Wells Fargo Variable Trust NCSR Certified annual shareholder report (management investment company)

Wells Fargo Variable Trust N-CSRCertified annual shareholder report (management investment company)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-09255

Wells Fargo Variable Trust

(Exact name of registrant as specified in charter)

525 Market St., San Francisco, CA 94105
(Address of principal executive offices) (Zip code)

C. David Messman
Wells Fargo Funds Management, LLC
525 Market St., San Francisco, CA 94105
(Name and address of agent for service)

Registrant’s telephone number, including area code: 800-643-9691

Date of fiscal year end: December 31, 2010

Date of reporting period: December 31, 2010

ITEM 1. REPORT TO SHAREHOLDERS

WELLS FARGO ADVANTAGE VARIABLE TRUST FUNDS

§ Wells Fargo Advantage VT Core Equity Fund

Reduce clutter. Save trees.


Contents

Letter to Shareholders			2

Performance Highlights			6

Fund Expenses			10

Portfolio of Investments			11

Financial Statements
Statement of Assets and Liabilities			15
Statement of Operations			16
Statements of Changes in Net Assets			17
Financial Highlights			18

Notes to Financial Statements			20

Report of Independent Registered Public Accounting Firm			26

Other Information			27

List of Abbreviations			31

The views expressed are as of December 31, 2010, and are those of the Fund managers. Any reference to a specific security in this report is not a recommendation to purchase or sell any specific security or adopt any investment strategy. The views are subject to change at any time in response to changing circumstances in the market and are not intended to predict or guarantee the future performance of any individual security, market sector or the markets generally, or the Wells Fargo Advantage VT Core Equity Fund.

NOT FDIC INSURED § NO BANK GUARANTEE § MAY LOSE VALUE

WELLS FARGO

INVESTMENT HISTORY

1932		Keystone creates one of the first mutual fund families.

1971		Wells Fargo & Company introduces one of the first institutional index funds.

1978		Wells Fargo applies Markowitz and Sharpe’s research on Modern Portfolio Theory to introduce one of the industry’s first Tactical Asset Allocation (TAA) models in institutional separately managed accounts.

1984		Wells Fargo Stagecoach Funds launches its first asset allocation fund.

1989		The Tactical Asset Allocation (TAA) Model is first applied to Wells Fargo’s asset allocation mutual funds.

1994		Wells Fargo introduces the LifePath Funds, one of the first suites of target date funds (now the *Wells Fargo Advantage Dow Jones Target Date Funds*^SM).

1996		Evergreen Investments and Keystone Funds merge.

1997		Wells Fargo launches *Wells Fargo Advantage WealthBuilder Portfolios*^SM, a fund-of-funds suite of products that includes the use of quantitative models to shift assets among investment styles.

1999		Norwest Advantage Funds and Stagecoach Funds are reorganized into Wells Fargo Funds after the merger of Norwest and Wells Fargo.

2002		Evergreen Retail and Evergreen Institutional companies form the umbrella asset management company, Evergreen Investments.

2005		The integration of Strong Funds with Wells Fargo Funds creates *Wells Fargo Advantage Funds*, resulting in one of the top 20 mutual fund companies in the United States.

2006		*Wells Fargo Advantage Funds* relaunches the target date product line as *Wells Fargo Advantage Dow Jones Target Date Funds*.

2010		The mergers and reorganizations of Evergreen and Wells Fargo Advantage mutual funds are completed, unifying the families under the brand of *Wells Fargo Advantage Funds.*

Wells Fargo Advantage Funds^®

Wells Fargo Advantage Funds skillfully guides institutions, financial advisors, and individuals through the investment terrain to help them reach their financial objectives. Everything we do on behalf of investors is backed by our unique combination of qualifications.

Strength

Our organization is built on the standards of integrity and service established by our parent company—Wells Fargo & Company—more than 150 years ago. And, because we’re part of a highly diversified financial enterprise, we offer the depth of resources to help investors succeed.

Expertise

Our multi-boutique model offers investors access to the independent thinking of premier investment managers that have been chosen for their time-tested strategies. While each team specializes in a specific investment strategy, collectively they provide investors a wide choice of distinct investment styles. Our dedication to investment excellence doesn’t end with our expertise in manager selection—risk management, analysis, and rigorous ongoing review seek to ensure each manager’s investment process remains consistent.

Partnership

Our collaborative approach is built around understanding the needs and goals of our clients. By adhering to core principles of sound judgment and steady guidance, we support you through every stage of the investment decision process.

Carefully consider the investment objectives, risks, charges, and expenses before investing. For a current prospectus for Wells Fargo Advantage Funds containing this and other information, visit wellsfargo.com/advantagefunds. Read it carefully before investing.

Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Advantage Funds^®. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the Funds. The Funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA/SIPC, an affiliate of Wells Fargo & Company.

The “Dow Jones Target Date Indexes” are a product of Dow Jones Indexes, a licensed trademark of CME Group Index Services LLC (“CME”). “Dow Jones” and “Dow Jones Target Date Indexes” are service marks of Dow Jones Trademark Holdings, LLC, and have been licensed for use for certain purposes by CME and sublicensed for use by Global Index Advisors, Inc., and Wells Fargo Funds Management, LLC. The Dow Jones Target Date Indexes are based in part on the Barclays Capital Bond Indexes, which are published by Barclays Capital Inc. The Wells Fargo Advantage Dow Jones Target Date Funds, based on the Dow Jones Target Date Indexes, are not sponsored, endorsed, sold, or promoted by Dow Jones, CME or Barclays Capital or any of their respective affiliates, and neither Dow Jones, CME nor Barclays Capital nor any of their respective affiliates makes any representation regarding the advisability of investing in such product(s) and/or about the quality, accuracy, and/or completeness of the Dow Jones Target Date Indexes or the Barclays Capital Bond Indexes. IN NO EVENT SHALL DOW JONES, CME, BARCLAYS CAPITAL, OR ANY OF THEIR LICENSORS HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.

NOT FDIC INSURED § NO BANK GUARANTEE § MAY LOSE VALUE

Not part of the annual report.

Wells Fargo Advantage Funds offers more than 120 mutual funds across a wide range of asset classes, representing over $236 billion in assets under management, as of December 31, 2010.


Equity Funds

Asia Pacific Fund	Enterprise Fund^†	Opportunity Fund^†
C&B Large Cap Value Fund	Equity Value Fund	Precious Metals Fund
C&B Mid Cap Value Fund	Global Opportunities Fund	Premier Large Company Growth Fund
Capital Growth Fund	Growth Fund	Small Cap Growth Fund
Classic Value Fund	Growth Opportunities Fund	Small Cap Opportunities Fund
Common Stock Fund	Health Care Fund	Small Cap Value Fund
Core Equity Fund	Index Fund	Small Company Growth Fund
Disciplined Global Equity Fund	International Equity Fund	Small Company Value Fund
Disciplined U.S. Core Fund	International Value Fund	Small/Mid Cap Core Fund
Disciplined Value Fund	Intrinsic Small Cap Value Fund	Small/Mid Cap Value Fund
Discovery Fund^†	Intrinsic Value Fund	Social Sustainability Fund^†
Diversified Equity Fund	Intrinsic World Equity Fund	Special Mid Cap Value Fund
Diversified International Fund	Large Cap Core Fund	Special Small Cap Value Fund
Diversified Small Cap Fund	Large Cap Growth Fund	Specialized Technology Fund
Emerging Growth Fund	Large Company Value Fund	Strategic Large Cap Growth Fund
Emerging Markets Equity Fund	Mid Cap Growth Fund	Traditional Small Cap Growth Fund
Endeavor Select Fund^†	Omega Growth Fund	Utility and Telecommunications Fund


Bond Funds

Adjustable Rate Government Fund	Inflation-Protected Bond Fund	Short-Term Bond Fund
California Limited-Term Tax-Free Fund	Intermediate Tax/AMT-Free Fund	Short-Term High Yield Bond Fund
California Tax-Free Fund	International Bond Fund	Short-Term Municipal Bond Fund
Colorado Tax-Free Fund	Minnesota Tax-Free Fund	Strategic Municipal Bond Fund
Government Securities Fund	Municipal Bond Fund	Total Return Bond Fund
High Income Fund	North Carolina Tax-Free Fund	Ultra Short-Term Income Fund
High Yield Bond Fund	Pennsylvania Tax-Free Fund	Ultra Short-Term Municipal Income Fund
Income Plus Fund	Short Duration Government Bond Fund	Wisconsin Tax-Free Fund


Asset Allocation Funds

Asset Allocation Fund	WealthBuilder Equity Portfolio^†	Target 2020 Fund^†
Conservative Allocation Fund	WealthBuilder Growth Allocation Portfolio^†	Target 2025 Fund^†
Diversified Capital Builder Fund	WealthBuilder Growth Balanced Portfolio^†	Target 2030 Fund^†
Diversified Income Builder Fund	WealthBuilder Moderate Balanced Portfolio^†	Target 2035 Fund^†
Growth Balanced Fund	WealthBuilder Tactical Equity Portfolio^†	Target 2040 Fund^†
Index Asset Allocation Fund	Target Today Fund^†	Target 2045 Fund^†
Moderate Balanced Fund	Target 2010 Fund^†	Target 2050 Fund^†
WealthBuilder Conservative Allocation Portfolio^†	Target 2015 Fund^†


Money Market Funds

100% Treasury Money Market Fund	Minnesota Money Market Fund	New Jersey Municipal Money Market Fund
California Municipal Money Market Fund	Money Market Fund	New York Municipal Money Market Fund
Cash Investment Money Market Fund	Municipal Cash Management Money Market Fund	Pennsylvania Municipal Money Market Fund
Government Money Market Fund	Municipal Money Market Fund	Prime Investment Money Market Fund
Heritage Money Market Fund^†	National Tax-Free Money Market Fund	Treasury Plus Money Market Fund


Variable Trust Funds¹

VT Core Equity Fund	VT Intrinsic Value Fund	VT Small Cap Value Fund
VT Discovery Fund^†	VT Omega Growth Fund	VT Total Return Bond Fund
VT Index Asset Allocation Fund	VT Opportunity Fund^†
VT International Equity Fund	VT Small Cap Growth Fund

An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Wells Fargo Advantage Money Market Funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in a money market fund.


1.		The Variable Trust Funds are generally available only through insurance company variable contracts.

†		In this report, the Wells Fargo Advantage Discovery Fund^SM, Wells Fargo Advantage Endeavor Select Fund^SM, Wells Fargo Advantage Enterprise Fund^SM, Wells Fargo Advantage Opportunity Fund^SM, Wells Fargo Advantage Social Sustainability Fund^SM, Wells Fargo Advantage WealthBuilder Conservative Allocation Portfolio^SM, Wells Fargo Advantage WealthBuilder Equity Portfolio^SM, Wells Fargo Advantage WealthBuilder Growth Allocation Portfolio^SM, Wells Fargo Advantage WealthBuilder Growth Balanced Portfolio^SM, Wells Fargo Advantage WealthBuilder Moderate Balanced Portfolio^SM, Wells Fargo Advantage WealthBuilder Tactical Equity Portfolio^SM, Wells Fargo Advantage Dow Jones Target Today Fund^SM, Wells Fargo Advantage Dow Jones Target 2010 Fund^SM, Wells Fargo Advantage Dow Jones Target 2015 Fund^SM, Wells Fargo Advantage Dow Jones Target 2020 Fund^SM, Wells Fargo Advantage Dow Jones Target 2025 Fund^SM, Wells Fargo Advantage Dow Jones Target 2030 Fund^SM, Wells Fargo Advantage Dow Jones Target 2035 Fund^SM, Wells Fargo Advantage Dow Jones Target 2040 Fund^SM, Wells Fargo Advantage Dow Jones Target 2045 Fund^SM, Wells Fargo Advantage Dow Jones Target 2050 Fund^SM, Wells Fargo Advantage Heritage Money Market Fund^SM, Wells Fargo Advantage VT Discovery Fund^SM, and Wells Fargo Advantage VT Opportunity Fund^SMare referred to as the Discovery Fund, Endeavor Select Fund, Enterprise Fund, Opportunity Fund, Social Sustainability Fund, WealthBuilder Conservative Allocation Portfolio, WealthBuilder Equity Portfolio, WealthBuilder Growth Allocation Portfolio, WealthBuilder Growth Balanced Portfolio, WealthBuilder Moderate Balanced Portfolio, WealthBuilder Tactical Equity Portfolio, Target Today Fund, Target 2010 Fund, Target 2015 Fund, Target 2020 Fund, Target 2025 Fund, Target 2030 Fund, Target 2035 Fund, Target 2040 Fund, Target 2045 Fund, Target 2050 Fund, Heritage Money Market Fund, VT Discovery Fund, and VT Opportunity Fund, respectively.

Not part of the annual report.


2 Wells Fargo Advantage VT Core Equity Fund		Letter to Shareholders

Karla M. Rabusch,
President
Wells Fargo Advantage Funds

The equity markets delivered strong full-year returns against the backdrop of a strengthening economy.

Dear Valued Shareholder:

We are pleased to provide you with this annual report for the Wells Fargo Advantage VT Core Equity Fund for the 12 months that ended December 31, 2010. The equity markets delivered strong full-year returns against the backdrop of a strengthening economy. However, the year was not without its share of macroeconomic challenges and market volatility, once again highlighting the value of a sound, well-diversified investment strategy. As always, we believe that such a strategy can enable investors to balance risks and opportunities as they pursue long-term financial goals in a dynamic market environment.

The economic recovery stayed on track.

The U.S. economic recovery that began in the summer of 2009 gained momentum in 2010, particularly toward the end of the year. Gross domestic product (GDP) grew at an annualized rate of 3.2% in the fourth quarter of 2010—capping a streak of six consecutive quarters of positive GDP growth—and 2.9% for the full year. Although the path of recovery has been uneven at times and growth remains subpar compared with previous recoveries, the general consensus among economists is that the economy will likely avoid a double-dip recession. That said, persistent weakness in the labor and housing markets bears close watching in the months ahead.

Jobs and housing remained troublesome.

At the end of the year, the unemployment rate stood at 9.4%, down from 9.9% a year earlier, but still stubbornly high. Unfortunately, the drop may be attributable more to a decline in the labor force than a meaningful uptick in hiring. In fact, employers added just 1.1 million jobs for all of 2010, suggesting that the improving economy has yet to translate into widespread hiring. Meanwhile, the beleaguered housing market was an ongoing source of concern, despite some tentative late-year signs of stabilization.

Other economic data were more encouraging, reflecting greater confidence in the recovery on the part of both consumers and businesses. Retail sales came in strong at certain points during the year, including the critical holiday shopping season, and industrial production and new orders have picked up. Although still reluctant to hire, businesses have gradually increased spending in other areas, such as equipment and technology. Core inflation, which excludes volatile food and energy prices, remained benign.

The Fed continued to do its part.

With inflation subdued, the Federal Reserve (the Fed) held its target range for the federal funds rate—a proxy for short-term interest rates—steady at 0% to 0.25%. In its final statement of 2010, the Fed noted that economic expansion continues to be restrained by headwinds such as high unemployment, modest income growth, lower housing wealth, and tight credit. As a result, the Fed indicated that it intends to keep short-term rates at historically low levels for as long as needed to promote a more robust recovery.


Letter to Shareholders		Wells Fargo Advantage VT Core Equity Fund 3

The Fed also stated that it plans to proceed with other stimulus measures, including its second round of quantitative easing (QE2)—a plan to purchase $600 billion in long-term Treasury securities by mid-2011. The ‘preannouncement’ of QE2 in the third quarter of 2010 marked a turning point for the equity markets in that it ushered in a favorable shift in investor sentiment. By and large, investors interpreted the plan as further evidence of the Fed’s commitment to avoiding deflation and spurring economic growth.

2010 was another solid year for equities.

QE2 was certainly not the only catalyst for the equity markets during 2010. Along with more upbeat economic data, better-than-expected corporate earnings power played a role in driving stock prices higher. Throughout the year, quarterly earnings per share for the majority of companies in the S&P 500 Index consistently exceeded Wall Street estimates. As 2010 drew to a close, the midterm congressional elections and the extension of the Bush-era tax cuts provided additional tailwinds, helping the markets finish the year on a strong note.

It was the second straight year of double-digit total returns for the broad equity market indexes. The S&P 500 Index and the Dow Jones Industrial Average advanced 15.1% and 14.1%, respectively, while the tech-heavy NASDAQ Composite Index returned 18.2%. Investors were generally rewarded across the market-capitalization spectrum—with small- and mid-cap stocks outpacing large-cap stocks—as well as across most economic sectors. In terms of investment styles, growth stocks outperformed their value counterparts for the year.

To be sure, the gains were hard-earned, as the markets had to contend with numerous issues along the way, including the European sovereign debt crisis, China’s efforts to slow growth, and doubts about the sustainability of the domestic recovery. The second quarter in particular witnessed bouts of heightened market volatility, most notably the so-called “flash crash” in May. As the year progressed, however, volatility—as measured by the Chicago Board Options Exchange Volatility Index—abated amid reduced fears of a double-dip recession.

Investors should keep a long-term perspective.

In our view, the equity markets’ dramatic rebound over the past two years from a severe downturn underscores the importance of maintaining a disciplined, long-term investment strategy through changing market cycles. By staying focused on your long-term goals, you may be better positioned both to navigate falling markets and participate in rising markets.

To help you build a well-diversified strategy based on your personal objectives and risk tolerance, Wells Fargo Advantage Funds^® offers more than 120 mutual funds and other investments covering 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.

Along with more upbeat economic data, better-than-expected corporate earnings power played a role in driving stock prices higher.


4 Wells Fargo Advantage VT Core Equity Fund		Letter to Shareholders

Thank you for choosing Wells Fargo Advantage Funds. We appreciate your continued confidence in us and are committed to helping you meet your financial needs. If you have any questions about your investments, please contact your investment professional, call us at 1-800-222-8222, or visit wellsfargo.com/advantagefunds.

Sincerely,

Karla M. Rabusch
President
Wells Fargo Advantage Funds

This page is intentionally left blank.


6 Wells Fargo Advantage VT Core Equity Fund		Performance Highlights (Unaudited)

Wells Fargo Advantage VT Core Equity Fund

INVESTMENT OBJECTIVE

The Fund seeks long-term capital appreciation.

INVESTMENT ADVISER

Wells Fargo Funds Management, LLC

SUB-ADVISER

Wells Capital Management Incorporated

PORTFOLIO MANAGER

Ann M. Miletti

FUND INCEPTION

March 1, 1996

PERFORMANCE SUMMARY

12 MONTH TOTAL RETURN AS OF DECEMBER 31, 2010


Class 2	16.18	%
S&P 500^® Index¹	15.06	%

Figures quoted represent past performance, which is no guarantee of future results and do not reflect the deduction of 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. Current month-end performance is available by calling 1-866-765-0778. Performance figures of the Fund do not reflect fees charged pursuant to the terms of variable life insurance policies and variable annuity contracts.

The adviser has committed, through July 18, 2013, to waive fees and/or reimburse expenses to maintain the contractual expense cap at 1.00% for the Class 2 shares, excluding acquired fund fees and certain other expenses. Without these reductions, the Fund’s returns would have been lower. The Fund’s net expense ratio is 1.00% for the Class 2 shares. The Fund’s gross expense ratio is 1.02% for the Class 2 shares.


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 chart compares the performance of the Wells Fargo Advantage VT Core Equity Fund Class 2 for the most recent ten years of the Fund with the S&P 500^® Index. The chart assumes a hypothetical $10,000 investment and reflects all operating expenses of the Fund.


Performance Highlights (Unaudited)		Wells Fargo Advantage VT Core Equity Fund 7

Wells Fargo Advantage VT Core Equity Fund (continued)

MANAGER’S DISCUSSION

Fund Highlights Fiscal Year 2010

§		The Fund outperformed its benchmark, the S&P 500 Index, for the 12-month period that ended December 31, 2010.

§		Stock selection within the consumer discretionary and information technology sectors more than offset a drag on results within the financials sector.

§		Leading contributors to the Fund’s performance were Ancestry.com, CBS Corporation, Amazon.com, and Burger King Holdings. Detractors from performance included Bank of America Corporation and Moody’s Corporation, as well as a lack of exposure to Apple Incorporated.

§		On December 27, 2010, the Wells Capital Management Core Equity team, led by Ann M. Miletti, assumed portfolio management responsibilities for the Fund.

Our emphasis on companies with solid fundamentals and sustainable competitive advantages was favored by the market.

The Fund outperformed its benchmark during three of the last four quarters. Excess returns were particularly notable during March and September 2010, as our emphasis on companies with solid fundamentals and sustainable competitive advantages was favored by the market. At the sector level, outperformance has been concentrated within the consumer discretionary and information technology sectors.

An overweight to and stock selection within consumer discretionary aided results. For example, Amazon.com benefited from increased e-commerce penetration. Online sales still account for only 6% to 8% of total retail sales but are growing at a nearly 15% annual rate. Amazon.com has capitalized on this trend by increasing its market share at the expense of traditional brick-and-mortar retailers, which typically have lower inventory turnover and higher cost structures.

Information technology holdings also aided results through investments in companies such as FactSet Research Systems and Ancestry.com. In our opinion, Ancestry.com has proven that it is a sticky, sustainable business. It has been accelerating its subscriber growth by about 30%, which is primarily due to increased awareness created by its advertising campaign in TV media. Also, the company has recently retired debt, further strengthening its balance sheet. FactSet offers a one-stop shop for an investor who wants to perform in-depth market and company research. Its share price benefited from the company’s extraordinarily high retention rate of 95%, its better-than-expected earnings during each of the last four quarters, and its ability to maintain a strong growth rate in a weak market.

TEN LARGEST EQUITY HOLDINGS³
(AS OF DECEMBER 31, 2010)


QUALCOMM Incorporated	4.29	%
Moody’s Corporation	3.34	%
CBS Corporation Class B	3.33	%
Bank of America Corporation	2.85	%
Merck & Company Incorporated	2.82	%
Home Depot Incorporated	2.72	%
Pfizer Incorporated	2.64	%
JPMorgan Chase & Company	2.52	%
Amazon.com Incorporated	2.50	%
Exxon Mobil Corporation	2.35	%


3.		The ten largest equity holdings are calculated based on the value of the securities divided by total investments of the Fund. Holdings are subject to change and may have changed since the date specified.


8 Wells Fargo Advantage VT Core Equity Fund		Performance Highlights (Unaudited)

Wells Fargo Advantage VT Core Equity Fund (continued)

A longer-term focus on company fundamentals held back additional gains, particularly around mid-year.

Despite the Fund’s outperformance over the past 12 months, the trailing returns of the second quarter resulted from the team’s unwillingness to follow negative, near-term market sentiment when its longer-term investment thesis had not changed. An example of this phenomenon during the year was Bank of America, which was a detractor from performance in the portfolio. The market appeared to discount the stock to extremely cheap levels, believing that it had capital issues and ill-timed acquisitions over the past couple of years. Uncertainty regarding financial reform was an additional headwind for the stock. In contrast to the broader market, we recognized long-term value in the firm’s national branch footprint and its strong Merrill Lynch global franchise.

As broad economic conditions improve, companies that have positioned themselves to take advantage of secular trends and tailwinds are likely to grow profits.

We feel better about the market outlook following the November elections and expect the political landscape to be less anti-business going into 2011. However, we believe that the U.S. will experience slightly slower growth than normal in the coming year because of high unemployment and other significant structural problems. In an effort to avoid a deep recession, policymakers and legislators have driven the deficit to $1.3 trillion and have applied quantitative easing that could potentially spur inflation. Eventually, the country will be challenged with addressing this deficit.

In the meantime, as broad economic conditions improve, companies that have positioned themselves to take advantage of secular trends are likely to grow profits. We expect to see those companies that have internal drivers—such as new management, new products, and new sources of demand—generate positive excess returns.

On a stock-by-stock basis, there are many attractively valued companies that offer sustainable competitive advantages in a slow-growth environment. Our investment approach is designed to fundamentally value a business, taking into consideration several assessments, including its competitive positioning and growth catalysts. Regardless of the environment in 2011 and beyond, we believe that our investment process allows us to exploit “market emotion” over short-term periods in order to capture relative value from attractive opportunities.


4.		Sector distribution is subject to change and is calculated based on the total common stock investments of the Fund.


Performance Highlights (Unaudited)		Wells Fargo Advantage VT Core Equity Fund 9

Wells Fargo Advantage VT Core Equity Fund (continued)

AVERAGE ANNUAL TOTAL RETURN (%) (AS OF DECEMBER 31, 2010)⁵


	Inception										Expense Ratios⁶
	Date		6 Months*		1 Year		5 Year		10 Year		Gross			Net⁷

Class 1		3/1/1996		27.65		16.46		5.36		4.10		0.77	%		0.75	%
Class 2		7/31/2002		27.54		16.18		5.10		3.89		1.02	%		1.00	%
S&P 500^® Index¹				23.27		15.06		2.29		1.41


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

Stock fund values fluctuate in response to the activities of individual companies and general market and economic conditions. 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). This Fund is exposed to foreign investment risk. Consult the Fund’s prospectus for additional information on these and other risks.

Please refer to the prospectus provided by your participating insurance company for detailed information describing the separate accounts for information regarding surrender charges, mortality and expense risk fees and other charges that may be assessed by the participating insurance companies.


5.		Performance shown for Class 2 shares prior to its inception reflects the performance of Class 1 shares, adjusted to reflect the higher expenses applicable to Class 2 shares. Historical performance shown for all classes of the Fund prior to July 19, 2010 is based on the performance of the fund’s predecessor, Evergreen VA Fundamental Large Cap Fund.

6.		Reflects the expense ratio as stated in the July 19, 2010 prospectuses.

7.		The investment adviser has contractually committed through July 18, 2013 to waive fees and/or reimburse expenses to maintain the Fund’s contractual expense ratio for Class 1 shares at 0.75%, and for Class 2 shares at 1.00%, excluding acquired fund fees and certain other expenses. Without these reductions, the Fund’s returns would have been lower.


10 Wells Fargo Advantage VT Core Equity Fund		Fund Expenses (Unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, redemption fees (if any) and exchange fees (if any); and (2) ongoing costs, including management fees; distribution (12b-1) and/or shareholder service 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 July 1, 2010 to December 31, 2010.

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), redemption fees, exchange fees or separate account charges assessed by participating insurance companies. 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		Ending		Expenses
	Account Value		Account Value		Paid During		Net Annual
	07-01-2010		12-31-2010		the Period¹		Expense Ratio

Class 1
Actual	$	1,000.00	$	1,276.47	$	4.41		0.76	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.61	$	3.91		0.76	%
Class 2
Actual	$	1,000.00	$	1,275.41	$	5.80		1.00	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.38	$	5.15		1.00	%


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


Portfolio of Investments—December 31, 2010		Wells Fargo Advantage VT Core Equity Fund 11


Shares		Security Name	Value
Common Stocks: 95.78%

Consumer Discretionary: 17.60%

Hotels, Restaurants & Leisure: 0.99%
	53,782	International Speedway Corporation Class A	$	1,407,475


Internet & Catalog Retail: 5.26%
	23,105	Amazon.com Incorporated†		4,158,900
	58,383	Blue Nile Incorporated†«		3,331,334

				7,490,234


Media: 5.75%
	290,914	CBS Corporation Class B		5,541,912
	57,677	Omnicom Group Incorporated«		2,641,607

				8,183,519


Specialty Retail: 4.21%
	129,087	Home Depot Incorporated«		4,525,790
	58,865	Lowe’s Companies Incorporated		1,476,334

				6,002,124


Textiles, Apparel & Luxury Goods: 1.39%
	80,263	Timberland Company†		1,973,667


Consumer Staples: 6.49%

Beverages: 2.28%
	106,028	Diageo plc		1,958,902
	19,723	PepsiCo Incorporated		1,288,504

				3,247,406


Food Products: 0.76%
	23,339	McCormick & Company Incorporated«		1,085,964


Household Products: 2.23%
	29,711	Clorox Company		1,880,112
	20,092	Procter & Gamble Company		1,292,518

				3,172,630


Tobacco: 1.22%
	29,584	Philip Morris International		1,731,552


Energy: 13.28%

Energy Equipment & Services: 2.47%
	42,056	Schlumberger Limited		3,511,676


Oil, Gas & Consumable Fuels: 10.81%
	26,033	Apache Corporation		3,103,915
	40,548	Chevron Corporation		3,700,005
	53,035	Exxon Mobil Corporation		3,877,919
	26,539	Occidental Petroleum Corporation†		2,603,476
	44,076	Ultra Petroleum Corporation†«		2,105,511

				15,390,826


12 Wells Fargo Advantage VT Core Equity Fund		Portfolio of Investments—December 31, 2010


Shares		Security Name	Value
Financials: 19.65%

Capital Markets: 6.04%
	18,468	Goldman Sachs Group Incorporated	$	3,105,579
	79,503	State Street Corporation		3,684,169
	28,068	T. Rowe Price Group Incorporated«		1,811,509

				8,601,257


Consumer Finance: 1.38%
	45,848	American Express Company		1,967,796


Diversified Financial Services: 10.67%
	87,285	Apollo Management LP†(i)††		698,280
	355,539	Bank of America Corporation		4,742,890
	98,731	JPMorgan Chase & Company		4,188,169
	209,292	Moody’s Corporation		5,554,610

				15,183,949


Insurance: 1.56%
	37,722	Prudential Financial Incorporated		2,214,659


Health Care: 13.11%

Biotechnology: 2.70%
	70,031	Amgen Incorporated†		3,844,702


Health Care Equipment & Supplies: 1.22%
	46,760	Medtronic Incorporated		1,734,328


Pharmaceuticals: 9.19%
	21,692	Johnson & Johnson Company		1,341,650
	129,901	Merck & Company Incorporated		4,681,632
	45,346	Novartis AG ADR«		2,673,147
	250,808	Pfizer Incorporated		4,391,648

				13,088,077


Industrials: 9.15%

Aerospace & Defense: 2.02%
	23,074	Boeing Company		1,505,809
	17,381	United Technologies Corporation		1,368,232

				2,874,041


Air Freight & Logistics: 1.28%
	25,141	United Parcel Service Incorporated Class B«		1,824,734


Commercial Services & Supplies: 3.97%
	73,688	Avery Dennison Corporation«		3,119,950
	82,592	Robert Half International Incorporated«		2,527,315

				5,647,265


Industrial Conglomerates: 1.88%
	146,588	General Electric Company		2,681,095


Portfolio of Investments—December 31, 2010		Wells Fargo Advantage VT Core Equity Fund 13


Shares		Security Name	Value
Information Technology: 14.71%

Communications Equipment: 5.96%
	67,007	Cisco Systems Incorporated†«	$	1,355,552
	143,973	QUALCOMM Incorporated		7,125,224

				8,480,776


Internet Software & Services: 3.75%
	68,575	Ancestry.com Incorporated†		1,942,044
	5,716	Google Incorporated Class A†		3,395,133

				5,337,177


IT Services: 0.73%
	14,825	Visa Incorporated Class A		1,043,384


Software: 4.27%
	11,104	FactSet Research Systems Incorporated«		1,041,111
	9,500	Nintendo Company Limited		2,788,336
	71,620	Oracle Corporation		2,241,701

				6,071,148


Materials: 1.79%

Chemicals: 1.79%
	28,011	Air Products & Chemicals Incorporated		2,547,600


Total Common Stocks (Cost $107,632,666)				136,339,061


Principal			Interest Rate			Maturity Date
Short-Term Investments: 20.98%

Corporate Bonds and Notes: 0.02%
$	24,876	Gryphon Funding Limited(v)(a)(i)		0.00	%		08/05/2011	10,104
	32,721	VFNC Corporation(v)±††(a)(i)		0.26			09/29/2011	18,324

								28,428


Shares			Yield
Investment Companies: 20.96%
	4,198,369	Wells Fargo Advantage Cash Investment Money Market Fund(l)(u)		0.14				4,198,369
	25,635,656	Wells Fargo Securities Lending Cash Investments, LLC(v)(l)(u)		0.27				25,635,656

								29,834,025


Total Short-Term Investments (Cost $29,852,021)								29,862,453


Total Investments in Securities (Cost $137,484,687)*	116.76	%		166,201,514
Other Assets and Liabilities, Net	(16.76	)		(23,850,867	)

Total Net Assets	100.00	%	$	142,350,647


14 Wells Fargo Advantage VT Core Equity Fund		Portfolio of Investments—December 31, 2010


(v)		Security represents investment of cash collateral received from securities on loan.

†		Non-income earning securities.

(l)		Investment in an affiliate.

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

±		Variable rate investments.

††		Securities that may be resold to “qualified institutional buyers” under Rule 144A or securities offered pursuant to Section 4(2) of the Securities Act of 1933, as amended.

(a)		Security is fair valued by the Management Valuation Team, and in certain instances by the Board of Trustees, in accordance with procedures approved by the Board of Trustees.

(i)		Illiquid security for which the designation as illiquid is unaudited.

(u)		Rate shown is the 7-day annualized yield at period end.

*		Cost for federal income tax purposes is $137,935,641 and net unrealized appreciation (depreciation) consists of:


Gross unrealized appreciation	$	33,362,958
Gross unrealized depreciation		(5,097,085	)

Net unrealized appreciation	$	28,265,873

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


Statement of Assets and Liabilities—December 31, 2010		Wells Fargo Advantage VT Core Equity Fund 15


Assets
Investments
In unaffiliated securities (including securities on loan), at value	$	136,367,489
In affiliated securities, at value		29,834,025

Total investments, at value (see cost below)		166,201,514
Receivable for investments sold		1,913,849
Receivable for Fund shares sold		912
Receivable for dividends		173,040
Receivable for securities lending income		5,249
Prepaid expenses and other assets		1,770

Total assets		168,296,334


Liabilities
Payable for Fund shares redeemed		134,048
Payable upon receipt of securities loaned		25,653,651
Investment advisory fee payable		70,849
Distribution fees payable		13,775
Due to other related parties		17,074
Accrued expenses and other liabilities		56,290

Total liabilities		25,945,687

Total net assets	$	142,350,647


NET ASSETS CONSIST OF
Paid-in capital	$	112,007,186
Undistributed net investment income		487,722
Accumulated net realized gains on investments		1,138,912
Net unrealized gains on investments		28,716,827

Total net assets	$	142,350,647


COMPUTATION OF NET ASSET VALUE PER SHARE¹
Net assets — Class 1	$	54,604,794
Shares outstanding — Class 1		2,754,835
Net asset value per share — Class 1	$	19.82
Net assets — Class 2	$	87,745,853
Shares outstanding — Class 2		4,448,498
Net asset value per share — Class 2	$	19.72


Total investments, at cost	$	137,484,687

Securities on loan, at value	$	24,994,640


1.		The Fund has unlimited number of authorized shares.

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


16 Wells Fargo Advantage VT Core Equity Fund¹		Statement of Operations—For the Year Ended December 31, 2010


Investment income
Dividends*	$	2,256,076
Income from affiliated securities		14,878
Securities lending income, net		23,056

Total investment income		2,294,010


Expenses
Investment advisory fee		759,232
Administration fees
Fund level		98,401
Class 1		18,832
Class 2		30,283
Distribution fees
Class 2		193,518
Custody and accounting fees		23,211
Professional fees		33,160
Shareholder report expenses		31,999
Trustees’ fees and expenses		8,610
Transfer agent fees		221
Other fees and expenses		8,925

Total expenses		1,206,392
Less: Fee waivers and/or expense reimbursements		(9,325	)

Net expenses		1,197,067

Net investment income		1,096,943


NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS

Net realized gains (losses) on:
Unaffiliated securities		9,499,485
Affiliated securities		(46,267	)

Net realized gains on investments		9,453,218

Net change in unrealized gains (losses) on:
Unaffiliated securities		10,227,263
Affiliated securities		34,209

Net change in unrealized gains (losses) on investments		10,261,472

Net realized and unrealized gains on investments		19,714,690

Net increase in net assets resulting from operations	$	20,811,633


* Net of foreign withholding taxes of	$	25,054


1.		After the close of business on July 16, 2010, the Fund acquired the net assets of Evergreen VA Fundamental Large Cap Fund and Wells Fargo VT Large Company Core Fund. Evergreen VA Fundamental Large Cap Fund became the accounting and performance survivor in the transaction. The information for the period prior to July 19, 2010 is that of Evergreen VA Fundamental Large Cap Fund.

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


Statements of Changes in Net Assets		Wells Fargo Advantage VT Core Equity Fund 17


	Year Ended			Year Ended
	December 31, 2010¹			December 31, 2009¹

Operations
Net investment income	$	1,096,943		$	1,150,133
Net realized gains on investments		9,453,218			2,552,219
Net change in unrealized gains (losses) on investments		10,261,472			28,577,586

Net increase in net assets resulting from operations		20,811,633			32,279,938


Distributions to shareholders from
Net investment income
Class 1		(293,687	)		(585,714	)
Class 2		(318,046	)		(622,741	)

Total distributions to shareholders		(611,733	)		(1,208,455	)


	Shares						Shares
Capital share transactions
Proceeds from shares sold
Class 1		230,873			3,961,049			291,872			4,135,369
Class 2		512,488			8,959,500			1,079,151			15,738,661

					12,920,549						19,874,030

Reinvestment of distributions
Class 1		17,735			293,687			34,792			585,714
Class 2		19,276			318,046			37,123			622,741

					611,733						1,208,455

Payment for shares redeemed
Class 1		(684,360	)		(11,906,405	)		(772,069	)		(10,700,945	)
Class 2		(871,529	)		(15,163,263	)		(313,864	)		(4,390,489	)

					(27,069,668	)					(15,091,434	)

Net asset value of shares issued in acquisition
Class 2		562,629			8,994,391			0			0

Net increase (decrease) in net assets resulting from capital share transactions					(4,542,995	)					5,991,051

Total increase in net assets					15,656,905						37,062,534
Net assets
Beginning of period					126,693,742						89,631,208

End of period				$	142,350,647					$	126,693,742

Undistributed (overdistributed) net investment income				$	487,722					$	(11,250	)


1.		After the close of business on July 16, 2010, the Fund acquired the net assets of Evergreen VA Fundamental Large Cap Fund and Wells Fargo VT Large Company Core Fund. Evergreen VA Fundamental Large Cap Fund became the accounting and performance survivor in the transaction. The information for the periods prior to July 19, 2010 are those of Evergreen VA Fundamental Large Cap Fund.

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


18 Wells Fargo Advantage VT Core Equity Fund¹		Financial Highlights


	Beginning				Net Realized			Distributions
	Net Asset		Net		and Unrealized			from Net			Distributions
	Value Per		Investment		Gains (Losses)			Investment			from Net
	Share		Income		on Investments			Income			Realized Gains

Class 1
January 1, 2010 to December 31, 2010	$	17.12		0.20		2.60			(0.10	)		0.00
January 1, 2009 to December 31, 2009	$	12.72		0.20		4.38			(0.18	)		0.00
January 1, 2008 to December 31, 2008	$	19.33		0.29		(6.64	)		(0.26	)		0.00
January 1, 2007 to December 31, 2007	$	19.60		0.25		1.37			(0.22	)		(1.67	)
January 1, 2006 to December 31, 2006	$	17.89		0.25		2.02			(0.24	)		(0.32	)

Class 2
January 1, 2010 to December 31, 2010	$	17.06		0.14		2.60			(0.08	)		0.00
January 1, 2009 to December 31, 2009	$	12.68		0.15		4.38			(0.15	)		0.00
January 1, 2008 to December 31, 2008	$	19.25		0.20		(6.56	)		(0.21	)		0.00
January 1, 2007 to December 31, 2007	$	19.53		0.16		1.40			(0.17	)		(1.67	)
January 1, 2006 to December 31, 2006	$	17.83		0.18		2.03			(0.19	)		(0.32	)


1.		After the close of business on July 16, 2010, the Fund acquired the net assets of Evergreen VA Fundamental Large Cap Fund and Wells Fargo Advantage VT Large Company Core Fund. Evergreen VA Fundamental Large Cap Fund became the accounting and performance survivor in the transaction. The information for the periods prior to July 19, 2010 are of those of Evergreen VA Fundamental Large Cap Fund.

2.		Total return calculations would have been lower had certain expenses not been waived or reimbursed during the periods shown.

3.		Calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.

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


Financial Highlights		Wells Fargo Advantage VT Core Equity Fund 19


Ending
Net Asset	Ratio to Average Net Assets												Portfolio			Net Assets at
Value Per	Net Investment			Gross			Net			Total			Turnover			End of Period
Share	Income			Expenses			Expenses			Return²			Rate³			(000’s omitted)


$19.82		1.00	%		0.79	%		0.78	%		16.46	%		28	%	$	54,605
$17.12		1.27	%		0.85	%		0.85	%		36.06	%		35	%	$	54,624
$12.72		1.45	%		0.79	%		0.79	%		(32.85	)%		25	%	$	46,238
$19.33		1.09	%		0.75	%		0.75	%		8.29	%		21	%	$	90,276
$19.60		1.19	%		0.74	%		0.74	%		12.67	%		21	%	$	112,413


$19.72		0.75	%		1.03	%		1.03	%		16.18	%		28	%	$	87,746
$17.06		0.99	%		1.10	%		1.10	%		35.75	%		35	%	$	72,070
$12.68		1.20	%		1.05	%		1.05	%		(33.01	)%		25	%	$	43,393
$19.25		0.83	%		1.00	%		1.00	%		8.01	%		21	%	$	66,201
$19.53		0.94	%		0.99	%		0.99	%		12.39	%		21	%	$	65,913


20 Wells Fargo Advantage VT Core Equity Fund		Notes to Financial Statements

1. ORGANIZATION

After the close of business on July 16, 2010, the net assets of Evergreen VA Fundamental Large Cap Fund and Wells Fargo Advantage VT Large Company Core Fund were acquired by the Fund, which was created to receive the assets of Evergreen VA Fundamental Large Cap Fund and Wells Fago Advantage VT Large Company Core Fund, in an exchange for shares of the Fund. Evergreen VA Fundamental Large Cap Fund became the accounting and performance survivor in the reorganizations and as a result the accounting and performance history of Evergreen VA Fundamental Large Cap Fund has been carried forward in the financial statements contained herein.

2. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management has considered the circumstances under which the Fund should recognize or make disclosures regarding events or transactions occurring subsequent to the balance sheet date through the date the financial statements are issued. Adjustments or additional disclosures, if any, have been included in these financial statements.

Securities valuation

Investments in securities are valued each business day as of the close of regular trading on the New York Stock Exchange, which is usually 4:00 p.m. (Eastern Time). Securities which are traded on a national or foreign securities exchange are valued at the last reported sales price, except that securities listed on The Nasdaq Stock Market, Inc. (“Nasdaq”) are valued at the Nasdaq Official Closing Price (“NOCP”), and if no NOCP is available, then at the last reported sales price. If no sales price is shown on the Nasdaq, the bid price will be used. In the absence of any sale of securities listed on the Nasdaq, and in the case of other securities, including U.S. Government obligations, but excluding debt securities maturing in 60 days or less, the price will be deemed “stale” and the valuations will be determined in accordance with the Fund’s Fair Valuation Procedures.

Securities denominated in foreign currencies are translated into U.S. dollars using the closing rates of exchange in effect on the day of valuation.

Many securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange and therefore may not fully reflect trading or events that occur after the close of the principal exchange in which the foreign investments are traded but before the close of the New York Stock Exchange. If such trading or events are expected to materially affect the value of the investments, then those investments are fair valued following procedures approved by the Board of Trustees. These procedures take into account multiple factors including movements in U.S. securities markets after foreign exchanges close. Depending on market activity, such fair valuations may be frequent. Such fair value pricing may result in NAVs that are higher or lower than NAVs based on the closing price or latest quoted bid price.

Debt securities of sufficient credit quality with original maturities of 60 days or less and any collateral received from securities lending invested in securities generally are valued at amortized cost which approximates fair value. The amortized cost method involves valuing a security at its cost, plus accretion of discount or minus amortization of premium over the period until maturity.

Investments in open-end mutual funds and non-registered investment companies are generally valued at net asset value.

Certain investments which are not valued using any of the methods discussed above, are valued at their fair value, as determined by procedures established in good faith and approved by the Board of Trustees.

The valuation techniques used by the Fund to measure fair value are consistent with the market approach, income approach and/or cost approach, where applicable, for each security type.


Notes to Financial Statements		Wells Fargo Advantage VT Core Equity Fund 21

Foreign currency translation

The accounting records of the Fund are maintained in U.S. dollars. Assets, including investment securities, and liabilities denominated in foreign currency are translated into U.S. dollars at the prevailing rates of exchange at the date of valuation. Purchases and sales of securities, and income and expenses are translated at the prevailing rate of exchange on the respective dates of such transactions. Reported 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 in changes in exchange rates.

The changes in net assets arising from changes in exchange rates and the changes in net assets resulting from changes in market prices of securities are not separately presented. Such changes are recorded with net realized and unrealized gains or losses from investments. Gains and losses from certain foreign currency transactions are treated as ordinary income for U.S. federal income tax purposes.

Security loans

The Fund may lend its securities from time to time in order to earn additional income in the form of fees or interest on securities received as collateral or the investment of any cash received as collateral. The Fund continues to receive interest or dividends on the securities loaned. The Fund receives collateral in the form of cash or securities with a value at least equal to the value of the securities on loan. The value of the loaned securities is determined at the close of each business day and any additional required collateral is delivered to the Fund on the next business day. In the event of default or bankruptcy by the borrower, the Fund could experience delays and costs in recovering the loaned securities or in gaining access to the collateral. In addition, the investment of any cash collateral received may lose all or part of its value. The Fund has the right under the lending agreement to recover the securities from the borrower on demand.

The Fund lends its securities through an unaffiliated securities lending agent. Cash collateral received in connection with its securities lending transactions is invested in Wells Fargo Securities Lending Cash Investments, LLC (the “Cash Collateral Fund”). The Cash Collateral Fund is exempt from registration under Section 3(c)(7) of the 1940 Act and is managed by Wells Fargo Funds Management LLC (“Funds Management”) and is sub-advised by Wells Capital Management Incorporated (“Wells Capital Management”). Funds Management receives an investment advisory fee starting at 0.05% and declining to 0.01% as the average daily net assets of the Cash Collateral Fund increase. All of the fees received by Funds Management are paid to Wells Capital Management for its services as sub-adviser. The Cash Collateral Fund seeks to provide a positive return compared to the daily Fed Funds Open rate by investing in high-quality, U.S. dollar-denominated short-term money market instruments. Cash Collateral Fund investments are fair valued based upon the amortized cost valuation technique. Income earned from investment in the Cash Collateral Fund is included in securities lending income 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 instruments in which cash collateral is invested. The amount of securities lending activity undertaken by the Fund fluctuates from time to time. As a result of the reorganizations on July 16, 2010, the Fund holds securities related to defaulted or impaired structured investment vehicles. After the occurrence of a default or impairment of structured investment vehicles purchased in a joint account by Wells Fargo Advantage VT Large Company Core Fund’s former securities lending agent, as the various participating funds’ lending activity fluctuated, their ratable interest in the joint account, including their ratable exposure to the defaulted or impaired structured investment vehicles fluctuated depending on the relative activity of each participating fund. In order to eliminate the fluctuation of the various participating funds’ ratable exposure to the defaulted or impaired structured investment vehicles, the adviser to the funds recommended to the Board of Trustees, and the Board of Trustees approved, actions designed to fix the allocation of percentage ownership in defaulted or impaired structured investment vehicles among all funds participating in securities lending (“side pocketing”) based on each participating fund’s percentage ownership of the total cash collateral investment joint account as of the date the fixed allocation is implemented. Accordingly, on February 13, 2009 a side pocketing occurred, which fixed each participating fund’s ownership of defaulted or impaired structured investment vehicle in the joint account based on each participating fund’s percentage ownership of the joint account as of such date.


22 Wells Fargo Advantage VT Core Equity Fund		Notes to Financial Statements

Security transactions and income recognition

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

Dividend income is recognized on the ex-dividend date, except for certain dividends from foreign securities, which are recorded as soon as the Fund is informed of the ex-dividend date. Dividend income from foreign securities is recorded net of foreign taxes withheld where recovery of such taxes is not assured.

Distributions to shareholders

Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-dividend date. Such distributions are determined in conformity with income tax regulations, which may differ from generally accepted accounting principles.

The timing and character of distributions made during the period from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. To the extent that these differences are permanent in nature, such amounts are reclassified within the capital accounts based on their federal tax-basis treatment. Temporary differences do not require reclassifications. At December 31, 2010, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:


		Accumulated Net
Undistributed Net		Realized Gains
Investment Income		on Investment		Paid-in Capital
$	13,762	$	3,257,081	$	(3,270,843	)

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 (including those of the predecessor funds) for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities.

As of December 31, 2010, the Fund had estimated net capital loss carryforwards, which are available to offset future net realized capital gains, in the amount of $2,524,725 with $886,236 expiring in 2016 and $1,638,489 expiring in 2017.

Under the recently enacted Regulated Investment Company Modernization Act of 2010, the Fund will be permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.

Class allocations

The separate classes of shares offered by the Fund differ principally in distribution and administration fees. Shareholders of each class bear certain expenses that pertain to that particular class. All shareholders bear the common expenses of the Fund, earn income from the portfolio, and are allocated unrealized gains and losses pro rata based on the average daily net assets of each class, without distinction between share classes. Dividends are determined separately for each class based on income and expenses allocable to each class. Realized gains and losses are allocated to each class pro rata based upon the net assets of each class on the date realized. Differences in per share dividend rates generally result from the relative weightings of pro rata income and realized gain allocations and from differences in separate class expenses, including distribution and administration fees.

3. FAIR VALUATION MEASUREMENTS


Notes to Financial Statements		Wells Fargo Advantage VT Core Equity Fund 23

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 securities are not necessarily an indication of the risk associated with investing in those securities.

As of December 31, 2010, the inputs used in valuing the Fund’s assets, which are carried at fair value, were as follows:


			Significant Other		Significant
			Observable		Unobservable
	Quoted Prices		Inputs		Inputs
Investments in Securities	(Level 1)		(Level 2)		(Level 3)		Total
Equity securities
Common stocks	$	135,640,781	$	698,280	$	0	$	136,339,061
Short-term investments
Corporate bonds and notes		0		0		28,428		28,428
Investment companies		4,198,369		25,635,656		0		29,834,025
	$	139,839,150	$	26,333,936	$	28,428	$	166,201,514

Further details on the major security types listed above can be found in the Fund’s Portfolio of Investments.

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


	Corporate bonds
	and notes
Balance as of December 31, 2009	$	0
Transfers in from acquisitions		28,428
Balance as of December 31, 2010	$	28,428
Change in unrealized gains (losses) included in earnings relating to securities still held at December 31, 2010	$	0

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

Investment advisory fees

The Trust has entered into an investment advisory contract with Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”). The investment adviser is responsible for implementing investment policies and guidelines and for supervising the investment sub-adviser, who is responsible for day-to-day portfolio management of the Fund.

Pursuant to the contract, Funds Management is paid an annual investment advisory fee starting at 0.55% and declining to 0.40% as the average daily net assets of the Fund increase. Prior to July 19, 2010, the predecessor fund, Evergreen VA Fundamental Large Cap Fund, paid an investment advisory fee to Evergreen Investment Management Company, LLC (“EIMC”), an affiliate of Funds Management, at an annual rate which started at 0.70% and declined to 0.50% as the aggregate average daily net assets of the Fund and its retail counterpart, Evergreen Fundamental Large Cap Fund, increased. For the year ended December 31, 2010, the investment advisory fee was equivalent to an annual rate of 0.59% of the Fund’s average daily net assets.


24 Wells Fargo Advantage VT Core Equity Fund		Notes to Financial Statements

an affiliate of Funds Management, is the investment sub-adviser to the Fund and is paid a fee by the investment adviser at an annual rate starting at 0.35% and declining to 0.15% as the average daily net assets of the Fund increase.

Administration and transfer agent fees

The Trust has entered into an Administration Agreement with Funds Management. Under this Agreement, for providing administrative services, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers, Funds Management is entitled to receive the following annual fees:


		Administration Fees
		(% of Average
	Average Daily Net Assets	Daily Net Assets)
Fund level	First $5 billion		0.05	%
	Next $5 billion		0.04
	Over $10 billion		0.03
Class 1 and Class 2	All asset levels		0.08

Prior to July 19, 2010, the predecessor fund paid EIMC a fund level administrator fee at an annual rate determined by applying percentage rates to the aggregate average daily net assets of the Evergreen funds (excluding money market funds) which started at 0.10% and declined to 0.05% as the aggregate average daily net assets of the Evergreen funds (excluding money market funds) increased.

Funds Management and/or EIMC has contractually waived and/or reimbursed investment advisory and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management and/or EIMC were made first from fund level expenses on a proportionate basis and then from class specific expenses.

Prior to July 19, 2010, the predecessor fund paid Evergreen Service Company, LLC, an affiliate of EIMC and a subsidiary of Wells Fargo, a transfer and dividend disbursing agent fee.

Distribution fees

The Trust has adopted a Distribution Plan for Class 2 shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. Distribution fees are charged to the Class 2 shares and paid to Wells Fargo Funds Distributor, LLC, the principal underwriter, at an annual rate of 0.25% of its average daily net assets. Prior to July 19, 2010, Class 2 shares of the predecessor fund also paid distribution fees at an annual rate of 0.25% of its average daily net assets.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, exclusive of short-term securities (securities with maturities of one year or less at purchase date) for the year ended December 31, 2010 were $35,360,634 and $52,949,510, respectively.

6. ACQUISITIONS

After the close of business on July 16, 2010, the Fund acquired the net assets of Evergreen VA Fundamental Large Cap Fund and Wells Fargo Advantage VT Large Company Core Fund. The purpose of the transaction was to combine three funds with similar investment objectives and strategies. The acquisitions were accomplished by a tax-free exchange of all of the shares of Evergreen VA Fundamental Large Cap Fund and Wells Fargo Advantage VT Large Company Core Fund. Shareholders holding Class 1 and Class 2 shares of Evergreen VA Fundamental Large Cap Fund received Class 1 and Class 2 shares, respectively, of the Fund in the reorganization. Existing shareholders of Wells Fargo Advantage VT Large Company Core Fund received Class 2 shares of the Fund in the reorganization. The Fund was newly created to receive the assets of Evergreen VA Fundamental Large Cap Fund and Wells Fargo Advantage VT Large Company Core Fund. Evergreen VA Fundamental Large Cap Fund became the accounting and performance survivor in the reorganizations. The investment portfolio of Evergreen VA Fundamental Large Cap Fund and Wells Fargo Advantage VT Large Company Core Fund with fair values of $115,710,077 and $8,948,186, respectively, and identified costs of $107,871,481 and $9,585,014, respectively, on July 16, 2010 were the principal assets acquired by the Fund. For financial reporting purposes, assets received and shares issued by the Fund were recorded at fair value; however, the cost basis of the investments received from Evergreen VA Fundamental Large Cap Fund and Wells Fargo Advantage VT Large Company Core Fund were carried forward to align


Notes to Financial Statements		Wells Fargo Advantage VT Core Equity Fund 25

ongoing reporting of the Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes. The value of net assets acquired, unrealized gains (losses) acquired, exchange ratio and number of shares issued were as follows:


	Value of Net		Unrealized			Exchange		Number of
Acquired Fund	Assets Acquired		Gains (Losses)			Ratio		Shares Issued
Evergreen VA Fundamental Large Cap Fund	$	115,708,933	$	7,838,596			1.00	2,977,966 Class 1
							1.00	4,248,849 Class 2
Wells Fargo Advantage VT Large Company Core Fund		8,994,391		(636,828	)		0.72	562,629 Class 2

The aggregate net assets of the Fund immediately after the acquisitions were $124,703,324.

Assuming the acquisitions had been completed January 1, 2010, the beginning of the annual reporting period for the Fund, the pro forma results of operations for the year ended December 31, 2010 would have been


Net investment income	$	1,153,573
Net realized and unrealized gains (losses) on investments	$	19,454,530
Net increase in net assets resulting from operations	$	20,608,103

Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of Wells Fargo Advantage VT Large Company Core Fund that have been included in the Fund’s Statement of Operations since July 19, 2010.

7. BANK BORROWINGS

The Trust and Wells Fargo Funds Trust (excluding the money market funds) are parties to a $125,000,000 revolving credit agreement with State Street Bank and Trust Company, 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, under the credit agreement, the Fund pays an annual commitment fee equal to 0.125% of the unused balance, which is allocated pro rata. Prior to September 7, 2010, the annual commitment fee paid by the Fund was 0.15% of the unused balance.

For the year ended December 31, 2010, there were no borrowings by the Fund under the agreement.

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended December 31, 2010 and December 31, 2009 were as follows:


	Year ended December 31,
	2010		2009
Ordinary Income	$	611,733	$	1,208,455

As of December 31, 2010 the components of distributable earnings on a tax basis were as follows:


Undistributed		Undistributed
Ordinary		Long-Term		Unrealized		Capital Loss
Income		Gain		Gains (Losses)		Carryforward
$	500,095	$	4,114,590	$	28,265,873	$	(2,524,725	)

9. INDEMNIFICATION

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


26 Wells Fargo Advantage VT Core Equity Fund		Report of Independent Registered Public Accounting Firm

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO VARIABLE TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Advantage VT Core Equity Fund (the “Fund”), one of the funds constituting the Wells Fargo Variable Trust, as of December 31, 2010, and the related statement of operations for the year then ended, statements of changes in net assets for each of the years in the two year period then ended, and the financial highlights for each of the years in the five year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2010, by correspondence with custodian and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Advantage VT Core Equity Fund as of December 31, 2010, the results of its operations for the year then ended, changes in its net assets for each of the years in the two year period then ended, and the financial highlights for each of the years in the five year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts
February 25, 2011


Other Information (Unaudited)		Wells Fargo Advantage VT Core Equity Fund 27

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-800-222-8222, visiting our Web site at wellsfargo.com/advantagefunds, or visiting the SEC Web site at www.sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge on the Fund’s Web site at wellsfargo.com/advantagefunds or by visiting the SEC Web site at www.sec.gov.


28 Wells Fargo Advantage VT Core Equity Fund		Other Information (Unaudited)

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available on the Fund’s Web site (www.wellsfargo.com/advantagefunds) on a monthly, 30-day or more delayed basis. In addition, top ten holdings information for the Fund is publicly available on the Fund’s Web site on a monthly, seven-day or more delayed basis. The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q, which is available without charge by visiting the SEC Web site at www.sec.gov. In addition, the Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and at regional offices in New York City, at 233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900. Information about the Public Reference Room may be obtained by calling 1-800-SEC-0330.

BOARD OF TRUSTEES

The following table provides basic information about the Board of Trustees (the “Trustees”) of the Wells Fargo Variable Trust (the “Trust”) and Officers of the Trust. This table should be read in conjunction with the Prospectus and the Statement of Additional Information¹of the Fund. Each of the Trustees and Officers listed below acts in identical capacities for the Wells Fargo Advantage family of funds, which consists of 152 funds comprising the Trust, Wells Fargo Funds Trust, Wells Fargo Master Trust and four closed-end funds (collectively the “Fund Complex”). All of the Trustees are also Members of the Audit and Governance Committees of each Trust in the Fund Complex. The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.

Independent Trustees


Name and	Position Held and
Year of Birth	Length of Service	Principal Occupations During Past Five Years	Other Directorships
Peter G. Gordon (Born 1942)	Trustee, since 1998; Chairman, since 2005 (Lead Trustee since 2001)	Co-Founder, Chairman, President and CEO of Crystal Geyser. Water Company. Trustee Emeritus, Colby College	Asset Allocation Trust

Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. 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. Mr. Harris is a certified public accountant.	CIGNA Corporation; Deluxe Corporation; Asset Allocation Trust

Judith M. Johnson (Born 1949)	Trustee, since 2008	Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant.	Asset Allocation Trust

Leroy Keith, Jr. (Born 1939)	Trustee, since 2010	Chairman, Bloc Global Services (development and construction), Trustee of the Evergreen Funds from 1983 to 2010. Former Managing Director, Almanac Capital Management (commodities firm), former Partner, Stonington Partners, Inc. (private equity fund), former Director, Obagi Medical Products Co. and former Director, Lincoln Educational Services.	Trustee, Virtus Fund Complex (consisting of 45 portfolios as of 12/31/10); Director, Diversapack Co. (packaging company); Asset Allocation Trust

David F. Larcker (Born 1951)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of Corporate Governance Research Program and Co-Director of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust


Other Information (Unaudited)		Wells Fargo Advantage VT Core Equity Fund 29


Name and	Position Held and
Year of Birth	Length of Service	Principal Occupations During Past Five Years	Other Directorships
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor and Chair of the Department of Insurance and Risk Management, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust

Timothy J. Penny (Born 1951)	Trustee, since 1996	President and CEO of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust

Michael S. Scofield (Born 1943)	Trustee, since 2010	Currently serves on the Investment Company Institute’s Board of Governors and Executive Committee as well the Independent Director’s Counsel Board of Governors and Executive Committee. Former Chairman of the Independent Directors Counsel. Trustee of the Evergreen Funds from 1984 to 2010. Retired Attorney, Law Offices of Michael S. Scofield and former Director and Chairman, Branded Media Corporation (multi-media branding company).	Asset Allocation Trust

Donald C. Willeke (Born 1940)	Trustee, since 1996	Principal of the law firm of Willeke & Daniels. General Counsel of the Minneapolis Employees Retirement Fund from 1984 until its consolidation into the Minnesota Public Employees Retirement Association on June 30, 2010.	Asset Allocation Trust

Officers


Name and	Position Held and
Year of Birth	Length of Service	Principal Occupations During Past Five Years
Karla M. Rabusch (Born 1959)	President, since 2003	Executive Vice President of Wells Fargo Bank, N.A. and President of Wells Fargo Funds Management, LLC since 2003. Senior Vice President and Chief Administrative Officer of Wells Fargo Funds Management, LLC from 2001 to 2003.

C. David Messman (Born 1960)	Secretary, since 2000; Chief Legal Counsel, since 2003	Senior Vice President and Secretary of Wells Fargo Funds Management, LLC since 2001. Vice President and Managing Counsel of Wells Fargo Bank, N.A. since 1996.

Kasey Phillips (Born 1970)	Treasurer, since 2009	Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2006 to 2010. Treasurer of the Evergreen Funds from 2005 to 2010. Vice President and Assistant Vice President of Evergreen Investment Services, Inc. from 1999 to 2006.

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. Assistant Vice President of Evergreen Investment Services, Inc. from 2004 to 2008. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.

Jeremy DePalma (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. Vice President, Evergreen Investment Services, Inc. from 2004 to 2007. Assistant Vice President, Evergreen Investment Services, Inc. from 2000 to 2004 and the head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.


30 Wells Fargo Advantage VT Core Equity Fund		Other Information (Unaudited)


1.		The Statement of Additional Information includes additional information about the Fund’s Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the Fund’s Web site at www.wellsfargo.com/advantagefunds.


List of Abbreviations		Wells Fargo Advantage VT Core Equity Fund 31

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


ABAG	—	Association of Bay Area Governments
ADR	—	American Depositary Receipt
ADS	—	American Depository Shares
AMBAC	—	American Municipal Bond Assurance Corporation
AMT	—	Alternative Minimum Tax
ARM	—	Adjustable Rate Mortgages
AUD	—	Australian Dollar
BART	—	Bay Area Rapid Transit
BRL	—	Brazil Real
CAD	—	Canadian Dollar
CDA	—	Community Development Authority
CDO	—	Collateralized Debt Obligation
CDSC	—	Contingent Deferred Sales Charge
CGIC	—	Capital Guaranty Insurance Company
CGY	—	Capital Guaranty Corporation
CHF	—	Swiss Franc
CIFG	—	CDC (Caisse des Dépôts et Consignations) IXIS Financial Guarantee
COP	—	Certificate of Participation
CP	—	Commercial Paper
CTF	—	Common Trust Fund
DEM	—	Deutsche Mark
DKK	—	Danish Krone
DW&P	—	Department of Water & Power
DWR	—	Department of Water Resources
ECFA	—	Educational & Cultural Facilities Authority
EDFA	—	Economic Development Finance Authority
ETET	—	Eagle Tax-Exempt Trust
ETF	—	Exchange-Traded Fund
EUR	—	Euro
FFCB	—	Federal Farm Credit Bank
FGIC	—	Financial Guaranty Insurance Corporation
FHA	—	Federal Housing Authority
FHAG	—	Federal Housing Agency
FHLB	—	Federal Home Loan Bank
FHLMC	—	Federal Home Loan Mortgage Corporation
FNMA	—	Federal National Mortgage Association
FRF	—	French Franc
FSA	—	Farm Service Agency
GBP	—	Great British Pound
GDR	—	Global Depositary Receipt
GNMA	—	Government National Mortgage Association
GO	—	General Obligation
HCFR	—	Healthcare Facilities Revenue
HEFA	—	Health & Educational Facilities Authority
HEFAR	—	Higher Education Facilities Authority Revenue
HFA	—	Housing Finance Authority
HFFA	—	Health Facilities Financing Authority
HKD	—	Hong Kong Dollar
HUD	—	Housing & Urban Development
HUF	—	Hungarian Forint
IDA	—	Industrial Development Authority
IDAG	—	Industrial Development Agency
IDR	—	Industrial Development Revenue
IEP	—	Irish Pound
JPY	—	Japanese Yen
KRW	—	Republic of Korea Won
LIBOR	—	London Interbank Offered Rate
LLC	—	Limited Liability Company
LLP	—	Limited Liability Partnership
LOC	—	Letter of Credit
LP	—	Limited Partnership
MBIA	—	Municipal Bond Insurance Association
MFHR	—	Multi-Family Housing Revenue
MFMR	—	Multi-Family Mortgage Revenue
MMD	—	Municipal Market Data
MTN	—	Medium Term Note
MUD	—	Municipal Utility District
MXN	—	Mexican Peso
MYR	—	Malaysian Ringgit
NATL-RE	—	National Public Finance Guarantee Corporation
NLG	—	Netherlands Guilder
NOK	—	Norwegian Krone
NZD	—	New Zealand Dollar
PCFA	—	Pollution Control Finance Authority
PCR	—	Pollution Control Revenue
PFA	—	Public Finance Authority
PFFA	—	Public Facilities Financing Authority
plc	—	Public Limited Company
PLN	—	Polish Zloty
PSFG	—	Public School Fund Guaranty
R&D	—	Research & Development
RDA	—	Redevelopment Authority
RDFA	—	Redevelopment Finance Authority
REITS	—	Real Estate Investment Trusts
SEK	—	Swedish Krona
SFHR	—	Single Family Housing Revenue
SFMR	—	Single Family Mortgage Revenue
SGD	—	Singapore Dollar
SKK	—	Slovakian Koruna
SLMA	—	Student Loan Marketing Association
SPDR	—	Standard & Poor’s Depositary Receipts
STIT	—	Short-Term Investment Trust
TBA	—	To Be Announced
TRAN	—	Tax Revenue Anticipation Notes
TRY	—	Turkish Lira
USD	—	United States Dollar
XLCA	—	XL Capital Assurance
ZAR	—	South African Rand

This page is intentionally left blank.

More information about Wells Fargo Advantage Funds is available free upon request. To obtain literature, please write, e-mail, visit the Funds’ Web site, or call:

Wells Fargo Advantage Funds
P.O. Box 8266
Boston, MA 02266-8266
E-mail: wfaf@wellsfargo.com

Web site:www.wellsfargo.com/advantagefunds
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 Wells Fargo Advantage Funds. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. For a prospectus containing more complete information, including charges and expenses, call 1-800-222-8222 or visit the Fund’s Web site at www.wellsfargo.com/advantagefunds. Please consider the investment objectives, risks, charges, and expenses of the investment carefully before investing. This and other information about Wells Fargo Advantage Funds can be found in the current prospectus. Read the prospectus carefully before you invest or send money.

Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Advantage Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the Funds. The Funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA/SIPC, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED § NO BANK GUARANTEE § MAY LOSE VALUE



^© 2011 Wells Fargo Funds Management, LLC. All rights reserved.	www.wellsfargo.com/advantagefunds	200911 02-11
		AVT0/AR146 12-10

WELLS FARGO ADVANTAGE VARIABLE TRUST FUNDS

■ Wells Fargo Advantage VT Discovery Fund^SM

Reduce clutter. Save trees.


Contents
Letter to Shareholders			2

Performance Highlights			6

Fund Expenses			11

Portfolio of Investments			12

Financial Statements
Statement of Assets and Liabilities			16
Statement of Operations			17
Statements of Changes in Net Assets			18
Financial Highlights			20

Notes to Financial Statements			22

Report of Independent Registered Public Accounting Firm			27

Other Information			28

List of Abbreviations			32

NOT FDIC INSURED ■ NO BANK GUARANTEE ■ MAY LOSE VALUE


WELLS FARGO
		INVESTMENT HISTORY

1932		Keystone creates one of the first mutual fund families.

1971		Wells Fargo & Company introduces one of the first institutional index funds.

1978		Wells Fargo applies Markowitz and Sharpe’s research on Modern Portfolio Theory to introduce one of the industry’s first Tactical Asset Allocation (TAA) models in institutional separately managed accounts.

1984		Wells Fargo Stagecoach Funds launches its first asset allocation fund.

1989		The Tactical Asset Allocation (TAA) Model is first applied to Wells Fargo’s asset allocation mutual funds.

1994		Wells Fargo introduces the LifePath Funds, one of the first suites of target date funds (now the *Wells Fargo Advantage Dow Jones Target Date Funds*^SM).

1996		Evergreen Investments and Keystone Funds merge.

1997		Wells Fargo launches *Wells Fargo Advantage WealthBuilder Portfolios*^SM, a fund-of-funds suite of products that includes the use of quantitative models to shift assets among investment styles.

1999		Norwest Advantage Funds and Stagecoach Funds are reorganized into Wells Fargo Funds after the merger of Norwest and Wells Fargo.

2002		Evergreen Retail and Evergreen Institutional companies form the umbrella asset management company, Evergreen Investments.

2005		The integration of Strong Funds with Wells Fargo Funds creates *Wells Fargo Advantage Funds, resulting in one of* the top 20 mutual fund companies in the United States.

2006		*Wells Fargo Advantage Funds* relaunches the target date product line as *Wells Fargo Advantage Dow Jones Target Date Funds.*

2010		The mergers and reorganizations of Evergreen and Wells Fargo Advantage mutual funds are completed, unifying the families under the brand of *Wells Fargo Advantage Funds.*

		Not part of the annual report.

Wells Fargo Advantage Funds®

Strength

Expertise

Partnership

NOT FDIC INSURED ■ NO BANK GUARANTEE ■ MAY LOSE VALUE

Wells Fargo Advantage Funds offers more than 120 mutual funds across a wide range of asset classes, representing over $236 billion in assets under management, as of December 31, 2010.


Equity Funds
Asia Pacific Fund	Enterprise Fund^†	Opportunity Fund^†
C&B Large Cap Value Fund	Equity Value Fund	Precious Metals Fund
C&B Mid Cap Value Fund	Global Opportunities Fund	Premier Large Company Growth Fund
Capital Growth Fund	Growth Fund	Small Cap Growth Fund
Classic Value Fund	Growth Opportunities Fund	Small Cap Opportunities Fund
Common Stock Fund	Health Care Fund	Small Cap Value Fund
Core Equity Fund	Index Fund	Small Company Growth Fund
Disciplined Global Equity Fund	International Equity Fund	Small Company Value Fund
Disciplined U.S. Core Fund	International Value Fund	Small/Mid Cap Core Fund
Disciplined Value Fund	Intrinsic Small Cap Value Fund	Small/Mid Cap Value Fund
Discovery Fund^†	Intrinsic Value Fund	Social Sustainability Fund^†
Diversified Equity Fund	Intrinsic World Equity Fund	Special Mid Cap Value Fund
Diversified International Fund	Large Cap Core Fund	Special Small Cap Value Fund
Diversified Small Cap Fund	Large Cap Growth Fund	Specialized Technology Fund
Emerging Growth Fund	Large Company Value Fund	Strategic Large Cap Growth Fund
Emerging Markets Equity Fund	Mid Cap Growth Fund	Traditional Small Cap Growth Fund
Endeavor Select Fund^†	Omega Growth Fund	Utility and Telecommunications Fund

Bond Funds

Adjustable Rate Government Fund	Inflation-Protected Bond Fund	Short-Term Bond Fund
California Limited-Term Tax-Free Fund	Intermediate Tax/AMT-Free Fund	Short-Term High Yield Bond Fund
California Tax-Free Fund	International Bond Fund	Short-Term Municipal Bond Fund
Colorado Tax-Free Fund	Minnesota Tax-Free Fund	Strategic Municipal Bond Fund
Government Securities Fund	Municipal Bond Fund	Total Return Bond Fund
High Income Fund	North Carolina Tax-Free Fund	Ultra Short-Term Income Fund
High Yield Bond Fund	Pennsylvania Tax-Free Fund	Ultra Short-Term Municipal Income Fund
Income Plus Fund	Short Duration Government Bond Fund	Wisconsin Tax-Free Fund

Asset Allocation Funds

Asset Allocation Fund	WealthBuilder Equity Portfolio^†	Target 2020 Fund^†
Conservative Allocation Fund	WealthBuilder Growth Allocation Portfolio^†	Target 2025 Fund^†
Diversified Capital Builder Fund	WealthBuilder Growth Balanced Portfolio^†	Target 2030 Fund^†
Diversified Income Builder Fund	WealthBuilder Moderate Balanced Portfolio^†	Target 2035 Fund^†
Growth Balanced Fund	WealthBuilder Tactical Equity Portfolio^†	Target 2040 Fund^†
Index Asset Allocation Fund	Target Today Fund^†	Target 2045 Fund^†
Moderate Balanced Fund	Target 2010 Fund^†	Target 2050 Fund^†
WealthBuilder Conservative Allocation Portfolio^†	Target 2015 Fund^†

Money Market Funds

100% Treasury Money Market Fund	Minnesota Money Market Fund	New Jersey Municipal Money Market Fund
California Municipal Money Market Fund	Money Market Fund	New York Municipal Money Market Fund
Cash Investment Money Market Fund	Municipal Cash Management Money Market Fund	Pennsylvania Municipal Money Market Fund
Government Money Market Fund	Municipal Money Market Fund	Prime Investment Money Market Fund
Heritage Money Market Fund^†	National Tax-Free Money Market Fund	Treasury Plus Money Market Fund

Variable Trust Funds¹

VT Core Equity Fund	VT Intrinsic Value Fund	VT Small Cap Value Fund
VT Discovery Fund^†	VT Omega Growth Fund	VT Total Return Bond Fund
VT Index Asset Allocation Fund	VT Opportunity Fund^†
VT International Equity Fund	VT Small Cap Growth Fund


1.		The Variable Trust Funds are generally available only through insurance company variable contracts.

†		In this report, the Wells Fargo Advantage Discovery Fund^SM, Wells Fargo Advantage Endeavor Select Fund^SM, Wells Fargo Advantage Enterprise Fund^SM, Wells Fargo Advantage Opportunity Fund^SM, Wells Fargo Advantage Social Sustainability Fund^SM, Wells Fargo Advantage WealthBuilder Conservative Allocation Portfolio^SM, Wells Fargo Advantage WealthBuilder Equity Portfolio^SM, Wells Fargo Advantage WealthBuilder Growth Allocation Portfolio^SM, Wells Fargo Advantage WealthBuilder Growth Balanced Portfolio^SM, Wells Fargo Advantage WealthBuilder Moderate Balanced Portfolio^SM, Wells Fargo Advantage WealthBuilder Tactical Equity Portfolio^SM, Wells Fargo Advantage Dow Jones Target Today Fund^SM, Wells Fargo Advantage Dow Jones Target 2010 Fund^SM, Wells Fargo Advantage Dow Jones Target 2015 Fund^SM, Wells Fargo Advantage Dow Jones Target 2020 Fund^SM, Wells Fargo Advantage Dow Jones Target 2025 Fund^SM, Wells Fargo Advantage Dow Jones Target 2030 Fund^SM, Wells Fargo Advantage Dow Jones Target 2035 Fund^SM, Wells Fargo Advantage Dow Jones Target 2040 Fund^SM, Wells Fargo Advantage Dow Jones Target 2045 Fund^SM, Wells Fargo Advantage Dow Jones Target 2050 Fund^SM, Wells Fargo Advantage Heritage Money Market Fund^SM, Wells Fargo Advantage VT Discovery Fund^SM, and Wells Fargo Advantage VT Opportunity Fund^SMare referred to as the Discovery Fund, Endeavor Select Fund, Enterprise Fund, Opportunity Fund, Social Sustainability Fund, WealthBuilder Conservative Allocation Portfolio, WealthBuilder Equity Portfolio, WealthBuilder Growth Allocation Portfolio, WealthBuilder Growth Balanced Portfolio, WealthBuilder Moderate Balanced Portfolio, WealthBuilder Tactical Equity Portfolio, Target Today Fund, Target 2010 Fund, Target 2015 Fund, Target 2020 Fund, Target 2025 Fund, Target 2030 Fund, Target 2035 Fund, Target 2040 Fund, Target 2045 Fund, Target 2050 Fund, Heritage Money Market Fund, VT Discovery Fund, and VT Opportunity Fund, respectively.

Not part of the annual report.


2 Wells Fargo Advantage VT Discovery Fund		Letter to Shareholders

Karla M. Rabusch,
President
Wells Fargo Advantage Funds

The equity markets delivered strong full-year returns against the backdrop of a strengthening economy.

Dear Valued Shareholder:

We are pleased to provide you with this annual report for the Wells Fargo Advantage VT Discovery Fund for the 12 months that ended December 31, 2010. The equity markets delivered strong full-year returns against the backdrop of a strengthening economy. However, the year was not without its share of macroeconomic challenges and market volatility, once again highlighting the value of a sound, well-diversified investment strategy. As always, we believe that such a strategy can enable investors to balance risks and opportunities as they pursue long-term financial goals in a dynamic market environment.

The economic recovery stayed on track.

Jobs and housing remained troublesome.

The Fed continued to do its part.


Letter to Shareholders		Wells Fargo Advantage VT Discovery Fund 3

2010 was another solid year for equities.

Investors should keep a long-term perspective.

Along with more upbeat economic data, better-than-expected corporate earnings power played a role in driving stock prices higher.


4 Wells Fargo Advantage VT Discovery Fund		Letter to Shareholders

Sincerely,

Karla M. Rabusch
President
Wells Fargo Advantage Funds

This page is intentionally left blank.


6 Wells Fargo Advantage VT Discovery Fund		Performance Highlights (Unaudited)

Wells Fargo Advantage VT Discovery Fund

INVESTMENT OBJECTIVE

The Fund seeks long-term capital appreciation.

INVESTMENT ADVISER

Wells Fargo Funds Management, LLC

SUB-ADVISER

Wells Capital Management Incorporated

PORTFOLIO MANAGERS

James M. Leach, CFA
Thomas J. Pence, CFA

FUND INCEPTION

May 8, 1992

PERFORMANCE SUMMARY


12 MONTH TOTAL RETURN AS OF DECEMBER 31, 2010

Class 2	35.54	%
Russell 2500^TMGrowth Index¹	28.86	%

The adviser has committed, through April 30, 2011 to waive fees and/or reimburse expenses to maintain the contractual expense cap at 1.15% for the Class 2 shares, excluding acquired fund fees and certain other expenses. Without these reductions, the returns would have been lower. The Fund’s net expense ratio is 1.16% for the Class 2 shares. The Fund’s gross expense ratio is 1.36% for Class 2 shares.


1.		The Russell 2500^TMGrowth Index measures the performance of those Russell 2500 companies with higher price-to-book ratios and higher forecasted growth values. You cannot invest directly in an index.

2.		The chart compares the performance of the Wells Fargo Advantage VT Discovery Fund Class 2 for the most recent ten years of the Fund with the Russell 2500^TMGrowth Index. The chart assumes a hypothetical $10,000 investment and reflects all operating expenses of the Fund.


Performance Highlights (Unaudited)		Wells Fargo Advantage VT Discovery Fund 7

Wells Fargo Advantage VT Discovery Fund (continued)

MANAGER’S DISCUSSION

Fund highlights

■		The Fund outperformed its benchmark, the Russell 2500^TMGrowth Index, over the 12-month period that ended December 31, 2010.

■		Strong stock selection in the industrials, energy, and information technology sectors contributed to performance, while holdings in telecommunication services were a slight headwind.

■		Investor sentiment swung wildly during the period, with the majority of our outperformance occurring in the second half of the year. As the economic recovery strengthened, our emphasis on strong, secular growth companies was rewarded.

■		We remain focused on bottom-up stock selection and on maintaining an appropriate balance between risk and return potential.

2010 was an eventful year.

Following a remarkably strong rebound in corporate earnings, 2010 began amid improved prospects for a sustainable economic recovery. As the year unfolded, however, a number of macro risks emerged to dampen investor confidence and create market volatility, including the sovereign debt crisis in Europe, concerns over deficit spending, and indications of slowing growth in China. Toward the end of the year, sentiment again shifted as better-than-expected economic data combined with the Federal Reserve’s second round of quantitative easing (QE2), the midterm elections, and pro-growth tax legislation to lift investor optimism and fuel a powerful, broad-based market rally.

Stock selection drove outperformance.

Strong stock selection in the industrials, energy, and information technology sectors added meaningfully to the Fund’s outperformance. Dollar Thrifty Automotive Group and United Continental Holdings Inc. both generated robust returns, as rationalized capacity combined with a strong rebound in corporate expense budgets. Medium-sized energy exploration and production companies more leveraged to oil than natural gas also performed well, with Concho Resources and Pioneer Natural Resources up more than 80% each. Finally, data processing and storage companies Isilon Systems


TEN LARGEST EQUITY HOLDINGS³
(AS OF DECEMBER 31, 2010)

BorgWarner Incorporated	2.52	%
SBA Communications Corporation Class A	2.47	%
Concho Resources Incorporated	2.16	%
Alexion Pharmaceuticals Incorporated	2.15	%
Pioneer Natural Resources Company	2.11	%
Equinix Incorporated	1.84	%
NetLogic Microsystems Incorporated	1.73	%
Wabco Holdings Incorporated	1.70	%
Guess Incorporated	1.68	%
Dick’s Sporting Goods Incorporated	1.68	%


3.		The ten largest equity holdings are calculated based on the value of the securities divided by total investments of the Fund. Holdings are subject to change and may have changed since the date specified.


8 Wells Fargo Advantage VT Discovery Fund		Performance Highlights (Unaudited)

Wells Fargo Advantage VT Discovery Fund (continued)

Incorporated and Netezza Corporation were notable contributors, as both companies benefited from growth in digitization, which has resulted in greater demand for storage and storage file systems.

Although the impact was fairly minor, stock selection in the telecommunication services sector hurt the Fund’s relative results. Our thesis on Neutral Tandem, a maker of communication switches, was based on increased communications originating from nontraditional sources such as cellular phones and cable operators. With a broad national network and with minutes of use increasing, we anticipated substantial growth for the company. Unfortunately, stiff pricing competition from regional competitors resulted in changing fundamentals, leading us to sell the stock.

We focused on secular growth themes.

We have positioned the portfolio to favor companies with attractive valuations and strong earnings growth prospects, particularly those that are likely to differentiate themselves through secular, rather than cyclical, growth drivers. Throughout the year, we rotated out of some cyclical exposures, or “developing situations,” and into companies that can generate higher visible growth—what we refer to as “core” growth names. Key secular growth themes guiding our recent portfolio decisions include innovative new products, information technology equipment, emerging markets, and market share gainers.

We are optimistic entering 2011.

As we proceed into 2011, we believe that many companies exhibit sound balance sheets, strong free cash flows, and reasonable share valuations. Accordingly, we remain upbeat about prospects for continued corporate earnings growth and positive equity returns.

It appears that the long-awaited transition from government stimulus to private-sector spending is finally occurring. After years of frugality, and with new tax incentives serving as a catalyst, company management teams are beginning to invest their massive cash reserves in research and development, capital equipment, technology, and labor. As a precursor to future capital spending, share repurchases and merger and acquisition activity increased during 2010. We also believe that consumer confidence and spending will continue to improve as the labor market


4.		Sector distribution is subject to change and is calculated based on the total common stock investments of the Fund.


Performance Highlights (Unaudited)		Wells Fargo Advantage VT Discovery Fund 9

Wells Fargo Advantage VT Discovery Fund (continued)

slowly recovers. As top-line demand picks up, many companies are poised for incremental profit margin expansion that will drive further earnings growth.

Global investors appear to be taking notice of these trends, providing a potential tailwind for U.S. stocks. In fact, we believe that we are seeing a shift from a “cyclical” to a “secular” investing environment in which investors will be more apt to reward companies with solid revenue and earnings growth. Such an environment has historically been conducive to our fundamental stock selection, or what we like to call “surrounding the company.”


10 Wells Fargo Advantage VT Discovery Fund		Performance Highlights (Unaudited)

Wells Fargo Advantage VT Discovery Fund (continued)

AVERAGE ANNUAL TOTAL RETURN (%) (AS OF DECEMBER 31, 2010)


										Expense Ratios⁵
	Inception Date	6 Months*		1 Year		5 Year		10 Year		Gross			Net⁶

Class 2	5/8/1992		32.26		35.54		8.21		9.03		1.36	%		1.16	%
Russell 2500^TMGrowth Index¹			31.25		28.86		5.63		4.19


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

Please keep in mind that high double-digit returns were primarily achieved during favorable market conditions. You should not expect that such favorable returns can be consistently achieved. A Fund’s performance, especially for very short time periods, should not be the sole factor in making your investment decision.

Stock fund values fluctuate in response to the activities of individual companies and general market and economic conditions. Smaller company stocks tend to be more volatile and less liquid than those of larger companies. The use of derivatives may reduce returns and/or increase volatility. Active trading results in increased turnover and trading expenses and may generate higher short-term capital gains. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). This Fund is exposed to foreign investment risk. Consult the Fund’s prospectus for additional information on these and other risks.


5.		Reflects the expense ratio as stated in the May 1, 2010 prospectus.

6.		The investment adviser has contractually committed through April 30, 2011 to waive fees and/or reimburse expenses maintain the Fund’s contractual expense ratio for Class 2 shares at 1.15%, excluding acquired fund fees and certain other expenses. Without these reductions, the Fund’s returns would have been lower.


Fund Expenses (Unaudited)		Wells Fargo Advantage VT Discovery Fund 11

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 July 1, 2010 to December 31, 2010.

Actual expenses

Hypothetical example for comparison purposes


	Beginning		Ending		Expenses
	Account Value		Account Value		Paid During		Net Annual
	07-01-2010		12-31-2010		the Period¹		Expense Ratio

Class 2
Actual	$	1,000.00	$	1,322.56	$	6.81		1.15	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.62	$	5.92		1.15	%


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


12 Wells Fargo Advantage VT Discovery Fund		Portfolio of Investments—December 31, 2010


Shares		Security Name	Value
Common Stocks: 97.60%

Consumer Discretionary: 23.48%

Auto Components: 4.51%
	45,400	BorgWarner Incorporated†«	$	3,285,144
	32,400	TRW Automotive Holdings Corporation†		1,707,480

				4,992,624


Diversified Consumer Services: 1.47%
	28,800	Coinstar Incorporated†«		1,625,472


Hotels, Restaurants & Leisure: 2.56%
	13,900	Panera Bread Company†«		1,406,819
	83,600	Texas Roadhouse Incorporated†		1,435,412

				2,842,231


Internet & Catalog Retail: 1.62%
	4,500	Priceline.com Incorporated†		1,797,975


Media: 3.14%
	31,500	Scripps Networks Interactive Incorporated		1,630,125
	67,900	Virgin Media Incorporated«		1,849,596

				3,479,721


Specialty Retail: 10.18%
	58,300	Dick’s Sporting Goods Incorporated†«		2,186,250
	21,500	Genesco Incorporated†		806,035
	46,400	Guess Incorporated		2,195,648
	64,583	HHGregg Incorporated†«		1,353,014
	18,300	Jo Ann Stores Incorporated†		1,102,026
	60,814	Penske Auto Group Incorporated†«		1,059,380
	31,500	Urban Outfitters Incorporated†		1,128,015
	42,900	Vitamin Shoppe Incorporated†		1,443,156

				11,273,524


Consumer Staples: 1.02%

Food & Staples Retailing: 1.02%
	23,500	BJ’s Wholesale Club Incorporated†		1,125,650


Energy: 8.29%

Oil, Gas & Consumable Fuels: 8.29%
	71,500	Brigham Exploration Company†		1,947,660
	32,100	Concho Resources Incorporated†		2,814,207
	31,700	Pioneer Natural Resources Company		2,752,194
	42,569	Swift Energy Company†		1,666,576

				9,180,637


Financials: 2.99%

Commercial Banks: 1.21%
	40,700	Wintrust Financial Corporation«		1,344,321


Insurance: 1.78%
	41,350	Aspen Insurance Holdings Limited		1,183,437
	17,082	Endurance Specialty Holdings Limited		786,968

				1,970,405


Portfolio of Investments—December 31, 2010		Wells Fargo Advantage VT Discovery Fund 13


Shares		Security Name	Value
Health Care: 11.73%

Biotechnology: 3.70%
	34,800	Alexion Pharmaceuticals Incorporated†«	$	2,803,140
	29,900	Pharmasset Incorporated†		1,297,959

				4,101,099


Health Care Equipment & Supplies: 3.92%
	18,887	Alere Incorporated†«		691,264
	34,279	Sirona Dental Systems Incorporated†		1,432,177
	16,300	Varian Medical Systems Incorporated†«		1,129,264
	39,800	Volcano Corporation†		1,086,938

				4,339,643


Health Care Providers & Services: 2.80%
	27,100	AmerisourceBergen Corporation		924,652
	33,683	Emergency Medical Services Corporation†		2,176,259

				3,100,911


Life Sciences Tools & Services: 1.31%
	87,800	Bruker BioSciences Corporation†		1,457,480


Industrials: 18.68%

Aerospace & Defense: 3.25%
	37,300	Embraer SA ADR		1,096,620
	32,164	GeoEye Incorporated†		1,363,432
	15,800	Transdign Group Incorporated†		1,137,758

				3,597,810


Air Freight & Logistics: 1.33%
	26,500	Atlas Air Worldwide Holdings Incorporated†		1,479,495


Airlines: 2.24%
	55,400	Delta Air Lines Incorporated†		698,040
	75,100	United Continental Holdings Incorporated†«		1,788,882

				2,486,922


Electrical Equipment: 1.61%
	33,800	Wesco International Incorporated†		1,784,640


Machinery: 6.15%
	31,600	AGCO Corporation†		1,600,856
	51,200	Kennametal Incorporated		2,020,352
	11,300	Parker Hannifin Corporation		975,190
	36,379	Wabco Holdings Incorporated†		2,216,572

				6,812,970


Professional Services: 1.04%
	18,300	Manpower Incorporated		1,148,508


Road & Rail: 3.06%
	82,000	Avis Budget Group Incorporated†«		1,275,920
	44,100	Kansas City Southern†		2,110,626

				3,386,546


14 Wells Fargo Advantage VT Discovery Fund		Portfolio of Investments—December 31, 2010


Shares		Security Name	Value
Information Technology: 24.05%

Communications Equipment: 5.47%
	25,900	Acme Packet Incorporated†	$	1,376,844
	12,600	F5 Networks Incorporated†		1,640,016
	70,739	Finisar Corporation†«		2,100,241
	31,101	Hisoft Technology International Limited†		939,250

				6,056,351


Internet Software & Services: 3.16%
	29,563	Equinix Incorporated†		2,402,289
	15,600	OpenTable Incorporated†		1,099,488

				3,501,777


IT Services: 2.76%
	54,600	Gartner Incorporated†		1,812,720
	103,170	Sapient Corporation		1,248,357

				3,061,077


Semiconductors & Semiconductor Equipment: 4.56%
	89,000	ARM Holdings plc ADR«		1,846,750
	76,700	Atmel Corporation†		944,944
	71,900	NetLogic Microsystems Incorporated†«		2,258,379

				5,050,073


Software: 8.10%
	27,200	Concur Technologies Incorporated†«		1,412,496
	32,242	Longtop Financial Technologies Limited ADR†		1,166,516
	49,075	Reald Incorporated†		1,272,024
	24,200	Red Hat Incorporated†		1,104,730
	72,550	SuccessFactors Incorporated†«		2,101,048
	96,900	TIBCO Software Incorporated†		1,909,899

				8,966,713


Materials: 1.55%

Chemicals: 0.42%
	10,900	Kronos Worldwide Incorporated		463,141


Containers & Packaging: 1.13%
	38,400	Bemis Company Incorporated		1,254,144


Telecommunication Services: 5.81%

Diversified Telecommunication Services: 1.26%
	169,200	Iradium Communications Incorporated†«		1,395,900


Wireless Telecommunication Services: 4.55%
	40,800	NII Holdings Incorporated†		1,822,128
	78,600	SBA Communications Corporation Class A†		3,217,884

				5,040,012


Total Common Stocks (Cost $77,958,682)				108,117,772


Portfolio of Investments—December 31, 2010		Wells Fargo Advantage VT Discovery Fund 15


Principal		Security Name			Interest Rate			Maturity Date		Value
Short-Term Investments: 20.07%

Corporate Bonds & Notes: 0.72%
$	695,233	Gryphon Funding Limited(v)(a)(i)				0.00	%		08/05/2011	$	282,404
	914,487	VFNC Corporation(v)±††(a)(i)				0.26			09/29/2011		512,113

											794,517
Shares					Yield
Investment Companies: 19.35%
	2,769,183	Wells Fargo Advantage Cash Investment Money Market Fund(l)(u)				0.14					2,769,183
	18,665,349	Wells Fargo Securities Lending Cash Investments, LLC(v)(l)(u)				0.27					18,665,349

											21,434,532


Total Short-Term Investments (Cost $21,937,477)											22,229,049


Total Investments in Securities (Cost $99,896,159)*			117.67	%							130,346,821

Other Assets and Liabilities, Net			(17.67	)							(19,591,603	)


Total Net Assets			100.00	%						$	110,755,218


(v)		Security represents investment of cash collateral received from securities on loan.

†		Non-income earning securities.

(l)		Investment in an affiliate.

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

±		Variable rate investments.

††		Securities that may be resold to “qualified institutional buyers” under Rule 144A or securities offered pursuant to Section 4(2) of the Securities Act of 1933, as amended.

(a)		Security is fair valued by the Management Valuation Team, and in certain instances by the Board of Trustees, in accordance with procedures approved by the Board of Trustees.

(i)		Illiquid security for which the designation as illiquid is unaudited.

(u)		Rate shown is the 7-day annualized yield at period end.

*		Cost for federal income tax purposes is $100,625,482 and net unrealized appreciation (depreciation) consists of:


Gross unrealized appreciation	$	30,970,619
Gross unrealized depreciation		(1,249,280	)

Net unrealized appreciation	$	29,721,339

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


16 Wells Fargo Advantage VT Discovery Fund		Statement of Assets and Liabilities—December 31, 2010


Assets
Investments
In unaffiliated securities (including securities on loan), at value	$	108,912,289
In affiliated securities, at value		21,434,532

Total investments, at value (see cost below)		130,346,821
Receivable for Fund shares sold		105,460
Receivable for dividends		17,821
Receivable for securities lending income		2,763
Prepaid expenses and other assets		1,146

Total assets		130,474,011


Liabilities
Payable for investments purchased		57,837
Payable for Fund shares redeemed		322,561
Payable upon receipt of securities loaned		19,168,293
Investment advisory fee payable		69,889
Distribution fees payable		24,896
Due to other related parties		11,943
Accrued expenses and other liabilities		63,374

Total liabilities		19,718,793

Total net assets	$	110,755,218


NET ASSETS CONSIST OF
Paid-in capital	$	113,756,807
Accumulated net realized losses on investments		(33,452,251	)
Net unrealized gains on investments		30,450,662

Total net assets	$	110,755,218


COMPUTATION OF NET ASSET VALUE PER SHARE¹
Net assets — Class 2	$	110,755,218
Shares outstanding — Class 2		5,204,486
Net asset value and offering price per share — Class 2	$	21.28


Total investments, at cost	$	99,896,159

Securities on loan, at value	$	18,657,008


1.		The Fund has on unlimited number of authorized shares.

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


Statement of Operations—For the Year Ended December 31, 2010		Wells Fargo Advantage VT Discovery Fund 17


Investment income
Dividends	$	342,406
Income from affiliated securities		3,850
Securities lending income, net		65,446

Total investment income		411,702


Expenses
Investment advisory fee		677,234
Administration fees
Fund level		97,956
Class 2¹		37,528
Distribution fees
Class 2¹		233,684
Custody and accounting fees		18,335
Professional fees		35,254
Shareholder report expenses		63,479
Trustees’ fees and expenses		10,549
Other fees and expenses		4,237

Total expenses		1,178,256
Less: Fee waivers and/or expense reimbursements		(104,996	)

Net expenses		1,073,260

Net investment loss		(661,558	)


NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on unaffiliated securities		15,071,192
Net change in unrealized gains (losses) on unaffiliated securities		14,985,606

Net realized and unrealized gains (losses) on investments		30,056,798

Net increase in net assets resulting from operations	$	29,395,240


1.		After the close of business on July 16, 2010, existing shares of the Fund were renamed Class 2 shares.

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


18 Wells Fargo Advantage VT Discovery Fund		Statements of Changes in Net Assets


	Year Ended						Year Ended
	December 31, 2010						December 31, 2009

Operations
Net investment loss				$	(661,558	)				$	(611,462	)
Net realized gains (losses) on investments					15,071,192						(16,013,534	)
Net change in unrealized gains (losses) on investments					14,985,606						50,911,309

Net increase in net assets resulting from operations					29,395,240						34,286,313


	Shares						Shares
Capital share transactions
Proceeds from shares sold — Class 2¹		796,770			14,304,397			1,433,818			17,828,923
Payment for shares redeemed — Class 2¹		(1,076,715	)		(19,068,998	)		(6,063,907	)		(79,139,381	)

Net decrease in net assets resulting from capital share transactions					(4,764,601	)					(61,310,458	)


Total increase (decrease) in net assets					24,630,639						(27,024,145	)

Net assets
Beginning of period					86,124,579						113,148,724

End of period				$	110,755,218					$	86,124,579

Undistributed net investment income				$	0					$	0


1.		After the close of business on July 16, 2010, existing shares of the Fund were renamed Class 2 shares.

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

This page is intentionally left blank.


20 Wells Fargo Advantage VT Discovery Fund		Financial Highlights


	Beginning					Net Realized			Ending
	Net Asset		Net			and Unrealized			Net Asset
	Value Per		Investment			Gains (Losses)			Value Per
	Share		Loss			on Investments			Share

Class 2²
January 1, 2010 to December 31, 2010	$	15.70		(0.13	)		5.71		$	21.28
January 1, 2009 to December 31, 2009	$	11.19		(0.11	)		4.62		$	15.70
January 1, 2008 to December 31, 2008	$	20.11		(0.11	)		(8.81	)	$	11.19
January 1, 2007 to December 31, 2007	$	16.44		(0.15	)		3.82		$	20.11
January 1, 2006 to December 31, 2006	$	14.34		(0.13	)		2.23		$	16.44


1.		Total return calculations would have been lower had certain expenses not been waived or reimbursed during the periods shown.

2.		After the close of business on July 16, 2010, existing shares of the Fund were renamed Class 2 shares.

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


Financial Highlights		Wells Fargo Advantage VT Discovery Fund 21


Ratio to Average Net Assets										Portfolio			Net Assets at
Net Investment	Gross			Net			Total			Turnover			End of Period
Loss	Expenses			Expenses			Return¹			Rate			(000’s omitted)


(0.71)%		1.26	%		1.15	%		35.54	%		101	%	$	110,755
(0.61)%		1.35	%		1.15	%		40.30	%		208	%	$	86,125
(0.63)%		1.27	%		1.15	%		(44.36	)%		166	%	$	113,149
(0.72)%		1.21	%		1.15	%		22.32	%		135	%	$	238,894
(0.76)%		1.21	%		1.15	%		14.64	%		114	%	$	233,947


22 Wells Fargo Advantage VT Discovery Fund		Notes to Financial Statements

1. ORGANIZATION

Wells Fargo Variable 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”). These financial statements report on Wells Fargo Advantage VT Discovery Fund (the “Fund”) which is a diversified series of the Trust. After the close of business on July 16, 2010, existing shares of the Fund were renamed Class 2 shares.

2. SIGNIFICANT ACCOUNTING POLICIES

Securities valuation

Investments in open-end mutual funds and non-registered investment companies are generally valued at net asset value.

The valuation techniques used by the Fund to measure fair value are consistent with the market approach, income approach and/or cost approach, where applicable, for each security type.

Security loans


Notes to Financial Statements		Wells Fargo Advantage VT Discovery Fund 23

starting at 0.05% and declining to 0.01% as the average daily net assets of the Cash Collateral Fund increase. All of the fees received by Funds Management are paid to Wells Capital Management for its services as sub-adviser. The Cash Collateral Fund seeks to provide a positive return compared to the daily Fed Funds Open rate by investing in high-quality, U.S. dollar-denominated short-term money market instruments. Cash Collateral Fund investments are fair valued based upon the amortized cost valuation technique. Income earned from investment in the Cash Collateral Fund is included in securities lending income on the Statement of Operations.

Prior to April 1, 2010, Wells Fargo Bank, N.A. acted as the securities lending agent for the Fund and was entitled to receive for its services 25% of the revenues earned on the securities lending activities. For the year ended December 31, 2010, Wells Fargo Bank, N.A. waived its share of revenues earned on securities lending activities. Such waivers by Wells Fargo Bank, N.A. had the impact of increasing securities lending income on the Statement of Operations. The value of the securities on loan and the liability to return the collateral are shown on the Statement of Assets and Liabilities.

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 instruments in which cash collateral is invested. The amount of securities lending activity undertaken by the Fund fluctuates from time to time. After the occurrence of a default or impairment of structured investment vehicles purchased in a joint account by the Fund’s former securities lending agent, as the various participating Funds’ lending activity fluctuated, their ratable interest in the joint account, including their ratable exposure to the defaulted or impaired structured investment vehicles fluctuated depending on the relative activity of each participating Fund. In order to eliminate the fluctuation of the various participating Funds’ ratable exposure to the defaulted or impaired structured investment vehicles, the adviser to the Funds recommended to the Board of Trustees, and the Board of Trustees approved, actions designed to fix the allocation of percentage ownership in defaulted or impaired structured investment vehicles among all funds participating in securities lending (“side pocketing”) based on each participating Fund’s percentage ownership of the total cash collateral investment joint account as of the date the fixed allocation is implemented. Accordingly, on February 13, 2009 a side pocketing occurred, which fixed each participating Fund’s ownership of defaulted or impaired structured investment vehicle in the joint account based on each participating Fund’s percentage ownership of the joint account as of such date.

Security transactions and income recognition

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

Dividend income is recognized on the ex-dividend date.

Distributions to shareholders


Undistributed		Accumulated Net
Net Investment		Realized Losses
Income		on Investment			Paid-in Capital
$	661,558	$	(42,972	)	$	(618,586	)

Federal and other taxes


24 Wells Fargo Advantage VT Discovery Fund		Notes to Financial Statements

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.

As of December 31, 2010, the Fund had estimated net capital loss carryforwards, which are available to offset future net realized capital gains, in the amount of $32,722,930 expiring in 2017.

Under the recently enacted Regulated Investment Company Modernization Act of 2010, the Fund will be permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.

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 securities are not necessarily an indication of the risk associated with investing in those securities.

As of December 31, 2010, the inputs used in valuing the Fund’s assets, which are carried at fair value, were as follows:


			Significant Other		Significant
			Observable		Unobservable
	Quoted Prices		Inputs		Inputs
Investments in Securities	(Level 1)		(Level 2)		(Level 3)		Total

Equity securities

Common stocks	$	108,117,772	$	0	$	0	$	108,117,772

Short-term investments
Corporate bonds and notes		0		0		794,517		794,517

Investment companies		2,769,183		18,665,349		0		21,434,532
	$	110,886,955	$	18,665,349	$	794,517	$	130,346,821

Further details on the major security types listed above can be found in the Fund’s Portfolio of Investments.


Notes to Financial Statements		Wells Fargo Advantage VT Discovery Fund 25

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


	Corporate
	bonds
	and notes

Balance as of December 31, 2009	$	842,417
Accrued discounts (premiums)		0
Realized gains (losses)		0
Change in unrealized gains (losses)		192,864
Purchases		0
Sales		(240,764	)
Transfers into Level 3		0
Transfers out of Level 3		0
Balance as of December 31, 2010	$	794,517

Change in unrealized gains (losses) included in earnings relating to securities still held at December 31, 2010	$	59,907

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

Investment advisory fees

Pursuant to the contract, Funds Management is paid an annual investment advisory fee starting at 0.70% and declining to 0.55% as the average daily net assets of the Fund increase. Prior to July 19, 2010, the Fund paid an annual investment advisory fee which started at 0.75% and declined to 0.60% as average daily net assets increased. For the year ended December 31, 2010, the investment advisory fee was equivalent to an annual rate of 0.72% of the Fund’s average daily net assets.

Funds Management may retain the services of certain investment sub-advisers to provide daily portfolio management to the Fund. The fees related to investment sub-advisory services are borne directly by the investment adviser and do not increase the overall fees paid by the Fund to the investment adviser. Wells Capital Management, an affiliate of Funds Management, is the investment sub-adviser to the Fund and is paid a fee by the investment adviser at an annual rate starting at 0.45% and declining to 0.35% as the average daily net assets of the Fund increase.

Administration and transfer agent fees


		Administration Fees
		(% of Average
	Average Daily Net Assets	Daily Net Assets)

Fund level	First $5 billion		0.05	%
	Next $5 billion		0.04
	Over $10 billion		0.03

Class 2	All asset levels		0.08

Prior to July 19, 2010, Funds Management received from the Fund, for its existing class, an annual fee which started at 0.16% and declined to 0.14% as the average daily net assets of the Fund increased.


26 Wells Fargo Advantage VT Discovery		Fund Notes to Financial Statements

Funds Management has contractually waived and/or reimbursed investment advisory and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses.

Distribution fees

5. INVESTMENT PORTFOLIO TRANSACTIONS

6. BANK BORROWINGS

For the year ended December 31, 2010, there were no borrowings by the Fund under the agreement.

7. DISTRIBUTIONS TO SHAREHOLDERS

As of December 31, 2010, the components of distributable earnings on a tax basis were as follows:


Unrealized		Capital Loss
Gains (Losses)		Carryforward
$	29,721,339	$	(32,722,930	)

8. INDEMNIFICATION


Report of Independent Registered Public Accounting Firm		Wells Fargo Advantage Variable Trust Funds 27

BOARD OF TRUSTEES AND SHAREHOLDERS OF

WELLS FARGO VARIABLE TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Advantage VT Discovery Fund (the “Fund”), one of the funds constituting the Wells Fargo Variable Trust, as of December 31, 2010, and the related statement of operations for the year then ended, statements of changes in net assets for each of the years in the two year period then ended, and the financial highlights for each of the years in the five year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Advantage VT Discovery Fund as of December 31, 2010, the results of its operations for the year then ended, changes in its net assets for each of the years in the two year period then ended, and the financial highlights for each of the years in the five year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts
February 25, 2011


28 Wells Fargo Advantage Variable Trust Funds		Other Information (Unaudited)

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-800-222-8222, visiting our Web site at www.wellsfargo.com/advantagefunds, or visiting the SEC Web site at www.sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge on the Fund’s Web site at www.wellsfargo.com/advantagefunds or by visiting the SEC Web site at www.sec.gov.


Other Information (Unaudited)		Wells Fargo Advantage VT Discovery Fund 29

PORTFOLIO HOLDINGS INFORMATION

BOARD OF TRUSTEES

Independent Trustees


Name and	Position Held and
Year of Birth	Length of Service	Principal Occupations During Past Five Years	Other Directorships

Peter G. Gordon (Born 1942)	Trustee, since 1998; Chairman, since 2005 (Lead Trustee since 2001)	Co-Founder, Chairman, President and CEO of Crystal Geyser. Water Company. Trustee Emeritus, Colby College	Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. 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. Mr. Harris is a certified public accountant.	CIGNA Corporation; Deluxe Corporation; Asset Allocation Trust

Judith M. Johnson (Born 1949)	Trustee, since 2008	Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant.	Asset Allocation Trust

Leroy Keith, Jr. (Born 1939)	Trustee, since 2010	Chairman, Bloc Global Services (development and construction), Trustee of the Evergreen Funds from 1983 to 2010. Former Managing Director, Almanac Capital Management (commodities firm), former Partner, Stonington Partners, Inc. (private equity fund), former Director, Obagi Medical Products Co. and former Director, Lincoln Educational Services.	Trustee, Virtus Fund Complex (consisting of 45 portfolios as of 12/31/10); Director, Diversapack Co. (packaging company); Asset Allocation Trust

David F. Larcker (Born 1951)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of Corporate Governance Research Program and Co-Director of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust


30 Wells Fargo Advantage VT Discovery Fund		Other Information (Unaudited)


Name and	Position Held and
Year of Birth	Length of Service	Principal Occupations During Past Five Years	Other Directorships

Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor and Chair of the Department of Insurance and Risk Management, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust

Timothy J. Penny (Born 1951)	Trustee, since 1996	President and CEO of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust

Michael S. Scofield (Born 1943)	Trustee, since 2010	Currently serves on the Investment Company Institute’s Board of Governors and Executive Committee as well the Independent Director’s Counsel Board of Governors and Executive Committee. Former Chairman of the Independent Directors Counsel. Trustee of the Evergreen Funds from 1984 to 2010. Retired Attorney, Law Offices of Michael S. Scofield and former Director and Chairman, Branded Media Corporation (multi-media branding company).	Asset Allocation Trust

Donald C. Willeke (Born 1940)	Trustee, since 1996	Principal of the law firm of Willeke & Daniels. General Counsel of the Minneapolis Employees Retirement Fund from 1984 until its consolidation into the Minnesota Public Employees Retirement Association on June 30, 2010.	Asset Allocation Trust

Officers


Name and	Position Held and
Year of Birth	Length of Service	Principal Occupations During Past Five Years

Karla M. Rabusch (Born 1959)	President, since 2003	Executive Vice President of Wells Fargo Bank, N.A. and President of Wells Fargo Funds Management, LLC since 2003. Senior Vice President and Chief Administrative Officer of Wells Fargo Funds Management, LLC from 2001 to 2003.

C. David Messman (Born 1960)	Secretary, since 2000; Chief Legal Counsel, since 2003	Senior Vice President and Secretary of Wells Fargo Funds Management, LLC since 2001. Vice President and Managing Counsel of Wells Fargo Bank, N.A. since 1996.

Kasey Phillips (Born 1970)	Treasurer, since 2009	Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2006 to 2010. Treasurer of the Evergreen Funds from 2005 to 2010. Vice President and Assistant Vice President of Evergreen Investment Services, Inc. from 1999 to 2006.

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. Assistant Vice President of Evergreen Investment Services, Inc. from 2004 to 2008. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.

Jeremy DePalma (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. Vice President, Evergreen Investment Services, Inc. from 2004 to 2007. Assistant Vice President, Evergreen Investment Services, Inc. from 2000 to 2004 and the head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.


Other Information (Unaudited)		Wells Fargo Advantage VT Discovery Fund 31


1.		The Statement of Additional Information includes additional information about the Fund’s Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the Fund’s Web site at www.wellsfargo.com/advantagefunds.


32 Wells Fargo Advantage VT Discovery Fund		List of Abbreviations

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


ABAG	—	Association of Bay Area Governments
ADR	—	American Depositary Receipt
ADS	—	American Depository Shares
AMBAC	—	American Municipal Bond Assurance Corporation
AMT	—	Alternative Minimum Tax
ARM	—	Adjustable Rate Mortgages
AUD	—	Australian Dollar
BART	—	Bay Area Rapid Transit
BRL	—	Brazil Real
CAD	—	Canadian Dollar
CDA	—	Community Development Authority
CDO	—	Collateralized Debt Obligation
CDSC	—	Contingent Deferred Sales Charge
CGIC	—	Capital Guaranty Insurance Company
CGY	—	Capital Guaranty Corporation
CHF	—	Swiss Franc
CIFG	—	CDC (Caisse des Dépôts et Consignations) IXIS Financial Guarantee
COP	—	Certificate of Participation
CP	—	Commercial Paper
CTF	—	Common Trust Fund
DEM	—	Deutsche Mark
DKK	—	Danish Krone
DW&P	—	Department of Water & Power
DWR	—	Department of Water Resources
ECFA	—	Educational & Cultural Facilities Authority
EDFA	—	Economic Development Finance Authority
ETET	—	Eagle Tax-Exempt Trust
ETF	—	Exchange-Traded Fund
EUR	—	Euro
FFCB	—	Federal Farm Credit Bank
FGIC	—	Financial Guaranty Insurance Corporation
FHA	—	Federal Housing Authority
FHAG	—	Federal Housing Agency
FHLB	—	Federal Home Loan Bank
FHLMC	—	Federal Home Loan Mortgage Corporation
FNMA	—	Federal National Mortgage Association
FRF	—	French Franc
FSA	—	Farm Service Agency
GBP	—	Great British Pound
GDR	—	Global Depositary Receipt
GNMA	—	Government National Mortgage Association
GO	—	General Obligation
HCFR	—	Healthcare Facilities Revenue
HEFA	—	Health & Educational Facilities Authority
HEFAR	—	Higher Education Facilities Authority Revenue
HFA	—	Housing Finance Authority
HFFA	—	Health Facilities Financing Authority
HKD	—	Hong Kong Dollar
HUD	—	Housing & Urban Development
HUF	—	Hungarian Forint
IDA	—	Industrial Development Authority
IDAG	—	Industrial Development Agency
IDR	—	Industrial Development Revenue
IEP	—	Irish Pound
JPY	—	Japanese Yen
KRW	—	Republic of Korea Won
LIBOR	—	London Interbank Offered Rate
LLC	—	Limited Liability Company
LLP	—	Limited Liability Partnership
LOC	—	Letter of Credit
LP	—	Limited Partnership
MBIA	—	Municipal Bond Insurance Association
MFHR	—	Multi-Family Housing Revenue
MFMR	—	Multi-Family Mortgage Revenue
MMD	—	Municipal Market Data
MTN	—	Medium Term Note
MUD	—	Municipal Utility District
MXN	—	Mexican Peso
MYR	—	Malaysian Ringgit
NATL-RE	—	National Public Finance Guarantee Corporation
NLG	—	Netherlands Guilder
NOK	—	Norwegian Krone
NZD	—	New Zealand Dollar
PCFA	—	Pollution Control Finance Authority
PCR	—	Pollution Control Revenue
PFA	—	Public Finance Authority
PFFA	—	Public Facilities Financing Authority
plc	—	Public Limited Company
PLN	—	Polish Zloty
PSFG	—	Public School Fund Guaranty
R&D	—	Research & Development
RDA	—	Redevelopment Authority
RDFA	—	Redevelopment Finance Authority
REITS	—	Real Estate Investment Trusts
SEK	—	Swedish Krona
SFHR	—	Single Family Housing Revenue
SFMR	—	Single Family Mortgage Revenue
SGD	—	Singapore Dollar
SKK	—	Slovakian Koruna
SLMA	—	Student Loan Marketing Association
SPDR	—	Standard & Poor’s Depositary Receipts
STIT	—	Short-Term Investment Trust
TBA	—	To Be Announced
TRAN	—	Tax Revenue Anticipation Notes
TRY	—	Turkish Lira
USD	—	United States Dollar
XLCA	—	XL Capital Assurance
ZAR	—	South African Rand

This page is intentionally left blank.

More information about Wells Fargo Advantage Funds is available free upon request. To obtain literature, please write, e-mail, visit the Funds’ Web site, or call:

Wells Fargo Advantage Funds
P.O. Box 8266
Boston, MA 02266-8266
E-mail: wfaf@wellsfargo.com

Web site: www.wellsfargo.com/advantagefunds
Individual Investors: 1- 800-222-8222
Retail Investment Professionals: 1- 888-877-9275
Institutional Investment Professionals: 1- 866-765-0778

Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Advantage Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the Funds. The Funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA/SIPC, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED ■ NO BANK GUARANTEE ■ MAY LOSE VALUE


		WELLS FARGO ADVANTAGE VARIABLE TRUST FUNDS

		§		Wells Fargo Advantage VT Index Asset Allocation Fund
				(formerly Wells Fargo Advantage VT Asset Allocation Fund)

Reduce clutter. Save trees.


Contents

Letter to Shareholders			2

Performance Highlights			6

Fund Expenses			10

Portfolio of Investments			11

Financial Statements
Statement of Assets and Liabilities			25
Statement of Operations			26
Statements of Changes in Net Assets			27
Financial Highlights			28

Notes to Financial Statements			30

Report of Independent Registered Public Accounting Firm			37

Other Information			38

List of Abbreviations			42

NOT FDIC INSURED § NO BANK GUARANTEE § MAY LOSE VALUE

WELLS FARGO

INVESTMENT HISTORY


1932		Keystone creates one of the first mutual fund families.

1971		Wells Fargo & Company introduces one of the first institutional index funds.

1978		Wells Fargo applies Markowitz and Sharpe’s research on Modern Portfolio Theory to introduce one of the industry’s first Tactical Asset Allocation (TAA) models in institutional separately managed accounts.

1984		Wells Fargo Stagecoach Funds launches its first asset allocation fund.

1989		The Tactical Asset Allocation (TAA) Model is first applied to Wells Fargo’s asset allocation mutual funds.

1994		Wells Fargo introduces the LifePath Funds, one of the first suites of target date funds (now the *Wells Fargo Advantage Dow Jones Target Date Funds*^SM).

1996		Evergreen Investments and Keystone Funds merge.

1997		Wells Fargo launches *Wells Fargo Advantage WealthBuilder Portfolios*^SM, a fund-of-funds suite of products that includes the use of quantitative models to shift assets among investment styles.

1999		Norwest Advantage Funds and Stagecoach Funds are reorganized into Wells Fargo Funds after the merger of Norwest and Wells Fargo.

2002		Evergreen Retail and Evergreen Institutional companies form the umbrella asset management company, Evergreen Investments.

2005		The integration of Strong Funds with Wells Fargo Funds creates *Wells Fargo Advantage Funds*, resulting in one of the top 20 mutual fund companies in the United States.

2006		*Wells Fargo Advantage Funds* relaunches the target date product line as *Wells Fargo Advantage Dow Jones Target Date Funds*.

2010		The mergers and reorganizations of Evergreen and Wells Fargo Advantage mutual funds are completed, unifying the families under the brand of *Wells Fargo Advantage Funds.*

Wells Fargo Advantage Funds^®

Strength

Expertise

Partnership

The“Dow Jones Target Date Indexes“are a product of Dow Jones Indexes, a licensed trademark of CME Group Index Services LLC (“CME”). “Dow Jones” and “Dow Jones Target Date Indexes” are service marks of Dow Jones Trademark Holdings, LLC, and have been licensed for use for certain purposes by CME and sublicensed for use by Global Index Advisors, Inc., and Wells Fargo Funds Management, LLC. The Dow Jones Target Date Indexes are based in part on the Barclays Capital Bond Indexes, which are published by Barclays Capital Inc. The Wells Fargo Advantage Dow Jones Target Date Funds, based on the Dow Jones Target Date Indexes, are not sponsored, endorsed, sold, or promoted by Dow Jones, CME or Barclays Capital or any of their respective affiliates, and neither Dow Jones, CME nor Barclays Capital nor any of their respective affiliates makes any representation regarding the advisability of investing in such product(s) and/or about the quality, accuracy, and/or completeness of the Dow Jones Target Date Indexes or the Barclays Capital Bond Indexes. IN NO EVENT SHALL DOW JONES, CME, BARCLAYS CAPITAL, OR ANY OF THEIR LICENSORS HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.

NOT FDIC INSURED § NO BANK GUARANTEE § MAY LOSE VALUE

Not part of the annual report.

Wells Fargo Advantage Funds offers more than 120 mutual funds across a wide range of asset classes, representing over $236 billion in assets under management, as of December 31, 2010.


Equity Funds

Asia Pacific Fund	Enterprise Fund^†	Opportunity Fund^†
C&B Large Cap Value Fund	Equity Value Fund	Precious Metals Fund
C&B Mid Cap Value Fund	Global Opportunities Fund	Premier Large Company Growth Fund
Capital Growth Fund	Growth Fund	Small Cap Growth Fund
Classic Value Fund	Growth Opportunities Fund	Small Cap Opportunities Fund
Common Stock Fund	Health Care Fund	Small Cap Value Fund
Core Equity Fund	Index Fund	Small Company Growth Fund
Disciplined Global Equity Fund	International Equity Fund	Small Company Value Fund
Disciplined U.S. Core Fund	International Value Fund	Small/Mid Cap Core Fund
Disciplined Value Fund	Intrinsic Small Cap Value Fund	Small/Mid Cap Value Fund
Discovery Fund^†	Intrinsic Value Fund	Social Sustainability Fund^†
Diversified Equity Fund	Intrinsic World Equity Fund	Special Mid Cap Value Fund
Diversified International Fund	Large Cap Core Fund	Special Small Cap Value Fund
Diversified Small Cap Fund	Large Cap Growth Fund	Specialized Technology Fund
Emerging Growth Fund	Large Company Value Fund	Strategic Large Cap Growth Fund
Emerging Markets Equity Fund	Mid Cap Growth Fund	Traditional Small Cap Growth Fund
Endeavor Select Fund^†	Omega Growth Fund	Utility and Telecommunications Fund

Bond Funds

Adjustable Rate Government Fund	Inflation-Protected Bond Fund	Short-Term Bond Fund
California Limited-Term Tax-Free Fund	Intermediate Tax/AMT-Free Fund	Short-Term High Yield Bond Fund
California Tax-Free Fund	International Bond Fund	Short-Term Municipal Bond Fund
Colorado Tax-Free Fund	Minnesota Tax-Free Fund	Strategic Municipal Bond Fund
Government Securities Fund	Municipal Bond Fund	Total Return Bond Fund
High Income Fund	North Carolina Tax-Free Fund	Ultra Short-Term Income Fund
High Yield Bond Fund	Pennsylvania Tax-Free Fund	Ultra Short-Term Municipal Income Fund
Income Plus Fund	Short Duration Government Bond Fund	Wisconsin Tax-Free Fund

Asset Allocation Funds

Asset Allocation Fund	WealthBuilder Equity Portfolio^†	Target 2020 Fund^†
Conservative Allocation Fund	WealthBuilder Growth Allocation Portfolio^†	Target 2025 Fund^†
Diversified Capital Builder Fund	WealthBuilder Growth Balanced Portfolio^†	Target 2030 Fund^†
Diversified Income Builder Fund	WealthBuilder Moderate Balanced Portfolio^†	Target 2035 Fund^†
Growth Balanced Fund	WealthBuilder Tactical Equity Portfolio^†	Target 2040 Fund^†
Index Asset Allocation Fund	Target Today Fund^†	Target 2045 Fund^†
Moderate Balanced Fund	Target 2010 Fund^†	Target 2050 Fund^†
WealthBuilder Conservative Allocation Portfolio^†	Target 2015 Fund^†

Money Market Funds

100% Treasury Money Market Fund	Minnesota Money Market Fund	New Jersey Municipal Money Market Fund
California Municipal Money Market Fund	Money Market Fund	New York Municipal Money Market Fund
Cash Investment Money Market Fund	Municipal Cash Management Money Market Fund	Pennsylvania Municipal Money Market Fund
Government Money Market Fund	Municipal Money Market Fund	Prime Investment Money Market Fund
Heritage Money Market Fund^†	National Tax-Free Money Market Fund	Treasury Plus Money Market Fund

Variable Trust Funds¹

VT Core Equity Fund	VT Intrinsic Value Fund	VT Small Cap Value Fund
VT Discovery Fund^†	VT Omega Growth Fund	VT Total Return Bond Fund
VT Index Asset Allocation Fund	VT Opportunity Fund^†
VT International Equity Fund	VT Small Cap Growth Fund


1.		The Variable Trust Funds are generally available only through insurance company variable contracts.

†		In this report, the Wells Fargo Advantage Discovery Fund^SM, Wells Fargo Advantage Endeavor Select Fund^SM, Wells Fargo Advantage Enterprise Fund^SM, Wells Fargo Advantage Opportunity Fund^SM, Wells Fargo Advantage Social Sustainability Fund^SM, Wells Fargo Advantage WealthBuilder Conservative Allocation Portfolio^SM, Wells Fargo Advantage WealthBuilder Equity Portfolio^SM, Wells Fargo Advantage WealthBuilder Growth Allocation Portfolio^SM, Wells Fargo Advantage WealthBuilder Growth Balanced Portfolio^SM, Wells Fargo Advantage WealthBuilder Moderate Balanced Portfolio^SM, Wells Fargo Advantage WealthBuilder Tactical Equity Portfolio^SM, Wells Fargo Advantage Dow Jones Target Today Fund^SM, Wells Fargo Advantage Dow Jones Target 2010 Fund^SM, Wells Fargo Advantage Dow Jones Target 2015 Fund^SM, Wells Fargo Advantage Dow Jones Target 2020 Fund^SM, Wells Fargo Advantage Dow Jones Target 2025 Fund^SM, Wells Fargo Advantage Dow Jones Target 2030 Fund^SM, Wells Fargo Advantage Dow Jones Target 2035 Fund^SM, Wells Fargo Advantage Dow Jones Target 2040 Fund^SM, Wells Fargo Advantage Dow Jones Target 2045 Fund^SM, Wells Fargo Advantage Dow Jones Target 2050 Fund^SM, Wells Fargo Advantage Heritage Money Market Fund^SM, Wells Fargo Advantage VT Discovery Fund^SM, and Wells Fargo Advantage VT Opportunity Fund^SMare referred to as the Discovery Fund, Endeavor Select Fund, Enterprise Fund, Opportunity Fund, Social Sustainability Fund, WealthBuilder Conservative Allocation Portfolio, WealthBuilder Equity Portfolio, WealthBuilder Growth Allocation Portfolio, WealthBuilder Growth Balanced Portfolio, WealthBuilder Moderate Balanced Portfolio, WealthBuilder Tactical Equity Portfolio, Target Today Fund, Target 2010 Fund, Target 2015 Fund, Target 2020 Fund, Target 2025 Fund, Target 2030 Fund, Target 2035 Fund, Target 2040 Fund, Target 2045 Fund, Target 2050 Fund, Heritage Money Market Fund, VT Discovery Fund, and VT Opportunity Fund, respectively.

Not part of the annual report.


2 Wells Fargo Advantage VT Index Asset Allocation Fund		Letter to Shareholders

Karla M. Rabusch,
President
Wells Fargo Advantage Funds

The equity markets delivered strong full-year returns against the backdrop of a strengthening economy.

Dear Valued Shareholder:

We are pleased to provide you with this annual report for the Wells Fargo Advantage VT Index Asset Allocation Fund for the 12 months that ended December 31, 2010. The equity markets delivered strong full-year returns against the backdrop of a strengthening economy. However, the year was not without its share of macroeconomic challenges and market volatility, once again highlighting the value of a sound, well-diversified investment strategy. As always, we believe that such a strategy can enable investors to balance risks and opportunities as they pursue long-term financial goals in a dynamic market environment.

The economic recovery stayed on track.

Jobs and housing remained troublesome.

The Fed continued to do its part.


Letter to Shareholders		Wells Fargo Advantage VT Index Asset Allocation Fund 3

2010 was another solid year for equities.

Investors should keep a long-term perspective.

Along with more upbeat economic data, better-than-expected corporate earnings power played a role in driving stock prices higher.


4 Wells Fargo Advantage VT Index Asset Allocation Fund		Letter to Shareholders

Thank you for choosing Wells Fargo Advantage Funds. We appreciate your continued confidence in us and are committed to helping you meet your financial needs. If you have any questions about your investments, please contact your investment professional, call us at 1-800-222-8222, or visit wellsfargo.com/advantagefunds.

Sincerely,

Karla M. Rabusch
President
Wells Fargo Advantage Funds

This page is intentionally left blank.


6 Wells Fargo Advantage VT Index Asset Allocation Fund		Performance Highlights (Unaudited)

Wells Fargo Advantage VT Index Asset Allocation Fund

INVESTMENT OBJECTIVE

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

INVESTMENT ADVISER

Wells Fargo Funds Management, LLC

SUB-ADVISER

Wells Capital Management Incorporated

PORTFOLIO MANAGERS

Gregory T. Genung, CFA, CAIA
Jeffrey P. Mellas, CAIA

FUND INCEPTION

April 15, 1994

PERFORMANCE SUMMARY

12 MONTH TOTAL RETURN AS OF DECEMBER 31, 2010


Class 2	13.29	%
S&P 500^® Index¹	15.06	%
Barclays Capital 20+ Year U.S. Treasury Index²	9.38	%
Index Asset Allocation Composite Index³	14.01	%

The advisor has committed, through April 30, 2011, to waive fees and/or reimburse expenses to maintain the contractual expense cap at 1.00% for the Class 2 shares, excluding acquired fund fees and certain other expenses. Without these reductions, the Fund’s returns would have been lower. The Fund’s net expense ratio is 1.00% for the Class 2 shares. The Fund’s gross expense ratio is 1.07% for the Class 2 shares.


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

3.		The Index Asset Allocation Composite Index is weighted 60% in the S&P 500 Index and 40% in the Barclays Capital 20+ Year U.S. Treasury Index. You cannot invest directly in an index.


Performance Highlights (Unaudited)		Wells Fargo Advantage VT Index Asset Allocation Fund 7

Wells Fargo Advantage VT Index Asset Allocation Fund (continued)

MANAGER’S DISCUSSION

Fund Highlights

§		The Fund underperformed the Index Asset Allocation Composite Index and the S&P 500 Index for the 12-month period that ended December 31, 2010, but outperformed the Barclays Capital 20+ Year U.S. Treasury Index.

§		At the end of the period, the Fund was at a maximum equity overweighting, with an effective target allocation of 85% stocks and 15% bonds.

§		Because stocks outperformed bonds over the period, the Fund benefited from its equity overweight. Net of fees, however, the Fund underperformed. Because the Fund is an indexed portfolio, our goal is to have the Fund’s performance closely track that of the benchmark.

The performance of U.S. stocks over the 12-month period could best be described as volatile, with 3% swings in monthly performance in nine of the 12 months of 2010. Investors who increased their portfolio weight to equities over the past year were well rewarded, however, as the S&P 500 Index returned 15.06% for the year. The strong gains in 2010 came after the gains in 2009, and we believe they reflect the continued economic recovery in the U.S.

A large portion of U.S. gross domestic product (GDP) is accounted for by business investment and personal consumption; both were instrumental in the economic improvement we witnessed in 2010. Capital expenditures increased as companies perceived the economic recovery, their increasing capacity utilization, and their dwindling inventory levels as more than transitory. The Obama administration’s extension of the Bush-era tax cuts also removed a barrier of uncertainty for businesses, providing greater clarity on future personnel and investment costs. The employment picture improved as the number of initial jobless claimants and those continuing to claim unemployment benefits both trended downward while the number of employees on the payrolls at private companies and in the manufacturing industries improved to levels of two years ago. Consumer spending increased in line with rising confidence as shown by a University of Michigan survey. A second round of quantitative easing stimulus enacted by the Federal Reserve (Fed) helped abate the fear of a double-dip recession, which provided many Americans the comfort needed to make previously deferred purchases.

TEN LARGEST PORTFOLIO HOLDINGS⁵
(AS OF DECEMBER 31, 2010)


US Treasury Bond 4.63% 02/15/2040	3.73	%
US Treasury Bond 4.38% 05/15/2040	3.38	%
US Treasury Bond 4.38% 11/15/2039	3.38	%
US Treasury Bond 4.50% 08/15/2039	3.12	%
US Treasury Bond 3.88% 08/15/2040	2.87	%
US Treasury Bond 4.25% 05/15/2039	2.48	%
US Treasury Bond 4.25% 11/15/2040	2.24	%
US Treasury Bond 4.50% 02/15/2036	2.07	%
Exxon Mobil Corporation	1.79	%
US Treasury Bond 4.50% 05/15/2038	1.64	%


4.		The chart compares the performance of the Wells Fargo Advantage VT Index Asset Allocation Fund Class 2 for the most recent ten years of the Fund with the Index Asset Allocation Composite Index, S&P 500^® Index and the Barclays Capital 20+ Year U.S. Treasury Index. The chart assumes a hypothetical $10,000 investment and reflects all operating expenses of the Fund.

5.		The ten largest portfolio holdings are calculated based on the value of the securities divided by total investments of the Fund. Holdings are subject to change and may have changed since the date specified.


8 Wells Fargo Advantage VT Index Asset Allocation Fund		Performance Highlights (Unaudited)

Wells Fargo Advantage VT Index Asset Allocation Fund (continued)

In the end, interest rates remained anchored at historically low levels, which pushed investors toward riskier assets such as equities for higher returns. U.S. stocks finished 2010 with the best fourth-quarter performance since 1991, which came after the best September performance since 1939. These strong returns helped propel the S&P 500 Index to a level not seen since before the Lehman Brothers crisis in August 2008. All 10 sectors in the index contributed to the gain, with consumer discretionary stocks leading the way. For the year, the S&P 500 Index returned 15.06%, and the Barclays Capital 20+ Year Treasury Index returned 9.38%.

On a gross-of-fees basis, the Fund modestly outpaced the Index Asset Allocation Composite Index for the 12-month period. Net of fees, however, the Fund underperformed. Because the Fund is an indexed portfolio, our goal is to have the Fund’s performance closely track that of the benchmark.

In the underlying portfolio, the Fund invests a neutral allocation of 60% stocks and 40% bonds and employs futures contracts to tactically make adjustments to that allocation. The Tactical Asset Allocation (TAA) Model shifted to its maximum overweight equity position in late 2007, and we maintained that effective allocation of 85% stocks and 15% bonds throughout 2010. As confidence in the economic rebound expanded, many investors reallocated their portfolios away from bonds and back into equities. The outperformance of stocks relative to bonds aided the Fund’s performance when compared with the neutral benchmark allocation.

There were no changes to the Fund’s tactical allocation.

There were changes to the underlying indexes, and we made those adjustments congruently with the S&P 500 Index and the Barclays Capital 20+ Year U.S. Treasury Index throughout the year.

The TAA Model continues to favor stocks relative to bonds.

We believe that the U.S. economy will continue to recover and grow. In our view, corporate earnings should show steady improvement, interest rates should remain relatively low, and inflation should remain benign for the foreseeable future. We expect to see job creation progress with the advancement of the economic recovery, which, in turn, should boost personal consumption as more Americans find work. We believe that such a scenario would allow for price/earnings multiples to expand and stocks to further their rally. We see bond prices as more susceptible to a potential sell-off given the low interest-rate environment and the inverse relationship of fixed-rate bond prices to interest rates. Given our outlook, we plan to remain overweight stocks until such time that we see relative valuation between stocks and bonds return to more normal levels.


6.		Sector distribution is subject to change and is calculated based on the total long-term investments of the Fund.


Performance Highlights (Unaudited)		Wells Fargo Advantage VT Index Asset Allocation Fund 9

Wells Fargo Advantage VT Index Asset Allocation Fund (continued)

AVERAGE ANNUAL TOTAL RETURN (%) (AS OF DECEMBER 31, 2010)


												Expense Ratio⁷
	Inception Date		6 Months*			1 Year		5 Year		10 Year		Gross			Net⁸
Class 2		4/15/1994		17.35			13.29		2.27		2.43		1.07	%		1.00	%
S&P 500^® Index¹				23.27			15.06		2.29		1.41
Barclays Capital 20+ Year U.S. Treasury Index²				(4.80	)		9.38		5.03		6.44
Index Asset Allocation Composite Index³				11.84			14.01		4.16		4.07


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

Balanced funds may invest in stocks and bonds. Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Bond values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. In general, when interest rates rise, bond values fall and investors may lose principal value. The use of derivatives may reduce returns and/or increase volatility. Consult the Fund’s prospectus for additional information on these and other risks.


7.		Reflects the expense ratio as stated in the May 1, 2010 prospectus.

8.		The investment adviser has contractually committed through April 30, 2011 to waive fees and/or reimburse expenses maintain the Fund’s contractual expense cap at 1.00% for Class 2 shares, excluding acquired fund fees and certain other expenses. Without these reductions, the Fund’s returns would have been lower.


10 Wells Fargo Advantage VT Index Asset Allocation Fund		Fund Expenses (Unaudited)

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 July 1, 2010 to December 31, 2010.

Actual expenses

Hypothetical example for comparison purposes


	Beginning		Ending		Expenses
	Account Value		Account Value		Paid During		Net Annual
	07-01-2010		12-31-2010		the Period¹		Expense Ratio
Class 2
Actual	$	1,000.00	$	1,173.46	$	5.54		1.00	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.38	$	5.15		1.00	%


1.		Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period divided by 365 (to reflect the one-half year period).


Portfolio of Investments—December 31, 2010		Wells Fargo Advantage VT Index Asset Allocation Fund 11


Shares		Security Name	Value
Common Stocks: 60.45%

Consumer Discretionary: 6.39%

Auto Components: 0.15%
	3,672	Johnson Controls Incorporated	$	140,270
	1,322	The Goodyear Tire & Rubber Company†		15,666

				155,936


Automobiles: 0.38%
	20,403	Ford Motor Company†		342,566
	1,282	Harley-Davidson Incorporated		44,447

				387,013


Distributors: 0.04%
	857	Genuine Parts Company		43,998


Diversified Consumer Services: 0.06%
	692	Apollo Group Incorporated Class A†		27,327
	339	DeVry Incorporated		16,265
	1,680	H&R Block Incorporated		20,009

				63,601


Hotels, Restaurants & Leisure: 1.04%
	2,345	Carnival Corporation		108,128
	753	Darden Restaurants Incorporated		34,969
	1,623	International Game Technology		28,711
	1,567	Marriott International Incorporated Class A		65,093
	5,753	McDonald’s Corporation		441,600
	4,035	Starbucks Corporation«		129,645
	1,038	Starwood Hotels & Resorts Worldwide Incorporated		63,090
	952	Wyndham Worldwide Corporation«		28,522
	411	Wynn Resorts Limited«		42,678
	2,551	Yum! Brands Incorporated		125,127

				1,067,563


Household Durables: 0.25%
	1,528	D.R. Horton Incorporated«		18,229
	830	Fortune Brands Incorporated		50,008
	378	Harman International Industries Incorporated†		17,501
	797	Leggett & Platt Incorporated«		18,140
	866	Lennar Corporation«		16,238
	1,580	Newell Rubbermaid Incorporated«		28,724
	1,831	Pulte Homes Incorporated†«		13,769
	903	Stanley Black & Decker Incorporated		60,384
	413	Whirlpool Corporation«		36,687

				259,680


Internet & Catalog Retail: 0.47%
	1,930	Amazon.com Incorporated†		347,400
	1,101	Expedia Incorporated		27,624
	267	Priceline.com Incorporated†		106,680
				481,704


12 Wells Fargo Advantage VT Index Asset Allocation Fund		Portfolio of Investments—December 31, 2010


Shares		Security Name	Value
Leisure Equipment & Products: 0.08%
	741	Hasbro Incorporated	$	34,960
	1,954	Mattel Incorporated		49,690

				84,650


Media: 1.89%
	1,307	Cablevision Systems Corporation New York Group Class A		44,229
	3,707	CBS Corporation Class B		70,618
	15,194	Comcast Corporation Class A		333,812
	4,540	DIRECTV Group Incorporated†		181,282
	1,548	Discovery Communications Incorporated Class C†«		64,552
	1,301	Gannett Company Incorporated		19,632
	2,661	Interpublic Group of Companies Incorporated†		28,260
	1,671	McGraw-Hill Companies Incorporated		60,841
	198	Meredith Corporation«		6,861
	12,436	News Corporation Class A		181,068
	1,640	Omnicom Group Incorporated«		75,112
	490	Scripps Networks Interactive Incorporated		25,358
	1,937	Time Warner Cable Incorporated		127,900
	6,040	Time Warner Incorporated		194,307
	3,292	Viacom Incorporated Class B		130,396
	10,311	Walt Disney Company		386,766
	29	Washington Post Company Class B		12,746

				1,943,740


Multiline Retail: 0.51%
	411	Big Lots Incorporated†«		12,519
	685	Family Dollar Stores Incorporated		34,051
	1,287	JCPenney Company Incorporated		41,583
	1,592	Kohl’s Corporation†«		86,509
	2,306	Macy’s Incorporated		58,342
	916	Nordstrom Incorporated		38,820
	239	Sears Holdings Corporation†«		17,626
	3,856	Target Corporation		231,861

				521,311


Specialty Retail: 1.18%
	478	Abercrombie & Fitch Company Class A		27,547
	346	AutoNation Incorporated†		9,757
	148	AutoZone Incorporated†		40,343
	1,411	Bed Bath & Beyond Incorporated†		69,351
	1,798	Best Buy Company Incorporated		61,653
	1,224	CarMax Incorporated†«		39,021
	824	GameStop Corporation Class A†«		18,853
	2,392	Gap Incorporated		52,959
	8,924	Home Depot Incorporated«		312,875
	1,440	Limited Brands Incorporated		44,251
	7,515	Lowe’s Companies Incorporated		188,476
	760	O’Reilly Automotive Incorporated†		45,919
	619	RadioShack Corporation«		11,445
	655	Ross Stores Incorporated		41,429
	3,938	Staples Incorporated«		89,668
	688	Tiffany & Company		42,842
	2,155	TJX Companies Incorporated		95,660
	701	Urban Outfitters Incorporated†«		25,103

				1,217,152


Portfolio of Investments—December 31, 2010		Wells Fargo Advantage VT Index Asset Allocation Fund 13


Shares		Security Name	Value
Textiles, Apparel & Luxury Goods: 0.34%
	1,614	Coach Incorporated«	$	89,270
	2,081	Nike Incorporated Class B		177,759
	352	Polo Ralph Lauren Corporation		39,044
	472	VF Corporation«		40,677

				346,750


Consumer Staples: 6.43%

Beverages: 1.54%
	565	Brown-Forman Corporation Class B		39,335
	1,844	Coca-Cola Enterprises Incorporated		46,155
	970	Constellation Brands Incorporated Class A†		21,486
	1,236	Dr Pepper Snapple Group Incorporated		43,458
	861	Molson Coors Brewing Company		43,214
	8,630	PepsiCo Incorporated		563,798
	12,645	The Coca-Cola Company		831,662

				1,589,108


Food & Staples Retailing: 1.43%
	2,354	Costco Wholesale Corporation«		169,982
	7,399	CVS Caremark Corporation		257,263
	3,472	Kroger Company«		77,634
	2,030	Safeway Incorporated«		45,655
	1,155	SUPERVALU Incorporated«		11,123
	3,186	Sysco Corporation		93,668
	10,668	Wal-Mart Stores Incorporated		575,325
	5,041	Walgreen Company		196,397
	800	Whole Foods Market Incorporated		40,472

				1,467,519


Food Products: 1.05%
	3,479	Archer Daniels Midland Company		104,648
	1,042	Campbell Soup Company«		36,210
	2,394	ConAgra Foods Incorporated		54,057
	992	Dean Foods Company†«		8,769
	3,486	General Mills Incorporated		124,067
	1,746	H.J. Heinz Company«		86,357
	377	Hormel Foods Corporation«		19,325
	650	JM Smucker Company«		42,673
	1,383	Kellogg Company		70,644
	9,512	Kraft Foods Incorporated Class A		299,723
	723	McCormick & Company Incorporated«		33,641
	1,114	Mead Johnson & Company		69,347
	3,481	Sara Lee Corporation		60,952
	842	The Hershey Company«		39,700
	1,622	Tyson Foods Incorporated Class A«		27,931

				1,078,044


Household Products: 1.34%
	759	Clorox Company		48,030
	2,628	Colgate-Palmolive Company		211,212
	2,220	Kimberly-Clark Corporation		139,949
	15,243	Procter & Gamble Company		980,582

				1,379,773


14 Wells Fargo Advantage VT Index Asset Allocation Fund		Portfolio of Investments—December 31, 2010


Shares		Security Name	Value
Personal Products: 0.11%
	2,337	Avon Products Incorporated	$	67,913
	618	Estee Lauder Companies Incorporated Class A«		49,873

				117,786


Tobacco: 0.96%
	11,369	Altria Group Incorporated		279,905
	814	Lorillard Incorporated		66,797
	9,880	Philip Morris International		578,276
	1,841	Reynolds American Incorporated		60,053

				985,031


Energy: 7.27%

Energy Equipment & Services: 1.31%
	2,348	Baker Hughes Incorporated		134,235
	1,320	Cameron International Corporation†«		66,964
	378	Diamond Offshore Drilling Incorporated		25,277
	651	FMC Technologies Incorporated†«		57,880
	4,953	Halliburton Company«		202,231
	577	Helmerich & Payne Incorporated«		27,973
	1,554	Nabors Industries Limited†		36,457
	2,285	National Oilwell Varco Incorporated		153,666
	687	Rowan Companies Incorporated†«		23,983
	7,430	Schlumberger Limited		620,405

				1,349,071


Oil, Gas & Consumable Fuels: 5.96%
	2,698	Anadarko Petroleum Corporation		205,480
	2,081	Apache Corporation		248,118
	566	Cabot Oil & Gas Corporation«		21,423
	3,561	Chesapeake Energy Corporation		92,266
	10,959	Chevron Corporation		1,000,009
	8,000	ConocoPhillips		544,800
	1,229	CONSOL Energy Incorporated		59,901
	2,176	Denbury Resources Incorporated†		41,540
	2,352	Devon Energy Corporation		184,656
	3,834	El Paso Corporation		52,756
	1,383	EOG Resources Incorporated		126,420
	812	EQT Corporation«		36,410
	27,460	Exxon Mobil Corporation		2,007,875
	1,633	Hess Corporation		124,990
	3,865	Marathon Oil Corporation		143,121
	556	Massey Energy Company		29,829
	1,047	Murphy Oil Corporation		78,054
	729	Newfield Exploration Company†«		52,568
	953	Noble Energy Incorporated		82,034
	4,425	Occidental Petroleum Corporation†		434,093
	1,468	Peabody Energy Corporation		93,923
	632	Pioneer Natural Resources Company«		54,870
	956	QEP Resources Incorporated		34,712
	871	Range Resources Corporation«		39,178
	1,888	Southwestern Energy Company†		70,668
	3,530	Spectra Energy Corporation«		88,215
	656	Sunoco Incorporated		26,443
	779	Tesoro Petroleum Corporation«		14,443


Portfolio of Investments—December 31, 2010		Wells Fargo Advantage VT Index Asset Allocation Fund 15


Shares		Security Name	Value
Oil, Gas & Consumable Fuels (continued)
	3,184	The Williams Companies Incorporated	$	78,708
	3,083	Valero Energy Corporation«		71,279

				6,138,782


Financials: 10.00%

Capital Markets: 1.53%
	1,350	Ameriprise Financial Incorporated		77,693
	6,755	Bank of New York Mellon Corporation«		204,001
	5,400	Charles Schwab Corporation		92,394
	1,082	ETRADE Financial Corporation†*		17,312
	498	Federated Investors Incorporated Class B		13,033
	792	Franklin Resources Incorporated		88,078
	2,784	Goldman Sachs Group Incorporated		468,157
	2,516	INVESCO Limited		60,535
	1,000	Janus Capital Group Incorporated«		12,970
	833	Legg Mason Incorporated«		30,213
	8,238	Morgan Stanley		224,156
	1,318	Northern Trust Corporation«		73,030
	2,733	State Street Corporation		126,647
	1,396	T. Rowe Price Group Incorporated«		90,098

				1,578,317


Commercial Banks: 1.81%
	3,777	Branch Banking & Trust Corporation«		99,297
	961	Comerica Incorporated«		40,593
	4,336	Fifth Third Bancorp		63,652
	1,421	First Horizon National Corporation†		16,743
	4,701	Huntington Bancshares Incorporated		32,296
	4,794	KeyCorp		42,427
	650	M&T Bank Corporation		56,583
	2,875	Marshall & Ilsley Corporation		19,895
	2,863	PNC Financial Services Group Incorporated		173,841
	6,840	Regions Financial Corporation		47,880
	2,722	SunTrust Banks Incorporated«		80,326
	10,446	US Bancorp		281,729
	28,583	Wells Fargo & Company(l)		885,787
	969	Zions Bancorporation		23,479

				1,864,528


Consumer Finance: 0.72%
	5,703	American Express Company		244,773
	2,488	Capital One Financial Corporation«		105,889
	2,965	Discover Financial Services«		54,941
	527	MasterCard Incorporated		118,106
	2,644	SLM Corporation†		33,288
	2,653	Visa Incorporated Class A		186,718

				743,715


Diversified Financial Services: 3.33%
	54,920	Bank of America Corporation		732,633
	9,423	Berkshire Hathaway Incorporated Class B†		754,877
	158,198	Citigroup Incorporated†		748,277
	364	CME Group Incorporated		117,117
	398	InterContinental Exchange Incorporated†«		47,422


16 Wells Fargo Advantage VT Index Asset Allocation Fund		Portfolio of Investments—December 31, 2010


Shares		Security Name	Value
Diversified Financial Services (continued)
	21,288	JPMorgan Chase & Company	$	903,037
	1,073	Leucadia National Corporation		31,310
	1,109	Moody’s Corporation		29,433
	810	NASDAQ Stock Market Incorporated†		19,205
	1,421	NYSE Euronext Incorporated		42,602

				3,425,913


Insurance: 1.63%
	1,848	ACE Limited		115,038
	2,566	AFLAC Incorporated		144,799
	2,930	Allstate Corporation		93,408
	762	American International Group Incorporated†«		43,906
	1,796	AON Corporation		82,634
	580	Assurant Incorporated		22,342
	1,660	Chubb Corporation		99,002
	886	Cincinnati Financial Corporation«		28,077
	2,666	Genworth Financial Incorporated†		35,031
	2,420	Hartford Financial Services Group Incorporated		64,106
	1,724	Lincoln National Corporation		47,944
	1,722	Loews Corporation		67,003
	2,959	Marsh & McLennan Companies Incorporated«		80,899
	4,935	MetLife Incorporated«		219,311
	1,744	Principal Financial Group Incorporated«		56,785
	2,643	Prudential Financial Incorporated		155,171
	3,613	The Progressive Corporation		71,790
	2,499	The Travelers Companies Incorporated		139,219
	435	Torchmark Corporation		25,987
	1,727	UnumProvident Corporation		41,828
	1,760	XL Group plc		38,403

				1,672,683


Real Estate Investment Trusts (REIT): 0.89%
	637	Apartment Investment & Management Company Class A		16,460
	464	AvalonBay Communities Incorporated		52,223
	762	Boston Properties Incorporated		65,608
	1,549	Equity Residential		80,471
	1,984	HCP Incorporated		72,991
	790	Health Care REIT Incorporated		37,636
	3,626	Host Hotels & Resorts Incorporated«		64,797
	2,210	Kimco Realty Corporation«		39,868
	880	Plum Creek Timber Company«		32,956
	3,098	ProLogis		44,735
	760	Public Storage Incorporated		77,079
	1,595	Simon Property Group Incorporated		158,687
	855	Ventas Incorporated«		44,870
	885	Vornado Realty Trust		73,747
	2,918	Weyerhaeuser Company		55,238

				917,366


Real Estate Management & Development: 0.03%
	1,582	CB Richard Ellis Group Incorporated Class A†		32,399


Thrifts & Mortgage Finance: 0.06%
	2,867	Hudson City Bancorp Incorporated		36,526
	2,009	People’s United Financial Incorporated«		28,146

				64,672


Portfolio of Investments—December 31, 2010		Wells Fargo Advantage VT Index Asset Allocation Fund 17


Shares		Security Name	Value
Health Care: 6.52%

Biotechnology: 0.78%
	5,145	Amgen Incorporated†	$	282,461
	1,297	Biogen Idec Incorporated†«		86,964
	2,562	Celgene Corporation†«		151,517
	409	Cephalon Incorporated†«		25,243
	1,410	Genzyme Corporation†		100,392
	4,421	Gilead Sciences Incorporated†		160,217

				806,794


Health Care Equipment & Supplies: 0.97%
	3,173	Baxter International Incorporated		160,617
	1,252	Becton Dickinson & Company«		105,819
	8,277	Boston Scientific Corporation†		62,657
	505	C.R. Bard Incorporated		46,344
	1,214	CareFusion Corporation†		31,200
	773	DENTSPLY International Incorporated«		26,413
	909	Hospira Incorporated†«		50,622
	213	Intuitive Surgical Incorporated†«		54,901
	5,880	Medtronic Incorporated		218,089
	1,866	St. Jude Medical Incorporated†		79,772
	1,859	Stryker Corporation«		99,828
	1,075	Zimmer Holdings Incorporated†		57,706

				993,968


Health Care Providers & Services: 1.17%
	2,178	Aetna Incorporated		66,451
	1,504	AmerisourceBergen Corporation		51,316
	1,900	Cardinal Health Incorporated		72,789
	1,475	CIGNA Corporation		54,074
	808	Coventry Health Care Incorporated†		21,331
	529	DaVita Incorporated†		36,760
	2,870	Express Scripts Incorporated†		155,124
	916	Humana Incorporated†		50,142
	553	Laboratory Corporation of America Holdings†		48,620
	1,378	McKesson Corporation		96,984
	2,311	Medco Health Solutions Incorporated†		141,595
	526	Patterson Companies Incorporated		16,111
	770	Quest Diagnostics Incorporated		41,557
	2,644	Tenet Healthcare Corporation†		17,688
	5,989	UnitedHealth Group Incorporated		216,263
	2,143	WellPoint Incorporated†		121,851

				1,208,656


Health Care Technology: 0.04%
	388	Cerner Corporation†«		36,759


Life Sciences Tools & Services: 0.27%
	1,016	Life Technologies Corporation†		56,388
	642	PerkinElmer Incorporated		16,576
	2,164	Thermo Fisher Scientific Incorporated†		119,799
	647	Varian Medical Systems Incorporated†«		44,824
	497	Waters Corporation†		38,622

				276,209


18 Wells Fargo Advantage VT Index Asset Allocation Fund		Portfolio of Investments—December 31, 2010


Shares		Security Name	Value
Pharmaceuticals: 3.29%
	8,418	Abbott Laboratories	$	403,306
	1,674	Allergan Incorporated«		114,954
	9,321	Bristol-Myers Squibb Company		246,820
	5,526	Eli Lilly & Company		193,631
	1,555	Forest Laboratories Incorporated†		49,729
	14,955	Johnson & Johnson		924,967
	16,777	Merck & Company Incorporated		604,643
	2,370	Mylan Laboratories Incorporated†		50,078
	43,619	Pfizer Incorporated		763,769
	682	Watson Pharmaceuticals Incorporated†		35,225

				3,387,122


Industrials: 6.62%

Aerospace & Defense: 1.60%
	3,994	Boeing Company		260,648
	2,057	General Dynamics Corporation		145,965
	682	Goodrich Corporation		60,064
	4,248	Honeywell International Incorporated†		225,824
	999	ITT Corporation«		52,058
	616	L-3 Communications Holdings Incorporated«		43,422
	1,608	Lockheed Martin Corporation«		112,415
	1,590	Northrop Grumman Corporation«		103,000
	776	Precision Castparts Corporation«		108,027
	1,985	Raytheon Company		91,985
	854	Rockwell Collins Incorporated		49,754
	5,028	United Technologies Corporation		395,804

				1,648,966


Air Freight & Logistics: 0.67%
	904	C.H. Robinson Worldwide Incorporated«		72,492
	1,156	Expeditors International of Washington Incorporated		63,118
	1,713	FedEx Corporation		159,326
	5,385	United Parcel Service Incorporated Class B«		390,843

				685,779


Airlines: 0.05%
	4,068	Southwest Airlines Company«		52,803


Building Products: 0.02%
	1,952	Masco Corporation«		24,712


Commercial Services & Supplies: 0.36%
	587	Avery Dennison Corporation«		24,854
	688	Cintas Corporation		19,236
	271	Dun & Bradstreet Corporation«		22,246
	672	Equifax Incorporated«		23,923
	1,089	Iron Mountain Incorporated		27,236
	1,107	Pitney Bowes Incorporated		26,767
	1,674	Republic Services Incorporated		49,986
	801	Robert Half International Incorporated«		24,511
	1,123	RR Donnelley & Sons Company«		19,619
	465	Stericycle Incorporated†«		37,628
	2,591	Waste Management Incorporated†«		95,530

				371,536


Portfolio of Investments—December 31, 2010		Wells Fargo Advantage VT Index Asset Allocation Fund 19


Shares		Security Name	Value
Construction & Engineering: 0.12%
	973	Fluor Corporation	$	64,471
	686	Jacobs Engineering Group Incorporated†		31,453
	1,173	Quanta Services Incorporated†«		23,366

				119,290


Electrical Equipment: 0.32%
	4,098	Emerson Electric Company«		234,283
	772	Rockwell Automation Incorporated«		55,360
	515	Roper Industries Incorporated		39,361

				329,004


Industrial Conglomerates: 1.50%
	3,892	3M Company		335,880
	58,022	General Electric Company		1,061,222
	1,497	Textron Incorporated		35,389
	2,665	Tyco International Limited		110,438

				1,542,929


Machinery: 1.39%
	3,456	Caterpillar Incorporated		323,689
	1,077	Cummins Incorporated		118,481
	2,920	Danaher Corporation		137,736
	2,308	Deere & Company		191,679
	1,017	Dover Corporation		59,444
	916	Eaton Corporation		92,983
	304	Flowserve Corporation		36,243
	2,700	Illinois Tool Works Incorporated		144,180
	1,764	Ingersoll-Rand plc		83,067
	1,986	Paccar Incorporated		114,036
	627	Pall Corporation		31,087
	878	Parker Hannifin Corporation		75,771
	316	Snap-On Incorporated«		17,879

				1,426,275


Road & Rail: 0.50%
	2,037	CSX Corporation		131,611
	1,978	Norfolk Southern Corporation		124,258
	281	Ryder System Incorporated«		14,792
	2,685	Union Pacific Corporation		248,792

				519,453


Trading Companies & Distributors: 0.09%
	802	Fastenal Company«		48,048
	315	W.W. Grainger Incorporated«		43,505

				91,553


Information Technology: 11.09%

Communications Equipment: 1.35%
	30,184	Cisco Systems Incorporated†«		610,622
	440	F5 Networks Incorporated†		57,270
	698	Harris Corporation«		31,619
	1,212	JDS Uniphase Corporation†		17,550
	2,849	Juniper Networks Incorporated†		105,185
	12,794	Motorola Incorporated†		116,042


20 Wells Fargo Advantage VT Index Asset Allocation Fund		Portfolio of Investments—December 31, 2010


Shares		Security Name	Value
Communications Equipment (continued)
	8,809	QUALCOMM Incorporated	$	435,957
	2,009	Tellabs Incorporated		13,621

				1,387,866


Computers & Peripherals: 2.67%
	4,995	Apple Incorporated†		1,611,187
	9,145	Dell Incorporated†		123,915
	11,220	EMC Corporation†«		256,938
	12,349	Hewlett-Packard Company		519,893
	427	Lexmark International Incorporated†		14,868
	1,968	NetApp Incorporated†«		108,161
	575	QLogic Corporation†«		9,787
	1,277	SanDisk Corporation†		63,671
	1,251	Western Digital Corporation†		42,409

				2,750,829


Electronic Equipment & Instruments: 0.35%
	1,886	Agilent Technologies Incorporated†		78,137
	950	Amphenol Corporation Class A«		50,141
	8,510	Corning Incorporated		164,413
	863	FLIR Systems Incorporated†«		25,674
	1,067	Jabil Circuit Incorporated		21,436
	752	Molex Incorporated		17,085

				356,886


Internet Software & Services: 1.20%
	992	Akamai Technologies Incorporated†		46,674
	6,247	eBay Incorporated†		173,854
	1,358	Google Incorporated Class A†		806,611
	708	Monster Worldwide Incorporated†«		16,730
	236	Netflix Incorporated†		41,465
	936	VeriSign Incorporated		30,579
	7,098	Yahoo! Incorporated†		118,040

				1,233,953


IT Services: 1.52%
	2,685	Automatic Data Processing Incorporated		124,262
	1,652	Cognizant Technology Solutions Corporation Class A†		121,075
	841	Computer Sciences Corporation		41,714
	1,442	Fidelity National Information Services Incorporated		39,496
	809	Fiserv Incorporated†		47,375
	6,765	International Business Machines Corporation		992,831
	1,752	Paychex Incorporated«		54,154
	1,599	SAIC Incorporated†«		25,360
	912	Teradata Corporation†		37,538
	888	Total System Services Incorporated«		13,657
	3,571	Western Union Company«		66,313

				1,563,775


Office Electronics: 0.08%
	7,554	Xerox Corporation		87,022


Semiconductors & Semiconductor Equipment: 1.52%
	3,118	Advanced Micro Devices Incorporated†«		25,505
	1,702	Altera Corporation«		60,557


Portfolio of Investments—December 31, 2010		Wells Fargo Advantage VT Index Asset Allocation Fund 21


Shares		Security Name	Value
Semiconductors & Semiconductor Equipment (continued)
	1,626	Analog Devices Incorporated	$	61,251
	7,275	Applied Materials Incorporated«		102,214
	2,480	Broadcom Corporation Class A«		108,004
	294	First Solar Incorporated†		38,261
	30,376	Intel Corporation†		638,807
	909	KLA-Tencor Corporation«		35,124
	1,227	Linear Technology Corporation«		42,442
	3,357	LSI Logic Corporation†		20,108
	1,238	MEMC Electronic Materials Incorporated†		13,940
	1,017	Microchip Technology Incorporated«		34,792
	4,665	Micron Technology Incorporated†«		37,413
	1,304	National Semiconductor Corporation		17,943
	491	Novellus Systems Incorporated†		15,869
	3,163	NVIDIA Corporation†«		48,710
	987	Teradyne Incorporated†«		13,857
	6,394	Texas Instruments Incorporated		207,805
	1,411	Xilinx Incorporated«		40,891

				1,563,493


Software: 2.40%
	2,770	Adobe Systems Incorporated†		85,261
	1,238	Autodesk Incorporated†«		47,292
	967	BMC Software Incorporated†		45,584
	2,089	CA Incorporated		51,055
	1,022	Citrix Systems Incorporated†		69,915
	1,192	Compuware Corporation†		13,911
	1,807	Electronic Arts Incorporated†«		29,599
	1,522	Intuit Incorporated†«		75,035
	839	McAfee Incorporated†		38,854
	40,999	Microsoft Corporation		1,144,692
	1,914	Novell Incorporated†		11,331
	21,079	Oracle Corporation		659,773
	1,037	Red Hat Incorporated†		47,339
	644	Salesforce.com Incorporated†«		85,008
	4,227	Symantec Corporation†		70,760

				2,475,409


Materials: 2.26%

Chemicals: 1.28%
	1,166	Air Products & Chemicals Incorporated		106,048
	407	Airgas Incorporated		25,421
	387	CF Industries Holdings Incorporated		52,303
	6,320	Dow Chemical Company		215,765
	4,971	E.I. du Pont de Nemours & Company		247,953
	392	Eastman Chemical Company		32,959
	1,264	Ecolab Incorporated		63,731
	395	FMC Corporation«		31,557
	435	International Flavors & Fragrances Incorporated		24,182
	2,921	Monsanto Company		203,418
	887	PPG Industries Incorporated		74,570
	1,668	Praxair Incorporated«		159,244
	487	Sherwin-Williams Company		40,786
	660	Sigma-Aldrich Corporation«		43,930

				1,321,867


22 Wells Fargo Advantage VT Index Asset Allocation Fund		Portfolio of Investments—December 31, 2010


Shares		Security Name	Value
Construction Materials: 0.03%
	699	Vulcan Materials Company«	$	31,008


Containers & Packaging: 0.10%
	480	Ball Corporation		32,664
	589	Bemis Company Incorporated«		19,237
	891	Owens-Illinois Incorporated†		27,354
	869	Sealed Air Corporation«		22,116
				101,371

Metals & Mining: 0.76%
	598	AK Steel Holding Corporation		9,789
	5,562	Alcoa Incorporated«		85,599
	536	Allegheny Technologies Incorporated«		29,576
	737	Cliffs Natural Resources Incorporated		57,493
	2,564	Freeport-McMoRan Copper & Gold Incorporated Class B		307,911
	2,685	Newmont Mining Corporation		164,940
	1,719	Nucor Corporation«		75,327
	490	Titanium Metals Corporation†		8,418
	782	United States Steel Corporation		45,684

				784,737


Paper & Forest Products: 0.09%
	2,382	International Paper Company		64,886
	916	MeadWestvaco Corporation«		23,963

				88,849


Telecommunication Services: 1.88%

Diversified Telecommunication Services: 1.69%
	32,184	AT&T Incorporated		945,566
	1,651	CenturyTel Incorporated		76,227
	5,412	Frontier Communications Corporation«		52,659
	9,490	Qwest Communications International Incorporated		72,219
	15,393	Verizon Communications Incorporated		550,762
	2,634	Windstream Corporation		36,718

				1,734,151


Wireless Telecommunication Services: 0.19%
	2,173	American Tower Corporation Class A†		112,214
	1,428	MetroPCS Communications Incorporated†«		18,036
	16,266	Sprint Nextel Corporation†		68,805

				199,055


Utilities: 1.99%

Electric Utilities: 1.15%
	925	Allegheny Energy Incorporated		22,422
	2,615	American Electric Power Company Incorporated		94,088
	1,582	Consolidated Edison Incorporated«		78,420
	7,213	Duke Energy Corporation«		128,464
	1,774	Edison International		68,476
	985	Entergy Corporation		69,768
	3,601	Exelon Corporation		149,946
	1,660	FirstEnergy Corporation«		61,453
	2,264	Nextera Energy Incorporated		117,705


Portfolio of Investments—December 31, 2010		Wells Fargo Advantage VT Index Asset Allocation Fund 23


Shares		Security Name						Value
Electric Utilities (continued)
	960	Northeast Utilities						$	30,605
	1,222	Pepco Holdings Incorporated							22,302
	592	Pinnacle West Capital Corporation							24,538
	2,631	PPL Corporation							69,248
	1,595	Progress Energy Incorporated							69,351
	4,567	The Southern Company«							174,596

									1,181,382


Gas Utilities: 0.04%
	247	Nicor Incorporated							12,330
	579	ONEOK Incorporated«							32,117

									44,447


Independent Power Producers & Energy Traders: 0.10%
	3,605	AES Corporation†							43,909
	1,088	Constellation Energy Group Incorporated							33,325
	1,346	NRG Energy Incorporated†							26,301

									103,535


Multi-Utilities: 0.70%
	1,306	Ameren Corporation							36,816
	2,304	CenterPoint Energy Incorporated							36,219
	1,331	CMS Energy Corporation							24,757
	3,161	Dominion Resources Incorporated†«							135,038
	920	DTE Energy Company							41,694
	422	Integrys Energy Group Incorporated							20,471
	1,515	NiSource Incorporated«							26,694
	2,135	PG&E Corporation							102,138
	2,755	Public Service Enterprise Group Incorporated«							87,637
	616	SCANA Corporation«							25,010
	1,307	Sempra Energy							68,591
	1,169	TECO Energy Incorporated«							20,808
	636	Wisconsin Energy Corporation							37,435
	2,505	Xcel Energy Incorporated							58,993

									722,301


Total Common Stocks (Cost $53,734,629)									62,231,549


Principal			Interest Rate			Maturity Date
US Treasury Securities: 34.69%

US Treasury Bonds: 34.69%
$	1,492,000	US Treasury Bond		5.38	%		02/15/2031		1,741,677
	2,242,000	US Treasury Bond		4.50			02/15/2036		2,321,170
	1,335,000	US Treasury Bond		4.75			02/15/2037		1,434,708
	1,396,000	US Treasury Bond		5.00			05/15/2037		1,557,630
	1,341,000	US Treasury Bond		4.38			02/15/2038		1,355,248
	1,787,000	US Treasury Bond		4.50			05/15/2038		1,841,168
	1,914,000	US Treasury Bond		3.50			02/15/2039		1,649,330
	2,824,000	US Treasury Bond		4.25			05/15/2039		2,782,081
	3,413,000	US Treasury Bond		4.50			08/15/2039		3,504,724
	3,776,000	US Treasury Bond		4.38			11/15/2039		3,796,058
	3,995,000	US Treasury Bond		4.63			02/15/2040		4,184,763
	3,782,000	US Treasury Bond		4.38			05/15/2040		3,800,305


24 Wells Fargo Advantage VT Index Asset Allocation Fund		Portfolio of Investments—December 31, 2010


Principal		Security Name			Interest Rate			Maturity Date		Value
US Treasury Bonds (continued)
$	3,503,000	US Treasury Bond				3.88	%		08/15/2040	$	3,226,592
	2,555,000	US Treasury Bond				4.25			11/15/2040		2,513,481

Total US Treasury Securities (Cost $36,334,088)											35,708,935


Short-Term Investments: 13.92%

Corporate Bonds and Notes: 0.94%
	451,139	Gryphon Funding Limited(v)(a)(i)				0.00			08/05/2011		183,253
	1,400,553	VFNC Corporation(v)±††(a)(i)				0.26			09/29/2011		784,309

											967,562


Shares					Yield

Investment Companies: 10.06%
	1,556,493	Wells Fargo Advantage Cash Investment Money Market Fund(l)(u)				0.14					1,556,493
	8,798,198	Wells Fargo Securities Lending Cash Investments, LLC(v)(l)(u)				0.27					8,798,198

											10,354,691

Principal					Interest Rate

US Treasury Bills: 2.92%
$	1,560,000	US Treasury Bill^#				0.15			02/03/2011		1,559,745
	1,450,000	US Treasury Bill^#				0.15			05/05/2011		1,449,263

											3,009,008


Total Short-Term Investments (Cost $13,980,429)											14,331,261


Total Investments in Securities (Cost $104,049,146)*			109.06	%							112,271,745

Other Assets and Liabilities, Net			(9.06	)							(9,326,170	)


Total Net Assets			100.00	%						$	102,945,575


†		Non-income earning securities.

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

(l)		Investment in an affiliate. The total cost of affiliated investments is $11,555,740.

#		Security pledged as collateral for futures transactions.

(v)		Security represents investment of cash collateral received from securities on loan.

±		Variable rate investments.

††		Securities that may be resold to “qualified institutional buyers” under Rule 144A or securities offered pursuant to Section 4(2) of the Securities Act of 1933, as amended.

(a)		Security is fair valued by the Management Valuation Team, and in certain instances by the Board of Trustees, in accordance with procedures approved by the Board of Trustees.

(i)		Illiquid security for which the designation as illiquid is unaudited.

(u)		Rate shown is the 7-day annualized yield at period end.

^		Zero coupon security. Rate represents yield to maturity.

*		Cost for federal income tax purposes is $106,598,024 and net unrealized appreciation (depreciation) consists of:


Gross unrealized appreciation	$	18,467,301
Gross unrealized depreciation		(12,793,580	)


Net unrealized appreciation	$	5,673,721

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


Statement of Assets and Liabilities—December 31, 2010		Wells Fargo Advantage VT Index Asset Allocation Fund 25


Assets
Investments
In unaffiliated securities (including securities on loan), at value	$	101,031,267
In affiliated securities, at value		11,240,478

Total investments, at value (see cost below)		112,271,745
Receivable for investments sold		4,612
Receivable for Fund shares sold		106,932
Receivable for dividends and interest		493,556
Receivable for securities lending income		388
Prepaid expenses and other assets		2,004

Total assets		112,879,237


Liabilities
Payable for investments purchased		1,103
Payable for Fund shares redeemed		101,654
Payable upon receipt of securities loaned		9,414,928
Payable for daily variation margin on open futures contracts		251,522
Investment advisory fee payable		50,290
Distribution fees payable		22,526
Due to other related parties		11,648
Accrued expenses and other liabilities		79,991

Total liabilities		9,933,662

Total net assets	$	102,945,575


NET ASSETS CONSIST OF
Paid-in capital	$	125,146,038
Undistributed net investment income		87,874
Accumulated net realized losses on investments		(32,021,402	)
Net unrealized gains on investments		9,733,065

Total net assets	$	102,945,575


COMPUTATION OF NET ASSET VALUE PER SHARE¹
Net assets — Class 2	$	102,945,575
Shares outstanding — Class 2		8,783,969
Net asset value per share — Class 2	$	11.72


Total investments, at cost	$	104,049,146

Securities on loan, at value	$	9,187,812


1.		The Fund has an unlimited number of authorized shares.

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


26 Wells Fargo Advantage VT Index Asset Allocation Fund		Statement of Operations—For the Year Ended December 31, 2010


Investment income
Dividends*	$	1,255,769
Interest		1,601,752
Income from affiliated securities		10,135
Securities lending income, net		11,861

Total investment income		2,879,517


Expenses
Investment advisory fee		574,829
Administration fees
Fund level		114,126
Class 2¹		38,616
Distribution fees
Class 2¹		261,286
Custody and accounting fees		34,499
Professional fees		33,007
Shareholder report expenses		52,368
Trustees’ fees and expenses		10,549
Other fees and expenses		29,041

Total expenses		1,148,321

Less: Fee waivers and/or expense reimbursements		(105,233	)

Net expenses		1,043,088

Net investment income		1,836,429


NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS

Net realized gains (losses) on:
Unaffiliated securities		(1,085,452	)
Affiliated securities		1,388
Futures transactions		1,244,074

Net realized gains on investments		160,010


Net change in unrealized gains (losses) on:
Unaffiliated securities		10,976,411
Affiliated securities		121,092
Futures transactions		(331,854	)

Net change in unrealized gains (losses) on investments		10,765,649

Net realized and unrealized gains (losses) on investments		10,925,659

Net increase in net assets resulting from operations	$	12,762,088


* Net of foreign withholding taxes of	$	59


1.		After the close of business on July 16, 2010, existing shares of the Fund were renamed Class 2 shares.

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


Statements of Changes in Net Assets		Wells Fargo Advantage VT Index Asset Allocation Fund 27


	Year Ended						Year Ended
	December 31, 2010						December 31, 2009

Operations
Net investment income				$	1,836,429					$	2,226,099
Net realized gains on investments					160,010						1,161,344
Net change in unrealized gains (losses) on investments					10,765,649						11,378,299

Net increase in net assets resulting from operations					12,762,088						14,765,742


Distributions to shareholders from
Net investment income — Class 2¹					(1,839,244	)					(2,236,644	)


	Shares						Shares
Capital shares transactions
Proceeds from shares sold — Class 2¹		139,292			1,515,929			337,588			3,121,375
Reinvestment of distributions — Class 2¹		168,941			1,839,244			241,911			2,236,644
Payment for shares redeemed — Class 2¹		(2,281,355	)		(24,603,284	)		(3,348,627	)		(30,574,173	)

Net decrease in net assets resulting from capital share transactions					(21,248,111	)					(25,216,154	)

Total decrease in net assets					(10,325,267	)					(12,687,056	)

Net assets
Beginning of period					113,270,842						125,957,898

End of period				$	102,945,575					$	113,270,842

Undistributed net investment income				$	87,874					$	91,346


1.		After the close of business on July 16, 2010, existing shares of the Fund were renamed Class 2 shares.

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


28 Wells Fargo Advantage VT Index Asset Allocation Fund		Financial Highlights


	Beginning				Net Realized			Distributions
	Net Asset		Net		and Unrealized			from Net			Distributions
	Value Per		Investment		Gains (Losses)			Investment			from Net
	Share		Income		on Investments			Income			Realized Gains

Class 2²
January 1, 2010 to December 31, 2010	$	10.53		0.20		1.18			(0.19	)		0.00
January 1, 2009 to December 31, 2009	$	9.31		0.19		1.22			(0.19	)		0.00
January 1, 2008 to December 31, 2008	$	14.64		0.30		(4.32	)		(0.30	)		(1.01	)
January 1, 2007 to December 31, 2007	$	14.13		0.34		0.73			(0.33	)		(0.23	)
January 1, 2006 to December 31, 2006	$	13.05		0.31		1.23			(0.31	)		(0.15	)


1.		Total return calculations would have been lower had certain expenses not been waived or reimbursed during the periods shown.

2.		After the close of business on July 16, 2010, existing shares of the Fund were renamed Class 2 shares.

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


Financial Highlights		Wells Fargo Advantage VT Index Asset Allocation Fund 29


Ending
Net Asset		Ratio to Average Net Assets												Portfolio			Net Assets at
Value Per		Net Investment			Gross			Net			Total			Turnover			End of Period
Share		Income			Expenses			Expenses			Return¹			Rate			(000’s omitted)


$	11.72		1.76	%		1.10	%		1.00	%		13.29	%		25	%	$	102,946
$	10.53		2.01	%		1.07	%		1.00	%		15.46	%		43	%	$	113,271
$	9.31		2.37	%		1.07	%		1.00	%		(29.11	)%		21	%	$	125,958
$	14.64		2.26	%		1.02	%		1.00	%		7.60	%		25	%	$	254,054
$	14.13		2.27	%		1.02	%		1.00	%		12.14	%		12	%	$	288,387


30 Wells Fargo Advantage VT Index Asset Allocation Fund		Notes to Financial Statements

1. ORGANIZATION

Wells Fargo Variable 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”). These financial statements report on Wells Fargo Advantage VT Index Asset Allocation Fund (the “Fund”) (formerly, Wells Fargo Advantage VT Asset Allocation Fund) which is a diversified series of the Trust. After the close of business on July 16, 2010, existing shares of the Fund were renamed Class 2 shares.

2. SIGNIFICANT ACCOUNTING POLICIES

Securities valuation

Certain fixed income securities with maturities exceeding 60 days are valued based on available market quotations received from an independent pricing service approved by the Trust’s Board of Trustees which may utilize both transaction data and market information such as yield, prices of securities of comparable quality, coupon rate, maturity, type of issue, trading characteristics and other market data. If valuations are not available from the pricing service or values received are deemed not representative of market value, values will be obtained from a third party broker-dealer or determined based on the Fund’s Fair Value Procedures.

Investments in open-end mutual funds and non-registered investment companies are generally valued at net asset value.

The valuation techniques used by the Fund to measure fair value are consistent with the market approach, income approach and/or cost approach, where applicable, for each security type.

Security loans


Notes to Financial Statements		Wells Fargo Advantage VT Index Asset Allocation Fund 31

business day and any additional required collateral is delivered to the Fund on the next business day. In the event of default or bankruptcy by the borrower, the Fund could experience delays and costs in recovering the loaned securities or in gaining access to the collateral. In addition, the investment of any cash collateral received may lose all or part of its value. The Fund has the right under the lending agreement to recover the securities from the borrower on demand.

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 instruments in which cash collateral is invested. The amount of securities lending activity undertaken by the Fund fluctuates from time to time. After the occurrence of a default or impairment of structured investment vehicles purchased in a joint account by the Fund’s former securities lending agent, as the various participating Funds’ lending activity fluctuated, their ratable interest in the joint account, including their ratable exposure to the defaulted or impaired structured investment vehicles fluctuated depending on the relative activity of each participating Fund. In order to eliminate the fluctuation of the various participating Funds’ ratable exposure to the defaulted or impaired structured investment vehicles, the adviser to the Funds recommended to the Board of Trustees, and the Board of Trustees approved, actions designed to fix the allocation of percentage ownership in defaulted or impaired structured investment vehicles among all funds participating in securities lending (“side pocketing”) based on each participating Fund’s percentage ownership of the total cash collateral investment joint account as of the date the fixed allocation is implemented. Accordingly, on February 13, 2009 a side pocketing occurred, which fixed each participating Fund’s ownership of defaulted or impaired structured investment vehicle in the joint account based on each participating Fund’s percentage ownership of the joint account as of such date.

Futures contracts

The Fund may be subject to interest rate risk and equity price risk in the normal course of pursuing its investment objectives. The Fund may buy and sell futures contracts in order to gain exposure to, or protect against changes in, security values and 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 valued based upon their quoted daily settlement prices. The aggregate principal amounts of the contracts are not recorded in the financial statements. Fluctuations in the value of the contracts are recorded in the Statement of Assets and Liabilities as an asset or liability and in the Statement of Operations as unrealized gains or losses until the contracts are closed, at which point they are recorded as net realized gains or losses on futures contracts. With futures contracts, there is minimal counterparty risk to the Fund since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.


32 Wells Fargo Advantage VT Index Asset Allocation Fund		Notes to Financial Statements

Security transactions and income recognition

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

Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily based on the effective interest method. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. 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


Undistributed			Accumulated Net
Net Investment			Realized Losses
Income			on Investments		Paid-in Capital
$	(657	)	$	661	$	(4	)

Federal and other taxes

As of December 31, 2010, the Fund had estimated net capital loss carryforwards, which are available to offset future net realized capital gains, in the amount of $27,748,200 with $24,023,633 expiring in 2016 and $3,724,567 expiring in 2017.

3. FAIR VALUATION MEASUREMENTS


Notes to Financial Statements		Wells Fargo Advantage VT Index Asset Allocation Fund 33

(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 securities are not necessarily an indication of the risk associated with investing in those securities.

As of December 31, 2010, the inputs used in valuing the Fund’s assets, which are carried at fair value, were as follows:


			Significant Other		Significant
			Observable		Unobservable
	Quoted Prices		Inputs		Inputs
Investments in Securities	(Level 1)		(Level 2)		(Level 3)		Total
Equity securities
Common stocks	$	62,231,549	$	0	$	0	$	62,231,549
U.S. Treasury obligations		35,708,935		0		0		35,708,935
Short-term investments
Corporate bonds and notes		0		0		967,562		967,562
Investment companies		1,556,493		8,798,198		0		10,354,691
U.S. Treasury bills		0		3,009,008		0		3,009,008
	$	99,496,977	$	11,807,206	$	967,562	$	112,271,745

Further details on the major security types listed above can be found in the Fund’s Portfolio of Investments.

As of December 31, 2010, the inputs used in valuing the Fund’s other financial instruments, which are carried at fair value, were as follows:

Significant Other

Significant

Observable

Unobservable

Quoted Prices

Inputs

Other financial instruments

(Level 1)

(Level 2)

(Level 3)

Total

Futures contracts

1,510,466

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


	Corporate bonds
	and notes
Balance as of December 31, 2009	$	1,032,690
Realized gains (losses)		0
Change in unrealized gains (losses)		251,736
Purchases		0
Sales		(316,864	)
Transfers in to Level 3		0
Transfers out of Level 3		0
Balance as of December 31, 2010	$	967,562

Change in unrealized gains (losses) included in earnings relating to securities still held at December 31, 2010	$	85,583


34 Wells Fargo Advantage VT Index Asset Allocation Fund		Notes to Financial Statements

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

Investment advisory fees

Pursuant to the contract, Funds Management is paid an annual investment advisory fee starting at 0.55% and declining to 0.40% as the average daily net assets of the Fund increase. For the year ended December 31, 2010, the investment advisory fee was equivalent to an annual rate of 0.55% of the Fund’s average daily net assets.

Funds Management may retain the services of certain investment sub-advisers to provide daily portfolio management to the Fund. The fees related to investment sub-advisory services are borne directly by the investment adviser and do not increase the overall fees paid by the Fund to the investment adviser. Wells Capital Management, an affiliate of Funds Management, is the investment sub-adviser to the Fund and is paid a fee by the investment adviser at an annual rate starting at 0.15% and declining to 0.10% as the average daily net assets of the Fund increase.

Administration and transfer agent fees


		Administration Fees
		(% of Average
	Average Daily Net Assets	Daily Net Assets)
Fund level	First $5 billion		0.05	%
	Next $5 billion		0.04
	Over $10 billion		0.03

Class 2	All asset levels		0.08

Prior to July 19, 2010, Funds Management received from the Fund an annual fee which started at 0.16% and declined to 0.14% as the average daily net assets of the Fund increased.

Distribution fees

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, exclusive of short-term securities (securities with maturities of one year or less at purchase date) for the year ended December 31, 2010, were as follows:


Purchases at Cost		Sales Proceeds
U.S. Government	Non-U.S. Government	U.S. Government	Non-U.S. Government
$21,913,486	$3,020,212	$29,672,472	$13,938,380

6. DERIVATIVE TRANSACTIONS

During the year ended December 31, 2010, the Fund entered into futures contracts to gain market exposure.


Notes to Financial Statements		Wells Fargo Advantage VT Index Asset Allocation Fund 35

At December 31, 2010, the Fund had long and short futures contracts outstanding as follows:

Initial

Expiration

Contract

Value at

Net Unrealized

Date

Contracts

Type

Amount

December 31, 2010

Gains

March 2011

209 Short

30-Year
U.S. Treasury Bond

26,503,072

25,524,125

978,947

March 2011

4 Long

30-Year
U.S. Treasury Bonds

481,656

488,500

6,844

March 2011

85 Long

S&P 500 Index

26,101,575

26,626,250

524,675

The Fund had an average contract amount of $27,615,327 and $25,947,590 in long and short futures contracts, respectively, during the year ended December 31, 2010.

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


	Asset Derivatives
	Balance Sheet Location	Fair Value
Interest rate contracts	Net assets - Net unrealized gains on investments	$	985,791	*
Equity contracts	Net assets - Net unrealized gains on investments		524,675	*

		$	1,510,466


*		Amount represents cumulative unrealized gains (losses) on futures contracts. Only the variation margin as of December 31, 2010 is reported separately on the Statement of Assets and Liabilities.

The effect of derivative instruments on the Statement of Operations for the year ended December 31, 2010 was as follows for the Fund:


	Amount of Realized Gains (Losses)			Change in Unrealized Gains (Losses)
	on Future Contracts			on Future Contracts
Interest rate contracts	$	(2,350,829	)	$	(313,179	)
Equity contracts		3,594,903			(18,675	)

	$	1,244,074		$	(331,854	)

7. BANK BORROWINGS

For the year ended December 31, 2010, there were no borrowings by the Fund under the agreement.


36 Wells Fargo Advantage VT Index Asset Allocation Fund		Notes to Financial Statements

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended December 31, 2010 and December 31, 2009 were as follows:


	Year ended December 31,
	2010		2009
Ordinary Income	$	1,839,244	$	2,236,644

As of December 31, 2010, the components of distributable earnings on a tax basis were as follows:


Undistributed
Ordinary		Unrealized		Capital Loss
Income		Gains (Losses)		Carryforward
$	87,874	$	5,459,863	$	(27,748,200	)

9. INDEMNIFICATION


Report of Independent Registered Public Accounting Firm		Wells Fargo Advantage VT Index Asset Allocation Fund 37

BOARD OF TRUSTEES AND SHAREHOLDERS OF
WELLS FARGO VARIABLE TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Advantage VT Index Asset Allocation Fund (the “Fund”), one of the funds constituting the Wells Fargo Variable Trust, as of December 31, 2010, and the related statement of operations for the year then ended, statements of changes in net assets for each of the years in the two year period then ended, and the financial highlights for each of the years in the five year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Advantage VT Index Asset Allocation Fund as of December 31, 2010, the results of its operations for the year then ended, changes in its net assets for each of the years in the two year period then ended, and the financial highlights for each of the years in the five year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts
February 25, 2011


38 Wells Fargo Advantage VT Index Asset Allocation Fund		Other Information (Unaudited)

PROXY VOTING INFORMATION

TAX INFORMATION

Pursuant to Section 854(b)(2) of the Internal Revenue Code, the Fund designates 65.22% of its ordinary income dividends distributed during the year ended December 31, 2010 as qualifying for the corporate dividends received deduction.


Other Information (Unaudited)		Wells Fargo Advantage VT Index Asset Allocation Fund 39

PORTFOLIO HOLDINGS INFORMATION

BOARD OF TRUSTEES

Independent Trustees


Name and	Position Held and
Year of Birth	Length of Service	Principal Occupations During Past Five Years	Other Directorships
Peter G. Gordon (Born 1942)	Trustee, since 1998; Chairman, since 2005 (Lead Trustee since 2001)	Co-Founder, Chairman, President and CEO of Crystal Geyser. Water Company. Trustee Emeritus, Colby College	Asset Allocation Trust

Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. 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. Mr. Harris is a certified public accountant.	CIGNA Corporation; Deluxe Corporation; Asset Allocation Trust

Judith M. Johnson (Born 1949)	Trustee, since 2008	Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant.	Asset Allocation Trust

Leroy Keith, Jr. (Born 1939)	Trustee, since 2010	Chairman, Bloc Global Services (development and construction), Trustee of the Evergreen Funds from 1983 to 2010. Former Managing Director, Almanac Capital Management (commodities firm), former Partner, Stonington Partners, Inc. (private equity fund), former Director, Obagi Medical Products Co. and former Director, Lincoln Educational Services.	Trustee, Virtus Fund Complex (consisting of 45 portfolios as of 12/31/10); Director, Diversapack Co. (packaging company); Asset Allocation Trust

David F. Larcker (Born 1951)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of Corporate Governance Research Program and Co-Director of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust


40 Wells Fargo Advantage VT Index Asset Allocation Fund		Other Information (Unaudited)


Name and	Position Held and
Year of Birth	Length of Service	Principal Occupations During Past Five Years	Other Directorships
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor and Chair of the Department of Insurance and Risk Management, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust

Timothy J. Penny (Born 1951)	Trustee, since 1996	President and CEO of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust

Michael S. Scofield (Born 1943)	Trustee, since 2010	Currently serves on the Investment Company Institute’s Board of Governors and Executive Committee as well the Independent Director’s Counsel Board of Governors and Executive Committee. Former Chairman of the Independent Directors Counsel. Trustee of the Evergreen Funds from 1984 to 2010. Retired Attorney, Law Offices of Michael S. Scofield and former Director and Chairman, Branded Media Corporation (multi-media branding company).	Asset Allocation Trust

Donald C. Willeke (Born 1940)	Trustee, since 1996	Principal of the law firm of Willeke & Daniels. General Counsel of the Minneapolis Employees Retirement Fund from 1984 until its consolidation into the Minnesota Public Employees Retirement Association on June 30, 2010.	Asset Allocation Trust

Officers


Name and	Position Held and
Year of Birth	Length of Service	Principal Occupations During Past Five Years
Karla M. Rabusch (Born 1959)	President, since 2003	Executive Vice President of Wells Fargo Bank, N.A. and President of Wells Fargo Funds Management, LLC since 2003. Senior Vice President and Chief Administrative Officer of Wells Fargo Funds Management, LLC from 2001 to 2003.

C. David Messman (Born 1960)	Secretary, since 2000; Chief Legal Counsel, since 2003	Senior Vice President and Secretary of Wells Fargo Funds Management, LLC since 2001. Vice President and Managing Counsel of Wells Fargo Bank, N.A. since 1996.

Kasey Phillips (Born 1970)	Treasurer, since 2009	Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2006 to 2010. Treasurer of the Evergreen Funds from 2005 to 2010. Vice President and Assistant Vice President of Evergreen Investment Services, Inc. from 1999 to 2006.

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. Assistant Vice President of Evergreen Investment Services, Inc. from 2004 to 2008. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.

Jeremy DePalma (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. Vice President, Evergreen Investment Services, Inc. from 2004 to 2007. Assistant Vice President, Evergreen Investment Services, Inc. from 2000 to 2004 and the head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.


Other Information (Unaudited)		Wells Fargo Advantage VT Index Asset Allocation Fund 41


Name and	Position Held and
Year of Birth	Length of Service	Principal Occupations During Past Five Years
Debra Ann Early (Born 1964)	Chief Compliance Officer, since 2007	Chief Compliance Officer of Wells Fargo Funds Management, LLC since 2007. Chief Compliance Officer of Parnassus Investments from 2005 to 2007. Chief Financial Officer of Parnassus Investments from 2004 to 2007 and Senior Audit Manager of PricewaterhouseCoopers LLP from 1998 to 2004.


1.		The Statement of Additional Information includes additional information about the Fund’s Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the Fund’s Web site at www.wellsfargo.com/advantagefunds.


42 Wells Fargo Advantage VT Index Asset Allocation Fund		List of Abbreviations

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


ABAG	—	Association of Bay Area Governments
ADR	—	American Depositary Receipt
ADS	—	American Depository Shares
AMBAC	—	American Municipal Bond Assurance Corporation
AMT	—	Alternative Minimum Tax
ARM	—	Adjustable Rate Mortgages
AUD	—	Australian Dollar
BART	—	Bay Area Rapid Transit
BRL	—	Brazil Real
CAD	—	Canadian Dollar
CDA	—	Community Development Authority
CDO	—	Collateralized Debt Obligation
CDSC	—	Contingent Deferred Sales Charge
CGIC	—	Capital Guaranty Insurance Company
CGY	—	Capital Guaranty Corporation
CHF	—	Swiss Franc
CIFG	—	CDC (Caisse des Dépôts et Consignations) IXIS Financial Guarantee
COP	—	Certificate of Participation
CP	—	Commercial Paper
CTF	—	Common Trust Fund
DEM	—	Deutsche Mark
DKK	—	Danish Krone
DW&P	—	Department of Water & Power
DWR	—	Department of Water Resources
ECFA	—	Educational & Cultural Facilities Authority
EDFA	—	Economic Development Finance Authority
ETET	—	Eagle Tax-Exempt Trust
ETF	—	Exchange-Traded Fund
EUR	—	Euro
FFCB	—	Federal Farm Credit Bank
FGIC	—	Financial Guaranty Insurance Corporation
FHA	—	Federal Housing Authority
FHAG	—	Federal Housing Agency
FHLB	—	Federal Home Loan Bank
FHLMC	—	Federal Home Loan Mortgage Corporation
FNMA	—	Federal National Mortgage Association
FRF	—	French Franc
FSA	—	Farm Service Agency
GBP	—	Great British Pound
GDR	—	Global Depositary Receipt
GNMA	—	Government National Mortgage Association
GO	—	General Obligation
HCFR	—	Healthcare Facilities Revenue
HEFA	—	Health & Educational Facilities Authority
HEFAR	—	Higher Education Facilities Authority Revenue
HFA	—	Housing Finance Authority
HFFA	—	Health Facilities Financing Authority
HKD	—	Hong Kong Dollar
HUD	—	Housing & Urban Development
HUF	—	Hungarian Forint
IDA	—	Industrial Development Authority
IDAG	—	Industrial Development Agency
IDR	—	Industrial Development Revenue
IEP	—	Irish Pound
JPY	—	Japanese Yen
KRW	—	Republic of Korea Won
LIBOR	—	London Interbank Offered Rate
LLC	—	Limited Liability Company
LLP	—	Limited Liability Partnership
LOC	—	Letter of Credit
LP	—	Limited Partnership
MBIA	—	Municipal Bond Insurance Association
MFHR	—	Multi-Family Housing Revenue
MFMR	—	Multi-Family Mortgage Revenue
MMD	—	Municipal Market Data
MTN	—	Medium Term Note
MUD	—	Municipal Utility District
MXN	—	Mexican Peso
MYR	—	Malaysian Ringgit
NATL-RE	—	National Public Finance Guarantee Corporation
NLG	—	Netherlands Guilder
NOK	—	Norwegian Krone
NZD	—	New Zealand Dollar
PCFA	—	Pollution Control Finance Authority
PCR	—	Pollution Control Revenue
PFA	—	Public Finance Authority
PFFA	—	Public Facilities Financing Authority
plc	—	Public Limited Company
PLN	—	Polish Zloty
PSFG	—	Public School Fund Guaranty
R&D	—	Research & Development
RDA	—	Redevelopment Authority
RDFA	—	Redevelopment Finance Authority
REITS	—	Real Estate Investment Trusts
SEK	—	Swedish Krona
SFHR	—	Single Family Housing Revenue
SFMR	—	Single Family Mortgage Revenue
SGD	—	Singapore Dollar
SKK	—	Slovakian Koruna
SLMA	—	Student Loan Marketing Association
SPDR	—	Standard & Poor’s Depositary Receipts
STIT	—	Short-Term Investment Trust
TBA	—	To Be Announced
TRAN	—	Tax Revenue Anticipation Notes
TRY	—	Turkish Lira
USD	—	United States Dollar
XLCA	—	XL Capital Assurance
ZAR	—	South African Rand

More information about Wells Fargo Advantage Funds is available free upon request. To obtain literature, please write, e-mail, visit the Funds’ Web site, or call:

Wells Fargo Advantage Funds
P.O. Box 8266
Boston, MA 02266-8266
E-mail: wfaf@wellsfargo.com

Web site: www.wellsfargo.com/advantagefunds
Individual Investors: 1- 800-222-8222
Retail Investment Professionals: 1- 888-877-9275
Institutional Investment Professionals: 1- 866-765-0778

Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Advantage Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the Funds. The Funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA/SIPC, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED § NO BANK GUARANTEE § MAY LOSE VALUE

WELLS FARGO ADVANTAGE VARIABLE TRUST FUNDS

Wells Fargo Advantage VT International Equity Fund
(formerly Wells Fargo Advantage VT International Core Fund)

Reduce clutter. Save trees.


Contents


Letter to Shareholders			2

Performance Highlights			6

Fund Expenses			11

Portfolio of Investments			12

Financial Statements
Statement of Assets and Liabilities			16
Statement of Operations			17
Statements of Changes in Net Assets			18
Financial Highlights			20

Notes to Financial Statements			22

Report of Independent Registered Public Accounting Firm			29

Other Information			30

List of Abbreviations			34

NOT FDIC INSURED § NO BANK GUARANTEE § MAY LOSE VALUE

WELLS FARGO

INVESTMENT HISTORY

1932 Keystone creates one of the first mutual fund families.

1971 Wells Fargo & Company introduces one of the first institutional index funds.

1978 Wells Fargo applies Markowitz and Sharpe’s research on Modern Portfolio Theory to introduce one of the industry’s first Tactical Asset Allocation (TAA) models in institutional separately managed accounts.

1984 Wells Fargo Stagecoach Funds launches its first asset allocation fund.

1989 The Tactical Asset Allocation (TAA) Model is first applied to Wells Fargo’s asset allocation mutual funds.

1994 Wells Fargo introduces the LifePath Funds, one of the first suites of target date funds (now the Wells Fargo Advantage Dow Jones Target Date Funds^SM).

1996 Evergreen Investments and Keystone Funds merge.

1997 Wells Fargo launches Wells Fargo Advantage WealthBuilder Portfolios^SM, a fund-of-funds suite of products that includes the use of quantitative models to shift assets among investment styles.

1999 Norwest Advantage Funds and Stagecoach Funds are reorganized into Wells Fargo Funds after the merger of Norwest and Wells Fargo.

2002 Evergreen Retail and Evergreen Institutional companies form the umbrella asset management company, Evergreen Investments.

2005 The integration of Strong Funds with Wells Fargo Funds creates Wells Fargo Advantage Funds, resulting in one of the top 20 mutual fund companies in the United States.

2006 Wells Fargo Advantage Funds relaunches the target date product line as Wells Fargo Advantage Dow Jones Target Date Funds.

2010 The mergers and reorganizations of Evergreen and Wells Fargo Advantage mutual funds are completed, unifying the families under the brand of Wells Fargo Advantage Funds.

Wells Fargo Advantage Funds^®

Strength

Expertise

Partnership

NOT FDIC INSURED § NO BANK GUARANTEE § MAY LOSE VALUE

Not part of the annual report.

Wells Fargo Advantage Funds offers more than 120 mutual funds across a wide range of asset classes, representing over $236 billion in assets under management, as of December 31, 2010.


Equity Funds

Asia Pacific Fund	Enterprise Fund^†	Opportunity Fund^†
C&B Large Cap Value Fund	Equity Value Fund	Precious Metals Fund
C&B Mid Cap Value Fund	Global Opportunities Fund	Premier Large Company Growth Fund
Capital Growth Fund	Growth Fund	Small Cap Growth Fund
Classic Value Fund	Growth Opportunities Fund	Small Cap Opportunities Fund
Common Stock Fund	Health Care Fund	Small Cap Value Fund
Core Equity Fund	Index Fund	Small Company Growth Fund
Disciplined Global Equity Fund	International Equity Fund	Small Company Value Fund
Disciplined U.S. Core Fund	International Value Fund	Small/Mid Cap Core Fund
Disciplined Value Fund	Intrinsic Small Cap Value Fund	Small/Mid Cap Value Fund
Discovery Fund^†	Intrinsic Value Fund	Social Sustainability Fund^†
Diversified Equity Fund	Intrinsic World Equity Fund	Special Mid Cap Value Fund
Diversified International Fund	Large Cap Core Fund	Special Small Cap Value Fund
Diversified Small Cap Fund	Large Cap Growth Fund	Specialized Technology Fund
Emerging Growth Fund	Large Company Value Fund	Strategic Large Cap Growth Fund
Emerging Markets Equity Fund	Mid Cap Growth Fund	Traditional Small Cap Growth Fund
Endeavor Select Fund^†	Omega Growth Fund	Utility and Telecommunications Fund

Bond Funds

Adjustable Rate Government Fund	Inflation-Protected Bond Fund	Short-Term Bond Fund
California Limited-Term Tax-Free Fund	Intermediate Tax/AMT-Free Fund	Short-Term High Yield Bond Fund
California Tax-Free Fund	International Bond Fund	Short-Term Municipal Bond Fund
Colorado Tax-Free Fund	Minnesota Tax-Free Fund	Strategic Municipal Bond Fund
Government Securities Fund	Municipal Bond Fund	Total Return Bond Fund
High Income Fund	North Carolina Tax-Free Fund	Ultra Short-Term Income Fund
High Yield Bond Fund	Pennsylvania Tax-Free Fund	Ultra Short-Term Municipal Income Fund
Income Plus Fund	Short Duration Government Bond Fund	Wisconsin Tax-Free Fund

Asset Allocation Funds

Asset Allocation Fund	WealthBuilder Equity Portfolio^†	Target 2020 Fund^†
Conservative Allocation Fund	WealthBuilder Growth Allocation Portfolio^†	Target 2025 Fund^†
Diversified Capital Builder Fund	WealthBuilder Growth Balanced Portfolio^†	Target 2030 Fund^†
Diversified Income Builder Fund	WealthBuilder Moderate Balanced Portfolio^†	Target 2035 Fund^†
Growth Balanced Fund	WealthBuilder Tactical Equity Portfolio^†	Target 2040 Fund^†
Index Asset Allocation Fund	Target Today Fund^†	Target 2045 Fund^†
Moderate Balanced Fund	Target 2010 Fund^†	Target 2050 Fund^†
WealthBuilder Conservative Allocation Portfolio^†	Target 2015 Fund^†

Money Market Funds

100% Treasury Money Market Fund	Minnesota Money Market Fund	New Jersey Municipal Money Market Fund
California Municipal Money Market Fund	Money Market Fund	New York Municipal Money Market Fund
Cash Investment Money Market Fund	Municipal Cash Management Money Market Fund	Pennsylvania Municipal Money Market Fund
Government Money Market Fund	Municipal Money Market Fund	Prime Investment Money Market Fund
Heritage Money Market Fund^†	National Tax-Free Money Market Fund	Treasury Plus Money Market Fund

Variable Trust Funds¹

VT Core Equity Fund	VT Intrinsic Value Fund	VT Small Cap Value Fund
VT Discovery Fund^†	VT Omega Growth Fund	VT Total Return Bond Fund
VT Index Asset Allocation Fund	VT Opportunity Fund^†
VT International Equity Fund	VT Small Cap Growth Fund


1.		The Variable Trust Funds are generally available only through insurance company variable contracts.

†		In this report, the Wells Fargo Advantage Discovery Fund^SM, Wells Fargo Advantage Endeavor Select Fund^SM, Wells Fargo Advantage Enterprise Fund^SM, Wells Fargo Advantage Opportunity Fund^SM, Wells Fargo Advantage Social Sustainability Fund^SM, Wells Fargo Advantage WealthBuilder Conservative Allocation Portfolio^SM, Wells Fargo Advantage WealthBuilder Equity Portfolio^SM, Wells Fargo Advantage WealthBuilder Growth Allocation Portfolio^SM, Wells Fargo Advantage WealthBuilder Growth Balanced Portfolio^SM, Wells Fargo Advantage WealthBuilder Moderate Balanced Portfolio^SM, Wells Fargo Advantage WealthBuilder Tactical Equity Portfolio^SM, Wells Fargo Advantage Dow Jones Target Today Fund^SM, Wells Fargo Advantage Dow Jones Target 2010 Fund^SM, Wells Fargo Advantage Dow Jones Target 2015 Fund^SM, Wells Fargo Advantage Dow Jones Target 2020 Fund^SM, Wells Fargo Advantage Dow Jones Target 2025 Fund^SM, Wells Fargo Advantage Dow Jones Target 2030 Fund^SM, Wells Fargo Advantage Dow Jones Target 2035 Fund^SM, Wells Fargo Advantage Dow Jones Target 2040 Fund^SM, Wells Fargo Advantage Dow Jones Target 2045 Fund^SM, Wells Fargo Advantage Dow Jones Target 2050 Fund^SM, Wells Fargo Advantage Heritage Money Market Fund^SM, Wells Fargo Advantage VT Discovery Fund^SM, and Wells Fargo Advantage VT Opportunity Fund^SMare referred to as the Discovery Fund, Endeavor Select Fund, Enterprise Fund, Opportunity Fund, Social Sustainability Fund, WealthBuilder Conservative Allocation Portfolio, WealthBuilder Equity Portfolio, WealthBuilder Growth Allocation Portfolio, WealthBuilder Growth Balanced Portfolio, WealthBuilder Moderate Balanced Portfolio, WealthBuilder Tactical Equity Portfolio, Target Today Fund, Target 2010 Fund, Target 2015 Fund, Target 2020 Fund, Target 2025 Fund, Target 2030 Fund, Target 2035 Fund, Target 2040 Fund, Target 2045 Fund, Target 2050 Fund, Heritage Money Market Fund, VT Discovery Fund, and VT Opportunity Fund, respectively.

Not part of the annual report.



2 Wells Fargo Advantage VT International Equity Fund		Letter to Shareholders

Karla M. Rabusch,
President
Wells Fargo Advantage Funds

The equity markets delivered strong full-year returns against the backdrop of a strengthening economy.

Dear Valued Shareholder:

We are pleased to provide you with this annual report for the Wells Fargo Advantage VT International Equity Fund for the 12 months that ended December 31, 2010. The equity markets delivered strong full-year returns against the backdrop of a strengthening economy. However, the year was not without its share of macroeconomic challenges and market volatility, once again highlighting the value of a sound, well-diversified investment strategy. As always, we believe that such a strategy can enable investors to balance risks and opportunities as they pursue long-term financial goals in a dynamic market environment.

The economic recovery stayed on track.

Jobs and housing remained troublesome.

The Fed continued to do its part.



Letter to Shareholders		Wells Fargo Advantage VT International Equity Fund 3

2010 was another solid year for equities.

Investors should keep a long-term perspective.

To help you build a well-diversified strategy based on your personal objectives and risk tolerance, Wells Fargo Advantage Funds^® offers more than 120 mutual funds and other investments covering 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.

Along with more upbeat economic data, better-than-expected corporate earnings power played a role in driving stock prices higher.



4 Wells Fargo Advantage VT International Equity Fund		Letter to Shareholders

Sincerely,

Karla M. Rabusch
President
Wells Fargo Advantage Funds

This page is intentionally left blank.



6 Wells Fargo Advantage VT International Equity Fund		Performance Highlights (Unaudited)

Wells Fargo Advantage VT International Equity Fund

INVESTMENT OBJECTIVE

The Fund seeks long-term capital appreciation.

INVESTMENT ADVISER

Wells Fargo Funds Management, LLC

SUB-ADVISER

Wells Capital Management Incorporated

PORTFOLIO MANAGER

Francis Claró, CFA

FUND INCEPTION

August 17, 1998

PERFORMANCE SUMMARY

12 MONTH TOTAL RETURN AS OF DECEMBER 31, 2010


Class 2	16.50	%
MSCI EAFE Free Index¹	7.75	%

The adviser has committed, through July 18, 2013, to waive fees and/or reimburse expenses to maintain the contractual expense cap at 0.94% for Class 2 excluding acquired fund fees and certain other expenses. Without these reductions, the Fund’s returns would have been lower. The Fund’s net expense ratio is 0.95% for the Class 2 shares. The Fund’s gross expense ratio is 1.21% for the Class 2 shares.


1.		The Morgan Stanley Capital International Europe, Australasia, and Far East (“MSCI EAFE Free”) Free Index is an unmanaged group of securities widely regarded by investors to be representative of the stock markets of Europe, Australasia, and the Far East. MSCI Free Indices are constructed to reflect investment opportunities for global investors to account for local market restrictions on stock ownership by international investors. You cannot invest directly in an index.

2.		The chart compares the performance of the Wells Fargo Advantage VT International Equity Fund Class 2 for the most recent ten years of the Fund with the MSCI EAFE Free Index. The chart assumes a hypothetical $10,000 investment and reflects all operating expenses of the Fund.



Performance Highlights (Unaudited)		Wells Fargo Advantage VT International Equity Fund 7

Wells Fargo Advantage VT International Equity Fund (continued)

MANAGER’S DISCUSSION

Fund highlights:

§		The Fund outperformed its benchmark, the MSCI EAFE Free Index, for the 12-month period that ended December 31, 2010, largely due to positive contributions from many individual holdings across a range of sectors and countries.

§		Continuing with moves we began in mid-2009, our bottom-up focus on stock selection resulted in larger sector overweights in consumer discretionary and information technology at the expense of underweights in financials and consumer staples.

§		Geographically, the individual stock and sector positionings were reflected in overweights in emerging markets and Canada, and underweights in Japan and Asia ex-Japan.

Our selective cyclical exposure proved beneficial over the year as a whole.

The fiscal year saw the tail end of the strong bull market of 2009 being replaced by renewed investor nervousness in early 2010. Among the negative influences was the sovereign debt crisis in Europe that started in Greece and which many feared would engulf a growing number of eurozone countries. While the establishment of the European Financial Stability Facility in June initially helped to allay these fears, the markets entered a further period of volatility in July, as fears of a double-dip recession, together with continued high unemployment, came to the forefront. These fears were finally subdued, as expectations grew that the U.S. Federal Reserve would maintain a loose monetary policy and even resort to another round of quantitative easing. This helped global markets finish the fiscal year on a strong note, with the Fund generating even higher returns for its shareholders.

TEN LARGEST EQUITY HOLDINGS³
(AS OF DECEMBER 31, 2010)


Isuzu Motors Limited	1.86	%
Nestle SA	1.85	%
Fresenius AG	1.74	%
HSBC Holdings plc	1.71	%
Sina Corporation	1.69	%
Monster Worldwide Incorporated	1.65	%
Rio Tinto plc	1.65	%
Randstad Holdings NV	1.57	%
BHP Billiton plc	1.52	%
Swatch Group AG Class B	1.51	%

Over the 12-month period, we increased exposure to consumer discretionary, principally through additional automobile and luxury good stocks. New auto holdings included Peugeot and BMW. With regards to luxury goods companies, we actively managed our existing positions, including Burberry Group plc, Compagnie Financiere Richmont SA, and Swatch Group AG Class B in effort to benefit from increased demand for luxury products, particularly from China and other leading developing countries. Selective additions to a number of gold and


3.		The ten largest equity holdings are calculated based on the value of the securities divided by total investments of the Fund. Holdings are subject to change and may have changed since the date specified.



8 Wells Fargo Advantage VT International Equity Fund		Performance Highlights (Unaudited)

Wells Fargo Advantage VT International Equity Fund (continued)

commodity stocks were made in the materials sector. Offsetting these purchases were eliminations of a range of holdings within the financials sector. Stocks we sold during the period included Hellenic Exchanges, Deutsche Bank, and Sompo Japan Insurance Company. Within our energy holdings, we eliminated our Transocean Limited position early in 2010, before the Gulf of Mexico oil spill accident that occurred on April 20^th.

In terms of sectors, our overweight in consumer discretionary, combined with strong performance from our luxury goods and auto holdings, boosted returns. The contribution from information technology, also an overweight, was supported by a number of our Chinese holdings. A small underweight in materials was more than offset by strong stock performance from a large number of holdings, which were diversified across a range of commodities. The only detractor was consumer staples, where we had an underweight exposure to this surprisingly strongly performing sector.

Geographically, Europe and the emerging markets were the leading regions, due to strong stock performance in each. While our underweight in Japan, one of the strongest performing countries within the MSCI EAFE Free Index, hampered returns, the fund greatly benefitted from good stock selection in that market. Overall, Japan was a top five contributor from a geographic perspective.

Government policy responses are limited by rising deficits, but we believe that attractive equity valuations could prove beneficial for stocks.

During the year, the markets realized that fiscal stimulus had its limits, causing great uncertainties regarding the future financing of deficits. Credit default swaps on sovereign issues have remained stubbornly high, a reflection of the concern about the ability of several European governments to repay debt. Hence, fiscal stimulus has turned to fiscal drag, and we believe it will remain that way in numerous countries for several years. In addition, banks are still deleveraging and reducing risk as Basel III imposes higher capital requirements on them. The policy response, particularly in the U.S., has been monetary easing, although this approach has seen some resistance globally. Moderate inflation is a desired ally of governments in developed countries, and current actions may well lead to the preferred outcome of higher prices, if economic growth returns.


4.		Country allocation is subject to change and is calculated based on the total long-term investments of the Fund.



Performance Highlights (Unaudited)		Wells Fargo Advantage VT International Equity Fund 9

Wells Fargo Advantage VT International Equity Fund (continued)

However, we believe several significant positive drivers for equities do exist. First and foremost, valuations of equities look compelling relative to bonds. Earnings yields of equities compare favorably with bond yields, and the massive flow of funds to bonds has reduced the risk-adjusted return profile for this asset class relative to equities. Money, one of the basic raw materials that enables corporate investment, is historically cheap and becoming plentiful. Combine this with the current long period of underinvestment in capital expenditures and labor, and we should begin to see some meaningful activity in both of these areas, which should be positive for growth.

We are finding interesting stocks in developed markets in various sectors that are trading at attractive values. We believe that these stocks will reward investors; at the same time, we are identifying undervalued growth stocks in emerging markets that should provide attractive investment opportunities.


10 Wells Fargo Advantage VT International Equity Fund		Performance Highlights (Unaudited)

Wells Fargo Advantage VT International Equity Fund (continued)

AVERAGE ANNUAL TOTAL RETURN (%) (AS OF DECEMBER 31, 2010)⁵


	Inception										Expense Ratios⁶
	Date		6 Months*		1 Year		5 Year		10 Year		Gross			Net⁷
Class 1		8/17/1998		28.86		16.79		2.33		4.09		0.96	%		0.70	%
Class 2		7/31/2002		28.53		16.50		2.07		3.86		1.21	%		0.95	%
MSCI EAFE Free Index¹				24.18		7.75		2.46		3.50


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

Stock fund values fluctuate in response to the activities of individual companies and general market and economic conditions. Foreign investments are especially volatile and can rise or fall dramatically due to differences in the political and economic conditions of the host country. These risks are generally intensified in emerging markets. The use of derivatives may reduce returns and/or increase volatility. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). This Fund is exposed to active trading risk and smaller company securities risk. Consult the Fund’s prospectus for additional information on these and other risks.


5.		Performance shown for Class 2 shares prior to its inception reflects the performance of Class 1 shares, adjusted to reflect the higher expenses applicable to Class 2 shares. Historical performance shown for all classes of the Fund prior to July 19, 2010 is based on the performance of the fund’s predecessor, Evergreen VA International Equity Fund. Effective July 16, 2010, the Fund name changed from Wells Fargo Advantage VT International Core Fund to Wells Fargo Advantage VT International Equity Fund.

6.		Reflects the expense ratio as stated in the July 19, 2010 prospectus.

7.		The advisor has committed, through July 18, 2013, to waive fees and/or reimburse expenses to maintain the contractual expense cap at 0.69% for Class 1 and 0.94% for Class 2 shares excluding acquired fund fees and certain other expenses. Without these reductions, the Fund’s returns would have been lower.


Letter to Shareholders		Wells Fargo Advantage VT International Equity Fund 11

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 July 1, 2010 to December 31, 2010.

Actual expenses

Hypothetical example for comparison purposes

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), redemption fees exchange fees, or separate account charges assessed by participating insurance companies. 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		Ending		Expenses
	Account Value		Account Value		Paid During		Net Annual
	07-01-2010		12-31-2010		the Period¹		Expense Ratio
Class 1
Actual	$	1,000.00	$	1,288.64	$	4.02		0.69	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.96	$	3.55		0.69	%

Class 2
Actual	$	1,000.00	$	1,285.27	$	5.47		0.94	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.69	$	4.84		0.94	%


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



12 Wells Fargo Advantage VT International Equity Fund		Portfolio of Investments—December 31, 2010


Shares		Security Name	Value
Common Stocks: 96.38%

Argentina: 0.92%
	163,939	Irsa Inversiones y Representaciones SA ADR (Financials, Real Estate Management & Development)	$	2,637,779


Australia: 3.73%
	338,028	AMP Limited (Financials, Insurance)		1,828,939
	33,912	ASX Limited (Financials, Diversified Financial Services)		1,306,938
	37,175	Commonwealth Bank of Australia (Financials, Commercial Banks)		1,930,407
	26,372	Macquarie Group Limited (Financials, Capital Markets)		998,281
	71,532	Newcrest Mining Limited (Materials, Metals & Mining)		2,958,710
	72,712	Westpac Banking Corporation (Financials, Commercial Banks)		1,651,754
				10,675,029


Belgium: 0.62%
	30,939	Anheuser-Busch InBev NV (Consumer Staples, Beverages)		1,769,514


Brazil: 0.45%
	62,860	Banco Bradesco SA ADR (Financials, Commercial Banks)«		1,275,429


Canada: 6.87%
	37,005	Agnico-Eagle Mines Limited (Materials, Metals & Mining)«		2,838,284
	113,030	Brookfield Asset Management Incorporated (Financials, Real Estate Management & Development)		3,762,769
	66,997	Canadian Natural Resources Limited (Energy, Oil, Gas & Consumable Fuels)		2,988,351
	69,177	EnCana Corporation (Energy, Oil, Gas & Consumable Fuels)		2,023,895
	36,659	Goldcorp Incorporated (Materials, Metals & Mining)		1,691,557
	53,551	Pacific Rubiales Energy Corporation (Energy, Oil, Gas & Consumable Fuels)		1,817,707
	40,343	Suncor Energy Incorporated (Energy, Oil, Gas & Consumable Fuels)		1,553,183
	47,749	Teck Cominco Incorporated Limited (Materials, Metals & Mining)		2,967,324
				19,643,070


China: 5.12%
	12,484	Baidu.com Incorporated ADR (Information Technology, Internet Software & Services)†		1,205,081
	2,368,000	China Infrastructure Machinery Holdings Limited (Industrials, Machinery)		1,294,772
	21,401	China Mobile Limited ADR (Telecommunication Services, Wireless Telecommunication Services)«		1,061,918
	42,299	Netease.com Incorporated ADR (Information Technology, Internet Software & Services)†«		1,529,109
	74,846	Sina Corporation (Information Technology, Internet Software & Services)†«		5,150,902
	75,800	Tencent Holdings Limited (Information Technology, Internet Software & Services)		1,647,105
	49,307	Vanceinfo Technologies Incorporated ADR (Information Technology, Software)†«		1,703,064
	268,000	ZTE Corporation (Telecommunication Services, Wireless Telecommunication Services)		1,065,408
				14,657,359


Denmark: 0.94%
	144	A.P. Moller-Maersk A/S Class B (Industrials, Marine)		1,303,940
	13,713	Carlsberg A/S (Consumer Staples, Beverages)		1,373,009
				2,676,949


Finland: 0.42%
	114,973	Nokia Oyj (Telecommunication Services, Diversified Telecommunication Services)†		1,189,161


France: 8.92%
	23,230	Alstom RGPT (Industrials, Machinery)		1,111,623
	35,168	BNP Paribas SA (Financials, Commercial Banks)		2,237,432
	32,440	Carrefour SA (Consumer Staples, Food & Staples Retailing)		1,337,334
	24,520	Compagnie de Saint-Gobain (Industrials, Building Products)		1,261,494
	106,509	France Telecom SA (Telecommunication Services, Diversified Telecommunication Services)		2,219,605
	25,294	Groupe Danone (Consumer Staples, Food Products)		1,589,293


Portfolio of Investments—December 31, 2010		Wells Fargo Advantage VT International Equity Fund 13


Shares		Security Name	Value
France (continued)
	17,037	LVMH Moet Hennessy Louis Vuitton SA (Consumer Discretionary, Textiles, Apparel & Luxury Goods)	$	2,802,561
	12,410	Pernod-Ricard (Consumer Staples, Beverages)		1,166,814
	100,903	Peugeot SA (Consumer Discretionary, Automobiles)		3,830,710
	15,583	Pinault-Printempts-Redoute SA (Consumer Discretionary, Multiline Retail)		2,478,004
	31,248	Publicis Groupe (Consumer Discretionary, Media)		1,628,511
	24,149	Sanofi-Aventis SA (Health Care, Pharmaceuticals)		1,544,134
	8,633	Technip SA (Energy, Energy Equipment & Services)		797,157
	28,656	Total SA (Energy, Oil, Gas & Consumable Fuels)		1,518,318
				25,522,990


Germany: 9.04%
	61,344	Adidas-Salomon AG (Consumer Discretionary, Textiles, Apparel & Luxury Goods)		4,007,708
	16,765	Allianz AG (Financials, Insurance)		1,992,305
	22,925	BASF SE (Materials, Chemicals)†		1,828,890
	33,978	Bayer AG (Health Care, Pharmaceuticals)		2,510,885
	23,248	Bayerische Motoren Werke AG (Consumer Discretionary, Automobiles)		1,828,252
	55,431	Daimler AG (Consumer Discretionary, Automobiles)		3,757,695
	16,326	Deutsche Boerse AG (Financials, Diversified Financial Services)		1,130,091
	12,167	Hochtief AG (Industrials, Construction & Engineering)		1,033,082
	24,223	Metro AG (Consumer Staples, Food & Staples Retailing)		1,744,052
	12,044	Muenchener Rueckversicherungs-Gesellschaft AG (Financials, Insurance)		1,825,909
	35,704	SAP AG (Information Technology, Software)		1,817,799
	19,266	Siemens AG (Industrials, Industrial Conglomerates)		2,386,576
				25,863,244


Hong Kong: 0.44%
	56,207	Hong Kong Exchanges & Clearing Limited (Financials, Diversified Financial Services)		1,274,868


India: 0.40%
	22,746	ICICI Bank Limited ADR (Financials, Commercial Banks)«		1,151,857


Israel: 0.47%
	26,095	Teva Pharmaceutical Industries Limited ADR (Health Care, Pharmaceuticals)«		1,360,332


Japan: 12.12%
	33,600	Canon Incorporated (Information Technology, Office Electronics)		1,742,284
	1,250,000	Isuzu Motors Limited (Consumer Discretionary, Automobiles)		5,681,118
	103,300	Komatsu Limited (Industrials, Machinery)		3,126,101
	69,700	Makita Corporation (Industrials, Machinery)		2,850,154
	642,000	Nippon Yusen Kabushiki Kaisha (Industrials, Marine)		2,846,656
	165,000	NKSJ Holdings Incorporated (Financials, Insurance)†		1,215,297
	274,200	Nomura Holdings Incorporated (Financials, Capital Markets)		1,739,291
	592,000	Sumitomo Heavy Industries Limited (Industrials, Machinery)		3,806,183
	16,500	TDK Corporation (Information Technology, Electronic Equipment & Instruments)		1,148,233
	19,700	Tokyo Electron Limited (Information Technology, Semiconductors & Semiconductor Equipment)		1,247,173
	282,000	Toshiba Corporation (Information Technology, Computers & Peripherals)		1,535,214
	63,500	Toyota Motor Corporation (Consumer Discretionary, Automobiles)		2,518,414
	74,200	Uni-Charm Corporation (Consumer Discretionary, Household Products)		2,951,915
	5,792	Yahoo! Japan Corporation (Information Technology, Internet Software & Services)		2,247,173
				34,655,206


Luxembourg: 0.24%
	18,239	ArcelorMittal (Materials, Metals & Mining)		691,699


14 Wells Fargo Advantage VT International Equity Fund		Portfolio of Investments—December 31, 2010


Shares		Security Name	Value
Netherlands: 5.73%
	38,795	ASML Holding NV (Information Technology, Semiconductors & Semiconductor Equipment)	$	1,498,227
	132,493	ING Groep NV (Financials, Diversified Financial Services)		1,288,927
	34,725	Koninklijke Philips Electronics NV (Materials, Chemicals)		1,063,557
	107,567	New World Resources NV (Materials, Metals & Mining)		1,611,670
	90,775	Randstad Holdings NV (Industrials, Commercial Services & Supplies)		4,791,454
	81,195	Unilever NV (Consumer Staples, Food Products)		2,528,070
	177,699	USG People NV (Industrials, Commercial Services & Supplies)		3,609,379
				16,391,284


Norway: 0.51%
	89,713	Telenor ASA (Telecommunication Services, Diversified Telecommunication Services)		1,457,535


Singapore: 0.42%
	107,000	DBS Group Holdings Limited (Financials, Commercial Banks)		1,193,938


South Korea: 1.08%
	8,744	Hyundai Motor Company Limited (Consumer Discretionary, Automobiles)		1,336,756
	2,083	Samsung Electronics Company Limited (Information Technology, Semiconductors & Semiconductor Equipment)		1,741,798
				3,078,554


Spain: 2.56%
	153,229	Banco Bilbao Vizcaya Argentaria SA (Financials, Commercial Banks)		1,547,985
	26,152	Industria de Diseno Textil SA (Consumer Discretionary, Specialty Retail)		1,958,076
	73,949	Repsol YPF SA (Energy, Oil, Gas & Consumable Fuels)		2,060,356
	77,568	Telefonica SA (Telecommunication Services, Diversified Telecommunication Services)		1,758,492
				7,324,909


Sweden: 0.42%
	61,092	Skanska AB (Industrials, Construction & Engineering)		1,210,822


Switzerland: 9.73%
	57,349	ABB Limited (Industrials, Electrical Equipment)		1,277,625
	44,512	Compagnie Financiere Richemont SA (Consumer Discretionary, Textiles, Apparel & Luxury Goods)		2,618,353
	68,513	Credit Suisse Group (Financials, Capital Markets)		2,760,305
	96,383	Nestle SA (Consumer Staples, Food Products)		5,643,817
	57,952	Novartis AG (Health Care, Pharmaceuticals)		3,405,842
	25,532	Roche Holdings AG (Health Care, Pharmaceuticals)		3,741,052
	10,294	Swatch Group AG Class B (Consumer Discretionary, Textiles, Apparel & Luxury Goods)		4,588,812
	107,186	UBS AG (Financials, Capital Markets)		1,759,685
	7,808	Zurich Financial Services AG (Financials, Insurance)		2,022,564
				27,818,055


United Kingdom: 23.47%
	51,304	Anglo American plc (Materials, Metals & Mining)		2,668,001
	164,953	Antofagasta plc (Materials, Metals & Mining)		4,145,711
	941,242	Ashtead Group plc (Industrials, Trading Companies & Distributors)		2,537,290
	653,546	Barclays plc (Financials, Commercial Banks)		2,666,064
	54,463	BG Group plc (Health Care, Health Care Providers & Services)†		1,100,475
	116,176	BHP Billiton plc (Materials, Metals & Mining)		4,620,624
	488,446	BP plc (Energy, Oil, Gas & Consumable Fuels)		3,545,330
	311,406	British Airways plc (Industrials, Airlines)†«		1,323,023
	141,843	Burberry Group plc (Consumer Discretionary, Textiles, Apparel & Luxury Goods)		2,485,696
	171,746	Cookson Group plc (Utilities, Multi-Utilities)		1,763,259
	159,318	Experian Group Limited (Financials, Diversified Financial Services)		1,982,173
	1,350,516	Game Group plc (Consumer Discretionary, Specialty Retail)		1,473,912
	129,495	GlaxoSmithKline plc (Health Care, Pharmaceuticals)		2,503,505



Portfolio of Investments—December 31, 2010		Wells Fargo Advantage VT International Equity Fund 15


Shares		Security Name	Value
United Kingdom (continued)
	883,597	Hays plc (Industrials, Commercial Services & Supplies)	$	1,775,746
	514,150	HSBC Holdings plc (Financials, Commercial Banks)		5,219,288
	95,074	Intercontinental Hotels Group plc (Consumer Discretionary, Hotels, Restaurants & Leisure)		1,842,496
	39,589	Intertek Group plc (Industrials, Commercial Services & Supplies)		1,095,586
	238,921	Kingfisher plc (Consumer Discretionary, Specialty Retail)		981,169
	1,722,131	Lloyds TSB Group plc (Financials, Commercial Banks)		1,764,027
	168,810	Persimmon plc (Consumer Discretionary, Household Durables)		1,096,982
	71,740	Rio Tinto plc (Materials, Metals & Mining)		5,018,140
	118,601	Royal Dutch Shell plc Class A (Energy, Oil, Gas & Consumable Fuels)		3,954,316
	47,019	Standard Chartered plc (Financials, Commercial Banks)		1,264,917
	113,893	Travis Perkins plc (Industrials, Trading Companies & Distributors)		1,878,696
	1,156,645	Vodafone Group plc (Telecommunication Services, Wireless Telecommunication Services)		2,989,912
	159,395	WPP plc (Consumer Discretionary, Media)		1,962,007
	147,564	Xstrata plc (Materials, Metals & Mining)		3,463,656
				67,122,001


United States: 1.76%
	212,969	Monster Worldwide Incorporated (Information Technology, Internet Software & Services)†«		5,032,457


Total Common Stocks (Cost $207,285,634)				275,674,041


			Yield
Preferred Stocks: 1.85%
Germany: 1.85%
	61,825	Fresenius AG (Healthcare, Healthcare Providers & Services)	1.42	%	5,293,255
Total Preferred Stocks (Cost $3,303,063)					5,293,255


Short-Term Investments: 8.30%

Investment Companies: 8.30%
	4,564,754	Wells Fargo Advantage Cash Investment Money Market Fund(l)(u)	0.14		4,564,754
	19,165,760	Wells Fargo Securities Lending Cash Investments LLC(v)(l)(u)	0.27		19,165,760


Total Short-Term Investments (Cost $23,730,514)					23,730,514


Total Investments in Securities (Cost $234,319,211)*	106.53	%		304,697,810

Other Assets and Liabilities, Net	(6.53	)		(18,690,214	)


Total Net Assets	100.00	%	$	286,007,596


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

†		Non-income earning securities.

(l)		Investment in an affiliate.

(v)		Security represents investment of cash collateral received from securities on loan.

(u)		Rate shown is the 7-day annualized yield at period end.

*		Cost for federal income tax purposes is $236,697,347 and net unrealized appreciation (depreciation) consists of:


Gross unrealized appreciation	$	72,548,816
Gross unrealized depreciation		(4,548,353	)

Net unrealized appreciation	$	68,000,463

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


16 Wells Fargo Advantage VT International Equity Fund		Statement of Assets and Liabilities—December 31, 2010


Assets
Investments
In unaffiliated securities (including securities on loan), at value	$	280,967,296
In affiliated securities, at value		23,730,514

Total investments, at value (see cost below)		304,697,810
Foreign currency, at value (see cost below)		205,881
Receivable for investments sold		1,695
Receivable for Fund shares sold		222,495
Receivable for dividends		867,056
Receivable for securities lending income		3,158

Total assets		305,998,095


Liabilities
Payable for investments purchased		219,825
Payable for Fund shares redeemed		303,508
Payable upon receipt of securities loaned		19,165,760
Investment advisory fee payable		88,735
Distribution fees payable		48,953
Due to other related parties		33,338
Accrued expenses and other liabilities		130,380

Total liabilities		19,990,499

Total net assets	$	286,007,596


NET ASSETS CONSIST OF
Paid-in capital	$	209,583,242
Undistributed net investment income		585,247
Accumulated net realized gains on investments		5,376,023
Net unrealized gains on investments		70,463,084

Total net assets	$	286,007,596


COMPUTATION OF NET ASSET VALUE PER SHARE ¹
Net assets — Class 1	$	67,659,401
Shares outstanding — Class 1		11,768,855
Net asset value per share — Class 1	$	5.75
Net assets — Class 2	$	218,348,195
Shares outstanding — Class 2		38,009,104
Net asset value per share — Class 2	$	5.74


Total investments, at cost	$	234,319,211

Securities on loan, at value	$	18,532,591

Foreign currency, at cost	$	192,921


1.		The Fund has an unlimited number of authorized shares.

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


Statement of Operation—For the Year Ended December 31, 2010¹		Wells Fargo Advantage VT International Equity Fund 17


Investment income
Dividends*	$	10,629,161
Income from affiliated securities		14,863
Securities lending income, net		456,618

Total investment income		11,100,642


Expenses
Investment advisory fee		2,711,729
Administration fees
Fund level		477,662
Class 1		24,100
Class 2		73,928
Distribution fees
Class 2		1,183,719
Custody and accounting fees		350,319
Professional fees		65,310
Shareholder report expenses		188,539
Trustees’ fees and expenses		24,547
Transfer agent fees		8
Other fees and expenses		54,755

Total expenses		5,154,616

Less: Fee waivers and/or expense reimbursements		(515,353	)

Net expenses		4,639,263

Net investment income		6,461,379


NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS

Net realized gains (losses) on:
Unaffiliated securities		66,686,579
Future transactions		(15,355,917	)
Forward foreign currency contract transactions		(36,625	)

Net realized gains on investments		51,294,037


Net change in unrealized gains (losses) on:
Unaffiliated securities		(68,439,640	)
Forward foreign currency contract transactions		255,773

Net change in unrealized gains (losses) on investments		(68,183,867	)

Net realized and unrealized gains (losses) on investments		(16,889,830	)

Net decrease in net assets resulting from operations	$	(10,428,451	)


* Net of foreign withholding taxes of	$	1,166,100



1.		After the close of business on July 16, 2010, the Fund acquired the net assets of Evergreen VA International Equity Fund, which became the accounting and performance survivor in the transaction. The information for the period prior to July 19, 2010 is that of Evergreen VA International Equity Fund.

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


18 Wells Fargo Advantage VT International Equity Fund		Statements of Changes in Net Assets


	Year Ended			Year Ended
	December 31, 2010¹			December 31, 2009¹

Operations
Net investment income	$	6,461,379		$	4,719,978
Net realized gains on investments		51,294,037			20,158,691
Net change in unrealized gains (losses) on investments		(68,183,867	)		142,572,202

Net increase (decrease) in net assets resulting from operations		(10,428,451	)		167,450,871


Distributions to shareholders from
Net investment income
Class 1		(634,631	)		(2,183,758	)
Class 2		(6,829,353	)		(3,545,799	)
Net realized gains
Class 1		(2,275,564	)		0
Class 2		(14,614,363	)		0

Total distributions to shareholders		(24,353,911	)		(5,729,557	)


	Shares						Shares
Capital share transactions
Proceeds from shares sold
Class 1		1,134,578			8,695,259			954,664			8,954,470
Class 2		9,758,149			75,995,758			83,166,142			730,867,045

					84,691,017						739,821,515


Reinvestment of distributions
Class 1		285,379			2,910,195			297,921			2,183,758
Class 2		2,088,525			21,443,716			485,726			3,545,799

					24,353,911						5,729,557


Payment for shares redeemed
Class 1		(2,836,858	)		(20,254,823	)		(2,159,169	)		(19,266,378	)
Class 2		(79,487,176	)		(745,184,963	)		(5,456,291	)		(55,438,906	)

					(765,439,786	)					(74,705,284	)


Net asset value of shares issued in acquisition
Class 2					16,640,001						0

Net increase (decrease) in net assets resulting from capital share transactions					(639,754,857	)					670,845,788

Total increase (decrease) in net assets					(674,537,219	)					832,567,102


Net assets
Beginning of period					960,544,815						127,977,713

End of period				$	286,007,596					$	960,544,815

Undistributed net investment income				$	585,247					$	1,800,906


1.		After the close of business on July 16, 2010, the Fund acquired the net assets of Evergreen VA International Equity Fund, which became the accounting and performance survivor in the transaction. The information for the periods prior to July 19, 2010 are those of Evergreen VA International Equity Fund.

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

This page is intentionally left blank.


20 Wells Fargo Advantage VT International Equity Fund⁴		Financial Highlights


	Beginning				Net Realized			Distributions
	Net Asset		Net		and Unrealized			from Net			Distributions
	Value Per		Investment		Gains (Losses)			Investment			from Net
	Share		Income		on Investments			Income			Realized Gains

Class 1
January 1, 2010 to December 31, 2010	$	5.15		0.053		0.78			(0.05	)		(0.18	)
January 1, 2009 to December 31, 2009	$	4.64		0.113		0.55			(0.15	)		0.00
January 1, 2008 to December 31, 2008	$	8.14		0.203		(3.52	)		0.00			(0.18	)
January 1, 2007 to December 31, 2007	$	7.82		0.16		1.02			(0.20	)		(0.66	)
January 1, 2006 to December 31, 2006	$	6.91		0.18		1.41			(0.28	)		(0.40	)

Class 2
January 1, 2010 to December 31, 2010	$	5.15		0.063		0.75			(0.04	)		(0.18	)
January 1, 2009 to December 31, 2009	$	4.64		0.043		0.62			(0.15	)		0.00
January 1, 2008 to December 31, 2008	$	8.15		0.183		(3.51	)		0.00			(0.18	)
January 1, 2007 to December 31, 2007	$	7.84		0.14		1.01			(0.18	)		(0.66	)
January 1, 2006 to December 31, 2006	$	6.93		0.17		1.40			(0.26	)		(0.40	)


1.		Total return calculations would have been lower had certain expenses not been waived or reimbursed during the periods shown. 2. Calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.

3.		Calculated based upon average shares outstanding.

4.		After the close of business on July 16, 2010, the Fund acquired the net assets of Evergreen VA International Equity Fund, which became the accounting and performance survivor in the transaction. The information for the periods prior to July 19, 2010 are those of Evergreen VA International Equity Fund. The per share information has been adjusted to give effect to this transaction.

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


Financial Highlights		Wells Fargo Advantage VT International Equity Fund⁴ 21


Ending
Net Asset		Ratio to Average Net Assets												Portfolio			Net Assets at
Value Per		Net Investment			Gross			Net			Total			Turnover			End of Period
Share		Income			Expenses			Expenses			Return¹			Rate²			(000’s omitted)


$	5.75		1.04	%		0.85	%		0.66	%		16.79	%		60	%	$	67,659
$	5.15		2.31	%		0.68	%		0.68	%		15.95	%		205	%	$	69,407
$	4.64		3.02	%		0.67	%		0.67	%		(41.49	)%		127	%	$	71,286
$	8.14		2.01	%		0.63	%		0.63	%		15.00	%		58	%	$	190,766
$	7.82		2.53	%		0.68	%		0.68	%		23.16	%		74	%	$	175,518


$	5.74		1.22	%		0.97	%		0.89	%		16.50	%		60	%	$	218,348
$	5.15		0.70	%		0.89	%		0.89	%		15.47	%		205	%	$	891,137
$	4.64		2.74	%		0.92	%		0.92	%		(41.60	)%		127	%	$	56,692
$	8.15		1.75	%		0.88	%		0.88	%		14.73	%		58	%	$	118,843
$	7.84		2.28	%		0.93	%		0.93	%		22.89	%		74	%	$	109,836


22 Wells Fargo Advantage VT International Equity Fund		Notes to Financial Statements

1. ORGANIZATION

Wells Fargo Variable 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”). These financial statements report on Wells Fargo Advantage VT International Equity Fund (the “Fund”) (formerly, Wells Fargo Advantage VT International Core Fund) which is a diversified series of the Trust.

Effective at the close of business on July 16, 2010, the Fund acquired the net assets of Evergreen VA International Equity Fund. Evergreen VA International Equity Fund became the accounting and performance survivor in the transaction. As a result, the accounting and performance history of Evergreen VA International Equity Fund has been carried forward in the financial statements contained herein.

2. SIGNIFICANT ACCOUNTING POLICIES

Securities valuation

Securities denominated in foreign currencies are translated into U.S. dollars using the closing rates of exchange in effect on the day of valuation.

Investments in open-end mutual funds and non-registered investment companies are generally valued at net asset value.

The valuation techniques used by the Fund to measure fair value are consistent with the market approach, income approach and/or cost approach, where applicable, for each security type.

Foreign currency translation


Notes to Financial Statements		Wells Fargo Advantage VT International Equity Fund 23

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 in changes in exchange rates.

Forward foreign currency contracts

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

Security loans

Futures contracts

The Fund may be subject to equity price risk in the normal course of pursuing its investment objectives. The Fund may buy and sell futures contracts in order to gain exposure to, or protect against changes in, security values and 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.


24 Wells Fargo Advantage VT International Equity Fund		Notes to Financial Statements

Security transactions and income recognition

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

Distributions to shareholders


Undistributed			Accumulated
Net Investment			Net Realized
Income			Gains on Investment		Paid-in Capital
$	(383,484	)	$	6,139,862	$	(5,756,378	)

Federal and other taxes

As of December 31, 2010, the Fund had estimated net capital loss carryforwards, which are available to offset future net realized capital gains, in the amount of $4,670,848 expiring in 2017.

Class allocations

The separate classes of shares offered by the Fund differ principally in distribution and administration fees. Shareholders of each class bear certain expenses that pertain to that particular class. All shareholders bear the common expenses of a Fund, earn income from the portfolio, and are allocated unrealized gains and losses pro rata based on the average daily net assets of each class, without distinction between share classes. Dividends are determined separately for each class based on income and expenses allocable to each class. Realized gains and losses are allocated to each class pro rata based upon the net assets of each class on the date realized. Differences in per share dividend rates generally result from the relative weightings of pro rata income and realized gain allocations and from differences in separate class expenses, including distribution, shareholder servicing, and administration fees.


Notes to Financial Statements		Wells Fargo Advantage VT International Equity Fund 25

3. FAIR VALUATION MEASUREMENTS

§		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 securities are not necessarily an indication of the risk associated with investing in those securities.

As of December 31, 2010, the inputs used in valuing the Fund’s assets, which are carried at fair value, were as follows:


			Significant Other		Significant
			Observable		Unobservable
	Quoted Prices		Inputs		Inputs
Investments in Securities	(Level 1)		(Level 2)		(Level 3)		Total
Equity securities
Common stocks	$	275,674,041	$	0	$	0	$	275,674,041
Preferred stocks		5,293,255		0		0		5,293,255

Short-term investments
Investment companies		4,564,754		19,165,760		0		23,730,514
	$	285,532,050	$	19,165,760	$	0	$	304,697,810

Further details on the major security types listed above can be found in the Fund’s Portfolio of Investments.

At the end of the period, foreign securities valued in the amount of $194,173,484 in common stocks and $5,293,255 in preferred stocks were transferred out of Level 2 and into Level 1 since adjustments to prices of foreign securities due to movements against a specified benchmark were not necessary at December 31, 2010. Transfers in and transfers out are recognized at the end of the reporting period.

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

Investment advisory fees

Pursuant to the contract, Funds Management is paid an annual investment advisory fee starting at 0.75% and declining to 0.60% as the average daily net assets of the Fund increase. Prior to July 19, 2010, the predecessor fund, Evergreen VA International Equity Fund, paid an investment advisory fee to Evergreen Investment Management Company, LLC (“EIMC”), an affiliate of Funds Management, an annual fee which started at 0.66% and declined to 0.36% as the aggregate average daily net assets of the Fund and its retail counterpart, Evergreen International Equity Fund, increased. For the year ended December 31, 2010, the investment advisory fee was equivalent to an annual rate of 0.50% of the Fund’s average daily net assets.

Funds Management may retain the services of certain investment sub-advisers to provide daily portfolio management to the Fund. The fees related to investment sub-advisory services are borne directly by the investment adviser and do not increase the overall fees paid by the Fund to the investment adviser. Wells Capital Management Incorporated, an affiliate of Funds Management, is the investment sub-adviser to the Fund and is paid a fee by the investment adviser at an annual rate starting at 0.45% and declining to 0.40% as the average daily net assets of the Fund increase.


26 Wells Fargo Advantage VT International Equity Fund		Notes to Financial Statements

Administration and transfer agent fees


		Administration Fees
		(% of Average
	Average Daily Net Assets	Daily Net Assets)
Fund level	First $5 billion		0.05	%
	Next $5 billion		0.04
	Over $10 billion		0.03
Class 1 and Class 2	All asset levels		0.08

Prior to July 19, 2010, the predecessor fund paid Evergreen Service Company, LLC, an affiliate of EIMC and a subsidiary of Wells Fargo, a transfer and dividend disbursing agent fee.

Distribution fees

5. INVESTMENT PORTFOLIO TRANSACTIONS

6. DERIVATIVE TRANSACTIONS

During the year ended December 31, 2010, the Fund entered into long futures contracts to gain market exposure.

As of December 31, 2010, the Fund did not have any open futures contracts but had an average contract amount of $13,818,138 in long futures contracts during the year ended December 31, 2010.

During the year ended December 31, 2010, the Fund entered into forward foreign currency exchange contracts for hedging purposes.

As of December 31, 2010, the Fund did not have any open forward foreign currency exchange contracts but had average market values of $39,214,414 and $59,401,500 in forward foreign currency exchange contracts to buy and forward foreign currency exchange contracts to sell, respectively, during the year ended December 31, 2010.

The fair value, realized gains or losses and change in unrealized gains or losses on derivative instruments are reflected in the appropriate financial statements.


Notes to Financial Statements		Wells Fargo Advantage VT International Equity Fund 27

7. ACQUISITION

After the close of business July 16, 2010, the Fund (named Wells Fargo Advantage VT International Core Fund at the time of the reorganization), which is the legal survivor, acquired the net assets of Evergreen VA International Equity Fund, the accounting and performance survivor. The purpose of the transaction was to combine two funds with similar investment objectives and strategies. The acquisition was accomplished by a tax-free exchange of all of the shares of Evergreen VA International Equity Fund. Shareholders holding Class 1 and Class 2 shares of Evergreen VA International Equity Fund received Class 1 and Class 2, respectively, of the Fund in the reorganization. The exchange ratios and number of shares issued to the Evergreen VA International Equity Fund were as follows:


Acquired Fund	Exchange Ratio		Number of Shares Issued
Evergreen VA International Equity Fund		2.07	12,919,350 Class 1
		2.06	35,012,685 Class 2

The investment portfolio of the Fund with a fair value of $16,596,518, identified cost of $15,909,494 and unrealized gains of $687,024 at July 16, 2010 was the principal assets acquired by the accounting and performance survivor. The shares and net assets of the Fund immediately prior to the acquisition were 3,526,065 shares and $16,640,001, respectively. The aggregate net assets of Evergreen VA International Equity Fund immediately prior to the acquisition was $226,195,623. The aggregate net assets of the Fund immediately after the acquisition was $242,835,624. For financial reporting purposes, assets received and shares issued by the Fund were recorded at fair value; however, the cost basis of the investments received from the Fund was carried forward to align ongoing reporting the Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.

Assuming the acquisition had been completed January 1, 2010, the beginning of the annual reporting period for the Fund, the pro forma results of operations for the year ended December 31, 2010 would have been:


Net investment income	$	6,329,569
Net realized and unrealized losses on investments	$	(18,715,027	)
Net decrease in net assets resulting from operations	$	(12,385,458	)

Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of the Fund that have been included in the Statement of Operations since July 19, 2010.

8. BANK BORROWINGS

For the year ended December 31, 2010, there were no borrowings by the Fund under the agreement.

9. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended December 31, 2010 and December 31, 2009 were as follows: Year ended December 31,


	Year ended December 31,
	2010		2009
Ordinary Income	$	7,463,984	$	5,729,557
Long-term Capital Gain		16,889,927		0


28 Wells Fargo Advantage VT International Equity Fund		Notes to Financial Statements

As of December 31, 2010, the components of distributable earnings on a tax basis were as follows:


Undistributed		Undistributed
Ordinary		Long-Term		Unrealized		Capital Loss
Income		Gain		Gains (Losses)		Carryforward
$	2,216,976	$	10,807,591	$	68,083,669	$	(4,670,848	)

10. INDEMNIFICATION


Report of Independent Registered Public Accounting Firm		Wells Fargo Advantage VT International Equity Fund 29

BOARD OF TRUSTEES AND SHAREHOLDERS OF
WELLS FARGO VARIABLE TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Advantage VT International Equity Fund (the “Fund”), one of the funds constituting the Wells Fargo Variable Trust, as of December 31, 2010, and the related statement of operations for the year then ended, statements of changes in net assets for each of the years in the two year period then ended, and the financial highlights for each of the years in the five year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Advantage VT International Equity Fund as of December 31, 2010, the results of its operations for the year then ended, changes in its net assets for each of the years in the two year period then ended, and the financial highlights for each of the years in the five year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts
February 25, 2011


30 Wells Fargo Advantage VT International Equity Fund		Other Information (Unaudited)

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-800-222-8222, visiting our Web site at www.wellsfargo.com/advantagefunds, or visiting the SEC Web site at www.sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge on the Fund’s Web site at www.wellsfargo.com/advantagefunds or by visiting the SEC Web site at www.sec.gov.

TAX INFORMATION

Pursuant to Section 853 of the Internal Revenue Code, the Fund designates the following amounts as foreign taxes paid for the year ended December 31, 2010. Foreign taxes paid for purposes of Section 853 may be less than actual foreign taxes paid for financial statement purposes.


Foreign Source Income*		Creditable Foreign Taxes Paid
$	1,561,662	$	122,453


*		The Fund did not derive any income from ineligible foreign sources as defined under Section 901(j) of the Internal Revenue Code.


Other Information (Unaudited)		Wells Fargo Advantage VT International Equity Fund 31

PORTFOLIO HOLDINGS INFORMATION

BOARD OF TRUSTEES

Independent Trustees


Name and	Position Held and
Year of Birth	Length of Service	Principal Occupations During Past Five Years	Other Directorships
Peter G. Gordon (Born 1942)	Trustee, since 1998; Chairman, since 2005 (Lead Trustee since 2001)	Co-Founder, Chairman, President and CEO of Crystal Geyser. Water Company. Trustee Emeritus, Colby College	Asset Allocation Trust

Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. 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. Mr. Harris is a certified public accountant.	CIGNA Corporation; Deluxe Corporation; Asset Allocation Trust

Judith M. Johnson (Born 1949)	Trustee, since 2008	Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant.	Asset Allocation Trust

Leroy Keith, Jr. (Born 1939)	Trustee, since 2010	Chairman, Bloc Global Services (development and construction), Trustee of the Evergreen Funds from 1983 to 2010. Former Managing Director, Almanac Capital Management (commodities firm), former Partner, Stonington Partners, Inc. (private equity fund), former Director, Obagi Medical Products Co. and former Director, Lincoln Educational Services.	Trustee, Virtus Fund Complex (consisting of 45 portfolios as of 12/31/10); Director, Diversapack Co.
			(packaging
			company); Asset
			Allocation Trust

David F. Larcker (Born 1951)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of Corporate Governance Research Program and Co-Director of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust


32 Wells Fargo Advantage VT International Equity Fund		Other Information (Unaudited)


Name and	Position Held and
Year of Birth	Length of Service	Principal Occupations During Past Five Years	Other Directorships
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor and Chair of the Department of Insurance and Risk Management, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust

Timothy J. Penny (Born 1951)	Trustee, since 1996	President and CEO of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust

Michael S. Scofield (Born 1943)	Trustee, since 2010	Currently serves on the Investment Company Institute’s Board of Governors and Executive Committee as well the Independent Director’s Counsel Board of Governors and Executive Committee. Former Chairman of the Independent Directors Counsel. Trustee of the Evergreen Funds from 1984 to 2010. Retired Attorney, Law Offices of Michael S. Scofield and former Director and Chairman, Branded Media Corporation (multi-media branding company).	Asset Allocation Trust

Donald C. Willeke (Born 1940)	Trustee, since 1996	Principal of the law firm of Willeke & Daniels. General Counsel of the Minneapolis Employees Retirement Fund from 1984 until its consolidation into the Minnesota Public Employees Retirement Association on June 30, 2010.	Asset Allocation Trust

Officers


Name and	Position Held and
Year of Birth	Length of Service	Principal Occupations During Past Five Years
Karla M. Rabusch (Born 1959)	President, since 2003	Executive Vice President of Wells Fargo Bank, N.A. and President of Wells Fargo Funds Management, LLC since 2003. Senior Vice President and Chief Administrative Officer of Wells Fargo Funds Management, LLC from 2001 to 2003.

C. David Messman (Born 1960)	Secretary, since 2000; Chief Legal Counsel, since 2003	Senior Vice President and Secretary of Wells Fargo Funds Management, LLC since 2001. Vice President and Managing Counsel of Wells Fargo Bank, N.A. since 1996.

Kasey Phillips (Born 1970)	Treasurer, since 2009	Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2006 to 2010. Treasurer of the Evergreen Funds from 2005 to 2010. Vice President and Assistant Vice President of Evergreen Investment Services, Inc. from 1999 to 2006.

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. Assistant Vice President of Evergreen Investment Services, Inc. from 2004 to 2008. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.

Jeremy DePalma (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. Vice President, Evergreen Investment Services, Inc. from 2004 to 2007. Assistant Vice President, Evergreen Investment Services, Inc. from 2000 to 2004 and the head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.


Other Information (Unaudited)		Wells Fargo Advantage VT International Equity Fund 33


Name and	Position Held and
Year of Birth	Length of Service	Principal Occupations During Past Five Years
Debra Ann Early (Born 1964)	Chief Compliance Officer, since 2007	Chief Compliance Officer of Wells Fargo Funds Management, LLC since 2007. Chief Compliance Officer of Parnassus Investments from 2005 to 2007. Chief Financial Officer of Parnassus Investments from 2004 to 2007 and Senior Audit Manager of PricewaterhouseCoopers LLP from 1998 to 2004.


1.		The Statement of Additional Information includes additional information about the Fund’s Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the Fund’s Web site at www.wellsfargo.com/advantagefunds.


34 Wells Fargo Advantage VT International Equity Fund		List of Abbreviations

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


ABAG		— Association of Bay Area Governments
ADR		— American Depositary Receipt
ADS		— American Depository Shares
AMBAC		— American Municipal Bond Assurance Corporation
AMT		— Alternative Minimum Tax
ARM		— Adjustable Rate Mortgages
AUD		— Australian Dollar
BART		— Bay Area Rapid Transit
BRL		— Brazil Real
CAD		— Canadian Dollar
CDA		— Community Development Authority
CDO		— Collateralized Debt Obligation
CDSC		— Contingent Deferred Sales Charge
CGIC		— Capital Guaranty Insurance Company
CGY		— Capital Guaranty Corporation
CHF		— Swiss Franc
CIFG		— CDC (Caisse des Dépôts et Consignations) IXIS Financial Guarantee
COP		— Certificate of Participation
CP		— Commercial Paper
CTF		— Common Trust Fund
DEM		— Deutsche Mark
DKK		— Danish Krone
DW&P		— Department of Water & Power
DWR		— Department of Water Resources
ECFA		— Educational & Cultural Facilities Authority
EDFA		— Economic Development Finance Authority
ETET		— Eagle Tax-Exempt Trust
ETF		— Exchange-Traded Fund
EUR		— Euro
FFCB		— Federal Farm Credit Bank
FGIC		— Financial Guaranty Insurance Corporation
FHA		— Federal Housing Authority
FHAG		— Federal Housing Agency
FHLB		— Federal Home Loan Bank
FHLMC		— Federal Home Loan Mortgage Corporation
FNMA		— Federal National Mortgage Association
FRF		— French Franc
FSA		— Farm Service Agency
GBP		— Great British Pound
GDR		— Global Depositary Receipt
GNMA		— Government National Mortgage Association
GO		— General Obligation
HCFR		— Healthcare Facilities Revenue
HEFA		— Health & Educational Facilities Authority
HEFAR		— Higher Education Facilities Authority Revenue
HFA		— Housing Finance Authority
HFFA		— Health Facilities Financing Authority
HKD		— Hong Kong Dollar
HUD		— Housing & Urban Development
HUF		— Hungarian Forint
IDA		— Industrial Development Authority
IDAG		— Industrial Development Agency
IDR		— Industrial Development Revenue
IEP		— Irish Pound
JPY		— Japanese Yen
KRW		— Republic of Korea Won
LIBOR		— London Interbank Offered Rate
LLC		— Limited Liability Company
LLP		— Limited Liability Partnership
LOC		— Letter of Credit
LP		— Limited Partnership
MBIA		— Municipal Bond Insurance Association
MFHR		— Multi-Family Housing Revenue
MFMR		— Multi-Family Mortgage Revenue
MMD		— Municipal Market Data
MTN		— Medium Term Note
MUD		— Municipal Utility District
MXN		— Mexican Peso
MYR		— Malaysian Ringgit
NATL-RE		— National Public Finance Guarantee Corporation
NLG		— Netherlands Guilder
NOK		— Norwegian Krone
NZD		— New Zealand Dollar
PCFA		— Pollution Control Finance Authority
PCR		— Pollution Control Revenue
PFA		— Public Finance Authority
PFFA		— Public Facilities Financing Authority
plc		— Public Limited Company
PLN		— Polish Zloty
PSFG		— Public School Fund Guaranty
R&D		— Research & Development
RDA		— Redevelopment Authority
RDFA		— Redevelopment Finance Authority
REITS		— Real Estate Investment Trusts
SEK		— Swedish Krona
SFHR		— Single Family Housing Revenue
SFMR		— Single Family Mortgage Revenue
SGD		— Singapore Dollar
SKK		— Slovakian Koruna
SLMA		— Student Loan Marketing Association
SPDR		— Standard & Poor’s Depositary Receipts
STIT		— Short-Term Investment Trust
TBA		— To Be Announced
TRAN		— Tax Revenue Anticipation Notes
TRY		— Turkish Lira
USD		— United States Dollar
XLCA		— XL Capital Assurance
ZAR		— South African Rand

More information about Wells Fargo Advantage Funds is available free upon request. To obtain literature, please write, e-mail, visit the Funds’ Web site, or call:

Wells Fargo Advantage Funds
P.O. Box 8266
Boston, MA 02266-8266
E-mail: wfaf@wellsfargo.com

Web site: www.wellsfargo.com/advantagefunds
Individual Investors: 1- 800-222-8222
Retail Investment Professionals: 1-888-877-9275
Institutional Investment Professionals: 1- 866-765-0778

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.

Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Advantage Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the Funds. The Funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA/SIPC, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED § NO BANK GUARANTEE § MAY LOSE VALUE



© 2011 Wells Fargo Funds Management, LLC. All rights reserved.	www.wellsfargo.com/advantagefunds	200915 02-11 AVT3/AR149 12-10

WELLS FARGO ADVANTAGE VARIABLE TRUST FUNDS

Wells Fargo Advantage VT Intrinsic Value Fund

Reduce clutter. Save trees.

Contents


Letter to Shareholders			2
Performance Highlights			6

Fund Expenses			11
Portfolio of Investments			12

Financial Statements
Statement of Assets and Liabilities			15
Statement of Operations			16
Statements of Changes in Net Assets			17
Financial Highlights			18

Notes to Financial Statements			20

Report of Independent Registered Public Accounting Firm			26

Other Information			27

List of Abbreviations			31

NOT FDIC INSURED § NO BANK GUARANTEE § MAY LOSE VALUE


WELLS FARGO
		INVESTMENT HISTORY

1932		Keystone creates one of the first mutual fund families.

1971		Wells Fargo & Company introduces one of the first institutional index funds.

1978		Wells Fargo applies Markowitz and Sharpe’s research on Modern Portfolio Theory to introduce one of the industry’s first Tactical Asset Allocation (TAA) models in institutional separately managed accounts.

1984		Wells Fargo Stagecoach Funds launches its first asset allocation fund.

1989		The Tactical Asset Allocation (TAA) Model is first applied to Wells Fargo’s asset allocation mutual funds.

1994		Wells Fargo introduces the LifePath Funds, one of the first suites of target date funds (now the *Wells Fargo Advantage Dow Jones Target Date Funds*^SM).

1996		Evergreen Investments and Keystone Funds merge.

1997		Wells Fargo launches *Wells Fargo Advantage WealthBuilder Portfolios*^SM, a fund-of-funds suite of products that includes the use of quantitative models to shift assets among investment styles.

1999		Norwest Advantage Funds and Stagecoach Funds are reorganized into Wells Fargo Funds after the merger of Norwest and Wells Fargo.

2002		Evergreen Retail and Evergreen Institutional companies form the umbrella asset management company, Evergreen Investments.

2005		The integration of Strong Funds with Wells Fargo Funds creates *Wells Fargo Advantage Funds,* resulting in one of the top 20 mutual fund companies in the United States.

2006		*Wells Fargo Advantage Funds* relaunches the target date product line as *Wells Fargo Advantage Dow Jones Target Date Funds.*

2010		The mergers and reorganizations of Evergreen and Wells Fargo Advantage mutual funds are completed, unifying the families under the brand of *Wells Fargo Advantage Funds.*

Wells Fargo Advantage Funds^®

Strength

Expertise

Partnership

Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Advantage Funds^®. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the Funds. The Funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA/SIPC, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED § NO BANK GUARANTEE § MAY LOSE VALUE

Not part of the annual report.

Wells Fargo Advantage Funds offers more than 120 mutual funds across a wide range of asset classes, representing over $236 billion in assets under management, as of December 31, 2010.


Equity Funds

Asia Pacific Fund	Enterprise Fund^†	Opportunity Fund^†
C&B Large Cap Value Fund	Equity Value Fund	Precious Metals Fund
C&B Mid Cap Value Fund	Global Opportunities Fund	Premier Large Company Growth Fund
Capital Growth Fund	Growth Fund	Small Cap Growth Fund
Classic Value Fund	Growth Opportunities Fund	Small Cap Opportunities Fund
Common Stock Fund	Health Care Fund	Small Cap Value Fund
Core Equity Fund	Index Fund	Small Company Growth Fund
Disciplined Global Equity Fund	International Equity Fund	Small Company Value Fund
Disciplined U.S. Core Fund	International Value Fund	Small/Mid Cap Core Fund
Disciplined Value Fund	Intrinsic Small Cap Value Fund	Small/Mid Cap Value Fund
Discovery Fund^†	Intrinsic Value Fund	Social Sustainability Fund^†
Diversified Equity Fund	Intrinsic World Equity Fund	Special Mid Cap Value Fund
Diversified International Fund	Large Cap Core Fund	Special Small Cap Value Fund
Diversified Small Cap Fund	Large Cap Growth Fund	Specialized Technology Fund
Emerging Growth Fund	Large Company Value Fund	Strategic Large Cap Growth Fund
Emerging Markets Equity Fund	Mid Cap Growth Fund	Traditional Small Cap Growth Fund
Endeavor Select Fund^†	Omega Growth Fund	Utility and Telecommunications Fund

Bond Funds

Adjustable Rate Government Fund	Inflation-Protected Bond Fund	Short-Term Bond Fund
California Limited-Term Tax-Free Fund	Intermediate Tax/AMT-Free Fund	Short-Term High Yield Bond Fund
California Tax-Free Fund	International Bond Fund	Short-Term Municipal Bond Fund
Colorado Tax-Free Fund	Minnesota Tax-Free Fund	Strategic Municipal Bond Fund
Government Securities Fund	Municipal Bond Fund	Total Return Bond Fund
High Income Fund	North Carolina Tax-Free Fund	Ultra Short-Term Income Fund
High Yield Bond Fund	Pennsylvania Tax-Free Fund	Ultra Short-Term Municipal Income Fund
Income Plus Fund	Short Duration Government Bond Fund	Wisconsin Tax-Free Fund

Asset Allocation Funds

Asset Allocation Fund	WealthBuilder Equity Portfolio^†	Target 2020 Fund^†
Conservative Allocation Fund	WealthBuilder Growth Allocation Portfolio^†	Target 2025 Fund^†
Diversified Capital Builder Fund	WealthBuilder Growth Balanced Portfolio^†	Target 2030 Fund^†
Diversified Income Builder Fund	WealthBuilder Moderate Balanced Portfolio^†	Target 2035 Fund^†
Growth Balanced Fund	WealthBuilder Tactical Equity Portfolio^†	Target 2040 Fund^†
Index Asset Allocation Fund	Target Today Fund^†	Target 2045 Fund^†
Moderate Balanced Fund	Target 2010 Fund^†	Target 2050 Fund^†
WealthBuilder Conservative Allocation Portfolio^†	Target 2015 Fund^†

Money Market Funds

100% Treasury Money Market Fund	Minnesota Money Market Fund	New Jersey Municipal Money Market Fund
California Municipal Money Market Fund	Money Market Fund	New York Municipal Money Market Fund
Cash Investment Money Market Fund	Municipal Cash Management Money Market Fund	Pennsylvania Municipal Money Market Fund
Government Money Market Fund	Municipal Money Market Fund	Prime Investment Money Market Fund
Heritage Money Market Fund^†	National Tax-Free Money Market Fund	Treasury Plus Money Market Fund

Variable Trust Funds¹

VT Core Equity Fund	VT Intrinsic Value Fund	VT Small Cap Value Fund
VT Discovery Fund^†	VT Omega Growth Fund	VT Total Return Bond Fund
VT Index Asset Allocation Fund	VT Opportunity Fund^†
VT International Equity Fund	VT Small Cap Growth Fund


1.		The Variable Trust Funds are generally available only through insurance company variable contracts.

†		In this report, the Wells Fargo Advantage Discovery Fund^SM, Wells Fargo Advantage Endeavor Select Fund^SM, Wells Fargo Advantage Enterprise Fund^SM, Wells Fargo Advantage Opportunity Fund^SM, Wells Fargo Advantage Social Sustainability Fund^SM, Wells Fargo Advantage WealthBuilder Conservative Allocation Portfolio^SM, Wells Fargo Advantage WealthBuilder Equity Portfolio^SM, Wells Fargo Advantage WealthBuilder Growth Allocation Portfolio^SM, Wells Fargo Advantage WealthBuilder Growth Balanced Portfolio^SM, Wells Fargo Advantage WealthBuilder Moderate Balanced Portfolio^SM, Wells Fargo Advantage WealthBuilder Tactical Equity Portfolio^SM, Wells Fargo Advantage Dow Jones Target Today Fund^SM, Wells Fargo Advantage Dow Jones Target 2010 Fund^SM, Wells Fargo Advantage Dow Jones Target 2015 Fund^SM, Wells Fargo Advantage Dow Jones Target 2020 Fund^SM, Wells Fargo Advantage Dow Jones Target 2025 Fund^SM, Wells Fargo Advantage Dow Jones Target 2030 Fund^SM, Wells Fargo Advantage Dow Jones Target 2035 Fund^SM, Wells Fargo Advantage Dow Jones Target 2040 Fund^SM, Wells Fargo Advantage Dow Jones Target 2045 Fund^SM, Wells Fargo Advantage Dow Jones Target 2050 Fund^SM, Wells Fargo Advantage Heritage Money Market Fund^SM, Wells Fargo Advantage VT Discovery Fund^SM, and Wells Fargo Advantage VT Opportunity Fund^SMare referred to as the Discovery Fund, Endeavor Select Fund, Enterprise Fund, Opportunity Fund, Social Sustainability Fund, WealthBuilder Conservative Allocation Portfolio, WealthBuilder Equity Portfolio, WealthBuilder Growth Allocation Portfolio, WealthBuilder Growth Balanced Portfolio, WealthBuilder Moderate Balanced Portfolio, WealthBuilder Tactical Equity Portfolio, Target Today Fund, Target 2010 Fund, Target 2015 Fund, Target 2020 Fund, Target 2025 Fund, Target 2030 Fund, Target 2035 Fund, Target 2040 Fund, Target 2045 Fund, Target 2050 Fund, Heritage Money Market Fund, VT Discovery Fund, and VT Opportunity Fund, respectively.

Not part of the annual report.



2 Wells Fargo Advantage VT Intrinsic Value Fund		Letter to Shareholders

Karla M. Rabusch,
President
Wells Fargo Advantage Funds

The equity markets delivered strong full-year returns against the backdrop of a strengthening economy.

Dear Valued Shareholder:

We are pleased to provide you with this annual report for the Wells Fargo Advantage VT Intrinsic Value Fund for the 12 months that ended December 31, 2010. The equity markets delivered strong full-year returns against the backdrop of a strengthening economy. However, the year was not without its share of macroeconomic challenges and market volatility, once again highlighting the value of a sound, well-diversified investment strategy. As always, we believe that such a strategy can enable investors to balance risks and opportunities as they pursue long-term financial goals in a dynamic market environment.

The economic recovery stayed on track.

Jobs and housing remained troublesome.

The Fed continued to do its part.



Letter to Shareholders		Wells Fargo Advantage VT Intrinsic Value Fund 3

2010 was another solid year for equities.

It was the second straight year of double-digit total returns for the broad equity market indexes. The S&P 500 Index and the Dow Jones Industrial Average advanced 15.1% and 14.1%, respectively, while the tech-heavy NASDAQ Composite Index returned 18.2%. Investors were generally rewarded across the market-capitalization spectrum— with small- and mid-cap stocks outpacing large-cap stocks—as well as across most economic sectors. In terms of investment styles, growth stocks outperformed their value counterparts for the year.

Investors should keep a long-term perspective.

Along with more upbeat economic data, better-than-expected corporate earnings power played a role in driving stock prices higher.



4 Wells Fargo Advantage VT Intrinsic Value Fund		Letter to Shareholders

Thank you for choosing Wells Fargo Advantage Funds. We appreciate your continued confidence in us and are committed to helping you meet your financial needs. If you have any questions about your investments, please contact your investment professional, call us at 1-800-222-8222, or visit wellsfargo.com/advantagefunds.

Sincerely,

Karla M. Rabusch
President
Wells Fargo Advantage Funds

This page is intentionally left blank.



6 Wells Fargo Advantage VT Intrinsic Value Fund		Performance Highlights (Unaudited)

Wells Fargo Advantage VT Intrinsic Value Fund

INVESTMENT OBJECTIVE

The Fund seeks long-term capital appreciation.

INVESTMENT ADVISER

Wells Fargo Funds Management, LLC

SUB-ADVISER

Metropolitan West Capital Management, Incorporated

PORTFOLIO MANAGERS

Gary Lisenbee
Jeffrey Peck
David Graham

FUND INCEPTION

May 6, 1996

PERFORMANCE SUMMARY

12 MONTH TOTAL RETURN AS OF DECEMBER 31, 2010


Class 2	13.83	%
Russell 1000^® Value Index¹	15.51	%

The adviser has committed, through July 18, 2013, to waive fees and/or reimburse expenses to maintain the contractual expense cap at 1.00% for Class 2 shares, excluding acquired fund fees and certain other expenses. Without these reductions, the Fund’s returns would have been lower. The Fund’s net expense ratio is 1.00% for the Class 2 shares. The Fund’s gross expense ratio is 1.11% for the Class 2 shares.


1.		The Russell 1000^® Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. You cannot invest directly in an index.

2.		The chart compares the performance of the Wells Fargo Advantage VT Intrinsic Value Fund Class 2 for the most recent ten years of the Fund with the Russell 1000^® Value Index. The chart assumes a hypothetical $10,000 investment and reflects all operating expenses of the Fund.



Performance Highlights (Unaudited)		Wells Fargo Advantage VT Intrinsic Value Fund 7

Wells Fargo Advantage VT Intrinsic Value Fund (continued)

MANAGER’S DISCUSSION

Fund Highlights

§		For the 12-month period that ended December 31, 2010, the Fund underperformed its benchmark, the Russell 1000^® Value Index. Unfavorable security selection was the primary source of the Fund’s underperformance.

§		Stock selection in consumer staples, financials, and health care detracted from relative return. Meanwhile, security selection in the information technology, energy, and consumer discretionary sectors added value during the period.

§		Amid market volatility, we continued to adhere to the same bottom-up investment process. We remained focused on identifying high-quality companies in good industries that trade at discounts to our estimates of intrinsic value and possess catalysts that we believe will cause the stock price to rise over the next three to five years.

In a strong rally, the Fund’s cash position detracted from relative results, as did positions in the consumer staples, financials, and health care sectors.

Stock selection in the consumer staples, financials, and health care sectors detracted from relative return during the 12-month period. Among the primary detractors were chocolate and confectionery maker The Hershey Company in consumer staples, Spanish bank Banco Santander S.A. in financials, and pharmaceutical firm Abbott Laboratories in health care. Meanwhile, security selection in the information technology, energy, and consumer discretionary sectors added value. Top contributors included consumer electronics firm Apple Inc. in the information technology sector, integrated energy company Hess Corporation in the energy sector, and designer Polo Ralph Lauren Corporation in the consumer discretionary sector.

Given the market’s strength over the period, cash hindered the Fund’s performance relative to its benchmark, the Russell 1000 Value Index. While the Fund’s cash position is only for transactional (as opposed to tactical allocation) purposes, cash accounted for a significant portion of the shortfall in performance. Many of the Fund’s non-U.S. holdings also detracted from performance relative to the benchmark. Nonetheless, we plan to maintain our global perspective, which we believe allows us to better understand the companies in which we invest by providing us context with respect to their worldwide competitors, suppliers, and customers.

TEN LARGEST EQUITY HOLDINGS³
(AS OF DECEMBER 31, 2010)


International Business Machines Corporation	2.64	%
EMC Corporation	2.55	%
Oracle Corporation	2.36	%
ConocoPhillips	2.33	%
Northrop Grumman Corporation	2.18	%
JPMorgan Chase & Company	2.13	%
eBay Incorporated	2.10	%
Deere & Company	2.09	%
Home Depot Incorporated	2.09	%
Hess Corporation	2.07	%


3.		The ten largest equity holdings are calculated based on the value of the securities divided by total investments of the Fund. Holdings are subject to change and may have changed since the date specified.



8 Wells Fargo Advantage VT Intrinsic Value Fund		Performance Highlights (Unaudited)

Wells Fargo Advantage VT Intrinsic Value Fund (continued)

The Fund’s positioning relative to the index shifted moderately during the period.

Metropolitan West Capital Management, Incorporated began managing the Fund on July 16, 2010. During the nearly six months that we managed the Fund, we added a few high-quality investments to its holdings and divested a few positions that met our sell discipline criteria. However, given our long-term investment perspective, portfolio turnover was less than 10% during the time that we managed the Fund.

As a result of stock price movements and a few trades, the positioning of the Fund relative to the benchmark shifted moderately. The Fund’s significant overweight in consumer staples decreased slightly, as we sold the Fund’s position in cosmetic producer L’Oreal Company. Within the information technology sector, a new purchase of online marketplace provider eBay Inc. increased the Fund’s overweight in this sector. Meanwhile, the Fund’s underweight in utilities increased moderately due to a reduction in the exposure to natural gas and electric holding company Dominion Resources Incorporated. Finally, the purchase of upscale retailer Nordstrom Incorporated augmented the Fund’s exposure to the consumer discretionary sector, resulting in a modest increase in the Fund’s overweight. In all cases, trades were made based on fundamental, bottom-up research, rather than top-down sector allocation decisions.

Despite challenges, we see several bright spots within the global economy.

In all economic recoveries, there are opposing forces at work. The current recovery is no exception. The factors that we identify as potentially weighing on a more robust expansion include consumer deleveraging (though this could have beneficial long-term consequences) and, until recently, sluggish employment and wage growth. Furthermore, state and local governments are facing fiscal restraints that are causing them to delay or curtail spending; even the federal government could move into deficit-reduction mode.

Despite these constraints, however, we see several bright spots within the global economy. Corporate balance sheets are, on average, highly liquid after companies spent several years scaling back capital and other expenditures. In late 2010, we began to see U.S. corporations loosen their purse strings. In typical economic cycles, subsequent to hoarding cash during and immediately after a recession,


4.		Sector distribution is subject to change and is calculated based on the total common stock investments of the Fund.



Performance Highlights (Unaudited)		Wells Fargo Advantage VT Intrinsic Value Fund 9

Wells Fargo Advantage VT Intrinsic Value Fund (continued)

company management teams will first increase capital expenditures and then begin expanding employment. We see no reason why this cycle should prove any different. Furthermore, many emerging countries seem to be on solid financial footing and are growing at a reasonable pace, providing U.S.-based companies with sizeable export growth opportunities.

Keeping macroeconomic observations in mind, it is our objective to identify companies that have the ability to transcend the economic environment and prosper via their own internal strategies in whatever economic scenario should arise. We continue to believe that the current global economic environment favors our research-intensive investment process, which should enable us to add value for our shareholders over a complete market cycle.



10 Wells Fargo Advantage VT Intrinsic Value Fund		Performance Highlights (Unaudited)

Wells Fargo Advantage VT Intrinsic Value Fund (continued)

AVERAGE ANNUAL TOTAL RETURN (%) (AS OF DECEMBER 31, 2010)⁵


	Inception										Expense Ratio⁶
	Date		6 Months*		1 Year		5 Year		10 Year		Gross			Net⁷
Class 2		5/6/1996		21.44		13.83		0.59		1.51		1.11	%		1.00	%
Russell 1000^® Value Index¹				21.74		15.51		1.28		3.26


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


5.		Historical performance shown for Class 2 of the Fund prior to July 19, 2010 is based on the performance of the fund’s predecessor, Wells Fargo Advantage VT Equity Income Fund.

6.		Reflects the expense ratio as stated in the July 19, 2010 prospectus.

7.		The adviser has committed, through July 18, 2013, to waive fees and/or reimburse expenses to maintain the contractual expense cap at 1.00% for Class 2 shares, excluding acquired fund fees and certain other expenses. Without these reductions, the Fund’s returns would have been lower. The Fund’s net expense ratio is 1.00% for Class 2 shares. The Fund’s gross expense ratio is 1.11% for Class 2 shares.



Fund Expenses (Unaudited)		Wells Fargo Advantage VT Intrinsic Value Fund 11

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 July 1, 2010 to December 31, 2010.

Actual expenses

Hypothetical example for comparison purposes


	Beginning		Ending		Expenses
	Account Value		Account Value		Paid During		Net Annual
	07-01-2010		12-31-2010		the Period¹		Expense Ratio
Class 2
Actual	$	1,000.00	$	1,214.39	$	5.64		1.00	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.38	$	5.15		1.00	%


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



12 Wells Fargo Advantage VT Intrinsic Value Fund		Portfolio of Investments—December 31, 2010


Shares		Security Name	Value
Common Stocks: 94.74%

Consumer Discretionary: 10.55%

Media: 2.57%
	47,000	Time Warner Incorporated	$	1,511,990


Multiline Retail: 2.94%
	29,000	JCPenney Company Incorporated«		936,990
	18,770	Nordstrom Incorporated«		795,473
				1,732,463


Specialty Retail: 2.68%
	45,000	Home Depot Incorporated«		1,577,700


Textiles, Apparel & Luxury Goods: 2.36%
	12,500	Polo Ralph Lauren Corporation		1,386,500


Consumer Staples: 12.64%

Beverages: 2.34%
	18,500	Diageo plc ADR«		1,375,105


Food & Staples Retailing: 1.82%
	47,700	Safeway Incorporated«		1,072,773


Food Products: 8.48%
	59,200	ConAgra Foods Incorporated		1,336,736
	27,000	H.J. Heinz Company«		1,335,420
	24,800	The Hershey Company«		1,169,320
	36,600	Unilever NV«		1,149,240
				4,990,716


Energy: 9.51%

Energy Equipment & Services: 2.17%
	56,000	Weatherford International Limited†		1,276,800


Oil, Gas & Consumable Fuels: 7.34%
	25,900	ConocoPhillips		1,763,790
	20,500	Hess Corporation		1,569,070
	27,200	QEP Resources Incorporated		987,632
				4,320,492


Financials: 15.46%

Capital Markets: 1.44%
	46,900	Charles Schwab Corporation		802,459
	760	Northern Trust Corporation		42,190
				844,649


Commercial Banks: 9.31%
	108,168	Banco Santander Central Hispano SA ADR«		1,151,989
	37,000	East West Bancorp Incorporated		723,350
	16,000	M&T Bank Corporation		1,392,800
	204,200	Mitsubishi UFJ Financial Group Incorporated ADR«		1,104,722
	45,640	Zions Bancorporation«		1,105,857
				5,478,718



Portfolio of Investments—December 31, 2010		Wells Fargo Advantage VT Intrinsic Value Fund 13


Shares		Security Name	Value
Diversified Financial Services: 4.71%
	87,100	Bank of America Corporation	$	1,161,914
	37,900	JPMorgan Chase & Company		1,607,718
				2,769,632


Health Care: 8.31%

Health Care Equipment & Supplies: 4.38%
	26,800	Baxter International Incorporated		1,356,616
	21,900	Hospira Incorporated«†		1,219,611
				2,576,227


Pharmaceuticals: 3.93%
	26,300	Abbott Laboratories		1,260,033
	30,100	Eli Lilly & Company		1,054,704
				2,314,737


Industrials: 10.39%

Aerospace & Defense: 5.22%
	21,700	Boeing Company		1,416,142
	25,500	Northrop Grumman Corporation«		1,651,890
				3,068,032


Machinery: 5.17%
	19,000	Deere & Company		1,577,950
	20,500	SPX Corporation«		1,465,545
				3,043,495


Information Technology: 19.74%

Computers & Peripherals: 5.91%
	4,800	Apple Incorporated†		1,548,288
	84,300	EMC Corporation«†		1,930,470
				3,478,758


Internet Software & Services: 2.70%
	57,000	eBay Incorporated†		1,586,310


IT Services: 3.39%
	13,600	International Business Machines Corporation		1,995,936



Semiconductors & Semiconductor Equipment: 2.29%
	41,500	Texas Instruments Incorporated		1,348,750


Software: 5.45%
	28,800	Intuit Incorporated«†		1,419,840
	57,000	Oracle Corporation		1,784,100
				3,203,940


Materials: 2.41%

Chemicals: 2.41%
	41,500	Dow Chemical Company		1,416,810


Telecommunication Services: 2.11%

Wireless Telecommunication Services: 2.11%
	47,000	Vodafone Group plc ADR«		1,242,210



14 Wells Fargo Advantage VT Intrinsic Value Fund		Portfolio of Investments—December 31, 2010


Shares		Security Name								Value
Utilities: 3.62%

Electric Utilities: 2.11%
	23,800	Nextera Energy Incorporated								$	1,237,362


Gas Utilities: 0.91%
	30,740	Questar Corporation«									535,183


Multi-Utilities: 0.60%
	8,280	Dominion Resources Incorporated									353,722


Total Common Stocks (Cost $48,289,495)											55,739,010


Principal					Interest Rate			Maturity Date
Short-Term Investments: 33.82%

Corporate Bonds and Notes: 0.07%
$	36,529	Gryphon Funding Limited(a)(v)(i)				0.00	%		08/05/2011		14,838
	48,048	VFNC Corporation(a)††(v)(i)±				0.26			09/29/2011		26,907
											41,745


Shares					Yield
Investment Companies: 33.75%
	3,182,906	Wells Fargo Advantage Cash Investment Money Market Fund(l)(u)				0.14					3,182,906
	16,669,068	Wells Fargo Securities Lending Cash Investments, LLC(v)(l)(u)				0.27					16,669,068
											19,851,974


Total Short-Term Investments (Cost $19,878,399)											19,893,719


Total Investments in Securities (Cost $68,167,894)*			128.56	%							75,632,729

Other Assets and Liabilities, Net			(28.56	)							(16,800,862	)


Total Net Assets			100.00	%						$	58,831,867


(a)		Security is fair valued by the Management Valuation Team, and in certain instances by the Board of Trustees, in accordance with procedures approved by the Board of Trustees.

††		Securities that may be resold to “qualified institutional buyers” under Rule 144A or securities offered pursuant to Section 4(2) of the Securities Act of 1933, as amended.

(v)		Security represents investment of cash collateral received from securities on loan.

(I)		Investment in an affiliate.

(u)		Rate shown is the 7-day annualized yield at period end.

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

†		Non-income earning securities.

(i)		Illiquid security for which the designation as illiquid is unaudited.

±		Variable rate investments.

*		Cost for federal income tax purposes is $68,313,167 and net unrealized appreciation (depreciation) consists of:


Gross unrealized appreciation	$	9,103,394
Gross unrealized depreciation		(1,783,832	)


Net unrealized appreciation	$	7,319,562

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


Statements of Assets and Liabilities—December 31, 2010		Wells Fargo Advantage VT Intrinsic Value Fund 15


Assets
Investments
In unaffiliated securities (including securities on loan), at value	$	55,780,755
In affiliated securities, at value		19,851,974

Total investments, at value (see cost below)		75,632,729
Receivable for investments sold		29,161
Receivable for Fund shares sold		649
Receivable for dividends		71,261
Receivable for securities lending income		1,243
Prepaid expenses and other assets		1,014

Total assets		75,736,057


Liabilities
Payable for investments purchased		82,045
Payable for Fund shares redeemed		49,701
Payable upon receipt of securities loaned		16,695,493
Investment advisory fee payable		24,451
Distribution fees payable		13,245
Due to other related parties		6,886
Accrued expenses and other liabilities		32,369

Total liabilities		16,904,190

Total net assets	$	58,831,867


NET ASSETS CONSIST OF
Paid-in capital	$	63,154,118
Undistributed net investment income		285,415
Accumulated net realized losses on investments		(12,072,501	)
Net unrealized gains on investments		7,464,835

Total net assets	$	58,831,867


COMPUTATION OF NET ASSET VALUE PER SHARE¹
Net assets — Class 2	$	58,831,867
Shares outstanding — Class 2		4,611,599
Net asset value per share — Class 2	$	12.76


Total investments, at cost	$	68,167,894

Securities on loan, at value	$	16,329,441


1.		The Fund has an unlimited number of authorized shares.

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


16 Wells Fargo Advantage VT Intrinsic Value Fund¹		Statement of Operations—For the Year Ended December 31, 2010


Investment income
Dividends*	$	1,199,979
Income from affiliated securities		3,035
Securities lending income, net		9,920

Total investment income		1,212,934


Expenses
Investment advisory fee		291,718
Administration fees
Fund level		55,640
Class 2²		21,254
Distribution fees
Class 2²		132,599
Custody and accounting fees		12,263
Professional fees		36,388
Shareholder report expenses		20,705
Trustees’ fees and expenses		12,252
Other fees and expenses		3,563

Total expenses		586,382

Less: Fee waivers and/or expense reimbursements		(55,985	)

Net expenses		530,397

Net investment income		682,537


NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized losses on unaffiliated securities		(1,767,637	)
Net change in unrealized gains (losses) on unaffiliated securities		9,056,350

Net realized and unrealized gains (losses) on investments		7,288,713

Net increase in net assets resulting from operations	$	7,971,250


* Net of foreign withholding taxes of		$	8,387


1.		After the close of business on July 16, 2010, the Fund acquired the net assets of Wells Fargo Advantage VT Equity Income Fund and Wells Fargo Advantage VT C&B Large Cap Value Fund. Wells Fargo Advantage VT Equity Income Fund became the accounting and performance survivor in this transaction. The information for the period prior to July 19, 2010 is that of Wells Fargo Advantage VT Equity Income Fund.

2.		After the close of business on July 16, 2010, existing shares of the predecessor fund were renamed Class 2 shares.

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


Statements of Changes in Net Assets		Wells Fargo Advantage VT Intrinsic Value Fund 17


		Year Ended					Year Ended
		December 31, 2010¹					December 31, 2009¹

Operations
Net investment income				$	682,537					$	887,311
Net realized losses on investments					(1,767,637	)					(321,306	)
Net change in unrealized gains (losses) on investments					9,056,350						7,608,040

Net increase in net assets resulting from operations					7,971,250						8,174,045


Distributions to shareholders from
Net investment income — Class 2²					(413,858	)					(910,236	)


	Shares						Shares
Capital shares transactions
Proceeds from shares sold — Class 2²		4,130,068			45,177,175			1,577,619			14,938,428
Reinvestment of distributions — Class 2²		36,555			413,858			91,826			910,236
Payment for shares redeemed — Class 2²		(5,578,424	)		(61,920,948	)		(1,255,724	)		(12,123,032	)
Net asset value of shares issued in acquisitions — Class 2		1,211,148			13,163,306			0			0

Net increase (decrease) in net assets resulting from capital share transactions					(3,166,609	)					3,725,632

Total increase in net assets					4,390,783						10,989,441


Net assets
Beginning of period					54,441,084						43,451,643

End of period				$	58,831,867					$	54,441,084

Undistributed net investment income				$	285,415					$	5,009


1.		After the close of business on July 16, 2010, the Fund acquired the net assets of Wells Fargo Advantage VT Equity Income Fund and Wells Fargo Advantage VT C&B Large Cap Value Fund. Wells Fargo Advantage VT Equity Income Fund became the accounting and performance survivor in this transaction. The information for the periods prior to July 19, 2010 are those of Wells Fargo Advantage VT Equity Income Fund.

2.		After the close of business on July 16, 2010, existing shares of the predecessor fund were renamed Class 2 shares.

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


18 Wells Fargo Advantage VT Intrinsic Value Fund¹		Financial Highlights


	Beginning				Net Realized			Distributions
	Net Asset		Net		and Unrealized			from Net			Distributions
	Value Per		Investment		Gains (Losses)			Investment			from Net
	Share		Income		on Investments			Income			Realized Gains

Class 2³
January 1, 2010 to December 31, 2010	$	11.31		0.16		1.39			(0.10	)		0.00
January 1, 2009 to December 31, 2009	$	9.88		0.19		1.44			(0.20	)		0.00
January 1, 2008 to December 31, 2008	$	18.74		0.30		(6.46	)		(0.28	)		(2.42	)
January 1, 2007 to December 31, 2007	$	19.75		0.30		0.33			(0.30	)		(1.34	)
January 1, 2006 to December 31, 2006	$	16.96		0.28		2.83			(0.28	)		(0.04	)


1.		After the close of business on July 16, 2010, the Fund acquired the net assets of Wells Fargo Advantage VT Equity Income Fund and Wells Fargo Advantage VT C&B Large Cap Value Fund. Wells Fargo Advantage VT Equity Income Fund became the accounting and performance survivor in this transaction. The information for the periods prior to July 19, 2010 are those of Wells Fargo Advantage VT Equity Income Fund.

2.		Total return calculations would have been lower had certain expenses not been waived or reimbursed during the periods shown.

3.		After the close of business on July 16, 2010, existing shares of the predecessor fund were renamed Class 2 shares.

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


Financial Highlights		Wells Fargo Advantage VT Intrinsic Value Fund 19


Ending
Net Asset	Ratio to Average Net Assets												Portfolio			Net Assets at
Value Per	Net Investment			Gross			Net			Total			Turnover			End of Period
Share	Income			Expenses			Expenses			Return²			Rate			(000’s omitted)


$12.76		1.29	%		1.10	%		1.00	%		13.83	%		72	%	$	58,832
$11.31		1.94	%		1.18	%		1.00	%		16.86	%		16	%	$	54,441
$ 9.88		1.95	%		1.15	%		1.00	%		(36.47	)%		9	%	$	43,452
$18.74		1.49	%		1.05	%		1.00	%		2.80	%		20	%	$	94,097
$19.75		1.53	%		1.04	%		1.00	%		18.55	%		14	%	$	116,232


20 Wells Fargo Advantage VT Intrinsic Value Fund		Notes to Financial Statements

1. ORGANIZATION

After the close of business on July 16, 2010, the net assets of Wells Fargo Advantage VT Equity Income Fund and Wells Fargo Advantage VT C&B Large Cap Value Fund were acquired by the Fund, which was created to receive the assets of Wells Fargo Advantage VT Equity Income Fund and Wells Fargo Advantage VT C&B Large Cap Value Fund, in an exchange for shares of the Fund. Wells Fargo Advantage VT Equity Income Fund became the accounting and performance survivor in the reorganizations and as a result the accounting and performance history of Wells Fargo Advantage VT Equity Income Fund has been carried forward in the financial statements contained herein.

2. SIGNIFICANT ACCOUNTING POLICIES

Securities valuation

Investments in open-end mutual funds and non-registered investment companies are generally valued at net asset value.

The valuation techniques used by the Fund to measure fair value are consistent with the market approach, income approach and/or cost approach, where applicable, for each security type.

Security loans


Notes to Financial Statements		Wells Fargo Advantage VT Intrinsic Value Fund 21

Prior to April 1, 2010, Wells Fargo Bank, N.A. acted as the securities lending agent for the predecessor Fund and was entitled to receive for its services 25% of the revenues earned on the securities lending activities. For the year ended December 31, 2010, Wells Fargo Bank, N.A. waived its share of revenues earned on securities lending activities. Such waivers by Wells Fargo Bank, N.A. had the impact of increasing securities lending income on the Statement of Operations. The value of the securities on loan and the liability to return the collateral are shown on the Statement of Assets and Liabilities.

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 instruments in which cash collateral is invested. The amount of securities lending activity undertaken by the Fund fluctuates from time to time. As a result of the reorganizations on July 16, 2010, the Fund holds securities related to defaulted or impaired structured investment vehicles. After the occurrence of a default or impairment of structured investment vehicles purchased in a joint account by the predecessor Fund’s former securities lending agent, as the various participating funds’ lending activity fluctuated, their ratable interest in the joint account, including their ratable exposure to the defaulted or impaired structured investment vehicles fluctuated depending on the relative activity of each participating fund. In order to eliminate the fluctuation of the various participating funds’ ratable exposure to the defaulted or impaired structured investment vehicles, the adviser to the funds recommended to the Board of Trustees, and the Board of Trustees approved, actions designed to fix the allocation of percentage ownership in defaulted or impaired structured investment vehicles among all funds participating in securities lending (“side pocketing”) based on each participating fund’s percentage ownership of the total cash collateral investment joint account as of the date the fixed allocation is implemented. Accordingly, on February 13, 2009 a side pocketing occurred, which fixed each participating fund’s ownership of defaulted or impaired structured investment vehicle in the joint account based on each participating fund’s percentage ownership of the joint account as of such date.

Security transactions and income recognition

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

Distributions to shareholders


Undistributed		Accumulated Net
Net Investment		Realized Losses
Income		on Investments			Paid-in Capital
$	11,727	$	(945	)	$	(10,782	)


22 Wells Fargo Advantage VT Intrinsic Value Fund		Notes to Financial Statements

Federal and other taxes

At December 31, 2010, estimated net capital loss carryforwards, which are available to offset future net realized capital gains, were as follows:


Expiration
2015		2016		2017
$	3,869,744	$	4,073,329	$	3,984,155

3. FAIR VALUATION MEASUREMENTS

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 securities are not necessarily an indication of the risk associated with investing in those securities.

As of December 31, 2010, the inputs used in valuing the Fund’s assets, which are carried at fair value, were as follows:


			Significant Other		Significant
			Observable		Unobservable
	Quoted Prices		Inputs		Inputs
Investments in Securities	(Level 1)		(Level 2)		(Level 3)		Total
Equity securities
Common stocks	$	55,739,010	$	0	$	0	$	55,739,010
Short-term investments
Corporate bonds and notes		0		0		41,745		41,745
Investment companies		3,182,906		16,669,068		0		19,851,974
Total	$	58,921,916	$	16,669,068	$	41,745	$	75,632,729

Further details on the major security types listed above can be found in the Fund’s Portfolio of Investments.


Notes to Financial Statements		Wells Fargo Advantage VT Intrinsic Value Fund 23

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


	Corporate bonds
	and notes
Balance as of December 31, 2009	$	25,045
Realized gains (losses)		0
Change in unrealized gains (losses)		7,296
Purchases		0
Sales		(10,039	)
Transfers into Level 3		0
Transfers out of Level 3		0
Transfers in from acquisitions		19,443
Balance as of December 31, 2010	$	41,745
Change in unrealized gains (losses) included in earnings relating to securities still held at December 31, 2010	$	3,148

Transfers in and out of Level 3 are recognized at the end of the reporting period.

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

Investment advisory fees

Funds Management may retain the services of certain investment sub-advisers to provide daily portfolio management to the Fund. The fees related to investment sub-advisory services are borne directly by the investment adviser and do not increase the overall fees paid by the Fund to the investment adviser. Metropolitan West Capital Management, LLC, a subsidiary of Wells Fargo, is the investment sub-adviser to the Fund and is paid a fee by the investment adviser at an annual rate starting at 0.35% and declining to 0.20% as the average daily net assets of the Fund increase. Prior to July 19, 2010, Wells Capital Management, an affiliate of Funds Management, was the investment sub-adviser to the predecessor fund and was also paid by the investment adviser.

Administration and transfer agent fees


		Administration Fees
		(% of Average
	Average Daily Net Assets	Daily Net Assets)
Fund level	First $5 billion		0.05	%
	Next $5 billion		0.04
	Over $10 billion		0.03
Class 2	All asset levels		0.08

Prior to July 19, 2010, Funds Management received from the predecessor fund an annual fee which started at 0.16% and declined to 0.14% as the average daily net assets increased.


24 Wells Fargo Advantage VT Intrinsic Value Fund		Notes to Financial Statements

Distribution fees

5. INVESTMENT PORTFOLIO TRANSACTIONS

6. ACQUISITIONS

After the close of business on July 16, 2010, the Fund acquired the net assets of Wells Fargo Advantage VT Equity Income Fund and Wells Fargo Advantage VT C&B Large Cap Value Fund. The purpose of the transactions was to combine three funds with similar investment objectives and strategies. The acquisitions were accomplished by a tax-free exchange of all of the shares of Wells Fargo Advantage VT Equity Income Fund and Wells Fargo Advantage VT C&B Large Cap Value Fund. Existing shareholders of Wells Fargo Advantage VT Equity Income Fund and Wells Fargo Advantage VT C&B Large Cap Value Fund received Class 2 shares of the Fund in the reorganizations. The Fund was newly created to receive the assets and shares of Wells Fargo Advantage VT Equity Income Fund and Wells Fargo Advantage VT C&B Large Cap Value Fund. Wells Fargo Advantage VT Equity Income Fund became the accounting and performance survivor in the reorganizations. The investment portfolio of Wells Fargo Advantage VT Equity Income Fund and Wells Fargo Advantage VT C&B Large Cap Value Fund with fair values of $40,288,244 and $13,109,804, respectively, and identified costs of $40,252,417 and $13,443,290, respectively, at July 16, 2010, were the principal assets acquired by the Fund. For financial reporting purposes, assets received and shares issued by the Fund were recorded at fair value; however, the cost basis of the investments received from Wells Fargo Advantage VT Equity Income Fund and Wells Fargo Advantage VT C&B Large Cap Value Fund were carried forward to align ongoing reporting of the Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes. The value of net assets acquired, unrealized gains and losses acquired, exchange ratio and number of shares issued were as follows:


	Value of Net		Unrealized			Exchange		Number of
Acquired Fund	Assets Acquired		Gains (Losses)			Ratio		Shares Issued
Wells Fargo Advantage VT Equity Income Fund	$	40,386,838	$	35,827			1.00	3,715,958 Class 2
Wells Fargo Advantage VT C&B Large Cap Value Fund		13,163,306		(333,486	)		0.79	1,211,148 Class 2

The aggregate net assets of the Fund immediately after the acquisitions were $53,550,144.


Net investment income	$	772,583
Net realized and unrealized gains (losses) on investments	$	7,077,595
Net increase in net assets resulting from operations	$	7,850,178

Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisitions were completed, it is not practicable to separate the amounts of revenue and earnings of Wells Fargo Advantage VT C&B Large Cap Value Fund that have been included in the Fund’s Statement of Operations since July 19, 2010.


Notes to Financial Statements		Wells Fargo Advantage VT Intrinsic Value Fund 25

7. BANK BORROWINGS

For the year ended December 31, 2010, there were no borrowings by the Fund under the agreement.

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended December 31, 2010 and December 31, 2009 were as follows:


	Year ended December 31,
	2010		2009
Ordinary Income	$	413,858	$	910,236

As of December 31, 2010, the components of distributable earnings on a tax basis were as follows:


Undistributed
Ordinary		Unrealized		Capital Loss
Income		Gains (Losses)		Carryforward
$	285,415	$	7,319,562	$	(11,927,228	)

9. INDEMNIFICATION


26 Wells Fargo Advantage VT Intrinsic Value Fund		Report of Independent Registered Public Accounting Firm

BOARD OF TRUSTEES AND SHAREHOLDERS OF
WELLS FARGO VARIABLE TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Advantage VT Intrinsic Value Fund (the “Fund”), one of the funds constituting the Wells Fargo Variable Trust, as of December 31, 2010, and the related statement of operations for the year then ended, statements of changes in net assets for each of the years in the two year period then ended, and the financial highlights for each of the years in the five year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Advantage VT Intrinsic Value Fund as of December 31, 2010, the results of its operations for the year then ended, changes in its net assets for each of the years in the two year period then ended, and the financial highlights for each of the years in the five year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts
February 25, 2011


Other Information (Unaudited)		Wells Fargo Advantage VT Intrinsic Value Fund 27

PROXY VOTING INFORMATION


28 Wells Fargo Advantage VT Intrinsic Value Fund		Other Information (Unaudited)

PORTFOLIO HOLDINGS INFORMATION

BOARD OF TRUSTEES

Independent Trustees


Name and	Position Held and
Year of Birth	Length of Service	Principal Occupations During Past Five Years	Other Directorships
Peter G. Gordon (Born 1942)	Trustee, since 1998; Chairman, since 2005 (Lead Trustee since 2001)	Co-Founder, Chairman, President and CEO of Crystal Geyser. Water Company. Trustee Emeritus, Colby College	Asset Allocation Trust

Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. 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. Mr. Harris is a certified public accountant.	CIGNA Corporation; Deluxe Corporation; Asset Allocation Trust

Judith M. Johnson (Born 1949)	Trustee, since 2008	Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant.	Asset Allocation Trust

Leroy Keith, Jr. (Born 1939)	Trustee, since 2010	Chairman, Bloc Global Services (development and construction), Trustee of the Evergreen Funds from 1983 to 2010. Former Managing Director, Almanac Capital Management (commodities firm), former Partner, Stonington Partners, Inc. (private equity fund), former Director, Obagi Medical Products Co. and former Director, Lincoln Educational Services.	Trustee, Virtus Fund Complex (consisting of 45 portfolios as of 12/31/10); Director, Diversapack Co. (packaging company); Asset Allocation Trust

David F. Larcker (Born 1951)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of Corporate Governance Research Program and Co-Director of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust


Other Information (Unaudited)		Wells Fargo Advantage VT Intrinsic Value Fund 29


Name and	Position Held and
Year of Birth	Length of Service	Principal Occupations During Past Five Years	Other Directorships
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor and Chair of the Department of Insurance and Risk Management, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust

Timothy J. Penny (Born 1951)	Trustee, since 1996	President and CEO of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust

Michael S. Scofield (Born 1943)	Trustee, since 2010	Currently serves on the Investment Company Institute’s Board of Governors and Executive Committee as well the Independent Director’s Counsel Board of Governors and Executive Committee. Former Chairman of the Independent Directors Counsel. Trustee of the Evergreen Funds from 1984 to 2010. Retired Attorney, Law Offices of Michael S. Scofield and former Director and Chairman, Branded Media Corporation (multi-media branding company).	Asset Allocation Trust

Donald C. Willeke (Born 1940)	Trustee, since 1996	Principal of the law firm of Willeke & Daniels. General Counsel of the Minneapolis Employees Retirement Fund from 1984 until its consolidation into the Minnesota Public Employees Retirement Association on June 30, 2010.	Asset Allocation Trust

Officers

Name and	Position Held and
Year of Birth	Length of Service	Principal Occupations During Past Five Years
Karla M. Rabusch (Born 1959)	President, since 2003	Executive Vice President of Wells Fargo Bank, N.A. and President of Wells Fargo Funds Management, LLC since 2003. Senior Vice President and Chief Administrative Officer of Wells Fargo Funds Management, LLC from 2001 to 2003.

C. David Messman (Born 1960)	Secretary, since 2000; Chief Legal Counsel, since 2003	Senior Vice President and Secretary of Wells Fargo Funds Management, LLC since 2001. Vice President and Managing Counsel of Wells Fargo Bank, N.A. since 1996.

Kasey Phillips (Born 1970)	Treasurer, since 2009	Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2006 to 2010. Treasurer of the Evergreen Funds from 2005 to 2010. Vice President and Assistant Vice President of Evergreen Investment Services, Inc. from 1999 to 2006.

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. Assistant Vice President of Evergreen Investment Services, Inc. from 2004 to 2008. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.

Jeremy DePalma (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. Vice President, Evergreen Investment Services, Inc. from 2004 to 2007. Assistant Vice President, Evergreen Investment Services, Inc. from 2000 to 2004 and the head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.


30 Wells Fargo Advantage VT Intrinsic Value Fund		Other Information (Unaudited)


1.		The Statement of Additional Information includes additional information about the Fund’s Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the Fund’s Web site at www.wellsfargo.com/advantagefunds.


List of Abbreviations		Wells Fargo Advantage VT Intrinsic Value Fund 31

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


ABAG	—	Association of Bay Area Governments
ADR	—	American Depositary Receipt
ADS	—	American Depository Shares
AMBAC	—	American Municipal Bond Assurance Corporation
AMT	—	Alternative Minimum Tax
ARM	—	Adjustable Rate Mortgages
AUD	—	Australian Dollar
BART	—	Bay Area Rapid Transit
BRL	—	Brazil Real
CAD	—	Canadian Dollar
CDA	—	Community Development Authority
CDO	—	Collateralized Debt Obligation
CDSC	—	Contingent Deferred Sales Charge
CGIC	—	Capital Guaranty Insurance Company
CGY	—	Capital Guaranty Corporation
CHF	—	Swiss Franc
CIFG	—	CDC (Caisse des Dépôts et Consignations) IXIS Financial Guarantee
COP	—	Certificate of Participation
CP	—	Commercial Paper
CTF	—	Common Trust Fund
DEM	—	Deutsche Mark
DKK	—	Danish Krone
DW&P	—	Department of Water & Power
DWR	—	Department of Water Resources
ECFA	—	Educational & Cultural Facilities Authority
EDFA	—	Economic Development Finance Authority
ETET	—	Eagle Tax-Exempt Trust
ETF	—	Exchange-Traded Fund
EUR	—	Euro
FFCB	—	Federal Farm Credit Bank
FGIC	—	Financial Guaranty Insurance Corporation
FHA	—	Federal Housing Authority
FHAG	—	Federal Housing Agency
FHLB	—	Federal Home Loan Bank
FHLMC	—	Federal Home Loan Mortgage Corporation
FNMA	—	Federal National Mortgage Association
FRF	—	French Franc
FSA	—	Farm Service Agency
GBP	—	Great British Pound
GDR	—	Global Depositary Receipt
GNMA	—	Government National Mortgage Association
GO	—	General Obligation
HCFR	—	Healthcare Facilities Revenue
HEFA	—	Health & Educational Facilities Authority
HEFAR	—	Higher Education Facilities Authority Revenue
HFA	—	Housing Finance Authority
HFFA	—	Health Facilities Financing Authority
HKD	—	Hong Kong Dollar
HUD	—	Housing & Urban Development
HUF	—	Hungarian Forint
IDA	—	Industrial Development Authority
IDAG	—	Industrial Development Agency
IDR	—	Industrial Development Revenue
IEP	—	Irish Pound
JPY	—	Japanese Yen
KRW	—	Republic of Korea Won
LIBOR	—	London Interbank Offered Rate
LLC	—	Limited Liability Company
LLP	—	Limited Liability Partnership
LOC	—	Letter of Credit
LP	—	Limited Partnership
MBIA	—	Municipal Bond Insurance Association
MFHR	—	Multi-Family Housing Revenue
MFMR	—	Multi-Family Mortgage Revenue
MMD	—	Municipal Market Data
MTN	—	Medium Term Note
MUD	—	Municipal Utility District
MXN	—	Mexican Peso
MYR	—	Malaysian Ringgit
NATL-RE	—	National Public Finance Guarantee Corporation
NLG	—	Netherlands Guilder
NOK	—	Norwegian Krone
NZD	—	New Zealand Dollar
PCFA	—	Pollution Control Finance Authority
PCR	—	Pollution Control Revenue
PFA	—	Public Finance Authority
PFFA	—	Public Facilities Financing Authority
plc	—	Public Limited Company
PLN	—	Polish Zloty
PSFG	—	Public School Fund Guaranty
R&D	—	Research & Development
RDA	—	Redevelopment Authority
RDFA	—	Redevelopment Finance Authority
REITS	—	Real Estate Investment Trusts
SEK	—	Swedish Krona
SFHR	—	Single Family Housing Revenue
SFMR	—	Single Family Mortgage Revenue
SGD	—	Singapore Dollar
SKK	—	Slovakian Koruna
SLMA	—	Student Loan Marketing Association
SPDR	—	Standard & Poor’s Depositary Receipts
STIT	—	Short-Term Investment Trust
TBA	—	To Be Announced
TRAN	—	Tax Revenue Anticipation Notes
TRY	—	Turkish Lira
USD	—	United States Dollar
XLCA	—	XL Capital Assurance
ZAR	—	South African Rand

This page is intentionally left blank.

More information about Wells Fargo Advantage Funds is available free upon request. To obtain literature, please write, e-mail, visit the Funds’ Web site, or call:

Wells Fargo Advantage Funds
P.O. Box 8266
Boston, MA 02266-8266
E-mail: wfaf@wellsfargo.com

Web site: www.wellsfargo.com/advantagefunds
Individual Investors: 1-800-222-8222
Retail Investment Professionals: 1-888-877-9275
Institutional Investment Professionals: 1-866-765-0778

Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Advantage Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the Funds. The Funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA/SIPC, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED § NO BANK GUARANTEE § MAY LOSE VALUE

WELLS FARGO ADVANTAGE VARIABLE TRUST FUNDS

•

Wells Fargo Advantage VT Omega Growth Fund

Reduce clutter. Save trees.

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

Contents


Letter to Shareholders			2
Performance Highlights			6
Fund Expenses			11
Portfolio of Investments			12
Financial Statements
Statement of Assets and Liabilities			16
Statement of Operations			17
Statements of Changes in Net Assets			18
Financial Highlights			20
Notes to Financial Statements			22
Report of Independent Registered Public Accounting Firm			28
Other Information			29
List of Abbreviations			33

NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSS VALUE

WELLS FARGO INVESTMENT HISTORY

1932		Keystone creates one of the first mutual fund families.

1971		Wells Fargo & Company introduces one of the first institutional index funds.

1978		Wells Fargo applies Markowitz and Sharpe’s research on Modern Portfolio Theory to introduce one of the industry’s first Tactical Asset Allocation (TAA) models in institutional separately managed accounts.

1984		Wells Fargo Stagecoach Funds launches its first asset allocation fund.

1989		The Tactical Asset Allocation (TAA) Model is first applied to Wells Fargo’s asset allocation mutual funds.

1994		Wells Fargo introduces the LifePath Funds, one of the first suites of target date funds (now the *Wells Fargo Advantage Dow Jones Target Date Funds*^SM).

1996		Evergreen Investments and Keystone Funds merge.

1997		Wells Fargo launches *Wells Fargo Advantage WealthBuilder Portfolios*^SM, a fund-of-funds suite of products that includes the use of quantitative models to shift assets among investment styles.

1999		Norwest Advantage Funds and Stagecoach Funds are reorganized into Wells Fargo Funds after the merger of Norwest and Wells Fargo.

2002		Evergreen Retail and Evergreen Institutional companies form the umbrella asset management company, Evergreen Investments.

2005		The integration of Strong Funds with Wells Fargo Funds creates *Wells Fargo Advantage Funds*, resulting in one of the top 20 mutual fund companies in the United States.

2006		*Wells Fargo Advantage Funds* relaunches the target date product line as *Wells Fargo Advantage Dow Jones Target Date Funds*.

2010		The mergers and reorganizations of Evergreen and Wells Fargo Advantage mutual funds are completed, unifying the families under the brand of *Wells Fargo Advantage Funds.*

Wells Fargo Advantage Funds^®

Strength

Expertise

Partnership

NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSS VALUE

Not part of the annual report.

Wells Fargo Advantage Funds offers more than 120 mutual funds across a wide range of asset classes, representing over $236 billion in assets under management, as of December 31, 2010.

Equity Funds



Asia Pacific Fund	Enterprise Fund^†	Opportunity Fund^†
C&B Large Cap Value Fund	Equity Value Fund	Precious Metals Fund
C&B Mid Cap Value Fund	Global Opportunities Fund	Premier Large Company Growth Fund
Capital Growth Fund	Growth Fund	Small Cap Growth Fund
Classic Value Fund	Growth Opportunities Fund	Small Cap Opportunities Fund
Common Stock Fund	Health Care Fund	Small Cap Value Fund
Core Equity Fund	Index Fund	Small Company Growth Fund
Disciplined Global Equity Fund	International Equity Fund	Small Company Value Fund
Disciplined U.S. Core Fund	International Value Fund	Small/Mid Cap Core Fund
Disciplined Value Fund	Intrinsic Small Cap Value Fund	Small/Mid Cap Value Fund
Discovery Fund^†	Intrinsic Value Fund	Social Sustainability Fund^†
Diversified Equity Fund	Intrinsic World Equity Fund	Special Mid Cap Value Fund
Diversified International Fund	Large Cap Core Fund	Special Small Cap Value Fund
Diversified Small Cap Fund	Large Cap Growth Fund	Specialized Technology Fund
Emerging Growth Fund	Large Company Value Fund	Strategic Large Cap Growth Fund
Emerging Markets Equity Fund	Mid Cap Growth Fund	Traditional Small Cap Growth Fund
Endeavor Select Fund^†	Omega Growth Fund	Utility and Telecommunications Fund

Bond Funds



Adjustable Rate Government Fund	Inflation-Protected Bond Fund	Short-Term Bond Fund
California Limited-Term Tax-Free Fund	Intermediate Tax/AMT-Free Fund	Short-Term High Yield Bond Fund
California Tax-Free Fund	International Bond Fund	Short-Term Municipal Bond Fund
Colorado Tax-Free Fund	Minnesota Tax-Free Fund	Strategic Municipal Bond Fund
Government Securities Fund	Municipal Bond Fund	Total Return Bond Fund
High Income Fund	North Carolina Tax-Free Fund	Ultra Short-Term Income Fund
High Yield Bond Fund	Pennsylvania Tax-Free Fund	Ultra Short-Term Municipal Income Fund
Income Plus Fund	Short Duration Government Bond Fund	Wisconsin Tax-Free Fund

Asset Allocation Funds



Asset Allocation Fund	WealthBuilder Equity Portfolio^†	Target 2020 Fund^†
Conservative Allocation Fund	WealthBuilder Growth Allocation Portfolio^†	Target 2025 Fund^†
Diversified Capital Builder Fund	WealthBuilder Growth Balanced Portfolio^†	Target 2030 Fund^†
Diversified Income Builder Fund	WealthBuilder Moderate Balanced Portfolio^†	Target 2035 Fund^†
Growth Balanced Fund	WealthBuilder Tactical Equity Portfolio^†	Target 2040 Fund^†
Index Asset Allocation Fund	Target Today Fund^†	Target 2045 Fund^†
Moderate Balanced Fund	Target 2010 Fund^†	Target 2050 Fund^†
WealthBuilder Conservative Allocation Portfolio^†	Target 2015 Fund^†

Money Market Funds



100% Treasury Money Market Fund	Minnesota Money Market Fund	New Jersey Municipal Money Market Fund
California Municipal Money Market Fund	Money Market Fund	New York Municipal Money Market Fund
Cash Investment Money Market Fund	Municipal Cash Management Money Market Fund	Pennsylvania Municipal Money Market Fund
Government Money Market Fund	Municipal Money Market Fund	Prime Investment Money Market Fund
Heritage Money Market Fund^†	National Tax-Free Money Market Fund	Treasury Plus Money Market Fund

Variable Trust Funds¹



VT Core Equity Fund	VT Intrinsic Value Fund	VT Small Cap Value Fund
VT Discovery Fund^†	VT Omega Growth Fund	VT Total Return Bond Fund
VT Index Asset Allocation Fund	VT Opportunity Fund^†
VT International Equity Fund	VT Small Cap Growth Fund


An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Wells Fargo Advantage Money Market Funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in a money market fund.

1.		The Variable Trust Funds are generally available only through insurance company variable contracts.

†		In this report, the Wells Fargo Advantage Discovery Fund^SM, Wells Fargo Advantage Endeavor Select Fund^SM, Wells Fargo Advantage Enterprise Fund^SM, Wells Fargo Advantage Opportunity Fund^SM, Wells Fargo Advantage Social Sustainability Fund^SM, Wells Fargo Advantage WealthBuilder Conservative Allocation Portfolio^SM, Wells Fargo Advantage WealthBuilder Equity Portfolio^SM, Wells Fargo Advantage WealthBuilder Growth Allocation Portfolio^SM, Wells Fargo Advantage WealthBuilder Growth Balanced Portfolio^SM, Wells Fargo Advantage WealthBuilder Moderate Balanced Portfolio^SM, Wells Fargo Advantage WealthBuilder Tactical Equity Portfolio^SM, Wells Fargo Advantage Dow Jones Target Today Fund^SM, Wells Fargo Advantage Dow Jones Target 2010 Fund^SM, Wells Fargo Advantage Dow Jones Target 2015 Fund^SM, Wells Fargo Advantage Dow Jones Target 2020 Fund^SM, Wells Fargo Advantage Dow Jones Target 2025 Fund^SM, Wells Fargo Advantage Dow Jones Target 2030 Fund^SM, Wells Fargo Advantage Dow Jones Target 2035 Fund^SM, Wells Fargo Advantage Dow Jones Target 2040 Fund^SM, Wells Fargo Advantage Dow Jones Target 2045 Fund^SM, Wells Fargo Advantage Dow Jones Target 2050 Fund^SM, Wells Fargo Advantage Heritage Money Market Fund^SM, Wells Fargo Advantage VT Discovery Fund^SM, and Wells Fargo Advantage VT Opportunity Fund^SMare referred to as the Discovery Fund, Endeavor Select Fund, Enterprise Fund, Opportunity Fund, Social Sustainability Fund, WealthBuilder Conservative Allocation Portfolio, WealthBuilder Equity Portfolio, WealthBuilder Growth Allocation Portfolio, WealthBuilder Growth Balanced Portfolio, WealthBuilder Moderate Balanced Portfolio, WealthBuilder Tactical Equity Portfolio, Target Today Fund, Target 2010 Fund, Target 2015 Fund, Target 2020 Fund, Target 2025 Fund, Target 2030 Fund, Target 2035 Fund, Target 2040 Fund, Target 2045 Fund, Target 2050 Fund, Heritage Money Market Fund, VT Discovery Fund, and VT Opportunity Fund, respectively.

Not part of the annual report.


2 Wells Fargo Advantage VT Omega Growth Fund		Letter to Shareholders

Karla M. Rabusch,
President
Wells Fargo Advantage Funds

The equity markets delivered strong full-year returns against the backdrop of a strengthening economy.

Dear Valued Shareholder:

We are pleased to provide you with this annual report for the Wells Fargo Advantage VT Omega Growth Fund for the 12 months that ended December 31, 2010. The equity markets delivered strong full-year returns against the backdrop of a strengthening economy. However, the year was not without its share of macroeconomic challenges and market volatility, once again highlighting the value of a sound, well-diversified investment strategy. As always, we believe that such a strategy can enable investors to balance risks and opportunities as they pursue long-term financial goals in a dynamic market environment.

The economic recovery stayed on track.

Jobs and housing remained troublesome.

The Fed continued to do its part.


Letter to Shareholders		Wells Fargo Advantage VT Omega Growth Fund 3

2010 was another solid year for equities.

Investors should keep a long-term perspective.

Along with more upbeat economic data, better-than-expected corporate earnings power played a role in driving stock prices higher.


4 Wells Fargo Advantage VT Omega Growth Fund		Letter to Shareholders

Sincerely,
(-S- KARLA M. RABUSCH)

Karla M. Rabusch
President
Wells Fargo Advantage Funds

This page is intentionally left blank.


6 Wells Fargo Advantage VT Omega Growth Fund		Performance Highlights (Unaudited)

Wells Fargo Advantage VT Omega Growth Fund

INVESTMENT OBJECTIVE

The Fund seeks long-term capital appreciation.

INVESTMENT ADVISER

Wells Fargo Funds Management, LLC

SUB-ADVISER

Wells Capital Management Incorporated

PORTFOLIO MANAGERS

Thomas J. Pence, CFA
Michael T. Smith, CFA

FUND INCEPTION

March 6, 1997

PERFORMANCE SUMMARY


12 MONTH TOTAL RETURN AS OF DECEMBER 31, 2010
Class 2	19.48	%

Russell 3000^® Growth Index¹	17.64	%

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. Current month-end performance is available by calling 1-866-765-0778. Performance figures of the Fund do not reflect fees charged pursuant to the terms of variable life insurance policies and variable annuity contracts.

The adviser has committed, through July 18, 2013, to waive fees and/or reimburse expenses to maintain the contractual expense cap at 1.00% for the Class 2 shares excluding acquired fund fees and certain other expenses. Without these reductions, the Fund’s returns would have been lower. The Fund’s net expense ratio is 1.00% for the Class 2 shares. The Fund’s gross expense ratio is 1.04% for the Class 2 shares.


1.		The Russell 3000^® Growth Index measures the performance of those Russell 3000 Index companies with higher price-to-book ratios and higher forecasted growth values. The stocks in this index are also members of either the Russell 1000 Growth Index or the Russell 2000 Growth Index. You cannot invest directly in an index.

2.		The chart compares the performance of the Wells Fargo Advantage VT Omega Growth Fund Class 2 for the most recent ten years of the Fund with the Russell 3000^® Growth Index. The chart assumes a hypothetical $10,000 investment and reflects all operating expenses of the Fund.


Performance Highlights (Unaudited)		Wells Fargo Advantage VT Omega Growth Fund 7

Wells Fargo Advantage VT Omega Growth Fund (continued)

MANAGER’S DISCUSSION

Fund highlights

•		The Fund outperformed its benchmark, the Russell 3000^® Growth Index³, during the 12-month period that ended December 31, 2010, which was due to positioning in the consumer discretionary and energy sectors. Leading individual contributors were Apple Incorporated, Priceline.com Incorporated, Concho Resources Incorporated, and BorgWarner Incorporated.

•		On May 20, 2010, Thomas J. Pence, CFA, and Michael T. Smith, CFA, assumed management responsibilities for the Fund. From that point on, the Fund outperformed its benchmark due to strong stock selection in the consumer discretionary and information technology sectors. (Prior to May 20, 2010, the Fund underperformed.)

Fundamental Growth team assumed Fund management on May 20, 2010.

The management style prior to May 20, 2010, focused on high-quality companies with sustainable competitive advantages that were uniquely positioned to achieve long-term secular growth, resulting in a relatively low-turnover portfolio of 40 to 50 holdings. Since the Fundamental Growth team assumed responsibilities, the Fund has become more diversified, with more holdings and a broader market-cap exposure, in keeping with our all-cap growth investment approach. In July, the Fund’s benchmark was changed to the Russell 3000 Growth Index to reflect this all-cap approach.

The Fund is managed using the same “surround the company” investment approach that we apply to our other strategies managed by the Fundamental Growth team. We believe that equity markets are inefficient and that bottom-up stock selection supported by grassroots research can add alpha⁵. We seek to invest in companies with credible management and effective business models that generate strong or improving returns on invested capital.

Strong stock selection drove Fund performance from May 20 on.

Since May 20, we have benefited from strong stock selection in consumer discretionary and information technology. Auto parts suppliers TRW Automotive Holdings Corporation and BorgWarner Incorporated continued to generate strong earnings amid the rebound in domestic and international auto production. Online


TEN LARGEST EQUITY HOLDINGS⁴
(AS OF DECEMBER 31, 2010)

Apple Incorporated	4.09	%
Oracle Corporation	2.17	%
Cummins Incorporated	1.68	%
BorgWarner Incorporated	1.68	%
NetLogic Microsystems Incorporated	1.58	%
ConocoPhillips	1.57	%
Precision Castparts Corporation	1.54	%
Amazon.com Incorporated	1.48	%
Eaton Corporation	1.47	%
SBA Communications Corporation Class A	1.43	%


3.		On July 19, 2010, the Fund’s benchmark was changed to the Russell 3000 Growth Index to reflect the Fund’s all-cap investment approach.

4.		The ten largest equity holdings are calculated based on the value of the securities divided by total investments of the Fund. Holdings are subject to change and may have changed since the date specified.

5.		Alpha measures the excess return of an investment vehicle, such as a mutual fund, relative to the return of its benchmark, given its level of risk (as measured by beta). Alpha is based on historical performance and does not represent future results.


8 Wells Fargo Advantage VT Omega Growth Fund		Performance Highlights (Unaudited)

Wells Fargo Advantage VT Omega Growth Fund (continued)

travel retailer Priceline.com delivered solid earnings and guidance with better-than-expected growth in Europe. The information technology sector was marked by increasingly selective investor behavior. While we remained focused on key growth themes of data center growth, virtualization, and smartphone adoption, performance has been driven by company-specific innovations that provide growth regardless of changes in investor sentiment. For example, F5 Networks Incorporated, a networking equipment provider, contributed through product differentiation, leading to market share gains and strong earnings growth.

The main detractor from Fund performance during the period since May 20 was Equinix Incorporated, a leading operator of offsite data centers. We believe the company is uniquely positioned for long-term growth as more companies outsource IT infrastructure and move to a “cloud computing” environment. Unfortunately, integration issues with a company acquired by Equinix Incorporated in April led to a disappointing revenue preannouncement and share price decline. We have since reassessed our thesis for Equinix Incorporated and determined that this short-term setback may not affect the company’s long-term growth potential. The market appeared to reach a similar conclusion. The stock recovered considerably from its low, yet it was still down for the period.

The Fund underperformed prior to May 20.

The Fund underperformed from January 1 until May 20—due to unfavorable stock selection in information technology and financials. Within technology, Visa declined due to the impact of potential debit interchange rate reductions, while Google shares fell—partly as a result of the company’s public debate with China. Within consumer discretionary, online retail holdings Blue Nile and Amazon.com accounted for most of the weakness in the sector. Blue Nile’s underperformance was partially attributable to concerns about strength in its end markets. Amazon.com struggled when the firm’s forward earnings guidance came in below consensus estimates.

We are optimistic entering 2011.

As we proceed into 2011, many companies exhibit sound balance sheets, strong free cash flows, and reasonable share valuations. Accordingly, we remain upbeat about prospects for continued corporate earnings growth and positive equity returns.


6.		Sector distribution is subject to change and is calculated based on the total common stock investments of the Fund.


Performance Highlights (Unaudited)		Wells Fargo Advantage VT Omega Growth Fund 9

Wells Fargo Advantage VT Omega Growth Fund (continued)

We believe that the long-awaited transition from government stimulus to private-sector spending is finally occurring. After years of frugality, and with new tax incentives serving as a catalyst, company management teams are beginning to invest their massive cash reserves in research and development, capital equipment, technology, and labor. As a precursor to future capital spending, share repurchases and merger and acquisition activity increased during 2010. We also believe that consumer confidence and spending will continue to improve as the labor market slowly recovers. As top-line demand picks up, many companies are poised for incremental profit margin expansion that will drive further earnings growth.


10 Wells Fargo Advantage VT Omega Growth Fund		Performance Highlights (Unaudited)

Wells Fargo Advantage VT Omega Growth Fund (continued)

AVERAGE ANNUAL TOTAL RETURN (%) (AS OF DECEMBER 31, 2010)⁷


											Expense Ratios⁸
	Inception Date		6 Months*		1 Year		5 Year		10 Year		Gross			Net⁹

Class 1		3/6/1997		31.03		19.79		8.31		3.98		0.79	%		0.75	%
Class 2		7/31/2002		30.86		19.48		8.02		3.75		1.04	%		1.00	%
Russell 3000^® Growth Index¹				26.83		17.64		3.88		0.30


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

Stock fund values fluctuate in response to the activities of individual companies and general market and economic conditions. 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). This Fund is exposed to smaller company securities risk. Consult the Fund’s prospectus for additional information on these and other risks.


7.		Performance shown for Class 2 shares prior to its inception reflects the performance of Class 1 shares, adjusted to reflect the higher expenses applicable to Class 2 shares. Historical performance shown for all classes of the Fund prior to July 19, 2010 is based on the performance of the fund’s predecessor, Evergreen VA Omega Fund.

8.		Reflects the expense ratio as stated in the July 19, 2010 prospectus.

9.		The adviser has committed, through July 18, 2013, to waive fees and/or reimburse expenses to maintain the contractual expense cap at 0.75% for Class 1 shares and 1.00% for Class 2 shares, excluding acquired fund fees and certain other expenses. Without these reductions, the Fund’s returns would have been lower.


Fund Expenses (Unaudited)		Wells Fargo Advantage VT Omega Growth Fund 11

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 July 1, 2010 to December 31, 2010.

Actual expenses

Hypothetical example for comparison purposes


	Beginning		Ending		Expenses
	Account Value		Account Value		Paid During		Net Annual
	07-01-2010		12-31-2010		the Period¹		Expense Ratio

Class 1
Actual	$	1,000.00	$	1,310.34	$	4.41		0.75	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.66	$	3.86		0.75	%

Class 2
Actual	$	1,000.00	$	1,308.62	$	5.88		1.00	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.38	$	5.15		1.00	%


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


12 Wells Fargo Advantage VT Omega Growth Fund		Portfolio of Investments—December 31, 2010


Shares		Security Name	Value
Common Stocks: 99.03%

Consumer Discretionary: 17.46%

Auto Components: 3.42%
	40,900	BorgWarner Incorporated«†	$	2,959,524
	33,205	TRW Automotive Holdings Corporation†		1,749,903

				4,709,427


Automobiles: 1.38%
	28,000	Daimler AG		1,892,240


Hotels, Restaurants & Leisure: 1.22%
	40,500	Marriott International Incorporated Class A		1,682,370


Internet & Catalog Retail: 3.53%
	14,500	Amazon.com Incorporated†		2,610,000
	5,600	Priceline.com Incorporated†		2,237,480

				4,847,480


Media: 1.29%
	34,294	Scripps Networks Interactive Incorporated Class A		1,774,715


Multiline Retail: 4.12%
	68,422	Dollar General Corporation†		2,098,503
	30,200	Kohl’s Corporation«†		1,641,068
	76,200	Macy’s Incorporated		1,927,860

				5,667,431


Specialty Retail: 2.50%
	54,800	Dick’s Sporting Goods Incorporated«†		2,055,000
	22,870	Jo-Ann Stores Incorporated«†		1,377,231

				3,432,231


Energy: 9.84%

Energy Equipment & Services: 1.51%
	50,800	Halliburton Company		2,074,164


Oil, Gas & Consumable Fuels: 8.33%
	72,600	Brigham Exploration Company«†		1,977,624
	26,244	Concho Resources Incorporated«†		2,300,811
	40,800	ConocoPhillips		2,778,480
	30,651	Newfield Exploration Company†		2,210,244
	25,100	Pioneer Natural Resources Company«		2,179,182

				11,446,341


Financials: 4.46%

Capital Markets: 1.14%
	8,214	BlackRock Incorporated		1,565,424


Commercial Banks: 1.08%
	61,800	Itau Unibanco Holding SA ADS«		1,483,816


Consumer Finance: 0.95%
	30,503	American Express Company		1,309,189


Portfolio of Investments—December 31, 2010		Wells Fargo Advantage VT Omega Growth Fund 13


Shares		Security Name	Value
Diversified Financial Services: 1.29%
	375,620	Citigroup Incorporated†	$	1,776,683


Health Care: 12.08%

Biotechnology: 1.61%
	27,446	Alexion Pharmaceuticals Incorporated«†		2,210,775


Health Care Equipment & Supplies: 4.13%
	23,607	Alere Incorporated«†		864,016
	35,714	Sirona Dental Systems Incorporated«†		1,492,131
	28,300	Varian Medical Systems Incorporated«†		1,960,624
	49,700	Volcano Corporation«†		1,357,307

				5,674,078


Health Care Providers & Services: 3.77%
	39,359	Express Scripts Incorporated†		2,127,354
	15,500	Laboratory Corporation of America Holdings«†		1,362,760
	24,069	McKesson Corporation		1,693,976

				5,184,090


Health Care Technology: 1.54%
	22,400	Cerner Corporation«†		2,122,176


Life Sciences Tools & Services: 1.03%
	85,600	Bruker Corporation«†		1,420,960


Industrials: 16.29%

Aerospace & Defense: 4.00%
	46,400	Embraer SA		1,364,160
	19,500	Precision Castparts Corporation«		2,714,595
	19,700	TransDign Group Incorporated†		1,418,597

				5,497,352


Airlines: 1.02%
	111,600	Delta Air Lines Incorporated«†		1,406,160


Electrical Equipment: 1.80%
	43,400	Emerson Electric Company		2,481,178


Machinery: 5.40%
	36,800	AGCO Corporation«†		1,864,288
	26,964	Cummins Incorporated		2,966,310
	25,500	Eaton Corporation		2,588,505

				7,419,103


Professional Services: 1.04%
	22,700	Manpower Incorporated«		1,424,652


Road & Rail: 1.44%
	21,400	Union Pacific Corporation		1,982,924


Trading Companies & Distributors: 1.59%
	41,300	Wesco International Incorporated«†		2,180,640


14 Wells Fargo Advantage VT Omega Growth Fund		Portfolio of Investments—December 31, 2010


Shares		Security Name	Value
Information Technology: 31.22%

Communications Equipment: 2.86%
	69,270	Finisar Corporation†	$	2,056,626
	50,600	Juniper Networks Incorporated«†		1,868,152

				3,924,778


Computers & Peripherals: 8.06%
	22,400	Apple Incorporated†		7,225,344
	88,800	EMC Corporation†		2,033,520
	33,200	NetApp Incorporated«†		1,824,672

				11,083,536


Internet Software & Services: 3.21%
	12,800	Equinix Incorporated†		1,040,128
	15,400	F5 Networks Incorporated†		2,004,464
	19,900	Sina Corporation«†		1,369,518

				4,414,110


IT Services: 2.38%
	63,319	Gartner Incorporated«†		2,102,191
	38,840	Hisoft Technology International†		1,172,968

				3,275,159


Semiconductors & Semiconductor Equipment: 2.04%
	89,090	NetLogic Microsystems Incorporated†		2,798,317


Software: 12.67%
	36,500	Citrix Systems Incorporated†		2,496,965
	29,000	Concur Technologies Incorporated«†		1,505,970
	42,075	Longtop Financial Technologies Limited ADS«†		1,522,274
	122,500	Oracle Corporation		3,834,250
	43,889	Reald Incorporated†		1,137,603
	28,500	Red Hat Incorporated«†		1,301,025
	13,200	Salesforce.com Incorporated«†		1,742,400
	61,317	SuccessFactors Incorporated«†		1,775,740
	106,700	TIBCO Software Incorporated†		2,103,057

				17,419,284


Materials: 2.42%

Chemicals: 1.27%
	50,700	LyondellBasell Class A†		1,744,080


Containers & Packaging: 1.15%
	48,300	Bemis Company Incorporated«		1,577,479


Telecommunication Services: 5.26%

Wireless Telecommunication Services: 5.26%
	46,500	American Tower Corporation Class A†		2,401,260
	51,400	NII Holdings Incorporated†		2,295,524
	61,803	SBA Communications Corporation Class A«†		2,530,215
				7,226,999


Total Common Stocks (Cost $107,133,771)				136,129,341


Portfolio of Investments—December 31, 2010		Wells Fargo Advantage VT Omega Growth Fund 15


Principal		Security Name	Interest Rate			Maturity Date		Value
Short-Term Investments: 29.44%

Corporate Bonds & Notes: 0.17%
$	209,154	Gryphon Funding Limited(v)(a)(i)		0.00	%		08/05/2011	$	84,958
	275,114	VFNC Corporation(v)††±(a)(i)		0.26			09/29/2011		154,064

									239,022


Shares			Yield
Investment Companies: 29.27%
	1,692,656	Wells Fargo Advantage Cash Investment Money Market Fund(l)(u)		0.14					1,692,656
	38,542,212	Wells Fargo Securities Lending Cash Investments LLC(v)(l)(u)		0.27					38,542,212

									40,234,868


Total Short-Term Investments (Cost $40,386,174)									40,473,890


Total Investments in Securities (Cost $147,519,945)*	128.47	%		176,603,231

Other Assets and Liabilities, Net	(28.47	)		(39,133,188	)


Total Net Assets	100.00	%	$	137,470,043


(v)		Security represents investment of cash collateral received from securities on loan.

(l)		Investment in an affiliate.

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

†		Non-income earning securities.

††		Securities that may be resold to “qualified institutional buyers” under Rule 144A or securities offered pursuant to Section 4(2) of the Securities Act of 1933, as amended.

±		Variable rate investments.

(a)		Security is fair valued by the Management Valuation Team, and in certain instances by the Board of Trustees, in accordance with procedures approved by the Board of Trustees.

(i)		Illiquid security for which the designation as illiquid is unaudited.

(u)		Rate shown is the 7-day annualized yield at period end.

*		Cost for federal income tax purposes is $147,733,110 and net unrealized appreciation (depreciation) consists of:


Gross unrealized appreciation	$	29,257,482
Gross unrealized depreciation		(387,361	)


Net unrealized appreciation	$	28,870,121

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


16 Wells Fargo Advantage VT Omega Growth Fund		Statement of Assets and Liabilities—December 31, 2010


Assets
Investments
In unaffiliated securities (including securities on loan), at value	$	136,368,363
In affiliated securities, at value		40,234,868

Total investments, at value (see cost below)		176,603,231
Receivable for investments sold		447,712
Receivable for Fund shares sold		35,065
Receivable for dividends		48,091
Receivable for securities lending income		4,907
Prepaid expenses and other assets		1,920

Total assets		177,140,926


Liabilities
Payable for investments purchased		780,782
Payable for Fund shares redeemed		43,953
Payable upon receipt of securities loaned		38,693,518
Investment advisory fee payable		66,689
Distribution fees payable		17,578
Due to other related parties		16,515
Accrued expenses and other liabilities		51,848

Total liabilities		39,670,883

Total net assets	$	137,470,043


NET ASSETS CONSIST OF
Paid-in capital	$	119,333,189
Accumulated net investment loss		(3,029	)
Accumulated net realized losses on investments		(10,943,403	)
Net unrealized gains on investments		29,083,286

Total net assets	$	137,470,043


COMPUTATION OF NET ASSET VALUE PER SHARE¹
Net assets – Class 1	$	54,246,222
Shares outstanding – Class 1		2,236,058
Net asset value per share – Class 1	$	24.26
Net assets – Class 2	$	83,223,821
Shares outstanding – Class 2		3,467,902
Net asset value per share – Class 2	$	24.00

Total investments, at cost	$	147,519,945

Securities on loan, at value	$	37,613,683


1.		The Fund has an unlimited number of authorized shares.

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


Statement of Operations—For the Year Ended December 31, 2010¹		Wells Fargo Advantage VT Omega Growth Fund 17


Investment income
Dividends*	$	663,788
Income from affiliated securities		2,007
Securities lending income, net		49,931

Total investment income		715,726


Expenses
Investment advisory fee		544,732
Administration fees
Fund level		72,082
Class 1		18,344
Class 2		28,526
Distribution fees
Class 2		125,080
Custody and accounting fees		18,920
Professional fees		41,094
Shareholder report expenses		32,301
Trustees’ fees and expenses		7,358
Transfer agent fees		276
Other fees and expenses		1,926

Total expenses		890,639
Less: Fee waivers and/or expense reimbursements		(10,966	)

Net expenses		879,673

Net investment loss		(163,947	)


NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on unaffiliated securities		13,266,207
Net change in unrealized gains (losses) on unaffiliated securities		12,283,320

Net realized and unrealized gains (losses) on investments		25,549,527

Net increase in net assets resulting from operations	$	25,385,580


* Net of foreign withholding taxes of	$	13,604


1.		After the close of business on July 16, 2010, the Fund acquired the net assets of Evergreen VA Omega Fund, which became the accounting and performance survivor in the transaction. The information for the period prior to July 19, 2010 is that of Evergreen VA Omega Fund.

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


18 Wells Fargo Advantage VT Omega Growth Fund		Statements of Changes in Net Assets


	Year Ended						Year Ended
	December 31, 2010¹						December 31, 2009¹

Operations
Net investment income (loss)				$	(163,947	)				$	538,120
Net realized gains (losses) on investments					13,266,207						(3,290,873	)
Net change in unrealized gains (losses) on investments					12,283,320						28,130,011

Net increase in net assets resulting from operations					25,385,580						25,377,258


Distributions to shareholders from
Net investment income
Class 1					(439,899	)					(547,686	)
Class 2					(140,680	)					(269,517	)

Total distributions to shareholders					(580,579	)					(817,203	)


	Shares						Shares
Capital shares transactions
Proceeds from shares sold
Class 1		428,669			8,952,888			1,104,196			18,978,953
Class 2		494,435			9,722,414			692,367			11,499,013

					18,675,302						30,477,966


Reinvestment of distributions
Class 1		21,311			439,899			41,840			547,686
Class 2		6,845			140,680			20,780			269,517

					580,579						817,203


Payment for shares redeemed
Class 1		(1,143,173	)		(23,005,725	)		(707,734	)		(11,521,894	)
Class 2		(1,245,566	)		(25,157,874	)		(676,272	)		(10,191,188	)

					(48,163,599	)					(21,713,082	)


Net asset value of shares issued in acquisitions Class 2		2,568,116			48,569,090			0			0

Net increase in net assets resulting from capital share transactions					19,661,372						9,582,087

Total increase in net assets					44,466,373						34,142,142

Net assets

Beginning of period					93,003,670						58,861,528

End of period				$	137,470,043					$	93,003,670

Undistributed (accumulated) net investment income (loss)				$	(3,029	)				$	536,244


1.		After the close of business on July 16, 2010, the Fund acquired the net assets of Evergreen VA Omega Fund, which became the accounting and performance survivor in the transaction. The information for the periods prior to July 19, 2010 are of those of Evergreen VA Omega Fund.

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

This page is intentionally left blank.


20 Wells Fargo Advantage VT Omega Growth Fund⁴		Financial Highlights


	Beginning		Net			Net Realized			Distributions			Ending
	Net Asset		Investment			and Unrealized			from Net			Net Asset
	Value Per		Income			Gains (Losses)			Investment			Value Per
	Share		(Loss)			on Investments			Income			Share

Class 1
January 1, 2010 to December 31, 2010	$	20.42		0.03			3.98			(0.17	)	$	24.26
January 1, 2009 to December 31, 2009	$	14.43		0.13			6.09			(0.23	)	$	20.42
January 1, 2008 to December 31, 2008	$	19.82		0.23			(5.62	)		0.00		$	14.43
January 1, 2007 to December 31, 2007	$	17.80		0.08			2.05			(0.11	)	$	19.82
January 1, 2006 to December 31, 2006	$	16.79		0.05			0.96			0.00		$	17.80
Class 2
January 1, 2010 to December 31, 2010	$	20.19		(0.07	)³		3.99			(0.11	)	$	24.00
January 1, 2009 to December 31, 2009	$	14.25		0.11			6.00			(0.17	)	$	20.19
January 1, 2008 to December 31, 2008	$	19.63		0.15			(5.53	)		0.00		$	14.25
January 1, 2007 to December 31, 2007	$	17.62		0.01			2.05			(0.05	)	$	19.63
January 1, 2006 to December 31, 2006	$	16.67		0.01			0.94			0.00		$	17.62


1.		Total return calculations would have been lower had certain expenses not been waived or reimbursed during the periods shown.

2.		Calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.

3.		Calculated based on average shares outstanding.

4.		After the close of business on July 16, 2010, the Fund acquired the net assets of Evergreen VA Omega Fund, which became the accounting and performance survivor in the transaction. The information for the periods prior to July 19, 2010 are of those of Evergreen VA Omega Fund.

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


Financial Highlights		Wells Fargo Advantage VT Omega Growth Fund 21


Ratio to Average Net Assets (Annualized)										Portfolio			Net Assets at
Net Investment	Gross			Net			Total			Turnover			End of Period
Income (Loss)	Expenses			Expenses			Return¹			Rate²			(000’s omitted)
\| \| \| \| \|
0.01%		0.75	%		0.74	%		19.79	%		160	%	$	54,246
0.86%		0.76	%		0.76	%		43.97	%		28	%	$	59,807
1.11%		0.72	%		0.72	%		(27.19	)%		46	%	$	35,952
0.32%		0.71	%		0.71	%		11.96	%		31	%	$	67,773
0.26%		0.70	%		0.70	%		6.02	%		126	%	$	78,068

(0.34)%		1.01	%		1.00	%		19.48	%		160	%	$	83,224
0.63%		1.00	%		1.00	%		43.58	%		28	%	$	33,196
0.86%		0.97	%		0.97	%		(27.41	)%		46	%	$	22,910
0.07%		0.96	%		0.96	%		11.74	%		31	%	$	38,137
0.02%		0.95	%		0.95	%		5.70	%		126	%	$	37,036


22 Wells Fargo Advantage VT Omega Growth Fund		Notes to Financial Statements

1. ORGANIZATION

After the close of business on July 16, 2010, the net assets of Evergreen VA Omega Fund and Wells Fargo Advantage VT Large Company Growth Fund were acquired by the Fund, which was created to receive the assets of Evergreen VA Omega Fund and Wells Fargo Advantage VT Large Company Growth Fund, in an exchange for shares of the Fund. Evergreen VA Omega Fund became the accounting and performance survivor in the reorganizations and as a result the accounting and performance history of Evergreen VA Omega Fund has been carried forward in the financial statements contained herein.

2. SIGNIFICANT ACCOUNTING POLICIES

Securities valuation

Investments in open-end mutual funds and non-registered investment companies are generally valued at net asset value.

The valuation techniques used by the Fund to measure fair value are consistent with the market approach, income approach and/or cost approach, where applicable, for each security type.

Security loans


Notes to Financial Statements		Wells Fargo Advantage VT Omega Growth Fund 23

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 instruments in which cash collateral is invested. The amount of securities lending activity undertaken by the Fund fluctuates from time to time. As a result of the reorganizations on July 16, 2010, the Fund holds securities related to defaulted or impaired structured investment vehicles. After the occurrence of a default or impairment of structured investment vehicles purchased in a joint account by Wells Fargo Advantage VT Large Company Growth Fund’s former securities lending agent, as the various participating funds’ lending activity fluctuated, their ratable interest in the joint account, including their ratable exposure to the defaulted or impaired structured investment vehicles fluctuated depending on the relative activity of each participating fund. In order to eliminate the fluctuation of the various participating funds’ ratable exposure to the defaulted or impaired structured investment vehicles, the adviser to the funds recommended to the Board of Trustees, and the Board of Trustees approved, actions designed to fix the allocation of percentage ownership in defaulted or impaired structured investment vehicles among all funds participating in securities lending (“side pocketing”) based on each participating fund’s percentage ownership of the total cash collateral investment joint account as of the date the fixed allocation is implemented. Accordingly, on February 13, 2009 a side pocketing occurred, which fixed each participating fund’s ownership of defaulted or impaired structured investment vehicle in the joint account based on each participating fund’s percentage ownership of the joint account as of such date.

Security transactions and income recognition

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

Distributions to shareholders


	Accumulated Net
	Realized
Accumulated Net	Losses
Investment Loss	on Investments	Paid-in Capital

$205,253	$7,661,293	$(7,866,546)

Federal and other taxes


24 Wells Fargo Advantage VT Omega Growth Fund		Notes to Financial Statements

At December 31, 2010, estimated net capital loss carryforwards, which are available to offset future net realized capital gains, were as follows:


	Expiration
2011	2012		2013		2015		2016		2017

$1,003,450	$	2,022,267	$	1,615,063	$	4,132,177	$	2,303,740	$	771,379

Class allocations

3. FAIR VALUATION MEASUREMENTS

•		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 securities are not necessarily an indication of the risk associated with investing in those securities.

As of December 31, 2010, the inputs used in valuing the Fund’s assets, which are carried at fair value, were as follows:


			Significant Other		Significant
			Observable		Unobservable
	Quoted Prices		Inputs		Inputs
Investments in Securities	(Level 1)		(Level 2)		(Level 3)		Total

Equity securities
Common stocks	$	136,129,341	$	0	$	0	$	136,129,341
Short-term investments
Corporate bonds and notes		0		0		239,022		239,022
Investment companies		1,692,656		38,542,212		0		40,234,868
	$	137,821,997	$	38,542,212	$	239,022	$	176,603,231


Notes to Financial Statements		Wells Fargo Advantage VT Omega Growth Fund 25

Further details on the major security types listed above can be found in the Fund’s Portfolio of Investments.

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


	Corporate bonds
	and notes

Balance as of December 31, 2009	$	0
Transfers in from acquisitions		239,022
Balance as of December 31, 2010	$	239,022
Change in unrealized gains (losses) included in earnings relating to securities still held at December 31, 2010	$	0

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

Investment advisory fees

Pursuant to the contract, Funds Management is paid an annual investment advisory fee starting at 0.55% and declining to 0.40% as the average daily net assets of the Fund increase. Prior to July 19, 2010, the predecessor fund, Evergreen VA Omega Fund, paid an investment advisory fee to Evergreen Investment Management Company, LLC (“EIMC”), an affiliate of Funds Management, at an annual rate which started at 0.52% and declined to 0.41% as the aggregate average daily net assets of the Fund and its retail counterpart, Evergreen VA Omega Fund, increased. For the year ended December 31, 2010, the investment advisory fee was equivalent to an annual rate of 0.54% of the Fund’s average daily net assets.

Funds Management may retain the services of certain investment sub-advisers to provide daily portfolio management to the Fund. The fees related to investment sub-advisory services are borne directly by the investment adviser and do not increase the overall fees paid by the Fund to the investment adviser. Wells Capital Management, an affiliate of Funds Management, is the investment sub-adviser to the Fund and is paid a fee by the investment adviser at an annual rate starting at 0.35% and declining to 0.15% as the average daily net assets of the Fund increase.

Administration and transfer agent fees


		Administration Fees
		(% of Average
	Average Daily Net Assets	Daily Net Assets)

Fund level	First $5 billion		0.05	%
	Next $5 billion		0.04
	Over $10 billion		0.03
Class 1 and Class 2	All asset levels		0.08


26 Wells Fargo Advantage VT Omega Growth Fund		Notes to Financial Statements

Prior to July 19, 2010, the predecessor fund paid Evergreen Service Company, LLC, an affiliate of EIMC and a subsidiary of Wells Fargo, a transfer and dividend disbursing agent fee.

Distribution fees

5. INVESTMENT PORTFOLIO TRANSACTIONS

6. ACQUISITIONS

After the close of business on July 16, 2010, the Fund acquired the net assets of Evergreen VA Omega Fund and Wells Fargo Advantage VT Large Company Growth Fund. The purpose of the transaction was to combine three funds with similar investment objectives and strategies. The acquisitions were accomplished by a tax-free exchange of all of the shares of Evergreen VA Omega Fund and Wells Fargo Advantage VT Large Company Growth Fund. Shareholders holding Class 1 and Class 2 shares of Evergreen VA Omega Fund received Class 1 and Class 2 shares, respectively, of the Fund in the reorganization. Existing shareholders of Wells Fargo Advantage VT Large Company Growth Fund received Class 2 shares of the Fund in the reorganization. The Fund was newly created to receive the assets of Evergreen VA Omega Fund and Wells Fargo Advantage VT Large Company Growth Fund. Evergreen VA Omega Fund became the accounting and performance survivor in the reorganizations. The investment portfolio of Evergreen VA Omega Fund and Wells Fargo Advantage VT Large Company Growth Fund with fair values of $71,682,578 and $48,538,258, respectively, and identified costs of $69,920,349 and $46,062,243, respectively, on July 16, 2010 were the principal assets acquired by the Fund. For financial reporting purposes, assets received and shares issued by the Fund were recorded at fair value; however, the cost basis of the investments received from Evergreen VA Omega Fund and Wells Fargo Advantage VT Large Company Growth Fund were carried forward to align ongoing reporting of the Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes. The value of net assets acquired, unrealized gains/losses acquired, exchange ratio and number of shares issued were as follows:


	Value of Net		Unrealized		Exchange		Number of
Acquired Fund	Assets Acquired		Gains		Ratio		Shares Issued

Evergreen VA Omega Fund	$	70,210,006	$	1,762,229		1.00	2,457,511 Class 1
						1.00	1,231,817 Class 2
Wells Fargo Advantage VT Large Company Growth Fund	$	48,569,090	$	2,476,015		0.43	2,568,116 Class 2

The aggregate net assets of the Fund immediately after the acquisitions were $118,779,096.


Net investment loss	$	(116,783	)
Net realized and unrealized gains (losses) on investments	$	17,879,551
Net increase in net assets resulting from operations	$	17,762,768

Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisitions were completed, it is not practicable to separate the amounts of revenue and earnings of Wells Fargo Advantage VT Large Company Growth Fund that have been included in the Fund’s Statement of Operations since July 19, 2010.


Notes to Financial Statements		Wells Fargo Advantage VT Omega Growth Fund 27

7. BANK BORROWINGS

During the year ended December 31, 2010, there were no borrowings by the Fund under the agreement.

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid were $580,579 and $817,203 of ordinary income for the years ended December 31, 2010 and December 31, 2009, respectively.

As of December 31, 2010, the components of distributable earnings on a tax basis were as follows:



Undistributed	Unrealized		Capital Loss
Long-Term Gain	Gains		Carryforward

$1,117,838	$	28,870,121	$	(11,848,076	)

9. INDEMNIFICATION


28 Wells Fargo Advantage VT Omega Growth Fund		Report of Independent Registered Public Accounting Firm

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO VARIABLE TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Advantage VT Omega Growth Fund (the “Fund”), one of the funds constituting the Wells Fargo Variable Trust, as of December 31, 2010, and the related statement of operations for the year then ended, statements of changes in net assets for each of the years in the two year period then ended, and the financial highlights for each of the years in the five years presented. 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.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Advantage VT Omega Growth Fund as of December 31, 2010, the results of its operations for the year then ended, changes in its net assets for each of the years in the two year period then ended, and the financial highlights for each of the years in the five years presented, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts
February 25, 2011


Other Information (Unaudited)		Wells Fargo Advantage VT Omega Growth Fund 29

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-800-222-8222, visiting our Web site at www.wellsfargo.com/advantagefunds, or visiting the SEC Web site at www.sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge on the Fund’s Web site at www.wellsfargo.com/advantagefunds or by visiting the SEC Web site at www.sec.gov.


30 Wells Fargo Advantage VT Omega Growth Fund		Other Information (Unaudited)

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available on the Fund’s Web site (www.wellsfargo.com/advantagefunds) on a monthly, 30-day or more delayed basis. In addition, top ten holdings information for the Fund is publicly available on the Fund’s Web site on a monthly, seven-day or more delayed basis. The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q, which is available without charge by visiting the SEC Web site at www.sec.gov. In addition, the Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and at regional offices in New York City, at 233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900. Information about the Public Reference Room may be obtained by calling 1-800-SEC-0330.

BOARD OF TRUSTEES

Independent Trustees


Name and	Position Held and
Year of Birth	Length of Service	Principal Occupations During Past Five Years	Other Directorships
Peter G. Gordon (Born 1942)	Trustee, since 1998; Chairman, since 2005 (Lead Trustee since 2001)	Co-Founder, Chairman, President and CEO of Crystal Geyser. Water Company. Trustee Emeritus, Colby College	Asset Allocation Trust

Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. 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 lowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Mr. Harris is a certified public accountant.	CIGNA Corporation; Deluxe Corporation; Asset Allocation Trust

Judith M. Johnson (Born 1949)	Trustee, since 2008	Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant.	Asset Allocation Trust

Leroy Keith, Jr. (Born 1939)	Trustee, since 2010	Chairman, Bloc Global Services (development and construction), Trustee of the Evergreen Funds from 1983 to 2010. Former Managing Director, Almanac Capital Management (commodities firm), former Partner, Stonington Partners, Inc. (private equity fund), former Director, Obagi Medical Products Co. and former Director, Lincoln Educational Services.	Trustee, Virtus Fund Complex (consisting of 45 portfolios as of 12/31/10); Director, Diversapack Co. (packaging company); Asset Allocation Trust

David F. Larcker (Born 1951)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of Corporate Governance Research Program and Co-Director of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust


Other Information (Unaudited)		Wells Fargo Advantage VT Omega Growth Fund 31


Name and	Position Held and
Year of Birth	Length of Service	Principal Occupations During Past Five Years	Other Directorships
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor and Chair of the Department of Insurance and Risk Management, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust

Timothy J. Penny (Born 1951)	Trustee, since 1996	President and CEO of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust

Michael S. Scofield (Born 1943)	Trustee, since 2010	Currently serves on the Investment Company Institute’s Board of Governors and Executive Committee as well the Independent Director’s Counsel Board of Governors and Executive Committee. Former Chairman of the Independent Directors Counsel. Trustee of the Evergreen Funds from 1984 to 2010. Retired Attorney, Law Offices of Michael S. Scofield and former Director and Chairman, Branded Media Corporation (multi-media branding company).	Asset Allocation Trust

Donald C. Willeke (Born 1940)	Trustee, since 1996	Principal of the law firm of Willeke & Daniels. General Counsel of the Minneapolis Employees Retirement Fund from 1984 until its consolidation into the Minnesota Public Employees Retirement Association on June 30, 2010.	Asset Allocation Trust

Officers


Name and	Position Held and
Year of Birth	Length of Service	Principal Occupations During Past Five Years
Karla M. Rabusch (Born 1959)	President, since 2003	Executive Vice President of Wells Fargo Bank, N.A. and President of Wells Fargo Funds Management, LLC since 2003. Senior Vice President and Chief Administrative Officer of Wells Fargo Funds Management, LLC from 2001 to 2003.

C. David Messman (Born 1960)	Secretary, since 2000; Chief Legal Counsel, since 2003	Senior Vice President and Secretary of Wells Fargo Funds Management, LLC since 2001. Vice President and Managing Counsel of Wells Fargo Bank, N.A. since 1996.

Kasey Phillips (Born 1970)	Treasurer, since 2009	Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2006 to 2010. Treasurer of the Evergreen Funds from 2005 to 2010. Vice President and Assistant Vice President of Evergreen Investment Services, Inc. from 1999 to 2006.

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. Assistant Vice President of Evergreen Investment Services, Inc. from 2004 to 2008. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.

Jeremy DePalma (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. Vice President, Evergreen Investment Services, Inc. from 2004 to 2007. Assistant Vice President, Evergreen Investment Services, Inc. from 2000 to 2004 and the head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.


32 Wells Fargo Advantage VT Omega Growth Fund		Other Information (Unaudited)


Name and	Position Held and
Year of Birth	Length of Service	Principal Occupations During Past Five Years
Debra Ann Early (Born 1964)	Chief Compliance Officer, since 2007	Chief Compliance Officer of Wells Fargo Funds Management, LLC since 2007. Chief Compliance Officer of Parnassus Investments from 2005 to 2007. Chief Financial Officer of Parnassus Investments from 2004 to 2007 and Senior Audit Manager of PricewaterhouseCoopers LLP from 1998 to 2004.


1.		The Statement of Additional Information includes additional information about the Fund’s Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the Fund’s Web site at www.wellsfargo.com/advantagefunds.


List of Abbreviations		Wells Fargo Advantage VT Omega Growth Fund 33

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


ABAG	—	Association of Bay Area Governments	HUF	—	Hungarian Forint
ADR	—	American Depositary Receipt	IDA	—	Industrial Development Authority
ADS	—	American Depository Shares	IDAG	—	Industrial Development Agency
AMBAC	—	American Municipal Bond Assurance Corporation	IDR	—	Industrial Development Revenue
AMT	—	Alternative Minimum Tax	IEP	—	Irish Pound
ARM	—	Adjustable Rate Mortgages	JPY	—	Japanese Yen
AUD	—	Australian Dollar	KRW	—	Republic of Korea Won
BART	—	Bay Area Rapid Transit	LIBOR	—	London Interbank Offered Rate
BRL	—	Brazil Real	LLC	—	Limited Liability Company
CAD	—	Canadian Dollar	LLP	—	Limited Liability Partnership
CDA	—	Community Development Authority	LOC	—	Letter of Credit
CDO	—	Collateralized Debt Obligation	LP	—	Limited Partnership
CDSC	—	Contingent Deferred Sales Charge	MBIA	—	Municipal Bond Insurance Association
CGIC	—	Capital Guaranty Insurance Company	MFHR	—	Multi-Family Housing Revenue
CGY	—	Capital Guaranty Corporation	MFMR	—	Multi-Family Mortgage Revenue
CHF	—	Swiss Franc	MMD	—	Municipal Market Data
CIFG	—	CDC (Caisse des Dépôts et Consignations) IXIS Financial Guarantee	MTN	—	Medium Term Note
CIFG	—		MUD	—	Municipal Utility District
COP	—	Certificate of Participation	MXN	—	Mexican Peso
CP	—	Commercial Paper	MYR	—	Malaysian Ringgit
CTF	—	Common Trust Fund	NATL-RE	—	National Public Finance Guarantee Corporation
DEM	—	Deutsche Mark	NLG	—	Netherlands Guilder
DKK	—	Danish Krone	NOK	—	Norwegian Krone
DW&P	—	Department of Water & Power	NZD	—	New Zealand Dollar
DWR	—	Department of Water Resources	PCFA	—	Pollution Control Finance Authority
ECFA	—	Educational & Cultural Facilities Authority	PCR	—	Pollution Control Revenue
EDFA	—	Economic Development Finance Authority	PFA	—	Public Finance Authority
ETET	—	Eagle Tax-Exempt Trust	PFFA	—	Public Facilities Financing Authority
ETF	—	Exchange-Traded Fund	plc	—	Public Limited Company
EUR	—	Euro	PLN	—	Polish Zloty
FFCB	—	Federal Farm Credit Bank	PSFG	—	Public School Fund Guaranty
FGIC	—	Financial Guaranty Insurance Corporation	R&D	—	Research & Development
FHA	—	Federal Housing Authority	RDA	—	Redevelopment Authority
FHAG	—	Federal Housing Agency	RDFA	—	Redevelopment Finance Authority
FHLB	—	Federal Home Loan Bank	REITS	—	Real Estate Investment Trusts
FHLMC	—	Federal Home Loan Mortgage Corporation	SEK	—	Swedish Krona
FNMA	—	Federal National Mortgage Association	SFHR	—	Single Family Housing Revenue
FRF	—	French Franc	SFMR	—	Single Family Mortgage Revenue
FSA	—	Farm Service Agency	SGD	—	Singapore Dollar
GBP	—	Great British Pound	SKK	—	Slovakian Koruna
GDR	—	Global Depositary Receipt	SLMA	—	Student Loan Marketing Association
GNMA	—	Government National Mortgage Association	SPDR	—	Standard & Poor’s Depositary Receipts
GO	—	General Obligation	STIT	—	Short-Term Investment Trust
HCFR	—	Healthcare Facilities Revenue	TBA	—	To Be Announced
HEFA	—	Health & Educational Facilities Authority	TRAN	—	Tax Revenue Anticipation Notes
HEFAR	—	Higher Education Facilities Authority Revenue	TRY	—	Turkish Lira
HFA	—	Housing Finance Authority	USD	—	United States Dollar
HFFA	—	Health Facilities Financing Authority	XLCA	—	XL Capital Assurance
HKD	—	Hong Kong Dollar	ZAR	—	South African Rand
HUD	—	Housing & Urban Development

This page is intentionally left blank.

More information about Wells Fargo Advantage Funds is available free upon request. To obtain literature, please write, e-mail, visit the Funds’ Web site, or call:

Wells Fargo Advantage Funds
P.O. Box 8266
Boston, MA 02266-8266
E-mail:wfaf@wellsfargo.com

Web site:www.wellsfargo.com/advantagefunds
Individual Investors: 1-800-222-8222
Retail Investment Professionals: 1- 888-877-9275
Institutional Investment Professionals: 1- 866-765-0778

Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Advantage Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the Funds. The Funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA/SIPC, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE


^© 2011 Wells Fargo Funds Management, LLC. All rights reserved.		www.wellsfargo.com/advantagefunds		200917 02-11 AVT5/AR151 12-10

WELLS FARGO ADVANTAGE VARIABLE TRUST FUNDS

Wells Fargo Advantage VT Opportunity Fund^SM

Reduce clutter. Save trees.

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
Statements of Changes in Net Assets			18
Financial Highlights			20

Notes to Financial Statements			22

Report of Independent Registered Public Accounting Firm			28

Other Information			29

List of Abbreviations			33

NOT FDIC INSURED § NO BANK GURANTEE § MAY LOSE VALUE

WELLS FARGO

INVESTMENT HISTORY


1932		Keystone creates one of the first mutual fund families.

1971		Wells Fargo & Company introduces one of the first institutional index funds.

1978		Wells Fargo applies Markowitz and Sharpe’s research on Modern Portfolio Theory to introduce one of the industry’s first Tactical Asset Allocation (TAA) models in institutional separately managed accounts.

1984		Wells Fargo Stagecoach Funds launches its first asset allocation fund.

1989		The Tactical Asset Allocation (TAA) Model is first applied to Wells Fargo’s asset allocation mutual funds.

1994		Wells Fargo introduces the LifePath Funds, one of the first suites of target date funds (now the *Wells Fargo Advantage Dow Jones Target Date Funds*^SM).

1996		Evergreen Investments and Keystone Funds merge.

1997		Wells Fargo launches *Wells Fargo Advantage WealthBuilder Portfolios*^SM, a fund-of-funds suite of products that includes the use of quantitative models to shift assets among investment styles.

1999		Norwest Advantage Funds and Stagecoach Funds are reorganized into Wells Fargo Funds after the merger of Norwest and Wells Fargo.

2002		Evergreen Retail and Evergreen Institutional companies form the umbrella asset management company, Evergreen Investments.

2005		The integration of Strong Funds with Wells Fargo Funds creates *Wells Fargo Advantage Funds*, resulting in one of the top 20 mutual fund companies in the United States.

2006		*Wells Fargo Advantage Funds* relaunches the target date product line as *Wells Fargo Advantage Dow Jones Target Date Funds*.

2010		The mergers and reorganizations of Evergreen and Wells Fargo Advantage mutual funds are completed, unifying the families under the brand of *Wells Fargo Advantage Funds.*

Wells Fargo Advantage Funds^®

Strength

Expertise

Partnership

Carefully consider the investment objectives, risks, charges, and expenses before investing. For a current prospectus for Wells Fargo Advantage Funds containing this and other information, visit www.wellsfargo.com/advantagefunds. Read it carefully before investing.

NOT FDIC INSURED § NO BANK GUARANTEE § MAY LOSE VALUE

Not part of the annual report.

Wells Fargo Advantage Funds offers more than 120 mutual funds across a wide range of asset classes, representing over $236 billion in assets under management, as of December 31, 2010.


Equity Funds

Asia Pacific Fund	Enterprise Fund^†	Opportunity Fund^†
C&B Large Cap Value Fund	Equity Value Fund	Precious Metals Fund
C&B Mid Cap Value Fund	Global Opportunities Fund	Premier Large Company Growth Fund
Capital Growth Fund	Growth Fund	Small Cap Growth Fund
Classic Value Fund	Growth Opportunities Fund	Small Cap Opportunities Fund
Common Stock Fund	Health Care Fund	Small Cap Value Fund
Core Equity Fund	Index Fund	Small Company Growth Fund
Disciplined Global Equity Fund	International Equity Fund	Small Company Value Fund
Disciplined U.S. Core Fund	International Value Fund	Small/Mid Cap Core Fund
Disciplined Value Fund	Intrinsic Small Cap Value Fund	Small/Mid Cap Value Fund
Discovery Fund^†	Intrinsic Value Fund	Social Sustainability Fund^†
Diversified Equity Fund	Intrinsic World Equity Fund	Special Mid Cap Value Fund
Diversified International Fund	Large Cap Core Fund	Special Small Cap Value Fund
Diversified Small Cap Fund	Large Cap Growth Fund	Specialized Technology Fund
Emerging Growth Fund	Large Company Value Fund	Strategic Large Cap Growth Fund
Emerging Markets Equity Fund	Mid Cap Growth Fund	Traditional Small Cap Growth Fund
Endeavor Select Fund^†	Omega Growth Fund	Utility and Telecommunications Fund

Bond Funds

Adjustable Rate Government Fund	Inflation-Protected Bond Fund	Short-Term Bond Fund
California Limited-Term Tax-Free Fund	Intermediate Tax/AMT-Free Fund	Short-Term High Yield Bond Fund
California Tax-Free Fund	International Bond Fund	Short-Term Municipal Bond Fund
Colorado Tax-Free Fund	Minnesota Tax-Free Fund	Strategic Municipal Bond Fund
Government Securities Fund	Municipal Bond Fund	Total Return Bond Fund
High Income Fund	North Carolina Tax-Free Fund	Ultra Short-Term Income Fund
High Yield Bond Fund	Pennsylvania Tax-Free Fund	Ultra Short-Term Municipal Income Fund
Income Plus Fund	Short Duration Government Bond Fund	Wisconsin Tax-Free Fund

Asset Allocation Funds

Asset Allocation Fund	WealthBuilder Equity Portfolio^†	Target 2020 Fund^†
Conservative Allocation Fund	WealthBuilder Growth Allocation Portfolio^†	Target 2025 Fund^†
Diversified Capital Builder Fund	WealthBuilder Growth Balanced Portfolio^†	Target 2030 Fund^†
Diversified Income Builder Fund	WealthBuilder Moderate Balanced Portfolio^†	Target 2035 Fund^†
Growth Balanced Fund	WealthBuilder Tactical Equity Portfolio^†	Target 2040 Fund^†
Index Asset Allocation Fund	Target Today Fund^†	Target 2045 Fund^†
Moderate Balanced Fund	Target 2010 Fund^†	Target 2050 Fund^†
WealthBuilder Conservative Allocation Portfolio^†	Target 2015 Fund^†

Money Market Funds

100% Treasury Money Market Fund	Minnesota Money Market Fund	New Jersey Municipal Money Market Fund
California Municipal Money Market Fund	Money Market Fund	New York Municipal Money Market Fund
Cash Investment Money Market Fund	Municipal Cash Management Money Market Fund	Pennsylvania Municipal Money Market Fund
Government Money Market Fund	Municipal Money Market Fund	Prime Investment Money Market Fund
Heritage Money Market Fund^†	National Tax-Free Money Market Fund	Treasury Plus Money Market Fund

Variable Trust Funds¹

VT Core Equity Fund	VT Intrinsic Value Fund	VT Small Cap Value Fund
VT Discovery Fund^†	VT Omega Growth Fund	VT Total Return Bond Fund
VT Index Asset Allocation Fund	VT Opportunity Fund^†
VT International Equity Fund	VT Small Cap Growth Fund


1.		The Variable Trust Funds are generally available only through insurance company variable contracts.

†		In this report, the Wells Fargo Advantage Discovery Fund^SM, Wells Fargo Advantage Endeavor Select Fund^SM, Wells Fargo Advantage Enterprise Fund^SM, Wells Fargo Advantage Opportunity Fund^SM, Wells Fargo Advantage Social Sustainability Fund^SM, Wells Fargo Advantage WealthBuilder Conservative Allocation Portfolio^SM, Wells Fargo Advantage WealthBuilder Equity Portfolio^SM, Wells Fargo Advantage WealthBuilder Growth Allocation Portfolio^SM, Wells Fargo Advantage WealthBuilder Growth Balanced Portfolio^SM, Wells Fargo Advantage WealthBuilder Moderate Balanced Portfolio^SM, Wells Fargo Advantage WealthBuilder Tactical Equity Portfolio^SM, Wells Fargo Advantage Dow Jones Target Today Fund^SM, Wells Fargo Advantage Dow Jones Target 2010 Fund^SM, Wells Fargo Advantage Dow Jones Target 2015 Fund^SM, Wells Fargo Advantage Dow Jones Target 2020 Fund^SM, Wells Fargo Advantage Dow Jones Target 2025 Fund^SM, Wells Fargo Advantage Dow Jones Target 2030 Fund^SM, Wells Fargo Advantage Dow Jones Target 2035 Fund^SM, Wells Fargo Advantage Dow Jones Target 2040 Fund^SM, Wells Fargo Advantage Dow Jones Target 2045 Fund^SM, Wells Fargo Advantage Dow Jones Target 2050 Fund^SM, Wells Fargo Advantage Heritage Money Market Fund^SM, Wells Fargo Advantage VT Discovery Fund^SM, and Wells Fargo Advantage VT Opportunity Fund^SMare referred to as the Discovery Fund, Endeavor Select Fund, Enterprise Fund, Opportunity Fund, Social Sustainability Fund, WealthBuilder Conservative Allocation Portfolio, WealthBuilder Equity Portfolio, WealthBuilder Growth Allocation Portfolio, WealthBuilder Growth Balanced Portfolio, WealthBuilder Moderate Balanced Portfolio, WealthBuilder Tactical Equity Portfolio, Target Today Fund, Target 2010 Fund, Target 2015 Fund, Target 2020 Fund, Target 2025 Fund, Target 2030 Fund, Target 2035 Fund, Target 2040 Fund, Target 2045 Fund, Target 2050 Fund, Heritage Money Market Fund, VT Discovery Fund, and VT Opportunity Fund, respectively.

Not part of the annual report.


2 Wells Fargo Advantage VT Opportunity Fund		Letter to Shareholders

Karla M. Rabusch,
President
Wells Fargo Advantage Funds

The equity markets delivered strong full-year returns against the backdrop of a strengthening economy.

Dear Valued Shareholder:

We are pleased to provide you with this annual report for the Wells Fargo Advantage VT Opportunity Fund for the 12 month period that ended December 31, 2010. The equity markets delivered strong returns for the year against the backdrop of a strengthening economy. However, the year was not without its share of macroeconomic challenges and market volatility, once again highlighting the value of a sound, well-diversified investment strategy. As always, we believe that such a strategy can enable investors to balance risks and opportunities as they pursue long-term financial goals in a dynamic market environment.

The economic recovery stayed on track.

Jobs and housing remained troublesome.

The Fed continued to do its part.


Letter to Shareholders		Wells Fargo Advantage VT Opportunity Fund 3

2010 was another solid year for equities.

Investors should keep a long-term perspective.

Along with more upbeat economic data, better-than-expected corporate earnings power played a role in driving stock prices higher.


4 Wells Fargo Advantage VT Opportunity Fund		Letter to Shareholders

Sincerely,
-s- Karla M. Rabusch

Karla M. Rabusch
President
Wells Fargo Advantage Funds

This page is intentionally left blank.


6 Wells Fargo Advantage VT Opportunity Fund		Performance Highlights (Unaudited)

Wells Fargo Advantage VT Opportunity Fund^SM

INVESTMENT OBJECTIVE

The Fund seeks long-term capital appreciation.

INVESTMENT ADVISER

Wells Fargo Funds Management, LLC

SUB-ADVISER

Wells Capital Management Incorporated

PORTFOLIO MANAGER

Ann M. Miletti

FUND INCEPTION

May 8, 1992

PERFORMANCE SUMMARY

12 MONTH TOTAL RETURN AS OF DECEMBER 31, 2010


Class 2	23.76	%
Russell Midcap^® Index¹	25.48	%

The adviser has committed, through April 30, 2011, to waive fees and/or reimburse expenses to maintain the contractual expense cap at 1.07% for the Class 2 shares excluding acquired fund fees and certain other expenses. Without these reductions, the Fund’s returns would have been lower. The Fund’s net expense ratio is 1.09% for the Class 2 shares. The Fund’s gross expense ratio is 1.34% for the Class 2 shares.


1.		The Russell Midcap^® Index measures the performance of the 800 smallest companies in the Russell 1000^® Index, which represent approximately 25% of the total market capitalization of the Russell 1000^® Index. You cannot invest directly in an index.

2.		The chart compares the performance of the Wells Fargo Advantage VT Opportunity Fund Class 2 for the most recent ten years of the Fund with the Russell Midcap^® Index. The chart assumes a hypothetical $10,000 investment and reflects all operating expenses of the Fund.


Performance Highlights (Unaudited)		Wells Fargo Advantage VT Opportunity Fund 7

Wells Fargo Advantage VT Opportunity Fund^SM(continued)

MANAGER’S DISCUSSION

Fund highlights

§		The Fund underperformed its benchmark, the Russell Midcap^® Index, for the 12-month period ended December 31, 2010.

§		Holdings in the consumer discretionary and financials sectors detracted from relative returns, offsetting positive stock selection in the information technology and other sectors.

§		As the market rallied over the past year, our process remained disciplined. We continued to look for well-positioned businesses with solid business models, strong management teams, and favorable trends, and that trade at attractive discounts to our estimated private market value (PMV). Private market value is the value of all the individual business segments of a company, added together.

Stock selection and sector weights both contributed to the Fund’s investment results.

The information technology sector was the top contributor to relative performance during the 12-month period that ended December 31, 2010, due to positive stock selection, especially in areas related to the continuing move toward digital mobility, storage, and cloud computing. Key holdings included Red Hat, Incorporated (up 47%); NetApp, Incorporated (up 59%); and Akamai Technologies, Incorporated (up more than 80%).

In the health care sector, Health Management Associates, Incorporated, (HMA) was a key contributor over the 12-month period. HMA did well (up 31%) despite the general volume softness in the hospital space. HMA has unique volume and profit strategies related to its management strategy of increased emergency room productivity and careful physician recruitment. We continue to hold the stock because it still trades at a reasonable discount to PMV, and we remain confident in the management of the company.

TEN LARGEST EQUITY HOLDINGS³
(AS OF DECEMBER 31, 2010)


Weatherford International Limited	1.28	%
Global Payments Incorporated	1.23	%
Praxair Incorporated	1.21	%
ON Semiconductor Corporation	1.18	%
National Oilwell Varco Incorporated	1.17	%
Alliance Data Systems Corporation	1.16	%
Manpower Incorporated	1.12	%
Comcast Corporation Class A	1.12	%
Nordstrom Incorporated	1.09	%
Microsemi Corporation	1.09	%

Collectively, the Fund’s energy holdings detracted from results, although virtually all of the energy sector shortfall can be attributed to one stock, Transocean Ltd., which was negatively affected by the Gulf oil spill last year. We believe that the company remains fundamentally strong with solid businesses and growth potential. Nevertheless, this one holding offset good stock selection in other energy positions, including National Oilwell Varco, Incorporated; Weatherford International Limited and Peabody Energy Corporation.


3.		The ten largest equity holdings are calculated based on the value of the securities divided by total investments of the Fund. Holdings are subject to change and may have changed since the date specified.


8 Wells Fargo Advantage VT Opportunity Fund		Performance Highlights (Unaudited)

Wells Fargo Advantage VT Opportunity Fund^SM(continued)

Lastly, the consumer discretionary sector lagged its counterpart in the benchmark in 2010. The culprit was primarily in the retail space, where mixed stock selection occurred. For example, key holding Target Corporation (up 26%) outperformed. However, other retail positions (Kohl’s, Staples, Incorporated; and Best Buy Company Incorporated) were laggards, as the economy continued to struggle to produce a vibrant recovery. Of course, the consumer discretionary space is large with various subsectors, and better results were evident in many of those areas. Cablevision Systems Corporation is one example, rising 60% on announced intentions to split Rainbow Media Holdings off from the cable operations that fueled some merger and acquisition speculation about the attractiveness of the cable business.

Our methodology of buying stocks that are selling at a discount to their intrinsic PMVs and selling stocks that approach their PMVs continues.

Our discipline allows us to be patient with stocks that are out of favor with the market. This past year, we witnessed very aggressive fiscal and monetary policies designed to “kick start” a lackluster economic recovery. The Federal Reserve’s announcement that it would purchase $600 billion in U.S. Treasury bonds as part of the second round of quantitative easing, or its “QE2” program, was perhaps the most visible evidence of the policymakers’ unprecedented actions. The passage of pro-growth tax legislation was another remarkable development.

We view these macroeconomic and policy actions favorably. Our PMV techniques help us to separate the “noise” from the fundamentals and are particularly useful in this type of financial environment.

Uncertainty remains, but opportunities remain as well.

Looking ahead, we remain constructive on the technological innovations spurring top- and bottom-line growth opportunities in individual companies. Additionally, industrial companies are likely to continue to benefit from order and production growth. Health care and financials are sectors with some changing headwinds, so we remain selective in those areas.


4.		Sector distribution is subject to change and is calculated based on the total common stock investments of the Fund.


Performance Highlights (Unaudited)		Wells Fargo Advantage VT Opportunity Fund 9

Wells Fargo Advantage VT Opportunity Fund^SM (continued)

AVERAGE ANNUAL TOTAL RETURN (%) (AS OF DECEMBER 31, 2010)


	Inception										Expense Ratios⁵
	Date		6 Months*		1 Year		5 Year		10 Year		Gross			Net⁶
Class 2		5/8/1992		27.67		23.76		5.56		4.90		1.34	%		1.09	%
Russell Midcap^® Index¹				28.12		25.48		4.66		6.54


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

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


5.		Reflects the expense ratio as stated in the May 1, 2010 prospectus.

6.		The investment adviser has contractually committed through April 30, 2011 to waive fees and/or reimburse expenses maintain the Fund’s contractual expense cap at 1.07% for the Class 2 shares, excluding acquired fund fees and certain other expenses. Without these reductions, the Fund’s returns would have been lower.


10 Wells Fargo Advantage VT Opportunity Fund		Fund Expenses (Unaudited)

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 July 1, 2010 to December 31, 2010.

Actual expenses

Hypothetical example for comparison purposes


	Beginning		Ending		Expenses
	Account Value		Account Value		Paid During		Net Annual
	07-01-2010		12-31-2010		the Period¹		Expense Ratio
Class 2
Actual	$	1,000.00	$	1,276.68	$	6.21		1.07	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.03	$	5.51		1.07	%


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


Portfolio of Investments—December 31, 2010		Wells Fargo Advantage VT Opportunity Fund 11


Shares		Security Name	Value
Common Stocks: 95.34%

Consumer Discretionary: 20.79%

Auto Components: 1.28%
	56,300	Johnson Controls Incorporated	$	2,150,660


Commercial Services & Supplies: 1.54%
	36,435	Alliance Data Systems Corporation†«		2,587,978


Diversified Consumer Services: 1.37%
	58,454	Apollo Group Incorporated Class A†		2,308,348


Hotels, Restaurants & Leisure: 2.38%
	44,520	Carnival Corporation		2,052,817
	42,223	Darden Restaurants Incorporated«		1,960,836

				4,013,653


Internet & Catalog Retail: 1.27%
	135,200	Liberty Media Corporation Interactive Series A†		2,132,104


Media: 6.25%
	60,610	Cablevision Systems Corporation New York Group Class A		2,051,042
	119,800	Comcast Corporation Class A		2,493,038
	48,200	Liberty Global Incorporated Series A†«		1,705,316
	49,830	Omnicom Group Incorporated		2,282,214
	38,396	Scripps Networks Interactive Incorporated		1,986,993

				10,518,603


Multiline Retail: 4.26%
	44,500	Kohl’s Corporation†«		2,418,130
	57,455	Nordstrom Incorporated«		2,434,943
	38,400	Target Corporation«		2,308,992

				7,162,065


Specialty Retail: 2.44%
	49,200	Best Buy Company Incorporated		1,687,068
	106,600	Staples Incorporated«		2,427,282

				4,114,350


Consumer Staples: 3.93%

Food & Staples Retailing: 1.43%
	107,430	Kroger Company		2,402,135


Food Products: 1.13%
	53,600	General Mills Incorporated		1,907,624


Household Products: 1.37%
	33,360	Church & Dwight Company Incorporated«		2,302,507


Energy: 8.98%

Energy Equipment & Services: 4.60%
	38,980	National Oilwell Varco Incorporated		2,621,405
	32,630	Transocean Limited†«		2,268,111
	125,310	Weatherford International Limited†		2,857,068

				7,746,584


12 Wells Fargo Advantage VT Opportunity Fund		Portfolio of Investments—December 31, 2010


Shares		Security Name	Value
Oil, Gas & Consumable Fuels: 4.38%
	18,950	Apache Corporation	$	2,259,409
	16,370	Peabody Energy Corporation		1,047,353
	44,236	Range Resources Corporation«		1,989,735
	55,300	Southwestern Energy Company†		2,069,879

				7,366,376


Financials: 16.65%

Capital Markets: 2.80%
	20,148	Bank of New York Mellon Corporation		608,470
	97,592	INVESCO Limited		2,348,064
	92,103	TD Ameritrade Holding Corporation		1,749,036

				4,705,570


Commercial Banks: 2.69%
	90,310	Branch Banking & Trust Corporation«		2,374,250
	35,153	City National Corporation«		2,156,988

				4,531,238


Consumer Finance: 1.34%
	10,050	MasterCard Incorporated		2,252,306


Insurance: 4.80%
	30,630	ACE Limited		1,906,718
	40,600	Reinsurance Group of America Incorporated		2,180,626
	31,276	RenaissanceRe Holdings Limited«		1,991,968
	100,899	The Progressive Corporation		2,004,863

				8,084,175


Real Estate Investment Trusts (REIT): 3.78%
	117,700	BioMed Realty Trust Incorporated«		2,195,105
	21,100	Equity Residential		1,096,145
	58,188	Host Hotels & Resorts Incorporated«		1,039,820
	77,100	LaSalle Hotel Properties«		2,035,440

				6,366,510


Thrifts & Mortgage Finance: 1.24%
	148,770	People’s United Financial Incorporated«		2,084,268


Health Care: 9.88%

Biotechnology: 1.17%
	32,014	Cephalon Incorporated†«		1,975,904


Health Care Equipment & Supplies: 3.77%
	22,770	C.R. Bard Incorporated«		2,089,603
	50,170	Covidien Limited		2,290,762
	36,676	Zimmer Holdings Incorporated†		1,968,768

				6,349,133


Health Care Providers & Services: 2.40%
	237,500	Health Management Associates Incorporated Class A†«		2,265,750
	25,200	McKesson Corporation		1,773,576

				4,039,326


Portfolio of Investments—December 31, 2010		Wells Fargo Advantage VT Opportunity Fund 13


Shares		Security Name	Value
Life Sciences Tools & Services: 2.54%
	37,690	Thermo Fisher Scientific Incorporated†	$	2,086,518
	28,070	Waters Corporation†		2,181,320

				4,267,838


Industrials: 13.71%

Aerospace & Defense: 1.03%
	29,650	Rockwell Collins Incorporated		1,727,409


Building Products: 1.35%
	179,830	Masco Corporation«		2,276,648


Commercial Services & Supplies: 1.16%
	65,240	Republic Services Incorporated		1,948,066


Construction & Engineering: 1.37%
	50,200	Jacobs Engineering Group Incorporated†		2,301,670


Electrical Equipment: 2.00%
	47,700	AMETEK Incorporated		1,872,225
	20,900	Rockwell Automation Incorporated«		1,498,739

				3,370,964


Machinery: 4.19%
	40,770	Dover Corporation		2,383,007
	44,210	Illinois Tool Works Incorporated		2,360,814
	6,706	Oshkosh Corporation†		236,319
	41,890	Pall Corporation		2,076,906

				7,057,046


Professional Services: 1.49%
	39,879	Manpower Incorporated«		2,502,806


Road & Rail: 1.12%
	46,422	J.B. Hunt Transport Services Incorporated«		1,894,482


Information Technology: 15.42%

Communications Equipment: 1.19%
	51,600	Polycom Incorporated†«		2,011,368


Computers & Peripherals: 1.05%
	32,200	NetApp Incorporated†«		1,769,712


Electronic Equipment & Instruments: 1.34%
	42,660	Amphenol Corporation Class A		2,251,595


Internet Software & Services: 1.69%
	18,920	Akamai Technologies Incorporated†		890,186
	24,000	Equinix Incorporated†		1,950,240

				2,840,426


IT Services: 1.64%
	59,608	Global Payments Incorporated«		2,754,486


Semiconductors & Semiconductor Equipment: 4.99%
	45,550	Altera Corporation«		1,620,669
	260,300	ARM Holdings plc		1,717,893


14 Wells Fargo Advantage VT Opportunity Fund		Portfolio of Investments—December 31, 2010


Shares		Security Name								Value
Semiconductors & Semiconductor Equipment (continued)
	106,200	Microsemi Corporation†								$	2,431,980
	266,340	ON Semiconductor Corporation†«									2,631,439

											8,401,981


Software: 3.52%
	59,300	Autodesk Incorporated†«									2,265,260
	111,400	Electronic Arts Incorporated†«									1,824,732
	40,280	Red Hat Incorporated†									1,838,782

											5,928,774


Materials: 5.04%

Chemicals: 1.60%
	28,270	Praxair Incorporated									2,698,937


Containers & Packaging: 2.67%
	70,580	Crown Holdings Incorporated†									2,355,960
	83,740	Sealed Air Corporation«									2,131,183

											4,487,143


Metals & Mining: 0.77%
	16,830	Agnico-Eagle Mines Limited«									1,290,861


Telecommunication Services: 0.94%

Wireless Telecommunication Services: 0.94%
	30,660	American Tower Corporation Class A†									1,583,282


Total Common Stocks (Cost $117,905,180)											160,466,911


Investment companies: 1.00%
	10,200	SPDR S&P MidCap 400 ETF Trust									1,679,736


Total Investment companies (Cost $1,694,588)											1,679,736


Principal					Interest Rate			Maturity Date
Short-Term Investments: 36.49%

Corporate Bonds & Notes: 1.50%
$	2,205,502	Gryphon Funding Limited(v)(a)(i)				0.00	%		08/05/2011		895,875
	2,901,047	VFNC Corporation(v)±††(a)(i)				0.26			09/29/2011		1,624,586

											2,520,461


Shares					Yield
Investment Companies: 34.99%
	7,851,452	Wells Fargo Advantage Cash Investment Money Market Fund(l)(u)				0.14					7,851,452
	51,045,642	Wells Fargo Securities Lending Cash Investments LLC(v)(l)(u)				0.27					51,045,642

											58,897,094


Total Short-Term Investments (Cost $60,492,594)											61,417,555


Total Investments in Securities (Cost $180,092,362)*			132.83	%							223,564,202

Other Assets and Liabilities, Net			(32.83	)							(55,257,104	)


Total Net Assets			100.00	%						$	168,307,098


Portfolio of Investments—December 31, 2010		Wells Fargo Advantage VT Opportunity Fund 15


(v)		Security represents investment of cash collateral received from securities on loan.

†		Non-income earning securities.

(l)		Investment in an affiliate.

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

±		Variable rate investments.

††		Securities that may be resold to “qualified institutional buyers” under Rule 144A or securities offered pursuant to Section 4(2) of the Securities Act of 1933, as amended.

(a)		Security is fair valued by the Management Valuation Team, and in certain instances by the Board of Trustees, in accordance with procedures approved by the Board of Trustees.

(i)		Illiquid security for which the designation as illiquid is unaudited.

(u)		Rate shown is the 7-day annualized yield at period end.

*		Cost for federal income tax purposes is $187,449,787 and net unrealized appreciation (depreciation) consists of:


Gross unrealized appreciation	$	46,815,825
Gross unrealized depreciation		(10,701,410	)


Net unrealized appreciation	$	36,114,415

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


16 Wells Fargo Advantage VT Opportunity Fund		Statement of Assets and Liabilities—December 31, 2010


Assets
Investments
In unaffiliated securities (including securities on loan), at value	$	164,667,108
In affiliated securities, at value		58,897,094

Total investments, at value ( see cost below)		223,564,202
Foreign currency, at value (see cost below)		12,008
Receivable for investments sold		802,430
Receivable for Fund shares sold		53,486
Receivable for dividends		119,379
Prepaid expenses and other assets		167

Total assets		224,551,672


Liabilities
Payable for investments purchased		2,402,630
Payable for Fund shares redeemed		367,876
Payable upon receipt of securities loaned		52,641,142
Investment advisory fee payable		314,650
Distribution fees payable		38,026
Due to other related parties		16,370
Accrued expenses and other liabilities		463,880

Total liabilities		56,244,574

Total net assets	$	168,307,098


NET ASSETS CONSIST OF
Paid-in capital	$	191,287,864
Undistributed net investment income		88,428
Accumulated net realized losses on investments		(66,540,857	)
Net unrealized gains on investments		43,471,663

Total net assets	$	168,307,098


COMPUTATION OF NET ASSET VALUE PER SHARE¹
Net assets — Class 2	$	168,307,098
Shares outstanding — Class 2		9,134,752
Net asset value per share — Class 2	$	18.42


Total investments, at cost	$	180,092,362

Securities on loan, at value	$	51,152,690

Foreign currency, at cost	$	12,185


1.		The Fund has an unlimited number of authorized shares.

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


Statement of Operations—For the Year Ended December 31, 2010		Wells Fargo Advantage VT Opportunity Fund 17


Investment income
Dividends*	$	1,752,273
Income from affiliated securities		8,898
Securities lending income, net		33,498

Total investment income		1,794,669


Expenses
Investment advisory fee		1,099,207
Administration fees
Fund level		168,008
Class 2¹		60,223
Distribution fees
Class 2¹		391,899
Custody and accounting fees		15,021
Professional fees		40,581
Shareholder report expenses		45,781
Trustees’ fees and expenses		10,549
Other fees and expenses		11,124

Total expenses		1,842,393

Less: Fee waivers and/or expense reimbursements		(168,590	)

Net expenses		1,673,803

Net investment income		120,866


REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on unaffiliated securities and foreign currencies		19,746,984
Net change in unrealized gains (losses) on unaffiliated securities and foreign currencies		14,072,322

Net realized and unrealized gains (losses) on investments		33,819,306

Net increase in net assets resulting from operations	$	33,940,172



* Net of foreign withholding taxes of	$	377



1. After the close of business on July 16, 2010, existing shares of the Fund were renamed Class 2 shares.

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


18 Wells Fargo Advantage VT Opportunity Fund		Statements of Changes in Net Assets


	Year Ended						Year Ended
	December 31, 2010						December 31, 2009

Operations
Net investment income				$	120,866					$	1,145,424
Net realized gains (losses) on investments					19,746,984						(35,715,713	)
Net change in unrealized gains (losses) on investments					14,072,322						158,792,953

Net increase in net assets resulting from operations					33,940,172						124,222,664


Distributions to shareholders from
Net investment income — Class 2*					(1,195,940	)					0


	Shares						Shares
Capital share transactions
Proceeds from shares sold — Class 2*		826,626			13,114,185			4,540,032			55,033,529
Reinvestment of distributions — Class 2*		82,938			1,195,940			0			0
Cost of shares redeemed — Class 2*		(2,085,400	)		(33,529,757	)		(31,456,579	)		(402,671,184	)

Net decrease in net assets resulting from capital share transactions					(19,219,632	)					(347,637,655	)

Net increase (decrease) in net assets					13,524,600						(223,414,991	)


Net assets
Beginning of period					154,782,498						378,197,489

End of period				$	168,307,098					$	154,782,498

Undistributed net investment income				$	88,428					$	1,094,975


*		After the close of business on July 16, 2010, existing shares of the Fund were renamed Class 2 shares.

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

This page is intentionally left blank.


20 Wells Fargo Advantage VT Opportunity Fund		Financial Highlights


	Beginning				Net Realized			Distributions
	Net Asset		Net		and Unrealized			from Net			Distributions
	Value Per		Investment		Gains (Losses)			Investment			from Net
	Share		Income		on Investments			Income			Realized Gains

Class 2²
January 1, 2010 to December 31, 2010	$	15.01		0.02		3.51			(0.12	)		0.00
January 1, 2009 to December 31, 2009	$	10.16		0.11		4.74			0.00			0.00
January 1, 2008 to December 31, 2008	$	22.03		0.12		(7.30	)		(0.37	)		(4.32	)
January 1, 2007 to December 31, 2007	$	24.02		0.21		1.60			(0.16	)		(3.64	)
January 1, 2006 to December 31, 2006	$	24.22		0.13		2.43			0.00			(2.76	)


1.		Total return calculations would have been lower had certain expenses not been waived or reimbursed during the periods shown.

2.		After the close of business on July 16, 2010, existing shares of the Fund were renamed Class 2 shares.

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


Financial Highlights		Wells Fargo Advantage VT Opportunity Fund 21


Ending
Net Asset		Ratio to Average Net Assets												Portfolio			Net Assets at
Value Per		Net Investment			Gross			Net			Total			Turnover			End of Period
Share		Income			Expenses			Expenses			Return¹			Rate			(000’s omitted)


$	18.42		0.08	%		1.18	%		1.07	%		23.76	%		40	%	$	168,307
$	15.01		0.39	%		1.32	%		1.07	%		47.74	%		50	%	$	154,782
$	10.16		0.47	%		1.21	%		1.07	%		(40.10	)%		70	%	$	378,197
$	22.03		0.74	%		1.19	%		1.07	%		6.63	%		64	%	$	779,286
$	24.02		0.48	%		1.18	%		1.07	%		12.22	%		41	%	$	897,047


22 Wells Fargo Advantage VT Opportunity Fund		Notes to Financial Statements

1. ORGANIZATION

Wells Fargo Variable 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”). These financial statements report on Wells Fargo Advantage VT Opportunity Fund (the “Fund”) which is a diversified series of the Trust. After the close of business on July 16, 2010, existing shares of the Fund were renamed Class 2 shares.

2. SIGNIFICANT ACCOUNTING POLICIES

Securities valuation

Securities denominated in foreign currencies are translated into U.S. dollars using the closing rates of exchange in effect on the day of valuation.

Debt securities of sufficient credit quality with original maturities of 60 days or less and any collateral received from securities lending invested in securities, generally are valued at amortized cost which approximates fair value. The amortized cost method involves valuing a security at its cost, plus accretion of discount or minus amortization of premium over the period until maturity.

Investments in open-end mutual funds and non-registered investment companies are generally valued at net asset value.

The valuation techniques used by the Fund to measure fair value are consistent with the market approach, income approach and/or cost approach, where applicable, for each security type.

Foreign currency translation


Notes to Financial Statements		Wells Fargo Advantage VT Opportunity Fund 23

on the respective dates of such transactions. Reported 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 in changes in exchange rates.

Security loans

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 instruments in which cash collateral is invested. The amount of securities lending activity undertaken by the Fund fluctuates from time to time. After the occurrence of a default or impairment of structured investment vehicles purchased in a joint account by the Fund’s former securities lending agent, as the various participating Funds’ lending activity fluctuated, their ratable interest in the joint account, including their ratable exposure to the defaulted or impaired structured investment vehicles fluctuated depending on the relative activity of each participating Fund. In order to eliminate the fluctuation of the various participating Funds’ ratable exposure to the defaulted or impaired structured investment vehicles, the adviser to the Funds recommended to the Board of Trustees, and the Board of Trustees approved, actions designed to fix the allocation of percentage ownership in defaulted or impaired structured investment vehicles among all funds participating in securities lending (“side pocketing”) based on each participating Fund’s percentage ownership of the total cash collateral investment joint account as of the date the fixed allocation is implemented. Accordingly, on February 13, 2009 a side pocketing occurred, which fixed each participating Fund’s ownership of defaulted or impaired structured investment vehicle in the joint account based on each participating Fund’s percentage ownership of the joint account as of such date.


24 Wells Fargo Advantage VT Opportunity Fund		Notes to Financial Statements

Security transactions and income recognition

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

Distributions to shareholders

Federal and other taxes

As of December 31, 2010, the Fund had estimated net capital loss carryforwards, which are available to offset future net realized capital gains, in the amount of $59,079,494 with $2,140,021 expiring in 2016 and $56,939,473 expiring in 2017.

3. FAIR VALUATION MEASUREMENTS

§		Level 1 — quoted prices in active markets for identical securities

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

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


Notes to Financial Statements		Wells Fargo Advantage VT Opportunity Fund 25

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

As of December 31, 2010, the inputs used in valuing the Fund’s assets, which are carried at fair value, were as follows:


			Significant Other		Significant
			Observable		Unobservable
	Quoted Prices		Inputs		Inputs
Investments in Securities	(Level 1)		(Level 2)		(Level 3)		Total
Equity securities
Common stocks	$	160,466,911	$	0	$	0	$	160,466,911
Investment companies		1,679,736		0		0		1,679,736
Short-term investments
Corporate bonds and notes		0		0		2,520,461		2,520,461
Investment companies		7,851,452		51,045,642		0		58,897,094
	$	169,998,099	$	51,045,642	$	2,520,461	$	223,564,202

Further details on the major security types listed above can be found in the Fund’s Portfolio of Investments.

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


	Corporate
	bonds
	and notes
Balance as of December 31, 2009	$	2,672,417
Accrued discounts (premiums)		0
Realized gains (losses)		0
Change in unrealized gains (losses)		611,825
Purchases		0
Sales		(763,781	)
Transfers into level 3		0
Transfers out of Level 3		0
Balance as of December 31, 2010	$	2,520,461
Change in unrealized gains (losses) included in earnings relating to securities still held at December 31, 2010	$	190,045

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

Investment advisory fees

Pursuant to the contract, Funds Management is paid an annual investment advisory fee starting at 0.65% and declining to 0.55% as the average daily net assets of the Fund increase. Prior to July 19, 2010, the Fund paid Funds Management an annual investment advisory fee which started at 0.75% and declined to 0.60% as the average daily net assets of the Fund increased. For the year ended December 31, 2010, the investment advisory fee was equivalent to an annual rate of 0.70% of the Fund’s average daily net assets.

Funds Management may retain the services of certain investment sub-advisers to provide daily portfolio management to the Fund. The fees related to investment sub-advisory services are borne directly by the investment adviser and do not increase the overall fees paid by the Fund to the investment adviser. Wells Capital Management, an affiliate of Funds Management, is the investment sub-adviser to the Fund and is paid a fee by the investment adviser at an annual rate starting at 0.45% and declining to 0.30% as the average daily net assets of the Fund increase.


26 Wells Fargo Advantage VT Opportunity Fund		Notes to Financial Statements

Administration and transfer agent fees


		Administration Fees
		(% of Average
	Average Daily Net Assets	Daily Net Assets)
Fund level	First $5 billion		0.05	%
	Next $5 billion		0.04
	Over $10 billion		0.03
Class 2	All asset levels		0.08

Prior to July 19, 2010, Funds Management received from the Fund an annual fee which started at 0.16% and declined to 0.14% as the average daily net assets of the Fund increased.

Distribution fees

5. INVESTMENT PORTFOLIO TRANSACTIONS

6. BANK BORROWINGS

For the year ended December 31, 2010, there were no borrowings by the Fund under the agreement.

7. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid in ordinary income during the years ended December 31, 2010 and December 31, 2009 were $1,195,940 and $0, respectively.

As of December 31, 2010, the components of distributable earnings on a tax basis were as follows:


Undistributed
Ordinary		Unrealized		Capital Loss
Income		Gains		Carryforward
$	88,430	$	36,010,298	$	(59,079,494	)


Notes to Financial Statements		Wells Fargo Advantage VT Opportunity Fund 27

8. INDEMNIFICATION


28 Wells Fargo Advantage VT Opportunity Fund		Report of Independent Registered Public Accounting Firm

BOARD OF TRUSTEES AND SHAREHOLDERS OF
WELLS FARGO VARIABLE TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Advantage VT Opportunity Fund (the “Fund”), one of the funds constituting the Wells Fargo Variable Trust, as of December 31, 2010, and the related statement of operations for the year then ended, statements of changes in net assets for each of the years in the two year period then ended, and the financial highlights for each of the years in the five year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Advantage VT Opportunity Fund as of December 31, 2010, the results of its operations for the year then ended, changes in its net assets for each of the years in the two year period then ended, and the financial highlights for each of the years in the five year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts
February 25, 2011


Other Information (Unaudited)		Wells Fargo Advantage VT Opportunity Fund 29

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-800-222-8222, visiting our Web site at www.wellsfargo.com/advantagefunds, or visiting the SEC Web site at www.sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge on the Fund’s Web site at www.wellsfargo.com/advantagefunds or by visiting the SEC Web site at www.sec.gov.

TAX INFORMATION

Pursuant to Section 854(b)(2) of the Internal Revenue Code, the Fund designates 100% of its ordinary income dividends distributed during the year ended December 31, 2010 as qualifying for the corporate dividends received deduction.


30 Wells Fargo Advantage VT Opportunity Fund		Other Information (Unaudited)

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available on the Fund’s Web site (www.wellsfargo.com/-advantagefunds) on a monthly, 30-day or more delayed basis. In addition, top ten holdings information for the Fund is publicly available on the Fund’s Web site on a monthly, seven-day or more delayed basis. The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q, which is available without charge by visiting the SEC Web site at www.sec.gov. In addition, the Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and at regional offices in New York City, at 233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900. Information about the Public Reference Room may be obtained by calling 1-800-SEC-0330.

BOARD OF TRUSTEES

Independent Trustees


Name and	Position Held and
Year of Birth	Length of Service	Principal Occupations During Past Five Years	Other Directorships
Peter G. Gordon (Born 1942)	Trustee, since 1998; Chairman, since 2005 (Lead Trustee since 2001)	Co-Founder, Chairman, President and CEO of Crystal Geyser. Water Company. Trustee Emeritus, Colby College	Asset Allocation Trust

Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. 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. Mr. Harris is a certified public accountant.	CIGNA Corporation; Deluxe Corporation; Asset Allocation Trust

Judith M. Johnson (Born 1949)	Trustee, since 2008	Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant.	Asset Allocation Trust

Leroy Keith, Jr. (Born 1939)	Trustee, since 2010	Chairman, Bloc Global Services (development and construction), Trustee of the Evergreen Funds from 1983 to 2010. Former Managing Director, Almanac Capital Management (commodities firm), former Partner, Stonington Partners, Inc. (private equity fund), former Director, Obagi Medical Products Co. and former Director, Lincoln Educational Services.	Trustee, Virtus Fund Complex (consisting of 45 portfolios as of 12/31/10); Director, Diversapack Co. (packaging company); Asset Allocation Trust

David F. Larcker (Born 1951)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of Corporate Governance Research Program and Co-Director of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust


Other Information (Unaudited)		Wells Fargo Advantage VT Opportunity Fund 31


Name and	Position Held and
Year of Birth	Length of Service	Principal Occupations During Past Five Years	Other Directorships
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor and Chair of the Department of Insurance and Risk Management, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust

Timothy J. Penny (Born 1951)	Trustee, since 1996	President and CEO of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust

Michael S. Scofield (Born 1943)	Trustee, since 2010	Currently serves on the Investment Company Institute’s Board of Governors and Executive Committee as well the Independent Director’s Counsel Board of Governors and Executive Committee. Former Chairman of the Independent Directors Counsel. Trustee of the Evergreen Funds from 1984 to 2010. Retired Attorney, Law Offices of Michael S. Scofield and former Director and Chairman, Branded Media Corporation (multi-media branding company).	Asset Allocation Trust

Donald C. Willeke (Born 1940)	Trustee, since 1996	Principal of the law firm of Willeke & Daniels. General Counsel of the Minneapolis Employees Retirement Fund from 1984 until its consolidation into the Minnesota Public Employees Retirement Association on June 30, 2010.	Asset Allocation Trust

Officers


Name and	Position Held and
Year of Birth	Length of Service	Principal Occupations During Past Five Years
Karla M. Rabusch (Born 1959)	President, since 2003	Executive Vice President of Wells Fargo Bank, N.A. and President of Wells Fargo Funds Management, LLC since 2003. Senior Vice President and Chief Administrative Officer of Wells Fargo Funds Management, LLC from 2001 to 2003.

C. David Messman (Born 1960)	Secretary, since 2000; Chief Legal Counsel, since 2003	Senior Vice President and Secretary of Wells Fargo Funds Management, LLC since 2001. Vice President and Managing Counsel of Wells Fargo Bank, N.A. since 1996.

Kasey Phillips (Born 1970)	Treasurer, since 2009	Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2006 to 2010. Treasurer of the Evergreen Funds from 2005 to 2010. Vice President and Assistant Vice President of Evergreen Investment Services, Inc. from 1999 to 2006.

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. Assistant Vice President of Evergreen Investment Services, Inc. from 2004 to 2008. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.

Jeremy DePalma (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. Vice President, Evergreen Investment Services, Inc. from 2004 to 2007. Assistant Vice President, Evergreen Investment Services, Inc. from 2000 to 2004 and the head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.


32 Wells Fargo Advantage VT Opportunity Fund		Other Information (Unaudited)


Name and	Position Held and
Year of Birth	Length of Service	Principal Occupations During Past Five Years
Debra Ann Early (Born 1964)	Chief Compliance Officer, since 2007	Chief Compliance Officer of Wells Fargo Funds Management, LLC since 2007. Chief Compliance Officer of Parnassus Investments from 2005 to 2007. Chief Financial Officer of Parnassus Investments from 2004 to 2007 and Senior Audit Manager of PricewaterhouseCoopers LLP from 1998 to 2004.


1.		The Statement of Additional Information includes additional information about the Fund’s Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the Fund’s Web site at www.wellsfargo.com/advantagefunds.


List of Abbreviations		Wells Fargo Advantage VT Opportunity Fund 33

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


ABAG		— Association of Bay Area Governments
ADR		— American Depositary Receipt
ADS		— American Depository Shares
AMBAC		— American Municipal Bond Assurance Corporation
AMT		— Alternative Minimum Tax
ARM		— Adjustable Rate Mortgages
AUD		— Australian Dollar
BART		— Bay Area Rapid Transit
BRL		— Brazil Real
CAD		— Canadian Dollar
CDA		— Community Development Authority
CDO		— Collateralized Debt Obligation
CDSC		— Contingent Deferred Sales Charge
CGIC		— Capital Guaranty Insurance Company
CGY		— Capital Guaranty Corporation
CHF		— Swiss Franc
CIFG		— CDC (Caisse des Dépôts et Consignations) IXIS Financial Guarantee
COP		— Certificate of Participation
CP		— Commercial Paper
CTF		— Common Trust Fund
DEM		— Deutsche Mark
DKK		— Danish Krone
DW&P		— Department of Water & Power
DWR		— Department of Water Resources
ECFA		— Educational & Cultural Facilities Authority
EDFA		— Economic Development Finance Authority
ETET		— Eagle Tax-Exempt Trust
ETF		— Exchange-Traded Fund
EUR		— Euro
FFCB		— Federal Farm Credit Bank
FGIC		— Financial Guaranty Insurance Corporation
FHA		— Federal Housing Authority
FHAG		— Federal Housing Agency
FHLB		— Federal Home Loan Bank
FHLMC		— Federal Home Loan Mortgage Corporation
FNMA		— Federal National Mortgage Association
FRF		— French Franc
FSA		— Farm Service Agency
GBP		— Great British Pound
GDR		— Global Depositary Receipt
GNMA		— Government National Mortgage Association
GO		— General Obligation
HCFR		— Healthcare Facilities Revenue
HEFA		— Health & Educational Facilities Authority
HEFAR		— Higher Education Facilities Authority Revenue
HFA		— Housing Finance Authority
HFFA		— Health Facilities Financing Authority
HKD		— Hong Kong Dollar
HUD		— Housing & Urban Development
HUF		— Hungarian Forint
IDA		— Industrial Development Authority
IDAG		— Industrial Development Agency
IDR		— Industrial Development Revenue
IEP		— Irish Pound
JPY		— Japanese Yen
KRW		— Republic of Korea Won
LIBOR		— London Interbank Offered Rate
LLC		— Limited Liability Company
LLP		— Limited Liability Partnership
LOC		— Letter of Credit
LP		— Limited Partnership
MBIA		— Municipal Bond Insurance Association
MFHR		— Multi-Family Housing Revenue
MFMR		— Multi-Family Mortgage Revenue
MMD		— Municipal Market Data
MTN		— Medium Term Note
MUD		— Municipal Utility District
MXN		— Mexican Peso
MYR		— Malaysian Ringgit
NATL-RE		— National Public Finance Guarantee Corporation
NLG		— Netherlands Guilder
NOK		— Norwegian Krone
NZD		— New Zealand Dollar
PCFA		— Pollution Control Finance Authority
PCR		— Pollution Control Revenue
PFA		— Public Finance Authority
PFFA		— Public Facilities Financing Authority
plc		— Public Limited Company
PLN		— Polish Zloty
PSFG		— Public School Fund Guaranty
R&D		— Research & Development
RDA		— Redevelopment Authority
RDFA		— Redevelopment Finance Authority
REITS		— Real Estate Investment Trusts
SEK		— Swedish Krona
SFHR		— Single Family Housing Revenue
SFMR		— Single Family Mortgage Revenue
SGD		— Singapore Dollar
SKK		— Slovakian Koruna
SLMA		— Student Loan Marketing Association
SPDR		— Standard & Poor’s Depositary Receipts
STIT		— Short-Term Investment Trust
TBA		— To Be Announced
TRAN		— Tax Revenue Anticipation Notes
TRY		— Turkish Lira
USD		— United States Dollar
XLCA		— XL Capital Assurance
ZAR		— South African Rand

This page is intentionally left blank.

More information about Wells Fargo Advantage Funds is available free upon request. To obtain literature, please write, e-mail, visit the Funds’ Web site, or call:

Wells Fargo Advantage Funds

P.O. Box 8266
Boston, MA 02266-8266
E-mail: wfaf@wellsfargo.com

Web site: www.wellsfargo.com/advantagefunds
Individual Investors: 1-800-222-8222
Retail Investment Professionals: 1- 888-877-9275
Institutional Investment Professionals: 1- 866-765-0778

Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Advantage Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the Funds. The Funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA/SIPC, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED § NO BANK GUARANTEE § MAY LOSE VALUE

WELLS FARGO ADVANTAGE VARIABLE TRUST FUNDS

• Wells Fargo Advantage VT Small Cap Growth Fund

Reduce clutter. Save trees.

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
Statements of Changes in Net Assets			18
Financial Highlights			20

Notes to Financial Statements			22

Report of Independent Registered Public Accounting Firm			28

Other Information			29

List of Abbreviations			33

NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE

WELLS FARGO INVESTMENT HISTORY

1932

Keystone creates one of the first mutual fund families.

1971

Wells Fargo & Company introduces one of the first institutional index funds.

1978		Wells Fargo applies Markowitz and Sharpe’s research on Modern Portfolio Theory to introduce one of the industry’s first Tactical Asset Allocation (TAA) models in institutional separately managed accounts.

1984		Wells Fargo Stagecoach Funds launches its first asset allocation fund.

1989		The Tactical Asset Allocation (TAA) Model is first applied to Wells Fargo’s asset allocation mutual funds.

1994		Wells Fargo introduces the LifePath Funds, one of the first suites of target date funds (now the *Wells Fargo Advantage Dow Jones Target Date Funds*^SM).

1996		Evergreen Investments and Keystone Funds merge.

1997		Wells Fargo launches *Wells Fargo Advantage WealthBuilder Portfolios*^SM, a fund-of-funds suite of products that includes the use of quantitative models to shift assets among investment styles.

1999		Norwest Advantage Funds and Stagecoach Funds are reorganized into Wells Fargo Funds after the merger of Norwest and Wells Fargo.

2002		Evergreen Retail and Evergreen Institutional companies form the umbrella asset management company, Evergreen Investments.

2005		The integration of Strong Funds with Wells Fargo Funds creates *Wells Fargo Advantage Funds*, resulting in one of the top 20 mutual fund companies in the United States.

2006		*Wells Fargo Advantage Funds* relaunches the target date product line as *Wells Fargo Advantage Dow Jones Target Date Funds*.

2010		The mergers and reorganizations of Evergreen and Wells Fargo Advantage mutual funds are completed, unifying the families under the brand of *Wells Fargo Advantage Funds.*

Wells Fargo Advantage Funds^®

Strength

Expertise

Partnership

NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE

Not part of the annual report.

Wells Fargo Advantage Funds offers more than 120 mutual funds across a wide range of asset classes, representing over $236 billion in assets under management, as of December 31, 2010.


Equity Funds

Asia Pacific Fund	Enterprise Fund†	Opportunity Fund†
C&B Large Cap Value Fund	Equity Value Fund	Precious Metals Fund
C&B Mid Cap Value Fund	Global Opportunities Fund	Premier Large Company Growth Fund
Capital Growth Fund	Growth Fund	Small Cap Growth Fund
Classic Value Fund	Growth Opportunities Fund	Small Cap Opportunities Fund
Common Stock Fund	Health Care Fund	Small Cap Value Fund
Core Equity Fund	Index Fund	Small Company Growth Fund
Disciplined Global Equity Fund	International Equity Fund	Small Company Value Fund
Disciplined U.S. Core Fund	International Value Fund	Small/Mid Cap Core Fund
Disciplined Value Fund	Intrinsic Small Cap Value Fund	Small/Mid Cap Value Fund
Discovery Fund†	Intrinsic Value Fund	Social Sustainability Fund†
Diversified Equity Fund	Intrinsic World Equity Fund	Special Mid Cap Value Fund
Diversified International Fund	Large Cap Core Fund	Special Small Cap Value Fund
Diversified Small Cap Fund	Large Cap Growth Fund	Specialized Technology Fund
Emerging Growth Fund	Large Company Value Fund	Strategic Large Cap Growth Fund
Emerging Markets Equity Fund	Mid Cap Growth Fund	Traditional Small Cap Growth Fund
Endeavor Select Fund†	Omega Growth Fund	Utility and Telecommunications Fund

Bond Funds

Adjustable Rate Government Fund	Inflation-Protected Bond Fund	Short-Term Bond Fund
California Limited-Term Tax-Free Fund	Intermediate Tax/AMT-Free Fund	Short-Term High Yield Bond Fund
California Tax-Free Fund	International Bond Fund	Short-Term Municipal Bond Fund
Colorado Tax-Free Fund	Minnesota Tax-Free Fund	Strategic Municipal Bond Fund
Government Securities Fund	Municipal Bond Fund	Total Return Bond Fund
High Income Fund	North Carolina Tax-Free Fund	Ultra Short-Term Income Fund
High Yield Bond Fund	Pennsylvania Tax-Free Fund	Ultra Short-Term Municipal Income Fund
Income Plus Fund	Short Duration Government Bond Fund	Wisconsin Tax-Free Fund

Asset Allocation Funds

Asset Allocation Fund	WealthBuilder Equity Portfolio†	Target 2020 Fund†
Conservative Allocation Fund	WealthBuilder Growth Allocation Portfolio†	Target 2025 Fund†
Diversified Capital Builder Fund	WealthBuilder Growth Balanced Portfolio†	Target 2030 Fund†
Diversified Income Builder Fund	WealthBuilder Moderate Balanced Portfolio†	Target 2035 Fund†
Growth Balanced Fund	WealthBuilder Tactical Equity Portfolio†	Target 2040 Fund†
Index Asset Allocation Fund	Target Today Fund†	Target 2045 Fund†
Moderate Balanced Fund	Target 2010 Fund†	Target 2050 Fund†
WealthBuilder Conservative Allocation Portfolio†	Target 2015 Fund†

Money Market Funds

100% Treasury Money Market Fund	Minnesota Money Market Fund	New Jersey Municipal Money Market Fund
California Municipal Money Market Fund	Money Market Fund	New York Municipal Money Market Fund
Cash Investment Money Market Fund	Municipal Cash Management Money Market Fund	Pennsylvania Municipal Money Market Fund
Government Money Market Fund	Municipal Money Market Fund	Prime Investment Money Market Fund
Heritage Money Market Fund†	National Tax-Free Money Market Fund	Treasury Plus Money Market Fund

Variable Trust Funds¹

VT Core Equity Fund	VT Intrinsic Value Fund	VT Small Cap Value Fund
VT Discovery Fund†	VT Omega Growth Fund	VT Total Return Bond Fund
VT Index Asset Allocation Fund	VT Opportunity Fund†
VT International Equity Fund	VT Small Cap Growth Fund



1.		The Variable Trust Funds are generally available only through insurance company variable contracts.

†		In this report, the Wells Fargo Advantage Discovery Fund^SM, Wells Fargo Advantage Endeavor Select Fund^SM, Wells Fargo Advantage Enterprise Fund^SM, Wells Fargo Advantage Opportunity Fund^SM, Wells Fargo Advantage Social Sustainability Fund^SM, Wells Fargo Advantage WealthBuilder Conservative Allocation Portfolio^SM, Wells Fargo Advantage WealthBuilder Equity Portfolio^SM, Wells Fargo Advantage WealthBuilder Growth Allocation Portfolio^SM, Wells Fargo Advantage WealthBuilder Growth Balanced Portfolio^SM, Wells Fargo Advantage WealthBuilder Moderate Balanced Portfolio^SM, Wells Fargo Advantage WealthBuilder Tactical Equity Portfolio^SM, Wells Fargo Advantage Dow Jones Target Today Fund^SM, Wells Fargo Advantage Dow Jones Target 2010 Fund^SM, Wells Fargo Advantage Dow Jones Target 2015 Fund^SM, Wells Fargo Advantage Dow Jones Target 2020 Fund^SM, Wells Fargo Advantage Dow Jones Target 2025 Fund^SM, Wells Fargo Advantage Dow Jones Target 2030 Fund^SM, Wells Fargo Advantage Dow Jones Target 2035 Fund^SM, Wells Fargo Advantage Dow Jones Target 2040 Fund^SM, Wells Fargo Advantage Dow Jones Target 2045 Fund^SM, Wells Fargo Advantage Dow Jones Target 2050 Fund^SM, Wells Fargo Advantage Heritage Money Market Fund^SM, Wells Fargo Advantage VT Discovery Fund^SM, and Wells Fargo Advantage VT Opportunity FundSM are referred to as the Discovery Fund, Endeavor Select Fund, Enterprise Fund, Opportunity Fund, Social Sustainability Fund, WealthBuilder Conservative Allocation Portfolio, WealthBuilder Equity Portfolio, WealthBuilder Growth Allocation Portfolio, WealthBuilder Growth Balanced Portfolio, WealthBuilder Moderate Balanced Portfolio, WealthBuilder Tactical Equity Portfolio, Target Today Fund, Target 2010 Fund, Target 2015 Fund, Target 2020 Fund, Target 2025 Fund, Target 2030 Fund, Target 2035 Fund, Target 2040 Fund, Target 2045 Fund, Target 2050 Fund, Heritage Money Market Fund, VT Discovery Fund, and VT Opportunity Fund, respectively.

Not part of the annual report.


2 Wells Fargo Advantage VT Small Cap Growth Fund		Letter to Shareholders

Karla M. Rabusch,
President
Wells Fargo Advantage Funds

The equity markets delivered strong full-year returns against the backdrop of a strengthening economy.

Dear Valued Shareholder:

We are pleased to provide you with this annual report for the Wells Fargo Advantage VT Small Cap Growth Fund for the 12 months that ended December 31, 2010. The equity markets delivered strong full-year returns against the backdrop of a strengthening economy. However, the year was not without its share of macroeconomic challenges and market volatility, once again highlighting the value of a sound, well-diversified investment strategy. As always, we believe that such a strategy can enable investors to balance risks and opportunities as they pursue long-term financial goals in a dynamic market environment.

The economic recovery stayed on track.

Jobs and housing remained troublesome.

The Fed continued to do its part.


Letter to Shareholders		Wells Fargo Advantage VT Small Cap Growth Fund 3

2010 was another solid year for equities.

Investors should keep a long-term perspective.

Along with more upbeat economic data, better-than-expected corporate earnings power played a role in driving stock prices higher.


4 Wells Fargo Advantage VT Small Cap Growth Fund		Letter to Shareholders

Thank you for choosing Wells Fargo Advantage Funds. We appreciate your continued confidence in us and are committed to helping you meet your financial needs. If you have any questions about your investments, please contact your investment professional, call us at 1-800-222-8222, or visit wellsfargo.com/advantagefunds.

Sincerely,

Karla M. Rabusch
President
Wells Fargo Advantage Funds

This page is intentionally left blank.


6 Wells Fargo Advantage VT Small Cap Growth Fund		Performance Highlights (Unaudited)

Wells Fargo Advantage VT Small Cap Growth Fund

INVESTMENT OBJECTIVE

The Fund seeks long-term capital appreciation.

INVESTMENT ADVISER

Wells Fargo Funds Management, LLC

SUB-ADVISER

Wells Capital Management Incorporated

PORTFOLIO MANAGERS

Jerome “Cam” Philpott, CFA
Stuart Roberts

FUND INCEPTION

May 1, 1995

PERFORMANCE SUMMARY

12 MONTH TOTAL RETURN AS OF DECEMBER 31, 2010


Class 2	26.77	%
Russell 2000^® Growth Index¹	29.09	%

The adviser has committed, through April 30, 2011, to waive fees and/or reimburse expenses to maintain the contractual expense cap at 1.20% for the Class 2 shares excluding acquired fund fees and certain other expenses. Without these reductions, the Fund’s returns would have been lower. The Fund’s net expense ratio is 1.21% for the Class 2 shares. The Fund’s gross expense ratio is 1.27% for the Class 2 shares.


1.		The Russell 2000^® Growth Index measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values. You cannot invest directly in an index.

2.		The chart compares the performance of the Wells Fargo Advantage VT Small Cap Growth Fund Class 2 for the most recent ten years of the Fund with the Russell 2000^® Growth Index. The chart assumes a hypothetical $10,000 investment and reflects all operating expenses of the Fund.


Performance Highlights (Unaudited)		Wells Fargo Advantage VT Small Cap Growth Fund 7

Wells Fargo Advantage VT Small Cap Growth Fund (continued)

MANAGER’S DISCUSSION

Fund highlights

•		The Fund underperformed its benchmark, the Russell 2000^® Growth Index, for the 12-month period that ended December 31, 2010.

•		Adverse stock selection in multiple sectors, including information technology and telecommunication services, detracted from relative performance.

•		Leading contributors to relative performance were found in the health care and consumer discretionary sectors.

•		We have continued to employ a bottom-up investment process, based on individual company fundamentals rather than top-down, cyclical trends, when making allocation decisions.

Portfolio results varied by sector.

In the health care sector, the Fund outperformed due to strong stock selection and an underweight position relative to the index. A number of our holdings in the sector posted solid quarterly results, including ev3 Inc., an endovascular device company; Volcano Corporation, a medical device company focused on vascular disease; and ViroPharma Incorporated, a biotechnology company. Our holdings in the consumer discretionary sector also delivered good relative performance. Overall, investors were pleasantly surprised by the strength of macroeconomic reports in early 2010, and earnings multiples for consumer stocks expanded. As we found attractive buying opportunities in the sector, we increased the Fund’s weighting accordingly. Shutterfly Inc., an online photography company, was a leading contributor, advancing more than 95% for the year. Live Nation Entertainment, a global producer of live music concerts, was another top performer as the company posted positive operating results.

The information technology sector was our strongest contributor on an absolute basis, yet it underperformed on a relative basis. In mid-August, Dell Inc. and Hewlett-Packard Co. started a bidding war for 3Par Inc., which sparked merger and acquisition (M&A) fever among investors in the data storage industry. As a result, the sector as a whole experienced relatively strong performance. Given our strict valuation discipline, we were underweight in the sector because we thought that the companies were a bit overpriced leading up to the M&A clamor. The largest individual detractor was Global Cash Access, a transaction processor focused on the gaming industry. However, the portfolio also had several positive contributors within information technology that benefited from favorable

TEN LARGEST EQUITY HOLDINGS³
(AS OF DECEMBER 31, 2010)


GSI Commerce Incorporated	3.35	%
Microsemi Corporation	2.36	%
Scientific Games Corporation Class A	2.18	%
PMC-Sierra Incorporated	2.08	%
Dollar Financial Corporation	1.97	%
Bridgepoint Education Incorporated	1.96	%
National Cinemedia Incorporated	1.95	%
Gaylord Entertainment Company	1.95	%
Wright Express Corporation	1.88	%
Corporate Executive Board Company	1.86	%


3.		The ten largest equity holdings are calculated based on the value of the securities divided by total investments of the Fund. Holdings are subject to change and may have changed since the date specified.


8 Wells Fargo Advantage VT Small Cap Growth Fund		Performance Highlights (Unaudited)

Wells Fargo Advantage VT Small Cap Growth Fund (continued)

earnings releases, including Gartner Inc., a technology research and advisory company, and Synchronoss Technologies, a customer activation software company. We significantly reduced our position in Gartner following its share price appreciation.

Our telecommunications holdings underperformed the benchmark, and an overweight position in the sector hurt relative returns as well. Leap Wireless International Inc., which provides local wireless services through its Cricket brand, performed poorly as subscriber growth was below our expectations. We sold the shares on the belief that the company was losing market share. Cbeyond Inc., an alternative communications company, was a poor performer in the early part of the year but rebounded somewhat later in the year. The company made an acquisition that enhanced the services offered to its end customers, which we believe will provide incremental market opportunities going forward. PAETEC Holding Corp., a competitive local exchange company, also reported mixed results; it was a weak performer late in the year following strong performance earlier on. Ultimately, we think the company’s stock price will come to reflect its strong underlying fundamentals.

We are optimistic on our holdings entering 2011.

Despite headwinds along the way, stocks recorded a remarkable 12-month advance. Particularly striking was that all of the market indexes that were negative for the year at the end of August delivered robust gains from September through year-end. In our view, investors simply became too bearish about macroeconomic growth earlier in the year and then responded favorably to better-than-expected data during the final four months. Still, our experience tells us that stocks rarely go straight up even when the economy and corporate fundamentals are improving, so it would not surprise us if the market pauses after such a strong advance.

For the portfolio, we remain focused on finding opportunities one company at a time from a bottom-up perspective. We think many managers were overly influenced by macroeconomic concerns this past year, given the volatility in stock prices, yet we continued to adhere to our disciplined investment process. We believe that small-cap growth stocks as a group are attractive going forward and are optimistic regarding the fundamentals of the companies in our portfolio. Additionally, given the current strength of corporate balance sheets across capitalization categories, we would not be surprised to see an increase in M&A activity going forward.


4.		Sector distribution is subject to change and is calculated based on the total common stock investments of the Fund.


Performance Highlights (Unaudited)		Wells Fargo Advantage VT Small Cap Growth Fund 9

Wells Fargo Advantage VT Small Cap Growth Fund (continued)

AVERAGE ANNUAL TOTAL RETURN (%) (AS OF DECEMBER 31, 2010)5


										Expense Ratios⁶
	Inception Date	6 Months*		1 Year		5 Year		10 Year		Gross			Net⁷
Class 1	7/16/2010		28.75		26.93		9.66		2.45		0.99	%		0.96	%
Class 2	5/1/1995		28.59		26.77		9.63		2.44		1.27	%		1.21	%
Russell 2000^® Growth Index¹			32.14		29.09		5.30		3.78


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


5.		Performance shown for Class 1 shares prior to its inception reflects the performance of Class 2 shares, and includes the higher expenses applicable to Class 2 shares. If these expenses had not been included, returns would be higher.

6.		Reflects the expense ratio as stated in the July 19, 2010 prospectus, for Class 1. Reflects the expense ratio as stated in the May 1, 2010 prospectus for Class 2.

7.		For Class 1, the investment adviser has contractually committed through July 18, 2013 to waive fees and/or reimburse expenses to maintain the Fund’s contractual expense ratio for Class 1 at 0.95%, excluding acquired fund fees and certain other expenses. Without these reductions, the Fund’s returns would have been lower. For Class 2, the investment adviser has contractually committed through April 30, 2011 to waive fees and/or reimburse expenses to maintain the Fund’s contractual expense ratio for Class 2 at 1.20%, excluding acquired fund fees and certain other expenses. Without these reductions, the Fund’s returns would have been lower.


10 Wells Fargo Advantage VT Small Cap Growth Fund		Fund Expenses (Unaudited)

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 July 1, 2010 to December 31, 2010.

Actual expenses

Hypothetical example for comparison purposes


	Beginning		Ending		Expenses
	Account Value		Account Value		Paid During		Net Annual
	07-01-2010		12-31-2010		the Period¹		Expense Ratio
Class 1
Actual	$	1,000.00	$	1,287.54	$	5.54		0.95	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.64	$	4.89		0.95	%
Class 2
Actual	$	1,000.00	$	1,285.94	$	6.99		1.20	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.36	$	6.17		1.20	%


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



Portfolio of Investments—December 31, 2010		Wells Fargo Advantage VT Small Cap Growth Fund 11


Shares		Security Name	Value
Common Stocks: 95.89%

Consumer Discretionary: 20.18%

Diversified Consumer Services: 3.99%
	286,867	Bridgepoint Education Incorporated†	$	5,450,473
	61,900	Coinstar Incorporated«†		3,493,636
	133,182	Grand Canyon Education Incorporated†		2,609,035

				11,553,144


Hotels, Restaurants & Leisure: 6.57%
	150,500	Gaylord Entertainment Company«†		5,408,970
	360,344	Great Wolf Resorts Incorporated†		944,101
	124,500	Ruby Tuesday Incorporated†		1,625,970
	607,540	Scientific Games Corporation Class A†		6,051,098
	271,922	Shuffle Master Incorporated†		3,113,507
	41,667	WMS Industries Incorporated†		1,885,015

				19,028,661


Household Durables: 0.70%
	43,600	Harman International Industries Incorporated†		2,018,680


Internet & Catalog Retail: 1.44%
	119,380	Shutterfly Incorporated†		4,181,881


Leisure Equipment & Products: 1.59%
	59,001	Polaris Industries Incorporated«		4,603,258

Media: 3.79%
	344,428	Live Nation Incorporated«†		3,933,368
	272,177	National Cinemedia Incorporated		5,419,044
	81,312	Reachlocal Incorporated«†		1,618,922

				10,971,334


Specialty Retail: 2.10%
	133,820	Express Incorporated«		2,515,816
	51,100	HHGregg Incorporated«†		1,070,545
	238,400	Pier 1 Imports Incorporated«†		2,503,200

				6,089,561


Consumer Staples: 0.47%

Beverages: 0.47%
	96,079	Primo Water Corporation«†		1,365,283


Energy: 2.71%

Oil, Gas & Consumable Fuels: 2.71%
	75,050	Brigham Exploration Company†		2,044,362
	107,000	Carrizo Oil & Gas Incorporated«†		3,690,430
	319,900	Kodiak Oil & Gas Corporation«†		2,111,340

				7,846,132


Financials: 4.83%

Capital Markets: 0.62%
	215,300	MF Global Holdings Limited†		1,799,908



12 Wells Fargo Advantage VT Small Cap Growth Fund		Portfolio of Investments—December 31, 2010


Shares		Security Name	Value
Commercial Banks: 0.55%
	166,300	First Commonwealth Financial Corporation	$	1,177,404
	68,100	Park Sterling Corporation†		419,496

				1,596,900


Consumer Finance: 2.26%
	190,700	Dollar Financial Corporation†		5,459,741
	85,038	Netspend Holdings Incorporated†		1,090,187

				6,549,928


Insurance: 1.40%
	158,400	Tower Group Incorporated«		4,051,872


Health Care: 15.99%

Biotechnology: 4.15%
	143,900	Acorda Therapeutics Incorporated†		3,922,714
	244,903	Halozyme Therapeutics Incorporated«†		1,939,632
	109,000	Onyx Pharmaceuticals Incorporated†		4,018,830
	226,816	Vanda Pharmaceuticals Incorporated«†		2,145,679

				12,026,855


Health Care Equipment & Supplies: 4.53%
	98,400	Greatbatch Incorporated†		2,376,360
	53,605	Sirona Dental Systems Incorporated«†		2,239,617
	130,181	SonoSite Incorporated†		4,113,720
	194,168	Spectranetics Corporation†		1,001,907
	123,959	Volcano Corporation†		3,385,320

				13,116,924


Health Care Providers & Services: 1.10%
	125,400	Centene Corporation†		3,177,636


Health Care Technology: 1.34%
	55,801	Quality Systems Incorporated		3,896,026


Life Sciences Tools & Services: 1.23%
	244,400	Affymetrix Incorporated«†		1,229,332
	128,026	Luminex Corporation†		2,340,315

				3,569,647


Pharmaceuticals: 3.64%
	143,800	Auxilium Pharmaceuticals Incorporated†		3,034,180
	75,600	Impax Laboratories Incorporated†		1,520,316
	80,000	Jazz Pharmaceuticals Incorporated†		1,574,400
	254,600	ViroPharma Incorporated†		4,409,672

				10,538,568


Industrials: 19.28%

Aerospace & Defense: 1.66%
	85,900	DigitalGlobe Incorporated†		2,723,889
	30,579	Esterline Technologies Corporation«†		2,097,414

				4,821,303



Portfolio of Investments—December 31, 2010		Wells Fargo Advantage VT Small Cap Growth Fund 13


Shares		Security Name	Value
Air Freight & Logistics: 2.09%
	69,800	Atlas Air Worldwide Holdings Incorporated†	$	3,896,934
	101,800	UTI Worldwide Incorporated		2,158,160

				6,055,094


Commercial Services & Supplies: 9.03%
	28,400	Clean Harbors Incorporated«†		2,387,872
	137,412	Corporate Executive Board Company		5,159,821
	81,400	ICF International Incorporated†		2,093,608
	489,067	InnerWorkings Incorporated«†		3,203,389
	101,100	Kforce Incorporated†		1,635,798
	370,368	On Assignment Incorporated†		3,018,499
	165,195	Resources Connection Incorporated		3,070,975
	209,024	Sykes Enterprises Incorporated†		4,234,826
	21,300	United Stationers Incorporated†		1,359,153

				26,163,941


Electrical Equipment: 0.69%
	37,600	Wesco International Incorporated†		1,985,280


Machinery: 5.40%
	67,292	Chart Industries Incorporated†		2,273,124
	30,500	Circor International Incorporated		1,289,540
	40,046	Gardner Denver Incorporated		2,755,966
	76,100	Robbins & Myers Incorporated«		2,722,858
	17,699	The Middleby Corporation†		1,494,150
	266,950	Wabash National Corporation«†		3,163,358
	37,000	Wabtec Corporation		1,956,930

				15,655,926


Road & Rail: 0.41%
	90,950	RailAmerica Incorporated†		1,177,803


Information Technology: 27.18%

Communications Equipment: 1.79%
	79,000	Blue Coat Systems Incorporated†		2,359,730
	102,031	Ixia†		1,712,080
	84,200	Oclaro Incorporated«†		1,107,230

				5,179,040


Internet Software & Services: 9.65%
	87,500	Ancestry.com Incorporated†		2,478,000
	52,300	Constant Contact Incorporated«†		1,620,777
	69,518	DealerTrack Holdings Incorporated†		1,395,226
	79,636	Dice Holdings Incorporated†		1,142,777
	400,896	GSI Commerce Incorporated†		9,300,787
	278,893	Marchex Incorporated Class B		2,660,639
	784,661	Move Incorporated«†		2,016,579
	182,177	Quinstreet Incorporated†		3,499,620
	83,361	VistaPrint NV†		3,834,606

				27,949,011



14 Wells Fargo Advantage VT Small Cap Growth Fund		Portfolio of Investments—December 31, 2010


Shares			Security Name						Value
IT Services: 5.01%
	126,043	��	Euronet Worldwide Incorporated†						$	2,198,190

	81,246		Gartner Incorporated†							2,697,367
	487,183		Global Cash Access Incorporated†							1,554,114
	233,191		Sapient Corporation							2,821,611
	113,772		Wright Express Corporation†							5,233,512

										14,504,794

Semiconductors & Semiconductor Equipment: 5.71%
	255,200		JA Solar Holdings Company Limited«†							1,765,984
	285,899		Microsemi Corporation†							6,547,087
	148,602		Monolithic Power Systems Incorporated†							2,454,905

	672,200		PMC-Sierra Incorporated†							5,774,198
										16,542,174

Software: 5.02%
	62,000		Blackboard Incorporated†							2,560,600
	192,658		Synchronoss Technologies Incorporated†							5,145,895
	81,251		Taleo Corporation Class A†							2,246,590
	352,862		THQ Incorporated«†							2,138,344

	284,100		Tivo Incorporated«†							2,451,783
										14,543,212

Materials: 2.77%

Chemicals: 2.21%
	145,139		Calgon Carbon Corporation«†							2,194,502
	53,800		Intrepid Potash Incorporated«†							2,006,202
	95,400		Solutia Incorporated†							2,201,832

										6,402,536

Containers & Packaging: 0.56%

	124,150		Graham Packaging Corporation†							1,618,916

Telecommunication Services: 2.48%

Diversified Telecommunication Services: 2.48%
	328,019		Cbeyond Incorporated«†							5,012,130
	582,700		PAETEC Holding Corporation«†							2,179,298

										7,191,428


Total Common Stocks (Cost $233,932,057)										277,772,656

Principal				Interest Rate			Maturity Date
Short-Term Investments: 23.44%

Corporate Bonds & Notes: 0.38%
	964,665		Gryphon Funding Limited(a)(i)(v)		0.00	%		08/05/2011		391,847
	1,268,890		VFNC Corporation(a)(i)(v)±††		0.26			09/29/2011		710,577

										1,102,424



Portfolio of Investments—December 31, 2010		Wells Fargo Advantage VT Small Cap Growth Fund 15


Shares		Security Name			Yield			Value
Investment Companies: 23.06%
	14,673,852	Wells Fargo Advantage Cash Investment Money Market Fund(l)(u)				0.14	%	$	14,673,852
	52,136,082	Wells Fargo Securities Lending Cash Investments LLC(v)(l)(u)				0.27			52,136,082
									66,809,934

Total Short-Term Investments (Cost $67,507,791)									67,912,358

Total Investments in Securities (Cost $301,439,848)*			119.33	%					345,685,014
Other Assets and Liabilities, Net			(19.33	)					(56,005,648	)


Total Net Assets			100.00	%				$	289,679,366


†		Non-income earning securities.

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

(l)		Investment in an affiliate.

(a)		Security is fair valued by the Management Valuation Team, and in certain instances by the Board of Trustees, in accordance with procedures approved by the Board of Trustees.

(i)		Illiquid security for which the designation as illiquid is unaudited.

(v)		Security represents investment of cash collateral received from securities on loan.

±		Variable rate investments.

††		Securities that may be resold to “qualified institutional buyers” under Rule 144A or securities offered pursuant to Section 4(2) of the Securities Act of 1933, as amended.

(u)		Rate shown is the 7-day annualized yield at period end.

*		Cost for federal income tax purposes is $306,158,110 and net unrealized appreciation (depreciation) consists of:


Gross unrealized appreciation	$	54,678,956
Gross unrealized depreciation		(15,152,052	)
Net unrealized appreciation	$	39,526,904

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


16 Wells Fargo Advantage VT Small Cap Growth Fund		Statement of Assets and Liabilities—December 31, 2010


Assets
Investments
In unaffiliated securities (including securities on loan), at value	$	278,875,080
In affiliated securities, at value		66,809,934

Total investments, at value (see cost below)		345,685,014
Receivable for investments sold		340,750
Receivable for Fund shares sold		576,277
Receivable for dividends		18,453
Receivable for securities lending income		6,549
Prepaid expenses and other assets		4,504

Total assets		346,631,547


Liabilities
Payable for investments purchased		3,402,908
Payable for Fund shares redeemed		331,948
Payable upon receipt of securities loaned		52,833,938
Investment advisory fee payable		210,148
Distribution fees payable		60,310
Due to other related parties		36,396
Accrued expenses and other liabilities		76,533

Total liabilities		56,952,181

Total net assets	$	289,679,366


NET ASSETS CONSIST OF
Paid-in capital	$	257,802,705
Undistributed net investment loss		(1,998	)
Accumulated net realized losses on investments		(12,366,507	)
Net unrealized gains on investments		44,245,166

Total net assets	$	289,679,366


COMPUTATION OF NET ASSET VALUE PER SHARE ¹
Net assets — Class 1	$	42,433,600
Shares outstanding — Class 1		5,264,222
Net asset value per share — Class 1	$	8.06
Net assets — Class 2	$	247,245,766
Shares outstanding — Class 2		30,707,355
Net asset value per share — Class 2	$	8.05


Total investments, at cost	$	301,439,848

Securities on loan, at value	$	51,016,576


1		The Fund has an unlimited number of authorized shares.

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


Statement of Operations—For the Year Ended December 31, 2010		Wells Fargo Advantage VT Small Cap Growth Fund 17


Investment income
Dividends	$	781,061
Income from affiliated securities		7,387
Securities lending income, net		67,746

Total investment income		856,194


Expenses
Investment advisory fee		1,717,006
Administration fees
Fund level		232,878
Class 1**		13,987
Class 2*		83,043
Distribution fees
Class 2*		528,626
Custody and accounting fees		35,996
Professional fees		29,110
Shareholder report expenses		72,169
Trustees’ fees and expenses		12,155
Other fees and expenses		4,714

Total expenses		2,729,684

Less: Fee waivers and/or expense reimbursements		(33,934	)

Net expenses		2,695,750

Net investment loss		(1,839,556	)


NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS

Net realized gains on unaffiliated securities		27,159,838
Net change in unrealized gains (losses) on unaffiliated securities		34,892,151

Net realized and unrealized gains (losses) on investments		62,051,989

Net increase in net assets resulting from operations	$	60,212,433


*		After the close of business on July 16, 2010, existing shares of the Fund were renamed Class 2 shares.

**		Class commenced operations on July 16, 2010.

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


18 Wells Fargo Advantage VT Small Cap Growth Fund		Statements of Changes in Net Assets


	Year Ended				Year Ended
	December 31, 2010				December 31, 2009
Operations
Net investment loss		$	(1,839,556	)		$	(964,406	)
Net realized gains (losses) on investments			27,159,838				(9,759,000	)
Net change in unrealized gains (losses) on investments			34,892,151				69,420,121

Net increase in net assets resulting from operations			60,212,433				58,696,715


	Shares						Shares
Capital share transactions
Proceeds from shares sold
Class 1**		345,312			2,449,216		NA			NA
Class 2*		9,158,617			64,586,061			12,954,722			69,566,868

					67,035,277						69,566,868


Payment for shares redeemed
Class 1**		(831,507	)		(5,663,229	)	NA			NA
Class 2*		(8,891,344	)		(61,045,657	)		(10,173,454	)		(52,914,729	)

					(66,708,886	)					(52,914,729	)


Net asset value of shares issued in acquisition
Class 1**		5,750,417			36,024,647		NA			NA
Class 2*		1,240,431			7,770,923			0			0

					43,795,570						0

Net increase in net assets resulting from capital share transactions					44,121,961						16,652,139

Total increase in net assets					104,334,394						75,348,854


Net assets
Beginning of period					185,344,972						109,996,118

End of period				$	289,679,366					$	185,344,972

Undistributed net investment income (loss)				$	(1,998	)				$	0


*		After the close of business on July 16, 2010, existing shares of the Fund were renamed Class 2 shares.

**		Class commenced operations on July 16, 2010.

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

This page is intentionally left blank.


20 Wells Fargo Advantage VT Small Cap Growth Fund		Financial Highlights


	Beginning					Net Realized
	Net Asset		Net			and Unrealized			Distributions
	Value Per		Investment			Gains (Losses)			from Net
	Share		Loss			on Investments			Realized Gains

Class 1
July 16, 2010³ to December 31, 2010	$	6.26		(0.02	)		1.82			0.00

Class 2⁴
January 1, 2010 to December 31, 2010	$	6.35		(0.06	)		1.76			0.00
January 1, 2009 to December 31, 2009	$	4.16		(0.03	)		2.22			0.00
January 1, 2008 to December 31, 2008	$	9.69		(0.05	)		(3.31	)		(2.17	)
January 1, 2007 to December 31, 2007	$	9.96		(0.07	)		1.52			(1.72	)
January 1, 2006 to December 31, 2006	$	8.34		(0.09	)		1.94			(0.23	)


1.		Total return calculations would have been lower had certain expenses not been waived or reimbursed during the periods shown. Returns for periods less than one year are not annualized.

2.		Calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. Portfolio turnover rates presented for periods of less than one year are not annualized.

3.		Class commenced operations on July 16, 2010

4.		After the close of business on July 16, 2010, existing shares of the Fund were renamed Class 2 shares.

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


Financial Highlights		Wells Fargo Advantage VT Small Cap Growth Fund 21


Ending
Net Asset	Ratio to Average Net Assets (Annualized)												Portfolio			Net Assets at
Value Per	Net Investment			Gross			Net			Total			Turnover			End of Period
Share	Loss			Expenses			Expenses			Return¹			Rate²			(000’s omitted)

$8.06		(0.58	)%		0.95	%		0.95	%		26.93	%		71	%	$	42,434

$8.05		(0.82	)%		1.22	%		1.20	%		26.77	%		71	%	$	247,246
$6.35		(0.69	)%		1.26	%		1.20	%		52.64	%		75	%	$	185,345
$4.16		(0.73	)%		1.26	%		1.20	%		(41.42	)%		76	%	$	109,996
$9.69		(0.73	)%		1.22	%		1.20	%		13.81	%		121	%	$	221,394
$9.96		(0.98	)%		1.23	%		1.20	%		22.75	%		135	%	$	190,516



22 Wells Fargo Advantage VT Small Cap Growth Fund		Notes to Financial Statements

1. ORGANIZATION

Wells Fargo Variable 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”). These financial statements report on Wells Fargo Advantage VT Small Cap Growth Fund (the “Fund”) which is a diversified series of the Trust. After the close of business on July 16, 2010, existing shares of the Fund were renamed Class 2 shares.

2. SIGNIFICANT ACCOUNTING POLICIES

Securities valuation

Investments in open-end mutual funds and non-registered investment companies are generally valued at net asset value.

The valuation techniques used by the Fund to measure fair value are consistent with the market approach, income approach and/or cost approach, where applicable, for each security type.

Security loans



Notes to Financial Statements		Wells Fargo Advantage VT Small Cap Growth Fund 23

fees received by Funds Management are paid to Wells Capital Management for its services as sub-adviser. The Cash Collateral Fund seeks to provide a positive return compared to the daily Fed Funds Open rate by investing in high-quality, U.S. dollar-denominated short-term money market instruments. Cash Collateral Fund investments are fair valued based upon the amortized cost valuation technique. Income earned from investment in the Cash Collateral Fund is included in securities lending income on the Statement of Operations.

Prior to April 1, 2010, Wells Fargo Bank, N.A. acted as the securities lending agent for the Fund and was entitled to receive for its services 25% of the revenues earned on the securities lending activities. For the year ended December 31, 2010, Wells Fargo Bank, N.A. waived a portion of its share of revenues earned on securities lending activities. Such waivers by Wells Fargo Bank, N.A. had the impact of increasing securities lending income on the Statement of Operations. The value of the securities on loan and the liability to return the collateral are shown on the Statement of Assets and Liabilities.

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 instruments in which cash collateral is invested. The amount of securities lending activity undertaken by the Fund fluctuates from time to time. After the occurrence of a default or impairment of structured investment vehicles purchased in a joint account by the Fund’s former securities lending agent, as the various participating Funds’ lending activity fluctuated, their ratable interest in the joint account, including their ratable exposure to the defaulted or impaired structured investment vehicles fluctuated depending on the relative activity of each participating Fund. In order to eliminate the fluctuation of the various participating Funds’ ratable exposure to the defaulted or impaired structured investment vehicles, the adviser to the Funds recommended to the Board of Trustees, and the Board of Trustees approved, actions designed to fix the allocation of percentage ownership in defaulted or impaired structured investment vehicles among all funds participating in securities lending (“side pocketing”) based on each participating Fund’s percentage ownership of the total cash collateral investment joint account as of the date the fixed allocation is implemented. Accordingly, on February 13, 2009 a side pocketing occurred, which fixed each participating Fund’s ownership of defaulted or impaired structured investment vehicle in the joint account based on each participating Fund’s percentage ownership of the joint account as of such date.

Security transactions and income recognition

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

Dividend income is recognized on the ex-dividend date.

Distributions to shareholders


		Accumulated Net
		Realized
Undistributed Net		Losses
Investment Loss		on Investments			Paid-in Capital

$	1,839,071	$	(44,119	)	$	(1,794,952	)

Federal and other taxes



24 Wells Fargo Advantage VT Small Cap Growth Fund		Notes to Financial Statements

As of December 31, 2010, the Fund had estimated net capital loss carryforwards, which are available to offset future net realized capital gains, in the amount of $7,648,245 with $374,608 expiring in 2015, $2,685,844 expiring in 2016 and $4,587,793 expiring in 2017.

Class allocations

3. FAIR VALUATION MEASUREMENTS

•		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 securities are not necessarily an indication of the risk associated with investing in those securities.

As of December 31, 2010, the inputs used in valuing the Fund’s assets, which are carried at fair value, were as follows:


			Significant Other		Significant
			Observable		Unobservable
	Quoted Prices		Inputs		Inputs
Investments in Securities	(Level 1)		(Level 2)		(Level 3)		Total

Equity securities
Common stocks	$	277,772,656	$	0	$	0	$	277,772,656
Short-term investments
Corporate bonds and notes		0		0		1,102,424		1,102,424
Investment companies		14,673,852		52,136,082		0		66,809,934
Total	$	292,446,508	$	52,136,082	$	1,102,424	$	345,685,014

Further details on the major security types listed above can be found in the Fund’s Portfolio of Investments.



Notes to Financial Statements		Wells Fargo Advantage VT Small Cap Growth Fund 25

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


	Corporate
	bonds and notes

Balance as of December 31, 2009	$	1,168,890
Realized gains (losses)		0
Change in unrealized gains (losses)		267,603
Purchases		0
Sales		(334,069	)
Transfers into Level 3		0
Transfers out of Level 3		0
Balance as of December 31, 2010	$	1,102,424
Change in unrealized gains (losses) included in earnings relating to securities still held at December 31, 2010	$	83,123

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

Investment advisory fees

Pursuant to the contract, Funds Management is paid an annual investment advisory fee starting at 0.75% and declining to 0.60% as the average daily net assets of the Fund increase. For the year ended December 31, 2010, the investment advisory fee was equivalent to an annual rate of 0.75% of the Fund’s average daily net assets.

Funds Management may retain the services of certain investment sub-advisers to provide daily portfolio management to the Fund. The fees related to investment sub-advisory services are borne directly by the investment adviser and do not increase the overall fees paid by the Fund to the investment adviser. Wells Capital Management, an affiliate of Funds Management, is the investment sub-adviser to the Fund and is paid a fee by the investment adviser at an annual rate starting at 0.55% and declining to 0.40% as the average daily net assets of the Fund increase.

Administration and transfer agent fees


		Administration Fees
		(% of Average
	Average Daily Net Assets	Daily Net Assets)

Fund level	First $5 billion		0.05	%
	Next $5 billion		0.04
	Over $10 billion		0.03
Class 1 and Class 2	All asset levels		0.08



26 Wells Fargo Advantage VT Small Cap Growth Fund		Notes to Financial Statements

Distribution fees

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, exclusive of short-term securities (securities with maturities of one year or less at purchase date) for the year ended December 31, 2010, were $157,063,581 and $166,533,135 respectively.

6. ACQUISITION

After the close of business on July 16, 2010, the Fund acquired the net assets of Evergreen VA Growth Fund and renamed its existing shares as Class 2 shares. The purpose of the transaction was to combine two funds with similar investment objectives and strategies. Shareholders holding Class 1 and Class 2 shares of Evergreen VA Growth Fund received Class 1 and Class 2 shares of the Fund in the reorganization. The acquisition was accomplished by a tax-free exchange of all of the shares of Evergreen VA Growth Fund for 6,990,848 shares of the Fund valued at $43,795,570 at an exchange ratio of 1.82 and 1.78 for Class 1 and Class 2 shares, respectively. The investment portfolio of Evergreen VA Growth Fund with a fair value of $43,824,635, identified cost of $43,592,498 and unrealized gains of $232,137 at July 16, 2010 were the principal assets acquired by the Fund. The aggregate net assets of Evergreen VA Growth Fund and the Fund immediately prior to the acquisition were $43,795,570 and $198,568,568, respectively. The aggregate net assets of the Fund immediately after the acquisition were $242,364,138. For financial reporting purposes, assets received and shares issued by the Fund were recorded at fair value; however, the cost basis of the investments received from Evergreen VA Growth Fund was carried forward to align ongoing reporting of the Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.


Net investment loss	$	(2,025,264	)
Net realized and unrealized gains on investments	$	61,432,964
Net increase in net assets resulting from operations	$	59,407,700

Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of Evergreen VA Growth Fund that have been included in the Fund’s Statement of Operations since July 19, 2010.

7. BANK BORROWINGS

For the year ended December 31, 2010, there were no borrowings by the Fund under the agreement.

8. DISTRIBUTIONS TO SHAREHOLDERS

As of December 31, 2010, the components of distributable earnings on a tax basis were as follows:


Unrealized		Capital Loss
Gains		Carryforward

$	39,526,904	$	(7,648,245	)



Notes to Financial Statements		Wells Fargo Advantage VT Small Cap Growth Fund 27

9. INDEMNIFICATION



28 Wells Fargo Advantage VT Small Cap Growth Fund		Report of Independent Registered Public Accounting Firm

BOARD OF TRUSTEES AND SHAREHOLDERS OF
WELLS FARGO VARIABLE TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Advantage VT Small Cap Growth Fund (the “Fund”), one of the funds constituting the Wells Fargo Variable Trust, as of December 31, 2010, and the related statement of operations for the year then ended, statements of changes in net assets for each of the years in the two year period then ended, and the financial highlights for the years or periods presented. 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.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Advantage VT Small Cap Growth Fund as of December 31, 2010, the results of its operations for the year then ended, changes in its net assets for each of the years in the two year period then ended, and the financial highlights for the years or periods presented, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts
February 25, 2011



Other Information (Unaudited)		Wells Fargo Advantage VT Small Cap Growth Fund 29

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-800-222-8222, visiting our Web site at www.wellsfargo.com/advantagefunds, or visiting the SEC Web site at www.sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge on the Fund’s Web site at www.wellsfargo.com/advantagefunds or by visiting the SEC Web site at www.sec.gov.


30 Wells Fargo Advantage VT Small Cap Growth Fund		Other Information (Unaudited)

PORTFOLIO HOLDINGS INFORMATION

BOARD OF TRUSTEES

The following table provides basic information about the Board of Trustees (the “Trustees”) of the Wells Fargo Variable Trust (the “Trust”) and Officers of the Trust. This table should be read in conjunction with the Prospectus and the Statement of Additional Information1 of the Fund. Each of the Trustees and Officers listed below acts in identical capacities for the Wells Fargo Advantage family of funds, which consists of 152 funds comprising the Trust, Wells Fargo Funds Trust, Wells Fargo Master Trust and four closed-end funds (collectively the “Fund Complex”). All of the Trustees are also Members of the Audit and Governance Committees of each Trust in the Fund Complex. The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.

Independent Trustees


Name and	Position Held and
Year of Birth	Length of Service	Principal Occupations During Past Five Years	Other Directorships

Peter G. Gordon (Born 1942)	Trustee, since 1998; Chairman, since 2005 (Lead Trustee since 2001)	Co-Founder, Chairman, President and CEO of Crystal Geyser. Water Company. Trustee Emeritus, Colby College	Asset Allocation Trust

Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. 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. Mr. Harris is a certified public accountant.	CIGNA Corporation; Deluxe Corporation; Asset Allocation Trust

Judith M. Johnson (Born 1949)	Trustee, since 2008	Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008 Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant.	Asset Allocation Trust

Leroy Keith, Jr. (Born 1939)	Trustee, since 2010	Chairman, Bloc Global Services (development and construction), Trustee of the Evergreen Funds from 1983 to 2010. Former Managing Director, Almanac Capital Management (commodities firm), former Partner, Stonington Partners, Inc. (private equity fund), former Director, Obagi Medical Products Co. and former Director, Lincoln Educational Services.	Trustee, Virtus Fund Complex (consisting of 45 portfolios as of 12/31/10); Director, Diversapack Co. (packaging company); Asset Allocation Trust

David F. Larcker (Born 1951)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of Corporate Governance Research Program and Co-Director of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust


Other Information (Unaudited)		Wells Fargo Advantage VT Small Cap Growth Fund 31


Name and	Position Held and
Year of Birth	Length of Service	Principal Occupations During Past Five Years	Other Directorships

Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor and Chair of the Department of Insurance and Risk Management, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust

Timothy J. Penny (Born 1951)	Trustee, since 1996	President and CEO of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust

Michael S. Scofield (Born 1943)	Trustee, since 2010	Currently serves on the Investment Company Institute’s Board of Governors and Executive Committee as well the Independent Director’s Counsel Board of Governors and Executive Committee. Former Chairman of the Independent Directors Counsel. Trustee of the Evergreen Funds from 1984 to 2010. Retired Attorney, Law Offices of Michael S. Scofield and former Director and Chairman, Branded Media Corporation (multi-media branding company).	Asset Allocation Trust

Donald C. Willeke (Born 1940)	Trustee, since 1996	Principal of the law firm of Willeke & Daniels. General Counsel of the Minneapolis Employees Retirement Fund from 1984 until its consolidation into the Minnesota Public Employees Retirement Association on June 30, 2010.	Asset Allocation Trust

Officers


Name and	Position Held and
Year of Birth	Length of Service	Principal Occupations During Past Five Years

Karla M. Rabusch (Born 1959)	President, since 2003	Executive Vice President of Wells Fargo Bank, N.A. and President of Wells Fargo Funds Management, LLC since 2003. Senior Vice President and Chief Administrative Officer of Wells Fargo Funds Management, LLC from 2001 to 2003.

C. David Messman (Born 1960)	Secretary, since 2000; Chief Legal Counsel, since 2003	Senior Vice President and Secretary of Wells Fargo Funds Management, LLC since 2001. Vice President and Managing Counsel of Wells Fargo Bank, N.A. since 1996.

Kasey Phillips (Born 1970)	Treasurer, since 2009	Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2006 to 2010. Treasurer of the Evergreen Funds from 2005 to 2010. Vice President and Assistant Vice President of Evergreen Investment Services, Inc. from 1999 to 2006.

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. Assistant Vice President of Evergreen Investment Services, Inc. from 2004 to 2008. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.

Jeremy DePalma (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. Vice President, Evergreen Investment Services, Inc. from 2004 to 2007. Assistant Vice President, Evergreen Investment Services, Inc. from 2000 to 2004 and the head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.


32 Wells Fargo Advantage VT Small Cap Growth Fund		Other Information (Unaudited)


1.		The Statement of Additional Information includes additional information about the Fund’s Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the Fund’s Web site at www.wellsfargo.com/advantagefunds.


List of Abbreviations		Wells Fargo Advantage VT Small Cap Growth Fund 33

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


ABAG	—	Association of Bay Area Governments
ADR	—	American Depositary Receipt
ADS	—	American Depository Shares
AMBAC	—	American Municipal Bond Assurance Corporation
AMT	—	Alternative Minimum Tax
ARM	—	Adjustable Rate Mortgages
AUD	—	Australian Dollar
BART	—	Bay Area Rapid Transit
BRL	—	Brazil Real
CAD	—	Canadian Dollar
CDA	—	Community Development Authority
CDO	—	Collateralized Debt Obligation
CDSC	—	Contingent Deferred Sales Charge
CGIC	—	Capital Guaranty Insurance Company
CGY	—	Capital Guaranty Corporation
CHF	—	Swiss Franc
CIFG	—	CDC (Caisse des Dépôts et Consignations) IXIS Financial Guarantee
COP	—	Certificate of Participation
CP	—	Commercial Paper
CTF	—	Common Trust Fund
DEM	—	Deutsche Mark
DKK	—	Danish Krone
DW&P	—	Department of Water & Power
DWR	—	Department of Water Resources
ECFA	—	Educational & Cultural Facilities Authority
EDFA	—	Economic Development Finance Authority
ETET	—	Eagle Tax-Exempt Trust
ETF	—	Exchange-Traded Fund
EUR	—	Euro
FFCB	—	Federal Farm Credit Bank
FGIC	—	Financial Guaranty Insurance Corporation
FHA	—	Federal Housing Authority
FHAG	—	Federal Housing Agency
FHLB	—	Federal Home Loan Bank
FHLMC	—	Federal Home Loan Mortgage Corporation
FNMA	—	Federal National Mortgage Association
FRF	—	French Franc
FSA	—	Farm Service Agency
GBP	—	Great British Pound
GDR	—	Global Depositary Receipt
GNMA	—	Government National Mortgage Association
GO	—	General Obligation
HCFR	—	Healthcare Facilities Revenue
HEFA	—	Health & Educational Facilities Authority
HEFAR	—	Higher Education Facilities Authority Revenue
HFA	—	Housing Finance Authority
HFFA	—	Health Facilities Financing Authority
HKD	—	Hong Kong Dollar
HUD	—	Housing & Urban Development


HUF	—	Hungarian Forint
IDA	—	Industrial Development Authority
IDAG	—	Industrial Development Agency
IDR	—	Industrial Development Revenue
IEP	—	Irish Pound
JPY	—	Japanese Yen
KRW	—	Republic of Korea Won
LIBOR	—	London Interbank Offered Rate
LLC	—	Limited Liability Company
LLP	—	Limited Liability Partnership
LOC	—	Letter of Credit
LP	—	Limited Partnership
MBIA	—	Municipal Bond Insurance Association
MFHR	—	Multi-Family Housing Revenue
MFMR	—	Multi-Family Mortgage Revenue
MMD	—	Municipal Market Data
MTN	—	Medium Term Note
MUD	—	Municipal Utility District
MXN	—	Mexican Peso
MYR	—	Malaysian Ringgit
NATL-RE	—	National Public Finance Guarantee Corporation
NLG	—	Netherlands Guilder
NOK	—	Norwegian Krone
NZD	—	New Zealand Dollar
PCFA	—	Pollution Control Finance Authority
PCR	—	Pollution Control Revenue
PFA	—	Public Finance Authority
PFFA	—	Public Facilities Financing Authority
plc	—	Public Limited Company
PLN	—	Polish Zloty
PSFG	—	Public School Fund Guaranty
R&D	—	Research & Development
RDA	—	Redevelopment Authority
RDFA	—	Redevelopment Finance Authority
REITS	—	Real Estate Investment Trusts
SEK	—	Swedish Krona
SFHR	—	Single Family Housing Revenue
SFMR	—	Single Family Mortgage Revenue
SGD	—	Singapore Dollar
SKK	—	Slovakian Koruna
SLMA	—	Student Loan Marketing Association
SPDR	—	Standard & Poor’s Depositary Receipts
STIT	—	Short-Term Investment Trust
TBA	—	To Be Announced
TRAN	—	Tax Revenue Anticipation Notes
TRY	—	Turkish Lira
USD	—	United States Dollar
XLCA	—	XL Capital Assurance
ZAR	—	South African Rand

This page is intentionally left blank.

More information about Wells Fargo Advantage Funds is available free upon request. To obtain literature, please write, e-mail, visit the Funds’ Web site, or call:

Wells Fargo Advantage Funds
P.O. Box 8266
Boston, MA 02266-8266
E-mail: wfaf@wellsfargo.com

Web site: www.wellsfargo.com/advantagefunds
Individual Investors: 1-800-222-8222
Retail Investment Professionals: 1-888-877-9275
Institutional Investment Professionals: 1-866-765-0778

Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Advantage Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the Funds. The Funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA/SIPC, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE


^© 2011 Wells Fargo Funds Management, LLC. All rights reserved.	www.wellsfargo.com/advantagefunds	200919 02-11
		AVT7/AR153 12-10

WELLS FARGO ADVANTAGE VARIABLE TRUST FUNDS


	•		Wells Fargo Advantage VT Small Cap Value Fund

			(formerly Wells Fargo Advantage VT Small/Mid Cap Value Fund)

Reduce clutter. Save trees.


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
Statements of Changes in Net Assets			19
Financial Highlights			20
Notes to Financial Statements			22
Report of Independent Registered Public Accounting Firm			28
Other Information			29
List of Abbreviations			33

NOT FDIC INSURED • INSURED • NO BANK GUARENTEE • MAY LOSE VALUE


WELLS FARGO
		INVESTMENT HISTORY

1932		Keystone creates one of the first mutual fund families.

1971		Wells Fargo & Company introduces one of the first institutional index funds.

1978		Wells Fargo applies Markowitz and Sharpe’s research on Modern Portfolio Theory to introduce one of the industry’s first Tactical Asset Allocation (TAA) models in institutional separately managed accounts.

1984		Wells Fargo Stagecoach Funds launches its first asset allocation fund.

1989		The Tactical Asset Allocation (TAA) Model is first applied to Wells Fargo’s asset allocation mutual funds.

1994		Wells Fargo introduces the LifePath Funds, one of the first suites of target date funds (now the Wells Fargo *Advantage Dow Jones Target Date Funds*^SM).

1996		Evergreen Investments and Keystone Funds merge.

1997		Wells Fargo launches Wells Fargo *Advantage WealthBuilder Portfolios*^SM, a fund-of-funds suite of products that includes the use of quantitative models to shift assets among investment styles.

1999		Norwest Advantage Funds and Stagecoach Funds are reorganized into Wells Fargo Funds after the merger of Norwest and Wells Fargo.

2002		Evergreen Retail and Evergreen Institutional companies form the umbrella asset management company, Evergreen Investments.

2005		The integration of Strong Funds with Wells Fargo Funds creates Wells Fargo *Advantage Funds,* resulting in one of the top 20 mutual fund companies in the United States.

2006		*Wells Fargo Advantage Funds* relaunches the target date product line as Wells Fargo Advantage Dow Jones *Target Date Funds.*

2010		The mergers and reorganizations of Evergreen and Wells Fargo Advantage mutual funds are completed, unifying the families under the brand of *Wells Fargo Advantage Funds.*

Wells Fargo Advantage Funds^®

Strength

Expertise

Partnership

NOT FDIC INSURED • INSURED • NO BANK GUARENTEE • MAY LOSE VALUE

Not part of the annual report.

Wells Fargo Advantage Funds offers more than 120 mutual funds across a wide range of asset classes, representing over $236 billion in assets under management, as of December 31, 2010.


Equity Funds
Asia Pacific Fund	Enterprise Fund^†	Opportunity Fund^†
C&B Large Cap Value Fund	Equity Value Fund	Precious Metals Fund
C&B Mid Cap Value Fund	Global Opportunities Fund	Premier Large Company Growth Fund
Capital Growth Fund	Growth Fund	Small Cap Growth Fund
Classic Value Fund	Growth Opportunities Fund	Small Cap Opportunities Fund
Common Stock Fund	Health Care Fund	Small Cap Value Fund
Core Equity Fund	Index Fund	Small Company Growth Fund
Disciplined Global Equity Fund	International Equity Fund	Small Company Value Fund
Disciplined U.S. Core Fund	International Value Fund	Small/Mid Cap Core Fund
Disciplined Value Fund	Intrinsic Small Cap Value Fund	Small/Mid Cap Value Fund
Discovery Fund^†	Intrinsic Value Fund	Social Sustainability Fund^†
Diversified Equity Fund	Intrinsic World Equity Fund	Special Mid Cap Value Fund
Diversified International Fund	Large Cap Core Fund	Special Small Cap Value Fund
Diversified Small Cap Fund	Large Cap Growth Fund	Specialized Technology Fund
Emerging Growth Fund	Large Company Value Fund	Strategic Large Cap Growth Fund
Emerging Markets Equity Fund	Mid Cap Growth Fund	Traditional Small Cap Growth Fund
Endeavor Select Fund^†	Omega Growth Fund	Utility and Telecommunications Fund

Bond Funds
Adjustable Rate Government Fund	Inflation-Protected Bond Fund	Short-Term Bond Fund
California Limited-Term Tax-Free Fund	Intermediate Tax/AMT-Free Fund	Short-Term High Yield Bond Fund
California Tax-Free Fund	International Bond Fund	Short-Term Municipal Bond Fund
Colorado Tax-Free Fund	Minnesota Tax-Free Fund	Strategic Municipal Bond Fund
Government Securities Fund	Municipal Bond Fund	Total Return Bond Fund
High Income Fund	North Carolina Tax-Free Fund	Ultra Short-Term Income Fund
High Yield Bond Fund	Pennsylvania Tax-Free Fund	Ultra Short-Term Municipal Income Fund
Income Plus Fund	Short Duration Government Bond Fund	Wisconsin Tax-Free Fund

Asset Allocation Funds
Asset Allocation Fund	WealthBuilder Equity Portfolio^†	Target 2020 Fund^†
Conservative Allocation Fund	WealthBuilder Growth Allocation Portfolio^†	Target 2025 Fund^†
Diversified Capital Builder Fund	WealthBuilder Growth Balanced Portfolio^†	Target 2030 Fund^†
Diversified Income Builder Fund	WealthBuilder Moderate Balanced Portfolio^†	Target 2035 Fund^†
Growth Balanced Fund	WealthBuilder Tactical Equity Portfolio^†	Target 2040 Fund^†
Index Asset Allocation Fund	Target Today Fund^†	Target 2045 Fund^†
Moderate Balanced Fund	Target 2010 Fund^†	Target 2050 Fund^†
WealthBuilder Conservative Allocation Portfolio^†	Target 2015 Fund^†

Money Market Funds
100% Treasury Money Market Fund	Minnesota Money Market Fund	New Jersey Municipal Money Market Fund
California Municipal Money Market Fund	Money Market Fund	New York Municipal Money Market Fund
Cash Investment Money Market Fund	Municipal Cash Management Money Market Fund	Pennsylvania Municipal Money Market Fund
Government Money Market Fund	Municipal Money Market Fund	Prime Investment Money Market Fund
Heritage Money Market Fund^†	National Tax-Free Money Market Fund	Treasury Plus Money Market Fund

Variable Trust Funds¹
VT Core Equity Fund	VT Intrinsic Value Fund	VT Small Cap Value Fund
VT Discovery Fund^†	VT Omega Growth Fund	VT Total Return Bond Fund
VT Index Asset Allocation Fund	VT Opportunity Fund^†
VT International Equity Fund	VT Small Cap Growth Fund


1.		The Variable Trust Funds are generally available only through insurance company variable contracts.

†		In this report, the Wells Fargo Advantage Discovery Fund^SM, Wells Fargo Advantage Endeavor Select Fund^SM, Wells Fargo Advantage Enterprise Fund^SM, Wells Fargo Advantage Opportunity Fund^SM, Wells Fargo Advantage Social Sustainability Fund^SM, Wells Fargo Advantage WealthBuilder Conservative Allocation Portfolio^SM, Wells Fargo Advantage WealthBuilder Equity Portfolio^SM, Wells Fargo Advantage WealthBuilder Growth Allocation Portfolio^SM, Wells Fargo Advantage WealthBuilder Growth Balanced Portfolio^SM, Wells Fargo Advantage WealthBuilder Moderate Balanced Portfolio^SM, Wells Fargo Advantage WealthBuilder Tactical Equity Portfolio^SM, Wells Fargo Advantage Dow Jones Target Today Fund^SM, Wells Fargo Advantage Dow Jones Target 2010 Fund^SM, Wells Fargo Advantage Dow Jones Target 2015 Fund^SM, Wells Fargo Advantage Dow Jones Target 2020 Fund^SM, Wells Fargo Advantage Dow Jones Target 2025 Fund^SM, Wells Fargo Advantage Dow Jones Target 2030 Fund^SM, Wells Fargo Advantage Dow Jones Target 2035 Fund^SM, Wells Fargo Advantage Dow Jones Target 2040 Fund^SM, Wells Fargo Advantage Dow Jones Target 2045 Fund^SM, Wells Fargo Advantage Dow Jones Target 2050 Fund^SM, Wells Fargo Advantage Heritage Money Market Fund^SM, Wells Fargo Advantage VT Discovery Fund^SM, and Wells Fargo Advantage VT Opportunity Fund^SMare referred to as the Discovery Fund, Endeavor Select Fund, Enterprise Fund, Opportunity Fund, Social Sustainability Fund, WealthBuilder Conservative Allocation Portfolio, WealthBuilder Equity Portfolio, WealthBuilder Growth Allocation Portfolio, WealthBuilder Growth Balanced Portfolio, WealthBuilder Moderate Balanced Portfolio, WealthBuilder Tactical Equity Portfolio, Target Today Fund, Target 2010 Fund, Target 2015 Fund, Target 2020 Fund, Target 2025 Fund, Target 2030 Fund, Target 2035 Fund, Target 2040 Fund, Target 2045 Fund, Target 2050 Fund, Heritage Money Market Fund, VT Discovery Fund, and VT Opportunity Fund, respectively.

Not part of the annual report.



2 Wells Fargo Advantage VT Small Cap Value Fund		Letter to Shareholders

Karla M. Rubusch,
President
Wells Fargo Advantage Funds

The equity markets delivered strong full-year returns against the backdrop of a strengthening economy.

Dear Valued Shareholder:

We are pleased to provide you with this annual report for the Wells Fargo Advantage VT Small Cap Value Fund for the 12 months that ended December 31, 2010. The equity markets delivered strong full-year returns against the backdrop of a strengthening economy. However, the year was not without its share of macroeconomic challenges and market volatility, once again highlighting the value of a sound, well-diversified investment strategy. As always, we believe that such a strategy can enable investors to balance risks and opportunities as they pursue long-term financial goals in a dynamic market environment.

The economic recovery stayed on track.

Jobs and housing remained troublesome.

The Fed continued to do its part.



Letter to Shareholders		Wells Fargo Advantage VT Small Cap Value Fund 3

2010 was another solid year for equities.

Investors should keep a long-term perspective.

Along with more upbeat economic data, better-than-expected corporate earnings power played a role in driving stock prices higher.



4 Wells Fargo Advantage VT Small Cap Value Fund		Letter to Shareholders

Sincerely,

Karla M. Rabusch
President
Wells Fargo Advantage Funds

This page is intentionally left blank.



6 Wells Fargo Advantage VT Small Cap Value Fund		Performance Highlights (Unaudited)

Wells Fargo Advantage VT Small Cap Value Fund

INVESTMENT OBJECTIVE

The Fund seeks long-term capital appreciation.

INVESTMENT ADVISER

Wells Fargo Funds Management, LLC

SUB-ADVISER

Wells Capital Management Incorporated

PORTFOLIO MANAGER

I. Charles Rinaldi

FUND INCEPTION

October 10, 1997

PERFORMANCE SUMMARY


12 MONTH TOTAL RETURN AS OF DECEMBER 31, 2010

Class 2	17.25	%
Russell 2500^® Value Index¹	24.82	%

The advisor has committed, through April 30, 2011, to waive fees and/or reimburse expenses to maintain the contractual expense cap at 1.14% for the Class 2 shares, excluding acquired fund fees and certain other expenses. Without these reductions, the Fund’s returns would have been lower. The Fund’s net expense ratio is 1.15% for the Class 2 shares. The Fund’s gross expense ratio is 2.57% for the Class 2 shares.

1.		The Russell 2500^® Value Index measures the performance of those Russell 2500 companies with lower price-to-book ratios and lower forecasted growth values. You cannot invest directly in an index.

2.		The chart compares the performance of the Wells Fargo Advantage VT Small Cap Value Fund Class 2 for the most recent ten years of the Fund with the Russell 2500 Value Index. The chart assumes a hypothetical $10,000 investment and reflects all operating expenses of the Fund.


Performance Highlights (Unaudited)		Wells Fargo Advantage VT Small Cap Value Fund 7

Wells Fargo Advantage VT Small Cap Value Fund (continued)

MANAGER’S DISCUSSION

Fund highlights

•		The Fund underperformed its benchmark for the 12-month period due to weak stock selection in the consumer discretionary, energy, and materials sectors.

•		While the Fund’s overweight to precious metals companies aided relative results, key holdings in the sector underperformed their peers.

•		Portfolio turnover remained moderate, as we believe that the underlying fundamentals of the Fund’s key holdings are strong, despite short-term underperformance.

•		Tepid economic growth and persistently high unemployment remained key risks for the equity market.

Weak stock selection in the consumer discretionary, energy, and materials sectors resulted in the Fund’s underperformance for the period.

The 12-month period that ended December 31, 2010, marked a second consecutive year of strong gains for the equity market after the market decline in 2008. All broad-based stock market indexes logged double-digit gains for the period. The Fund ended the period with solid gains but trailed its benchmark, the Russell 2000^® Value Index. While 2010 saw plenty of back-and-forth market action, the year ended with four consecutive months of gains, fueled in part by the Federal Reserve’s announcement of a fresh round of quantitative easing.

Consumer discretionary stocks posted strong returns during the period, but the Fund’s holdings did not keep pace. The Fund was underweight to retailers, which had earnings that recovered sharply off of trough levels. Despite retailers’ outperformance, we remain skeptical of the sustainability of their earnings growth over the medium to long term. We believe that consumer deleveraging will unfold over the next several years, which does not auger well for continued strength in the group.

As the economy improved, the price of oil steadily advanced. Energy stocks followed and turned in a solid year. While we had our share of winners, the Fund’s key holding, InterOil Corporation, failed to keep pace after a terrific year in 2009. InterOil is an emerging exploration and production company with assets in Papua New Guinea. The company’s fundamentals improved on several key announcements, but its stock languished. During the 12-month period, the company announced a joint venture with Mitsui Group on a


TEN LARGEST EQUITY HOLDINGS³
(AS OF DECEMBER 31, 2010)
InterOil Corporation	6.94	%
Randgold Resources Limited ADR	5.31	%
Chimera Investment Corporation	3.83	%
McMoRan Exploration Company	2.81	%
Range Resources Corporation	2.30	%
Chicago Bridge and Iron Company NV	2.18	%
United Continental Holdings Incorporated	2.15	%
Agro Group International Holdings Limited	1.60	%
GEO Group Incorporated	1.56	%
Ion Geophysical Corporation	1.43	%


3.		The ten largest equity holdings are calculated based on the value of the securities divided by total investments of the Fund. Holdings are subject to change and may have changed since the date specified.


8 Wells Fargo Advantage VT Small Cap Value Fund		Performance Highlights (Unaudited)

Wells Fargo Advantage VT Small Cap Value Fund (continued)

condensate stripping plant, with Mitsui responsible for financing the entire plant. Mitsui has the option to convert its $550 million investment into a 2.5% interest in the larger liquefied natural gas (LNG) project, with an option to purchase another 2.5%. InterOil also announced an agreement with Energy World Corp. to build a two-million-ton-per-year land-based LNG plant. Final investment decisions for both projects are due in the first half of 2011, setting the stage for InterOil to define the terms with which it can monetize the resources found at the Elk and Antelope natural gas fields. The company has a strong balance sheet and is on the path to monetizing its resources. We believe that the stock will reflect the positive fundamentals in the upcoming year.

With higher gold prices, shares of gold-mining companies generally performed well. The Fund’s overweight to the group aided relative results but was more than offset by weakness in key holding Randgold Resources. Weakness in the West African miner was in part attributable to news related to its Tongon mine in Ivory Coast. Tongon should be a key contributor to the company’s production growth over the next several years. The mine is progressing toward final completion but has yet to reach full production; it is currently operating on a curtailed basis due to delays related to materials. While the political unrest in Ivory Coast hasn’t resulted in security issues at or near the mine, it has affected production schedules and will cause further delays. We believe that the company is financially strong and has multiple assets that should continue to operate. Moreover, CEO Mark Bristow, given his South African roots, seems adept at navigating the political landscape in the region. We have full confidence in Randgold’s prospects as one of the best-positioned companies in the sector.

We remain cautiously optimistic and focused on the long term.

Over the past 12 months, investors’ risk appetite fluctuated based upon macroeconomic events, resulting in seesawing markets. In such environments, we believe it’s prudent to continue to emphasize diversification and to maintain a long-term focus. Looking ahead, we believe there is reason to be optimistic, as corporate profits have rebounded sharply off of depressed levels. However, persistently high unemployment remains a key deterrent to long-term economic recovery.

Our investment process is designed to capture a wide range of investment opportunities. We will typically construct the portfolio using a broad mix of stocks with varying characteristics in an attempt to withstand shifts in the market. We believe that this broad approach to small-cap investing should continue to serve our clients well.


4.		Sector distribution is subject to change and is calculated based on the total common stock investments of the Fund.


Performance Highlights (Unaudited)		Wells Fargo Advantage VT Small Cap Value Fund 9

Wells Fargo Advantage VT Small Cap Value Fund (continued)

AVERAGE ANNUAL TOTAL RETURN (%) (AS OF DECEMBER 31, 2010)⁵


											Expense Ratios⁶
	Inception Date		6 Months*		1 Year		5 Year		10 Year		Gross			Net⁷
Class 1		7/16/2010		23.37		17.38		3.68		6.08		2.29	%		0.90	%
Class 2		10/10/1997		23.23		17.25		3.66		6.07		2.57	%		1.15	%
Russell 2500^® Value Index¹				26.81		24.82		3.85		8.53


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

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


5.		Performance shown for Class 1 shares prior to its inception reflects the performance of Class 2 shares, and includes the higher expenses applicable to Class 2 shares. If these expenses had not been included, returns would be higher. Effective May 1, 2010, the Fund name changed from the Wells Fargo Advantage VT Small/Mid Cap Value Fund to the Wells Fargo Advantage VT Small Cap Value Fund.

6.		Reflects the expense ratio as stated in the July 19, 2010 prospectuses.

7.		The investment adviser has contractually committed through July 18, 2013 to waive fees and/or reimburse expenses to maintain the Fund’s contractual expense ratio for Class 1 shares at 0.89%, and 1.14% through April 30, 2011 for Class 2 shares, excluding acquired fund fees and certain other expenses. Without these reductions, the Fund’s returns would have been lower.


10 Wells Fargo Advantage VT Small Cap Value Fund		Fund Expenses (Unaudited)

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 July 1, 2010 to December 31, 2010.

Actual expenses

Hypothetical example for comparison purposes

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), redemption fees, exchange fees or separate account fees assessed by participating insurance companies. 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		Ending		Expenses
	Account Value		Account Value		Paid During		Net Annual
	07-01-2010		12-31-2010		the Period¹		Expense Ratio
Class 1
Actual	$	1,000.00	$	1,233.68	$	5.07		0.89	%
Hypothetical (5% return before expenses)
	$	1,000.00	$	1,020.94	$	4.58		0.89	%
Class 2
Actual	$	1,000.00	$	1,232.32	$	6.48		1.14	%
Hypothetical (5% return before expenses)
	$	1,000.00	$	1,019.67	$	5.87		1.14	%


1.		Expenses are equal to the Fund’s annualized expenses ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one-half year period).


Portfolio of Investments—December 31, 2010		Wells Fargo Advantage VT Small Cap Value Fund 11


Shares		Security Name	Value
Common Stocks: 91.14%

Consumer Discretionary: 4.99%

Diversified Consumer Services: 0.41%
	24,800	Cambium Learning Group Incorporated†	$	85,312
	45,100	Corinthian Colleges Incorporated†		234,971

				320,283


Hotels, Restaurants & Leisure: 0.87%
	34,900	Scientific Games Corporation Class A†		347,604
	72,000	Wendy’s Arby’s Group Incorporated		332,640

				680,244


Household Durables: 0.93%
	6,525	Cavco Industries Incorporated†		304,652
	9,100	KB Home Incorporated		122,761
	11,405	Skyline Corporation		297,442

				724,855


Internet & Catalog Retail: 0.09%
	38,950	dELiAs Incorporated†*		67,773


Media: 0.63%
	13,300	Discovery Communications Incorporated Class A†		487,977


Multiline Retail: 0.20%
	14,600	Saks Incorporated†		156,220


Specialty Retail: 1.86%
	34,800	Collective Brands Incorporated†		734,280
	7,400	Foot Locker Incorporated		145,188
	5,200	rue21 Incorporated†		152,412
	26,795	Talbots Incorporated†		228,293
	5,600	Vitamin Shoppe Incorporated†		188,384

				1,448,557


Consumer Staples: 1.83%

Food Products: 1.13%
	46,900	Del Monte Foods Company		881,720


Personal Products: 0.70%
	45,700	Prestige Brands Holdings Incorporated†		546,115


Energy: 24.65%

Energy Equipment & Services: 8.87%
	137,200	Global Industries Limited†		950,796
	22,770	Helix Energy Solutions Group Incorporated†		276,428
	17,700	Helmerich & Payne Incorporated		858,096
	129,500	ION Geophysical Corporation†		1,098,160
	53,200	Key Energy Services Incorporated†		690,536
	138,940	Newpark Resources Incorporated†		855,870
	11,400	Oceaneering International Incorporated†		839,382
	43,400	Parker Drilling Company†		198,338
	15,500	PHI Incorporated (non-voting)†		292,020
	2,700	PHI Incorporated (voting)†		57,051
	8,200	Pride International Incorporated†		270,600
	67,750	Vantage Drilling Company†		137,533
	38,600	Willbros Group Incorporated†		379,052

				6,903,862


12 Wells Fargo Advantage VT Small Cap Value Fund		Portfolio of Investments—December 31, 2010


Shares		Security Name	Value
Oil, Gas & Consumable Fuels: 15.78%
	19,800	Forest Oil Corporation†	$	751,806
	73,720	InterOil Corporation†		5,313,000
	125,700	McMoRan Exploration Company†		2,154,498
	7,300	Newfield Exploration Company†		526,403
	3,100	Noble Energy Incorporated		266,848
	18,100	Petrohawk Energy Corporation†		330,325
	15,300	PetroQuest Energy Incorporated†		115,209
	4,200	Pioneer Natural Resources Company		364,644
	5,530	Plains Exploration & Product Company†		177,734
	39,100	Range Resources Corporation		1,758,718
	42,640	Trilogy Energy Corporation		527,479

				12,286,664


Financials: 17.44%

Commercial Banks: 4.61%
	5,600	Ameris Bancorp		59,024
	16,015	Associated Banc-Corporation		242,627
	21,400	Bancorp Incorporated†		217,638
	31,133	Center Financial Corporation†		235,988
	24,500	CenterState Banks Incorporated		194,040
	8,400	City National Corporation		515,424
	22,021	First Horizon National Corporation†		259,413
	8,800	IBERIABANK Corporation		520,344
	18,500	Park Sterling Corporation†		113,960
	6,680	Sandy Spring Bancorp Incorporated		123,112
	5,400	SVB Financial Group†		286,470
	15,865	Western Liberty Bancorp†		86,306
	44,100	Whitney Holding Corporation		624,015
	26,400	Wilmington Trust Corporation		114,576

				3,592,937


Insurance: 2.89%
	32,600	Argo Group International Holdings Limited		1,220,870
	33,500	Hilltop Holdings Incorporated†		332,320
	10,300	Mercury General Corporation		443,003
	16,700	OneBeacon Insurance Group Limited		253,172

				2,249,365


Real Estate Investment Trusts (REIT): 9.57%
	69,300	Anworth Mortgage Asset Corporation		485,100
	8,000	Armour Residential Incorporated		62,480
	79,100	Capstead Mortgage Corporation		995,869
	712,400	Chimera Investment Corporation		2,927,964
	9,160	Crexus Investment Corporation		119,996
	18,600	Hatteras Financial Corporation		563,022
	33,055	Invesco Mortgage Capital		721,921
	99,240	MFA Mortgage Investments Incorporated		809,798
	20,100	Redwood Trust Incorporated		300,093
	13,870	Sun Communities Incorporated		462,010

				7,448,253


Thrifts & Mortgage Finance: 0.37%
	15,000	First Niagara Financial Group Incorporated		209,700
	6,900	Northwest Bancshares Incorporated		81,144

				290,844


Portfolio of Investments—December 31, 2010		Wells Fargo Advantage VT Small Cap Value Fund 13


Shares		Security Name	Value
Health Care: 6.89%

Biotechnology: 0.46%
	5,000	Gen-Probe Incorporated†	$	291,750
	10,800	Infinity Pharmaceuticals Incorporated†		64,044

				355,794


Health Care Equipment & Supplies: 2.18%
	15,950	Hologic Incorporated†		300,179
	103,700	Orasure Technologies Incorporated†		596,275
	8,400	Steris Corporation		306,264
	23,900	Symmetry Medical Incorporated†		221,075
	3,900	Varian Medical Systems Incorporated†		270,192

				1,693,985


Health Care Providers & Services: 2.71%
	18,100	Amedisys Incorporated†		606,350
	6,000	Community Health Systems Incorporated†		224,220
	42,800	Cross Country Healthcare Incorporated†		362,516
	25,000	Gentiva Health Services Incorporated†		665,000
	10,500	Healthways Incorporated†		117,180
	5,200	Omnicare Incorporated		132,028

				2,107,294


Health Care Technology: 0.18%
	6,000	Medidata Solutions Incorporated†		143,280


Life Sciences Tools & Services: 1.36%
	29,600	Accelrys Incorporated†		245,680
	4,500	Life Technologies Corporation†		249,750
	26,600	Nordion Incorporated†		302,974
	12,400	Parexel International Corporation†		263,252

				1,061,656


Industrials: 13.03%

Aerospace & Defense: 0.16%
	36,800	Ascent Solar Technologies Incorporated†		123,648


Airlines: 4.59%
	14,100	Alaska Air Group Incorporated†		799,329
	73,600	Delta Air Lines Incorporated†		927,360
	6,500	Lan Airlines SA ADR		200,070
	69,100	United Continental Holdings Incorporated†		1,645,962

				3,572,721


Building Products: 0.22%
	1,850	Webco Industries Incorporated(a)†		170,200


Commercial Services & Supplies: 4.13%
	32,300	ABM Industries Incorporated		849,490
	54,160	ACCO Brands Corporation†		461,443
	48,500	GEO Group Incorporated†		1,196,010
	20,900	Healthcare Services Group		340,044
	8,600	Kforce Incorporated†		139,148
	6,800	Verisk Analytics Incorporated Class A†		231,744

				3,217,879


14 Wells Fargo Advantage VT Small Cap Value Fund		Portfolio of Investments—December 31, 2010


Shares		Security Name	Value
Construction & Engineering: 2.33%
	50,800	Chicago Bridge & Iron Company NV†	$	1,671,320
	14,800	Primoris Services Corporation		141,191

				1,812,511


Electrical Equipment: 0.87%
	34,400	GrafTech International Limited†		682,496


Marine: 0.03%
	10,100	Star Bulk Carriers Corporation		26,967


Professional Services: 0.39%
	46,558	Hill International Incorporated†		301,230


Road & Rail: 0.31%
	23,500	Covenant Transport Incorporated Class A†		228,420
	2,924	YRC Worldwide Incorporated†		10,877

				239,297


Information Technology: 6.71%

Communications Equipment: 1.68%
	46,000	Brocade Communications Systems Incorporated†		243,340
	38,300	China GrenTech Corporation Limited ADR†		121,794
	51,200	Harmonic Incorporated†		438,784
	283,000	MRV Communications Incorporated†		506,570
				1,310,488


Computers & Peripherals: 1.66%
	70,000	Cray Incorporated†		500,500
	62,400	Intermec Incorporated†		789,984

				1,290,484


Electronic Equipment & Instruments: 3.28%
	12,935	Cognex Corporation		380,548
	17,500	Coherent Incorporated†		789,950
	20,200	OSI Systems Incorporated†		734,472
	63,500	Power One Incorporated†		647,700

				2,552,670


Office Electronics: 0.09%
	1,800	Zebra Technologies Corporation†		68,382


Materials: 14.98%

Chemicals: 0.52%
	26,800	Calgon Carbon Corporation†		405,216


Containers & Packaging: 0.24%
	161,600	Intertape Polymer Group Incorporated†		185,840


Metals & Mining: 13.86%
	12,900	Agnico-Eagle Mines Limited		989,430
	21,100	Carpenter Technology Corporation		849,064
	53,000	Eldorado Gold Corporation		984,210
	72,500	Great Basin Gold Limited†		214,600


Portfolio of Investments—December 31, 2010		Wells Fargo Advantage VT Small Cap Value Fund 15


Shares		Security Name	Value
Metals & Mining (continued)
	11,200	Harry Winston Diamond Corporation†	$	131,040
	58,200	Jaguar Mining Incorporated†		414,966
	40,300	Petaquilla Minerals Limited†		42,678
	49,400	Randgold Resources Limited ADR		4,067,102
	14,840	Royal Gold Incorporated		810,709
	3,469	Sandstorm Metals & Energy Limited†		4,012
	210,240	Sandstorm Resources Limited†		169,156
	14,600	Silver Standard Resources Incorporated†		412,012
	45,900	Steel Dynamics Incorporated		839,970
	7,700	United States Steel Corporation		449,834
	32,500	Yamana Gold Incorporated		416,000

				10,794,783


Paper & Forest Products: 0.36%
	32,100	Wausau Paper Corporation		276,381


Telecommunication Services: 0.62%

Diversified Telecommunication Services: 0.62%
	173,000	Cincinnati Bell Incorporated†		484,400


Total Common Stocks (Cost $58,411,658)				70,963,271


Investment Companies: 1.52%
	12,100	KBW Regional Banking ETF		320,045
	13,996	Market Vectors Gold Miners ETF		860,334

Total Investment Companies (Cost $974,088)				1,180,379

Expiration Date

Warrants: 0.00%

Financials: 0.00%

Real Estate Investment Trusts (REITs): 0.00%

1,000

Armour Residential Incorporated†

11/07/2011

Total Warrants (Cost $160)


					Yield
Short-Term Investments: 5.64%

Investment Companies: 5.64%
	4,395,721	Wells Fargo Advantage Cash Investment Money Market Fund(l)(u)				0.14	%		4,395,721


Total Short-Term Investments (Cost $4,395,721)									4,395,721


Total Investments in Securities (Cost $63,781,627)*			98.30	%					76,539,446
Other Assets and Liabilities, Net			1.70						1,321,006


Total Net Assets			100.00	%				$	77,860,452


16 Wells Fargo Advantage VT Small Cap Value Fund		Portfolio of Investments—June 30, 2010


†		Non-income earning securities.

(a)		Security is fair valued by the Management Valuation Team, and in certain instances by the Board of Trustees, in accordance with procedures approved by the

		Board of Trustees.

(l)		Investment in an affiliate.

(u)		Rate shown is the 7-day annualized yield at period end.

*		Cost for federal income tax purposes is $64,279,714 and net unrealized appreciation (depreciation) consists of:


Gross unrealized appreciation	$	14,006,727
Gross unrealized depreciation		(1,746,995	)

Net unrealized appreciation	$	12,259,732

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


Statement of Assets and Liabilities—December 31, 2010		Wells Fargo Advantage VT Small Cap Value Fund 17


Assets
Investments
In unaffiliated securities, at value	$	72,143,725
In affiliated securities, at value		4,395,721

Total investments, at value (see cost below)		76,539,446
Foreign currency, at value (see cost below)		66,718
Receivable for investments sold		1,189,751
Receivable for Fund shares sold		9,570
Receivable for dividends		276,018
Prepaid expenses and other assets		1,279

Total assets		78,082,782


Liabilities
Payable for investments purchased		106,241
Payable for Fund shares redeemed		34,332
Investment advisory fee payable		47,827
Distribution fees payable		4,694
Due to other related parties		9,362
Professional fees payable		17,742
Accrued expenses and other liabilities		2,132

Total liabilities		222,330

Total net assets	$	77,860,452


NET ASSETS CONSIST OF
Paid-in capital	$	86,943,041
Undistributed net investment income		499,936
Accumulated net realized losses on investments		(22,341,472	)
Net unrealized gains on investments		12,758,947

Total net assets	$	77,860,452


COMPUTATION OF NET ASSET VALUE PER SHARE¹
Net assets — Class 1	$	58,254,650
Shares outstanding — Class 1		6,441,392
Net asset value per share — Class 1	$	9.04
Net assets — Class 2	$	19,605,802
Shares outstanding — Class 2		2,170,293
Net asset value per share — Class 2	$	9.03


Total investments, at cost	$	63,781,627

Foreign currency, at cost	$	65,590


1.		The Fund has an unlimited number of authorized shares.

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


18 Wells Fargo Advantage VT Small Cap Value Fund		Statement of Operations—For the Year Ended December 31, 2010


Investment income
Dividends†	$	869,313
Income from affiliated securities		4,504
Securities lending income, net		40,130

Total investment income		913,947


Expenses
Investment advisory fee		301,451
Administration fees
Fund level		26,590
Class 1*		20,308
Class 2**		7,124
Distribution fees
Class 2**		37,020
Custody and accounting fees		13,883
Professional fees		34,913
Shareholder report expenses		15,801
Trustees’ fees and expenses		10,230
Other fees and expenses		2,894

Total expenses		470,214
Less: Fee waivers and/or expense reimbursements		(75,776	)

Net expenses		394,438

Net investment income		519,509


NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS

Net realized gains on unaffiliated securities		1,492,997
Net change in unrealized gains (losses) on unaffiliated securities		12,781,203

Net realized and unrealized gains (losses) on investments		14,274,200

Net increase in net assets resulting from operations	$	14,793,709


† Net of foreign withholding taxes of	$	3,343


*		Class commenced operations on July 16, 2010.

**		After the close of business on July 16, 2010, existing shares of the Fund were renamed Class 2 shares.

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


Statements of Changes in Net Assets		Wells Fargo Advantage VT Small Cap Value Fund 19


	Year Ended						Year Ended
	December 31, 2010						December 31, 2009

Operations
Net investment income				$	519,509					$	124,103
Net realized gains (losses) on investments					1,492,997						(2,340,447	)
Net change in unrealized gains (losses) on investments					12,781,203						6,490,502

Net increase in net assets resulting from operations					14,793,709						4,274,158


Distributions to shareholders from
Net investment income
Class 1*					0					NA
Class 2**					(154,516	)					(108,823	)

Total distributions to shareholders					(154,516	)					(108,823	)


	Shares						Shares
Capital share transactions
Proceeds from shares sold
Class 1*		219,798			1,707,233		NA			NA
Class 2**		301,633			2,296,529			557,400			3,582,603

					4,003,762						3,582,603

Reinvestment of distributions
Class 1*		0			0		NA			NA
Class 2**		21,138			154,516			18,570			108,823

					154,516						108,823

Payment for shares redeemed
Class 1*		(811,923	)		(6,559,421	)	NA			NA
Class 2**		(897,225	)		(7,075,687	)		(642,164	)		(3,767,477	)

					(13,635,108	)					(3,767,477	)

Net asset value of shares issued in acquisition
Class 1*		7,033,517			51,770,209		NA			NA
Class 2**		1,210,549			8,910,235			0			0

					60,680,444					NA

Net increase (decrease) in net assets resulting from
capital share transactions					51,203,614						(76,051	)

Total increase in net assets					65,842,807						4,089,284

Net assets
Beginning of period					12,017,645						7,928,361

End of period				$	77,860,452					$	12,017,645

Undistributed net investment income				$	499,936					$	111,069


*		Class commenced operations on July 16, 2010.

**		After the close of business on July 16, 2010, existing shares of the Fund were renamed Class 2 shares.

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


20 Wells Fargo Advantage VT Small Cap Value Fund		Financial Highlights


	Beginning					Net Realized			Distributions
	Net Asset		Net			and Unrealized			from Net			Distributions
	Value Per		Investment			Gains (Losses)			Investment			from Net
	Share		Income (Loss)			on Investments			Income			Realized Gains

Class 1
July 16, 2010¹ to December 31, 2010	$	7.36		0.05²			1.63			0.00			0.00

Class 2⁵
January 1, 2010 to December 31, 2010	$	7.83		0.12			1.20			(0.12	)		0.00
January 1, 2009 to December 31, 2009	$	4.95		0.08			2.87			(0.07	)		0.00
January 1, 2008 to December 31, 2008	$	11.08		0.09²			(4.21	)		0.00			(2.01	)
January 1, 2007 to December 31, 2007	$	13.22		(0.04	)		0.21			0.00			(2.31	)
January 1, 2006 to December 31, 2006	$	13.66		(0.03	)		1.84			0.00			(2.25	)


1.		Class commenced operations on July 16, 2010.

2.		Calculated based upon average shares outstanding.

3.		Total return calculations would have been lower had certain expenses not been waived or reimbursed during the periods shown. Returns for periods of less than one year are not annualized.

4.		Calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. Portfolio turnover rates presented for periods of less than one year are not annualized.

5.		After the close of business on July 16, 2010, existing shares of the Fund were renamed Class 2 shares.

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


Financial Highlights		Wells Fargo Advantage VT Small Cap Value Fund 21


Ending
Net Asset		Ratio to Average Net Assets (Annualized)												Portfolio			Net Assets at
Value Per		Net Investment			Gross			Net			Total			Turnover			End of Period
Share		Income (Loss)			Expenses			Expenses			Return³			Rate⁴			(000’s omitted)

$	9.04		1.43	%		0.96	%		0.89	%		22.83	%		61	%	$	58,255

$	9.03		1.06	%		1.52	%		1.14	%		17.25	%		61	%	$	19,606
$	7.83		1.39	%		2.56	%		1.14	%		60.18	%		45	%	$	12,018
$	4.95		1.18	%		1.69	%		1.14	%		(44.55	)%		39	%	$	7,928
$	11.08		(0.31	)%		1.51	%		1.14	%		(0.32	)%		60	%	$	17,527
$	13.22		(0.23	)%		1.46	%		1.14	%		15.29	%		81	%	$	23,462


22 Wells Fargo Advantage VT Small Cap Value Fund		Notes to Financial Statements

1. ORGANIZATION

Wells Fargo Variable 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”). These financial statements report on Wells Fargo Advantage VT Small Cap Value Fund (the “Fund”) (formerly, Wells Fargo Advantage VT Small/Mid Cap Value Fund) which is a diversified series of the Trust. After the close of business on July 16, 2010, existing shares of the Fund were renamed Class 2 shares.

2. SIGNIFICANT ACCOUNTING POLICIES

Securities valuation

Investments in open-end mutual funds and non-registered investment companies are generally valued at net asset value.

The valuation techniques used by the Fund to measure fair value are consistent with the market approach, income approach and/or cost approach, where applicable, for each security type.

Security transactions and income recognition

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

Distributions to shareholders


Notes to Financial Statements		Wells Fargo Advantage VT Small Cap Value Fund 23

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


		Accumulated Net
		Realized
Undistributed Net		Losses
Investment Income		on Investments
$	25,788	$	(25,788	)

Security loans

Federal and other taxes

As of December 31, 2010, the Fund had estimated net capital loss carryforwards, which are available to offset future net realized capital gains, in the amount of $21,893,727 with $932,272 expiring in 2015, $7,675,453 expiring in 2016 and $13,286,002 expiring in 2017.

Class allocations

The separate classes of shares offered by the Fund differ principally in applicable distribution and administration fees. Shareholders of each class bear certain expenses that pertain to that particular class. All shareholders bear the common expenses of the Fund, earn income from the portfolio, and are allocated unrealized gains and losses pro rata based


24 Wells Fargo Advantage VT Small Cap Value Fund		Notes to Financial Statements

on the average daily net assets of each class, without distinction between share classes. Dividends are determined separately for each class based on income and expenses allocable to each class. Realized gains and losses are allocated to each class pro rata based upon the net assets of each class on the date realized. Differences in per share dividend rates generally result from the relative weightings of pro rata income and realized gain allocations and from differences in separate class expenses, including distribution and administration fees.

3. FAIR VALUATION MEASUREMENTS

•

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 securities are not necessarily an indication of the risk associated with investing in those securities.

As of December 31, 2010, the inputs used in valuing the Fund’s assets, which are carried at fair value, were as follows:


			Significant Other		Significant
			Observable		Unobservable
	Quoted Prices		Inputs		Inputs
Investments in Securities	(Level 1)		(Level 2)		(Level 3)		Total
Equity securities
Common stocks	$	70,793,071	$	0	$	170,200	$	70,963,271
Warrants		0		75		0		75
Investment companies		1,180,379		0		0		1,180,379
Short-term investments
Investment companies		4,395,721		0		0		4,395,721
	$	76,369,171	$	75	$	170,200	$	76,539,446

Further details on the major security types listed above can be found in the Fund’s Portfolio of Investments.

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


	Common Stocks
Balance as of December 31, 2009	$	0
Accrued discounts (premiums)		0
Realized gain (loss)		0
Change in unrealized appreciation (depreciation)		46,799
Purchases		123,401
Sales		0
Transfers into Level 3		0
Transfers out of Level 3		0
Balance as of December 31, 2010	$	170,200
Change in unrealized gains (losses) included in earnings relating to securities still held at December 31, 2010	$	46,799


Notes to Financial Statements		Wells Fargo Advantage VT Small Cap Value Fund 25

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

Investment advisory fees

Pursuant to the contract, Funds Management is paid an annual investment advisory fee starting at 0.75% and declining to 0.60% as the average daily net assets of the Fund increase. For the year ended December 31, 2010, the investment advisory fee was equivalent to an annual rate of 0.75% of the Fund’s average daily net assets.

Administration and transfer agent fees


		Administration Fees
		(% of Average
	Average Daily Net Assets	Daily Net Assets)
Fund level	First $5 billion		0.05	%
	Next $5 billion		0.04
	Over $10 billion		0.03

Class 1 and Class 2	All asset levels		0.08

Distribution fees

5. INVESTMENT PORTFOLIO TRANSACTIONS


26 Wells Fargo Advantage VT Small Cap Value Fund		Notes to Financial Statements

6. ACQUISITION

After the close of business on July 16, 2010, the Fund acquired the net assets of Evergreen VA Special Values Fund and renamed its existing shares as Class 2 shares. The purpose of the transaction was to combine two funds with similar investment objectives and strategies. Shareholders holding Class 1 and Class 2 shares of Evergreen VA Special Values Fund received Class 1 and Class 2 shares, respectively, of the Fund in the reorganization. The acquisition was accomplished by a tax-free exchange of all of the shares of Evergreen VA Special Values Fund for 8,244,066 shares of the Fund valued at $60,680,444 at an exchange ratio of 1.56 and 1.55 for Class 1 and Class 2 shares, respectively. The investment portfolio of Evergreen VA Special Value Fund with a fair value of $60,693,159, identified cost of $60,659,673 and unrealized gain of $33,486 at July 16, 2010 were the principal assets acquired by the Fund. The aggregate net assets of Evergreen VA Special Values Fund and the Fund immediately prior to the acquisition were $60,680,444 and $9,494,728, respectively. The aggregate net assets of the Fund immediately after the acquisition were $70,175,172. For financial reporting purposes, assets received and shares issued by the Fund were recorded at fair value; however, the cost basis of the investments received from Evergreen VA Special Values Fund was carried forward to align ongoing reporting of the Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.


Net investment income	$	624,969
Net realized and unrealized gains (losses) on investments	$	13,030,505
Net increase in net assets resulting from operations	$	13,655,474

Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of Evergreen VA Special Values Fund that have been included in the Fund’s Statement of Operations since July 19, 2010.

7. BANK BORROWINGS

For the year ended December 31, 2010, there were no borrowings by the Fund under the agreement.

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended December 31, 2010 and December 31, 2009 were as follows:


	Year Ended December 31,
	2010		2009
Ordinary Income	$	154,516	$	108,823


Notes to Financial Statements		Wells Fargo Advantage VT Small Cap Value Fund 27

As of December 31, 2010, the components of distributable earnings on a tax basis were as follows:


Undistributed
Ordinary		Unrealized		Capital Loss
Income		Gains		Carryforward
$	552,879	$	12,260,865	$	(21,893,727	)

9. INDEMNIFICATION


28 Wells Fargo Advantage VT Small Cap Value Fund		Report of Independent Registered Public Accounting Firm

BOARD OF TRUSTEES AND SHAREHOLDERS OF
WELLS FARGO VARIABLE TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Advantage VT Small Cap Value Fund (the “Fund”), one of the funds constituting the Wells Fargo Variable Trust, as of December 31, 2010, and the related statement of operations for the year then ended, statements of changes in net assets for each of the years in the two year period then ended, and the financial highlights for the years or periods presented. 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.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Advantage VT Small Cap Value Fund as of December 31, 2010, the results of its operations for the year then ended, changes in its net assets for each of the years in the two year period then ended, and the financial highlights for the years or periods presented, in conformity with U.S. generally accepted accounting principles.

Boston,Massachusetts
February 25, 2011


Other Information (Unaudited)		Wells Fargo Advantage VT Small Cap Value Fund 29

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-800-222-8222, visiting our Web site at www.wellsfargo.com/advantagefunds, or visiting the SEC Web site at www.sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge on the Fund’s Web site at www.wellsfargo.com/advantagefunds or by visiting the SEC Web site at www.sec.gov.

TAX INFORMATION

Pursuant to Section 854(b)(2) of the Internal Revenue Code, the Fund designates a percentage of its ordinary income dividends distributed during the year ended December 31, 2010 as qualifying for the corporate dividends-received deduction:


Dividend-Received
Deduction (% of
Ordinary Fund
Income Dividends)
	31.08	%


30 Wells Fargo Advantage VT Small Cap Value Fund		Other Information (Unaudited)

PORTFOLIO HOLDINGS INFORMATION

BOARD OF TRUSTEES

Independent Trustees


Name and	Position Held and
Year of Birth	Length of Service	Principal Occupations During Past Five Years	Other Directorships

Peter G. Gordon (Born 1942)	Trustee, since 1998; Chairman, since 2005 (Lead Trustee since 2001)	Co-Founder, Chairman, President and CEO of Crystal Geyser. Water Company. Trustee Emeritus, Colby College	Asset Allocation Trust

Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. 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. Mr. Harris is a certified public accountant.	CIGNA Corporation; Deluxe Corporation; Asset Allocation Trust

Judith M. Johnson (Born 1949)	Trustee, since 2008	Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant.	Asset Allocation Trust

Leroy Keith, Jr. (Born 1939)	Trustee, since 2010	Chairman, Bloc Global Services (development and construction), Trustee of the Evergreen Funds from 1983 to 2010. Former Managing Director, Almanac Capital Management (commodities firm), former Partner, Stonington Partners, Inc. (private equity fund), former Director, Obagi Medical Products Co. and former Director, Lincoln Educational Services.	Trustee, Virtus Fund Complex (consisting of 45 portfolios as of 12/31/10); Director, Diversapack Co. (packaging company); Asset Allocation Trust

David F. Larcker (Born 1951)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of Corporate Governance Research Program and Co-Director of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust


Other Information (Unaudited)		Wells Fargo Advantage VT Small Cap Value Fund 31


Name and	Position Held and
Year of Birth	Length of Service	Principal Occupations During Past Five Years	Other Directorship

Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor and Chair of the Department of Insurance and Risk Management, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust

Timothy J. Penny (Born 1951)	Trustee, since 1996	President and CEO of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust

Michael S. Scofield (Born 1943)	Trustee, since 2010	Currently serves on the Investment Company Institute’s Board of Governors and Executive Committee as well the Independent Director’s Counsel Board of Governors and Executive Committee. Former Chairman of the Independent Directors Counsel. Trustee of the Evergreen Funds from 1984 to 2010. Retired Attorney, Law Offices of Michael S. Scofield and former Director and Chairman, Branded Media Corporation (multi-media branding company).	Asset Allocation Trust

Donald C. Willeke (Born 1940)	Trustee, since 1996	Principal of the law firm of Willeke & Daniels. General Counsel of the Minneapolis Employees Retirement Fund from 1984 until its consolidation into the Minnesota Public Employees Retirement Association on June 30, 2010.	Asset Allocation Trust

Officers


Name and	Position Held and
Year of Birth	Length of Service	Principal Occupations During Past Five Years

Karla M. Rabusch (Born 1959)	President, since 2003	Executive Vice President of Wells Fargo Bank, N.A. and President of Wells Fargo Funds Management, LLC since 2003. Senior Vice President and Chief Administrative Officer of Wells Fargo Funds Management, LLC from 2001 to 2003.

C. David Messman (Born 1960)	Secretary, since 2000; Chief Legal Counsel, since 2003	Senior Vice President and Secretary of Wells Fargo Funds Management, LLC since 2001. Vice President and Managing Counsel of Wells Fargo Bank, N.A. since 1996.

Kasey Phillips (Born 1970)	Treasurer, since 2009	Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2006 to 2010. Treasurer of the Evergreen Funds from 2005 to 2010. Vice President and Assistant Vice President of Evergreen Investment Services, Inc. from 1999 to 2006.

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. Assistant Vice President of Evergreen Investment Services, Inc. from 2004 to 2008. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.

Jeremy DePalma (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. Vice President, Evergreen Investment Services, Inc. from 2004 to 2007. Assistant Vice President, Evergreen Investment Services, Inc. from 2000 to 2004 and the head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.


32 Wells Fargo Advantage VT Small Cap Value Fund		Other Information (Unaudited)


1.		The Statement of Additional Information includes additional information about the Fund’s Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the Fund’s Web site at www.wellsfargo.com/advantagefunds.


List of Abbreviations		Wells Fargo Advantage VT Small Cap Value Fund 33

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


ABAG	—	Association of Bay Area Governments	HUD	—	Housing & Urban Development
ADR	—	American Depositary Receipt	HUF	—	Hungarian Forint
ADS	—	American Depository Shares	IDA	—	Industrial Development Authority
AMBAC	—	American Municipal Bond Assurance Corporation	IDAG	—	Industrial Development Agency
AMT	—	Alternative Minimum Tax	IDR	—	Industrial Development Revenue
ARM	—	Adjustable Rate Mortgages	IEP	—	Irish Pound
AUD	—	Australian Dollar	JPY	—	Japanese Yen
BART	—	Bay Area Rapid Transit	KRW	—	Republic of Korea Won
BRL	—	Brazil Real	LIBOR	—	London Interbank Offered Rate
CAD	—	Canadian Dollar	LLC	—	Limited Liability Company
CDA	—	Community Development Authority	LLP	—	Limited Liability Partnership
CDO	—	Collateralized Debt Obligation	LOC	—	Letter of Credit
CDSC	—	Contingent Deferred Sales Charge	LP	—	Limited Partnership
CGIC	—	Capital Guaranty Insurance Company	MBIA	—	Municipal Bond Insurance Association
CGY	—	Capital Guaranty Corporation	MFHR	—	Multi-Family Housing Revenue
CHF	—	Swiss Franc	MFMR	—	Multi-Family Mortgage Revenue
CIFG	—	CDC (Caisse des Dépôts et Consignations) IXIS Financial	MMD	—	Municipal Market Data
		Guarantee	MTN	—	Medium Term Note
COP	—	Certificate of Participation	MUD	—	Municipal Utility District
CP	—	Commercial Paper	MXN	—	Mexican Peso
CTF	—	Common Trust Fund	MYR	—	Malaysian Ringgit
DEM	—	Deutsche Mark	NATL-RE	—	National Public Finance Guarantee Corporation
DKK	—	Danish Krone	NLG	—	Netherlands Guilder
DW&P	—	Department of Water & Power	NOK	—	Norwegian Krone
DWR	—	Department of Water Resources	NZD	—	New Zealand Dollar
ECFA	—	Educational & Cultural Facilities Authority	PCFA	—	Pollution Control Finance Authority
EDFA	—	Economic Development Finance Authority	PCR	—	Pollution Control Revenue
ETET	—	Eagle Tax-Exempt Trust	PFA	—	Public Finance Authority
ETF	—	Exchange-Traded Fund	PFFA	—	Public Facilities Financing Authority
EUR	—	Euro	plc	—	Public Limited Company
FFCB	—	Federal Farm Credit Bank	PLN	—	Polish Zloty
FGIC	—	Financial Guaranty Insurance Corporation	PSFG	—	Public School Fund Guaranty
FHA	—	Federal Housing Authority	R&D	—	Research & Development
FHAG	—	Federal Housing Agency	RDA	—	Redevelopment Authority
FHLB	—	Federal Home Loan Bank	RDFA	—	Redevelopment Finance Authority
FHLMC	—	Federal Home Loan Mortgage Corporation	REITS	—	Real Estate Investment Trusts
FNMA	—	Federal National Mortgage Association	SEK	—	Swedish Krona
FRF	—	French Franc	SFHR	—	Single Family Housing Revenue
FSA	—	Farm Service Agency	SFMR	—	Single Family Mortgage Revenue
GBP	—	Great British Pound	SGD	—	Singapore Dollar
GDR	—	Global Depositary Receipt	SKK	—	Slovakian Koruna
GNMA	—	Government National Mortgage Association	SLMA	—	Student Loan Marketing Association
GO	—	General Obligation	SPDR	—	Standard & Poor’s Depositary Receipts
HCFR	—	Healthcare Facilities Revenue	STIT	—	Short-Term Investment Trust
HEFA	—	Health & Educational Facilities Authority	TBA	—	To Be Announced
HEFAR	—	Higher Education Facilities Authority Revenue	TRAN	—	Tax Revenue Anticipation Notes
HFA	—	Housing Finance Authority	TRY	—	Turkish Lira
HFFA	—	Health Facilities Financing Authority	USD	—	United States Dollar
HKD	—	Hong Kong Dollar	XLCA	—	XL Capital Assurance
			ZAR	—	South African Rand

This page is intentionally left blank.

More information about Wells Fargo Advantage Funds is available free upon request. To obtain literature, please write, e-mail, visit the Funds’ Web site, or call:

Wells Fargo Advantage Funds
P.O. Box 8266
Boston, MA
02266-8266 E-mail:
wfaf@wellsfargo.com

Web site: www.wellsfargo.com/advantagefunds
Individual Investors: 1- 800-222-8222
Retail Investment Professionals: 1- 888-877-9275
Institutional Investment Professionals: 1- 866-765-0778

Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Advantage Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the Funds. The Funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA/SIPC, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED § NO BANK GUARANTEE § MAY LOSE VALUE



^© 2011 Wells Fargo Funds Management, LLC. All rights reserved.	www.wellsfargo.com/advantagefunds	200920 02-11
		AVT8/AR154 12-10

WELLS FARGO ADVANTAGE VARIABLE TRUST FUNDS

Wells Fargo Advantage VT Total Return Bond Fund

Reduce clutter. Save trees.

Contents


Letter to Shareholders			2

Performance Highlights			6

Fund Expenses			10

Portfolio of Investments			11

Financial Statements
Statement of Assets and Liabilities			26
Statement of Operations			27
Statements of Changes in Net Assets			28
Financial Highlights			30

Notes to Financial Statements			32

Report of Independent Registered Public Accounting Firm			39

Other Information			40

List of Abbreviations			44

NOT FDIC INSURED § NO BANK GUARANTEE § MAY LOSE VALUE

WELLS FARGO

INVESTMENT HISTORY


1932		Keystone creates one of the first mutual fund families.

1971		Wells Fargo & Company introduces one of the first institutional index funds.

1978		Wells Fargo applies Markowitz and Sharpe’s research on Modern Portfolio Theory to introduce one of the industry’s first Tactical Asset Allocation (TAA) models in institutional separately managed accounts.

1984		Wells Fargo Stagecoach Funds launches its first asset allocation fund.

1989		The Tactical Asset Allocation (TAA) Model is first applied to Wells Fargo’s asset allocation mutual funds.

1994		Wells Fargo introduces the LifePath Funds, one of the first suites of target date funds (now the Wells Fargo *Advantage Dow Jones Target Date Funds*^SM).

1996		Evergreen Investments and Keystone Funds merge.

1997		Wells Fargo launches Wells Fargo *Advantage WealthBuilder Portfolios*^SM, a fund-of-funds suite of products that includes the use of quantitative models to shift assets among investment styles.

1999		Norwest Advantage Funds and Stagecoach Funds are reorganized into Wells Fargo Funds after the merger of Norwest and Wells Fargo.

2002		Evergreen Retail and Evergreen Institutional companies form the umbrella asset management company, Evergreen Investments.

2005		The integration of Strong Funds with Wells Fargo Funds creates Wells Fargo Advantage Funds, resulting in one of the top 20 mutual fund companies in the United States.

2006		*Wells Fargo Advantage Funds* relaunches the target date product line as Wells Fargo Advantage Dow Jones *Target Date Funds.*

2010		The mergers and reorganizations of Evergreen and Wells Fargo Advantage mutual funds are completed, unifying the families under the brand of *Wells Fargo Advantage Funds.*

Wells Fargo Advantage Funds ^®

Strength

Expertise

Partnership

Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Advantage Funds ^®. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the Funds. The Funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA/SIPC, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED § NO BANK GUARANTEE § MAY LOSE VALUE

Not part of the annual report.

Wells Fargo Advantage Funds offers more than 120 mutual funds across a wide range of asset classes, representing over $236 billion in assets under management, as of December 31, 2010.


Equity Funds

Asia Pacific Fund	Enterprise Fund^†	Opportunity Fund^†
C&B Large Cap Value Fund	Equity Value Fund	Precious Metals Fund
C&B Mid Cap Value Fund	Global Opportunities Fund	Premier Large Company Growth Fund
Capital Growth Fund	Growth Fund	Small Cap Growth Fund
Classic Value Fund	Growth Opportunities Fund	Small Cap Opportunities Fund
Common Stock Fund	Health Care Fund	Small Cap Value Fund
Core Equity Fund	Index Fund	Small Company Growth Fund
Disciplined Global Equity Fund	International Equity Fund	Small Company Value Fund
Disciplined U.S. Core Fund	International Value Fund	Small/Mid Cap Core Fund
Disciplined Value Fund	Intrinsic Small Cap Value Fund	Small/Mid Cap Value Fund
Discovery Fund^†	Intrinsic Value Fund	Social Sustainability Fund^†
Diversified Equity Fund	Intrinsic World Equity Fund	Special Mid Cap Value Fund
Diversified International Fund	Large Cap Core Fund	Special Small Cap Value Fund
Diversified Small Cap Fund	Large Cap Growth Fund	Specialized Technology Fund
Emerging Growth Fund	Large Company Value Fund	Strategic Large Cap Growth Fund
Emerging Markets Equity Fund	Mid Cap Growth Fund	Traditional Small Cap Growth Fund
Endeavor Select Fund^†	Omega Growth Fund	Utility and Telecommunications Fund


Bond Funds

Adjustable Rate Government Fund	Inflation-Protected Bond Fund	Short-Term Bond Fund
California Limited-Term Tax-Free Fund	Intermediate Tax/AMT-Free Fund	Short-Term High Yield Bond Fund
California Tax-Free Fund	International Bond Fund	Short-Term Municipal Bond Fund
Colorado Tax-Free Fund	Minnesota Tax-Free Fund	Strategic Municipal Bond Fund
Government Securities Fund	Municipal Bond Fund	Total Return Bond Fund
High Income Fund	North Carolina Tax-Free Fund	Ultra Short-Term Income Fund
High Yield Bond Fund	Pennsylvania Tax-Free Fund	Ultra Short-Term Municipal Income Fund
Income Plus Fund	Short Duration Government Bond Fund	Wisconsin Tax-Free Fund


Asset Allocation Funds

Asset Allocation Fund	WealthBuilder Equity Portfolio^†	Target 2020 Fund^†
Conservative Allocation Fund	WealthBuilder Growth Allocation Portfolio^†	Target 2025 Fund^†
Diversified Capital Builder Fund	WealthBuilder Growth Balanced Portfolio^†	Target 2030 Fund^†
Diversified Income Builder Fund	WealthBuilder Moderate Balanced Portfolio^†	Target 2035 Fund^†
Growth Balanced Fund	WealthBuilder Tactical Equity Portfolio^†	Target 2040 Fund^†
Index Asset Allocation Fund	Target Today Fund^†	Target 2045 Fund^†
Moderate Balanced Fund	Target 2010 Fund^†	Target 2050 Fund^†
WealthBuilder Conservative Allocation Portfolio^†	Target 2015 Fund^†


Money Market Funds

100% Treasury Money Market Fund	Minnesota Money Market Fund	New Jersey Municipal Money Market Fund
California Municipal Money Market Fund	Money Market Fund	New York Municipal Money Market Fund
Cash Investment Money Market Fund	Municipal Cash Management Money Market Fund	Pennsylvania Municipal Money Market Fund
Government Money Market Fund	Municipal Money Market Fund	Prime Investment Money Market Fund
Heritage Money Market Fund^†	National Tax-Free Money Market Fund	Treasury Plus Money Market Fund


Variable Trust Funds¹

VT Core Equity Fund	VT Intrinsic Value Fund	VT Small Cap Value Fund
VT Discovery Fund^†	VT Omega Growth Fund	VT Total Return Bond Fund
VT Index Asset Allocation Fund	VT Opportunity Fund^†
VT International Equity Fund	VT Small Cap Growth Fund


1.		The Variable Trust Funds are generally available only through insurance company variable contracts.

†		In this report, the Wells Fargo Advantage Discovery Fund^SM, Wells Fargo Advantage Endeavor Select Fund^SM, Wells Fargo Advantage Enterprise Fund^SM, Wells Fargo Advantage Opportunity Fund^SM, Wells Fargo Advantage Social Sustainability Fund^SM, Wells Fargo Advantage WealthBuilder Conservative Allocation Portfolio^SM, Wells Fargo Advantage WealthBuilder Equity Portfolio^SM, Wells Fargo Advantage WealthBuilder Growth Allocation Portfolio^SM, Wells Fargo Advantage WealthBuilder Growth Balanced Portfolio^SM, Wells Fargo Advantage WealthBuilder Moderate Balanced Portfolio^SM, Wells Fargo Advantage WealthBuilder Tactical Equity Portfolio^SM, Wells Fargo Advantage Dow Jones Target Today Fund^SM, Wells Fargo Advantage Dow Jones Target 2010 Fund^SM, Wells Fargo Advantage Dow Jones Target 2015 Fund^SM, Wells Fargo Advantage Dow Jones Target 2020 Fund^SM, Wells Fargo Advantage Dow Jones Target 2025 Fund^SM, Wells Fargo Advantage Dow Jones Target 2030 Fund^SM, Wells Fargo Advantage Dow Jones Target 2035 Fund^SM, Wells Fargo Advantage Dow Jones Target 2040 Fund^SM, Wells Fargo Advantage Dow Jones Target 2045 Fund^SM, Wells Fargo Advantage Dow Jones Target 2050 Fund^SM, Wells Fargo Advantage Heritage Money Market Fund^SM, Wells Fargo Advantage VT Discovery Fund^SM, and Wells Fargo Advantage VT Opportunity Fund^SMare referred to as the Discovery Fund, Endeavor Select Fund, Enterprise Fund, Opportunity Fund, Social Sustainability Fund, WealthBuilder Conservative Allocation Portfolio, WealthBuilder Equity Portfolio, WealthBuilder Growth Allocation Portfolio, WealthBuilder Growth Balanced Portfolio, WealthBuilder Moderate Balanced Portfolio, WealthBuilder Tactical Equity Portfolio, Target Today Fund, Target 2010 Fund, Target 2015 Fund, Target 2020 Fund, Target 2025 Fund, Target 2030 Fund, Target 2035 Fund, Target 2040 Fund, Target 2045 Fund, Target 2050 Fund, Heritage Money Market Fund, VT Discovery Fund, and VT Opportunity Fund, respectively.

Not part of the annual report.


2 Wells Fargo Advantage VT Total Return Bond Fund		Letter to Shareholders

Karla M. Rabusch,
President
Wells Fargo Advantage Funds

Both the fixed income and equity markets delivered strong full-year returns against the backdrop of a strengthening economy.

Dear Valued Shareholder:

We are pleased to provide you with this annual report for the Wells Fargo Advantage VT Total Return Bond Fund for the 12 months that ended December 31, 2010. Both the fixed income and equity markets delivered strong full-year returns against the backdrop of a strengthening economy. However, the year was not without its share of macroeconomic challenges and market volatility, once again highlighting the value of a sound, well-diversified investment strategy. As always, we believe that such a strategy can enable investors to balance risks and opportunities as they pursue long-term financial goals in a dynamic market environment.

The economic recovery stayed on track.

Jobs and housing remained troublesome.

The Fed continued to do its part.


Letter to Shareholders		Wells Fargo Advantage VT Total Return Bond Fund 3

2010 was another solid year for fixed income and equities.

Fixed Income securities generally performed well during the year, benefitting from a continued rally in U.S. Treasuries and improving economic conditions. Along with more upbeat economic data, better-than-expected corporate earnings power played a role in driving stock prices higher and corporate bond yields lower. Throughout the year, quarterly earnings per share for the majority of companies in the S&P 500 Index consistently exceeded Wall Street estimates. As 2010 drew to a close, the midterm congressional elections and the extension of the Bush-era tax cuts provided additional tailwinds, helping the markets finish the year on a strong note.

It was the second straight year of double-digit total returns for the broad equity market indexes. The S&P 500 Index and the Dow Jones Industrial Average advanced 15.1% and 14.1%, respectively, while the tech-heavy NASDAQ Composite Index returned 18.2%. Investors were generally rewarded across the market-capitalization spectrum— with small- and mid-cap stocks outpacing large-cap stocks—as well as across most economic sectors. In terms of investment styles, growth stocks outperformed their value counterparts for the year.

Investors should keep a long-term perspective.

To help you build a well-diversified strategy based on your personal objectives and risk tolerance, Wells Fargo Advantage Funds ^® offers more than 120 mutual funds and other investments covering 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.

Along with more upbeat economic data, better-than-expected corporate earnings power played a role in driving stock prices higher.


4 Wells Fargo Advantage VT Total Return Bond Fund		Letter to Shareholders

Sincerely,

Karla M. Rabusch
President
Wells Fargo Advantage Funds

This page is intentionally left blank.


6 Wells Fargo Advantage VT Total Return Bond Fund		Performance Highlights (Unaudited)

Wells Fargo Advantage VT Total Return Bond Fund

INVESTMENT OBJECTIVE

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

INVESTMENT ADVISER

Wells Fargo Funds Management, LLC

SUB-ADVISER

Wells Capital Management Incorporated

PORTFOLIO MANAGERS

Troy Ludgood
Thomas O’Connor, CFA

FUND INCEPTION

September 20, 1999

PERFORMANCE SUMMARY


12 Month Total Return as of December 31, 2010

Class 2	7.04	%
Barclays Capital U.S. Aggregate Bond Index¹	6.54	%

The adviser has committed, through April 30, 2011, to waive fees and/or reimburse expenses to maintain the contractual expense cap at 0.90% for the Class 2 shares excluding acquired fund fees and certain other expenses. Without these reductions, the Fund’s returns would have been lower. The Fund’s net expense ratio is 0.91% for the Class 2 shares. The Fund’s gross expense ratio is 1.21% for the Class 2 shares.


1.		The Barclays Capital U.S. Aggregate Bond Index is composed of the Barclays Capital Government/Credit Index and the Mortgage-Backed Securities Index and includes U.S. Treasury issues, agency issues, corporate bond issues, and mortgage-backed securities. You cannot invest directly in an index.

2.		The chart compares the performance of the Wells Fargo Advantage VT Total Return Bond Fund Class 2 for the most recent ten years of the Fund with the Barclays Capital U.S. Aggregate Bond Index. The chart assumes a hypothetical $10,000 investment and reflects all operating expenses of the Fund.


Performance Highlights (Unaudited)		Wells Fargo Advantage VT Total Return Bond Fund 7

Wells Fargo Advantage VT Total Return Bond Fund (continued)

MANAGER’S DISCUSSION

Fund Highlights

▪		The Fund outperformed its benchmark during the 12-month period that ended December 31, 2010, due mainly to specific security selections in agency mortgages, corporate bonds, asset-backed securities (ABS), and commercial mortgage-backed securities (CMBS).

▪		Broad overweights in the CMBS and ABS sectors contributed to excess performance during the period.

▪		Our underweights in agency debt and lower-rated subordinated CMBS tranches detracted from performance. Our overweight in agency CMBS also detracted from performance.

Lower-quality securities generally outperformed higher-quality securities during the period.

During 2010, lower-quality assets outperformed Treasuries as the economic outlook continually improved. Liquidity provided by the Federal Reserve’s second round of quantitative easing (QE2) poured into virtually every corner of the global capital markets, benefiting all spread products. The CMBS sector was the top performer of the Barclays Capital U.S. Aggregate Bond Index, as conditions in the commercial real estate lending markets continued to improve and market loss estimates decreased. The mortgage sector, led by higher-coupon mortgages, outperformed Treasuries. Despite bouts of choppiness in the market due to European sovereign stress and renewed tensions in the Korean Peninsula, the credit sector also outperformed.

Economic indicators were mixed earlier in the year, before improving sharply in the fourth quarter, particularly in December, as manufacturing, retail sales, and consumer confidence data all came in better than expected. Treasury yields moved significantly lower during the first three quarters of 2010, with longer-dated bonds outperforming. Short-term yields were more stable, with the 2-year Treasury falling from 1.14% at the start of the year to a low of 0.33% early in the fourth quarter, while the 5-year Treasury fell from a yield of 2.68% to a low of 1.03%. However, as economic data came in better than expected in the fourth quarter, Treasury yields reversed course, rising 20 to 80 basis points (100 basis points equals one percentage point) across the curve from their lows.

An overweight in credits and tactical trading in structured products helped performance.

Although we began and ended 2010 with close to a 4.0% overweight in credits, our positioning was quite dynamic throughout the course of the year. During the first


3.		Portfolio allocation is subject to change and is calculated based on the total long-term investments of the Fund.


8 Wells Fargo Advantage VT Total Return Bond Fund		Performance Highlights (Unaudited)

Wells Fargo Advantage VT Total Return Bond Fund (continued)

quarter, we increased credit exposure by adding positions in high-quality defensive corporates, such as Pepsi, Kraft, and Wal-Mart. At the same time, we reduced positioning in the information technology and energy sectors as spread levels met our relative-value targets. Additionally, we pared back noncorporate exposure on strength. Credit markets were hit hard in the second quarter, as risk aversion surfaced in response to the European sovereign crisis, the lawsuit by the Securities and Exchange Commission against Goldman Sachs, uncertain bank regulation, and the Gulf of Mexico oil spill. We reduced exposure in names that we viewed as most vulnerable to these pressures. Volatility waned during the summer as many of these issues were addressed, and spreads rallied going into the fourth quarter. We used the record new-issue market in September to increase corporate exposure and maintained that overweight through year-end, ending with a 4.2% overweight.

In agency mortgages, we moved to a risk-adjusted underweight early in 2010, ahead of the end of the Fed’s mortgage-backed securities purchase program. In the third quarter, mortgages underperformed due to faster-than-expected prepayment speeds, and we moved to an overweight. We ended the year close to neutral by shifting our coupon exposure to take advantage of improved relative value in lower-coupon mortgages.

We found good relative-value trading opportunities in the CMBS sector throughout the year and increased our risk-adjusted overweight from 1.9% to 3.0%. Throughout the year, we tactically traded around our overweight in seasoned CMBS bonds, and in the fourth quarter we added exposure to bonds that originated in 2005 with 30% credit enhancement, as well as new 2009 and 2010 CMBS deals. During 2010, we increased our consumer ABS overweight from 4.8% to 5.8%, adding student loan floating-rate notes (FRNs) while reducing our overweight to credit card FRNs. We also executed a number of relative-value swaps within the credit card and student loan sectors during 2010.

Continued improvement in the U.S. economy may benefit riskier domestic securities.

Favorable momentum in the U.S. economy appears to be well established, with most indicators pointing to accelerating growth in the first half of 2011. Manufacturing surveys remain strong, and consumer demand has picked up. With good fundamental momentum and robust liquidity in the markets provided by accommodative monetary policy, prospects for riskier domestic assets, such as U.S. corporates, ABS, CMBS, and MBS, remain favorable. We are modestly overweight in those sectors. Improving confidence in the U.S. banking sector would be a welcome positive for corporate markets, while limited net issuance in ABS and CMBS should provide a good technical backdrop as debt outstanding declines. In mortgages, rising interest rates and slower-than-expected prepayment speeds have resulted in improved relative-value opportunities in lower coupons.

Longer-term, we are monitoring potential risks that the markets could encounter in 2011. In addition to the risks of exogenous shocks arising from geopolitical developments or policy action, we are considering economic scenarios in which the Federal Reserve could begin to tighten monetary policy. Mindful of potential surprises, we remain focused on bottom-up security selection as the primary driver of performance in 2011.


Performance Highlights (Unaudited)		Wells Fargo Advantage VT Total Return Bond Fund 9

Wells Fargo Advantage VT Total Return Bond Fund (continued)

AVERAGE ANNUAL TOTAL RETURN (%) (AS OF DECEMBER 31, 2010)


											Expense Ratios⁴
	Inception Date		6 Months*		1 Year		5 Year		10 Year		Gross			Net⁵
Class 2		9/20/1999		1.46		7.04		6.24		6.09		1.21	%		0.91	%
Barclays Capital U.S. Aggregate Bond Index¹				1.15		6.54		5.80		5.84


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

Bond fund values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. In general, when interest rates rise, bond fund values fall and investors may lose principal value. The use of derivatives may reduce returns and/or increase volatility. Active trading results in increased turnover and trading expenses and may generate higher short-term capital gains. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). This Fund is exposed to foreign investment risk and mortgage- and asset- backed securities risk. Consult the Fund’s prospectus for additional information on these and other risks.


4.		Reflects the expense ratio as stated in the May 1, 2010 prospectus.

5.		The adviser has committed, through April 30, 2011, to waive fees and/or reimburse expenses to maintain the contractual expense cap at 0.90% for Class 2 shares, excluding acquired fund fees and certain other expenses. Without these reductions, the Fund’s returns would have been lower.


10 Wells Fargo Advantage VT Total Return Bond Fund		Fund Expenses (Unaudited)

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 July 1, 2010 to December 31, 2010.

Actual expenses

Hypothetical example for comparison purposes


	Beginning		Ending		Expenses
	Account Value		Account Value		Paid During		Net Annual
	07-01-2010		12-31-2010		the Period¹		Expense Ratio
Class 2
Actual	$	1,000.00	$	1,014.56	$	4.26		0.83	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.25	$	4.27		0.83	%


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


Portfolio of Investments—December 31, 2010		Wells Fargo Advantage VT Total Return Bond Fund 11


Principal		Security Name	Interest Rate			Maturity Date		Value
Agency Securities: 53.20%

Federal Home Loan Mortgage Corporation: 14.56%
$	1,000,000	FHLMC%%		4.50	%		02/01/2040	$	1,021,881
	200,000	FHLMC%%		4.00			05/15/2030		200,375
	100,000	FHLMC%%		4.50			06/15/2028		103,156
	213,711	FHLMC #1B3430±		6.15			06/01/2037		229,933
	2,050	FHLMC #1B7562±		5.85			11/01/2037		2,203
	28,270	FHLMC #1G0784±	��	5.67			03/01/2036		30,271
	220,971	FHLMC #1G1347±		5.83			11/01/2036		237,928
	112,961	FHLMC #1G1404±		5.89			12/01/2036		121,593
	17,321	FHLMC #1G1614±		5.89			03/01/2037		18,631
	48,426	FHLMC #1G1873±		5.70			03/01/2036		51,887
	79,524	FHLMC #1H1334±		5.95			06/01/2036		85,120
	40,991	FHLMC #1J1920±		5.58			10/01/2038		43,814
	107,766	FHLMC #1Q0175±		6.06			11/01/2036		115,965
	134,282	FHLMC #1Q0960±		5.97			06/01/2038		144,020
	136,405	FHLMC #3598MA		4.50			11/15/2038		143,114
	293,529	FHLMC #3631		4.00			02/15/2040		302,944
	215,321	FHLMC #3652AP		4.50			03/15/2040		228,112
	240,000	FHLMC #3724		5.50			06/15/2037		260,261
	6,425	FHLMC #847703±		5.95			01/01/2037		6,898
	48,031	FHLMC #A78331		6.00			03/01/2034		52,786
	96,422	FHLMC #A79090		6.50			07/01/2034		108,419
	60,949	FHLMC #A95465		4.50			12/01/2040		62,515
	486,000	FHLMC #A95800		4.50			12/01/2040		498,483
	175,000	FHLMC #C91349		4.50			12/01/2030		181,901
	249,000	FHLMC #D98507		3.50			01/01/2031		243,607
	92,780	FHLMC #E01497		5.50			11/01/2018		100,065
	71,558	FHLMC #E01539		5.50			12/01/2018		77,176
	2,230,524	FHLMC #G01820		5.50			06/01/2035		2,393,024
	402,835	FHLMC #G05823		6.00			08/01/2034		442,712
	749,151	FHLMC #G06008		6.00			12/01/2035		823,311
	59,203	FHLMC #G11594		5.50			08/01/2019		63,856
	56,713	FHLMC #G11653		5.50			12/01/2019		61,170
	115,882	FHLMC #G11944		5.50			07/01/2020		124,989
	78,953	FHLMC #H19030		5.50			08/01/2037		83,693
	50,260	FHLMC #J02372		5.50			05/01/2020		54,398
	45,298	FHLMC #J02373		5.50			05/01/2020		49,028
	52,797	FHLMC #J02376		6.00			05/01/2020		58,016
	151,334	FHLMC #K007A1		3.34			12/25/2019		153,663
	45,756	FHLMC #U50015		4.50			10/01/2030		47,274
	128,000	FHLMC #U60362		4.50			12/01/2040		131,848
	709,000	FHLMC #U60371		4.50			01/01/2041		730,313
	148,231	FHLMC #Z40026		5.50			01/01/2033		158,057
	132,881	FHLMC Series 2479 Class PG		6.00			08/15/2032		145,301
	235,000	FHLMC Series 2558 Class BD		5.00			01/15/2018		254,496
	80,000	FHLMC Series 2590 Class BY		5.00			03/15/2018		86,706
	12,398	FHLMC Series 2727 Class PW		3.57			06/15/2029		12,626
	191,000	FHLMC Series 2843 Class BC		5.00			08/15/2019		207,095
	694,867	FHLMC Series 2980 Class QA		6.00			05/15/2035		762,856
	291,539	FHLMC Series 3028 Class PG		5.50			09/15/2035		310,668
	4,417	FHLMC Series 3052 Class MH		5.25			10/15/2034		4,755
	64,807	FHLMC Series 3325 Class JL		5.50			06/15/2037		70,766
	166,000	FHLMC Series K003 Class AAVB		4.77			05/25/2018		177,244
	195,443	FHLMC Series K008 Class A1		2.75			12/25/2019		192,212


12 Wells Fargo Advantage VT Total Return Bond Fund		Portfolio of Investments—December 31, 2010


Principal		Security Name	Interest Rate			Maturity Date			Value
Federal Home Loan Mortgage Corporation (continued)
$	39,177	FHLMC Series T-57 Class 1A3 Preassign 00073		7.50	%		07/25/2043	$	45,714
	50,221	FHLMC Series T-59 Class 1A3 Preassign 00329		7.50			10/25/2043		58,752
	54,537	FHLMC Series T-60 Class 1A3 Preassign 00462		7.50			03/25/2044		63,638

									12,441,239


Federal National Mortgage Association: 34.11%
	100,000	FNMA%%		4.50			12/25/2028		103,219
	500,000	FNMA%%(a)		3.00			10/25/2025		488,750
	1,000,000	FNMA%%		3.50			08/25/2025		1,006,875
	1,700,000	FNMA%%		3.50			09/25/2025		1,706,905
	300,000	FNMA%%		4.00			06/25/2030		301,219
	500,000	FNMA%%		4.50			01/25/2039		511,797
	179,000	FNMA%%		4.50			11/25/2039		185,740
	500,000	FNMA%%		6.00			09/25/2035		542,500
	99,401	FNMA #190129		6.00			11/01/2023		109,645
	141,737	FNMA #190338		5.50			07/01/2033		152,778
	38,845	FNMA #190346		5.50			12/01/2033		41,871
	542,911	FNMA #255361		5.50			08/01/2024		586,768
	92,094	FNMA #310017		7.00			06/01/2035		104,922
	288,761	FNMA #460408		6.20			05/01/2011		288,595
	268,615	FNMA #460515		6.06			09/01/2011		274,955
	227,187	FNMA #462404±		6.27			09/01/2037		245,721
	169,651	FNMA #545269		5.94			11/01/2011		172,254
	351,781	FNMA #545547		6.08			03/01/2012		362,608
	78,382	FNMA #555221		6.25			04/01/2011		78,340
	596,655	FNMA #555424		5.50			05/01/2033		643,134
	126,854	FNMA #677018		5.50			01/01/2033		136,577
	380,548	FNMA #725162		6.00			02/01/2034		419,212
	315,917	FNMA #725205		5.00			03/01/2034		334,130
	2,393,139	FNMA #725228		6.00			03/01/2034		2,636,289
	1,442,245	FNMA #725229		6.00			03/01/2034		1,588,782
	134,561	FNMA #725423		5.50			05/01/2034		145,043
	161,183	FNMA #725424		5.50			04/01/2034		173,739
	116,520	FNMA #725690		6.00			08/01/2034		127,813
	210,781	FNMA #735116		6.00			12/01/2034		232,197
	216,691	FNMA #735503		6.00			04/01/2035		238,707
	30,718	FNMA #735504		6.00			04/01/2035		33,839
	69,386	FNMA #808350		5.50			09/01/2034		74,326
	38,105	FNMA #838303±		6.00			07/01/2037		40,918
	141,126	FNMA #863729±		5.49			01/01/2036		150,392
	180,179	FNMA #888560		6.00			11/01/2035		198,485
	110,698	FNMA #888635		5.50			09/01/2036		119,321
	97,632	FNMA #888941±		6.05			10/01/2037		104,934
	268,592	FNMA #889213		5.50			10/01/2020		289,786
	583,072	FNMA #890248		6.00			07/01/2040		642,656
	29,183	FNMA #893916±		6.34			10/01/2036		31,429
	36,565	FNMA #905629±		6.02			12/01/2036		39,242
	62,641	FNMA #906403±		5.89			01/01/2037		67,387
	82,849	FNMA #906404±		5.90			01/01/2037		89,092
	47,894	FNMA #909569±		5.85			02/01/2037		51,590
	46,011	FNMA #910293±		5.94			03/01/2037		49,396
	54,191	FNMA #914819±		5.91			04/01/2037		58,237
	54,442	FNMA #931591		4.50			11/01/2019		56,637
	67,364	FNMA #938185±		5.94			07/01/2037		72,329
	18,663	FNMA #941143±		6.05			10/01/2037		20,059


Portfolio of Investments—December 31, 2010		Wells Fargo Advantage VT Total Return Bond Fund 13


Principal		Security Name	Interest Rate			Maturity Date		Value
Federal National Mortgage Association (continued)
$	16,807	FNMA #945646±		6.04	%		09/01/2037	$	18,069
	30,829	FNMA #947424±		5.66			10/01/2037		33,060
	72,792	FNMA #949690±		5.84			09/01/2037		78,137
	32,432	FNMA #952835±		5.93			09/01/2037		34,889
	32,191	FNMA #959331±		6.06			11/01/2037		34,639
	254,791	FNMA #995485		6.00			04/01/2035		280,679
	178,395	FNMA #995508		6.00			12/01/2035		196,521
	41,457	FNMA #AB1218		3.50			07/01/2025		41,811
	127,388	FNMA #AB1579		4.50			10/01/2040		131,437
	493,655	FNMA #AB1991		3.50			12/01/2030		483,040
	236,357	FNMA #AB1992		3.50			12/01/2030		231,274
	87,848	FNMA #AD0086±		5.52			02/01/2039		94,179
	75,834	FNMA #AD0212		5.50			04/01/2021		81,817
	215,350	FNMA #AD0584		7.00			01/01/2039		244,009
	245,122	FNMA #AD0682		6.00			12/01/2035		270,027
	128,166	FNMA #AD0716		6.50			12/01/2030		143,711
	274,914	FNMA #AE0096		5.50			07/01/2025		297,397
	610,705	FNMA #AE0133		6.00			07/01/2037		672,945
	473,351	FNMA #AE0303		6.00			08/01/2040		521,737
	818,766	FNMA #AE0364		5.50			09/01/2040		881,302
	494,113	FNMA #AE0482		5.50			10/01/2040		531,985
	218,863	FNMA #AE3925		3.50			11/01/2030		214,157
	618,581	FNMA #MA0511		4.50			09/01/2030		641,719
	202,634	FNMA #MA0582		3.50			11/01/2030		198,277
	589,232	FNMA #MA0602		3.50			12/01/2030		576,562
	351,000	FNMA #MA0625		3.50			01/01/2031		343,453
	263,000	FNMA #MA0632		4.50			01/01/2041		271,358
	745,000	FNMA #MA0634		4.50			01/01/2031		772,866
	960,037	FNMA Series 2001-81 Class HE(o)		6.50			01/25/2032		1,070,370
	36,385	FNMA Series 2001-T7 Class A1		7.50			02/25/2041		41,200
	38,665	FNMA Series 2002-33 Class A2		7.50			06/25/2032		45,223
	149,000	FNMA Series 2002-94 Class HQ		4.50			01/25/2018		158,447
	29,912	FNMA Series 2002-T16 Class A3		7.50			07/25/2042		34,698
	30,041	FNMA Series 2002-T18 Class A4		7.50			08/25/2042		34,923
	53,622	FNMA Series 2002-T6 Class A2		7.50			10/25/2041		60,921
	38,149	FNMA Series 2002-W4 Class A5		7.50			05/25/2042		44,349
	82,929	FNMA Series 2004-60 Class PA		5.50			04/25/2034		90,210
	73,707	FNMA Series 2005-58 Class MA		5.50			07/25/2035		81,433
	469	FNMA Series 2007-30 Class MA		4.25			02/25/2037		488
	112,599	FNMA Series 2007-77 Class MH		6.00			12/25/2036		122,274
	204,747	FNMA Series 2009-102 Class PN		5.00			11/25/2039		216,615
	71,000	FNMA Series 2009-5A Class BX		5.50			08/25/2038		76,765
	264,567	FNMA Series 2009-71 Class JT		6.00			06/25/2036		291,520
	333,572	FNMA Series 2009-78 Class J		5.00			09/25/2019		357,235
	122,949	FNMA Series 2009-93 Class PD		4.50			09/25/2039		125,212
	132,000	FNMA Series 2009-M1 Class A2		4.29			07/25/2019		135,388
	241,000	FNMA Series 2009-M2 Class A3		4.00			01/25/2019		243,169
	123,992	FNMA Series 2010-15 Class KA		4.00			03/25/2039		128,527
	461,387	FNMA Series 2010-54 Class EA		4.50			06/25/2040		473,597
	100,000	FNMA Series 2010-M1 Class A2		4.45			09/25/2019		103,014
	634,000	FNMA Series 2010-M3 Class A3±		4.33			03/25/2020		647,179
	96,000	FNMA Series K005 Class A2		4.32			11/25/2019		97,974

									29,132,928


14 Wells Fargo Advantage VT Total Return Bond Fund		Portfolio of Investments—December 31, 2010


Principal		Security Name	Interest Rate			Maturity Date		Value
Government National Mortgage Association: 4.53%
$	72,000	GNMA%%		3.00	%		01/20/2034	$	71,914
	2,000,000	GNMA%%		3.50			09/20/2040		1,924,064
	98,000	GNMA%%		3.00			12/20/2033		99,470
	500,000	GNMA%%		3.50			10/20/2040		479,766
	121,000	GNMA%%		3.50			03/20/2034		124,666
	118,000	GNMA%%		3.50			02/20/2034		122,093
	173,729	GNMA #082664±		3.50			11/20/2040		180,565
	416,570	GNMA #782044		6.50			12/15/2032		476,749
	127,000	GNMA Series 2006-37 Class JG		5.00			07/20/2036		134,422
	244,045	GNMA Series 2009-64 Class EQ		4.00			07/16/2039		251,516

									3,865,225


Total Agency Securities (Cost $45,077,617)									45,439,392


Asset Backed Securities: 9.52%
	250,000	Aesop Series 2010-5A Class A±		3.15			03/20/2017		244,146
	130,000	Ally Master Owner Trust Series 2010-1 Class A±		2.01			01/15/2015		132,356
	191,000	Allya Auto Receivables Trust Series 2010-4 Class A4		1.35			12/15/2015		186,663
	72,000	Bank of America Credit Card Trust Series 2006-A12 Class A±		0.28			03/15/2014		71,896
	167,000	Bank of America Credit Card Trust Series 2008-7 Class A±		0.96			12/15/2014		168,159
	286,000	Capital One Multi-Asset Execution Trust Series 2004-A8 Class A8±		0.39			08/15/2014		285,473
	293,000	Capital One Multi-Asset Execution Trust Series 2005-A10 Class A±		0.34			09/15/2015		291,021
	239,000	Capital One Multi-Asset Execution Trust Series 2005-A6 Class A6±		0.34			07/15/2015		237,396
	204,000	Capital One Multi-Asset Execution Trust Series 2006-A12 Class A±		0.32			07/15/2016		201,717
	215,000	Capital One Multi-Asset Execution Trust Series 2006-A5 Class A5±		0.32			01/15/2016		213,140
	335,000	Capital One Multi-Asset Execution Trust Series 2009-A2 Class A2±		3.20			04/15/2014		338,918
	198,000	Captial One Multi-Asset Execution Trust Series 2007-A8 Class A8±		0.60			10/15/2015		197,425
	115,000	Chase Issuance Trust Series 2009-A2 Class A2±		1.81			04/15/2014		116,908
	181,000	CitiBank Credit Card Issuance Trust Series 2009-A2 Class A2±		1.81			05/15/2014		184,167
	185,000	CitiBank Credit Card Issuance Trust Series 2009-A5 Class A5±		2.25			12/23/2014		189,118
	100,000	Discover Card Master Trust Series 2008-A3 Class A3±		5.10			10/15/2013		101,324
	296,000	Discover Card Master Trust Series 2009-A2 Class A±		1.56			02/17/2015		300,436
	366,000	Ford Credit Floorplan Master Owner Trust Series 2010-1 Class A±		1.91			12/15/2014		372,711
	87,833	Honda Auto Receivables Owner Trust Series 2010-1 Class A2±		0.62			02/21/2012		87,875
	91,000	MBNA Credit Card Master Note Trust Series 2006-A5 Class A5±		0.32			10/15/2015		90,365
	13,856	Morgan Stanley ABS Capital I Series 2007-HE2 Class A2A±		0.30			01/25/2037		13,430
	10,717	Morgan Stanley Home Equity Loans Series 2007-1 Class A1±		0.31			12/25/2036		10,463
	178,000	Nelnet Student Loan Trust Series 2004-5 Class A5±		0.47			10/27/2036		165,680
	517,000	Nelnet Student Loan Trust Series 2008-3 Class A4±		1.94			11/25/2024		533,506
	322,233	SLM Student Loan Trust Series 2004-5 Class A4±		0.44			01/25/2021		320,901
	181,000	SLM Student Loan Trust Series 2004-7 Class A5±		0.46			01/27/2020		179,734
	607,000	SLM Student Loan Trust Series 2004-9 Class A5±		0.44			01/27/2020		597,914
	100,000	SLM Student Loan Trust Series 2005-7 Class A3±		1.64			07/25/2025		102,780
	133,000	SLM Student Loan Trust Series 2005-7 Class A4±		0.44			10/25/2029		122,908
	191,000	SLM Student Loan Trust Series 2006-3 Class A4±		0.37			07/25/2019		189,230
	247,000	SLM Student Loan Trust Series 2007-4 Class A3±		0.35			01/25/2022		245,010
	360,000	SLM Student Loan Trust Series 2008-1 Class A4A±		1.90			12/15/2032		372,492
	101,000	SLM Student Loan Trust Series 2008-4 Class A2±		1.34			07/25/2016		102,460
	121,000	SLM Student Loan Trust Series 2008-4 Class A4±		1.94			07/25/2022		126,045
	448,858	SLM Student Loan Trust Series 2008-5 Class A2±		1.39			10/25/2016		454,452
	277,000	SLM Student Loan Trust Series 2008-5 Class A4±		1.99			07/25/2023		288,104
	290,000	SLM Student Loan Trust Series 2008-6 Class A2±		0.84			10/25/2017		291,597

Total Asset Backed Securities (Cost $8,123,047)									8,127,920


Portfolio of Investments—December 31, 2010		Wells Fargo Advantage VT Total Return Bond Fund 15


Principal		Security Name	Interest Rate			Maturity Date		Value
Collateralized Mortgage Obligations: 14.74%
$	194,000	Acre Arta Series 2010-A1		3.85	%		01/14/2029	$	194,347
	110,227	Asset Securitization Corporation Series 1996-D3 Class A2±		7.55			10/13/2026		112,380
	47,000	Bank of America Commercial Mortgage Incorporated Series 2004-6 Class A3		4.51			12/10/2042		48,186
	100,000	Bank of America Commercial Mortgage Incorporated Series 2002-PB2 Class B		6.31			06/11/2035		104,058
	258,000	Bank of America Commercial Mortgage Incorporated Series 2005-4 Class A5A		4.93			07/10/2045		269,372
	64,000	Bank of America Commercial Mortgage Incorporated Series 2005-5 Class A4±		5.12			10/10/2045		68,584
	57,000	Bank of America Commercial Mortgage Incorporated Series 2005-6 Class A4±		5.20			09/10/2047		61,221
	287,000	Bank of America Commercial Mortgage Incorporated Series 2006-5 Class A4		5.41			09/10/2047		300,372
	216,000	Bear Stearns Commercial Mortgage Securities Incorporated Series 2002-PBW1 Class A2±		4.72			11/11/2035		224,605
	31,833	Bear Stearns Commercial Mortgage Securities Incorporated Series 2003-T12 Class A3±		4.24			08/13/2039		32,326
	69,000	Bear Stearns Commercial Mortgage Securities Incorporated Series 2004-PWR4 Class A3±		5.47			06/11/2041		74,198
	137,000	Bear Stearns Commercial Mortgage Securities Incorporated Series 2005-PWR 7 Class A3±		5.12			02/11/2041		144,831
	67,028	Bear Stearns Commercial Mortgage Securities Incorporated Series 2005-PWR7 Class A		4.95			02/11/2041		68,577
	27,057	Bear Stearns Commercial Mortgage Securities Incorporated Series 2007-PRW1 Class A1		5.59			06/11/2040		27,512
	26,523	Citigroup Mortgage Loan Trust Incorporated Series 2007-AHL1 Class A2A±		0.30			12/25/2036		25,504
	124,000	Commercial Mortgage Pass-Through Certificate Series 1999-C1 Class A4±		6.98			01/17/2032		133,799
	151,000	Commercial Mortgage Pass-Through Certificate Series 2001-J2 Class B		6.30			07/16/2034		154,477
	92,000	Commercial Mortgage Pass-Through Certificate Series 2004-LB2A Class A4		4.72			03/10/2039		97,042
	50,000	Commercial Mortgage Pass-Through Certificate Series 2007-C9 Class A4±		5.81			12/10/2049		53,796
	104,813	Commercial Mortgage Pass-Through Certificate Series 2010-C1 Class A1		3.16			07/10/2046		105,049
	136,000	Commercial Mortgage Pass-Through Certificate Series 2010-CI Class A3		4.21			07/10/2046		132,019
	2,143	Credit Suisse First Boston Mortgage Securities Corporation Series 2002-CKS4 Class A1		4.49			11/15/2036		2,144
	84,000	Credit Suisse First Boston Mortgage Securities Corporation Series 2002-CKS4 Class A2		5.18			11/15/2036		87,586
	87,000	Credit Suisse First Boston Mortgage Securities Corporation Series 2003-C4 Class B±		5.25			08/15/2036		90,670
	63,000	Credit Suisse First Boston Mortgage Securities Corporation Series 2003-CPN1 Class A2		4.60			03/15/2035		66,059
	47,000	Credit Suisse First Boston Mortgage Securities Corporation Series 2003-CPN1 Class B		4.72			03/15/2035		48,371
	31,267	Credit Suisse First Boston Mortgage Securities Corporation Series 2005-C1 Class A3		4.81			02/15/2038		32,155
	114,000	Credit Suisse First Boston Mortgage Securities Corporation Series 2005-C2 Class A4		4.83			04/15/2037		117,660
	78,000	Credit Suisse First Boston Mortgage Securities Corporation Series 2007-C2 Class A2±		5.45			01/15/2049		79,525
	129,792	ESA Trust Series 2010-ESHA Class A		2.95			11/05/2027		127,649
	111,000	First Union National Bank Commercial Mortgage Series 2001-C4 Class B(l)		6.42			12/12/2033		114,977
	3,577	GE Capital Commercial Mortgage Corporation Series 2001-3 Class A1		5.56			06/10/2038		3,591
	99,876	GE Capital Commercial Mortgage Corporation Series 2002-1A Class A3		6.27			12/10/2035		104,049
	39,806	GMAC Commercial Mortgage Securities Incorporated Series 2001-C2 Class A2		6.70			04/15/2034		40,063
	104,000	GMAC Commercial Mortgage Securities Incorporated Series 2003-C2 Class A2±		5.47			05/10/2040		111,957
	89,000	GMAC Commercial Mortgage Securities Incorporated Series 2003-C2 Class B±		5.49			05/10/2040		93,727
	26,000	GMAC Commercial Mortgage Securities Incorporated Series 2003-C2 Class D±		5.49			05/10/2040		26,227
	113,000	GMAC Commercial Mortgage Securities Incorporated Series 2004-C2 Class A4±		5.30			08/10/2038		120,285
	45,000	Goldman Sachs Mortgage Securities Corporation II Series 2004-GG2 Class A6±		5.40			08/10/2038		48,336
	60,000	Greenwich Capital Commercial Funding Corporation Series 2003-C1 Class B		4.23			07/05/2035		61,998
	227,000	Greenwich Capital Commercial Funding Corporation Series 2005-GG5 Class A5±		5.22			04/10/2037		240,882


16 Wells Fargo Advantage VT Total Return Bond Fund		Portfolio of Investments—December 31, 2010


Principal		Security Name	Interest Rate			Maturity Date		Value
Collateralized Mortgage Obligations (continued)
$	9,729	GS Mortgage Securities Corporation II Series 2004-C1 Class A2		4.32	%		10/10/2028	$	9,723
	118,000	GS Mortgage Securities Corporation II Series 2005-GG4 Class A4		4.75			07/10/2039		124,437
	105,000	GS Mortgage Securities Corporation II Series 2010-C2		3.85			12/10/2043		106,915
	264,000	GS Mortgage Securities Corporation II Series 2010-C2±		5.16			12/10/2043		272,078
	283,476	Impact Funding LLC Series 2010-1 Class A1		5.31			01/25/2051		274,918
	14,360	JPMorgan Chase Commercial Mortgage Securities Corporation Series 2000-C10 Class C±		7.64			08/15/2032		14,422
	59,000	JPMorgan Chase Commercial Mortgage Securities Corporation Series 2001-CIBC2 Class D±		6.85			04/15/2035		59,614
	30,000	JPMorgan Chase Commercial Mortgage Securities Corporation Series 2002-C2 Class B±		5.21			12/12/2034		31,197
	76,000	JPMorgan Chase Commercial Mortgage Securities Corporation Series 2002-CIB5 Class A2		5.16			10/12/2037		79,892
	67,000	JPMorgan Chase Commercial Mortgage Securities Corporation Series 2002-CIBC4 Class C±		6.45			05/12/2034		69,486
	50,608	JPMorgan Chase Commercial Mortgage Securities Corporation Series 2003-C1 Class A1		4.28			01/12/2037		51,876
	23,104	JPMorgan Chase Commercial Mortgage Securities Corporation Series 2003-CB6 Class A1		4.39			07/12/2037		23,817
	92,000	JPMorgan Chase Commercial Mortgage Securities Corporation Series 2003-CB7 Class A4±		4.88			01/12/2038		97,471
	87,000	JPMorgan Chase Commercial Mortgage Securities Corporation Series 2004-C2 Class A3±		5.23			05/15/2041		92,596
	203,000	JPMorgan Chase Commercial Mortgage Securities Corporation Series 2004-CB9 Class A4±		5.36			06/12/2041		217,130
	52,304	JPMorgan Chase Commercial Mortgage Securities Corporation Series 2004-CIBC9 Class A2±		5.11			06/12/2041		52,729
	79,000	JPMorgan Chase Commercial Mortgage Securities Corporation Series 2004-LN2 Class A2		5.12			07/15/2041		82,519
	39,000	JPMorgan Chase Commercial Mortgage Securities Corporation Series 2005-LDP4 Class A4±		4.92			10/15/2042		41,313
	96,000	JPMorgan Chase Commercial Mortgage Securities Corporation Series 2005-LDP5 Class A4±		5.20			12/15/2044		103,350
	92,000	JPMorgan Chase Commercial Mortgage Securities Corporation Series 2006 Class A4±		5.48			12/12/2044		98,030
	99,960	JPMorgan Chase Commercial Mortgage Securities Corporation Series 2006-CB14 Class A2		5.44			12/12/2044		100,463
	52,000	JPMorgan Chase Commercial Mortgage Securities Corporation Series 2006-CB16 Class A4		5.55			05/12/2045		55,556
	95,000	JPMorgan Chase Commercial Mortgage Securities Corporation Series 2006-CB17 Class A4		5.43			12/12/2043		100,706
	49,000	JPMorgan Chase Commercial Mortgage Securities Corporation Series 2006-LDP9 Class A2		5.13			05/15/2047		51,055
	49,000	JPMorgan Chase Commercial Mortgage Securities Corporation Series 2006-LDP9 Class A3		5.34			05/15/2047		50,854
	129,000	JPMorgan Chase Commercial Mortgage Securities Corporation Series 2007-LD12 Class A3±		5.99			02/15/2051		135,113
	100,000	JPMorgan Chase Commercial Mortgage Securities Corporation Series 2007-LDP11 Class A±		5.82			06/15/2049		106,038
	158	JPMorgan Chase Commercial Mortgage Securities Corporation Series 2008-C2 Class A1		5.02			02/12/2051		158
	240,000	JPMorgan Chase Commercial Mortgage Securities Corporation Series 2009-IWST Class A2		5.63			12/05/2027		257,349
	155,000	JPMorgan Chase Commercial Mortgage Securities Corporation Series 2010-A2 Class A2		4.31			08/05/2032		146,156


Portfolio of Investments—December 31, 2010		Wells Fargo Advantage VT Total Return Bond Fund 17


Principal		Security Name	Interest Rate			Maturity Date		Value
Collateralized Mortgage Obligations (continued)
$	238,703	JPMorgan Chase Commercial Mortgage Securities Corporation Series 2010-C1 Class A1		3.85	%		06/15/2043	$	244,512
	87,296	Lehman Brothers UBS Commercial Mortgage Trust Series 2001-C2 Class A2		6.65			11/15/2027		87,498
	160,462	Lehman Brothers UBS Commercial Mortgage Trust Series 2001-C3 Class A2		6.37			12/15/2028		162,439
	200,000	Lehman Brothers UBS Commercial Mortgage Trust Series 2002-C2 Class A4		5.59			06/15/2031		209,280
	38,082	Lehman Brothers UBS Commercial Mortgage Trust Series 2002-C4 Class A4		4.56			09/15/2026		38,767
	451,000	Lehman Brothers UBS Commercial Mortgage Trust Series 2002-C4 Class A5		4.85			09/15/2031		471,649
	103,000	Lehman Brothers UBS Commercial Mortgage Trust Series 2002-C7 Class A4		4.96			12/15/2031		108,837
	136,000	Lehman Brothers UBS Commercial Mortgage Trust Series 2003-C8 Class A4±		5.12			11/15/2032		145,338
	55,000	Lehman Brothers UBS Commercial Mortgage Trust Series 2004-C1 Class A4		4.57			01/15/2031		57,426
	51,000	Lehman Brothers UBS Commercial Mortgage Trust Series 2004-C7 Class A5		4.63			10/15/2029		52,928
	50,000	Lehman Brothers UBS Commercial Mortgage Trust Series 2005-C1 Class A4		4.74			02/15/2030		52,371
	146,000	Lehman Brothers UBS Commercial Mortgage Trust Series 2005-C2 Class A4		5.00			04/15/2030		150,280
	24,000	Lehman Brothers UBS Commercial Mortgage Trust Series 2007-C1 Class AAB		5.40			02/15/2040		25,157
	53,000	Lehman Brothers UBS Commercial Mortgage Trust Series 2007-C3 Class A3±		5.93			07/15/2044		56,223
	125,000	Lehman Brothers UBS Commercial Mortgage Trust Series 2007-C3 Class A4±		5.94			07/15/2044		133,709
	184,000	Lehman Brothers UBS Commercial Mortgage Trust Series 2007-C6 Class A3		5.93			07/15/2040		192,845
	88,000	Lehman Brothers UBS Commercial Mortgage Trust Series 2008-C1 Class A2±		6.15			04/15/2041		95,386
	157,000	Merrill Lynch Mortgage Trust Series 2003-KEY1 Class A4±		5.24			11/12/2035		166,421
	158,000	Merrill Lynch Mortgage Trust Series 2004-KEY2 Class A4±		4.86			08/12/2039		165,085
	70,517	Merrill Lynch Mortgage Trust Series 2005-CIP1 Class A2		4.96			07/12/2038		71,846
	76,000	Merrill Lynch Mortgage Trust Series 2005-CIP1 Class A3A±		4.95			07/12/2038		78,755
	176,000	Merrill Lynch Mortgage Trust Series 2005-CKI1 Class A6±		5.24			11/12/2037		189,445
	100,000	Morgan Stanley Capital I Series 2003-IQ6 Class A4		4.97			12/15/2041		106,556
	113,000	Morgan Stanley Capital I Series 2003-T11 Class A4		5.15			06/13/2041		120,161
	132,000	Morgan Stanley Capital I Series 2004-IQ8 Class A4		4.90			06/15/2040		136,275
	85,000	Morgan Stanley Capital I Series 2004-T15 Class A4±		5.27			06/13/2041		91,046
	113,000	Morgan Stanley Capital I Series 2005 HQ7 Class A4±		5.19			11/14/2042		121,647
	248,000	Morgan Stanley Capital I Series 2005-HQ6 Class A4		4.99			08/13/2042		262,599
	122,000	Morgan Stanley Capital I Series 2006-IQ12 Class ANM		5.31			12/15/2043		123,328
	47,986	Morgan Stanley Capital I Series 2007-HQ13 Class A1		5.36			12/15/2044		49,841
	215,000	Morgan Stanley Capital I Series 2007-HQ13 Class A3		5.57			12/15/2044		220,752
	32,000	Morgan Stanley Capital I Series 2007-IQ14 Class AAB±		5.65			04/15/2049		33,791
	87,480	Morgan Stanley Dean Witter Capital I Series 2001-TOP3 Class A4		6.39			07/15/2033		88,748
	81,000	Morgan Stanley Dean Witter Capital I Series 2003-HQ2 Class A2		4.92			03/12/2035		85,450
	84,000	Morgan Stanley Dean Witter Capital I Series 2004-HQ3 Class A4		4.80			01/13/2041		88,002
	185,792	Morgan Stanley Dean Witter Capital I Series 2004-T15 Class A2		4.69			06/13/2041		185,688
	100,000	Morgan Stanley Dean Witter Capital I Series 2005-IQ9 Class A5		4.70			07/15/2056		105,129
	27,800	Morgan Stanley Mortgage Loan Trust Series 2007-6XS Class 2A1S±		0.37			02/25/2047		22,787
	128,000	Nomura Asset Securities Corporation Series 1998-D6 Class A2±		7.05			03/15/2030		140,954
	16,775	PNC Mortgage Acceptance Corporation Series 2001-C1 Class A2		6.36			03/12/2034		16,785
	44,000	Prudential Mortgage Capital Funding LLC Series 2001-ROCK Class B		6.76			05/10/2034		44,699
	20,753	Salomon Brothers Mortgage Securities Incorporated VII Series 2000-C2 Class C±		7.73			07/18/2033		20,807
	108,059	Salomon Brothers Mortgage Securities Incorporated VII Series 2001-C2 Class A3		6.50			11/13/2036		110,601
	58,314	Sequoia Mortgage Trust Series 2010-H1 Series A1±		3.75			02/25/2040		59,211
	293,273	US Bank NA Series 2007-1 Class A		5.92			05/25/2012		305,112
	17,824	Wachovia Bank Commercial Mortgage Trust Series 2003-C7 Class A1(l)		4.24			10/15/2035		17,961
	116,000	Wachovia Bank Commercial Mortgage Trust Series 2003-C8 Class A3(l)		4.45			11/15/2035		119,542

Total Collateralized Mortgage Obligations (Cost $12,511,611)									12,590,796


Corporate Bonds and Notes: 18.07%

Consumer Discretionary: 0.80%

Leisure Equipment & Products: 0.09%
	75,000	Mattel Incorporated		6.20			10/01/2040		73,790


18 Wells Fargo Advantage VT Total Return Bond Fund		Portfolio of Investments—December 31, 2010


Principal		Security Name	Interest Rate			Maturity Date		Value
Media: 0.71%
$	163,000	Comcast Corporation		8.38	%		03/15/2013	$	185,477
	67,000	DirecTV Incorporated		6.00			08/15/2040		67,263
	20,000	Discovery Communications LLC		6.35			06/01/2040		21,602
	157,000	NBC Universal Incorporated		2.88			04/01/2016		153,382
	130,000	NBC Universal Incorporated		4.38			04/01/2021		126,179
	55,000	NBC Universal Incorporated		5.95			04/01/2041		54,994

									608,897


Consumer Staples: 1.16%

Beverages: 0.64%
	220,000	Anheuser-Busch InBev Worldwide Incorporated		4.13			01/15/2015		231,708
	205,000	Coca Cola Company		1.50			11/15/2015		196,768
	125,000	Coca Cola Company		3.15			11/15/2020		117,286

									545,762


Food & Staples Retailing: 0.17%
	150,000	WalMart Stores Incorporated		3.25			10/25/2020		140,977


Food Products: 0.16%
	75,000	Kraft Foods Incorporated Class A		5.38			02/10/2020		80,720
	50,000	Kraft Foods Incorporated Class A		6.50			02/09/2040		56,031

									136,751

Tobacco: 0.19%
	38,000	Altria Group Incorporated		9.70			11/10/2018		50,131
	80,000	Altria Group Incorporated		10.20			02/06/2039		115,623

									165,754


Energy: 2.11%

Oil, Gas & Consumable Fuels: 2.11%
	290,000	Anadarko Petroleum Corporation		5.95			09/15/2016		311,544
	128,000	Anadarko Petroleum Corporation		6.38			09/15/2017		139,431
	85,000	Energy Transfer Partners LP		9.00			04/15/2019		106,486
	92,000	Husky Energy Incorporated		7.25			12/15/2019		109,241
	125,000	Kinder Morgan Energy LLC		6.00			01/15/2018		122,813
	75,000	Midamerican Energy Holdings Company		6.50			09/15/2037		84,841
	255,000	Occidental Petroleum Corporation		2.50			02/01/2016		254,279
	175,000	Occidental Petroleum Corporation		4.10			02/01/2021		177,878
	75,000	PacifiCorp		6.25			10/15/2037		84,995
	119,000	Plains All American Pipeline LP		3.95			09/15/2015		122,960
	35,000	Plains All American Pipeline LP		6.65			01/15/2037		36,788
	254,000	Rockies Express Pipeline		3.90			04/15/2015		251,229

									1,802,485


Financials: 7.61%

Capital Markets: 1.12%
	178,000	Goldman Sachs Group Incorporated		6.00			06/15/2020		192,358
	89,000	Goldman Sachs Group Incorporated		6.75			10/01/2037		90,993
	160,000	Lazard Group LLC		7.13			05/15/2015		172,287
	220,000	Lazard Group LLC		6.85			06/15/2017		230,147
	170,000	Morgan Stanley		3.45			11/02/2015		165,743
	100,000	Morgan Stanley		5.95			12/28/2017		105,804

									957,332


Portfolio of Investments—December 31, 2010		Wells Fargo Advantage VT Total Return Bond Fund 19


Principal		Security Name	Interest Rate			Maturity Date		Value
Commercial Banks: 0.22%
$	190,000	Westpac Banking Corporation		3.00	%		12/09/2015	$	189,643


Consumer Finance: 0.74%
	330,000	American Express Company		2.75			09/15/2015		324,616
	250,000	Capital One Bank USA NA		8.80			07/15/2019		307,510

									632,126


Diversified Financial Services: 3.72%
	155,000	Bank of America Corporation		7.38			05/15/2014		172,295
	220,000	Bank of America Corporation		3.70			09/01/2015		218,100
	125,000	Bank of America Corporation		6.00			09/01/2017		131,001
	185,000	Bank of America Corporation		5.63			07/01/2020		188,606
	190,000	Bank of America Corporation		5.88			01/05/2021		196,576
	255,000	Barclays Bank plc		2.50			09/21/2015		245,756
	200,000	Barclays Bank plc		5.14			10/14/2020		179,950
	340,000	BNP Paribas		2.20			11/02/2015		325,625
	370,000	Citigroup Incorporated«		1.88			10/22/2012		377,410
	106,000	Citigroup Incorporated		6.38			08/12/2014		117,152
	112,000	Citigroup Incorporated		4.75			05/19/2015		117,275
	255,000	Citigroup Incorporated		4.59			12/15/2015		265,840
	95,000	Citigroup Incorporated		5.38			08/09/2020		98,706
	300,000	JPMorgan Chase & Company		6.00			10/01/2017		332,569
	155,000	JPMorgan Chase & Company		6.80			10/01/2037		159,819
	50,000	JPMorgan Chase & Company		5.50			10/15/2040		51,107

									3,177,787


Insurance: 0.71%
	190,000	American International Group		6.40			12/15/2020		199,350
	130,000	Hartford Financial Services Group		5.50			03/30/2020		131,874
	91,000	Liberty Mutual Group		7.50			08/15/2036		90,477
	50,000	Prudential Financial Incorporated		4.50			11/15/2020		48,898
	60,000	Prudential Financial Incorporated		6.20			11/15/2040		63,471
	70,000	WR Berkley Corporation		5.38			09/15/2020		68,318

									602,388


Real Estate Investment Trusts: 1.10%
	75,000	Boston Properties LP		4.13			05/15/2021		71,103
	21,000	HCP Incorporated Series MTN		6.30			09/15/2016		22,622
	55,000	HCP Incorporated Series MTN		6.70			01/30/2018		59,008
	160,000	Health Care Property Investors Incorporated		5.65			12/15/2013		171,865
	30,000	Health Care Property Investors Incorporated		6.00			01/30/2017		31,376
	50,000	Kilroy Realty Corporation		5.00			11/03/2015		49,637
	80,000	Kilroy Realty Corporation		6.63			06/01/2020		79,580
	87,000	Reckson Operating Partnership LP		7.75			03/15/2020		93,090
	85,000	Tanger Properties LP		6.13			06/01/2020		91,242
	70,000	Ventas Realty LP		3.13			11/30/2015		67,444
	80,000	WEA Finance LLC		7.50			06/02/2014		90,797
	95,000	WEA Finance LLC		7.13			04/15/2018		109,285

									937,049


Health Care: 1.21%

Biotechnology: 0.24%
	220,000	Amgen Incorporated«		3.45			10/01/2020		209,624


20 Wells Fargo Advantage VT Total Return Bond Fund		Portfolio of Investments—December 31, 2010


Principal		Security Name	Interest Rate			Maturity Date		Value
Health Care Equipment & Supplies: 0.09%
$	80,000	Becton Dickinson & Company		3.25	%		11/12/2020	$	75,090


Health Care Providers & Services: 0.18%
	155,000	Coventry Health Care Incorporated		5.95			03/15/2017		157,586


Life Sciences Tools & Services: 0.32%
	205,000	Life Technologies Corporation		3.50			01/15/2016		204,375
	70,000	Life Technologies Corporation		5.00			01/15/2021		69,341

									273,716


Pharmaceuticals: 0.38%
	215,000	Allergan Incorporated		3.38			09/15/2020		202,793
	120,000	Merck & Company Incorporated		3.88			01/15/2021		119,253

									322,046


Industrials: 0.44%

Aerospace & Defense: 0.23%
	75,000	Northrop Grumman Corporation		3.50			03/15/2021		69,817
	55,000	Northrop Grumman Corporation		5.05			11/15/2040		51,386
	85,000	Raytheon Corporation		3.13			10/15/2020		78,378

									199,581


Road & Rail: 0.21%
	171,000	BSNF Railway Company		5.75			05/01/2040		176,920


Information Technology: 0.82%

Communications Equipment: 0.04%
	35,000	Harris Corporation		6.15			12/15/2040		35,821


Computers & Peripherals: 0.45%
	265,000	Hewlett Packard Company LP		2.13			09/13/2015		261,668
	130,000	Hewlett Packard Company LP		3.75			12/01/2020		127,152

									388,820


Electronic Equipment & Instruments: 0.14%
	50,000	Arrow Electronics Incorporated		3.38			11/01/2015		48,470
	75,000	Arrow Electronics Incorporated		5.13			03/01/2021		71,710

									120,180


IT Services: 0.06%
	50,000	SAIC Incorporated		5.95			12/01/2040		50,701


Software: 0.13%
	106,000	Adobe Systems Incorporated		4.75			02/01/2020		108,428


Materials: 0.87%

Chemicals: 0.67%
	165,000	Dow Chemical Company		4.85			08/15/2012		173,940
	90,000	Dow Chemical Company		5.90			02/15/2015		99,647
	168,000	Dow Chemical Company		8.55			05/15/2019		210,546
	90,000	Dow Chemical Company		4.25			11/15/2020		86,211

									570,344


Portfolio of Investments—December 31, 2010		Wells Fargo Advantage VT Total Return Bond Fund 21


Principal		Security Name	Interest Rate			Maturity Date		Value
Metals & Mining: 0.20%
$	185,000	Codelco Incorporated		3.75	%		11/04/2020	$	175,294


Telecommunication Services: 1.09%

Diversified Telecommunication Services: 0.39%
	95,000	Frontier Communications Corporation		8.25			04/15/2017		104,263
	25,000	Frontier Communications Corporation		8.13			10/01/2018		27,438
	50,000	Frontier Communications Corporation		8.50			04/15/2020		54,625
	130,000	Qwest Corporation		7.50			10/01/2014		145,600

									331,926


Wireless Telecommunication Services: 0.70%
	180,000	American Tower Corporation		4.50			01/15/2018		178,428
	53,000	American Tower Corporation		5.05			09/01/2020		52,122
	85,000	Cellco Partnership / Verizon Wireless Capital LLC		8.50			11/15/2018		111,227
	230,000	Verizon Wireless Corporation		5.55			02/01/2014		253,622

									595,399


Utilities Revenue: 1.96%

Electric Utilities: 1.12%
	190,000	DPL Incorporated		6.88			09/01/2011		197,185
	140,000	Duke Energy Corporation		6.30			02/01/2014		155,938
	30,000	Exelon Generation Company LLC		4.00			10/01/2020		28,075
	50,000	Exelon Generation Company LLC		5.75			10/01/2041		47,638
	80,000	FirstEnergy Solutions Company		6.05			08/15/2021		82,181
	50,000	FirstEnergy Solutions Company		6.80			08/15/2039		48,460
	300,000	Nevada Power Company Series A		8.25			06/01/2011		309,061
	85,000	Progress Energy Incorporated		6.85			04/15/2012		91,049

									959,587


Gas Utilities: 0.22%
	95,000	El Paso Pipeline Corporation		7.50			11/15/2040		98,455
	90,000	Pacific Gas & Electric Company		5.40			01/15/2040		90,910

									189,365


Independent Power Producers & Energy Traders: 0.08%
	70,000	Constellation Energy Group		5.15			12/01/2020		68,915


Multi-Utilities: 0.54%
	110,000	CMS Energy Corporation		5.05			02/15/2018		108,766
	270,000	Dominion Resources Incorporated		8.88			01/15/2019		349,843

									458,609


Total Corporate Bonds and Notes (Cost $15,170,390)									15,438,693


Yankee Corporate Bonds and Notes: 5.99%

Consumer Discretionary: 0.27%

Media: 0.27%
	110,000	British Sky Broadcasting Group plc		9.50			11/15/2018		144,078
	80,000	Thomson Reuters Corporation		5.95			07/15/2013		88,808

									232,886


Consumer Staples: 0.15%

Food & Staples Retailing: 0.15%
	130,000	Woolworths Limited		4.00			09/22/2020		125,888


22 Wells Fargo Advantage VT Total Return Bond Fund		Portfolio of Investments—December 31, 2010


Principal		Security Name	Interest Rate			Maturity Date		Value
Energy: 0.71%

Oil, Gas & Consumable Fuels: 0.71%
$	75,000	Husky Energy Incorporated		5.90	%		06/15/2014	$	82,424
	55,000	Petro Canada		6.80			05/15/2038		62,651
	185,000	Shell International		3.10			06/28/2015		189,986
	265,000	Transocean Incorporated		4.95			11/15/2015		273,867

									608,928


Financials: 3.00%

Commercial Banks: 1.67%
	295,000	DnB Nor Boligkreditt AS		2.10			10/14/2015		280,544
	134,000	HSBC Holdings PLC		6.80			06/01/2038		144,896
	105,000	Itau Unibanco Holding SA		6.20			04/15/2020		107,871
	199,000	Korea Development Bank		3.25			03/09/2016		193,518
	190,000	Lloyds TSB Bank plc		6.50			09/14/2020		174,806
	260,000	Nordea Bank AB		3.70			11/13/2014		267,999
	248,000	Swedish Export Credit		3.25			09/16/2014		259,759

									1,429,393


Consumer Finance: 0.29%
	245,000	Finance For Danish Industry		2.00			06/12/2013		249,069


Diversified Financial Services: 0.18%
	140,000	Credit Suisse New York NY		6.00			02/15/2018		150,121


Real Estate Investment Trusts: 0.39%
	210,000	Qatari Diar Finance QSC		5.00			07/21/2020		209,003
	116,000	Westfield Group		5.40			10/01/2012		122,974

									331,977


Thrifts & Mortgage Finance: 0.47%
	385,000	Achmea Hypotheekbank NV		3.20			11/03/2014		400,563


Materials: 0.19%

Metals & Mining: 0.19%
	100,000	Vale Overseas Limited		4.63			09/15/2020		99,008
	54,000	Vale Overseas Limited		6.88			11/10/2039		59,666

									158,674


Telecommunication Services: 1.44%

Diversified Telecommunication Services: 0.73%
	55,000	British Telecommunications PLC		9.88			12/15/2030		73,306
	275,000	Hutchison Whampoa International Limited		4.63			09/11/2015		288,718
	80,000	Telefonica Emisiones SAU		5.98			06/20/2011		81,774
	190,000	Telemar Norte Leste SAU		5.50			10/23/2020		182,875

									626,673


Wireless Telecommunication Services: 0.71%
	246,000	America Movil SAB SA		5.00			10/16/2019		256,038
	35,000	Rogers Cable Incorporated		5.50			03/15/2014		38,225
	190,000	Rogers Wireless Incorporated		6.38			03/01/2014		213,485
	100,000	Telefonica Moviles Chile		2.88			11/09/2015		95,978

									603,726


Portfolio of Investments—December 31, 2010		Wells Fargo Advantage VT Total Return Bond Fund 23


Principal		Security Name	Interest Rate			Maturity Date		Value
Utilities Revenue: 0.23%

Electric Utilities: 0.11%
$	100,000	Korea Hydro & Nuclear Power Company Limited		3.13	%		09/16/2015	$	96,946


Gas Utilities: 0.12%
	100,000	Odebrecht Drilling SA		6.35			06/30/2021		104,000


Total Yankee Corporate Bonds and Notes (Cost $5,050,906)									5,118,844


Yankee Government Bonds: 1.76%
	100,000	Federal Republic of Brazil		5.63			01/07/2041		99,250
	105,000	Korea		5.50			10/17/2012		111,141
	188,000	Norway		1.75			10/05/2015		182,440
	190,000	Province Of Ontario Canada		3.15			12/15/2017		188,825
	170,000	Republic of Chile		3.88			08/05/2020		167,120
	95,000	Republic of Peru		5.63			11/18/2050		87,875
	120,000	Republic of Poland		3.88			07/16/2015		121,965
	100,000	Russia		3.63			04/29/2015		100,130
	430,000	State of Qatar		4.00			01/20/2015		445,050

Total Yankee Government Bonds (Cost $1,510,355)									1,503,796


Municipal Bonds and Notes: 0.88%

California: 0.44%
	25,000	California State Build America Bonds (Property Tax Revenue)		7.63			03/01/2040		26,348
	125,000	California State Build America Bonds (Property Tax Revenue)		7.60			11/01/2040		130,925
	100,000	Los Angeles CA Community College District Build America Bonds (Property Tax Revenue)		6.75			08/01/2049		103,571
	110,000	Los Angeles CA Department of Water & Power Build America Bonds (Utilities Revenue)		6.57			07/01/2045		112,650

									373,494


Nevada: 0.16%
	130,000	Clark County NV Series C (Transportation Revenue)		6.82			07/01/2045		133,333


New Jersey: 0.16%
	130,000	New Jersey State Turnpike Authority (Transportation Revenue)		7.10			01/01/2041		141,552


Texas: 0.12%
	110,000	North Texas Tollway Authority (Transportation Revenue)		6.72			01/01/2049		107,659


Total Municipal Bonds and Notes (Cost $751,752)									756,038


US Treasury Securities: 11.13%

US Treasury Bonds: 4.18%
	45,000	US Treasury Bond(o)		1.38			11/30/2015		43,731
	1,158,000	US Treasury Bond(o)		5.38			02/15/2031		1,351,784
	760,000	US Treasury Bond(o)		4.50			02/15/2036		786,837
	1,009,000	US Treasury Bond(o)		4.38			05/15/2040		1,013,884
	136,000	US Treasury Bond«		3.88			08/15/2040		125,269
	250,000	US Treasury Bond(o)		4.25			11/15/2040		245,938

									3,567,443


24 Wells Fargo Advantage VT Total Return Bond Fund		Portfolio of Investments—December 31, 2010


Principal		Security Name	Interest Rate			Maturity Date		Value
US Treasury Notes: 6.95%
$	80,000	US Treasury Note(o)		0.50	%		11/30/2012	$	79,897
	730,000	US Treasury Note(o)		0.63			12/31/2012		730,399
	936,000	US Treasury Note(o)		0.75			12/15/2013		929,346
	563,000	US Treasury Note(o)		4.25			11/15/2014		622,423
	2,598,000	US Treasury Note(o)		2.13			12/31/2015		2,611,801
	43,000	US Treasury Note(o)		8.88			08/15/2017		59,730
	440,000	US Treasury Note(o)		2.75			12/31/2017		440,963
	304,000	US Treasury Note(o)		2.63			11/15/2020		286,757
	136,000	US Treasury Note(o)		6.25			05/15/2030		174,802

									5,936,118


Total US Treasury Securities (Cost $9,556,429)									9,503,561


Short-Term Investments: 2.46%

Corporate Bonds & Notes: 0.65%
	257,871	Gryphon Funding Limited(v)(i)(a)		0.00			08/05/2011		104,747

	800,556	VFNC Corporation(v)±††(i)(a)		0.26			09/29/2011		448,312

									553,059


Shares					Yield
Investment Companies: 1.81%
	1,436,296	Wells Fargo Advantage Cash Investment Money Market Fund(l)(u)(o)				0.14	%		1,436,296
	110,017	Wells Fargo Securities Lending Cash Investments LLC(v)(l)(u)				0.27			110,017

						��			1,546,313


Total Short-Term Investments (Cost $1,898,836)									2,099,372


Total Investments in Securities (Cost $99,650,943)*			117.75	%					100,578,412


Other Assets and Liabilities, Net			(17.75	)					(15,162,829	)


Total Net Assets			100.00	%				$	85,415,583


Principal				Interest Rate			Maturity Date
Schedule of TBA Sale Commitments: (2.28%)
$	(200,000	)	FNMA%%		5.50	%		04/25/2035	$	(213,594	)
	(1,600,000	)	FNMA%%		6.00			08/25/2038		(1,736,000	)


Total Schedule of TBA Sale Commitments (Proceeds $(1,940,180))									$	(1,949,594	)


Portfolio of Investments—December 31, 2010		Wells Fargo Advantage VT Total Return Bond Fund 25


(v)		Security represents investment of cash collateral received from securities on loan.

±		Variable rate investments.

++		Securities that may be resold to “qualified institutional buyers” under rule 144A or securities offered pursuant to Section 4(2) of the Securities Act of 1933, as amended.

(I)		Investment in an affiliate.

(i)		Illiquid security for which the designation as illiquid is unaudited.

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

%%		Securities issued on a when-issued (TBA) and/or delayed delivery basis.

(a)		Security is fair valued by the Management Valuation Team, and in certain instances by the Board of Trustees, in accordance with procedures approved by the Board of Trustees.

(o)		Security pledged as collateral for when-issued (TBA) securities.

(u)		Rate shown is the 7-day annualized yield at period end.

*		Cost for federal income tax purposes is $100,109,172 and net unrealized appreciation (depreciation) consists of:


Gross unrealized appreciation	$	1,614,800
Gross unrealized depreciation		(1,145,560	)

Net unrealized appreciation	$	469,240

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


26 Wells Fargo Advantage VT Total Return Bond Fund		Statement of Assets and Liabilities—December 31, 2010


Assets
Investments
In unaffiliated securities (including securities on loan), at value	$	98,779,619
In affiliated securities, at value		1,798,793

Total investments, at value (see cost below)		100,578,412
Receivable for investments sold		43,365,185
Principal paydown receivable		18,714
Receivable for Fund shares sold		28,769
Receivable for interest		551,848
Receivable for securities lending income		6,444
Prepaid expenses and other assets		1,010

Total assets		144,550,382


Liabilities
Dividends payable		13,472
Payable for investments purchased		56,363,956
Payable for Fund shares redeemed		67,294
Payable upon receipt of securities loaned		462,540
Payable for interest on TBA sale commitments		2,675
Payable for TBA sale commitments, at value		1,949,594
Investment advisory fee payable		106,260
Distribution fees payable		19,328
Due to custodian bank		7,696
Due to other related parties		10,049
Accrued expenses and other liabilities		131,935

Total liabilities		59,134,799

Total net assets	$	85,415,583


NET ASSETS CONSIST OF
Paid-in capital	$	88,397,090
Undistributed net investment income		41,738
Accumulated net realized losses on investments		(3,941,300	)
Net unrealized gains on investments		918,055

Total net assets	$	85,415,583


COMPUTATION OF NET ASSET VALUE PER SHARE¹
Net assets — Class 2	$	85,415,583
Shares outstanding — Class 2		8,201,985
Net asset value per share — Class 2	$	10.41


Total investments, at cost	$	99,650,943

Securities on loan, at value	$	455,280

Proceeds received from TBA sale commitments	$	1,940,180

1. The Fund has an unlimited number of authorized shares.

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


Statement of Operations—For the year Ended December 31 2010		Wells Fargo Advantage VT Total Return Bond Fund 27


Investment income
Interest*	$	3,053,660
Income from affiliated securities		36,817
Securities lending income, net		1,408

Total investment income		3,091,885


Expenses
Investment advisory fee		342,560
Administration fees
Fund level		91,404
Class 2¹		33,178
Distribution fees
Class 2¹		214,100
Custody and accounting fees		21,401
Professional fees		21,558
Shareholder report expenses		34,491
Trustees’ fees and expenses		12,254
Other fees and expenses		4,394

Total expenses		775,340

Less: Fee waivers and/or expense reimbursements		(35,155	)

Net expenses		740,185

Net investment income		2,351,700


NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		5,093,231
Affiliated securities		13,451
TBA sale commitments		(81,520	)

Net realized gains on investments		5,025,162


Net change in unrealized gains (losses) on:
Unaffiliated securities		(1,719,375	)
Affiliated securities		9,365
TBA sale commitments		(10,117	)

Net change in unrealized gains (losses) on investments		(1,720,127	)

Net realized and unrealized gains (losses) on investments		3,305,035

Net increase assets resulting from operations	$	5,656,735


* Net of foreign withholding taxes of		$	2,639

1. After the close of business on July 16, 2010, existing shares of the Fund were renamed Class 2 shares.

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


28 Wells Fargo Advantage VT Total Return Bond Fund		Statement of Changes in Net Assets


				Year Ended						Year Ended
				December 31, 2010						December 31, 2009

Operations
Net investment income				$	2,351,700					$	3,721,497
Net realized gains on investments					5,025,162						1,385,968
Net change in unrealized gains (losses) on investments					(1,720,127	)					5,138,033

Net increase in net assets resulting from operations					5,656,735						10,245,498


Distributions to shareholders from
Net investment income — Class 2¹					(2,911,613	)					(4,144,480	)
Net realized gains — Class 2¹					(1,599,718	)					(384,241	)

Total distributions to shareholders					(4,511,331	)					(4,528,721	)


	Shares						Shares

Capital shares transactions
Proceeds from shares sold — Class 2¹		1,128,306			11,845,200			2,307,327			23,374,243
Reinvestment of distributions — Class 2¹		430,547			4,523,836			447,370			4,514,417
Payment for shares redeemed — Class 2¹		(5,530,492	)		(58,415,579	)		(3,203,494	)		(32,081,199	)
Net asset value of shares issued in acquisition — Class 2		2,976,311			31,182,320			0			0

Net decrease in net assets resulting from capital share transactions					(10,864,223	)					(4,192,539	)

Total increase (decrease) in net assets					(9,718,819	)					1,524,238

Net assets
Beginning of period					95,134,402						93,610,164

End of period				$	85,415,583					$	95,134,402

Undistributed net investment income				$	41,738					$	37,448

1. After the close of business on July 16, 2010, existing shares of the Fund were renamed Class 2 shares.

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

This page is intentionally left blank.


30 Wells Fargo Advantage VT Total Return Bond Fund		Financial Highlights


	Beginning				Net Realized			Distributions
	Net Asset				and Unrealized			from Net			Distributions
	Value Per		Net Investment		Gains (Losses)			Investment			from Net
	Share		Income		on Investments			Income			Realized Gains

Class 2²
January 1, 2010 to December 31, 2010	$	10.34		0.29		0.43			(0.36	)		(0.29	)
January 1, 2009 to December 31, 2009	$	9.70		0.42		0.72			(0.46	)		(0.04	)
January 1, 2008 to December 31, 2008	$	9.94		0.44		(0.21	)		(0.47	)		0.00
January 1, 2007 to December 31, 2007	$	9.81		0.45		0.13			(0.45	)		0.00
January 1, 2006 to December 31, 2006	$	9.86		0.43		(0.05	)		(0.43	)		0.00

1. Total return calculations would have been lower had certain expenses not been waived or reimbursed during the periods shown.

2. After the close of business on July 16, 2010, existing shares of the Fund were renamed Class 2 shares.

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



Financial Highlights		Wells Fargo Advantage VT Total Return Bond Fund 31


Ending
Net Asset		Ratio to Average Net Assets												Portfolio			Net Assets at
Value Per		Net Investment			Gross			Net			Total			Turnover			End of Period
Share		Income			Expenses			Expenses			Return¹			Rate			(000’s omitted)


$	10.41		2.76	%		0.91	%		0.86	%		7.04	%		838	%	$	85,416
$	10.34		4.07	%		1.20	%		0.85	%		11.99	%		580	%	$	95,134
$	9.70		4.55	%		1.19	%		0.90	%		2.39	%		692	%	$	93,610
$	9.94		4.58	%		0.94	%		0.90	%		6.08	%		580	%	$	129,098
$	9.81		4.36	%		0.95	%		0.90	%		3.92	%		662	%	$	116,449



32 Wells Fargo Advantage VT Total Return Bond Fund		Notes to Financial Statements

1. ORGANIZATION

Wells Fargo Variable 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”). These financial statements report on Wells Fargo Advantage VT Total Return Bond Fund (the “Fund”) which is a diversified series of the Trust. After the close of business on July 16, 2010, existing shares of the Fund were renamed Class 2 shares.

2. SIGNIFICANT ACCOUNTING POLICIES

Securities valuation

Investments in open-end mutual funds and non-registered investment companies are generally valued at net asset value.

The valuation techniques used by the Fund to measure fair value are consistent with the market approach, income approach and/or cost approach, where applicable, for each security type.

Security loans



Notes to Financial Statements		Wells Fargo Advantage VT Total Return Bond Fund 33

Collateral Fund seeks to provide a positive return compared to the daily Fed Funds Open rate by investing in high-quality, U.S. dollar-denominated short-term money market instruments. Cash Collateral Fund investments are fair valued based upon the amortized cost valuation technique. Income earned from investment in the Cash Collateral Fund is included in securities lending income on the Statement of Operations.

Prior to April 1, 2010, Wells Fargo Bank, N.A. acted as the securities lending agent for the Fund and was entitled to receive for its services 25% of the revenues earned on the securities lending activities. For the year ended December 31, 2010, Wells Fargo Bank, N.A. waived a portion of its share of revenues earned on securities lending activities. Such waivers by Wells Fargo Bank, N.A. had the impact of increasing securities lending income on the Statement of Operations. The value of the securities on loan and the liability to return the collateral are shown on the Statement of Assets and Liabilities.

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 instruments in which cash collateral is invested. The amount of securities lending activity undertaken by the Fund fluctuates from time to time. After the occurrence of a default or impairment of structured investment vehicles purchased in a joint account by the Fund’s former securities lending agent, as the various participating Funds’ lending activity fluctuated, their ratable interest in the joint account, including their ratable exposure to the defaulted or impaired structured investment vehicles fluctuated depending on the relative activity of each participating Fund. In order to eliminate the fluctuation of the various participating Funds’ ratable exposure to the defaulted or impaired structured investment vehicles, the adviser to the Funds recommended to the Board of Trustees, and the Board of Trustees approved, actions designed to fix the allocation of percentage ownership in defaulted or impaired structured investment vehicles among all funds participating in securities lending (“side pocketing”) based on each participating Fund’s percentage ownership of the total cash collateral investment joint account as of the date the fixed allocation is implemented. Accordingly, on February 13, 2009 a side pocketing occurred, which fixed each participating Fund’s ownership of defaulted or impaired structured investment vehicle in the joint account based on each participating Fund’s percentage ownership of the joint account as of such date.

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 to cover its obligation by confirming the availability of qualifying assets having a value sufficient to make payment for the securities purchased. 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.

Short sales

The Fund may sell a security it does not own in anticipation of a decline in the market value of that security (short sale). When the Fund makes a short sale, it must borrow the security sold short and deliver it to the buyer. The Fund is then obligated to replace the security borrowed by purchasing the security at the market price at the time of replacement.

The Fund records the proceeds as a liability which is marked-to-market daily based upon quotations from an independent pricing service or from brokers, which use prices provided by market makers, and any change in value is recorded as an unrealized gain or loss. Any interest or dividends accrued on such borrowed securities during the period of the loan are recorded as an expense on the Statement of Operations. To borrow the security, the Fund may be required to pay a premium, which would decrease the proceeds of the security sold. A gain, limited to the price at which the Fund sold the security short, or a loss, unlimited in size, will be recognized upon the closing of a short sale if the market price at the closing is less than or greater than, respectively, the proceeds originally received. Until the short sale is closed or the borrowed security is replaced, the Fund maintains a segregated account of cash or liquid securities, the dollar value of which is at least equal to the market value of the security at the time of the short sale.

TBA sale commitments

The Fund may enter into To Be Announced (“TBA”) sale commitments to hedge its portfolio positions or to sell mortgage-backed securities it owns under delayed delivery arrangements. Proceeds of TBA sale commitments are not received until the contractual settlement date. During the time a TBA sale commitment is outstanding, equivalent deliverable securities, or an offsetting TBA purchase commitment deliverable on or before the sale commitment date, are held as “cover” for the transaction. Unsettled TBA sale commitments are valued at the current market value of the



34 Wells Fargo Advantage VT Total Return Bond Fund		Notes to Financial Statements

underlying securities, generally according to the procedures described under “Securities valuation”. The contract is marked-to-market daily and the change in market value is recorded by the Fund as an unrealized gain or loss. If the TBA sale commitment is closed through the acquisition of an offsetting purchase commitment, the Fund realizes a gain or loss. If the Fund delivers securities under the commitment, the Fund realizes a gain or a loss from the sale of the securities based upon the unit price established at the date the commitment was entered into.

Mortgage dollar roll transactions

The Fund may engage in mortgage dollar roll transactions with respect to mortgage-backed securities issued by Government National Mortgage Association (GNMA), Federal National Mortgage Association (FNMA) and Federal Home Loan Mortgage Corporation (FHLMC). In a mortgage dollar roll transaction, the Fund sells a mortgage-backed security to a financial institution, such as a bank or broker-dealer and simultaneously agrees to repurchase a substantially similar security from the institution at a later date at an agreed upon price. The mortgage-backed securities that are repurchased will bear the same interest rate as those sold, but generally will be collateralized by different pools of mortgages with different pre-payment histories. During the roll period, the Fund foregoes principal and interest paid on the securities. The Fund is compensated by the difference between the current sales price and the forward price for the future purchase as well as by the earnings on the cash proceeds of the initial sale. Mortgage dollar rolls may be renewed without physical delivery of the securities subject to the contract. The Fund accounts for the dollar roll transactions as purchases and sales.

Security transactions and income recognition

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

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

Distributions to shareholders

Distributions to shareholders from net investment income are accrued daily and paid monthly. Distributions from net realized gains, if any, are recorded on the ex-dividend date. Such distributions are determined in conformity with income tax regulations, which may differ from generally accepted accounting principles.


Undistributed		Accumulated Net
Net Investment		Realized Losses
Income		on Investments
$	565,106	$	(565,106	)

Federal and other taxes



Notes to Financial Statements		Wells Fargo Advantage VT Total Return Bond Fund 35

As of December 31, 2010, the Fund had estimated net capital loss carryforwards, which are available to offset future net realized capital gains, in the amount of $6,658,604 with $1,963,738 expiring in 2015, and $4,694,866 expiring in 2016.

As of December 31, 2010, the Fund had $153,046 of current year deferred post-October capital losses, which will be treated as realized for tax purposes on the first day of the succeeding year.

3. FAIR VALUATION MEASUREMENTS

§		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 securities are not necessarily an indication of the risk associated with investing in those securities.

As of December 31, 2010, the inputs used in valuing the Fund’s assets, which are carried at fair value, were as follows:


			Significant Other		Significant
			Observable		Unobservable
	Quoted Prices		Inputs		Inputs
Investments in Securities	(Level 1)		(Level 2)		(Level 3)		Total
Agency securities	$	0	$	44,835,509	$	603,883	$	45,439,392
Asset-backed securities		0		8,127,920		0		8,127,920
Collateralized mortgage obligations		0		12,318,718		272,078		12,590,796
Corporate bonds and notes		0		15,438,693		0		15,438,693
Yankee corporate bonds		0		5,118,844		0		5,118,844
Yankee government bonds		0		1,503,796		0		1,503,796
Municipal bonds and notes		0		756,038		0		756,038
U.S. Treasury securities		9,503,561		0		0		9,503,561
Short-term investments
Corporate bonds and notes		0		0		553,059		553,059
Investment companies		1,436,296		110,017		0		1,546,313
	$	10,939,857	$	88,209,535	$	1,429,020	$	100,578,412

Further details on the major security types listed above can be found in the Fund’s Portfolio of Investments.


			Significant Other			Significant
			Observable			Unobservable
	Quoted Prices		Inputs			Inputs
	(Level 1)		(Level 2)			(Level 3)		Total
Investments in TBA sale commitments	$	0	$	(1,949,594	)	$	0	$	(1,949,594	)



36 Wells Fargo Advantage VT Total Return Bond Fund		Notes to Financial Statements

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


				Collateralized		Corporate
	Agency			Mortgage		bonds and
	Securities			obligation		notes			Total
Balance as of December 31, 2009	$	0		$	0	$	590,286		$	590,286
Realized gains (losses)		(1,692	)		0		0			(1,692	)
Change in unrealized gains (losses)		189			5,453		135,566			141,208
Purchases		789,434			266,625		0			1,056,059
Sales		(184,048	)		0		(172,793	)		(356,841	)
Transfers in of Level 3		0			0		0			0
Transfers out of Level 3		0			0		0			0
Balance as of December 31, 2010	$	603,883		$	272,078	$	553,059		$	1,429,020

Change in unrealized gains (losses) included in earnings relating to securities still held at December 31, 2010	$	189		$	5,453	$	45,288		$	50,930

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

Investment advisory fees

The Trust has entered into an investment advisory contract with Funds Management an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”). The investment adviser is responsible for implementing investment policies and guidelines and for supervising the investment sub-adviser, who is responsible for day-to-day portfolio management of the Fund.

Pursuant to the contract, Funds Management is paid an annual investment advisory fee starting at 0.40% declining to 0.30% as the average daily net assets of the Fund increase. Prior to July 19, 2010, the Fund paid an annual investment advisory fee which started at 0.40% and declined to 0.30% as the average daily net assets of the Fund increased. For the year ended December 31, 2010, the investment advisory fee was equivalent to an annual rate of 0.40% of the Fund’s average daily net assets.

Funds Management may retain the services of certain investment sub-advisers to provide daily portfolio management to the Fund. The fees related to investment sub-advisory services are borne directly by the investment adviser and do not increase the overall fees paid by the Fund to the investment adviser. Wells Capital Management Incorporated (“Wells Capital Management”), an affiliate of Funds Management, is the investment sub-adviser to the Fund and is paid a fee by the investment adviser at an annual rate starting at 0.20% and declining to 0.10% as the average daily net assets of the Fund increase.

Administration and transfer agent fees


		Administration Fees
		(% of Average
	Average Daily Net Assets	Daily Net Assets)
Fund level	First $5 billion		0.05	%
	Next $5 billion		0.04
	Over $10 billion		0.03

Class 2	All asset levels		0.08

Funds Management has contractually waived and/or reimbursed investment advisory and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund.



Notes to Financial Statements		Wells Fargo Advantage VT Total Return Bond Fund 37

Distribution fees

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, exclusive of short-term securities (securities with maturities of one year or less at purchase date) for the year ended December 31, 2010, were as follows:


Purchases at Cost		Sales Proceeds
U.S. Government	Non-U.S. Government	U.S. Government	Non-U.S. Government
$671,297,184	$90,965,625	$678,657,816	$107,985,059

6. ACQUISITION

Effective at the close of business on July 16, 2010, the Fund acquired the net assets of Evergreen VA Core Bond Fund. The purpose of the transaction was to combine two funds with similar investment objectives and strategies. The Fund renamed its existing single class share as Class 2. The acquisition was accomplished by a tax-free exchange of all of the shares of Evergreen VA Core Bond Fund for 2,976,311 shares of the Fund valued at $31,182,320 at an exchange ratio of 0.83 for Class 2 shares. Shareholders holding Class 2 shares of Evergreen VA Core Bond Fund received Class 2 shares of the Fund in the reorganization. The investment portfolio of Evergreen VA Core Bond Fund with a fair value of $31,099,786, identified cost of $30,533,822 and unrealized gains of $565,964 at July 16, 2010 were the principal assets acquired by the Fund. The aggregate net assets of Evergreen VA Core Bond Fund and the Fund immediately prior to the acquisition were $31,182,320 and $58,161,686, respectively. The aggregate net assets of the Fund immediately after the acquisition were $89,344,006. For financial reporting purposes, assets received and shares issued by the Fund were recorded at fair value; however, the cost basis of the investments received from Evergreen VA Core Bond Fund was carried forward to align ongoing reporting of the Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.

Assuming the acquisition had been completed January 1, 2010, the beginning of the annual reporting period for the Fund, the Fund’s pro forma results of operations for the year ended December 31, 2010 would have been:


Net investment income	$	2,883,307
Net realized and unrealized gains (losses) on investments	$	3,976,870
Net increase in net assets resulting from operations	$	6,860,177

Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of Evergreen VA Core Bond Fund that have been included in the Fund’s Statement of Operations since July 19, 2010.

7. BANK BORROWINGS

For the year ended December 31, 2010, there were no borrowings by the Fund under the agreement.



38 Wells Fargo Advantage VT Total Return Bond Fund		Notes to Financial Statements

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended December 31, 2010 and December 31, 2009 were as follows:


	Year ended December 31,
	2010		2009
Ordinary Income	$	4,511,331	$	4,528,721

As of December 31, 2010, the components of distributable earnings on a tax basis were as follows:


Undistributed		Undistributed
Ordinary		Long-Term		Unrealized		Capital Loss
Income		Gain		Gains		Carryforward*
$	2,667,810	$	707,806	$	469,240	$	(6,811,650	)


*		This amount includes the post-October loss, which will reverse on the first day of the following fiscal year.

9. INDEMNIFICATION



Report of Independent Registered Public Accounting Firm		Wells Fargo Advantage VT Total Return Bond Fund 39

BOARD OF TRUSTEES AND SHAREHOLDERS OF
WELLS FARGO VARIABLE TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Advantage VT Total Return Bond Fund (the “Fund”), one of the funds constituting the Wells Fargo Variable Trust, as of December 31, 2010, and the related statement of operations for the year then ended, statements of changes in net assets for each of the years in the two year period then ended, and the financial highlights for each of the years in the five year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Advantage VT Total Return Bond Fund as of December 31, 2010, the results of its operations for the year then ended, changes in its net assets for each of the years in the two year period then ended, and the financial highlights for each of the years in the five year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts
February 25, 2011


40 Wells Fargo Advantage VT Total Return Bond Fund		Other Information (Unaudited)

PROXY VOTING INFORMATION


Other Information (Unaudited)		Wells Fargo Advantage VT Total Return Bond Fund 41

PORTFOLIO HOLDINGS INFORMATION

BOARD OF TRUSTEES

Independent Trustees


Name and	Position Held and
Year of Birth	Length of Service	Principal Occupations During Past Five Years	Other Directorships
Peter G. Gordon (Born 1942)	Trustee, since 1998; Chairman, since 2005 (Lead Trustee since 2001)	Co-Founder, Chairman, President and CEO of Crystal Geyser. Water Company. Trustee Emeritus, Colby College.	Asset Allocation Trust


Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. 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. Mr. Harris is a certified public accountant.	CIGNA Corporation; Deluxe Corporation; Asset Allocation Trust

Judith M. Johnson (Born 1949)	Trustee, since 2008	Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant.	Asset Allocation Trust

Leroy Keith, Jr. (Born 1939)	Trustee, since 2010	Chairman, Bloc Global Services (development and construction), Trustee of the Evergreen Funds from 1983 to 2010. Former Managing Director, Almanac Capital Management (commodities firm), former Partner, Stonington Partners, Inc. (private equity fund), former Director, Obagi Medical Products Co. and former Director, Lincoln Educational Services.	Trustee, Virtus Fund Complex (consisting of 45 portfolios as of 12/31/10); Director, Diversapack Co. (packaging company); Asset Allocation Trust

David F. Larcker (Born 1951)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of Corporate Governance Research Program and Co-Director of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust


42 Wells Fargo Advantage VT Total Return Bond Fund		Other Information (Unaudited)


Name and	Position Held and
Year of Birth	Length of Service	Principal Occupations During Past Five Years	Other Directorships
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor and Chair of the Department of Insurance and Risk Management, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust

Timothy J. Penny (Born 1951)	Trustee, since 1996	President and CEO of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust

Michael S. Scofield (Born 1943)	Trustee, since 2010	Currently serves on the Investment Company Institute’s Board of Governors and Executive Committee as well the Independent Director’s Counsel Board of Governors and Executive Committee. Former Chairman of the Independent Directors Counsel. Trustee of the Evergreen Funds from 1984 to 2010. Retired Attorney, Law Offices of Michael S. Scofield and former Director and Chairman, Branded Media Corporation (multi-media branding company).	Asset Allocation Trust

Donald C. Willeke (Born 1940)	Trustee, since 1996	Principal of the law firm of Willeke & Daniels. General Counsel of the Minneapolis Employees Retirement Fund from 1984 until its consolidation into the Minnesota Public Employees Retirement Association on June 30, 2010.	Asset Allocation Trust

Officers


Name and	Position Held and
Year of Birth	Length of Service	Principal Occupations During Past Five Years
Karla M. Rabusch (Born 1959)	President, since 2003	Executive Vice President of Wells Fargo Bank, N.A. and President of Wells Fargo Funds Management, LLC since 2003. Senior Vice President and Chief Administrative Officer of Wells Fargo Funds Management, LLC from 2001 to 2003.

C. David Messman (Born 1960)	Secretary, since 2000; Chief Legal Counsel, since 2003	Senior Vice President and Secretary of Wells Fargo Funds Management, LLC since 2001. Vice President and Managing Counsel of Wells Fargo Bank, N.A. since 1996.

Kasey Phillips (Born 1970)	Treasurer, since 2009	Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2006 to 2010. Treasurer of the Evergreen Funds from 2005 to 2010. Vice President and Assistant Vice President of Evergreen Investment Services, Inc. from 1999 to 2006.

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. Assistant Vice President of Evergreen Investment Services, Inc. from 2004 to 2008. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.

Jeremy DePalma (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. Vice President, Evergreen Investment Services, Inc. from 2004 to 2007. Assistant Vice President, Evergreen Investment Services, Inc. from 2000 to 2004 and the head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.


Other Information (Unaudited)		Wells Fargo Advantage VT Total Return Bond Fund 43


Name and	Position Held and
Year of Birth	Length of Service	Principal Occupations During Past Five Years
Debra Ann Early (Born 1964)	Chief Compliance Officer, since 2007	Chief Compliance Officer of Wells Fargo Funds Management, LLC since 2007. Chief Compliance Officer of Parnassus Investments from 2005 to 2007. Chief Financial Officer of Parnassus Investments from 2004 to 2007 and Senior Audit Manager of PricewaterhouseCoopers LLP from 1998 to 2004.


1.		The Statement of Additional Information includes additional information about the Fund’s Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the Fund’s Web site at www.wellsfargo.com/advantagefunds.


44 Wells Fargo Advantage VT Total Return Bond Fund		List of Abbreviations

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


ABAG		— Association of Bay Area Governments
ADR		— American Depositary Receipt
ADS		— American Depository Shares
AMBAC		— American Municipal Bond Assurance Corporation
AMT		— Alternative Minimum Tax
ARM		— Adjustable Rate Mortgages
AUD		— Australian Dollar
BART		— Bay Area Rapid Transit
BRL		— Brazil Real
CAD		— Canadian Dollar
CDA		— Community Development Authority
CDO		— Collateralized Debt Obligation
CDSC		— Contingent Deferred Sales Charge
CGIC		— Capital Guaranty Insurance Company
CGY		— Capital Guaranty Corporation
CHF		— Swiss Franc
CIFG		— CDC (Caisse des Dépôts et Consignations) IXIS Financial Guarantee
COP		— Certificate of Participation
CP		— Commercial Paper
CTF		— Common Trust Fund
DEM		— Deutsche Mark
DKK		— Danish Krone
DW&P		— Department of Water & Power
DWR		— Department of Water Resources
ECFA		— Educational & Cultural Facilities Authority
EDFA		— Economic Development Finance Authority
ETET		— Eagle Tax-Exempt Trust
ETF		— Exchange-Traded Fund
EUR		— Euro
FFCB		— Federal Farm Credit Bank
FGIC		— Financial Guaranty Insurance Corporation
FHA		— Federal Housing Authority
FHAG		— Federal Housing Agency
FHLB		— Federal Home Loan Bank
FHLMC		— Federal Home Loan Mortgage Corporation
FNMA		— Federal National Mortgage Association
FRF		— French Franc
FSA		— Farm Service Agency
GBP		— Great British Pound
GDR		— Global Depositary Receipt
GNMA		— Government National Mortgage Association
GO		— General Obligation
HCFR		— Healthcare Facilities Revenue
HEFA		— Health & Educational Facilities Authority
HEFAR		— Higher Education Facilities Authority Revenue
HFA		— Housing Finance Authority
HFFA		— Health Facilities Financing Authority
HKD		— Hong Kong Dollar
HUD		— Housing & Urban Development
HUF		— Hungarian Forint
IDA		— Industrial Development Authority
IDAG		— Industrial Development Agency
IDR		— Industrial Development Revenue
IEP		— Irish Pound
JPY		— Japanese Yen
KRW		— Republic of Korea Won
LIBOR		— London Interbank Offered Rate
LLC		— Limited Liability Company
LLP		— Limited Liability Partnership
LOC		— Letter of Credit
LP		— Limited Partnership
MBIA		— Municipal Bond Insurance Association
MFHR		— Multi-Family Housing Revenue
MFMR		— Multi-Family Mortgage Revenue
MMD		— Municipal Market Data
MTN		— Medium Term Note
MUD		— Municipal Utility District
MXN		— Mexican Peso
MYR		— Malaysian Ringgit
NATL-RE		— National Public Finance Guarantee Corporation
NLG		— Netherlands Guilder
NOK		— Norwegian Krone
NZD		— New Zealand Dollar
PCFA		— Pollution Control Finance Authority
PCR		— Pollution Control Revenue
PFA		— Public Finance Authority
PFFA		— Public Facilities Financing Authority
plc		— Public Limited Company
PLN		— Polish Zloty
PSFG		— Public School Fund Guaranty
R&D		— Research & Development
RDA		— Redevelopment Authority
RDFA		— Redevelopment Finance Authority
REITS		— Real Estate Investment Trusts
SEK		— Swedish Krona
SFHR		— Single Family Housing Revenue
SFMR		— Single Family Mortgage Revenue
SGD		— Singapore Dollar
SKK		— Slovakian Koruna
SLMA		— Student Loan Marketing Association
SPDR		— Standard & Poor’s Depositary Receipts
STIT		— Short-Term Investment Trust
TBA		— To Be Announced
TRAN		— Tax Revenue Anticipation Notes
TRY		— Turkish Lira
USD		— United States Dollar
XLCA		— XL Capital Assurance
ZAR		— South African Rand

This page is intentionally left blank.

More information about Wells Fargo Advantage Funds is available free upon request. To obtain literature, please write, e-mail, visit the Funds’ Web site, or call:

Wells Fargo Advantage Funds
P.O. Box 8266
Boston, MA 02266-8266
E-mail: wfaf@wellsfargo.com

Web site: www.wellsfargo.com/advantagefunds
Individual Investors: 1-800-222-8222
Retail Investment Professionals: 1-888-877-9275
Institutional Investment Professionals: 1- 866-765-0778

Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Advantage Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the Funds. The Funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA/SIPC, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED ▪ NO BANK GUARANTEE ▪ MAY LOSE VALUE


© 2011 Wells Fargo Funds Management, LLC. All rights reserved.		www.wellsfargo.com/advantagefunds		200921 02-11 AVT9/AR155 12-10

ITEM 2. CODE OF ETHICS

As of the end of the period, December 31, 2010, Wells Fargo Variable Trust has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its President and Treasurer. A copy of the code of ethics is filed as an exhibit to this Form N-CSR.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT

The Board of Trustees of Wells Fargo Variable Trust has determined that Judith Johnson is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Mrs. Johnson is independent for purposes of Item 3 of Form N-CSR.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES

(a)
Audit Fees — Provided below are the aggregate fees billed for the fiscal years ended December 31, 2009 and December 31, 2010 for professional services rendered by the principal accountant for the audit of the Registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements.

For the fiscal years ended December 31, 2009 and December 31, 2010, the Audit Fees were $261,090 and $284,730, respectively.

(b)
Audit-Related Fees — There were no audit-related fees incurred for the fiscal years ended December 31, 2009 and December 31, 2010 for assurance and related services by the principal accountant for the Registrant.

(c)
Tax Fees — Provided below are the aggregate fees billed for the fiscal years ended December 31, 2009 and December 31, 2010 for professional services rendered by the principal accountant for the Registrant for tax compliance, tax advice, and tax planning.

For the fiscal years ended December 31, 2009 and December 31, 2010, the Tax Fees were $23,640 and $21,020, respectively. The incurred Tax Fees are comprised of tax preparation and consulting services.

(d)
All Other Fees — There were no other fees incurred for the fiscal years ended December 31, 2009 and December 31, 2010.

(e)(1)
The Chairman of the Audit Committees is authorized to pre-approve: (1) audit services to the mutual funds of Wells Fargo Variable Trust; (2) non-audit tax or compliance consulting or training services provided to the Funds by the independent auditors (“Auditors”) if the fees for any particular engagement are not anticipated to exceed $50,000; and (3) non-audit tax or compliance consulting or training services provided by the Auditors to a Fund’s investment adviser and its controlling entities (where pre-approval is required because the engagement relates directly to the operations and financial reporting of the Fund) if the fee to the Auditors for any particular engagement is not anticipated to exceed $50,000. For any such pre-approval sought from the Chairman, Management shall prepare a brief description of the proposed services. If the Chairman approves of such service, he or she shall sign the statement prepared by Management. Such written statement shall be presented to the full Committees at their next regularly scheduled meetings.

(e)(2)
Not Applicable.

(f)
Not Applicable.

(g)
Provided below are the aggregate non-audit fees billed for the fiscal years ended December 31, 2009 and December 31, 2010, by the principal accountant for services rendered to the Registrant, and rendered to the Registrant’s investment adviser, and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the Registrant.

For the fiscal year ended December 31, 2009, the Registrant incurred non-audit fees in the amount of $70,000. The non-audit fees consist of SAS70 control reviews of Wells Fargo Bank, N.A.

For the fiscal year ended December 31, 2009, the Registrant’s investment adviser incurred non-audit fees in the amount of $45,000. The non-audit fees relates to examination of securities pursuant to rule 206 (4)-2 under the Investment Advisors Act of 1940.

(h)
The Registrant’s audit committee of the board of directors has determined that non-audit services rendered to the registrant’s investment adviser, that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of the Regulation S-X, does not compromise the independence of the principal accountant.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS

Not applicable.

ITEMS 6. SCHEDULE OF INVESTMENTS

The Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this Form.


ITEM 7.		DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not applicable.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not applicable.


ITEM 9.		PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASES

Not applicable.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

The Governance Committee (the “Committee”) of the Board of Trustees of the registrant (the “Trust”) has adopted procedures by which a shareholder of any series of the Trust may submit properly a nominee recommendation for the Committee’s consideration.

The shareholder must submit any such recommendation (a “Shareholder Recommendation”) in writing to the Trust, to the attention of the Trust’s Secretary, at the address of the principal executive offices of the Trust.

The Shareholder Recommendation must be delivered to, or mailed and received at, the principal executive offices of the Trust not less than forty-five (45) calendar days nor more than seventy-five (75) calendar days prior to the date of the Committee meeting at which the nominee would be considered.

The Shareholder Recommendation must include: (i) a statement in writing setting forth (A) the name, age, date of birth, business address, residence address and nationality of the person recommended by the shareholder (the “candidate”); (B) the series (and, if applicable, class) and number of all shares of the Trust owned of record or beneficially by the candidate, as reported to such shareholder by the candidate; (C) any other information regarding the candidate called for with respect to director nominees by paragraphs (a), (d), (e) and (f) of Item 401 of Regulation S-K or paragraph (b) of Item 22 of Rule 14a-101 (Schedule 14A) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), adopted by the Securities and Exchange Commission (or the corresponding provisions of any regulation or rule subsequently adopted by the Securities and Exchange Commission or any successor agency applicable to the Trust); (D) any other information regarding the candidate that would be required to be disclosed if the candidate were a nominee in a proxy statement or other filing required to be made in

connection with solicitation of proxies for election of directors pursuant to Section 14 of the Exchange Act and the rules and regulations promulgated thereunder; and (E) whether the recommending shareholder believes that the candidate is or will be an “interested person” of the Trust (as defined in the Investment Company Act of 1940, as amended) and, if not an “interested person,” information regarding the candidate that will be sufficient for the Trust to make such determination; (ii) the written and signed consent of the candidate to be named as a nominee and to serve as a Trustee if elected; (iii) the recommending shareholder’s name as it appears on the Trust’s books; (iv) the series (and, if applicable, class) and number of all shares of the Trust owned beneficially and of record by the recommending shareholder; and (v) a description of all arrangements or understandings between the recommending shareholder and the candidate and any other person or persons (including their names) pursuant to which the recommendation is being made by the recommending shareholder. In addition, the Committee may require the candidate to interview in person and furnish such other information as it may reasonably require or deem necessary to determine the eligibility of such candidate to serve as a Trustee of the Trust.

ITEM 11. CONTROLS AND PROCEDURES

(a) The President and Treasurer have concluded that the Wells Fargo Variable Trust (the “Trust”) disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) provide reasonable assurances that material information relating to the Trust is made known to them by the appropriate persons based on their evaluation of these controls and procedures as of a date within 90 days of the filing of this report.

(b) There were no significant changes in the Trust’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the second quarter of the period covered by this report that materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

ITEM 12. EXHIBITS

(a)(1) Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as Exhibit 10a.

(a)(2) Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.

(a)(3) Not applicable.

(b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is filed and attached hereto as Exhibit 99.906CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	Wells Fargo Variable Trust
	By:	/s/ Karla M. Rabusch
		Karla M. Rabusch
		President

	Date: February 25, 2011

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.



	By:	/s/ Karla M. Rabusch
		Karla M. Rabusch
		President

		Date: February 25, 2011


	By:	/s/ Kasey L. Phillips
		Kasey L. Phillips
		Treasurer

		Date: February 25, 2011

Position Held and

Year of Birth

Length of Service

Principal Occupations During Past Five Years

Debra Ann Early
(Born 1964)

Chief Compliance Officer,
since 2007

Chief Compliance Officer of Wells Fargo Funds Management, LLC since 2007. Chief Compliance Officer of Parnassus Investments from 2005 to 2007. Chief Financial Officer of Parnassus Investments from 2004 to 2007 and Senior Audit Manager of PricewaterhouseCoopers LLP from 1998 to 2004.