±		4.90			3-1-2035		419,076		438,663
FNMA (6 Month LIBOR +1.88%)±		4.91			2-1-2033		299,734		309,922
FNMA (1 Year Treasury Constant Maturity +2.18%)±		4.93			1-1-2035		80,807		83,998
FNMA (1 Year Treasury Constant Maturity +2.45%)±		4.93			7-1-2037		1,584,642		1,688,465
FNMA (1 Year Treasury Constant Maturity +2.23%)±		4.93			1-1-2032		7,320		7,405
FNMA (1 Year Treasury Constant Maturity +2.43%)±		4.93			7-1-2037		393,852		411,689
FNMA (1 Year Treasury Constant Maturity +2.35%)±		4.93			3-1-2033		749,308		793,609
FNMA (1 Year Treasury Constant Maturity +2.32%)±		4.95			1-1-2028		1,380		1,386
FNMA (1 Year Treasury Constant Maturity +2.32%)±		4.95			4-1-2028		117,208		121,029
FNMA (1 Year Treasury Constant Maturity +2.32%)±		4.95			6-1-2032		19,263		19,471
FNMA (1 Year Treasury Constant Maturity +2.47%)±		4.97			9-1-2035		40,064		42,621
FNMA (1 Year Treasury Constant Maturity +2.41%)±		5.00			5-1-2027		51,074		52,984
FNMA (1 Year Treasury Constant Maturity +2.50%)±		5.00			3-1-2027		71,248		73,307
FNMA (6 Month LIBOR +2.25%)±		5.01			3-1-2034		985,222		1,038,640
FNMA (1 Year Treasury Constant Maturity +2.52%)±		5.02			11-1-2024		51,009		51,214
FNMA (1 Year Treasury Constant Maturity +2.60%)±		5.02			10-1-2025		6,764		6,850
FNMA (1 Year Treasury Constant Maturity +2.28%)±		5.03			7-1-2024		7,837		7,944
FNMA (1 Year Treasury Constant Maturity +2.28%)±		5.03			2-1-2037		658,251		697,930
FNMA (1 Year Treasury Constant Maturity +2.31%)±		5.05			2-1-2035		452,332		478,005
FNMA (1 Year Treasury Constant Maturity +2.49%)±		5.07			5-1-2035		1,001,605		1,065,968
FNMA (1 Year Treasury Constant Maturity +2.32%)±		5.07			4-1-2038		276,429		287,952
FNMA (1 Year Treasury Constant Maturity +2.50%)±		5.08			10-1-2029		284,192		297,149
FNMA (1 Year Treasury Constant Maturity +2.64%)±		5.08			7-1-2028		90,714		92,722
FNMA (6 Month LIBOR +2.48%)±		5.11			7-1-2033		33,318		33,574
FNMA (1 Year Treasury Constant Maturity +2.64%)±		5.13			3-1-2030		5,408		5,534
FNMA (6 Month LIBOR +2.62%)±		5.14			4-1-2033		221,581		229,954
FNMA (1 Year Treasury Constant Maturity +2.40%)±		5.15			6-1-2024		30,084		30,418
FNMA (1 Year Treasury Constant Maturity +2.51%)±		5.17			8-1-2035		230,212		240,401
FNMA (1 Year Treasury Constant Maturity +2.58%)±		5.19			3-1-2032		109,434		112,833
FNMA (1 Year Treasury Constant Maturity +2.69%)±		5.19			5-1-2035		562,874		601,558
FNMA (1 Year Treasury Constant Maturity +2.64%)±		5.19			10-1-2028		104,670		107,480
FNMA (1 Year Treasury Constant Maturity +2.60%)±		5.22			2-1-2028		33,012		33,357
FNMA (1 Year Treasury Constant Maturity +2.83%)±		5.24			9-1-2030		182,298		192,569
FNMA (1 Year Treasury Constant Maturity +2.50%)±		5.25			6-1-2032		83,685		85,092
FNMA (6 Month LIBOR +2.72%)±		5.42			5-1-2033		936,489		1,006,318
FNMA (6 Month LIBOR +2.66%)±		5.43			4-1-2024		143,904		150,446
FNMA (1 Year Treasury Constant Maturity +2.87%)±		5.50			8-1-2030		74,946		75,600
FNMA (6 Month LIBOR +2.70%)±		5.55			1-1-2033		59,171		60,111
FNMA (6 Month LIBOR +3.11%)±		5.66			9-1-2033		36,620		37,056
FNMA (1 Year Treasury Constant Maturity +1.75%)±		6.00			1-1-2020		244		244
FNMA (6 Month LIBOR +3.47%)±		6.16			12-1-2032		142,346		146,746
FNMA (6 Month LIBOR +3.57%)±		6.45			11-1-2031		10,679		10,670

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

20  |  Wells Fargo Adjustable Rate Government Fund

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA		6.50	%		8-1-2028	$	45,276	$	46,262
FNMA		6.50			5-1-2031		88,237		98,162
FNMA		7.06			11-1-2024		3,985		3,988
FNMA		7.06			12-1-2024		20,653		20,717
FNMA		7.06			3-1-2025		36,658		36,898
FNMA		7.06			3-1-2025		846		846
FNMA		7.06			1-1-2027		21,544		21,557
FNMA		7.50			1-1-2031		48,491		52,240
FNMA		7.50			1-1-2033		196,374		216,244
FNMA		7.50			5-1-2033		104,330		112,856
FNMA		7.50			5-1-2033		129,396		139,832
FNMA		7.50			6-1-2033		23,743		23,875
FNMA		7.50			7-1-2033		38,275		38,559
FNMA		7.50			8-1-2033		51,084		53,306
FNMA		8.00			12-1-2026		51,014		55,983
FNMA		8.00			2-1-2030		162		163
FNMA		8.00			3-1-2030		207		220
FNMA		8.00			5-1-2033		79,532		86,146
FNMA		8.50			10-1-2026		1,120		1,125
FNMA		8.50			8-15-2024		24,023		24,318
FNMA		10.00			1-20-2021		312		315
FNMA Series1989-74 Class J		9.80			10-25-2019		36		36
FNMA Series1989-96 Class H		9.00			12-25-2019		139		139
FNMA Series1992-39 Class FA(7-Year Treasury Constant Maturity +0.00%)±		1.54			3-25-2022		50,979		50,875
FNMA Series1992-45 Class F(7-Year Treasury Constant Maturity +0.00%)±		1.54			4-25-2022		8,501		8,482
FNMA Series1992-87 Class Z		8.00			5-25-2022		4,758		5,010
FNMA Series1993-113 Class FA (10 Year Treasury Constant Maturity-0.65%)±		0.95			7-25-2023		35,616		35,562
FNMA Series1993-247 Class FM (11th District Cost of Funds +1.20%)±		2.34			12-25-2023		178,844		181,704
FNMA Series1994-14 Class F (11th District Cost of Funds +1.60%)±		2.74			10-25-2023		99,252		101,569
FNMA Series2001-50 Class BA		7.00			10-25-2041		113,995		129,549
FNMA Series2001-63 Class FD (1 Month LIBOR +0.60%)±		2.78			12-18-2031		111,125		112,130
FNMA Series2001-81 Class F (1 Month LIBOR +0.55%)±		2.70			1-25-2032		46,192		46,599
FNMA Series2001-T08 Class A1		7.50			7-25-2041		103,922		121,569
FNMA Series2001-T10 Class A2		7.50			12-25-2041		1,712,995		1,929,818
FNMA Series2001-T12 Class A2		7.50			8-25-2041		139,242		164,182
FNMA Series2001-T12 Class A4±±		4.66			8-25-2041		3,348,533		3,480,780
FNMA Series2001-W01 Class AV1 (1 Month LIBOR +0.24%)±		2.51			8-25-2031		47,019		45,879
FNMA Series2001-W03 Class A±±		6.02			9-25-2041		423,578		464,758
FNMA Series2002-05 Class FD (1 Month LIBOR +0.90%)±		3.05			2-25-2032		94,249		95,810
FNMA Series2002-33 Class A4±±		5.46			11-25-2030		109,588		114,334
FNMA Series2002-59 Class F (1 Month LIBOR +0.40%)±		2.55			9-25-2032		325,928		326,756
FNMA Series2002-66 Class A3±±		4.45			4-25-2042		6,588,925		6,875,356
FNMA Series2002-T12 Class A3		7.50			5-25-2042		1,150,659		1,388,036
FNMA Series2002-T12 Class A5±±		4.88			10-25-2041		1,395,632		1,450,018
FNMA Series2002-T18 Class A5±±		4.63			5-25-2042		2,875,353		3,012,809
FNMA Series2002-T19 Class A4±±		4.64			3-25-2042		164,194		173,670
FNMA Series2002-W01 Class 3A±±		4.22			4-25-2042		866,614		880,415
FNMA Series2002-W04 Class A6±±		4.59			5-25-2042		1,368,035		1,415,349
FNMA Series2003-07 Class A2±±		4.31			5-25-2042		636,032		646,459
FNMA Series2003-63 Class A8±±		4.20			1-25-2043		995,659		1,033,579
FNMA Series2003-W02 Class 1A3		7.50			7-25-2042		314,777		380,994
FNMA Series2003-W04 Class 5A±±		4.43			10-25-2042		878,146		893,117

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

Wells Fargo Adjustable Rate Government Fund  |  21

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA Series2003-W08 Class 4A±±		4.54	%		11-25-2042	$	1,049,516	$	1,088,222
FNMA Series2003-W09 Class A (1 Month LIBOR +0.12%)±		2.51			6-25-2033		1,524,309		1,497,957
FNMA Series2003-W10 Class 2A±±		4.18			6-25-2043		2,187,439		2,273,057
FNMA Series2003-W18 Class 2A±±		4.43			6-25-2043		3,041,509		3,197,370
FNMA Series2004-T03 Class 1A3		7.00			2-25-2044		379,801		446,320
FNMA Series2004-T03 Class 2A±±		4.51			8-25-2043		1,080,274		1,122,531
FNMA Series2004-W01 Class 2A2		7.00			12-25-2033		203,577		235,461
FNMA Series2004-W01 Class 3A±±		4.48			1-25-2043		61,854		63,506
FNMA Series2004-W02 Class 5A		7.50			3-25-2044		92,750		106,390
FNMA Series2004-W12 Class 2A±±		4.45			6-25-2044		3,144,180		3,285,205
FNMA Series2004-W15 Class 3A±±		4.56			6-25-2044		4,939,686		5,077,384
FNMA Series2005-W03 Class 3A±±		4.28			4-25-2045		994,608		1,045,524
FNMA Series2006-15 Class FW (1 Month LIBOR +0.30%)±		2.45			1-25-2036		50,069		50,097
FNMA Series2006-44 Class FY (1 Month LIBOR +0.57%)±		2.72			6-25-2036		968,674		976,061
FNMA Series2006-W01 Class 3A±±		4.40			10-25-2045		3,840,017		4,004,652
FNMA Series2007-95 Class A2 (1 Month LIBOR +0.25%)±		2.52			8-27-2036		287,292		285,892
FNMA Series2012-47 Class FW (1 Month LIBOR +1.70%)±		3.85			5-25-2027		331,549		344,332
FNMA SeriesG92-20 Class FB(7-Year Treasury Constant Maturity +0.00%)±		1.54			4-25-2022		4,009		4,001
FNMA SeriesG93-1 Class K		6.68			1-25-2023		148,915		155,493
FNMA SeriesG93-19 Class FD (10 Year Treasury Constant Maturity-0.65%)±		0.95			4-25-2023		44,151		44,147
GNMA		6.45			4-20-2025		30,477		32,845
GNMA		6.45			9-20-2025		31,196		34,832
GNMA		6.50			6-20-2034		70,744		71,756
GNMA		6.50			8-20-2034		476,062		527,044
GNMA		6.75			2-15-2029		39,575		43,545
GNMA		9.00			3-15-2020		153		153
GNMA		9.00			9-20-2024		800		814
GNMA		9.00			11-20-2024		108		108
GNMA		9.00			1-20-2025		2,572		2,689
GNMA		9.00			2-20-2025		11,939		13,164
GNMA Series2008-65 Class FG (1 Month LIBOR +0.75%)±		2.92			8-20-2038		1,319,938		1,339,089
GNMA Series2008-68 Class FA (1 Month LIBOR +0.95%)±		3.12			8-20-2038		1,634,475		1,670,815
GNMA Series2009-50 Class FW (1 Month LIBOR +1.00%)±		3.17			7-20-2039		1,696,452		1,739,451
GNMA Series2009-52 Class FD (1 Month LIBOR +0.95%)±		3.15			7-16-2039		806,120		823,917
GNMA Series2010-25 Class FH (1 Month LIBOR +0.72%)±		2.92			2-16-2040		775,388		783,371
GNMA Series2011-H12 Class FA (1 Month LIBOR +0.49%)±		2.87			2-20-2061		2,155,144		2,156,081
GNMA Series2011-H17 Class FA (1 Month LIBOR +0.53%)±		2.91			6-20-2061		882,440		883,620
GNMA Series2017-H11 Class FE (12 Month LIBOR +0.18%)±		2.91			5-20-2067		4,733,752		4,699,846
Total Agency Securities (Cost $269,787,369)									275,663,713
	Yield					Shares
Short-Term Investments: 3.68%
Investment Companies: 3.68%
Wells Fargo Government Money Market Fund Select Class (l)(u)		2.04					10,631,386		10,631,386
Total Short-Term Investments (Cost $10,631,386)									10,631,386

Total investments in securities (Cost $280,418,755)	99.15	%		286,295,099
Other assets and liabilities, net	0.85			2,458,095
Total net assets	100.00	%	$	288,753,194

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

22  |  Wells Fargo Adjustable Rate Government Fund

Portfolio of investments—August 31, 2019

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 the7-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

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		14,194,527		98,483,214		102,046,355		10,631,386	$	0	$	0	$	189,609	$	10,631,386		3.68	%

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

Wells Fargo Adjustable Rate Government Fund  |  23

Statement of assets and liabilities—August 31, 2019

Assets
Investments in unaffiliated securities, at value (cost $269,787,369)	$	275,663,713
Investments in affiliated securities, at value (cost $10,631,386)		10,631,386
Principal paydown receivable		1,708,782
Receivable for Fund shares sold		53,115
Receivable for interest		1,261,174
Prepaid expenses and other assets		64,649
Total assets		289,382,819
Liabilities
Payable for Fund shares redeemed		243,874
Dividends payable		84,616
Management fee payable		59,509
Administration fees payable		30,300
Distribution fee payable		4,505
Trustees’ fees and expenses payable		4,197
Accrued expenses and other liabilities		202,624
Total liabilities		629,625
Total net assets	$	288,753,194
Net assets consist of
Paid-in capital	$	283,353,567
Total distributable earnings		5,399,627
Total net assets	$	288,753,194
Computation of net asset value and offering price per share
Net assets – Class A	$	118,674,898
Shares outstanding – Class A1		13,213,889
Net asset value per share – Class A		$8.98
Maximum offering price per share – Class A2		$9.16
Net assets – Class C	$	6,593,594
Shares outstanding – Class C1		735,360
Net asset value per share – Class C		$8.97
Net assets – Administrator Class	$	5,337,415
Shares outstanding – Administrator Class1		594,164
Net asset value per share – Administrator Class		$8.98
Net assets – Institutional Class	$	158,147,287
Shares outstanding – Institutional Class1		17,609,801
Net asset value per share – Institutional Class		$8.98

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 Adjustable Rate Government Fund

Statement of operations—year ended August 31, 2019

Investment income
Interest	$	8,885,033
Income from affiliated securities		189,609
Total investment income		9,074,642
Expenses
Management fee		1,158,595
Administration fees
Class A		179,671
Class C		36,411
Administrator Class		6,645
Institutional Class		151,465
Shareholder servicing fees
Class A		280,736
Class C		56,892
Administrator Class		16,412
Distribution fee
Class C		170,673
Custody and accounting fees		77,477
Professional fees		68,690
Registration fees		98,018
Shareholder report expenses		59,834
Trustees’ fees and expenses		21,592
Other fees and expenses		51,760
Total expenses		2,434,871
Less: Fee waivers and/or expense reimbursements
Fund-level		(276,928	)
Class A		(59,061	)
Class C		(9,995	)
Administrator Class		(8,390	)
Net expenses		2,080,497
Net investment income		6,994,145
Realized and unrealized gains (losses) on investments
Net realized gains on investments		259,753
Net change in unrealized gains (losses) on investments		1,540,062
Net realized and unrealized gains (losses) on investments		1,799,815
Net increase in net assets resulting from operations	$	8,793,960

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

Wells Fargo Adjustable Rate Government Fund  |  25

Statement of changes in net assets

	Year ended August 31, 2019						Year ended August 31, 20181
Operations
Net investment income				$	6,994,145					$	6,407,474
Net realized gains on investments					259,753						736,194
Net change in unrealized gains (losses) on investments					1,540,062						(2,234,630	)
Net increase in net assets resulting from operations					8,793,960						4,909,038
Distributions to shareholders from net investment income and net realized gains
Class A					(2,312,766	)					(1,690,233	)
Class C					(274,818	)					(291,921	)
Administrator Class					(143,314	)					(197,212	)
Institutional Class					(4,363,556	)					(4,228,118	)
Total distributions to shareholders					(7,094,454	)					(6,407,484	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		4,140,943			37,018,425			959,219			8,580,205
Class C		112,522			1,004,070			96,466			864,644
Administrator Class		4,965			44,434			106,068			950,975
Institutional Class		3,237,102			28,915,014			5,355,474			47,989,301
					66,981,943						58,385,125
Reinvestment of distributions
Class A		220,140			1,968,661			138,550			1,239,446
Class C		29,271			261,252			31,593			282,408
Administrator Class		15,395			137,619			21,739			194,536
Institutional Class		384,451			3,436,900			358,053			3,204,150
					5,804,432						4,920,540
Payment for shares redeemed
Class A		(2,790,788	)		(24,941,456	)		(6,633,879	)		(59,360,844	)
Class C		(4,524,371	)		(40,431,473	)		(1,791,217	)		(16,036,464	)
Administrator Class		(449,737	)		(4,015,219	)		(1,202,643	)		(10,766,120	)
Institutional Class		(12,338,837	)		(110,218,719	)		(23,742,189	)		(212,822,264	)
					(179,606,867	)					(298,985,692	)
Net decrease in net assets resulting from capital share transactions					(106,820,492	)					(235,680,027	)
Total decrease in net assets					(105,120,986	)					(237,178,473	)
Net assets
Beginning of period					393,874,180						631,052,653
End of period				$	288,753,194					$	393,874,180

¹  Effective for all filings after November 4, 2018, the SEC prospectively eliminated the requirement to parenthetically disclose undistributed net investment income at the end of the period and permitted the aggregation of distributions, with the exception of tax basis returns of capital. Overdistributed net investment income at August 31, 2018 was $192,257. The disaggregated distributions information for the year ended August 31, 2018 is included in Note 7,Distributions to Shareholders, in the notes to the financial statements.

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

26  |  Wells Fargo Adjustable Rate Government Fund

Financial highlights

(For a share outstanding throughout each period)

	Year ended August 31
CLASS A	2019			2018			2017			2016			2015
Net asset value, beginning of period		$8.93			$8.96			$9.01			$9.10			$9.15
Net investment income		0.18	1		0.10			0.06			0.04			0.05
Net realized and unrealized gains (losses) on investments		0.05			(0.01	)		(0.04	)		(0.06	)		(0.03	)
Total from investment operations		0.23			0.09			0.02			(0.02	)		0.02
Distributions to shareholders from
Net investment income		(0.18	)		(0.12	)		(0.07	)		(0.05	)		(0.05	)
Tax basis return of capital		0.00			0.00			0.00			(0.02	)		(0.02	)
Total distributions to shareholders		(0.18	)		(0.12	)		(0.07	)		(0.07	)		(0.07	)
Net asset value, end of period		$8.98			$8.93			$8.96			$9.01			$9.10
Total return2		2.64	%		0.98	%		0.23	%		(0.19	)%		0.24	%
Ratios to average net assets (annualized)
Gross expenses		0.88	%		0.83	%		0.80	%		0.78	%		0.79	%
Net expenses		0.74	%		0.74	%		0.74	%		0.74	%		0.74	%
Net investment income		2.04	%		1.28	%		0.72	%		0.56	%		0.58	%
Supplemental data
Portfolio turnover rate		5	%		3	%		2	%		13	%		10	%
Net assets, end of period (000s omitted)		$118,675			$103,963			$153,953			$172,131			$215,830

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.

Wells Fargo Adjustable Rate Government Fund  |  27

Financial highlights

(For a share outstanding throughout each period)

	Year ended August 31
CLASS C	2019			2018			2017			2016			2015
Net asset value, beginning of period		$8.93			$8.96			$9.01			$9.10			$9.15
Net investment income (loss)		0.10	1		0.05	1		(0.00	)1,2		(0.02	)1		(0.01	)1
Net realized and unrealized gains (losses) on investments		0.06			(0.03	)		(0.05	)		(0.07	)		(0.04	)
Total from investment operations		0.16			0.02			(0.05	)		(0.09	)		(0.05	)
Distributions to shareholders from
Net investment income		(0.12	)		(0.05	)		(0.00	)3		(0.00	)3		(0.00	)3
Tax basis return of capital		0.00			0.00			0.00			(0.00	)3		(0.00	)3
Total distributions to shareholders		(0.12	)		(0.05	)		(0.00	)3		(0.00	)3		(0.00	)3
Net asset value, end of period		$8.97			$8.93			$8.96			$9.01			$9.10
Total return4		1.76	%		0.23	%		(0.52	)%		(0.94	)%		(0.51	)%
Ratios to average net assets (annualized)
Gross expenses		1.62	%		1.55	%		1.55	%		1.53	%		1.54	%
Net expenses		1.49	%		1.49	%		1.49	%		1.49	%		1.49	%
Net investment income (loss)		1.13	%		0.54	%		(0.04	)%		(0.19	)%		(0.16	)%
Supplemental data
Portfolio turnover rate		5	%		3	%		2	%		13	%		10	%
Net assets, end of period (000s omitted)		$6,594			$45,693			$60,766			$97,452			$121,117

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.

28  |  Wells Fargo Adjustable Rate Government Fund

Financial highlights

(For a share outstanding throughout each period)

	Year ended August 31
ADMINISTRATOR CLASS	2019			2018			2017			2016			2015
Net asset value, beginning of period		$8.93			$8.96			$9.01			$9.10			$9.15
Net investment income		0.19	1		0.13	1		0.07	1		0.06			0.06
Net realized and unrealized gains (losses) on investments		0.06			(0.03	)		(0.04	)		(0.06	)		(0.03	)
Total from investment operations		0.25			0.10			0.03			0.00			0.03
Distributions to shareholders from
Net investment income		(0.20	)		(0.13	)		(0.08	)		(0.07	)		(0.06	)
Tax basis return of capital		0.00			0.00			0.00			(0.02	)		(0.02	)
Total distributions to shareholders		(0.20	)		(0.13	)		(0.08	)		(0.09	)		(0.08	)
Net asset value, end of period		$8.98			$8.93			$8.96			$9.01			$9.10
Total return		2.78	%		1.12	%		0.37	%		(0.05	)%		0.38	%
Ratios to average net assets (annualized)
Gross expenses		0.81	%		0.77	%		0.74	%		0.72	%		0.72	%
Net expenses		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Net investment income		2.12	%		1.42	%		0.82	%		0.71	%		0.72	%
Supplemental data
Portfolio turnover rate		5	%		3	%		2	%		13	%		10	%
Net assets, end of period (000s omitted)		$5,337			$9,140			$18,805			$61,658			$66,037

¹  Calculated based upon average shares outstanding

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

Wells Fargo Adjustable Rate Government Fund  |  29

Financial highlights

(For a share outstanding throughout each period)

	Year ended August 31
INSTITUTIONAL CLASS	2019			2018			2017			2016			2015
Net asset value, beginning of period		$8.93			$8.96			$9.01			$9.10			$9.15
Net investment income		0.22			0.16			0.09			0.08			0.08
Net realized and unrealized gains (losses) on investments		0.04			(0.05	)		(0.04	)		(0.07	)		(0.03	)
Total from investment operations		0.26			0.11			0.05			0.01			0.05
Distributions to shareholders from
Net investment income		(0.21	)		(0.14	)		(0.10	)		(0.07	)		(0.08	)
Tax basis return of capital		0.00			0.00			0.00			(0.03	)		(0.02	)
Total distributions to shareholders		(0.21	)		(0.14	)		(0.10	)		(0.10	)		(0.10	)
Net asset value, end of period		$8.98			$8.93			$8.96			$9.01			$9.10
Total return		2.93	%		1.26	%		0.51	%		0.09	%		0.52	%
Ratios to average net assets (annualized)
Gross expenses		0.54	%		0.50	%		0.47	%		0.45	%		0.46	%
Net expenses		0.46	%		0.46	%		0.46	%		0.45	%		0.46	%
Net investment income		2.27	%		1.55	%		0.98	%		0.84	%		0.87	%
Supplemental data
Portfolio turnover rate		5	%		3	%		2	%		13	%		10	%
Net assets, end of period (000s omitted)		$158,147			$235,078			$397,529			$702,617			$906,536

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

30  |  Wells Fargo Adjustable Rate Government 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 Adjustable Rate Government 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 (e.g. taking into account various factors, including yields, maturities, or credit ratings) 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.

When-issued transactions

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

Security transactions and income recognition

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

Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily. 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. Paydown gains and losses are included in interest income.

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.

Wells Fargo Adjustable Rate Government Fund  |  31

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, 2019, the aggregate cost of all investments for federal income tax purposes was $280,736,610 and the unrealized gains (losses) consisted of:

Gross unrealized gains	$	6,353,705
Gross unrealized losses		(795,216	)
Net unrealized gains	$	5,558,489

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 fund-level 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, 2019:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Agency securities	$	0	$	275,663,713	$	0	$	275,663,713
Short-term investments
Investment companies		10,631,386		0		0		10,631,386
Total assets	$	10,631,386	$	275,663,713	$	0	$	286,295,099

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

For the year ended August 31, 2019, the Fund did not have any transfers into/out of Level 3.

32  |  Wells Fargo Adjustable Rate Government Fund

Notes to financial statements

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 a management fee at the following annual rate based on the Fund’s average daily net assets:

Average daily net assets	Management fee
First $1 billion		0.350	%
Next $4 billion		0.325
Next $3 billion		0.290
Next $2 billion		0.265
Over $10 billion		0.255

For the year ended August 31, 2019, 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

Waivers and/or expense reimbursements

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. When only certain classes exceed their expense caps, waivers and/or reimbursements are applied against class specific expenses before fund-level expenses. Funds Management has committed through December 31, 2019 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. Prior to or after the commitment expiration date, 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

Wells Fargo Adjustable Rate Government Fund  |  33

Notes to financial statements

contingent deferred sales charges from redemptions of Class C shares. For the year ended August 31, 2019, Funds Distributor received $394 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, 2019.

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, 2019 were as follows:

Purchases at cost		Sales proceeds
U.S. government	Non-U.S. government	U.S. government	Non-U.S. government
$12,731,730	$1,919,481	$32,820,491	$1,482,219

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, 2019, 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, 2019 and August 31, 2018 were as follows:

	Year ended August 31
	2019		2018
Ordinary income	$	6,985,362	$	6,407,484
Long-term capital gain		109,092		0

As of August 31, 2019, the components of distributable earnings on a tax basis were as follows:

Undistributed long-term gains	Unrealized gains
$24,611	$5,558,489

Effective for all filings after November 4, 2018, the Securities and Exchange Commission eliminated the requirement to separately state the components of distributions to shareholders under U.S. generally accepted accounting principles. The amounts of distributions to shareholders for the year ended August 31, 2018 were as follows:

	Net investment income
Class A		$1,690,233
Class C		291,921
Administrator Class		197,212
Institutional Class		4,228,118

34  |  Wells Fargo Adjustable Rate Government 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

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 has adopted the removal and modification of disclosures early, as permitted, and will adopt the additional new disclosures at the effective date.

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 and requires the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount and discounts will continue to be accreted to the maturity date of the security. ASU 2017-08 is effective for fiscal years beginning after December 15, 2018 and for interim periods within those fiscal years. During the current reporting period, management of the Fund adopted the change in accounting policy which did not have a material impact to the Fund’s financial statements.

Wells Fargo Adjustable Rate Government Fund  |  35

Report of independent registered public accounting firm

TO THE SHAREHOLDERS OF THE FUND AND BOARD OF TRUSTEES 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), one of the funds constituting Wells Fargo Funds Trust, including the portfolio of investments, as of August 31, 2019, 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, 2019, 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, 2019, by correspondence with the custodian and transfer agent. 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 28, 2019

36  |  Wells Fargo Adjustable Rate Government Fund

Other information (unaudited)

TAX INFORMATION

Pursuant to Section 852 of the Internal Revenue Code, $109,092 was designated as a 20% rate gain distribution for the fiscal year ended August 31, 2019.

For the fiscal year ended August 31, 2019, $7,141,132 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 used to determine how to vote proxies relating to portfolio securities is available, upon request, by calling1-800-222-8222, visiting our website atwfam.com, or visiting the SEC website at sec.gov. Information regarding how the proxies related to portfolio securities were voted during the most recent 12-month period ended June 30 is available on the website atwfam.com or by visiting the SEC website at sec.gov.

QUARTERLY PORTFOLIO HOLDINGS INFORMATION

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 or Form N-PORT, which is available by visiting the SEC website at sec.gov. Those forms may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

Wells Fargo Adjustable Rate Government Fund  |  37

Other information (unaudited)

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 152 mutual funds comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information². The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.

Independent Trustees

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
William R. Ebsworth (Born 1957)	Trustee, since 2015	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief investment officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong, and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he led a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Audit Committee Chair and Investment Committee Chair of the Vincent Memorial Hospital Endowment (non-profit organization). 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; Audit Committee Chairman, since 2019	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, from 2009 to 2018	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

38  |  Wells Fargo Adjustable Rate Government 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
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
Olivia S. Mitchell (Born 1953)	Trustee, since 2006; Nominating and 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	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	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

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

Wells Fargo Adjustable Rate Government Fund  |  39

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.
Michelle Rhee3 (Born 1966)	Chief Legal Officer, since 2019	Secretary of Wells Fargo Funds Management, LLC, Chief Legal Counsel of Wells Fargo Asset Management and Assistant General Counsel of Wells Fargo Bank, N.A. since 2018. Associate General Counsel and Managing Director of Bank of America Corporation from 2004 to 2018.
Catherine Kennedy4 (Born 1969)	Secretary, since 2019	Vice President of Wells Fargo Funds Management, LLC and Senior Counsel of the Wells Fargo Legal Department since 2010. Vice President and Senior Counsel of Evergreen Investment Management Company, LLC from 1998 to 2010.
Michael H. Whitaker (Born 1967)	Chief Compliance Officer, since 2016	Chief Compliance Officer of Wells Fargo Asset Management 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 65 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 87 funds and Assistant Treasurer of 65 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 calling1-800-222-8222 or by visiting the website atwfam.com.

³  Michelle Rhee became Chief Legal Officer effective October 22, 2019.

⁴  Catherine Kennedy became Secretary effective October 22, 2019.

40  |  Wells Fargo Adjustable Rate Government Fund

Other information (unaudited)

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 21-22, 2019 (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 2019, 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 2019. 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 received and reviewed information about Funds Management’s role as administrator of the Fund’s liquidity risk management program. 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.

Wells Fargo Adjustable Rate Government Fund  |  41

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, 2018. 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 the one-, three- and five-year periods under review, but higher than the average investment performance of the Universe for the ten-year period under review. The Board also noted that the investment performance of the Fund was lower than its benchmark index, the Bloomberg Barclays 6-Month Treasury Bill Index, for the one-, three- and five-year periods under review, but higher than its benchmark for the ten-year period 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 the Fund’s investment strategies and structural biases, as well as those regarding 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 in range of or equal to the median net operating expense ratios of the expense Groups for each share class, except for the Fund’s Institutional Class, which had a net operating expense ratio that was higher than the median net operating expense ratio of its 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 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 proprietary mutual funds compared with those associated with managing assets of other types of clients, including third-party sub-advised fund clients and 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 Adjustable Rate Government 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”) from providing services to the fund family as a whole. The Board noted that the Sub-Adviser’s profitability information with respect to providing services to the Fund and other funds in the family 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. 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, type and age 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 received and considered information about the potential for Funds Management to experience economies of scale in the provision of management services to the Fund, the difficulties of calculating economies of scale at an individual fund level, and the extent to which potential scale benefits are shared with shareholders. 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. The Board considered that in addition to management fee breakpoints, Funds Management shares potential economies of scale from its management business in a variety of ways, including through fee waiver and expense reimbursement arrangements, services that benefit shareholders, competitive management fee rates set at the outset without regard to breakpoints, and investments in the business intended to enhance services available to shareholders.

The Board concluded that Funds Management’s arrangements with respect to the Fund, 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.

Wells Fargo Adjustable Rate Government Fund  |  43

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:wfam.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, call1-800-222-8222 or visit the Fund’s website atwfam.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.

INVESTMENT PRODUCTS: NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

© 2019 Wells Fargo Funds Management, LLC. All rights reserved.

405801 10-19

A215/AR215 08-19

Annual Report

August 31, 2019

Wells Fargo High Yield Bond Fund

Beginning on January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, paper copies of the Wells Fargo Funds’ annual and semi-annual shareholder reports issued after this date will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Funds’ website, and you will be notified by mail each time a report is posted and provided with a website address to access the report.

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Contents

Letter to shareholders	2
Performance highlights	6
Fund expenses	10
Portfolio of investments	11
Financial statements
Statement of assets and liabilities	17
Statement of operations	18
Statement of changes in net assets	19
Financial highlights	20
Notes to financial statements	24
Report of independent registered public accounting firm	30
Other information	31

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The views expressed and any forward-looking statements are as of August 31, 2019, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Asset Management. 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 Asset Management and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

INVESTMENT PRODUCTS: NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾  MAY LOSE VALUE

Wells Fargo High Yield Bond Fund  |  1

Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

Dear Shareholder:

We are pleased to offer you this annual report for the Wells Fargo High Yield Bond Fund for the 12-month period that ended August 31, 2019. After the first half of the period yielded either low-single-digit or negative investment returns, U.S. stock and global bond investors generally saw markets recover during the second half amid intensifying market volatility, global economic growth concerns, international trade staredowns, and simmering geopolitical tensions.

Overall, fixed-income investors enjoyed a distinct advantage over stock investors. For the period, U.S. stocks, based on the S&P 500 Index,¹ gained 2.92% and international stocks, as measured by the MSCI ACWI ex USA Index (Net),² fell 3.27%. The MSCI EM Index (Net)³ slipped 4.36%. Among fixed income investors, the Bloomberg Barclays U.S. Aggregate Bond Index⁴ added 10.17%, the Bloomberg Barclays Global Aggregate ex-USD Index⁵ added 5.71%, the Bloomberg Barclays Municipal Bond Index⁶ gained 8.72%, and the ICE BofAML U.S. High Yield Index⁷ added 6.58%.

Entering the fourth quarter of 2018, economic data was encouraging.

Entering the fourth quarter of 2018, there were reasons for investors to be optimistic. The U.S. Bureau of Economic Analysis reported U.S. gross domestic product (GDP) grew 4.2% on an annualized basis during the second quarter. Hiring improved. Unemployment declined. Consumer spending gained. Third-quarter corporate earnings reports were generally positive. U.S. trade negotiations with Mexico and Canada advanced. In September 2018, the U.S. Federal Reserve (Fed) raised the federal funds rate by 25 basis points (bps; 100 bps equal 1.00%) to a target range of between 2.00% and 2.25% in an indication of its confidence that U.S. economic growth was sustainable.

International markets presented numerous challenges. U.S.-China trade tensions increased. The U.S. imposed $200 billion in tariffs on Chinese goods. China reacted with $60 billion in tariffs on U.S. goods. Economic growth in China caused concern. In September 2018, international investors began to factor in a number of disconcerting economic and business data points: lower July manufacturing and industrial orders in Germany; declining purchasing managers’ index numbers for August from the United Kingdom, China, and India; and declining household spending for August in Japan. Taken together, the data fed growing concerns that global economic growth was slowing.

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 and emerging markets, excluding the U.S. 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 the equity market performance of emerging markets. 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 2019. ICE Data Indices, LLC. All rights reserved.

2  |  Wells Fargo High Yield Bond Fund

Letter to shareholders (unaudited)

Investors had to digest unsettling events during the fourth quarter of 2018.

November’s U.S. midterm elections shifted control of the House of Representatives from Republicans to Democrats, presaging partisan clashes that followed and caused uncertainty among investors. A partial U.S. government shutdown driven by partisan policy disputes extended into January 2019. Third-quarter U.S. GDP was announced at an annualized 3.4% rate, lower than the second-quarter rate. Brexit efforts stalled. The value of the renminbi declined even as the People’s Bank of China cut reserve requirement ratios, accelerated infrastructure spending, and cut taxes in efforts to spur economic activity.

The combination of news in the U.S. and generally weak economic indicators outside of the U.S. caused investors to seek safe havens. December’s S&P 500 Index performance was the worst since 1931. Globally, fixed-income investments fared better than stocks during the last two months of the year. The Fed increased the federal funds rate by 25 bps in December 2018 to a target range of between 2.25% and 2.50% even as observers expressed concerns that higher rates could slow the economy.

The market climbs a wall of worry.

Investment returns appeared to reaffirm the adage that markets climb a wall of worry as 2019 opened. Following its December decline, the S&P 500 Index gained 8.01% for the month of January, the best monthly performance in 30 years. Returns for the MSCI ACWI ex USA Index (Net), the Bloomberg Barclays U.S. Aggregate Bond Index, and the Bloomberg Barclays Global Aggregate ex-USD Index also were positive.

In February 2019, signs of slowing global growth grew more ominous. The Bureau of Economic Analysis announced fourth-quarter 2018 GDP grew at an annualized 2.2% rate, down from the levels of the prior two quarters. In a February report, the Bank of England forecast the slowest growth for 2019 since the financial crisis. China and the U.S. continued to wrangle over trade issues. By the end of the first quarter of 2019, more accommodative Fed sentiment and steady, if not spectacular, U.S. economic and business metrics encouraged domestic investors.

Early second-quarter 2019 enthusiasm among investors faded.

During April 2019, favorable sentiment found additional support in reports of sustained low inflation, solid employment data, and first-quarter U.S. GDP of an annualized rate of 3.2%. During May, markets tumbled on mixed investment signals. In the U.S., partisan wrangling ramped up as Democrats and Republicans set their sights on 2020 presidential politics. The U.K.’s Brexit contretemps caused Prime Minister Theresa May to resign. Boris Johnson succeeded her only to exacerbate uncertainty about Brexit’s resolution ahead of an October 2019 deadline. The European Commission downgraded the 2019 growth forecast to 1.2%. The U.S. increased tariffs on products from China, China responded, and then talks broke down. President Donald Trump threatened to turn his foreign policy tariff tool to Mexico over immigration issues.

During the third quarter of 2019, investors regrouped. Just as the investment horizon appeared to darken, sentiment turned and U.S. equity markets gained during June and July. The gains, primarily driven by geopolitical and monetary policy events, pushed equity markets to new highs. European Central Bank President Mario Draghi said that if the outlook doesn’t improve, the bank would cut rates or buy more assets to prop up inflation. President Trump backed off of tariff threats against Mexico and China. In the U.S., the Fed implemented a 0.25% federal funds rate cut in July.

Later in July, the U.S. reversed course and threatened to impose higher tariffs on China’s exports after talks failed. China responded with tariff threats of its own and

“December’s S&P 500 Index performance was the worst since 1931.”

“Following its December decline, the S&P 500 Index gained 8.01% for the month of January, the best monthly performance in 30 years.”

Wells Fargo High Yield Bond Fund  |  3

Letter to shareholders (unaudited)

For further information about your Fund, contact your investment professional, visit our website at wfam.com,

or call us directly at1-800-222-8222.

devalued the renminbi, a move that roiled global markets. Major U.S. stock market indices closed July 2019 with the worst weekly results of the year. Bond prices gained as Treasury yields fell to levels not seen since November 2016 and the yield curve inverted at multiple points along the 30-year arc.

In a microcosm, August 2019 encapsulated many of the unnerving events that plagued investors during the prior 11 months. The U.S.-China trade relationship swung from discouraging to hopeful and back again with no evident compromise on the horizon. Evidence of a continued global economic slowdown continued to mount as central banks in China, New Zealand, and Thailand cut interest rates. Industrial and manufacturing data declined in China, Canada, Japan, and Germany. Adding to the uncertain environment, Italy’s prime minister resigned, many feared a crackdown in Hong Kong as protesters sustained their calls for reform throughout the month, and Boris Johnson planned to suspend Parliament as Brexit’s deadline neared.

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

4  |  Wells Fargo High Yield Bond Fund

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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

Robert Junkin^‡

Margaret D. Patel

Average annual total returns (%) as of August 31, 2019

		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 (EKHAX)3	1-20-1998		0.20		3.00		6.70		4.79		3.96		7.19		1.02		0.93
Class C (EKHCX)3	1-21-1998		3.00		3.19		6.39		4.00		3.19		6.39		1.77		1.68
Administrator Class (EKHYX)3	4-14-1998		–		–		–		4.60		4.07		7.40		0.96		0.80
Institutional Class (EKHIX)3,4	10-31-2014		–		–		–		5.20		4.28		7.51		0.69		0.53
ICE BofAML U.S. High Yield Constrained Index5	–		–		–		–		6.58		4.85		8.43		–		–

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,wfam.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.

6  |  Wells Fargo High Yield Bond Fund

Performance highlights (unaudited)

Growth of $10,000 investment as of August 31, 2019⁶

^‡  Mr. Robert Junkin became a portfolio manager of the Fund on April 1, 2019.

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, 2019, to waive fees and/or reimburse expenses to the extent necessary to cap the expenses of each class after fee waivers at the amounts shown. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses (if any), and extraordinary expenses are excluded from the expense cap. Prior to or after the commitment expiration date, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Without this cap, the Fund’s returns would have been lower. The expense ratio paid by an investor is the net expense ratio (the total annual fund operating expenses after fee waivers) as stated in the prospectuses.

³  Historical performance prior to July 12, 2010 is based on the performance of the Fund’s predecessor, Evergreen High Income Fund.

⁴  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.

⁵  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 2019. ICE Data Indices, LLC. All rights reserved.

⁶  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%.

⁷  The Russell 1000^® Index measures the performance of the 1,000 largest companies in the Russell 3000^® Index, which represents approximately 92% of the total market capitalization of the Russell 3000^® Index. You cannot invest directly in an index.

⁸  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.

⁹  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.

Wells Fargo High Yield Bond Fund  |  7

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, 2019.

∎ The Fund’s modest allocation to common stocks (about 9% of total assets) moderately detracted from returns. Historically, our small allocation to stocks has helped performance. However, in the fiscal year that ended August 31, 2019, the return of the stock market, as measured by the Russell 1000^® Index⁷, was only slightly positive, in contrast to the high-yield bond market’s better-quality tiers that provided returns in the mid- to high-single digits.

∎ Detractors from bond performance included two commodity-related names: Rayonier Advanced Materials Incorporated, which produces specialty cellulose fibers, and Dean Foods Company*, a producer of milk and milk-based products. Also detracting was Mallinckrodt plc, a specialty pharmaceutical company with exposure to opioid litigation.

∎ Detractors from equity performance included LyondellBasell Industries N.V., a plastics and chemicals company, and Eastman Chemical Company, a specialty chemicals producer. Plains All American Pipeline, L.P.*, an intrastate energy pipeline transport and storage company, also detracted.

∎ The Fund’s overweight to better-quality high-yield bonds contributed to performance in the fiscal year because better-quality credit tiers modestly outperformed lower-quality credit tiers as investors grew slightly more risk-averse in seeking yield.

∎ Most sectors of the corporate bond market had modest positive returns over the fiscal year, as prices and yield were relatively flat, and most of the returns were due to coupon income.

Ten largest holdings (%) as of August 31, 20198
Valvoline Incorporated, 4.38%, 8-15-2025	3.63
Iron Mountain Incorporated, 5.38%, 6-1-2026	3.41
Western Digital Corporation, 4.75%, 2-15-2026	2.91
Tronox Finance plc, 5.75%, 10-1-2025	2.88
Post Holdings Incorporated, 5.00%, 8-15-2026	2.70
Seagate HDD, 4.88%, 6-1-2027	2.53
TransDigm Group Incorporated, 6.38%, 6-15-2026	2.50
MTS Systems Corporation, 5.75%, 8-15-2027	2.43
TTM Technologies Incorporated, 5.63%, 10-1-2025	2.27
Catalent Pharma Solutions Incorporated,4.88%, 1-15-2026	2.10

The average yield for high-yield bonds fell over the fiscal year, from 6.31% on August 31, 2018, to 5.87% on August 31, 2019. Because Treasury rates fell over the same period, the yield advantage of high-yield bonds increased from +360 basis points (bps; 100 bps equal 1.00%) at the beginning of the fiscal year to +430 bps at fiscal year-end.

The Fund’s stock allocation was a relatively modest 9% of total assets. The Fund’s stock holdings modestly underperformed its fixed-income holdings, as the equity market produced low-single-digit average returns during the Fund’s fiscal year after a volatile year in stock prices. The flattish performance reflected the market’s concerns about a slowing economy and the risk of higher interest rates despite the actual decline in Treasury yields over the fiscal

year. A number of the Fund’s outperformers were in the technology sector and included Akamai Technologies, Incorporated, which provides services for delivery of internet content; Leidos Holdings, Incorporated, a provider of software services for national security, engineering, and health care; and Cypress Semiconductor Corporation, which received a takeout bid to be acquired by Infineon Technologies AG.

Bond outperformers included Diebold Nixdorf, Incorporated, as the company scored improved results after several quarters of disappointing financial performance. Iron Mountain Incorporated, a storage and information management company, also improved due to better earnings. Post Holdings, Incorporated, a manufacturer of cereal products, outperformed because recent acquisitions had positive results. In the technology sector, bonds of disk-drive maker Seagate Technology plc and Western Digital Corporation, a provider of storage solutions and hard and solid-state drives, contributed to performance.

Fixed-income investors realized generally positive returns during the period.

Low inflation, positive growth, and declining Treasury interest rates provided a positive backdrop for corporate bonds. High-yield bonds had returns mostly from coupon income, with small gains in bond prices. Investment-grade corporate bonds generally produced higher returns as most sectors saw moderate price increases in addition to coupon income. Investment-grade bond yields declined, reflecting falling Treasury interest rates, and thus had mid-single-digit price increases. Treasury bond rates dropped significantly in the fiscal year. Bonds due in 10 years fell from 2.86% on August 31, 2018, to 1.50% at month-end August 2019.

Please see footnotes on page 7.

8  |  Wells Fargo High Yield Bond Fund

Performance highlights (unaudited)

Credit quality as of August 31, 2019⁹

We expect continued growth in the months ahead.

The Fund’s positioning reflects our expectation for continued economic growth over the next year, although at levels probably around 2% or somewhat lower than typical in periods of economic expansion. We expect high-yield bonds could offer moderate returns with yields stable or somewhat lower, with mild price appreciation if yields decline from today’s levels. Treasury rates should probably continue in a trading range with a downward bias, as inflation remains low in the U.S. and globally. We are optimistic that the equity market should provide returns well above the risk-free rate of return, as we find stock prices reasonable compared with

the earnings-growth potential of many stocks. In addition, with Treasury issues likely to be at low levels for the foreseeable future, stock dividend yields are attractive alternatives to the yields offered on short-maturity fixed-income securities.

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 Fund is concentrated in companies with operations primarily in the U. S. and has minimal exposure to companies with products and services that 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, limiting the potential for future capital appreciation in our bond holdings.

Risk in the high-yield market could increase.

We believe risk in the high-yield market could arise from those highly levered companies in weak or highly 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.

Wells Fargo High Yield Bond Fund  |  9

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, 2019 to August 31, 2019.

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 3-1-2019		Ending account value 8-31-2019		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,037.31	$	4.77		0.93	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.52	$	4.74		0.93	%
Class C
Actual	$	1,000.00	$	1,033.41	$	8.61		1.68	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.74	$	8.54		1.68	%
Administrator Class
Actual	$	1,000.00	$	1,034.81	$	4.10		0.80	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.17	$	4.07		0.80	%
Institutional Class
Actual	$	1,000.00	$	1,036.16	$	2.72		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).

10  |  Wells Fargo High Yield Bond Fund

Portfolio of investments—August 31, 2019

	Shares		Value
Common Stocks: 8.68%
Consumer Staples: 0.27%
Food Products: 0.27%
Lamb Weston Holdings Incorporated		15,000	$	1,055,850
Health Care: 0.53%
Health Care Providers & Services: 0.16%
HCA Holdings Incorporated		5,000		601,000
Pharmaceuticals: 0.37%
Bristol-Myers Squibb Company		30,000		1,442,100
Industrials: 1.09%
Aerospace & Defense: 0.83%
Curtiss-Wright Corporation		10,000		1,226,400
Huntington Ingalls Industries Incorporated		5,000		1,045,000
Raytheon Company		5,000		926,600
				3,198,000
Machinery: 0.26%
John Bean Technologies Corporation		10,000		1,023,200
Information Technology: 3.43%
Electronic Equipment, Instruments & Components: 0.23%
Amphenol Corporation Class A		10,000		875,400
IT Services: 1.14%
Akamai Technologies Incorporated		30,000		2,673,900
Leidos Holdings Incorporated		20,000		1,747,200
				4,421,100
Semiconductors & Semiconductor Equipment: 1.27%
Advanced Micro Devices Incorporated †		15,000		471,750
Applied Materials Incorporated		10,000		480,200
Broadcom Incorporated		5,000		1,413,200
Cypress Semiconductor Corporation		35,000		805,350
Microchip Technology Incorporated		7,000		604,310
Micron Technology Incorporated †		25,000		1,131,750
				4,906,560
Software: 0.77%
Adobe Systems Incorporated †		5,000		1,422,550
Nutanix Incorporated Class A		5,000		121,150
Salesforce.com Incorporated		5,000		780,350
ServiceNow Incorporated †		2,500		654,600
				2,978,650
Technology Hardware, Storage & Peripherals: 0.02%
Pure Storage Incorporated Class A †		5,000		81,400

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

Wells Fargo High Yield Bond Fund  |  11

Portfolio of investments—August 31, 2019

						Shares		Value
Materials: 1.53%
Chemicals: 1.53%
Celanese Corporation Series A							15,000	$	1,700,550
Eastman Chemical Company							10,000		653,700
Huntsman Corporation							22,000		438,240
LyondellBasell Industries NV Class A							40,000		3,095,200
									5,887,690
Real Estate: 0.51%
Equity REITs: 0.51%
Crown Castle International Corporation							4,000		580,680
Iron Mountain Incorporated							20,000		637,000
Saul Centers Incorporated							15,000		753,450
									1,971,130
Utilities: 1.32%
Gas Utilities: 0.86%
Atmos Energy Corporation							30,000		3,306,900
Independent Power & Renewable Electricity Producers: 0.13%
Vistra Energy Corporation							20,000		499,000
Multi-Utilities: 0.33%
DTE Energy Company							10,000		1,296,600
Total Common Stocks (Cost $30,446,205)									33,544,580
	Interest rate			Maturity date		Principal
Corporate Bonds and Notes: 76.63%
Communication Services: 2.90%
Media: 2.90%
CCO Holdings LLC 144A		5.75	%		2-15-2026	$	3,000,000		3,176,250
McGraw-Hill Global Education Holdings LLC 144A«		7.88			5-15-2024		5,500,000		4,950,000
Sinclair Television Group Incorporated 144A		5.63			8-1-2024		3,000,000		3,090,000
									11,216,250
Consumer Discretionary: 2.95%
Auto Components: 2.13%
Allison Transmission Incorporated 144A		5.00			10-1-2024		1,000,000		1,028,850
Dana Holding Corporation		5.50			12-15-2024		1,500,000		1,530,000
Goodyear Tire & Rubber Company «		5.13			11-15-2023		1,000,000		1,012,500
Tenneco Incorporated «		5.00			7-15-2026		6,000,000		4,661,280
									8,232,630
Hotels, Restaurants & Leisure: 0.82%
Speedway Motorsports Incorporated		5.13			2-1-2023		3,115,000		3,153,938
Consumer Staples: 4.32%
Food Products: 3.78%
Lamb Weston Holdings Incorporated 144A		4.63			11-1-2024		1,000,000		1,045,410

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

12  |  Wells Fargo High Yield Bond Fund

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Food Products (continued)
Lamb Weston Holdings Incorporated 144A		4.88	%		11-1-2026	$	3,000,000	$	3,131,250
Post Holdings Incorporated 144A		5.00			8-15-2026		10,000,000		10,425,000
									14,601,660
Household Products: 0.54%
Spectrum Brands Incorporated		5.75			7-15-2025		2,000,000		2,080,000
Energy: 1.27%
Energy Equipment & Services: 0.27%
NGPL PipeCo LLC 144A		4.88			8-15-2027		1,000,000		1,061,577
Oil, Gas & Consumable Fuels: 1.00%
Cheniere Corpus Christi Holdings LLC		5.13			6-30-2027		3,500,000		3,863,125
Financials: 2.29%
Banks: 0.85%
Bank of America Corporation (3 Month LIBOR +3.90%)±		6.10			12-29-2049		3,000,000		3,270,000
Consumer Finance: 0.95%
Navient Corporation		5.88			10-25-2024		1,000,000		1,051,990
SLM Corporation		5.50			1-25-2023		2,500,000		2,625,750
									3,677,740
Insurance: 0.49%
Genworth Holdings Incorporated «		4.80			2-15-2024		2,000,000		1,895,000
Health Care: 11.61%
Health Care Equipment & Supplies: 1.48%
Teleflex Incorporated		4.88			6-1-2026		5,415,000		5,704,486
Health Care Providers & Services: 5.74%
AMN Healthcare Incorporated 144A		5.13			10-1-2024		6,298,000		6,471,195
Davita Incorporated		5.00			5-1-2025		3,000,000		3,003,750
Encompass Health Corporation		5.75			11-1-2024		3,667,000		3,712,838
HealthSouth Corporation		5.13			3-15-2023		5,000,000		5,081,250
West Street Merger Sub Incorporated 144A		6.38			9-1-2025		4,400,000		3,917,320
									22,186,353
Health Care Technology: 0.55%
Quintiles IMS Holdings Incorporated 144A		5.00			10-15-2026		2,000,000		2,110,000
Life Sciences Tools & Services: 1.74%
Charles River Laboratories Incorporated 144A		5.50			4-1-2026		6,300,000		6,740,370
Pharmaceuticals: 2.10%
Catalent Pharma Solutions Incorporated 144A		4.88			1-15-2026		8,000,000		8,120,000
Industrials: 13.62%
Aerospace & Defense: 4.50%
Huntington Ingalls Industries Incorporated 144A		5.00			11-15-2025		2,500,000		2,620,000
Moog Incorporated 144A		5.25			12-1-2022		5,000,000		5,093,750
TransDigm Group Incorporated		6.38			6-15-2026		9,200,000		9,655,308
									17,369,058

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

Wells Fargo High Yield Bond Fund  |  13

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Commercial Services & Supplies: 4.74%
ACCO Brands Corporation 144A		5.25	%		12-15-2024	$	7,417,000	$	7,611,696
Clean Harbors Incorporated 144A		4.88			7-15-2027		3,000,000		3,172,500
Clean Harbors Incorporated 144A		5.13			7-15-2029		2,250,000		2,396,250
Stericycle Incorporated 144A		5.38			7-15-2024		5,000,000		5,125,000
									18,305,446
Construction & Engineering: 0.81%
Aecom Company		5.13			3-15-2027		3,000,000		3,133,560
Electrical Equipment: 0.55%
Resideo Funding Incorporated 144A		6.13			11-1-2026		2,000,000	��	2,125,000
Machinery: 1.35%
SPX FLOW Incorporated 144A		5.63			8-15-2024		5,000,000		5,218,750
Trading Companies & Distributors: 1.67%
WESCO Distribution Incorporated		5.38			6-15-2024		6,245,000		6,447,963
Information Technology: 20.88%
Communications Equipment: 2.93%
CommScope Incorporated 144A		5.50			6-15-2024		8,200,000		7,759,250
CommScope Technologies Finance LLC 144A		6.00			6-15-2025		4,000,000		3,570,000
									11,329,250
Electronic Equipment, Instruments & Components: 4.71%
MTS Systems Corporation 144A		5.75			8-15-2027		9,000,000		9,405,000
TTM Technologies Incorporated 144A		5.63			10-1-2025		9,000,000		8,775,000
									18,180,000
IT Services: 1.36%
Gartner Incorporated 144A		5.13			4-1-2025		5,000,000		5,243,700
Semiconductors & Semiconductor Equipment: 3.45%
Broadcom Incorporated 144A		4.75			4-15-2029		5,000,000		5,267,753
Micron Technology Incorporated		5.50			2-1-2025		7,900,000		8,065,223
									13,332,976
Software: 3.66%
Fair Isaac Corporation 144A		5.25			5-15-2026		1,000,000		1,065,000
Nuance Communications Company		6.00			7-1-2024		6,760,000		7,030,400
Symantec Corporation 144A		5.00			4-15-2025		6,000,000		6,040,021
									14,135,421
Technology Hardware, Storage & Peripherals: 4.77%
Diebold Nixdorf Incorporated		8.50			4-15-2024		7,700,000		7,180,250
Western Digital Corporation		4.75			2-15-2026		11,000,000		11,257,950
									18,438,200
Materials: 10.40%
Chemicals: 7.28%
Koppers Incorporated 144A		6.00			2-15-2025		3,363,000		3,270,518

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

14  |  Wells Fargo High Yield Bond Fund

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Chemicals (continued)
Olin Corporation		5.50	%		8-15-2022	$	5,275,000	$	5,578,313
Rayonier Advanced Materials Incorporated 144A		5.50			6-1-2024		5,000,000		3,327,500
Tronox Incorporated 144A«		6.50			4-15-2026		2,000,000		1,900,000
Valvoline Incorporated		4.38			8-15-2025		13,901,000		14,040,010
									28,116,341
Containers & Packaging: 3.12%
Berry Global Incorporated 144A		4.50			2-15-2026		8,000,000		7,960,000
Berry Global Incorporated		5.13			7-15-2023		4,000,000		4,100,000
									12,060,000
Real Estate: 6.39%
Equity REITs: 6.39%
Equinix Incorporated		5.38			5-15-2027		6,430,000		6,946,522
Iron Mountain Incorporated 144A		4.88			9-15-2027		500,000		513,440
Iron Mountain Incorporated 144A		5.38			6-1-2026		12,750,000		13,164,375
Sabra Health Care LP		5.38			6-1-2023		4,000,000		4,055,000
									24,679,337
Total Corporate Bonds and Notes (Cost $294,740,011)									296,028,131
Yankee Corporate Bonds and Notes: 12.49%
Communication Services: 1.10%
Diversified Telecommunication Services: 0.54%
Virgin Media Finance plc 144A		5.75			1-15-2025		2,000,000		2,079,420
Media: 0.56%
Quebecor Media Incorporated		5.75			1-15-2023		2,000,000		2,165,660
Consumer Discretionary: 2.69%
Auto Components: 1.84%
Adient Global Holdings Company 144A		4.88			8-15-2026		9,210,000		7,114,725
Hotels, Restaurants & Leisure: 0.85%
International Game Technology plc 144A		6.50			2-15-2025		3,000,000		3,292,500
Financials: 2.88%
Diversified Financial Services: 2.88%
Tronox Finance plc 144A		5.75			10-1-2025		12,000,000		11,130,000
Health Care: 1.88%
Pharmaceuticals: 1.88%
Mallinckrodt plc 144A		5.50			4-15-2025		16,500,000		7,260,000
Industrials: 1.41%
Electrical Equipment: 1.41%
Sensata Technologies BV 144A		5.63			11-1-2024		5,000,000		5,425,000

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

Wells Fargo High Yield Bond Fund  |  15

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Information Technology: 2.53%
Technology Hardware, Storage & Peripherals: 2.53%
Seagate HDD		4.88	%		6-1-2027	$	9,500,000	$	9,777,085
Total Yankee Corporate Bonds and Notes (Cost $58,836,437)									48,244,390
	Yield					Shares
Short-Term Investments: 3.79%
Investment Companies: 3.79%
Securities Lending Cash Investments LLC (l)(r)(u)		2.24					8,780,656		8,781,534
Wells Fargo Government Money Market Fund Select Class (l)(u)		2.04					5,876,344		5,876,344
Total Short-Term Investments (Cost $14,657,878)									14,657,878

Total investments in securities (Cost $398,680,531)	101.59	%		392,474,979
Other assets and liabilities, net	(1.59	)		(6,158,094	)
Total net assets	100.00	%	$	386,316,885

† Non-income-earning security

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

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

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

(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

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 Investments LLC		34,166,983		107,894,041		133,280,368		8,780,656	$	(637	)	$	0	$	495,674	#	$	8,781,534
Wells Fargo Government Money Market Fund Select Class		3,114,436		177,049,202		174,287,294		5,876,344		0			0		104,038			5,876,344
									$	(637	)	$	0	$	599,712		$	14,657,878		3.79	%

^#  Amount shown represents income before fees and rebates.

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

16  |  Wells Fargo High Yield Bond Fund

Statement of assets and liabilities—August 31, 2019

Assets
Investments in unaffiliated securities (including $8,537,785 of securities loaned), at value (cost $384,022,653)	$	377,817,101
Investments in affiliated securities, at value (cost $14,657,878)		14,657,878
Receivable for Fund shares sold		63,343
Receivable for dividends and interest		4,614,336
Receivable for securities lending income, net		5,034
Prepaid expenses and other assets		95,254
Total assets		397,252,946
Liabilities
Payable upon receipt of securities loaned		8,781,063
Payable for Fund shares redeemed		1,645,987
Management fee payable		147,186
Dividends payable		95,344
Administration fees payable		49,429
Distribution fee payable		8,384
Trustees’ fees and expenses payable		4,042
Accrued expenses and other liabilities		204,626
Total liabilities		10,936,061
Total net assets	$	386,316,885
Net assets consist of
Paid-in capital	$	435,286,221
Total distributable loss		(48,969,336	)
Total net assets	$	386,316,885
Computation of net asset value and offering price per share
Net assets – Class A	$	273,552,693
Shares outstanding – Class A1		83,175,544
Net asset value per share – Class A		$3.29
Maximum offering price per share – Class A2		$3.45
Net assets – Class C	$	12,220,161
Shares outstanding – Class C1		3,719,740
Net asset value per share – Class C		$3.29
Net assets – Administrator Class	$	24,666,628
Shares outstanding – Administrator Class1		7,493,105
Net asset value per share – Administrator Class		$3.29
Net assets – Institutional Class	$	75,877,403
Shares outstanding – Institutional Class1		23,044,868
Net asset value per share – Institutional Class		$3.29

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.

Wells Fargo High Yield Bond Fund  |  17

Statement of operations—year ended August 31, 2019

Investment income
Interest	$	20,987,819
Dividends (net of foreign withholding taxes of $812)		610,231
Income from affiliated securities		211,554
Total investment income		21,809,604
Expenses
Management fee		2,268,810
Administration fees
Class A		425,905
Class C		42,280
Administrator Class		23,280
Institutional Class		77,292
Shareholder servicing fees
Class A		665,477
Class C		66,062
Administrator Class		58,201
Distribution fee
Class C		198,187
Custody and accounting fees		32,330
Professional fees		67,711
Registration fees		89,751
Shareholder report expenses		99,729
Trustees’ fees and expenses		21,592
Interest expense		512
Other fees and expenses		17,944
Total expenses		4,155,063
Less: Fee waivers and/or expense reimbursements
Fund-level		(449,310	)
Class A		(3,239	)
Administrator Class		(16,577	)
Institutional Class		(67,963	)
Net expenses		3,617,974
Net investment income		18,191,630
Realized and unrealized gains (losses) on investments
Net realized losses on
Unaffiliated securities		(2,339,805	)
Affiliated securities		(637	)
Net realized losses on investments		(2,340,442	)
Net change in unrealized gains (losses) on investments		(106,513	)
Net realized and unrealized gains (losses) on investments		(2,446,955	)
Net increase in net assets resulting from operations	$	15,744,675

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

18  |  Wells Fargo High Yield Bond Fund

Statement of changes in net assets

	Year ended August 31, 2019						Year ended August 31, 20181
Operations
Net investment income				$	18,191,630					$	21,855,801
Net realized gains (losses) on investments					(2,340,442	)					6,373,390
Net change in unrealized gains (losses) on investments					(106,513	)					(25,332,823	)
Net increase in net assets resulting from operations					15,744,675						2,896,368
Distributions to shareholders from
Net investment income and net realized gains
Class A					(11,648,408	)					(11,998,114	)
Class C					(966,845	)					(1,891,216	)
Administrator Class					(1,048,193	)					(1,158,390	)
Institutional Class					(4,608,052	)					(6,020,709	)
Tax basis return of capital
Class A					0						(464,808	)
Class C					0						(73,266	)
Administrator Class					0						(44,876	)
Institutional Class					0						(233,242	)
Total distributions to shareholders					(18,271,498	)					(21,884,621	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		12,335,218			39,632,798			4,507,185			15,024,416
Class C		215,166			696,992			604,048			2,028,540
Administrator Class		1,559,733			5,085,129			1,169,119			3,905,011
Institutional Class		24,871,051			80,385,234			26,302,261			88,474,810
					125,800,153						109,432,777
Reinvestment of distributions
Class A		3,272,349			10,551,156			3,396,062			11,304,123
Class C		291,746			931,523			579,628			1,929,924
Administrator Class		309,697			998,849			345,781			1,152,618
Institutional Class		1,388,617			4,476,567			1,807,352			6,016,786
					16,958,095						20,403,451
Payment for shares redeemed
Class A		(15,355,876	)		(49,481,698	)		(17,281,250	)		(57,593,665	)
Class C		(11,351,514	)		(36,368,438	)		(4,753,703	)		(15,786,507	)
Administrator Class		(1,663,412	)		(5,370,540	)		(3,502,094	)		(11,686,695	)
Institutional Class		(44,246,117	)		(141,384,353	)		(24,076,647	)		(80,563,659	)
					(232,605,029	)					(165,630,526	)
Net decrease in net assets resulting from capital share transactions					(89,846,781	)					(35,794,298	)
Total decrease in net assets					(92,373,604	)					(54,782,551	)
Net assets
Beginning of period					478,690,489						533,473,040
End of period				$	386,316,885					$	478,690,489

¹  Effective for all filings after November 4, 2018, the SEC prospectively eliminated the requirement to parenthetically disclose undistributed net investment income at the end of the period and permitted the aggregation of distributions, with the exception of tax basis returns of capital. Overdistributed net investment income at August 31, 2018 was $35,978. The disaggregated distributions information for the year ended August 31, 2018 is included in Note 8,Distributions to Shareholders, in the notes to the financial statements.

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

Wells Fargo High Yield Bond Fund  |  19

Financial highlights

(For a share outstanding throughout each period)

	Year ended August 31
CLASS A	2019			2018			2017			2016			2015
Net asset value, beginning of period		$3.28			$3.40			$3.31			$3.16			$3.35
Net investment income		0.14			0.14			0.14			0.13			0.13
Net realized and unrealized gains (losses) on investments		0.01			(0.12	)		0.10			0.15			(0.19	)
Total from investment operations		0.15			0.02			0.24			0.28			(0.06	)
Distributions to shareholders from
Net investment income		(0.14	)		(0.13	)		(0.15	)		(0.13	)		(0.13	)
Tax basis return of capital		0.00			(0.01	)		(0.00	)1		0.00			0.00
Total distributions to shareholders		(0.14	)		(0.14	)		(0.15	)		(0.13	)		(0.13	)
Net asset value, end of period		$3.29			$3.28			$3.40			$3.31			$3.16
Total return2		4.79	%		0.68	%		7.28	%		9.25	%		(1.79	)%
Ratios to average net assets (annualized)
Gross expenses		1.04	%		1.02	%		1.01	%		1.04	%		1.04	%
Net expenses		0.93	%		0.93	%		0.93	%		1.01	%		1.03	%
Net investment income		4.36	%		4.26	%		4.39	%		4.24	%		4.04	%
Supplemental data
Portfolio turnover rate		26	%		18	%		20	%		75	%		55	%
Net assets, end of period (000s omitted)		$273,553			$272,170			$314,156			$370,560			$179,357

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.

20  |  Wells Fargo High Yield Bond Fund

Financial highlights

(For a share outstanding throughout each period)

	Year ended August 31
CLASS C	2019			2018			2017			2016			2015
Net asset value, beginning of period		$3.28			$3.40			$3.31			$3.16			$3.35
Net investment income		0.12	1		0.12			0.12			0.11			0.11
Net realized and unrealized gains (losses) on investments		0.01			(0.12	)		0.09			0.15			(0.19	)
Total from investment operations		0.13			(0.00	)		0.21			0.26			(0.08	)
Distributions to shareholders from
Net investment income		(0.12	)		(0.11	)		(0.12	)		(0.11	)		(0.11	)
Tax basis return of capital		0.00			(0.01	)		(0.00	)2		0.00			0.00
Total distributions to shareholders		(0.12	)		(0.12	)		(0.12	)		(0.11	)		(0.11	)
Net asset value, end of period		$3.29			$3.28			$3.40			$3.31			$3.16
Total return3		4.00	%		(0.07	)%		6.49	%		8.44	%		(2.52	)%
Ratios to average net assets (annualized)
Gross expenses		1.79	%		1.77	%		1.76	%		1.80	%		1.79	%
Net expenses		1.68	%		1.68	%		1.68	%		1.77	%		1.78	%
Net investment income		3.64	%		3.51	%		3.65	%		3.48	%		3.29	%
Supplemental data
Portfolio turnover rate		26	%		18	%		20	%		75	%		55	%
Net assets, end of period (000s omitted)		$12,220			$47,811			$61,734			$72,908			$60,753

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.

Wells Fargo High Yield Bond Fund  |  21

Financial highlights

(For a share outstanding throughout each period)

	Year ended August 31
ADMINISTRATOR CLASS	2019			2018			2017			2016			2015
Net asset value, beginning of period		$3.29			$3.41			$3.31			$3.16			$3.36
Net investment income		0.15	1		0.15			0.15			0.14	1		0.14
Net realized and unrealized gains (losses) on investments		0.00			(0.12	)		0.10			0.15			(0.20	)
Total from investment operations		0.15			0.03			0.25			0.29			(0.06	)
Distributions to shareholders from
Net investment income		(0.15	)		(0.14	)		(0.15	)		(0.14	)		(0.14	)
Tax basis return of capital		0.00			(0.01	)		(0.00	)2		0.00			0.00
Total distributions to shareholders		(0.15	)		(0.15	)		(0.15	)		(0.14	)		(0.14	)
Net asset value, end of period		$3.29			$3.29			$3.41			$3.31			$3.16
Total return		4.60	%		0.82	%		7.74	%		9.48	%		(1.86	)%
Ratios to average net assets (annualized)
Gross expenses		0.98	%		0.96	%		0.95	%		0.98	%		0.98	%
Net expenses		0.80	%		0.80	%		0.80	%		0.80	%		0.80	%
Net investment income		4.48	%		4.39	%		4.55	%		4.43	%		4.27	%
Supplemental data
Portfolio turnover rate		26	%		18	%		20	%		75	%		55	%
Net assets, end of period (000s omitted)		$24,667			$23,940			$31,592			$76,688			$13,129

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 High Yield Bond Fund

Financial highlights

(For a share outstanding throughout each period)

	Year ended August 31
INSTITUTIONAL CLASS	2019			2018			2017			2016			20151
Net asset value, beginning of period		$3.28			$3.41			$3.31			$3.17			$3.33
Net investment income		0.15			0.16			0.16			0.14			0.12
Net realized and unrealized gains (losses) on investments		0.01			(0.13	)		0.10			0.14			(0.16	)
Total from investment operations		0.16			0.03			0.26			0.28			(0.04	)
Distributions to shareholders from
Net investment income		(0.15	)		(0.15	)		(0.16	)		(0.14	)		(0.12	)
Tax basis return of capital		0.00			(0.01	)		(0.00	)2		0.00			0.00
Total distributions to shareholders		(0.15	)		(0.16	)		(0.16	)		(0.14	)		(0.12	)
Net asset value, end of period		$3.29			$3.28			$3.41			$3.31			$3.17
Total return3		5.20	%		0.79	%		8.03	%		9.27	%		(1.31	)%
Ratios to average net assets (annualized)
Gross expenses		0.71	%		0.69	%		0.68	%		0.70	%		0.71	%
Net expenses		0.53	%		0.53	%		0.53	%		0.61	%		0.70	%
Net investment income		4.75	%		4.67	%		4.79	%		4.65	%		4.33	%
Supplemental data
Portfolio turnover rate		26	%		18	%		20	%		75	%		55	%
Net assets, end of period (000s omitted)		$75,877			$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.

Wells Fargo High Yield Bond Fund  |  23

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.

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 (e.g. taking into account various factors, including yields, maturities, or credit ratings) 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.

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. When securities are on loan, the Fund receives interest or dividends on those securities. Cash collateral received in connection with its securities lending transactions is invested in Securities Lending Cash Investments, LLC (the “Securities Lending Fund”). Investments in Securities Lending Fund are valued at the evaluated bid price provided by an independent pricing service. Income earned from investment in the Securities Lending Fund (net of fees and rebates), if any, is included in income from affiliated securities on the Statement of Operations.

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. The Fund has the right under the lending agreement to recover the securities from the borrower on demand. 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 such an event, the terms of the agreement allows the unaffiliated securities lending agent to use the collateral to purchase replacement securities on behalf of the Fund or pay the Fund the market value of the loaned securities. The Fund will bear the risk of loss with respect to depreciation of its investment of the cash collateral.

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.

24  |  Wells Fargo High Yield Bond Fund

Notes to financial statements

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, 2019, the aggregate cost of all investments for federal income tax purposes was $398,782,686 and the unrealized gains (losses) consisted of:

Gross unrealized gains	$	14,832,360
Gross unrealized losses		(21,140,067	)
Net unrealized losses	$	(6,307,707	)

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, 2019, 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	Total distributable earnings
$(2,113)	$2,113

As of August 31, 2019, the Fund had capital loss carryforwards which consist of $17,264,367 in short-term capital losses and $25,479,759 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 fund-level 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

Wells Fargo High Yield Bond Fund  |  25

Notes to financial statements

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, 2019:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer staples	$	1,055,850	$	0	$	0	$	1,055,850
Health care		2,043,100		0		0		2,043,100
Industrials		4,221,200		0		0		4,221,200
Information technology		13,263,110		0		0		13,263,110
Materials		5,887,690		0		0		5,887,690
Real estate		1,971,130		0		0		1,971,130
Utilities		5,102,500		0		0		5,102,500
Corporate bonds and notes		0		296,028,131		0		296,028,131
Yankee corporate bonds and notes		0		48,244,390		0		48,244,390
Short-term investments
Investment companies		14,657,878		0		0		14,657,878
Total assets	$	48,202,458	$	344,272,521	$	0	$	392,474,979

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

For the year ended August 31, 2019, the Fund did not have any transfers into/out of 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 a management fee at the following annual rate based on the Fund’s average daily net assets:

Average daily net assets	Management fee
First $500 million		0.550	%
Next $500 million		0.525
Next $2 billion		0.500
Next $2 billion		0.475
Next $5 billion		0.440
Over $10 billion		0.430

26  |  Wells Fargo High Yield Bond Fund

Notes to financial statements

For the year ended August 31, 2019, 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. Wells Capital Management Incorporated (“WellsCap”), an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.35% and declining to 0.20% as the average daily net assets of the Fund increase.

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

Waivers and/or expense reimbursements

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. When only certain classes exceed their expense caps, waivers and/or reimbursements are applied against class specific expenses before fund-level expenses. Funds Management has committed through December 31, 2019 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. Prior to or after the commitment expiration date, 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, 2019, Funds Distributor received $6,243 from the sale of Class A shares and $33 in contingent deferred sales charges from redemptions of Class C shares. No contingent deferred sales charges were incurred by Class A for the year ended August 31, 2019.

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 $8,145,000 and $54,133,125 in interfund purchases and sales, respectively, during the year ended August 31, 2019.

Wells Fargo High Yield Bond Fund  |  27

Notes to financial statements

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended August 31, 2019 were $104,731,655 and $194,954,615, respectively.

6. SECURITIES LENDING TRANSACTIONS

The Fund lends its securities through an unaffiliated securities lending agent and 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 increases or decreases in the required collateral are exchanged between the Fund and the counterparty on the next business day. Cash collateral received is invested in the Securities Lending Fund which 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 and is exempt from registration under Section 3(c)(7) of the 1940 Act. Securities Lending Fund is managed by Funds Management and is subadvised by WellsCap. 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.

In the event of counterparty default or the failure of a borrower to return a loaned security, the Fund has the right to use the collateral to offset any losses incurred. As of August 31, 2019, the Fund had securities lending transactions with the following counterparties which are subject to offset:

Counterparty	Value of securities on loan		Collateral received1			Net amount
Barclays Capital Inc.	$	878,984	$	(878,984	)	$	0
Citigroup Global Markets Inc.		2,013,382		(2,013,382	)		0
JPMorgan Securities LLC		5,645,419		(5,645,419	)		0

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

7. BANK BORROWINGS

The Trust (excluding the money market funds), 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.

During the year ended August 31, 2019, the Fund had average borrowings outstanding of $13,727 at an average interest rate of 3.73% and paid interest in the amount of $512.

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended August 31, 2019 and August 31, 2018 were as follows:

	Year ended August 31
	2019		2018
Ordinary income	$	18,271,498	$	21,068,429
Tax basis return of capital		0		816,192

As of August 31, 2019, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Unrealized losses	Capital loss carryforward
$212,636	$(6,307,707)	$(42,744,126)

28  |  Wells Fargo High Yield Bond Fund

Notes to financial statements

Effective for all filings after November 4, 2018, the Securities and Exchange Commission eliminated the requirement to separately state the components of distributions to shareholders under U.S. generally accepted accounting principles. The amounts of distributions to shareholders for the year ended August 31, 2018 were as follows:

	Net investment income		Net realized gains
Class A	$	11,998,114	$	464,808
Class C		1,891,216		73,266
Administrator Class		1,158,390		44,876
Institutional Class		6,020,709		233,242

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

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 has adopted the removal and modification of disclosures early, as permitted, and will adopt the additional new disclosures at the effective date.

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 and requires the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount and discounts will continue to be accreted to the maturity date of the security. ASU 2017-08 is effective for fiscal years beginning after December 15, 2018 and for interim periods within those fiscal years. During the current reporting period, management of the Fund adopted the change in accounting policy which did not have a material impact to the Fund’s financial statements.

Wells Fargo High Yield Bond Fund  |  29

Report of independent registered public accounting firm

TO THE SHAREHOLDERS OF THE FUND AND BOARD OF TRUSTEES 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), one of the funds constituting Wells Fargo Funds Trust, including the portfolio of investments, as of August 31, 2019, 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, 2019, 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, 2019, by correspondence with the custodian and transfer agent. 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 28, 2019

30  |  Wells Fargo High Yield Bond Fund

Other information (unaudited)

TAX INFORMATION

For corporate shareholders, pursuant to Section 854 of the Internal Revenue Code, 2.09% of ordinary income dividends qualify for the corporate dividends-received deduction for the fiscal year ended August 31, 2019.

Pursuant to Section 854 of the Internal Revenue Code, $510,841 of income dividends paid during the fiscal year ended August 31, 2019 has been designated as qualified dividend income (QDI).

For the fiscal year ended August 31, 2019, $14,420,961 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 used to determine how to vote proxies relating to portfolio securities is available, upon request, by calling1-800-222-8222, visiting our website atwfam.com, or visiting the SEC website at sec.gov. Information regarding how the proxies related to portfolio securities were voted during the most recent 12-month period ended June 30 is available on the website atwfam.comor by visiting the SEC website at sec.gov.

QUARTERLY PORTFOLIO HOLDINGS INFORMATION

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 or Form N-PORT, which is available by visiting the SEC website at sec.gov. Those forms may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling1-800-SEC-0330.

Wells Fargo High Yield Bond Fund  |  31

Other information (unaudited)

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 152 mutual funds comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information². The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.

Independent Trustees

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
William R. Ebsworth (Born 1957)	Trustee, since 2015	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief investment officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong, and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he led a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Audit Committee Chair and Investment Committee Chair of the Vincent Memorial Hospital Endowment (non-profit organization). 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; Audit Committee Chairman, since 2019	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, from 2009 to 2018	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

32  |  Wells Fargo High Yield Bond Fund

Other information (unaudited)

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
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
Olivia S. Mitchell (Born 1953)	Trustee, since 2006; Nominating and 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	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	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

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

Wells Fargo High Yield Bond Fund  |  33

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.
Michelle Rhee3 (Born 1966)	Chief Legal Officer, since 2019	Secretary of Wells Fargo Funds Management, LLC, Chief Legal Counsel of Wells Fargo Asset Management and Assistant General Counsel of Wells Fargo Bank, N.A. since 2018. Associate General Counsel and Managing Director of Bank of America Corporation from 2004 to 2018.
Catherine Kennedy4 (Born 1969)	Secretary, since 2019	Vice President of Wells Fargo Funds Management, LLC and Senior Counsel of the Wells Fargo Legal Department since 2010. Vice President and Senior Counsel of Evergreen Investment Management Company, LLC from 1998 to 2010.
Michael H. Whitaker (Born 1967)	Chief Compliance Officer, since 2016	Chief Compliance Officer of Wells Fargo Asset Management 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 65 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 87 funds and Assistant Treasurer of 65 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 atwfam.com.

³  Michelle Rhee became Chief Legal Officer effective October 22, 2019.

⁴  Catherine Kennedy became Secretary effective October 22, 2019.

34  |  Wells Fargo High Yield Bond Fund

Other information (unaudited)

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 21-22, 2019 (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 2019, 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 2019. 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 received and reviewed information about Funds Management’s role as administrator of the Fund’s liquidity risk management program. 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.

Wells Fargo High Yield Bond Fund  |  35

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, 2018. 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 the five- and ten-year periods under review, but lower than 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 lower than its benchmark index, the ICE BofAML U.S. High Yield Constrained 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 that affected the Fund’s investment performance. The Board also took note of the Fund’s outperformance relative to the Universe over the longer time 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 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 proprietary mutual funds compared with those associated with managing assets of other types of clients, including third-party sub-advised fund clients and 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.

36  |  Wells Fargo High Yield Bond 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”) from providing services to the fund family as a whole. The Board noted that the Sub-Adviser’s profitability information with respect to providing services to the Fund and other funds in the family 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. 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, type and age 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 received and considered information about the potential for Funds Management to experience economies of scale in the provision of management services to the Fund, the difficulties of calculating economies of scale at an individual fund level, and the extent to which potential scale benefits are shared with shareholders. 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. The Board considered that in addition to management fee breakpoints, Funds Management shares potential economies of scale from its management business in a variety of ways, including through fee waiver and expense reimbursement arrangements, services that benefit shareholders, competitive management fee rates set at the outset without regard to breakpoints, and investments in the business intended to enhance services available to shareholders.

The Board concluded that Funds Management’s arrangements with respect to the Fund, 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.

Wells Fargo High Yield Bond Fund  |  37

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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:wfam.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, call1-800-222-8222 or visit the Fund’s website atwfam.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.

INVESTMENT PRODUCTS: NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

© 2019 Wells Fargo Funds Management, LLC. All rights reserved.

405804 10-19

A218/AR218 08-19

Annual Report

August 31, 2019

Wells Fargo

Conservative Income Fund

Beginning on January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, paper copies of the Wells Fargo Funds’ annual and semi-annual shareholder reports issued after this date will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Funds’ website, and you will be notified by mail each time a report is posted and provided with a website address to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling1-800-222-8222 or by enrolling at wellsfargo.com/advantagedelivery.

You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports; if you invest directly with the Fund, you can call 1-800-222-8222. Your election to receive reports in paper will apply to all Wells Fargo Funds held in your account with your financial intermediary or, if you are a direct investor, to all Wells Fargo Funds that you hold.

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	24
Other information	25

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Save trees.

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The views expressed and any forward-looking statements are as of August 31, 2019, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Asset Management. 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 Asset Management and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

INVESTMENT PRODUCTS: NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾  MAY LOSE VALUE

Wells Fargo Conservative Income Fund  |  1

Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

Dear Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Conservative Income Fund for the 12-month period that ended August 31, 2019. After the first half of the period yielded either low-single-digit or negative investment returns, U.S. stock and global bond investors generally saw markets recover during the second half amid intensifying market volatility, global economic growth concerns, international trade staredowns, and simmering geopolitical tensions.

Overall, fixed-income investors enjoyed a distinct advantage over stock investors. For the period, U.S. stocks, based on the S&P 500 Index,¹ gained 2.92% and international stocks, as measured by the MSCI ACWI ex USA Index (Net),² fell 3.27%. The MSCI EM Index (Net)³ slipped 4.36%. Among fixed income investors, the Bloomberg Barclays U.S. Aggregate Bond Index⁴ added 10.17%, the Bloomberg Barclays Global Aggregate ex-USD Index⁵ added 5.71%, the Bloomberg Barclays Municipal Bond Index⁶ gained 8.72%, and the ICE BofAML U.S. High Yield Index⁷ added 6.58%.

Entering the fourth quarter of 2018, economic data was encouraging.

Entering the fourth quarter of 2018, there were reasons for investors to be optimistic. The U.S. Bureau of Economic Analysis reported U.S. gross domestic product (GDP) grew 4.2% on an annualized basis during the second quarter. Hiring improved. Unemployment declined. Consumer spending gained. Third-quarter corporate earnings reports were generally positive. U.S. trade negotiations with Mexico and Canada advanced. In September 2018, the U.S. Federal Reserve (Fed) raised the federal funds rate by 25 basis points (bps; 100 bps equal 1.00%) to a target range of between 2.00% and 2.25% in an indication of its confidence that U.S. economic growth was sustainable.

International markets presented numerous challenges. U.S.-China trade tensions increased. The U.S. imposed $200 billion in tariffs on Chinese goods. China reacted with $60 billion in tariffs on U.S. goods. Economic growth in China caused concern. In September 2018, international investors began to factor in a number of disconcerting economic and business data points: lower July manufacturing and industrial orders in Germany; declining purchasing managers’ index numbers for August from the United Kingdom, China, and India; and declining household spending for August in Japan. Taken together, the data fed growing concerns that global economic growth was slowing.

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 and emerging markets, excluding the U.S. 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 the equity market performance of emerging markets. 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 2019. ICE Data Indices, LLC. All rights reserved.

2  |  Wells Fargo Conservative Income Fund

Letter to shareholders (unaudited)

Investors had to digest unsettling events during the fourth quarter of 2018.

November’s U.S. midterm elections shifted control of the House of Representatives from Republicans to Democrats, presaging partisan clashes that followed and caused uncertainty among investors. A partial U.S. government shutdown driven by partisan policy disputes extended into January 2019. Third-quarter U.S. GDP was announced at an annualized 3.4% rate, lower than the second-quarter rate. Brexit efforts stalled. The value of the renminbi declined even as the People’s Bank of China cut reserve requirement ratios, accelerated infrastructure spending, and cut taxes in efforts to spur economic activity.

The combination of news in the U.S. and generally weak economic indicators outside of the U.S. caused investors to seek safe havens. December’s S&P 500 Index performance was the worst since 1931. Globally, fixed-income investments fared better than stocks during the last two months of the year. The Fed increased the federal funds rate by 25 bps in December 2018 to a target range of between 2.25% and 2.50% even as observers expressed concerns that higher rates could slow the economy.

The market climbs a wall of worry.

Investment returns appeared to reaffirm the adage that markets climb a wall of worry as 2019 opened. Following its December decline, the S&P 500 Index gained 8.01% for the month of January, the best monthly performance in 30 years. Returns for the MSCI ACWI ex USA Index (Net), the Bloomberg Barclays U.S. Aggregate Bond Index, and the Bloomberg Barclays Global Aggregate ex-USD Index also were positive.

In February 2019, signs of slowing global growth grew more ominous. The Bureau of Economic Analysis announced fourth-quarter 2018 GDP grew at an annualized 2.2% rate, down from the levels of the prior two quarters. In a February report, the Bank of England forecast the slowest growth for 2019 since the financial crisis. China and the U.S. continued to wrangle over trade issues. By the end of the first quarter of 2019, more accommodative Fed sentiment and steady, if not spectacular, U.S. economic and business metrics encouraged domestic investors.

Early second-quarter 2019 enthusiasm among investors faded.

During April 2019, favorable sentiment found additional support in reports of sustained low inflation, solid employment data, and first-quarter U.S. GDP of an annualized rate of 3.2%. During May, markets tumbled on mixed investment signals. In the U.S., partisan wrangling ramped up as Democrats and Republicans set their sights on 2020 presidential politics. The U.K.’s Brexit contretemps caused Prime Minister Theresa May to resign. Boris Johnson succeeded her only to exacerbate uncertainty about Brexit’s resolution ahead of an October 2019 deadline. The European Commission downgraded the 2019 growth forecast to 1.2%. The U.S. increased tariffs on products from China, China responded, and then talks broke down. President Donald Trump threatened to turn his foreign policy tariff tool to Mexico over immigration issues.

During the third quarter of 2019, investors regrouped. Just as the investment horizon appeared to darken, sentiment turned and U.S. equity markets gained during June and July. The gains, primarily driven by geopolitical and monetary policy events, pushed equity markets to new highs. European Central Bank President Mario Draghi said that if the outlook doesn’t improve, the bank would cut rates or buy more assets to prop up inflation. President Trump backed off of tariff threats against Mexico and China. In the U.S., the Fed implemented a 0.25% federal funds rate cut in July.

Later in July, the U.S. reversed course and threatened to impose higher tariffs on China’s exports after talks failed. China responded with tariff threats of its own and

“December’s S&P 500 Index performance was the worst since 1931.”

“Following its December decline, the S&P 500 Index gained 8.01% for the month of January, the best monthly performance in 30 years.”

Wells Fargo Conservative Income Fund  |  3

Letter to shareholders (unaudited)

For further information about your Fund, contact your investment professional, visit our website at wfam.com,

or call us directly at1-800-222-8222.

devalued the renminbi, a move that roiled global markets. Major U.S. stock market indices closed July 2019 with the worst weekly results of the year. Bond prices gained as Treasury yields fell to levels not seen since November 2016 and the yield curve inverted at multiple points along the 30-year arc.

In a microcosm, August 2019 encapsulated many of the unnerving events that plagued investors during the prior 11 months. The U.S.-China trade relationship swung from discouraging to hopeful and back again with no evident compromise on the horizon. Evidence of a continued global economic slowdown continued to mount as central banks in China, New Zealand, and Thailand cut interest rates. Industrial and manufacturing data declined in China, Canada, Japan, and Germany. Adding to the uncertain environment, Italy’s prime minister resigned, many feared a crackdown in Hong Kong as protesters sustained their calls for reform throughout the month, and Boris Johnson planned to suspend Parliament as Brexit’s deadline neared.

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

4  |  Wells Fargo Conservative Income Fund

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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, 2019    

									Expense ratios1 (%)
	Inception date	1 year		5 year		Since inception			Gross		Net2
Institutional Class (WCIIX)	5-31-2013		2.71		1.32		1.18			0.37		0.27
Bloomberg Barclays6-9 Month Treasury Bill Index3	–		2.68		1.01		0.83	*		–		–

* 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. Currentmonth-end performance is available on the Fund’s website,wfam.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 afront-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.

6  |  Wells Fargo Conservative Income Fund

Performance highlights (unaudited)

Growth of $1,000,000 investment as of August 31, 2019⁴

^‡  CFA^® and Chartered Financial Analyst^® are trademarks owned by CFA Institute.    

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, 2019, to waive fees and/or reimburse expenses to the extent necessary to cap the expenses at the amount shown. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses (if any), and extraordinary expenses are excluded from the expense cap. Prior to or after the commitment expiration date, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Without this cap, the Fund’s returns would have been lower. The expense ratio paid by an investor is the net expense ratio (the total annual fund operating expenses after fee waivers) as stated in the prospectus.

³  The Bloomberg Barclays6-9 Month Treasury Bill Index includes all publicly issuedzero-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 Barclays6-9 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, are calculated based on the value of the investments divided by total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

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

Wells Fargo Conservative Income Fund  |  7

Performance highlights (unaudited)

MANAGER’S DISCUSSION    

Fund highlights    

∎ The Fund outperformed its benchmark, the Bloomberg Barclays 6–9 Month Treasury Bill Index, for the12-month period that ended August 31, 2019.

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

∎ The Fund’s duration was extended over the past 12 months to enhance return in a declining interest rate environment.

∎ Duration and yield curve positioning were slight detractors.

Ten largest holdings(%) as of August 31, 20195
GNMA, Series2019-H04 Class CA,3.00%, 3-20-2069	1.89
World Omni Auto Lease Trust Series2018-A Class A3, 2.00%,4-17-2023	1.82
TTX Company, 2.60%,6-15-2020	1.81
Bank of America Credit Card Trust Series2017-A1 Class A1, 1.95%,8-15-2022	1.80
FHLMC Multi Family Structured Pass-Through Securities, SeriesK-715 Class A2,2.86%, 1-25-2021	1.73
WEA Finance LLC, 3.25%,10-5-2020	1.52
Protective Life Global Funding, 2.85%,6-28-2021	1.51
NextGear Floorplan Master Trust Series2018-1A Class A1, 2.84%,2-15-2023	1.51
Delamare Cards Series2018-1A Class A1,2.88%, 11-19-2025	1.51
WM Wrigley Jr. Company, 2.90%,10-21-2019	1.50

Yield-advantaged sectors added value.

The largest allocation of the Fund was to corporate bonds. This allocation drove the performance of the portfolio. The finance sector had the highest return of all subsectors within the corporate sector, driving the performance of the portfolio.

The Fund’s sector allocation changed during the year. The allocation to fixed-rate corporate positions increased by 26%. The allocation to floating-rate corporate notes decreased by 11%, resulting in an overall increase of 15% to the corporate sector. The allocation to commercial paper was reduced by 21% to a total of 16%, including CDs and daily sweeps. These changes were implemented in order to lengthen the duration of the portfolio, which did increase from 0.33 years to 0.48 years. The floating-rate corporate note exposure, which generated a positive contribution to return for the year, was decreased by 11% to 23% due to concerns about lower interest rates. Floating-rate notes benchmarked to the London Interbank Offered Rate (LIBOR) have continued to offer attractive yields. However, LIBOR will likely move lower along with interest rates, which will result in lower coupons.

The Fund maintained significant exposure toAAA-rated ABS throughout the year. The Fund held primarily fixed-rate short-dated tranches(two-year and shorter weighted average life) across ABS sectors, with particular emphasis on senior classes in equipment and prime auto issuers. Sector fundamentals have been solid, and automobile ABS exhibited strong, resilient credit trends even at this later stage of the economic cycle. Tighter underwriting standards have led tonear-record-low defaults and net losses. The ABS sector currently offers a good risk-adjusted return profile and a large investable universe with good liquidity. The Fund did add exposure to short-term government mortgage-backed securities as the sector has become attractive due to the reduction in purchases by the U.S. Federal Reserve (Fed) and commercial banks.

Portfolio allocation as of August 31, 2019⁶

We extended duration to take advantage of lower interest rates.

The Fed increased the federal funds rate by 25 basis points (bps; 100 bps equal 1.00%) in December 2018. In a reaction to increasingly volatile markets, uncertainty around a trade war, and a weaker global economy, the Fed reversed course and cut the federal funds rate in July 2019 by 25 bps. Short-term Treasury yields were quite volatile during the12-month period that ended August 31, 2019. Yields on the1-year Treasury bill dropped 67 bps to yield 1.76%,2-year Treasury note yields dropped 112 bps to yield 1.50%, and3-year Treasury note yields dropped 126 bps to yield 1.42%. In addition to the volatility in interest rates, the yield curve inverted with longer-term Treasuries yielding less than short-term Treasuries across certain segments of the curve.

Please see footnotes on page 7.

8  |  Wells Fargo Conservative Income Fund

Performance highlights (unaudited)

The Fund’s duration, which is shorter than the benchmark and was a slight detractor from performance for the portfolio, was increased to 0.48 years from 0.33 years during the period. We expect to maintain the Fund’s duration and will look for opportunities to extend the Fund’s duration as the Fed has embarked on an easing policy consistent with amid-cycle adjustment.

We see opportunities ahead.

We believe the Fed will likely lower the federal funds rate twice during the remainder of 2019. Looking ahead to 2020, the Fed will likely reiterate its message that it is data dependent and take the appropriate steps to support economic growth and employment. The corporate bond market is both technically and fundamentally strong.Year-to-date issuance was down 6% versus the same time period last year. While nonfinancial supply was up 10% during this time period, financial issuance was down 27%. Given the reduction in supply and steady demand, corporates performed well. The Fund’s strategy requires investing in high-quality securities, and given the tight spreads currently available in the corporate market, the Fund may potentially benefit by avoiding lower-credit-quality corporates, which are more likely to underperform in a spread widening environment.

Automobile ABS issuance increased through August 2019 versus the same time period in 2018. Overall ABS issuance, however, decreased, led by credit cards, which were down $13 billion. As noted previously, the fundamentals of the sector are strong and we expect the Fund will maintain significant exposure to this high-credit-quality and defensive sector. Nonfinancial commercial paper issuance is declining, in large part due to bond market activity among active borrowers who are issuing longer-dated corporate notes to lock in attractive rates. Commercial paper rates will likely move lower due to the decreased supply and falling LIBOR rates. The commercial paper allocation to the Fund was reduced to focus on other attractive sectors.

The duration of the Fund will likely be positioned in a conservative manner and may be extended in anticipation of lower interest rates. 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.

Wells Fargo Conservative Income Fund  |  9

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 thesix-month period and held for the entire period from March 1, 2019 to August 31, 2019.

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 3-1-2019		Ending account value 8-31-2019		Expenses paid during the period¹		Annualized net expense ratio
Institutional Class
Actual	$	1,000.00	$	1,015.13	$	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 net annualized 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 theone-half-year period).

10  |  Wells Fargo Conservative Income Fund

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Agency Securities: 5.10%
FHLMC Multi Family Structured Pass-Through Securities SeriesK-714 Class A2 ±±		3.03	%		10-25-2020	$	4,894,716	$	4,925,958
FHLMC Multi Family Structured Pass-Through Securities SeriesK-715 Class A2 ±±		2.86			1-25-2021		5,705,184		5,745,794
GNMA Series2019-H04 Class CA±±		3.00			3-20-2069		6,249,346		6,282,435
Total Agency Securities (Cost $16,924,556)									16,954,187
Asset-Backed Securities: 24.65%
Ally Auto Receivables Trust Series2018-2 Class A3		2.92			11-15-2022		2,465,000		2,485,989
American Express Credit Account Master Trust Series2017-1 Class A		1.93			9-15-2022		1,300,000		1,299,044
American Express Credit Account Master Trust Series2017-6 Class A		2.04			5-15-2023		2,236,000		2,240,389
AmeriCredit Automobile Receivables Trust Series2019-1 Class A2A		2.93			6-20-2022		2,000,000		2,008,815
Bank of America Credit Card Trust Series2017-A1 Class A1		1.95			8-15-2022		6,000,000		5,996,775
Bank of the West Auto Trust Series2018-1 Class A2 144A		3.09			4-15-2021		1,958,670		1,962,760
Canadian Pacer Auto Receivables Trust Series2018-2A Class A2A 144A		3.00			6-21-2021		1,008,803		1,011,817
Canadian Pacer Auto Receivables Trust Series2019-1A Class A2 144A		2.78			3-21-2022		2,000,000		2,008,794
CarMax Auto Owner Trust Series2018-4 Class A2A		3.11			2-15-2022		2,624,921		2,638,680
CCG Receivables Trust Series2018-2 Class A2 144A		3.09			12-15-2025		3,731,131		3,763,797
Chase Issuance Trust Series2015-A4 Class A4		1.84			4-15-2022		3,500,000		3,496,865
Chase Issuance Trust Series2016-A4 Class A4		1.49			7-15-2022		3,000,000		2,987,831
Delamare Cards Series2018-1A Class A1 (1 Month LIBOR +0.70%) 144A±		2.88			11-19-2025		5,000,000		5,006,210
Dell Equipment Finance Trust Series2018-1 Class A2A 144A		2.97			10-22-2020		670,019		671,431
Dell Equipment Finance Trust Series2018-2 Class A2 144A		3.16			2-22-2021		1,387,211		1,395,632
Hertz Fleet Lease Funding LP Series2017-1 Class A1 (1 Month LIBOR +0.65%) 144A±		3.03			4-10-2031		1,013,037		1,014,234
Hyundai Auto Lease Securitization Trust Series2019-B Class A2 144A		2.08			12-15-2021		830,000		831,190
Mercedes-Benz Auto Lease Trust Series2019-A Class A2		3.01			2-16-2021		3,051,158		3,059,296
NextGear Floorplan Master Trust Series2018-1A Class A1 (1 Month LIBOR +0.64%) 144A±		2.84			2-15-2023		5,000,000		5,007,548
Nissan Auto Receivables Owner Trust Series2019-B Class A2		2.56			3-15-2022		1,350,000		1,356,582
Oscar US Funding Trust Series2017-2A Class A2A 144A		2.13			11-10-2020		41,883		41,870
Oscar US Funding Trust Series2018-1A Class A2B (1 Month LIBOR +0.49%) 144A±		2.87			4-12-2021		675,620		675,879
Oscar US Funding Trust Series2018-2A Class A2A 144A		3.15			8-10-2021		2,001,433		2,007,736
Oscar US Funding Trust Series2019-2A Class A2 144A		2.49			8-10-2022		500,000		501,441
Penarth Master Issuer plc Series2019-1A Class A1 (1 Month LIBOR +0.54%) 144A±		2.72			7-18-2023		2,000,000		1,998,580
Santander Retail Auto Lease Trust Series2019-B Class A2A 144A		2.29			4-20-2022		1,000,000		1,002,882
Securitized Term Auto Receivables Trust Series2018-2A Class A2A 144A		3.06			2-25-2021		1,071,809		1,074,843
SoFi Consumer Loan Program Trust Series2018-4 Class A 144A		3.54			11-26-2027		3,852,662		3,891,138
SoFi Consumer Loan Program Trust Series2019-2 Class A 144A		3.01			4-25-2028		1,313,112		1,324,308
Tesla Auto Lease Trust Series2018-A Class C 144A		2.97			4-20-2020		1,870,000		1,872,628
Trillium Credit Card Trust II Series2019-2A Class A 144A		3.04			1-26-2024		2,000,000		2,030,459
Trillium Credit Card Trust III Series2018-2A Class A (1 Month LIBOR +0.35%) 144A±		2.50			9-26-2023		1,150,000		1,150,806
Verizon Owner Trust Series2017-3A Class A1A 144A		2.06			4-20-2022		4,486,000		4,484,458
Verizon Owner Trust Series2018-1A Class A1 144A		2.82			9-20-2022		2,000,000		2,017,514
Volvo Financial Equipment LLC Series2019-1A Class A2 144A		2.90			11-15-2021		1,600,000		1,607,023
World Omni Auto Lease Trust Series2018-A Class A3		2.50			4-17-2023		6,000,000		6,041,380
Total Asset-Backed Securities (Cost $81,657,327)									81,966,624

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

Wells Fargo Conservative Income Fund  |  11

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Corporate Bonds and Notes: 33.53%
Communication Services: 2.12%
Entertainment: 1.20%
The Walt Disney Company		1.95	%		3-4-2020	$	4,000,000	$	4,000,226
Media: 0.92%
Comcast Corporation		3.30			10-1-2020		3,000,000		3,043,651
Consumer Discretionary: 0.91%
Automobiles: 0.91%
Volkswagen Group America Company (3 Month LIBOR +0.77%) 144A±		2.95			11-13-2020		3,000,000		3,013,016
Consumer Staples: 1.50%
Food Products: 1.50%
WM Wrigley Jr. Company 144A		2.90			10-21-2019		5,000,000		5,002,131
Energy: 1.32%
Oil, Gas & Consumable Fuels: 1.32%
Exxon Mobil Corporation (3 Month LIBOR +0.33%)±		2.50			8-16-2022		4,375,000		4,386,305
Financials: 24.67%
Banks: 5.11%
BB&T Corporation		2.45			1-15-2020		3,500,000		3,502,485
Branch Banking Trust		2.10			1-15-2020		1,350,000		1,349,862
Citigroup Incorporated		2.70			3-30-2021		2,000,000		2,020,193
HSBC Bank USA NA		4.88			8-24-2020		2,000,000		2,052,131
JPMorgan Chase & Company		4.25			10-15-2020		2,000,000		2,048,913
JPMorgan Chase Bank NA (3 Month LIBOR +0.37%)±		2.49			2-19-2021		2,000,000		2,001,235
US Bank NA		2.35			1-23-2020		4,000,000		4,003,537
									16,978,356
Capital Markets: 2.89%
Bank of New York Mellon Corporation (3 Month LIBOR +0.28%)±		2.78			6-4-2021		900,000		900,491
Charles Schwab Corporation (3 Month LIBOR +0.32%)±		2.47			5-21-2021		4,540,000		4,542,148
Goldman Sachs Group Incorporated		6.00			6-15-2020		1,000,000		1,028,729
Morgan Stanley		5.75			1-25-2021		3,000,000		3,147,476
									9,618,844
Consumer Finance: 4.66%
American Honda Finance Corporation (3 Month LIBOR +0.15%)±		2.30			2-21-2020		5,000,000		5,001,329
BMW US Capital LLC 144A		1.45			9-13-2019		2,000,000		1,999,433
BMW US Capital LLC (3 Month LIBOR +0.41%) 144A±		2.82			9-13-2019		2,000,000		2,000,303
Daimler Finance North America LLC 144A		2.25			9-3-2019		1,000,000		1,000,000
John Deere Capital Corporation		2.20			3-13-2020		2,500,000		2,500,615
Nissan Motor Acceptance Corporation (3 Month LIBOR +0.52%) 144A±		2.93			3-15-2021		1,000,000		999,590
Toyota Motor Credit Corporation (3 Month LIBOR +0.17%)±		2.57			9-18-2020		2,000,000		2,002,582
									15,503,852
Diversified Financial Services: 1.52%
WEA Finance LLC 144A		3.25			10-5-2020		5,000,000		5,059,322

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

12  |  Wells Fargo Conservative Income Fund

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Insurance: 10.49%
AIG Global Funding 144A		1.95	%		10-18-2019	$	1,750,000	$	1,749,486
AIG Global Funding (3 Month LIBOR +0.46%) 144A±		2.81			6-25-2021		2,950,000		2,958,676
Athene Global Funding 144A		2.75			4-20-2020		4,085,000		4,098,491
MassMutual Global Funding II 144A		1.95			9-22-2020		3,826,000		3,824,048
Metropolitan Life Global Funding I (3 Month LIBOR +0.40%) 144A±		2.84			6-12-2020		4,475,000		4,486,098
Pricoa Global Funding 144A		1.45			9-13-2019		2,497,000		2,496,529
Principal Life Global Funding II 144A		2.15			1-10-2020		4,900,000		4,899,590
Protective Life Global Funding (3 Month LIBOR +0.52%) 144A±		2.85			6-28-2021		5,000,000		5,022,867
The Allstate Corporation (3 Month LIBOR +0.43%)±		2.76			3-29-2021		825,000		825,905
USAA Capital Corporation 144A		2.00			6-1-2021		4,500,000		4,510,357
									34,872,047
Industrials: 1.81%
Road & Rail: 1.81%
TTX Company 144A		2.60			6-15-2020		6,000,000		6,001,412
Materials: 1.20%
Paper & Forest Products: 1.20%
Georgia Pacific LLC 144A		2.54			11-15-2019		4,000,000		4,000,759
Total Corporate Bonds and Notes (Cost $111,180,085)									111,479,921
Municipal Obligations: 1.53%
California: 0.30%
Miscellaneous Revenue: 0.30%
Fresno County CA Pension CAB Series A (National Insured) ¤		0.00			8-15-2020		1,025,000		1,004,695
Tennessee: 1.23%
Health Revenue: 1.23%
Nashville & Davidson Counties TN Vanderbilt University Medical Center Series D (1 Month LIBOR +2.50%)±		4.74			7-1-2046		4,000,000		4,104,160
Total Municipal Obligations (Cost $5,104,499)									5,108,855
Yankee Corporate Bonds and Notes: 18.85%
Energy: 1.74%
Oil, Gas & Consumable Fuels: 1.74%
BP Capital Markets plc (3 Month LIBOR +0.25%)±		2.38			11-24-2020		1,270,000		1,271,238
BP Capital Markets plc		2.52			1-15-2020		4,500,000		4,506,200
									5,777,438
Financials: 15.06%
Banks: 13.65%
Australia and New Zealand Banking Group 144A		4.88			1-12-2021		1,000,000		1,038,159
Australia and New Zealand Banking Group 144A		5.10			1-13-2020		4,000,000		4,040,993
Barclays Bank plc (3 Month LIBOR +0.46%)±		2.80			1-11-2021		4,000,000		3,993,537
BNZ International Funding of London (3 Month LIBOR +0.70%) 144A±		2.85			2-21-2020		1,750,000		1,755,014
Cooperatieve Rabobank UA (3 Month LIBOR +0.43%)±		2.70			4-26-2021		3,000,000		3,008,483
Credit Agricole 144A		2.75			6-10-2020		4,550,000		4,569,964

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

Wells Fargo Conservative Income Fund  |  13

Portfolio of investments—August 31, 2019

	Interest rate			Maturity date		Principal		Value
Banks (continued)
HSBC Holdings plc (3 Month LIBOR +0.65%)±		3.09	%		9-11-2021	$	2,000,000	$	2,001,804
Macquarie Bank Limited 144A		2.85			1-15-2021		4,000,000		4,034,959
Santander UK plc (3 Month LIBOR +0.62%)±		3.14			6-1-2021		4,000,000		4,001,552
Santander UK plc (3 Month LIBOR +0.66%)±		2.82			11-15-2021		1,270,000		1,273,159
Skandinaviska Enskilda Banken 144A		2.63			11-17-2020		3,000,000		3,015,390
Sumitomo Mitsui Banking Corporation (3 Month LIBOR +0.35%)±		2.65			1-17-2020		3,000,000		3,003,120
Svenska Handelsbanken AB (3 Month LIBOR +0.47%)±		2.60			5-24-2021		4,000,000		4,015,541
United Overseas Bank Limited (3 Month LIBOR +0.48%) 144A±		2.74			4-23-2021		1,800,000		1,803,738
Westpac Banking Corporation (3 Month LIBOR +0.28%)±		2.44			5-15-2020		2,325,000		2,328,373
Westpac Banking Corporation (3 Month LIBOR +1.00%)±		3.18			5-13-2021		1,525,000		1,542,627
									45,426,413
Diversified Financial Services: 0.30%
UBS AG (3 Month LIBOR +0.48%) 144A±		3.00			12-1-2020		1,000,000		1,002,380
Insurance: 1.11%
AIA Group Limited (3 Month LIBOR +0.52%) 144A±		2.91			9-20-2021		3,680,000		3,679,926
Industrials: 2.05%
Electrical Equipment: 2.05%
Siemens Financieringsmaatschappij NV 144A		2.15			5-27-2020		1,900,000		1,899,082
Tyco Electronics Group SA (3 Month LIBOR +0.45%)±		2.93			6-5-2020		4,900,000		4,904,900
									6,803,982
Total Yankee Corporate Bonds and Notes (Cost $62,520,438)									62,690,139
Short-Term Investments: 16.07%
Certificates of Deposit: 3.88%
Credit Suisse (3 Month LIBOR +0.12%)±		2.26			2-28-2020		3,000,000		3,000,574
Goldman Sachs Bank USA (1 Month LIBOR +0.30%)±		2.52			11-4-2019		1,900,000		1,900,848
Natixis (3 Month LIBOR +0.23%)±		2.57			1-10-2020		3,000,000		3,001,656
Societe Generale SA (1 Month LIBOR +0.20%)±		2.40			2-10-2020		5,000,000		5,000,347
									12,903,425
Commercial Paper: 12.13%
Anglesea Funding plc 144A(p)(z)		2.03			9-30-2019		5,500,000		5,489,779
Banco de Credito e Inversiones 144A(z)		2.25			9-25-2019		1,000,000		998,386
Charta LLC 144A(p)(z)		2.32			10-1-2019		1,250,000		1,247,680
Coca-Cola Company 144A(z)		2.67			10-24-2019		2,100,000		2,093,301
Concord Minutemen Capital Company 144A(p)(z)		1.71			9-13-2019		1,300,000		1,298,902
Concord Minutemen Capital Company 144A(p)(z)		2.09			10-2-2019		2,500,000		2,495,080
Grand China Air Limited (z)		1.40			9-6-2019		2,100,000		2,099,110
Grand China Air Limited (z)		2.16			9-13-2019		3,900,000		3,896,707
Great Bridge Capital Company LLC 144A(p)(z)		0.61			9-4-2019		6,000,000		5,998,167
Great Bridge Capital Company LLC 144A(p)(z)		2.12			10-18-2019		2,000,000		1,993,886
LMA Americas LLC 144A(p)(z)		1.93			10-2-2019		3,750,000		3,742,895
LMA Americas LLC 144A(p)(z)		2.03			10-7-2019		1,500,000		1,496,735
Metropolitan Life Short Term Funding LLC 144A(z)		2.05			10-2-2019		4,000,000		3,992,311
Ontario Teachers’ Finance Trust 144A(z)		2.44			10-18-2019		3,500,000		3,490,158
									40,333,097

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

14  |  Wells Fargo Conservative Income Fund

Portfolio of investments—August 31, 2019

	Yield			Shares		Value
Investment Companies: 0.06%
Wells Fargo Government Money Market Fund Select Class (l)(u)		2.04	%		220,913	$	220,913
Total Short-Term Investments (Cost $53,459,535)							53,457,435

Total investments in securities (Cost $330,846,440)	99.73	%		331,657,161
Other assets and liabilities, net	0.27			893,772
Total net assets	100.00	%	$	332,550,933

±± 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.

± 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.

(p) Asset-backed commercial paper

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

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

(u) The rate represents the7-day annualized yield at period end.

Abbreviations:

CAB Capital appreciation bond

FHLMC Federal Home Loan Mortgage Corporation

GNMA Government National Mortgage Association

LIBOR London Interbank Offered Rate

National National Public Finance Guarantee Corporation

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		96,943		206,637,029		206,513,059		220,913	$	0	$	0	$	33,562	$	220,913		0.06	%

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

Wells Fargo Conservative Income Fund  |  15

Statement of assets and liabilities—August 31, 2019

Assets
Investments in unaffiliated securities, at value (cost $330,625,527)	$	331,436,248
Investments in affiliated securities, at value (cost $220,913)		220,913
Cash		294
Receivable for interest		1,187,563
Prepaid expenses and other assets		23,139
Total assets		332,868,157
Liabilities
Dividends payable		86,361
Payable for Fund shares redeemed		102,478
Management fee payable		41,397
Administration fee payable		24,447
Trustees’ fees and expenses payable		3,927
Custodian and accounting fees payable		27,221
Professional fees payable		31,393
Total liabilities		317,224
Total net assets	$	332,550,933
Net assets consist of
Paid-in capital	$	333,511,744
Total distributable loss		(960,811	)
Total net assets	$	332,550,933
Computation of net asset value per share
Net assets – Institutional Class	$	332,550,933
Shares outstanding – Institutional Class1		33,240,629
Net asset value per share – Institutional Class		$10.00

¹  The Fund has an unlimited number of authorized shares.

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

16  |  Wells Fargo Conservative Income Fund

Statement of operations—year ended August 31, 2019

Investment income
Interest	$	11,996,990
Income from affiliated securities		33,562
Total investment income		12,030,552
Expenses
Management fee		1,069,985
Administration fee
Institutional Class		342,395
Custody and accounting fees		29,116
Professional fees		43,342
Registration fees		64,184
Shareholder report expenses		14,957
Trustees’ fees and expenses		21,592
Other fees and expenses		10,273
Total expenses		1,595,844
Less: Fee waivers and/or expense reimbursements
Fund-level		(440,605	)
Net expenses		1,155,239
Net investment income		10,875,313
Realized and unrealized gains (losses) on investments
Net realized losses on investments		(993,936	)
Net change in unrealized gains (losses) on investments		441,843
Net realized and unrealized gains (losses) on investments		(552,093	)
Net increase in net assets resulting from operations	$	10,323,220

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

Wells Fargo Conservative Income Fund  |  17

Statement of changes in net assets

	Year ended August 31, 2019						Year ended August 31, 20181
Operations
Net investment income				$	10,875,313					$	8,442,895
Net realized losses on investments					(993,936	)					(776,935	)
Net change in unrealized gains (losses) on investments					441,843						(313,636	)
Net increase in net assets resulting from operations					10,323,220						7,352,324
Distributions to shareholders from net investment income and net realized gains
Institutional Class					(10,880,158	)					(8,591,551	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Institutional Class		62,007,026			619,230,806			50,241,480			502,485,302
Reinvestment of distributions
Institutional Class		821,227			8,198,093			739,437			7,389,754
Payment for shares redeemed
Institutional Class		(69,621,267	)		(694,323,386	)		(52,808,731	)		(527,872,511	)
Net decrease in net assets resulting from capital share transactions					(66,894,487	)					(17,997,455	)
Total decrease in net assets					(67,451,425	)					(19,236,682	)
Net assets
Beginning of period					400,002,358						419,239,040
End of period				$	332,550,933					$	400,002,358

¹  Effective for all filings after November 4, 2018, the SEC prospectively eliminated the requirement to parenthetically disclose undistributed net investment income at the end of the period and permitted the aggregation of distributions, with the exception of tax basis returns of capital. Undistributed net investment income at August 31, 2018 was $4,184. The disaggregated distributions information for the year ended August 31, 2018 is included in Note 7,Distributions to Shareholders,in the notes to the financial statements.

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

18  |  Wells Fargo Conservative Income Fund

Financial highlights

(For a share outstanding throughout each period)

	Year ended August 31
INSTITUTIONAL CLASS	2019			2018			2017			2016			2015
Net asset value, beginning of period		$9.99			$10.01			$10.01			$10.00			$10.02
Net investment income		0.26			0.18			0.12			0.07			0.05
Net realized and unrealized gains (losses) on investments		0.01			(0.02	)		0.00	1		0.01			(0.02	)
Total from investment operations		0.27			0.16			0.12			0.08			0.03
Distributions to shareholders from
Net investment income		(0.26	)		(0.18	)		(0.12	)		(0.07	)		(0.05	)
Net realized gains		0.00			(0.00	)1		0.00			0.00			(0.00	)1
Total distributions to shareholders		(0.26	)		(0.18	)		(0.12	)		(0.07	)		(0.05	)
Net asset value, end of period		$10.00			$9.99			$10.01			$10.01			$10.00
Total return		2.71	%		1.65	%		1.20	%		0.79	%		0.28	%
Ratios to average net assets (annualized)
Gross expenses		0.37	%		0.37	%		0.36	%		0.36	%		0.38	%
Net expenses		0.27	%		0.27	%		0.27	%		0.27	%		0.27	%
Net investment income		2.54	%		1.79	%		1.17	%		0.72	%		0.48	%
Supplemental data
Portfolio turnover rate		171	%		197	%		197	%		269	%		80	%
Net assets, end of period (000s omitted)		$332,551			$400,002			$419,239			$547,829			$336,608

¹  Amount is less than $0.005.

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

Wells Fargo Conservative Income Fund  |  19

Notes to financial statements

1. ORGANIZATION

Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is anopen-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 (e.g. taking into account various factors, including yields, maturities, or credit ratings) or, if a reliable price is not available, the quoted bid price from an independent broker-dealer.

Investments in registeredopen-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.

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 onnon-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 fromnon-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 theex-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.

20  |  Wells Fargo Conservative Income Fund

Notes to financial statements

As of August 31, 2019, the aggregate cost of all investments for federal income tax purposes was $330,846,440 and the unrealized gains (losses) consisted of:

Gross unrealized gains	$	841,472
Gross unrealized losses		(30,751	)
Net unrealized gains	$	810,721

As of August 31, 2019, the Fund had a capital loss carryforward which consists of $1,770,871 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, 2019:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Agency securities	$	0	$	16,954,187	$	0	$	16,954,187
Asset-backed securities		0		81,966,624		0		81,966,624
Corporate bonds and notes		0		111,479,921		0		111,479,921
Municipal obligations		0		5,108,855		0		5,108,855
Yankee corporate bonds and notes		0		62,690,139		0		62,690,139
Short-term investments
Certificates of deposit		0		12,903,425		0		12,903,425
Commercial paper		0		40,333,097		0		40,333,097
Investment companies		220,913		0		0		220,913
Total assets	$	220,913	$	331,436,248	$	0	$	331,657,161

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

For the year ended August 31, 2019, the Fund did not have any transfers into/out of 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

Wells Fargo Conservative Income Fund  |  21

Notes to financial statements

operations. As compensation for its services under the investment management agreement, Funds Management is entitled to receive a management fee at the following annual rate based on the Fund’s average daily net assets:

Average daily net assets	Management fee
First $1 billion		0.250	%
Next $4 billion		0.225
Next $5 billion		0.190
Over $10 billion		0.180

For the year ended August 31, 2019, the management fee was equivalent to an annual rate of 0.25% of the Fund’s average daily net assets.

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

Administration fee

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

Waivers and/or expense reimbursements

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 the Institutional 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. Funds Management has committed through December 31, 2019 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.27% for Institutional Class shares. Prior to or after the commitment expiration date, 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 Rule17a-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 $0 and $12,740,858 in interfund purchases and sales, respectively, during the year ended August 31, 2019.

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, 2019 were $571,176,399 and $524,933,106, 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, 2019, there were no borrowings by the Fund under the agreement.

22  |  Wells Fargo Conservative Income Fund

Notes to financial statements

7. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended August 31, 2019 and August 31, 2018 were as follows:

	Year ended August 31
	2019		2018
Ordinary income	$	10,880,158	$	8,572,794
Long-term capital gain		0		18,757

As of August 31, 2019, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Unrealized gains	Capital loss carryforward
$85,700	$810,721	$(1,770,871)

Effective for all filings after November 4, 2018, the Securities and Exchange Commission eliminated the requirement to separately state the components of distributions to shareholders under U.S. generally accepted accounting principles. The amounts of distributions to shareholders for the year ended August 31, 2018 were as follows:

	Net investment income		Net realized gains
Institutional Class	$	8,443,388	$	148,163

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

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. ASU2018-13 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 has adopted the removal and modification of disclosures early, as permitted, and will adopt the additional new disclosures at the effective date.

In March 2017, FASB issued ASUNo. 2017-08,Premium Amortization on Purchased Callable Debt Securities. ASU2017-08 shortens the amortization period for certain callable debt securities held at a premium and requires the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount and discounts will continue to be accreted to the maturity date of the security. ASU2017-08 is effective for fiscal years beginning after December 15, 2018 and for interim periods within those fiscal years. During the current reporting period, management of the Fund adopted the change in accounting policy which did not have a material impact to the Fund’s financial statements.

Wells Fargo Conservative Income Fund  |  23

Report of independent registered public accounting firm

TO THE SHAREHOLDERS OF THE FUND AND BOARD OF TRUSTEES 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), one of the funds constituting Wells Fargo Funds Trust, including the portfolio of investments, as of August 31, 2019, 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, 2019, 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, 2019, by correspondence with the custodian and transfer agent. 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 28, 2019

24  |  Wells Fargo Conservative Income Fund

Other information (unaudited)

TAX INFORMATION

For the fiscal year ended August 31, 2019, $7,468,128 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 used to determine how to vote proxies relating to portfolio securities is available, upon request, by calling1-800-222-8222, visiting our website atwfam.com, or visiting the SEC website at sec.gov. Information regarding how the proxies related to portfolio securities were voted during the most recent12-month period ended June 30 is available on the website atwfam.comor by visiting the SEC website at sec.gov.

QUARTERLY PORTFOLIO HOLDINGS INFORMATION

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 or FormN-PORT, which is available by visiting the SEC website at sec.gov. Those forms may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling1-800-SEC-0330.

Wells Fargo Conservative Income Fund  |  25

Other information (unaudited)

BOARD OF TRUSTEES AND OFFICERS    

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 152 mutual funds comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and fourclosed-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. Audit Committee Chair and Investment Committee Chair of the Vincent Memorial Hospital Endowment(non-profit organization). 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; Audit Committee Chairman, since 2019	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, from 2009 to 2018	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

26  |  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
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
Olivia S. Mitchell (Born 1953)	Trustee, since 2006; Nominating and 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	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, anon-profit organization, since 2007. Member of the Board of Trustees of NorthStar Education Finance, Inc., anon-profit organization, since 2007.	N/A
James G. Polisson (Born 1959)	Trustee, since 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, anon-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

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

Wells Fargo Conservative Income Fund  |  27

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.
Michelle Rhee3 (Born 1966)	Chief Legal Officer, since 2019	Secretary of Wells Fargo Funds Management, LLC, Chief Legal Counsel of Wells Fargo Asset Management and Assistant General Counsel of Wells Fargo Bank, N.A. since 2018. Associate General Counsel and Managing Director of Bank of America Corporation from 2004 to 2018.
Catherine Kennedy4 (Born 1969)	Secretary, since 2019	Vice President of Wells Fargo Funds Management, LLC and Senior Counsel of the Wells Fargo Legal Department since 2010. Vice President and Senior Counsel of Evergreen Investment Management Company, LLC from 1998 to 2010.
Michael H. Whitaker (Born 1967)	Chief Compliance Officer, since 2016	Chief Compliance Officer of Wells Fargo Asset Management 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 65 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 87 funds and Assistant Treasurer of 65 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 calling1-800-222-8222 or by visiting the website atwfam.com.    

³  Michelle Rhee became Chief Legal Officer effective October 22, 2019.

⁴  Catherine Kennedy became Secretary effective October 22, 2019.

28  |  Wells Fargo Conservative Income Fund

Other information (unaudited)

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT ANDSUB-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 andsub-advisory agreements. In this regard, at anin-person meeting held on May21-22, 2019 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management andsub-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 investmentsub-advisory agreement (the“Sub-Advisory Agreement”) with Wells Capital Management Incorporated (the“Sub-Adviser”), an affiliate of Funds Management. The Management Agreement and theSub-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 theSub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at anin-person meeting in April 2019, 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 asub-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 theSub-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 2019. 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 theSub-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 wasall-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 aone-year term and determined that the compensation payable to Funds Management and theSub-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 afund-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 theSub-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 theSub-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 theSub-Adviser, and a description of Funds Management’s and theSub-Adviser’s business continuity planning programs and of their approaches to data privacy and cybersecurity. The Board received and reviewed information about Funds Management’s role as administrator of the Fund’s liquidity risk management program. The Board also considered the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for theday-to-day portfolio management of the Fund.

The Board evaluated the ability of Funds Management and theSub-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 theSub-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, 2018. The Board considered these results in comparison to the investment performance of funds in a universe that was determined by

Wells Fargo Conservative Income Fund  |  29

Other information (unaudited)

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 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 or higher than its benchmark index, the Bloomberg Barclays6-9 Month Treasury Bill 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 othernon-management fees, and Rule12b-1 andnon-Rule12b-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 fromyear-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratio of the Fund’s Institutional Class was lower than the median net operating expense ratio of its expense Group.

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

Investment management andsub-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 andsub-transfer agency costs (collectively, the “Management Rates”). The Board also reviewed and considered the contractual investmentsub-advisory fee rates that are payable by Funds Management to theSub-Adviser for investmentsub-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 Rate of the Fund’s Institutional Class was equal to the sum of the average rates for its 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 theSub-Adviser forsub-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 theSub-Adviser, and about Funds Management’son-going oversight services. Given the affiliation between Funds Management and theSub-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 theSub-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 proprietary mutual funds compared with those associated with managing assets of other types of clients, including third-partysub-advised fund clients andnon-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 theSub-Adviser under theSub-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”) from providing services to the fund family as a whole. The Board noted that theSub-Adviser’s profitability information with respect to providing services to the Fund and other funds in the family 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. Among other things, the Board noted that the levels of profitability reported on afund-by-fund basis varied widely, depending on factors such as the size, type and age 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.

30  |  Wells Fargo Conservative Income Fund

Other information (unaudited)

Economies of scale

The Board received and considered information about the potential for Funds Management to experience economies of scale in the provision of management services to the Fund, the difficulties of calculating economies of scale at an individual fund level, and the extent to which potential scale benefits are shared with shareholders. 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. The Board considered that in addition to management fee breakpoints, Funds Management shares potential economies of scale from its management business in a variety of ways, including through fee waiver and expense reimbursement arrangements, services that benefit shareholders, competitive management fee rates set at the outset without regard to breakpoints, and investments in the business intended to enhance services available to shareholders.

The Board concluded that Funds Management’s arrangements with respect to the Fund, 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 theSub-Adviser

The Board received and considered information regarding potential“fall-out” or ancillary benefits received by Funds Management and its affiliates, including theSub-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 theSub-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 andsub-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 theSub-Adviser, fees earned by Funds Management and theSub-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 theSub-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 aone-year term and determined that the compensation payable to Funds Management and theSub-Adviser under each of the Advisory Agreements was reasonable.

Wells Fargo Conservative Income Fund  |  31

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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:wfam.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, call1-800-222-8222 or visit the Fund’s website atwfam.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.

INVESTMENT PRODUCTS: NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

© 2019 Wells Fargo Funds Management, LLC. All rights reserved.

405802 10-19

A265/AR265 08-19

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 FormN-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 FormN-CSR. Mrs. Johnson is independent for purposes of Item 3 of FormN-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, 2019		Fiscal year ended August 31, 2018
Audit fees	$	426,800	$	421,385
Audit-related fees		—		—
Tax fees (1)		39,575		39,335
All other fees		—		—
	$	466,375	$	460,720

(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 topre-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 (wherepre-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 suchpre-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 FORCLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not applicable.

ITEM 8. PORTFOLIO MANAGERS OFCLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not applicable.

ITEM 9. PURCHASES OF EQUITY SECURITIES BYCLOSED-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 disclosure controls and procedures (as defined in Rule30a-3(c) under the Investment Company Act of 1940) provide reasonable assurances that material information relating to the registrant 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 registrant’s internal controls over financial reporting (as defined in Rule30a-3(d) under the Investment Company Act of 1940) that occurred during the most recent fiscal half-year 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. DISCLOSURES OF SECURITIES LENDING ACTIVITES FORCLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not applicable.

ITEM 13. EXHIBITS

(a)(1) Code of Ethics pursuant to Item 2 of FormN-CSR is filed and attached hereto as Exhibit COE.

(a)(2) Certification pursuant to Rule30a-2(a) under the Investment Company Act of 1940 (17 CFR270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.

(b) Certification pursuant to Rule30a-2(b) under the Investment Company Act of 1940 (17 CFR270.30a-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 28, 2019

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 28, 2019
By:
	/s/ Nancy Wiser
	Nancy Wiser
	Treasurer
Date: October 28, 2019