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

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-09255

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: 800-222-8222

Date of fiscal year end: December 31

Registrant is making a filing for 9 of its series:

Wells Fargo VT Discovery Fund, Wells Fargo VT Index Asset Allocation Fund, Wells Fargo VT International Equity Fund, Wells Fargo VT Intrinsic Value Fund, Wells Fargo VT Omega Growth Fund, Wells Fargo VT Opportunity Fund, Wells Fargo VT Small Cap Growth Fund, Wells Fargo VT Small Cap Value Fund, and Wells Fargo VT Total Return Bond Fund.

Date of reporting period: December 31, 2015

ITEM 1. REPORT TO STOCKHOLDERS

Annual Report

December 31, 2015

Wells Fargo VT Discovery Fund

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Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	8
Portfolio of investments	9
Financial statements
Statement of assets and liabilities	13
Statement of operations	14
Statement of changes in net assets	15
Financial highlights	16
Notes to financial statements	17
Report of independent registered public accounting firm	22
Other information	23
List of abbreviations	26

The views expressed and any forward-looking statements are as of December 31, 2015, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Funds Management, LLC. Discussions of individual securities, or the markets generally, or any Wells Fargo Fund are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements. The views expressed are subject to change at any time in response to changing circumstances in the market. Wells Fargo Funds Management, LLC and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

2 Wells Fargo VT Discovery Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Funds

Although U.S. economic data generally improved during the period, ongoing global turmoil somewhat tempered

economic growth.

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo VT Discovery Fund for the 12-month period that ended December 31, 2015. The broad U.S. stock market returned 0.48% for the reporting period (as measured by the Russell 3000® Index).¹ Although U.S. economic data generally improved during the period, ongoing global turmoil somewhat tempered economic growth. Outside the U.S., many economies and markets faced ongoing challenges, such as the negative effects of China’s slowing economy and declining prices for oil, natural gas, and other commodities.

In the first quarter of 2015, U.S. stocks delivered positive results overall; major markets elsewhere generally rallied.

U.S. large-, mid-, and small-cap stocks tended to move similarly during the quarter until early March, when results began to diverge by market capitalization. Larger caps slipped that month as investor concern grew over the strengthening U.S. dollar’s potentially negative effect on the profits of large U.S. multinational firms; stocks of small and midsize companies, which tend to be less affected by movements in the dollar, performed better. A gradually improving U.S. economy supported positive stock results. The labor market continued growing, along with personal income and consumer confidence. For U.S. businesses, the quarter’s data were mixed; while many companies reported strong earnings, other data indicated potential weakening in manufacturing. Elsewhere in the world, major markets enjoyed positive returns spurred by accommodative monetary policies from major central banks and signs of improvement in some struggling economies.

Globally, stock markets experienced heightened volatility during the second quarter of 2015.

The broad U.S. stock market fluctuated widely during this quarter, eventually eking out a 0.14% gain (as measured by the Russell 3000 Index®). Larger stocks at times were pressured by ongoing investor concerns over the potentially negative effects on U.S. companies of a strengthening U.S. dollar and financially troubled overseas economies. The U.S. economy picked up traction during the quarter; consumer spending improved, construction and new-home sales enjoyed positive trends, and jobs growth remained a bright spot. Federal Reserve (Fed) officials, who continued to keep interest rates low while waiting for the U.S. jobs market to sufficiently improve and for inflation to approach their 2% target, made clear they could take action soon. Throughout the quarter, markets outside the U.S. remained volatile, largely due to uncertainty over the potential impact of financial challenges in other locations—most notably in Greece and Puerto Rico. Questions over slower growth in China also worried investors.

In the third quarter of 2015, China’s slowdown took a toll on U.S. and international markets.

U.S. stocks fluctuated significantly in the quarter as investors worried about the impact on the U.S. of China’s slowing growth. The broad U.S. stock market fell 7.25%, as measured by the Russell 3000 Index®. A number of positive economic indicators released during the quarter suggested the U.S. economy remained solid. However, the strengthening U.S. dollar coupled with ongoing global economic turmoil continued to hinder the economy. Although many investors believed the Fed would raise the federal funds rate during the quarter, at its September meeting the Fed left the rate unchanged. This decision fueled uncertainty about the U.S. economy’s stamina to remain healthy while facing the negative effects of troubles elsewhere in the world. One week later, Fed Chair

¹  The Russell 3000 Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market. You cannot invest directly in an index.

Letter to shareholders (unaudited) Wells Fargo VT Discovery Fund 3

Janet Yellen reassured investors that, barring unpleasant surprises, the Fed still intended to raise the rate in 2015. International markets were more volatile than the domestic market and delivered even weaker quarterly results. Investors’ anxiety was driven largely by China’s weakened economy. Because China is the world’s largest importer of many commodities, a number of emerging markets—key commodities exporters—struggled under the strains of reduced demand for commodities and lower prices for the commodities sold.

The U.S. stock market rose in the fourth quarter of 2015 despite ongoing concerns.

The broad U.S. stock market bounced back in the fourth quarter, ending with a 6.27% quarterly return (as measured by the Russell 3000 Index^®). Stock markets outside the U.S. failed to keep pace with the domestic market as economic concerns, including China’s ongoing slowdown, continued to affect many countries worldwide. U.S. economic data released during the quarter indicated the economy remained solid, with modest growth. However, the strong U.S. dollar and global economic turmoil continued their drag on the economy. In December, the Fed, as expected, slightly raised its target short-term interest rate to between 0.25% and 0.50% after keeping it near zero for seven years. The move, which had been well telegraphed by the Fed for months, reflected confidence in the U.S. economy’s ability to stay healthy with less central-bank support. The Fed also made clear that future interest-rate increases will be gradual.

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

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

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

Sincerely,

Karla M. Rabusch

President

Wells Fargo Funds

Experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future.

Notice to shareholders

At a meeting held August 11-12, 2015, the Board of Trustees of the Fund approved a change in the name of the Fund whereby the word “Advantage” was removed from its name, effective December 15, 2015.

For further information about your Fund, contact your investment professional, visit our website at wellsfargofunds.com, or call us directly at 1-800-260-5969. We are available 24 hours a day, 7 days a week.

4 Wells Fargo VT Discovery Fund Performance highlights (unaudited)

The Fund is currently closed to new insurance companies.¹

Investment objective

The Fund seeks long-term capital appreciation.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Thomas J. Pence, CFA^®

Michael T. Smith, CFA^®

Chris Warner, CFA^®

Average annual total returns (%) as of December 31, 2015

									Expense ratios2 (%)
	Inception date	1 year			5 year		10 year		Gross		Net3
Class 2	5-8-1992		(1.46	)		10.95		9.57		1.14		1.14
Russell 2500™ Growth Index4	–		(0.19	)		11.43		8.49		–		–

Figures quoted represent past performance, which is no guarantee of future results. 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 and assumes the reinvestment of dividends and capital gains. Current month-end performance is available by calling 1-800-260-5969. Performance figures of the Fund do not reflect fees charged pursuant to the terms of variable life insurance policies and variable annuity contracts. If fees had been reflected, performance would have been lower.

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

Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Smaller-company stocks tend to be more volatile and less liquid than those of larger companies. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to foreign investment risk. Consult the Fund’s prospectus for additional information on these and other risks.

Please 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.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo VT Discovery Fund 5

Growth of $10,000 investment as of December 31, 2015⁵

¹  Please see the Fund’s current Statement of Additional Information for further details.

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

³  The manager has committed through April 30, 2016, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver, excluding certain expenses, at 1.15% for Class 2. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the cap. Without this cap, the Fund’s returns would have been lower.

⁴  The Russell 2500^TM Growth Index measures the performance of those Russell 2500 companies with higher price/book ratios and higher forecasted growth values. You cannot invest directly in an index.

⁵  The chart compares the performance of Class 2 shares for the most recent ten years with the Russell 2500^TM Growth Index. The chart assumes a hypothetical $10,000 investment and reflects all operating expenses of the Fund. Performance figures of the Fund do not reflect fees charged pursuant to the terms of variable life insurance policies and variable annuity contracts.

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

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

6 Wells Fargo VT Discovery Fund Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

n The Fund underperformed its benchmark, the Russell 2500^TM Growth Index, for the 12-month period that ended December 31, 2015.

n The Fund’s relative performance was most challenged by positioning in the health care sector.

n Effective stock selection in the information technology (IT) sector contributed positively to the Fund’s results.

Overall, 2015 was a turbulent year for the U.S. stock market and the global economy.

A number of icebergs that surfaced in 2015 made navigating the U.S. stock market a tricky proposition. The first iceberg, economic weakness in China, continued to mount throughout the year. In our view, investors’ concerns over the depth of China’s economic slowdown and the effectiveness of its policy responses largely drove the defensive tone evident in the U.S. stock market during much of 2015. Worries about the negative impact of China’s slowdown coupled with OPEC’s decision not to reduce oil production further aggravated the supply/demand imbalance for oil, causing commodity prices to continue the tumble that began in the second half of 2014. 2015’s second iceberg, the U.S. Federal Reserve’s (Fed’s) long-anticipated change in monetary policy, finally occurred in December 2015. With uncertainty over timing of the rate hike resolved, stocks initially rallied. However, volatility soon resumed as investors faced a new concern: domestic economic data that continued to show a clear divergence in strength between manufacturing and consumer activity. While geopolitical risks have been prevalent for years, the size of this iceberg grew considerably in the wake of November 2015’s terror attacks in Paris. In fact, rapid and often significant fluctuations in investor risk tolerance were visible at times during 2015. The risk of geopolitical events, which are impossible to predict, has contributed to these swings in investor sentiment; recent events appear to have heightened this sensitivity.

Ten largest holdings (%) as of December 31, 20156
ServiceMaster Global Holdings Incorporated	3.58
Zayo Group Holdings Incorporated	2.65
CoStar Group Incorporated	2.46
Tyler Technologies Incorporated	2.13
Vail Resorts Incorporated	2.06
Tableau Software Incorporated Class A	2.04
SEI Investments Company	1.90
KAR Auction Services Incorporated	1.89
Align Technology Incorporated	1.88
Bright Horizons Family Solutions Incorporated	1.87

Portfolio construction is focused on three types of growth companies.

We believe that, in any market environment, a portfolio’s construction must balance risk and return. We strive to provide this balance through a portfolio composed of three distinct types of growth companies. Core growth holdings (typically 40%–50% of assets) are companies that we believe have stable growth records, proven management teams, and relatively low volatility. Developing situations (typically 40%–50% of assets) are firms we believe are entering a period of accelerated growth driven by a new product, business plan, or management team. The remainder of the portfolio (typically 5%–10% of assets) is dedicated to valuation

opportunities—holdings we believe carry above-average growth potential and relatively high volatility. Our conviction level drives each stock’s relative weight in the portfolio. This direct relationship helps us position our highest-conviction ideas to potentially make a significant impact on performance.

Positioning in the health care sector weighed on the Fund’s relative performance.

The innovative yet volatile biotechnology industry displayed the sector’s most apparent weakness. Clovis Oncology, Incorporated, received tough news about its initially promising lung cancer treatment; clinical data produced after the FDA moved the drug to fast-track status showed a stunning drop in its positive-response rate. Clovis’s stock dropped precipitously on the news because the much-lower level of effectiveness made the drug a weak competitor versus an existing FDA-approved drug manufactured by AstraZeneca PLC. We sold the Fund’s position in Clovis during the period. Envision Healthcare Holdings, Incorporated, was another notable Fund detractor. Envision—a leading provider of services to the U.S. health care system with an emphasis on solutions for clinics, hospitals, and emergency rooms—had been well positioned when the Affordable Care Act (ACA) led to increased insurance coverage and consumer demand for health care. We believed Envision potentially could consolidate some of this fragmented industry. However, health care utilization volumes took a surprising fall during 2015; early adopters of the ACA appeared to be slowing in usage, and growth in new users was disappointing. These factors, along with pricing pressures on new customer contracts, drove a sharp correction in the stock.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo VT Discovery Fund 7

Holdings in the IT sector contributed positively to results.

Within the IT sector, stock selection delivered the top contribution to Fund performance for the period, led by results among software-as-a-service providers. Tyler Technologies, Incorporated, which develops applications for use by local governments and court systems, enjoyed a strong run of performance as the improving economy led to increased local tax revenue and greater demand for its products. Palo Alto Networks, Incorporated, a leader in IT security and beneficiary of a boom in data-protection spending by businesses, also performed strongly as its popular enterprise-security offering continued to garner market share. The Fund’s position in Palo Alto Networks was sold during the period.

Sector distribution as of December 31, 2015⁷

We look forward to 2016.

Like a lingering storm system, many of the same issues that clouded the U.S. stock market in 2015 remain in place. Globally, growth remains questionable as China works to reignite its economy, European economies are fragile, geopolitical risk is elevated, and the negative effects of a prolonged commodity-price downturn continue. The timing and impact of further Fed action remain unknown. These issues may lead to waves of increased market volatility. We believe the best way for us to navigate this volatility is to remain focused on the

consistent execution of our investment process. Like any seasoned navigator, however, tactical adjustments could be made. One adjustment we have made is to increase the secular-growth component within the Fund. In an economic environment in which secular growth remains scarce, investors may be drawn to firms that tend to be somewhat insulated from global economic currents. Industries ripe with secular growth include e-commerce, cloud computing, network security, specialized software, and mobile/credit card payment processing. Also, to better withstand potential waves of volatility, we have added ballast by increasing the Fund’s exposure to companies with good earnings visibility. We believe these adjustments may provide even greater stability as the Fund navigates the inevitable stock-market icebergs that could lie ahead. While it likely may not be a smooth ride, we remain optimistic that 2016 could be a successful voyage.

Please see footnotes on page 5.

8 Wells Fargo VT Discovery Fund Fund expenses (unaudited)

As a shareholder of the Fund, you incur ongoing costs, including management fees, distribution (12b-1) 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, 2015 to December 31, 2015.

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 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 separate account charges assessed by participating insurance companies were included, your costs would have been higher.

	Beginning account value 7-1-2015		Ending account value 12-31-2015		Expenses paid during the period¹		Net annualized expense ratio
Class 2
Actual	$	1,000.00	$	896.62	$	5.50		1.15	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.41	$	5.85		1.15	%

¹  Expenses paid is equal to the 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, 2015 Wells Fargo VT Discovery Fund 9

Security name	Shares		Value
Common Stocks: 98.35%
Consumer Discretionary: 22.77%
Auto Components: 1.40%
Gentherm Incorporated †		37,469	$	1,776,031
Diversified Consumer Services: 5.46%
Bright Horizons Family Solutions Incorporated †		35,600		2,378,080
ServiceMaster Global Holdings Incorporated †		115,825		4,544,973
				6,923,053
Hotels, Restaurants & Leisure: 5.58%
Aramark		73,600		2,373,600
Dave & Buster Entertainment Incorporated †		50,243		2,097,143
Vail Resorts Incorporated		20,400		2,610,996
				7,081,739
Household Durables: 1.74%
Harman International Industries Incorporated		14,400		1,356,624
Newell Rubbermaid Incorporated		19,400		855,152
				2,211,776
Leisure Products: 1.22%
The Brunswick Corporation		30,700		1,550,657
Media: 1.64%
Cinemark Holdings Incorporated		62,200		2,079,346
Specialty Retail: 4.90%
Caleres Incorporated		45,900		1,231,038
Lithia Motors Incorporated Class A		15,400		1,642,718
The Michaels Companies Incorporated †		79,168		1,750,404
ULTA Salon, Cosmetics and Fragrance Incorporated †		8,600		1,591,000
				6,215,160
Textiles, Apparel & Luxury Goods: 0.83%
Columbia Sportswear Company		21,476		1,047,170
Consumer Staples: 1.31%
Beverages: 1.31%
Constellation Brands Incorporated Class A		11,700		1,666,548
Energy: 0.95%
Oil, Gas & Consumable Fuels: 0.95%
Diamondback Energy Incorporated †		17,900		1,197,510
Financials: 6.28%
Capital Markets: 4.78%
Evercore Partners Incorporated Class A		30,700		1,659,949
Raymond James Financial Incorporated		34,300		1,988,371

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

10 Wells Fargo VT Discovery Fund Portfolio of investments—December 31, 2015

Security name	Shares		Value
Capital Markets (continued)
SEI Investments Company		46,000	$	2,410,400
				6,058,720
Real Estate Management & Development: 1.50%
CBRE Group Incorporated Class A †		55,100		1,905,358
Health Care: 16.19%
Biotechnology: 4.76%
Alnylam Pharmaceuticals Incorporated †		13,123		1,235,399
bluebird bio Incorporated †		10,200		655,044
Cepheid Incorporated †		25,353		926,145
Ligand Pharmaceuticals Incorporated †		5,921		641,955
Medivation Incorporated †		23,878		1,154,263
Prothena Corporation plc †		5,341		363,776
Ultragenyx Pharmaceutical Incorporated †		9,500		1,065,710
				6,042,292
Health Care Equipment & Supplies: 7.60%
Alere Incorporated †		51,190		2,001,017
Align Technology Incorporated †		36,300		2,390,355
DexCom Incorporated †		25,256		2,068,466
Hologic Incorporated †		54,100		2,093,129
Integra LifeSciences Holdings Corporation †		16,000		1,084,480
				9,637,447
Health Care Providers & Services: 3.16%
Envision Healthcare Holdings Incorporated †		42,958		1,115,619
HealthEquity Incorporated †		31,838		798,179
VCA Incorporated †		38,100		2,095,500
				4,009,298
Pharmaceuticals: 0.67%
Intersect ENT Incorporated †		37,711		848,498
Industrials: 17.86%
Aerospace & Defense: 1.39%
Orbital ATK Incorporated		19,800		1,768,932
Airlines: 0.87%
Spirit Airlines Incorporated †		27,600		1,099,860
Building Products: 3.54%
A.O. Smith Corporation		27,600		2,114,436
Allegion plc		36,000		2,373,120
				4,487,556
Commercial Services & Supplies: 1.89%
KAR Auction Services Incorporated		64,615		2,392,693

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

Portfolio of investments—December 31, 2015 Wells Fargo VT Discovery Fund 11

Security name	Shares		Value
Electrical Equipment: 1.57%
Acuity Brands Incorporated		8,500	$	1,987,300
Industrial Conglomerates: 1.65%
Carlisle Companies Incorporated		23,657		2,098,139
Machinery: 2.88%
Proto Labs Incorporated †		12,400		789,756
WABCO Holdings Incorporated †		11,500		1,175,990
Wabtec Corporation		23,800		1,692,656
				3,658,402
Road & Rail: 1.19%
Old Dominion Freight Line Incorporated †		25,500		1,506,285
Trading Companies & Distributors: 2.88%
Air Lease Corporation		49,800		1,667,304
HD Supply Holdings Incorporated †		66,039		1,983,151
				3,650,455
Information Technology: 27.64%
Communications Equipment: 0.93%
Harris Corporation		13,600		1,181,840
Electronic Equipment, Instruments & Components: 0.90%
Cognex Corporation		33,600		1,134,672
Internet Software & Services: 2.46%
CoStar Group Incorporated †		15,119		3,124,946
IT Services: 8.29%
Black Knight Financial Services Incorporated †		31,202		1,031,538
Broadridge Financial Solutions Incorporated		23,400		1,257,282
EPAM Systems Incorporated †		24,019		1,888,374
Euronet Worldwide Incorporated †		29,693		2,150,664
Vantiv Incorporated Class A †		41,553		1,970,443
WEX Incorporated †		25,000		2,210,000
				10,508,301
Semiconductors & Semiconductor Equipment: 0.97%
Cavium Incorporated †		18,700		1,228,777
Software: 14.09%
CyberArk Software Limited †«		37,794		1,706,021
Fleetmatics Group plc †		19,766		1,003,915
Guidewire Software Incorporated †		33,091		1,990,755
Imperva Incorporated †		20,841		1,319,444
Paycom Software Incorporated †		60,777		2,287,039
Splunk Incorporated †		38,500		2,264,185
Tableau Software Incorporated Class A †		27,415		2,583,041
Take-Two Interactive Software Incorporated †		58,000		2,020,720

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

12 Wells Fargo VT Discovery Fund Portfolio of investments—December 31, 2015

Security name				Shares		Value
Software (continued)
Tyler Technologies Incorporated †					15,475	$	2,697,602
							17,872,722
Materials: 2.70%
Chemicals: 1.33%
Axalta Coating Systems Limited †					63,483		1,691,822
Construction Materials: 1.37%
Vulcan Materials Company					18,300		1,737,950
Telecommunication Services: 2.65%
Diversified Telecommunication Services: 2.65%
Zayo Group Holdings Incorporated †					126,400		3,360,976
Total Common Stocks (Cost $112,644,770)							124,742,231
	Yield
Short-Term Investments: 3.54%
Investment Companies: 3.54%
Securities Lending Cash Investments, LLC (l)(r)(u)		0.39	%		1,678,325		1,678,325
Wells Fargo Cash Investment Money Market Fund, Select Class (l)(u)		0.33			2,815,601		2,815,601
Total Short-Term Investments (Cost $4,493,926)							4,493,926

Total investments in securities (Cost $117,138,696) *	101.89	%		129,236,157
Other assets and liabilities, net	(1.89	)		(2,397,456	)
Total net assets	100.00	%	$	126,838,701

† Non-income-earning security

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

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

(r) The investment is a non-registered investment vehicle purchased with cash collateral received from securities on loan.

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

* Cost for federal income tax purposes is $117,202,128 and unrealized gains (losses) consists of:

Gross unrealized gains	$	17,368,077
Gross unrealized losses		(5,334,048	)
Net unrealized gains	$	12,034,029

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

Statement of assets and liabilities—December 31, 2015 Wells Fargo VT Discovery Fund 13

Assets
Investments
In unaffiliated securities (including $1,620,526 of securities loaned), at value (cost $112,644,770)	$	124,742,231
In affiliated securities, at value (cost $4,493,926)		4,493,926
Total investments, at value (cost $117,138,696)		129,236,157
Receivable for Fund shares sold		46,047
Receivable for dividends		55,606
Receivable for securities lending income		1,886
Prepaid expenses and other assets		1,383
Total assets		129,341,079
Liabilities
Payable for investments purchased		588,753
Payable for Fund shares redeemed		65,105
Payable upon receipt of securities loaned		1,678,325
Management fee payable		84,216
Distribution fee payable		29,791
Administration fee payable		9,533
Accrued expenses and other liabilities		46,655
Total liabilities		2,502,378
Total net assets	$	126,838,701
NET ASSETS CONSIST OF
Paid-in capital	$	105,994,319
Accumulated net realized gains on investments		8,746,921
Net unrealized gains on investments		12,097,461
Total net assets	$	126,838,701
COMPUTATION OF NET ASSET VALUE PER SHARE
Net assets – Class 2	$	126,838,701
Shares outstanding – Class 21		4,880,246
Net asset value per share – Class 2		$25.99

¹  The Fund has an unlimited number of authorized shares.

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

14 Wells Fargo VT Discovery Fund Statement of operations—year ended December 31, 2015

Investment income
Dividends	$	506,703
Securities lending income, net		91,001
Income from affiliated securities		3,997
Total investment income		601,701
Expenses
Management fee		1,047,510
Administration fee
Class 2		111,734
Distribution fee
Class 2		349,170
Custody and accounting fees		23,830
Professional fees		40,311
Shareholder report expenses		29,452
Trustees’ fees and expenses		21,251
Other fees and expenses		12,071
Total expenses		1,635,329
Less: Fee waivers and/or expense reimbursements		(29,147	)
Net expenses		1,606,182
Net investment loss		(1,004,481	)
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on investments		9,025,317
Net change in unrealized gains (losses) on investments		(9,495,134	)
Net realized and unrealized gains (losses) on investments		(469,817	)
Net decrease in net assets resulting from operations	$	(1,474,298	)

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

Statement of changes in net assets Wells Fargo VT Discovery Fund 15

	Year ended December 31, 2015						Year ended December 31, 2014
Operations
Net investment loss				$	(1,004,481	)				$	(990,469	)
Net realized gains on investments					9,025,317						20,144,541
Net change in unrealized gains (losses) on investments					(9,495,134	)					(19,385,645	)
Net decrease in net assets resulting from operations					(1,474,298	)					(231,573	)
Distributions to shareholders from
Net realized gains – Class 2					(20,334,034	)					(18,974,676	)
Capital share transactions		Shares						Shares
Proceeds from shares sold – Class 2		505,503			14,950,495			363,614			11,794,023
Reinvestment of distributions – Class 2		708,256			20,334,034			644,301			18,974,676
Payment for shares redeemed – Class 2		(843,307	)		(25,127,064	)		(999,205	)		(31,523,941	)
Net increase (decrease) in net assets resulting from capital share transactions					10,157,465						(755,242	)
Total decrease in net assets					(11,650,867	)					(19,961,491	)
Net assets
Beginning of period					138,489,568						158,451,059
End of period				$	126,838,701					$	138,489,568
Undistributed net investment income				$	0					$	0

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

16 Wells Fargo VT Discovery Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended December 31
CLASS 2	2015			2014			2013			2012			2011
Net asset value, beginning of period		$30.71			$35.20			$25.16			$21.37			$21.28
Net investment loss		(0.21	)		(0.22	)		(0.17	)		(0.01	)		(0.18	)
Net realized and unrealized gains (losses) on investments		0.21			0.16			11.06			3.80			0.27
Total from investment operations		0.00			(0.06	)		10.89			3.79			0.09
Distributions to shareholders from
Net investment income		0.00			0.00			(0.00	)1		0.00			0.00
Net realized gains		(4.72	)		(4.43	)		(0.85	)		0.00			0.00
Total distributions to shareholders		(4.72	)		(4.43	)		(0.85	)		0.00			0.00
Net asset value, end of period		$25.99			$30.71			$35.20			$25.16			$21.37
Total return		(1.46	)%		0.36	%		43.80	%		17.74	%		0.42	%
Ratios to average net assets (annualized)
Gross expenses		1.17	%		1.14	%		1.16	%		1.21	%		1.18	%
Net expenses		1.15	%		1.14	%		1.15	%		1.15	%		1.15	%
Net investment loss		(0.72	)%		(0.68	)%		(0.56	)%		(0.03	)%		(0.75	)%
Supplemental data
Portfolio turnover rate		90	%		79	%		88	%		98	%		113	%
Net assets, end of period (000s omitted)		$126,839			$138,490			$158,451			$111,458			$98,099

¹  Amount is less than $0.005.

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

Notes to financial statements Wells Fargo VT Discovery Fund 17

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”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Wells Fargo VT Discovery Fund (the “Fund”) which is a diversified series of the Trust.

2. SIGNIFICANT ACCOUNTING POLICIES

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

Securities valuation

All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time).

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

Equity securities that are not listed on a foreign or domestic exchange or market, but have a public trading market, are valued at the quoted bid price from an independent broker-dealer that the Management Valuation Team of Wells Fargo Funds Management, LLC (“Funds Management”) has determined is an acceptable source.

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

Investments which are not valued using any of the methods discussed above are valued at their fair value, as determined in good faith by the Board of Trustees of the Fund. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Management Valuation Team. The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Management Valuation Team which may include items for ratification.

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

Security loans

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

18 Wells Fargo VT Discovery Fund Notes to financial statements

The Fund lends its securities through an unaffiliated securities lending agent. Cash collateral received in connection with its securities lending transactions is invested in Securities Lending Cash Investments, LLC (the “Securities Lending Fund”). The Securities Lending Fund is exempt from registration under Section 3(c)(7) of the 1940 Act and is managed by Funds Management and is subadvised by Wells Capital Management Incorporated (“WellsCap”). Funds Management receives an advisory fee starting at 0.05% and declining to 0.01% as the average daily net assets of the Securities Lending Fund increase. All of the fees received by Funds Management are paid to WellsCap for its services as subadviser. The Securities Lending Fund seeks to provide a positive return compared to the daily Fed Funds Open rate by investing in high-quality, U.S. dollar-denominated short-term money market instruments. Securities Lending Fund investments are fair valued based upon the amortized cost valuation technique. Income earned from investment in the Securities Lending Fund is included in securities lending income on the Statement of Operations.

Security transactions and income recognition

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

Dividend income is recognized on the ex-dividend date.

Distributions to shareholders

Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-dividend date. Such distributions are determined in conformity with federal income tax regulations, which may differ in amount or character from net investment income and realized gains recognized for purposes of U.S. generally accepted accounting principles.

Federal and other taxes

The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.

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

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The primary permanent difference causing such reclassification is due to net operating losses. At December 31, 2015, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Paid-in capital	Undistributed net investment income
$(1,004,481)	$1,004,481

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 significant 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:

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

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

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

Notes to financial statements Wells Fargo VT Discovery Fund 19

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

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of December 31, 2015:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	28,884,932	$	0	$	0	$	28,884,932
Consumer staples		1,666,548		0		0		1,666,548
Energy		1,197,510		0		0		1,197,510
Financials		7,964,078		0		0		7,964,078
Health care		20,537,535		0		0		20,537,535
Industrials		22,649,622		0		0		22,649,622
Information technology		35,051,258		0		0		35,051,258
Materials		3,429,772		0		0		3,429,772
Telecommunication services		3,360,976		0		0		3,360,976
Short-term investments
Investment companies		2,815,601		1,678,325		0		4,493,926
Total assets	$	127,557,832	$	1,678,325	$	0	$	129,236,157

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At December 31, 2015, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

4. TRANSACTIONS WITH AFFILIATES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the applicable subadviser, providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.75% and declining to 0.58% as the average daily net assets of the Fund increase.

Prior to July 1, 2015, Funds Management provided advisory services pursuant to an investment advisory agreement and was entitled to receive an annual fee which started at 0.70% and declined to 0.55% as the average daily net assets of the Fund increased. In addition, fund-level administrative services were provided by Funds Management under a separate administration agreement at an annual fee which started at 0.05% and declined to 0.03% as the average daily net assets of the Fund increased. For financial statement purposes, the advisory fee and fund-level administration fee for the year ended December 31, 2015 have been included in management fee on the Statement of Operations.

For the year ended December 31, 2015, the management fee was equivalent to an annual rate of 0.75% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. WellsCap, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.45% and declining to 0.35% as the average daily net assets of the Fund increase.

20 Wells Fargo VT Discovery Fund Notes to financial statements

Administration fee

Under a class-level administration agreement, Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under the class-level administration agreement, Funds Management receives a class level administration fee of 0.08% which is calculated based on the average daily net assets of Class 2 shares.

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through April 30, 2016 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 1.15% for Class 2 shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

Distribution fee

The Trust has adopted a distribution plan for Class 2 shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class 2 shares and paid to Wells Fargo Funds Distributor, LLC, the principal underwriter, at an annual rate of 0.25% of the average daily net assets of Class 2 shares.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended December 31, 2015 were $122,274,759 and $134,343,329, respectively.

6. BANK BORROWINGS

The Trust and Wells Fargo Funds Trust (excluding the money market funds and certain other funds) are parties to a $200,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.20% of the unused balance is allocated to each participating fund. Prior to September 1, 2015, the revolving credit agreement amount was $150,000,000 and the annual commitment fee was equal to 0.10% of the unused balance which was allocated to each participating fund. For the year ended December 31, 2015, the Fund paid $237 in commitment fees.

For the year ended December 31, 2015, there were no borrowings by the Fund under the agreement.

7. CONCENTRATION RISK

Concentration risks result from exposure to a limited number of sectors. A fund that invests a substantial portion of its assets in any sector may be more affected by changes in that sector than would be a fund whose investments are not heavily weighted in any sector.

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended December 31, 2015 and December 31, 2014 were as follows:

	Year ended December 31
	2015	2014
Ordinary income	$                0	$  6,355,354
Long-term capital gain	20,334,034	12,619,322

As of December 31, 2015, the components of distributable earnings on a tax basis were as follows:

Undistributed long-term gain	Unrealized gains
$8,810,353	$12,034,029

Notes to financial statements Wells Fargo VT Discovery Fund 21

9. INDEMNIFICATION

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

22 Wells Fargo VT Discovery 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 VT Discovery Fund (formerly known as Wells Fargo Advantage VT Discovery Fund) (the “Fund”), one of the funds constituting the Wells Fargo Variable Trust, as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2015, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo VT Discovery Fund as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

February 25, 2016

Other information (unaudited) Wells Fargo VT Discovery Fund 23

TAX INFORMATION

Pursuant to Section 852 of the Internal Revenue Code, $20,334,034 was designated as long-term capital gain distributions for the fiscal year ended December 31, 2015.

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-260-5969, visiting our website at wellsfargofunds.com, or visiting the SEC website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website at wellsfargofunds.com or by visiting the SEC website at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

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

24 Wells Fargo VT Discovery Fund Other information (unaudited)

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 144 mutual funds comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information². The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.

Independent Trustees

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
William R. Ebsworth (Born 1957)	Trustee, since 2015	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief financial officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he lead a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Mr. Ebsworth is a CFA® charterholder and an Adjunct Lecturer, Finance, at Babson College.	Asset Allocation Trust
Jane A. Freeman (Born 1953)	Trustee, since 2015	Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair of the Audit Committee. Ms. Freeman is Chair of Taproot Foundation (non-profit organization), a Board Member of Ruth Bancroft Garden (non-profit organization) and an inactive chartered financial analyst.	Asset Allocation Trust
Peter G. Gordon (Born 1942)	Trustee, since 1998; Chairman, since 2005	Co-Founder, Retired Chairman, President and CEO of Crystal Geyser Water Company. Trustee Emeritus, Colby College.	Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. Chairman of the Board of CIGNA Corporation since 2009, and Director since 2005. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (charter school). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	CIGNA Corporation; Asset Allocation Trust
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, since 2008	Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant.	Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of the Corporate Governance Research Initiative and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust

Other information (unaudited) Wells Fargo VT Discovery Fund 25

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust
Timothy J. Penny (Born 1951)	Trustee, since 1996	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
Michael S. Scofield (Born 1943)	Trustee, since 2010	Served on the Investment Company Institute’s Board of Governors and Executive Committee from 2008-2011 as well the Governing Council of the Independent Directors Council from 2006-2011 and the Independent Directors Council Executive Committee from 2008-2011. Chairman of the IDC from 2008-2010. Institutional Investor (Fund Directions) Trustee of Year in 2007. Trustee of the Evergreen Funds complex (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield.	Asset Allocation Trust
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. Director and Vice Chair of The Tree Trust (non-profit corporation). Director of the American Chestnut Foundation (non-profit corporation).	Asset Allocation Trust

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

** Donald Willeke retired as a Trustee effective December 31, 2015.

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
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.
Jeremy DePalma1 (Born 1974)	Treasurer, since 2012; Assistant Treasurer, since 2009	Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010 and head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.
C. David Messman (Born 1960)	Secretary, since 2000; Chief Legal Officer, since 2003	Senior Vice President and Secretary of Wells Fargo Funds Management, LLC since 2001. Assistant General Counsel of Wells Fargo Bank, N.A. since 2013 and Vice President and Managing Counsel of Wells Fargo Bank, N.A. from 1996 to 2013.
Debra Ann Early (Born 1964)	Chief Compliance Officer, since 2007	Executive Vice President of Wells Fargo Funds Management, LLC since 2014, Senior Vice President and Chief Compliance Officer from 2007 to 2014.
David Berardi (Born 1975)	Assistant Treasurer, since 2009	Vice President of Wells Fargo Funds Management, LLC since 2009. Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.

¹ Jeremy DePalma acts as Treasurer of 72 funds and Assistant Treasurer of 72 funds in the Fund Complex.

² The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling
1-800-260-5969 or by visiting the website at wellsfargofunds.com.

26 Wells Fargo VT Discovery Fund List of abbreviations

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —   Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

This page is intentionally left blank.

This page is intentionally left blank.

For more information

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

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.com

Individual investors: 1-800-222-8222

Retail investment professionals: 1-888-877-9275

Institutional investment professionals: 1-866-765-0778

This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call
1-800-260-5969 or visit the Fund’s website at wellsfargofunds.com. Read the prospectus carefully before you invest or send money.

Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the funds. The funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

© 2015 Wells Fargo Funds Management, LLC. All rights reserved.

239816 02-16 AVT1/AR147 12-15

Annual Report

December 31, 2015

Wells Fargo VT Index Asset Allocation Fund

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	8
Portfolio of investments	9
Financial statements
Statement of assets and liabilities	29
Statement of operations	30
Statement of changes in net assets	31
Financial highlights	32
Notes to financial statements	33
Report of independent registered public accounting firm	40
Other information	41
List of abbreviations	44

The views expressed and any forward-looking statements are as of December 31, 2015 , unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Funds Management, LLC. Discussions of individual securities, or the markets generally, or any Wells Fargo Fund are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements. The views expressed are subject to change at any time in response to changing circumstances in the market. Wells Fargo Funds Management, LLC and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

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

Karla M. Rabusch

President

Wells Fargo Funds

During 2015, crosscurrents in the U.S. economy tended to restrain investor sentiment.

Central bank actions abroad diverged during the period to be more accommodative when compared with the Fed.

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo VT Index Asset Allocation Fund for the 12-month period that ended December 31, 2015. Equity and bond investors endured a year of concern regarding slowing global growth, driven primarily by a decelerating Chinese economy; deflation, partially due to declining prices for oil, natural gas, and other commodities; currency volatility, once again attributable, at least in part, to China’s devaluation of its currency, the yuan; and the incidence of terrorist violence globally. These concerns extended beyond the reporting period into the new year as global markets experienced sharp sell-offs in early January 2016.

Crosscurrents characterized the U.S. economy.

During 2015, crosscurrents in the U.S. economy tended to restrain investor sentiment. U.S. annualized gross domestic product (GDP) growth trended lower and corporate profits declined compared with 2014, even as employment trends stabilized and consumer confidence improved. A difficult winter restrained GDP growth in the first quarter of 2015. Annualized GDP growth fell from 3.9% in the second quarter to 2.0% in the third quarter and was estimated by the U.S. Bureau of Economic Analysis to be 0.7% in the fourth quarter. Corporate results, as measured by profits from current production, decreased in the third quarter after a second-quarter increase, according to the U.S. Bureau of Economic Analysis. On a more positive note, unemployment remained at 5.0% in December 2015 as the economy added more than 290,000 jobs to nonfarm payrolls. In addition, consumer spending was generally steady, as home and automobile sales improved.

In December 2015, the Federal Open Market Committee increased the federal funds rate from a near-zero range to a range of 0.25% to 0.50%, the first interest-rate increase since 2006. Because the U.S. Federal Reserve (Fed) consistently signaled that an interest-rate increase was in the offing, investment markets exhibited little reaction to the move, with most analysts expecting more definitive responses to be seen in 2016. The S&P 500 Index¹ recorded a 1.4% return for the reporting period, pushed into positive territory on a total return basis thanks to dividends paid to shareholders. Bond markets trailed equities in the U.S., with the Barclays U.S. Aggregate Bond Index² returning 0.6% for the period.

Overseas, central banks diverged from Fed policy.

Central bank actions abroad diverged during the period to be more accommodative when compared with the Fed. The European Central Bank continued to encourage lending and investing by making funds available to banks at low interest rates, imposing a negative interest rate on bank deposits, and purchasing bonds through its quantitative easing program. During the summer of 2015, the Hang Seng Index³ in Hong Kong experienced a dramatic decline. In response, the People’s Bank of China (PBOC) demonstrated its willingness to intervene in its financial and currency markets to advance the government’s stated intention of integrating its economy more fully with its global counterparts: the U.S., Europe, and Japan. The PBOC sought to spur growth through lower interest rates, bank reserve requirements, and currency devaluations intended to support exports. Slowing economic growth in China reduced its importing activity, which, combined with continued low prices for many commodities, negatively affected China’s trading partners. In Japan, while broad economic growth has not yet demonstrated sustainable improvement as a result of Prime Minister Shinzo Abe’s

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

³  The Hang Seng Index is a free-float-adjusted market-capitalization-weighted stock market index in Hong Kong. It is used to record and monitor daily changes of the largest companies of the Hong Kong stock market and is the main indicator of the overall market performance in Hong Kong. You cannot invest directly in an index.

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

Abenomics policies, selected corporate results have shown progress as a result of operational and governance reforms under Abenomics. The trend holds the potential of yielding future investment opportunities in that country.

Developed European and Asian equity markets returned -0.8% for the 12-month period, as measured by the MSCI EAFE Index (Net).⁴ The MSCI Emerging Markets Index⁵ returned -14.9% during the same period as the effects of China’s slowdown were most severely felt in developing markets. International bond investors experienced losses, as measured by the Barclays Global Aggregate ex U.S. Dollar Bond Index,⁶ which recorded a -6.0% return. U.S. equity and bond investors in overseas markets saw the values of their investments fall as the U.S. dollar strengthened in comparison with other currencies.

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

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

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

Sincerely,

Karla M. Rabusch

President

Wells Fargo Funds

U.S. equity and bond investors in overseas markets saw the values of their investments fall as the U.S. dollar strengthened in comparison with other currencies.

Notice to shareholders

At a meeting held August 11–12, 2015, the Board of Trustees of the Fund approved a change in the name of the Fund whereby the word Advantage was removed from its name, effective December 15, 2015.

For further information about your Fund, contact your investment professional, visit our website at wellsfargofunds.com, or call us directly at 1-800-260-5969. We are available 24 hours a day, 7 days a week.

⁴  The Morgan Stanley Capital International (MSCI) Europe, Australasia, Far East (EAFE) Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada. The MSCI EAFE Index (Net) consists of the following 21 developed markets country indexes: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. You cannot invest directly in an index. Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products. This report is not approved, reviewed, or produced by MSCI.

⁵  The MSCI Emerging Markets Index is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of emerging markets. The MSCI Emerging Markets Index consists of the following 23 emerging markets country indexes: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, the Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey, and United Arab Emirates. You cannot invest directly in an index.

⁶  The Barclays Global Aggregate ex U.S. Dollar Bond Index tracks an international basket of government, corporate, agency, and mortgage-related bonds. You cannot invest directly in an index.

4 Wells Fargo VT Index Asset Allocation Fund Performance highlights (unaudited)

Investment objective

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

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Kandarp Acharya, CFA^®, FRM

Christian L. Chan, CFA^®

Average annual total returns (%) as of December 31, 2015

									Expense ratios1 (%)
	Inception date	1 year			5 year		10 year		Gross		Net2
Class 2	4-15-1994		1.25			11.47		6.77		1.02		1.00
Index Asset Allocation Composite Index3	–		2.69			11.90		7.96		–		–
Barclays U.S. Treasury 20+ Year Index4	–		(1.59	)		8.37		6.69		–		–
Barclays U.S. Treasury Index5	–		0.84			2.91		4.18		–		–
S&P 500 Index6	–		1.38			12.57		7.31		–		–

Figures quoted represent past performance, which is no guarantee of future results. 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 and assumes the reinvestment of dividends and capital gains. Current month-end performance is available by calling 1-800-260-5969. Performance figures of the Fund do not reflect fees charged pursuant to the terms of variable life insurance policies and variable annuity contracts. If fees had been reflected, performance would have been lower.

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

Balanced funds may invest in stocks and bonds. Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Bond values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest-rate changes and their impact on the fund and its share price can be sudden and unpredictable. The use of derivatives may reduce returns and/or increase volatility. Consult the Fund’s prospectus for additional information on these and other risks.

Please 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.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo VT Index Asset Allocation Fund 5

Growth of $10,000 investment as of December 31, 2015⁷

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

²  The manager has contractually committed through April 30, 2016, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver at the amount shown. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the cap. Without this cap, the Fund’s returns would have been lower.

³  Source: Wells Fargo Funds Management, LLC. The Index Asset Allocation Composite Index is weighted 40% in the Barclays U.S. Treasury Index and 60% in the S&P 500 Index. Effective April 1, 2015, the Fund changed its benchmark from the Barclays U.S. Treasury 20+ Year Index to the Barclays U.S. Treasury Index to better align its duration range. You cannot invest directly in an index.

⁴  The Barclays U.S. Treasury 20+ Year 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.

⁵  The Barclays U.S. Treasury Index is an unmanaged index of prices of U.S. Treasury bonds with maturities of 1 to 30 years. You cannot invest directly in an index.

⁶  The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock’s weight in the index proportionate to its market value. You cannot invest directly in an index.

⁷  The chart compares the performance of Class 2 shares for the most recent ten years with the Index Asset Allocation Composite Index, the Barclays U.S. Treasury 20+ Year Index, the Barclays U.S. Treasury Index and the S&P 500 Index. The chart assumes a hypothetical $10,000 investment and reflects all operating expenses of the Fund. Performance figures of the Fund do not reflect fees charged pursuant to the terms of variable life insurance policies and variable annuity contracts.

⁸  The ten largest holdings, excluding cash and cash equivalents, are calculated based on the value of the investments divided by total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

⁹  Neutral target allocation is the target allocation of the Fund as stated in the Fund’s prospectus. Current target allocation is the current allocation of the Fund based on our Tactical Asset Allocation (TAA) Model as of the date specified and is subject to change.

¹⁰  Amounts are calculated based on the total long-term investments of the Fund. These amounts are subject to change and may have changed since the date specified.

6 Wells Fargo VT Index Asset Allocation Fund Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

n The Fund underperformed the Index Asset Allocation Composite Index and the S&P 500 Index but outperformed the Barclays U.S. Treasury 20+ Year Index and the Barclays U.S. Treasury Index for the 12-month period that ended December 31, 2015.

n The Fund’s tactical asset allocation shifts between stocks and bonds contributed positively to relative performance. Meanwhile, a lower duration relative to the Treasury benchmark in early 2015 detracted from performance during the period.

Heightened concerns about a slowdown in China and lower oil prices drove volatility higher in 2015.

Volatility rose during the period as concerns about the turmoil in Chinese equity markets and the impact of plunging oil prices weighed on investors. A steady decline in the unemployment rate to prerecession levels, coupled with signs of modest wage growth, signaled that U.S growth remained on a sound footing. Strengthening economic conditions, in turn, prompted the U.S. Federal Reserve to raise short-term interest rates for the first time in more than nine years. Meanwhile, the European Central Bank and the Bank of Japan maintained accommodative monetary policies in order to stimulate growth and combat stubbornly low inflation rates in their respective economies.

After a relatively calm first half of the year, volatility rose sharply during the summer as signs of weaker economic growth in China raised concerns about lofty valuations. The sell-off gathered steam in mid-August following the People’s Bank of China’s decision to devalue the yuan, which rocked financial markets across the globe. The S&P 500 Index fell by 12.35% from its highest to its lowest level, while the CBOE Volatility Index, which measures the expectation of 30-day volatility among market participants, rose to its highest level in four years. 2015 was also marked by plummeting energy prices and a stronger dollar. During the 12-month period, the price of oil fell by 30.5% while the dollar rose by 9.3% against a basket of international developed currencies based on the U.S. Dollar Index which measures the value of the U.S. dollar relative to a basket of six international developed market currencies.

Despite the uncertain macroeconomic environment, in which markets gyrated wildly, stocks managed to eke out modest gains. The S&P 500 Index returned 1.4%. However, gains were not broad-based, as small-cap stocks and energy-related companies suffered steep losses. Higher yields, meanwhile, had an adverse impact on the price of government bonds. For the 12-month period, longer-term Treasury bonds, as measured by the Barclays U.S. Treasury 20+ Year Index, lost 1.6%. During the three-month period from January 1, 2015 through March 31, 2015, the Barclay’s U.S. Treasury 20+ Index gained 4.19%. The broader Barclay’s U.S. Treasury Index gained 0.84% for the 12-month period ended December 31, 2015, and declined 1.10% from the period beginning April 1, 2015, through December 31, 2015.

Ten largest holdings (%) as of December 31, 20158
Apple Incorporated	1.94
Microsoft Corporation	1.46
Exxon Mobil Corporation	1.07
General Electric Company	0.97
Johnson & Johnson	0.94
Amazon.com Incorporated	0.86
Wells Fargo & Company	0.83
Berkshire Hathaway Incorporated Class B	0.82
JPMorgan Chase & Company	0.80
Facebook Incorporated Class A	0.78

Tactical shifts between stocks and bonds contributed positively, while a lower duration detracted from performance.

The Fund’s stock holdings seek to replicate the holdings of the S&P 500 Index, and its bond holdings seek to replicate the holdings of the Barclays U.S. Treasury Index. The Fund’s neutral target allocation is 60% stocks and 40% bonds. As of year-end, the Fund had an effective target allocation of 60% stocks and 40% bonds. Because of price fluctuations, the Fund’s actual allocation on a particular day may have differed slightly from the target allocation.

During the period, the portfolio management team implemented tactical shifts between stocks and bonds in order to adjust the Fund’s effective allocations based on

the relative attractiveness of stocks and bonds. The allocation changes were implemented as overlays with liquid futures contracts. The dynamic adjustments in weightings between S&P 500 Index futures contracts and U.S. Treasury futures contracts contributed positively to performance during the period. We managed our exposures to stocks and bonds throughout the year and, on average, we were long equities. Specifically, a tilt toward equities in February contributed

Please see footnotes on page 5.

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

positively to performance as the S&P 500 outperformed long-term Treasuries during the month. At other times during the period, we maintained a neutral allocation—for example, during the sharp equity sell-off in August—which helped cushion the portfolio when markets became volatile and equity performance was negative.

On April 1, 2015, the Fund changed its fixed-income benchmark from the Barclays U.S. Treasury 20+ Year Index to the Barclays U.S. Treasury Index in an effort to reduce the overall interest-rate risk of the portfolio. In anticipation of this change, the portfolio management team took some initial steps in late 2014 and early 2015 to gradually lower the duration of its bond portfolio, an adjustment that the team considered prudent from a risk mitigation standpoint. The reduced exposure to longer-term bonds during this period detracted from performance as bond yields fell.

Current target allocation as of December 31, 2015⁹

Neutral target allocation⁹

Equity sector distribution as of December 31, 2015¹⁰

Relative to its benchmark, the Fund maintained a neutral allocation between stocks and bonds and lower bond duration at the close of the period.

The Fund’s effective allocation is determined by a combination of inputs from multiple quantitative and qualitative factors. As of the close of the period, the Fund maintained a neutral allocation between stocks and bonds and a slightly lower duration relative to its Barclays U.S. Treasury Index benchmark. All of the changes to the effective allocation were implemented with liquid futures contracts.

Please see footnotes on page 5.

8 Wells Fargo VT Index Asset Allocation Fund Fund expenses (unaudited)

As a shareholder of the Fund, you incur ongoing costs, including management fees, distribution (12b-1) 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, 2015 to December 31, 2015.

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

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 separate account charges assessed by participating insurance companies were included, your costs would have been higher.

	Beginning account value 7-1-2015		Ending account value 12-31-2015		Expenses paid during the period1		Net annualized expense ratio
Class 2
Actual	$	1,000.00	$	1,003.05	$	5.05		1.00	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.16	$	5.09		1.00	%

¹  Expenses paid is equal to the 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, 2015 Wells Fargo VT Index Asset Allocation Fund 9

Security name	Shares		Value
Common Stocks: 59.10%
Consumer Discretionary: 7.62%
Auto Components: 0.22%
BorgWarner Incorporated		603	$	26,068
Delphi Automotive plc		754		64,640
Johnson Controls Incorporated		1,743		68,831
The Goodyear Tire & Rubber Company		724		23,653
				183,192
Automobiles: 0.37%
Ford Motor Company		10,492		147,832
General Motors Company		3,811		129,612
Harley-Davidson Incorporated		516		23,421
				300,865
Distributors: 0.04%
Genuine Parts Company		405		34,785
Diversified Consumer Services: 0.03%
H&R Block Incorporated		634		21,119
Hotels, Restaurants & Leisure: 1.10%
Carnival Corporation		1,238		67,446
Chipotle Mexican Grill Incorporated †		83		39,828
Darden Restaurants Incorporated		310		19,728
Marriott International Incorporated Class A		519		34,794
McDonald’s Corporation		2,471		291,924
Royal Caribbean Cruises Limited		462		46,759
Starbucks Corporation		3,997		239,940
Starwood Hotels & Resorts Worldwide Incorporated		454		31,453
Wyndham Worldwide Corporation		312		22,667
Wynn Resorts Limited		218		15,083
Yum! Brands Incorporated		1,161		84,811
				894,433
Household Durables: 0.25%
D.R. Horton Incorporated		884		28,315
Garmin Limited		317		11,783
Harman International Industries Incorporated		191		17,994
Leggett & Platt Incorporated		365		15,337
Lennar Corporation Class A		481		23,526
Mohawk Industries Incorporated †		170		32,196
Newell Rubbermaid Incorporated		719		31,694
PulteGroup Incorporated		855		15,236
Whirlpool Corporation		209		30,696
				206,777
Internet & Catalog Retail: 1.31%
Amazon.com Incorporated †		1,035		699,546
Expedia Incorporated		316		39,279

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

10 Wells Fargo VT Index Asset Allocation Fund Portfolio of investments—December 31, 2015

Security name	Shares		Value
Internet & Catalog Retail (continued)
Netflix Incorporated †		1,150	$	131,537
The Priceline Group Incorporated †		133		169,568
TripAdvisor Incorporated †		304		25,916
				1,065,846
Leisure Products: 0.06%
Hasbro Incorporated		302		20,343
Mattel Incorporated		913		24,806
				45,149
Media: 1.79%
Cablevision Systems Corporation New York Group Class A		599		19,108
CBS Corporation Class B		1,167		55,001
Comcast Corporation Class A		6,573		370,914
Discovery Communications Incorporated Class A †		402		10,725
Discovery Communications Incorporated Class C †		694		17,503
Interpublic Group of Companies Incorporated		1,093		25,445
News Corporation Class A		1,027		13,721
News Corporation Class B		290		4,048
Omnicom Group Incorporated		652		49,330
Scripps Networks Interactive Incorporated Class A		255		14,079
Tegna Incorporated		596		15,210
The Walt Disney Company		4,094		430,198
Time Warner Cable Incorporated		762		141,420
Time Warner Incorporated		2,152		139,170
Twenty-First Century Fox Incorporated Class A		3,151		85,581
Twenty-First Century Fox Incorporated Class B		1,160		31,587
Viacom Incorporated Class B		935		38,485
				1,461,525
Multiline Retail: 0.36%
Dollar General Corporation		782		56,202
Dollar Tree Incorporated †		631		48,726
Kohl’s Corporation		511		24,339
Macy’s Incorporated		846		29,593
Nordstrom Incorporated		365		18,181
Target Corporation		1,658		120,387
				297,428
Specialty Retail: 1.55%
Advance Auto Parts Incorporated		196		29,500
AutoNation Incorporated †		205		12,230
AutoZone Incorporated †		81		60,095
Bed Bath & Beyond Incorporated †		449		21,664
Best Buy Company Incorporated		802		24,421
CarMax Incorporated †		545		29,414
GameStop Corporation Class A		283		7,935
L Brands Incorporated		685		65,637
Lowe’s Companies Incorporated		2,462		187,210

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

Portfolio of investments—December 31, 2015 Wells Fargo VT Index Asset Allocation Fund 11

Security name	Shares		Value
Specialty Retail (continued)
O’Reilly Automotive Incorporated †		264	$	66,903
Ross Stores Incorporated		1,089		58,599
Signet Jewelers Limited		213		26,346
Staples Incorporated		1,733		16,412
The Gap Incorporated		617		15,240
The Home Depot Incorporated		3,412		451,237
The TJX Companies Incorporated		1,802		127,780
Tiffany & Company		300		22,887
Tractor Supply Company		361		30,866
Urban Outfitters Incorporated †		233		5,301
				1,259,677
Textiles, Apparel & Luxury Goods: 0.54%
Coach Incorporated		747		24,449
Fossil Group Incorporated †		110		4,022
HanesBrands Incorporated		1,054		31,019
Michael Kors Holdings Limited †		495		19,830
Nike Incorporated Class B		3,632		227,000
PVH Corporation		221		16,277
Ralph Lauren Corporation		157		17,502
Under Armour Incorporated Class A Ǡ		484		39,015
VF Corporation		918		57,146
				436,260
Consumer Staples: 5.95%
Beverages: 1.37%
Brown-Forman Corporation Class B		272		27,004
Coca-Cola Enterprises Incorporated		562		27,673
Constellation Brands Incorporated Class A		466		66,377
Dr Pepper Snapple Group Incorporated		508		47,346
Molson Coors Brewing Company Class B		423		39,728
Monster Beverage Corporation †		403		60,031
PepsiCo Incorporated		3,921		391,786
The Coca-Cola Company		10,537		452,670
				1,112,615
Food & Staples Retailing: 1.40%
Costco Wholesale Corporation		1,178		190,247
CVS Health Corporation		2,980		291,355
Sysco Corporation		1,413		57,933
The Kroger Company		2,620		109,595
Wal-Mart Stores Incorporated		4,223		258,870
Walgreens Boots Alliance Incorporated		2,344		199,603
Whole Foods Market Incorporated		919		30,787
				1,138,390
Food Products: 1.01%
Archer Daniels Midland Company		1,606		58,908
Campbell Soup Company		483		25,382

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

12 Wells Fargo VT Index Asset Allocation Fund Portfolio of investments—December 31, 2015

Security name	Shares		Value
Food Products (continued)
ConAgra Foods Incorporated		1,165	$	49,116
General Mills Incorporated		1,609		92,775
Hormel Foods Corporation		363		28,706
Kellogg Company		686		49,577
Keurig Green Mountain Incorporated «		312		28,074
McCormick & Company Incorporated		312		26,695
Mead Johnson Nutrition Company		530		41,844
Mondelez International Incorporated Class A		4,278		191,826
The Hershey Company		386		34,458
The J.M. Smucker Company		321		39,592
The Kraft Heinz Company		1,600		116,416
Tyson Foods Incorporated Class A		795		42,397
				825,766
Household Products: 1.15%
Church & Dwight Company Incorporated		353		29,963
Colgate-Palmolive Company		2,415		160,887
Kimberly-Clark Corporation		977		124,372
The Clorox Company		347		44,010
The Procter & Gamble Company		7,323		581,519
				940,751
Personal Products: 0.07%
The Estee Lauder Companies Incorporated Class A		599		52,748
Tobacco: 0.95%
Altria Group Incorporated		5,278		307,232
Philip Morris International		4,171		366,673
Reynolds American Incorporated		2,232		103,007
				776,912
Energy: 3.84%
Energy Equipment & Services: 0.61%
Baker Hughes Incorporated		1,174		54,180
Cameron International Corporation †		514		32,485
Diamond Offshore Drilling Incorporated		173		3,650
Ensco plc Class A		633		9,742
FMC Technologies Incorporated †		614		17,812
Halliburton Company		2,303		78,394
Helmerich & Payne Incorporated		290		15,530
National Oilwell Varco Incorporated		1,011		33,858
Schlumberger Limited		3,394		236,732
Transocean Limited «		920		11,390
				493,773
Oil, Gas & Consumable Fuels: 3.23%
Anadarko Petroleum Corporation		1,368		66,457
Apache Corporation		1,018		45,270
Cabot Oil & Gas Corporation		1,114		19,707

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

Portfolio of investments—December 31, 2015 Wells Fargo VT Index Asset Allocation Fund 13

Security name	Shares		Value
Oil, Gas & Consumable Fuels (continued)
Chesapeake Energy Corporation «		1,392	$	6,264
Chevron Corporation		5,066		455,737
Cimarex Energy Company		254		22,703
Columbia Pipeline Group Incorporated		1,047		20,940
ConocoPhillips		3,324		155,198
CONSOL Energy Incorporated		616		4,866
Devon Energy Corporation		1,039		33,248
EOG Resources Incorporated		1,480		104,769
EQT Corporation		410		21,373
Exxon Mobil Corporation		11,206		873,508
Hess Corporation		646		31,318
Kinder Morgan Incorporated		4,925		73,481
Marathon Oil Corporation		1,823		22,952
Marathon Petroleum Corporation		1,434		74,339
Murphy Oil Corporation		435		9,766
Newfield Exploration Company †		435		14,164
Noble Energy Incorporated		1,145		37,705
Occidental Petroleum Corporation		2,056		139,006
ONEOK Incorporated		563		13,884
Phillips 66		1,277		104,459
Pioneer Natural Resources Company		402		50,403
Range Resources Corporation		455		11,198
Southwestern Energy Company †		1,034		7,352
Spectra Energy Corporation		1,807		43,260
Tesoro Corporation		323		34,035
The Williams Companies Incorporated		1,837		47,211
Valero Energy Corporation		1,296		91,640
				2,636,213
Financials: 9.74%
Banks: 3.57%
Bank of America Corporation		28,029		471,728
BB&T Corporation		2,100		79,401
Citigroup Incorporated		8,019		414,983
Comerica Incorporated		475		19,869
Fifth Third Bancorp		2,138		42,966
Huntington Bancshares Incorporated		2,144		23,713
JPMorgan Chase & Company		9,909		654,291
KeyCorp		2,248		29,651
M&T Bank Corporation		430		52,107
People’s United Financial Incorporated		834		13,469
PNC Financial Services Group Incorporated		1,367		130,289
Regions Financial Corporation		3,513		33,725
SunTrust Banks Incorporated		1,371		58,734
US Bancorp		4,425		188,815
Wells Fargo & Company (l)		12,512		680,152
Zions Bancorporation		550		15,015
				2,908,908

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

14 Wells Fargo VT Index Asset Allocation Fund Portfolio of investments—December 31, 2015

Security name	Shares		Value
Capital Markets: 1.24%
Affiliated Managers Group Incorporated †		145	$	23,165
Ameriprise Financial Incorporated		468		49,805
Bank of New York Mellon Corporation		2,942		121,269
BlackRock Incorporated		339		115,436
Charles Schwab Corporation		3,225		106,199
E*TRADE Financial Corporation †		788		23,356
Franklin Resources Incorporated		1,019		37,520
Goldman Sachs Group Incorporated		1,068		192,486
Invesco Limited		1,141		38,201
Legg Mason Incorporated		289		11,337
Morgan Stanley		4,065		129,308
Northern Trust Corporation		584		42,101
State Street Corporation		1,085		72,001
T. Rowe Price Group Incorporated		675		48,256
				1,010,440
Consumer Finance: 0.49%
American Express Company		2,252		156,627
Capital One Financial Corporation		1,431		103,290
Discover Financial Services		1,150		61,663
Navient Corporation		974		11,152
Synchrony Financial †		2,127		64,682
				397,414
Diversified Financial Services: 1.21%
Berkshire Hathaway Incorporated Class B †		5,043		665,878
CME Group Incorporated		910		82,446
Intercontinental Exchange Incorporated		319		81,747
Leucadia National Corporation		897		15,599
McGraw Hill Financial Incorporated		727		71,668
Moody’s Corporation		463		46,457
The NASDAQ OMX Group Incorporated		309		17,975
				981,770
Insurance: 1.60%
ACE Limited		873		102,010
AFLAC Incorporated		1,149		68,825
American International Group Incorporated		3,329		206,298
Aon plc		737		67,959
Assurant Incorporated		176		14,175
Cincinnati Financial Corporation		396		23,431
Lincoln National Corporation		666		33,473
Loews Corporation		753		28,915
Marsh & McLennan Companies Incorporated		1,404		77,852
MetLife Incorporated		2,992		144,244
Principal Financial Group Incorporated		732		32,925
Prudential Financial Incorporated		1,209		98,425
The Allstate Corporation		1,042		64,698
The Chubb Corporation		611		81,043

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

Portfolio of investments—December 31, 2015 Wells Fargo VT Index Asset Allocation Fund 15

Security name	Shares		Value
Insurance (continued)
The Hartford Financial Services Group Incorporated		1,102	$	47,893
The Progressive Corporation		1,574		50,053
The Travelers Companies Incorporated		819		92,432
Torchmark Corporation		309		17,662
UnumProvident Corporation		655		21,805
XL Group plc		801		31,383
				1,305,501
Real Estate Management & Development: 0.03%
CBRE Group Incorporated Class A †		782		27,042
REITs: 1.60%
American Tower Corporation		1,141		110,620
Apartment Investment & Management Company Class A		420		16,813
AvalonBay Communities Incorporated		368		67,760
Boston Properties Incorporated		413		52,674
Crown Castle International Corporation		898		77,632
Equinix Incorporated		166		50,198
Equity Residential		981		80,040
Essex Property Trust Incorporated		177		42,376
General Growth Properties Incorporated		1,567		42,638
HCP Incorporated		1,252		47,876
Host Hotels & Resorts Incorporated		2,024		31,048
Iron Mountain Incorporated		517		13,964
Kimco Realty Corporation		1,112		29,424
Plum Creek Timber Company		467		22,285
Prologis Incorporated		1,411		60,560
Public Storage Incorporated		396		98,089
Realty Income Corporation «		672		34,695
Simon Property Group Incorporated		832		161,774
SL Green Realty Corporation		267		30,166
The Macerich Company		362		29,210
Ventas Incorporated		896		50,561
Vornado Realty Trust		476		47,581
Welltower Incorporated		952		64,765
Weyerhaeuser Company		1,373		41,163
				1,303,912
Health Care: 8.96%
Biotechnology: 2.20%
AbbVie Incorporated		4,400		260,656
Alexion Pharmaceuticals Incorporated †		606		115,595
Amgen Incorporated		2,031		329,692
Baxalta Incorporated		1,461		57,023
Biogen Incorporated †		600		183,810
Celgene Corporation †		2,114		253,173
Gilead Sciences Incorporated		3,879		392,516
Regeneron Pharmaceuticals Incorporated †		208		112,917
Vertex Pharmaceuticals Incorporated †		661		83,174
				1,788,556

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

16 Wells Fargo VT Index Asset Allocation Fund Portfolio of investments—December 31, 2015

Security name	Shares		Value
Health Care Equipment & Supplies: 1.27%
Abbott Laboratories		4,016	$	180,359
Baxter International Incorporated		1,472		56,157
Becton Dickinson & Company		567		87,369
Boston Scientific Corporation †		3,621		66,771
C.R. Bard Incorporated		198		37,509
DENTSPLY International Incorporated		376		22,880
Edwards Lifesciences Corporation †		580		45,808
Intuitive Surgical Incorporated †		100		54,616
Medtronic plc		3,785		291,142
St. Jude Medical Incorporated		761		47,007
Stryker Corporation		850		78,999
Varian Medical Systems Incorporated †		260		21,008
Zimmer Holdings Incorporated		460		47,191
				1,036,816
Health Care Providers & Services: 1.62%
Aetna Incorporated		938		101,417
AmerisourceBergen Corporation		525		54,448
Anthem Incorporated		702		97,887
Cardinal Health Incorporated		885		79,004
Cigna Corporation		693		101,407
DaVita HealthCare Partners Incorporated †		448		31,230
Express Scripts Holding Company †		1,821		159,174
HCA Holdings Incorporated †		844		57,080
Henry Schein Incorporated †		222		35,118
Humana Incorporated		398		71,047
Laboratory Corporation of America Holdings †		271		33,506
McKesson Corporation		619		122,085
Patterson Companies Incorporated		224		10,127
Quest Diagnostics Incorporated		385		27,389
Tenet Healthcare Corporation †		267		8,090
UnitedHealth Group Incorporated		2,566		301,864
Universal Health Services Incorporated Class B		245		29,275
				1,320,148
Health Care Technology: 0.06%
Cerner Corporation †		820		49,339
Life Sciences Tools & Services: 0.38%
Agilent Technologies Incorporated		892		37,295
Illumina Incorporated †		393		75,434
PerkinElmer Incorporated		301		16,125
Thermo Fisher Scientific Incorporated		1,075		152,489
Waters Corporation †		219		29,473
				310,816
Pharmaceuticals: 3.43%
Allergan plc †		1,061		331,563
Bristol-Myers Squibb Company		4,491		308,936

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

Portfolio of investments—December 31, 2015 Wells Fargo VT Index Asset Allocation Fund 17

Security name	Shares		Value
Pharmaceuticals (continued)
Eli Lilly & Company		2,627	$	221,351
Endo International plc †		560		34,283
Johnson & Johnson		7,449		765,161
Mallinckrodt plc †		312		23,285
Merck & Company Incorporated		7,520		397,206
Mylan NV †		1,112		60,126
Perrigo Company plc		393		56,867
Pfizer Incorporated		16,616		536,364
Zoetis Incorporated		1,233		59,085
				2,794,227
Industrials: 5.94%
Aerospace & Defense: 1.60%
General Dynamics Corporation		800		109,888
Honeywell International Incorporated		2,074		214,804
L-3 Communications Holdings Incorporated		210		25,097
Lockheed Martin Corporation		711		154,394
Northrop Grumman Corporation		490		92,517
Precision Castparts Corporation		369		85,612
Raytheon Company		810		100,869
Rockwell Collins Incorporated		353		32,582
Textron Incorporated		736		30,919
The Boeing Company		1,695		245,080
United Technologies Corporation		2,221		213,371
				1,305,133
Air Freight & Logistics: 0.41%
C.H. Robinson Worldwide Incorporated		386		23,940
Expeditors International of Washington Incorporated		502		22,640
FedEx Corporation		706		105,187
United Parcel Service Incorporated Class B		1,874		180,335
				332,102
Airlines: 0.38%
American Airlines Group Incorporated		1,696		71,826
Delta Air Lines Incorporated		2,116		107,260
Southwest Airlines Company		1,750		75,355
United Continental Holdings Incorporated †		1,003		57,472
				311,913
Building Products: 0.05%
Allegion plc		258		17,007
Masco Corporation		905		25,612
				42,619
Commercial Services & Supplies: 0.25%
Cintas Corporation		235		21,397
Pitney Bowes Incorporated		529		10,924

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

18 Wells Fargo VT Index Asset Allocation Fund Portfolio of investments—December 31, 2015

Security name	Shares		Value
Commercial Services & Supplies (continued)
Republic Services Incorporated		644	$	28,330
Stericycle Incorporated †		228		27,497
The ADT Corporation		444		14,643
Tyco International plc		1,139		36,323
Waste Management Incorporated		1,118		59,668
				198,782
Construction & Engineering: 0.05%
Fluor Corporation		381		17,991
Jacobs Engineering Group Incorporated †		329		13,802
Quanta Services Incorporated †		429		8,687
				40,480
Electrical Equipment: 0.27%
AMETEK Incorporated		639		34,244
Eaton Corporation plc		1,245		64,790
Emerson Electric Company		1,762		84,276
Rockwell Automation Incorporated		355		36,427
				219,737
Industrial Conglomerates: 1.52%
3M Company		1,657		249,610
Danaher Corporation		1,604		148,980
General Electric Company		25,405		791,366
Roper Industries Incorporated		270		51,243
				1,241,199
Machinery: 0.69%
Caterpillar Incorporated		1,566		106,425
Cummins Incorporated		442		38,900
Deere & Company		838		63,914
Dover Corporation		416		25,505
Flowserve Corporation		352		14,812
Illinois Tool Works Incorporated		880		81,558
Ingersoll-Rand plc		702		38,814
Paccar Incorporated		951		45,077
Parker-Hannifin Corporation		365		35,398
Pentair plc		485		24,022
Snap-on Incorporated		156		26,743
Stanley Black & Decker Incorporated		403		43,012
Xylem Incorporated		482		17,593
				561,773
Professional Services: 0.17%
Dun & Bradstreet Corporation		97		10,081
Equifax Incorporated		318		35,416
Nielsen Holdings plc		979		45,621
Robert Half International Incorporated		357		16,829
Verisk Analytics Incorporated †		419		32,213
				140,160

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

Portfolio of investments—December 31, 2015 Wells Fargo VT Index Asset Allocation Fund 19

Security name	Shares		Value
Road & Rail: 0.45%
CSX Corporation		2,623	$	68,067
J.B. Hunt Transport Services Incorporated		243		17,826
Kansas City Southern		293		21,878
Norfolk Southern Corporation		803		67,926
Ryder System Incorporated		143		8,127
Union Pacific Corporation		2,299		179,782
				363,606
Trading Companies & Distributors: 0.10%
Fastenal Company «		779		31,799
United Rentals Incorporated †		250		18,135
W.W. Grainger Incorporated «		155		31,401
				81,335
Information Technology: 12.23%
Communications Equipment: 0.83%
Cisco Systems Incorporated		13,665		371,073
F5 Networks Incorporated †		189		18,325
Harris Corporation		334		29,025
Juniper Networks Incorporated		956		26,386
Motorola Solutions Incorporated		432		29,570
QUALCOMM Incorporated		4,046		202,239
				676,618
Electronic Equipment, Instruments & Components: 0.22%
Amphenol Corporation Class A		830		43,351
Corning Incorporated		3,184		58,204
FLIR Systems Incorporated		371		10,414
TE Connectivity Limited		1,039		67,130
				179,099
Internet Software & Services: 2.53%
Akamai Technologies Incorporated †		478		25,157
Alphabet Incorporated Class A †		783		609,182
Alphabet Incorporated Class C †		799		606,345
eBay Incorporated		2,973		81,698
Facebook Incorporated Class A †		6,112		639,682
VeriSign Incorporated †		263		22,976
Yahoo! Incorporated †		2,338		77,762
				2,062,802
IT Services: 2.17%
Accenture plc Class A		1,682		175,769
Alliance Data Systems Corporation †		163		45,081
Automatic Data Processing Incorporated		1,241		105,138
Cognizant Technology Solutions Corporation Class A †		1,637		98,253
CSRA Incorporated		370		11,100
Fidelity National Information Services Incorporated		746		45,208

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

20 Wells Fargo VT Index Asset Allocation Fund Portfolio of investments—December 31, 2015

Security name	Shares		Value
IT Services (continued)
Fiserv Incorporated †		615	$	56,248
International Business Machines Corporation		2,402		330,563
MasterCard Incorporated Class A		2,665		259,464
Paychex Incorporated		864		45,697
PayPal Holdings Incorporated †		2,993		108,347
Teradata Corporation †		358		9,458
The Western Union Company		1,360		24,358
Total System Services Incorporated		455		22,659
Visa Incorporated Class A		5,239		406,284
Xerox Corporation		2,561		27,223
				1,770,850
Semiconductors & Semiconductor Equipment: 1.46%
Analog Devices Incorporated		839		46,413
Applied Materials Incorporated		3,093		57,746
Avago Technologies Limited		705		102,331
Broadcom Corporation Class A		1,510		87,308
First Solar Incorporated †		203		13,396
Intel Corporation		12,702		437,584
KLA-Tencor Corporation		419		29,058
Lam Research Corporation		426		33,833
Linear Technology Corporation		643		27,308
Microchip Technology Incorporated «		546		25,411
Micron Technology Incorporated †		2,923		41,390
NVIDIA Corporation		1,376		45,353
Qorvo Incorporated †		380		19,342
Skyworks Solutions Incorporated		514		39,491
Texas Instruments Incorporated		2,730		149,631
Xilinx Incorporated		691		32,456
				1,188,051
Software: 2.60%
Activision Blizzard Incorporated		1,358		52,568
Adobe Systems Incorporated †		1,343		126,161
Autodesk Incorporated †		609		37,106
CA Incorporated		838		23,933
Citrix Systems Incorporated †		414		31,319
Electronic Arts Incorporated †		836		57,450
Intuit Incorporated		710		68,515
Microsoft Corporation		21,502		1,192,931
Oracle Corporation		8,618		314,816
Red Hat Incorporated †		492		40,743
Salesforce.com Incorporated †		1,680		131,712
Symantec Corporation		1,817		38,157
				2,115,411
Technology Hardware, Storage & Peripherals: 2.42%
Apple Incorporated		15,008		1,579,742
EMC Corporation		5,220		134,050

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

Portfolio of investments—December 31, 2015 Wells Fargo VT Index Asset Allocation Fund 21

Security name	Shares		Value
Technology Hardware, Storage & Peripherals (continued)
Hewlett Packard Enterprise Company		4,841	$	73,583
HP Incorporated		4,863		57,578
NetApp Incorporated		786		20,853
SanDisk Corporation		540		41,035
Seagate Technology plc		805		29,511
Western Digital Corporation		623		37,411
				1,973,763
Materials: 1.63%
Chemicals: 1.24%
Air Products & Chemicals Incorporated		521		67,787
Airgas Incorporated		174		24,068
CF Industries Holdings Incorporated		627		25,588
E.I. du Pont de Nemours & Company		2,359		157,109
Eastman Chemical Company		399		26,936
Ecolab Incorporated		715		81,782
FMC Corporation		359		14,048
International Flavors & Fragrances Incorporated		215		25,723
LyondellBasell Industries NV Class A		968		84,119
Monsanto Company		1,184		116,648
PPG Industries Incorporated		725		71,645
Praxair Incorporated		766		78,438
The Dow Chemical Company		3,026		155,778
The Mosaic Company		902		24,886
The Sherwin-Williams Company		212		55,035
				1,009,590
Construction Materials: 0.07%
Martin Marietta Materials Incorporated		177		24,175
Vulcan Materials Company		359		34,094
				58,269
Containers & Packaging: 0.13%
Avery Dennison Corporation		245		15,352
Ball Corporation		366		26,619
Owens-Illinois Incorporated †		432		7,525
Sealed Air Corporation		531		23,683
WestRock Company		692		31,569
				104,748
Metals & Mining: 0.14%
Alcoa Incorporated		3,527		34,811
Freeport-McMoRan Incorporated		3,111		21,061
Newmont Mining Corporation		1,424		25,618
Nucor Corporation		860		34,658
				116,148

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

22 Wells Fargo VT Index Asset Allocation Fund Portfolio of investments—December 31, 2015

Security name	Shares		Value
Paper & Forest Products: 0.05%
International Paper Company		1,116	$	42,073
Telecommunication Services: 1.43%
Diversified Telecommunication Services: 1.43%
AT&T Incorporated		16,559		569,795
CenturyLink Incorporated		1,477		37,161
Frontier Communications Corporation		3,143		14,678
Level 3 Communications Incorporated †		777		42,238
Verizon Communications Incorporated		10,953		506,248
				1,170,120
Utilities: 1.76%
Electric Utilities: 1.02%
American Electric Power Company Incorporated		1,321		76,975
Duke Energy Corporation		1,852		132,214
Edison International		877		51,927
Entergy Corporation		479		32,744
Eversource Energy		853		43,563
Exelon Corporation		2,475		68,731
FirstEnergy Corporation		1,139		36,140
NextEra Energy Incorporated		1,240		128,824
Pepco Holdings Incorporated		682		17,739
Pinnacle West Capital Corporation		298		19,215
PPL Corporation		1,808		61,707
The Southern Company		2,446		114,448
Xcel Energy Incorporated		1,366		49,053
				833,280
Gas Utilities: 0.03%
AGL Resources Incorporated		322		20,547
Independent Power & Renewable Electricity Producers: 0.03%
AES Corporation		1,811		17,331
NRG Energy Incorporated		845		9,946
				27,277
Multi-Utilities: 0.68%
Ameren Corporation		653		28,229
CenterPoint Energy Incorporated		1,158		21,261
CMS Energy Corporation		745		26,880
Consolidated Edison Incorporated		789		50,709
Dominion Resources Incorporated		1,602		108,359
DTE Energy Company		482		38,652
NiSource Incorporated		858		16,740
PG&E Corporation		1,320		70,211
Public Service Enterprise Group Incorporated		1,362		52,696
SCANA Corporation		384		23,228
Sempra Energy		634		59,602

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

Portfolio of investments—December 31, 2015 Wells Fargo VT Index Asset Allocation Fund 23

Security name						Shares		Value
Multi-Utilities (continued)
TECO Energy Incorporated							633	$	16,869
WEC Energy Group Incorporated							849		43,561
									556,997
Total Common Stocks (Cost $28,947,616)									48,163,595
				Expiration date
Rights: 0.00%
Consumer Staples: 0.00%
Food & Staples Retailing: 0.00%
Safeway Casa Ley Contingent Value Rights (a)(i)†					1-30-2019		684		0
Safeway PDC Contingent Value Rights (a)(i)†					1-30-2017		684		0
Total Rights (Cost $725)									0
	Interest rate			Maturity date		Principal
U.S. Treasury Securities: 39.22%
U.S. Treasury Bond		2.50	%		2-15-2045	$	225,000		201,464
U.S. Treasury Bond		2.75			8-15-2042		126,000		120,178
U.S. Treasury Bond		2.75			11-15-2042		155,000		147,476
U.S. Treasury Bond		2.88			5-15-2043		220,000		214,056
U.S. Treasury Bond		2.88			8-15-2045		143,000		138,615
U.S. Treasury Bond		3.00			5-15-2042		84,000		84,343
U.S. Treasury Bond		3.00			11-15-2044		224,000		222,749
U.S. Treasury Bond		3.00			5-15-2045		148,000		147,040
U.S. Treasury Bond		3.00			11-15-2045		142,000		141,445
U.S. Treasury Bond		3.13			11-15-2041		66,000		68,046
U.S. Treasury Bond		3.13			2-15-2042		87,000		89,646
U.S. Treasury Bond		3.13			2-15-2043		158,000		161,608
U.S. Treasury Bond		3.13			8-15-2044		223,000		227,458
U.S. Treasury Bond		3.38			5-15-2044		223,000		238,862
U.S. Treasury Bond		3.50			2-15-2039		61,000		67,344
U.S. Treasury Bond		3.63			8-15-2043		182,000		204,573
U.S. Treasury Bond		3.63			2-15-2044		221,000		248,132
U.S. Treasury Bond		3.75			8-15-2041		68,000		77,959
U.S. Treasury Bond		3.75			11-15-2043		220,000		252,912
U.S. Treasury Bond		3.88			8-15-2040		71,000		82,849
U.S. Treasury Bond		4.25			5-15-2039		57,000		70,283
U.S. Treasury Bond		4.25			11-15-2040		74,000		91,313
U.S. Treasury Bond		4.38			2-15-2038		32,000		40,315
U.S. Treasury Bond		4.38			11-15-2039		57,000		71,540
U.S. Treasury Bond		4.38			5-15-2040		83,000		104,244
U.S. Treasury Bond		4.38			5-15-2041		65,000		81,875
U.S. Treasury Bond		4.50			2-15-2036		70,000		89,589
U.S. Treasury Bond		4.50			5-15-2038		36,000		46,145
U.S. Treasury Bond		4.50			8-15-2039		59,000		75,372
U.S. Treasury Bond		4.63			2-15-2040		102,000		132,617
U.S. Treasury Bond		4.75			2-15-2037		24,000		31,764
U.S. Treasury Bond		4.75			2-15-2041		88,000		116,763

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

24 Wells Fargo VT Index Asset Allocation Fund Portfolio of investments—December 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
U.S. Treasury Securities (continued)
U.S. Treasury Bond		5.00	%		5-15-2037	$	29,000	$	39,683
U.S. Treasury Bond		5.25			11-15-2028		45,000		58,802
U.S. Treasury Bond		5.25			2-15-2029		33,000		43,238
U.S. Treasury Bond		5.38			2-15-2031		70,000		94,908
U.S. Treasury Bond		5.50			8-15-2028		35,000		46,581
U.S. Treasury Bond		6.00			2-15-2026		42,000		56,089
U.S. Treasury Bond		6.13			11-15-2027		49,000		67,850
U.S. Treasury Bond		6.13			8-15-2029		25,000		35,484
U.S. Treasury Bond		6.25			5-15-2030		45,000		65,248
U.S. Treasury Bond		6.38			8-15-2027		21,000		29,505
U.S. Treasury Bond		6.50			11-15-2026		28,000		39,188
U.S. Treasury Bond		6.63			2-15-2027		18,000		25,532
U.S. Treasury Bond		6.75			8-15-2026		21,000		29,765
U.S. Treasury Note		1.38			2-29-2020		184,000		181,922
U.S. Treasury Note		1.50			1-31-2022		152,000		147,780
U.S. Treasury Note		0.50			1-31-2017		136,000		135,499
U.S. Treasury Note		0.50			2-28-2017		136,000		135,452
U.S. Treasury Note		0.50			3-31-2017		136,000		135,378
U.S. Treasury Note		0.50			4-30-2017		136,000		135,289
U.S. Treasury Note		0.50			7-31-2017		160,000		158,790
U.S. Treasury Note		0.63			2-15-2017		156,000		155,605
U.S. Treasury Note		0.63			5-31-2017		317,000		315,607
U.S. Treasury Note		0.63			6-30-2017		135,000		134,323
U.S. Treasury Note		0.63			7-31-2017		127,000		126,295
U.S. Treasury Note		0.63			8-31-2017		184,000		182,828
U.S. Treasury Note		0.63			9-30-2017		160,000		158,901
U.S. Treasury Note		0.63			11-30-2017		184,000		182,488
U.S. Treasury Note		0.63			4-30-2018		164,000		161,904
U.S. Treasury Note		0.75			1-15-2017		159,000		158,860
U.S. Treasury Note		0.75			3-15-2017		159,000		158,774
U.S. Treasury Note		0.75			6-30-2017		173,000		172,466
U.S. Treasury Note		0.75			10-31-2017		157,000		156,176
U.S. Treasury Note		0.75			12-31-2017		163,000		161,912
U.S. Treasury Note		0.75			2-28-2018		153,000		151,710
U.S. Treasury Note		0.75			3-31-2018		133,000		131,821
U.S. Treasury Note		0.75			4-15-2018		127,000		125,780
U.S. Treasury Note		0.88			1-31-2017		182,000		182,019
U.S. Treasury Note		0.88			2-28-2017		179,000		179,077
U.S. Treasury Note		0.88			4-15-2017		159,000		158,969
U.S. Treasury Note		0.88			4-30-2017		183,000		182,929
U.S. Treasury Note		0.88			5-15-2017		152,000		151,912
U.S. Treasury Note		0.88			6-15-2017		149,000		148,844
U.S. Treasury Note		0.88			7-15-2017		142,000		141,769
U.S. Treasury Note		0.88			8-15-2017		142,000		141,692
U.S. Treasury Note		0.88			10-15-2017		143,000		142,581
U.S. Treasury Note		0.88			11-15-2017		135,000		134,542
U.S. Treasury Note		0.88			1-15-2018		125,000		124,446
U.S. Treasury Note		0.88			1-31-2018		115,000		114,436
U.S. Treasury Note		0.88			7-15-2018		117,000		115,956
U.S. Treasury Note		0.88			7-31-2019		76,000		74,293

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

Portfolio of investments—December 31, 2015 Wells Fargo VT Index Asset Allocation Fund 25

Security name	Interest rate			Maturity date		Principal		Value
U.S. Treasury Securities (continued)
U.S. Treasury Note		1.00	%		3-31-2017	$	172,000	$	172,278
U.S. Treasury Note		1.00			9-15-2017		142,000		141,928
U.S. Treasury Note		1.00			12-15-2017		132,000		131,834
U.S. Treasury Note		1.00			2-15-2018		125,000		124,623
U.S. Treasury Note		1.00			3-15-2018		125,000		124,579
U.S. Treasury Note		1.00			5-15-2018		124,000		123,398
U.S. Treasury Note		1.00			5-31-2018		176,000		175,119
U.S. Treasury Note		1.00			8-15-2018		117,000		116,254
U.S. Treasury Note		1.00			9-15-2018		117,000		116,181
U.S. Treasury Note		1.00			6-30-2019		58,000		57,049
U.S. Treasury Note		1.00			8-31-2019		79,000		77,452
U.S. Treasury Note		1.00			9-30-2019		100,000		97,912
U.S. Treasury Note		1.00			11-30-2019		117,000		114,370
U.S. Treasury Note		1.13			6-15-2018		124,000		123,725
U.S. Treasury Note		1.13			5-31-2019		65,000		64,283
U.S. Treasury Note		1.13			12-31-2019		117,000		114,797
U.S. Treasury Note		1.13			3-31-2020		93,000		90,923
U.S. Treasury Note		1.13			4-30-2020		125,000		122,166
U.S. Treasury Note		1.25			10-31-2018		165,000		164,790
U.S. Treasury Note		1.25			11-30-2018		155,000		154,761
U.S. Treasury Note		1.25			1-31-2019		125,000		124,597
U.S. Treasury Note		1.25			4-30-2019		51,000		50,683
U.S. Treasury Note		1.25			10-31-2019		75,000		74,128
U.S. Treasury Note		1.25			1-31-2020		184,000		181,200
U.S. Treasury Note		1.25			2-29-2020		103,000		101,333
U.S. Treasury Note		1.38			6-30-2018		127,000		127,520
U.S. Treasury Note		1.38			7-31-2018		151,000		151,601
U.S. Treasury Note		1.38			9-30-2018		249,000		249,816
U.S. Treasury Note		1.38			11-30-2018		74,000		74,167
U.S. Treasury Note		1.38			12-31-2018		91,000		91,081
U.S. Treasury Note		1.38			2-28-2019		121,000		120,938
U.S. Treasury Note		1.38			1-31-2020		122,000		120,751
U.S. Treasury Note		1.38			3-31-2020		184,000		181,772
U.S. Treasury Note		1.38			4-30-2020		184,000		181,658
U.S. Treasury Note		1.38			5-31-2020		129,000		127,172
U.S. Treasury Note		1.38			8-31-2020		173,000		170,268
U.S. Treasury Note		1.38			9-30-2020		173,000		170,053
U.S. Treasury Note		1.50			8-31-2018		241,000		242,640
U.S. Treasury Note		1.50			12-31-2018		174,000		174,816
U.S. Treasury Note		1.50			1-31-2019		161,000		161,592
U.S. Treasury Note		1.50			2-28-2019		171,000		171,569
U.S. Treasury Note		1.50			3-31-2019		60,000		60,181
U.S. Treasury Note		1.50			5-31-2019		184,000		184,204
U.S. Treasury Note		1.50			10-31-2019		184,000		183,460
U.S. Treasury Note		1.50			11-30-2019		185,000		184,299
U.S. Treasury Note		1.50			5-31-2020		183,000		181,461
U.S. Treasury Note		1.63			3-31-2019		177,000		178,138
U.S. Treasury Note		1.63			4-30-2019		159,000		159,955
U.S. Treasury Note		1.63			6-30-2019		183,000		183,857
U.S. Treasury Note		1.63			7-31-2019		180,000		180,660

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

26 Wells Fargo VT Index Asset Allocation Fund Portfolio of investments—December 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
U.S. Treasury Securities (continued)
U.S. Treasury Note		1.63	%		8-31-2019	$	184,000	$	184,561
U.S. Treasury Note		1.63			12-31-2019		184,000		184,046
U.S. Treasury Note		1.63			6-30-2020		182,000		181,297
U.S. Treasury Note		1.63			7-31-2020		171,000		170,227
U.S. Treasury Note		1.63			8-15-2022		117,000		113,965
U.S. Treasury Note		1.63			11-15-2022		179,000		173,886
U.S. Treasury Note		1.75			10-31-2018		66,000		66,861
U.S. Treasury Note		1.75			9-30-2019		183,000		184,276
U.S. Treasury Note		1.75		��	10-31-2020		148,000		147,809
U.S. Treasury Note		1.75			2-28-2022		153,000		150,846
U.S. Treasury Note		1.75			3-31-2022		154,000		151,649
U.S. Treasury Note		1.75			4-30-2022		151,000		148,598
U.S. Treasury Note		1.75			5-15-2022		136,000		133,788
U.S. Treasury Note		1.75			9-30-2022		144,000		141,146
U.S. Treasury Note		1.75			5-15-2023		270,000		263,031
U.S. Treasury Note		1.88			8-31-2017		142,000		143,971
U.S. Treasury Note		1.88			9-30-2017		122,000		123,742
U.S. Treasury Note		1.88			10-31-2017		139,000		141,040
U.S. Treasury Note		1.88			6-30-2020		86,000		86,624
U.S. Treasury Note		1.88			11-30-2021		154,000		153,393
U.S. Treasury Note		1.88			5-31-2022		150,000		148,563
U.S. Treasury Note		1.88			8-31-2022		142,000		140,371
U.S. Treasury Note		1.88			10-31-2022		143,000		141,179
U.S. Treasury Note		2.00			7-31-2020		122,000		123,436
U.S. Treasury Note		2.00			9-30-2020		106,000		107,182
U.S. Treasury Note		2.00			11-30-2020		122,000		123,272
U.S. Treasury Note		2.00			2-28-2021		136,000		137,172
U.S. Treasury Note		2.00			5-31-2021		146,000		147,026
U.S. Treasury Note		2.00			8-31-2021		154,000		154,711
U.S. Treasury Note		2.00			10-31-2021		154,000		154,461
U.S. Treasury Note		2.00			11-15-2021		216,000		216,680
U.S. Treasury Note		2.00			2-15-2022		157,000		157,310
U.S. Treasury Note		2.00			7-31-2022		144,000		143,624
U.S. Treasury Note		2.00			2-15-2023		265,000		263,452
U.S. Treasury Note		2.00			2-15-2025		347,000		339,175
U.S. Treasury Note		2.00			8-15-2025		220,000		214,496
U.S. Treasury Note		2.13			8-31-2020		138,000		140,268
U.S. Treasury Note		2.13			1-31-2021		132,000		133,991
U.S. Treasury Note		2.13			6-30-2021		142,000		143,825
U.S. Treasury Note		2.13			8-15-2021		212,000		214,564
U.S. Treasury Note		2.13			9-30-2021		153,000		154,651
U.S. Treasury Note		2.13			12-31-2021		152,000		153,374
U.S. Treasury Note		2.13			6-30-2022		151,000		151,796
U.S. Treasury Note		2.13			5-15-2025		234,000		230,932
U.S. Treasury Note		2.25			11-30-2017		117,000		119,614
U.S. Treasury Note		2.25			7-31-2018		49,000		50,291
U.S. Treasury Note		2.25			3-31-2021		135,000		137,785
U.S. Treasury Note		2.25			4-30-2021		142,000		144,861
U.S. Treasury Note		2.25			7-31-2021		154,000		156,930
U.S. Treasury Note		2.25			11-15-2024		347,000		346,797

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

Portfolio of investments—December 31, 2015 Wells Fargo VT Index Asset Allocation Fund 27

Security name	Interest rate			Maturity date		Principal		Value
U.S. Treasury Securities (continued)
U.S. Treasury Note		2.25	%		11-15-2025	$	219,000	$	218,606
U.S. Treasury Note		2.38			7-31-2017		117,000		119,493
U.S. Treasury Note		2.38			5-31-2018		58,000		59,649
U.S. Treasury Note		2.38			6-30-2018		74,000		76,188
U.S. Treasury Note		2.38			12-31-2020		123,000		126,508
U.S. Treasury Note		2.38			8-15-2024		348,000		351,604
U.S. Treasury Note		2.50			6-30-2017		107,000		109,407
U.S. Treasury Note		2.50			8-15-2023		230,000		235,969
U.S. Treasury Note		2.50			5-15-2024		339,000		346,380
U.S. Treasury Note		2.63			1-31-2018		81,000		83,529
U.S. Treasury Note		2.63			4-30-2018		62,000		64,103
U.S. Treasury Note		2.63			8-15-2020		180,000		187,045
U.S. Treasury Note		2.63			11-15-2020		290,000		301,413
U.S. Treasury Note		2.75			5-31-2017		106,000		108,710
U.S. Treasury Note		2.75			12-31-2017		90,000		92,924
U.S. Treasury Note		2.75			2-28-2018		71,000		73,459
U.S. Treasury Note		2.75			2-15-2019		128,000		133,413
U.S. Treasury Note		2.75			11-15-2023		303,000		316,212
U.S. Treasury Note		2.75			2-15-2024		261,000		271,846
U.S. Treasury Note		2.88			3-31-2018		80,000		83,069
U.S. Treasury Note		3.00			2-28-2017		113,000		115,766
U.S. Treasury Note		3.13			1-31-2017		139,000		142,371
U.S. Treasury Note		3.13			4-30-2017		107,000		110,115
U.S. Treasury Note		3.13			5-15-2019		166,000		175,181
U.S. Treasury Note		3.13			5-15-2021		155,000		164,906
U.S. Treasury Note		3.25			3-31-2017		120,000		123,485
U.S. Treasury Note		3.38			11-15-2019		191,000		204,028
U.S. Treasury Note		3.50			2-15-2018		120,000		126,036
U.S. Treasury Note		3.50			5-15-2020		165,000		177,459
U.S. Treasury Note		3.63			8-15-2019		145,000		155,741
U.S. Treasury Note		3.63			2-15-2020		230,000		248,176
U.S. Treasury Note		3.63			2-15-2021		240,000		260,991
U.S. Treasury Note		3.75			11-15-2018		141,000		150,911
U.S. Treasury Note		3.88			5-15-2018		65,000		69,182
U.S. Treasury Note		4.00			8-15-2018		74,000		79,418
U.S. Treasury Note		4.25			11-15-2017		86,000		91,081
U.S. Treasury Note		4.50			5-15-2017		65,000		68,149
U.S. Treasury Note		4.63			2-15-2017		79,000		82,277
U.S. Treasury Note		4.75			8-15-2017		80,000		84,841
U.S. Treasury Note		6.25			8-15-2023		35,000		45,186
U.S. Treasury Note		6.88			8-15-2025		21,000		29,415
U.S. Treasury Note		7.13			2-15-2023		24,000		32,056
U.S. Treasury Note		7.25			8-15-2022		24,000		31,754
U.S. Treasury Note		7.50			11-15-2024		22,000		31,375
U.S. Treasury Note		7.63			11-15-2022		12,000		16,293
U.S. Treasury Note		7.63			2-15-2025		20,000		28,922
U.S. Treasury Note		7.88			2-15-2021		15,000		19,434
U.S. Treasury Note		8.00			11-15-2021		48,000		64,134
U.S. Treasury Note		8.13			8-15-2019		29,000		35,778
U.S. Treasury Note		8.13			5-15-2021		17,000		22,428

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

28 Wells Fargo VT Index Asset Allocation Fund Portfolio of investments—December 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
U.S. Treasury Securities (continued)
U.S. Treasury Note		8.13	%		8-15-2021	$	15,000	$	19,981
U.S. Treasury Note		8.50			2-15-2020		15,000		19,112
U.S. Treasury Note		8.75			5-15-2017		42,000		46,474
U.S. Treasury Note		8.75			5-15-2020		12,000		15,563
U.S. Treasury Note		8.75			8-15-2020		27,000		35,384
U.S. Treasury Note		8.88			8-15-2017		25,000		28,189
U.S. Treasury Note		8.88			2-15-2019		29,000		35,700
U.S. Treasury Note		9.00			11-15-2018		18,000		21,898
U.S. Treasury Note		9.13			5-15-2018		16,000		18,999
Total U.S. Treasury Securities (Cost $32,159,553)									31,957,726
	Yield					Shares
Short-Term Investments: 1.03%
Investment Companies: 0.91%
Securities Lending Cash Investments, LLC (l)(r)(u)		0.39					156,100		156,100
Wells Fargo Cash Investment Money Market Fund, Select Class (l)(u)		0.33					586,729		586,729
									742,829
						Principal
U.S. Treasury Securities: 0.12%
U.S. Treasury Bill #(z)		0.03			3-24-2016	$	50,000		49,980
U.S. Treasury Bill #(z)		0.08			3-17-2016		50,000		49,990
									99,970
Total Short-Term Investments (Cost $842,816)									842,799

Total investments in securities (Cost $61,950,710) *	99.35	%		80,964,120
Other assets and liabilities, net	0.65			530,879
Total net assets	100.00	%	$	81,494,999

† Non-income-earning security

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

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

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

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

(r) The investment is a non-registered investment vehicle purchased with cash collateral received from securities on loan.

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

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

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

* Cost for federal income tax purposes is $63,592,292 and unrealized gains (losses) consists of:

Gross unrealized gains	$	20,443,953
Gross unrealized losses		(3,072,125	)
Net unrealized gains	$	17,371,828

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

Statement of assets and liabilities—December 31, 2015 Wells Fargo VT Index Asset Allocation Fund 29

Assets
Investments
In unaffiliated securities (including $151,246 of securities loaned), at value (cost $60,846,061)	$	79,541,139
In affiliated securities, at value (cost $1,104,649)		1,422,981
Total investments, at value (cost $61,950,710)		80,964,120
Receivable from broker		399,860
Receivable for investments sold		1,132,866
Receivable for Fund shares sold		188
Receivable for dividends and interest		231,672
Receivable for daily variation margin on open futures contracts		703
Receivable for securities lending income		147
Prepaid expenses and other assets		11,733
Total assets		82,741,289
Liabilities
Payable for investments purchased		523,222
Payable for Fund shares redeemed		37,922
Payable upon receipt of securities loaned		156,100
Payable for daily variation margin on open futures contracts		20,542
Due to custodian bank		399,428
Management fee payable		39,173
Distribution fee payable		19,106
Administration fee payable		6,113
Accrued expenses and other liabilities		44,684
Total liabilities		1,246,290
Total net assets	$	81,494,999
NET ASSETS CONSIST OF
Paid-in capital	$	61,918,600
Undistributed net investment income		12,657
Accumulated net realized gains on investments		559,825
Net unrealized gains on investments		19,003,917
Total net assets	$	81,494,999
COMPUTATION OF NET ASSET VALUE PER SHARE
Net assets – Class 2	$	81,494,999
Shares outstanding – Class 21		4,412,487
Net asset value per share – Class 2		$18.47

¹ The Fund has an unlimited number of authorized shares.

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

30 Wells Fargo VT Index Asset Allocation Fund Statement of operations—year ended December 31, 2015

Investment income
Dividends (net of foreign withholding taxes of $81)	$	1,117,495
Interest		575,969
Income from affiliated securities		22,881
Securities lending income, net		2,144
Total investment income		1,718,489
Expenses
Management fee		528,870
Administration fee
Class 2		70,516
Distribution fee
Class 2		220,362
Custody and accounting fees		34,884
Professional fees		40,774
Shareholder report expenses		18,973
Trustees’ fees and expenses		18,660
Other fees and expenses		36,012
Total expenses		969,051
Less: Fee waivers and/or expense reimbursements		(87,602	)
Net expenses		881,449
Net investment income		837,040
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		9,145,656
Affiliated securities		40,377
Futures transactions		635,732
Net realized gains on investments		9,821,765
Net change in unrealized gains (losses) on:
Unaffiliated securities		(9,673,834	)
Affiliated securities		(45,564	)
Futures transactions		186,284
Net change in unrealized gains (losses) on investments		(9,533,114	)
Net realized and unrealized gains (losses) on investments		288,651
Net increase in net assets resulting from operations	$	1,125,691

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

Statement of changes in net assets Wells Fargo VT Index Asset Allocation Fund 31

	Year ended December 31, 2015						Year ended December 31, 2014
Operations
Net investment income				$	837,040					$	1,399,772
Net realized gains on investments					9,821,765						5,525,585
Net change in unrealized gains (losses) on investments					(9,533,114	)					7,792,582
Net increase in net assets resulting from operations					1,125,691						14,717,939
Distributions to shareholders from
Net investment income – Class 2					(897,884	)					(1,351,046	)
Capital share transactions		Shares						Shares
Proceeds from shares sold – Class 2		198,509			3,701,571			202,482			3,451,969
Reinvestment of distributions – Class 2		48,466			897,884			78,919			1,351,046
Payment for shares redeemed – Class 2		(834,694	)		(15,478,408	)		(764,955	)		(12,958,898	)
Net decrease in net assets resulting from capital share transactions					(10,878,953	)					(8,155,883	)
Total increase (decrease) in net assets					(10,651,146	)					5,211,010
Net assets
Beginning of period					92,146,145						86,935,135
End of period				$	81,494,999					$	92,146,145
Undistributed net investment income				$	12,657					$	99,191

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

32 Wells Fargo VT Index Asset Allocation Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended December 31
CLASS 2	2015			2014			2013			2012			2011
Net asset value, beginning of period		$18.43			$15.85			$13.47			$12.09			$11.72
Net investment income		0.18			0.27			0.24			0.21			0.21
Net realized and unrealized gains (losses) on investments		0.05			2.57			2.39			1.36			0.54
Total from investment operations		0.23			2.84			2.63			1.57			0.75
Distributions to shareholders from
Net investment income		(0.19	)		(0.26	)		(0.25	)		(0.19	)		(0.38	)
Net asset value, end of period		$18.47			$18.43			$15.85			$13.47			$12.09
Total return		1.25	%		18.06	%		19.63	%		13.03	%		6.48	%
Ratios to average net assets (annualized)
Gross expenses		1.10	%		1.02	%		1.11	%		1.13	%		1.06	%
Net expenses		1.00	%		0.99	%		1.00	%		1.00	%		0.99	%
Net investment income		0.95	%		1.58	%		1.57	%		1.58	%		1.70	%
Supplemental data
Portfolio turnover rate		44	%		3	%		11	%		8	%		17	%
Net assets, end of period (000s omitted)		$81,495			$92,146			$86,935			$84,791			$89,402

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

Notes to financial statements Wells Fargo VT Index Asset Allocation Fund 33

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”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Wells Fargo VT Index Asset Allocation Fund (the “Fund”) which is a diversified series of the Trust.

2. SIGNIFICANT ACCOUNTING POLICIES

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

Securities valuation

All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time).

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

Equity securities that are not listed on a foreign or domestic exchange or market, but have a public trading market, are valued at the quoted bid price from an independent broker-dealer that the Management Valuation Team of Wells Fargo Funds Management, LLC (“Funds Management”) has determined is an acceptable source.

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

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

Investments which are not valued using any of the methods discussed above are valued at their fair value, as determined in good faith by the Board of Trustees of the Fund. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Management Valuation Team. The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Management Valuation Team which may include items for ratification.

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

Security loans

The Fund may lend its securities from time to time in order to earn additional income in the form of fees or interest on securities received as collateral or the investment of any cash received as collateral. The Fund continues to receive interest or dividends on the securities loaned. The Fund receives collateral in the form of cash or securities with a value at least equal to the value of the securities on loan. The value of the loaned securities is determined at the close of each business day and any additional required collateral is delivered to the Fund on the next business day. In a securities lending transaction, the net asset value of the Fund will be affected by an increase or decrease in the value of the securities loaned and by an increase or decrease in the value of the instrument in which collateral is invested. The amount

34 Wells Fargo VT Index Asset Allocation Fund Notes to financial statements

of securities lending activity undertaken by the Fund fluctuates from time to time. In the event of default or bankruptcy by the borrower, the Fund may be prevented from recovering the loaned securities or gaining access to the collateral or may experience delays or costs in doing so. In addition, the investment of any cash collateral received may lose all or part of its value. The Fund has the right under the lending agreement to recover the securities from the borrower on demand.

The Fund lends its securities through an unaffiliated securities lending agent. Cash collateral received in connection with its securities lending transactions is invested in Securities Lending Cash Investments, LLC (the “Securities Lending Fund”). The Securities Lending Fund is exempt from registration under Section 3(c)(7) of the 1940 Act and is managed by Funds Management and is subadvised by Wells Capital Management Incorporated (“WellsCap”). Funds Management receives an advisory fee starting at 0.05% and declining to 0.01% as the average daily net assets of the Securities Lending Fund increase. All of the fees received by Funds Management are paid to WellsCap for its services as subadviser. The Securities Lending Fund seeks to provide a positive return compared to the daily Fed Funds Open rate by investing in high-quality, U.S. dollar-denominated short-term money market instruments. Securities Lending Fund investments are fair valued based upon the amortized cost valuation technique. Income earned from investment in the Securities Lending Fund is included in securities lending income on the Statement of Operations.

Futures contracts

The Fund is subject to interest rate risk and equity price risk in the normal course of pursuing its investment objectives. The Fund may buy and sell futures contracts in order to gain exposure to, or protect against, changes in 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.

The aggregate principal amounts of the contracts are not recorded in the financial statements. Fluctuations in the value of the contracts are recorded in the Statement of Assets and Liabilities as an asset or liability and in the Statement of Operations as unrealized gains or losses until the contracts are closed, at which point they are recorded as net realized gains or losses on futures contracts. With futures contracts, there is minimal counterparty risk to the Fund since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.

Security transactions and income recognition

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

Dividend income is recognized on the ex-dividend date. Dividend income is recorded net of foreign taxes withheld where recovery of such taxes is not assured.

Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily 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

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 federal income tax regulations, which may differ in amount or character from net investment income and realized gains recognized for purposes of U.S. generally accepted accounting principles.

Federal and other taxes

The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.

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

Notes to financial statements Wells Fargo VT Index Asset Allocation Fund 35

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The primary permanent difference causing such reclassification is due to dividends on certain securities. At December 31, 2015, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Undistributed net investment income	Accumulated net realized gains on investments
$(25,690)	$25,690

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 significant 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:

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

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

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

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

36 Wells Fargo VT Index Asset Allocation Fund Notes to financial statements

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of December 31, 2015:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	6,207,056	$	0	$	0	$	6,207,056
Consumer staples		4,847,182		0		0		4,847,182
Energy		3,129,986		0		0		3,129,986
Financials		7,934,987		0		0		7,934,987
Health care		7,299,902		0		0		7,299,902
Industrials		4,838,839		0		0		4,838,839
Information technology		9,966,594		0		0		9,966,594
Materials		1,330,828		0		0		1,330,828
Telecommunication services		1,170,120		0		0		1,170,120
Utilities		1,438,101		0		0		1,438,101
Rights
Consumer staples		0		0		0		0
U.S. Treasury securities		31,957,726		0		0		31,957,726
Short-term investments
Investment companies		586,729		156,100		0		742,829
U.S. Treasury securities		99,970		0		0		99,970
		80,808,020		156,100		0		80,964,120
Futures contracts		703		0		0		703
Total assets	$	80,808,723	$	156,100	$	0	$	80,964,823
Liabilities
Futures contracts	$	20,542	$	0	$	0	$	20,542
Total liabilities	$	20,542	$	0	$	0	$	20,542

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

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At December 31, 2015, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

4. TRANSACTIONS WITH AFFILIATES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the applicable subadviser, providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.60% and declining to 0.43% as the average daily net assets of the Fund increase.

Prior to July 1, 2015, Funds Management provided advisory services pursuant to an investment advisory agreement and was entitled to receive an annual fee which started at 0.55% and declined to 0.40% as the average daily net assets of the Fund increased. In addition, fund-level administrative services were provided by Funds Management under a separate administration agreement at an annual fee which started at 0.05% and declined to 0.03% as the average daily net assets of the Fund increased. For financial statement purposes, the advisory fee and fund-level administration fee for the year ended December 31, 2015 have been included in management fee on the Statement of Operations.

Notes to financial statements Wells Fargo VT Index Asset Allocation Fund 37

For the year ended December 31, 2015, the management fee was equivalent to an annual rate of 0.60% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. WellsCap, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.15% and declining to 0.10% as the average daily net assets of the Fund increase.

Administration fee

Under a class-level administration agreement, Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under the class-level administration agreement, Funds Management receives a class level administration fee of 0.08% which is calculated based on the average daily net assets of Class 2 shares.

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through April 30, 2016 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 1.00% for Class 2 shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

Distribution fee

The Trust has adopted a distribution plan for Class 2 shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class 2 shares and paid to Wells Fargo Funds Distributor, LLC, the principal underwriter, at an annual rate of 0.25% of the average daily net assets of Class 2 shares.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding short-term securities, for the year ended December 31, 2015 were as follows:

Purchases at cost		Sales proceeds
U.S. government	Non-U.S. government	U.S. government	Non-U.S. government
$35,164,478	$1,465,901	$32,299,582	$6,774,827

6. DERIVATIVE TRANSACTIONS

During the year ended December 31, 2015, the Fund entered into futures contracts to gain market exposure to certain asset classes consistent with an active asset allocation strategy.

At December 31, 2015, the Fund had long and short futures contracts outstanding as follows:

Expiration date	Counterparty	Contracts	Type	Contract value at December 31, 2015		Unrealized gains (losses)
3-18-2016	Goldman Sachs	6 Long	S&P 500 E-Mini Index	$	610,620	$	(2,523	)
3-21-2016	Goldman Sachs	16 Short	10-Year U.S. Treasury Notes		2,014,500		5,701
3-21-2016	Goldman Sachs	13 Short	U.S. Treasury Bonds		2,062,938		(12,125	)
3-31-2016	Goldman Sachs	5 Long	5-Year U.S. Treasury Notes		591,602		(546	)

The Fund had an average notional amount of $4,205,496 and $4,507,151 in long and short futures contracts, respectively, during the year ended December 31, 2015.

38 Wells Fargo VT Index Asset Allocation Fund Notes to financial statements

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

The fair value of derivative instruments as of December 31, 2015 was as follows for the Fund:

	Asset derivatives				Liability derivatives
	Statement of Assets and Liabilities location	Fair value			Statement of Assets and Liabilities location	Fair value
Interest rate contracts	Receivable for daily variation margin on open futures contracts	$	703	*	Payable for daily variation margin on open futures contracts	$	18,019	*
Equity contracts	Receivable for daily variation margin on open futures contracts		0		Payable for daily variation margin on open futures contracts		2,523	*
		$	703			$	20,542

* Only the current day’s variation margin as of December 31, 2015 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, 2015 was as follows for the Fund:

	Amount of realized gains on derivatives		Change in unrealized gains (losses) on derivatives
Equity contracts	$	322,079	$	(125,398	)
Interest rate contracts		313,653		311,682
	$	635,732	$	186,284

For certain types of derivative transactions, the Fund has entered into International Swaps and Derivatives Association, Inc. master agreements (“ISDA Master Agreements”) or similar agreements with approved counterparties. The ISDA Master Agreements or similar agreements may have requirements to deliver/deposit securities or cash to/with an exchange or broker-dealer as collateral and allows the Fund to offset, with each counterparty, certain derivative financial instrument’s assets and/or liabilities with collateral held or pledged. Collateral requirements differ by type of derivative. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives while collateral terms are contract specific for over-the-counter traded derivatives. Cash collateral that has been pledged to cover obligations of the Fund under ISDA Master Agreements or similar agreements, if any, are reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, are noted in the Portfolio of Investments. With respect to balance sheet offsetting, absent an event of default by the counterparty or a termination of the agreement, the reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities are not offset across transactions between the Fund and the applicable counterparty. A reconciliation of the gross amounts on the Statement of Assets and Liabilities to the net amounts by derivative type, including any collateral exposure, is as follows:

Derivative type	Counterparty	Gross amounts of assets in the Statement of Assets and Liabilities	Amounts subject to netting agreements			Collateral received		Net amount of assets
Futures – variation margin	Goldman Sachs	$703	$	(703	)	$	0	$	0

Derivative type	Counterparty	Gross amounts of liabilities in the Statement of Assets and Liabilities	Amounts subject to netting agreements			Collateral pledged1			Net amount of liabilities
Futures – variation margin	Goldman Sachs	$20,542	$	(703	)	$	(19,839	)	$	0

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

Notes to financial statements Wells Fargo VT Index Asset Allocation Fund 39

7. BANK BORROWINGS

The Trust and Wells Fargo Funds Trust (excluding the money market funds and certain other funds) are parties to a $200,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.20% of the unused balance is allocated to each participating fund. Prior to September 1, 2015, the revolving credit agreement amount was $150,000,000 and the annual commitment fee was equal to 0.10% of the unused balance which was allocated to each participating fund. For the year ended December 31, 2015 the Fund paid $150 in commitment fees.

For the year ended December 31, 2015, there were no borrowings by the Fund under the agreement.

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid was $897,884 and $1,351,046 of ordinary income for the years ended December 31, 2015 and December 31, 2014, respectively.

As of December 31, 2015, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Undistributed long-term gain	Unrealized gains
$12,657	$2,289,112	$17,274,630

9. INDEMNIFICATION

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

40 Wells Fargo VT Index Asset Allocation 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 VT Index Asset Allocation Fund (formerly known as Wells Fargo Advantage VT Index Asset Allocation Fund) (the “Fund”), one of the funds constituting the Wells Fargo Variable Trust, as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2015, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo VT Index Asset Allocation Fund as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

February 25, 2016

Other information (unaudited) Wells Fargo VT Index Asset Allocation Fund 41

TAX INFORMATION

For corporate shareholders, pursuant to Section 854 of the Internal Revenue Code, 96.81% of ordinary income dividends qualify for the corporate dividends-received deduction for the fiscal year ended December 31, 2015.

For the fiscal year ended December 31, 2015, 34.70% of the dividends distributed was derived from interest on U.S. government securities.

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-260-5969, visiting our website at wellsfargofunds.com, or visiting the SEC website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website at wellsfargofunds.com or by visiting the SEC website at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

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

42 Wells Fargo VT Index Asset Allocation Fund Other information (unaudited)

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 144 mutual funds comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information². The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.

Independent Trustees

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
William R. Ebsworth (Born 1957)	Trustee, since 2015	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief financial officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he lead a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Mr. Ebsworth is a CFA® charterholder and an Adjunct Adjunct Lecturer, Finance, at Babson College.	Asset Allocation Trust
Jane A. Freeman (Born 1953)	Trustee, since 2015	Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair of the Audit Committee. Ms. Freeman is Chair of Taproot Foundation (non-profit organization) (non-profit organization), a Board Member of Ruth Bancroft Garden (non-profit organization) and an inactive chartered financial analyst.	Asset Allocation Trust
Peter G. Gordon (Born 1942)	Trustee, since 1998; Chairman, since 2005	Co-Founder, Retired Chairman, President and CEO of Crystal Geyser Water Company. Trustee Emeritus, Colby College.	Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. Chairman of the Board of CIGNA Corporation since 2009, and Director since 2005. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (charter school). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	CIGNA Corporation; Asset Allocation Trust
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, since 2008	Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant.	Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of the Corporate Governance Research Initiative and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust

Other information (unaudited) Wells Fargo VT Index Asset Allocation Fund 43

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust
Timothy J. Penny (Born 1951)	Trustee, since 1996	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
Michael S. Scofield (Born 1943)	Trustee, since 2010	Served on the Investment Company Institute’s Board of Governors and Executive Committee from 2008-2011 as well the Governing Council of the Independent Directors Council from 2006-2011 and the Independent Directors Council Executive Committee from 2008-2011. Chairman of the IDC from 2008-2010. Institutional Investor (Fund Directions) Trustee of Year in 2007. Trustee of the Evergreen Funds complex (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield.	Asset Allocation Trust
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. Director and Vice Chair of The Tree Trust (non-profit corporation). Director of the American Chestnut Foundation (non-profit corporation).	Asset Allocation Trust

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

** Donald Willeke retired as a Trustee effective December 31, 2015.

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
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.
Jeremy DePalma1 (Born 1974)	Treasurer, since 2012; Assistant Treasurer, since 2009	Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010 and head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.
C. David Messman (Born 1960)	Secretary, since 2000; Chief Legal Officer, since 2003	Senior Vice President and Secretary of Wells Fargo Funds Management, LLC since 2001. Assistant General Counsel of Wells Fargo Bank, N.A. since 2013 and Vice President and Managing Counsel of Wells Fargo Bank, N.A. from 1996 to 2013.
Debra Ann Early (Born 1964)	Chief Compliance Officer, since 2007	Executive Vice President of Wells Fargo Funds Management, LLC since 2014, Senior Vice President and Chief Compliance Officer from 2007 to 2014.
David Berardi (Born 1975)	Assistant Treasurer, since 2009	Vice President of Wells Fargo Funds Management, LLC since 2009. Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.

¹ Jeremy DePalma acts as Treasurer of 72 funds and Assistant Treasurer of 72 funds in the Fund Complex.

² The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling
1-800-260-5969 or by visiting the website at wellsfargofunds.com.

44 Wells Fargo VT Index Asset Allocation Fund List of abbreviations

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —   Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

For more information

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

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.com

Individual investors: 1-800-222-8222

Retail investment professionals: 1-888-877-9275

Institutional investment professionals: 1-866-765-0778

This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-260-5969 or visit the Fund’s website at wellsfargofunds.com. Read the prospectus carefully before you invest or send money.

Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the funds. The funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

© 2015 Wells Fargo Funds Management, LLC. All rights reserved.

239817 02-16 AVT2/AR148 12-15

Annual Report

December 31, 2015

Wells Fargo VT International Equity Fund

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	8
Portfolio of investments	9
Financial statements
Statement of assets and liabilities	12
Statement of operations	13
Statement of changes in net assets	14
Financial highlights	15
Notes to financial statements	17
Report of independent registered public accounting firm	24
Other information	25
List of abbreviations	28

The views expressed and any forward-looking statements are as of December 31, 2015, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Funds Management, LLC. Discussions of individual securities, or the markets generally, or any Wells Fargo Fund are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements. The views expressed are subject to change at any time in response to changing circumstances in the market. Wells Fargo Funds Management, LLC and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

2 Wells Fargo VT International Equity Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Funds

Slowing global growth as China’s economy decelerated restrained investor sentiment.

During the summer of 2015, the Hang Seng Index² in Hong Kong declined dramatically.

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo VT International Equity Fund for the 12-month period that ended December 31, 2015. International equity investors endured a year of concern. Slowing global growth as China’s economy decelerated restrained investor sentiment. Deflation worries emerged as prices fell for oil, natural gas, and other commodities. Currency volatility was sustained through the period as China allowed the yuan’s value to decline and the U.S. dollar strengthened. Terrorist violence globally unsettled markets. Disputes over sovereign debt payments between Greece and its lenders and dramatic reversals in China’s stock market dominated headlines in the spring and summer, respectively. Uneven albeit positive trends in the economies of Europe and Japan created uncertainty. The Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net),¹ a proxy for stock performance in international developed and emerging markets, recorded a -5.7% return in U.S. dollar terms for the period as the strengthening U.S. dollar reduced returns upon translation to U.S. currency. Negative investor sentiment extended beyond the reporting period into the new year as global markets experienced sharp sell-offs in early January 2016.

Overseas central bank policies diverged from the U.S. Federal Reserve.

Central bank actions abroad diverged during the period to be more accommodative when compared with the U.S. Federal Reserve, which moved toward increasing interest rates throughout the period, finally announcing an increase in December. The European Central Bank encouraged lending and investing by making funds available to banks at low interest rates, imposing a negative interest rate on bank deposits, and purchasing bonds through its quantitative easing program. The Bank of Japan continued economic stimulus programs that included injections of liquidity into the economy through bond purchases. The Government Pension Investment Fund reduced government bond investments and directed those assets to the Japanese stock market. The People’s Bank of China (PBOC) sought to spur economic growth by cutting interest rates six times in less than a year, lowering bank reserve requirements to encourage lending, and allowing the yuan to depreciate to support exports and advance government efforts to transition to a more market-driven economy.

Issues in international markets caused concern.

The eurozone’s largest economies—France, Germany, Italy, and Spain—reported positive gross domestic product (GDP) growth on an annualized basis in the second quarter of 2015, although results were uneven for smaller, developing economies in the region. In the third quarter, overall eurozone GDP growth slowed but remained positive. Signs of encouragement in the eurozone were more than offset by slowing economic growth in China.

During the summer of 2015, the Hang Seng Index² in Hong Kong declined dramatically. In response, the PBOC demonstrated its willingness to intervene in its financial and currency markets to advance the government’s stated intention of integrating its economy more fully with its global counterparts. While overall economic activity slowed in China, growth in its service-sector activities was a positive sign and reflects a significant economic shift in the world’s second-largest economy. Slowing economic growth in China reduced its importing activity and continued low prices for many commodities negatively affected China’s trading

¹  The Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets. You cannot invest directly in an index. Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products. This report is not approved, reviewed, or produced by MSCI.

² The Hang Seng Index is a free-float-adjusted market-capitalization-weighted stock market index in Hong Kong. It is used to record and monitor daily changes of the largest companies of the Hong Kong stock market and is the main indicator of the overall market performance in Hong Kong. You cannot invest directly in an index.

Letter to shareholders (unaudited) Wells Fargo VT International Equity Fund 3

partners, particularly markets with smaller, developing economies that rely on commodity exports.

In Japan, while broad economic growth has not yet demonstrated sustainable improvement as a result of Prime Minister Shinzo Abe’s Abenomics policies, selected corporate results have shown progress as a result of operational and governance reforms under Abenomics. Some of these corporate and regulatory reforms are enhancing the treatment of shareholders at a growing number of companies that are headquartered in Japan. The trend holds the potential of yielding more future investment opportunities in that country.

Developed European and Asian equity markets returned -0.8% for the period, as measured by the Morgan Stanley Capital International (MSCI) Europe, Australasia, Far East (EAFE) Index (Net).³ The MSCI Emerging Markets Index (Net)⁴ returned -14.9% during the same period as the effects of China’s slowdown were most severely felt in developing markets.

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

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

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

Sincerely,

Karla M. Rabusch

President

Wells Fargo Funds

The effects of China’s slowdown were most severely felt in developing markets.

Notice to shareholders

At a meeting held August 11–12, 2015, the Board of Trustees of the Fund approved a change in the name of the Fund whereby the word Advantage was removed from its name, effective December 15, 2015.

For further information about your Fund, contact your investment professional, visit our website at wellsfargofunds.com, or call us directly at 1-800-260-5969. We are available 24 hours a day, 7 days a week.

³  The MSCI EAFE Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada. The MSCI EAFE Index (Net) consists of the following 21 developed markets country indexes: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. You cannot invest directly in an index.

⁴  The MSCI Emerging Markets Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of emerging markets. The MSCI Emerging Markets Index consists of the following 23 emerging markets country indexes: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, the Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey, and United Arab Emirates. You cannot invest directly in an index.

4 Wells Fargo VT International Equity Fund Performance highlights (unaudited)

Investment objective

The Fund seeks long-term capital appreciation.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio manager

Dale A. Winner, CFA^®

Average annual total returns (%) as of December 31, 2015¹

									Expense ratios2 (%)
	Inception date	1 year			5 year		10 year		Gross		Net3
Class 1	8-17-1998		2.30			2.87		2.60		0.95		0.70
Class 2	7-31-2002		1.80			2.62		2.34		1.20		0.95
MSCI ACWI ex USA Index (Net)4	–		(5.66	)		1.06		2.92		–		–

Figures quoted represent past performance, which is no guarantee of future results. 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 and assumes the reinvestment of dividends and capital gains. Current month-end performance is available by calling 1-800-260-5969. Performance figures of the Fund do not reflect fees charged pursuant to the terms of variable life insurance policies and variable annuity contracts. If fees had been reflected, performance would have been lower.

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

Stock 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). The Fund is exposed to smaller-company securities 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.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo VT International Equity Fund 5

Growth of $10,000 investment as of December 31, 2015⁵

¹  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 changed its name from Wells Fargo Advantage VT International Core Fund to Wells Fargo VT International Equity Fund.

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

³  The manager has contractually committed through April 30, 2016, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver at 0.69% for Class 1 and 0.94% for Class 2. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the cap. Without this cap, the Fund’s returns would have been lower.

⁴  The Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets. You cannot invest directly in an index. Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products. This report is not approved, reviewed, or produced by MSCI.

⁵  The chart compares the performance of Class 2 shares for the most recent ten years with the MSCI ACWI ex USA Index (Net). The chart assumes a hypothetical $10,000 investment and reflects all operating expenses of the Fund. Performance figures of the Fund do not reflect fees charged pursuant to the terms of variable life insurance policies and variable annuity contracts.

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

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

6 Wells Fargo VT International Equity Fund Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

n The Fund outperformed its benchmark, the MSCI ACWI ex USA Index (Net), for the 12-month period that ended December 31, 2015.

n The Fund remains overweight in European companies, especially in Italy and Germany, as well as Japanese and Hong Kong companies, where the management team believes it has uncovered undervalued investments.

n For the one-year period, notable performance contributors included investments in diversified financials, particularly asset managers, and industrials, as well as underweights in energy and metals. Notable detractors included investments in consumer discretionary, telecommunication services, and health care.

Stock selection drove fund performance amid volatility.

Despite increased market volatility throughout the year, the investment team continued to employ an approach to fundamental research that has served us well in the past, searching for nonconsensus values around the globe; maintaining a focus on overall investment risk management; and rebalancing infrequently, doing so only to capture unusual stock market or company-specific price movements for investor’s potential benefit.

The investment team generated positive absolute and relative returns across each region globally. Some of the best stock performances came from the financial services sector, with ANIMA Holding S.p.A. the top relative contributor. Other notable contributors included China Everbright Limited; Prysmian S.p.A.; Daiwa House Industry Company, Limited; and Rheinmetall AG. Detractors included Hitachi, Limited; Hana Financial Group Incorporated; QUALCOMM Incorporated; and Hugo Boss AG.

Regionally, divergent and compelling investment opportunities are emerging.

In Europe, opportunities arose based on microeconomic fundamentals largely improving from self-help restructuring and signs of a cyclical economic recovery. Companies engaged in business revitalization and earnings normalization through the implementation of operational efficiencies—such as careful investment, cost-cutting, and portfolio reshaping—are set to bolster their profitability and benefit from the additional impetus of structural reforms and a continent-wide cyclical recovery. In Italy, targeted reforms, ranging from streamlining the country’s banking system and public bureaucracy to labor-market and tax incentives, are further uplifting economic activity and benefiting holdings Prysmian and ANIMA Holding. In Germany, we added to positions in Rheinmetall and initiated holdings in SAP AG.

In Japan, the distinctions between corporate new Japan and old Japan continued to widen. We watched core holdings transform their operating margins from lows of close to 5% three years ago to well over double that magnitude during 2015 in industry segments ranging from those with rising domestic reflation—such as Mitsubishi UFJ Financial Group, Incorporated, and Mitsui Fudosan Company, Limited—to areas marked by increased innovation, such as Yaskawa Electric Corporation. While Abenomics has already demonstrated the force and flexibility of incipient monetary and fiscal accommodation, elements of the more-difficult-to-achieve long-term structural and corporate governance reforms are just beginning to take shape.

This past year’s volatility in global capital markets was no more evident than in the swings in China’s A-share market, which makes shares of companies in mainland China available to foreign investors through the Qualified Foreign Institutional Investor (QFII) system, and was coincident with disruptions in energy and metals commodity markets. Our base-case assessment suggests that Chinese officials have several policy levers at their disposal to gradually assist with a more orderly and flexible adjustment. We continued to build positions in undervalued restructuring state-owned enterprises such as China Mobile Limited. We particularly favor the reforming financial services arena represented by holding China Everbright. We also liked several firms poised to benefit from the nation’s move away from industrial and commodity spending to consumer and discretionary spending, including Dongfeng Motor Group Company, Limited, and Kweichow Moutai Company, Limited.

We retained an underweight to emerging markets equities based on the belief that while some markets are home to potential values, many remain at risk of being value traps. Outside of the Hong Kong/China region and South Korea, we find few opportunities in emerging markets and increasing company, country, and currency risks as economies grapple with combinations of stagflation; dependency on foreign capital; stalling structural reforms; and untenable, intractable political risks. An underweight to Brazil aided relative results, given that market’s weak performance.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo VT International Equity Fund 7

We continue to adhere to our investment process while remaining mindful of risks.

We also expect that the equity and currency volatility across developed and emerging markets that was evident in 2015 will persist during 2016 as economies, central banks, and other public policy officials attempt to adjust from long-term deleveraging and economic imbalances. We partially hedged overweight exposures in Japanese and European currencies, which added to overall portfolio performance. We remain mindful of these risks globally in 2016 and look forward to seasoning our portfolio as opportunities arise in quarters to come.

Ten largest holdings(%) as of December 31, 20156
Mitsubishi UFJ Financial Group Incorporated	3.16
Hitachi Limited	3.15
Prysmian SpA	2.93
Rheinmetall AG	2.87
Compagnie de Saint-Gobain SA	2.85
Nomura Holdings Incorporated	2.65
Eni SpA	2.58
Akzo Nobel NV	2.56
Wolseley plc	2.56
Vodafone Group plc	2.55

Sector distribution as of December 31, 2015⁷

Country allocation as of December 31, 2015⁷

Please see footnotes on page 5.

8 Wells Fargo VT International Equity Fund Fund expenses (unaudited)

As a shareholder of the Fund, you incur ongoing costs, including management fees, distribution (12b-1) 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, 2015 to December 31, 2015.

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 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 separate account charges assessed by participating insurance companies were included, your costs would have been higher.

	Beginning account value 7-1-2015		Ending account value 12-31-2015		Expenses paid during the period¹		Net annualized expense ratio
Class 1
Actual	$	1,000.00	$	905.21	$	3.31		0.69	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.73	$	3.52		0.69	%
Class 2
Actual	$	1,000.00	$	903.07	$	4.51		0.94	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.47	$	4.79		0.94	%

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

Portfolio of investments—December 31, 2015 Wells Fargo VT International Equity Fund 9

Security name	Shares		Value
Common Stocks: 92.16%
Australia: 0.25%
BHP Billiton Limited (Materials, Metals & Mining)		63,541	$	817,745
Brazil: 0.08%
Cosan Limited Class A (Energy, Oil, Gas & Consumable Fuels)		65,456		241,533
Canada: 2.38%
Cameco Corporation (Energy, Oil, Gas & Consumable Fuels) «		238,380		2,939,225
Lundin Mining Corporation (Materials, Metals & Mining) †		825,776		2,267,796
Valeant Pharmaceuticals International Incorporated (Health Care, Pharmaceuticals) †		25,031		2,544,401
				7,751,422
China: 5.77%
Biostime International Holdings Limited (Consumer Staples, Food Products) «		935,500		1,916,529
Dongfeng Motor Group Company Limited H Shares (Consumer Discretionary, Automobiles)		5,568,000		7,376,026
Industrial & Commercial Bank of China Limited H Shares (Financials, Banks)		7,768,000		4,656,282
Shanghai Pharmaceuticals Holding Company Limited H Shares (Health Care, Pharmaceuticals)		1,221,100		2,631,969
Xtep International Holdings Limited (Consumer Discretionary, Textiles, Apparel & Luxury Goods)		4,162,179		2,211,039
				18,791,845
France: 2.85%
Compagnie de Saint-Gobain SA (Industrials, Building Products)		213,983		9,273,009
Germany: 13.81%
Bayer AG (Health Care, Pharmaceuticals)		47,125		5,885,457
Hugo Boss AG (Consumer Discretionary, Textiles, Apparel & Luxury Goods)		98,479		8,125,410
Metro AG (Consumer Staples, Food & Staples Retailing)		218,481		6,960,216
Rheinmetall AG (Industrials, Industrial Conglomerates)		140,700		9,352,586
SAP AG (Information Technology, Software)		81,286		6,450,297
Siemens AG (Industrials, Industrial Conglomerates)		84,422		8,167,476
				44,941,442
Hong Kong: 7.28%
China Everbright Limited (Financials, Capital Markets)		3,546,000		8,099,149
China Mobile Limited (Telecommunication Services, Wireless Telecommunication Services)		309,500		3,483,762
Value Partners Group Limited (Financials, Capital Markets)		6,150,000		7,148,442
Xinyi Glass Holdings Limited (Consumer Discretionary, Auto Components)		5,194,000		3,035,031
Xinyi Solar Holdings Limited (Information Technology, Semiconductors & Semiconductor Equipment)		4,722,000		1,914,358
				23,680,742
Italy: 8.36%
ANIMA Holding SpA (Financials, Capital Markets)		696,474		6,015,515
Eni SpA (Energy, Oil, Gas & Consumable Fuels)		564,612		8,389,109
Intesa Sanpaolo SpA (Financials, Banks)		985,736		3,273,628
Prysmian SpA (Industrials, Electrical Equipment)		436,050		9,527,307
				27,205,559
Japan: 21.86%
Coca-Cola East Japan Company Limited (Consumer Staples, Beverages)		389,700		6,275,615
Daiwa House Industry Company Limited (Financials, Real Estate Management & Development)		199,000		5,720,522

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

10 Wells Fargo VT International Equity Fund Portfolio of investments—December 31, 2015

Security name	Shares		Value
Japan (continued)
Daiwa Securities Group Incorporated (Financials, Capital Markets)		954,000	$	5,832,463
Hitachi Limited (Information Technology, Electronic Equipment, Instruments & Components)		1,810,000		10,256,131
Mitsubishi UFJ Financial Group Incorporated (Financials, Banks)		1,661,600		10,292,364
Mitsui Fudosan Company Limited (Financials, Real Estate Management & Development)		278,000		6,977,208
Nitto Denko Corporation (Materials, Chemicals)		72,682		5,306,198
Nomura Holdings Incorporated (Financials, Capital Markets)		1,546,300		8,612,976
Toyota Motor Corporation (Consumer Discretionary, Automobiles)		117,900		7,260,160
West Holdings Corporation (Consumer Discretionary, Household Durables) «		372,500		2,270,285
Yaskawa Electric Corporation (Information Technology, Electronic Equipment, Instruments & Components)		172,000		2,340,350
				71,144,272
Netherlands: 2.56%
Akzo Nobel NV (Materials, Chemicals)		124,880		8,344,312
Norway: 1.96%
Frontline Limited (Energy, Oil, Gas & Consumable Fuels)		834,362		2,392,764
Golden Ocean Group Limited (Industrials, Marine) †«		101,798		109,333
Marine Harvest ASA (Consumer Staples, Food Products)		289,068		3,889,357
				6,391,454
South Korea: 3.34%
Hana Financial Group Incorporated (Financials, Banks)		224,118		4,478,528
Samsung Electronics Company Limited GDR (Information Technology, Semiconductors & Semiconductor Equipment) 144A		10,197		5,406,297
SK Telecom Company Limited (Telecommunication Services, Wireless Telecommunication Services)		5,345		978,232
				10,863,057
Sweden: 1.13%
Volvo AB Class B (Industrials, Machinery)		397,624		3,686,990
Switzerland: 5.77%
ABB Limited (Industrials, Electrical Equipment)		349,269		6,233,615
Novartis AG (Health Care, Pharmaceuticals)		73,405		6,314,244
Zurich Insurance Group AG (Financials, Insurance)		24,233		6,225,453
				18,773,312
United Kingdom: 14.22%
BP plc (Energy, Oil, Gas & Consumable Fuels)		1,463,417		7,604,910
Capita plc (Industrials, Professional Services)		186,552		3,319,227
Man Group plc (Financials, Capital Markets)		2,567,854		6,605,823
Reckitt Benckiser Group plc (Consumer Staples, Household Products)		43,476		4,022,672
Smiths Group plc (Industrials, Industrial Conglomerates)		559,073		7,731,367
United Business Media Limited (Consumer Discretionary, Media)		47,479		367,981
Vodafone Group plc (Telecommunication Services, Wireless Telecommunication Services)		2,559,807		8,300,857
Wolseley plc (Industrials, Trading Companies & Distributors)		153,306		8,326,490
				46,279,327

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

Portfolio of investments—December 31, 2015 Wells Fargo VT International Equity Fund 11

Security name						Shares		Value
United States: 0.54%
QUALCOMM Incorporated (Information Technology, Communications Equipment)							35,236	$	1,761,271
Total Common Stocks (Cost $294,259,210)									299,947,292
				Expiration date
Participation Notes: 1.17%
China: 1.17%
HSBC Bank plc (Kweichow Moutai Company Limited Class A) (Consumer Staples, Beverages) †					2-19-2019		113,208		3,804,404
Total Participation Notes (Cost $3,366,557)									3,804,404
	Yield
Short-Term Investments: 6.61%
Investment Companies: 6.61%
Securities Lending Cash Investments, LLC (l)(r)(u)		0.39	%				4,575,035		4,575,035
Wells Fargo Cash Investment Money Market Fund, Select Class (l)(u)		0.33					16,945,120		16,945,120
Total Short-Term Investments (Cost $21,520,155)									21,520,155

Total investments in securities (Cost $319,145,922) *	99.94	%		325,271,851
Other assets and liabilities, net	0.06			196,573
Total net assets	100.00	%	$	325,468,424

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

† Non-income-earning security

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

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

(r) The investment is a non-registered investment vehicle purchased with cash collateral received from securities on loan.

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

* Cost for federal income tax purposes is $319,714,664 and unrealized gains (losses) consists of:

Gross unrealized gains	$	33,392,228
Gross unrealized losses		(27,835,041	)
Net unrealized gains	$	5,557,187

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

12 Wells Fargo VT International Equity Fund Statement of assets and liabilities—December 31, 2015

Assets
Investments
In unaffiliated securities (including $4,435,844 of securities loaned), at value (cost $297,625,767)	$	303,751,696
In affiliated securities, at value (cost $21,520,155)		21,520,155
Total investments, at value (cost $319,145,922)		325,271,851
Cash collateral received		328,000
Foreign currency, at value (cost $2,690,968)		2,400,695
Receivable for investments sold		1,535,588
Receivable for Fund shares sold		16,336
Receivable for dividends		858,499
Receivable for securities lending income		14,186
Unrealized gains on forward foreign currency contracts		1,078,825
Prepaid expenses and other assets		3,346
Total assets		331,507,326
Liabilities
Payable for investments purchased		371,239
Payable for Fund shares redeemed		158,365
Due to broker		328,000
Unrealized losses on forward foreign currency contracts		268,778
Payable upon receipt of securities loaned		4,575,035
Management fee payable		157,557
Distribution fee payable		69,680
Administration fees payable		24,581
Accrued expenses and other liabilities		85,667
Total liabilities		6,038,902
Total net assets	$	325,468,424
NET ASSETS CONSIST OF
Paid-in capital	$	288,905,902
Undistributed net investment income		8,040,861
Accumulated net realized gains on investments		21,854,994
Net unrealized gains on investments		6,666,667
Total net assets	$	325,468,424
COMPUTATION OF NET ASSET VALUE PER SHARE
Net assets – Class 1	$	30,253,540
Shares outstanding – Class 11		6,282,140
Net asset value per share – Class 1		$4.82
Net assets – Class 2	$	295,214,884
Shares outstanding – Class 21		60,992,920
Net asset value per share – Class 2		$4.84

¹  The Fund has an unlimited number of authorized shares.

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

Statement of operations—year ended December 31, 2015 Wells Fargo VT International Equity Fund 13

Investment income
Dividends (net of foreign withholding taxes of $738,919)	$	9,222,251
Securities lending income, net		186,826
Income from affiliated securities		22,829
Total investment income		9,431,906
Expenses
Management fee		2,781,586
Administration fees
Class 1		26,998
Class 2		251,161
Distribution fee
Class 2		784,878
Custody and accounting fees		104,451
Professional fees		60,823
Shareholder report expenses		49,557
Trustees’ fees and expenses		14,052
Interest expense		872
Other fees and expenses		23,279
Total expenses		4,097,657
Less: Fee waivers and/or expense reimbursements		(912,789	)
Net expenses		3,184,868
Net investment income		6,247,038
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		26,131,332
Forward foreign currency contract transactions		4,085,379
Net realized gains on investments		30,216,711
Net change in unrealized gains (losses) on:
Unaffiliated securities		(25,743,926	)
Forward foreign currency contract transactions		(1,328,696	)
Net change in unrealized gains (losses) on investments		(27,072,622	)
Net realized and unrealized gains (losses) on investments		3,144,089
Net increase in net assets resulting from operations	$	9,391,127

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

14 Wells Fargo VT International Equity Fund Statement of changes in net assets

	Year ended December 31, 2015						Year ended December 31, 2014
Operations
Net investment income				$	6,247,038					$	10,834,511
Net realized gains on investments					30,216,711						2,201,263
Net change in unrealized gains (losses) on investments					(27,072,622	)					(32,033,033	)
Net increase (decrease) in net assets resulting from operations					9,391,127						(18,997,259	)
Distributions to shareholders from
Net investment income
Class 1					(1,411,647	)					(1,068,920	)
Class 2					(11,944,889	)					(8,395,187	)
Net realized gains
Class 1					0						(836,185	)
Class 2					0						(7,242,278	)
Total distributions to shareholders					(13,356,536	)					(17,542,570	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class 1		1,225,746			6,328,345			448,360			2,313,021
Class 2		4,763,141			24,649,508			6,415,713			32,449,977
					30,977,853						34,762,998
Reinvestment of distributions
Class 1		274,639			1,411,647			367,780			1,905,105
Class 2		2,310,423			11,944,889			3,001,422			15,637,465
					13,356,536						17,542,570
Payment for shares redeemed
Class 1		(1,838,812	)		(9,547,629	)		(1,861,970	)		(9,716,924	)
Class 2		(8,932,752	)		(48,861,658	)		(4,628,256	)		(24,125,462	)
					(58,409,287	)					(33,842,386	)
Net increase (decrease) in net assets resulting from capital share transactions					(14,074,898	)					18,463,182
Total decrease in net assets					(18,040,307	)					(18,076,647	)
Net assets
Beginning of period					343,508,731						361,585,378
End of period				$	325,468,424					$	343,508,731
Undistributed net investment income				$	8,040,861					$	11,208,738

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

Financial highlights Wells Fargo VT International Equity Fund 15

(For a share outstanding throughout each period)

	Year ended December 31
CLASS 1	2015			2014			2013			2012			2011
Net asset value, beginning of period		$4.92			$5.48			$4.94			$4.77			$5.75
Net investment income		0.11	1		0.18	1		0.12	1		0.13	1		0.11	1
Net realized and unrealized gains (losses) on investments		0.02			(0.46	)		0.82			0.45			(0.80	)
Total from investment operations		0.13			(0.28	)		0.94			0.58			(0.69	)
Distributions to shareholders from
Net investment income		(0.23	)		(0.16	)		(0.13	)		(0.08	)		(0.04	)
Net realized gains		0.00			(0.12	)		(0.27	)		(0.33	)		(0.25	)
Total distributions to shareholders		(0.23	)		(0.28	)		(0.40	)		(0.41	)		(0.29	)
Net asset value, end of period		$4.82			$4.92			$5.48			$4.94			$4.77
Total return		2.30	%		(5.30	)%		19.94	%		13.68	%		(12.79	)%
Ratios to average net assets (annualized)
Gross expenses		0.95	%		0.94	%		0.95	%		0.98	%		0.97	%
Net expenses		0.69	%		0.69	%		0.69	%		0.69	%		0.69	%
Net investment income		2.04	%		3.44	%		2.36	%		2.68	%		2.06	%
Supplemental data
Portfolio turnover rate		34	%		39	%		32	%		140	%		66	%
Net assets, end of period (000s omitted)		$30,254			$32,599			$42,021			$43,089			$46,017

¹  Calculated based upon average shares outstanding

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

16 Wells Fargo VT International Equity Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended December 31
CLASS 2	2015			2014			2013			2012			2011
Net asset value, beginning of period		$4.95			$5.50			$4.96			$4.78			$5.74
Net investment income		0.09	1		0.16			0.11	1		0.11			0.09	1
Net realized and unrealized gains (losses) on investments		0.01			(0.45	)		0.82			0.47			(0.79	)
Total from investment operations		0.10			(0.29	)		0.93			0.58			(0.70	)
Distributions to shareholders from
Net investment income		(0.21	)		(0.14	)		(0.12	)		(0.07	)		(0.01	)
Net realized gains		0.00			(0.12	)		(0.27	)		(0.33	)		(0.25	)
Total distributions to shareholders		(0.21	)		(0.26	)		(0.39	)		(0.40	)		(0.26	)
Net asset value, end of period		$4.84			$4.95			$5.50			$4.96			$4.78
Total return		1.80	%		(5.35	)%		19.52	%		13.48	%		(12.91	)%
Ratios to average net assets (annualized)
Gross expenses		1.20	%		1.20	%		1.20	%		1.23	%		1.22	%
Net expenses		0.94	%		0.94	%		0.94	%		0.94	%		0.94	%
Net investment income		1.77	%		3.07	%		2.08	%		2.41	%		1.75	%
Supplemental data
Portfolio turnover rate		34	%		39	%		32	%		140	%		66	%
Net assets, end of period (000s omitted)		$295,215			$310,909			$319,565			$296,705			$227,692

¹  Calculated based upon average shares outstanding

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

Notes to financial statements Wells Fargo VT International Equity Fund 17

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”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Wells Fargo VT International Equity Fund (the “Fund”) which is a diversified series of the Trust.

2. SIGNIFICANT ACCOUNTING POLICIES

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

Securities valuation

All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time).

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

Equity securities that are not listed on a foreign or domestic exchange or market, but have a public trading market, are valued at the quoted bid price from an independent broker-dealer that the Management Valuation Team of Wells Fargo Funds Management, LLC (“Funds Management”) has determined is an acceptable source.

The values of securities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Management Valuation Team.

Many securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange and therefore may not fully reflect trading or events that occur after the close of the principal exchange in which the foreign securities are traded, but before the close of the New York Stock Exchange. If such trading or events are expected to materially affect the value of such securities, then fair value pricing procedures approved by the Board of Trustees of the Fund are applied. These procedures take into account multiple factors including movements in U.S. securities markets after foreign exchanges close. Foreign securities that are fair valued under these procedures are categorized as Level 2 and the application of these procedures may result in transfers between Level 1 and Level 2. Depending on market activity, such fair valuations may be frequent. Such fair value pricing may result in net asset values that are higher or lower than net asset values based on the last reported sales price or latest quoted bid price. On December 31, 2015, such fair value pricing was used in pricing foreign securities.

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

Investments which are not valued using any of the methods discussed above are valued at their fair value, as determined in good faith by the Board of Trustees. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Management Valuation Team. The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Management Valuation Team which may include items for ratification.

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

18 Wells Fargo VT International Equity Fund Notes to financial statements

used in determining fair valuations are identified based on the type of security, taking into consideration factors utilized by market participants in valuing the investment, knowledge about the issuer and the current market environment.

Foreign currency translation

The accounting records of the Fund are maintained in U.S. dollars. The values of other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Management Valuation Team. Purchases and sales of securities, and income and expenses are converted at the rate of exchange on the respective dates of such transactions. Net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded and the U.S. dollar equivalent of the amounts actually paid or received. Net unrealized foreign exchange gains and losses arise from changes in the fair value of assets and liabilities other than investments in securities resulting from changes in exchange rates. The changes in net assets arising from changes in exchange rates and the changes in net assets resulting from changes in market prices of securities are not separately presented. Such changes are included in net realized and unrealized gains or losses from investments.

Forward foreign currency contracts

The Fund is subject to foreign currency 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 forward foreign currency contract transactions. The Fund could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. The Fund’s maximum risk of loss from counterparty credit risk is the unrealized gains on the contracts. This risk may be mitigated if there is a master netting arrangement between the Fund and the counterparty.

Security loans

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

The Fund lends its securities through an unaffiliated securities lending agent. Cash collateral received in connection with its securities lending transactions is invested in Securities Lending Cash Investments, LLC (the “Securities Lending Fund”). The Securities Lending Fund is exempt from registration under Section 3(c)(7) of the 1940 Act and is managed by Funds Management and is subadvised by Wells Capital Management Incorporated (“WellsCap”). Funds Management receives an advisory fee starting at 0.05% and declining to 0.01% as the average daily net assets of the Securities Lending Fund increase. All of the fees received by Funds Management are paid to WellsCap for its services as subadviser. The Securities Lending Fund seeks to provide a positive return compared to the daily Fed Funds Open rate by investing in high-quality, U.S. dollar-denominated short-term money market instruments. Securities Lending Fund investments are fair valued based upon the amortized cost valuation technique. Income earned from investment in the Securities Lending Fund is included in securities lending income on the Statement of Operations.

Security transactions and income recognition

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

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

Notes to financial statements Wells Fargo VT International Equity Fund 19

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 federal income tax regulations, which may differ in amount or character from net investment income and realized gains recognized for purposes of U.S. generally accepted accounting principles.

Federal and other taxes

The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.

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

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The primary permanent difference causing such reclassification is due to foreign currency transactions. At December 31, 2015, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Undistributed net investment income	Accumulated net realized gains on investments
$3,941,621	$(3,941,621)

As of December 31, 2015, the Fund had capital loss carryforward available to offset future net realized capital gains in the amount of $1,334,528 expiring in 2017.

Class allocations

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

3. FAIR VALUATION MEASUREMENTS

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

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

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

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

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

20 Wells Fargo VT International Equity Fund Notes to financial statements

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of December 31, 2015:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Australia	$	0	$	817,745	$	0	$	817,745
Brazil		241,533		0		0		241,533
Canada		7,751,422		0		0		7,751,422
China		0		18,791,845		0		18,791,845
France		0		9,273,009		0		9,273,009
Germany		0		44,941,442		0		44,941,442
Hong Kong		0		23,680,742		0		23,680,742
Italy		0		27,205,559		0		27,205,559
Japan		0		71,144,272		0		71,144,272
Netherlands		0		8,344,312		0		8,344,312
Norway		0		6,391,454		0		6,391,454
South Korea		0		10,863,057		0		10,863,057
Sweden		0		3,686,990		0		3,686,990
Switzerland		0		18,773,312		0		18,773,312
United Kingdom		0		46,279,327		0		46,279,327
United States		1,761,271		0		0		1,761,271
Participation notes
China		0		3,804,404		0		3,804,404
Short-term investments
Investment companies		16,945,120		4,575,035		0		21,520,155
		26,699,346		298,572,505		0		325,271,851
Forward foreign currency contracts		0		1,078,825		0		1,078,825
Total assets	$	26,699,346	$	299,651,330	$	0	$	326,350,676
Liabilities
Forward foreign currency contracts	$	0	$	268,778	$	0	$	268,778
Total liabilities	$	0	$	268,778	$	0	$	268,778

Forward foreign currency contracts are reported at their unrealized gains (losses) at measurement date, which represents the change in the contract’s value from trade date. All other assets and liabilities are reported at their market value at measurement date.

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At December 31 2015, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

4. TRANSACTIONS WITH AFFILIATES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the applicable subadviser, providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.80% and declining to 0.63% as the average daily net assets of the Fund increase.

Notes to financial statements Wells Fargo VT International Equity Fund 21

Prior to July 1, 2015, Funds Management provided advisory services pursuant to an investment advisory agreement and was entitled to receive an annual fee which started at 0.75% and declined to 0.60% as the average daily net assets of the Fund increased. In addition, fund-level administrative services were provided by Funds Management under a separate administration agreement at an annual fee which started at 0.05% and declined to 0.03% as the average daily net assets of the Fund increased. For financial statement purposes, the advisory fee and fund-level administration fee for the year ended December 31, 2015 have been included in management fee on the Statement of Operations.

For the year ended December 31, 2015, the management fee was equivalent to an annual rate of 0.80% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. WellsCap, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.45% and declining to 0.40% as the average daily net assets of the Fund increase.

Administration fees

Under a class-level administration agreement, Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under the class-level administration agreement, Funds Management receives a class level administration fee of 0.08% which is calculated based on the average daily net assets of each class.

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through April 30, 2016 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.69% for Class 1 shares and 0.94% for Class 2 shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

Distribution fee

The Trust has adopted a distribution plan for Class 2 shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class 2 shares and paid to Wells Fargo Funds Distributor, LLC, the principal underwriter, at an annual rate of 0.25% of the average daily net assets of Class 2 shares.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended December 31, 2015 were $108,240,539 and $115,108,916, respectively.

6. DERIVATIVE TRANSACTIONS

During the year ended December 31, 2015, the Fund entered into forward foreign currency contracts for economic hedging purposes.

At December 31, 2015, the Fund had forward foreign currency contracts outstanding as follows:

Forward foreign currency contracts to buy:

Exchange date	Counterparty	Contracts to receive		U.S. value at December 31, 2015		In exchange for U.S. $		Unrealized gains (losses)
1-13-2016	Credit Suisse		4,282,400 EUR	$	4,654,866	$	4,670,000	$	(15,134	)
2-29-2016	Barclays		11,837,000 EUR		12,881,379		12,574,445		306,934

22 Wells Fargo VT International Equity Fund Notes to financial statements

Forward foreign currency contracts to sell:

Exchange date	Counterparty	Contracts to deliver		U.S. value at December 31, 2015		In exchange for U.S. $		Unrealized gains (losses)
1-13-2016	Credit Suisse		13,541,851 EUR	$	14,719,668	$	15,321,521	$	601,853
1-13-2016	Citibank		1,690,756,000 JPY		14,069,677		14,131,321		61,644
2-29-2016	Barclays		118,370,00 EUR		12,881,379		12,627,735		(253,644	)
3-16-2016	Morgan Stanley		6,860,000 EUR		7,468,475		7,494,454		25,979
3-16-2016	Morgan Stanley		5,373,200 EUR		5,849,797		5,932,212		82,415

The Fund had average contract amounts of $5,235,107 and $53,105,148 in forward foreign currency contracts to buy and forward foreign currency contracts to sell, respectively, during the year ended December 31, 2015. As of December 31, 2015, the Fund had received $328,000 as cash collateral for forward foreign currency contracts.

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

For certain types of derivative transactions, the Fund has entered into International Swaps and Derivatives Association, Inc. master agreements (“ISDA Master Agreements”) or similar agreements with approved counterparties. The ISDA Master Agreements or similar agreements may have requirements to deliver/deposit securities or cash to/with an exchange or broker-dealer as collateral and allows the Fund to offset, with each counterparty, certain derivative financial instrument’s assets and/or liabilities with collateral held or pledged. Collateral requirements differ by type of derivative. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives while collateral terms are contract specific for over-the-counter traded derivatives. Cash collateral that has been pledged to cover obligations of the Fund under ISDA Master Agreements or similar agreements, if any, are reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, are noted in the Portfolio of Investments. With respect to balance sheet offsetting, absent an event of default by the counterparty or a termination of the agreement, the reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities are not offset across transactions between the Fund and the applicable counterparty. A reconciliation of the gross amounts on the Statement of Assets and Liabilities to the net amounts by derivative type, including any collateral exposure, is as follows:

Derivative type	Counterparty	Gross amounts of assets in the Statement of Assets and Liabilities			Amounts subject to netting agreements			Collateral received			Net amount of assets
Forward foreign currency contracts	Barclays	$	306,934	*	$	(253,644	)	$	0		$	53,290
	Credit Suisse		601,853	*		(15,134	)		0			586,719
	Citibank		61,644	*		0			0			61,644
	Morgan Stanley		108,394	*		0			(108,394	)		0

* Amount represents net unrealized gains.

Derivative type	Counterparty	Gross amounts of liabilities in the Statement of Assets and Liabilities			Amounts subject to netting agreements			Collateral pledged		Net amount of liabilities
Forward foreign currency contracts	Barclays	$	253,644	**	$	(253,644	)	$	0	$	0
	Credit Suisse		15,134	**		(15,134	)		0		0

** Amount represents net unrealized losses.

Notes to financial statements Wells Fargo VT International Equity Fund 23

7. BANK BORROWINGS

The Trust and Wells Fargo Funds Trust (excluding the money market funds and certain other funds) are parties to a $200,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.20% of the unused balance is allocated to each participating fund. Prior to September 1, 2015, the revolving credit agreement amount was $150,000,000 and the annual commitment fee was equal to 0.10% of the unused balance which was allocated to each participating fund. For the year ended December 31, 2015, the Fund paid $731 in commitment fees.

During the year ended December 31, 2015, the Fund had average borrowings outstanding of $62,286 at an average rate of 1.40% and paid interest in the amount of $872.

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended December 31, 2015 and December 31, 2014 were as follows:

	Year ended December 31
	2015		2014
Ordinary income	$	13,356,536	$	9,464,107
Long-term capital gain		0		8,078,463

As of December 31, 2015, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Undistributed long-term gain	Unrealized gains	Capital loss carryforward
$9,313,803	$23,302,105	$5,287,876	$(1,334,528)

9. CONCENTRATION RISK

Concentration risks result from exposure to a limited number of sectors. A fund that invests a substantial portion of its assets in any sector may be more affected by changes in that sector than would be a fund whose investments are not heavily weighted in any sector.

10. INDEMNIFICATION

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

24 Wells Fargo VT International 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 VT International Equity Fund (formerly known as Wells Fargo Advantage VT International Equity Fund) (the “Fund”), one of the funds constituting the Wells Fargo Variable Trust, as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2015, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo VT International Equity Fund as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

February 25, 2016

Other information (unaudited) Wells Fargo VT International Equity Fund 25

TAX INFORMATION

Pursuant to Section 853 of the Internal Revenue Code, the following amounts have been designated as foreign taxes paid for the fiscal year ended December 31, 2105. These amounts may be less than the actual foreign taxes paid for financial statement purposes. Foreign taxes paid or withheld should be included in taxable income with an offsetting deduction from gross income or as a credit for taxes paid to foreign governments. None of the income was derived from ineligible foreign sources as defined under Section 901(j) of the Internal Revenue Code.

Creditable foreign taxes paid	Per share amount	Foreign income as % of ordinary income distributions
$452,423	$0.0067	55.65%

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-260-5969, visiting our website at wellsfargofunds.com, or visiting the SEC website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website at wellsfargofunds.com or by visiting the SEC website at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

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

26 Wells Fargo VT International Equity Fund Other information (unaudited)

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 144 mutual funds comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information². The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.

Independent Trustees

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
William R. Ebsworth (Born 1957)	Trustee, since 2015	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief financial officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he lead a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Mr. Ebsworth is a CFA® charterholder and an Adjunct Lecturer, Finance, at Babson College.	Asset Allocation Trust
Jane A. Freeman (Born 1953)	Trustee, since 2015	Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair of the Audit Committee. Ms. Freeman is Chair of Taproot Foundation (non-profit organization), a Board Member of Ruth Bancroft Garden (non-profit organization) and an inactive chartered financial analyst.	Asset Allocation Trust
Peter G. Gordon (Born 1942)	Trustee, since 1998; Chairman, since 2005	Co-Founder, Retired Chairman, President and CEO of Crystal Geyser Water Company. Trustee Emeritus, Colby College.	Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. Chairman of the Board of CIGNA Corporation since 2009, and Director since 2005. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (charter school). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	CIGNA Corporation; Asset Allocation Trust
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, since 2008	Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant.	Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of the Corporate Governance Research Initiative and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust

Other information (unaudited) Wells Fargo VT International Equity Fund 27

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust
Timothy J. Penny (Born 1951)	Trustee, since 1996	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
Michael S. Scofield (Born 1943)	Trustee, since 2010	Served on the Investment Company Institute’s Board of Governors and Executive Committee from 2008-2011 as well the Governing Council of the Independent Directors Council from 2006-2011 and the Independent Directors Council Executive Committee from 2008-2011. Chairman of the IDC from 2008-2010. Institutional Investor (Fund Directions) Trustee of Year in 2007. Trustee of the Evergreen Funds complex (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield.	Asset Allocation Trust
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. Director and Vice Chair of The Tree Trust (non-profit corporation). Director of the American Chestnut Foundation (non-profit corporation).	Asset Allocation Trust

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

** Donald Willeke retired as a Trustee effective December 31, 2015.

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
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.
Jeremy DePalma1 (Born 1974)	Treasurer, since 2012; Assistant Treasurer, since 2009	Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010 and head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.
C. David Messman (Born 1960)	Secretary, since 2000; Chief Legal Officer, since 2003	Senior Vice President and Secretary of Wells Fargo Funds Management, LLC since 2001. Assistant General Counsel of Wells Fargo Bank, N.A. since 2013 and Vice President and Managing Counsel of Wells Fargo Bank, N.A. from 1996 to 2013.
Debra Ann Early (Born 1964)	Chief Compliance Officer, since 2007	Executive Vice President of Wells Fargo Funds Management, LLC since 2014, Senior Vice President and Chief Compliance Officer from 2007 to 2014.
David Berardi (Born 1975)	Assistant Treasurer, since 2009	Vice President of Wells Fargo Funds Management, LLC since 2009. Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.

¹ Jeremy DePalma acts as Treasurer of 72 funds and Assistant Treasurer of 72 funds in the Fund Complex.

² The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling
1-800-260-5969 or by visiting the website at wellsfargofunds.com.

28 Wells Fargo VT International Equity Fund List of abbreviations

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —   Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

For more information

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

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.com

Individual investors: 1-800-222-8222

Retail investment professionals: 1-888-877-9275

Institutional investment professionals: 1-866-765-0778

This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call
1-800-260-5969 or visit the Fund’s website at wellsfargofunds.com. Read the prospectus carefully before you invest or send money.

Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the funds. The funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

© 2015 Wells Fargo Funds Management, LLC. All rights reserved.

239818 02-16 AVT3/AR149 12-15

Annual Report

December 31, 2015

Wells Fargo VT Intrinsic Value Fund

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	8
Portfolio of investments	9
Financial statements
Statement of assets and liabilities	12
Statement of operations	13
Statement of changes in net assets	14
Financial highlights	15
Notes to financial statements	16
Report of independent registered public accounting firm	20
Other information	21
List of abbreviations	24

The views expressed and any forward-looking statements are as of December 31, 2015, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Funds Management, LLC. Discussions of individual securities, or the markets generally, or any Wells Fargo Fund are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements. The views expressed are subject to change at any time in response to changing circumstances in the market. Wells Fargo Funds Management, LLC and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

2 Wells Fargo VT Intrinsic Value Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Funds

Although U.S. economic data generally improved during the period, ongoing global turmoil somewhat tempered economic growth.

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo VT Intrinsic Value Fund for the 12-month period that ended December 31, 2015. The broad U.S. stock market returned 0.48% for the reporting period (as measured by the Russell 3000^® Index).¹ Although U.S. economic data generally improved during the period, ongoing global turmoil somewhat tempered economic growth. Outside the U.S., many economies and markets faced ongoing challenges, such as the negative effects of China’s slowing economy and declining prices for oil, natural gas, and other commodities.

In the first quarter of 2015, U.S. stocks delivered positive results overall; major markets elsewhere generally rallied.

U.S. large-, mid-, and small-cap stocks tended to move similarly during the quarter until early March, when results began to diverge by market capitalization. Larger caps slipped that month as investor concern grew over the strengthening U.S. dollar’s potentially negative effect on the profits of large U.S. multinational firms; stocks of small and midsize companies, which tend to be less affected by movements in the dollar, performed better. A gradually improving U.S. economy supported positive stock results. The labor market continued growing, along with personal income and consumer confidence. For U.S. businesses, the quarter’s data were mixed; while many companies reported strong earnings, other data indicated potential weakening in manufacturing. Elsewhere in the world, major markets enjoyed positive returns spurred by accommodative monetary policies from major central banks and signs of improvement in some struggling economies.

Globally, stock markets experienced heightened volatility during the second quarter of 2015.

The broad U.S. stock market fluctuated widely during this quarter, eventually eking out a 0.14% gain (as measured by the Russell 3000 Index^®). Larger stocks at times were pressured by ongoing investor concerns over the potentially negative effects on U.S. companies of a strengthening U.S. dollar and financially troubled overseas economies. The U.S. economy picked up traction during the quarter; consumer spending improved, construction and new-home sales enjoyed positive trends, and jobs growth remained a bright spot. Federal reserve (Fed) officials, who continued to keep interest rates low while waiting for the U.S. jobs market to sufficiently improve and for inflation to approach their 2% target, made clear they could take action soon. Throughout the quarter, markets outside the U.S. remained volatile, largely due to uncertainty over the potential impact of financial challenges in other locations—most notably in Greece and Puerto Rico. Questions over slower growth in China also worried investors.

In the third quarter of 2015, China’s slowdown took a toll on U.S. and international markets.

U.S. stocks fluctuated significantly in the quarter as investors worried about the impact on the U.S. of China’s slowing growth. The broad U.S. stock market fell 7.25%, as measured by the Russell 3000 Index^®. A number of positive economic indicators released during the quarter suggested the U.S. economy remained solid. However, the strengthening U.S. dollar coupled with ongoing global economic turmoil continued to hinder the economy. Although many investors believed the Fed would raise the federal funds rate during the quarter, at its September meeting the Fed left the rate unchanged. This decision fueled uncertainty about the U.S. economy’s stamina to remain healthy while facing the negative effects of troubles elsewhere in the world. One week later, Fed Chair Janet Yellen reassured investors that, barring unpleasant surprises, the Fed still intended to raise the rate in 2015. International markets were more volatile than the domestic market and delivered even weaker quarterly results. Investors’ anxiety was driven largely by China’s weakened economy. Because China is the

¹ The Russell 3000 Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market. You cannot invest directly in an index.

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

world’s largest importer of many commodities, a number of emerging markets—key commodities exporters—struggled under the strains of reduced demand for commodities and lower prices for the commodities sold.

The U.S. stock market rose in the fourth quarter of 2015 despite ongoing concerns.

The broad U.S. stock market bounced back in the fourth quarter, ending with a 6.27% quarterly return (as measured by the Russell 3000 Index^®). Stock markets outside the U.S. failed to keep pace with the domestic market as economic concerns, including China’s ongoing slowdown, continued to affect many countries worldwide. U.S. economic data released during the quarter indicated the economy remained solid, with modest growth. However, the strong U.S. dollar and global economic turmoil continued their drag on the economy. In December, the Fed, as expected, slightly raised its target short-term interest rate to between 0.25% and 0.50% after keeping it near zero for seven years. The move, which had been well telegraphed by the Fed for months, reflected confidence in the U.S. economy’s ability to stay healthy with less central-bank support. The Fed also made clear that future interest-rate increases will be gradual.

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

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

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

Sincerely,

Karla M. Rabusch

President

Wells Fargo Funds

Experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future.

Notice to shareholders

At a meeting held August 11-12, 2015, the Board of Trustees of the Fund approved a change in the name of the Fund whereby the word “Advantage” was removed from its name, effective December 15, 2015.

Notice to shareholders

At a meeting held on November 17-18, 2015, the Board of Trustees of Wells Fargo Variable Trust unanimously approved the liquidation of the Fund. The Fund was closed to new insurance companies effective November 19, 2015 and will be closed to new direct investors and additional investments from existing shareholders effective at the close of business on April 27, 2016. The liquidation of the Fund is expected to occur after close of business on or about April 29, 2016. Shareholders of the Fund on the date of liquidation will receive a distribution of their account proceeds, including any accrued dividends, in complete redemption of their shares.

For further information about your Fund, contact your investment professional, visit our website at wellsfargofunds.com, or call us directly at 1-800-260-5969. We are available 24 hours a day, 7 days a week.

4 Wells Fargo VT Intrinsic Value Fund Performance highlights (unaudited)

Investment objective

The Fund seeks long-term capital appreciation.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Metropolitan West Capital Management, LLC

Portfolio managers

Miguel E. Giaconi, CFA^®

Jean-Baptiste Nadal, CFA^®

Jeffrey Peck

Average annual total returns (%) as of December 31, 2015¹

									Expense ratios2 (%)
	Inception date	1 year			5 year		10 year		Gross		Net3
Class 2	5-6-1996		(0.52	)		10.82		5.58		1.08		1.00
Russell 1000® Value Index4	–		(3.83	)		11.27		6.16		–		–

Figures quoted represent past performance, which is no guarantee of future results. 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 and assumes the reinvestment of dividends and capital gains. Current month-end performance is available by calling 1-800-260-5969. Performance figures of the Fund do not reflect fees charged pursuant to the terms of variable life insurance policies and variable annuity contracts. If fees had been reflected, performance would have been lower.

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

Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to foreign investment risk. 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.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo VT Intrinsic Value Fund 5

Growth of $10,000 investment as of December 31, 2015⁵

¹  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.

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

³  The manager has contractually committed through April 30, 2016, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver at the amount shown. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the cap. Without this cap, the Fund’s returns would have been lower.

⁴  The Russell 1000^® Value Index measures the performance of those Russell 1000 companies with lower price/book ratios and lower forecasted growth values. You cannot invest directly in an index.

⁵  The chart compares the performance of Class 2 shares for the most recent ten years with the Russell 1000^® Value Index. The chart assumes a hypothetical $10,000 investment and reflects all operating expenses of the Fund. Performance figures of the Fund do not reflect fees charged pursuant to the terms of variable life insurance policies and variable annuity contracts.

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

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

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

6 Wells Fargo VT Intrinsic Value Fund Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

n The Fund outperformed its benchmark, the Russell 1000^® Value Index, for the 12-month period that ended December 31, 2015.

n Stock selection accounted for a majority of the Fund’s outperformance. Relative sector weightings, which are a by-product of our bottom-up security-selection process, were net contributors during the period.

n An underweight to the energy sector, the worst performing sector during the period, added the most value. Security selection in the consumer staples, financials, and industrials sectors contributed to relative return. However, the positive effect was partially offset by an underweight to the financials sector, which was an outperforming sector in the index. In addition, an underweight to health care, the best-performing sector in the index, subtracted value.

Stock selection was the primary source of outperformance during the 12-month period.

During the period, the energy sector was the worst performing sector. The portfolio’s underweight to energy made the strongest contribution to performance during the period. Security selection in the consumer staples, financials, and industrials sectors was a key driver of relative portfolio outperformance. A financials sector underweight partially offset that positive effect. Primary contributors included global brewer Anheuser-Busch InBev in the consumer staples sector, property and casualty insurance company The Chubb Corporation* in the financials sector, and aerospace firm The Boeing Company in the industrials sector.

Ten largest holdings (%) as of December 31, 20156
BB&T Corporation	3.22
Lockheed Martin Corporation	3.02
Microsoft Corporation	3.02
Goldman Sachs Group Incorporated	2.98
Anheuser-Busch InBev NV ADR	2.93
The TJX Companies Incorporated	2.75
Honeywell International Incorporated	2.63
Abbott Laboratories	2.57
Cigna Corporation	2.55
Alphabet Incorporated Class C	2.54

Sector distribution as of December 31, 2015⁷

An underweight to the heath care sector, which was the best performing sector during the period, detracted from relative performance. Sector weights are purely the result of our bottom-up stock-selection process.

The Fund’s non-U.S. holdings contributed to relative performance. We continue to maintain our global research perspective, which we believe allows us to fully understand the future investment potential of the companies in which we invest by providing context on their worldwide competitors, suppliers, and customers.

During the past 12 months, we added several high-quality investments to the Fund’s holdings and divested several positions according to our disciplined investment process.

The Fund’s information technology (IT) sector overweight increased with new investments in technology-oriented consulting services provider Accenture plc; internet company Alphabet Incorporated; networking equipment manufacturer Cisco Systems, Incorporated; and public safety communication networks and devices provider Motorola Solutions, Incorporated, despite the sale of high-end data storage company EMC Corporation*. The Fund decreased its overweight to the consumer discretionary sector with the sale of luxury and sports and lifestyle conglomerate Kering SA, media company

Time Warner Incorporated, and auto-parts supplier TRW Automotive Holdings Corporation, although it purchased apparel and home fashions retailer The TJX Companies, Incorporated. The Fund’s energy sector underweight widened with the divestment of oil and natural gas exploration and production company BG Group plc. We added to the Fund’s industrials sector investments with the purchase of aircraft lessor AerCap Holdings and defense contractor Lockheed Martin Corporation after selling shipbuilder Huntington Ingalls Industries, Incorporated. Meanwhile, the Fund’s slight underweight changed to a slight overweight to health care with the sale of biopharmaceutical company AbbVie

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo VT Intrinsic Value Fund 7

Incorporated and global, diversified health care company Baxter International Incorporated and the purchase of pharmaceutical companies Merck and Company, Incorporated, and Gilead Sciences, Incorporated. Meanwhile, the overweight to the consumer staples sector decreased with the sale of household and personal care products provider Unilever N.V.

We believe individual company fundamentals determine security performance.

In 2015, investor emotions swung like a pendulum, mainly on concerns about the eventual rise in U.S. short-term interest rates, the oil production and demand imbalance, and slowing growth in China. Despite more normal levels of volatility, markets ended mostly neutral for the year. However, the most prominent global equity market distortion is the increasing divergence between growth and value styles of investing. Growth has mostly prevailed since 2006. This represents the longest period of growth dominance in history. Over longer periods of time, value has typically outpaced growth. With the current bull market in its late stages, highly concentrated leadership within the broad index, and a greater percentage of active managers beating their benchmarks, the stage seems set for a resurgence of the value style on a global basis.

Investment performance in 2015 reflects our commitment to our investment approach and shifting market conditions toward once again favoring high-quality investments, defined as stocks of companies with established operating histories, financial strength, sound competitive positions, and proven management. We believe this high-quality bias is in the early stages, as evidenced by the significant levels of activism, including merger and acquisition activity and shareholder efforts to influence corporate actions, within this high-quality space. Additionally, the environment of rising interest rates, increased market volatility, and continued deceleration of earnings growth bodes well for a continuation of this trend. A return to the value style may reinforce stronger relative performance and broadening of the performance premium.

We remain committed to our intrinsic value investment approach, seeking high-quality companies with stock prices that we believe are trading at a significant discount to our intrinsic value estimates and where we can identify catalysts that we believe may close the value gap over our investment horizon.

Please see footnotes on page 5.

8 Wells Fargo VT Intrinsic Value Fund Fund expenses (unaudited)

As a shareholder of the Fund, you incur ongoing costs, including management fees, distribution (12b-1) 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, 2015 to December 31, 2015.

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 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 separate account charges assessed by participating insurance companies were included, your costs would have been higher.

	Beginning account value 7-1-2015		Ending account value 12-31-2015		Expenses paid during the period¹		Net annualized expense ratio
Class 2
Actual	$	1,000.00	$	973.09	$	4.97		1.00	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.16	$	5.09		1.00	%

¹  Expenses paid is equal to the 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, 2015 Wells Fargo VT Intrinsic Value Fund 9

Security name	Shares		Value
Common Stocks: 97.94%
Consumer Discretionary: 7.22%
Hotels, Restaurants & Leisure: 1.94%
Marriott International Incorporated Class A		10,908	$	731,272
Media: 2.53%
The Walt Disney Company		9,044		950,344
Specialty Retail: 2.75%
The TJX Companies Incorporated		14,570		1,033,159
Consumer Staples: 8.68%
Beverages: 6.27%
Anheuser-Busch InBev NV ADR		8,815		1,101,875
Diageo plc ADR		3,500		381,745
PepsiCo Incorporated		8,778		877,098
				2,360,718
Household Products: 2.41%
The Procter & Gamble Company		11,418		906,703
Energy: 6.22%
Energy Equipment & Services: 3.16%
FMC Technologies Incorporated †		17,612		510,924
Schlumberger Limited		9,716		677,691
				1,188,615
Oil, Gas & Consumable Fuels: 3.06%
EOG Resources Incorporated		10,994		778,265
Occidental Petroleum Corporation		5,528		373,748
				1,152,013
Financials: 21.04%
Banks: 7.91%
BB&T Corporation		32,019		1,210,638
CIT Group Incorporated		21,310		846,007
SunTrust Banks Incorporated		21,501		921,103
				2,977,748
Capital Markets: 6.74%
Charles Schwab Corporation		21,635		712,441
Goldman Sachs Group Incorporated		6,212		1,119,589
UBS Group AG		36,331		703,731
				2,535,761
Consumer Finance: 2.12%
Synchrony Financial †		26,228		797,593
Insurance: 2.38%
The Allstate Corporation		14,405		894,406

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

10 Wells Fargo VT Intrinsic Value Fund Portfolio of investments—December 31, 2015

Security name	Shares		Value
REITs: 1.89%
Crown Castle International Corporation		8,231	$	711,570
Health Care: 12.25%
Biotechnology: 2.48%
Gilead Sciences Incorporated		9,240		934,996
Health Care Equipment & Supplies: 2.57%
Abbott Laboratories		21,507		965,879
Health Care Providers & Services: 4.91%
Cigna Corporation		6,562		960,217
Express Scripts Holding Company †		10,156		887,736
				1,847,953
Pharmaceuticals: 2.29%
Merck & Company Incorporated		16,318		861,917
Industrials: 14.96%
Aerospace & Defense: 8.00%
Honeywell International Incorporated		9,563		990,440
Lockheed Martin Corporation		5,240		1,137,866
The Boeing Company		6,096		881,421
				3,009,727
Air Freight & Logistics: 2.07%
United Parcel Service Incorporated Class B		8,114		780,810
Electrical Equipment: 2.45%
Sensata Technologies Holding NV †		19,988		920,647
Trading Companies & Distributors: 2.44%
Aercap Holdings NV †		21,299		919,265
Information Technology: 21.32%
Communications Equipment: 5.20%
Cisco Systems Incorporated		30,940		840,176
Motorola Solutions Incorporated		13,717		938,929
QUALCOMM Incorporated		3,528		176,347
				1,955,452
Internet Software & Services: 2.54%
Alphabet Incorporated Class C †		1,259		955,430
IT Services: 4.43%
Accenture plc Class A		8,792		918,764
The Western Union Company		41,728		747,348
				1,666,112
Semiconductors & Semiconductor Equipment: 2.17%
Texas Instruments Incorporated		14,860		814,477

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

Portfolio of investments—December 31, 2015 Wells Fargo VT Intrinsic Value Fund 11

Security name				Shares		Value
Software: 5.10%
Microsoft Corporation					20,498	$	1,137,229
Oracle Corporation					21,446		783,422
							1,920,651
Technology Hardware, Storage & Peripherals: 1.88%
Apple Incorporated					6,731		708,506
Telecommunication Services: 1.91%
Diversified Telecommunication Services: 1.91%
Verizon Communications Incorporated					15,516		717,150
Utilities: 4.34%
Electric Utilities: 2.52%
NextEra Energy Incorporated					9,106		946,022
Multi-Utilities: 1.82%
WEC Energy Group Incorporated					13,348		684,886
Total Common Stocks (Cost $31,648,943)							36,849,782
	Yield
Short-Term Investments: 2.40%
Investment Companies: 2.40%
Wells Fargo Cash Investment Money Market Fund, Select Class (l)(u)		0.33	%		903,401		903,401
Total Short-Term Investments (Cost $903,401)							903,401

Total investments in securities (Cost $32,552,344) *	100.34	%		37,753,183
Other assets and liabilities, net	(0.34	)		(126,236	)
Total net assets	100.00	%	$	37,626,947

† Non-income-earning security

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

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

* Cost for federal income tax purposes is $32,561,771 and unrealized gains (losses) consists of:

Gross unrealized gains	$	6,370,017
Gross unrealized losses		(1,178,605	)
Net unrealized gains	$	5,191,412

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

12 Wells Fargo VT Intrinsic Value Fund Statement of assets and liabilities—December 31, 2015

Assets
Investments
In unaffiliated securities, at value (cost $31,648,943)	$	36,849,782
In affiliated securities, at value (cost $903,401)		903,401
Total investments, at value (cost $32,552,344)		37,753,183
Receivable for dividends		45,799
Receivable for securities lending income		44
Prepaid expenses and other assets		576
Total assets		37,799,602
Liabilities
Payable for investments purchased		72,303
Payable for Fund shares redeemed		28,014
Management fee payable		14,151
Distribution fee payable		8,904
Administration fee payable		2,849
Shareholder report expenses payable		10,338
Professional fees payable		34,047
Accrued expenses and other liabilities		2,049
Total liabilities		172,655
Total net assets	$	37,626,947
NET ASSETS CONSIST OF
Paid-in capital	$	24,949,608
Undistributed net investment income		434,678
Accumulated net realized gains on investments		7,041,822
Net unrealized gains on investments		5,200,839
Total net assets	$	37,626,947
COMPUTATION OF NET ASSET VALUE PER SHARE
Net assets – Class 2	$	37,626,947
Shares outstanding – Class 21		2,155,439
Net asset value per share – Class 2		$17.46

¹  The Fund has an unlimited number of authorized shares.

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

Statement of operations—year ended December 31, 2015 Wells Fargo VT Intrinsic Value Fund 13

Investment income
Dividends (net of foreign withholding taxes of $12,242)	$	851,922
Securities lending income, net		6,850
Income from affiliated securities		1,950
Total investment income		860,722
Expenses
Management fee		255,609
Administration fee
Class 2		34,081
Distribution fee
Class 2		106,504
Custody and accounting fees		12,957
Professional fees		46,267
Shareholder report expenses		17,715
Trustees’ fees and expenses		18,013
Other fees and expenses		6,763
Total expenses		497,909
Less: Fee waivers and/or expense reimbursements		(71,893	)
Net expenses		426,016
Net investment income		434,706
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on investments		7,046,441
Net change in unrealized gains (losses) on investments		(7,608,431	)
Net realized and unrealized gains (losses) on investments		(561,990	)
Net decrease in net assets resulting from operations	$	(127,284	)

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

14 Wells Fargo VT Intrinsic Value Fund Statement of changes in net assets

	Year ended December 31, 2015						Year ended December 31, 2014
Operations
Net investment income				$	434,706					$	362,797
Net realized gains on investments					7,046,441						6,916,346
Net change in unrealized gains (losses) on investments					(7,608,431	)					(2,563,404	)
Net increase (decrease) in net assets resulting from operations					(127,284	)					4,715,739
Distributions to shareholders from
Net investment income – Class 2					(362,803	)					(367,828	)
Net realized gains – Class 2					(6,018,040	)					0
Total distributions to shareholders					(6,380,843	)					(367,828	)
Capital share transactions		Shares						Shares
Proceeds from shares sold – Class 2		92,099			1,842,781			68,901			1,337,139
Reinvestment of distributions – Class 2		356,472			6,380,843			18,521			367,828
Payment for shares redeemed – Class 2		(533,587	)		(10,386,757	)		(568,515	)		(11,100,349	)
Net decrease in net assets resulting from capital share transactions					(2,163,133	)					(9,395,382	)
Total decrease in net assets					(8,671,260	)					(5,047,471	)
Net assets
Beginning of period					46,298,207						51,345,678
End of period				$	37,626,947					$	46,298,207
Undistributed net investment income				$	434,678					$	362,775

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

Financial highlights Wells Fargo VT Intrinsic Value Fund 15

(For a share outstanding throughout each period)

	Year ended December 31
CLASS 2	2015			2014			2013			2012			2011
Net asset value, beginning of period		$20.66			$18.87			$14.63			$12.42			$12.76
Net investment income		0.22			0.18			0.15			0.18			0.18
Net realized and unrealized gains (losses) on investments		(0.25	)		1.76			4.27			2.22			(0.45	)
Total from investment operations		(0.03	)		1.94			4.42			2.40			(0.27	)
Distributions to shareholders from
Net investment income		(0.18	)		(0.15	)		(0.18	)		(0.19	)		(0.07	)
Net realized gains		(2.99	)		0.00			0.00			0.00			0.00
Total distributions to shareholders		(3.17	)		(0.15	)		(0.18	)		(0.19	)		(0.07	)
Net asset value, end of period		$17.46			$20.66			$18.87			$14.63			$12.42
Total return		(0.52	)%		10.31	%		30.30	%		19.47	%		(2.15	)%
Ratios to average net assets (annualized)
Gross expenses		1.17	%		1.08	%		1.12	%		1.14	%		1.17	%
Net expenses		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%
Net investment income		1.02	%		0.75	%		0.74	%		1.07	%		1.17	%
Supplemental data
Portfolio turnover rate		37	%		26	%		22	%		22	%		26	%
Net assets, end of period (000s omitted)		$37,627			$46,298			$51,346			$46,563			$46,285

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

16 Wells Fargo VT Intrinsic 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”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Wells Fargo VT Intrinsic Value Fund (the “Fund”) which is a diversified series of the Trust.

2. SIGNIFICANT ACCOUNTING POLICIES

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

Securities valuation

All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time).

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

Equity securities that are not listed on a foreign or domestic exchange or market, but have a public trading market, are valued at the quoted bid price from an independent broker-dealer that the Management Valuation Team of Wells Fargo Funds Management, LLC (“Funds Management”) has determined is an acceptable source.

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

Investments which are not valued using any of the methods discussed above are valued at their fair value, as determined in good faith by the Board of Trustees of the Fund. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Management Valuation Team. The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Management Valuation Team which may include items for ratification.

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

Security loans

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

Notes to financial statements Wells Fargo VT Intrinsic Value Fund 17

The Fund lends its securities through an unaffiliated securities lending agent. Cash collateral received in connection with its securities lending transactions is invested in Securities Lending Cash Investments, LLC (the “Securities Lending Fund”). The Securities Lending Fund is exempt from registration under Section 3(c)(7) of the 1940 Act and is managed by Funds Management and is subadvised by Wells Capital Management Incorporated (“WellsCap”). Funds Management receives an advisory fee starting at 0.05% and declining to 0.01% as the average daily net assets of the Securities Lending Fund increase. All of the fees received by Funds Management are paid to WellsCap for its services as subadviser. The Securities Lending Fund seeks to provide a positive return compared to the daily Fed Funds Open rate by investing in high-quality, U.S. dollar-denominated short-term money market instruments. Securities Lending Fund investments are fair valued based upon the amortized cost valuation technique. Income earned from investment in the Securities Lending Fund is included in securities lending income on the Statement of Operations.

Security transactions and income recognition

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

Dividend income is recognized on the ex-dividend date. Dividend income is recorded net of foreign taxes withheld where recovery of such taxes is not assured.

Distributions to shareholders

Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-dividend date. Such distributions are determined in conformity with federal income tax regulations, which may differ in amount or character from net investment income and realized gains recognized for purposes of U.S. generally accepted accounting principles.

Federal and other taxes

The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.

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

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 significant 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:

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

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

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

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

18 Wells Fargo VT Intrinsic Value Fund Notes to financial statements

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of December 31, 2015:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	2,714,775	$	0	$	0	$	2,714,775
Consumer staples		3,267,421		0		0		3,267,421
Energy		2,340,628		0		0		2,340,628
Financials		7,917,078		0		0		7,917,078
Health care		4,610,745		0		0		4,610,745
Industrials		5,630,449		0		0		5,630,449
Information technology		8,020,628		0		0		8,020,628
Telecommunication		717,150		0		0		717,150
Utilities		1,630,908		0		0		1,630,908
Short-term investments				0		0
Investment companies		903,401		0		0		903,401
Total assets	$	37,753,183	$	0	$	0	$	37,753,183

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At December 31, 2015, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

4. TRANSACTIONS WITH AFFILIATES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the applicable subadviser, providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.60% and declining to 0.43% as the average daily net assets of the Fund increase.

Prior to July 1, 2015, Funds Management provided advisory services pursuant to an investment advisory agreement and was entitled to receive an annual fee which started at 0.55% and declined to 0.40% as the average daily net assets of the Fund increased. In addition, fund-level administrative services were provided by Funds Management under a separate administration agreement at an annual fee which started at 0.05% and declined to 0.03% as the average daily net assets of the Fund increased. For financial statement purposes, the advisory fee and fund-level administration fee for the year ended December 31, 2015 have been included in management fee on the Statement of Operations.

For the year ended December 31, 2015, the management fee was equivalent to an annual rate of 0.60% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. Metropolitan West Capital Management, LLC, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.35% and declining to 0.25% as the average daily net assets of the Fund increase.

Administration fee

Under a class-level administration agreement, Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under the class-level administration agreement, Funds Management receives a class level administration fee of 0.08% which is calculated based on the average daily net assets of Class 2 shares.

Notes to financial statements Wells Fargo VT Intrinsic Value Fund 19

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through April 30, 2016 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 1.00% for Class 2 shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

Distribution fee

The Trust has adopted a distribution plan for Class 2 shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class 2 shares and paid to Wells Fargo Funds Distributor, LLC, the principal underwriter, at an annual rate of 0.25% of the average daily net assets of Class 2 shares.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended December 31, 2015 were $14,876,960 and $22,992,760, respectively.

6. BANK BORROWINGS

The Trust and Wells Fargo Funds Trust (excluding the money market funds and certain other funds) are parties to a $200,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.20% of the unused balance is allocated to each participating fund. Prior to September 1, 2015, the revolving credit agreement amount was $150,000,000 and the annual commitment fee was equal to 0.10% of the unused balance which was allocated to each participating fund. For the year ended December 31, 2015, the Fund paid $74 in commitment fees.

For the year ended December 31, 2015, there were no borrowings by the Fund under the agreement.

7. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended December 31, 2015 and December 31, 2014 were as follows:

	Year ended December 31
	2015		2014
Ordinary income	$	362,803	$	367,828
Long-term capital gain		6,018,040		0

As of December 31, 2015, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Undistributed long-term gain	Unrealized gains
$576,702	$6,909,225	$5,191,412

8. INDEMNIFICATION

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

9. FUND LIQUIDATION

At a regular meeting of the Board of Trustees held on November 17-18, 2015, the Trustees unanimously approved the liquidation of the Fund. The Fund was closed to new insurance companies effective November 19, 2015 and will be closed to new direct investors and additional investments from existing shareholders effective at the close of business on April 27, 2016. The liquidation of the Fund is expected to occur after the close of business on or about April 29, 2016. Shareholders of the Fund on the date of liquidation will receive a distribution of their account proceeds, including any accrued dividends, in complete redemption of their shares.

20 Wells Fargo 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 VT Intrinsic Value Fund (formerly known as Wells Fargo Advantage VT Intrinsic Value Fund) (the “Fund”), one of the funds constituting the Wells Fargo Variable Trust, as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2015, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo VT Intrinsic Value Fund as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

As described in Note 9 to the financial statements, the Board of Trustees of the Fund unanimously approved the liquidation of the Fund. Shareholders of the Fund on the date of liquidation will receive a distribution of their account proceeds, including any accrued dividends, in complete redemption of their shares.

Boston, Massachusetts

February 25, 2016

Other information (unaudited) Wells Fargo VT Intrinsic Value Fund 21

TAX INFORMATION

For corporate shareholders, pursuant to Section 854 of the Internal Revenue Code, 100% of ordinary income dividends qualify for the corporate dividends-received deduction for the fiscal year ended December 31, 2015.

Pursuant to Section 852 of the Internal Revenue Code, $6,018,040 was designated as long-term capital gain distributions for the fiscal year ended December 31, 2015.

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-260-5969, visiting our website at wellsfargofunds.com, or visiting the SEC website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website at wellsfargofunds.com or by visiting the SEC website at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

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

22 Wells Fargo VT Intrinsic Value Fund Other information (unaudited)

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 144 mutual funds comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information². The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.

Independent Trustees

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
William R. Ebsworth (Born 1957)	Trustee, since 2015	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief financial officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he lead a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Mr. Ebsworth is a CFA® charterholder and an Adjunct Lecturer, Finance, at Babson College.	Asset Allocation Trust
Jane A. Freeman (Born 1953)	Trustee, since 2015	Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair of the Audit Committee. Ms. Freeman is Chair of Taproot Foundation (non-profit organization), a Board Member of Ruth Bancroft Garden (non-profit organization) and an inactive chartered financial analyst.	Asset Allocation Trust
Peter G. Gordon (Born 1942)	Trustee, since 1998; Chairman, since 2005	Co-Founder, Retired Chairman, President and CEO of Crystal Geyser Water Company. Trustee Emeritus, Colby College.	Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. Chairman of the Board of CIGNA Corporation since 2009, and Director since 2005. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (charter school). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	CIGNA Corporation; Asset Allocation Trust
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, since 2008	Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant.	Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of the Corporate Governance Research Initiative and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust

Other information (unaudited) Wells Fargo VT Intrinsic Value Fund 23

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust
Timothy J. Penny (Born 1951)	Trustee, since 1996	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
Michael S. Scofield (Born 1943)	Trustee, since 2010	Served on the Investment Company Institute’s Board of Governors and Executive Committee from 2008-2011 as well the Governing Council of the Independent Directors Council from 2006-2011 and the Independent Directors Council Executive Committee from 2008-2011. Chairman of the IDC from 2008-2010. Institutional Investor (Fund Directions) Trustee of Year in 2007. Trustee of the Evergreen Funds complex (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield.	Asset Allocation Trust
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. Director and Vice Chair of The Tree Trust (non-profit corporation). Director of the American Chestnut Foundation (non-profit corporation).	Asset Allocation Trust

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

** Donald Willeke retired as a Trustee effective December 31, 2015.

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
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.
Jeremy DePalma1 (Born 1974)	Treasurer, since 2012; Assistant Treasurer, since 2009	Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010 and head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.
C. David Messman (Born 1960)	Secretary, since 2000; Chief Legal Officer, since 2003	Senior Vice President and Secretary of Wells Fargo Funds Management, LLC since 2001. Assistant General Counsel of Wells Fargo Bank, N.A. since 2013 and Vice President and Managing Counsel of Wells Fargo Bank, N.A. from 1996 to 2013.
Debra Ann Early (Born 1964)	Chief Compliance Officer, since 2007	Executive Vice President of Wells Fargo Funds Management, LLC since 2014, Senior Vice President and Chief Compliance Officer from 2007 to 2014.
David Berardi (Born 1975)	Assistant Treasurer, since 2009	Vice President of Wells Fargo Funds Management, LLC since 2009. Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.

¹ Jeremy DePalma acts as Treasurer of 72 funds and Assistant Treasurer of 72 funds in the Fund Complex.

² The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling
1-800-260-5969 or by visiting the website at wellsfargofunds.com.

24 Wells Fargo VT Intrinsic Value Fund List of abbreviations

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —   Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

For more information

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

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.com

Individual investors: 1-800-222-8222

Retail investment professionals: 1-888-877-9275

Institutional investment professionals: 1-866-765-0778

This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call
1-800-260-5969 or visit the Fund’s website at wellsfargofunds.com. Read the prospectus carefully before you invest or send money.

Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the funds. The funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

© 2015 Wells Fargo Funds Management, LLC. All rights reserved.

239819 02-16 AVT4/AR150 12-15

Annual Report

December 31, 2015

Wells Fargo VT Omega Growth Fund

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	8
Portfolio of investments	9
Financial statements
Statement of assets and liabilities	13
Statement of operations	14
Statement of changes in net assets	15
Financial highlights	16
Notes to financial statements	18
Report of independent registered public accounting firm	23
Other information	24
List of abbreviations	27

The views expressed and any forward-looking statements are as of December 31, 2015, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Funds Management, LLC. Discussions of individual securities, or the markets generally, or any Wells Fargo Fund are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements. The views expressed are subject to change at any time in response to changing circumstances in the market. Wells Fargo Funds Management, LLC and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

2 Wells Fargo VT Omega Growth Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Funds

Although U.S. economic data generally improved during the period, ongoing global turmoil somewhat tempered

economic growth.

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo VT Omega Growth Fund for the 12-month period that ended December 31, 2015. The broad U.S. stock market returned 0.48% for the reporting period (as measured by the Russell 3000^® Index).¹ Although U.S. economic data generally improved during the period, ongoing global turmoil somewhat tempered economic growth. Outside the U.S., many economies and markets faced ongoing challenges, such as the negative effects of China’s slowing economy and declining prices for oil, natural gas, and other commodities.

In the first quarter of 2015, U.S. stocks delivered positive results overall; major markets elsewhere generally rallied.

U.S. large-, mid-, and small-cap stocks tended to move similarly during the quarter until early March, when results began to diverge by market capitalization. Larger caps slipped that month as investor concern grew over the strengthening U.S. dollar’s potentially negative effect on the profits of large U.S. multinational firms; stocks of small and midsize companies, which tend to be less affected by movements in the dollar, performed better. A gradually improving U.S. economy supported positive stock results. The labor market continued growing, along with personal income and consumer confidence. For U.S. businesses, the quarter’s data were mixed; while many companies reported strong earnings, other data indicated potential weakening in manufacturing. Elsewhere in the world, major markets enjoyed positive returns spurred by accommodative monetary policies from major central banks and signs of improvement in some struggling economies.

Globally, stock markets experienced heightened volatility during the second quarter of 2015.

The broad U.S. stock market fluctuated widely during this quarter, eventually eking out a 0.14% gain (as measured by the Russell 3000^® Index). Larger stocks at times were pressured by ongoing investor concerns over the potentially negative effects on U.S. companies of a strengthening U.S. dollar and financially troubled overseas economies. The U.S. economy picked up traction during the quarter; consumer spending improved, construction and new-home sales enjoyed positive trends, and jobs growth remained a bright spot. Federal Reserve (Fed) officials, who continued to keep interest rates low while waiting for the U.S. jobs market to sufficiently improve and for inflation to approach their 2% target, made clear they could take action soon. Throughout the quarter, markets outside the U.S. remained volatile, largely due to uncertainty over the potential impact of financial challenges in other locations—most notably in Greece and Puerto Rico. Questions over slower growth in China also worried investors.

In the third quarter of 2015, China’s slowdown took a toll on U.S. and international markets.

U.S. stocks fluctuated significantly in the quarter as investors worried about the impact on the U.S. of China’s slowing growth. The broad U.S. stock market fell 7.25%, as measured by the Russell 3000^® Index. A number of positive economic indicators released during the quarter suggested the U.S. economy remained solid. However, the strengthening U.S. dollar coupled with ongoing global economic turmoil continued to hinder the economy. Although many investors believed the Fed would raise the federal funds rate during the quarter, at its September meeting the Fed left the rate unchanged. This decision fueled uncertainty about the U.S. economy’s stamina to remain healthy while facing the negative effects of troubles elsewhere in the world. One week later, Fed Chair

¹  The Russell 3000^® Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market. You cannot invest directly in an index.

Letter to shareholders (unaudited) Wells Fargo VT Omega Growth Fund 3

Janet Yellen reassured investors that, barring unpleasant surprises, the Fed still intended to raise the rate in 2015. International markets were more volatile than the domestic market and delivered even weaker quarterly results. Investors’ anxiety was driven largely by China’s weakened economy. Because China is the world’s largest importer of many commodities, a number of emerging markets—key commodities exporters—struggled under the strains of reduced demand for commodities and lower prices for the commodities sold.

The U.S. stock market rose in the fourth quarter of 2015 despite ongoing concerns.

The broad U.S. stock market bounced back in the fourth quarter, ending with a 6.27% quarterly return (as measured by the Russell 3000^® Index). Stock markets outside the U.S. failed to keep pace with the domestic market as economic concerns, including China’s ongoing slowdown, continued to affect many countries worldwide. U.S. economic data released during the quarter indicated the economy remained solid, with modest growth. However, the strong U.S. dollar and global economic turmoil continued their drag on the economy. In December, the Fed, as expected, slightly raised its target short-term interest rate to between 0.25% and 0.50% after keeping it near zero for seven years. The move, which had been well telegraphed by the Fed for months, reflected confidence in the U.S. economy’s ability to stay healthy with less central-bank support. The Fed also made clear that future interest-rate increases will be gradual.

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

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

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

Sincerely,

Karla M. Rabusch

President

Wells Fargo Funds

Experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future.

Notice to shareholders

At a meeting held August 11-12, 2015, the Board of Trustees of the Fund approved a change in the name of the Fund whereby the word “Advantage” was removed from its name, effective December 15, 2015.

For further information about your Fund, contact your investment professional, visit our website at wellsfargofunds.com, or call us directly at 1-800-260-5969. We are available 24 hours a day, 7 days a week.

4 Wells Fargo VT Omega Growth Fund Performance highlights (unaudited)

Investment objective

The Fund seeks long-term capital appreciation.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Thomas J. Pence, CFA^®

Michael T. Smith, CFA^®

Average annual total returns (%) as of December 31, 2015

								Expense ratios1 (%)
	Inception date	1 year		5 year		10 year		Gross		Net2
Class 1	3-6-1997		1.62		11.13		9.71		0.75		0.75
Class 2	7-31-2002		1.34		10.86		9.43		1.00		1.00
Russell 3000® Growth Index3	–		5.09		13.30		8.49		–		–

Figures quoted represent past performance, which is no guarantee of future results. 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 and assumes the reinvestment of dividends and capital gains. Current month-end performance is available by calling 1-800-260-5969. Performance figures of the Fund do not reflect fees charged pursuant to the terms of variable life insurance policies and variable annuity contracts. If fees had been reflected, performance would have been lower.

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

Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to smaller-company securities 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.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo VT Omega Growth Fund 5

Growth of $10,000 investment as of December 31, 2015⁴

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

²  The manager has contractually committed through April 30, 2016, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver at the amounts shown. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the cap. Without this cap, the Fund’s returns would have been lower.

³  The Russell 3000^® Growth Index measures the performance of those Russell 3000^® Index companies with higher price/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.

⁴  The chart compares the performance of Class 2 shares for the most recent ten years with the Russell 3000^® Growth Index. The chart assumes a hypothetical $10,000 investment and reflects all operating expenses of the Fund. Performance figures of the Fund do not reflect fees charged pursuant to the terms of variable life insurance policies and variable annuity contracts.

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

⁶  Amounts are calculated based on the total long-term investments of the Fund. These amounts are subject to change and may have changed since the date specified.

6 Wells Fargo VT Omega Growth Fund Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

n The Fund underperformed its benchmark, the Russell 3000^® Growth Index, for the 12-month period that ended December 31, 2015.

n Stock selection in the health care and industrials sectors challenged relative performance.

n Stock selection in the consumer discretionary and materials sectors contributed positively to the Fund’s results.

Overall, 2015 was a turbulent year for the U.S. stock market and the global economy.

A number of icebergs that surfaced in 2015 made navigating the U.S. stock market a tricky proposition. The first iceberg, economic weakness in China, continued to mount throughout the year. In our view, investors’ concerns over the depth of China’s economic slowdown and the effectiveness of its policy responses largely drove the defensive tone evident in the U.S. stock market during much of 2015. Worries about the negative impact of China’s slowdown coupled with OPEC’s decision not to reduce oil production further aggravated the supply/demand imbalance for oil, causing commodity prices to continue the tumble that began in the second half of 2014. 2015’s second iceberg, the U.S. Federal Reserve’s (Fed’s) long-anticipated change in monetary policy, finally occurred in December 2015. With uncertainty over timing of the rate hike resolved, stocks initially rallied. However, volatility soon resumed as investors faced a new concern: domestic economic data that continued to show a clear divergence in strength between manufacturing and consumer activity. Another iceberg prevalent throughout 2015 was a market environment characterized by rapid and often violent changes in investor sentiment toward risk. While impossible to predict, the risk of geopolitical events likely contributed to these swings in sentiment; recent events, such as November 2015’s terror attacks in Paris, appear to have heightened this sensitivity.

Ten largest holdings (%) as of December 31, 20155
Amazon.com Incorporated	4.00
Apple Incorporated	3.87
Facebook Incorporated Class A	3.85
The Home Depot Incorporated	3.68
Visa Incorporated Class A	3.54
ServiceMaster Global Holdings Incorporated	2.79
Alphabet Incorporated Class A	2.48
Alphabet Incorporated Class C	2.43
Bristol-Myers Squibb Company	2.30
UnitedHealth Group Incorporated	2.18

Portfolio construction is focused on three types of growth companies.

We believe that, in any market environment, a portfolio’s construction must balance risk and return. We strive to provide this balance through a portfolio composed of three distinct types of growth companies. Core growth holdings (typically 40%–50% of assets) are companies that we believe have stable growth records, proven management teams, and relatively low volatility. Developing situations (typically 40%–50% of assets) are firms we believe are entering a period of accelerated growth driven by a new product, business plan, or management team. The remainder of the portfolio (typically 5%–10% of assets) is dedicated to valuation

opportunities—holdings we believe carry above-average growth potential and relatively high volatility. Our conviction level drives each stock’s relative weight in the portfolio. This direct relationship helps us position our highest-conviction ideas to potentially make a significant impact on performance.

Positioning in the health care and industrials sectors weighed on the Fund’s relative performance.

Among the Fund’s health care holdings, Envision Healthcare Holdings, Incorporated, was a notable detractor. Envision—a leading provider of services to the U.S. health care system with an emphasis on solutions for clinics, hospitals, and emergency rooms—had been well positioned when the Affordable Care Act (ACA) led to increased insurance coverage and consumer demand for health care. We believed Envision potentially could consolidate some of this fragmented industry. However, health care utilization volumes took a surprising fall during 2015; early adopters of the ACA appeared to be slowing in usage, and growth in new users was disappointing. These factors, along with pricing pressures on new customer contracts, drove a sharp correction in the stock. The Fund’s position in Envision was sold during the period.

Within the industrials sector, Wabtec Corporation, doing business as Westinghouse Air Brake Technologies Corporation, struggled in a weak environment for U.S. manufacturing. Westinghouse provides electronic braking and positive-train-control technologies to the U.S. rail industry. Increased oil shipments by rail and growing demand for better safety

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo VT Omega Growth Fund 7

regulations in passenger trains drove strong demand for Westinghouse’s core products in recent years; however, the stock declined in 2015 as U.S. industrial firms felt increased pressure from falling oil prices and a strengthening U.S. dollar. Also, despite its track record of successful acquisitions, Westinghouse was plagued by concerns from the credit markets. While the company has displayed no major change in fundamentals and offers attractive visibility, we are closely monitoring the position due to the overall challenging industrial economy.

Security selection in the consumer discretionary and materials sectors proved additive to annual returns.

Amazon.com, Incorporated, proved to be the largest individual contributor to the Fund’s performance for the period. The company’s share price soared in 2015 as its online-retail business continued to take market share from traditional brick-and-mortar retailers. Amazon’s top-notch e-commerce infrastructure enabled the firm to attract customers and improve earnings. Also, during the period Amazon provided visibility into the financial results for its Amazon Web Services segment, a $5 billion cloud-computing business that generated a significant contribution to Amazon’s operating income and produced results well above expectations.

Fund positioning within the materials sector contributed to relative returns during the period. Vulcan Materials Company, which produces and sells construction aggregates, concrete, and asphalt mix, displayed particular strength. Vulcan is one of a number of Fund holdings that support growth in nonresidential construction, one of several growth themes currently emphasized within the Fund. Vulcan benefited during the period from growth in the private nonresidential market as the number of projects and the demand for new office space increased.

Sector distribution as of December 31, 2015⁶

We look forward to 2016.

Like a lingering storm system, many of the same issues that clouded the U.S. stock market in 2015 remain in place. Globally, growth remains questionable as China works to reignite its economy, European economies are fragile, geopolitical risk is elevated, and the negative effects of a prolonged commodity-price downturn continue. The timing and impact of further Fed action remain unknown. These issues may lead to waves of increased market volatility. We believe the best way for us to navigate this volatility is to remain focused on the

consistent execution of our investment process. Like any seasoned navigator, however, tactical adjustments could be made. One adjustment we have made is to increase the secular-growth component within the Fund. In an economic environment in which secular growth remains scarce, investors may be drawn to firms that tend to be somewhat insulated from global economic currents. Industries ripe with secular growth include e-commerce, cloud computing, network security, specialized software, and mobile/credit card payment processing. Also, to better withstand potential waves of volatility, we have added ballast by increasing the Fund’s exposure to companies with good earnings visibility. We believe these adjustments may provide even greater stability as the Fund navigates the inevitable stock-market icebergs that could lie ahead. While it likely may not be a smooth ride, we remain optimistic that 2016 could be a successful voyage.

Please see footnotes on page 5.

8 Wells Fargo VT Omega Growth Fund Fund expenses (unaudited)

As a shareholder of the Fund, you incur ongoing costs, including management fees, distribution (12b-1) 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, 2015 to December 31, 2015.

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 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 separate account charges assessed by participating insurance companies were included, your costs would have been higher.

	Beginning account value 7-1-2015		Ending account value 12-31-2015		Expenses paid during the period1		Net annualized expense ratio
Class 1
Actual	$	1,000.00	$	981.67	$	3.75		0.75	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.42	$	3.82		0.75	%
Class 2
Actual	$	1,000.00	$	980.27	$	4.99		1.00	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.16	$	5.09		1.00	%

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

Portfolio of investments—December 31, 2015 Wells Fargo VT Omega Growth Fund 9

Security name	Shares		Value
Common Stocks: 99.87%
Consumer Discretionary: 15.67%
Auto Components: 1.52%
Delphi Automotive plc		16,030	$	1,374,252
Diversified Consumer Services: 2.79%
ServiceMaster Global Holdings Incorporated †		64,177		2,518,305
Hotels, Restaurants & Leisure: 2.18%
Dave & Buster’s Entertainment Incorporated †		15,194		634,198
Vail Resorts Incorporated		10,400		1,331,096
				1,965,294
Internet & Catalog Retail: 4.50%
Amazon.com Incorporated †		5,350		3,616,012
Netflix Incorporated †		3,900		446,082
				4,062,094
Media: 1.01%
Cinemark Holdings Incorporated		27,299		912,606
Specialty Retail: 3.67%
The Home Depot Incorporated		25,100		3,319,475
Consumer Staples: 4.31%
Beverages: 1.71%
Constellation Brands Incorporated Class A		10,860		1,546,898
Food & Staples Retailing: 2.60%
The Kroger Company		30,900		1,292,547
Walgreens Boots Alliance Incorporated		12,400		1,055,922
				2,348,469
Financials: 8.57%
Capital Markets: 3.23%
Raymond James Financial Incorporated		27,306		1,582,929
SEI Investments Company		25,400		1,330,960
				2,913,889
Diversified Financial Services: 3.66%
Intercontinental Exchange Incorporated		6,600		1,691,316
McGraw Hill Financial Incorporated		16,400		1,616,712
				3,308,028
Real Estate Management & Development: 1.68%
CBRE Group Incorporated Class A †		43,800		1,514,604

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

10 Wells Fargo VT Omega Growth Fund Portfolio of investments—December 31, 2015

Security name	Shares		Value
Health Care: 15.52%
Biotechnology: 5.97%
Alexion Pharmaceuticals Incorporated †		8,000	$	1,526,000
Celgene Corporation †		14,566		1,744,424
Gilead Sciences Incorporated		9,043		915,061
Vertex Pharmaceuticals Incorporated †		9,600		1,207,968
				5,393,453
Health Care Equipment & Supplies: 2.60%
Alere Incorporated †		30,490		1,191,854
Align Technology Incorporated †		17,500		1,152,375
				2,344,229
Health Care Providers & Services: 2.17%
UnitedHealth Group Incorporated		16,700		1,964,588
Pharmaceuticals: 4.78%
Bristol-Myers Squibb Company		30,210		2,078,146
Shire plc ADR		5,600		1,148,000
Zoetis Incorporated		22,700		1,087,784
				4,313,930
Industrials: 11.73%
Aerospace & Defense: 0.50%
Orbital ATK Incorporated		5,100		455,634
Airlines: 1.93%
Delta Air Lines Incorporated		34,390		1,743,229
Commercial Services & Supplies: 1.55%
KAR Auction Services Incorporated		37,900		1,403,437
Industrial Conglomerates: 1.57%
Carlisle Companies Incorporated		16,000		1,419,040
Machinery: 1.46%
Proto Labs Incorporated †«		6,538		416,405
Wabtec Corporation		12,700		903,224
				1,319,629
Professional Services: 1.61%
Verisk Analytics Incorporated †		18,900		1,453,032
Road & Rail: 0.87%
Old Dominion Freight Line Incorporated †		13,300		785,631
Trading Companies & Distributors: 2.24%
Air Lease Corporation		25,800		863,784
HD Supply Holdings Incorporated †		38,508		1,156,395
				2,020,179

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

Portfolio of investments—December 31, 2015 Wells Fargo VT Omega Growth Fund 11

Security name	Shares		Value
Information Technology: 37.72%
Communications Equipment: 2.46%
Harris Corporation		11,490	$	998,481
Palo Alto Networks Incorporated †		6,948		1,223,821
				2,222,302
Internet Software & Services: 11.82%
Akamai Technologies Incorporated †		10,000		526,300
Alphabet Incorporated Class A †		2,880		2,240,669
Alphabet Incorporated Class C †		2,889		2,192,404
CoStar Group Incorporated †		5,100		1,054,119
Facebook Incorporated Class A †		33,205		3,475,235
Tencent Holdings Limited ADR		60,200		1,184,555
				10,673,282
IT Services: 8.52%
Alliance Data Systems Corporation †		3,700		1,023,309
Cognizant Technology Solutions Corporation Class A †		18,100		1,086,362
EPAM Systems Incorporated †		16,115		1,266,961
PayPal Holdings Incorporated †		31,100		1,125,820
Visa Incorporated Class A		41,244		3,198,472
				7,700,924
Software: 11.05%
Adobe Systems Incorporated †		13,700		1,286,978
CyberArk Software Limited †«		18,121		817,982
Electronic Arts Incorporated †		19,200		1,319,424
Paycom Software Incorporated †		23,246		874,747
Salesforce.com Incorporated †		7,800		611,520
ServiceNow Incorporated †		11,480		993,709
Splunk Incorporated †		14,000		823,340
Tableau Software Incorporated Class A †		8,700		819,714
Take-Two Interactive Software Incorporated †		36,800		1,282,112
Tyler Technologies Incorporated †		6,600		1,150,512
				9,980,038
Technology Hardware, Storage & Peripherals: 3.87%
Apple Incorporated		33,220		3,496,737
Materials: 3.73%
Chemicals: 2.52%
Axalta Coating Systems Limited †		32,900		876,785
The Sherwin-Williams Company		5,400		1,401,840
				2,278,625
Construction Materials: 1.21%
Vulcan Materials Company		11,500		1,092,155

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

12 Wells Fargo VT Omega Growth Fund Portfolio of investments—December 31, 2015

Security name				Shares		Value
Telecommunication Services: 2.62%
Diversified Telecommunication Services: 1.02%
Zayo Group Holdings Incorporated †					34,700	$	922,673
Wireless Telecommunication Services: 1.60%
SBA Communications Corporation Class A †					13,760		1,445,764
Total Common Stocks (Cost $71,764,135)							90,212,425
	Yield
Short-Term Investments: 2.23%
Investment Companies: 2.23%
Securities Lending Cash Investments, LLC (l)(r)(u)		0.39	%		1,307,450		1,307,450
Wells Fargo Cash Investment Money Market Fund, Select Class (l)(u)		0.33			705,640		705,640
Total Short-Term Investments (Cost $2,013,090)							2,013,090

Total investments in securities (Cost $73,777,225) *	102.10	%		92,225,515
Other assets and liabilities, net	(2.10	)		(1,899,950	)
Total net assets	100.00	%	$	90,325,565

† Non-income-earning security

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

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

(r) The investment is a non-registered investment vehicle purchased with cash collateral received from securities on loan.

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

* Cost for federal income tax purposes is $73,931,966 and unrealized gains (losses) consists of:

Gross unrealized gains	$	20,718,565
Gross unrealized losses		(2,425,016	)
Net unrealized gains	$	18,293,549

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

Statement of assets and liabilities—December 31, 2015 Wells Fargo VT Omega Growth Fund 13

Assets
Investments
In unaffiliated securities (including $1,194,000 of securities loaned), at value (cost $71,764,135)	$	90,212,425
In affiliated securities, at value (cost $2,013,090)		2,013,090
Total investments, at value (cost $73,777,225)		92,225,515
Receivable for investments sold		361,304
Receivable for Fund shares sold		85,164
Receivable for dividends		41,662
Receivable for securities lending income		987
Prepaid expenses and other assets		1,875
Total assets		92,716,507
Liabilities
Payable for investments purchased		644,685
Payable for Fund shares redeemed		313,992
Payable upon receipt of securities loaned		1,307,450
Management fee payable		51,082
Distribution fee payable		11,739
Administration fees payable		6,811
Accrued expenses and other liabilities		55,183
Total liabilities		2,390,942
Total net assets	$	90,325,565
NET ASSETS CONSIST OF
Paid-in capital	$	69,719,593
Accumulated net investment loss		(1,564	)
Accumulated net realized gains on investments		2,159,246
Net unrealized gains on investments		18,448,290
Total net assets	$	90,325,565
COMPUTATION OF NET ASSET VALUE PER SHARE
Net assets – Class 1	$	40,362,118
Shares outstanding – Class 11		1,732,029
Net asset value per share – Class 1		$23.30
Net assets – Class 2	$	49,963,447
Shares outstanding – Class 21		2,216,562
Net asset value per share – Class 2		$22.54

¹  The Fund has an unlimited number of authorized shares.

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

14 Wells Fargo VT Omega Growth Fund Statement of operations—year ended December 31, 2015

Investment income
Dividends	$	616,054
Securities lending income, net		21,184
Income from affiliated securities		1,391
Total investment income		638,629
Expenses
Management fee		597,442
Administration fees
Class 1		35,626
Class 2		44,033
Distribution fee
Class 2		137,603
Custody and accounting fees		21,383
Professional fees		47,200
Shareholder report expenses		23,986
Trustees’ fees and expenses		15,499
Other fees and expenses		6,203
Total expenses		928,975
Less: Fee waivers and/or expense reimbursements		(45,800	)
Net expenses		883,175
Net investment loss		(244,546	)
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on investments		6,494,195
Net change in unrealized gains (losses) on investments		(4,579,099	)
Net realized and unrealized gains (losses) on investments		1,915,096
Net increase in net assets resulting from operations	$	1,670,550

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

Statement of changes in net assets Wells Fargo VT Omega Growth Fund 15

	Year ended December 31, 2015						Year ended December 31, 2014
Operations
Net investment loss				$	(244,546	)				$	(270,649	)
Net realized gains on investments					6,494,195						18,818,280
Net change in unrealized gains (losses) on investments					(4,579,099	)					(14,397,747	)
Net increase in net assets resulting from operations					1,670,550						4,149,884
Distributions to shareholders from
Net realized gains
Class 1					(7,419,706	)					(10,058,181	)
Class 2					(9,347,294	)					(12,505,884	)
Total distributions to shareholders					(16,767,000	)					(22,564,065	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class 1		72,950			1,869,588			133,823			4,061,419
Class 2		123,489			3,149,327			157,458			4,688,183
					5,018,915						8,749,602
Reinvestment of distributions
Class 1		315,732			7,419,706			373,632			10,058,181
Class 2		410,690			9,347,294			475,870			12,505,884
					16,767,000						22,564,065
Payment for shares redeemed
Class 1		(368,743	)		(9,447,612	)		(499,773	)		(14,593,587	)
Class 2		(513,389	)		(13,161,588	)		(570,468	)		(16,585,288	)
					(22,609,200	)					(31,178,875	)
Net increase (decrease) in net assets resulting from capital share transactions					(823,285	)					134,792
Total decrease in net assets					(15,919,735	)					(18,279,389	)
Net assets
Beginning of period					106,245,300						124,524,689
End of period				$	90,325,565					$	106,245,300
Accumulated net investment loss				$	(1,564	)				$	(1,964	)

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

16 Wells Fargo VT Omega Growth Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended December 31
CLASS 1	2015			2014			2013			2012			2011
Net asset value, beginning of period		$27.57			$32.78			$25.56			$22.78			$24.26
Net investment income (loss)		(0.03	)		(0.03	)		(0.01	)		0.11			(0.06	)
Net realized and unrealized gains (losses) on investments		0.52			1.22			9.81			4.43			(1.21	)
Total from investment operations		0.49			1.19			9.80			4.54			(1.27	)
Distributions to shareholders from
Net investment income		0.00			0.00			(0.12	)		0.00			0.00
Net realized gains		(4.76	)		(6.40	)		(2.46	)		(1.76	)		(0.21	)
Total distributions to shareholders		(4.76	)		(6.40	)		(2.58	)		(1.76	)		(0.21	)
Net asset value, end of period		$23.30			$27.57			$32.78			$25.56			$22.78
Total return		1.62	%		4.09	%		40.22	%		20.76	%		(5.36	)%
Ratios to average net assets (annualized)
Gross expenses		0.79	%		0.75	%		0.79	%		0.80	%		0.80	%
Net expenses		0.75	%		0.75	%		0.75	%		0.75	%		0.75	%
Net investment income (loss)		(0.11	)%		(0.10	)%		(0.12	)%		0.40	%		(0.27	)%
Supplemental data
Portfolio turnover rate		101	%		88	%		95	%		93	%		110	%
Net assets, end of period (000s omitted)		$40,362			$47,210			$55,867			$47,842			$45,293

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

Financial highlights Wells Fargo VT Omega Growth Fund 17

(For a share outstanding throughout each period)

	Year ended December 31
CLASS 2	2015			2014			2013			2012			2011
Net asset value, beginning of period		$26.89			$32.19			$25.13			$22.48			$24.00
Net investment income (loss)		(0.09	)		(0.10	)		(0.12	)		0.02			(0.14	)
Net realized and unrealized gains (losses) on investments		0.50			1.20			9.68			4.39			(1.17	)
Total from investment operations		0.41			1.10			9.56			4.41			(1.31	)
Distributions to shareholders from
Net investment income		0.00			0.00			(0.04	)		0.00			0.00
Net realized gains		(4.76	)		(6.40	)		(2.46	)		(1.76	)		(0.21	)
Total distributions to shareholders		(4.76	)		(6.40	)		(2.50	)		(1.76	)		(0.21	)
Net asset value, end of period		$22.54			$26.89			$32.19			$25.13			$22.48
Total return		1.34	%		3.86	%		39.88	%		20.39	%		(5.54	)%
Ratios to average net assets (annualized)
Gross expenses		1.04	%		1.00	%		1.04	%		1.05	%		1.05	%
Net expenses		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%
Net investment income (loss)		(0.36	)%		(0.35	)%		(0.37	)%		0.12	%		(0.52	)%
Supplemental data
Portfolio turnover rate		101	%		88	%		95	%		93	%		110	%
Net assets, end of period (000s omitted)		$49,963			$59,035			$68,658			$62,599			$66,756

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

18 Wells Fargo VT Omega 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”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Wells Fargo VT Omega Growth Fund (the “Fund”) which is a diversified series of the Trust.

2. SIGNIFICANT ACCOUNTING POLICIES

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

Securities valuation

All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time).

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

Equity securities that are not listed on a foreign or domestic exchange or market, but have a public trading market, are valued at the quoted bid price from an independent broker-dealer that the Management Valuation Team of Wells Fargo Funds Management, LLC (“Funds Management”) has determined is an acceptable source.

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

Investments which are not valued using any of the methods discussed above are valued at their fair value, as determined in good faith by the Board of Trustees of the Fund. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Management Valuation Team. The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Management Valuation Team which may include items for ratification.

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

Security loans

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

Notes to financial statements Wells Fargo VT Omega Growth Fund 19

The Fund lends its securities through an unaffiliated securities lending agent. Cash collateral received in connection with its securities lending transactions is invested in Securities Lending Cash Investments, LLC (the “Securities Lending Fund”). The Securities Lending Fund is exempt from registration under Section 3(c)(7) of the 1940 Act and is managed by Funds Management and is subadvised by Wells Capital Management Incorporated (“WellsCap”). Funds Management receives an advisory fee starting at 0.05% and declining to 0.01% as the average daily net assets of the Securities Lending Fund increase. All of the fees received by Funds Management are paid to WellsCap for its services as subadviser. The Securities Lending Fund seeks to provide a positive return compared to the daily Fed Funds Open rate by investing in high-quality, U.S. dollar-denominated short-term money market instruments. Securities Lending Fund investments are fair valued based upon the amortized cost valuation technique. Income earned from investment in the Securities Lending Fund is included in securities lending income on the Statement of Operations.

Security transactions and income recognition

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

Dividend income is recognized on the ex-dividend date.

Distributions to shareholders

Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-dividend date. Such distributions are determined in conformity with federal income tax regulations, which may differ in amount or character from net investment income and realized gains recognized for purposes of U.S. generally accepted accounting principles.

Federal and other taxes

The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.

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

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The primary permanent difference causing such reclassification is due to net operating loss. At December 31, 2015, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Paid-in capital	Accumulated net investment loss	Accumulated net realized gains on investments
$(251,793)	$244,946	$6,847

As of December 31, 2015, the Fund had capital loss carryforwards available to offset future net realized capital gains in the amount of $2,110,011 with $1,338,632 expiring in 2016 and $771,379 expiring in 2017.

Class allocations

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

3. FAIR VALUATION MEASUREMENTS

Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the

20 Wells Fargo VT Omega Growth Fund Notes to financial statements

lowest priority to significant 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:

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

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

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

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

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of December 31, 2015:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	14,152,026	$	0	$	0	$	14,152,026
Consumer staples		3,895,367		0		0		3,895,367
Financials		7,736,521		0		0		7,736,521
Health care		14,016,200		0		0		14,016,200
Industrials		10,599,811		0		0		10,599,811
Information technology		32,888,728		1,184,555		0		34,073,283
Materials		3,370,780		0		0		3,370,780
Telecommunication services		2,368,437		0		0		2,368,437
Short-term investments
Investment companies		705,640		1,307,450		0		2,013,090
Total assets	$	89,733,510	$	2,492,005	$	0	$	92,225,515

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At December 31, 2015, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

4. TRANSACTIONS WITH AFFILIATES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the applicable subadviser, providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.60% and declining to 0.43% as the average daily net assets of the Fund increase.

Prior to July 1, 2015, Funds Management provided advisory services pursuant to an investment advisory agreement and was entitled to receive an annual fee which started at 0.55% and declined to 0.40% as the average daily net assets of the Fund increased. In addition, fund-level administrative services were provided by Funds Management under a separate administration agreement at an annual fee which started at 0.05% and declined to 0.03% as the average daily net assets of the Fund increased. For financial statement purposes, the advisory fee and fund-level administration fee for the year ended December 31, 2015 have been included in management fee on the Statement of Operations.

For the year ended December 31, 2015, the management fee was equivalent to an annual rate of 0.60% of the Fund’s average daily net assets.

Notes to financial statements Wells Fargo VT Omega Growth Fund 21

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. WellsCap, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.45% and declining to 0.30% as the average daily net assets of the Fund increase.

Administration fees

Under a class-level administration agreement, Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under the class-level administration agreement, Funds Management receives a class level administration fee of 0.08% which is calculated based on the average daily net assets of each class.

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through April 30, 2016 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.75% for Class 1 shares and 1.00% for Class 2 shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

Distribution fee

The Trust has adopted a distribution plan for Class 2 shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class 2 shares and paid to Wells Fargo Funds Distributor, LLC, the principal underwriter, at an annual rate of 0.25% of the average daily net assets of Class 2 shares.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended December 31, 2015 were $98,214,387 and $114,864,917, respectively.

6. BANK BORROWINGS

The Trust and Wells Fargo Funds Trust (excluding the money market funds and certain other funds) are parties to a $200,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.20% of the unused balance is allocated to each participating fund. Prior to September 1, 2015, the revolving credit agreement amount was $150,000,000 and the annual commitment fee was equal to 0.10% of the unused balance which was allocated to each participating fund. For the year ended December 31, 2015, the Fund paid $173 in commitment fees.

For the year ended December 31, 2015, there were no borrowings by the Fund under the agreement.

7. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended December 31, 2015 and December 31, 2014 were as follows:

	Year ended December 31
	2015		2014
Ordinary income	$	819,439	$	3,838,065
Long-term capital gain		15,947,561		18,726,000

As of December 31, 2015, the components of distributable earnings on a tax basis were as follows:

Undistributed long-term gain	Unrealized gains	Capital loss carryforward
$4,423,999	$18,293,549	$(2,110,011)

22 Wells Fargo VT Omega Growth Fund Notes to financial statements

8. CONCENTRATION RISK

Concentration risks result from exposure to a limited number of sectors. A fund that invests a substantial portion of its assets in any sector may be more affected by changes in that sector than would be a fund whose investments are not heavily weighted in any sector.

9. INDEMNIFICATION

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

Report of independent registered public accounting firm Wells Fargo VT Omega Growth Fund 23

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 VT Omega Growth Fund (formerly known as Wells Fargo Advantage VT Omega Growth Fund) (the “Fund”), one of the funds constituting the Wells Fargo Variable Trust, as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2015, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo VT Omega Growth Fund as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

February 25, 2016

24 Wells Fargo VT Omega Growth Fund Other information (unaudited)

TAX INFORMATION

For corporate shareholders, pursuant to Section 854 of the Internal Revenue Code, 55.45% of ordinary income dividends qualify for the corporate dividends-received deduction for the fiscal year ended December 31, 2015.

Pursuant to Section 852 of the Internal Revenue Code, $15,947,561 was designated as long-term capital gain distributions for the fiscal year ended December 31, 2015.

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-260-5969, visiting our website at wellsfargofunds.com, or visiting the SEC website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website at wellsfargofunds.com or by visiting the SEC website at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

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

Other information (unaudited) Wells Fargo VT Omega Growth Fund 25

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 144 mutual funds comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information². The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.

Independent Trustees

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
William R. Ebsworth (Born 1957)	Trustee, since 2015	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief financial officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he lead a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Mr. Ebsworth is a CFA® charterholder and an Adjunct Lecturer, Finance, at Babson College.	Asset Allocation Trust
Jane A. Freeman (Born 1953)	Trustee, since 2015	Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair of the Audit Committee. Ms. Freeman is Chair of Taproot Foundation (non-profit organization), a Board Member of Ruth Bancroft Garden (non-profit organization) and an inactive chartered financial analyst.	Asset Allocation Trust
Peter G. Gordon (Born 1942)	Trustee, since 1998; Chairman, since 2005	Co-Founder, Retired Chairman, President and CEO of Crystal Geyser Water Company. Trustee Emeritus, Colby College.	Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. Chairman of the Board of CIGNA Corporation since 2009, and Director since 2005. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (charter school). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	CIGNA Corporation; Asset Allocation Trust
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, since 2008	Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant.	Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of the Corporate Governance Research Initiative and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust

26 Wells Fargo VT Omega Growth Fund Other information (unaudited)

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust
Timothy J. Penny (Born 1951)	Trustee, since 1996	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
Michael S. Scofield (Born 1943)	Trustee, since 2010	Served on the Investment Company Institute’s Board of Governors and Executive Committee from 2008-2011 as well the Governing Council of the Independent Directors Council from 2006-2011 and the Independent Directors Council Executive Committee from 2008-2011. Chairman of the IDC from 2008-2010. Institutional Investor (Fund Directions) Trustee of Year in 2007. Trustee of the Evergreen Funds complex (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield.	Asset Allocation Trust
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. Director and Vice Chair of The Tree Trust (non-profit corporation). Director of the American Chestnut Foundation (non-profit corporation).	Asset AllocationTrust

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

** Donald Willeke retired as a Trustee effective December 31, 2015.

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
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.
Jeremy DePalma1 (Born 1974)	Treasurer, since 2012; Assistant Treasurer, since 2009	Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010 and head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.
C. David Messman (Born 1960)	Secretary, since 2000; Chief Legal Officer, since 2003	Senior Vice President and Secretary of Wells Fargo Funds Management, LLC since 2001. Assistant General Counsel of Wells Fargo Bank, N.A. since 2013 and Vice President and Managing Counsel of Wells Fargo Bank, N.A. from 1996 to 2013.
Debra Ann Early (Born 1964)	Chief Compliance Officer, since 2007	Executive Vice President of Wells Fargo Funds Management, LLC since 2014, Senior Vice President and Chief Compliance Officer from 2007 to 2014.
David Berardi (Born 1975)	Assistant Treasurer, since 2009	Vice President of Wells Fargo Funds Management, LLC since 2009. Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.

¹ Jeremy DePalma acts as Treasurer of 72 funds and Assistant Treasurer of 72 funds in the Fund Complex.

² The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling
1-800-260-5969 or by visiting the website at wellsfargofunds.com.

List of abbreviations Wells Fargo VT Omega Growth Fund 27

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —   Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

This page is intentionally left blank.

For more information

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

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.com

Individual investors: 1-800-222-8222

Retail investment professionals: 1-888-877-9275

Institutional investment professionals: 1-866-765-0778

This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call
1-800-260-5969 or visit the Fund’s website at wellsfargofunds.com. Read the prospectus carefully before you invest or send money.

Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the funds. The funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

© 2015 Wells Fargo Funds Management, LLC. All rights reserved.

239821 02-16 AVT5/AR151 12-15

Annual Report

December 31, 2015

Wells Fargo VT Opportunity Fund

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	8
Portfolio of investments	9
Financial statements
Statement of assets and liabilities	13
Statement of operations	14
Statement of changes in net assets	15
Financial highlights	16
Notes to financial statements	18
Report of independent registered public accounting firm	23
Other information	24
List of abbreviations	27

The views expressed and any forward-looking statements are as of December 31, 2015, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Funds Management, LLC. Discussions of individual securities, or the markets generally, or any Wells Fargo Fund are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements. The views expressed are subject to change at any time in response to changing circumstances in the market. Wells Fargo Funds Management, LLC and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

2 Wells Fargo VT Opportunity Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Funds

Although U.S. economic data generally improved during the period, ongoing global turmoil somewhat tempered economic growth.

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo VT Opportunity Fund for the 12-month period that ended December 31, 2015. The broad U.S. stock market returned 0.48% for the reporting period (as measured by the Russell 3000^® Index).¹ Although U.S. economic data generally improved during the period, ongoing global turmoil somewhat tempered economic growth. Outside the U.S., many economies and markets faced ongoing challenges, such as the negative effects of China’s slowing economy and declining prices for oil, natural gas, and other commodities.

In the first quarter of 2015, U.S. stocks delivered positive results overall; major markets elsewhere generally rallied.

U.S. large-, mid-, and small-cap stocks tended to move similarly during the quarter until early March, when results began to diverge by market capitalization. Larger caps slipped that month as investor concern grew over the strengthening U.S. dollar’s potentially negative effect on the profits of large U.S. multinational firms; stocks of small and midsize companies, which tend to be less affected by movements in the dollar, performed better. A gradually improving U.S. economy supported positive stock results. The labor market continued growing, along with personal income and consumer confidence. For U.S. businesses, the quarter’s data were mixed; while many companies reported strong earnings, other data indicated potential weakening in manufacturing. Elsewhere in the world, major markets enjoyed positive returns spurred by accommodative monetary policies from major central banks and signs of improvement in some struggling economies.

Globally, stock markets experienced heightened volatility during the second quarter of 2015.

The broad U.S. stock market fluctuated widely during this quarter, eventually eking out a 0.14% gain (as measured by the Russell 3000^® Index). Larger stocks at times were pressured by ongoing investor concerns over the potentially negative effects on U.S. companies of a strengthening U.S. dollar and financially troubled overseas economies. The U.S. economy picked up traction during the quarter; consumer spending improved, construction and new-home sales enjoyed positive trends, and jobs growth remained a bright spot. Federal Reserve (Fed) officials, who continued to keep interest rates low while waiting for the U.S. jobs market to sufficiently improve and for inflation to approach their 2% target, made clear they could take action soon. Throughout the quarter, markets outside the U.S. remained volatile, largely due to uncertainty over the potential impact of financial challenges in other locations—most notably in Greece and Puerto Rico. Questions over slower growth in China also worried investors.

In the third quarter of 2015, China’s slowdown took a toll on U.S. and international markets.

U.S. stocks fluctuated significantly in the quarter as investors worried about the impact on the U.S. of China’s slowing growth. The broad U.S. stock market fell 7.25%, as measured by the Russell 3000^® Index. A number of positive economic indicators released during the quarter suggested the U.S. economy remained solid. However, the strengthening U.S. dollar coupled with ongoing global economic turmoil continued to hinder the economy. Although many investors believed the Fed would raise the federal funds rate during the quarter, at its September meeting the Fed left the rate unchanged. This decision fueled uncertainty about the U.S. economy’s stamina to remain healthy while facing the negative effects of troubles elsewhere in the world. One week later, Fed Chair Janet Yellen reassured investors that, barring unpleasant surprises, the Fed still intended to raise the rate in 2015. International markets were more volatile than the domestic market and delivered even weaker quarterly results. Investors’ anxiety was driven largely by China’s weakened economy. Because China is the world’s largest importer of many commodities, a number of emerging markets—key commodities exporters—struggled under the strains of reduced demand for commodities and lower prices for the commodities sold.

¹  The Russell 3000^® Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market. You cannot invest directly in an index.

Letter to shareholders (unaudited) Wells Fargo VT Opportunity Fund 3

The U.S. stock market rose in the fourth quarter of 2015 despite ongoing concerns.

The broad U.S. stock market bounced back in the fourth quarter, ending with a 6.27% quarterly return (as measured by the Russell 3000^® Index). Stock markets outside the U.S. failed to keep pace with the domestic market as economic concerns, including China’s ongoing slowdown, continued to affect many countries worldwide. U.S. economic data released during the quarter indicated the economy remained solid, with modest growth. However, the strong U.S. dollar and global economic turmoil continued their drag on the economy. In December, the Fed, as expected, slightly raised its target short-term interest rate to between 0.25% and 0.50% after keeping it near zero for seven years. The move, which had been well telegraphed by the Fed for months, reflected confidence in the U.S. economy’s ability to stay healthy with less central-bank support. The Fed also made clear that future interest-rate increases will be gradual.

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

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

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

Sincerely,

Karla M. Rabusch

President

Wells Fargo Funds

Experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future.

Notice to shareholders

At a meeting held August 11-12, 2015, the Board of Trustees of the Fund approved a change in the name of the Fund whereby the word “Advantage” was removed from its name, effective December 15, 2015.

For further information about your Fund, contact your investment professional, visit our website at wellsfargofunds.com, or call us directly at 1-800-260-5969. We are available 24 hours a day, 7 days a week.

4 Wells Fargo VT Opportunity Fund Performance highlights (unaudited)

Investment objective

The Fund seeks long-term capital appreciation.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio manager

Ann M. Miletti

Average annual total returns (%) as of December 31, 2015¹

									Expense ratios2 (%)
	Inception date	1 year			5 year		10 year		Gross		Net3
Class 1	8-26-2011		(2.85	)		9.06		7.30		0.82	0.75
Class 2	5-8-1992		(3.08	)		8.83		7.18		1.07	1.00
Russell 3000® Index4	–		0.48			12.18		7.35		–	–

Figures quoted represent past performance, which is no guarantee of future results. 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 and assumes the reinvestment of dividends and capital gains. Current month-end performance is available by calling 1-800-260-5969. Performance figures of the Fund do not reflect fees charged pursuant to the terms of variable life insurance policies and variable annuity contracts. If fees had been reflected, performance would have been lower.

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

Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Smaller-company stocks tend to be more volatile and less liquid than those of larger companies. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to foreign investment risk. Consult the Fund’s prospectus for additional information on these and other risks.

Please 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.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo VT Opportunity Fund 5

Growth of $10,000 investment as of December 31, 2015⁵

¹  Historical performance shown for Class 1 shares prior to their 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.

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

³  The manager has contractually committed through April 30, 2016, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver at the amounts shown. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the cap. Without this cap, the Fund’s returns would have been lower.

⁴  The Russell 3000^® Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market. You cannot invest directly in an index.

⁵  The chart compares the performance of Class 2 shares for the most recent ten years with the Russell 3000^® Index. The chart assumes a hypothetical $10,000 investment and reflects all operating expenses of the Fund. Performance figures of the Fund do not reflect fees charged pursuant to the terms of variable life insurance policies and variable annuity contracts.

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

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

6 Wells Fargo VT Opportunity Fund Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

n The Fund underperformed its benchmark, the Russell 3000^® Index, for the 12-month period that ended December 31, 2015.

n Stock selection in the consumer discretionary and industrials sectors detracted the most from performance.

n Stock selection added value in the information technology (IT) and financials sectors. The Fund also benefited from lack of exposure to the utilities sector.

2015 was a volatile year for the U.S. and international stock markets as compared with market environments of the past few years. The broad U.S. stock market, represented by the Russell 3000^® Index, rose during the first half of 2015, then dropped sharply during the third quarter before recovering enough in the fourth quarter to end the year with a positive but meager 0.48% return. Market performance in 2015 tended to be skewed toward growth and large-cap stocks, which generally performed better than their value and small-cap counterparts. In fact, the stock market narrowed in 2015 to the point that much of its return was driven by just a handful of mega-cap stocks.

A number of factors affected the U.S. stock market during 2015, including depressed crude-oil prices, uncertainty regarding U.S. Federal Reserve (Fed) monetary policy, and China’s slowing economy. The price of crude oil, which had dropped more than 50% in 2014, staged a brief recovery by rising to more than $60 per barrel in the first half of 2015 and then fell to below $40 per barrel by the end of the year. The ongoing oil slump negatively affected stocks within the energy sector and nearly every commodity-related industry. In December 2015, the Fed slightly raised its target short-term interest rate to between 0.25% and 0.50% after keeping it near zero for seven years. China’s economy, previously a big driver of global growth, began slowing down, prompting the country’s government to devalue its currency and take steps to restrain China’s stock market. The U.S. dollar strengthened more than every major currency for most of the reporting period. The U.S. economy remained resilient, with favorable trends in employment, gross domestic product, wages, disposable income, housing, and inflation.

In this environment and with the expectation of tighter U.S. monetary policy to come, we continued to seek well-positioned companies—those with good business models, strong management teams, and healthy cash flows—trading at attractive discounts to their private market values (PMVs). The PMV represents the expected price an investor would pay for the entire company as a stand-alone private entity.

Stock selection within the consumer discretionary and industrials sectors held back Fund performance.

Overall, the Fund’s holdings in the consumer discretionary sector did not keep pace with the consumer discretionary sector within the Russell 3000^® Index. In the for-profit education industry, Apollo Education Group, Incorporated, declined sharply for the period; the company faced a number of unfavorable regulatory and labor-market trends. Apollo’s 2015 fiscal year-end results disappointed investors, and the company lowered expectations for its 2016 fiscal year. Changing consumer-spending habits and unseasonably warm weather hurt department store chains like Macy’s, Incorporated, and Nordstrom, Incorporated. In the industrials sector, the road and rail industry underperformed. Lower demand for commodities negatively affected the rail industry, including Canadian Pacific Railway Limited. Also, Hertz Global Holdings, Incorporated, declined due to uncertainty caused by its new management team’s restructuring efforts.

Ten largest holdings (%) as of December 31, 20156
Alphabet Incorporated Class C	2.72
Medtronic plc	2.41
Apple Incorporated	2.31
American International Group Incorporated	2.21
Bio-Rad Laboratories Incorporated Class A	2.04
ACE Limited	1.95
PNC Financial Services Group Incorporated	1.78
Citigroup Incorporated	1.72
American Tower Corporation	1.66
Avago Technologies Limited	1.55

Fund performance benefited from stock selection in multiple sectors.

IT was the Fund’s top-performing sector, benefiting from positive stock selection and an overweight to the sector. The IT services and semiconductor industries contained a number of outperforming stocks. Global Payments Incorporated, which provides electronic payment-processing services, continued to gain market share, expand margins, and buy back stock. The Fund’s semiconductor holdings benefited from merger and acquisition (M&A) activity and from continued expansion in mobile-communication devices, usage, services, and infrastructure. Avago Technologies Limited’s acquisitions of Broadcom Corporation and LSI Corporation were accretive to earnings. The Fund also benefited from its position in semiconductor

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo VT Opportunity Fund 7

firm Altera Corporation, which was acquired by Intel Corporation during the period. Within the financials sector, insurance holding First American Financial Corporation rose in tandem with an improving housing market and increasing margins. Also, The Progressive Corporation benefited from a rise in auto insurance premiums and effective advertising that enabled it to gain share, which ultimately helped its bottom line. Record levels of M&A activity during 2015 proved beneficial to certain Fund holdings, including Cytec Industries Incorporated, a specialty-materials and chemicals company for the aerospace and other industries, which was acquired by Solvay SA. The Fund’s positions in Altera, First American Financial, and Cytec were sold during the reporting period.

Sector distribution as of December 31, 2015⁷

Our focus remains constant: to add value for shareholders through attractively priced, high-quality Fund holdings.

Our methodology includes buying stocks at a discount to their estimated PMVs and selling stocks as they approach or exceed 80% of their PMVs. Through our disciplined investment process, we remain keenly aware of both price and enterprise values on a company-by-company basis. Our proprietary database of company acquisitions across industries, sectors, and time frames enables us to maintain a steady foundation for assessing the PMVs of companies compared with their public stock prices. We strive to take

advantage of those price discrepancies for the benefit of Fund shareholders by purchasing stocks when we believe they are selling at a discount to their PMVs.

Despite generally improving U.S. economic data, the broad U.S. stock market experienced volatility that caused U.S. stocks to end the period close to where they started. With the recent increase in interest rates and the possibility of continued tighter monetary policy in the coming year, we believe stock investors may be more discerning going forward. In our view, companies with attractive stock prices relative to their PMVs could be brought to the forefront by our process, which may allow us to add value through our unique, bottom-up research.

Please see footnotes on page 5.

8 Wells Fargo VT Opportunity Fund Fund expenses (unaudited)

As a shareholder of the Fund, you incur ongoing costs, including management fees, distribution (12b-1) 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, 2015 to December 31, 2015.

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 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 separate account charges assessed by participating insurance companies were included, your costs would have been higher.

	Beginning account value 7-1-2015		Ending account value 12-31-2015		Expenses paid during the period¹		Net annualized expense ratio
Class 1
Actual	$	1,000.00	$	953.66	$	3.69		0.75	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.42	$	3.82		0.75	%
Class 2
Actual	$	1,000.00	$	952.65	$	4.92		1.00	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.16	$	5.09		1.00	%

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

Portfolio of investments—December 31, 2015 Wells Fargo VT Opportunity Fund 9

Security name	Shares		Value
Common Stocks: 98.66%
Consumer Discretionary: 17.00%
Auto Components: 1.44%
Johnson Controls Incorporated		74,364	$	2,936,634
Diversified Consumer Services: 0.44%
Apollo Education Group Incorporated †		118,434		908,389
Hotels, Restaurants & Leisure: 1.91%
Carnival Corporation		22,546		1,228,306
McDonald’s Corporation		22,662		2,677,289
				3,905,595
Household Durables: 1.29%
Harman International Industries Incorporated		28,082		2,645,605
Media: 4.86%
Comcast Corporation Class A		55,889		3,153,816
Discovery Communications Incorporated Class C †		57,799		1,457,691
Omnicom Group Incorporated		33,846		2,560,788
Twenty-First Century Fox Incorporated Class B		101,878		2,774,138
				9,946,433
Multiline Retail: 3.98%
Dollar General Corporation		39,449		2,835,200
Macy’s Incorporated		35,212		1,231,716
Nordstrom Incorporated «		38,767		1,930,984
Target Corporation		29,468		2,139,671
				8,137,571
Specialty Retail: 1.91%
Dick’s Sporting Goods Incorporated		44,380		1,568,833
Lowe’s Companies Incorporated		30,752		2,338,382
				3,907,215
Textiles, Apparel & Luxury Goods: 1.17%
Ralph Lauren Corporation		21,532		2,400,387
Consumer Staples: 6.38%
Food & Staples Retailing: 1.21%
The Kroger Company		59,269		2,479,222
Food Products: 2.61%
Mead Johnson Nutrition Company		34,575		2,729,696
The Hershey Company		29,254		2,611,505
				5,341,201
Household Products: 1.12%
Church & Dwight Company Incorporated		27,038		2,294,985

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

10 Wells Fargo VT Opportunity Fund Portfolio of investments—December 31, 2015

Security name	Shares		Value
Personal Products: 1.44%
The Estee Lauder Companies Incorporated Class A		33,433	$	2,944,110
Energy: 7.03%
Energy Equipment & Services: 2.15%
Halliburton Company		65,206		2,219,612
Weatherford International plc †		260,649		2,186,845
				4,406,457
Oil, Gas & Consumable Fuels: 4.88%
Cimarex Energy Company		19,848		1,774,014
Concho Resources Incorporated †		20,492		1,902,887
EOG Resources Incorporated		36,719		2,599,338
Newfield Exploration Company †		69,564		2,265,004
Range Resources Corporation «		58,612		1,442,441	��
				9,983,684
Financials: 16.65%
Banks: 5.17%
Citigroup Incorporated		68,121		3,525,262
KeyCorp		41,737		550,511
PNC Financial Services Group Incorporated		38,166		3,637,601
Regions Financial Corporation		297,581		2,856,778
				10,570,152
Capital Markets: 2.67%
Invesco Limited		87,528		2,930,437
TD Ameritrade Holding Corporation		72,822		2,527,652
				5,458,089
Insurance: 7.15%
ACE Limited		34,097		3,984,234
American International Group Incorporated		72,869		4,515,692
The Progressive Corporation		95,814		3,046,885
Willis Group Holdings plc		63,516		3,084,972
				14,631,783
REITs: 1.66%
American Tower Corporation		35,084		3,401,394
Health Care: 12.97%
Health Care Equipment & Supplies: 3.39%
Medtronic plc		64,029		4,925,111
Zimmer Holdings Incorporated		19,609		2,011,687
				6,936,798
Health Care Providers & Services: 2.14%
Cigna Corporation		18,099		2,648,427
Patterson Companies Incorporated		38,099		1,722,456
				4,370,883

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

Portfolio of investments—December 31, 2015 Wells Fargo VT Opportunity Fund 11

Security name	Shares		Value
Life Sciences Tools & Services: 4.75%
Agilent Technologies Incorporated		61,598	$	2,575,412
Bio-Rad Laboratories Incorporated Class A †		30,101		4,173,805
Thermo Fisher Scientific Incorporated		21,020		2,981,687
				9,730,904
Pharmaceuticals: 2.69%
Merck & Company Incorporated		51,371		2,713,416
Novartis AG ADR		32,366		2,784,771
				5,498,187
Industrials: 12.59%
Aerospace & Defense: 3.58%
B/E Aerospace Incorporated		60,418		2,559,911
BWX Technologies Incorporated		76,791		2,439,650
United Technologies Corporation		24,163		2,321,339
				7,320,900
Airlines: 1.29%
United Continental Holdings Incorporated †		46,138		2,643,707
Commercial Services & Supplies: 2.64%
Republic Services Incorporated		59,954		2,637,376
Tyco International plc		86,709		2,765,150
				5,402,526
Electrical Equipment: 2.20%
Babcock & Wilcox Enterprises Incorporated †		94,123		1,964,347
Regal-Beloit Corporation		43,280		2,532,746
				4,497,093
Road & Rail: 2.88%
Canadian Pacific Railway Limited «		8,302		1,059,335
Hertz Global Holdings Incorporated †		181,810		2,587,156
J.B. Hunt Transport Services Incorporated		30,548		2,241,001
				5,887,492
Information Technology: 21.48%
Electronic Equipment, Instruments & Components: 2.64%
Amphenol Corporation Class A		48,143		2,514,509
TE Connectivity Limited		44,672		2,886,258
				5,400,767
Internet Software & Services: 2.72%
Alphabet Incorporated Class C †		7,325		5,558,796
IT Services: 3.62%
Alliance Data Systems Corporation †		11,088		3,066,608
Cognizant Technology Solutions Corporation Class A †		31,859		1,912,177
Global Payments Incorporated		37,847		2,441,510
				7,420,295

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

12 Wells Fargo VT Opportunity Fund Portfolio of investments—December 31, 2015

Security name				Shares		Value
Semiconductors & Semiconductor Equipment: 3.71%
ARM Holdings plc					138,043	$	2,104,054
Avago Technologies Limited					21,885		3,176,608
ON Semiconductor Corporation †					235,961		2,312,418
							7,593,080
Software: 6.48%
Check Point Software Technologies Limited Ǡ					35,203		2,864,820
Citrix Systems Incorporated †					31,909		2,413,916
Oracle Corporation					64,536		2,357,500
Red Hat Incorporated †					36,804		3,047,739
Salesforce.com Incorporated †					32,793		2,570,971
							13,254,946
Technology Hardware, Storage & Peripherals: 2.31%
Apple Incorporated					44,977		4,734,284
Materials: 4.56%
Chemicals: 2.29%
PPG Industries Incorporated					23,512		2,323,456
Praxair Incorporated					23,011		2,356,326
							4,679,782
Containers & Packaging: 1.18%
Crown Holdings Incorporated †					47,774		2,422,142
Metals & Mining: 1.09%
Steel Dynamics Incorporated					125,127		2,236,019
Total Common Stocks (Cost $172,848,143)							201,887,507
	Yield
Short-Term Investments: 4.91%
Investment Companies: 4.91%
Securities Lending Cash Investments, LLC (l)(r)(u)		0.39	%		7,007,350		7,007,350
Wells Fargo Cash Investment Money Market Fund, Select Class (l)(u)		0.33			3,049,012		3,049,012
Total Short-Term Investments (Cost $10,056,362)							10,056,362

Total investments in securities (Cost $182,904,505) *	103.57	%		211,943,869
Other assets and liabilities, net	(3.57	)		(7,315,083	)
Total net assets	100.00	%	$	204,628,786

† Non-income-earning security

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

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

(r) The investment is a non-registered investment vehicle purchased with cash collateral received from securities on loan.

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

* Cost for federal income tax purposes is $183,315,038 and unrealized gains (losses) consists of:

Gross unrealized gains	$	38,894,993
Gross unrealized losses		(10,266,162	)
Net unrealized gains	$	28,628,831

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

Statement of assets and liabilities—December 31, 2015 Wells Fargo VT Opportunity Fund 13

Assets
Investments
In unaffiliated securities (including $6,885,067 of securities loaned), at value (cost $172,848,143)	$	201,887,507
In affiliated securities, at value (cost $10,056,362)		10,056,362
Total investments, at value (cost $182,904,505)		211,943,869
Receivable for investments sold		3,153,761
Receivable for Fund shares sold		12,790
Receivable for dividends		260,643
Receivable for securities lending income		1,908
Prepaid expenses and other assets		3,415
Total assets		215,376,386
Liabilities
Payable for investments purchased		3,356,409
Payable for Fund shares redeemed		154,093
Payable upon receipt of securities loaned		7,007,350
Management fee payable		117,281
Distribution fee payable		40,204
Administration fees payable		15,541
Accrued expenses and other liabilities		56,722
Total liabilities		10,747,600
Total net assets	$	204,628,786
NET ASSETS CONSIST OF
Paid-in capital	$	152,386,063
Undistributed net investment income		4,092,930
Accumulated net realized gains on investments		19,110,428
Net unrealized gains on investments		29,039,365
Total net assets	$	204,628,786
COMPUTATION OF NET ASSET VALUE PER SHARE
Net assets – Class 1	$	35,539,169
Shares outstanding – Class 11		1,421,492
Net asset value per share – Class 1		$25.00
Net assets – Class 2	$	169,089,617
Shares outstanding – Class 21		6,749,493
Net asset value per share – Class 2		$25.05

¹ The Fund has an unlimited number of authorized shares.

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

14 Wells Fargo VT Opportunity Fund Statement of operations—year ended December 31, 2015

Investment income
Dividends (net of foreign withholding taxes of $15,520)	$	6,367,378
Securities lending income, net		6,433
Income from affiliated securities		4,010
Total investment income		6,377,821
Expenses
Management fee		1,614,627
Administration fees
Class 1		31,580
Class 2		152,949
Distribution fee
Class 2		477,964
Custody and accounting fees		22,644
Professional fees		56,731
Shareholder report expenses		38,293
Trustees’ fees and expenses		14,944
Other fees and expenses		7,105
Total expenses		2,416,837
Less: Fee waivers and/or expense reimbursements		(208,915	)
Net expenses		2,207,922
Net investment income		4,169,899
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on investments		19,932,472
Net change in unrealized gains (losses) on investments		(27,908,779	)
Net realized and unrealized gains (losses) on investments		(7,976,307	)
Net decrease in net assets resulting from operations	$	(3,806,408	)

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

Statement of changes in net assets Wells Fargo VT Opportunity Fund 15

	Year ended December 31, 2015						Year ended December 31, 2014
Operations
Net investment income				$	4,169,899					$	399,925
Net realized gains on investments					19,932,472						36,441,368
Net change in unrealized gains (losses) on investments					(27,908,779	)					(12,075,043	)
Net increase (decrease) in net assets resulting from operations					(3,806,408	)					24,766,250
Distributions to shareholders from
Net investment income
Class 1					(155,286	)					(127,115	)
Class 2					(243,668	)					(116,647	)
Net realized gains
Class 1					(3,986,797	)					0
Class 2					(19,507,701	)					0
Total distributions to shareholders					(23,893,452	)					(243,762	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class 1		77,816			1,613,192			53,369			1,479,957
Class 2		261,064			5,454,558			342,554			9,419,119
					7,067,750						10,899,076
Reinvestment of distributions
Class 1		159,926			4,142,083			4,533			127,115
Class 2		760,253			19,751,369			4,150			116,647
					23,893,452						243,762
Payment for shares redeemed
Class 1		(279,846	)		(7,750,062	)		(304,044	)		(8,294,961	)
Class 2		(1,248,271	)		(34,407,074	)		(1,442,152	)		(39,558,767	)
					(42,157,136	)					(47,853,728	)
Net decrease in net assets resulting from capital share transactions					(11,195,934	)					(36,710,890	)
Total decrease in net assets					(38,895,794	)					(12,188,402	)
Net assets
Beginning of period					243,524,580						255,712,982
End of period				$	204,628,786					$	243,524,580
Undistributed net investment income				$	4,092,930					$	390,820

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

16 Wells Fargo VT Opportunity Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended December 31
CLASS 1	2015			2014			2013			2012			20111
Net asset value, beginning of period		$28.82			$26.11			$20.02			$17.40			$16.52
Net investment income		0.57			0.10			0.08			0.10			0.04
Net realized and unrealized gains (losses) on investments		(1.28	)		2.69			6.11			2.64			0.84
Total from investment operations		(0.71	)		2.79			6.19			2.74			0.88
Distributions to shareholders from
Net investment income		(0.12	)		(0.08	)		(0.10	)		(0.11	)		0.00
Net realized gains		(2.99	)		0.00			0.00			(0.01	)		0.00
Total distributions to shareholders		(3.11	)		(0.08	)		(0.10	)		(0.12	)		0.00
Net asset value, end of period		$25.00			$28.82			$26.11			$20.02			$17.40
Total return2		(2.85	)%		10.70	%		30.99	%		15.80	%		5.33	%
Ratios to average net assets (annualized)
Gross expenses		0.84	%		0.82	%		0.84	%		0.86	%		0.83	%
Net expenses		0.75	%		0.75	%		0.75	%		0.75	%		0.75	%
Net investment income		2.02	%		0.37	%		0.32	%		0.46	%		0.61	%
Supplemental data
Portfolio turnover rate		41	%		33	%		26	%		36	%		35	%
Net assets, end of period (000s omitted)		$35,539			$42,178			$44,636			$40,950			$42,116

¹ For the period from August 26, 2011 (commencement of class operations) to December 31, 2011

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

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

Financial highlights Wells Fargo VT Opportunity Fund 17

(For a share outstanding throughout each period)

	Year ended December 31
CLASS 2	2015			2014			2013			2012			2011
Net asset value, beginning of period		$28.86			$26.15			$20.05			$17.38			$18.42
Net investment income		0.50			0.04			0.02			0.05			0.03
Net realized and unrealized gains (losses) on investments		(1.28	)		2.69			6.13			2.65			(1.04	)
Total from investment operations		(0.78	)		2.73			6.15			2.70			(1.01	)
Distributions to shareholders from
Net investment income		(0.04	)		(0.02	)		(0.05	)		(0.02	)		(0.03	)
Net realized gains		(2.99	)		0.00			0.00			(0.01	)		0.00
Total distributions to shareholders		(3.03	)		(0.02	)		(0.05	)		(0.03	)		(0.03	)
Net asset value, end of period		$25.05			$28.86			$26.15			$20.05			$17.38
Total return		(3.08	)%		10.42	%		30.68	%		15.52	%		(5.52	)%
Ratios to average net assets (annualized)
Gross expenses		1.09	%		1.07	%		1.09	%		1.10	%		1.07	%
Net expenses		1.00	%		1.00	%		1.00	%		1.00	%		1.04	%
Net investment income		1.76	%		0.12	%		0.07	%		0.21	%		0.18	%
Supplemental data
Portfolio turnover rate		41	%		33	%		26	%		36	%		35	%
Net assets, end of period (000s omitted)		$169,090			$201,347			$211,077			$188,313			$201,535

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

18 Wells Fargo 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”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Wells Fargo VT Opportunity Fund (the “Fund”) which is a diversified series of the Trust.

2. SIGNIFICANT ACCOUNTING POLICIES

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

Securities valuation

All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time).

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

Equity securities that are not listed on a foreign or domestic exchange or market, but have a public trading market, are valued at the quoted bid price from an independent broker-dealer that the Management Valuation Team of Wells Fargo Funds Management, LLC (“Funds Management”) has determined is an acceptable source.

The values of securities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Management Valuation Team.

Many securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange and therefore may not fully reflect trading or events that occur after the close of the principal exchange in which the foreign securities are traded, but before the close of the New York Stock Exchange. If such trading or events are expected to materially affect the value of such securities, then fair value pricing procedures approved by the Board of Trustees of the Fund are applied. These procedures take into account multiple factors including movements in U.S. securities markets after foreign exchanges close. Foreign securities that are fair valued under these procedures are categorized as Level 2 and the application of these procedures may result in transfers between Level 1 and Level 2. Depending on market activity, such fair valuations may be frequent. Such fair value pricing may result in net asset values that are higher or lower than net asset values based on the last reported sales price or latest quoted bid price. On December 31, 2015, such fair value pricing was used in pricing foreign securities.

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

Investments which are not valued using any of the methods discussed above are valued at their fair value, as determined in good faith by the Board of Trustees. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Management Valuation Team. The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Management Valuation Team which may include items for ratification.

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

Notes to financial statements Wells Fargo VT Opportunity Fund 19

Foreign currency translation

The accounting records of the Fund are maintained in U.S. dollars. The values of other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Management Valuation Team. Purchases and sales of securities, and income and expenses are converted at the rate of exchange on the respective dates of such transactions. Net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded and the U.S. dollar equivalent of the amounts actually paid or received. Net unrealized foreign exchange gains and losses arise from changes in the fair value of assets and liabilities other than investments in securities resulting from changes in exchange rates. The changes in net assets arising from changes in exchange rates and the changes in net assets resulting from changes in market prices of securities are not separately presented. Such changes are included in net realized and unrealized gains or losses from investments.

Security loans

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

The Fund lends its securities through an unaffiliated securities lending agent. Cash collateral received in connection with its securities lending transactions is invested in Securities Lending Cash Investments, LLC (the “Securities Lending Fund”). The Securities Lending Fund is exempt from registration under Section 3(c)(7) of the 1940 Act and is managed by Funds Management and is subadvised by Wells Capital Management Incorporated (“WellsCap”). Funds Management receives an advisory fee starting at 0.05% and declining to 0.01% as the average daily net assets of the Securities Lending Fund increase. All of the fees received by Funds Management are paid to WellsCap for its services as subadviser. The Securities Lending Fund seeks to provide a positive return compared to the daily Fed Funds Open rate by investing in high-quality, U.S. dollar-denominated short-term money market instruments. Securities Lending Fund investments are fair valued based upon the amortized cost valuation technique. Income earned from investment in the Securities Lending Fund is included in securities lending income on the Statement of Operations.

Security transactions and income recognition

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

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

Distributions to shareholders

Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-dividend date. Such distributions are determined in conformity with federal income tax regulations, which may differ in amount or character from net investment income and realized gains recognized for purposes of U.S. generally accepted accounting principles.

Federal and other taxes

The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.

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

20 Wells Fargo VT Opportunity Fund Notes to financial statements

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. At December 31, 2015, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Undistributed net investment income	Accumulated net realized gains on investments
$(68,835)	$68,835

As of December 31, 2015, the Fund had capital loss carryforwards available to offset future net realized capital gains in the amount of $360,675 expiring in 2016.

Class allocations

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

3. FAIR VALUATION MEASUREMENTS

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

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

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

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

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

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of December 31, 2015:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer Discretionary	$	34,787,829	$	0	$	0	$	34,787,829
Consumer Staples		13,059,518		0		0		13,059,518
Energy		14,390,141		0		0		14,390,141
Financials		34,061,418		0		0		34,061,418
Health Care		26,536,772		0		0		26,536,772
Industrials		25,751,718		0		0		25,751,718
Information Technology		41,858,114		2,104,054		0		43,962,168
Materials		9,337,943		0		0		9,337,943
Short-term investments
Investment companies		3,049,012		7,007,350		0		10,056,362
Total assets	$	202,832,465	$	9,111,404	$	0	$	211,943,869

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At December 31, 2015, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

Notes to financial statements Wells Fargo VT Opportunity Fund 21

4. TRANSACTIONS WITH AFFILIATES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the applicable subadviser, providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.70% and declining to 0.58% as the average daily net assets of the Fund increase.

Prior to July 1, 2015, Funds Management provided advisory services pursuant to an investment advisory agreement and was entitled to receive an annual fee which started at 0.65% and declined to 0.55% as the average daily net assets of the Fund increased. In addition, fund-level administrative services were provided by Funds Management under a separate administration agreement at an annual fee which started at 0.05% and declined to 0.03% as the average daily net assets of the Fund increased. For financial statement purposes, the advisory fee and fund-level administration fee for the year ended December 31, 2015 have been included in management fee on the Statement of Operations.

For the year ended December 31, 2015, the management fee was equivalent to an annual rate of 0.70% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. WellsCap, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.45% and declining to 0.30% as the average daily net assets of the Fund increase.

Administration fees

Under a class-level administration agreement, Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under the class-level administration agreement, Funds Management receives a class level administration fee of 0.08% which is calculated based on the average daily net assets of each class.

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through April 30, 2016 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.75% for Class 1 shares and 1.00% for Class 2 shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees

Distribution fee

The Trust has adopted a distribution plan for Class 2 shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class 2 shares and paid to Wells Fargo Funds Distributor, LLC, the principal underwriter, at an annual rate of 0.25% of the average daily net assets of Class 2 shares.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended December 31, 2015 were $92,326,718 and $118,483,834, respectively.

6. BANK BORROWINGS

The Trust and Wells Fargo Funds Trust (excluding the money market funds and certain other funds) are parties to a $200,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.20% of the unused balance is allocated to each participating fund. Prior to September 1, 2015, the revolving credit agreement

22 Wells Fargo VT Opportunity Fund Notes to financial statements

amount was $150,000,000 and the annual commitment fee was equal to 0.10% of the unused balance which was allocated to each participating fund. For the year ended December 31, 2015, the Fund paid $396 in commitment fees.

For the year ended December 31, 2015, there were no borrowings by the Fund under the agreement.

7. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended December 31, 2015 and December 31, 2014 were as follows:

	Year ended December 31
	2015		2014
Ordinary income	$	398,954	$	243,762
Long-term capital gain		23,494,498		0

As of December 31, 2015, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Undistributed long-term gain	Unrealized gains	Capital loss carryforward
$4,099,450	$19,881,635	$28,628,832	$(360,675)

8. INDEMNIFICATION

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

Report of independent registered public accounting firm Wells Fargo VT Opportunity Fund 23

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 VT Opportunity Fund (formerly known as Wells Fargo Advantage VT Opportunity Fund) (the “Fund”), one of the funds constituting the Wells Fargo Variable Trust, as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2015, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo VT Opportunity Fund as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

February 25, 2016

24 Wells Fargo VT Opportunity Fund Other information (unaudited)

TAX INFORMATION

For corporate shareholders, pursuant to Section 854 of the Internal Revenue Code, 100% of ordinary income dividends qualify for the corporate dividends-received deduction for the fiscal year ended December 31, 2015.

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-260-5969, visiting our website at wellsfargofunds.com, or visiting the SEC website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website at wellsfargofunds.com or by visiting the SEC website at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

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

Other information (unaudited) Wells Fargo VT Opportunity Fund 25

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 144 mutual funds comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information². The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.

Independent Trustees

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
William R. Ebsworth (Born 1957)	Trustee, since 2015	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief financial officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he lead a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Mr. Ebsworth is a CFA ® charterholder and an Adjunct Lecturer, Finance, at Babson College.	Asset Allocation Trust
Jane A. Freeman (Born 1953)	Trustee, since 2015	Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair of the Audit Committee. Ms. Freeman is Chair of Taproot Foundation (non-profit organization) (non-profit organization), a Board Member of Ruth Bancroft Garden (non-profit organization) and an inactive chartered financial analyst.	Asset Allocation Trust
Peter G. Gordon (Born 1942)	Trustee, since 1998; Chairman, since 2005	Co-Founder, Retired Chairman, President and CEO of Crystal Geyser Water Company. Trustee Emeritus, Colby College.	Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. Chairman of the Board of CIGNA Corporation since 2009, and Director since 2005. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (charter school). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	CIGNA Corporation; Asset Allocation Trust
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, since 2008	Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant.	Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of the Corporate Governance Research Initiative and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust

26 Wells Fargo VT Opportunity Fund Other information (unaudited)

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust
Timothy J. Penny (Born 1951)	Trustee, since 1996	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
Michael S. Scofield (Born 1943)	Trustee, since 2010	Served on the Investment Company Institute’s Board of Governors and Executive Committee from 2008-2011 as well the Governing Council of the Independent Directors Council from 2006-2011 and the Independent Directors Council Executive Committee from 2008-2011. Chairman of the IDC from 2008-2010. Institutional Investor (Fund Directions) Trustee of Year in 2007. Trustee of the Evergreen Funds complex (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield.	Asset Allocation Trust
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. Director and Vice Chair of The Tree Trust (non-profit corporation). Director of the American Chestnut Foundation (non-profit corporation).	Asset Allocation Trust

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

** Donald Willeke retired as a Trustee effective December 31, 2015.

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
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.
Jeremy DePalma1 (Born 1974)	Treasurer, since 2012; Assistant Treasurer, since 2009	Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010 and head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.
C. David Messman (Born 1960)	Secretary, since 2000; Chief Legal Officer, since 2003	Senior Vice President and Secretary of Wells Fargo Funds Management, LLC since 2001. Assistant General Counsel of Wells Fargo Bank, N.A. since 2013 and Vice President and Managing Counsel of Wells Fargo Bank, N.A. from 1996 to 2013.
Debra Ann Early (Born 1964)	Chief Compliance Officer, since 2007	Executive Vice President of Wells Fargo Funds Management, LLC since 2014, Senior Vice President and Chief Compliance Officer from 2007 to 2014.
David Berardi (Born 1975)	Assistant Treasurer, since 2009	Vice President of Wells Fargo Funds Management, LLC since 2009. Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.

¹ Jeremy DePalma acts as Treasurer of 72 funds and Assistant Treasurer of 72 funds in the Fund Complex.

² The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling
1-800-260-5969 or by visiting the website at wellsfargofunds.com.

List of abbreviations Wells Fargo VT Opportunity Fund 27

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —   Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

This page is intentionally left blank.

For more information

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

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.com

Individual investors: 1-800-222-8222

Retail investment professionals: 1-888-877-9275

Institutional investment professionals: 1-866-765-0778

This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-260-5969 or visit the Fund’s website at wellsfargofunds.com. Read the prospectus carefully before you invest or send money.

Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the funds. The funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

© 2015 Wells Fargo Funds Management, LLC. All rights reserved.

239826 02-16 AVT6/AR152 12-15

Annual Report

December 31, 2015

Wells Fargo VT Small Cap Growth Fund

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	8
Portfolio of investments	9
Financial statements
Statement of assets and liabilities	13
Statement of operations	14
Statement of changes in net assets	15
Financial highlights	16
Notes to financial statements	18
Report of independent registered public accounting firm	22
Other information	23
List of abbreviations	26

The views expressed and any forward-looking statements are as of December 31, 2015, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Funds Management, LLC. Discussions of individual securities, or the markets generally, or any Wells Fargo Fund are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements. The views expressed are subject to change at any time in response to changing circumstances in the market. Wells Fargo Funds Management, LLC and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

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

Karla M. Rabusch

President

Wells Fargo Funds

Although U.S. economic data generally improved during the period, ongoing global turmoil somewhat tempered economic growth.

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo VT Small Cap Growth Fund for the 12-month period that ended December 31, 2015. The broad U.S. stock market returned 0.48% for the reporting period (as measured by the Russell 3000^® Index).¹ Although U.S. economic data generally improved during the period, ongoing global turmoil somewhat tempered economic growth. Outside the U.S., many economies and markets faced ongoing challenges, such as the negative effects of China’s slowing economy and declining prices for oil, natural gas, and other commodities.

In the first quarter of 2015, U.S. stocks delivered positive results overall; major markets elsewhere generally rallied.

U.S. large-, mid-, and small-cap stocks tended to move similarly during the quarter until early March, when results began to diverge by market capitalization. Larger caps slipped that month as investor concern grew over the strengthening U.S. dollar’s potentially negative effect on the profits of large U.S. multinational firms; stocks of small and midsize companies, which tend to be less affected by movements in the dollar, performed better. A gradually improving U.S. economy supported positive stock results. The labor market continued growing, along with personal income and consumer confidence. For U.S. businesses, the quarter’s data were mixed; while many companies reported strong earnings, other data indicated potential weakening in manufacturing. Elsewhere in the world, major markets enjoyed positive returns spurred by accommodative monetary policies from major central banks and signs of improvement in some struggling economies.

Globally, stock markets experienced heightened volatility during the second quarter of 2015.

The broad U.S. stock market fluctuated widely during this quarter, eventually eking out a 0.14% gain (as measured by the Russell 3000^® Index). Larger stocks at times were pressured by ongoing investor concerns over the potentially negative effects on U.S. companies of a strengthening U.S. dollar and financially troubled overseas economies. The U.S. economy picked up traction during the quarter; consumer spending improved, construction and new-home sales enjoyed positive trends, and jobs growth remained a bright spot. Federal Reserve (Fed) officials, who continued to keep interest rates low while waiting for the U.S. jobs market to sufficiently improve and for inflation to approach their 2% target, made clear they could take action soon. Throughout the quarter, markets outside the U.S. remained volatile, largely due to uncertainty over the potential impact of financial challenges in other locations—most notably in Greece and Puerto Rico. Questions over slower growth in China also worried investors.

In the third quarter of 2015, China’s slowdown took a toll on U.S. and international markets.

U.S. stocks fluctuated significantly in the quarter as investors worried about the impact on the U.S. of China’s slowing growth. The broad U.S. stock market fell 7.25%, as measured by the Russell 3000^® Index. A number of positive economic indicators released during the quarter suggested the U.S. economy remained solid. However, the strengthening U.S. dollar coupled with ongoing global economic turmoil continued to hinder the economy. Although many investors believed the Fed would raise the federal funds rate during the quarter, at its September meeting the Fed left the rate unchanged. This decision fueled uncertainty about the U.S. economy’s stamina to remain healthy while facing the negative effects of troubles elsewhere in the world. One week later, Fed Chair

¹  The Russell 3000^® Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market. You cannot invest directly in an index.

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

Janet Yellen reassured investors that, barring unpleasant surprises, the Fed still intended to raise the rate in 2015. International markets were more volatile than the domestic market and delivered even weaker quarterly results. Investors’ anxiety was driven largely by China’s weakened economy. Because China is the world’s largest importer of many commodities, a number of emerging markets—key commodities exporters—struggled under the strains of reduced demand for commodities and lower prices for the commodities sold.

The U.S. stock market rose in the fourth quarter of 2015 despite ongoing concerns.

The broad U.S. stock market bounced back in the fourth quarter, ending with a 6.27% quarterly return (as measured by the Russell 3000^® Index). Stock markets outside the U.S. failed to keep pace with the domestic market as economic concerns, including China’s ongoing slowdown, continued to affect many countries worldwide. U.S. economic data released during the quarter indicated the economy remained solid, with modest growth. However, the strong U.S. dollar and global economic turmoil continued their drag on the economy. In December, the Fed, as expected, slightly raised its target short-term interest rate to between 0.25% and 0.50% after keeping it near zero for seven years. The move, which had been well telegraphed by the Fed for months, reflected confidence in the U.S. economy’s ability to stay healthy with less central-bank support. The Fed also made clear that future interest-rate increases will be gradual.

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

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

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

Sincerely,

Karla M. Rabusch

President

Wells Fargo Funds

Experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future.

Notice to shareholders

At a meeting held August 11-12, 2015, the Board of Trustees of the Fund approved a change in the name of the Fund whereby the word “Advantage” was removed from its name, effective December 15, 2015.

For further information about your Fund, contact your investment professional, visit our website at wellsfargofunds.com, or call us directly at 1-800-260-5969. We are available 24 hours a day, 7 days a week.

4 Wells Fargo VT Small Cap Growth Fund Performance highlights (unaudited)

The Fund is currently closed to new insurance companies.¹

Investment objective

The Fund seeks long-term capital appreciation.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Joseph M. Eberhardy, CFA^®, CFP

Thomas C. Ognar, CFA^®

Bruce C. Olson, CFA^®

Average annual total returns (%) as of December 31, 2015²

									Expense ratios3 (%)
	Inception date	1 year			5 year		10 year		Gross		Net4
Class 1	7-16-2010		(2.63	)		8.31		8.98		0.93		0.93
Class 2	5-1-1995		(2.88	)		8.06		8.84		1.18		1.18
Russell 2000® Growth Index5	–		(1.38	)		10.67		7.95		–		–

Figures quoted represent past performance, which is no guarantee of future results. 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 and assumes the reinvestment of dividends and capital gains. Current month-end performance is available by calling 1-800-260-5969. Performance figures of the Fund do not reflect fees charged pursuant to the terms of variable life insurance policies and variable annuity contracts. If fees had been reflected, performance would have been lower.

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

Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Smaller-company stocks tend to be more volatile and less liquid than those of larger companies. Consult the Fund’s prospectus for additional information on these and other risks.

Please 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.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo VT Small Cap Growth Fund 5

Growth of $10,000 investment as of December 31, 2015⁶

¹  Please see the Fund’s current Statement of Additional Information for further details.

²  Historical performance shown for Class 1 shares prior to their 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.

³  Reflects the expense ratios as stated in the most recent prospectuses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report.

⁴  The manager has contractually committed through April 30, 2016, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver at 0.95% for Class 1 and 1.20% for Class 2. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the cap. Without this cap, the Fund’s returns would have been lower.

⁵  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.

⁶  The chart compares the performance of Class 2 shares for the most recent ten years with the Russell 2000^® Growth Index. The chart assumes ahypothetical $10,000 investment and reflects all operating expenses of the Fund. Performance figures of the Fund do not reflect fees charged pursuant to the terms of variable life insurance policies and variable annuity contracts.

⁷  The ten largest holdings, excluding cash and cash equivalents, are calculated based on the value of the investments divided by total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

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

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

MANAGER’S DISCUSSION

Fund highlights

n The Fund underperformed its benchmark, the Russell 2000^® Growth Index, for the 12-month period that ended December 31, 2015.

n Stock selection within the consumer discretionary and health care sectors detracted from results during the period.

n Stock selection in the information technology (IT) and financials sectors aided relative performance.

2015 began on a positive note as small-cap growth stocks sustained a generally upward trend through the middle of the year, driven by signs of economic expansion and continued favorable monetary policy. During the first half of 2015, a relatively broad group of stocks participated in the upside, and the Fund significantly outperformed its benchmark, aided by contributions from a variety of sectors. However, in much of the second half of the year, small-cap growth stocks experienced increased volatility as investors tended to favor the largest-market-capitalization stocks in the market. The more volatile market environment experienced in the latter part of 2015 accounted for the Fund’s underperformance for the entire 12-month period.

Ten largest holdings (%) as of December 31, 20157
MarketAxess Holdings Incorporated	3.97
Proofpoint Incorporated	3.68
Acadia Healthcare Company Incorporated	3.24
SPS Commerce Incorporated	3.18
Demandware Incorporated	2.12
Envestnet Incorporated	2.04
Cynosure Incorporated Class A	2.00
Wageworks Incorporated	1.96
On Assignment Incorporated	1.89
Q2 Holdings Incorporated	1.86

Stock selection within the health care and consumer discretionary sectors hindered Fund performance.

Within the health care sector, holdings in the equipment and supplies industry and providers and services industry detracted the most. The Spectranetics Corporation declined sharply due to investors’ fears of competing medical technologies. However, we believe the company may continue to gain market share in the peripheral artery disease and coronary artery disease markets due to the firm’s industry-leading plaque-removal products. In the providers and services industry, ExamWorks Group, Incorporated, was the largest detractor. Investor concerns over competitive pressures from smaller peers contributed to the stock’s decline; however, these

potential threats appear unsustainable to us given the company’s continued traction with larger customers.

Fund holdings within the hotels, restaurants, and leisure industry drove weakness in the consumer discretionary sector—especially Fiesta Restaurant Group, Incorporated. Issues we view as temporary influenced the firm’s weakness, and we remain attracted to the company’s two fast-casual restaurants, Pollo Tropical and Taco Cabana, which offer differentiated concepts, strong restaurant-level economics, and a propensity for expansion into new markets. Fiesta plans to boost ad spending in 2016 and has remodeled a number of its Florida stores; we believe both of these efforts could benefit revenues. While Taco Cabana has performed well over the past 18 months, we view Pollo Tropical in particular as a growth engine for the company and believe this concept has the potential to expand significantly.

The Fund benefited from positive stock-selection results in the IT and financials sectors.

Companies in the software industry with strong growth catalysts led outperformance in the IT sector, especially those gaining share within the rapidly growing cloud-based-solutions market. These contributors included Fleetmatics Group PLC and Paycom Software, Incorporated, which benefited from favorable secular trends and innovative product solutions that contributed to strong earnings growth. Proofpoint, Incorporated, delivered the largest individual contribution within IT due to robust demand for its enterprise data-security solutions. With just a 10% share of the legacy market and a client-retention rate above 90%, we believe Proofpoint is well positioned to address the growing threat of targeted attacks on corporate data systems domestically and internationally.

Within financials, MarketAxess Holdings Incorporated served as a top contributor as the company continued to gain market share in the U.S. high-grade and high-yield bond segments. Although MarketAxess already has captured 90% of the high-grade bond electronic-trading market, the company retains a long runway for growth because electronic trading currently accounts for less than 20% of the overall high-grade trading market.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo VT Small Cap Growth Fund 7

Our outlook remains positive.

We have a positive outlook for the U.S. stock market and the rapidly growing companies in the Fund. We believe the broad market is reasonably valued and that faster-growing companies generally are attractively valued relative to the market. In our view, corporate earnings and overall economic activity in the U.S. likely could reflect only modest growth in 2016. We also recognize that underlying demand trends for many U.S. companies have been more volatile recently than they were a few years ago. As a result, our team has remained selective in identifying companies with the potential to sustain robust growth through strong, secular catalysts rather than relying on cyclical turns in the economy. We believe the Fund’s holdings could be rewarded as investors continue to search for attractive revenue growth in a generally scarce growth environment.

Sector distribution as of December 31, 2015⁸

Please see footnotes on page 5.

8 Wells Fargo VT Small Cap Growth Fund Fund expenses (unaudited)

As a shareholder of the Fund, you incur ongoing costs, including management fees, distribution (12b-1) 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, 2015 to December 31, 2015.

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 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 separate account charges assessed by participating insurance companies were included, your costs would have been higher.

	Beginning account value 7-1-2015		Ending account value 12-31-2015		Expenses paid during the period¹		Net annualized expense ratio
Class 1
Actual	$	1,000.00	$	854.92	$	4.35		0.93	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.52	$	4.74		0.93	%
Class 2
Actual	$	1,000.00	$	854.50	$	5.52		1.18	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.26	$	6.01		1.18	%

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

Portfolio of investments—December 31, 2015 Wells Fargo VT Small Cap Growth Fund 9

Security name	Shares		Value
Common Stocks: 97.37%
Consumer Discretionary: 14.25%
Auto Components: 1.78%
Gentherm Incorporated †		28,500	$	1,350,898
Motorcar Parts of America Incorporated †		91,333		3,087,969
				4,438,867
Diversified Consumer Services: 1.50%
2U Incorporated †«		41,000		1,147,180
Grand Canyon Education Incorporated †		64,800		2,599,776
				3,746,956
Hotels, Restaurants & Leisure: 5.12%
Fiesta Restaurant Group Incorporated †		123,376		4,145,434
Jack in the Box Incorporated		32,000		2,454,720
Planet Fitness Incorporated Class A †«		48,976		765,495
The Habit Restaurants Incorporated Class A †«		129,718		2,991,297
Wingstop Incorporated †«		67,300		1,535,113
Zoe’s Kitchen Incorporated †«		31,053		868,863
				12,760,922
Internet & Catalog Retail: 0.00%
Expedia Incorporated		1		93
Leisure Products: 0.35%
MCBC Holdings Incorporated †		63,234		866,306
Media: 1.20%
IMAX Corporation †		84,100		2,988,914
Specialty Retail: 3.34%
Boot Barn Holdings Incorporated †«		120,411		1,479,851
Five Below Incorporated †		26,078		837,104
Lithia Motors Incorporated Class A		34,500		3,680,115
Sportsman’s Warehouse Holdings Incorporated †		179,734		2,318,569
				8,315,639
Textiles, Apparel & Luxury Goods: 0.96%
G-III Apparel Group Limited †		54,000		2,390,040
Energy: 2.12%
Oil, Gas & Consumable Fuels: 2.12%
Matador Resources Company †		62,623		1,238,057
PDC Energy Incorporated †		34,500		1,841,610
RSP Permian Incorporated †		90,851		2,215,856
				5,295,523

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

10 Wells Fargo VT Small Cap Growth Fund Portfolio of investments—December 31, 2015

Security name	Shares		Value
Financials: 6.23%
Capital Markets: 0.65%
Financial Engines Incorporated «		47,700	$	1,606,059
Consumer Finance: 0.26%
PRA Group Incorporated †«		18,895		655,468
Diversified Financial Services: 3.97%
MarketAxess Holdings Incorporated		88,678		9,895,578
Thrifts & Mortgage Finance: 1.35%
LendingTree Incorporated †		37,801		3,374,873
Health Care: 31.82%
Biotechnology: 5.61%
Exact Sciences Corporation †		25,408		234,516
Ligand Pharmaceuticals Incorporated †		37,200		4,033,224
PTC Therapeutics Incorporated †«		52,000		1,684,800
Radius Health Incorporated †		36,338		2,236,241
Repligen Corporation †		78,400		2,217,936
Ultragenyx Pharmaceutical Incorporated †		31,912		3,579,888
				13,986,605
Health Care Equipment & Supplies: 13.46%
Abiomed Incorporated †		23,900		2,157,692
Align Technology Incorporated †		21,600		1,422,360
Cerus Corporation †«		280,040		1,769,853
ConforMIS Incorporated †«		71,879		1,242,788
Cynosure Incorporated Class A †		111,377		4,975,211
Entellus Medical Incorporated †		68,492		1,154,775
Glaukos Corporation †«		78,096		1,928,190
Inogen Incorporated †		76,000		3,046,840
Natus Medical Incorporated †		51,100		2,455,355
Nevro Corporation †		49,539		3,344,378
NxStage Medical Incorporated †		204,720		4,485,415
The Spectranetics Corporation †		264,367		3,981,367
Zeltiq Aesthetics Incorporated †		55,600		1,586,268
				33,550,492
Health Care Providers & Services: 9.33%
AAC Holdings Incorporated †«		33,968		647,430
Acadia Healthcare Company Incorporated †		129,400		8,082,324
Adeptus Health Incorporated Class A †«		19,668		1,072,299
Diplomat Pharmacy Incorporated †«		85,339		2,920,301
ExamWorks Group Incorporated †		142,556		3,791,990
HealthEquity Incorporated †		170,885		4,284,087
Team Health Holdings Incorporated †		16,900		741,741
Teladoc Incorporated †«		95,606		1,717,084
				23,257,256

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

Portfolio of investments—December 31, 2015 Wells Fargo VT Small Cap Growth Fund 11

Security name	Shares		Value
Life Sciences Tools & Services: 2.30%
ICON plc ADR †		34,000	$	2,641,800
INC Research Holdings Incorporated Class A †		63,900		3,099,789
				5,741,589
Pharmaceuticals: 1.12%
Intersect ENT Incorporated †		77,551		1,744,898
Pacira Pharmaceuticals Incorporated †		13,600		1,044,344
				2,789,242
Industrials: 6.97%
Building Products: 0.81%
Apogee Enterprises Incorporated		46,516		2,023,911
Commercial Services & Supplies: 0.80%
Multi-Color Corporation		33,400		1,997,654
Construction & Engineering: 0.25%
Dycom Industries Incorporated †		8,700		608,652
Machinery: 1.03%
John Bean Technologies Corporation		24,100		1,200,903
Milacron Holdings Corporation †		109,637		1,371,559
				2,572,462
Professional Services: 4.08%
CEB Incorporated		9,241		567,305
On Assignment Incorporated †		104,581		4,700,916
Wageworks Incorporated †		107,828		4,892,156
				10,160,377
Information Technology: 35.98%
Communications Equipment: 0.87%
Infinera Corporation †		119,694		2,168,855
Internet Software & Services: 10.95%
Demandware Incorporated †«		97,900		5,283,663
Envestnet Incorporated †		170,641		5,093,634
Hortonworks Incorporated †«		37,718		826,024
LogMeIn Incorporated †		34,631		2,323,740
Q2 Holdings Incorporated †		175,696		4,633,104
SPS Commerce Incorporated †		112,971		7,931,694
Xactly Corporation †		141,410		1,206,227
				27,298,086
IT Services: 2.12%
InterXion Holding NV †		151,300		4,561,695
Maximus Incorporated		12,800		720,000
				5,281,695

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

12 Wells Fargo VT Small Cap Growth Fund Portfolio of investments—December 31, 2015

Security name				Shares		Value
Semiconductors & Semiconductor Equipment: 1.68%
Cavium Incorporated †					34,400	$	2,260,424
Monolithic Power Systems Incorporated					30,100		1,917,671
							4,178,095
Software: 20.36%
Callidus Software Incorporated †					224,834		4,175,167
CyberArk Software Limited †«					75,800		3,421,612
Fleetmatics Group plc †					60,409		3,068,173
Guidewire Software Incorporated †					41,000		2,466,560
HubSpot Incorporated †«					72,958		4,108,265
Paycom Software Incorporated †					74,500		2,803,435
Paylocity Holding Corporation †					53,127		2,154,300
Proofpoint Incorporated †					141,000		9,166,410
Qlik Technologies Incorporated †					114,400		3,621,904
Qualys Incorporated †					60,000		1,985,400
Rapid7 Incorporated †«					76,160		1,152,301
Ringcentral Incorporated Class A †					176,200		4,154,796
Synchronoss Technologies Incorporated †					115,658		4,074,631
Tyler Technologies Incorporated †					12,370		2,156,338
Ultimate Software Group Incorporated †					11,500		2,248,365
							50,757,657
Total Common Stocks (Cost $216,143,865)							242,707,866
	Yield
Short-Term Investments: 16.23%
Investment Companies: 16.23%
Securities Lending Cash Investments, LLC (l)(r)(u)		0.39	%		34,939,874		34,939,874
Wells Fargo Cash Investment Money Market Fund, Select Class (l)(u)		0.33			5,523,347		5,523,347
Total Short-Term Investments (Cost $40,463,221)							40,463,221

Total investments in securities (Cost $256,607,086) *	113.60	%		283,171,087
Other assets and liabilities, net	(13.60	)		(33,901,368	)
Total net assets	100.00	%	$	249,269,719

† Non-income-earning security

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

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

(r) The investment is a non-registered investment vehicle purchased with cash collateral received from securities on loan.

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

* Cost for federal income tax purposes is $256,729,095 and unrealized gains (losses) consists of:

Gross unrealized gains	$	42,419,400
Gross unrealized losses		(15,977,408	)
Net unrealized gains	$	26,441,992

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

Statement of assets and liabilities—December 31, 2015 Wells Fargo VT Small Cap Growth Fund 13

Assets
Investments
In unaffiliated securities (including $33,736,241 of securities loaned), at value (cost $216,143,865)	$	242,707,866
In affiliated securities, at value (cost $40,463,221)		40,463,221
Total investments, at value (cost $256,607,086)		283,171,087
Receivable for investments sold		2,756,409
Receivable for Fund shares sold		21,591
Receivable for dividends		11,215
Receivable for securities lending income		99,848
Total assets		286,060,150
Liabilities
Payable for investments purchased		1,452,522
Payable for Fund shares redeemed		80,747
Payable upon receipt of securities loaned		34,939,874
Management fee payable		188,746
Distribution fee payable		53,655
Administration fees payable		18,875
Accrued expenses and other liabilities		56,012
Total liabilities		36,790,431
Total net assets	$	249,269,719
NET ASSETS CONSIST OF
Paid-in capital	$	201,291,894
Accumulated net investment loss		(1,032	)
Accumulated net realized gains on investments		21,414,856
Net unrealized gains on investments		26,564,001
Total net assets	$	249,269,719
COMPUTATION OF NET ASSET VALUE PER SHARE
Net assets – Class 1	$	22,402,247
Shares outstanding – Class 11		2,574,436
Net asset value per share – Class 1		$8.70
Net assets – Class 2	$	226,867,472
Shares outstanding – Class 21		26,508,439
Net asset value per share – Class 2		$8.56

¹  The Fund has an unlimited number of authorized shares.

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

14 Wells Fargo VT Small Cap Growth Fund Statement of operations—year ended December 31, 2015

Investment income
Dividends	$	217,697
Securities lending income, net		435,019
Income from affiliated securities		9,983
Total investment income		662,699
Expenses
Management fee		2,133,541
Administration fees
Class 1		21,984
Class 2		191,370
Distribution fee
Class 2		598,032
Custody and accounting fees		26,468
Professional fees		44,297
Shareholder report expenses		38,359
Trustees’ fees and expenses		14,214
Other fees and expenses		11,902
Total expenses		3,080,167
Net investment loss		(2,417,468	)
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on investments		21,693,855
Net change in unrealized gains (losses) on investments		(27,525,796	)
Net realized and unrealized gains (losses) on investments		(5,831,941	)
Net decrease in net assets resulting from operations	$	(8,249,409	)

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

Statement of changes in net assets Wells Fargo VT Small Cap Growth Fund 15

	Year ended December 31, 2015						Year ended December 31, 2014
Operations
Net investment loss				$	(2,417,468	)				$	(2,505,133	)
Net realized gains on investments					21,693,855						32,565,720
Net change in unrealized gains (losses) on investments					(27,525,796	)					(37,633,951	)
Net decrease in net assets resulting from operations					(8,249,409	)					(7,573,364	)
Distributions to shareholders from
Net realized gains
Class 1					(3,363,108	)					(2,634,770	)
Class 2					(29,271,572	)					(21,413,772	)
Total distributions to shareholders					(32,634,680	)					(24,048,542	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class 1		359,480			3,697,863			336,122			3,459,281
Class 2		5,605,448			55,550,499			2,516,342			25,941,725
					59,248,362						29,401,006
Reinvestment of distributions
Class 1		331,015			3,363,108			284,840			2,634,770
Class 2		2,924,233			29,271,572			2,340,303			21,413,772
					32,634,680						24,048,542
Payment for shares redeemed
Class 1		(905,115	)		(8,809,137	)		(939,801	)		(9,527,061	)
Class 2		(4,812,770	)		(48,006,796	)		(4,381,681	)		(42,879,278	)
					(56,815,933	)					(52,406,339	)
Net increase in net assets resulting from capital share transactions					35,067,109						1,043,209
Total decrease in net assets					(5,816,980	)					(30,578,697	)
Net assets
Beginning of period					255,086,699						285,665,396
End of period				$	249,269,719					$	255,086,699
Accumulated net investment loss				$	(1,032	)				$	(1,297	)

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

16 Wells Fargo VT Small Cap Growth Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended December 31
CLASS 1	2015			2014			2013			2012			2011
Net asset value, beginning of period		$10.08			$11.32			$7.93			$7.71			$8.06
Net investment loss		(0.06	)		(0.07	)		(0.07	)		(0.04	)		(0.06	)
Net realized and unrealized gains (losses) on investments		(0.02	)		(0.21	)		3.98			0.65			(0.29	)
Total from investment operations		(0.08	)		(0.28	)		3.91			0.61			(0.35	)
Distributions to shareholders from
Net realized gains		(1.30	)		(0.96	)		(0.52	)		(0.39	)		0.00
Net asset value, end of period		$8.70			$10.08			$11.32			$7.93			$7.71
Total return		(2.63	)%		(1.67	)%		50.55	%		8.11	%		(4.34	)%
Ratios to average net assets (annualized)
Gross expenses		0.93	%		0.93	%		0.93	%		0.94	%		0.94	%
Net expenses		0.93	%		0.93	%		0.93	%		0.94	%		0.94	%
Net investment loss		(0.69	)%		(0.75	)%		(0.73	)%		(0.56	)%		(0.73	)%
Supplemental data
Portfolio turnover rate		77	%		54	%		67	%		65	%		118	%
Net assets, end of period (000s omitted)		$22,402			$28,121			$35,192			$25,699			$29,351

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

Financial highlights Wells Fargo VT Small Cap Growth Fund 17

(For a share outstanding throughout each period)

	Year ended December 31
CLASS 2	2015			2014			2013			2012			2011
Net asset value, beginning of period		$9.96			$11.22			$7.88			$7.68			$8.05
Net investment loss		(0.08	)		(0.10	)		(0.09	)		(0.07	)		(0.09	)
Net realized and unrealized gains (losses) on investments		(0.02	)		(0.20	)		3.95			0.66			(0.28	)
Total from investment operations		(0.10	)		(0.30	)		3.86			0.59			(0.37	)
Distributions to shareholders from
Net realized gains		(1.30	)		(0.96	)		(0.52	)		(0.39	)		0.00
Net asset value, end of period		$8.56			$9.96			$11.22			$7.88			$7.68
Total return		(2.88	)%		(1.88	)%		50.23	%		7.87	%		(4.60	)%
Ratios to average net assets (annualized)
Gross expenses		1.18	%		1.18	%		1.18	%		1.19	%		1.20	%
Net expenses		1.18	%		1.18	%		1.18	%		1.19	%		1.19	%
Net investment loss		(0.93	)%		(1.00	)%		(0.98	)%		(0.81	)%		(0.98	)%
Supplemental data
Portfolio turnover rate		77	%		54	%		67	%		65	%		118	%
Net assets, end of period (000s omitted)		$226,867			$226,966			$250,473			$182,213			$203,348

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

18 Wells Fargo 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”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Wells Fargo VT Small Cap Growth Fund (the “Fund”) which is a diversified series of the Trust.

2. SIGNIFICANT ACCOUNTING POLICIES

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

Securities valuation

All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time).

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

Equity securities that are not listed on a foreign or domestic exchange or market, but have a public trading market, are valued at the quoted bid price from an independent broker-dealer that the Management Valuation Team of Wells Fargo Funds Management, LLC (“Funds Management”) has determined is an acceptable source.

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

Investments which are not valued using any of the methods discussed above are valued at their fair value, as determined in good faith by the Board of Trustees of the Fund. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Management Valuation Team. The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Management Valuation Team which may include items for ratification.

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

Security loans

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

Notes to financial statements Wells Fargo VT Small Cap Growth Fund 19

The Fund lends its securities through an unaffiliated securities lending agent. Cash collateral received in connection with its securities lending transactions is invested in Securities Lending Cash Investments, LLC (the “Securities Lending Fund”). The Securities Lending Fund is exempt from registration under Section 3(c)(7) of the 1940 Act and is managed by Funds Management and is subadvised by Wells Capital Management Incorporated (“WellsCap”). Funds Management receives an advisory fee starting at 0.05% and declining to 0.01% as the average daily net assets of the Securities Lending Fund increase. All of the fees received by Funds Management are paid to WellsCap for its services as subadviser. The Securities Lending Fund seeks to provide a positive return compared to the daily Fed Funds Open rate by investing in high-quality, U.S. dollar-denominated short-term money market instruments. Securities Lending Fund investments are fair valued based upon the amortized cost valuation technique. Income earned from investment in the Securities Lending Fund is included in securities lending income on the Statement of Operations.

Security transactions and income recognition

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

Dividend income is recognized on the ex-dividend date.

Distributions to shareholders

Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-dividend date. Such distributions are determined in conformity with federal income tax regulations, which may differ in amount or character from net investment income and realized gains recognized for purposes of U.S. generally accepted accounting principles.

Federal and other taxes

The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.

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

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The primary permanent difference causing such reclassifications is due to net operating losses. At December 31, 2015, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Paid-in capital	Accumulated net investment loss	Accumulated net realized gains on investments
$(2,423,753)	$2,417,733	$6,020

Class allocations

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

3. FAIR VALUATION MEASUREMENTS

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

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

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

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

20 Wells Fargo VT Small Cap Growth Fund Notes to financial statements

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

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of December 31, 2015:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	35,507,737	$	0	$	0	$	35,507,737
Energy		5,295,523		0		0		5,295,523
Financials		15,531,978		0		0		15,531,978
Health care		79,325,184		0		0		79,325,184
Industrials		17,363,056		0		0		17,363,056
Information technology		89,684,388		0		0		89,684,388
Short-term investments
Investment companies		5,523,347		34,939,874		0		40,463,221
Total assets	$	248,231,213	$	34,939,874	$	0	$	283,171,087

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At December 31, 2015, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

4. TRANSACTIONS WITH AFFILIATES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the applicable subadviser, providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management receives an annual management fee starting at 0.80% and declining to 0.63% as the average daily net assets of the Fund increase.

Prior to July 1, 2015, Funds Management provided advisory services pursuant to an investment advisory agreement and was entitled to receive an annual fee which started at 0.75% and declined to 0.60% as the average daily net assets of the Fund increased. In addition, fund-level administrative services were provided by Funds Management under a separate administration agreement at an annual fee which started at 0.05% and declined to 0.03% as the average daily net assets of the Fund increased. For financial statement purposes, the advisory fee and fund-level administration fee for the year ended December 31, 2015 have been included in management fee on the Statement of Operations.

For the year ended December 31, 2015, the management fee was equivalent to an annual rate of 0.80% of the Fund’s average daily net assets.

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

Administration fees

Under a class-level administration agreement, Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under the class-level administration agreement, Funds Management receives a class level administration fee of 0.08% which is calculated based on the average daily net assets of each class.

Notes to financial statements Wells Fargo VT Small Cap Growth Fund 21

Funds Management has contractually waived and/or reimbursed 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. Funds Management has committed through April 30, 2016 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.95% for Class 1 shares and 1.20% for Class 2 shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

Distribution fee

The Trust has adopted a distribution plan for Class 2 shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class 2 shares and paid to Wells Fargo Funds Distributor, LLC, the principal underwriter, at an annual rate of 0.25% of the average daily net assets of Class 2 shares.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended December 31, 2015 were $197,970,378 and $201,019,572, respectively.

6. BANK BORROWINGS

The Trust and Wells Fargo Funds Trust (excluding the money market funds and certain other funds) are parties to a $200,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.20% of the unused balance is allocated to each participating fund. Prior to September 1, 2015, the revolving credit agreement amount was $150,000,000 and the annual commitment fee was equal to 0.10% of the unused balance which was allocated to each participating fund. For the year ended December 31, 2015, the Fund paid $557 in commitment fees.

For the year ended December 31, 2015, there were no borrowings by the Fund under the agreement.

7. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during for the years ended December 31, 2015 and December 31, 2014, respectively.

	Year ended December 31
	2015		2014
Ordinary income	$	0	$	3,203,905
Long-term capital gain		32,634,680		20,844,637

As of December 31, 2015, the components of distributable earnings on a tax basis were as follows:

Undistributed long-term gain	Unrealized gains
$21,536,865	$26,441,992

8. CONCENTRATION RISK

Concentration risks result from exposure to a limited number of sectors. A fund that invests a substantial portion of its assets in any sector may be more affected by changes in that sector than would be a fund whose investments are not heavily weighted in any sector.

9. INDEMNIFICATION

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

22 Wells Fargo 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 VT Small Cap Growth Fund (formerly known as Wells Fargo Advantage VT Small Cap Growth Fund) (the “Fund”), one of the funds constituting the Wells Fargo Variable Trust, as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2015, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo VT Small Cap Growth Fund as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

February 25, 2016

Other information (unaudited) Wells Fargo VT Small Cap Growth Fund 23

TAX INFORMATION

Pursuant to Section 852 of the Internal Revenue Code, $32,634,680 was designated as long-term capital gain distributions for the fiscal year ended December 31, 2015.

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-260-5969, visiting our website at wellsfargofunds.com, or visiting the SEC website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website at wellsfargofunds.com or by visiting the SEC website at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

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

24 Wells Fargo VT Small Cap Growth Fund Other information (unaudited)

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 144 mutual funds comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information². The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.

Independent Trustees

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
William R. Ebsworth (Born 1957)	Trustee, since 2015	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief financial officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he lead a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Mr. Ebsworth is a CFA® charterholder and an Adjunct Lecturer, Finance, at Babson College.	Asset Allocation Trust
Jane A. Freeman (Born 1953)	Trustee, since 2015	Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair of the Audit Committee. Ms. Freeman is Chair of Taproot Foundation (non-profit organization) , a Board Member of Ruth Bancroft Garden (non-profit organization) and an inactive chartered financial analyst.	Asset Allocation Trust
Peter G. Gordon (Born 1942)	Trustee, since 1998; Chairman, since 2005	Co-Founder, Retired Chairman, President and CEO of Crystal Geyser Water Company. Trustee Emeritus, Colby College.	Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. Chairman of the Board of CIGNA Corporation since 2009, and Director since 2005. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (charter school). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	CIGNA Corporation; Asset Allocation Trust
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, since 2008	Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant.	Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of the Corporate Governance Research Initiative and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust

Other information (unaudited) Wells Fargo VT Small Cap Growth Fund 25

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust
Timothy J. Penny (Born 1951)	Trustee, since 1996	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
Michael S. Scofield (Born 1943)	Trustee, since 2010	Served on the Investment Company Institute’s Board of Governors and Executive Committee from 2008-2011 as well the Governing Council of the Independent Directors Council from 2006-2011 and the Independent Directors Council Executive Committee from 2008-2011. Chairman of the IDC from 2008-2010. Institutional Investor (Fund Directions) Trustee of Year in 2007. Trustee of the Evergreen Funds complex (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield.	Asset Allocation Trust
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. Director and Vice Chair of The Tree Trust (non-profit corporation). Director of the American Chestnut Foundation (non-profit corporation).	Asset Allocation Trust

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

** Donald Willeke retired as a Trustee effective December 31, 2015.

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
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.
Jeremy DePalma1 (Born 1974)	Treasurer, since 2012; Assistant Treasurer, since 2009	Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010 and head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.
C. David Messman (Born 1960)	Secretary, since 2000; Chief Legal Officer, since 2003	Senior Vice President and Secretary of Wells Fargo Funds Management, LLC since 2001. Assistant General Counsel of Wells Fargo Bank, N.A. since 2013 and Vice President and Managing Counsel of Wells Fargo Bank, N.A. from 1996 to 2013.
Debra Ann Early (Born 1964)	Chief Compliance Officer, since 2007	Executive Vice President of Wells Fargo Funds Management, LLC since 2014, Senior Vice President and Chief Compliance Officer from 2007 to 2014.
David Berardi (Born 1975)	Assistant Treasurer, since 2009	Vice President of Wells Fargo Funds Management, LLC since 2009. Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.

¹ Jeremy DePalma acts as Treasurer of 72 funds and Assistant Treasurer of 72 funds in the Fund Complex.

² The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling
1-800-260-5969 or by visiting the website at wellsfargofunds.com.

26 Wells Fargo VT Small Cap Growth Fund List of abbreviations

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —   Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

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For more information

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

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.com

Individual investors: 1-800-222-8222

Retail investment professionals: 1-888-877-9275

Institutional investment professionals: 1-866-765-0778

This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call
1-800-260-5969 or visit the Fund’s website at wellsfargofunds.com. Read the prospectus carefully before you invest or send money.

Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the funds. The funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

© 2015 Wells Fargo Funds Management, LLC. All rights reserved.

239827 02-16 AVT7/AR153 12-15

Annual Report

December 31, 2015

Wells Fargo VT Small Cap Value Fund

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	6
Fund expenses	10
Portfolio of investments	11
Financial statements
Statement of assets and liabilities	16
Statement of operations	17
Statement of changes in net assets	18
Financial highlights	19
Notes to financial statements	21
Report of independent registered public accounting firm	25
Other information	26
List of abbreviations	29

The views expressed and any forward-looking statements are as of December 31, 2015, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Funds Management, LLC. Discussions of individual securities, or the markets generally, or any Wells Fargo Fund are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements. The views expressed are subject to change at any time in response to changing circumstances in the market. Wells Fargo Funds Management, LLC and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

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

Karla M. Rabusch

President

Wells Fargo Funds

Although U.S. economic data generally improved during the period, ongoing global turmoil somewhat tempered economic growth.

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo VT Small Cap Value Fund for the 12-month period that ended December 31, 2015. The broad U.S. stock market returned 0.48% for the reporting period (as measured by the Russell 3000^® Index).¹ Although U.S. economic data generally improved during the period, ongoing global turmoil somewhat tempered economic growth. Outside the U.S., many economies and markets faced ongoing challenges, such as the negative effects of China’s slowing economy and declining prices for oil, natural gas, and other commodities.

In the first quarter of 2015, U.S. stocks delivered positive results overall; major markets elsewhere generally rallied.

U.S. large-, mid-, and small-cap stocks tended to move similarly during the quarter until early March, when results began to diverge by market capitalization. Larger caps slipped that month as investor concern grew over the strengthening U.S. dollar’s potentially negative effect on the profits of large U.S. multinational firms; stocks of small and midsize companies, which tend to be less affected by movements in the dollar, performed better. A gradually improving U.S. economy supported positive stock results. The labor market continued growing, along with personal income and consumer confidence. For U.S. businesses, the quarter’s data were mixed; while many companies reported strong earnings, other data indicated potential weakening in manufacturing. Elsewhere in the world, major markets enjoyed positive returns spurred by accommodative monetary policies from major central banks and signs of improvement in some struggling economies.

Globally, stock markets experienced heightened volatility during the second quarter of 2015.

The broad U.S. stock market fluctuated widely during this quarter, eventually eking out a 0.14% gain (as measured by the Russell 3000^® Index). Larger stocks at times were pressured by ongoing investor concerns over the potentially negative effects on U.S. companies of a strengthening U.S. dollar and financially troubled overseas economies. The U.S. economy picked up traction during the quarter; consumer spending improved, construction and new-home sales enjoyed positive trends, and jobs growth remained a bright spot. Federal Reserve (Fed) officials, who continued to keep interest rates low while waiting for the U.S. jobs market to sufficiently improve and for inflation to approach their 2% target, made clear they could take action soon. Throughout the quarter, markets outside the U.S. remained volatile, largely due to uncertainty over the potential impact of financial challenges in other locations—most notably in Greece and Puerto Rico. Questions over slower growth in China also worried investors.

In the third quarter of 2015, China’s slowdown took a toll on U.S. and international markets.

U.S. stocks fluctuated significantly in the quarter as investors worried about the impact on the U.S. of China’s slowing growth. The broad U.S. stock market fell 7.25%, as measured by the Russell 3000^® Index. A number of positive economic indicators released during the quarter suggested the U.S. economy remained solid. However, the strengthening U.S. dollar coupled with ongoing global economic turmoil continued to hinder the economy. Although many investors believed the Fed would raise the federal funds rate during the quarter, at its

¹  The Russell 3000^® Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market. You cannot invest directly in an index.

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

September meeting the Fed left the rate unchanged. This decision fueled uncertainty about the U.S. economy’s stamina to remain healthy while facing the negative effects of troubles elsewhere in the world. One week later, Fed Chair Janet Yellen reassured investors that, barring unpleasant surprises, the Fed still intended to raise the rate in 2015. International markets were more volatile than the domestic market and delivered even weaker quarterly results. Investors’ anxiety was driven largely by China’s weakened economy. Because China is the world’s largest importer of many commodities, a number of emerging markets—key commodities exporters—struggled under the strains of reduced demand for commodities and lower prices for the commodities sold.

The U.S. stock market rose in the fourth quarter of 2015 despite ongoing concerns.

The broad U.S. stock market bounced back in the fourth quarter, ending with a 6.27% quarterly return (as measured by the Russell 3000^® Index). Stock markets outside the U.S. failed to keep pace with the domestic market as economic concerns, including China’s ongoing slowdown, continued to affect many countries worldwide. U.S. economic data released during the quarter indicated the economy remained solid, with modest growth. However, the strong U.S. dollar and global economic turmoil continued their drag on the economy. In December, the Fed, as expected, slightly raised its target short-term interest rate to between 0.25% and 0.50% after keeping it near zero for seven years. The move, which had been well telegraphed by the Fed for months, reflected confidence in the U.S. economy’s ability to stay healthy with less central-bank support. The Fed also made clear that future interest-rate increases will be gradual.

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

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

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

Sincerely,

Karla M. Rabusch

President

Wells Fargo Funds

Experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future.

For further information about your Fund, contact your investment professional, visit our website at wellsfargofunds.com, or call us directly at 1-800-260-5969. We are available 24 hours a day, 7 days a week.

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

Notice to shareholders

At a meeting held August 11-12, 2015, the Board of Trustees of the Fund approved a change in the name of the Fund whereby the word “Advantage” was removed from its name, effective December 15, 2015.

Notice to shareholders

At a meeting held on November 17-18, 2015, the Board of Trustees of Wells Fargo Variable Trust unanimously approved the liquidation of the Fund. The Fund was closed to new insurance companies effective November 19, 2015 and will be closed to new direct investors and additional investments from existing shareholders effective at the close of business on April 27, 2016. The liquidation of the Fund is expected to occur after close of business on or about April 29, 2016. Shareholders of the Fund on the date of liquidation will receive a distribution of their account proceeds, including any accrued dividends, in complete redemption of their shares.

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6 Wells Fargo VT Small Cap Value Fund Performance highlights (unaudited)

Investment objective

The Fund seeks long-term capital appreciation.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Erik C. Astheimer

Charles I. Rinaldi

Michael Schneider, CFA^®

Average annual total returns (%) as of December 31, 2015¹

									Expense ratios2 (%)
	Inception date	1 year			5 year		10 year		Gross		Net3
Class 1	7-16-2010		(10.34	)		2.78		3.23		1.10		0.90
Class 2	10-10-1997		(10.63	)		2.52		3.09		1.35		1.15
Russell 2000® Value Index4	–		(7.47	)		7.67		5.57		–		–

Figures quoted represent past performance, which is no guarantee of future results. 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 and assumes the reinvestment of dividends and capital gains. Current month-end performance is available by calling 1-800-260-5969. Performance figures of the Fund do not reflect fees charged pursuant to the terms of variable life insurance policies and variable annuity contracts. If fees had been reflected, performance would have been lower.

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

Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Smaller-company stocks tend to be more volatile and less liquid than those of larger companies. Consult the Fund’s prospectus for additional information on these and other risks.

Please 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.

Please see footnotes on page 7.

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

Growth of $10,000 investment as of December 31, 2015⁵

¹  Historical performance shown for Class 1 shares prior to their 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.

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

³  The manager has contractually committed through April 30, 2016, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver at 0.89% for Class 1 and 1.14% for Class 2. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the cap. Without this cap, the Fund’s returns would have been lower.

⁴  The Russell 2000^® Value Index measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values. You cannot invest directly in an index.

⁵  The chart compares the performance of Class 2 shares for the most recent ten years with the Russell 2000^® Value Index. The chart assumes a hypothetical $10,000 investment and reflects all operating expenses of the Fund. Performance figures of the Fund do not reflect fees charged pursuant to the terms of variable life insurance policies and variable annuity contracts.

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

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

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

MANAGER’S DISCUSSION

Fund highlights

n The Fund underperformed its benchmark, the Russell 2000^® Value Index, for the 12-month period that ended December 31, 2015.

n Weak performance from energy and our underweight to financials were primary detractors.

n Strong stock selection in consumer discretionary helped offset areas of weakness.

Small-cap stocks struggled in 2015, unable to overcome a number of headwinds, which included a slowdown in China; falling commodity prices, particularly oil; and a strong U.S. dollar. In addition, the market had to adjust to the first increase in the federal funds rate since 2006. The price of gold fell to a new multiyear low, though several of the Fund’s gold-mining stocks were up for the year. After many years of strong performance, stocks were due for a pause, in our view.

Ten largest holdings (%) as of December 31, 20156
Randgold Resources Limited ADR	6.37
InterOil Corporation	5.40
Cavco Industries Incorporated	4.62
Cray Incorporated	4.37
Delta Air Lines Incorporated	3.12
Argo Group International Holdings Limited	2.85
OSI Systems Incorporated	2.83
Coherent Incorporated	2.61
Cross Country Healthcare Incorporated	2.37
Cincinnati Bell Incorporated	2.36

The Fund’s overweight to energy stocks was the most significant detractor from performance for the period. While we reduced our energy position during the year, our company-specific holdings were not immune to the continued fall in oil prices. We believe this weakness was caused by the persistent oversupply of oil in the market, pushing prices to their lowest levels in over a decade. The price decline led many producers to curtail spending, reducing activity and pressuring margins at energy service and exploration and production companies. Longer-term, we expect oil prices to recover from current levels as oil producers adjust their production levels; however, we believe stock selection will most likely determine investment success going forward. We remain confident in the energy companies held by the Fund.

Our largest energy holding, InterOil Corporation, declined 36% during the year after strong relative performance in 2014. Even though InterOil is not directly tied to oil, the weak sector sentiment negatively affected the stock, as did selling by a large institutional holder who held 20% of shares. These are nonfundamental reasons for the stock’s weakness. The company’s transaction with Total S.A. regarding resources at the Elk/Antelope fields remain on track and is expected to close by mid-2016. The deal will further de-risk the company and allow it to advance its drilling program on multiple fields, work that’s already well underway. Unlike many energy peers, the company has a strong balance sheet with a net cash position and access to an undrawn credit revolver.

The Fund’s underweight to financials hurt performance in 2015. Although the Fund’s holdings slightly outperformed the sector’s contribution to the Russell 2000^® Value Index, the financials sector was among the best-performing sectors in 2015. Being underweight one of the better-performing sectors hurt the Fund’s performance relative to the index. Over the past year, the Fund’s weighting in banks has increased, as we expected these companies to benefit from increased interest rates and industry consolidation. The Fund does not have much exposure to real estate investment trusts, which represent a large subsector within the financials sector, because we think valuations in that sector are not attractive.

Please see footnotes on page 7.

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

Sector distribution as of December 31, 2015⁷

Strong stock selection in the consumer discretionary sector helped Fund performance in 2015. Cavco Industries, Incorporated, had a solid year. The producer of manufactured homes posted strong earnings results as that industry continues to recover. Recent acquisitions also have aided results. Century Casinos Incorporated, delivered a return in excess of 50%. Performance was driven by a successful new property that opened in Canada, much higher margins at the company’s operations in Poland, and a generally more favorable backdrop for regional gaming companies due to an improving economy and lower gas prices that left more money in the pockets of consumers to spend at casinos.

Even though we see further uncertainty ahead, we remain focused on companies whose businesses are likely to emerge as long-term winners.

Looking to 2016, there doesn’t appear to be the same level of enthusiasm for stocks as in recent years. We believe the market is facing significant headwinds that include slowing economic growth, the increase of interest rates in the U.S., and an uncertain geopolitical environment. Given these concerns, we believe there is reason to be cautious near-term about corporate profit margins that have thrived over the past several years.

We remain vigilant about risks and believe our exposure to gold miners and emphasis on diversification may prove critical in turbulent markets. What we haven’t done is abandon our company-specific approach. We believe the Fund is well positioned to meet the various challenges that may lie ahead.

Please see footnotes on page 7.

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

As a shareholder of the Fund, you incur ongoing costs, including management fees, distribution (12b-1) 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, 2015 to December 31, 2015.

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 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 separate account charges assessed by participating insurance companies were included, your costs would have been higher.

	Beginning account value 7-1-2015		Ending account value 12-31-2015		Expenses paid during the period¹		Net annualized expense ratio
Class 1
Actual	$	1,000.00	$	914.60	$	4.29		0.89	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.72	$	4.53		0.89	%
Class 2
Actual	$	1,000.00	$	913.33	$	5.50		1.14	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.46	$	5.80		1.14	%

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

Portfolio of investments—December 31, 2015 Wells Fargo VT Small Cap Value Fund 11

Security name	Shares		Value
Common Stocks: 92.40%
Consumer Discretionary: 16.62%
Auto Components: 1.82%
Fox Factory Holding Corporation †		20,900	$	345,477
Gentex Corporation		17,800		284,978
				630,455
Hotels, Restaurants & Leisure: 6.14%
Bloomin’ Brands Incorporated		9,500		160,455
Century Casinos Incorporated †		55,200		429,456
Denny’s Corporation †		57,400		564,242
Peak Resorts Incorporated		20,200		121,402
Scientific Games Corporation Class A †		33,800		303,186
The Wendy’s Company		51,000		549,270
				2,128,011
Household Durables: 7.61%
Cavco Industries Incorporated †		19,200		1,599,552
Harman International Industries Incorporated		2,000		188,420
KB Home Incorporated		20,700		255,231
Skyline Corporation †		23,300		83,414
Taylor Morrison Home Corporation Class A †		13,200		211,200
The New Home Company Incorporated †		23,100		299,376
				2,637,193
Media: 0.33%
MSG Networks Incorporated Class A		5,600		116,480
Multiline Retail: 0.33%
Fred’s Incorporated Class A		6,924		113,346
Specialty Retail: 0.39%
Vitamin Shoppe Incorporated †		4,100		134,070
Energy: 7.72%
Energy Equipment & Services: 1.38%
Glori Energy Incorporated †		13,800		4,899
ION Geophysical Corporation †		89,500		45,027
Key Energy Services Incorporated †		7,800		3,760
Newpark Resources Incorporated †		40,700		214,896
Parker Drilling Company †		42,600		77,532
PHI Incorporated (non-voting) †		7,400		121,434
Willbros Group Incorporated †		4,200		11,298
				478,846
Oil, Gas & Consumable Fuels: 6.34%
InterOil Corporation †		59,600		1,872,632
Range Resources Corporation		5,700		140,277
Sanchez Energy Corporation †		17,500		75,425
Trilogy Energy Corporation †		39,600		106,920
				2,195,254

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

12 Wells Fargo VT Small Cap Value Fund Portfolio of investments—December 31, 2015

Security name	Shares		Value
Financials: 20.08%
Banks: 10.11%
Ameris Bancorp		10,200	$	346,698
BBCN Bancorp Incorporated		19,900		342,678
CenterState Banks Incorporated		28,700		449,155
First Horizon National Corporation		33,200		482,064
Hanmi Financial Corporation		2,500		59,300
Hilltop Holdings Incorporated †		15,600		299,832
IBERIABANK Corporation		8,950		492,877
Park Sterling Corporation		30,500		223,260
Sterling BanCorp		6,500		105,430
The Bancorp Incorporated †		48,000		305,760
Valley National Bancorp		10,800		106,380
Wilshire Bancorp Incorporated		25,100		289,905
				3,503,339
Capital Markets: 0.42%
Medley Management Incorporated Class A		25,500		145,095
Consumer Finance: 0.28%
Enova International Incorporated †		14,800		97,828
Insurance: 5.28%
Argo Group International Holdings Limited		16,500		987,360
James River Group Holdings Limited		4,400		147,576
National General Holdings Corporation		16,300		356,318
OneBeacon Insurance Group Limited Class A		27,300		338,793
				1,830,047
REITs: 3.31%
Potlatch Corporation		9,100		275,184
Redwood Trust Incorporated		43,900		579,480
UMH Properties Incorporated		28,900		292,468
				1,147,132
Thrifts & Mortgage Finance: 0.68%
Northwest Bancshares Incorporated		17,500		234,325
Health Care: 7.78%
Health Care Equipment & Supplies: 2.67%
Cerus Corporation †		16,500		104,280
Hologic Incorporated †		7,500		290,175
OraSure Technologies Incorporated †		82,400		530,656
				925,111
Health Care Providers & Services: 3.71%
Air Methods Corporation †		5,550		232,711
Cross Country Healthcare Incorporated †		50,200		822,778
Healthways Incorporated †		17,900		230,373
				1,285,862

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

Portfolio of investments—December 31, 2015 Wells Fargo VT Small Cap Value Fund 13

Security name	Shares		Value
Health Care Technology: 0.85%
Allscripts Healthcare Solutions Incorporated †		19,100	$	293,758
Life Sciences Tools & Services: 0.42%
PAREXEL International Corporation †		2,121		144,483
Pharmaceuticals: 0.13%
Prestige Brands Holdings Incorporated †		900		46,332
Industrials: 11.25%
Airlines: 6.31%
American Airlines Group Incorporated		7,850		332,447
Delta Air Lines Incorporated		21,300		1,079,697
LATAM Airlines Group SP ADR †		24,900		134,211
United Continental Holdings Incorporated †		11,200		641,760
				2,188,115
Commercial Services & Supplies: 2.11%
ABM Industries Incorporated		200		5,694
ACCO Brands Corporation †		74,400		530,472
Healthcare Services Group Incorporated		5,600		195,272
				731,438
Construction & Engineering: 0.71%
Tutor Perini Corporation †		14,700		246,078
Machinery: 0.55%
Actuant Corporation Class A		5,400		129,384
Mueller Water Products Incorporated		7,300		62,780
				192,164
Professional Services: 0.57%
Hill International Incorporated †		50,800		197,104
Road & Rail: 0.23%
Covenant Transport Incorporated Class A †		4,200		79,338
Trading Companies & Distributors: 0.77%
Applied Industrial Technologies Incorporated		6,550		265,210
Information Technology: 14.24%
Communications Equipment: 0.97%
Harmonic Incorporated †		33,300		135,531
Ruckus Wireless Incorporated †		18,700		200,277
				335,808
Electronic Equipment, Instruments & Components: 6.90%
Checkpoint Systems Incorporated		31,800		199,386
Cognex Corporation		9,100		307,307
Coherent Incorporated †		13,900		905,029
OSI Systems Incorporated †		11,050		979,693
				2,391,415

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

14 Wells Fargo VT Small Cap Value Fund Portfolio of investments—December 31, 2015

Security name	Shares		Value
IT Services: 0.40%
TeleTech Holdings Incorporated		4,900	$	136,759
Semiconductors & Semiconductor Equipment: 0.51%
Kulicke & Soffa Industries Incorporated †		15,100		176,217
Software: 0.23%
Synchronoss Technologies Incorporated †		2,250		79,268
Technology Hardware, Storage & Peripherals: 5.23%
Cray Incorporated †		46,700		1,515,415
Diebold Incorporated		5,700		171,513
Quantum Corporation †		136,400		126,852
				1,813,780
Materials: 12.35%
Chemicals: 0.24%
Calgon Carbon Corporation		4,900		84,525
Containers & Packaging: 0.30%
Intertape Polymer Group Incorporated		7,700		103,950
Metals & Mining: 11.17%
Agnico-Eagle Mines Limited		11,200		294,336
Carpenter Technology Corporation		5,300		160,431
NovaGold Resources Incorporated †		36,900		155,349
Randgold Resources Limited ADR		35,650		2,207,804
Royal Gold Incorporated		6,400		233,408
Sandstorm Gold Limited †		48,600		127,818
Silver Standard Resources Incorporated †		39,200		203,056
Steel Dynamics Incorporated		21,300		380,631
Webco Industries Incorporated †(a)(i)		2,450		107,800
				3,870,633
Paper & Forest Products: 0.64%
Deltic Timber Corporation		3,200		188,384
Wausau Paper Corporation		3,300		33,759
				222,143
Telecommunication Services: 2.36%
Diversified Telecommunication Services: 2.36%
Cincinnati Bell Incorporated †		227,400		818,640
Total Common Stocks (Cost $32,591,868)				32,019,552
Exchange-Traded Funds: 2.67%
iShares Russell 2000 Value Index ETF		3,760		345,958
Market Vectors Gold Miners ETF		16,815		230,702
Market Vectors Junior Gold Miners ETF		5,235		100,564
SPDR S&P Regional Banking ETF		5,947		249,298
Total Exchange-Traded Funds (Cost $1,280,978)				926,522

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

Portfolio of investments—December 31, 2015 Wells Fargo VT Small Cap Value Fund 15

Security name	Yield			Shares		Value
Short-Term Investments: 5.02%
Investment Companies: 5.02%
Wells Fargo Cash Investment Money Market Fund, Select Class (l)(u)		0.33	%		1,740,133	$	1,740,133
Total Short-Term Investments (Cost $1,740,133)							1,740,133

Total investments in securities (Cost $35,612,979) *	100.09	%		34,686,207
Other assets and liabilities, net	(0.09	)		(31,671	)
Total net assets	100.00	%	$	34,654,536

† Non-income-earning security

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

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

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

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

* Cost for federal income tax purposes is $36,329,318 and unrealized gains (losses) consists of:

Gross unrealized gains	$	5,885,712
Gross unrealized losses		(7,528,823	)
Net unrealized losses	$	(1,643,111	)

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

16 Wells Fargo VT Small Cap Value Fund Statement of assets and liabilities—December 31, 2015

Assets
Investments
In unaffiliated securities, at value (cost $33,872,846)	$	32,946,074
In affiliated securities, at value (cost $1,740,133)		1,740,133
Total investments, at value (cost $35,612,979)		34,686,207
Receivable for investments sold		122,765
Receivable for Fund shares sold		48
Receivable for dividends		15,215
Prepaid expenses and other assets		1,289
Total assets		34,825,524
Liabilities
Payable for investments purchased		82,737
Payable for Fund shares redeemed		12,450
Management fee payable		17,312
Distribution fee payable		2,514
Administration fees payable		2,648
Shareholder report expenses payable		13,824
Professional fees payable		32,408
Accrued expenses and other liabilities		7,095
Total liabilities		170,988
Total net assets	$	34,654,536
NET ASSETS CONSIST OF
Paid-in capital	$	37,067,552
Undistributed net investment income		17,077
Accumulated net realized losses on investments		(1,503,321	)
Net unrealized losses on investments		(926,772	)
Total net assets	$	34,654,536
COMPUTATION OF NET ASSET VALUE PER SHARE
Net assets – Class 1	$	24,158,713
Shares outstanding – Class 11		2,431,232
Net asset value per share – Class 1		$9.94
Net assets – Class 2	$	10,495,823
Shares outstanding – Class 21		1,056,193
Net asset value per share – Class 2		$9.94

¹  The Fund has an unlimited number of authorized shares.

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

Statement of operations—year ended December 31, 2015 Wells Fargo VT Small Cap Value Fund 17

Investment income
Dividends (net of foreign withholding taxes of $1,012)	$	409,301
Income from affiliated securities		3,955
Total investment income		413,256
Expenses
Management fee		316,710
Administration fees
Class 1		22,125
Class 2		9,546
Distribution fee
Class 2		29,833
Custody and accounting fees		16,744
Professional fees		42,617
Shareholder report expenses		22,697
Trustees’ fees and expenses		20,548
Other fees and expenses		10,032
Total expenses		490,852
Less: Fee waivers and/or expense reimbursements		(108,679	)
Net expenses		382,173
Net investment income		31,083
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on investments		2,506,137
Net change in unrealized gains (losses) on investments		(6,849,056	)
Net realized and unrealized gains (losses) on investments		(4,342,919	)
Net decrease in net assets resulting from operations	$	(4,311,836	)

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

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

	Year ended December 31, 2015						Year ended December 31, 2014
Operations
Net investment income				$	31,083					$	384,531
Net realized gains on investments					2,506,137						4,649,149
Net change in unrealized gains (losses) on investments					(6,849,056	)					(2,514,959	)
Net increase (decrease) in net assets resulting from operations					(4,311,836	)					2,518,721
Distributions to shareholders from
Net investment income
Class 1					(155,003	)					(214,385	)
Class 2					(28,583	)					(53,163	)
Total distributions to shareholders					(183,586	)					(267,548	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class 1		101,624			1,050,786			145,789			1,586,802
Class 2		98,524			1,026,341			190,581			2,169,735
					2,077,127						3,756,537
Reinvestment of distributions
Class 1		14,748			155,003			18,168			214,385
Class 2		2,714			28,583			4,505			53,163
					183,586						267,548
Payment for shares redeemed
Class 1		(491,252	)		(5,186,683	)		(707,033	)		(8,020,383	)
Class 2		(268,963	)		(2,861,281	)		(355,425	)		(4,044,288	)
					(8,047,964	)					(12,064,671	)
Net decrease in net assets resulting from capital share transactions					(5,787,251	)					(8,040,586	)
Total decrease in net assets					(10,282,673	)					(5,789,413	)
Net assets
Beginning of period					44,937,209						50,726,622
End of period				$	34,654,536					$	44,937,209
Undistributed net investment income				$	17,077					$	175,502

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

Financial highlights Wells Fargo VT Small Cap Value Fund 19

(For a share outstanding throughout each period)

	Year ended December 31
CLASS 1	2015			2014			2013			2012			2011
Net asset value, beginning of period		$11.15			$10.72			$9.41			$8.33			$9.04
Net investment income		0.02			0.11			0.10			0.12			0.11
Net realized and unrealized gains (losses) on investments		(1.17	)		0.39			1.31			1.06			(0.74	)
Total from investment operations		(1.15	)		0.50			1.41			1.18			(0.63	)
Distributions to shareholders from
Net investment income		(0.06	)		(0.07	)		(0.10	)		(0.10	)		(0.08	)
Net asset value, end of period		$9.94			$11.15			$10.72			$9.41			$8.33
Total return		(10.34	)%		4.63	%		15.03	%		14.33	%		(7.06	)%
Ratios to average net assets (annualized)
Gross expenses		1.16	%		1.09	%		1.10	%		1.09	%		1.14	%
Net expenses		0.89	%		0.89	%		0.89	%		0.89	%		0.89	%
Net investment income		0.15	%		0.85	%		0.81	%		1.10	%		1.07	%
Supplemental data
Portfolio turnover rate		35	%		27	%		18	%		17	%		16	%
Net assets, end of period (000s omitted)		$24,159			$31,296			$35,900			$38,113			$43,155

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

20 Wells Fargo VT Small Cap Value Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended December 31
CLASS 2	2015			2014			2013			2012			2011
Net asset value, beginning of period		$11.15			$10.71			$9.40			$8.32			$9.03
Net investment income (loss)		(0.01	)		0.07			0.07			0.09			0.09
Net realized and unrealized gains (losses) on investments		(1.17	)		0.41			1.31			1.07			(0.74	)
Total from investment operations		(1.18	)		0.48			1.38			1.16			(0.65	)
Distributions to shareholders from
Net investment income		(0.03	)		(0.04	)		(0.07	)		(0.08	)		(0.06	)
Net asset value, end of period		$9.94			$11.15			$10.71			$9.40			$8.32
Total return		(10.63	)%		4.46	%		14.75	%		14.00	%		(7.26	)%
Ratios to average net assets (annualized)
Gross expenses		1.41	%		1.34	%		1.35	%		1.34	%		1.39	%
Net expenses		1.14	%		1.14	%		1.14	%		1.14	%		1.14	%
Net investment income (loss)		(0.09	)%		0.58	%		0.55	%		0.90	%		0.82	%
Supplemental data
Portfolio turnover rate		35	%		27	%		18	%		17	%		16	%
Net assets, end of period (000s omitted)		$10,496			$13,641			$14,826			$16,245			$14,681

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

Notes to financial statements Wells Fargo VT Small Cap Value Fund 21

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”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Wells Fargo VT Small Cap Value Fund (the “Fund”) which is a diversified series of the Trust.

2. SIGNIFICANT ACCOUNTING POLICIES

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

Securities valuation

All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time).

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

Equity securities that are not listed on a foreign or domestic exchange or market, but have a public trading market, are valued at the quoted bid price from an independent broker-dealer that the Management Valuation Team of Wells Fargo Funds Management, LLC (“Funds Management”) has determined is an acceptable source.

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

Investments which are not valued using any of the methods discussed above are valued at their fair value, as determined in good faith by the Board of Trustees of the Fund. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Management Valuation Team. The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Management Valuation Team which may include items for ratification.

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

Security transactions and income recognition

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

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

Distributions to shareholders

Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-dividend date. Such distributions are determined in conformity with federal income tax regulations, which may differ in amount or character from net investment income and realized gains recognized for purposes of U.S. generally accepted accounting principles.

22 Wells Fargo VT Small Cap Value Fund Notes to financial statements

Federal and other taxes

The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.

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

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The primary permanent differences causing such reclassifications are due to dividends from certain securities and passive foreign investment companies. At December 31, 2015, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Undistributed net investment income	Accumulated net realized losses on investments
$(5,922)	$5,922

As of December 31, 2015, the Fund had capital loss carryforwards available to offset future net realized capital gains in the amount of $833,083 expiring in 2017.

Class allocations

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

3. FAIR VALUATION MEASUREMENTS

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

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

n Level 2 – other significant observable inputs (including quoted prices for similar

n securities, interest rates, prepayment speeds, credit risk, use of amortized cost, etc.)

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

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

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

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of December 31, 2015:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common Stocks
Consumer discretionary	$	5,759,555	$	0	$	0	$	5,759,555
Energy		2,567,180		106,920		0		2,674,100
Financials		6,957,766		0		0		6,957,766
Health care		2,695,546		0		0		2,695,546
Industrials		3,899,447		0		0		3,899,447
Information technology		4,933,247		0		0		4,933,247
Materials		4,069,501		211,750		0		4,281,251
Telecommunication services		818,640		0		0		818,640
Exchange-traded funds		926,522		0		0		926,522
Short-term investments
Investment companies		1,740,133		0		0		1,740,133
Total assets	$	34,367,537	$	318,670	$	0	$	34,686,207

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At December 31, 2015, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

4. TRANSACTIONS WITH AFFILIATES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the applicable subadviser, providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.80% and declining to 0.63% as the average daily net assets of the Fund increase.

Prior to July 1, 2015, Funds Management provided advisory services pursuant to an investment advisory agreement and was entitled to receive an annual fee which started at 0.75% and declined to 0.60% as the average daily net assets of the Fund increased. In addition, fund-level administrative services were provided by Funds Management under a separate administration agreement at an annual fee which started at 0.05% and declined to 0.03% as the average daily net assets of the Fund increased. For financial statement purposes, the advisory fee and fund-level administration fee for the year ended December 31, 2015 have been included in management fee on the Statement of Operations.

For the year ended December 31, 2015, the management fee was equivalent to an annual rate of 0.80% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. Wells Capital Management Incorporated, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.55% and declining to 0.40% as the average daily net assets of the Fund increase. .

Administration fees

Under a class-level administration agreement, Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under the class-level administration agreement, Funds Management receives a class level administration fee of 0.08% which is calculated based on the average daily net assets of each class.

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

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through April 30, 2016 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.89% for Class 1 shares and 1.14% for Class 2 shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

Distribution fee

The Trust has adopted a distribution plan for Class 2 shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class 2 shares and paid to Wells Fargo Funds Distributor, LLC, the principal underwriter, at an annual rate of 0.25% of the average daily net assets of Class 2 shares.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended December 31, 2015 were $12,639,402 and $19,825,819, respectively.

6. BANK BORROWINGS

The Trust and Wells Fargo Funds Trust (excluding the money market funds and certain other funds) are parties to a $200,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.20% of the unused balance is allocated to each participating fund. Prior to September 1, 2015, the revolving credit agreement amount was $150,000,000 and the annual commitment fee was equal to 0.10% of the unused balance which was allocated to each participating fund. For the year ended December 31, 2015, the Fund paid $87 in commitment fees.

For the year ended December 31, 2015, there were no borrowings by the Fund under the agreement.

7. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid was $183,586 and $267,548 of ordinary income for the years ended December 31, 2015 and December 31, 2014, respectively.

As of December 31, 2015, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Unrealized losses	Capital loss carryforward
$64,525	$(1,643,111)	$(833,083)

8. INDEMNIFICATION

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

9. FUND LIQUIDATION

At a regular meeting of the Board of Trustees held on November 17-18, 2015, the Trustees unanimously approved the liquidation of the Fund. The Fund was closed to new insurance companies effective November 19, 2015 and will be closed to new direct investors and additional investments from existing shareholders effective at the close of business on April 27, 2016. The liquidation of the Fund is expected to occur after the close of business on or about April 29, 2016. Shareholders of the Fund on the date of liquidation will receive a distribution of their account proceeds, including any accrued dividends, in complete redemption of their shares.

Report of independent registered public accounting firm Wells Fargo VT Small Cap Value Fund 25

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 VT Small Cap Value Fund (formerly known as Wells Fargo Advantage VT Small Cap Value Fund) (the “Fund”), one of the funds constituting the Wells Fargo Variable Trust, as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2015, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo VT Small Cap Value Fund as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

As described in Note 9 to the financial statements, the Board of Trustees of the Fund unanimously approved the liquidation of the Fund. Shareholders of the Fund on the date of liquidation will receive a distribution of their account proceeds, including any accrued dividends, in complete redemption of their shares.

Boston, Massachusetts

February 25, 2016

26 Wells Fargo VT Small Cap Value Fund Other information (unaudited)

TAX INFORMATION

For corporate shareholders, pursuant to Section 854 of the Internal Revenue Code, 67.74% of ordinary income dividends qualify for the corporate dividends-received deduction for the fiscal year ended December 31, 2015.

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-260-5969, visiting our website at wellsfargofunds.com, or visiting the SEC website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website at wellsfargofunds.com or by visiting the SEC website at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

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

Other information (unaudited) Wells Fargo VT Small Cap Value Fund 27

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 144 mutual funds comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information². The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.

Independent Trustees

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
William R. Ebsworth (Born 1957)	Trustee, since 2015	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief financial officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he lead a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Mr. Ebsworth is a CFA ® charterholder and an Adjunct Lecturer, Finance, at Babson College.	Asset Allocation Trust
Jane A. Freeman (Born 1953)	Trustee, since 2015	Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair of the Audit Committee. Ms. Freeman is Chair of Taproot Foundation (non-profit organization) (non-profit organization), a Board Member of Ruth Bancroft Garden (non-profit organization) and an inactive chartered financial analyst.	Asset Allocation Trust
Peter G. Gordon (Born 1942)	Trustee, since 1998; Chairman, since 2005	Co-Founder, Retired Chairman, President and CEO of Crystal Geyser Water Company. Trustee Emeritus, Colby College.	Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. Chairman of the Board of CIGNA Corporation since 2009, and Director since 2005. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (charter school). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	CIGNA Corporation; Asset Allocation Trust
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, since 2008	Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant.	Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of the Corporate Governance Research Initiative and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust

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

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust
Timothy J. Penny (Born 1951)	Trustee, since 1996	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
Michael S. Scofield (Born 1943)	Trustee, since 2010	Served on the Investment Company Institute’s Board of Governors and Executive Committee from 2008-2011 as well the Governing Council of the Independent Directors Council from 2006-2011 and the Independent Directors Council Executive Committee from 2008-2011. Chairman of the IDC from 2008-2010. Institutional Investor (Fund Directions) Trustee of Year in 2007. Trustee of the Evergreen Funds complex (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield.	Asset Allocation Trust
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. Director and Vice Chair of The Tree Trust (non-profit corporation). Director of the American Chestnut Foundation (non-profit corporation).	Asset Allocation Trust

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

** Donald Willeke retired as a Trustee effective December 31, 2015.

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
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.
Jeremy DePalma1 (Born 1974)	Treasurer, since 2012; Assistant Treasurer, since 2009	Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010 and head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.
C. David Messman (Born 1960)	Secretary, since 2000; Chief Legal Officer, since 2003	Senior Vice President and Secretary of Wells Fargo Funds Management, LLC since 2001. Assistant General Counsel of Wells Fargo Bank, N.A. since 2013 and Vice President and Managing Counsel of Wells Fargo Bank, N.A. from 1996 to 2013.
Debra Ann Early (Born 1964)	Chief Compliance Officer, since 2007	Executive Vice President of Wells Fargo Funds Management, LLC since 2014, Senior Vice President and Chief Compliance Officer from 2007 to 2014.
David Berardi (Born 1975)	Assistant Treasurer, since 2009	Vice President of Wells Fargo Funds Management, LLC since 2009. Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.

¹  Jeremy DePalma acts as Treasurer of 72 funds and Assistant Treasurer of 72 funds in the Fund Complex.

²  The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling
1-800-260-5969 or by visiting the website at wellsfargofunds.com.

List of abbreviations Wells Fargo VT Small Cap Value Fund 29

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —   Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

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For more information

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

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.com

Individual investors: 1-800-222-8222

Retail investment professionals: 1-888-877-9275

Institutional investment professionals: 1-866-765-0778

This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call
1-800-260-5969 or visit the Fund’s website at wellsfargofunds.com. Read the prospectus carefully before you invest or send money.

Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the funds. The funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

© 2015 Wells Fargo Funds Management, LLC. All rights reserved.

239828 02-16 AVT8/AR154 12-15

Annual Report

December 31, 2015

Wells Fargo VT Total Return Bond Fund

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Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	8
Portfolio of investments	9
Financial statements
Statement of assets and liabilities	26
Statement of operations	27
Statement of changes in net assets	28
Financial highlights	29
Notes to financial statements	30
Report of independent registered public accounting firm	35
Other information	36
List of abbreviations	39

The views expressed and any forward-looking statements are as of December 31, 2015, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Funds Management, LLC. Discussions of individual securities, or the markets generally, or any Wells Fargo Fund are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements. The views expressed are subject to change at any time in response to changing circumstances in the market. Wells Fargo Funds Management, LLC and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

2 Wells Fargo VT Total Return Bond Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Funds

Major central banks continued to inject liquidity into global banks and markets through various accommodative monetary policies, including quantitative easing.

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo VT Total Return Bond Fund for the 12-month period that ended December 31, 2015. The period was marked by low interest rates, sustained weakness in commodity prices, and moderate U.S. economic growth. Investment-grade bonds, as measured by the Barclays U.S. Aggregate Bond Index,¹ returned 0.55% during the period.

Major central banks continued to provide stimulus.

Major central banks continued to inject liquidity into global banks and markets through various accommodative monetary policies, including quantitative easing. In the U.S., the Federal Reserve (Fed) raised the target federal funds rate to between 0.25% and 0.50% in December but emphasized that any action would be slow and cautious. Meanwhile, European markets continued to benefit from the European Central Bank’s (ECB’s) willingness to maintain low interest rates. The ECB held its key rate at a historical low of 0.05%. In addition to its targeted longer-term refinancing operations that are designed to increase bank lending, the ECB expanded its quantitative easing program to include the buying of eurozone government bonds. In Japan, the Bank of Japan maintained an aggressive monetary program aimed at combating deflation.

Global economic growth was below trend, and oil prices plummeted.

Developed countries experienced subtrend growth and subdued inflation, with commodity prices trending even lower over the course of the year. In the U.S., however, economic growth advanced during the reporting period, the unemployment rate ticked lower to 5% as of December 2015, and inflation remained below the Fed’s longer-run objective of a 2% pace. The Consumer Price Index gradually trended higher to 0.4% on a year-over-year percent-change basis. The period was also marked by dramatically lower oil prices, which fell to less than $37 per barrel at the end of December 2015. While lower oil prices benefited consumers of oil products, the lower prices pressured companies within the energy sector.

Higher-rated credits were top performers, while high yield was challenged.

Ten-year U.S. Treasury yields ranged between 1.68% and 2.50% during 2015, ending with a yield of 2.34%. Treasuries benefited both from their safe-haven status as well as their relative attractiveness to global investors considering that other developed-country government bond yields were significantly lower. Within the Barclays U.S. Aggregate Bond Index, the mortgage-backed securities sector did the best among the main investment-grade sectors; commercial mortgage-backed securities and asset-backed securities also had positive returns. Looking at the credit categories, AAA-rated bonds outperformed BBB-rated bonds. Meanwhile, high-yield bonds returned -4.47%, as measured by the Barclays U.S. Corporate High Yield Bond Index,² dragged down by the energy and mining-related sectors that were negatively affected by lower oil prices. Investor trepidation about weak global growth caused both investment-grade spreads and high-yield spreads to widen over the reporting period.

Since the end of the financial crisis, structural changes in the fixed-income markets have reduced trading liquidity (the degree to which assets can be bought or sold without affecting the price). New regulations and capital requirements have

¹  The Barclays U.S. Aggregate Bond Index is composed of the Barclays U.S. Government/Credit Index and the Barclays U.S. Mortgage-Backed Securities Index, and includes Treasury issues, agency issues, corporate bond issues, and mortgage-backed securities. You cannot invest directly in an index.

²  The Barclays U.S. Corporate High Yield Bond Index is an unmanaged, U.S. dollar–denominated, nonconvertible, non-investment-grade debt index. The index consists of domestic and corporate bonds rated Ba and below with a minimum outstanding amount of $150 million. You cannot invest directly in an index.

Letter to shareholders (unaudited) Wells Fargo VT Total Return Bond Fund 3

caused traditional liquidity suppliers (banks and broker/dealers) to be more risk-averse and hold less inventory. Meanwhile, corporate-debt issuance has spiked as companies finance themselves at record-low yields, bond mutual funds hold larger amounts of this new debt supply, trading volumes are lower, and large-size trades are more difficult to execute. However, fixed-income markets appear to have functioned well over the past year with sufficient liquidity and muted volatility.

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

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

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

Sincerely,

Karla M. Rabusch

President

Wells Fargo Funds

Periods of uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future.

Notice to shareholders

At a meeting held August 11-12, 2015, the Board of Trustees of the Fund approved a change in the name of the Fund whereby the word “Advantage” was removed from its name, effective December 15, 2015.

Notice to shareholders

At a meeting held on November 17-18, 2015, the Board of Trustees of Wells Fargo Variable Trust unanimously approved the liquidation of the Fund. The Fund was closed to new insurance companies effective November 19, 2015 and will be closed to new direct investors and additional investments from existing shareholders effective at the close of business on April 27, 2016. The liquidation of the Fund is expected to occur after close of business on or about April 29, 2016. Shareholders of the Fund on the date of liquidation will receive a distribution of their account proceeds, including any accrued dividends, in complete redemption of their shares.

For further information about your Fund, contact your investment professional, visit our website at wellsfargofunds.com, or call us directly at 1-800-260-5969. We are available 24 hours a day, 7 days a week.

4 Wells Fargo VT Total Return Bond Fund Performance highlights (unaudited)

Investment objective

The Fund seeks total return, consisting of income and capital appreciation.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Troy Ludgood

Thomas O’ Connor, CFA^®

Average annual total returns (%) as of December 31, 2015

								Expense ratios1 (%)
	Inception date	1 year		5 year		10 year		Gross		Net2
Class 2	9-20-1999		0.13		3.46		4.84		0.92		0.90
Barclays U.S. Aggregate Bond Index3	–		0.55		3.25		4.51		–		–

Figures quoted represent past performance, which is no guarantee of future results. 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 and assumes the reinvestment of dividends and capital gains. Current month-end performance is available by calling 1-800-260-5969. Performance figures of the Fund do not reflect fees charged pursuant to the terms of variable life insurance policies and variable annuity contracts. If fees had been reflected, performance would have been lower.

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

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

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo VT Total Return Bond Fund 5

Growth of $10,000 investment as of December 31, 2015⁴

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

²  The manager has contractually committed through April 30, 2016, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver at the amount shown above. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the cap. Without this cap, the Fund’s returns would have been lower.

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

⁴  The chart compares the performance of Class 2 shares for the most recent ten years with the Barclays U.S. Aggregate Bond Index. The chart assumes a hypothetical $10,000 investment and reflects all operating expenses of the Fund. Performance figures of the Fund do not reflect fees charged pursuant to the terms of variable life insurance policies and variable annuity contracts.

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

⁶  Amounts are calculated based on the total long-term investments of the Fund. These amounts are subject to change and may have changed since the date specified.

6 Wells Fargo VT Total Return Bond Fund Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

n The Fund underperformed the Barclays U.S. Aggregate Bond Index for the 12-month period that ended December 31, 2015.

n Security selection within the asset-backed securities (ABS) sector was the largest detractor from performance due to positions in Federal Family Education Loan Program (FFELP) student loans.

n Security selection within corporate bonds, specifically issues within banks, technology, and sovereigns, was our largest contributor. Meanwhile, security selection within securitized products was also additive.

n An overweight sector allocation to ABS contributed to performance.

Interest rates modestly increased, the curve flattened, and credit spreads widened, while mortgages outperformed.

The Barclays U.S. Aggregate Bond Index posted a positive total return for the year, with positive returns across commercial mortgage-backed securities (CMBS), ABS, and mortgage-backed securities, while the credit sector had negative total returns. A record $1.3 trillion in new-issue investment-grade corporate debt came to market during the year, driven by a fertile merger and acquisition environment, balance-sheet restructuring, and a rush to lock in attractive financing ahead of a less accommodating U.S. Federal Reserve (Fed). The overwhelming supply and persistent weakness in select subsectors drove the overall credit sector wider throughout much of the year. Given global economic stress, risk assets struggled throughout the summer months as liquidity traded at a premium. The relative liquidity advantage of mortgages helped them outperform.

Positioning was dynamic in 2015, with a general bias toward risk reduction.

Our positioning within the corporate bond sector was dynamic throughout the year as we added attractively priced, large new-issue corporate bonds during the first half of the year. Global economic uncertainty and a reduced appetite for risk within the marketplace led us to reduce our overweight throughout the balance of the year, ending 2015 with a slight underweight to credit. Reductions were mainly in the pipeline, health care, and energy subsectors, while we increased positioning in technology and financial sectors. Our overweight allocations to Fidelity National Information Services; Amazon.com, Incorporated; and Morgan Stanley were examples of contributors. Underweights to Freeport-McMoRan Incorporated and Petrobras also contributed to performance as weakness in commodity prices and oil, in particular, persisted throughout the year.

We increased our mortgage allocations throughout most of the year, moving from a modest underweight at the beginning of 2015 to a modest overweight by the fall. We subsequently reduced that overweight to a slight underweight by year-end after the sector performed well. We were active throughout the year in a variety of prepayment-protected positions in 30-year mortgage pools while reducing positions in prepayment-protected 20-year pools. After reducing our adjustable-rate mortgage position early in the year after strong performance, we added back to that subsector in the second half of 2015 as these shorter-duration assets cheapened relative to fixed-rate mortgages. We reduced our underweight to the Ginnie Mae sector as valuations cheapened midyear, only to reduce those positions again during the fourth quarter due to fears that a mortgage insurance premium reduction could be made available for Federal Housing Administration borrowers, increasing the prepayment incentives for those borrowers.

In structured products, we remained overweight CMBS and ABS yet slightly reduced those overweights throughout the year. We reduced our overweight to credit cards after strong relative performance due to lack of supply, and we modestly increased exposure to student loans, adding to both FFELP floating-rate notes and recent vintage Sallie Mae private student loans. However, at the issuer level, FFELP student loan ABS spreads widened as rating agencies, most notably Moody’s, reevaluated their ratings. Although the collateral behind FFELP bonds remains at least 97% guaranteed by the U.S. government, rating agencies are considering revising ratings to reflect different assumptions around the timing of cash flows. In CMBS, our reductions were primarily in certain 2015 vintage 10-year tranches while adding seven-year amortizing tranches.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo VT Total Return Bond Fund 7

Ten largest holdings (%) as of December 31, 20155
U.S. Treasury Note, 0.75%, 4-15-2018	3.09
U.S. Treasury Note, 1.38%, 9-30-2020	2.59
U.S. Treasury Note, 1.50%, 1-31-2019	2.56
U.S. Treasury Note, 1.25%, 12-15-2018	2.37
U.S. Treasury Note, 2.25%, 11-15-2025	2.28
U.S. Treasury Note, 1.00%, 9-15-2018	1.60
U.S. Treasury Note, 1.75%, 12-31-2020	1.54
U.S. Treasury Bond, 3.13%, 2-15-2043	1.51
GNMA, 3.50%, 1-21-2046	1.45
U.S. Treasury Note, 2.00%, 9-30-2020	1.08

We believe we are well positioned to take advantage of relative-value trading opportunities.

The Fed’s increase to the federal funds rate in December, which was the first increase in nine years, began the process of normalizing U.S. monetary policy. The long and gradual economic recovery in the U.S. and ongoing strength in services-related sectors led to steady job gains and an unemployment rate of 5.0%. The Fed’s summary of economic projections—a view of the most likely paths for the economy and monetary policy—suggests ongoing strength in gross domestic product and inflation and increases in the federal funds rate by up to 100 basis points (bps; 100 bps equals 1.00%) per year over the next few years. Policymakers’ assurances on the gradual path

of increases are designed to mitigate the impact on longer-term rates and assuage fears that an event similar to the 2013-style bond market sell-off, the infamous taper tantrum, will occur.

Challenges remain in the U.S. and global economies that could cause surprises during the first half of 2016. Market participants will be closely watching incoming economic data to calibrate the specific path of monetary policy. International growth has remained a source of downside risk, particularly in China’s rebalancing of its economy and in commodity-driven emerging markets. In Europe, consensus on monetary and fiscal issues appears somewhat in flux in light of dissents at the European Central Bank.

Consistent with our bottom-up security-selection process, we are maintaining a neutral duration. We believe we are well positioned and stand ready to take advantage of relative-value trading opportunities as they arise.

Portfolio allocation as of December 31, 2015⁶

Please see footnotes on page 5.

8 Wells Fargo VT Total Return Bond Fund Fund expenses (unaudited)

As a shareholder of the Fund, you incur ongoing costs, including management fees, distribution (12b-1) 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, 2015 to December 31, 2015.

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 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 separate account charges assessed by participating insurance companies were included, your costs would have been higher.

	Beginning account value 7-1-2015		Ending account value 12-31-2015		Expenses paid during the period¹		Net annualized expense ratio
Class 2
Actual	$	1,000.00	$	1,002.90	$	4.54		0.90	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.67	$	4.58		0.90	%

¹  Expenses paid is equal to the 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, 2015 Wells Fargo VT Total Return Bond Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities: 32.53%
FHLMC ±		2.63	%		12-1-2042	$	98,644	$	99,888
FHLMC ±		2.65			10-1-2045		86,040		87,256
FHLMC ±		2.69			12-1-2045		25,000		25,367
FHLMC ±		2.69			9-1-2045		38,420		39,013
FHLMC ±		2.70			8-1-2045		71,646		72,819
FHLMC ±		2.73			8-1-2045		58,541		59,553
FHLMC ±		2.75			9-1-2045		45,036		45,843
FHLMC ±		2.76			12-1-2045		93,000		94,579
FHLMC ±		2.76			8-1-2044		28,639		29,255
FHLMC ±		2.79			10-1-2045		85,241		86,822
FHLMC ±		2.87			9-1-2045		7,901		8,124
FHLMC ±		2.89			8-1-2044		55,655		57,021
FHLMC ±		2.90			1-1-2044		77,229		79,083
FHLMC		3.00			2-15-2045		582,101		584,338
FHLMC ±		3.00			9-1-2045		34,875		35,751
FHLMC		3.50			12-1-2028		19,650		20,677
FHLMC		3.50			11-1-2029		29,462		30,890
FHLMC		3.50			11-1-2029		202,726		213,076
FHLMC		3.50			4-1-2030		239,170		251,781
FHLMC		3.50			6-1-2030		54,233		57,102
FHLMC		3.50			7-1-2030		68,842		72,485
FHLMC		3.50			7-1-2030		75,516		79,511
FHLMC		3.50			8-1-2030		77,949		82,074
FHLMC		3.50			8-1-2030		136,699		143,114
FHLMC		3.50			10-1-2030		24,672		25,877
FHLMC		3.50			10-1-2030		32,402		34,116
FHLMC		3.50			10-1-2030		24,607		25,877
FHLMC		3.50			10-1-2030		24,639		25,943
FHLMC		3.50			10-1-2030		24,781		26,094
FHLMC		3.50			11-1-2030		24,892		26,109
FHLMC		3.50			11-1-2030		91,616		96,451
FHLMC		3.50			11-1-2030		55,700		58,637
FHLMC		3.50			9-1-2035		25,714		26,810
FHLMC		3.50			9-1-2035		33,696		35,137
FHLMC		3.50			12-1-2035		229,000		238,649
FHLMC		3.50			5-1-2043		184,793		190,391
FHLMC		3.50			12-1-2043		578,148		595,695
FHLMC		3.50			3-1-2045		137,585		142,100
FHLMC		3.50			7-1-2045		24,818		25,588
FHLMC		3.50			8-1-2045		32,682		33,695
FHLMC %%		3.50			1-14-2046		100,000		102,906
FHLMC %%		3.50			2-11-2046		700,000		718,812
FHLMC		4.00			10-1-2029		54,225		58,037
FHLMC		4.00			11-1-2035		24,936		26,620
FHLMC		4.00			11-1-2035		24,934		26,733
FHLMC		4.00			12-1-2035		25,000		26,688
FHLMC		4.00			4-15-2040		22,292		23,759
FHLMC		4.00			8-1-2044		344,727		367,873
FHLMC		4.00			2-1-2045		98,123		104,663
FHLMC		4.00			9-1-2045		123,313		131,347

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

10 Wells Fargo VT Total Return Bond Fund Portfolio of investments—December 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FHLMC		4.00	%		9-1-2045	$	31,848	$	34,041
FHLMC		4.00			10-1-2045		35,853		37,950
FHLMC		4.00			10-1-2045		27,698		29,502
FHLMC		4.00			10-1-2045		24,918		26,449
FHLMC		4.00			10-1-2045		46,478		49,279
FHLMC		4.00			10-1-2045		30,899		32,762
FHLMC		4.00			10-1-2045		42,870		45,822
FHLMC		4.00			10-1-2045		24,918		26,541
FHLMC		4.00			11-1-2045		52,919		56,171
FHLMC		4.00			11-1-2045		39,948		42,355
FHLMC		4.00			12-1-2045		30,979		32,883
FHLMC		4.00			12-1-2045		40,973		43,430
FHLMC		4.00			12-1-2045		34,973		37,018
FHLMC		4.00			12-1-2045		25,000		26,629
FHLMC		4.00			12-1-2045		83,000		88,100
FHLMC		4.50			8-1-2020		327,504		339,357
FHLMC		4.50			6-1-2042		190,181		209,206
FHLMC		5.00			8-1-2039		300,055		335,820
FHLMC		5.00			5-1-2042		18,481		20,738
FHLMC		5.00			9-1-2043		21,606		24,241
FHLMC		5.00			9-1-2043		24,169		27,116
FHLMC		5.00			10-1-2043		22,657		25,420
FHLMC		5.00			7-1-2044		85,268		95,526
FHLMC Series 271 Class 30		3.00			8-15-2042		280,136		274,990
FHLMC Series 300 Class 300		3.00			1-15-2043		323,660		321,291
FHLMC Series 4227 Class AB		3.50			10-15-2037		165,393		172,890
FHLMC Series 4425 Class A		4.00			9-15-2040		173,117		184,056
FHLMC Series 4483 Class PA		2.50			6-15-2045		346,577		350,938
FNMA ¤		0.00			10-9-2019		260,000		240,841
FNMA ±		2.39			1-1-2036		43,068		45,696
FNMA ±		2.52			12-1-2045		4,000		4,044
FNMA ±		2.56			3-1-2045		31,966		32,462
FNMA ±		2.59			9-1-2045		65,079		66,013
FNMA ±		2.60			12-1-2045		22,978		23,244
FNMA ±		2.62			7-1-2045		27,540		27,981
FNMA		2.63			9-6-2024		102,000		103,147
FNMA ±		2.68			10-1-2045		51,750		52,619
FNMA ±		2.70			10-1-2045		68,424		69,621
FNMA ±		2.73			1-1-2045		91,143		93,103
FNMA ±		2.73			1-1-2045		122,914		125,738
FNMA ±		2.74			2-1-2045		105,704		108,169
FNMA ±		2.75			11-1-2045		241,195		245,761
FNMA ±		2.75			11-1-2045		85,818		87,438
FNMA ±		2.76			9-1-2045		144,276		147,131
FNMA ±		2.77			9-1-2045		154,892		157,979
FNMA ±		2.78			7-1-2045		45,782		46,821
FNMA ±		2.79			10-1-2045		103,378		105,468
FNMA ±		2.81			10-1-2045		86,355		88,142
FNMA ±		2.82			5-1-2043		37,989		38,786
FNMA		3.00			10-1-2042		32,063		32,149

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

Portfolio of investments—December 31, 2015 Wells Fargo VT Total Return Bond Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA		3.00	%		10-25-2042	$	461,297	$	462,777
FNMA		3.00			4-1-2043		327,527		328,147
FNMA		3.00			4-1-2043		156,874		157,165
FNMA		3.00			5-1-2043		32,398		32,459
FNMA ±		3.19			10-1-2043		29,924		30,835
FNMA		3.50			12-1-2029		87,850		92,518
FNMA		3.50			1-1-2030		178,515		188,228
FNMA		3.50			2-1-2030		128,662		135,503
FNMA		3.50			4-1-2030		120,447		127,011
FNMA		3.50			7-1-2030		84,386		88,998
FNMA		3.50			8-1-2030		49,566		52,282
FNMA		3.50			9-1-2030		57,598		60,516
FNMA		3.50			9-1-2032		107,042		112,135
FNMA		3.50			6-1-2033		90,000		94,289
FNMA		3.50			6-1-2035		160,320		167,965
FNMA		3.50			9-1-2035		24,790		25,841
FNMA		3.50			10-1-2035		170,478		177,711
FNMA		3.50			11-1-2035		33,795		35,407
FNMA		3.50			1-13-2036		263,000		274,175
FNMA (a)		3.50			1-1-2039		53,000		55,406
FNMA		3.50			10-1-2040		112,326		116,275
FNMA		3.50			11-1-2040		128,085		132,590
FNMA		3.50			9-1-2042		83,804		86,571
FNMA		3.50			12-1-2042		89,474		92,519
FNMA		3.50			6-1-2043		27,684		28,605
FNMA		3.50			6-1-2045		455,549		470,733
FNMA		3.50			8-1-2045		238,715		246,672
FNMA		3.50			10-1-2045		45,679		47,201
FNMA %%		3.50			1-14-2046		100,000		103,140
FNMA		4.00			3-1-2025		7,262		7,759
FNMA		4.00			6-1-2025		91,906		97,909
FNMA		4.00			6-1-2026		33,354		35,549
FNMA		4.00			1-1-2029		196,186		210,510
FNMA		4.00			3-1-2029		70,273		74,855
FNMA		4.00			7-1-2029		552,138		591,788
FNMA		4.00			11-1-2029		110,472		118,096
FNMA		4.00			11-1-2035		24,927		26,777
FNMA		4.00			11-1-2040		42,540		45,226
FNMA		4.00			12-1-2040		116,648		124,013
FNMA		4.00			2-1-2041		173,884		184,871
FNMA		4.00			10-1-2041		36,064		38,343
FNMA		4.00			1-1-2042		123,167		130,947
FNMA		4.00			8-1-2042		89,669		95,442
FNMA		4.00			9-1-2042		235,637		250,804
FNMA		4.00			10-1-2042		107,999		114,955
FNMA		4.00			11-1-2042		36,313		38,650
FNMA		4.00			11-1-2042		117,989		125,598
FNMA		4.00			8-1-2043		84,429		89,736
FNMA		4.00			10-1-2043		52,224		55,506
FNMA		4.00			11-1-2044		142,172		151,305

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

12 Wells Fargo VT Total Return Bond Fund Portfolio of investments—December 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA		4.00	%		11-1-2044	$	90,095	$	95,881
FNMA		4.00			12-1-2044		272,257		290,681
FNMA		4.00			6-1-2045		306,983		326,649
FNMA		4.00			6-1-2045		30,352		32,270
FNMA		4.00			8-1-2045		33,791		36,078
FNMA		4.00			9-1-2045		54,883		58,758
FNMA		4.00			9-1-2045		36,900		39,233
FNMA		4.00			10-1-2045		33,856		35,896
FNMA		4.00			10-1-2045		323,787		344,251
FNMA		4.00			11-1-2045		90,431		96,551
FNMA		4.00			12-1-2045		164,508		175,514
FNMA %%		4.00			1-14-2046		300,000		317,373
FNMA %%		4.00			2-11-2046		200,000		211,191
FNMA ±		4.38			4-1-2040		61,292		64,917
FNMA		4.50			1-1-2020		147,071		153,044
FNMA		4.50			10-1-2033		55,196		59,948
FNMA		4.50			5-1-2034		86,909		95,876
FNMA		4.50			2-1-2044		352,386		386,825
FNMA		4.50			3-1-2044		112,522		123,458
FNMA		4.50			4-1-2044		256,780		281,977
FNMA		4.50			6-1-2044		47,953		52,658
FNMA		4.50			6-1-2044		24,408		26,357
FNMA		4.50			2-1-2045		65,706		72,222
FNMA		5.00			10-1-2043		22,217		24,997
FNMA		5.00			7-1-2044		34,189		38,439
FNMA Series 2007-108 Class AN ±		8.18			11-25-2037		25,388		30,804
FNMA Series 2012-134 Class LC		3.00			12-25-2042		72,095		72,681
FNMA Series 2012-411 Class A3		3.00			8-25-2042		76,981		76,532
GNMA ±		2.50			5-20-2045		353,653		359,690
GNMA ±		2.50			8-20-2045		68,920		70,016
GNMA ±		2.50			10-20-2045		147,613		149,549
GNMA %%		3.00			2-22-2046		700,000		707,733
GNMA %%		3.50			1-21-2046		1,100,000		1,146,326
GNMA %%		3.50			2-22-2046		600,000		623,816
GNMA		4.00			9-20-2045		82,754		88,535
GNMA		4.00			10-20-2045		47,932		51,463
GNMA		4.00			11-20-2045		42,927		46,289
GNMA		4.00			12-20-2045		250,000		265,843
GNMA %%		4.00			1-21-2046		500,000		530,844
GNMA		4.50			5-15-2045		78,986		86,664
GNMA		4.50			5-20-2045		78,935		86,437
GNMA		4.50			5-20-2045		29,822		32,582
GNMA		4.50			6-20-2045		36,180		39,772
GNMA		4.50			8-20-2045		51,162		55,930
GNMA		4.50			9-15-2045		62,753		67,876
GNMA		4.50			9-20-2045		35,858		39,390
Structured Agency Credit Risk Debt Note Series 15-DN1 Class M1 ±		1.67			1-25-2025		126,519		126,624
Tennessee Valley Authority		2.88			9-15-2024		263,000		264,457
Tennessee Valley Authority		4.25			9-15-2065		118,000		115,297
Total Agency Securities (Cost $25,755,052)									25,691,410

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

Portfolio of investments—December 31, 2015 Wells Fargo VT Total Return Bond Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Asset-Backed Securities: 13.38%
Ally Auto Receivables Trust Series 2013-1 Class A3		0.63	%		5-15-2017	$	2,634	$	2,633
Ally Auto Receivables Trust Series 2014-1 Class A4		1.53			4-15-2019		78,000		77,785
Ally Auto Receivables Trust Series 2014-2 Class A4		1.84			1-15-2020		42,000		41,860
Ally Auto Receivables Trust Series 2014-4 Class A2		1.43			6-17-2019		186,000		185,325
Ally Auto Receivables Trust Series 2015-2 Class A3		1.49			11-15-2019		81,000		80,672
Ally Master Owner Trust Series 2012-5 Class A		1.54			9-15-2019		230,000		228,610
Ally Master Owner Trust Series 2014-5 Class A1 ±		0.82			10-15-2019		222,000		221,293
Ally Master Owner Trust Series 2015-2 Class A1 ±		0.90			1-15-2021		97,000		97,164
Avis Budget Rental Car Funding LLC Series 2012-3A Class A 144A		2.10			3-20-2019		100,000		99,894
Avis Budget Rental Car Funding LLC Series 2013-1A Class A 144A		1.92			9-20-2019		152,000		150,879
Bank of the West Auto Trust Series 2014-1 Class A3 144A		1.09			3-15-2019		100,000		99,678
California Republic Auto Receivables Trust Series 2014-2 Class A4		1.57			12-16-2019		52,000		51,592
California Republic Auto Receivables Trust Series 2014-3 Class A4		1.79			3-16-2020		50,000		49,753
California Republic Auto Receivables Trust Series 2015-1 Class A3		1.33			4-15-2019		79,000		78,580
California Republic Auto Receivables Trust Series 2015-1 Class A4		1.82			9-15-2020		91,000		89,802
California Republic Auto Receivables Trust Series 2015-2 Class A3		1.31			8-15-2019		49,000		48,561
California Republic Auto Receivables Trust Series 2015-4 Class A2 144A		1.60			9-17-2018		60,000		59,960
California Republic Auto Receivables Trust Series 2015-4 Class A4 144A		2.58			6-15-2021		81,000		80,739
Capital Auto Receivables Asset Trust Series 2013-2 Class A4		1.56			7-20-2018		79,000		79,064
Capital Auto Receivables Asset Trust Series 2013-3 Class A4		1.68			4-20-2018		50,000		50,077
Capital Auto Receivables Asset Trust Series 2013-4 Class A3		1.09			3-20-2018		134,240		134,080
Capital Auto Receivables Asset Trust Series 2013-4 Class A4		1.47			7-20-2018		172,000		171,507
Capital Auto Receivables Asset Trust Series 2014-1 Class A4		1.69			10-22-2018		107,000		107,068
Capital Auto Receivables Asset Trust Series 2014-2 Class A3		1.26			5-21-2018		177,000		176,777
Capital Auto Receivables Asset Trust Series 2014-2 Class A4		1.62			10-22-2018		51,000		50,918
Capital Auto Receivables Asset Trust Series 2014-3 Class A3		1.48			11-20-2018		196,000		195,479
Capital Auto Receivables Asset Trust Series 2014-3 Class A4		1.83			4-22-2019		29,000		28,995
Capital Auto Receivables Asset Trust Series 2015-1 Class A2		1.42			6-20-2018		267,000		266,393
Capital Auto Receivables Asset Trust Series 2015-1 Class A3		1.61			6-20-2019		113,000		112,429
Capital Auto Receivables Asset Trust Series 2015-1 Class A4		1.86			10-21-2019		62,000		61,580
Capital Auto Receivables Asset Trust Series 2015-2 Class A2		1.39			9-20-2018		73,000		72,681
Capital Auto Receivables Asset Trust Series 2015-2 Class A3		1.73			9-20-2019		105,000		104,512
Capital Auto Receivables Asset Trust Series 2015-2 Class A4		1.97			1-21-2020		156,000		155,227
Capital Auto Receivables Asset Trust Series 2015-3 Class A1A 144A		1.39			2-20-2018		241,000		240,583
Capital Auto Receivables Asset Trust Series 2015-3 Class A3		1.94			1-21-2020		111,000		110,611
Capital Auto Receivables Asset Trust Series 2015-4 Class A2		1.62			3-20-2019		66,000		65,605
Capital Auto Receivables Asset Trust Series 2015-4 Class A3		1.83			3-20-2020		87,000		86,177
Capital Auto Receivables Asset Trust Series 2015-4 Class A4		2.01			7-20-2020		54,000		53,384
Citibank Credit Card Issuance Trust Series 2013-A7 Class A7 ±		0.72			9-10-2020		100,000		99,913
Citibank Credit Card Issuance Trust Series 2014-A6 Class A6		2.15			7-15-2021		171,000		171,848
Discover Card Execution Note Trust Series 2015-A4 Class A1		2.19			4-17-2023		158,000		156,562
Ford Credit Auto Owner Trust Series 2013-B Class A3		0.57			10-15-2017		31,044		31,022
Ford Credit Auto Owner Trust Series 2013-D Class A3		0.67			4-15-2018		36,034		35,965
Ford Credit Auto Owner Trust Series 2014-1 Class A 144A		2.26			11-15-2025		171,000		172,407
Ford Credit Auto Owner Trust Series 2015-2 Class A 144A		2.44			1-15-2027		100,000		99,459
Ford Credit Floorplan Master Owner Trust Series 2012-2 Class A		1.92			1-15-2019		140,000		140,668
Ford Credit Floorplan Master Owner Trust Series 2013-5 Class A1		1.50			9-15-2018		26,000		26,042
Ford Credit Floorplan Master Owner Trust Series 2014-1 Class A1		1.20			2-15-2019		49,000		48,818
Ford Credit Floorplan Master Owner Trust Series 2015-2 Class A2 ±		0.90			1-15-2022		279,000		277,172

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

14 Wells Fargo VT Total Return Bond Fund Portfolio of investments—December 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Asset-Backed Securities (continued)
Honda Auto Receivables Owner Trust Series 2014-B Class A3		0.90	%		12-17-2018	$	95,163	$	94,957
Hyundai Auto Receivables Trust Series 2013-A Class A4		0.75			9-17-2018		42,000		41,923
Hyundai Auto Receivables Trust Series 2013-B Class A4		1.01			2-15-2019		37,000		36,963
Hyundai Auto Receivables Trust Series 2013-C Class A3		1.01			2-15-2018		2,926		2,926
Navient Student Loan Trust Series 2014-1 Class A2 ±		0.53			3-27-2023		100,000		99,151
Navient Student Loan Trust Series 2014-8 Class A2 ±		0.86			4-25-2023		96,000		94,750
Navient Student Loan Trust Series 2015-CA Class A 144A±		1.74			1-16-2035		123,000		122,964
Nelnet Student Loan Trust Series 2004-4 Class A5 ±		0.48			1-25-2037		122,764		119,892
Nelnet Student Loan Trust Series 2004-5 Class A5 ±		0.50			10-27-2036		141,173		134,609
Nelnet Student Loan Trust Series 2005-1 Class A5 ±		0.43			10-25-2033		124,000		118,455
Nelnet Student Loan Trust Series 2005-2 Class A5 ±		0.69			3-23-2037		125,000		118,212
Nelnet Student Loan Trust Series 2005-3 Class A5 ±		0.71			12-24-2035		136,000		128,831
Nelnet Student Loan Trust Series 2005-4 Class A4 ±		0.77			3-22-2032		100,000		90,492
Nelnet Student Loan Trust Series 2006-1 Class A4 ±		0.47			11-23-2022		7,921		7,891
Nelnet Student Loan Trust Series 2006-2 Class A4 ±		0.40			10-26-2026		16,913		16,896
Nelnet Student Loan Trust Series 2010-4A Class A 144A±		1.22			4-25-2046		49,828		49,770
SLC Student Loan Trust Series 2007-2 Class A2 ±		0.76			5-15-2028		59,562		58,752
SLM Student Loan Trust Series 2004-10 Class A6A 144A±		0.87			4-27-2026		209,000		204,642
SLM Student Loan Trust Series 2004-3 Class A5 ±		0.49			7-25-2023		165,826		162,201
SLM Student Loan Trust Series 2005-5 Class A4 ±		0.46			10-25-2028		180,000		168,680
SLM Student Loan Trust Series 2005-6 Class A5 ±		1.52			7-27-2026		49,276		49,334
SLM Student Loan Trust Series 2005-6 Class A6 ±		0.46			10-27-2031		120,000		112,609
SLM Student Loan Trust Series 2005-7 Class A4 ±		0.47			10-25-2029		108,000		102,064
SLM Student Loan Trust Series 2005-9 Class A ±		0.44			1-27-2025		85,313		85,059
SLM Student Loan Trust Series 2006-3 Class A5 ±		0.42			1-25-2021		181,000		173,750
SLM Student Loan Trust Series 2007-2 Class A4 ±		0.38			7-25-2022		187,000		174,644
SLM Student Loan Trust Series 2007-2 Class B ±		0.49			7-25-2025		100,000		84,260
SLM Student Loan Trust Series 2007-3 Class A3 ±		0.36			4-25-2019		267,552		264,157
SLM Student Loan Trust Series 2010-1 Class A ±		0.82			3-25-2025		101,511		97,977
SLM Student Loan Trust Series 2012-6 Class A3 ±		1.17			5-26-2026		100,000		99,020
SLM Student Loan Trust Series 2012-6 Class B ±		1.42			4-27-2043		100,000		88,703
SLM Student Loan Trust Series 2012-C Class A1 144A±		1.43			8-15-2023		58,254		58,291
SLM Student Loan Trust Series 2012-D Class A2 144A		2.95			2-15-2046		322,000		325,458
SLM Student Loan Trust Series 2012-E Class A1 144A±		1.08			10-16-2023		36,326		36,249
SLM Student Loan Trust Series 2013-1 Class B ±		2.22			11-25-2043		100,000		89,355
SLM Student Loan Trust Series 2013-A Class A2B 144A±		1.38			5-17-2027		104,000		103,190
SLM Student Loan Trust Series 2013-B Class A1 144A±		0.98			7-15-2022		64,440		64,285
SLM Student Loan Trust Series 2013-B Class A2A 144A		1.85			6-17-2030		100,000		97,272
SLM Student Loan Trust Series 2014-2 Class A3 ±		1.01			3-26-2029		119,000		114,093
SLM Student Loan Trust Series 2014-A Class A1 144A±		0.93			7-15-2022		108,930		108,491
SLM Student Loan Trust Series 2014-A Class A2A 144A		2.59			1-15-2026		101,000		100,483
SMB Private Education Loan Trust Series 2015-A Class A2A 144A		2.49			6-15-2027		205,000		199,355
SMB Private Education Loan Trust Series 2015-A Class A2B 144A±		1.33			6-15-2027		100,000		98,474
SMB Private Education Loan Trust Series 2015-B Class A2A 144A		2.98			7-15-2027		100,000		98,964
SMB Private Education Loan Trust Series 2015-B Class A2B 144A±		1.53			7-15-2027		119,000		117,087
SMB Private Education Loan Trust Series 2015-C Class A1 144A±		1.23			7-15-2022		126,185		126,109
Trade Maps Limited Series 2013-1A Class A 144A±		0.99			12-10-2018		268,000		266,297
World Financial Network Credit Card Master Trust Series 2014-C Class A		1.54			8-16-2021		35,000		34,784
Total Asset-Backed Securities (Cost $10,691,256)									10,570,574

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

Portfolio of investments—December 31, 2015 Wells Fargo VT Total Return Bond Fund 15

Security name	Interest rate			Maturity date		Principal		Value
Corporate Bonds and Notes: 17.93%
Consumer Discretionary: 1.80%
Automobiles: 0.26%
General Motors Company		3.50	%		10-2-2018	$	115,000	$	116,155
General Motors Company		4.00			4-1-2025		20,000		18,947
General Motors Company		5.00			4-1-2035		50,000		46,606
General Motors Company		5.20			4-1-2045		25,000		23,536
									205,244
Hotels, Restaurants & Leisure: 0.30%
McDonald’s Corporation		2.75			12-9-2020		80,000		79,961
McDonald’s Corporation		3.70			1-30-2026		90,000		89,948
McDonald’s Corporation		4.88			12-9-2045		65,000		65,350
									235,259
Media: 1.12%
21st Century Fox America Incorporated 144A		3.70			10-15-2025		50,000		49,910
21st Century Fox America Incorporated 144A		4.95			10-15-2045		35,000		34,472
CCO Safari II LLC 144A		4.91			7-23-2025		100,000		99,902
CCO Safari II LLC 144A		6.48			10-23-2045		82,000		82,029
Cox Communications Incorporated 144A		4.80			2-1-2035		35,000		28,954
DIRECTV Holdings LLC		3.80			3-15-2022		20,000		20,139
DIRECTV Holdings LLC		3.95			1-15-2025		130,000		128,257
DIRECTV Holdings LLC		4.45			4-1-2024		95,000		97,582
Scripps Networks Interactive Incorporated		2.80			6-15-2020		60,000		58,535
Scripps Networks Interactive Incorporated		3.50			6-15-2022		40,000		38,514
Scripps Networks Interactive Incorporated		3.90			11-15-2024		75,000		71,711
Scripps Networks Interactive Incorporated		3.95			6-15-2025		70,000		66,959
Time Warner Cable Incorporated		6.55			5-1-2037		25,000		25,286
Viacom Incorporated		4.85			12-15-2034		80,000		65,329
Viacom Incorporated		5.25			4-1-2044		20,000		16,490
									884,069
Multiline Retail: 0.04%
Kohl’s Corporation		5.55			7-17-2045		40,000		37,230
Specialty Retail: 0.06%
Bed Bath & Beyond Incorporated		5.17			8-1-2044		55,000		46,588
Textiles, Apparel & Luxury Goods: 0.02%
Coach Incorporated		4.25			4-1-2025		15,000		14,263
Consumer Staples: 1.12%
Beverages: 0.06%
Anheuser-Busch InBev Finance Company		4.63			2-1-2044		45,000		44,692
Food & Staples Retailing: 0.08%
Walgreens Boots Alliance Incorporated		4.80			11-18-2044		70,000		63,591

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

16 Wells Fargo VT Total Return Bond Fund Portfolio of investments—December 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Food Products: 0.83%
H. J. Heinz Company 144A		2.80	%		7-2-2020	$	140,000	$	139,672
H. J. Heinz Company 144A		3.95			7-15-2025		160,000		161,549
H. J. Heinz Company 144A		5.20			7-15-2045		60,000		62,652
WM Wrigley Jr Company 144A		2.00			10-20-2017		35,000		35,058
WM Wrigley Jr Company 144A		2.40			10-21-2018		50,000		50,138
WM Wrigley Jr Company 144A		2.90			10-21-2019		102,000		102,980
WM Wrigley Jr Company 144A		3.38			10-21-2020		105,000		107,088
									659,137
Tobacco: 0.15%
Reynolds American Incorporated		4.45			6-12-2025		40,000		41,857
Reynolds American Incorporated		5.70			8-15-2035		70,000		76,692
									118,549
Energy: 1.95%
Energy Equipment & Services: 0.11%
Halliburton Company		3.80			11-15-2025		50,000		48,717
Halliburton Company		5.00			11-15-2045		35,000		34,574
									83,291
Oil, Gas & Consumable Fuels: 1.84%
Apache Corporation		4.25			1-15-2044		45,000		36,014
Chevron Corporation		1.37			3-2-2018		145,000		143,848
Chevron Corporation		2.41			3-3-2022		125,000		121,728
Energy Transfer Partners LP		2.50			6-15-2018		75,000		71,814
Energy Transfer Partners LP		4.15			10-1-2020		40,000		36,915
Energy Transfer Partners LP		4.75			1-15-2026		115,000		98,981
Energy Transfer Partners LP		6.13			12-15-2045		20,000		16,273
Enlink Midstream Partners LP		5.05			4-1-2045		60,000		37,201
Enterprise Products Operating LLC		3.70			2-15-2026		75,000		67,331
Gulfstream Natural Gas System LLC 144A		5.95			10-15-2045		50,000		46,506
Kerr-McGee Corporation		6.95			7-1-2024		160,000		171,907
Kinder Morgan Energy Partners LP		5.30			12-1-2034		50,000		39,383
Marathon Oil Corporation		5.20			6-1-2045		70,000		49,840
Marathon Petroleum Corporation		5.00			9-15-2054		10,000		8,003
Marathon Petroleum Corporation		5.85			12-15-2045		30,000		27,882
ONEOK Partners LP		2.00			10-1-2017		75,000		71,643
Pioneer Natural Resources Company		3.45			1-15-2021		65,000		60,043
Plains All American Pipeline LP		4.65			10-15-2025		15,000		13,102
Plains All American Pipeline LP		4.90			2-15-2045		15,000		10,781
Rowan Companies Incorporated		5.40			12-1-2042		44,000		26,308
Rowan Companies Incorporated		5.85			1-15-2044		30,000		18,102
Sunoco Logistics Partner LP		5.95			12-1-2025		35,000		33,347
TC Pipelines LP		4.65			6-15-2021		28,000		26,898
Valero Energy Corporation		4.90			3-15-2045		45,000		37,503
Western Gas Partners LP		3.95			6-1-2025		110,000		92,395
Western Gas Partners LP		5.38			6-1-2021		30,000		30,376
Western Gas Partners LP		5.45			4-1-2044		15,000		11,910
Williams Partners LP		4.00			9-15-2025		65,000		48,674
									1,454,708

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

Portfolio of investments—December 31, 2015 Wells Fargo VT Total Return Bond Fund 17

Security name	Interest rate			Maturity date		Principal		Value
Financials: 6.83%
Banks: 2.06%
Bank of America Corporation		2.63	%		10-19-2020	$	140,000	$	138,301
Bank of America Corporation		3.88			8-1-2025		220,000		223,350
Bank of America Corporation		6.00			9-1-2017		115,000		122,382
Citigroup Incorporated		1.55			8-14-2017		160,000		159,353
Citigroup Incorporated		1.70			7-25-2016		115,000		115,369
Citigroup Incorporated		4.45			9-29-2027		185,000		183,899
Citigroup Incorporated		4.65			7-30-2045		60,000		60,686
HSBC USA Incorporated		2.75			8-7-2020		205,000		205,108
JPMorgan Chase & Company		2.55			10-29-2020		185,000		183,353
JPMorgan Chase & Company		3.90			7-15-2025		150,000		154,482
JPMorgan Chase & Company		4.25			10-1-2027		32,000		31,954
JPMorgan Chase & Company		4.95			6-1-2045		46,000		45,987
									1,624,224
Capital Markets: 1.39%
Goldman Sachs Group Incorporated		4.25			10-21-2025		85,000		84,403
Goldman Sachs Group Incorporated		4.75			10-21-2045		105,000		104,278
Goldman Sachs Group Incorporated		6.75			10-1-2037		80,000		93,452
Lazard Group LLC		3.75			2-13-2025		145,000		133,796
Lazard Group LLC		4.25			11-14-2020		80,000		82,895
Morgan Stanley		2.80			6-16-2020		175,000		175,623
Morgan Stanley		3.95			4-23-2027		80,000		77,680
Morgan Stanley		4.00			7-23-2025		340,000		350,416
									1,102,543
Consumer Finance: 0.75%
Ally Financial Incorporated		3.25			11-5-2018		145,000		142,281
Capital One Financial Corporation		4.20			10-29-2025		80,000		79,029
ERAC USA Finance LLC 144A		4.50			2-15-2045		25,000		23,233
ERAC USA Finance LLC 144A		5.63			3-15-2042		82,000		88,014
General Motors Financial Company Incorporated		3.10			1-15-2019		80,000		79,901
General Motors Financial Company Incorporated		3.45			4-10-2022		90,000		86,384
Synchrony Financial		4.50			7-23-2025		95,000		94,826
									593,668
Diversified Financial Services: 0.93%
General Electric Capital Corporation		5.88			1-14-2038		110,000		134,657
Murray Street Investment Trust I		4.65			3-9-2017		188,000		193,702
Visa Incorporated		2.20			12-14-2020		175,000		174,867
Visa Incorporated		3.15			12-14-2025		115,000		115,243
Visa Incorporated		4.30			12-14-2045		110,000		111,495
									729,964
Insurance: 0.77%
ACE INA Holdings Incorporated		3.35			5-3-2026		120,000		119,654
ACE INA Holdings Incorporated		4.35			11-3-2045		65,000		66,055
American International Group Incorporated		3.75			7-10-2025		75,000		74,373
American International Group Incorporated		4.38			1-15-2055		30,000		25,776
American International Group Incorporated		4.50			7-16-2044		10,000		9,248

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

18 Wells Fargo VT Total Return Bond Fund Portfolio of investments—December 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Insurance (continued)
Liberty Mutual Group Incorporated 144A		4.85	%		8-1-2044	$	75,000	$	69,472
Marsh & McLennan Companies		3.75			3-14-2026		80,000		80,005
Metropolitan Life Global Funding I 144A		2.50			12-3-2020		150,000		149,209
Teachers Insurance and Annuity Association 144A		4.90			9-15-2044		15,000		15,151
									608,943
REITs: 0.93%
American Tower Corporation		2.80			6-1-2020		50,000		49,436
American Tower Corporation		3.45			9-15-2021		105,000		105,569
American Tower Corporation		3.50			1-31-2023		96,000		93,893
DDR Corporation		3.38			5-15-2023		100,000		94,503
DDR Corporation		4.63			7-15-2022		120,000		124,053
Mid-America Apartments LP		3.75			6-15-2024		90,000		88,202
Mid-America Apartments LP		4.00			11-15-2025		45,000		44,707
Mid-America Apartments LP		4.30			10-15-2023		40,000		41,010
Tanger Properties LP		3.75			12-1-2024		40,000		39,222
Tanger Properties LP		3.88			12-1-2023		55,000		54,795
									735,390
Health Care: 0.93%
Biotechnology: 0.61%
Baxalta Incorporated 144A		4.00			6-23-2025		35,000		34,655
Baxalta Incorporated 144A		5.25			6-23-2045		90,000		90,282
Biogen Incorporated		2.90			9-15-2020		50,000		49,890
Biogen Incorporated		3.63			9-15-2022		45,000		45,504
Biogen Incorporated		4.05			9-15-2025		87,000		87,451
Biogen Incorporated		5.20			9-15-2045		32,000		32,009
Celgene Corporation		2.88			8-15-2020		55,000		54,607
Celgene Corporation		3.88			8-15-2025		30,000		29,905
Celgene Corporation		5.00			8-15-2045		60,000		60,230
									484,533
Health Care Providers & Services: 0.04%
WellPoint Incorporated		5.10			1-15-2044		35,000		35,109
Pharmaceuticals: 0.28%
AbbVie Incorporated		2.50			5-14-2020		125,000		123,764
AbbVie Incorporated		3.60			5-14-2025		95,000		93,771
									217,535
Industrials: 1.02%
Aerospace & Defense: 0.54%
Lockheed Martin Corporation		2.50			11-23-2020		115,000		114,595
Lockheed Martin Corporation		3.55			1-15-2026		105,000		105,539
Lockheed Martin Corporation		4.70			5-15-2046		65,000		66,886
Northrop Grumman Corporation		3.25			8-1-2023		110,000		110,042
Northrop Grumman Corporation		3.85			4-15-2045		35,000		31,469
									428,531

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

Portfolio of investments—December 31, 2015 Wells Fargo VT Total Return Bond Fund 19

Security name	Interest rate			Maturity date		Principal			Value
Machinery: 0.06%
Valmont Industries Incorporated		5.25	%		10-1-2054	$	55,000		$	46,870
Professional Services: 0.02%
Verisk Analytics Incorporated		5.50			6-15-2045		15,000			14,320
Road & Rail: 0.33%
Penske Truck Leasing Company LP 144A		3.05			1-9-2020		25,000			24,802
Penske Truck Leasing Company LP 144A		3.20			7-15-2020		135,000			133,682
Penske Truck Leasing Company LP 144A		3.38			2-1-2022		105,000			101,960
										260,444
Transportation Infrastructure: 0.07%
Burlington North Santa Fe LLC		4.70			9-1-2045		55,000			54,843
Information Technology: 1.59%
Electronic Equipment, Instruments & Components: 0.01%
L-3 Communications Corporation		3.95			5-28-2024		12,000			11,406
Semiconductors & Semiconductor Equipment: 0.22%
Analog Devices Incorporated		3.90			12-15-2025		60,000			60,603
Analog Devices Incorporated		5.30			12-15-2045		60,000			61,820
Intel Corporation		4.90			7-29-2045		45,000			47,569
										169,992
Software: 0.97%
Fidelity National Information Services Incorporated		4.50			10-15-2022		40,000			40,733
Fidelity National Information Services Incorporated		2.85			10-15-2018		95,000			95,337
Fidelity National Information Services Incorporated		3.63			10-15-2020		75,000	��		76,010
Fidelity National Information Services Incorporated		5.00			10-15-2025		50,000			51,610
Microsoft Corporation		2.00			11-3-2020		115,000			115,045
Microsoft Corporation		2.65			11-3-2022		85,000			84,925
Microsoft Corporation		3.13			11-3-2025		115,000			115,668
Microsoft Corporation		4.45			11-3-2045		60,000			61,878
Oracle Corporation		2.50			5-15-2022		100,000			98,212
Oracle Corporation		2.95			5-15-2025		25,000			24,409
										763,827
Technology Hardware, Storage & Peripherals: 0.39%
Hewlett Packard Enterprise Company 144A		2.85			10-5-2018		125,000			124,955
Hewlett Packard Enterprise Company 144A		4.90			10-15-2025		100,000			98,208
Hewlett Packard Enterprise Company 144A		6.35			10-15-2045		90,000			85,436
										308,599
Materials: 0.21%
Chemicals: 0.08%
Albemarle Corporation		5.45			12-1-2044		45,000			43,520
Mosaic Company		5.63			11-15-2043		25,000			23,964
										67,484

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

20 Wells Fargo VT Total Return Bond Fund Portfolio of investments—December 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Metals & Mining: 0.03%
Vale Overseas Limited		8.25	%		1-17-2034	$	25,000	$	20,028
Paper & Forest Products: 0.10%
International Paper Company		5.15			5-15-2046		80,000		76,108
Telecommunication Services: 1.00%
Diversified Telecommunication Services: 1.00%
AT&T Incorporated		3.00			6-30-2022		165,000		160,507
AT&T Incorporated		3.40			5-15-2025		165,000		158,600
Verizon Communications Incorporated		2.50			9-15-2016		100,000		100,782
Verizon Communications Incorporated		4.27			1-15-2036		57,000		51,449
Verizon Communications Incorporated		4.40			11-1-2034		113,000		104,257
Verizon Communications Incorporated		4.86			8-21-2046		230,000		217,596
									793,191
Utilities: 1.48%
Electric Utilities: 0.79%
American Electric Power Company		1.65			12-15-2017		120,000		119,109
Appalachian Power Company		4.45			6-1-2045		35,000		33,224
Commonwealth Edison Company		3.70			3-1-2045		20,000		17,991
Consolidated Edison Company of New York Incorporated		4.50			12-1-2045		40,000		40,490
Consolidated Edison Company of New York Incorporated		4.63			12-1-2054		10,000		9,831
Duke Energy Ohio Incorporated		3.75			4-15-2024		40,000		40,557
Duke Energy Ohio Incorporated		4.80			12-15-2045		35,000		35,364
Duke Energy Progress Incorporated		3.25			8-15-2025		80,000		80,613
Duke Energy Progress Incorporated		4.20			8-15-2045		30,000		29,556
PECO Energy Company		3.15			10-15-2025		85,000		84,761
PPL Electric Utilities Corporation		4.15			10-1-2045		50,000		49,365
Southwestern Electric Power Company		3.90			4-1-2045		55,000		48,127
Virginia Electric & Power Company		4.45			2-15-2044		35,000		35,993
									624,981
Multi-Utilities: 0.69%
Dominion Resources Incorporated		3.90			10-1-2025		53,000		53,090
Dominion Resources Incorporated		4.70			12-1-2044		60,000		58,440
MidAmerican Energy Company		3.50			10-15-2024		50,000		51,127
MidAmerican Energy Company		4.25			5-1-2046		50,000		49,455
Puget Energy Incorporated		6.00			9-1-2021		145,000		163,400
Sempra Energy		2.85			11-15-2020		85,000		84,746
Sempra Energy		3.75			11-15-2025		85,000		84,843
									545,101
Total Corporate Bonds and Notes (Cost $14,484,111)									14,164,255
Municipal Obligations: 1.11%
California: 0.31%
California Build America Bonds (GO Revenue)		7.60			11-1-2040		80,000		118,912
Los Angeles CA Community College District Build America Bonds (GO Revenue)		6.75			8-1-2049		90,000		127,175
									246,087

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

Portfolio of investments—December 31, 2015 Wells Fargo VT Total Return Bond Fund 21

Security name	Interest rate			Maturity date		Principal		Value
Nevada: 0.23%
Clark County NV Airport Authority Build America Bonds Series C (Airport Revenue)		6.82	%		7-1-2045	$	130,000	$	179,049
New Jersey: 0.21%
New Jersey Turnpike Authority Build America Bonds Series A (Transportation Revenue)		7.10			1-1-2041		119,000		163,902
New York: 0.14%
Port Authority of New York & New Jersey Consolidated Bonds Series 174 (Airport Revenue)		4.46			10-1-2062		120,000		114,259
Ohio: 0.04%
Ohio State University General Receipts Taxable Bonds Series A (Education Revenue)		4.80			6-1-2111		36,000		34,709
Texas: 0.18%
North Texas Tollway Authority (Transportation Revenue)		6.72			1-1-2049		104,000		142,532
Total Municipal Obligations (Cost $736,313)									880,538
Non-Agency Mortgage-Backed Securities: 4.93%
CFCRE Commercial Mortgage Trust Series 2011-C1 Series A4 144A±		4.96			4-15-2044		100,000		109,311
Citigroup Commercial Mortgage Trust Series 2013-GC17 Class A4		4.13			11-10-2046		31,000		32,826
Citigroup Commercial Mortgage Trust Series 2015-GC35 Class A4		3.82			11-10-2048		32,000		32,782
Citigroup Commercial Mortgage Trust Series 2015-GC35 Class AAB		3.61			11-10-2048		73,000		74,667
Commercial Mortgage Pass-Through Certificate Series 2010-C1 Class A3 144A		4.21			7-10-2046		138,000		146,939
Commercial Mortgage Pass-Through Certificate Series 2012-CR1 Class A2		2.35			5-15-2045		124,132		124,911
Commercial Mortgage Pass-Through Certificate Series 2012-CR4 Class A2		1.80			10-15-2045		30,000		29,755
Commercial Mortgage Pass-Through Certificate Series 2012-UBS5 Class A3		3.55			9-10-2047		35,000		35,845
Commercial Mortgage Pass-Through Certificate Series 2013-CR10 Class A2		2.97			8-10-2046		35,000		35,598
Commercial Mortgage Pass-Through Certificate Series 2013-CR12 Class A4		4.05			10-10-2046		19,000		20,048
Commercial Mortgage Pass-Through Certificate Series 2014-CR18 Class ASB		3.45			7-15-2047		58,000		59,488
Commercial Mortgage Pass-Through Certificate Series 2014-UBS3 Class A4		3.82			6-10-2047		73,000		75,130
Commercial Mortgage Pass-Through Certificate Series 2014-UBS6 Class AM		4.05			12-10-2047		120,000		123,649
Commercial Mortgage Pass-Through Certificate Series 2014-UBS6 Class ASB		3.39			12-10-2047		24,000		24,283
Commercial Mortgage Pass-Through Certificate Series 2015-LC23 Class A4		3.77			10-10-2053		91,000		92,689
Commercial Mortgage Pass-Through Certificate Series 2015-PC1 Class ASB		3.61			7-10-2050		94,000		96,221
Commercial Mortgage Trust Series 2013-CR6 Class A1		0.72			3-10-2046		18,707		18,521
CSAIL Commercial Mortgage Trust Series 2015-C4 Class ASB		3.62			11-15-2048		115,000		117,473
Deutsche Bank UBS Securities Mortgage Trust Series 2011-LC1A Class A1 144A		3.74			11-10-2046		22,843		22,884
Deutsche Bank UBS Securities Mortgage Trust Series 2011-LC2A Class A4 144A		4.54			7-10-2044		211,000		227,381
GS Mortgage Securities Trust Series 2011-GC3 Class A2 144A		3.65			3-10-2044		23,554		23,533
GS Mortgage Securities Trust Series 2012-GCJ7 Class A1		1.14			5-10-2045		11,048		11,041
GS Mortgage Securities Trust Series 2012-GCJ7 Class A2		2.32			5-10-2045		108,000		108,545
GS Mortgage Securities Trust Series 2012-GCJ7 Class AAB		2.94			5-10-2045		13,000		13,234
GS Mortgage Securities Trust Series 2013-GC16 Class A1		1.26			11-10-2046		17,459		17,334
GS Mortgage Securities Trust Series 2014-GC18 Class AAB		3.65			1-10-2047		60,000		61,952
GS Mortgage Securities Trust Series 2014-GC20 Class AAB		3.66			4-10-2047		67,000		69,169
GS Mortgage Securities Trust Series 2014-GC26 Class AAB		3.37			11-10-2047		71,000		72,010
GS Mortgage Securities Trust Series 2015-GC30 Class AAB		3.12			5-10-2050		64,000		63,975
GS Mortgage Securities Trust Series 2015-GC32 Class AAB		3.51			7-10-2048		94,000		95,689
GS Mortgage Securities Trust Series 2015-GC34 Class AAB		3.28			10-10-2048		81,000		81,179
Impact Funding LLC Series 2010-1 Class A1 144A		5.31			1-25-2051		309,952		350,125
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2012-CBX Class A4		3.48			6-15-2045		34,000		34,980
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2015-32 Class ASB		3.36			11-15-2048		37,000		37,275

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

22 Wells Fargo VT Total Return Bond Fund Portfolio of investments—December 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Non-Agency Mortgage-Backed Securities (continued)
JPMorgan Chase Commercial Mortgage Securities Trust Series 2015-JP1 Class ASB		3.73	%		1-15-2049	$	19,000	$	19,542
JPMorgan Chase Commercial Mortgage Securities Trust Series 2004-LN2 Class A2		5.12			7-15-2041		2,417		2,417
JPMorgan Chase Commercial Mortgage Securities Trust Series 2010-C2 Class A3 144A		4.07			11-15-2043		100,000		105,079
JPMorgan Chase Commercial Mortgage Securities Trust Series 2010-CNTR Class A1 144A		3.30			8-5-2032		54,817		56,178
JPMorgan Chase Commercial Mortgage Securities Trust Series 2011-C4 Class A3 144A		4.11			7-15-2046		117,000		121,385
JPMorgan Chase Commercial Mortgage Securities Trust Series 2012-LC9 Class A2		1.68			12-15-2047		39,000		38,811
JPMorgan Chase Commercial Mortgage Securities Trust Series 2014-C22 Class A4		3.80			9-15-2047		25,000		25,595
JPMorgan Chase Commercial Mortgage Securities Trust Series 2014-C25 Class ASB		3.41			11-15-2047		15,000		15,233
JPMorgan Chase Commercial Mortgage Securities Trust Series 2015-C28 Class A3		2.91			10-15-2048		47,000		45,205
JPMorgan Chase Commercial Mortgage Securities Trust Series 2015-C28 Class ASB		3.04			10-15-2048		33,000		32,680
JPMorgan Chase Commercial Mortgage Securities Trust Series 2015-C30 Class AS ±		4.23			7-15-2048		80,000		82,277
JPMorgan Chase Commercial Mortgage Securities Trust Series 2015-C30 Class ASB		3.56			7-15-2048		75,000		76,517
JPMorgan Chase Commercial Mortgage Securities Trust Series 2015-IVR2 Class A2 144A±		2.77			1-25-2045		88,535		89,058
Morgan Stanley Bank of America Merrill Lynch Trust Series 2013-C10 Class A1		1.39			7-15-2046		63,790		63,686
Morgan Stanley Bank of America Merrill Lynch Trust Series 2013-C9 Class A2		1.97			5-15-2046		39,000		38,965
Morgan Stanley Bank of America Merrill Lynch Trust Series 2015-C125 Class ASB		3.38			10-15-2048		64,000		64,819
Morgan Stanley Bank of America Merrill Lynch Trust Series 2015-C127 Class ASB		3.56			12-15-2047		47,000		47,932
Morgan Stanley Capital I Trust Series 2011-C2 Class A2 144A		3.48			6-15-2044		177,618		178,294
Morgan Stanley Capital I Trust Series 2015-UBS8 Class ASB		3.63			12-15-2048		37,000		37,725
Morgan Stanley Dean Witter Capital I Series 2011-C3 Class A2		3.22			7-15-2049		72,062		72,684
UBS Barclays Commercial Mortgage Trust Series 2012-C2 Class A2		2.11			5-10-2063		63,000		63,222
UBS Barclays Commercial Mortgage Trust Series 2013-C5 Class A4		3.18			3-10-2046		43,000		43,157
UBS Commercial Mortgage Trust Series 2012-C1 Class A3		3.40			5-10-2045		34,000		34,628
Total Non-Agency Mortgage-Backed Securities (Cost $3,890,974)									3,895,531
U.S. Treasury Securities: 29.29%
U.S. Treasury Bond		2.88			8-15-2045		405,000		392,581
U.S. Treasury Bond		3.00			5-15-2045		175,000		173,865
U.S. Treasury Bond		3.00			11-15-2045		572,000		569,204
U.S. Treasury Bond		3.13			2-15-2043		1,168,000		1,194,670
U.S. Treasury Bond		3.38			5-15-2044		135,000		144,603
U.S. Treasury Bond		4.50			8-15-2039		383,000		489,282
U.S. Treasury Note		0.63			8-31-2017		584,000		580,281
U.S. Treasury Note		0.63			9-30-2017		11,000		10,924
U.S. Treasury Note		0.63			11-30-2017		308,000		305,468
U.S. Treasury Note ##		0.75			4-15-2018		2,464,000		2,440,333
U.S. Treasury Note		0.88			8-15-2017		831,000		829,199
U.S. Treasury Note		0.88			1-15-2018		204,000		203,095
U.S. Treasury Note		1.00			12-15-2017		319,000		318,598
U.S. Treasury Note		1.00			12-31-2017		590,000		589,329
U.S. Treasury Note		1.00			5-31-2018		240,000		238,798
U.S. Treasury Note ##		1.00			9-15-2018		1,270,000		1,261,110
U.S. Treasury Note		1.25			11-15-2018		410,000		409,415
U.S. Treasury Note		1.25			12-15-2018		1,878,000		1,874,293
U.S. Treasury Note		1.38			4-30-2020		183,000		180,671
U.S. Treasury Note		1.38			9-30-2020		2,082,000		2,046,529
U.S. Treasury Note		1.38			10-31-2020		357,000		350,781
U.S. Treasury Note		1.50			1-31-2019		2,016,000		2,023,411
U.S. Treasury Note		1.63			3-31-2019		482,000		485,099
U.S. Treasury Note		1.63			6-30-2020		344,000		342,671

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

Portfolio of investments—December 31, 2015 Wells Fargo VT Total Return Bond Fund 23

Security name	Interest rate			Maturity date		Principal		Value
U.S. Treasury Securities (continued)
U.S. Treasury Note		1.63	%		11-30-2020	$	494,000	$	491,201
U.S. Treasury Note		1.75			12-31-2020		1,221,000		1,220,017
U.S. Treasury Note		2.00			7-31-2020		656,000		663,720
U.S. Treasury Note		2.00			9-30-2020		841,000		850,381
U.S. Treasury Note		2.00			8-15-2025		344,000		335,395
U.S. Treasury Note		2.13			12-31-2022		315,000		315,492
U.S. Treasury Note		2.25			11-15-2025		1,807,000		1,802,956
Total U.S. Treasury Securities (Cost $23,198,952)									23,133,372
Yankee Corporate Bonds and Notes: 4.26%
Consumer Discretionary: 0.13%
Media: 0.13%
British Sky Broadcasting Group plc 144A		3.75			9-16-2024		105,000		102,610
Energy: 0.83%
Oil, Gas & Consumable Fuels: 0.83%
Canadian Oil Sands Trust Limited 144A		6.00			4-1-2042		60,000		47,981
Ecopetrol SA		5.38			6-26-2026		65,000		55,413
Ecopetrol SA		5.88			5-28-2045		45,000		31,950
Ecopetrol SA		7.38			9-18-2043		10,000		8,400
Petroleos Mexicanos Company		2.38			4-15-2025		114,000		113,862
Petroleos Mexicanos Company		2.46			12-15-2025		195,000		194,879
Petroleos Mexicanos Company 144A		4.50			1-23-2026		40,000		35,140
Petroleos Mexicanos Company 144A		5.63			1-23-2046		65,000		49,738
Talisman Energy Incorporated		3.75			2-1-2021		65,000		58,962
Weatherford International Limited		4.50			4-15-2022		20,000		14,400
Weatherford International Limited		5.95			4-15-2042		60,000		42,150
									652,875
Financials: 2.02%
Banks: 1.76%
Japan Bank for International Cooperation		1.75			5-28-2020		200,000		195,629
Royal Bank of Canada		2.10			10-14-2020		210,000		206,459
Santander UK Group Holdings plc		2.88			10-16-2020		130,000		129,117
Skandinaviska Enskilda Banken 144A		2.63			11-17-2020		205,000		204,352
Stadshypotek AB 144A		1.75			4-9-2020		305,000		298,278
Westpac Banking Corporation 144A		2.25			11-9-2020		200,000		197,499
Westpac Banking Corporation		2.60			11-23-2020		155,000		154,940
									1,386,274
Consumer Finance: 0.26%
Volkswagen International Finance NV 144A		1.13			11-18-2016		210,000		207,452
Health Care: 0.45%
Pharmaceuticals: 0.45%
Actavis Funding SCS		2.35			3-12-2018		70,000		70,084
Actavis Funding SCS		3.00			3-12-2020		90,000		89,928
Actavis Funding SCS		3.80			3-15-2025		115,000		114,423
Actavis Funding SCS		4.75			3-15-2045		85,000		82,863
									357,298

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

24 Wells Fargo VT Total Return Bond Fund Portfolio of investments—December 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Industrials: 0.14%
Aerospace & Defense: 0.05%
Embraer Netherlands Finance BV		5.05	%		6-15-2025	$	45,000	$	40,950
Transportation Infrastructure: 0.09%
A.P. Moller-Maersk A/S 144A		3.88			9-28-2025		72,000		69,444
Materials: 0.21%
Chemicals: 0.08%
LYB International Finance BV		4.88			3-15-2044		35,000		31,960
LyondellBasell Industries NV		4.63			2-26-2055		35,000		28,383
									60,343
Metals & Mining: 0.13%
Barrick Gold Corporation		4.10			5-1-2023		15,000		12,869
Rio Tinto Finance USA Limited		3.75			6-15-2025		100,000		90,846
									103,715
Telecommunication Services: 0.29%
Wireless Telecommunication Services: 0.29%
America Movil SAB de CV		3.13			7-16-2022		235,000		230,903
Utilities: 0.19%
Electric Utilities: 0.19%
Electricite de France SA 144A		4.95			10-13-2045		120,000		116,514
Electricite de France SA 144A		5.25			10-13-2055		35,000		33,323
									149,837
Total Yankee Corporate Bonds and Notes (Cost $3,510,824)									3,361,701
Yankee Government Bonds: 1.43%
Hashemite Kingdom of Jordan		2.58			6-30-2022		201,000		203,315
Oriental Republic of Uruguay		4.38			10-27-2027		45,000		44,213
Republic of Paraguay 144A		6.10			8-11-2044		100,000		95,500
Republic of Slovenia 144A		5.25			2-18-2024		200,000		220,750
Slovak Republic 144A		4.38			5-21-2022		375,000		416,463
United Mexican States		5.75			10-12-2049		160,000		149,200
Total Yankee Government Bonds (Cost $1,082,862)									1,129,441
	Yield					Shares
Short-Term Investments: 1.31%
Investment Companies: 1.31%
Wells Fargo Cash Investment Money Market Fund, Select Class ##(l)(u)		0.33					1,035,443		1,035,443
Total Short-Term Investments (Cost $1,035,443)									1,035,443

Total investments in securities (Cost $84,385,787) *	106.17	%		83,862,265
Other assets and liabilities, net	(6.17	)		(4,872,638	)
Total net assets	100.00	%	$	78,989,627

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

Portfolio of investments—December 31, 2015 Wells Fargo VT Total Return Bond Fund 25

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

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

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

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

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

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

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

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

* Cost for federal income tax purposes is $84,617,464 and unrealized gains (losses) consists of:

Gross unrealized gains	$	403,617
Gross unrealized losses		(1,158,816	)
Net unrealized losses	$	(755,199	)

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

26 Wells Fargo VT Total Return Bond Fund Statement of assets and liabilities—December 31, 2015

Assets
Investments
In unaffiliated securities, at value (cost $83,350,344)	$	82,826,822
In affiliated securities, at value (cost $1,035,443)		1,035,443
Total investments, at value (cost $84,385,787)		83,862,265
Receivable for investments sold		7,535,008
Principal paydown receivable		9,101
Receivable for Fund shares sold		1,864
Receivable for interest		387,488
Prepaid expenses and other assets		1,057
Total assets		91,796,783
Liabilities
Dividends payable		9,850
Payable for investments purchased		12,611,804
Payable for Fund shares redeemed		63,929
Management fee payable		28,077
Distribution fee payable		18,828
Administration fee payable		6,025
Accrued expenses and other liabilities		68,643
Total liabilities		12,807,156
Total net assets	$	78,989,627
NET ASSETS CONSIST OF
Paid-in capital	$	82,052,102
Undistributed net investment income		13,759
Accumulated net realized losses on investments		(2,552,712	)
Net unrealized losses on investments		(523,522	)
Total net assets	$	78,989,627
COMPUTATION OF NET ASSET VALUE PER SHARE
Net assets – Class 2	$	78,989,627
Shares outstanding – Class 21		7,603,697
Net asset value per share – Class 2		$10.39

¹  The Fund has an unlimited number of authorized shares.

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

Statement of operations—year ended December 31, 2015 Wells Fargo VT Total Return Bond Fund 27

Investment income
Interest (net of foreign interest withholding taxes of $162)	$	1,910,596
Income from affiliated securities		4,408
Securities lending income, net		95
Total investment income		1,915,099
Expenses
Management fee		394,755
Administration fee
Class 2		70,179
Distribution fee
Class 2		219,308
Custody and accounting fees		56,598
Professional fees		46,455
Shareholder report expenses		22,720
Trustees’ fees and expenses		17,951
Other fees and expenses		8,668
Total expenses		836,634
Less: Fee waivers and/or expense reimbursements		(47,124	)
Net expenses		789,510
Net investment income		1,125,589
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		853,002
TBA sale commitments		221
Net realized gains on investments		853,223
Net change in unrealized gains (losses) on investments		(1,864,364	)
Net realized and unrealized gains (losses) on investments		(1,011,141	)
Net increase in net assets resulting from operations	$	114,448

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

28 Wells Fargo VT Total Return Bond Fund Statement of changes in net assets

	Year ended December 31, 2015						Year ended December 31, 2014
Operations
Net investment income				$	1,125,589					$	1,192,314
Net realized gains on investments					853,223						1,761,202
Net change in unrealized gains (losses) on investments					(1,864,364	)					2,039,702
Net increase in net assets resulting from operations					114,448						4,993,218
Distributions to shareholders from
Net investment income – Class 2					(1,125,617	)					(1,240,908	)
Capital share transactions		Shares						Shares
Proceeds from shares sold – Class 2		876,644			9,251,061			1,245,757			12,903,246
Reinvestment of distributions – Class 2		106,263			1,118,888			119,606			1,240,908
Payment for shares redeemed – Class 2		(1,933,277	)		(20,305,677	)		(1,765,773	)		(18,312,667	)
Net decrease in net assets resulting from capital share transactions					(9,935,728	)					(4,168,513	)
Total decrease in net assets					(10,946,897	)					(416,203	)
Net assets
Beginning of period					89,936,524						90,352,727
End of period				$	78,989,627					$	89,936,524
Undistributed net investment income				$	13,759					$	13,787

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

Financial highlights Wells Fargo VT Total Return Bond Fund 29

(For a share outstanding throughout each period)

	Year ended December 31
CLASS 2	2015			2014			2013			2012			2011
Net asset value, beginning of period		$10.51			$10.09			$10.82			$10.54			$10.41
Net investment income		0.14			0.14			0.12			0.15			0.22
Net realized and unrealized gains (losses) on investments		(0.12	)		0.42			(0.38	)		0.48			0.62
Total from investment operations		0.02			0.56			(0.26	)		0.63			0.84
Distributions to shareholders from
Net investment income		(0.14	)		(0.14	)		(0.13	)		(0.15	)		(0.28	)
Net realized gains		0.00			0.00			(0.34	)		(0.20	)		(0.43	)
Total distributions to shareholders		(0.14	)		(0.14	)		(0.47	)		(0.35	)		(0.71	)
Net asset value, end of period		$10.39			$10.51			$10.09			$10.82			$10.54
Total return		0.13	%		5.59	%		(2.43	)%		6.10	%		8.31	%
Ratios to average net assets (annualized)
Gross expenses		0.95	%		0.92	%		0.93	%		0.94	%		0.91	%
Net expenses		0.90	%		0.90	%		0.90	%		0.90	%		0.88	%
Net investment income		1.28	%		1.31	%		1.19	%		1.37	%		2.09	%
Supplemental data
Portfolio turnover rate		565	%		593	%		613	%		574	%		843	%
Net assets, end of period (000s omitted)		$78,990			$89,937			$90,353			$91,858			$87,138

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

30 Wells Fargo 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”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Wells Fargo VT Total Return Bond Fund (the “Fund”) which is a diversified series of the Trust.

2. SIGNIFICANT ACCOUNTING POLICIES

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

Securities valuation

All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time).

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

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

Investments which are not valued using any of the methods discussed above are valued at their fair value, as determined in good faith by the Board of Trustees of the Fund. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Management Valuation Team of Wells Fargo Funds Management, LLC (“Funds Management”). The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Management Valuation Team which may include items for ratification.

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

Security loans

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

Notes to financial statements Wells Fargo VT Total Return Bond Fund 31

The Fund lends its securities through an unaffiliated securities lending agent. Cash collateral received in connection with its securities lending transactions is invested in Securities Lending Cash Investments, LLC (the “Securities Lending Fund”). The Securities Lending Fund is exempt from registration under Section 3(c)(7) of the 1940 Act and is managed by Funds Management and is subadvised by Wells Capital Management Incorporated (“WellsCap”). Funds Management receives an advisory fee starting at 0.05% and declining to 0.01% as the average daily net assets of the Securities Lending Fund increase. All of the fees received by Funds Management are paid to WellsCap for its services as subadviser. The Securities Lending Fund seeks to provide a positive return compared to the daily Fed Funds Open rate by investing in high-quality, U.S. dollar-denominated short-term money market instruments. Securities Lending Fund investments are fair valued based upon the amortized cost valuation technique. Income earned from investment in the Securities Lending Fund is included in securities lending income on the Statement of Operations.

When-issued transactions

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

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 offsetting TBA purchase commitments, which are 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 underlying securities, 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 through TBA 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 TBA dollar roll transactions as purchases and sales which, as a result, may increase its portfolio turnover rate.

Security transactions and income recognition

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

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

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 federal income tax regulations, which may differ in amount or character from net investment income and realized gains recognized for purposes of U.S. generally accepted accounting principles.

32 Wells Fargo VT Total Return Bond Fund Notes to financial statements

Federal and other taxes

The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.

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

As of December 31, 2015, the Fund had capital loss carryforwards available to offset future net realized capital gains in the amount of $2,321,033 expiring in 2016.

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 significant 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:

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

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

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

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

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of December 31, 2015:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Agency securities	$	0	$	25,691,410	$	0	$	25,691,410
Asset-backed securities		0		10,570,574		0		10,570,574
Corporate bonds and notes		0		14,164,255		0		14,164,255
Municipal obligations		0		880,538		0		880,538
Non-agency mortgage-backed securities		0		3,895,531		0		3,895,531
U.S. Treasury securities		23,133,372		0		0		23,133,372
Yankee corporate bonds and notes		0		3,361,701		0		3,361,701
Yankee government bonds		0		1,129,441		0		1,129,441
Short-term investments
Investment companies		1,035,443		0		0		1,035,443
Total assets	$	24,168,815	$	59,693,450	$	0	$	83,862,265

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At December 31, 2015, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

Notes to financial statements Wells Fargo VT Total Return Bond Fund 33

4. TRANSACTIONS WITH AFFILIATES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the applicable subadviser, providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.45% and declining to 0.33% as the average daily net assets of the Fund increase.

Prior to July 1, 2015, Funds Management provided advisory services pursuant to an investment advisory agreement and was entitled to receive an annual fee which started at 0.40% and declined to 0.30% as the average daily net assets of the Fund increased. In addition, fund-level administrative services were provided by Funds Management under a separate administration agreement at an annual fee which started at 0.05% and declined to 0.03% as the average daily net assets of the Fund increased. For financial statement purposes, the advisory fee and fund-level administration fee for the year ended December 31, 2015 have been included in management fee on the Statement of Operations.

For the year ended December 31, 2015, the management fee was equivalent to an annual rate of 0.45% of the Fund’s average daily net assets.

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

Administration fee

Under a class-level administration agreement, Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under the class-level administration agreement, Funds Management receives a class level administration fee of 0.08% which is calculated based on the average daily net assets of Class 2 shares.

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through April 30, 2016 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.90% for Class 2 shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

Distribution fee

The Trust has adopted a distribution plan for Class 2 shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class 2 shares and paid to Wells Fargo Funds Distributor, LLC, the principal underwriter, at an annual rate of 0.25% of the average daily net assets of Class 2 shares.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding short-term securities, for the year ended December 31, 2015 were as follows:

Purchases at cost		Sales proceeds
U.S. government	Non-U.S. government	U.S. government	Non-U.S. government
$456,822,022	$68,646,496	$461,749,119	$71,897,142

34 Wells Fargo VT Total Return Bond Fund Notes to financial statements

6. BANK BORROWINGS

The Trust and Wells Fargo Funds Trust (excluding the money market funds and certain other funds) are parties to a $200,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.20% of the unused balance is allocated to each participating fund. Prior to September 1, 2015, the revolving credit agreement amount was $150,000,000 and the annual commitment fee was equal to 0.10% of the unused balance which was allocated to each participating fund. For the year ended December 31, 2015, the Fund paid $113 in commitment fees.

For the year ended December 31, 2015, there were no borrowings by the Fund under the agreement.

7. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid was $1,125,617 and $1,240,908 of ordinary income for the years ended December 31, 2015 and December 31, 2014, respectively.

As of December 31, 2015, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Unrealized losses	Capital loss carryforward
$24,248	$(755,199)	$(2,321,033)

8. INDEMNIFICATION

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

9. FUND LIQUIDATION

At a regular meeting of the Board of Trustees held on November 17-18, 2015, the Trustees unanimously approved the liquidation of the Fund. The Fund was closed to new insurance companies effective November 19, 2015 and will be closed to new direct investors and additional investments from existing shareholders effective at the close of business on April 27, 2016. The liquidation of the Fund is expected to occur after the close of business on or about April 29, 2016. Shareholders of the Fund on the date of liquidation will receive a distribution of their account proceeds, including any accrued dividends, in complete redemption of their shares.

Report of independent registered public accounting firm Wells Fargo VT Total Return Bond Fund 35

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 VT Total Return Bond Fund (formerly known as Wells Fargo Advantage VT Total Return Bond Fund) (the “Fund”), one of the funds constituting the Wells Fargo Variable Trust, as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2015, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo VT Total Return Bond Fund as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

As described in Note 9 to the financial statements, the Board of Trustees of the Fund unanimously approved the liquidation of the Fund. Shareholders of the Fund on the date of liquidation will receive a distribution of their account proceeds, including any accrued dividends, in complete redemption of their shares.

Boston, Massachusetts

February 25, 2016

36 Wells Fargo VT Total Return Bond Fund Other information (unaudited)

TAX INFORMATION

For the fiscal year ended December 31, 2015, 19.75% of the ordinary income distributed was derived from interest on U.S. government securities.

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-260-5969, visiting our website at wellsfargofunds.com, or visiting the SEC website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website at wellsfargofunds.com or by visiting the SEC website at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

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

Other information (unaudited) Wells Fargo VT Total Return Bond Fund 37

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 144 mutual funds comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information². The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.

Independent Trustees

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
William R. Ebsworth (Born 1957)	Trustee, since 2015	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief financial officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he lead a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Mr. Ebsworth is a CFA® charterholder and an Adjunct Lecturer, Finance, at Babson College.	Asset Allocation Trust
Jane A. Freeman (Born 1953)	Trustee, since 2015	Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair of the Audit Committee. Ms. Freeman is Chair of Taproot Foundation (non-profit organization), a Board Member of Ruth Bancroft Garden (non-profit organization) and an inactive chartered financial analyst.	Asset Allocation Trust
Peter G. Gordon (Born 1942)	Trustee, since 1998; Chairman, since 2005	Co-Founder, Retired Chairman, President and CEO of Crystal Geyser Water Company. Trustee Emeritus, Colby College.	Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. Chairman of the Board of CIGNA Corporation since 2009, and Director since 2005. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (charter school). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	CIGNA Corporation; Asset Allocation Trust
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, since 2008	Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant.	Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of the Corporate Governance Research Initiative and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust

38 Wells Fargo VT Total Return Bond Fund Other information (unaudited)

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust
Timothy J. Penny (Born 1951)	Trustee, since 1996	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
Michael S. Scofield (Born 1943)	Trustee, since 2010	Served on the Investment Company Institute’s Board of Governors and Executive Committee from 2008-2011 as well the Governing Council of the Independent Directors Council from 2006-2011 and the Independent Directors Council Executive Committee from 2008-2011. Chairman of the IDC from 2008-2010. Institutional Investor (Fund Directions) Trustee of Year in 2007. Trustee of the Evergreen Funds complex (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield.	Asset Allocation Trust
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. Director and Vice Chair of The Tree Trust (non-profit corporation). Director of the American Chestnut Foundation (non-profit corporation).	Asset Allocation Trust

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

** Donald Willeke retired as a Trustee effective December 31, 2015.

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
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.
Jeremy DePalma1 (Born 1974)	Treasurer, since 2012; Assistant Treasurer, since 2009	Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010 and head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.
C. David Messman (Born 1960)	Secretary, since 2000; Chief Legal Officer, since 2003	Senior Vice President and Secretary of Wells Fargo Funds Management, LLC since 2001. Assistant General Counsel of Wells Fargo Bank, N.A. since 2013 and Vice President and Managing Counsel of Wells Fargo Bank, N.A. from 1996 to 2013.
Debra Ann Early (Born 1964)	Chief Compliance Officer, since 2007	Executive Vice President of Wells Fargo Funds Management, LLC since 2014, Senior Vice President and Chief Compliance Officer from 2007 to 2014.
David Berardi (Born 1975)	Assistant Treasurer, since 2009	Vice President of Wells Fargo Funds Management, LLC since 2009. Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.

¹ Jeremy DePalma acts as Treasurer of 72 funds and Assistant Treasurer of 72 funds in the Fund Complex.

² The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling
1-800-260-5969 or by visiting the website at wellsfargofunds.com.

List of abbreviations Wells Fargo VT Total Return Bond Fund 39

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —   Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

This page is intentionally left blank.

For more information

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

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.com

Individual investors: 1-800-222-8222

Retail investment professionals: 1-888-877-9275

Institutional investment professionals: 1-866-765-0778

This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call
1-800-260-5969 or visit the Fund’s website at wellsfargofunds.com. Read the prospectus carefully before you invest or send money.

Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the funds. The funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

© 2015 Wells Fargo Funds Management, LLC. All rights reserved.

239829 02-16 AVT9/AR155 12-15

ITEM 2. CODE OF ETHICS

(a) As of the end of the period, covered by the report, Wells Fargo Variable Trust has adopted a code of ethics that applies to its President and Treasurer. A copy of the code of ethics is filed as an exhibit to this Form N-CSR.

(c) During the period covered by this report, there were no amendments to the provisions of the code of ethics adopted in Item 2(a) above.

(d) During the period covered by this report, there were no implicit or explicit waivers to the provisions of the code of ethics adopted in Item 2(a) above.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT

The Board of Trustees of Wells Fargo 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), (b), (c), (d) The following table presents aggregate fees billed in each of the last two fiscal years for services rendered

to the Registrant by the Registrant’s principal accountant. These fees were billed to the registrant and were approved by

the Registrant’s audit committee.

	Fiscal year ended December 31, 2015		Fiscal year ended December 31, 2014
Audit fees	$	268,260	$	268,260
Audit-related fees		—		—
Tax fees (1)		21,250		21,130
All other fees		—		—
	$	289,510	$	289,390

⁽¹⁾  Tax fees consist of fees for tax compliance, tax advice, tax planning and excise tax.

(e) The Chairman of the Audit Committees is authorized to pre-approve: (1) audit services 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.

(f) Not applicable

(g) Not applicable

(h) Not applicable

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS

Not applicable.

ITEM 6. INVESTMENTS

A Portfolio of Investments for each series of Wells Fargo Variable Trust is included as part of the report to shareholders filed under Item 1 of this Form.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not applicable.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not applicable.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS

Not applicable.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees that have been implemented since the registrant’s last provided disclosure in response to the requirements of this Item.

ITEM 11. CONTROLS AND PROCEDURES

(a) The President and Treasurer have concluded that the Wells Fargo 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 fiscal quarter of the period covered by this report that materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

ITEM 12. EXHIBITS

(a)(1) Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as Exhibit COE.

(a)(2) Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.

(a)(3) Not applicable.

(b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is filed and attached hereto as Exhibit 99.906CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Wells Fargo Variable Trust
By:
	/s/ Karla M. Rabusch
	Karla M. Rabusch
	President
Date: February 25, 2016

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the date indicated.

Wells Fargo Variable Trust
By:
	/s/ Karla M. Rabusch
	Karla M. Rabusch
	President
Date: February 25, 2016
By:
	/s/ Jeremy DePalma
	Jeremy DePalma
	Treasurer
Date: February 25, 2016