UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-09253
Wells Fargo Funds Trust
(Exact name of registrant as specified in charter)
525 Market St., San Francisco, CA 94105
(Address of principal executive offices) (Zip code)
C. David Messman
Wells Fargo Funds Management, LLC
525 Market St., San Francisco, CA 94105
(Name and address of agent for service)
Registrant's telephone number, including area code: 800-643-9691
Date of fiscal year end: September 30, 2005
Date of reporting period: March 31, 2006
ITEM 1. REPORT TO SHAREHOLDERS
[LOGO]
WELLS ADVANTAGE
FARGO FUNDS
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MARCH 31, 2006
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Semi-Annual Report
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WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
Wells Fargo Advantage Asia Pacific Fund
Wells Fargo Advantage Overseas Fund
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
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Table of Contents
Letter to Shareholders .................................................... 1
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Performance Highlights
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Asia Pacific Fund ...................................................... 2
Overseas Fund .......................................................... 4
Fund Expenses (Unaudited) ................................................. 6
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Portfolio of Investments
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Asia Pacific Fund ...................................................... 7
Overseas Fund .......................................................... 10
Financial Statements
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Statements of Assets and Liabilities ................................... 14
Statements of Operations ............................................... 15
Statements of Changes in Net Assets .................................... 16
Financial Highlights ................................................... 18
Notes to Financial Highlights ............................................. 20
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Notes to Financial Statements ............................................. 21
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Other Information (Unaudited) ............................................. 26
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List of Abbreviations ..................................................... 32
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NOT FDIC INSURED-NO BANK GUARANTEE-MAY LOSE VALUE
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THIS PAGE IS INTENTIONALLY LEFT BLANK --
LETTER TO SHAREHOLDERS WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
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DEAR VALUED SHAREHOLDER,
Enclosed please find the WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
semi-annual report for the six-month period that ended March 31, 2006. On the
following pages, you will find a discussion of each Fund that includes
performance highlights, changes to the Fund, and the portfolio managers'
strategic outlook. You will also find facts and figures about each Fund.
GLOBAL ECONOMY
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Global economic activity remained strong during the past six months. This
continued strength has helped to counterbalance higher energy and basic material
prices, as well as more restrictive monetary policies. Both the European Central
Bank and Federal Reserve Board continued to raise interest rates during the
period, which, given their collective impact, may help to keep prices stable by
restraining access to money for development and investment. The Bank of Japan
followed in their footsteps and in March 2006 announced the end to its
five-year, deflation-fighting policy by taking its first step toward increasing
interest rates from zero percent. If energy and commodity prices continue to
rise, central banks may persist in raising interest rates in an attempt to ward
off inflation. Many companies and countries will continue to monitor the
economic progress of the United States as well, because the strength and growth
of the world's largest economy continues to have great bearing on its
international business partners.
INTERNATIONAL STOCKS
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International stocks continued to perform admirably in the fourth quarter
of 2005 and through the first quarter of 2006, with the Morgan Stanley Capital
International Europe, Australasia, and Far East (MSCI EAFE) Index 1 ending the
six-month period with a total return of 13.86%. The dollar was generally flat
during the period after experiencing slight appreciation in the fourth quarter
of 2005 and then experiencing slight depreciation in the first quarter of 2006.
Japan, which was one of the strongest-performing countries in the fourth
quarter, continued to move higher during the start of 2006 but at a more
moderate pace. The ongoing economic recovery in Japan continued to be validated
with the release of new economic data. Emerging markets remained among the top
performers during the period as investors continued to invest in the economic
growth and increasing affluence of these up-and-coming economies.
LOOKING AHEAD
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Many factors can affect the stability of global economic activity,
including monetary policies, war, natural disasters, terrorism, and political
uncertainty. That's why we believe that successful investing includes taking a
balanced, long-term approach that may include domestic and international
equities across several asset classes. While diversification may not prevent
losses in a downturn, it may help to reduce them and keep you on track to reach
your financial goals. To help you reach your diversification goals, we offer
funds across every key category, each guided by skillful, independent money
managers--our subadvisers--chosen for their focused attention to a particular
investment style. We believe that our insistence on seeking outstanding money
managers who share our dedication to pursuing consistent, long-term results
offers our investors the firm footing they need to navigate changing market
conditions as they move forward to their financial destinations.
Thank you for choosing WELLS FARGO ADVANTAGE FUNDS(SM)--we appreciate your
confidence in us. If you have any questions about your investment, please
contact your investment professional, or call us at 1-800-222-8222. You may also
visit our Web site at WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
Sincerely,
/s/ Karla M. Rabusch
Karla M. Rabusch
President
WELLS FARGO ADVANTAGE FUNDS
1 The Morgan Stanley Capital International Europe, Australasia, and Far East
("MSCI EAFE") Index is an unmanaged group of securities widely regarded by
investors to be representations of the stock markets of Europe, Australasia, and
the Far East. You cannot invest directly in an Index.
1
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS PERFORMANCE HIGHLIGHTS
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WELLS FARGO ADVANTAGE ASIA PACIFIC FUND
INVESTMENT OBJECTIVE
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The WELLS FARGO ADVANTAGE ASIA PACIFIC FUND (the Fund) seeks long-term
capital appreciation.
ADVISER SUBADVISER
Wells Fargo Funds Management, LLC Wells Capital Management Incorporated
FUND MANAGER FUND INCEPTION DATE
Anthony L. T. Cragg 12/31/1993
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
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The Fund's Investor Class shares returned 24.04% 1 for the six-month
period that ended March 31, 2006, outperforming its benchmark, the MSCI AC Asia
Pacific Index 2, which returned 16.69% during the same period.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED. CURRENT
MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB SITE
- -WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
INVESTOR CLASS SHARES ARE SOLD WITHOUT A FRONT-END SALES CHARGE OR
CONTINGENT DEFERRED SALES CHARGE. OTHER FEES AND EXPENSES APPLY TO AN INVESTMENT
IN THE FUND AND ARE DESCRIBED IN THE FUND'S CURRENT PROSPECTUS.
THE FUND HAS A REDEMPTION FEE OF 2.00% DEDUCTED FROM THE NET PROCEEDS OF
SHARES REDEEMED OR EXCHANGED WITHIN 30 DAYS AFTER PURCHASE. PERFORMANCE DATA
DOES NOT REFLECT THE DEDUCTION OF THIS FEE, WHICH, IF REFLECTED, WOULD REDUCE
THE PERFORMANCE.
PLEASE KEEP IN MIND THAT HIGH DOUBLE-DIGIT RETURNS WERE PRIMARILY ACHIEVED
DURING FAVORABLE MARKET CONDITIONS. YOU SHOULD NOT EXPECT THAT SUCH FAVORABLE
RETURNS CAN BE CONSISTENTLY ACHIEVED. A FUND'S PERFORMANCE, ESPECIALLY FOR VERY
SHORT TIME PERIODS, SHOULD NOT BE THE SOLE FACTOR IN MAKING YOUR INVESTMENT
DECISION.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
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Once again, the Fund's substantial outperformance during the period
derived from favorable stock selection, whose large contribution to results was
partially offset by a slight negative impact from country allocation. At the
stock selection level, our biggest gains came from Australia and Hong Kong/China
while selection in South Korea was least effective. From a country allocation
perspective compared to the benchmark, underweighting South Korea and
overweighting Singapore and Japan helped the most, while underweighting
strong-performing Australia and China detracted from performance.
The Fund's two best-performing holdings were in China and India,
respectively. Zijin Mining gained from higher gold prices and increased
affluence among Chinese consumers, while Bombay Dyeing benefited from its large
holdings in the dynamic Bombay property market. The Fund's next-best performer
was Hong Kong-based Shun Tak, a major player in the booming Macau gambling
market. Our two weakest performers were both representatives of Japan's small
cap market, which did not fare well during the country's broad stock-market
correction. These holdings were investment company Sparx Asset Management and
Intelligent Wave, a maker of software for financial companies. Our next-biggest
laggard was Australia-based Newcrest Mining, which was hurt by disappointing
mine-production results.
WHAT CHANGES DID YOU MAKE TO THE FUND'S HOLDINGS DURING THE PERIOD?
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We took some profits in Japan and reduced our weighting there from about
39% to about 33% of portfolio assets. Nevertheless, we remain optimistic about
that market's prospects. We also increased our exposure to Hong Kong/China from
about 10% to 12% to take fuller advantage of the exciting growth opportunities
we saw in China. Additionally, we remained very comfortable with the Fund's
large exposure to Singapore--approximately 15% of the portfolio--whose property
markets continue to perform well and where we have identified several stocks
that we believe will continue to benefit from regional and Chinese economic
growth.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
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The Fund continues to be structured with what we believe is a healthy
balance of larger, more conservative holdings on the one hand and more
adventurous, typically smaller investment opportunities on the other. Specific
investment themes continue to include precious metals, resources, commodities,
property, health care, education, travel and leisure, environmental services,
alternative energy, and water. While we remain aware of short-term events that
can unsettle markets, we remain very confident in Asia's long-term growth
prospects. We believe that the Fund is well positioned to take advantage of a
variety of investment opportunities--from the rapid growth seen in China and
India to the recovery situations in Japan and Taiwan.
STOCK FUNDS SHOULD ONLY BE CONSIDERED FOR LONG-TERM GOALS AS VALUES
FLUCTUATE IN RESPONSE TO THE ACTIVITIES OF INDIVIDUAL COMPANIES AND GENERAL
MARKET AND ECONOMIC CONDITIONS. FOREIGN INVESTMENTS PRESENT CERTAIN RISKS THAT
MAY NOT BE PRESENT IN DOMESTIC INVESTMENTS, INCLUDING CURRENCY FLUCTUATION, THE
POTENTIAL FOR DIPLOMATIC AND POLITICAL INSTABILITY, REGULATORY AND LIQUIDITY
RISKS, FOREIGN TAXATION AND DIFFERENCES IN AUDITING AND OTHER FINANCIAL
STANDARDS. THESE RISKS ARE GENERALLY INTENSIFIED IN EMERGING MARKETS. THE FUND'S
INVESTMENT PROCESS MAY, AT TIMES, RESULT IN HIGHER THAN AVERAGE PORTFOLIO
TURNOVER AND INCREASED TRADING EXPENSES, AND MAY GENERATE HIGHER SHORT-TERM
CAPITAL GAINS. INVESTMENT STRATEGIES THAT EMPHASIZE PARTICULAR MARKET SEGMENTS
OR FEWER SECURITIES TEND TO INCREASE THE TOTAL RISK OF AN INVESTMENT (RELATIVE
TO THE BROADER MARKET). THIS FUND IS EXPOSED TO SMALL COMPANY SECURITIES RISK
AND REGIONAL RISK. CONSULT THE FUND'S PROSPECTUS FOR ADDITIONAL INFORMATION ON
THESE AND OTHER RISKS.
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The views expressed are as of March 31, 2006, and are those of the Fund's
manager. The views are subject to change at any time in response to changing
circumstances in the market and are not intended to predict or guarantee the
future performance of any individual security, market sector or the markets
generally, or the WELLS FARGO ADVANTAGE ASIA PACIFIC FUND.
2
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
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AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF MARCH 31, 2006)
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6-Month* 1-Year 5-Year 10-Year
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Asia Pacific Fund - Investor Class (Incept. Date 12/31/1993) 24.04 40.91 19.95 5.82
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Benchmark
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MSCI AC Asia Pacific Index 2 16.69 33.86 11.80 2.04
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* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FUND CHARACTERISTICS 3 (AS OF MARCH 31, 2006)
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Beta** 1.00
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Price to Earnings Ratio (trailing 12 months) 22.90x
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Price to Book Ratio 2.37x
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Median Market Cap. ($B) $ 1.06
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Portfolio Turnover*** 88%
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** A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE MSCI AC ASIA
PACIFIC INDEX BETA IS 1.00 BY DEFINITION.
*** THIS MEASURE IS BASED ON SIX MONTHS OF THE FUND'S ACTIVITY.
PORTFOLIO COMPOSITION 3 (AS OF MARCH 31, 2006)
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[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Australia 6%
Bermuda 1%
China 2%
Hong Kong 10%
India 6%
Indonesia 4%
Japan 34%
Malaysia 3%
Philippines 2%
Singapore 17%
South Korea 3%
Taiwan 7%
Thailand 4%
Vietnam 1%
TEN LARGEST EQUITY HOLDINGS 3,4 (AS OF MARCH 31, 2006)
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Bombay Dyeing & Manufacturing Company Limited 2.23%
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Nomura Holdings Incorporated 2.05%
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Sharp Corporation 2.01%
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East Japan Railway Company 1.95%
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Keppel Corporation Limited 1.91%
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Sega Sammy Holdings Incorporated 1.87%
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Mitsubishi UFJ Financial Group Incorporated 1.85%
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Zijin Mining Group Company Limited Class H 1.77%
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Oxiana Limited 1.73%
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Fibrechem Technologies Limited 1.64%
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GROWTH OF $10,000 INVESTMENT 5 (AS OF MARCH 31, 2006)
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[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
WELLS FARGO ADVANTAGE ASIA PACIFIC MSCI AC Asia Pacific
FUND - Investor Class Index
3/31/1996 10,000 10000
4/30/1996 10,560 10518
5/31/1996 10,354 10088
6/30/1996 10,356 10081
7/31/1996 9,625 9573
8/31/1996 9,704 9354
9/30/1996 9,674 9619
10/31/1996 9,407 9152
11/30/1996 9,684 9405
12/31/1996 9,556 8958
1/31/1997 9,576 8345
2/28/1997 9,816 8501
3/31/1997 9,436 8180
4/30/1997 9,346 8349
5/31/1997 9,806 9066
6/30/1997 9,931 9630
7/31/1997 9,810 9447
8/31/1997 8,685 8417
9/30/1997 8,504 8349
10/31/1997 7,388 7288
11/30/1997 6,885 6851
12/31/1997 6,594 6532
1/31/1998 6,503 6850
2/28/1998 6,908 7161
3/31/1998 6,795 6799
4/30/1998 6,581 6638
5/31/1998 5,949 6134
6/30/1998 5,389 6056
7/31/1998 5,359 5972
8/31/1998 4,615 5246
9/30/1998 4,798 5266
10/31/1998 5,532 6161
11/30/1998 6,184 6498
12/31/1998 6,387 6699
1/31/1999 6,428 6752
2/28/1999 6,204 6607
3/31/1999 6,866 7433
4/30/1999 7,977 7992
5/31/1999 8,099 7578
6/30/1999 9,433 8371
7/31/1999 9,647 8892
8/31/1999 9,556 8859
9/30/1999 9,464 9111
10/31/1999 9,800 9443
11/30/1999 11,216 9949
12/31/1999 12,521 10604
1/31/2000 12,057 10231
2/29/2000 12,880 9979
3/31/2000 12,606 10617
4/30/2000 10,529 9817
5/31/2000 9,212 9256
6/30/2000 9,981 9903
7/31/2000 9,370 8979
8/31/2000 10,002 9356
9/30/2000 8,938 8747
10/31/2000 8,210 8195
11/30/2000 8,126 7900
12/31/2000 7,895 7588
1/31/2001 8,194 7792
2/28/2001 7,917 7437
3/31/2001 7,087 7010
4/30/2001 7,408 7397
5/31/2001 7,364 7384
6/30/2001 7,264 7065
7/31/2001 6,832 6618
8/31/2001 7,065 6487
9/30/2001 6,035 5761
10/31/2001 6,146 5874
11/30/2001 6,777 6154
12/31/2001 6,908 6015
1/31/2002 7,277 5791
2/28/2002 7,389 5950
3/31/2002 7,646 6296
4/30/2002 7,858 6525
5/31/2002 8,149 6781
6/30/2002 7,780 6436
7/31/2002 7,277 6030
8/31/2002 7,087 5984
9/30/2002 6,394 5623
10/31/2002 6,193 5473
11/30/2002 6,461 5701
12/31/2002 6,371 5513
1/31/2003 6,247 5400
2/28/2003 6,180 5356
3/31/2003 6,033 5181
4/30/2003 6,146 5258
5/31/2003 6,776 5549
6/30/2003 7,328 5915
7/31/2003 7,756 6174
8/31/2003 8,566 6706
9/30/2003 9,118 7004
10/31/2003 9,793 7426
11/30/2003 9,579 7265
12/31/2003 10,210 7768
1/31/2004 10,528 7968
2/29/2004 10,790 8076
3/31/2004 11,350 8706
4/30/2004 10,814 8227
5/31/2004 10,380 7989
6/30/2004 10,597 8245
7/31/2004 10,232 7900
8/31/2004 10,369 8047
9/30/2004 10,757 8078
10/31/2004 10,939 8289
11/30/2004 11,886 8818
12/31/2004 12,298 9212
1/31/2005 12,707 9109
2/28/2005 13,044 9430
3/31/2005 12,490 9147
4/30/2005 12,343 8956
5/31/2005 12,355 8972
6/30/2005 12,650 9113
7/31/2005 13,180 9363
8/31/2005 13,352 9664
9/30/2005 14,189 10492
10/31/2005 13,770 10143
11/30/2005 14,336 10648
12/31/2005 15,698 11402
1/31/2006 16,683 12071
2/28/2006 16,386 11990
3/31/2006 17,600 12244
1 The Fund's Adviser has committed through April 30, 2007, to waive fees and/or
reimburse expenses to the extent necessary to maintain a certain net operating
expense ratio for the Fund. Actual reductions of operating expenses can increase
total return to shareholders. Without these reductions, the Fund's returns would
have been lower.
Performance shown for the Investor Class shares of the WELLS FARGO
ADVANTAGE ASIA PACIFIC FUND for periods prior to April 11, 2005, reflects the
performance of the Investor Class shares of the Strong Asia Pacific Fund, its
predecessor fund.
2 The Morgan Stanley Capital International All Country Asia Pacific ("MSCI AC
Asia Pacific") Index is a free float-adjusted market capitalization index that
is designed to measure the equity market performance in the Asia Pacific
region.As of May 2005, the MSCI AC Asia Pacific Index consisted of 14 emerging
and developed market countries. You cannot invest directly in an Index.
3 Fund characteristics,ten largest equity holdings and portfolio composition are
subject to change.Cash and cash equivalents are not reflected in the
calculations of fund characteristics, ten largest equity holdings and portfolio
composition.
4 The Ten Largest Equity Holdings are calculated based on the market value of
the securities divided by total market value of the portfolio.
5 The chart compares the performance of the WELLS FARGO ADVANTAGE ASIA PACIFIC
FUND Investor Class shares for the most recent ten years with the MSCI AC Asia
Pacific Index. The chart assumes a hypothetical investment of $10,000 in
Investor Class shares and reflects all operating expenses.
3
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS PERFORMANCE HIGHLIGHTS
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WELLS FARGO ADVANTAGE OVERSEAS FUND
INVESTMENT OBJECTIVE
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The WELLS FARGO ADVANTAGE OVERSEAS FUND (the Fund) seeks long-term capital
appreciation.
ADVISER SUBADVISER
Wells Fargo Funds Management, LLC New Star Institutional Managers
Limited
FUND MANAGERS FUND INCEPTION DATE
Mark Beale 06/30/1998
Brian Coffey
Richard Lewis
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
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The Fund's Investor Class shares returned 10.11% 1 for the six-month
period that ended March 31, 2006, underperforming its benchmark, the MSCI EAFE
Index 2, which returned 13.86% during the same period.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED. CURRENT
MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB SITE
- -WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
INSTITUTIONAL CLASS AND INVESTOR CLASS SHARES ARE SOLD WITHOUT A FRONT-END
SALES CHARGE OR CONTINGENT DEFERRED SALES CHARGE. OTHER FEES AND EXPENSES APPLY
TO AN INVESTMENT IN THE FUND AND ARE DESCRIBED IN THE FUND'S CURRENT PROSPECTUS.
THE FUND HAS A REDEMPTION FEE OF 2.00% DEDUCTED FROM THE NET PROCEEDS OF
SHARES REDEEMED OR EXCHANGED WITHIN 30 DAYS AFTER PURCHASE. PERFORMANCE DATA
DOES NOT REFLECT THE DEDUCTION OF THIS FEE, WHICH, IF REFLECTED, WOULD REDUCE
THE PERFORMANCE.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
The Fund's disappointing performance was a result of poor stock selection
in many regions but particularly in Japan. Compared to the benchmark, the Fund
had been overweighted in high-quality Japanese companies whose return on
invested capital (ROIC) exceeded their cost of capital and underweighted in
Japanese banks, which historically have failed to deliver economic profits to
shareholders. However, high-quality stocks proved to be overly defensive
following the September reelection of Prime Minister Junichiro Koizumi. After
the election, bank stocks led the Japanese market, while our high-ROIC
securities failed to keep pace despite their good absolute returns.
Our European holdings also disappointed, as our strategy of underweighting
industrial and cyclical stocks compared to the benchmark proved, in hindsight,
to be incorrect. As corporate earnings estimates continued to rise, highly
economically sensitive stocks performed much better than we expected--to the
detriment of the high-ROIC pharmaceutical and energy companies we were favoring.
Our holdings in European financials and our modest overweighting in emerging
markets were positive influences on performance, but they were not enough to
counter these other negative influences.
WHAT CHANGES DID YOU MAKE TO THE FUND'S HOLDINGS DURING THE PERIOD?
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Many of our changes were in Japan. We added to the portfolio's Japanese
non-bank financials, which we believed could deliver strong profit growth in the
country's anticipated reflationary environment. In the insurance sector, we
added to Millea Holdings and Mitsui Sumitomo. The sector's returns have been
improving with the stock market, and restructuring and consolidation among
insurance companies has led to improved profitability. In the banking sector, we
bought shares of Sumitomo Trust after a correction in the company's stock price
made it more attractively valued. Unlike many other banks, Sumitomo is subject
to operational improvement and is expected to benefit from strong fee growth as
Japan's economy improves. These purchases were financed through sales of less
promising high-ROIC names, such as food additives company Ajinomoto and
furniture retailer Shimachu. Both companies have delivered steady gains, but we
believe that their shares are likely to remain overlooked in the current
environment.
In Europe, we maintained our exposure to the profitable financial sector.
We added positions in Commerzbank and Allianz, an insurance company. Both
companies have enjoyed improving returns on assets, and we anticipate improved
profitability from the firms. We also bought shares of French power utility
Suez, which we believe could continue to benefit from strong pricing in power
and carbon emission certificates.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
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We anticipate that international stocks could continue to do well on the
back of a strengthening global economy. Companies continue to upgrade their
earnings expectations, particularly European and Japanese banks and insurers.
Investors in Europe and Japan are returning to the stock market, which has been
further supported by merger and acquisition activity. One potential headwind for
international stock markets is the prospect for higher interest rates from the
United States, Japan, and Europe. In such an event, however, we believe that the
buoyant industrial and cyclical sectors would likely suffer more than the
high-ROIC areas, such as pharmaceuticals and oil companies, in which the Fund is
positioned.
STOCK FUNDS SHOULD ONLY BE CONSIDERED FOR LONG-TERM GOALS AS VALUES
FLUCTUATE IN RESPONSE TO THE ACTIVITIES OF INDIVIDUAL COMPANIES AND GENERAL
MARKET AND ECONOMIC CONDITIONS. FOREIGN INVESTMENTS PRESENT CERTAIN RISKS THAT
MAY NOT BE PRESENT IN DOMESTIC INVESTMENTS, INCLUDING CURRENCY FLUCTUATION, THE
POTENTIAL FOR DIPLOMATIC AND POLITICAL INSTABILITY, REGULATORY AND LIQUIDITY
RISKS, FOREIGN TAXATION AND DIFFERENCES IN AUDITING AND OTHER FINANCIAL
STANDARDS. THESE RISKS ARE GENERALLY INTENSIFIED IN EMERGING MARKETS. INVESTMENT
STRATEGIES THAT EMPHASIZE PARTICULAR MARKET SEGMENTS OR FEWER SECURITIES TEND TO
INCREASE THE TOTAL RISK OF AN INVESTMENT (RELATIVE TO THE BROADER MARKET). THIS
FUND IS EXPOSED TO SMALL COMPANY SECURITIES RISK. CONSULT THE FUND'S PROSPECTUS
FOR ADDITIONAL INFORMATION ON THESE AND OTHER RISKS.
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2006, and are those of the Fund's
managers. The views are subject to change at any time in response to changing
circumstances in the market and are not intended to predict or guarantee the
future performance of any individual security, market sector or the markets
generally, or the WELLS FARGO ADVANTAGE OVERSEAS FUND.
4
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
Life of
6-Month* 1-Year 5-Year Fund
- --------------------------------------------------------------------------------------------------------------
Overseas Fund - Investor Class (Incept. Date 06/30/1998) 10.11 17.51 6.50 6.35
- --------------------------------------------------------------------------------------------------------------
Overseas Fund - Institutional Class (Incept. Date 12/31/2002) 10.43 18.09 6.91 6.61
- --------------------------------------------------------------------------------------------------------------
Benchmark
- --------------------------------------------------------------------------------------------------------------
MSCI EAFE Index 2 13.86 24.41 9.63 6.37
- --------------------------------------------------------------------------------------------------------------
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FUND CHARACTERISTICS 3 (AS OF MARCH 31, 2006)
- -------------------------------------------------------------------------
Beta** 0.97
- -------------------------------------------------------------------------
Price to Earnings Ratio (trailing 12 months) 18.52x
- -------------------------------------------------------------------------
Price to Book Ratio 2.50x
- -------------------------------------------------------------------------
Median Market Cap ($B) $ 19.30
- -------------------------------------------------------------------------
Portfolio Turnover 25%
- -------------------------------------------------------------------------
** A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE MSCI EAFE
INDEX BETA IS 1.00 BY DEFINITION.
*** THIS MEASURE IS BASED ON SIX MONTHS OF THE FUND'S ACTIVITY.
PORTFOLIO COMPOSITION 3 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Belgium 1%
China 1%
Denmark 1%
France 14%
Germany 7%
Greece 1%
Hong Kong 5%
Italy 4%
Japan 24%
Netherlands 5%
Norway 2%
Russia 1%
Spain 2%
Sweeden 1%
Switzerland 7%
Thailand 1%
United Kingdom 19%
Australia 4%
TEN LARGEST EQUITY HOLDINGS 3,4 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
Sumitomo Trust & Banking Company Limited 2.67%
- -------------------------------------------------------------------------
Aeon Company Limited 2.64%
- -------------------------------------------------------------------------
Vodafone Group plc 2.34%
- -------------------------------------------------------------------------
Total SA 2.28%
- -------------------------------------------------------------------------
Roche Holding AG 2.22%
- -------------------------------------------------------------------------
HSBC Holdings plc 2.14%
- -------------------------------------------------------------------------
Royal Dutch Shell plc Class A 2.05%
- -------------------------------------------------------------------------
Legal & General Group plc 1.86%
- -------------------------------------------------------------------------
ENI SpA 1.84%
- -------------------------------------------------------------------------
Sanofi-Aventis SA 1.82%
- -------------------------------------------------------------------------
GROWTH OF $10,000 INVESTMENT 5 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
WELLS FARGO ADVANTAGE OVERSEAS
FUND - Investor Class MSCI EAFE Index
6/30/1998 10,000 10000
7/31/1998 10,570 10101
8/31/1998 9,290 9260
9/30/1998 8,370 9005
10/31/1998 8,200 9943
11/30/1998 8,950 10452
12/31/1998 10,460 10865
1/31/1999 11,600 10832
2/28/1999 11,080 10575
3/31/1999 11,410 11016
4/30/1999 11,420 11462
5/31/1999 11,060 10871
6/30/1999 12,240 11295
7/31/1999 12,860 11631
8/31/1999 12,800 11674
9/30/1999 13,380 11792
10/31/1999 14,370 12234
11/30/1999 17,330 12659
12/31/1999 20,530 13795
1/31/2000 19,880 12919
2/29/2000 23,430 13267
3/31/2000 21,610 13782
4/30/2000 19,310 13057
5/31/2000 18,080 12738
6/30/2000 19,040 13236
7/31/2000 18,020 12682
8/31/2000 18,520 12792
9/30/2000 16,280 12169
10/31/2000 15,170 11882
11/30/2000 13,850 11436
12/31/2000 13,660 11842
1/31/2001 14,090 11836
2/28/2001 12,770 10949
3/31/2001 11,760 10218
4/30/2001 12,720 10928
5/31/2001 12,250 10543
6/30/2001 11,980 10111
7/31/2001 11,640 9927
8/31/2001 11,360 9676
9/30/2001 10,200 8696
10/31/2001 10,410 8919
11/30/2001 10,780 9248
12/31/2001 11,044 9302
1/31/2002 10,485 8808
2/28/2002 10,434 8870
3/31/2002 10,871 9350
4/30/2002 10,861 9412
5/31/2002 10,851 9531
6/30/2002 10,485 9152
7/31/2002 9,336 8249
8/31/2002 9,305 8230
9/30/2002 8,431 7346
10/31/2002 8,654 7740
11/30/2002 8,959 8092
12/31/2002 8,837 7820
1/31/2003 8,512 7494
2/28/2003 8,410 7321
3/31/2003 8,288 7178
4/30/2003 8,959 7881
5/31/2003 9,478 8359
6/30/2003 9,590 8561
7/31/2003 9,763 8768
8/31/2003 9,966 8980
9/30/2003 10,159 9256
10/31/2003 10,607 9833
11/30/2003 10,942 10051
12/31/2003 11,680 10836
1/31/2004 11,925 10989
2/29/2004 12,192 11243
3/31/2004 12,174 11306
4/30/2004 11,754 11050
5/31/2004 11,908 11088
6/30/2004 12,194 11331
7/31/2004 11,775 10962
8/31/2004 11,887 11011
9/30/2004 12,256 11298
10/31/2004 12,573 11683
11/30/2004 13,269 12481
12/31/2004 13,816 13029
1/31/2005 13,495 12790
2/28/2005 14,095 13342
3/31/2005 13,714 13007
4/30/2005 13,351 12701
5/31/2005 13,300 12708
6/30/2005 13,548 12877
7/31/2005 13,962 13272
8/31/2005 14,293 13608
9/30/2005 14,635 14213
10/31/2005 14,179 13798
11/30/2005 14,273 14137
12/31/2005 14,905 14794
1/31/2006 15,844 15702
2/28/2006 15,631 15668
3/31/2006 16,115 16185
1 The Fund's Adviser has committed through April 30, 2007, to waive fees and/or
reimburse expenses to the extent necessary to maintain a certain net operating
expense ratio for the Fund. Actual reductions of operating expenses can increase
total return to shareholders. Without these reductions, the Fund's returns would
have been lower.
Performance shown for the Institutional Class shares of the WELLS FARGO
ADVANTAGE OVERSEAS FUND for periods prior to April 11, 2005, reflects the
performance of the Institutional Class shares of the Strong Overseas Fund, its
predecessor fund, and for periods prior to December 31,2002, reflects the
performance of the Investor Class shares of the Strong Overseas Fund.
Performance shown for the Investor Class shares of the WELLS FARGO ADVANTAGE
OVERSEAS FUND for periods prior to April 11, 2005, reflects the performance of
the Investor Class shares of the Strong Overseas Fund, its predecessor fund.
2 The Morgan Stanley Capital International Europe,Australasia and Far East
("MSCI EAFE") Index is an unmanaged group of securities widely regarded by
investors to be representations of the stock markets of Europe, Australasia and
the Far East. You cannot invest directly in an Index.
3 Fund characteristics, ten largest equity holdings and portfolio composition
are subject to change. Cash and cash equivalents are not reflected in the
calculations of fund characteristics, ten largest equity holdings and portfolio
composition.
4 The Ten Largest Equity Holdings are calculated based on the market value of
the securities divided by total market value of the portfolio.
5 The chart compares the performance of the WELLS FARGO ADVANTAGE OVERSEAS FUND
Investor Class shares for the life of the Fund with the MSCI EAFE Index. The
chart assumes a hypothetical investment of $10,000 in Investor Class shares and
reflects all operating expenses.
5
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS FUND EXPENSES (UNAUDITED)
- --------------------------------------------------------------------------------
As a shareholder of the Fund, you incur two types of costs: (1)
transaction costs, including sales charges (loads) on purchase payments,
redemption fees (if any) and exchange fees (if any); and (2) ongoing costs,
including management fees; distribution [and/or service] (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 period and held for the entire period (October 1, 2005 to March 31,
2006).
ACTUAL EXPENSES
The "Actual" line of the table below provides information about actual
account values and actual expenses. You may use the information in this line,
together with the amount you invested, to estimate the expenses that you paid
over the period. Simply divide your account value by $1,000 (for example, an
$8,600 account value divided by $1,000 = 8.6), then multiply the result by the
number in the "Actual" line under the heading entitled "Expenses Paid During
Period" for your applicable class of shares to estimate the expenses you paid on
your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The "Hypothetical" line of the table below provides information about
hypothetical account values and hypothetical expenses based on the Fund's actual
expense ratio and an assumed rate of return of 5% per year before expenses,
which is not the Fund's actual return. The hypothetical account values and
expenses may not be used to estimate the actual ending account balance or
expenses you paid for the period. You may use this information to compare the
ongoing costs of investing in the Fund and other funds. To do so, compare this
5% hypothetical example with the 5% hypothetical examples that appear in the
shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight
your ongoing costs only and do not reflect any transactional costs, such as
sales charges (loads), redemption fees, or exchange fees. Therefore, the
"Hypothetical" line of the table is useful in comparing ongoing costs only, and
will not help you determine the relative total costs of owning different funds.
In addition, if these transactional costs were included, your costs would have
been higher.
Beginning Ending
Account Account Expenses Net Annual
Value Value Paid During Expense
Wells Fargo Advantage Asia Pacific Fund 10/01/2005 03/31/2006 Period (1) Ratio
- -----------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Asia Pacific Fund - Investor Class
Actual $ 1,000.00 $ 1,240.40 $ 9.27 1.65%
- -----------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,016.65 $ 8.35 1.65%
Wells Fargo Advantage Overseas Fund
- -----------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Overseas Fund - Institutional
Class Actual $ 1,000.00 $ 1,104.30 $ 4.98 0.95%
- -----------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,020.19 $ 4.78 0.95%
- -----------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Overseas Fund - Investor Class
Actual $ 1,000.00 $ 1,101.10 $ 7.65 1.46%
- -----------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,017.65 $ 7.34 1.46%
(1) Expenses are equal to the Fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by the number of days in the
most recent fiscal half-year divided by the number of days in the fiscal year
(to reflect the one-half year period).
6
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
- --------------------------------------------------------------------------------
ASIA PACIFIC FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
INVESTMENT COMPANIES - 0.01%
BERMUDA - 0.01%
10,754 CHINA HEARTLAND FUND LIMITED (STOCK FUNDS)+ (A) $ 41,080
---------------
TOTAL INVESTMENT COMPANIES (COST $53,770) 41,080
---------------
COMMON STOCKS - 89.78%
AUSTRALIA - 5.78%
3,134,166 KIMBERLEY DIAMOND COMPANY (MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS)+ 4,083,630
2,300,000 LIHIR GOLD LIMITED (MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS)+ 4,396,348
54,600 MACQUARIE BANK LIMITED (HOLDING & OTHER INVESTMENT OFFICES) 2,528,224
1,078,843 OCEANA GOLD LIMITED (MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS)+ 536,780
2,600,000 OXIANA LIMITED (MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS)+ 4,988,398
9,485,531 PAN AUSTRALIAN RESOURCES LIMITED (METAL MINING)+ 1,833,489
18,366,869
---------------
BERMUDA - 1.29%
7,414,000 Xiwang Sugar Holdings Company Limited (Agricultural Services)+ 4,108,723
---------------
CHINA - 1.61%
6,500,000 ZIJIN MINING GROUP COMPANY LIMITED CLASS H (METAL MINING) 5,110,096
---------------
HONG KONG - 8.69%
893,000 CHINA SHINEWAY PHARMACEUTICAL GROUP LIMITED (HEALTH SERVICES) 736,576
8,356,000 FIRST PACIFIC COMPANY LIMITED (MISCELLANEOUS MANUFACTURING INDUSTRIES)+ 3,096,151
1,471,000 FU JI FOOD & CATERING SERVICES (EATING & DRINKING PLACES) 3,033,322
1,364,000 HONG KONG & CHINA GAS COMPANY LIMITED (OIL & GAS EXTRACTION) 3,296,109
558,000 HONG KONG EXCHANGES & CLEARING LIMITED (BUSINESS SERVICES) 3,365,626
19,500,000 JOYCE BOUTIQUE HOLDINGS LIMITED (APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR
MATERIALS)+ 1,181,186
11,112,000 MINMETALS RESOURCES LIMITED (PRIMARY METAL INDUSTRIES)+ 3,795,106
2,510,000 SHUN TAK HOLDINGS LIMITED (REAL ESTATE) 3,590,728
292,000 SWIRE PACIFIC LIMITED (BUSINESS SERVICES) 2,858,226
27,880,000 TECHPACIFIC CAPITAL LIMITED (SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES)+ 2,658,951
27,611,981
---------------
INDIA - 5.66%
210,800 APOLLO HOSPITALS ENTERPRISE LIMITED (HEALTH SERVICES) 2,400,752
481,000 BOMBAY DYEING & MANUFACTURING COMPANY LIMITED (TEXTILE MILL PRODUCTS) 6,442,157
581,891 E.I.D. PARRY LIMITED (CHEMICALS & ALLIED PRODUCTS) 3,743,063
938,000 INDIA CEMENTS LIMITED (STONE, CLAY, GLASS & CONCRETE PRODUCTS)+ 3,484,301
144,616 THOMAS COOK (INDIA) LIMITED (TRANSPORTATION SERVICES) 1,898,207
17,968,480
---------------
INDONESIA - 3.30%
23,000,000 BERLIAN LAJU TANKER (TRANSPORTATION SERVICES) 3,594,145
1,800,000 INTERNATIONAL NICKEL INDONESIA TBK (METAL MINING) 3,397,161
5,412,000 PT INDOSAT TBK (COMMUNICATIONS) 3,067,217
3,793,000 PT SUMMARECON AGUNG TBK (REAL ESTATE) 429,932
10,488,455
---------------
JAPAN - 30.17%
1,300 DENTSU INCORPORATED (BUSINESS SERVICES) 4,716,228
760 EAST JAPAN RAILWAY COMPANY (RAILROADS) 5,630,586
700,000 FUJI HEAVY INDUSTRIES LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 4,115,548
1,417,000 IB DAIWA CORPORATION (OIL & GAS EXTRACTION)+ 1,938,292
920 INTELLIGENT WAVE INCORPORATED (BUSINESS SERVICES) 2,993,713
60,000 JAFCO COMPANY LIMITED (HOLDING & OTHER INVESTMENT OFFICES) 4,526,763
170,000 KAO CORPORATION (CHEMICALS & ALLIED PRODUCTS) 4,477,485
7
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
ASIA PACIFIC FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
JAPAN (CONTINUED)
30,000 KYOCERA CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) $ 2,655,905
350 MITSUBISHI UFJ FINANCIAL GROUP INCORPORATED (DEPOSITORY INSTITUTIONS) 5,352,591
575 MIZUHO FINANCIAL GROUP INCORPORATED (BANKING) 4,704,545
147,000 NEOMAX COMPANY LIMITED (FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT) 4,458,709
236,000 NIKKO CORDIAL CORPORATION (FINANCIAL) 3,909,940
371,000 NISSHINBO INDUSTRIES INCORPORATED (TEXTILE MILL PRODUCTS) 4,157,596
266,000 NOMURA HOLDINGS INCORPORATED (SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES) 5,932,455
4,400 SBI HOLDINGS INCORPORATED (HOLDING & OTHER INVESTMENT OFFICES) 2,489,720
133,500 SEGA SAMMY HOLDINGS INCORPORATED (AMUSEMENT & RECREATION SERVICES) 5,421,665
328,000 SHARP CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 5,810,365
645,000 SHINSEI BANK LIMITED (DEPOSITORY INSTITUTIONS) 4,515,548
3,440 SPARX ASSET MANAGEMENT COMPANY LIMITED (HOLDING & OTHER INVESTMENT OFFICES) 4,413,254
51,000 TAKEDA PHARMACEUTICAL COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 2,907,477
209,000 TOKUYAMA CORPORATION (CHEMICALS & ALLIED PRODUCTS) 3,544,299
45,300 TOKYO ELECTRON LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 3,125,200
255,000 URBAN CORPORATION (REAL ESTATE) 4,068,734
95,866,618
---------------
MALAYSIA - 2.88%
490,000 GENTING BERHAD (HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES) 3,166,354
879,000 IOI CORPORATION BERHAD (AGRICULTURAL SERVICES) 3,174,147
7,641,500 TITAN CHEMICALS CORPORATION (CHEMICALS & ALLIED PRODUCTS) 2,821,656
9,162,157
---------------
NEW ZEALAND - 0.29%
855,460 CANWEST MEDIAWORKS (NZ) LIMITED (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 905,788
---------------
PHILIPPINES - 2.20%
626,140 PHILIPPINE STOCK EXCHANGE INCORPORATED (SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES &
SERVICES)+ 2,080,606
595,755 SM INVESTMENTS CORPORATION (HOLDING & OTHER INVESTMENT OFFICES) 2,666,690
6,500,000 UNIVERSAL ROBINA CORPORATION (TEXTILE MILL PRODUCTS) 2,255,180
7,002,476
---------------
SINGAPORE - 15.38%
3,720,000 ALLGREEN PROPERTIES LIMITED (REAL ESTATE) 3,591,423
1,073,000 CAPITAL & LIMITED (REAL ESTATE) 3,213,987
2,750,000 CHARTERED SEMICONDUCTOR MANUFACTURING LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT &
COMPONENTS, EXCEPT COMPUTER EQUIPMENT)+ 2,671,968
600,000 CITY DEVELOPMENTS LIMITED (REAL ESTATE) 4,010,273
290,000 DBS GROUP HOLDINGS LIMITED (DEPOSITORY INSTITUTIONS) 2,925,395
6,735,000 FIBRECHEM TECHNOLOGIES LIMITED (CHEMICALS & ALLIED PRODUCTS) 4,751,617
4,700,000 FUNG CHOI PRINTING & PACKAGING GROUP LIMITED (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 2,792,338
1,178,000 HO BEE INVESTMENT LIMITED (REAL ESTATE) 729,028
876,000 HONGKONG LAND HOLDINGS LIMITED (REAL ESTATE) 3,258,720
2,273,000 JURONG TECHNOLOGIES INDUSTRIAL CORPORATION LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY &
COMPUTER EQUIPMENT) 2,250,704
645,000 KEPPEL CORPORATION LIMITED (BUSINESS SERVICES) 5,508,556
4,170,000 KIM ENG HOLDINGS LIMITED (SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES) 3,948,448
5,300,000 LMA INTERNATIONAL NV (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL &
OPTICAL)+ 3,017,607
4,925,000 MACQUARIE MEAG PRIME REIT (REAL ESTATE INVESTMENT TRUSTS (REITS))+ 2,865,056
15,000,000 MEDIARING LIMITED (COMMUNICATIONS)+ 3,341,894
48,877,014
---------------
SOUTH KOREA - 2.34%
145,100 DAISHIN SECURITIES COMPANY LIMITED (SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES) 3,024,161
197,400 KENERTEC COMPANY LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 1,554,251
8
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
- --------------------------------------------------------------------------------
ASIA PACIFIC FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
SOUTH KOREA (CONTINUED)
105,800 LOTTE SHOPPING COMPANY LIMITED GDR (GENERAL MERCHANDISE STORES)+! $ 2,135,044
60,920 YOULCHON CHEMICAL COMPANY LIMITED (RUBBER & MISCELLANEOUS PLASTICS PRODUCTS) 711,653
7,425,109
---------------
TAIWAN - 6.31%
4,610,000 FORMOSA TAFFETA COMPANY LIMITED (TEXTILE MILL PRODUCTS) 2,400,265
7,822,000 FORMOSAN RUBBER GROUP INCORPORATED (RUBBER & MISCELLANEOUS PLASTICS PRODUCTS)+ 3,156,899
2,800,000 HIGHWEALTH CONSTRUCTION CORPORATION (REAL ESTATE) 2,355,007
1,733,000 LITE-ON IT CORPORATION (MISCELLANEOUS MANUFACTURING INDUSTRIES) 1,935,433
3,333,000 MERIDA INDUSTRY COMPANY LIMITED (MISCELLANEOUS MANUFACTURING INDUSTRIES) 2,176,921
4,615,000 TSRC CORPORATION (RUBBER & MISCELLANEOUS PLASTICS PRODUCTS)+ 2,978,703
2,735,000 WAFER WORKS CORPORATION (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 2,780,628
3,774,000 YUANTA CORE PACIFIC SECURITIES COMPANY (FINANCIAL SERVICES) 2,278,922
20,062,778
---------------
THAILAND - 3.24%
3,509,500 BANGKOK EXPRESSWAY PUBLIC COMPANY LIMITED (TRANSPORTATION SERVICES) 2,040,250
3,250,000 HANA MICROELECTRONICS PUBLIC COMPANY LIMITED (FOREIGN REGISTERED) (ELECTRONIC & OTHER
ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 2,528,939
11,503,967 MINOR INTERNATIONAL PUBLIC COMPANY LIMITED (FOREIGN REGISTERED) (HOTELS, ROOMING HOUSES, CAMPS
& OTHER LODGE PLACES) 2,411,764
2,993,000 PHATRA SECURITIES COMPANY LIMITED (BUSINESS SERVICES) 3,310,585
10,291,538
---------------
VIETNAM - 0.64%
400,000 VIETNAM DAIRY PRODUCTS COMPANY (AGRICULTURAL PRODUCTION LIVESTOCK & ANIMAL SPECIALIZED)+ 2,036,000
---------------
TOTAL COMMON STOCKS (COST $240,271,120) 285,284,082
---------------
INVESTMENT COMPANIES - 1.19%
556,000 ISHARES ASIA TRUST CHINA TRACKER ETF+ 3,765,593
---------------
TOTAL INVESTMENT COMPANIES (COST $3,739,564) 3,765,593
---------------
PREFERRED STOCKS - 0.02%
1,213,067 MINOR INTERNATIONAL WARRANTS 29 MARCH 2008+ (A) 66,216
---------------
TOTAL PREFERRED STOCKS (COST $0) 66,216
---------------
SHORT-TERM INVESTMENTS - 6.92%
MUTUAL FUND - 6.92%
21,996,090 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~++ 21,996,090
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $21,996,090) 21,996,090
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $266,060,544)* 97.92% $ 311,153,061
OTHER ASSETS AND LIABILITIES, NET 2.08 6,622,853
------ ---------------
TOTAL NET ASSETS 100.00% $ 317,775,914
====== ===============
+ NON-INCOME EARNING SECURITIES.
(A) SECURITY FAIR VALUED IN ACCORDANCE WITH THE PROCEDURES APPROVED BY THE
BOARD OF TRUSTEES.
! SECURITIES THAT MAY BE RESOLD TO "QUALIFIED INSTITUTIONAL BUYERS" UNDER
RULE 144A OR SECURITIES OFFERED PURSUANT TO SECTION 4(2) OF THE SECURITIES
ACT OF 1933, AS AMENDED.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
++ SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $21,996,090.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
9
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
OVERSEAS FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 97.06%
AUSTRALIA - 3.63%
28,000 ORICA LIMITED (MISCELLANEOUS MANUFACTURING INDUSTRIES) $ 464,849
42,071 PUBLISHING & BROADCASTING LIMITED (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 521,053
14,892 RIO TINTO LIMITED (METAL MINING) 840,635
44,000 WESTFIELD GROUP (PROPERTIES) 538,644
5,094 WOODSIDE PETROLEUM LIMITED (OIL & GAS EXTRACTION) 165,857
2,531,038
---------------
BELGIUM - 1.10%
21,600 FORTIS (DEPOSITORY INSTITUTIONS) 771,672
---------------
CHINA - 0.51%
410,000 YANZHOU COAL MINING COMPANY LIMITED (RUBBER & MISCELLANEOUS PLASTICS PRODUCTS) 356,676
---------------
DENMARK - 0.78%
14,700 DANSKE BANK A/S (DEPOSITORY INSTITUTIONS) 545,479
---------------
FRANCE - 13.24%
45,100 ALCATEL SA (COMMUNICATIONS)+ 697,941
8,100 ALSTOM RGPT (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT)+ 679,270
26,600 AXA SA (INSURANCE CARRIERS) 933,537
10,100 BOUYGUES SA (ENGINEERING CONSTRUCTION) 536,713
11,225 CAP GEMINI SA (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 611,595
10,600 CARREFOUR SA (FOOD STORES) 563,925
5,800 LAFARGE SA (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 657,190
62 PAGESJAUNES SA (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 1,742
12,950 SANOFI-AVENTIS SA (CHEMICALS & ALLIED PRODUCTS) 1,231,943
19,000 SUEZ SA (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 748,782
6,659 TECHNIP SA (OIL & GAS EXTRACTION) 450,696
5,854 TOTAL SA (PETROLEUM REFINING & RELATED INDUSTRIES) 1,544,410
16,900 VIVENDI UNIVERSAL SA (COMMUNICATIONS) 580,414
9,238,158
---------------
GERMANY - 7.26%
4,600 ALLIANZ AG (INSURANCE CARRIERS) 768,060
7,700 BAYERISCHE MOTOREN WERKE AG (AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS) 424,108
3,203 CELESIO AG (WHOLESALE TRADE-DURABLE GOODS) 303,112
10,469 COMMERZBANK AG (DEPOSITORY INSTITUTIONS) 417,146
10,300 E.ON AG (ELECTRIC, GAS & SANITARY SERVICES) 1,133,502
4,800 FRESENIUS MEDICAL CARE AG (HEALTH SERVICES) 573,548
16,900 METRO AG (FOOD STORES) 866,525
2,670 SAP AG (BUSINESS SERVICES) 579,215
5,065,216
---------------
GREECE - 1.04%
19,680 ALPHA BANK AE (DEPOSITORY INSTITUTIONS) 726,928
---------------
HONG KONG - 4.47%
61,000 CHEUNG KONG HOLDINGS LIMITED (REAL ESTATE) 646,624
101,000 CHINA MOBILE (HONG KONG) LIMITED (COMMUNICATIONS) 530,438
571,000 CHINA PETROLEUM & CHEMICAL CORPORATION (SINOPEC) (OIL COMPANIES) 331,157
1,264,000 GUANGDONG INVESTMENT LIMITED (BUSINESS SERVICES) 566,093
68,000 SUN HUNG KAI PROPERTIES LIMITED (REAL ESTATE) 690,591
63,000 TELEVISION BROADCASTS LIMITED (MOTION PICTURES) 357,256
3,122,159
---------------
10
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
- --------------------------------------------------------------------------------
OVERSEAS FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
HUNGARY - 0.31%
3,168 OTP BANK GDR (DEPOSITORY INSTITUTIONS) $ 220,176
---------------
IRELAND - 0.00%
254,000 CONNEMARA GREEN MARBLE QUARRIES PLC (MINING & QUARRYING OF NONMETALLIC MINERALS,
EXCEPT FUELS) (A) 0
---------------
ITALY - 3.51%
43,700 ENI SPA (PETROLEUM REFINING & RELATED INDUSTRIES) 1,243,457
166,500 UNICREDITO ITALIANO SPA (DEPOSITORY INSTITUTIONS) 1,203,583
2,447,040
---------------
JAPAN - 23.43%
73,800 AEON COMPANY LIMITED (MISCELLANEOUS RETAIL) 1,790,136
9,000 DAIWA HOUSE INDUSTRY COMPANY LIMITED (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE
BUILDERS) 155,990
60,000 KANEKA CORPORATION (CHEMICALS & ALLIED PRODUCTS) 719,286
27,000 KAO CORPORATION (CHEMICALS & ALLIED PRODUCTS) 711,130
2,200 KEYENCE CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 571,963
56 MILLEA HOLDINGS INCORPORATED (INSURANCE CARRIERS) 1,108,581
69,000 MITSUI SUMITOMO INSURANCE COMPANY LIMITED (INSURANCE CARRIERS) 938,564
10,800 MURATA MANUFACTURING COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS,
EXCEPT COMPUTER EQUIPMENT) 731,317
42,000 NIKKO CORDIAL CORPORATION (FINANCIAL) 695,837
104,000 NIPPON OIL CORPORATION (OIL & GAS EXTRACTION) 815,565
47,700 NOMURA HOLDINGS INCORPORATED (SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES) 1,063,827
362 NTT DOCOMO INCORPORATED (COMMUNICATIONS) 535,157
26,000 OMRON CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 746,644
19,000 SECOM COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 971,793
72,000 SEKISUI HOUSE LIMITED (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 1,074,188
40,000 SHARP CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 708,581
172,000 SHINSEI BANK LIMITED (DEPOSITORY INSTITUTIONS) 1,204,146
156,000 SUMITOMO TRUST & BANKING COMPANY LIMITED (DEPOSITORY INSTITUTIONS) 1,805,200
16,347,905
---------------
NETHERLANDS - 5.03%
8,593 AKZO NOBEL NV (CHEMICALS & ALLIED PRODUCTS)+ 456,007
28,500 ASML HOLDING NV (SEMICONDUCTOR EQUIPMENT MANUFACTURING & RELATED)+ 581,964
21,000 ING GROEP NV (FINANCIAL SERVICES) 829,637
13,100 ROYAL DUTCH SHELL PLC ADR CLASS A (PETROLEUM REFINING & RELATED INDUSTRIES) 815,606
33,100 WOLTERS KLUWER NV (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 825,514
3,508,728
---------------
NORWAY - 1.65%
856 ORKLA ASA (FOOD & KINDRED PRODUCTS) 42,450
38,400 STATOIL ASA (PETROLEUM REFINING & RELATED INDUSTRIES) 1,107,422
1,149,872
---------------
RUSSIA - 1.52%
6,700 LUKOIL ADR (OIL & GAS EXTRACTION) 558,780
15,100 MOBILE TELESYSTEMS ADR (COMMUNICATIONS) 499,810
1,058,590
---------------
SOUTH KOREA - 0.47%
640 SAMSUNG ELECTRONICS COMPANY LIMITED - PREFERRED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT &
COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 327,707
---------------
11
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
OVERSEAS FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
SPAIN - 1.91%
36,400 BANCO BILBAO VIZCAYA ARGENTARIA SA (DEPOSITORY INSTITUTIONS) $ 759,601
28,068 INDRA SISTEMAS SA (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 570,762
1,330,363
---------------
SWEDEN - 0.87%
31,457 SECURITAS AB (BUSINESS SERVICES) 605,835
---------------
SWITZERLAND - 6.59%
11,600 NOVARTIS AG (CHEMICALS & ALLIED PRODUCTS) 645,112
14,720 NOVARTIS AG ADR (CHEMICALS & ALLIED PRODUCTS) 816,077
10,100 ROCHE HOLDING AG (HEALTH SERVICES) 1,503,786
6,350 UBS AG (FINANCIAL SERVICES) 697,518
4,000 ZURICH FINANCIAL SERVICES AG (FINANCIAL SERVICES) 939,669
4,602,162
---------------
THAILAND - 1.20%
247,800 ADVANCED INFORMATION SERVICE PUBLIC COMPANY LIMITED (FOREIGN REGISTERED) (COMMUNICATIONS) 583,246
90,000 BANGKOK BANK PUBLIC COMPANY LIMITED (DEPOSITORY INSTITUTIONS) 252,347
835,593
---------------
UNITED KINGDOM - 18.54%
11,333 ASTRAZENECA PLC (CHEMICALS & ALLIED PRODUCTS) 571,011
58,500 AVIVA PLC (INSURANCE CARRIERS) 812,599
86,000 BAE SYSTEMS PLC (TRANSPORTATION BY AIR) 628,672
65,000 BARCLAYS PLC (DEPOSITORY INSTITUTIONS) 760,594
47,000 EMAP PLC (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 719,408
28,800 GLAXOSMITHKLINE PLC (CHEMICALS & ALLIED PRODUCTS) 753,062
19,000 GLAXOSMITHKLINE PLC ADR (CHEMICALS & ALLIED PRODUCTS) 993,890
86,600 HSBC HOLDINGS PLC (DEPOSITORY INSTITUTIONS) 1,451,934
510,400 LEGAL & GENERAL GROUP PLC (INSURANCE CARRIERS) 1,259,218
66,421 ROLLS ROYCE GROUP PLC (AEROSPACE, DEFENSE) 528,534
3,573,450 ROLLS ROYCE GROUP PLC CLASS B (AEROSPACE, DEFENSE) 6,333
44,400 ROYAL DUTCH SHELL PLC CLASS A (OIL & GAS EXTRACTION) 1,386,994
72,500 SCOTTISH & NEWCASTLE PLC (FOOD & KINDRED PRODUCTS) 655,003
33,000 STANDARD CHARTERED PLC (DEPOSITORY INSTITUTIONS) 821,029
757,100 VODAFONE GROUP PLC (COMMUNICATIONS) 1,585,047
12,933,328
---------------
TOTAL COMMON STOCKS (COST $57,951,279) 67,724,625
---------------
12
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
- --------------------------------------------------------------------------------
OVERSEAS FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
SHORT-TERM INVESTMENTS - 1.08%
MUTUAL FUND - 1.08%
748,982 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~++ $ 748,982
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $748,982) 748,982
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $58,700,261)* 98.14% $ 68,473,607
OTHER ASSETS AND LIABILITIES, NET 1.86 1,300,108
------ ---------------
TOTAL NET ASSETS 100.00% $ 69,773,715
====== ===============
+ NON-INCOME EARNING SECURITIES.
(A) SECURITY FAIR VALUED IN ACCORDANCE WITH THE PROCEDURES APPROVED BY THE
BOARD OF TRUSTEES.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
++ SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $748,982.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
13
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
STATEMENTS OF ASSETS AND LIABILITIES -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
ASIA PACIFIC FUND OVERSEAS FUND
- ---------------------------------------------------------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE ........................................................... $ 289,156,971 $ 67,724,625
INVESTMENTS IN AFFILIATES ................................................................ 21,996,090 748,982
----------------- -------------
TOTAL INVESTMENTS AT MARKET VALUE (SEE COST BELOW) .......................................... 311,153,061 68,473,607
----------------- -------------
FOREIGN CURRENCY, AT VALUE ............................................................... 2,038,149 0
RECEIVABLE FOR FUND SHARES ISSUED ........................................................ 2,867,458 1,437
RECEIVABLE FOR INVESTMENTS SOLD .......................................................... 12,396,718 1,335,405
RECEIVABLES FOR DIVIDENDS AND INTEREST ................................................... 933,561 332,051
----------------- -------------
TOTAL ASSETS ................................................................................ 329,388,947 70,142,500
----------------- -------------
LIABILITIES
FOREIGN TAXES PAYABLE .................................................................... 418,851 0
PAYABLE FOR FUND SHARES REDEEMED ......................................................... 119,517 11,974
PAYABLE FOR INVESTMENTS PURCHASED ........................................................ 10,669,254 298,127
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) .................................... 325,564 32,129
PAYABLE TO THE TRUSTEES AND SHAREHOLDER SERVICING AGENT .................................. 70,392 18,332
ACCRUED EXPENSES AND OTHER LIABILITIES ................................................... 9,455 8,223
----------------- -------------
TOTAL LIABILITIES ........................................................................... 11,613,033 368,785
----------------- -------------
TOTAL NET ASSETS ............................................................................ $ 317,775,914 $ 69,773,715
================= =============
NET ASSETS CONSIST OF:
- ---------------------------------------------------------------------------------------------------------------------------------
PAID-IN CAPITAL .......................................................................... $ 247,732,348 $ 67,617,440
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ............................................... (817,735) (61,258)
UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON INVESTMENTS .................................... 26,229,520 (7,546,697)
NET UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS, FOREIGN CURRENCIES AND
TRANSLATION OF ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES ............... 44,631,781 9,764,230
----------------- -------------
TOTAL NET ASSETS ............................................................................ $ 317,775,914 $ 69,773,715
----------------- -------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE(1)
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS - INSTITUTIONAL CLASS ......................................................... N/A $ 6,065,321
SHARES OUTSTANDING - INSTITUTIONAL CLASS ................................................. N/A 534,269
NET ASSET VALUE AND OFFERING PRICE PER SHARE - INSTITUTIONAL CLASS ....................... N/A $ 11.35
NET ASSETS - INVESTOR CLASS .............................................................. $ 317,775,914 $ 63,708,394
SHARES OUTSTANDING - INVESTOR CLASS ...................................................... 24,351,237 5,627,761
NET ASSET VALUE AND OFFERING PRICE PER SHARE - INVESTOR CLASS ............................ $ 13.05 $ 11.32
----------------- -------------
INVESTMENTS AT COST ......................................................................... $ 266,060,544 $ 58,700,261
================= =============
FOREIGN CURRENCIES AT COST .................................................................. $ 2,038,880 $ 0
================= =============
(1) EACH FUND HAS AN UNLIMITED NUMBER OF AUTHORIZED SHARES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
14
STATEMENTS OF OPERATIONS --
FOR THE SIX MONTHS ENDED MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
- --------------------------------------------------------------------------------
ASIA PACIFIC FUND OVERSEAS FUND
- ---------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS(1) ............................................................................. $ 1,270,001 $ 487,118
INTEREST ................................................................................. 744 0
INCOME FROM AFFILIATED SECURITIES ........................................................ 205,251 26,071
SECURITIES LENDING INCOME, NET ........................................................... 77,998 4,203
----------------- -------------
TOTAL INVESTMENT INCOME ..................................................................... 1,553,994 517,392
----------------- -------------
EXPENSES
ADVISORY FEES ............................................................................ 1,278,480 322,111
ADMINISTRATION FEES
FUND LEVEL ............................................................................ 348,677 16,953
INSTITUTIONAL CLASS ................................................................... N/A 2,419
INVESTOR CLASS ........................................................................ N/A 123,531
CUSTODY FEES ............................................................................. 290,564 33,906
SHAREHOLDER SERVICING FEES ............................................................... 290,564 77,207
ACCOUNTING FEES .......................................................................... 16,663 15,524
PROFESSIONAL FEES ........................................................................ 20,297 10,548
REGISTRATION FEES ........................................................................ 30,179 9,217
SHAREHOLDER REPORTS ...................................................................... 21,443 10,009
TRUSTEES' FEES ........................................................................... 4,124 4,124
OTHER FEES AND EXPENSES .................................................................. 7,119 9,662
----------------- -------------
TOTAL EXPENSES .............................................................................. 2,308,110 635,211
----------------- -------------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) ............................................. (390,331) (155,598)
NET EXPENSES ............................................................................. 1,917,779 479,613
----------------- -------------
NET INVESTMENT INCOME (LOSS) ................................................................ (363,785) 37,779
----------------- -------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- ---------------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION .......................... 26,241,745 2,199,327
----------------- -------------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ................................................... 26,241,745 2,199,327
----------------- -------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
- ---------------------------------------------------------------------------------------------------------------------------------
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION .......................... 26,567,772 4,381,795
----------------- -------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ......................... 26,567,772 4,381,795
----------------- -------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ...................................... 52,809,517 6,581,122
----------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ............................. $ 52,445,732 $ 6,618,901
================= =============
(1) NET OF FOREIGN WITHHOLDING TAXES OF .................................................. $ 185,325 $ 33,728
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
15
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
ASIA PACIFIC FUND
---------------------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE FOR THE
MARCH 31, 2006 PERIOD ENDED YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005 DECEMBER 31, 2004
- -----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
Beginning Net Assets ................................................ $ 186,088,160 $ 126,394,552 $ 93,041,294
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ........................................ (363,785) 1,254,524 630,131
Net realized gain (loss) on investments ............................. 26,241,745 17,940,330 10,977,092
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS ...................................................... 26,567,772 3,546,606 6,017,106
---------------- ------------------ -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ........ 52,445,732 22,741,460 17,624,329
---------------- ------------------ -----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
INSTITUTIONAL CLASS .............................................. N/A N/A N/A
INVESTOR CLASS ................................................... (1,131,714) (747,146) (354,601)
NET REALIZED GAIN ON SALES OF INVESTMENTS
INSTITUTIONAL CLASS .............................................. N/A N/A N/A
INVESTOR CLASS ................................................... (17,258,219) (2,700,805) (6,204,437)
---------------- ------------------ -----------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (18,389,933) (3,447,951) (6,559,038)
---------------- ------------------ -----------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS ..................... N/A N/A N/A
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS ................. N/A N/A N/A
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS ....................... N/A N/A N/A
---------------- ------------------ -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS .................................. N/A N/A N/A
---------------- ------------------ -----------------
PROCEEDS FROM SHARES SOLD - INVESTOR CLASS .......................... 120,441,733 87,792,946 103,960,416
REINVESTMENT OF DISTRIBUTIONS - INVESTOR CLASS ...................... 17,173,556 3,245,800 6,244,106
PROCEEDS FROM REDEMPTION FEES - INVESTOR CLASS ...................... 16,718 0 65,564
COST OF SHARES REDEEMED - INVESTOR CLASS ............................ (40,000,052) (50,638,647) (87,982,119)
---------------- ------------------ -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INVESTOR CLASS ....................................... 97,631,955 40,400,099 22,287,967
---------------- ------------------ -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - TOTAL ................................................ 97,631,955 40,400,099 22,287,967
---------------- ------------------ -----------------
TOTAL INCREASE (DECREASE) IN NET ASSETS ................................ 131,687,754 59,693,608 33,353,258
---------------- ------------------ -----------------
ENDING NET ASSETS ...................................................... $ 317,775,914 $ 186,088,160 $ 126,394,552
================ ================== =================
SHARES ISSUED AND REDEEMED:
SHARES SOLD - INSTITUTIONAL CLASS ................................... N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL
CLASS ............................................................ N/A N/A N/A
SHARES REDEEMED - INSTITUTIONAL CLASS ............................... N/A N/A N/A
---------------- ------------------ -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INSTITUTIONAL CLASS .... N/A N/A N/A
---------------- ------------------ -----------------
SHARES SOLD - INVESTOR CLASS ........................................ 10,055,603 8,295,291 10,785,238
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - INVESTOR CLASS ..... 1,539,896 311,796 664,387
SHARES REDEEMED - INVESTOR CLASS .................................... (3,380,993) (4,841,731) (9,422,907)
---------------- ------------------ -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INVESTOR CLASS ......... 8,214,506 3,765,356 2,006,718
---------------- ------------------ -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM CAPITAL
SHARE TRANSACTIONS .................................................. 8,214,506 3,765,356 2,006,718
---------------- ------------------ -----------------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME .................. $ (817,735) $ 1,254,516 $ 747,138
================ ================== =================
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
16
STATEMENTS OF CHANGES IN NET ASSETS
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
- --------------------------------------------------------------------------------
OVERSEAS FUND
---------------------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE FOR THE
MARCH 31, 2006 PERIOD ENDED YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005 DECEMBER 31, 2004
- -----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
Beginning Net Assets ................................................ $ 69,720,781 $ 119,765,258 $ 156,128,646
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ........................................ 37,779 1,307,385 1,272,768
Net realized gain (loss) on investments ............................. 2,199,327 34,985,845 16,894,888
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS ...................................................... 4,381,795 (30,135,273) 1,975,143
---------------- ------------------ -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ........ 6,618,901 6,157,957 20,142,799
---------------- ------------------ -----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
INSTITUTIONAL CLASS .............................................. (152,751) (3) (3,408)
INVESTOR CLASS ................................................... (1,156,671) (9,625) (1,319,167)
NET REALIZED GAIN ON SALES OF INVESTMENTS
INSTITUTIONAL CLASS .............................................. (1,600,016) 0 0
INVESTOR CLASS ................................................... (15,963,734) 0 0
---------------- ------------------ -----------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (18,873,172) (9,628) (1,322,575)
---------------- ------------------ -----------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS ..................... 609,529 6,853,880 26,720
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS ................. 1,752,767 3 3,408
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS ....................... (1,101,206) (1,599,551) (32,774)
---------------- ------------------ -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS -INSTITUTIONAL CLASS ................................... 1,261,090 5,254,332 (2,646)
---------------- ------------------ -----------------
PROCEEDS FROM SHARES SOLD - INVESTOR CLASS .......................... 5,460,853 15,572,882 21,761,977
REINVESTMENT OF DISTRIBUTIONS - INVESTOR CLASS ...................... 16,657,853 8,006 1,036,408
PROCEEDS FROM REDEMPTION FEES - INVESTOR CLASS ...................... 1,248 0 0
COST OF SHARES REDEEMED - INVESTOR CLASS ............................ (11,073,839) (77,028,026) (77,979,351)
---------------- ------------------ -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INVESTOR CLASS ....................................... 11,046,115 (61,447,138) (55,180,966)
---------------- ------------------ -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - TOTAL ................................................ 12,307,205 (56,192,806) (55,183,612)
---------------- ------------------ -----------------
TOTAL INCREASE (DECREASE) IN NET ASSETS ................................ 52,934 (50,044,477) (36,363,388)
---------------- ------------------ -----------------
ENDING NET ASSETS ...................................................... $ 69,773,715 $ 69,720,781 $ 119,765,258
================ ================== =================
SHARES ISSUED AND REDEEMED:
SHARES SOLD - INSTITUTIONAL CLASS ................................... 49,978 524,352 2,251
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL
CLASS ............................................................ 163,956 0 256
SHARES REDEEMED - INSTITUTIONAL CLASS ............................... (97,333) (120,180) (2,768)
---------------- ------------------ -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INSTITUTIONAL CLASS .... 116,601 404,172 (261)
---------------- ------------------ -----------------
SHARES SOLD - INVESTOR CLASS ........................................ 470,544 1,173,527 1,808,766
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - INVESTOR CLASS ..... 1,567,315 598 78,032
SHARES REDEEMED - INVESTOR CLASS .................................... (923,079) (5,620,429) (6,600,661)
---------------- ------------------ -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INVESTOR CLASS ......... 1,114,780 (4,446,304) (4,713,863)
---------------- ------------------ -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM CAPITAL
SHARE TRANSACTIONS .................................................. 1,231,381 (4,042,132) (4,714,124)
---------------- ------------------ -----------------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME .................. $ (61,258) $ 1,307,348 $ 9,591
================ ================== =================
17
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
NET REALIZED
BEGINNING NET AND DISTRIBUTION DISTRIBUTIONS
NET ASSET INVESTMENT UNREALIZED FROM NET FROM NET
VALUE PER INCOME GAIN (LOSS) ON INVESTMENT REALIZED
SHARE (LOSS) INVESTMENTS INCOME GAINS
- --------------------------------------------------------------------------------------------------------------------------------
ASIA PACIFIC FUND
- --------------------------------------------------------------------------------------------------------------------------------
INVESTOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ......... $ 11.53 (0.01) 2.59 (0.06) (1.00)
JANUARY 1, 2005 TO SEPTEMBER 30, 2005 ................. $ 10.22 0.07 1.47 (0.05) (0.18)
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................. $ 8.98 0.05 1.75(4) (0.03) (0.53)
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................. $ 5.66 0.03 3.38(5) (0.09) 0.00
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................. $ 6.18 0.00 (0.48) (0.04) 0.00
JANUARY 1, 2001 TO DECEMBER 31, 2001 .................. $ 7.13 (0.06) (0.83) (0.06) 0.00
NOVEMBER 1, 2000 TO DECEMBER 31, 2000(6) .............. $ 7.79 0.00 (0.30) (0.36) 0.00
NOVEMBER 1, 1999 TO OCTOBER 31, 2000 .................. $ 9.62 (0.19) (1.24) (0.40) 0.00
OVERSEAS FUND
- ---------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ......... $ 14.19 0.00 1.14 (0.26) (3.72)
JANUARY 1, 2005 TO SEPTEMBER 30, 2005 ................. $ 13.35 0.08 0.76 (0.00) 0.00
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................. $ 11.41 0.24 1.96 (0.26) 0.00
JANUARY 1, 2003(7) TO DECEMBER 31, 2003 ............... $ 8.69 0.11(8) 2.74 (0.13) 0.00
INVESTOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ......... $ 14.14 (0.06) 1.16 (0.20) (3.72)
JANUARY 1, 2005 TO SEPTEMBER 30, 2005 ................. $ 13.35 0.29 0.50 (0.00) 0.00
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................. $ 11.41 0.14 1.95 (0.15) 0.00
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................. $ 8.69 0.07(8) 2.72(4) (0.07) 0.00
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................. $ 10.86 (0.01) (2.16) 0.00 0.00
JANUARY 1, 2001 TO DECEMBER 31, 2001 .................. $ 13.66 0.01 (2.63) (0.18) 0.00
NOVEMBER 1, 2000 TO DECEMBER 31, 2000(6) .............. $ 15.17 (0.03) (1.48) 0.00 0.00
NOVEMBER 1, 1999 TO OCTOBER 31, 2000 .................. $ 14.37 (0.04) 0.84 0.00 0.00
The accompanying notes are an integral part of these financial statements.
18
FINANCIAL HIGHLIGHTS WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
- --------------------------------------------------------------------------------
ENDING RATIO TO AVERAGE NET ASSETS (ANNUALIZED)(1)
RETURN NET ASSET --------------------------------------------------
OF VALUE PER NET INVESTMENT GROSS EXPENSES NET
CAPITAL SHARE INCOME (LOSS) EXPENSES WAIVED EXPENSES
- --------------------------------------------------------------------------------------------------------------------------------
ASIA PACIFIC FUND
- --------------------------------------------------------------------------------------------------------------------------------
INVESTOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ......... 0.00 $ 13.05 (0.31)% 2.00% (0.35)% 1.65%
JANUARY 1, 2005 TO SEPTEMBER 30, 2005 ................. 0.00 $ 11.53 1.08% 1.92% (0.23)% 1.69%
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................. 0.00 $ 10.22 0.57% 1.80% (0.06)% 1.74%
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................. 0.00 $ 8.98 0.53% 1.97% (0.28)% 1.69%
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................. 0.00 $ 5.66 (0.43)% 2.30% (0.33)% 1.97%
JANUARY 1, 2001 TO DECEMBER 31, 2001 .................. 0.00 $ 6.18 (0.18)% 2.35% (0.33)% 2.02%
NOVEMBER 1, 2000 TO DECEMBER 31, 2000(6) .............. 0.00 $ 7.13 (0.29)% 2.00% 0.00% 2.00%
NOVEMBER 1, 1999 TO OCTOBER 31, 2000 .................. 0.00 $ 7.79 (0.30)% 1.68% 0.00% 1.68%
OVERSEAS FUND
- --------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ......... 0.00 $ 11.35 0.55% 1.35% (0.40)% 0.95%
JANUARY 1, 2005 TO SEPTEMBER 30, 2005 ................. 0.00 $ 14.19 1.05% 1.33% (0.37)% 0.96%
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................. 0.00 $ 13.35 1.87% 0.91% (0.06)% 0.85%
JANUARY 1, 2003(7) TO DECEMBER 31, 2003 ............... 0.00 $ 11.41 1.21% 7.62% (6.71)% 0.91%
INVESTOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ......... 0.00 $ 11.32 0.07% 1.92% (0.46)% 1.46%
JANUARY 1, 2005 TO SEPTEMBER 30, 2005 ................. 0.00 $ 14.14 1.56% 1.89% (0.43)% 1.46%
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................. 0.00 $ 13.35 1.03% 1.88% (0.44)% 1.44%
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................. 0.00 $ 11.41 0.77% 1.94% (0.47)% 1.47%
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................. 0.00 $ 8.69 (0.12)% 2.12% (0.33)% 1.79%
JANUARY 1, 2001 TO DECEMBER 31, 2001 .................. 0.00 $ 10.86 0.13% 2.47% (0.56)% 1.91%
NOVEMBER 1, 2000 TO DECEMBER 31, 2000(6) .............. 0.00 $ 13.66 (1.28)% 1.92% 0.00% 1.92%
NOVEMBER 1, 1999 TO OCTOBER 31, 2000 .................. 0.00 $ 15.17 (0.30)% 1.76% (0.04)% 1.72%
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE(3) (000'S OMITTED)
- ------------------------------------------------------------------------------------------------
ASIA PACIFIC FUND
- ------------------------------------------------------------------------------------------------
INVESTOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ......... 24.04% 88% $317,776
JANUARY 1, 2005 TO SEPTEMBER 30, 2005 ................. 15.38% 117% $186,088
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................. 20.45% 153% $126,395
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................. 60.25% 286% $ 93,041
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................. (7.78)% 159% $ 57,458
JANUARY 1, 2001 TO DECEMBER 31, 2001 .................. (12.50)% 166% $ 38,146
NOVEMBER 1, 2000 TO DECEMBER 31, 2000(6) .............. (3.84)% 23% $ 56,479
NOVEMBER 1, 1999 TO OCTOBER 31, 2000 .................. (16.22)% 182% $ 57,255
OVERSEAS FUND
- ------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ......... 10.43% 25% $ 6,065
JANUARY 1, 2005 TO SEPTEMBER 30, 2005 ................. 6.30% 111% $ 5,929
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................. 19.26% 22% $ 180
JANUARY 1, 2003(7) TO DECEMBER 31, 2003 ............... 32.77% 41% $ 157
INVESTOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ......... 10.11% 25% $ 63,708
JANUARY 1, 2005 TO SEPTEMBER 30, 2005 ................. 5.93% 111% $ 63,792
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................. 18.29% 22% $119,585
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................. 32.16% 41% $155,972
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................. (19.98)% 46% $ 84,251
JANUARY 1, 2001 TO DECEMBER 31, 2001 .................. (19.15)% 169% $ 25,254
NOVEMBER 1, 2000 TO DECEMBER 31, 2000(6) .............. (9.95)% 13% $ 40,773
NOVEMBER 1, 1999 TO OCTOBER 31, 2000 .................. 5.57% 117% $ 44,720
19
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL HIGHLIGHTS
(1) During each period, various fees and expenses were waived and reimbursed
as indicated. The ratio of Gross Expenses to Average Net Assets reflects
the expense ratio in the absence of any waivers and reimbursements (Note
3).
(2) Total return calculations do not include any sales charges, and would have
been lower had certain expenses not been waived or reimbursed during the
periods shown. Returns for periods of less than one year are not
annualized.
(3) Calculated on the basis of the fund as a whole without distinguishing
between the classes of shares issued.
(4) Includes $0.01 in redemption fees.
(5) Includes $0.03 in redemption fees.
(6) In 2000, the Fund changed its fiscal year end from October to December.
(7) Commencement of operations.
(8) Calculated based upon average shares outstanding.
20
NOTES TO FINANCIAL STATEMENTS WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
- --------------------------------------------------------------------------------
1. ORGANIZATION
- --------------------------------------------------------------------------------
Wells Fargo Funds Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end management
investment company. The Trust commenced operations on November 8, 1999, and at
March 31, 2006, was comprised of 108 separate series (each, a "Fund",
collectively, the "Funds"). These financial statements present the Asia Pacific
Fund and Overseas Fund.
In August and September 2004, the Board of Trustees of the Trust and the
Boards of Directors of the Strong Funds ("Strong Funds") approved an Agreement
and Plan of Reorganization providing for the reorganization of certain Strong
Funds into the Funds.
Effective at the close of business on April 8, 2005, the following
Acquiring Funds ("Acquiring Funds"), by share class, acquired substantially all
of the net assets of the following Target Funds ("Target Funds"), by share
class, through a tax-free exchange under section 368 of the Internal Revenue
Code.
Acquiring Fund Target Fund
- ----------------------------------------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE ASIA PACIFIC FUND INVESTOR CLASS STRONG ASIA PACIFIC FUND INVESTOR CLASS
- ----------------------------------------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE OVERSEAS FUND INSTITUTIONAL CLASS STRONG OVERSEAS FUND INSTITUTIONAL CLASS
- ----------------------------------------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE OVERSEAS FUND INVESTOR CLASS STRONG OVERSEAS FUND INVESTOR CLASS
- ----------------------------------------------------------------------------------------------------------------
The separate classes of shares offered by each Fund differ principally in
applicable sales charges and distribution, shareholder servicing and
administration fees. Shareholders of each class bear certain expenses that
pertain to that particular class. All shareholders bear the common expenses of a
Fund, earn income from the portfolio, and are allocated unrealized gains and
losses pro rata based on the average daily net assets of each class, without
distinction between share classes. Dividends are determined separately for each
class based on income and expenses allocable to each class. Realized gains and
losses are allocated to each class pro rata based upon the net assets of each
class on the date realized. Differences in per share dividend rates generally
result from the relative weightings of pro rata income and realized gain
allocations and from differences in separate class expenses, including
distribution, shareholder servicing, and administration fees.
2. SIGNIFICANT ACCOUNTING POLICIES
- --------------------------------------------------------------------------------
The following significant accounting policies, which are consistently
followed in the preparation of the financial statements of the Trust, are in
conformity with accounting principles generally accepted in the United States of
America ("GAAP") for investment companies.
The preparation of financial statements in conformity with GAAP requires
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.
In the normal course of business, the Trust may enter into contracts that
provide certain indemnifications. The Trust's maximum exposure under these
arrangements is dependent on future claims that may be made against the Funds
and, therefore, cannot be estimated; however, based on experience, the risk of
loss from such claims is considered remote.
SECURITY VALUATION
Investments in securities are valued each business day as of the close of
regular trading on the New York Stock Exchange, which is usually 4:00 p.m.
(Eastern Time). Securities, which are traded on a national or foreign securities
exchange, are valued at the last reported sales price. Securities listed on The
NASDAQ Stock Market, Inc. are valued at the NASDAQ Official Closing Price
("NOCP"), and if no NOCP is available, then at the last reported sales price. In
the absence of any sale of such securities, and in the case of other securities,
including U.S. Government obligations, but excluding debt securities maturing in
60 days or less, the price will be deemed "stale" and the valuations will be
determined in accordance with the Funds' Fair Valuation Procedures.
Securities denominated in foreign currencies are translated into U.S.
dollars using the closing rates of exchange in effect on the day of valuation.
Many securities markets and exchanges outside the U.S. close prior to the
close of the New York Stock Exchange and therefore may not fully reflect trading
or events that occur after the close of the principal exchange in which the
foreign investments are traded but before the close of the New York Stock
Exchange. If such trading or events are expected to materially affect the value
of the investments, then those investments are fair valued following procedures
approved by the Board of Trustees. These procedures take into account multiple
factors including movements in U.S. securities markets after foreign exchanges
close. Depending on market activity, such fair valuations may be frequent. In
light of the judgment involved in fair value decisions, there can be no
assurance that a fair value assigned to a particular security is accurate. Such
fair value pricing may result in NAVs that are higher or lower than NAVs based
on the closing price or latest quoted bid price.
Debt securities maturing in 60 days or less generally are valued at
amortized cost. The amortized cost method involves valuing a security at its
cost, plus accretion of discount or minus amortization of premium over the
period until maturity, which approximates market value.
21
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
Investments which are not valued using any of the methods discussed above
are valued at their fair value as determined by procedures approved by the Board
of Trustees.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Securities transactions are recorded on a trade date basis. Realized gains
or losses are reported on the basis of identified cost of securities delivered.
Interest income is accrued daily and bond discounts are accreted and premiums
are amortized daily.
Dividend income is recognized on the ex-dividend date, except for certain
dividends from foreign securities, which are recorded as soon as the Fund is
informed of the ex-dividend date. Dividend income from foreign securities is
recorded net of foreign taxes withheld where recovery of such taxes is not
assured.
FOREIGN CURRENCY TRANSLATION
The accounting records are maintained in U.S. dollars. Assets, including
investment securities, and liabilities denominated in foreign currency are
translated into U.S. dollars at the prevailing rates of exchange at the date of
valuation. Purchases and sales of securities, and income and expenses are
translated at the prevailing rate of exchange on the respective dates of such
transactions. Reported net realized foreign exchange gains or losses arise from
sales of foreign currencies, currency gains or losses realized between the trade
and settlement dates on securities transactions, and the difference between the
amounts of dividends, interest and foreign withholding taxes recorded and the
U.S. dollar equivalent of the amounts actually paid or received. Net unrealized
foreign exchange gains and losses arise from changes in the fair value of assets
and liabilities other than investments in securities, at fiscal period-end,
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 at
fiscal period-end are not separately presented. Such changes are recorded with
net realized and unrealized gain from investments. Gains and losses from certain
foreign currency transactions are treated as ordinary income for U.S. federal
income tax purposes.
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, if any, is declared and distributed to shareholders
annually. Distributions to shareholders from net realized capital gains, if any,
are declared and distributed at least annually.
For federal income tax purposes, a Fund may designate as capital gains
dividends the earnings and profits distributed to shareholders on the redemption
of fund shares during the year.
Distributions are based on amounts calculated in accordance with the
applicable federal income tax regulations, which may differ from GAAP. The
timing and character of distributions made during the period from net investment
income or net realized gains may also differ from their ultimate
characterization for federal income tax purposes. To the extent that these
differences are permanent in nature, such amounts are reclassified within the
capital accounts based on their federal tax-basis treatment. Temporary
differences do not require reclassifications.
FEDERAL INCOME TAXES
Each Fund is treated as a separate entity for federal income tax purposes.
It is the policy of each Fund of the Trust to continue to qualify as a regulated
investment company by complying with the provisions applicable to regulated
investment companies, as defined under subchapter M of the Internal Revenue Code
(the "Code"), and to make distributions of 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 at March 31, 2006.
At September 30, 2005, estimated net capital loss carryforwards, which are
available to offset future net realized capital gains, were:
Fund Year Expires Capital Loss Carryforwards
- --------------------------------------------------------------------------------
OVERSEAS FUND 2007 $ 168,820
2009 7,601,230
2010 1,942,513
- --------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACTS
The Funds may enter into forward foreign currency contracts to protect
against a possible loss resulting from an adverse change in the relationship
between foreign currencies and the U.S. dollar, or between foreign currencies. A
forward contract is an agreement between two counterparties for future delivery
or receipt of currency at a specified price. Risks arise from the possible
inability of counterparties to meet the terms of their contracts and from
movements in currency values. Realized gains or losses are recognized when the
transaction is completed. Contracts, which have been offset but have not reached
their settlement date, are included in unrealized gains and losses. As of March
31, 2006, there were no outstanding forward foreign currency contracts.
SECURITY LOANS
The Fund(s) may loan securities in return for securities, irrevocable
letters of credit or cash collateral, which is invested in various short-term
fixed income securities. A Fund may receive compensation for lending securities
in the form of fees or by retaining a portion of interest on the investment
securities or cash received as collateral. A Fund also continues to receive
22
NOTES TO FINANCIAL STATEMENTS WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
- --------------------------------------------------------------------------------
interest or dividends on the securities loaned. Security loans are secured at
all times by collateral. The collateral is equal to at least 102% of the market
value of the securities loaned plus accrued interest when the transaction is
entered into. The collateral supporting loans of domestic and foreign equity
securities and corporate bonds are remarked daily while collateral supporting
loans of U.S. Government securities are remarked back to 102% only if the given
collateral falls below 100% of the market value of the securities loans plus any
accrued interest. Gain or loss in the market price of the securities loaned that
may occur during the term of the loan are reflected in the value of the Fund.
The risks from securities lending are that the borrower may not provide
additional collateral when required or return the securities when due or when
called for by the Fund. Wells Fargo Bank, N.A., the Funds' custodian, acts as
the securities lending agent for the Funds and receives for its services 30% of
the revenues earned on the securities lending activities and incurs all
expenses. Prior to October 1, 2005, Wells Fargo Bank, N.A. received 35% of the
revenues earned on the securities lending activities and incurred all expenses.
The value of the securities on loan and the value of the related collateral at
March 31, 2006, are shown on the Statements of Assets and Liabilities.
3. EXPENSES
- --------------------------------------------------------------------------------
ADVISORY FEES
The Trust has entered into an advisory contract with Wells Fargo Funds
Management, LLC ("Funds Management"). The adviser is responsible for
implementing investment policies and guidelines and for supervising the
subadviser, who is responsible for day-to-day portfolio management.
Pursuant to the contract, Funds Management is entitled to receive an
advisory fee for its services as adviser. Funds Management may retain the
services of certain investment subadvisers to provide daily portfolio
management. The fees related to subadvisory services are borne directly by the
adviser and do not increase the overall fees paid by a Fund to the adviser.
Funds Management and the investment subadviser(s) are entitled to be paid a
monthly fee at the following annual rates:
Subadvisory
Advisory Fees* Fees (% of
Average Daily (% of Average Average Daily Average Daily
Fund Net Assets Daily Net Assets) Subadviser Net Assets Net Assets)
- ----------------------------------------------------------------------------------------------------------------------
ASIA PACIFIC FUND** First $500 million 1.100 Wells Capital First $100 million 0.650
Next $500 million 1.050 Management Next $100 million 0.550
Next $2 billion 1.000 Incorporated Over $200 million 0.450
Next $2 billion 0.975
Over $5 billion 0.950
- ----------------------------------------------------------------------------------------------------------------------
OVERSEAS FUND First $500 million 0.950 New Star First $50 million 0.350
Next $500 million 0.900 Institutional Next $500 million 0.290
Next $2 billion 0.850 Managers Over $550 million 0.200
Next $2 billion 0.825 Limited
Over $5 billion 0.800
* Effective April 11, 2005. From January 1, 2005, through April 10, 2005,
Funds Management served as interim investment adviser to each of the
predecessor Strong Funds and was entitled to receive an annual fee at the
following rates:
Advisory Fees
(% of Average
Fund Average Daily Net Assets Daily Net Assets)
- ----------------------------------------------------------------------------------------------------------------------
ASIA PACIFIC FUND First $4 billion 0.750
OVERSEAS FUND Next $2 billion 0.725
Over $6 billion 0.700
- ----------------------------------------------------------------------------------------------------------------------
** Effective January 1, 2006. Prior to January 1, 2006, Subadviser(s) were
entitled to be paid a monthly fee at the following rates:
Subadvisory
Fees (% of
Average Daily Average Daily
Fund Subadviser Net Assets Net Assets)
- ----------------------------------------------------------------------------------------------------------------------
ASIA PACIFIC FUND Wells Capital Management First $200 million 0.450
Incorporated Over $200 million 0.350
- ----------------------------------------------------------------------------------------------------------------------
OVERSEAS FUND New Star Institutional First $250 million 0.250
Managers Limited Next $250 million 0.180
Over $500 million 0.160
23
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
ADMINISTRATION AND TRANSFER AGENT FEES
The Trust has entered into an Administration Agreement with Funds
Management. Under this Agreement, for providing administrative services, which
includes paying fees and expenses for services provided by the transfer agent,
sub-transfer agents, omnibus account servicers and record-keepers, Funds
Management is entitled to receive the following annual fees:
Administration Fees**
(% of Average
Average Daily Net Assets Daily Net Assets)
- ----------------------------------------------------------------------------------------------------------------------
FUND LEVEL First $5 billion 0.05
Next $5 billion 0.04
Over $10 billion 0.03
- ----------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS 0.08
- ----------------------------------------------------------------------------------------------------------------------
INVESTOR CLASS*** 0.25, 0.40
- ----------------------------------------------------------------------------------------------------------------------
*** For the Asia Pacific Fund and Overseas Fund, respectively.
** Effective April 11, 2005. Prior to April 11, 2005, Strong Investor
Services, Inc. ("SISI") served as administrator to each of the predecessor
Strong Funds and was entitled to receive an annual fee at the following
rates:
Administration Fees
(% of Average Daily Net Assets)
------------------------------------------
Fund Institutional Class Investor Class
- --------------------------------------------------------------------------------
ASIA PACIFIC FUND N/A 0.30
- --------------------------------------------------------------------------------
OVERSEAS FUND 0.02 0.30
The Trust has entered into an agreement with Boston Financial Data
Services, Inc. ("BFDS"). BFDS served as the transfer agent to the predecessor
Strong Funds effective March 14, 2005. Prior to March 14, 2005, SISI served as
transfer agent to each of the predecessor Strong Funds. Effective April 11,
2005, transfer agent fees are paid by Funds Management and not by the Funds.
CUSTODY FEES
The Trust has entered into a contract with Wells Fargo Bank, N.A. ("WFB"),
whereby WFB is responsible for providing custody services. Pursuant to the
contract, WFB is entitled to a monthly fee for custody services at the following
annual rates:
% of Average
Fund Daily Net Assets
- --------------------------------------------------------------------------------
ASIA PACIFIC FUND 0.25
- --------------------------------------------------------------------------------
OVERSEAS FUND 0.10
Prior to February 28, 2005, State Street Bank served as custodian for each
of the predecessor Strong Funds. State Street was entitled to receive certain
fees, primarily based on transactions of the fund.
SHAREHOLDER SERVICING FEES
The Trust has entered into contracts with one or more shareholder
servicing agents, whereby each Fund is charged the following annual fees:
% of Average
Share Class Daily Net Assets
- --------------------------------------------------------------------------------
INSTITUTIONAL CLASS None
- --------------------------------------------------------------------------------
INVESTOR CLASS 0.25*
* Effective April 11, 2005. Prior to April 11, 2005, shareholder servicing
fees for the predecessor Strong Funds, if any, were encompassed by the Strong
Funds' 12b-1 distribution and service plan. For the period October 1, 2005,
through March 31, 2006, shareholder servicing fees paid were as follows:
Fund Investor Class
- --------------------------------------------------------------------------------
ASIA PACIFIC FUND $ 290,564
- --------------------------------------------------------------------------------
OVERSEAS FUND 77,207
24
NOTES TO FINANCIAL STATEMENTS WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
- --------------------------------------------------------------------------------
OTHER FEES
PFPC, Inc. ("PFPC") serves as fund accountant for the Trust and is
entitled to receive an annual asset based fee and an annual fixed fee from each
Fund. PFPC is also entitled to be reimbursed for all out-of-pocket expenses
reasonably incurred in providing these services.
Prior to February 28, 2005, State Street served as fund accountant for
each of the predecessor Strong Funds. Fund accounting fees were paid by the
Funds' administrator and not by the Funds.
WAIVED FEES AND REIMBURSED EXPENSES
Effective April 11, 2005, Funds Management waived fees or reimbursed
expenses proportionately from all classes, first from advisory fees, and then
from any class specific expenses, if applicable. Funds Management has committed
to waive fees and/or reimburse expenses to the extent necessary to maintain a
certain net operating expense ratios for the Funds. Net operating expense ratios
in effect for the period ended March 31, 2006, were as follows:
Net Operating Expense Ratios
------------------------------------------
Fund Institutional Class Investor Class
- --------------------------------------------------------------------------------
ASIA PACIFIC FUND N/A 1.65%
- --------------------------------------------------------------------------------
OVERSEAS FUND 0.95 1.46%
Prior to April 11, 2005, the Strong Funds' adviser and/or administrator
could voluntarily waive or absorb certain expenses at their discretion. Strong
Capital Management, Inc. ("SCM") and/or SISI had contractually agreed to waive
its fees and/or absorb expenses for the Strong Asia Pacific Fund Investor Class
and Strong Overseas Fund Investor Class until May 1, 2005, to keep total annual
operating expenses at no more than 2.00% and 1.50%, respectively. Pursuant to
the direction of the Strong Funds Board of Directors and certain regulatory
settlements, SCM had contractually agreed to waive its fees and/or absorb
expenses in the amount of 0.025% for the Strong Asia Pacific Fund and 0.033% for
the Strong Overseas Fund from May 21, 2004 until May 21, 2005. However,
effective April 11, 2005, the Funds were subject to a different expense
structure. SISI also allocated to each fund certain charges or credits resulting
from transfer agency banking activities based on each Class' level of
subscription and redemption activity. Transfer Agency Banking Credits allocated
by SISI, if any, served to reduce the transfer agency expenses incurred by the
Funds.
4. INVESTMENT PORTFOLIO TRANSACTIONS
- --------------------------------------------------------------------------------
Purchases and sales of investments, exclusive of short-term securities and
U.S. government obligations (securities with maturities of one year or less at
purchase date) for the period ended March 31, 2006, were as follows:
Fund Purchases at Cost Sales Proceeds
- --------------------------------------------------------------------------------
ASIA PACIFIC FUND $ 257,318,216 $ 196,806,138
- --------------------------------------------------------------------------------
OVERSEAS FUND 16,895,744 22,240,334
5. BANK BORROWINGS
- --------------------------------------------------------------------------------
Wells Fargo Funds Trust and Wells Fargo Variable Trust (excluding the
money market funds) share in a revolving Credit Agreement with The Bank of New
York, whereby the Funds are permitted to use bank borrowings for temporary or
emergency purposes, such as to fund shareholder redemption requests. The
agreement permits borrowings of up to $150 million, collectively. Interest is
charged to each Fund based on its borrowing at a rate equal to the Federal Funds
Rate plus 0.40%. In addition, the Funds pay a quarterly commitment fee equal to
0.1% per annum of the credit line.
Prior to April 11, 2005, the predecessor Strong Funds had established a
line of credit agreement ("LOC") with certain financial institutions to be used
for temporary or emergency purposes. Combined borrowings among all participating
Strong Funds were subject to a $200 million cap on the total LOC. For an
individual fund, borrowings under the LOC were limited to either the lesser of
15% of the market value of the fund's total assets or any explicit borrowing
limits in the fund's registration statement. The principal amount of each
borrowing under the LOC was due not more than 45 days after the date of the
borrowing. Borrowings under the LOC accrued interest based on prevailing market
rates as defined in the LOC. A commitment fee of 0.09% per annum was incurred on
the unused portion of the LOC and was allocated to all participating Strong
Funds based on their net asset values. For the six months ended March 31, 2006,
the Asia Pacific Fund and Overseas Fund had no borrowings under either
agreement.
6. LEGAL AND REGULATORY MATTERS
- --------------------------------------------------------------------------------
In 2004, the predecessor Strong Funds' prior investment adviser and
affiliates (collectively, "Strong") entered into agreements with certain
regulators, including the Securities and Exchange Commission and the New York
Attorney General ("NYAG"), to settle market-timing investigations. In the
settlements, Strong agreed to pay investor restoration and civil penalties.
Although some portion of these payments is likely to be distributed to
predecessor Strong Fund shareholders, no determination has yet been made as to
the distribution of these amounts, and the successor funds are not expected to
receive any portion of these payments. The NYAG settlement imposed fee
reductions across the predecessor fund complex (excluding money market funds and
very short-term income funds) totaling at least $35 million by May 2009. Funds
Management has agreed to honor these fee reductions for the benefit of
shareholders across the successor funds. Although civil litigation against
Strong and certain predecessor Strong Funds relating to these matters is
continuing, neither the current adviser nor the successor funds is a party to
any such suit.
25
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS OTHER INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
PROXY VOTING INFORMATION
A description of the policies and procedures that the Funds use to
determine how to vote proxies relating to portfolio securities and information
regarding how to obtain the results of such voting during the most recent
12-month period ended June 30 is available without charge, upon request, by
calling 1-800-222-8222, visiting our Web site at
WWW.WELLSFARGO.COM/ADVANTAGEFUNDS, or visiting the SEC Web site at WWW.SEC.GOV.
PORTFOLIO HOLDINGS INFORMATION
The complete portfolio holdings for each Fund are publicly available on
the Funds' Web site (WWW.WELLSFARGO.COM/ADVANTAGEFUNDS) on a monthly, 30-day or
more delayed basis. In addition, top ten holdings information for each Fund is
publicly available on the Funds' Web site on a monthly, seven-day or more
delayed basis. Each Fund files its complete schedule of portfolio holdings with
the SEC for the first and third quarters of each fiscal year on Form N-Q, which
is available without charge by visiting the SEC Web site at WWW.SEC.GOV. In
addition, each Fund's Form N-Q may be reviewed and copied at the SEC's Public
Reference Room in Washington, DC, and at regional offices in New York City, at
233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900.
Information about the Public Reference Room may be obtained by calling
1-800-SEC-0330.
BOARD OF TRUSTEES
The following table provides basic information about the Board of Trustees
(the "Trustees") of the Wells Fargo Funds Trust (the "Trust"). This table
supplements, and should be read in conjunction with, the Prospectus and the
Statement of Additional Information* of each Fund. Each of the Trustees listed
below acts in an identical capacity for each of the 139 funds comprising the
Trust, Wells Fargo Variable Trust and Wells Fargo Master Trust (collectively the
"Fund Complex"). All of the non-interested Trustees are also members of the
Audit and Governance Committees of each Trust in the Fund Complex. The 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.
NON-INTERESTED TRUSTEES
- ----------------------------------------------------------------------------------------------------------
POSITION HELD AND PRINCIPAL OCCUPATIONS DURING
NAME AND AGE LENGTH OF SERVICE ** PAST FIVE YEARS OTHER DIRECTORSHIPS
- ----------------------------------------------------------------------------------------------------------
Thomas S. Goho Trustee, since 1987 Chair of Finance, Wake None
63 Forest University, since
2006. Benson-Pruitt
Professorship, Wake Forest
University, Calloway School
of Business and Accountancy,
since 1999.
- ----------------------------------------------------------------------------------------------------------
Peter G. Gordon Trustee, since 1998 Chairman, CEO, and Co- None
63 (Chairman, since 2005) Founder of Crystal Geyser
Water Company, and President
of Crystal Geyser Roxane
Water Company.
- ----------------------------------------------------------------------------------------------------------
Richard M. Leach Trustee, since 1987 Retired. Prior thereto, None
72 President of Richard M.
Leach Associates (a
financial consulting firm).
- ----------------------------------------------------------------------------------------------------------
Olivia S. Mitchell Trustee, since 2006 Professor of Insurance and None
53 Risk Management, Wharton
School, University of
Pennsylvania. Director of
the Boettner Center on
Pensions and Retirement.
Research Associate and Board
Member, Penn Aging Research
Center. Research Associate,
National Bureau of Economic
Research.
- ----------------------------------------------------------------------------------------------------------
26
OTHER INFORMATION (UNAUDITED) WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
- --------------------------------------------------------------------------------
NON-INTERESTED TRUSTEES (CONTINUED)
- ----------------------------------------------------------------------------------------------------------
POSITION HELD AND PRINCIPAL OCCUPATIONS DURING
NAME AND AGE LENGTH OF SERVICE ** PAST FIVE YEARS OTHER DIRECTORSHIPS
- ----------------------------------------------------------------------------------------------------------
Timothy J. Penny Trustee, since 1996 Senior Counselor to the public None
54 relations firm of
Himle-Horner, and Senior
Fellow at the Humphrey
Institute, Minneapolis,
Minnesota (a public policy
organization).
- ----------------------------------------------------------------------------------------------------------
Donald C. Willeke Trustee, since 1996 Principal of the law firm of None
65 Willeke & Daniels.
- ----------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEE***
- ----------------------------------------------------------------------------------------------------------
POSITION HELD AND PRINCIPAL OCCUPATIONS DURING
NAME AND AGE LENGTH OF SERVICE ** PAST FIVE YEARS OTHER DIRECTORSHIPS
- ----------------------------------------------------------------------------------------------------------
J. Tucker Morse Trustee, since 1987 Private Investor/Real Estate None
61 Developer. Prior thereto,
Chairman of White Point
Capital, LLC until 2005.
- ----------------------------------------------------------------------------------------------------------
OFFICERS
- ----------------------------------------------------------------------------------------------------------
POSITION HELD AND PRINCIPAL OCCUPATIONS DURING
NAME AND AGE LENGTH OF SERVICE PAST FIVE YEARS OTHER DIRECTORSHIPS
- ----------------------------------------------------------------------------------------------------------
Karla M. Rabusch President, since 2003 Executive Vice President of None
46 Wells Fargo Bank, N.A. and
President of Wells Fargo Funds
Management, LLC. Senior Vice
President and Chief
Administrative Officer of
Wells Fargo Funds Management,
LLC from 2001 to 2003.
- ----------------------------------------------------------------------------------------------------------
C. David Messman Secretary, since 2000 Vice President and Managing None
45 Senior Counsel of Wells Fargo
Bank, N.A. and Senior Vice
President and Secretary of
Wells Fargo Funds Management,
LLC. Vice President and Senior
Counsel of Wells Fargo Bank,
N.A. from 1996 to 2003.
- ----------------------------------------------------------------------------------------------------------
27
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS OTHER INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
OFFICERS (CONTINUED)
- ----------------------------------------------------------------------------------------------------------
POSITION HELD AND PRINCIPAL OCCUPATIONS DURING
NAME AND AGE LENGTH OF SERVICE PAST FIVE YEARS OTHER DIRECTORSHIPS
- ----------------------------------------------------------------------------------------------------------
A. Erdem Cimen 32 Treasurer, since 2006 Vice President of Wells Fargo None
Bank, N.A. and Vice President
of Financial Operations for
Wells Fargo Funds Management,
LLC. Vice President and Group
Finance Officer of Wells Fargo
Bank, N.A. Auto Finance Group
from 2004 to 2006. Vice
President of Portfolio Risk
Management for Wells Fargo
Bank, N.A. Auto Finance Group
in 2004. Vice President of
Portfolio Research and
Analysis for Wells Fargo Bank,
N.A. Auto Finance Group from
2001 to 2004. Director of
Small Business Services Risk
Management for American
Express Travel Related
Services from 2000 to 2001.
- ----------------------------------------------------------------------------------------------------------
* The Statement of Additional Information includes additional information
about the Funds' Trustees and is available, without charge, upon
request, by calling 1-800-222-8222 or by visiting the Funds' Web site at
WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
** Length of service dates reflects a Trustee's commencement of service with
the Trust's predecessor entities.
*** As of March 31, 2006, one of the seven Trustees is considered an
"interested person" of the Trusts as defined in the Investment Company Act
of 1940. The interested Trustee, J. Tucker Morse, is affiliated with a
government securities dealer that is registered under the Securities
Exchange Act of 1934, which is not itself affiliated with Wells Fargo
Funds Management, LLC.
28
OTHER INFORMATION (UNAUDITED) WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
- --------------------------------------------------------------------------------
BOARD CONSIDERATION OF AND CONTINUATION OF INVESTMENT ADVISORY AND SUBADVISORY
AGREEMENTS:
ASIA PACIFIC FUND AND OVERSEAS FUND
- --------------------------------------------------------------------------------
Section 15(c) of the Investment Company Act of 1940 (the "1940 Act")
contemplates that the Board of Trustees (the "Board") of Wells Fargo Funds Trust
(the "Trust"), including a majority of the Trustees who have no direct or
indirect interest in the investment advisory and subadvisory agreements and are
not "interested persons" of the Trust, as defined in the 1940 Act (the
"Independent Trustees"), will annually review and consider the continuation of
the investment advisory and subadvisory agreements. In this regard, the Board
reviewed and re-approved, during the six months covered by this report: (i) an
investment advisory agreement with Wells Fargo Funds Management, LLC ("Funds
Management") for the Asia Pacific Fund and Overseas Fund (the "Funds"); (ii) an
investment subadvisory agreement with Wells Capital Management Incorporated
("Wells Capital Management") for the Asia Pacific Fund; and (iii) an investment
subadvisory agreement with New Star Institutional Managers Limited ("New Star")
for the Overseas Fund. The investment advisory agreement with Funds Management
and the investment subadvisory agreements with Wells Capital Management and New
Star (the "Subadvisers") are collectively referred to as the "Advisory
Agreements."
More specifically, at a meeting held on March 31, 2006, the Board,
including the Independent Trustees advised by their independent legal counsel,
considered the factors and reached the conclusions described below relating to
the selection of Funds Management and the Subadvisers and the continuation of
the Advisory Agreements. Prior to the March 31, 2006 meeting, the Board,
including the Independent Trustees, met in person and telephonically a number of
times, both with Funds Management and in private sessions relating to the
advisory contract approvals. The Independent Trustees were assisted in their
evaluation of the Advisory Agreements by independent legal counsel, from whom
they received separate legal advice and with whom they met separately from Funds
Management.
NATURE, EXTENT AND QUALITY OF SERVICES
- --------------------------------------------------------------------------------
The Board received and considered various data and information regarding
the nature, extent and quality of services provided to the Funds by Funds
Management and the Subadvisers under the Advisory Agreements. The Board also
received and considered responses of Funds Management and the Subadvisers to a
detailed set of requests submitted by the Independent Trustees' independent
legal counsel on behalf of such Trustees. The Board reviewed and considered the
data and information, which included, among other things, information about the
background and experience of senior management and the expertise of, and amount
of attention devoted to the Funds by, investment personnel of Funds Management
and the Subadvisers. In this regard, the Board specifically reviewed the
qualifications, backgrounds and responsibilities of the portfolio managers
primarily responsible for day-to-day portfolio management services for the
Funds.
The Board evaluated the ability of Funds Management and the Subadvisers,
based on their respective resources, reputations and other attributes, to
attract and retain highly qualified investment professionals, including
research, advisory, and supervisory personnel. In this regard, the Board
considered information regarding Funds Management's and the Subadviser's
compensation program for its personnel involved in the management of the Funds.
The Board further considered the compliance programs and compliance
records of Funds Management and the Subadvisers. In addition, the Board took
into account the administrative services provided to the Funds by Funds
Management and its affiliates. In considering these matters, the Board
considered not only the specific information presented in connection with the
meeting, but also the knowledge gained over the course of interacting with Funds
Management about various topics, including Funds Management's oversight of
service providers, such as the Subadvisers.
Based on the above factors, together with those referenced below, the
Board concluded that it was generally satisfied with the nature, extent and
quality of the investment advisory services provided to the Funds by Funds
Management and the Subadvisers.
FUND PERFORMANCE AND EXPENSES
- --------------------------------------------------------------------------------
The Board considered the performance results for each of the Funds over
various time periods ended December 31, 2005. The Board also considered these
results in comparison to the median performance results of the group of funds
that was determined by Lipper Inc. ("Lipper") to be the most similar to a given
Fund (the "Peer Group") and to the median performance of a broader universe of
relevant funds as determined by Lipper (the "Universe"), as well as to each
Fund's benchmark index. Lipper is an independent provider of investment company
data. The Board was provided with a description of the methodology used by
Lipper to select the mutual funds in each Fund's Peer Group and Universe. The
Board noted that the performance of the Asia Pacific Fund was better than the
median performance of its Peer Group for most time periods. The Board then noted
that the performance of the Overseas Fund was
29
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS OTHER INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
lower than the median performance of its peer group for all time periods and
required further review. Upon further review, the Board noted that the Overseas
Fund's underperformance was due, in part, to New Star's underweighting of
Japanese Financial stocks in the Fund's portfolio. The Board asked for a
continued report of the performance of the Overseas Fund.
The Board received and considered information regarding each Fund's net
operating expense ratio and its various components, including contractual
advisory fees, actual advisory fees, actual non-management fees, Rule 12b-1 and
non-Rule 12b-1 service fees, fee waivers/caps and/or expense reimbursements. The
Board also considered comparisons of these fees to the expense information for
each Fund's Peer Group and Universe, which comparative data was provided by
Lipper. The Board noted that the net operating expense ratios for the Funds were
the same as or lower than the Funds' Peer Group's median net operating expense
ratios.
Based on the above-referenced considerations and other factors, the Board
concluded that the overall performance and expense results supported the
re-approval of the Advisory Agreements for the Funds.
INVESTMENT ADVISORY AND SUBADVISORY FEE RATES
- --------------------------------------------------------------------------------
The Board reviewed and considered the contractual investment advisory fee
rates payable by the Funds to Funds Management for investment advisory services,
both on a stand-alone basis and on a combined basis with the Funds'
administration fee rates (the "Advisory Agreement Rates"). The Board took into
account the separate administrative services covered by the administration fee
rates. The Board also reviewed and considered the contractual investment
subadvisory fee rates (the "Subadvisory Agreement Rates") payable by Funds
Management to the Subadvisers for investment subadvisory services. In addition,
the Board reviewed and considered the existing fee waiver/cap arrangements
applicable to the Advisory Agreement Rates and considered the Advisory Agreement
Rates after taking the waivers/caps into account (the "Net Advisory Rates").
The Board received and considered information comparing the Advisory
Agreement Rates and Net Advisory Rates with those of the other funds in the Peer
Group. The Board noted that the Advisory Agreement Rates and the Net Advisory
Rates for the Funds were lower than, or not appreciably higher than, the median
rates of each respective Fund's Peer Group. In addition, the Board concluded
that the combined investment advisory/administration fee rates for these Funds
(before and after waivers/caps and/or expense reimbursements) were reasonable in
relation to each Fund's respective Peer Group, and reasonable in relation to the
services provided.
The Board also reviewed the Subadvisory Agreement Rates and concluded that
the Subadvisory Agreement Rates were fair and equitable, based on its
consideration of the factors described above.
PROFITABILITY
- --------------------------------------------------------------------------------
The Board received and considered a detailed profitability analysis of
Funds Management based on the Advisory Agreement Rates and Net Advisory Rates,
as well as on other relationships between the Funds on the one hand and Funds
Management affiliates on the other. The Board concluded that, in light of the
costs of providing investment management and other services to the Funds, the
profits and other ancillary benefits that Funds Management and its affiliates
received with regard to providing these services to the Funds were not
unreasonable.
The Board did not consider a separate profitability analysis of Wells
Capital Management, as its separate profitability from its relationship with the
Asia Pacific Fund was not a material factor in determining whether to renew the
agreement. The Board did not consider a separate profitability analysis of New
Star, which is not affiliated with Funds Management. The Board considered that
the subadvisory fees paid to New Star had been negotiated by Funds Management on
an arm's length basis and that New Star's separate profitability from its
relationship with the Overseas Fund was not a material factor in determining
whether to renew the agreement.
ECONOMIES OF SCALE
- --------------------------------------------------------------------------------
The Board received and considered general information regarding whether
there have been economies of scale with respect to the management of the Funds,
whether the Funds have appropriately benefited from any economies of scale and
whether there is potential for realization of any further economies of scale.
The Board acknowledged the inherent limitations of any analysis of an investment
adviser's economies of scale and of any attempt to correlate breakpoints with
such economies, stemming largely from the Board's understanding that economies
of scale are realized, if at all, by an investment adviser across a variety of
products and services, not just with respect to a single fund. The Board
concluded that any actual or potential economies of scale are, or will be,
shared reasonably with Fund shareholders, most particularly through Advisory
Agreement Rate breakpoints applicable to the Funds.
30
OTHER INFORMATION (UNAUDITED) WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
- --------------------------------------------------------------------------------
INFORMATION ABOUT SERVICES TO OTHER CLIENTS
- --------------------------------------------------------------------------------
The Board also received and considered information about the nature and
extent of services and fee rates offered by Funds Management to other similarly
situated series of the Trust, and those offered by the Subadvisers to other
clients, including other registered investment companies and separate accounts.
The Board concluded that the Advisory Agreement Rates, the Subadvisory Agreement
Rates and the Net Advisory Rates were within a reasonable range of the fee rates
offered to others by Funds Management and the Subadvisers, giving effect to
differences in services covered by such fee rates.
OTHER BENEFITS TO FUNDS MANAGEMENT AND THE SUBADVISERS
- --------------------------------------------------------------------------------
The Board received and considered information regarding potential
"fall-out" or ancillary benefits received by Funds Management and its affiliates
and the Subadvisers as a result of their relationship with the Funds. Such
benefits could include, among others, benefits directly attributable to the
relationship of Funds Management and the Subadvisers with the Funds and benefits
potentially derived from an increase in Funds Management's and the Subadvisers'
business as a result of their relationship with the Funds (such as the ability
to market to shareholders other financial products offered by Funds Management
and its affiliates or the Subadvisers and their affiliates).
The Board also considered the effectiveness of the policies of the Funds
in achieving the best execution of portfolio transactions, whether and to what
extent soft dollar credits are sought and how any such credits are utilized, any
benefits that may be realized by using an affiliated broker, the extent to which
efforts are made to recapture transaction costs, and the controls applicable to
brokerage allocation procedures. The Board also reviewed Funds Management's and
the Subadvisers' methods for allocating portfolio investment opportunities among
the Funds and other clients.
OTHER FACTORS AND BROADER REVIEW
- --------------------------------------------------------------------------------
The Board also considered the markets for distribution of the Funds,
including the principal channels through which the Funds' shares are offered and
sold. The Board noted that the Funds are part of one of the few fund families
that have both direct-to-fund and intermediary distribution.
As discussed above, the Board reviewed detailed materials received from
Funds Management and the Subadvisers annually as part of the re-approval process
under Section 15(c) of the 1940 Act. The Board also reviews and assesses the
quality of the services that the Funds receive throughout the year. In this
regard, the Board reviews reports of Funds Management and the Subadvisers at
each of its quarterly meetings, which include, among other things, a portfolio
review and fund performance reports. In addition, the Board confers with the
portfolio managers of the Funds at various times throughout the year.
After considering the above-described factors and based on its
deliberations and its evaluation of the information described above, the Board
concluded that approval of the continuation of the Advisory Agreements for the
Funds was in the best interest of the Funds and their shareholders. Accordingly,
the Board unanimously approved the continuation of the Advisory Agreements for
an additional one-year period.
31
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS LIST OF ABBREVIATIONS
- --------------------------------------------------------------------------------
The following is a list of common abbreviations for terms and entities which may
have appeared in this report.
ABAG -- Association of Bay Area Governments
ADR -- American Depositary Receipt
AMBAC -- American Municipal Bond Assurance Corporation
AMT -- Alternative Minimum Tax
ARM -- Adjustable Rate Mortgages
BART -- Bay Area Rapid Transit
CDA -- Community Development Authority
CDSC -- Contingent Deferred Sales Charge
CGIC -- Capital Guaranty Insurance Company
CGY -- Capital Guaranty Corporation
CMT -- Constant Maturity Treasury
COFI -- Cost of Funds Index
Connie Lee -- Connie Lee Insurance Company
COP -- Certificate of Participation
CP -- Commercial Paper
CTF -- Common Trust Fund
DW&P -- Department of Water & Power
DWR -- Department of Water Resources
EDFA -- Education Finance Authority
FFCB -- Federal Farm Credit Bank
FGIC -- Financial Guaranty Insurance Corporation
FHA -- Federal Housing Authority
FHLB -- Federal Home Loan Bank
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
FRN -- Floating Rate Notes
FSA -- Financial Security Assurance, Inc
GDR -- Global Depositary Receipt
GNMA -- Government National Mortgage Association
GO -- General Obligation
HFA -- Housing Finance Authority
HFFA -- Health Facilities Financing Authority
IDA -- Industrial Development Authority
IDR -- Industrial Development Revenue
LIBOR -- London Interbank Offered Rate
LLC -- Limited Liability Corporation
LOC -- Letter of Credit
LP -- Limited Partnership
MBIA -- Municipal Bond Insurance Association
MFHR -- Multi-Family Housing Revenue
MUD -- Municipal Utility District
MTN -- Medium Term Note
PCFA -- Pollution Control Finance Authority
PCR -- Pollution Control Revenue
PFA -- Public Finance Authority
PLC -- Private Placement
PSFG -- Public School Fund Guaranty
RDA -- Redevelopment Authority
RDFA -- Redevelopment Finance Authority
REITS -- Real Estate Investment Trusts
R&D -- Research & Development
SFHR -- Single Family Housing Revenue
SFMR -- Single Family Mortgage Revenue
SLMA -- Student Loan Marketing Association
STEERS -- Structured Enhanced Return Trust
TBA -- To Be Announced
TRAN -- Tax Revenue Anticipation Notes
USD -- Unified School District
V/R -- Variable Rate
WEBS -- World Equity Benchmark Shares
XLCA -- XL Capital Assurance
32
THIS PAGE IS INTENTIONALLY LEFT BLANK --
THIS PAGE IS INTENTIONALLY LEFT BLANK --
[LOGO]
WELLS ADVANTAGE
FARGO FUNDS
More information about WELLS FARGO This report and the financial statements
ADVANTAGE FUNDS(SM) is available free contained herein are submitted for the
upon request. To obtain literature, general information of the shareholders
please write, e-mail, visit the of WELLS FARGO ADVANTAGE FUNDS. If this
Funds' Web site, or call: report is used for promotional purposes,
distribution of the report must be
WELLS FARGO ADVANTAGE FUNDS accompanied or preceded by a current
P.O. Box 8266 prospectus. For a prospectus containing
Boston, MA 02266-8266 more complete information, including
charges and expenses, call
E-mail: wfaf@wellsfargo.com 1-800-222-8222 or visit the Funds' Web
Web site: www.wellsfargo.com site at
/advantagefunds www.wellsfargo.com/advantagefunds.
Retail Investment Professionals: Please consider the investment
1-888-877-9275 objective, risks, charges, and expenses
Institutional Investment of the investment carefully before
Professionals: 1-866-765-0778 investing. This and other information
about WELLS FARGO ADVANTAGE FUNDS can be
found in the current prospectus. Read
the prospectus carefully before you
invest or send money.
Wells Fargo Funds Management, LLC, a
wholly owned subsidiary of Wells Fargo &
Company, provides investment advisory
and administrative services for WELLS
FARGO ADVANTAGE FUNDS. Other affiliates
of Wells Fargo & Company provide
sub-advisory and other services for the
Funds. The Funds are distributed by
WELLS FARGO FUNDS DISTRIBUTOR, LLC,
Member NASD/SIPC, an affiliate of Wells
Fargo & Company.
-----------------------------------------------------
NOT FDIC INSURED o NO BANK GUARANTEE o MAY LOSE VALUE
-----------------------------------------------------
- --------------------------------------------------------------------------------
(C) 2006 Wells Fargo www.wellsfargo.com/advantagefunds RT056260 05-31
Advantage Funds, LLC. SINTNLD/SAR107 03/06
All rights reserved.
[LOGO]
WELLS ADVANTAGE
FARGO FUNDS
- --------------------------------------------------------------------------------
MARCH 31, 2006
- --------------------------------------------------------------------------------
Semi-Annual Report
[PHOTO OMITTED]
- --------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
Wells Fargo Advantage Emerging Markets Focus Fund
Wells Fargo Advantage Institutional Emerging Markets Fund
Wells Fargo Advantage International Core Fund
Wells Fargo Advantage International Equity Fund
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
- --------------------------------------------------------------------------------
Table of Contents
Letter to Shareholders .................................................... 1
- --------------------------------------------------------------------------------
Performance Highlights
- --------------------------------------------------------------------------------
Emerging Markets Focus Fund ............................................ 2
Institutional Emerging Markets Fund .................................... 4
International Core Fund ................................................ 6
International Equity Fund .............................................. 8
Fund Expenses (Unaudited) ................................................. 10
- --------------------------------------------------------------------------------
Portfolio of Investments
- --------------------------------------------------------------------------------
Emerging Markets Focus Fund ............................................ 12
Institutional Emerging Markets Fund .................................... 17
International Core Fund ................................................ 24
International Equity Fund .............................................. 28
Financial Statements
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities ................................... 37
Statements of Operations ............................................... 38
Statements of Changes in Net Assets .................................... 40
Financial Highlights ................................................... 44
Notes to Financial Highlights ............................................. 48
- --------------------------------------------------------------------------------
Notes to Financial Statements ............................................. 49
- --------------------------------------------------------------------------------
Other Information (Unaudited) ............................................. 56
- --------------------------------------------------------------------------------
List of Abbreviations ..................................................... 61
- --------------------------------------------------------------------------------
For the Semi-Annual Report of the WELLS FARGO ADVANTAGE INTERNATIONAL VALUE
FUND, please refer to the WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS'
Semi-Annual Report.
-------------------------------------------------
NOT FDIC INSURED-NO BANK GUARANTEE-MAY LOSE VALUE
-------------------------------------------------
THIS PAGE IS INTENTIONALLY LEFT BLANK --
LETTER TO SHAREHOLDERS WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
- --------------------------------------------------------------------------------
DEAR VALUED SHAREHOLDER,
Enclosed please find the WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
semi-annual report for the six-month period that ended March 31, 2006. On the
following pages, you will find a discussion of each Fund that includes
performance highlights, changes to the Fund, and the portfolio managers'
strategic outlook. You will also find facts and figures about each Fund.
GLOBAL ECONOMY
- --------------------------------------------------------------------------------
Global economic activity remained strong during the past six months. This
continued strength has helped to counterbalance higher energy and basic material
prices, as well as more restrictive monetary policies. Both the European Central
Bank and Federal Reserve Board continued to raise interest rates during the
period, which, given their collective impact, may help to keep prices stable by
restraining access to money for development and investment. The Bank of Japan
followed in their footsteps and in March 2006 announced the end to its
five-year, deflation-fighting policy by taking its first step toward increasing
interest rates from zero percent. If energy and commodity prices continue to
rise, central banks may persist in raising interest rates in an attempt to ward
off inflation. Many companies and countries will continue to monitor the
economic progress of the United States as well, because the strength and growth
of the world's largest economy continues to have great bearing on its
international business partners.
INTERNATIONAL STOCKS
- --------------------------------------------------------------------------------
International stocks continued to perform admirably in the fourth quarter
of 2005 and through the first quarter of 2006, with the Morgan Stanley Capital
International Europe, Australasia, and Far East (MSCI EAFE) Index 1 ending the
six-month period with a total return of 13.86%. The dollar was generally flat
during the period after experiencing slight appreciation in the fourth quarter
of 2005 and then experiencing slight depreciation in the first quarter of 2006.
Japan, which was one of the strongest-performing countries in the fourth
quarter, continued to move higher during the start of 2006 but at a more
moderate pace. The ongoing economic recovery in Japan continued to be validated
with the release of new economic data. Emerging markets remained among the top
performers during the period as investors continued to invest in the economic
growth and increasing affluence of these up-and-coming economies.
LOOKING AHEAD
- --------------------------------------------------------------------------------
Many factors can affect the stability of global economic activity,
including monetary policies, war, natural disasters, terrorism, and political
uncertainty. That's why we believe that successful investing includes taking a
balanced, long-term approach that may include domestic and international
equities across several asset classes. While diversification may not prevent
losses in a downturn, it may help to reduce them and keep you on track to reach
your financial goals. To help you reach your diversification goals, we offer
funds across every key category, each guided by skillful, independent money
managers--our subadvisers--chosen for their focused attention to a particular
investment style. We believe that our insistence on seeking outstanding money
managers who share our dedication to pursuing consistent, long-term results
offers our investors the firm footing they need to navigate changing market
conditions as they move forward to their financial destinations.
Thank you for choosing WELLS FARGO ADVANTAGE FUNDS(SM)--we appreciate your
confidence in us. If you have any questions about your investment, please
contact your investment professional, or call us at 1-800-222-8222. You may also
visit our Web site at WWW.WELLSFARGOFUNDS.COM/ADVANTAGEFUNDS.
Sincerely,
/s/ Karla M. Rabusch
Karla M. Rabusch
President
WELLS FARGO ADVANTAGE FUNDS
1 The Morgan Stanley Capital International Europe, Australasia, and Far East
("MSCI EAFE") Index is an unmanaged group of securities widely regarded by
investors to be representations of the stock markets of Europe, Australasia, and
the Far East.You cannot invest directly in an Index.
1
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE EMERGING MARKETS FOCUS FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The WELLS FARGO ADVANTAGE EMERGING MARKETS FOCUS FUND (the Fund) seeks
long-term capital appreciation.
ADVISER SUBADVISER
Wells Fargo Funds Management, LLC Wells Capital Management Incorporated
FUND MANAGERS FUND INCEPTION DATE
Frank Chiang 12/31/1997
Josephine Jimenez, CFA
HOW DID THE FUND PERFORM OVER THE 6-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Class A shares returned 24.72% 1 (excluding sales charge) for
the six-month period that ended March 31, 2006, outperforming its benchmark, the
MSCI Emerging Markets Index(SM) 2, which returned 20.19%, during the same
period.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB SITE -
WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. FOR CLASS
B SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%. PERFORMANCE
INCLUDING SALES CHARGE ASSUMES THE SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. ADMINISTRATOR CLASS SHARES ARE SOLD WITHOUT A FRONT-END SALES CHARGE OR
CONTINGENT DEFERRED SALES CHARGE. OTHER FEES AND EXPENSES APPLY TO AN INVESTMENT
IN THE FUND AND ARE DESCRIBED IN THE FUND'S CURRENT PROSPECTUS.
THE FUND HAS A REDEMPTION FEE OF 2.00% DEDUCTED FROM THE NET PROCEEDS OF
SHARES REDEEMED OR EXCHANGED WITHIN 30 DAYS AFTER PURCHASE. PERFORMANCE DATA
DOES NOT REFLECT THE DEDUCTION OF THIS FEE, WHICH, IF REFLECTED, WOULD REDUCE
THE PERFORMANCE.
PLEASE KEEP IN MIND THAT HIGH DOUBLE-DIGIT RETURNS WERE PRIMARILY ACHIEVED
DURING FAVORABLE MARKET CONDITIONS. YOU SHOULD NOT EXPECT THAT SUCH FAVORABLE
RETURNS CAN BE CONSISTENTLY ACHIEVED. A FUND'S PERFORMANCE, ESPECIALLY FOR VERY
SHORT TIME PERIODS, SHOULD NOT BE THE SOLE FACTOR IN MAKING YOUR INVESTMENT
DECISION.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
Equities in emerging markets surged during the period in response to
several macroeconomic reports that indicated a steady expansion in the global
economy. Commodity producers benefited from higher prices as supply continually
fell short of demand.
During a period when the majority of the Fund's holdings contributed
positively, the Fund's Brazilian holdings provided outstanding results. For
example, in the area of commodity-focused companies, the Fund's top holding was
Cosan, a Brazilian sugar refiner that more than doubled in price after its
initial public offering in early 2006. Petroleo Brasileiro ("Petrobras"), one of
the Fund's largest energy holdings, also rose as crude oil prices hovered near
$60 a barrel during the period.
China Overseas Land & Investment Ltd., an additional top-performing
holding for the period, rose in the wake of a regional real estate market boom
that increased property values throughout Asia.
In South Africa, Impala Platinum Holdings Ltd., another one of the Fund's
well-documented performance leaders, increased along with platinum prices.
The Fund's holdings in South Korea's Samsung Electronics, LG Electronics,
and Hyundai Motor enjoyed an outstanding fourth quarter in 2005, but then the
stocks suffered setbacks during the first quarter of 2006. We reduced the Fund's
technology weighting because of renewed skepticism in the near term. We saw much
of the same in Taiwan, and even though Hon Hai Precision and Taiwan
Semiconductor performed well early in the period, we have since taken profits
and reduced the Fund's exposure to Taiwan.
WHAT CHANGES DID YOU MAKE TO THE FUND'S HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
In addition to the decreases we made in the Fund's holdings of South
Korean and Taiwanese companies, we also increased our exposure to Brazil by
increasing Cosan and Petrobras as the result of our positive view of commodity
prices, especially in sugar and oil. We also increased the Fund's exposure to
China, South Africa, and Russia due to a positive assessment of commodities and
the consumer sectors in those countries; in particular, we added to the consumer
staples, energy, and materials sectors.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
The superior economic growth experienced in many of the emerging market
countries has created a wealth effect that has led to strong domestic
consumption trends, especially in the real estate, banking, and consumer
sectors. We also like the energy sector, given the strong demand for oil in
China and a positive price outlook. Sugar has been one of the Fund's favored
commodities since early 2006. We believe that sugar and ethanol producers will
benefit from supply constraints and from the increased demand for alternative
fuels. In the materials sector, we remain selective and currently favor steel,
nickel, copper, and other precious metals that are in short supply. We are
optimistic about 2006 and believe that the current macroeconomic drivers are
positive for equities in emerging markets.
STOCK FUNDS SHOULD ONLY BE CONSIDERED FOR LONG-TERM GOALS AS VALUES
FLUCTUATE IN RESPONSE TO THE ACTIVITIES OF INDIVIDUAL COMPANIES AND GENERAL
MARKET AND ECONOMIC CONDITIONS. FOREIGN INVESTMENTS PRESENT CERTAIN RISKS THAT
MAY NOT BE PRESENT IN DOMESTIC INVESTMENTS, INCLUDING CURRENCY FLUCTUATION, THE
POTENTIAL FOR DIPLOMATIC AND POLITICAL INSTABILITY, REGULATORY AND LIQUIDITY
RISKS, FOREIGN TAXATION AND DIFFERENCES IN AUDITING AND OTHER FINANCIAL
STANDARDS. THESE RISKS ARE GENERALLY INTENSIFIED IN EMERGING MARKETS. THE FUND'S
INVESTMENT PROCESS MAY, AT TIMES, RESULT IN HIGHER THAN AVERAGE PORTFOLIO
TURNOVER AND INCREASED TRADING EXPENSES, AND MAY GENERATE HIGHER SHORT-TERM
CAPITAL GAINS. INVESTMENT STRATEGIES THAT EMPHASIZE PARTICULAR MARKET SEGMENTS
OR FEWER SECURITIES TEND TO INCREASE THE TOTAL RISK OF AN INVESTMENT (RELATIVE
TO THE BROADER MARKET). THIS FUND IS EXPOSED TO SMALL COMPANY SECURITIES RISK.
CONSULT THE FUND'S PROSPECTUS FOR ADDITIONAL INFORMATION ON THESE AND OTHER
RISKS.
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2006, and are those of the Fund's
managers. The views are subject to change at any time in response to changing
circumstances in the market and are not intended to predict or guarantee the
future performance of any individual security, market sector or the markets
generally, or the WELLS FARGO ADVANTAGE EMERGING MARKETS FOCUS FUND.
1 The Fund's adviser has committed through January 31, 2007, to waive fees
and/or reimburse expenses to the extent necessary to maintain a certain net
operating expense ratio for the Fund. Actual reductions of operating expenses
can increase total return to shareholders. Without these reductions, the Fund's
returns would have been lower.
2
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge
------------------------------------ ------------------------------------
Life of Life of
6-Month* 1-Year 5-Year Fund 6-Month* 1-Year 5-Year Fund
- -----------------------------------------------------------------------------------------------------------------------------------
Emerging Markets Focus Fund - Class A
(Incept. Date 10/31/2001) 17.54 39.79 19.31 15.70 24.72 48.32 20.73 16.54
- -----------------------------------------------------------------------------------------------------------------------------------
Emerging Markets Focus Fund - Class B
(Incept. Date 10/31/2001) 19.24 42.30 19.93 16.15 24.24 47.30 20.12 16.15
- -----------------------------------------------------------------------------------------------------------------------------------
Emerging Markets Focus Fund - Class C
(Incept. Date 10/31/2001) 23.16 46.16 19.82 15.47 24.16 47.16 19.82 15.47
- -----------------------------------------------------------------------------------------------------------------------------------
Emerging Markets Focus Fund - Administrator Class
(Incept. Date 12/31/1997) 24.85 48.74 20.97 16.93
- -----------------------------------------------------------------------------------------------------------------------------------
Benchmark
- -----------------------------------------------------------------------------------------------------------------------------------
MSCI Emerging Markets Index(SM) 2 20.19 47.98 23.57 10.91
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FUND CHARACTERISTICS 3 (AS OF MARCH 31, 2006)
- -------------------------------------------------------------------
Beta** 1.17
- -------------------------------------------------------------------
Price to Earnings Ratio (trailing 12 months) 15.00x
- -------------------------------------------------------------------
Price to Book Ratio 3.25x
- -------------------------------------------------------------------
Median Market Cap ($B) $ 10.71
- -------------------------------------------------------------------
Portfolio Turnover*** 50%
- -------------------------------------------------------------------
** A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE MSCI EMERGING
MARKETS INDEX(SM) BETA IS 1.00 BY DEFINITION.
*** THIS MEASURE IS BASED ON SIX MONTHS OF THE FUND'S ACTIVITY.
TEN LARGEST EQUITY HOLDINGS 3,4 (AS OF MARCH 31, 2006)
- -------------------------------------------------------------------
Lukoil ADR 9.31%
- -------------------------------------------------------------------
Natura Cosmeticos SA 6.19%
- -------------------------------------------------------------------
Samsung Electronics Company Limited 5.92%
- -------------------------------------------------------------------
Cosan SA Industria e Comercio 5.40%
- -------------------------------------------------------------------
Bajaj Hindusthan Limited 4.77%
- -------------------------------------------------------------------
Hon Hai Precision Industry Company Limited 4.27%
- -------------------------------------------------------------------
China Overseas Land & Investment Limited 4.16%
- -------------------------------------------------------------------
Petroleo Brasileiro SA ADR 4.00%
- -------------------------------------------------------------------
Shinhan Financial Group Company Limited 3.57%
- -------------------------------------------------------------------
Gold Fields Limited 3.12%
PORTFOLIO COMPOSITION 3 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
USA 1%
Asia/Pacific Ex Japan 40%
Continental Europe 18%
Latin America 31%
Mideast/Africa 10%
GROWTH OF $10,000 INVESTMENT 5 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
WELLS FARGO ADVANTAGE EMERGING
WELLS FARGO ADVANTAGE EMERGING MARKETS FOCUS FUND - Administrator
Date MARKETS FOCUS FUND - Class A Class MSCI Emerging Markets Index
12/31/1997 9425 10000 10000
1/31/1998 8921 9470 9,216
2/28/1998 9963 10580 10,178
3/31/1998 10768 11440 10,619
4/30/1998 11281 11990 10,504
5/31/1998 9743 10360 9,064
6/30/1998 8780 9340 8,113
7/31/1998 9029 9610 8,371
8/31/1998 6518 6940 5,950
9/30/1998 7210 7680 6,328
10/31/1998 7769 8280 6,994
11/30/1998 7972 8500 7,576
12/31/1998 7429 7924 7,466
1/31/1999 7780 8302 7,346
2/28/1999 7672 8190 7,417
3/31/1999 9207 9834 8,395
4/30/1999 10226 10927 9,433
5/31/1999 10690 11427 9,378
6/30/1999 12556 13429 10,443
7/31/1999 12455 13327 10,159
8/31/1999 11543 12356 10,251
9/30/1999 11405 12214 9,904
10/31/1999 12057 12918 10,115
11/30/1999 14701 15757 11,022
12/31/1999 16434 17623 12,424
1/31/2000 16465 17664 12,498
2/29/2000 16584 17799 12,663
3/31/2000 17619 18918 12,725
4/30/2000 15845 17021 11,519
5/31/2000 14989 16109 11,043
6/30/2000 15976 17177 11,432
7/31/2000 15410 16576 10,844
8/31/2000 16337 17581 10,897
9/30/2000 14992 16140 9,945
10/31/2000 14350 15456 9,224
11/30/2000 12958 13963 8,418
12/31/2000 13530 14586 8,621
1/31/2001 14778 15938 9,808
2/28/2001 13933 15033 9,040
3/31/2001 12983 14014 8,152
4/30/2001 13632 14721 8,555
5/31/2001 14117 15252 8,657
6/30/2001 13466 14555 8,480
7/31/2001 12412 13422 7,944
8/31/2001 12233 13235 7,865
9/30/2001 10393 11249 6,648
10/31/2001 10917 11821 7,060
11/30/2001 12002 13006 7,798
12/31/2001 13052 14039 8,417
1/31/2002 13633 14678 8,702
2/28/2002 13952 14982 8,845
3/31/2002 14513 15611 9,377
4/30/2002 14784 15904 9,438
5/31/2002 15084 16239 9,287
6/30/2002 14029 15108 8,590
7/31/2002 13333 14354 7,937
8/31/2002 13110 14113 8,059
9/30/2002 11552 12447 7,190
10/31/2002 12278 13243 7,656
11/30/2002 12742 13746 8,183
12/31/2002 12329 13298 7,912
1/31/2003 12087 13057 7,877
2/28/2003 11739 12680 7,665
3/31/2003 11661 12596 7,447
4/30/2003 13452 14545 8,111
5/31/2003 14090 15237 8,693
6/30/2003 14777 15986 9,188
7/31/2003 15765 17062 9,763
8/31/2003 16887 18285 10,418
9/30/2003 17197 18612 10,494
10/31/2003 18726 20278 11,387
11/30/2003 19190 20784 11,527
12/31/2003 21116 22882 12,363
1/31/2004 20894 22640 12,802
2/29/2004 21358 23156 13,393
3/31/2004 21377 23178 13,565
4/30/2004 18939 20531 12,455
5/31/2004 18465 20035 12,210
6/30/2004 18445 20004 12,266
7/31/2004 18010 19540 12,049
8/31/2004 19036 20657 12,554
9/30/2004 19955 21670 13,279
10/31/2004 20284 22028 13,598
11/30/2004 22287 24211 14,857
12/31/2004 23710 25761 15,572
1/31/2005 23100 25097 15,622
2/28/2005 24890 27058 16,993
3/31/2005 22452 24411 15,873
4/30/2005 21513 23399 15,450
5/31/2005 22248 24200 15,993
6/30/2005 22645 24643 16,545
7/31/2005 24203 26341 17,717
8/31/2005 24745 26942 17,876
9/30/2005 26700 29083 19,542
10/31/2005 24948 27174 18,266
11/30/2005 26845 29251 19,778
12/31/2005 28404 30950 20,949
1/31/2006 32659 35599 23,302
2/28/2006 32216 35115 23,279
3/31/2006 33299 36309 23,488
- --------------------------------------------------------------------------------
Prior to April 11, 2005, the WELLS FARGO ADVANTAGE EMERGING MARKETS FOCUS
FUND was named the Wells Fargo Montgomery Emerging Markets Focus Fund.
Performance shown for Class A, Class B and Class C shares of the Fund for
periods prior to June 9, 2003, reflects the performance of the applicable share
class of the Montgomery Emerging Markets Focus Fund, its predecessor fund,
adjusted to reflect the applicable sales charges, and for periods prior to
October 31,2001,reflects the performance of the Class R shares of the Montgomery
Emerging Markets Focus Fund adjusted to reflect the applicable sales charges and
expenses. Prior to April 11, 2005, the WELLS FARGO ADVANTAGE EMERGING MARKETS
FOCUS FUND - Administrator Class was named the Wells Fargo Montgomery Emerging
Markets Focus Fund -Institutional Class. Performance shown for the Administrator
Class shares for periods prior to June 9, 2003, reflects the performance of the
Class R shares.
2 The MSCI Emerging Markets Index(SM) is a free float-adjusted market
capitalization index that is designed to measure equity market performance in
the global emerging markets. As of May 2005 the MSCI Emerging Markets Index(SM)
consisted of the following 26 emerging market country indices: Argentina,
Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India,
Indonesia, Israel, Jordan, Korea, Malaysia, Mexico, Morocco, Pakistan, Peru,
Philippines, Poland, Russia, South Africa, Taiwan, Thailand, Turkey and
Venezuela. You cannot invest directly in an Index.
3 Fund characteristics, ten largest equity holdings and portfolio composition
are subject to change. Cash and cash equivalents are not reflected in the
calculations of fund characteristics, ten largest equity holdings and portfolio
composition.
4 The Ten Largest Equity Holdings are calculated based on the market value of
the securities divided by total market value of the portfolio.
5 The chart compares the performance of the WELLS FARGO ADVANTAGE EMERGING
MARKETS FOCUS FUND Class A and Administrator Class shares for the life of the
Fund with the MSCI Emerging Markets Index(SM). The chart assumes a hypothetical
investment of $10,000 in Class A and Administrator Class shares and reflects all
operating expenses and, for Class A shares, assumes the maximum initial sales
charge of 5.75%.
3
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE INSTITUTIONAL EMERGING MARKETS FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The WELLS FARGO ADVANTAGE INSTITUTIONAL EMERGING MARKETS FUND (the Fund)
seeks long-term capital appreciation.
ADVISER SUBADVISER
Wells Fargo Funds Management, LLC Wells Capital Management Incorporated
FUND MANAGERS FUND INCEPTION DATE
Frank Chiang 12/17/1993
Josephine Jimenez, CFA
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Institutional Class shares returned 24.52% 1 for the six-month
period that ended March 31, 2006, outperforming its benchmark, the MSCI Emerging
Markets Index(SM) 2, which returned 20.19%, during the same period.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED. CURRENT
MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB SITE
- -WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
INSTITUTIONAL CLASS SHARES ARE SOLD WITHOUT A FRONT-END SALES CHARGE OR
CONTINGENT DEFERRED SALES CHARGE. OTHER FEES AND EXPENSES APPLY TO AN INVESTMENT
IN THE FUND AND ARE DESCRIBED IN THE FUND'S CURRENT PROSPECTUS.
THE FUND HAS A REDEMPTION FEE OF 2.00% DEDUCTED FROM THE NET PROCEEDS OF
SHARES REDEEMED OR EXCHANGED WITHIN 30 DAYS AFTER PURCHASE. PERFORMANCE DATA
DOES NOT REFLECT THE DEDUCTION OF THIS FEE, WHICH, IF REFLECTED, WOULD REDUCE
THE PERFORMANCE.
PLEASE KEEP IN MIND THAT HIGH DOUBLE-DIGIT RETURNS WERE PRIMARILY ACHIEVED
DURING FAVORABLE MARKET CONDITIONS. YOU SHOULD NOT EXPECT THAT SUCH FAVORABLE
RETURNS CAN BE CONSISTENTLY ACHIEVED. A FUND'S PERFORMANCE, ESPECIALLY FOR VERY
SHORT TIME PERIODS, SHOULD NOT BE THE SOLE FACTOR IN MAKING YOUR INVESTMENT
DECISION.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
Equities in emerging markets surged during the period in response to
several macroeconomic reports that indicated a steady expansion in the global
economy. Commodity producers benefited from higher prices as supply continually
fell short of demand.
During a period when the majority of the Fund's holdings contributed
positively, the Fund's Brazilian holdings provided outstanding results. For
example, in the area of commodity-focused companies, the Fund's top holding was
Cosan, a Brazilian sugar refiner that more than doubled in price after its
initial public offering in early 2006. Petroleo Brasileiro ("Petrobras"), one of
the Fund's largest energy holdings, also rose as crude oil prices hovered near
$60 a barrel during the period.
China Overseas Land & Investment Ltd., an additional top-performing
holding for the period, rose in the wake of a regional real estate market boom
that increased property values throughout Asia.
In South Africa, Impala Platinum Holdings Ltd., another one of the Fund's
well-documented performance leaders, increased along with platinum prices.
The Fund's holdings in South Korea's Samsung Electronics, LG Electronics,
and Hyundai Motor enjoyed an outstanding fourth quarter in 2005, but then the
stocks suffered setbacks during the first quarter of 2006. We reduced the Fund's
technology weighting because of renewed skepticism in the near term. We saw much
of the same in Taiwan, and even though Hon Hai Precision Industries, Taiwan
Semiconductor Manufacturing Company, Asustek, and AU Optronics performed well
early in the period, we have since taken profits and reduced the Fund's exposure
to Taiwan.
WHAT CHANGES DID YOU MAKE TO THE FUND'S HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
In addition to the decreases we made in the Fund's holdings of South
Korean and Taiwanese companies, we also decreased the Fund's exposure to
Hungary, Argentina, and Israel due to market uncertainies. In contrast, we
increased our exposure to Brazil by increasing Cosan and Petroleo Brasileiro as
the result of our positive view of commodity prices, especially in sugar and
oil. We also increased the Fund's exposure to China, South Africa, and Russia
due to a positive assessment of commodities and the consumer sectors in those
countries; in particular, we added to the consumer staples, energy, and
materials sectors.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
The superior economic growth experienced in many of the emerging market
countries has created a wealth effect that has led to strong domestic
consumption trends, especially in the real estate, banking, and consumer
sectors. We also like the energy sector, given the strong demand for oil in
China and a positive price outlook. Sugar has been one of the Fund's favored
commodities since early 2006. We believe that sugar and ethanol producers will
benefit from supply constraints and from the increased demand for alternative
fuels. In the materials sector, we remain selective and currently favor steel,
nickel, copper, and other precious metals that are in short supply. We are
optimistic about 2006 and believe that the current macroeconomic drivers are
positive for equities in emerging markets.
STOCK FUNDS SHOULD ONLY BE CONSIDERED FOR LONG-TERM GOALS AS VALUES
FLUCTUATE IN RESPONSE TO THE ACTIVITIES OF INDIVIDUAL COMPANIES AND GENERAL
MARKET AND ECONOMIC CONDITIONS. FOREIGN INVESTMENTS PRESENT CERTAIN RISKS THAT
MAY NOT BE PRESENT IN DOMESTIC INVESTMENTS, INCLUDING CURRENCY FLUCTUATION, THE
POTENTIAL FOR DIPLOMATIC AND POLITICAL INSTABILITY, REGULATORY AND LIQUIDITY
RISKS, FOREIGN TAXATION AND DIFFERENCES IN AUDITING AND OTHER FINANCIAL
STANDARDS. THESE RISKS ARE GENERALLY INTENSIFIED IN EMERGING MARKETS. THE FUND'S
INVESTMENT PROCESS MAY, AT TIMES, RESULT IN HIGHER THAN AVERAGE PORTFOLIO
TURNOVER AND INCREASED TRADING EXPENSES, AND MAY GENERATE HIGHER SHORT-TERM
CAPITAL GAINS. INVESTMENT STRATEGIES THAT EMPHASIZE PARTICULAR MARKET SEGMENTS
OR FEWER SECURITIES TEND TO INCREASE THE TOTAL RISK OF AN INVESTMENT (RELATIVE
TO THE BROADER MARKET). THIS FUND IS EXPOSED TO SMALL COMPANY SECURITIES RISK.
CONSULT THE FUND'S PROSPECTUS FOR ADDITIONAL INFORMATION ON THESE AND OTHER
RISKS.
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2006, and are those of the Fund's
managers. The views are subject to change at any time in response to changing
circumstances in the market and are not intended to predict or guarantee the
future performance of any individual security, market sector or the markets
generally, or the WELLS FARGO ADVANTAGE INSTITUTIONAL EMERGING MARKETS FUND.
4
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
6-Month* 1-Year 5-Year 10-Year
- --------------------------------------------------------------------------------------------------------------------------
Institutional Emerging Markets Fund - Institutional Class (Incept. Date 12/17/1993) 24.52 47.77 22.42 7.57
- --------------------------------------------------------------------------------------------------------------------------
Benchmark
- --------------------------------------------------------------------------------------------------------------------------
MSCI Emerging Markets Index(SM) 2 20.19 47.98 23.57 7.56
- --------------------------------------------------------------------------------------------------------------------------
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FUND CHARACTERISTICS 3 (AS OF MARCH 31, 2006)
- -------------------------------------------------------------------
Beta** 1.01
- -------------------------------------------------------------------
Price to Earnings Ratio (trailing 12 months) 15.70x
- -------------------------------------------------------------------
Price to Book Ratio 3.14x
- -------------------------------------------------------------------
Median Market Cap ($B) $ 7.83
- -------------------------------------------------------------------
Portfolio Turnover*** 35%
- -------------------------------------------------------------------
** A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE MSCI EMERGING
MARKETS INDEX(SM) BETA IS 1.00 BY DEFINITION.
*** THIS MEASURE IS BASED ON SIX MONTHS OF THE FUND'S ACTIVITY.
TEN LARGEST EQUITY HOLDINGS 3,4 (AS OF MARCH 31, 2006)
- -------------------------------------------------------------------
Samsung Electronics Company Limited 5.43%
- -------------------------------------------------------------------
Hon Hai Precision Industry Company Limited 4.16%
- -------------------------------------------------------------------
Cosan SA Industria e Comercio 3.63%
- -------------------------------------------------------------------
Bajaj Hindusthan Limited 3.52%
- -------------------------------------------------------------------
Lukoil ADR 3.48%
- -------------------------------------------------------------------
China Overseas Land & Investment Limited 3.07%
- -------------------------------------------------------------------
Taiwan Semiconductor Manufacturing Company Limited 2.71%
- -------------------------------------------------------------------
Petroleo Brasileiro SA 2.60%
- -------------------------------------------------------------------
Companhia Vale Do Rio Doce Preferreda 2.30%
- -------------------------------------------------------------------
Banco Bradesco SA Preferred 2.06%
- -------------------------------------------------------------------
PORTFOLIO COMPOSITION 3 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Asia/Pacific Ex Japan 50%
Continental Europe 15%
Latin America 21%
Mideast/Africa 12%
United Kingdom 1%
USA 1%
GROWTH OF $10,000 INVESTMENT 5 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
WELLS FARGO ADVANTAGE INSTITUTIONAL
EMERGING MARKETS FUND - Institutional
Date Class MSCI Emerging Markets Index
3/31/1996 10000 10000
4/30/1996 10537 10,400
5/31/1996 10713 10,353
6/30/1996 10796 10,418
7/31/1996 10136 9,706
8/31/1996 10438 9,954
9/30/1996 10526 10,041
10/31/1996 10306 9,773
11/30/1996 10523 9,937
12/31/1996 10626 9,982
1/31/1997 11488 10,662
2/28/1997 11882 11,119
3/31/1997 11606 10,827
4/30/1997 11615 10,846
5/31/1997 12051 11,157
6/30/1997 13004 11,754
7/31/1997 13442 11,929
8/31/1997 12059 10,411
9/30/1997 12506 10,700
10/31/1997 10355 8,944
11/30/1997 10011 8,618
12/31/1997 10418 8,825
1/31/1998 9266 8,133
2/28/1998 9895 8,982
3/31/1998 10167 9,372
4/30/1998 10311 9,270
5/31/1998 8997 7,999
6/30/1998 8054 7,160
7/31/1998 8439 7,387
8/31/1998 5915 5,251
9/30/1998 6147 5,584
10/31/1998 6541 6,172
11/30/1998 7104 6,686
12/31/1998 6772 6,589
1/31/1999 6578 6,483
2/28/1999 6415 6,546
3/31/1999 7290 7,408
4/30/1999 8120 8,325
5/31/1999 7944 8,276
6/30/1999 8840 9,216
7/31/1999 8636 8,965
8/31/1999 8659 9,047
9/30/1999 8358 8,741
10/31/1999 8634 8,927
11/30/1999 9609 9,727
12/31/1999 11301 10,965
1/31/2000 11339 11,030
2/29/2000 11649 11,176
3/31/2000 11561 11,230
4/30/2000 10482 10,166
5/31/2000 10235 9,745
6/30/2000 10645 10,089
7/31/2000 10152 9,570
8/31/2000 10566 9,617
9/30/2000 9480 8,777
10/31/2000 8822 8,141
11/30/2000 7854 7,429
12/31/2000 8200 7,608
1/31/2001 9166 8,656
2/28/2001 8295 7,978
3/31/2001 7544 7,195
4/30/2001 7908 7,550
5/31/2001 8292 7,640
6/30/2001 7987 7,483
7/31/2001 7381 7,010
8/31/2001 7252 6,941
9/30/2001 6196 5,867
10/31/2001 6598 6,231
11/30/2001 7406 6,882
12/31/2001 7885 7,428
1/31/2002 8130 7,680
2/28/2002 8208 7,806
3/31/2002 8662 8,275
4/30/2002 8706 8,329
5/31/2002 8591 8,196
6/30/2002 7860 7,581
7/31/2002 7266 7,005
8/31/2002 7303 7,113
9/30/2002 6551 6,345
10/31/2002 7010 6,757
11/30/2002 7486 7,222
12/31/2002 7229 6,982
1/31/2003 7216 6,952
2/28/2003 6989 6,764
3/31/2003 6810 6,572
4/30/2003 7567 7,158
5/31/2003 8087 7,671
6/30/2003 8466 8,109
7/31/2003 9014 8,616
8/31/2003 9590 9,194
9/30/2003 9732 9,262
10/31/2003 10500 10,050
11/30/2003 10741 10,173
12/31/2003 11707 10,911
1/31/2004 11874 11,298
2/29/2004 12468 11,819
3/31/2004 12645 11,971
4/30/2004 11467 10,992
5/31/2004 11272 10,775
6/30/2004 11293 10,825
7/31/2004 11117 10,633
8/31/2004 11611 11,079
9/30/2004 12271 11,719
10/31/2004 12475 12,001
11/30/2004 13586 13,112
12/31/2004 14300 13,743
1/31/2005 14232 13,787
2/28/2005 15239 14,997
3/31/2005 14038 14,009
4/30/2005 13612 13,635
5/31/2005 14045 14,115
6/30/2005 14422 14,602
7/31/2005 15381 15,635
8/31/2005 15606 15,776
9/30/2005 16659 17,246
10/31/2005 15730 16,120
11/30/2005 16933 17,455
12/31/2005 17772 18,488
1/31/2006 20229 20,564
2/28/2006 20080 20,544
3/31/2006 20744 20,729
- --------------------------------------------------------------------------------
1 The Fund's adviser has committed through January 31, 2007 to waive fees and/or
reimburse expenses to the extent necessary to maintain a certain net operating
expense ratio for the Fund. Actual reductions of operating expenses can increase
total return to shareholders. Without these reductions, the Fund's returns would
have been lower.
Prior to April 11, 2005, the WELLS FARGO ADVANTAGE INSTITUTIONAL EMERGING
MARKETS FUND - Institutional Class was named the Wells Fargo Montgomery
Institutional Emerging Markets Fund - Select Class. Performance shown for the
Institutional Class shares of the Fund for periods prior to June 9, 2003,
reflects the performance of the Montgomery Institutional Series: Emerging
Markets Portfolio, its predecessor fund.
2 The MSCI Emerging Markets Index(SM) is a free float-adjusted market
capitalization index that is designed to measure equity market performance in
the global emerging markets. As of May 2005 the MSCI Emerging Markets Free
Index(SM) consisted of the following 26 emerging market country indices:
Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary,
India, Indonesia, Israel, Jordan, Korea, Malaysia, Mexico, Morocco, Pakistan,
Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, Turkey and
Venezuela. You cannot invest directly in an Index.
3 Fund characteristics, ten largest equity holdings and portfolio composition
are subject to change. Cash and cash equivalents are not reflected in the
calculations of fund characteristics, ten largest equity holdings and portfolio
composition.
4 The Ten Largest Equity Holdings are calculated based on the market value of
the securities divided by total market value of the portfolio.
5 The chart compares the performance of the WELLS FARGO ADVANTAGE INSTITUTIONAL
EMERGING MARKETS FUND Institutional Class shares for the life of the Fund with
the MSCI Emerging Markets Index(SM). The chart assumes a hypothetical investment
of $10,000 in Institutional Class shares and reflects all operating expenses.
5
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE INTERNATIONAL CORE FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The WELLS FARGO ADVANTAGE INTERNATIONAL CORE FUND (the Fund) seeks
long-term capital appreciation.
ADVISER SUBADVISER
Wells Fargo Funds Management, LLC New Star Institutional Managers Limited
FUND MANAGERS FUND INCEPTION DATE
Mark Beale 09/28/2001
Brian Coffey
Richard Lewis
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Class A shares returned 10.54% 1 (excluding sales charge) for
the six-month period that ended March 31, 2006, underperforming its benchmark,
the MSCI EAFE Index 2, which returned 13.86%, during the same period.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB SITE -
WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. FOR CLASS
B SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%. PERFORMANCE
INCLUDING SALES CHARGE ASSUMES THE SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. ADMINISTRATOR CLASS SHARES ARE SOLD WITHOUT A FRONT-END SALES CHARGE OR
CONTINGENT DEFERRED SALES CHARGE. OTHER FEES AND EXPENSES APPLY TO AN INVESTMENT
IN THE FUND AND ARE DESCRIBED IN THE FUND'S CURRENT PROSPECTUS.
THE FUND HAS A REDEMPTION FEE OF 2.00% DEDUCTED FROM THE NET PROCEEDS OF
SHARES REDEEMED OR EXCHANGED WITHIN 30 DAYS AFTER PURCHASE. PERFORMANCE DATA
DOES NOT REFLECT THE DEDUCTION OF THIS FEE, WHICH, IF REFLECTED, WOULD REDUCE
THE PERFORMANCE.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
Poor stock selection, particularly in Japan, hurt Fund performance during
the six-month period. Compared to the benchmark, the Fund was overweighted in
Japan's high-quality companies with solid return histories and was underweighted
in Japan's banking sector, which has historically failed to deliver steady
returns to investors. The Fund's overweighted position in high-quality stocks
proved to be too defensive in the environment following September 2005, when
Prime Minister Koizumi was reelected and Japan's banking sector moved to the
forefront. Conversely, the Fund's underweighted position in Japan's
strong-performing banking sector hurt performance.
The Fund's underweighting strategy in Europe's industrial and cyclical
securities was also disappointing. Unexpected upgrades to earnings estimates
fueled continued outperformance in cyclical names as the Fund's favored
investments in high-quality pharmaceutical and energy companies soured. Holdings
in European financials and the Fund's modestly overweighted holdings in emerging
markets, compared to the benchmark, were positive, but they were not positive
enough to overcome the missed opportunity in Japanese banks and European
cyclicals.
WHAT CHANGES DID YOU MAKE TO THE FUND'S HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
We made several changes to the Fund's holdings. For example, we added
Japanese non-bank financials because we believe that they will deliver strong
profits in the anticipated reflationary environment in Japan. In the Japanese
insurance sector, we added Millea Holdings and Mitsui Sumitomo. The economic
returns in this sector seem to be improving, and genuine restructuring and
consolidation have helped operational profitability. We also purchased Sumitomo
Trust in the banking sector, but only after the stock price became attractive to
us and operational improvements, along with strong fee growth, had been
realized.
Purchases during the period were financed by the sale of companies such as
Ajinomoto Inc. (food additives) and Shimachu (furniture retailer), which have
delivered steady gains but are likely to remain overlooked in the current
environment. We also reduced the Fund's holding in Kao, a cosmetic company.
Elsewhere in Europe, the Fund maintained its exposure to the profitable
financial sector with purchases of Commerzbank and Allianz in Germany. Both
companies are enjoying improved returns on assets, and we anticipate profit
upgrades. We also added French power utility Suez; E.ON, a gas and utility
company; and Alstom, France's power equipment supplier.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
We anticipate seeing continued strength in international equities. Many
companies are beating analysts' expectations and upgrades, especially in the
banking and insurance sectors found in Europe and Japan. European and Japanese
retail investors are demonstrating renewed interest in equities, and this is
supported by merger and acquisition activity. The prospect for a coordinated
monetary tightening policy in the United States, Japan, and Europe may prove to
be an obstacle in international markets, but we believe that the buoyant
industrial and cyclical sectors would probably suffer more than the high-quality
companies with solid return histories, such as the pharmaceutical and oil
companies where the Fund is positioned.
STOCK FUNDS SHOULD ONLY BE CONSIDERED FOR LONG-TERM GOALS AS VALUES
FLUCTUATE IN RESPONSE TO THE ACTIVITIES OF INDIVIDUAL COMPANIES AND GENERAL
MARKET AND ECONOMIC CONDITIONS. FOREIGN INVESTMENTS PRESENT CERTAIN RISKS THAT
MAY NOT BE PRESENT IN DOMESTIC INVESTMENTS, INCLUDING CURRENCY FLUCTUATION, THE
POTENTIAL FOR DIPLOMATIC AND POLITICAL INSTABILITY, REGULATORY AND LIQUIDITY
RISKS, FOREIGN TAXATION AND DIFFERENCES IN AUDITING AND OTHER FINANCIAL
STANDARDS. THESE RISKS ARE GENERALLY INTENSIFIED IN EMERGING MARKETS. INVESTMENT
STRATEGIES THAT EMPHASIZE PARTICULAR MARKET SEGMENTS OR FEWER SECURITIES TEND TO
INCREASE THE TOTAL RISK OF AN INVESTMENT (RELATIVE TO THE BROADER MARKET). THIS
FUND IS EXPOSED TO SMALL COMPANY SECURITIES RISK. CONSULT THE FUND'S PROSPECTUS
FOR ADDITIONAL INFORMATION ON THESE AND OTHER RISKS.
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2006, and are those of the Fund's
managers. The views are subject to change at any time in response to changing
circumstances in the market and are not intended to predict or guarantee the
future performance of any individual security, market sector or the markets
generally, or the WELLS FARGO ADVANTAGE INTERNATIONAL CORE FUND.
1 The Fund's adviser has committed through April 30, 2007, to waive fees and/or
reimburse expenses to the extent necessary to maintain a certain net operating
expense ratio for the Fund. Actual reductions of operating expenses can increase
total return to shareholders. Without these reductions, the Fund's returns would
have been lower.
6
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge
--------------------------- ---------------------------
Life of Life of
6-Month* 1-Year Fund 6-Month* 1-Year Fund
- -----------------------------------------------------------------------------------------------------------------
International Core Fund - Class A
(Incept. Date 09/28/2001) 4.20 11.25 10.03 10.54 18.05 11.48
- -----------------------------------------------------------------------------------------------------------------
International Core Fund - Class B
(Incept. Date 09/28/2001) 5.09 12.08 10.96 10.09 17.08 11.27
- -----------------------------------------------------------------------------------------------------------------
International Core Fund - Class C
(Incept. Date 09/28/2001) 9.08 16.16 11.28 10.08 17.16 11.28
- -----------------------------------------------------------------------------------------------------------------
International Core Fund - Administrator Class
(Incept. Date 04/11/2005) 10.57 18.18 10.90
- -----------------------------------------------------------------------------------------------------------------
Benchmark
- -----------------------------------------------------------------------------------------------------------------
MSCI EAFE Index 2 13.86 24.41 14.80
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FUND CHARACTERISTICS 3 (AS OF MARCH 31, 2006)
- -------------------------------------------------------------------
Beta** 0.93
- -------------------------------------------------------------------
Price to Earnings Ratio (trailing 12 months) 18.87x
- -------------------------------------------------------------------
Price to Book Ratio 2.50x
- -------------------------------------------------------------------
Median Market Cap ($B) $ 5.15
- -------------------------------------------------------------------
Portfolio Turnover*** 23%
- -------------------------------------------------------------------
** A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE MSCI EAFE INDEX
BETA IS 1.00 BY DEFINITION.
*** THIS MEASURE IS BASED ON SIX MONTHS OF THE FUND'S ACTIVITY.
TEN LARGEST EQUITY HOLDINGS 3,4 (AS OF MARCH 31, 2006)
- -------------------------------------------------------------------
Sumitomo Trust & Banking Company Limited 2.71%
- -------------------------------------------------------------------
Vodafone Group plc 2.48%
- -------------------------------------------------------------------
Roche Holding AG 2.40%
- -------------------------------------------------------------------
Aeon Company Limited 2.38%
- -------------------------------------------------------------------
Novartis AG ADR 2.36%
- -------------------------------------------------------------------
Royal Dutch Shell plc Class A 1.96%
- -------------------------------------------------------------------
Mitsui Sumitomo Insurance Company Limited 1.74%
- -------------------------------------------------------------------
UniCredito Italiano SpA 1.71%
- -------------------------------------------------------------------
Millea Holding Incorporated 1.69%
- -------------------------------------------------------------------
Nomura Holdings Incorporated 1.66%
PORTFOLIO COMPOSITION 3 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Asia/Pacific Ex Japan 7%
Australia 4%
Continental Europe 46%
Japan 25%
United Kingdom 18%
GROWTH OF $10,000 INVESTMENT 5 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
WELLS FARGO ADVANTAGE INTERNATIONAL
WELLS FARGO ADVANTAGE INTERNATIONAL CORE FUND- Administrator
Date CORE FUND-CLASS A Class MSCI EAFE Index
9/28/2001 9425 10000 10,000
9/30/2001 9425 10000 9,999
10/31/2001 9227 9790 10,255
11/30/2001 9566 10150 10,633
12/31/2001 9811 10410 10,696
1/31/2002 9331 9900 10,128
2/28/2002 9331 9900 10,199
3/31/2002 9793 10390 10,751
4/30/2002 9793 10390 10,822
5/31/2002 9821 10420 10,959
6/30/2002 9538 10120 10,523
7/31/2002 8699 9230 9,484
8/31/2002 8728 9260 9,463
9/30/2002 8030 8520 8,446
10/31/2002 8190 8690 8,900
11/30/2002 8492 9010 9,304
12/31/2002 8332 8840 8,991
1/31/2003 8040 8521 8,616
2/28/2003 7926 8393 8,418
3/31/2003 7870 8324 8,253
4/30/2003 8492 8973 9,062
5/31/2003 8973 9471 9,611
6/30/2003 9067 9560 9,844
7/31/2003 9161 9650 10,082
8/31/2003 9331 9818 10,325
9/30/2003 9529 10016 10,643
10/31/2003 9962 10460 11,306
11/30/2003 10264 10766 11,557
12/31/2003 10946 11470 12,460
1/31/2004 11185 11708 12,635
2/29/2004 11452 11976 12,927
3/31/2004 11448 11959 13,000
4/30/2004 11066 11548 12,706
5/31/2004 11248 11725 12,749
6/30/2004 11506 11982 13,028
7/31/2004 11133 11581 12,605
8/31/2004 11257 11698 12,660
9/30/2004 11601 12044 12,991
10/31/2004 11898 12338 13,434
11/30/2004 12528 12979 14,351
12/31/2004 13067 13524 14,981
1/31/2005 12809 13257 14,706
2/28/2005 13385 13853 15,341
3/31/2005 13028 13483 14,956
4/30/2005 12729 13184 14,605
5/31/2005 12699 13143 14,612
6/30/2005 12898 13359 14,806
7/31/2005 13326 13792 15,261
8/31/2005 13625 14101 15,647
9/30/2005 13913 14410 16,343
10/31/2005 13505 13987 15,866
11/30/2005 13615 14101 16,255
12/31/2005 14205 14707 17,010
1/31/2006 15077 15621 18,055
2/28/2006 14910 15448 18,015
3/31/2006 15379 15934 18,610
Performance shown for the Class A, Class B and Class C shares of the WELLS
FARGO ADVANTAGE INTERNATIONAL CORE FUND for periods prior to April 11, 2005,
reflects the performance of the applicable share class of the Strong Advisor
International Core Fund, its predecessor fund. Performance shown for the
Administrator Class shares of the WELLS FARGO ADVANTAGE INTERNATIONAL CORE FUND
for periods prior to April 11, 2005, reflects the performance of the Class A
shares of the Strong Advisor International Core Fund, its predecessor fund and
includes fees and expenses that are not applicable to and are higher than those
of the Administrator Class shares.
2 The Morgan Stanley Capital International Europe, Australasia and Far East
("MSCI EAFE") Index is an unmanaged group of securities widely regarded by
investors to be representations of the stock markets of Europe, Australasia and
the Far East. You cannot invest directly in an Index.
3 Fund characteristics, ten largest equity holdings and portfolio composition
are subject to change. Cash and cash equivalents are not reflected in the
calculations of fund characteristics, ten largest equity holdings and sector
distribution.
4 The Ten Largest Equity Holdings are calculated based on the market value of
the securities divided by total market value of the portfolio.
5 The chart compares the performance of the WELLS FARGO ADVANTAGE INTERNATIONAL
CORE FUND Class A and Administrator Class shares for the life of the Fund with
the MSCI EAFE Index. The chart assumes a hypothetical investment of $10,000 in
Class A and Administrator Class shares and reflects all operating expenses and,
for Class A shares, assumes the maximum initial sales charge of 5.75%.
7
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE INTERNATIONAL EQUITY FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The WELLS FARGO ADVANTAGE INTERNATIONAL EQUITY FUND (the Fund) seeks total
return with an emphasis on capital appreciation, over the long term, by
investing primarily in equity securities of non-U.S. companies.
ADVISER SUBADVISER
Wells Fargo Funds Management, LLC Artisan Partners Limited Partnership
FUND MANAGERS LSV Asset Management
Mark Beale Puneet Mansharamani New Star Institutional Managers Limited
Brian Coffey Menno Vermeulen, CFA FUND INCEPTION DATE
Josef Lakonishok Robert W. Vishny 09/24/1997
Richard Lewis Mark L. Yockey, CFA
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Class A shares returned 13.22% 1 (excluding sales charge) for
the six-month period that ended March 31, 2006, underperforming its benchmark,
the MSCI EAFE Index 2, which returned 13.86%, during the same period.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB SITE -
WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. FOR CLASS
B SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%. PERFORMANCE
INCLUDING SALES CHARGE ASSUMES THE SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. ADMINISTRATOR CLASS SHARES ARE SOLD WITHOUT A FRONT-END SALES CHARGE OR
CONTINGENT DEFERRED SALES CHARGE. OTHER FEES AND EXPENSES APPLY TO AN INVESTMENT
IN THE FUND AND ARE DESCRIBED IN THE FUND'S CURRENT PROSPECTUS.
THE FUND HAS A REDEMPTION FEE OF 2.00% DEDUCTED FROM THE NET PROCEEDS OF
SHARES REDEEMED OR EXCHANGED WITHIN 30 DAYS AFTER PURCHASE. PERFORMANCE DATA
DOES NOT REFLECT THE DEDUCTION OF THIS FEE, WHICH, IF REFLECTED, WOULD REDUCE
THE PERFORMANCE.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
The Fund uses three different styles of international equity management:
an international value style, subadvised by LSV Asset Management (LSV); an
international core style, subadvised by New Star Institutional Managers Limited
(New Star); and an international growth style, subadvised by Artisan Partners
Limited Partnership (Artisan).
Performance in the portion of the Fund managed by LSV was hurt by its
overweighted position compared to the benchmark in higher dividend-paying stocks
because stocks that paid minimal or no dividends led the market. Poor stock
selection in Japan, except within financials, was counterbalanced to some extent
by solid stock selection in the United Kingdom and Switzerland. On the positive
side, the Fund's overweighted position and solid stock selection within
financials, especially in Japan, helped performance.
Performance in the portion of the Fund managed by New Star also suffered
from poor stock selection in Japan, due primarily to an underweighted position
in Japan's banking sector, which has historically failed to deliver steady
returns to investors. Its underweighted position in Europe's industrial and
cyclical securities also hurt performance, while unexpected upgrades to earnings
estimates fueled continued outperformance in the portfolio's investments of
high-quality pharmaceutical and energy companies. Holdings in European
financials and this portion's modestly overweighted holdings in emerging markets
were positive, but they were not positive enough to overcome the missed
opportunity in Japanese banks and European cyclicals.
Performance in the portion of the Fund managed by Artisan was helped by
the overall positive returns in the international equity market during the
period. Stocks in the global financials, energy, and communications sectors were
sources of strength, and holdings in the consumer and media areas, combined with
the lack of investment in materials stocks, were sources of weakness during the
period.
WHAT CHANGES DID YOU MAKE TO THE FUND'S HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
LSV sold strong-performing stocks as the relative attractiveness
deteriorated and valuations strained. Several stocks fell into this category,
including UBS in Switzerland, Nihon Unisys in Japan, and CSR Ltd in Australia.
The proceeds were used to purchase higher-ranked stocks with better upside
potential. Examples included Commonwealth Bank and Quantas Airlines in Australia
and Nippon Mitsubishi Oil and Tokyo Electric Power in Japan.
New Star added Japanese non-bank financials because indicators pointed to
strong profits in the anticipated reflationary environment of Japan. In the
Japanese insurance sector, New Star added Millea Holdings and Mitsui Sumitomo.
The managers also purchased Sumitomo Trust in the banking sector but only after
the stock price became more attractive and operational improvements, along with
strong fee growth, had been realized. Purchases during the period were financed
by the sale of companies such as Ajinomoto Inc. (food additives) and Shimachu
(furniture retailer). Elsewhere in Europe, the portfolio maintained its exposure
to the profitable financial sector with purchases of Commerzbank and Allianz in
Germany.
Artisan's changes to the Fund were motivated by companies within the
communications sector that experienced disruptive changes due to the convergence
of various communications platforms. As a result, the managers meaningfully
decreased the portfolio's exposure during the period by selling several stocks,
including Ericsson, Chunghwa Telecom, and Singapore Telecommunications, which
reduced allocation within the communications sector in the Fund.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
The Fund leverages the investment expertise of three independent teams. As
such, there is wide range of opinion regarding the outlook for the international
equity markets. It is important to note that the Fund is, by design, a
diversified vehicle intended to provide broad exposure across international
equity markets. LSV is conservatively positioned and will continue to
consistently seek trades at a significant valuation discount compared to the
market, with a bias toward mid cap stocks relative to the Fund's benchmark. New
Star remains positioned for a possible slowdown in corporate profits and earning
expectations. Artisan continues to participate in a scenario of moderating
economic growth.
STOCK FUNDS SHOULD ONLY BE CONSIDERED FOR LONG-TERM GOALS AS VALUES
FLUCTUATE IN RESPONSE TO THE ACTIVITIES OF INDIVIDUAL COMPANIES AND GENERAL
MARKET AND ECONOMIC CONDITIONS. FOREIGN INVESTMENTS PRESENT CERTAIN RISKS THAT
MAY NOT BE PRESENT IN DOMESTIC INVESTMENTS, INCLUDING CURRENCY FLUCTUATION, THE
POTENTIAL FOR DIPLOMATIC AND POLITICAL INSTABILITY, REGULATORY AND LIQUIDITY
RISKS, FOREIGN TAXATION AND DIFFERENCES IN AUDITING AND OTHER FINANCIAL
STANDARDS. THESE RISKS ARE GENERALLY INTENSIFIED IN EMERGING MARKETS. THE FUND'S
INVESTMENT PROCESS MAY, AT TIMES, RESULT IN HIGHER THAN AVERAGE PORTFOLIO
TURNOVER AND INCREASED TRADING EXPENSES, AND MAY GENERATE HIGHER SHORT-TERM
CAPITAL GAINS. INVESTMENT STRATEGIES THAT EMPHASIZE PARTICULAR MARKET SEGMENTS
OR FEWER SECURITIES TEND TO INCREASE THE TOTAL RISK OF AN INVESTMENT (RELATIVE
TO THE BROADER MARKET). THIS FUND IS EXPOSED TO SMALL COMPANY SECURITIES RISK.
CONSULT THE FUND'S PROSPECTUS FOR ADDITIONAL INFORMATION ON THESE AND OTHER
RISKS.
8
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge
------------------------------------ ------------------------------------
Life of Life of
6-Month* 1-Year 5-Year Fund 6-Month* 1-Year 5-Year Fund
- -----------------------------------------------------------------------------------------------------------------------------------
International Equity Fund - Class A
(Incept. Date 09/24/1997) 6.67 15.49 3.29 5.06 13.22 22.52 4.52 5.80
- -----------------------------------------------------------------------------------------------------------------------------------
International Equity Fund - Class B
(Incept. Date 09/24/1997) 7.72 16.59 3.35 5.00 12.72 21.59 3.70 5.00
- -----------------------------------------------------------------------------------------------------------------------------------
International Equity Fund - Class C
(Incept. Date 04/01/1998) 11.86 20.66 3.71 5.00 12.86 21.66 3.71 5.00
- -----------------------------------------------------------------------------------------------------------------------------------
International Equity Fund - Administrator Class
(Incept. Date 11/08/1999) 13.30 22.80 4.73 5.99
- -----------------------------------------------------------------------------------------------------------------------------------
Benchmark
- -----------------------------------------------------------------------------------------------------------------------------------
MSCI EAFE Index 2 13.86 24.41 9.63 6.05
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FUND CHARACTERISTICS 3 (AS OF MARCH 31, 2006)
- -------------------------------------------------------------------
Beta** 0.98
- -------------------------------------------------------------------
Price to Earnings Ratio (trailing 12 months) 16.38x
- -------------------------------------------------------------------
Price to Book Ratio 2.99x
- -------------------------------------------------------------------
Median Market Cap ($B) $ 14.85
- -------------------------------------------------------------------
Portfolio Turnover*** 23%
- -------------------------------------------------------------------
** A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE MSCI EAFE INDEX
BETA IS 1.00 BY DEFINITION.
*** THIS MEASURE IS BASED ON SIX MONTHS OF THE FUND'S ACTIVITY.
TEN LARGEST EQUITY HOLDINGS 3,4 (AS OF MARCH 31, 2006)
- -------------------------------------------------------------------
Sumitomo Trust & Banking Company 1.98%
- -------------------------------------------------------------------
GlaxoSmithKline plc 1.61%
- -------------------------------------------------------------------
Total SA 1.54%
- -------------------------------------------------------------------
Barclays plc 1.51%
- -------------------------------------------------------------------
ENI SpA 1.47%
- -------------------------------------------------------------------
ING Groep NV 1.36%
- -------------------------------------------------------------------
Toyota Motor Corporation 1.33%
- -------------------------------------------------------------------
Royal Dutch Shell plc Class A 1.30%
- -------------------------------------------------------------------
Novartis AG 1.20%
- -------------------------------------------------------------------
Fortis 1.19%
PORTFOLIO COMPOSITION 3 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Asia/Pacific Ex Japan 7%
Australia 3%
Canada 1%
Continental Europe 47%
Japan 25%
Latin America 1%
United Kingdom 16%
GROWTH OF $10,000 INVESTMENT 5 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
WELLS FARGO ADVANTAGE INTERNATIONAL
WELLS FARGO ADVANTAGE INTERNATIONAL EQUITY FUND- Administrator
Date EQUITY FUND - Class A Class MSCI EAFE Index
9/24/1997 9425 10000 10000
9/30/1997 9510 10090 9,999
10/31/1997 8954 9500 9,230
11/30/1997 9029 9580 9,136
12/31/1997 9116 9672 9,215
1/31/1998 9323 9892 9,637
2/28/1998 9955 10562 10,255
3/31/1998 10417 11052 10,571
4/30/1998 10605 11252 10,655
5/31/1998 10596 11242 10,602
6/30/1998 10746 11402 10,683
7/31/1998 10869 11532 10,791
8/31/1998 9135 9692 9,454
9/30/1998 8823 9362 9,164
10/31/1998 9606 10192 10,118
11/30/1998 10162 10782 10,637
12/31/1998 10577 11222 11,057
1/31/1999 10756 11412 11,024
2/28/1999 10567 11212 10,761
3/31/1999 10897 11562 11,210
4/30/1999 11312 12002 11,664
5/31/1999 10926 11592 11,063
6/30/1999 11548 12252 11,495
7/31/1999 11906 12632 11,836
8/31/1999 11802 12522 11,880
9/30/1999 11972 12702 12,000
10/31/1999 12670 13442 12,450
11/30/1999 14065 14933 12,882
12/31/1999 15988 17002 14,039
1/31/2000 15310 16286 13,147
2/29/2000 16638 17697 13,501
3/31/2000 16839 17922 14,025
4/30/2000 15807 16828 13,287
5/31/2000 14822 15774 12,963
6/30/2000 15606 16613 13,470
7/31/2000 15291 16286 12,905
8/31/2000 15568 16582 13,018
9/30/2000 14564 15518 12,384
10/31/2000 14172 15099 12,091
11/30/2000 13408 14291 11,638
12/31/2000 13878 14792 12,051
1/31/2001 14220 15169 12,045
2/28/2001 13106 13977 11,142
3/31/2001 12208 13026 10,399
4/30/2001 12813 13674 11,121
5/31/2001 12706 13559 10,729
6/30/2001 12315 13151 10,290
7/31/2001 11983 12785 10,103
8/31/2001 11524 12304 9,847
9/30/2001 10255 10945 8,849
10/31/2001 10635 11364 9,076
11/30/2001 11085 11834 9,411
12/31/2001 11329 12106 9,466
1/31/2002 10782 11531 8,964
2/28/2002 10635 11364 9,027
3/31/2002 11173 11949 9,515
4/30/2002 11173 11959 9,578
5/31/2002 11075 11855 9,699
6/30/2002 10567 11311 9,313
7/31/2002 9463 10120 8,394
8/31/2002 9356 10005 8,375
9/30/2002 8262 8844 7,475
10/31/2002 8624 9231 7,877
11/30/2002 9073 9712 8,234
12/31/2002 8692 9306 7,958
1/31/2003 8174 8762 7,626
2/28/2003 7989 8563 7,450
3/31/2003 7823 8385 7,304
4/30/2003 8477 9097 8,020
5/31/2003 8946 9599 8,506
6/30/2003 9073 9736 8,712
7/31/2003 9190 9830 8,923
8/31/2003 9444 10112 9,138
9/30/2003 9649 10332 9,419
10/31/2003 10255 10981 10,006
11/30/2003 10479 11232 10,228
12/31/2003 11197 12003 11,027
1/31/2004 11187 11992 11,183
2/29/2004 11325 12140 11,441
3/31/2004 11364 12182 11,505
4/30/2004 10971 11760 11,245
5/31/2004 10961 11750 11,283
6/30/2004 11099 11908 11,530
7/31/2004 10726 11507 11,156
8/31/2004 10677 11465 11,205
9/30/2004 10893 11686 11,497
10/31/2004 11177 12003 11,889
11/30/2004 11894 12783 12,701
12/31/2004 12409 13331 13,259
1/31/2005 12222 13140 13,015
2/28/2005 12762 13712 13,578
3/31/2005 12428 13362 13,237
4/30/2005 12114 13035 12,926
5/31/2005 12065 12971 12,932
6/30/2005 12261 13183 13,104
7/31/2005 12654 13616 13,506
8/31/2005 13047 14050 13,848
9/30/2005 13450 14484 14,464
10/31/2005 12998 13997 14,042
11/30/2005 13224 14241 14,386
12/31/2005 13877 14951 15,055
1/31/2006 14721 15863 15,979
2/28/2006 14711 15852 15,944
3/31/2006 15228 16410 16,470
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2006, and are those of the Fund's
managers. The views are subject to change at any time in response to changing
circumstances in the market and are not intended to predict or guarantee the
future performance of any individual security,market sector or the markets
generally, or the WELLS FARGO ADVANTAGE INTERNATIONAL EQUITY FUND.
1 The Fund's adviser has committed through January 31, 2007, to waive fees
and/or reimburse expenses to the extent necessary to maintain a certain net
operating expense ratio for the Fund. Actual reductions of operating expenses
can increase total return to shareholders. Without these reductions, the Fund's
returns would have been lower.
Prior to April 11, 2005, the WELLS FARGO ADVANTAGE INTERNATIONAL EQUITY
FUND was named the Wells Fargo International Equity Fund. Performance shown for
Class A, Class B and Class C shares of the Fund for periods prior to November 8,
1999 reflects the performance of the applicable share class of the Stagecoach
International Equity Fund, its predecessor fund. Performance shown for the Class
C shares for periods prior to April 1, 1998, reflects the performance of the
Class B shares of the Stagecoach Fund adjusted to reflect Class C sales charges
and expenses. Prior to April 11, 2005, the WELLS FARGO ADVANTAGE INTERNATIONAL
EQUITY FUND - Administrator Class was named the Wells Fargo International Equity
Fund - Institutional Class.Performance shown for the Administrator Class shares
for periods prior to November 8, 1999, reflects the performance of the Class A
shares of Stagecoach International Equity Fund, its predecessor fund, adjusted
to reflect the expenses of the Administrator Class shares.
2 The Morgan Stanley Capital International Europe, Australasia and Far East
("MSCI EAFE") Stock Index is an unmanaged group of securities widely regarded by
investors to be representations of the stock markets of Europe, Australasia and
the Far East.You cannot invest directly in an Index.
3 Fund characteristics,ten largest equity holdings and portfolio composition are
subject to change.Cash and cash equivalents are not reflected in the
calculations of fund characteristics, ten largest equity holdings and portfolio
composition.
4 The Ten Largest Equity Holdings are calculated based on the market value of
the securities divided by total market value of the portfolio.
5 The chart compares the performance of the WELLS FARGO ADVANTAGE INTERNATIONAL
EQUITY FUND Class A and Administrator Class shares for the life of the Fund with
the MSCI EAFE Index.The chart assumes a hypothetical investment of $10,000 in
Class A and Administrator Class shares and reflects all operating expenses
and,for Class A shares, assumes the maximum initial sales charge of 5.75%.
9
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS FUND EXPENSES (UNAUDITED)
- --------------------------------------------------------------------------------
As a shareholder of the Fund, you incur two types of costs: (1)
transaction costs, including sales charges (loads) on purchase payments,
redemption fees (if any) and exchange fees (if any); and (2) ongoing costs,
including management fees; distribution [and/or service] (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 period and held for the entire period (October 1, 2005 to March 31,
2006).
ACTUAL EXPENSES
The "Actual" line of the table below provides information about actual
account values and actual expenses. You may use the information in this line,
together with the amount you invested, to estimate the expenses that you paid
over the period. Simply divide your account value by $1,000 (for example, an
$8,600 account value divided by $1,000 = 8.6), then multiply the result by the
number in the "Actual" line under the heading entitled "Expenses Paid During
Period" for your applicable class of shares to estimate the expenses you paid on
your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The "Hypothetical" line of the table below provides information about
hypothetical account values and hypothetical expenses based on the Fund's actual
expense ratio and an assumed rate of return of 5% per year before expenses,
which is not the Fund's actual return. The hypothetical account values and
expenses may not be used to estimate the actual ending account balance or
expenses you paid for the period. You may use this information to compare the
ongoing costs of investing in the Fund and other funds. To do so, compare this
5% hypothetical example with the 5% hypothetical examples that appear in the
shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight
your ongoing costs only and do not reflect any transactional costs, such as
sales charges (loads), redemption fees, or exchange fees. Therefore, the
"Hypothetical" line of the table is useful in comparing ongoing costs only, and
will not help you determine the relative total costs of owning different funds.
In addition, if these transactional costs were included, your costs would have
been higher.
Beginning Ending
Account Account Expenses
Value Value Paid During Net Annual
Wells Fargo Advantage Emerging Markets Focus Fund 10/01/2005 03/31/2006 Period(1) Expense Ratio
- ------------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Emerging Markets Focus Fund - Class A
Actual $ 1,000.00 $ 1,247.20 $ 10.59 1.90%
- ------------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,015.51 $ 9.50 1.90%
- ------------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Emerging Markets Focus Fund - Class B
Actual $ 1,000.00 $ 1,242.40 $ 14.82 2.65%
- ------------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,011.72 $ 13.29 2.65%
- ------------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Emerging Markets Focus Fund - Class C
Actual $ 1,000.00 $ 1,241.60 $ 14.75 2.65%
- ------------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,011.77 $ 13.24 2.65%
- ------------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Emerging Markets Focus Fund - Administrator Class
Actual $ 1,000.00 $ 1,248.50 $ 8.97 1.60%
- ------------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,016.95 $ 8.05 1.60%
Wells Fargo Advantage Institutional Emerging Markets Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Institutional Emerging Markets Fund -
Institutional Class Actual $ 1,000.00 $ 1,245.20 $ 7.00 1.25%
- ------------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,018.70 $ 6.29 1.25%
10
FUND EXPENSES (UNAUDITED) WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
- --------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses
Value Value Paid During Net Annual
Wells Fargo Advantage International Core Fund 10/01/2005 03/31/2006 Period(1) Expense Ratio
- ------------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage International Core Fund - Class A
Actual $ 1,000.00 $ 1,105.40 $ 7.93 1.50%
- ------------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,017.40 $ 7.59 1.50%
- ------------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage International Core Fund - Class B
Actual $ 1,000.00 $ 1,100.90 $ 11.84 2.25%
- ------------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,013.66 $ 11.35 2.25%
- ------------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage International Core Fund - Class C
Actual $ 1,000.00 $ 1,100.80 $ 11.84 2.25%
- ------------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,013.66 $ 11.35 2.25%
- ------------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage International Core Fund - Administrator Class
Actual $ 1,000.00 $ 1,105.70 $ 6.56 1.25%
- ------------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,018.10 $ 6.29 1.25%
Wells Fargo Advantage International Equity Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage International Equity Fund - Class A
Actual $ 1,000.00 $ 1,132.20 $ 7.97 1.50%
- ------------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,017.45 $ 7.54 1.50%
- ------------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage International Equity Fund - Class B
Actual $ 1,000.00 $ 1,127.20 $ 11.93 2.25%
- ------------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,013.71 $ 11.30 2.25%
- ------------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage International Equity Fund - Class C
Actual $ 1,000.00 $ 1,128.60 $ 11.94 2.25%
- ------------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,013.71 $ 11.30 2.25%
- ------------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage International Equity Fund - Administrator Class
Actual $ 1,000.00 $ 1,133.00 $ 6.65 1.25%
- ------------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,018.70 $ 6.29 1.25%
(1) Expenses are equal to the Fund's annualized expenses ratio multiplied by the
average account value over the period, multiplied by the number of days in the
most recent fiscal half-year divided by the number of days in the fiscal year
(to reflect the one-half year period).
11
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
EMERGING MARKETS FOCUS FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 91.88%
BRAZIL - 19.84%
221,700 COSAN SA INDUSTRIA E COMERCIO (FOOD & KINDRED PRODUCTS)+ $ 15,198,334
1,465,000 NATURA COSMETICOS SA (MISCELLANEOUS RETAIL) 17,398,568
129,700 PETROLEO BRASILEIRO SA ADR (OIL COMPANIES)<< 11,241,099
103,900 UNIBANCO - UNIAO DE BANCOS BRASILEIROS SA ADR (DEPOSITORY INSTITUTIONS) 7,679,249
168,700 USINAS SIDERURIGAS DE MINAS GERAIS SA (PRIMARY METAL INDUSTRIES) 6,263,884
57,781,134
-------------------
HONG KONG - 10.83%
8,663,259 BANK OF COMMUNICATIONS LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT
& COMPONENTS, EXCEPT COMPUTER EQUIPMENT)+++ 5,443,043
17,120,500 CHINA OVERSEAS LAND & INVESTMENT LIMITED (REAL ESTATE) 11,694,406
12,778,000 CHINA PETROLEUM & CHEMICAL CORPORATION (SINOPEC) (OIL COMPANIES) 7,410,734
6,704,000 PETROCHINA COMPANY LIMITED (OIL & GAS EXTRACTION) 6,998,499
31,546,682
-------------------
INDIA - 10.53%
181,800 ASSOCIATED CEMENT COMPANIES LIMITED (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 3,195,594
111,040 BAJAJ AUTO LIMITED (AUTOMOTIVE REPAIR, SERVICES & PARKING) 6,852,665
1,183,339 BAJAJ HINDUSTHAN LIMITED (AGRICULTURAL PRODUCTION CROPS) 13,414,278
368,900 BHARTI TELE-VENTURES LIMITED (COMMUNICATIONS)+ 3,421,651
62,000 HDFC BANK LIMITED ADR (DEPOSITORY INSTITUTIONS) 3,379,000
33,131 TATA STEEL LIMITED (PRIMARY METAL INDUSTRIES) 399,359
30,662,547
-------------------
MEXICO - 4.97%
67,900 CEMEX SA DE CV (STONE, CLAY, GLASS & CONCRETE PRODUCTS)<< 4,432,512
89,400 DESARROLLADORA HOMEX SA DE CV (REAL ESTATE)+<< 3,158,502
1,278,616 GRUPO MEXICO SA SERIES B (METAL MINING) 3,636,655
151,200 GRUPO TELEVISA SA ADR (COMMUNICATIONS)<< 3,008,880
28,638 INDUSTRIA PENOLES SA DE CV (MEMBERSHIP ORGANIZATIONS) 225,830
14,462,379
-------------------
RUSSIA - 15.84%
21,652 BALTIKA BREWERY (EATING & DRINKING PLACES) 885,567
65,200 GAZPROM ADR (OIL & GAS EXTRACTION)<< 6,047,300
80,400 JSC MMC NORILSK NICKEL ADR (PRIMARY METAL INDUSTRIES)<< 7,581,720
314,600 LUKOIL ADR (OIL & GAS EXTRACTION) 26,174,720
72,500 SURGUTNEFTEGAZ ADR (OIL & GAS EXTRACTION) 5,455,625
46,144,932
-------------------
SOUTH AFRICA - 10.00%
402,190 GOLD FIELDS LIMITED (METAL MINING) 8,766,574
31,780 IMPALA PLATINUM HOLDINGS LIMITED (MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS) 6,004,979
721,790 MURRAY & ROBERTS HOLDINGS LIMITED (HOLDING & OTHER INVESTMENT OFFICES) 3,242,816
195,400 SASOL LIMITED (COAL MINING) 7,384,349
804,100 TRUWORTHS INTERNATIONAL LIMITED (APPAREL & ACCESSORY STORES) 3,710,428
29,109,146
-------------------
12
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
- --------------------------------------------------------------------------------
EMERGING MARKETS FOCUS FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
SOUTH KOREA - 13.24%
2,900 LOTTE SHOPPING COMPANY LIMITED (GENERAL MERCHANDISE STORES)+ 1,187,937
114,397 LOTTE SHOPPING COMPANY LIMITED GDR (GENERAL MERCHANDISE STORES)+<<++ 2,308,531
18,590 POSCO (PRIMARY METAL INDUSTRIES) 4,792,914
25,670 SAMSUNG ELECTRONICS COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT
& COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 16,644,814
224,320 SHINHAN FINANCIAL GROUP COMPANY LIMITED (FINANCIAL SERVICES) 10,043,145
7,860 SHINSEGAE COMPANY LIMITED (GENERAL MERCHANDISE STORES) 3,583,759
38,561,100
-------------------
TAIWAN - 4.12%
1,937,067 HON HAI PRECISION INDUSTRY COMPANY LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY
& COMPUTER EQUIPMENT) 11,995,331
-------------------
TURKEY - 2.04%
706,910 AKBANK TAS (DEPOSITORY INSTITUTIONS) 5,941,304
-------------------
USA - 0.47%
21,500 POSCO ADR (PRIMARY METAL INDUSTRIES)<< 1,371,700
-------------------
TOTAL COMMON STOCKS (COST $192,718,057) 267,576,255
-------------------
PREFERRED STOCKS - 4.90%
199,936 BANCO BRADESCO SA PREFERRED 7,178,848
165,200 COMPANHIA VALE DO RIO DOCE PREFERREDA 7,114,898
TOTAL PREFERRED STOCKS (COST $9,807,885) 14,293,746
-------------------
COLLATERAL FOR SECURITIES LENDING - 7.40%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.01%
7,439 SCUDDER DAILY ASSETS MONEY MARKET FUND 7,439
5,637 SHORT TERM INVESTMENT COMPANY MONEY MARKET FUND 5,637
13,076
-------------------
PRINCIPAL INTEREST RATE MATURITY DATE
COLLATERAL INVESTED IN OTHER ASSETS - 7.39%
$ 77,971 AMERICAN GENERAL FINANCE CORPORATION+/- 4.78% 04/13/2007 78,002
32,462 APRECO LLC 4.62 05/15/2006 32,280
71,048 APRECO LLC 4.94 06/15/2006 70,349
43,317 ASPEN FUNDING CORPORATION 4.92 04/03/2006 43,317
433,170 ATLAS CAPITAL FUNDING CORPORATION SERIES MTN+/- 4.62 11/03/2006 433,170
48,766 ATLAS CAPITAL FUNDING LIMITED 4.80 04/17/2006 48,676
103,961 ATLAS CAPITAL FUNDING LIMITED 4.62 05/15/2006 103,380
216,585 ATLAS CAPITAL FUNDING LIMITED+/- 4.80 10/20/2006 216,585
216,585 ATLAS CAPITAL FUNDING LIMITED+/- 4.80 12/22/2006 216,585
34,654 ATOMIUM FUNDING CORPORATION 4.53 04/12/2006 34,612
30,053 BETA FINANCE INCORPORATED SERIES MTN+/- 4.88 06/02/2006 30,057
4,314,370 BNP PARIBAS REPURCHASE AGREEMENT(MATURITY VALUE $4,316,142) 4.93 04/03/2006 4,314,370
13
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
EMERGING MARKETS FOCUS FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 128,599 BUCKINGHAM CDO LLC++ 4.60% 04/06/2006 $ 128,548
421,613 BUCKINGHAM CDO LLC 4.82 04/21/2006 420,609
216,585 BUCKINGHAM CDO LLC 4.82 04/25/2006 215,955
225,248 BUCKINGHAM II CDO LLC++ 4.83 04/25/2006 224,593
866,339 BUCKINGHAM II CDO LLC 4.83 04/26/2006 863,706
259,902 CAIRN HIGH GRADE FUNDING I 4.59 04/06/2006 259,798
20,792 CAIRN HIGH GRADE FUNDING I 4.71 04/26/2006 20,729
363,863 CAIRN HIGH GRADE FUNDING I 4.83 04/27/2006 362,709
216,585 CAIRN HIGH GRADE FUNDING I++ 4.83 05/02/2006 215,755
112,624 CAIRN HIGH GRADE FUNDING I 4.77 05/10/2006 112,070
435,639 CEDAR SPRINGS CAPITAL COMPANY LLC 4.78 04/05/2006 435,525
119,555 CEDAR SPRINGS CAPITAL COMPANY LLC 4.69 05/08/2006 118,998
38,526 CEDAR SPRINGS CAPITAL COMPANY LLC 4.70 05/10/2006 38,337
173,268 CEDAR SPRINGS CAPITAL COMPANY LLC 4.72 05/12/2006 172,369
86,634 CEDAR SPRINGS CAPITAL COMPANY LLC 4.90 06/07/2006 85,874
230,576 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.92 06/12/2006 228,397
476,487 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.72 04/12/2006 476,487
86,634 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.75 04/18/2007 86,634
304,951 CONSOLIDATED EDISON INCORPORATED 4.90 04/03/2006 304,951
21,658 CORPORATE ASSET SECURITIZATION AUSTRALIA LIMITED 4.81 04/13/2006 21,630
268,565 CREDIT SUISSE BANK SERIES YCD1+/- 4.92 05/04/2006 268,431
216,585 CULLINAN FINANCE CORPORATION+/- 4.71 11/15/2006 216,576
173,268 DEER VALLEY FUNDING LLC++ 4.51 04/10/2006 173,107
221,393 DEER VALLEY FUNDING LLC 4.81 04/17/2006 220,983
527,835 DEER VALLEY FUNDING LLC 4.83 04/19/2006 526,716
112,624 DEER VALLEY FUNDING LLC 4.80 05/03/2006 112,177
433,170 DEUTSCHE BANK REPURCHASE AGREEMENT(MATURITY VALUE $433,345) 4.84 04/03/2006 433,170
414,881 EIFFEL FUNDING LLC 4.91 04/03/2006 414,881
25,990 EIFFEL FUNDING LLC 4.78 04/17/2006 25,942
312,064 EUREKA SECURITIZATION INCORPORATED 4.88 05/16/2006 310,279
7,139 GALLEON CAPITAL LLC 4.65 04/03/2006 7,139
12,995 GEMINI SECURITIZATION INCORPORATED 4.90 05/24/2006 12,907
207,921 GOLDMAN SACHS GROUP INCORPORATED+/- 4.97 06/30/2006 207,921
620,732 HARRIER FINANCE FUNDING LLC 4.62 04/03/2006 620,732
138,614 ING USA ANNUITY & LIFE INSURANCE+/- 5.03 06/06/2006 138,614
1,739,694 JPM CHASE SECURITIES CORPORATION REPURCHASE AGREEMENT
(MATURITY VALUE $1,740,409) 4.93 04/03/2006 1,739,694
11,262 K2 (USA) LLC 4.63 05/02/2006 11,219
40,068 K2 (USA) LLC SERIES MTN+/- 4.87 07/24/2006 40,078
129,951 KAUPTHING BANK HF+++/- 4.84 03/20/2007 129,925
17,327 KLIO II FUNDING CORPORATION 4.58 04/05/2006 17,322
20,879 KLIO III FUNDING CORPORATION 4.69 04/19/2006 20,835
8,663 LEXINGTON PARKER CAPITAL CORPORATION 4.62 05/02/2006 8,630
32,886 LEXINGTON PARKER CAPITAL CORPORATION 4.69 05/10/2006 32,724
216,585 LIBERTY LIGHT US CAPITAL SERIES MTN+/- 4.81 05/26/2006 216,598
14
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
- --------------------------------------------------------------------------------
EMERGING MARKETS FOCUS FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 17,327 LINKS FINANCE LLC SERIES MTN1+/- 4.68% 09/12/2006 $ 17,327
51,980 LIQUID FUNDING LIMITED+/- 4.94 04/24/2006 51,982
199,258 LIQUID FUNDING LIMITED+/- 4.71 08/14/2006 199,258
129,951 LIQUID FUNDING LIMITED+/- 4.61 12/01/2006 129,951
51,980 LIQUID FUNDING LIMITED SERIES MTN+/- 4.83 02/20/2007 51,978
86,634 MBIA GLOBAL FUNDING LLC+/- 4.78 02/20/2007 86,629
435,336 MERRILL LYNCH & COMPANY SERIES MTN+/- 4.80 10/27/2006 435,662
259,902 MORGAN STANLEY+/- 4.94 10/10/2006 259,902
40,068 MORGAN STANLEY SERIES EXL+/- 4.78 08/13/2010 40,079
149,175 MORTGAGE INTEREST NET TRUST 4.68 04/03/2006 149,175
195,793 MORTGAGE INTEREST NET TRUST 4.78 05/03/2006 195,015
8,663 NATIONWIDE BUILDING SOC+/- 4.74 07/21/2006 8,668
191,054 NEWPORT FUNDING CORPORATION 4.92 04/03/2006 191,054
262,319 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 4.78 04/03/2006 262,319
303,219 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.68 04/04/2006 303,179
38,621 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.93 06/26/2006 38,183
16,460 NORDEA NORTH AMERICA INCORPORATED 4.89 05/15/2006 16,368
456,994 NORTHERN ROCK PLC+/- 4.63 04/21/2006 456,930
34,246 NORTHERN ROCK PLC 4.69 04/24/2006 34,151
433,170 NORTHERN ROCK PLC+/- 4.66 02/05/2007 433,174
35,043 RACERS TRUST 2004-6-MM+/- 4.79 05/22/2006 35,048
8,663 SCALDIS CAPITAL LIMITED 4.93 06/15/2006 8,578
34,654 TANGO FINANCE CORPORATION 4.95 06/21/2006 34,284
100,175 TANGO FINANCE CORPORATION SERIES MTN+/- 4.87 10/25/2006 100,208
50,083 TRAVELERS INSURANCE COMPANY+/- 4.77 02/09/2007 50,082
216,585 UNICREDITO ITALIANO SERIES LIB+/- 4.70 03/09/2007 216,572
216,585 UNICREDITO ITALIANO SERIES YCD+/- 4.47 04/03/2006 216,585
329,209 US BANK NA SERIES BKNT+/- 4.66 07/28/2006 329,219
86,634 WHISTLEJACKET CAPITAL LIMITED+/- 4.65 06/09/2006 86,634
8,663 WHITE PINE FINANCE LLC 4.64 04/18/2006 8,646
43,317 WHITE PINE FINANCE LLC 4.82 05/05/2006 43,132
35,364 WHITE PINE FINANCE LLC 4.84 05/25/2006 35,118
26,614 WHITE PINE FINANCE LLC 4.93 06/20/2006 26,334
228,618 WHITE PINE FINANCE LLC 4.93 06/22/2006 226,149
216,585 WHITE PINE FINANCE LLC+/- 4.70 07/17/2006 216,585
207,921 WHITE PINE FINANCE LLC SERIES MTN1+/- 4.81 06/12/2006 207,940
21,523,755
-------------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $21,536,831) 21,536,831
-------------------
15
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
EMERGING MARKETS FOCUS FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
SHORT-TERM INVESTMENTS - 3.17%
MUTUAL FUND - 3.17%
9,234,363 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~# $ 9,234,363
-------------------
TOTAL SHORT-TERM INVESTMENTS (COST $9,234,363) 9,234,363
-------------------
TOTAL INVESTMENTS IN SECURITIES
(COST $233,297,136)* 107.35% $ 312,641,195
OTHER ASSETS AND LIABILITIES, NET (7.35) (21,416,080)
------ -------------------
TOTAL NET ASSETS 100.00% $ 291,225,115
====== ===================
+ NON-INCOME EARNING SECURITIES.
<< ALL OR A PORTION OF THIS SECURITY IS ON LOAN. (SEE NOTE 2)
++ SECURITIES THAT MAY BE RESOLD TO "QUALIFIED INSTITUTIONAL BUYERS" UNDER
RULE 144A OR SECURITIES OFFERED PURSUANT TO SECTION 4(2) OF THE SECURITIES
ACT OF 1933, AS AMENDED.
+/- VARIABLE RATE INVESTMENTS.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
# SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $9,234,363.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
16
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
- --------------------------------------------------------------------------------
INSTITUTIONAL EMERGING MARKETS FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 91.30%
ARGENTINA - 0.23%
14,700 TELECOM ARGENTINA SA ADR (COMMUNICATIONS)+<< $ 199,038
---------------
BERMUDA - 0.19%
2,400 CENTRAL EUROPEAN MEDIA ENTERPRISES LIMITED CLASS A (COMMUNICATIONS)+ 164,664
---------------
BRAZIL - 11.51%
43,717 COSAN SA INDUSTRIA E COMERCIO (FOOD & KINDRED PRODUCTS)+ 2,996,958
23,040 CYRELA BRAZIL REALTY (REAL ESTATE) 410,653
12,200 ENERGIAS DO BRAZIL SA (ELECTRIC DISTRIBUTION, TRANSMISSION) 168,624
12,990 LOJAS RENNER SA (APPAREL & ACCESSORY STORES) 708,327
100,500 NATURA COSMETICOS SA (MISCELLANEOUS RETAIL) 1,193,554
11,400 PETROLEO BRASILEIRO SA PREFERRED ADR (OIL COMPANIES) 910,290
24,736 PETROLEO BRASILEIRO SA COMMON ADR (OIL COMPANIES) 2,143,869
6,400 UNIBANCO - UNIAO DE BANCOS BRASILEIROS SA ADR (DEPOSITORY INSTITUTIONS) 473,024
24,000 USINAS SIDERURIGAS DE MINAS GERAIS SA (PRIMARY METAL INDUSTRIES) 891,127
9,896,426
---------------
CHILE - 1.56%
272,100 CENCOSUD SA (GENERAL MERCHANDISE STORES) 691,598
40,830 ENERSIS SA ADR (ELECTRIC, GAS & SANITARY SERVICES)+ 484,244
8,137 INVERSIONES AGUAS METROPOLITANAS SA ADR (PIPELINES, EXCEPT NATURAL GAS)+++ 167,345
1,343,187
---------------
COLOMBIA - 0.29%
7,200 BANCOLOMBIA SA ADR (DEPOSITORY INSTITUTIONS) 251,280
---------------
CZECH REPUBLIC - 0.64%
15,790 CEZ AS (ELECTRIC, GAS & SANITARY SERVICES) 550,693
---------------
EGYPT - 0.32%
6,786 ORASCOM CONSTRUCTION INDUSTRIES (CONSTRUCTION SPECIAL TRADE CONTRACTORS) 277,906
---------------
HONG KONG - 10.13%
1,273,372 BANK OF COMMUNICATIONS LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS,
EXCEPT COMPUTER EQUIPMENT)+++ 800,048
550,000 CHINA LIFE INSURANCE COMPANY LIMITED (MEMBERSHIP ORGANIZATIONS)+ 694,664
101,500 CHINA MOBILE (HONG KONG) LIMITED (COMMUNICATIONS) 533,064
3,706,000 CHINA OVERSEAS LAND & INVESTMENT LIMITED (REAL ESTATE) 2,531,437
2,250,000 CHINA PETROLEUM & CHEMICAL CORPORATION (SINOPEC) (OIL COMPANIES) 1,304,911
885,000 CNOOC LIMITED (PETROLEUM REFINING & RELATED INDUSTRIES) 684,353
177,000 FOXCONN INTERNATIONAL HOLDINGS LIMITED (MISCELLANEOUS MANUFACTURING INDUSTRIES)+ 331,911
45,600 GUANGZHOU R&F PROPERTIES COMPANY LIMITED (REAL ESTATE)+ 241,542
1,528,000 PETROCHINA COMPANY LIMITED (OIL & GAS EXTRACTION) 1,595,123
8,717,053
---------------
HUNGARY - 0.55%
4,601 MOL MAGYAR OLAJ-ES GAZIPARI RT (OIL & GAS EXTRACTION) 471,966
---------------
17
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INSTITUTIONAL EMERGING MARKETS FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
INDIA - 8.95%
37,380 ASSOCIATED CEMENT COMPANIES LIMITED (STONE, CLAY, GLASS & CONCRETE PRODUCTS) $ 657,048
15,450 BAJAJ AUTO LIMITED (AUTOMOTIVE REPAIR, SERVICES & PARKING) 953,473
256,320 BAJAJ HINDUSTHAN LIMITED (AGRICULTURAL PRODUCTION CROPS) 2,905,632
80,490 BHARTI TELE-VENTURES LIMITED (COMMUNICATIONS)+ 746,567
28,400 HDFC BANK LIMITED (DEPOSITORY INSTITUTIONS) 494,128
18,000 HDFC BANK LIMITED ADR (DEPOSITORY INSTITUTIONS) 981,000
2,348 TATA STEEL LIMITED (PRIMARY METAL INDUSTRIES) 28,303
62,500 WIPRO LIMITED (APPLICATIONS SOFTWARE)<< 929,375
7,695,526
---------------
INDONESIA - 1.15%
1,252,600 INDOCEMENT TUNGGAL (STONE, CLAY, GLASS & CONCRETE PRODUCTS)+ 623,750
804,200 PT BANK CENTRAL ASIA (MEMBERSHIP ORGANIZATIONS) 369,488
993,238
---------------
ISRAEL - 0.55%
44,240 BANK HAPOALIM LIMITED (FINANCIAL SERVICES) 205,309
6,520 TEVA PHARMACEUTICAL INDUSTRIES LIMITED ADR (CHEMICALS & ALLIED PRODUCTS) 268,493
473,802
---------------
MALAYSIA - 1.59%
449,400 BUMIPUTRA-COMMERCE HOLDINGS BERHAD (DEPOSITORY INSTITUTIONS) 768,706
199,571 PUBLIC BANK BERHAD (DEPOSITORY INSTITUTIONS) 349,497
96,500 TELEKOM MALAYSIA BERHAD (COMMUNICATIONS) 244,977
1,363,180
---------------
MEXICO - 5.90%
35,000 AMERICA MOVIL SA DE CV ADR SERIES L (COMMUNICATIONS) 1,199,100
17,150 CEMEX SA DE CV (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 1,119,552
7,600 DESARROLLADORA HOMEX SA DE CV (REAL ESTATE)+<< 268,508
13,700 GRUPO AEROPORTUARIO DEL PACIFICO SA DE CV (TRANSPORTATION BY AIR)+<< 437,715
231,531 GRUPO MEXICO SA SERIES B (METAL MINING) 658,523
35,836 GRUPO TELEVISA SA ADR (COMMUNICATIONS)<< 713,136
38,245 INDUSTRIA PENOLES SA DE CV (MEMBERSHIP ORGANIZATIONS) 295,227
142,100 WALMART DE MEXICO SA DE CV (GENERAL MERCHANDISE STORES) 380,657
5,072,418
---------------
PHILIPPINES - 0.98%
1,358,900 AYALA LAND INCORPORATED (FINANCIAL SERVICES) 298,820
7,800 PHILIPPINE LONG DISTANCE TELEPHONE (MEMBERSHIP ORGANIZATIONS) 293,491
56,700 SM INVESTMENTS CORPORATION (HOLDING & OTHER INVESTMENT OFFICES) 253,798
846,109
---------------
POLAND - 0.56%
45,200 PKO BANK POLSKI SA (DEPOSITORY INSTITUTIONS) 484,692
---------------
18
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
- --------------------------------------------------------------------------------
INSTITUTIONAL EMERGING MARKETS FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
RUSSIA - 9.84%
2,272 BALTIKA BREWERY (EATING & DRINKING PLACES) $ 92,925
37,900 COMSTAR UNITED TELESYSTEMS (COMMUNICATIONS)+++ 265,300
14,880 GAZPROM ADR (OIL & GAS EXTRACTION)<< 1,380,120
7,000 JSC MMC NORILSK NICKEL ADR (PRIMARY METAL INDUSTRIES) 660,100
8,111 KALINA ADR (APPAREL & ACCESSORY STORES)+ 409,605
34,529 LUKOIL ADR (OIL & GAS EXTRACTION)+ 2,872,813
34,700 PYATEROCHKA HOLDINGS GDR (FOOD & KINDRED PRODUCTS)+ 565,610
287 SBERBANK OF RUSSIA (DEPOSITORY INSTITUTIONS) 421,890
21,400 SURGUTNEFTEGAZ ADR (OIL & GAS EXTRACTION) 1,610,350
4,700 ZAO POLYUS GOLD COMPANY (MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS)+ 185,650
8,464,363
---------------
SOUTH AFRICA - 10.15%
73,110 ASPEN PHARMACARE HOLDINGS LIMITED (HOLDING & OTHER INVESTMENT OFFICES) 512,262
167,090 AVENG LIMITED (ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES) 636,869
39,390 GOLD FIELDS LIMITED (METAL MINING) 858,588
7,400 IMPALA PLATINUM HOLDINGS LIMITED (MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS) 1,398,264
15,232 KUMBA RESOURCES LIMITED (PRIMARY METAL INDUSTRIES) 275,488
94,950 MURRAY & ROBERTS HOLDINGS LIMITED (HOLDING & OTHER INVESTMENT OFFICES) 426,586
32,400 SASOL LIMITED (COAL MINING) 1,224,426
61,400 STANDARD BANK GROUP LIMITED (DEPOSITORY INSTITUTIONS) 844,493
26,400 TELKOM SOUTH AFRICA LIMITED (COMMUNICATIONS) 687,886
33,320 TIGER BRANDS LIMITED (FOOD & KINDRED PRODUCTS) 939,802
200,700 TRUWORTHS INTERNATIONAL LIMITED (APPAREL & ACCESSORY STORES) 926,107
8,730,771
---------------
SOUTH KOREA - 11.92%
10,450 DAEWOO SHIPBUILDING & MARINE ENGINEERING COMPANY LIMITED
(HEAVY CONSTRUCTION OTHER THAN BUILDING CONSTRUCTION CONTRACTS) 276,953
7,700 HYUNDAI MOTOR COMPANY LIMITED (TRANSPORTATION EQUIPMENT) 647,478
9,090 KOREA ELECTRIC POWER CORPORATION (ELECTRIC, GAS & SANITARY SERVICES) 381,712
8,410 LG ELECTRONICS INCORPORATED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT
& COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 682,079
1,420 LOTTE SHOPPING COMPANY LIMITED (GENERAL MERCHANDISE STORES)+ 581,680
28,424 LOTTE SHOPPING COMPANY LIMITED GDR (GENERAL MERCHANDISE STORES)+<<++ 573,596
4,010 POSCO (PRIMARY METAL INDUSTRIES) 1,033,867
6,908 SAMSUNG ELECTRONICS COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS,
EXCEPT COMPUTER EQUIPMENT) 4,479,252
22,290 SHINHAN FINANCIAL GROUP COMPANY LIMITED (FINANCIAL SERVICES) 997,957
1,310 SHINSEGAE COMPANY LIMITED (GENERAL MERCHANDISE STORES) 597,293
10,251,867
---------------
TAIWAN - 11.23%
143,700 ACER INCORPORATED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS,
EXCEPT COMPUTER EQUIPMENT) 264,303
345,784 ASUSTEK COMPUTER INCORPORATED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS,
EXCEPT COMPUTER EQUIPMENT) 937,473
576,780 AU OPTRONICS CORPORATION (ELECTRIC, GAS & SANITARY SERVICES) 867,165
376,000 CATHAY FINANCIAL HOLDING COMPANY LIMITED (INSURANCE AGENTS, BROKERS & SERVICE) 671,873
19
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INSTITUTIONAL EMERGING MARKETS FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
TAIWAN (CONTINUED)
554,166 HON HAI PRECISION INDUSTRY COMPANY LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER
EQUIPMENT) $ 3,431,685
163,626 QUANTA COMPUTER INCORPORATED (APPAREL & ACCESSORY STORES) 268,690
37,600 SILICONWARE PRECISION INDUSTRIES COMPANY ADR (MISCELLANEOUS MANUFACTURING INDUSTRIES)+<< 242,520
1,128,650 TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED (SEMICONDUCTORS) 2,232,368
1,171,300 UNITED MICROELECTRONICS CORPORATION (SEMICONDUCTORS) 739,765
9,655,842
---------------
THAILAND - 0.59%
151,300 KASIKORNBANK PUBLIC COMPANY LIMITED FOREIGN (DEPOSITORY INSTITUTIONS) 266,599
36,100 SIAM CEMENT PUBLIC COMPANY LIMITED (BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY &
MOBILE HOME DEALERS) 237,726
504,325
---------------
TURKEY - 1.90%
124,800 AKBANK TAS (DEPOSITORY INSTITUTIONS) 1,048,895
111,370 YAPI VE KREDI BANKASI AS (INSURANCE CARRIERS)+ 588,120
1,637,015
---------------
UNITED KINGDOM - 0.48%
15,830 KAZAKHGOLD GROUP LIMITED (MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS)+ 409,205
---------------
USA - 0.09%
1,200 POSCO ADR (PRIMARY METAL INDUSTRIES)<< 76,560
---------------
TOTAL COMMON STOCKS (COST $56,207,335) 78,531,126
---------------
COLLATERAL FOR SECURITIES LENDING - 4.81%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.00%
1,428 SCUDDER DAILY ASSETS MONEY MARKET FUND 1,428
1,082 SHORT TERM INVESTMENT COMPANY MONEY MARKET FUND 1,082
2,510
---------------
PRINCIPAL INTEREST RATE MATURITY DATE
COLLATERAL INVESTED IN OTHER ASSETS - 4.81%
$ 14,967 AMERICAN GENERAL FINANCE CORPORATION+/- 4.78% 04/13/2007 14,974
6,231 APRECO LLC 4.62 05/15/2006 6,197
13,639 APRECO LLC 4.94 06/15/2006 13,504
8,315 ASPEN FUNDING CORPORATION 4.92 04/03/2006 8,315
83,152 ATLAS CAPITAL FUNDING CORPORATION SERIES MTN+/- 4.62 11/03/2006 83,152
9,361 ATLAS CAPITAL FUNDING LIMITED 4.80 04/17/2006 9,344
19,957 ATLAS CAPITAL FUNDING LIMITED 4.62 05/15/2006 19,845
41,576 ATLAS CAPITAL FUNDING LIMITED+/- 4.80 10/20/2006 41,576
41,576 ATLAS CAPITAL FUNDING LIMITED+/- 4.80 12/22/2006 41,576
6,652 ATOMIUM FUNDING CORPORATION 4.53 04/12/2006 6,644
5,769 BETA FINANCE INCORPORATED SERIES MTN 4.88 06/02/2006 5,770
828,197 BNP PARIBAS REPURCHASE AGREEMENT(MATURITY VALUE $828,537) 4.93 04/03/2006 828,197
24,686 BUCKINGHAM CDO LLC++ 4.60 04/06/2006 24,676
80,934 BUCKINGHAM CDO LLC 4.82 04/21/2006 80,741
41,576 BUCKINGHAM CDO LLC 4.82 04/25/2006 41,455
20
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
- --------------------------------------------------------------------------------
INSTITUTIONAL EMERGING MARKETS FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 43,239 BUCKINGHAM II CDO LLC++ 4.83% 04/25/2006 $ 43,113
166,305 BUCKINGHAM II CDO LLC 4.83 04/26/2006 165,799
49,891 CAIRN HIGH GRADE FUNDING I 4.59 04/06/2006 49,871
3,991 CAIRN HIGH GRADE FUNDING I 4.71 04/26/2006 3,979
69,848 CAIRN HIGH GRADE FUNDING I 4.83 04/27/2006 69,626
41,576 CAIRN HIGH GRADE FUNDING I++ 4.83 05/02/2006 41,417
21,620 CAIRN HIGH GRADE FUNDING I 4.77 05/10/2006 21,513
83,626 CEDAR SPRINGS CAPITAL COMPANY LLC 4.78 04/05/2006 83,604
22,950 CEDAR SPRINGS CAPITAL COMPANY LLC 4.69 05/08/2006 22,843
7,396 CEDAR SPRINGS CAPITAL COMPANY LLC 4.70 05/10/2006 7,359
33,261 CEDAR SPRINGS CAPITAL COMPANY LLC 4.72 05/12/2006 33,088
16,630 CEDAR SPRINGS CAPITAL COMPANY LLC 4.90 06/07/2006 16,485
44,262 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.92 06/12/2006 43,844
91,467 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.72 04/12/2006 91,467
16,630 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.75 04/18/2007 16,630
58,539 CONSOLIDATED EDISON INCORPORATED 4.90 04/03/2006 58,539
4,158 CORPORATE ASSET SECURITIZATION AUSTRALIA LIMITED 4.81 04/13/2006 4,152
51,554 CREDIT SUISSE BANK SERIES YCD1+/- 4.92 05/04/2006 51,529
41,576 CULLINAN FINANCE CORPORATION+/- 4.71 11/15/2006 41,574
33,261 DEER VALLEY FUNDING LLC++ 4.51 04/10/2006 33,230
42,499 DEER VALLEY FUNDING LLC 4.81 04/17/2006 42,420
101,324 DEER VALLEY FUNDING LLC 4.83 04/19/2006 101,110
21,620 DEER VALLEY FUNDING LLC 4.80 05/03/2006 21,534
83,152 DEUTSCHE BANK REPURCHASE AGREEMENT(MATURITY VALUE $83,186) 4.84 04/03/2006 83,152
79,642 EIFFEL FUNDING LLC 4.91 04/03/2006 79,642
4,989 EIFFEL FUNDING LLC 4.78 04/17/2006 4,980
59,905 EUREKA SECURITIZATION INCORPORATED 4.88 05/16/2006 59,562
1,370 GALLEON CAPITAL LLC 4.65 04/03/2006 1,370
2,495 GEMINI SECURITIZATION INCORPORATED 4.90 05/24/2006 2,478
39,913 GOLDMAN SACHS GROUP INCORPORATED+/- 4.97 06/30/2006 39,913
119,157 HARRIER FINANCE FUNDING LLC 4.62 04/03/2006 119,157
26,609 ING USA ANNUITY & LIFE INSURANCE+/- 5.03 06/06/2006 26,609
333,956 JPM CHASE SECURITIES CORPORATION REPURCHASE AGREEMENT(MATURITY
VALUE $334,093) 4.93 04/03/2006 333,956
2,162 K2 (USA) LLC 4.63 05/02/2006 2,154
7,692 K2 (USA) LLC SERIES MTN+/- 4.87 07/24/2006 7,694
24,946 KAUPTHING BANK HF+++/- 4.84 03/20/2007 24,941
3,326 KLIO II FUNDING CORPORATION 4.58 04/05/2006 3,325
4,008 KLIO III FUNDING CORPORATION 4.69 04/19/2006 3,999
1,663 LEXINGTON PARKER CAPITAL CORPORATION 4.62 05/02/2006 1,657
6,313 LEXINGTON PARKER CAPITAL CORPORATION 4.69 05/10/2006 6,282
41,576 LIBERTY LIGHT US CAPITAL SERIES MTN+/- 4.81 05/26/2006 41,579
3,326 LINKS FINANCE LLC SERIES MTN1+/- 4.68 09/12/2006 3,326
9,978 LIQUID FUNDING LIMITED+/- 4.94 04/24/2006 9,979
38,250 LIQUID FUNDING LIMITED+/- 4.71 08/14/2006 38,250
24,946 LIQUID FUNDING LIMITED+/- 4.61 12/01/2006 24,946
9,978 LIQUID FUNDING LIMITED SERIES MTN+/- 4.83 02/20/2007 9,978
16,630 MBIA GLOBAL FUNDING LLC+/- 4.78 02/20/2007 16,629
83,568 MERRILL LYNCH & COMPANY SERIES MTN+/- 4.80 10/27/2006 83,631
21
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INSTITUTIONAL EMERGING MARKETS FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 49,891 MORGAN STANLEY+/- 4.94% 10/10/2006 $ 49,891
7,692 MORGAN STANLEY SERIES EXL+/- 4.78 08/13/2010 7,694
28,636 MORTGAGE INTEREST NET TRUST 4.68 04/03/2006 28,636
37,585 MORTGAGE INTEREST NET TRUST 4.78 05/03/2006 37,436
1,663 NATIONWIDE BUILDING SOC+/- 4.74 07/21/2006 1,664
36,675 NEWPORT FUNDING CORPORATION 4.92 04/03/2006 36,675
50,355 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 4.78 04/03/2006 50,355
58,207 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.68 04/04/2006 58,199
7,414 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.93 06/26/2006 7,330
3,160 NORDEA NORTH AMERICA INCORPORATED 4.89 05/15/2006 3,142
87,726 NORTHERN ROCK PLC+/- 4.63 04/21/2006 87,713
6,574 NORTHERN ROCK PLC 4.69 04/24/2006 6,556
83,152 NORTHERN ROCK PLC+/- 4.66 02/05/2007 83,153
6,727 RACERS TRUST 2004-6-MM+/- 4.79 05/22/2006 6,728
1,663 SCALDIS CAPITAL LIMITED 4.93 06/15/2006 1,647
6,652 TANGO FINANCE CORPORATION 4.95 06/21/2006 6,581
19,230 TANGO FINANCE CORPORATION SERIES MTN+/- 4.87 10/25/2006 19,236
9,614 TRAVELERS INSURANCE COMPANY+/- 4.77 02/09/2007 9,614
41,576 UNICREDITO ITALIANO SERIES LIB+/- 4.70 03/09/2007 41,574
41,576 UNICREDITO ITALIANO SERIES YCD+/- 4.47 04/03/2006 41,576
63,196 US BANK NA SERIES BKNT+/- 4.66 07/28/2006 63,198
16,630 WHISTLEJACKET CAPITAL LIMITED+/- 4.65 06/09/2006 16,630
1,663 WHITE PINE FINANCE LLC 4.64 04/18/2006 1,660
8,315 WHITE PINE FINANCE LLC 4.82 05/05/2006 8,280
6,789 WHITE PINE FINANCE LLC 4.84 05/25/2006 6,741
5,109 WHITE PINE FINANCE LLC 4.93 06/20/2006 5,055
43,886 WHITE PINE FINANCE LLC 4.93 06/22/2006 43,412
41,576 WHITE PINE FINANCE LLC+/- 4.70 07/17/2006 41,576
39,913 WHITE PINE FINANCE LLC SERIES MTN1+/- 4.81 06/12/2006 39,917
4,131,750
---------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $4,134,260) 4,134,260
---------------
SHARES
RIGHTS - 0.50%
12,570 OTP BANK RIGHTS 435,961
TOTAL RIGHTS (COST $393,639) 435,961
---------------
PREFERRED STOCKS - 4.18%
47,300 BANCO BRADESCO SA PREFERRED 1,698,341
44,000 COMPANHIA VALE DO RIO DOCE PREFERREDA 1,895,009
TOTAL PREFERRED STOCKS (COST $2,148,153) 3,593,350
---------------
22
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
- --------------------------------------------------------------------------------
INSTITUTIONAL EMERGING MARKETS FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
SHORT-TERM INVESTMENTS - 3.81%
MUTUAL FUND - 3.81%
3,275,863 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~# $ 3,275,863
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $3,275,863) 3,275,863
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $66,159,250) 104.60% $ 89,970,560
OTHER ASSETS AND LIABILITIES, NET (4.60) (3,956,468)
------ ---------------
TOTAL NET ASSETS 100.00% $ 86,014,092
====== ===============
+ NON-INCOME EARNING SECURITIES.
<< ALL OR A PORTION OF THIS SECURITY IS ON LOAN. (SEE NOTE 2)
++ SECURITIES THAT MAY BE RESOLD TO "QUALIFIED INSTITUTIONAL BUYERS" UNDER
RULE 144A OR SECURITIES OFFERED PURSUANT TO SECTION 4(2) OF THE SECURITIES
ACT OF 1933, AS AMENDED.
+/- VARIABLE RATE INVESTMENTS.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
# SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $3,275,863.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
23
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL CORE FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 90.45%
AUSTRALIA - 3.39%
1,513 ORICA LIMITED (MISCELLANEOUS MANUFACTURING INDUSTRIES) $ 25,118
3,583 PUBLISHING & BROADCASTING LIMITED (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 44,376
1,148 RIO TINTO LIMITED (METAL MINING) 64,803
2,500 WESTFIELD GROUP (PROPERTIES) 30,605
313 WOODSIDE PETROLEUM LIMITED (OIL & GAS EXTRACTION) 10,191
175,093
----------
BELGIUM - 1.30%
1,870 FORTIS (DEPOSITORY INSTITUTIONS) 66,807
----------
CHINA - 0.47%
28,000 YANZHOU COAL MINING COMPANY LIMITED (RUBBER & MISCELLANEOUS PLASTICS PRODUCTS) 24,358
----------
DENMARK - 0.82%
1,140 DANSKE BANK A/S (DEPOSITORY INSTITUTIONS) 42,302
----------
FRANCE - 12.06%
2,800 ALCATEL SA (COMMUNICATIONS)+ 43,331
600 ALSTOM RGPT (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT)+ 50,316
1,650 AXA SA (INSURANCE CARRIERS) 57,907
800 BOUYGUES SA (ENGINEERING CONSTRUCTION) 42,512
906 CAP GEMINI SA (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 49,364
600 CARREFOUR SA (FOOD STORES) 31,920
450 LAFARGE SA (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 50,989
820 SANOFI-AVENTIS SA (CHEMICALS & ALLIED PRODUCTS) 78,007
1,000 SUEZ SA (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 39,410
455 TECHNIP SA (OIL & GAS EXTRACTION) 30,795
230 TOTAL SA (PETROLEUM REFINING & RELATED INDUSTRIES) 60,679
397 TOTAL SA ADR (OIL & GAS EXTRACTION) 52,297
1,000 VIVENDI UNIVERSAL SA (COMMUNICATIONS) 34,344
621,871
----------
GERMANY - 7.10%
300 ALLIANZ AG (INSURANCE CARRIERS) 50,091
600 BAYERISCHE MOTOREN WERKE AG (AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS) 33,047
221 CELESIO AG (WHOLESALE TRADE-DURABLE GOODS) 20,914
713 COMMERZBANK AG (DEPOSITORY INSTITUTIONS) 28,410
700 E.ON AG (ELECTRIC, GAS & SANITARY SERVICES) 77,034
325 FRESENIUS MEDICAL CARE AG (HEALTH SERVICES) 38,834
1,200 METRO AG (FOOD STORES) 61,529
260 SAP AG (BUSINESS SERVICES) 56,403
366,262
----------
GREECE - 0.86%
1,201 ALPHA BANK AE (DEPOSITORY INSTITUTIONS) 44,362
----------
24
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
- --------------------------------------------------------------------------------
INTERNATIONAL CORE FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
HONG KONG - 4.14%
5,000 CHEUNG KONG HOLDINGS LIMITED (REAL ESTATE) $ 53,002
5,000 CHINA MOBILE (HONG KONG) LIMITED (COMMUNICATIONS) 26,259
42,000 CHINA PETROLEUM & CHEMICAL CORPORATION (SINOPEC) (OIL COMPANIES) 24,358
69,000 GUANGDONG INVESTMENT LIMITED (BUSINESS SERVICES) 30,902
5,000 SUN HUNG KAI PROPERTIES LIMITED (REAL ESTATE) 50,779
5,000 TELEVISION BROADCASTS LIMITED (MOTION PICTURES) 28,354
213,654
----------
HUNGARY - 0.31%
228 OTP BANK GDR (DEPOSITORY INSTITUTIONS) 15,846
----------
ITALY - 2.94%
2,500 ENI SPA (PETROLEUM REFINING & RELATED INDUSTRIES) 71,136
11,100 UNICREDITO ITALIANO SPA (DEPOSITORY INSTITUTIONS) 80,239
151,375
----------
JAPAN - 22.94%
5,000 AEON COMPANY LIMITED (MISCELLANEOUS RETAIL) 121,283
1,000 DAIWA HOUSE INDUSTRY COMPANY LIMITED (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE
BUILDERS) 17,332
5,000 KANEKA CORPORATION (CHEMICALS & ALLIED PRODUCTS) 59,941
1,000 KAO CORPORATION (CHEMICALS & ALLIED PRODUCTS) 26,338
110 KEYENCE CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 28,598
4 MILLEA HOLDINGS INCORPORATED (INSURANCE CARRIERS) 79,184
6,000 MITSUI SUMITOMO INSURANCE COMPANY LIMITED (INSURANCE CARRIERS) 81,614
1,000 MURATA MANUFACTURING COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS,
EXCEPT COMPUTER EQUIPMENT) 67,715
3,000 NIKKO CORDIAL CORPORATION (FINANCIAL) 49,703
8,000 NIPPON OIL CORPORATION (OIL & GAS EXTRACTION) 62,736
3,500 NOMURA HOLDINGS INCORPORATED (SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES) 78,059
25 NTT DOCOMO INCORPORATED (COMMUNICATIONS) 36,958
2,500 OMRON CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 71,793
1,500 SECOM COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 76,720
5,000 SEKISUI HOUSE LIMITED (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 74,596
3,000 SHARP CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 53,144
10,000 SHINSEI BANK LIMITED (DEPOSITORY INSTITUTIONS) 70,008
11,000 SUMITOMO TRUST & BANKING COMPANY LIMITED (DEPOSITORY INSTITUTIONS) 127,290
1,183,012
----------
NETHERLANDS - 4.28%
544 AKZO NOBEL NV (CHEMICALS & ALLIED PRODUCTS) 28,869
2,910 ASML HOLDING NV (SEMICONDUCTOR EQUIPMENT MANUFACTURING & RELATED)+ 59,422
1,525 ING GROEP NV (FINANCIAL SERVICES) 60,247
400 ROYAL DUTCH SHELL PLC ADR CLASS A (PETROLEUM REFINING & RELATED INDUSTRIES) 24,904
1,900 WOLTERS KLUWER NV (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 47,386
220,828
----------
25
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL CORE FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
NORWAY - 1.12%
60 ORKLA ASA (FOOD & KINDRED PRODUCTS) $ 2,976
1,900 STATOIL ASA (PETROLEUM REFINING & RELATED INDUSTRIES) 54,794
57,770
----------
RUSSIA - 1.44%
300 LUKOIL (PETROLEUM REFINING & RELATED INDUSTRIES) 24,990
300 LUKOIL ADR (OIL & GAS EXTRACTION) 25,020
730 MOBILE TELESYSTEMS ADR (COMMUNICATIONS) 24,163
74,173
----------
SINGAPORE - 0.51%
3,000 GREAT EASTERN HOLDINGS LIMITED (HOLDING & OTHER INVESTMENT OFFICES) 26,178
----------
SOUTH KOREA - 0.40%
40 SAMSUNG ELECTRONICS COMPANY LIMITED - PREFERRED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT &
COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 20,482
----------
SPAIN - 1.38%
2,260 BANCO BILBAO VIZCAYA ARGENTARIA SA (DEPOSITORY INSTITUTIONS) 47,162
1,174 INDRA SISTEMAS SA (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 23,873
71,035
----------
SWEDEN - 0.86%
2,300 SECURITAS AB (BUSINESS SERVICES) 44,296
----------
SWITZERLAND - 6.52%
2,000 NOVARTIS AG ADR (CHEMICALS & ALLIED PRODUCTS) 110,880
756 ROCHE HOLDING AG (HEALTH SERVICES) 112,561
490 UBS AG (FINANCIAL SERVICES) 53,824
250 ZURICH FINANCIAL SERVICES AG (FINANCIAL SERVICES) 58,729
335,994
----------
THAILAND - 1.25%
14,000 ADVANCED INFORMATION SERVICE PUBLIC COMPANY LIMITED (FOREIGN REGISTERED) (COMMUNICATIONS) 32,952
11,300 BANGKOK BANK PUBLIC COMPANY LIMITED (DEPOSITORY INSTITUTIONS) 31,683
64,635
----------
UNITED KINGDOM - 16.36%
806 ASTRAZENECA PLC (CHEMICALS & ALLIED PRODUCTS) 40,610
3,868 AVIVA PLC (INSURANCE CARRIERS) 53,729
8,816 BAE SYSTEMS PLC (TRANSPORTATION BY AIR) 64,446
3,600 BARCLAYS PLC (DEPOSITORY INSTITUTIONS) 42,125
2,860 EMAP PLC (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 43,777
4,867 EMI GROUP PLC (AMUSEMENT & RECREATION SERVICES) 21,394
2,269 GLAXOSMITHKLINE PLC (CHEMICALS & ALLIED PRODUCTS) 59,330
960 GLAXOSMITHKLINE PLC ADR (CHEMICALS & ALLIED PRODUCTS) 50,218
3,900 HSBC HOLDINGS PLC (DEPOSITORY INSTITUTIONS) 65,387
30,800 LEGAL & GENERAL GROUP PLC (INSURANCE CARRIERS) 75,987
6,134 ROLLS ROYCE GROUP PLC (AEROSPACE, DEFENSE) 48,810
330,009 ROLLS ROYCE GROUP PLC CLASS B (AEROSPACE, DEFENSE) 585
26
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
- --------------------------------------------------------------------------------
INTERNATIONAL CORE FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
UNITED KINGDOM (CONTINUED)
2,950 ROYAL DUTCH SHELL PLC CLASS A (OIL & GAS EXTRACTION) $ 92,154
3,000 SCOTTISH & NEWCASTLE PLC (FOOD & KINDRED PRODUCTS) 27,104
1,670 STANDARD CHARTERED PLC (DEPOSITORY INSTITUTIONS) 41,549
55,657 VODAFONE GROUP PLC (COMMUNICATIONS) 116,522
843,727
----------
TOTAL COMMON STOCKS (COST $3,990,123) 4,664,060
----------
INVESTMENT COMPANIES - 1.01%
800 ISHARES MSCI EAFE INDEX FUND 52,016
TOTAL INVESTMENT COMPANIES (COST $45,627) 52,016
----------
SHORT-TERM INVESTMENTS - 6.58%
MUTUAL FUND - 6.58%
339,395 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~# 339,395
----------
TOTAL SHORT-TERM INVESTMENTS (COST $339,395) 339,395
----------
TOTAL INVESTMENTS IN SECURITIES
(COST $4,375,145) 98.04% $5,055,471
OTHER ASSETS AND LIABILITIES, NET 1.96 100,986
------ ----------
TOTAL NET ASSETS 100.00% $5,156,457
====== ==========
+ NON-INCOME EARNING SECURITIES.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
# SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $339,395.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
27
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 96.18%
AUSTRALIA - 2.49%
230,000 BLUESCOPE STEEL LIMITED (MISCELLANEOUS MANUFACTURING INDUSTRIES) $ 1,182,239
264,000 BORAL LIMITED (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 1,685,861
44,000 COMMONWEALTH BANK OF AUSTRALIA (DEPOSITORY INSTITUTIONS) 1,426,934
334,300 CSR LIMITED (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 1,067,393
38,200 NATIONAL AUSTRALIA BANK LIMITED (DEPOSITORY INSTITUTIONS) 1,030,998
222,900 ONESTEEL LIMITED (PRIMARY METAL INDUSTRIES) 657,446
94,189 ORICA LIMITED (MISCELLANEOUS MANUFACTURING INDUSTRIES) 1,563,702
136,379 PUBLISHING & BROADCASTING LIMITED (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 1,689,066
345,600 QANTAS AIRWAYS (TRANSPORTATION BY AIR) 875,850
53,194 RIO TINTO LIMITED (METAL MINING) 3,002,737
158,200 SANTOS LIMITED (OIL & GAS EXTRACTION) 1,288,848
584,000 TELSTRA CORPORATION LIMITED (COMMUNICATIONS) 1,563,642
143,000 WESTFIELD GROUP (PROPERTIES) 1,750,593
16,223 WOODSIDE PETROLEUM LIMITED (OIL & GAS EXTRACTION) 528,207
19,313,516
---------------
AUSTRIA - 0.42%
11,100 VOESTALPINE AG (FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT) 1,553,123
26,988 WIENER STAEDTISCHE ALLGEMEINE VERSICHERUNG AG (INSURANCE CARRIERS) 1,667,985
3,221,108
---------------
BELGIUM - 2.05%
10,400 DEXIA SA (DEPOSITORY INSTITUTIONS) 268,955
163,700 FORTIS (DEPOSITORY INSTITUTIONS) 5,848,271
197,735 FORTIS NA (DEPOSITORY INSTITUTIONS) 7,054,604
57,760 INBEV NA (FOOD & KINDRED PRODUCTS) 2,708,878
15,880,708
---------------
BRAZIL - 0.13%
238,790 VIVO PARTICIPACOES SA ADR (COMMUNICATIONS) 1,022,021
---------------
CANADA - 0.65%
83,600 ENCANA CORPORATION (OIL & GAS EXTRACTION) 3,901,357
13,800 RESEARCH IN MOTION LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT)+ 1,171,344
5,072,701
---------------
CHINA - 0.17%
1,480,000 YANZHOU COAL MINING COMPANY LIMITED (RUBBER & MISCELLANEOUS PLASTICS PRODUCTS) 1,287,512
---------------
DENMARK - 0.67%
109,100 DANSKE BANK A/S (DEPOSITORY INSTITUTIONS) 4,048,418
33,700 H. LUNDBECK A/S (CHEMICALS & ALLIED PRODUCTS) 738,819
17,600 VESTAS WIND SYSTEMS A/S (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL
& OPTICAL)+ 438,728
5,225,965
---------------
28
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
FINLAND - 0.82%
22,400 ELCOTEQ NETWORK (COMMUNICATIONS) $ 501,922
87,700 FORTUM OYJ (ELECTRIC, GAS & SANITARY SERVICES) 2,212,746
89,800 KEMIRA OYJ (CHEMICALS & ALLIED PRODUCTS) 1,564,900
55,900 RAUTARUUKKI OYJ (PRIMARY METAL INDUSTRIES) 2,064,800
6,344,368
---------------
FRANCE - 9.94%
16,807 ACCOR SA (METAL MINING) 968,890
181,400 ALCATEL SA (COMMUNICATIONS)+ 2,807,240
32,271 ALSTOM RGPT (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT)+ 2,706,262
10,500 ASSURANCES GENERALES DE FRANCE (INSURANCE CARRIERS) 1,267,360
177,672 AXA SA (INSURANCE CARRIERS) 6,235,465
51,000 BNP PARIBAS SA (DEPOSITORY INSTITUTIONS)+ 4,737,330
49,300 BOUYGUES SA (ENGINEERING CONSTRUCTION) 2,619,798
48,978 CAP GEMINI SA (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 2,668,570
108,341 CARREFOUR SA (FOOD STORES) 5,763,797
10,000 CNP ASSURANCES (INSURANCE AGENTS, BROKERS & SERVICE) 1,008,265
41,900 COMPAGNIE DE SAINT-GOBAIN (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 2,927,282
9,500 COMPAGNIE GENERALE DES ESTABLISSEMENTS MICHELIN (RUBBER & MISCELLANEOUS PLASTICS PRODUCTS) 596,930
7,872 ELECTRICITE DE FRANCE (ELECTRIC, GAS & SANITARY SERVICES)+ 446,460
17,200 LAFARGE SA (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 1,948,908
28,403 LVMH MOET HENNESSY LOUIS VUITTON SA (CONSUMER SERVICES) 2,784,608
74,742 PAGESJAUNES SA (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 2,099,566
16,900 PEUGEOT SA (AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS) 1,064,980
22,407 PPR SA (APPAREL & ACCESSORY STORES) 2,705,904
14,600 RALLYE SA (GENERAL MERCHANDISE STORES) 623,151
24,100 RENAULT SA (TRANSPORTATION EQUIPMENT) 2,562,804
52,137 SAFRAN SA (NATIONAL SECURITY & INTERNATIONAL AFFAIRS) 1,321,780
57,841 SANOFI-AVENTIS SA (CHEMICALS & ALLIED PRODUCTS) 5,502,458
25,000 SOCIETE GENERALE (DEPOSITORY INSTITUTIONS) 3,759,786
67,000 SUEZ SA (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 2,640,442
24,004 TECHNIP SA (OIL & GAS EXTRACTION) 1,624,644
28,700 TOTAL SA (PETROLEUM REFINING & RELATED INDUSTRIES) 7,571,669
26,899 VALEO SA (TRANSPORTATION EQUIPMENT) 1,124,948
143,700 VIVENDI UNIVERSAL SA (COMMUNICATIONS) 4,935,236
77,024,533
---------------
GERMANY - 7.98%
43,089 ALLIANZ AG (INSURANCE CARRIERS) 7,194,555
47,400 BASF AG (CHEMICALS & ALLIED PRODUCTS) 3,716,498
60,340 BAYERISCHE MOTOREN WERKE AG (AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS) 3,323,460
10,972 CELESIO AG (WHOLESALE TRADE-DURABLE GOODS) 1,038,323
122,542 COMMERZBANK AG (DEPOSITORY INSTITUTIONS) 4,882,790
27,800 DAIMLERCHRYSLER AG (TRANSPORTATION EQUIPMENT) 1,596,888
58,953 DEUTSCHE LUFTHANSA AG (TRANSPORTATION BY AIR) 1,055,207
110,646 DEUTSCHE POST AG (TRANSPORTATION SERVICES) 2,774,262
29
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
GERMANY (CONTINUED)
23,933 DEUTSCHE TELEKOM AG (COMMUNICATIONS) $ 403,727
71,404 E.ON AG (ELECTRIC, GAS & SANITARY SERVICES) 7,857,919
16,500 FRESENIUS MEDICAL CARE AG (HEALTH SERVICES) 1,971,570
20,905 HEIDELBERGER DRUCKMASCHINEN AG (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 922,153
36,700 IKB DEUTSCHE INDUSTRIEBANK AG (DEPOSITORY INSTITUTIONS) 1,350,265
30,100 MAN AG (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 2,089,032
59,100 METRO AG (FOOD STORES) 3,030,273
76,676 PROSIEBENSAT.1 MEDIA AG (COMMUNICATIONS)+ 1,997,787
46,655 RWE AG (ELECTRIC, GAS & SANITARY SERVICES) 4,060,644
22,648 SAP AG (BUSINESS SERVICES) 4,913,132
35,423 SIEMENS AG (WHOLESALE TRADE NON-DURABLE GOODS) 3,307,143
108,300 THYSSENKRUPP AG (PRIMARY METAL INDUSTRIES) 3,127,547
61,600 TUI AG (TRANSPORTATION BY AIR) 1,209,336
61,822,511
---------------
GREECE - 0.40%
71,949 ALPHA BANK AE (DEPOSITORY INSTITUTIONS) 2,657,609
17,700 PUBLIC POWER CORPORATION SA (ELECTRIC, GAS & SANITARY SERVICES) 416,127
3,073,736
---------------
HONG KONG - 3.20%
218,000 CHEUNG KONG HOLDINGS LIMITED (REAL ESTATE) 2,310,885
281,000 CHINA MERCHANTS HOLDINGS INTERNATIONAL COMPANY LIMITED (MOTOR FREIGHT TRANSPORTATION &
WAREHOUSING) 811,223
1,437,400 CHINA MOBILE (HONG KONG) LIMITED (COMMUNICATIONS) 7,549,029
2,099,000 CHINA PETROLEUM & CHEMICAL CORPORATION (SINOPEC) (OIL COMPANIES) 1,217,337
421,000 CITIC PACIFIC LIMITED (MISCELLANEOUS RETAIL) 1,264,224
47,500 ESPRIT HOLDINGS LIMITED (WHOLESALE TRADE NON-DURABLE GOODS) 369,757
2,745,000 GUANGDONG INVESTMENT LIMITED (BUSINESS SERVICES) 1,229,371
647,000 MTR CORPORATION (RAILROAD TRANSPORTATION) 1,459,245
39,300 NWS HOLDINGS LIMITED (BUSINESS SERVICES) 72,936
275,220 ORIENT OVERSEAS INTERNATIONAL LIMITED (WATER TRANSPORTATION) 931,097
709,900 SMARTONE TELECOMMUNICATIONS HOLDING LIMITED (COMMUNICATIONS) 777,682
514,000 SUN HUNG KAI PROPERTIES LIMITED (REAL ESTATE) 5,220,056
286,000 TELEVISION BROADCASTS LIMITED (MOTION PICTURES) 1,621,827
24,834,669
---------------
HUNGARY - 0.11%
12,125 OTP BANK GDR (DEPOSITORY INSTITUTIONS) 842,688
---------------
IRELAND - 0.26%
82,800 IRISH LIFE & PERMANENT PLC (NON-DEPOSITORY CREDIT INSTITUTIONS) 1,986,767
---------------
ITALY - 4.00%
66,300 BANCHE POPOLARI UNITE SCRL (DEPOSITORY INSTITUTIONS) 1,607,726
97,000 BENETTON GROUP SPA (APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS) 1,448,217
4,300 CAPITALIA SPA (DEPOSITORY INSTITUTIONS) 35,747
341,091 ENI SPA (PETROLEUM REFINING & RELATED INDUSTRIES) 9,705,539
160,700 FIAT SPA (TRANSPORTATION EQUIPMENT) 2,025,352
30
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ITALY (CONTINUED)
329,600 IFIL INVESTMENTS SPA (MISCELLANEOUS SERVICES) $ 1,926,242
243,274 SAIPEM SPA (OIL & GAS EXTRACTION) 5,627,985
1,197,940 UNICREDITO ITALIANO SPA (DEPOSITORY INSTITUTIONS) 8,659,580
31,036,388
---------------
JAPAN - 24.05%
9,000 ACOM COMPANY LIMITED (NON-DEPOSITORY CREDIT INSTITUTIONS) 528,377
252,600 AEON COMPANY LIMITED (MISCELLANEOUS RETAIL) 6,127,213
17,900 AIFUL CORPORATION (NON-DEPOSITORY CREDIT INSTITUTIONS) 1,184,715
34,300 ALPINE ELECTRONICS INCORPORATED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT) 506,777
34,000 ALPS ELECTRIC COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT) 547,986
127,300 ASAHI BREWERIES LIMITED (FOOD & KINDRED PRODUCTS) 1,806,211
183,000 ASAHI KASEI CORPORATION (CHEMICALS & ALLIED PRODUCTS) 1,304,478
92,800 BRIDGESTONE CORPORATION (AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS) 1,935,633
22,700 CANON INCORPORATED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 1,502,404
142,800 CHUGAI PHARMACEUTICAL COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 2,590,297
225,000 COSMO OIL COMPANY LIMITED (OIL & GAS EXTRACTION) 1,179,482
164,700 CREDIT SAISON COMPANY LIMITED (MISCELLANEOUS RETAIL) 9,109,575
87,800 DAIICHI SANKYO COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 2,002,914
32,000 DAIWA HOUSE INDUSTRY COMPANY LIMITED (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE
BUILDERS) 554,630
342,000 DENKI KAGAKU KOGYO KABUSHIKI KAISHA (CHEMICALS & ALLIED PRODUCTS) 1,528,394
51,100 HITACHI CAPITAL CORPORATION (NON-DEPOSITORY CREDIT INSTITUTIONS) 1,022,434
73,000 HOKKAIDO ELECTRIC POWER COMPANY INCORPORATED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT &
COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 1,566,058
79,000 HOKUETSU PAPER MILLS LIMITED (PAPER & ALLIED PRODUCTS) 466,483
30,900 HONDA MOTOR COMPANY LIMITED (TRANSPORTATION EQUIPMENT) 1,913,857
710 JAPAN TOBACCO INCORPORATED (TOBACCO PRODUCTS) 2,497,366
3,689 JUPITER TELECOMMUNICATIONS COMPANY LIMITED (COMMUNICATIONS)+ 2,607,687
248,000 KANEKA CORPORATION (CHEMICALS & ALLIED PRODUCTS) 2,973,050
97,200 KANSAI ELECTRIC POWER COMPANY INCORPORATED (ELECTRIC, GAS & SANITARY SERVICES) 2,159,541
89,000 KAO CORPORATION (CHEMICALS & ALLIED PRODUCTS) 2,344,095
16,610 KEYENCE CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 4,318,318
16,000 KYORIN COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 193,713
102,000 MAEDA ROAD CONSTRUCTION COMPANY LIMITED (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE
BUILDERS) 805,947
325,400 MARUBENI CORPORATION (BUSINESS SERVICES) 1,703,028
340 MILLEA HOLDINGS INCORPORATED (INSURANCE CARRIERS) 6,730,671
227,000 MITSUBISHI CHEMICAL HOLDINGS CORPORATION (CHEMICALS & ALLIED PRODUCTS) 1,400,187
102,000 MITSUBISHI ESTATE COMPANY LIMITED (REAL ESTATE) 2,417,842
250 MITSUBISHI UFJ FINANCIAL GROUP INCORPORATED (DEPOSITORY INSTITUTIONS) 3,823,280
132,400 MITSUI & COMPANY LIMITED (WHOLESALE TRADE-DURABLE GOODS) 1,914,569
92,000 MITSUI FUDOSAN COMPANY LIMITED (REAL ESTATE) 2,114,359
302,000 MITSUI SUMITOMO INSURANCE COMPANY LIMITED (INSURANCE CARRIERS) 4,107,919
796 MIZUHO FINANCIAL GROUP INCORPORATED (BANKING) 6,512,727
52,200 MURATA MANUFACTURING COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS,
EXCEPT COMPUTER EQUIPMENT) 3,534,698
31
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
JAPAN (CONTINUED)
40,800 NAMCO BANDAI HOLDINGS INCORPORATED (AMUSEMENT & RECREATION SERVICES) $ 558,790
247,000 NIKKO CORDIAL CORPORATION (FINANCIAL) 4,092,184
729,000 NIPPON OIL CORPORATION (OIL & GAS EXTRACTION) 5,716,797
800 NIPPON TELEGRAPH & TELEPHONE CORPORATION (COMMUNICATIONS) 3,432,455
145,200 NISSAN MOTOR COMPANY LIMITED (AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS) 1,724,636
175,300 NOMURA HOLDINGS INCORPORATED (SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES) 3,909,622
144,000 NSK LIMITED (PRIMARY METAL INDUSTRIES) 1,250,365
327 NTT DATA CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 1,572,489
3,772 NTT DOCOMO INCORPORATED (COMMUNICATIONS) 5,576,279
326,000 OJI PAPER COMPANY LIMITED (PAPER & ALLIED PRODUCTS) 2,005,302
113,800 OMRON CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 3,268,003
22,700 ORIX CORPORATION (MISCELLANEOUS RETAIL) 7,068,437
19,400 PROMISE COMPANY LIMITED (NON-DEPOSITORY CREDIT INSTITUTIONS) 1,173,560
133,000 RENGO COMPANY LIMITED (PAPER & ALLIED PRODUCTS) 1,029,422
66,000 RICOH COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 1,289,720
43,200 RYOSAN COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 1,159,830
36,800 SANTEN PHARMACEUTICAL COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 884,826
7,700 SANYO SHINPAN FINANCE COMPANY LIMITED (NON-DEPOSITORY CREDIT INSTITUTIONS) 477,570
68,000 SECOM COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 3,477,995
161,000 SEGA SAMMY HOLDINGS INCORPORATED (AMUSEMENT & RECREATION SERVICES) 6,538,488
264,000 SEKISUI HOUSE LIMITED (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 3,938,692
145,000 SHARP CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 2,568,607
563,000 SHINSEI BANK LIMITED (DEPOSITORY INSTITUTIONS) 3,941,478
60,400 SHOWA SHELL SEKIYU KK (OIL & GAS EXTRACTION) 685,594
14,100 SMC CORPORATION (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 2,197,060
154,000 SUMITOMO BAKELITE COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 1,394,766
47 SUMITOMO MITSUI FINANCIAL GROUP INCORPORATED (DEPOSITORY INSTITUTIONS) 519,116
865,000 SUMITOMO TRUST & BANKING COMPANY LIMITED (DEPOSITORY INSTITUTIONS) 10,009,601
567,200 TAISEI CORPORATION (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 2,717,934
12,000 TAKEFUJI CORPORATION (HOLDING & OTHER INVESTMENT OFFICES) 755,480
155,000 TANABE SEIYAKU COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 1,718,564
289,000 TOHO GAS COMPANY LIMITED (PETROLEUM REFINING & RELATED INDUSTRIES) 1,166,313
54,700 TOKYO ELECTRIC POWER COMPANY INCORPORATED (ELECTRIC, GAS & SANITARY SERVICES) 1,364,015
209,000 TOSHIBA TEC CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 1,095,608
119,500 TOYOTA MOTOR CORPORATION (TRANSPORTATION EQUIPMENT) 6,528,335
186,344,848
---------------
LUXEMBOURG - 0.54%
13,796 RTI GROUP (COMMUNICATIONS) 1,212,947
187,900 STOLT OFFSHORE SA (ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES)+ 2,953,140
4,166,087
---------------
MEXICO - 0.92%
218,400 GRUPO TELEVISA SA ADR (COMMUNICATIONS) 4,346,160
1,029,600 WALMART DE MEXICO SA DE CV (GENERAL MERCHANDISE STORES) 2,758,089
7,104,249
---------------
32
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
NETHERLANDS - 3.98%
64,600 ABN AMRO HOLDINGS NV (DEPOSITORY INSTITUTIONS) $ 1,936,794
216,298 AEGON NV (INSURANCE CARRIERS) 4,002,606
51,616 AKZO NOBEL NV (CHEMICALS & ALLIED PRODUCTS) 2,739,117
357,123 ASML HOLDING NV (SEMICONDUCTOR EQUIPMENT MANUFACTURING & RELATED)+ 7,292,376
33,500 ASML HOLDING NV NEW YORK REGISTERED SHARES (SEMICONDUCTOR EQUIPMENT MANUFACTURING & RELATED)+ 682,395
261,356 ING GROEP NV (FINANCIAL SERVICES) 10,325,269
70,543 KONINKLIJKE AHOLD NV (FOOD STORES)+ 554,817
132,200 WOLTERS KLUWER NV (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 3,297,070
30,830,444
---------------
NORWAY - 0.97%
13,400 NORSK HYDRO ASA (OIL & GAS EXTRACTION) 1,856,567
3,094 ORKLA ASA (FOOD & KINDRED PRODUCTS) 153,435
143,200 SEADRILL LIMITED (PETROLEUM REFINING & RELATED INDUSTRIES)+ 1,966,553
123,600 STATOIL ASA (PETROLEUM REFINING & RELATED INDUSTRIES) 3,564,514
7,541,069
---------------
PORTUGAL - 0.52%
950,316 BANCO COMERCIAL PORTUGUES SA (DEPOSITORY INSTITUTIONS) 3,028,832
262,200 ELECTRICIDADE DE PORTUGAL SA (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS,
EXCEPT COMPUTER EQUIPMENT) 1,029,506
4,058,338
---------------
RUSSIA - 1.66%
26,901 AFK SISTEMA GDR (BUSINESS SERVICES) 656,384
114,800 LUKOIL ADR (OIL & GAS EXTRACTION) 9,551,360
39,800 MOBILE TELESYSTEMS ADR (COMMUNICATIONS) 1,317,380
19,725 UNIFIED ENERGY SYSTEM REG S GDR (ELECTRIC, GAS & SANITARY SERVICES) 1,345,245
12,870,369
---------------
SINGAPORE - 1.18%
342,500 KEPPEL CORPORATION LIMITED (BUSINESS SERVICES) 2,925,086
433,101 MOBILONE LIMITED (COMMUNICATIONS) 629,877
398,000 NEPTUNE ORIENT LINES LIMITED (WATER TRANSPORTATION) 536,956
439,400 SINGAPORE AIRLINES LIMITED (TRANSPORTATION SERVICES) 3,807,036
129,000 UNITED OVERSEAS BANK LIMITED (DEPOSITORY INSTITUTIONS) 1,245,413
9,144,368
---------------
SOUTH KOREA - 1.71%
55,459 HANA FINANCIAL GROUP INCORPORATED (DEPOSITORY INSTITUTIONS)+ 2,625,683
67,950 KOOKMIN BANK (FINANCIAL SERVICES) 5,867,646
2,250 SAMSUNG ELECTRONICS COMPANY LIMITED - PREFERRED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT &
COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 1,152,095
81,380 SHINHAN FINANCIAL GROUP COMPANY LIMITED (FINANCIAL SERVICES) 3,643,506
13,288,930
---------------
33
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
SPAIN - 2.20%
196,000 BANCO BILBAO VIZCAYA ARGENTARIA SA (DEPOSITORY INSTITUTIONS) $ 4,090,162
105,300 BANCO SANTANDER CENTRAL HISPANO SA (DEPOSITORY INSTITUTIONS) 1,537,682
126,200 ENDESA SA (ELECTRIC, GAS & SANITARY SERVICES) 4,074,224
69,399 INDRA SISTEMAS SA (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 1,411,226
53,005 INDUSTRIA DE DISENO TEXTIL SA (APPAREL & ACCESSORY STORES) 2,045,868
52,530 PROMOTORA DE INFORMACIONES SA (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 970,797
104,000 REPSOL YPF SA (OIL & GAS EXTRACTION) 2,954,216
17,084,175
---------------
SWEDEN - 1.08%
40,900 ELECTROLUX AB (HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES) 1,173,673
323,200 NORDEA AB (DEPOSITORY INSTITUTIONS) 3,994,094
103,300 SECURITAS AB (BUSINESS SERVICES) 1,989,471
25,300 VOLVO AB B SHARES (TRANSPORTATION EQUIPMENT) 1,184,034
8,341,272
---------------
SWITZERLAND - 7.87%
43,925 ADECCO SA (BUSINESS SERVICES) 2,454,598
16,900 CIBA SPECIALTY CHEMICALS AG (CHEMICALS & ALLIED PRODUCTS) 1,010,513
74,700 CREDIT SUISSE GROUP (NON-DEPOSITORY CREDIT INSTITUTIONS) 4,191,543
3,100 GEORG FISCHER AG (TRANSPORTATION EQUIPMENT)+ 1,381,582
18,261 NESTLE SA (FOOD & KINDRED PRODUCTS) 5,420,939
2,874 NOBEL BIOCARE HOLDING AG (APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR
MATERIALS) 639,879
152,973 NOVARTIS AG (CHEMICALS & ALLIED PRODUCTS) 8,507,301
3,600 RIETER HOLDING AG (CHEMICALS & ALLIED PRODUCTS) 1,435,968
60,055 ROCHE HOLDING AG (HEALTH SERVICES) 8,941,568
16,895 SAURER AG (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 1,347,816
52,230 SWISS REINSURANCE (INSURANCE CARRIERS) 3,649,870
2,500 SWISSCOM AG (COMMUNICATIONS) 810,225
605 SYNTHES INCORPORATED (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL &
OPTICAL) 66,364
134,287 UBS AG (FINANCIAL SERVICES) 14,750,814
2,900 VALORA HOLDING AG (GENERAL MERCHANDISE STORES) 613,412
6,400 VERWALTUNGS-UND PRIVAT-BANK AG (DEPOSITORY INSTITUTIONS) 1,364,783
18,600 ZURICH FINANCIAL SERVICES AG (FINANCIAL SERVICES) 4,369,463
60,956,638
---------------
THAILAND - 0.42%
664,000 ADVANCED INFORMATION SERVICE PUBLIC COMPANY LIMITED (FOREIGN REGISTERED) (COMMUNICATIONS) 1,562,855
592,200 BANGKOK BANK PUBLIC COMPANY LIMITED (DEPOSITORY INSTITUTIONS) 1,660,445
3,223,300
---------------
UNITED KINGDOM - 15.78%
161,500 ALFRED MCALPINE GROUP PLC (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 1,313,168
117,400 ALLIANCE & LEICESTER PLC (DEPOSITORY INSTITUTIONS) 2,521,090
37,674 ARRIVA PLC (TRANSPORTATION BY AIR) 402,876
89,386 ASTRAZENECA PLC (CHEMICALS & ALLIED PRODUCTS) 4,503,699
335,934 AVIVA PLC (INSURANCE CARRIERS) 4,666,317
273,000 BAE SYSTEMS PLC (TRANSPORTATION BY AIR) 1,995,669
792,413 BARCLAYS PLC (DEPOSITORY INSTITUTIONS) 9,272,375
34
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
UNITED KINGDOM (CONTINUED)
93,600 BARRATT DEVELOPMENTS PLC (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) $ 1,722,161
80,824 BOOTS GROUP PLC (HEALTH SERVICES) 1,010,353
193,700 BRADFORD & BINGLEY PLC (NON-DEPOSITORY CREDIT INSTITUTIONS) 1,680,156
896,400 BRIT INSURANCE HOLDINGS PLC (INSURANCE CARRIERS) 1,514,584
569,600 BT GROUP PLC (COMMUNICATIONS) 2,196,973
216,118 CADBURY SCHWEPPES PLC (FOOD & KINDRED PRODUCTS) 2,147,775
39,265 CARNIVAL PLC (WATER TRANSPORTATION) 1,930,607
207,545 CENTRICA PLC (ELECTRIC, GAS & SANITARY SERVICES) 1,015,062
441,700 DS SMITH PLC (PAPER & ALLIED PRODUCTS) 1,385,181
677,500 DSG INTERNATIONAL PLC (GENERAL MERCHANDISE STORES) 2,171,738
198,600 EMAP PLC (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 3,039,884
356,567 EMI GROUP PLC (AMUSEMENT & RECREATION SERVICES) 1,567,341
99,700 FIRSTGROUP PLC (TRANSPORTATION SERVICES) 735,750
93,000 GEORGE WIMPEY PLC (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 904,034
283,000 GKL PLC (TRANSPORTATION EQUIPMENT) 1,634,857
302,600 GLAXOSMITHKLINE PLC (CHEMICALS & ALLIED PRODUCTS) 7,912,382
178,400 HANSON PLC (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 2,337,050
202,200 HBOS PLC (DEPOSITORY INSTITUTIONS) 3,376,030
294,881 HSBC HOLDINGS PLC (DEPOSITORY INSTITUTIONS) 4,943,971
217,000 IMPERIAL CHEMICAL INDUSTRIES PLC (CHEMICALS & ALLIED PRODUCTS) 1,304,481
1,051,187 KINGFISHER PLC (BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS) 4,374,086
1,005,000 LEGAL & GENERAL GROUP PLC (INSURANCE CARRIERS) 2,479,455
432,300 LLOYDS TSB GROUP PLC (DEPOSITORY INSTITUTIONS) 4,134,704
142,900 MITCHELLS & BUTLERS PLC (EATING & DRINKING PLACES) 1,187,999
348,700 NORTHERN FOODS PLC (FOOD & KINDRED PRODUCTS) 590,688
347,500 NORTHUMBRIAN WATER GROUP PLC (FOOD & KINDRED PRODUCTS) 1,441,451
753,300 OLD MUTUAL PLC (INSURANCE CARRIERS) 2,633,939
693,900 PILKINGTON PLC (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 1,953,052
433,024 ROLLS ROYCE GROUP PLC (AEROSPACE, DEFENSE) 3,445,714
23,296,691 ROLLS ROYCE GROUP PLC CLASS B (AEROSPACE, DEFENSE) 41,285
728,900 ROYAL & SUN ALLIANCE INSURANCE GROUP (INSURANCE CARRIERS) 1,744,461
204,371 ROYAL DUTCH SHELL PLC CLASS A (OIL & GAS EXTRACTION) 6,384,263
138,000 ROYAL DUTCH SHELL PLC CLASS B (OIL & GAS EXTRACTION) 4,488,350
258,000 SCOTTISH & NEWCASTLE PLC (FOOD & KINDRED PRODUCTS) 2,330,907
236,300 SCOTTISH POWER PLC (ELECTRIC, GAS & SANITARY SERVICES) 2,389,398
46,348 SMITH & NEPHEW PLC (CHEMICALS & ALLIED PRODUCTS) 411,485
98,500 STANDARD CHARTERED PLC (DEPOSITORY INSTITUTIONS) 2,450,649
113,000 TATE & LYLE PLC (FOOD & KINDRED PRODUCTS) 1,121,028
174,100 TAYLOR WOODROW PLC (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 1,222,030
2,445,000 VODAFONE GROUP PLC (COMMUNICATIONS) 5,118,795
753,965 WILLIAM MORRISON SUPERMARKETS PLC (FOOD & KINDRED PRODUCTS) 2,488,895
55,000 WPP GROUP PLC (BUSINESS SERVICES) 659,824
122,298,022
---------------
USA - 0.01%
2,300 TIM HORTONS INCORPORATED (EATING & DRINKING PLACES)+ 61,065
---------------
TOTAL COMMON STOCKS (COST $589,697,576) 745,302,365
---------------
35
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
SHORT-TERM INVESTMENTS - 2.11%
MUTUAL FUND - 2.11%
16,380,491 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~# $ 16,380,491
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $16,380,491) 16,380,491
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $606,078,067) 98.29% $ 761,682,856
OTHER ASSETS AND LIABILITIES, NET 1.71 13,247,797
------ ---------------
TOTAL NET ASSETS 100.00% $ 774,930,653
====== ===============
+ NON-INCOME EARNING SECURITIES.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
# SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $16,380,491.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
36
STATEMENTS OF ASSETS AND LIABILITIES -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
- --------------------------------------------------------------------------------
INSTITUTIONAL
EMERGING MARKETS EMERGING INTERNATIONAL INTERNATIONAL
FOCUS FUND MARKETS FUND CORE FUND EQUITY FUND
- -----------------------------------------------------------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE .............................. $ 281,870,001 $ 82,560,437 $ 4,716,076 $ 745,302,365
COLLATERAL FOR SECURITIES LOANED (NOTE 2) ................... 21,536,831 4,134,260 0 0
INVESTMENTS IN AFFILIATES ................................... 9,234,363 3,275,863 339,395 16,380,491
---------------- ------------- ------------- -------------
TOTAL INVESTMENTS AT MARKET VALUE (SEE COST BELOW) ............. 312,641,195 89,970,560 5,055,471 761,682,856
---------------- ------------- ------------- -------------
CASH ........................................................ 0 0 0 50,000
FOREIGN CURRENCY, AT VALUE .................................. 24 70 0 9,034,250
RECEIVABLE FOR FUND SHARES ISSUED ........................... 305,193 0 7,323 87,463
RECEIVABLE FOR INVESTMENTS SOLD ............................. 0 0 95,062 7,585,210
RECEIVABLES FOR DIVIDENDS AND INTEREST ...................... 1,508,247 351,849 20,503 2,869,171
RECEIVABLE FROM INVESTMENT ADVISOR AND AFFILIATES ........... 0 0 39,361 0
---------------- ------------- ------------- -------------
TOTAL ASSETS ................................................... 314,454,659 90,322,479 5,217,720 781,308,950
---------------- ------------- ------------- -------------
LIABILITIES
FOREIGN TAXES PAYABLE ....................................... 299,639 38,340 0 447
PAYABLE FOR FUND SHARES REDEEMED ............................ 291,090 0 0 142,802
PAYABLE FOR INVESTMENTS PURCHASED ........................... 634,402 38,031 41,196 5,457,350
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) ....... 293,068 69,903 0 584,052
PAYABLE TO THE TRUSTEES AND SHAREHOLDER SERVICING AGENT ..... 72,756 3,926 8,139 186,960
PAYABLE FOR SECURITIES LOANED (NOTE 2) ...................... 21,536,831 4,134,260 0 0
ACCRUED EXPENSES AND OTHER LIABILITIES ...................... 101,758 23,927 11,928 6,686
---------------- ------------- ------------- -------------
TOTAL LIABILITIES .............................................. 23,229,544 4,308,387 61,263 6,378,297
---------------- ------------- ------------- -------------
TOTAL NET ASSETS ............................................... $ 291,225,115 $ 86,014,092 $ 5,156,457 $ 774,930,653
================ ============= ============= =============
NET ASSETS CONSIST OF:
- -----------------------------------------------------------------------------------------------------------------------------------
PAID-IN CAPITAL ............................................. $ 467,958,695 $ 62,953,559 $ 4,443,316 $ 707,994,555
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) .................. 275,507 (14,690) (13,294) (1,243,797)
UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON INVESTMENTS ....... (256,366,178) (740,617) 46,333 (87,392,691)
NET UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS,
FOREIGN CURRENCIES AND TRANSLATION OF ASSETS AND
LIABILITIES DENOMINATED IN FOREIGN CURRENCIES ............ 79,357,091 23,815,840 680,102 155,572,586
---------------- ------------- ------------- -------------
TOTAL NET ASSETS ............................................... $ 291,225,115 $ 86,014,092 $ 5,156,457 $ 774,930,653
---------------- ------------- ------------- -------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE(1)
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS - CLASS A ........................................ $ 186,758,692 N/A $ 2,150,014 $ 54,184,036
SHARES OUTSTANDING - CLASS A ................................ 5,524,091 N/A 156,393 3,534,408
NET ASSET VALUE PER SHARE - CLASS A ......................... $ 33.81 N/A $ 13.75 $ 15.33
MAXIMUM OFFERING PRICE PER SHARE - CLASS A(2) ............... $ 35.87 N/A $ 14.59 $ 16.27
NET ASSETS - CLASS B ........................................ $ 6,331,273 N/A $ 2,436,338 $ 15,652,814
SHARES OUTSTANDING - CLASS B ................................ 191,011 N/A 179,356 1,069,641
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS B ...... $ 33.15 N/A $ 13.58 $ 14.63
NET ASSETS - CLASS C ........................................ $ 2,850,253 N/A $ 536,079 $ 1,566,958
SHARES OUTSTANDING - CLASS C ................................ 86,309 N/A 39,368 107,284
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS C ...... $ 33.02 N/A $ 13.62 $ 14.61
NET ASSETS - ADMINISTRATOR CLASS ............................ $ 95,284,897 N/A $ 34,026 $ 703,526,845
SHARES OUTSTANDING - ADMINISTRATOR CLASS .................... 2,823,878 N/A 2,471 45,973,336
NET ASSET VALUE AND OFFERING PRICE PER
SHARE - ADMINISTRATOR CLASS .............................. $ 33.74 N/A $ 13.77 $ 15.30
NET ASSETS - INSTITUTIONAL CLASS ............................ N/A $ 86,014,092 N/A N/A
SHARES OUTSTANDING - INSTITUTIONAL CLASS .................... N/A 996,862 N/A N/A
NET ASSET VALUE AND OFFERING PRICE PER SHARE -
INSTITUTIONAL CLASS ...................................... N/A $ 86.28 N/A N/A
---------------- ------------- ------------- -------------
INVESTMENTS AT COST ............................................ $ 232,297,136 $ 66,159,250 $ 4,375,145 $ 606,078,067
================ ============= ============= =============
FOREIGN CURRENCIES AT COST ..................................... $ 24 $ 70 $ 0 $ 9,022,867
================ ============= ============= =============
SECURITIES ON LOAN, AT MARKET VALUE ............................ $ 21,122,985 $ 3,987,722 $ 0 $ 0
================ ============= ============= =============
(1) EACH FUND HAS AN UNLIMITED NUMBER OF AUTHORIZED SHARES
(2) MAXIMUM OFFERING PRICE IS COMPUTED AS 100/94.25 OF NET ASSET VALUE. ON
INVESTMENTS OF $50,000 OR MORE, THE OFFERING PRICE IS REDUCED.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
37
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
STATEMENTS OF OPERATIONS -- FOR THE SIX MONTHS ENDED MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INSTITUTIONAL
EMERGING MARKETS EMERGING INTERNATIONAL INTERNATIONAL
FOCUS FUND MARKETS FUND CORE FUND EQUITY FUND
- -----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS(1) ................................................ $ 6,880,094 $ 1,377,208 $ 32,831 $ 5,669,059
INTEREST .................................................... 372 256 0 0
INCOME FROM AFFILIATED SECURITIES ........................... 114,717 62,981 4,063 363,210
SECURITIES LENDING INCOME, NET .............................. 60,697 12,250 148 68,979
---------------- ------------- ------------- -------------
TOTAL INVESTMENT INCOME ........................................ 7,055,880 1,452,695 37,042 6,101,248
---------------- ------------- ------------- -------------
EXPENSES
ADVISORY FEES ............................................... 1,395,693 449,428 19,507 3,260,962
ADMINISTRATION FEES
FUND LEVEL ............................................... 63,441 20,429 1,027 174,239
CLASS A .................................................. 232,846 N/A 1,898 76,437
CLASS B .................................................. 7,006 N/A 2,306 20,418
CLASS C .................................................. 3,598 N/A 500 2,099
ADMINISTRATOR CLASS ...................................... 39,935 N/A 8 313,138
INSTITUTIONAL CLASS ...................................... N/A 32,685 N/A N/A
CUSTODY FEES ................................................ 317,203 102,143 2,053 348,478
SHAREHOLDER SERVICING FEES .................................. 317,203 0 5,133 871,196
ACCOUNTING FEES ............................................. 30,317 19,219 19,112 58,757
DISTRIBUTION FEES (NOTE 3)
CLASS B .................................................. 18,767 N/A 7,519 54,690
CLASS C .................................................. 9,639 N/A 1,630 5,623
PROFESSIONAL FEES ........................................... 25,777 11,731 8,309 24,922
REGISTRATION FEES ........................................... 11,980 5,726 29,506 35,234
SHAREHOLDER REPORTS ......................................... 25,816 4,932 6,037 49,346
TRUSTEES' FEES .............................................. 4,099 4,119 5,274 4,138
OTHER FEES AND EXPENSES ..................................... 11,241 2,132 5,513 45,595
---------------- ------------- ------------- -------------
TOTAL EXPENSES ................................................. 2,514,561 652,544 115,332 5,345,272
---------------- ------------- ------------- -------------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) ................ (203,593) (141,831) (75,393) (840,477)
NET EXPENSES ................................................ 2,310,968 510,713 39,939 4,504,795
---------------- ------------- ------------- -------------
NET INVESTMENT INCOME (LOSS) ................................... 4,744,912 941,982 (2,897) 1,596,453
---------------- ------------- ------------- -------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- -----------------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY
TRANSLATION .............................................. 10,910,432 7,718,990 47,244 27,725,670
---------------- ------------- ------------- -------------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ...................... 10,910,432 7,718,990 47,244 27,725,670
---------------- ------------- ------------- -------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY
TRANSLATION .............................................. 41,832,616 9,328,849 392,657 60,723,353
---------------- ------------- ------------- -------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)
OF INVESTMENTS .............................................. 41,832,616 9,328,849 392,657 60,723,353
---------------- ------------- ------------- -------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ......... 52,743,048 17,047,839 439,901 88,449,023
---------------- ------------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS .................................................. $ 57,487,960 $ 17,989,821 $ 437,004 $ 90,045,476
================ ============= ============= =============
(1) NET OF FOREIGN WITHHOLDING TAXES OF ........................ $ 183,034 $ 120,176 $ 2,196 $ 364,618
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
38
THIS PAGE IS INTENTIONALLY LEFT BLANK --
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
EMERGING MARKETS FOCUS FUND
-------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005
- --------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS .................................................... $ 237,387,393 $ 195,485,641
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ............................................ 4,744,912 1,380,632
NET REALIZED GAIN (LOSS) ON INVESTMENTS ................................. 10,910,432 46,911,843
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ..... 41,832,616 14,800,487
---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ............ 57,487,960 63,092,962
---------------- ------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A .............................................................. (2,824,929) 0
CLASS B .............................................................. (59,823) 0
CLASS C .............................................................. (25,808) 0
ADMINISTRATOR CLASS .................................................. (1,558,845) 0
INSTITUTIONAL CLASS .................................................. N/A N/A
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A .............................................................. 0 0
CLASS B .............................................................. 0 0
CLASS C .............................................................. 0 0
ADMINISTRATOR CLASS .................................................. N/A N/A
---------------- ------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ........................................ (4,469,405) 0
---------------- ------------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A ..................................... 12,570,447 12,852,924
PROCEEDS FROM REDEMPTION FEES - CLASS A ................................. 2,469 18,737
REINVESTMENT OF DISTRIBUTIONS - CLASS A ................................. 2,462,837 0
COST OF SHARES REDEEMED - CLASS A ....................................... (20,091,929) (38,568,700)
---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A .................................................. (5,056,176) (25,697,039)
---------------- ------------------
PROCEEDS FROM SHARES SOLD - CLASS B ..................................... 1,406,829 1,175,544
PROCEEDS FROM REDEMPTION FEES - CLASS B ................................. 73 51
REINVESTMENT OF DISTRIBUTIONS - CLASS B ................................. 56,387 0
COST OF SHARES REDEEMED - CLASS B ....................................... (454,806) (675,137)
---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS B .................................................. 1,008,483 500,458
---------------- ------------------
PROCEEDS FROM SHARES SOLD - CLASS C ..................................... 478,572 688,515
PROCEEDS FROM REDEMPTION FEES - CLASS C ................................. 38 36
REINVESTMENT OF DISTRIBUTIONS - CLASS C ................................. 25,266 0
COST OF SHARES REDEEMED - CLASS C ....................................... (825,569) (1,210,808)
---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS C .................................................. (321,693) (522,257)
---------------- ------------------
PROCEEDS FROM SHARES SOLD - ADMINISTRATOR CLASS ......................... 26,684,186 40,241,206
PROCEEDS FROM REDEMPTION FEES - ADMINISTRATOR CLASS ..................... 1,176 946
REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS ..................... 1,273,288 0
COST OF SHARES REDEEMED - ADMINISTRATOR CLASS ........................... (22,770,097) (35,714,524)
---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - ADMINISTRATOR CLASS ...................................... 5,188,553 4,527,628
---------------- ------------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS ......................... N/A N/A
PROCEEDS FROM REDEMPTION FEES - INSTITUTIONAL CLASS ..................... N/A N/A
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS ..................... N/A N/A
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS ........................... N/A N/A
---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS ...................................... N/A N/A
---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS ............................................................ 819,167 (21,191,210)
================ ==================
NET INCREASE (DECREASE) IN NET ASSETS ...................................... 53,837,722 41,901,752
================ ==================
ENDING NET ASSETS .......................................................... $ 291,225,115 $ 237,387,393
================ ==================
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
40
STATEMENTS OF CHANGES IN NET ASSETS
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
- --------------------------------------------------------------------------------
INSTITUTIONAL
EMERGING MARKETS FUND
----------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005
- --------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS .................................................... $ 109,972,864 $ 101,260,179
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ............................................ 941,982 1,818,786
NET REALIZED GAIN (LOSS) ON INVESTMENTS ................................. 7,718,990 33,403,106
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ..... 9,328,849 (2,270,380)
---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ............ 17,989,821 32,951,512
---------------- ------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A .............................................................. N/A N/A
CLASS B .............................................................. N/A N/A
CLASS C .............................................................. N/A N/A
ADMINISTRATOR CLASS .................................................. N/A N/A
INSTITUTIONAL CLASS .................................................. (2,100,004) (857,339)
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A .............................................................. N/A N/A
CLASS B .............................................................. N/A N/A
CLASS C .............................................................. N/A N/A
ADMINISTRATOR CLASS .................................................. N/A
---------------- ------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ........................................ (2,100,004) (857,339)
---------------- ------------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A ..................................... N/A N/A
PROCEEDS FROM REDEMPTION FEES - CLASS A ................................. N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS A ................................. N/A N/A
COST OF SHARES REDEEMED - CLASS A ....................................... N/A N/A
---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A .................................................. N/A N/A
---------------- ------------------
PROCEEDS FROM SHARES SOLD - CLASS B ..................................... N/A N/A
PROCEEDS FROM REDEMPTION FEES - CLASS B ................................. N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS B ................................. N/A N/A
COST OF SHARES REDEEMED - CLASS B ....................................... N/A N/A
---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS B .................................................. N/A N/A
---------------- ------------------
PROCEEDS FROM SHARES SOLD - CLASS C ..................................... N/A N/A
PROCEEDS FROM REDEMPTION FEES - CLASS C ................................. N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS C ................................. N/A N/A
COST OF SHARES REDEEMED - CLASS C ....................................... N/A N/A
---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS C .................................................. N/A N/A
---------------- ------------------
PROCEEDS FROM SHARES SOLD - ADMINISTRATOR CLASS ......................... N/A N/A
PROCEEDS FROM REDEMPTION FEES - ADMINISTRATOR CLASS ..................... N/A N/A
REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS ..................... N/A N/A
COST OF SHARES REDEEMED - ADMINISTRATOR CLASS ........................... N/A N/A
---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - ADMINISTRATOR CLASS ...................................... N/A N/A
---------------- ------------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS ......................... 2,106,974 4,538,317
PROCEEDS FROM REDEMPTION FEES - INSTITUTIONAL CLASS ..................... 0 0
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS ..................... 2,027,587 761,777
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS ........................... (43,983,150) (28,681,582)
---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS ...................................... (39,848,589) (23,381,488)
---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS ............................................................ (39,848,589) (23,381,488)
================ ==================
NET INCREASE (DECREASE) IN NET ASSETS ...................................... (23,958,772) 8,712,685
================ ==================
ENDING NET ASSETS .......................................................... $ 86,014,092 $ 109,972,864
================ ==================
INTERNATIONAL CORE FUND
-------------------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE FOR THE
MARCH 31, 2006 PERIOD ENDED YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005 DECEMBER 31, 2004
- -----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS .................................................. $ 3,341,756 $ 2,291,804 $ 1,494,524
OPERATIONS:
NET INVESTMENT INCOME (LOSS) .......................................... (2,897) 30,977 40,964
NET REALIZED GAIN (LOSS) ON INVESTMENTS ............................... 47,244 404,048 80,873
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ... 392,657 (254,993) 215,485
---------------- ------------------ -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS .......... 437,004 180,032 337,322
---------------- ------------------ -----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ............................................................ (13,587) (198) (14,167)
CLASS B ............................................................ (21,508) (349) (22,728)
CLASS C ............................................................ (2,869) (53) (5,869)
ADMINISTRATOR CLASS ................................................ (134) 0 0
INSTITUTIONAL CLASS ................................................ N/A N/A N/A
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A ............................................................ (154,767) (1,508) (14,424)
CLASS B ............................................................ (200,824) (2,651) (23,470)
CLASS C ............................................................ (42,955) (403) (6,083)
ADMINISTRATOR CLASS ................................................ (1,628) N/A N/A
---------------- ------------------ -----------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ...................................... (438,272) (5,162) (86,741)
---------------- ------------------ -----------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A ................................... 937,827 805,348 162,808
PROCEEDS FROM REDEMPTION FEES - CLASS A ............................... 22 0 0
REINVESTMENT OF DISTRIBUTIONS - CLASS A ............................... 161,367 1,551 26,258
COST OF SHARES REDEEMED - CLASS A ..................................... (260,517) (333,429) (104,660)
---------------- ------------------ -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A ................................................ 838,699 473,470 84,406
---------------- ------------------ -----------------
PROCEEDS FROM SHARES SOLD - CLASS B ................................... 659,055 605,005 358,381
PROCEEDS FROM REDEMPTION FEES - CLASS B ............................... 26 0 0
REINVESTMENT OF DISTRIBUTIONS - CLASS B ............................... 214,083 2,303 35,883
COST OF SHARES REDEEMED - CLASS B ..................................... (125,647) (216,597) (32,276)
---------------- ------------------ -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS B ................................................ 747,517 390,711 361,988
---------------- ------------------ -----------------
PROCEEDS FROM SHARES SOLD - CLASS C ................................... 228,373 182,370 91,773
PROCEEDS FROM REDEMPTION FEES - CLASS C ............................... 5 0 0
REINVESTMENT OF DISTRIBUTIONS - CLASS C ............................... 39,250 327 10,119
COST OF SHARES REDEEMED - CLASS C ..................................... (56,070) (186,796) (1,587)
---------------- ------------------ -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS C ................................................ 211,558 (4,099) 100,305
---------------- ------------------ -----------------
PROCEEDS FROM SHARES SOLD - ADMINISTRATOR CLASS ....................... 32,352 15,100 0
PROCEEDS FROM REDEMPTION FEES - ADMINISTRATOR CLASS ................... 0 0 0
REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS ................... 1,191 0 0
COST OF SHARES REDEEMED - ADMINISTRATOR CLASS ......................... (15,348) (100) 0
---------------- ------------------ -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - ADMINISTRATOR CLASS .................................... 18,195 15,000 0
---------------- ------------------ -----------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS ....................... N/A N/A N/A
PROCEEDS FROM REDEMPTION FEES - INSTITUTIONAL CLASS ................... N/A N/A N/A
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS ................... N/A N/A N/A
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS ......................... N/A N/A N/A
---------------- ------------------ -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS .................................... N/A N/A N/A
---------------- ------------------ -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS .......................................................... 1,815,969 875,082 546,699
================ ================== =================
NET INCREASE (DECREASE) IN NET ASSETS .................................... 1,814,701 1,049,952 797,280
================ ================== =================
ENDING NET ASSETS ........................................................ $ 5,156,457 $ 3,341,756 $ 2,291,804
================ ================== =================
INTERNATIONAL EQUITY FUND
------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005
- ----------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS .................................................. $ 668,149,240 $ 467,171,367
OPERATIONS:
NET INVESTMENT INCOME (LOSS) .......................................... 1,596,453 7,850,579
NET REALIZED GAIN (LOSS) ON INVESTMENTS ............................... 27,725,670 26,453,779
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ... 60,723,353 78,600,244
---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS .......... 90,045,476 112,904,602
---------------- ------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ............................................................ (632,155) (16,268)
CLASS B ............................................................ (56,895) 0
CLASS C ............................................................ (6,392) 0
ADMINISTRATOR CLASS ................................................ (8,396,979) (1,410,205)
INSTITUTIONAL CLASS ................................................ N/A N/A
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A ............................................................ 0 0
CLASS B ............................................................ 0 0
CLASS C ............................................................ 0 0
ADMINISTRATOR CLASS ................................................ N/A N/A
---------------- ------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ...................................... (9,092,421) (1,426,473)
---------------- ------------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A ................................... 4,673,784 17,582,381
PROCEEDS FROM REDEMPTION FEES - CLASS A ............................... (158) 0
REINVESTMENT OF DISTRIBUTIONS - CLASS A ............................... 542,821 14,027
COST OF SHARES REDEEMED - CLASS A ..................................... (14,561,593) (28,161,668)
---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A ................................................ (9,345,146) (10,565,260)
---------------- ------------------
PROCEEDS FROM SHARES SOLD - CLASS B ................................... 718,656 1,758,136
PROCEEDS FROM REDEMPTION FEES - CLASS B ............................... (35) 0
REINVESTMENT OF DISTRIBUTIONS - CLASS B ............................... 53,648 0
COST OF SHARES REDEEMED - CLASS B ..................................... (1,496,371) (4,958,052)
---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS B ................................................ (724,102) (3,199,916)
---------------- ------------------
PROCEEDS FROM SHARES SOLD - CLASS C ................................... 222,860 171,214
PROCEEDS FROM REDEMPTION FEES - CLASS C ............................... (3) 0
REINVESTMENT OF DISTRIBUTIONS - CLASS C ............................... 5,895 0
COST OF SHARES REDEEMED - CLASS C ..................................... (353,016) (606,856)
---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS C ................................................ (124,264) (435,642)
---------------- ------------------
PROCEEDS FROM SHARES SOLD - ADMINISTRATOR CLASS ....................... 67,612,813 171,009,581
PROCEEDS FROM REDEMPTION FEES - ADMINISTRATOR CLASS ................... (1,405) 0
REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS ................... 6,361,186 991,065
COST OF SHARES REDEEMED - ADMINISTRATOR CLASS ......................... (37,950,724) (68,300,084)
---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - ADMINISTRATOR CLASS .................................... 36,021,870 103,700,562
---------------- ------------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS ....................... N/A N/A
PROCEEDS FROM REDEMPTION FEES - INSTITUTIONAL CLASS ................... N/A N/A
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS ................... N/A N/A
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS ......................... N/A N/A
---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS .................................... N/A N/A
---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS .......................................................... 25,828,358 89,499,744
================ ==================
NET INCREASE (DECREASE) IN NET ASSETS .................................... 106,781,413 200,977,873
================ ==================
ENDING NET ASSETS ........................................................ $ 774,930,653 $ 668,149,240
================ ==================
41
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
EMERGING MARKETS FOCUS FUND
-------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005
- --------------------------------------------------------------------------------------------------------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A ....................................... 417,490 550,954
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS A .... 86,023 0
SHARES REDEEMED - CLASS A ................................... (672,857) (1,640,282)
---------------- ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A ........ (169,344) (1,089,328)
---------------- ------------------
SHARES SOLD - CLASS B ....................................... 46,829 50,103
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS B .... 2,005 0
SHARES REDEEMED - CLASS B ................................... (14,841) (29,780)
---------------- ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B ........ 33,993 20,323
---------------- ------------------
SHARES SOLD - CLASS C ....................................... 16,346 29,494
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS C .... 901 0
SHARES REDEEMED - CLASS C ................................... (28,906) (52,548)
---------------- ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C ........ (11,659) (23,054)
---------------- ------------------
SHARES SOLD - ADMINISTRATOR CLASS ........................... 871,091 1,724,824
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS -
ADMINISTRATOR CLASS ....................................... 44,598 0
SHARES REDEEMED - ADMINISTRATOR CLASS ....................... (753,648) (1,514,615)
---------------- ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
ADMINISTRATOR CLASS ......................................... 162,041 210,209
---------------- ------------------
SHARES SOLD - INSTITUTIONAL CLASS ........................... N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS -
INSTITUTIONAL CLASS ....................................... N/A N/A
SHARES REDEEMED - INSTITUTIONAL CLASS ....................... N/A N/A
---------------- ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
INSTITUTIONAL CLASS ......................................... N/A N/A
---------------- ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING
FROM CAPITAL SHARE TRANSACTIONS ............................. 15,031 (881,850)
================ ==================
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT
INCOME(LOSS) ................................................ $ 275,507 $ 0
================ ==================
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
42
INSTITUTIONAL
EMERGING MARKETS FUND INTERNATIONAL CORE FUND
------------------------------------ -------------------------------------------------------
FOR THE FOR THE
SIX MONTHS ENDED FOR THE SIX MONTHS ENDED FOR THE FOR THE
MARCH 31, 2006 YEAR ENDED MARCH 31, 2006 PERIOD ENDED YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005 (UNAUDITED) SEPTEMBER 30, 2005 DECEMBER 31, 2004
- -----------------------------------------------------------------------------------------------------------------------------------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A ........... N/A N/A 70,339 60,738 13,169
SHARES ISSUED IN REINVESTMENT
OF DISTRIBUTIONS - CLASS A .... N/A N/A 12,642 117 2,027
SHARES REDEEMED - CLASS A ....... N/A N/A (19,511) (25,436) (8,684)
---------------- ------------------ ---------------- ------------------ -----------------
NET INCREASE (DECREASE) IN
SHARES OUTSTANDING - CLASS A .... N/A N/A 63,470 35,419 6,512
---------------- ------------------ ---------------- ------------------ -----------------
SHARES SOLD - CLASS B ........... N/A N/A 49,653 46,146 29,318
SHARES ISSUED IN REINVESTMENT ...
OF DISTRIBUTIONS - CLASS B .... N/A N/A 16,908 175 2,774
SHARES REDEEMED - CLASS B ....... N/A N/A (9,599) (16,657) (2,840)
---------------- ------------------ ---------------- ------------------ -----------------
NET INCREASE (DECREASE) IN
SHARES OUTSTANDING - CLASS B .... N/A N/A 56,962 29,664 29,252
---------------- ------------------ ---------------- ------------------ -----------------
SHARES SOLD - CLASS C ........... N/A N/A 17,143 13,701 7,509
SHARES ISSUED IN REINVESTMENT
OF DISTRIBUTIONS - CLASS C .... N/A N/A 3,103 25 783
SHARES REDEEMED - CLASS C ....... N/A N/A (4,290) (14,485) (134)
---------------- ------------------ ---------------- ------------------ -----------------
NET INCREASE (DECREASE) IN
SHARES OUTSTANDING - CLASS C .... N/A N/A 15,956 (759) 8,158
---------------- ------------------ ---------------- ------------------ -----------------
SHARES SOLD - ADMINISTRATOR
CLASS ......................... N/A N/A 2,390 1,129 N/A
SHARES ISSUED IN REINVESTMENT
OF DISTRIBUTIONS -
ADMINISTRATOR CLASS ........... N/A N/A 93 0 N/A
SHARES REDEEMED -
ADMINISTRATOR CLASS ........... N/A N/A (1,133) (8) N/A
---------------- ------------------ ---------------- ------------------ -----------------
NET INCREASE (DECREASE) IN
SHARES OUTSTANDING -
ADMINISTRATOR CLASS ............. N/A N/A 1,350 1,121 N/A
---------------- ------------------ ---------------- ------------------ -----------------
SHARES SOLD - INSTITUTIONAL
CLASS ......................... 25,284 75,127 N/A N/A N/A
SHARES ISSUED IN REINVESTMENT
OF DISTRIBUTIONS -
INSTITUTIONAL CLASS ........... 27,817 12,890 N/A N/A N/A
SHARES REDEEMED -
INSTITUTIONAL CLASS ........... (601,442) (459,642) N/A N/A N/A
---------------- ------------------ ---------------- ------------------ -----------------
NET INCREASE (DECREASE) IN
SHARES OUTSTANDING -
INSTITUTIONAL CLASS ............. (548,341) (371,625) N/A N/A N/A
---------------- ------------------ ---------------- ------------------ -----------------
NET INCREASE (DECREASE) IN
SHARES OUTSTANDING RESULTING
FROM CAPITAL SHARE
TRANSACTIONS .................... (548,341) (371,625) 137,738 65,445 43,922
================ ================== ================ ================== =================
ENDING BALANCE OF UNDISTRIBUTED
NET INVESTMENT INCOME(LOSS) ..... $ (14,690) $ 1,143,331 $ (13,294) $ 27,701 $ 600
================ ================== ================ ================== =================
INTERNATIONAL EQUITY FUND
-------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005
- ---------------------------------------------------------------------------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A ........... 333,581 1,436,293
SHARES ISSUED IN REINVESTMENT
OF DISTRIBUTIONS - CLASS A .... 38,856 1,136
SHARES REDEEMED - CLASS A ....... (1,037,746) (2,299,152)
---------------- ------------------
NET INCREASE (DECREASE) IN
SHARES OUTSTANDING - CLASS A .... (665,309) (861,723)
---------------- ------------------
SHARES SOLD - CLASS B ........... 51,746 147,005
SHARES ISSUED IN REINVESTMENT
OF DISTRIBUTIONS - CLASS B .... 4,016 0
SHARES REDEEMED - CLASS B ....... (111,105) (414,853)
---------------- ------------------
NET INCREASE (DECREASE) IN
SHARES OUTSTANDING - CLASS B .... (55,343) (267,848)
---------------- ------------------
SHARES SOLD - CLASS C ........... 16,998 14,155
SHARES ISSUED IN REINVESTMENT
OF DISTRIBUTIONS - CLASS C .... 442 0
SHARES REDEEMED - CLASS C ....... (26,419) (50,511)
---------------- ------------------
NET INCREASE (DECREASE) IN
SHARES OUTSTANDING - CLASS C .... (8,979) (36,356)
---------------- ------------------
SHARES SOLD - ADMINISTRATOR
CLASS ......................... 4,765,275 13,266,811
SHARES ISSUED IN REINVESTMENT
OF DISTRIBUTIONS -
ADMINISTRATOR CLASS ........... 456,654 80,509
SHARES REDEEMED -
ADMINISTRATOR CLASS ........... (2,689,338) (5,514,486)
---------------- ------------------
NET INCREASE (DECREASE) IN
SHARES OUTSTANDING -
ADMINISTRATOR CLASS ............. 2,532,591 7,832,834
---------------- ------------------
SHARES SOLD - INSTITUTIONAL
CLASS ......................... N/A N/A
SHARES ISSUED IN REINVESTMENT
OF DISTRIBUTIONS -
INSTITUTIONAL CLASS ........... N/A N/A
SHARES REDEEMED -
INSTITUTIONAL CLASS ........... N/A N/A
---------------- ------------------
NET INCREASE (DECREASE) IN
SHARES OUTSTANDING -
INSTITUTIONAL CLASS ............. N/A N/A
---------------- ------------------
NET INCREASE (DECREASE) IN
SHARES OUTSTANDING RESULTING
FROM CAPITAL SHARE
TRANSACTIONS .................... 1,802,960 6,666,907
================ ==================
ENDING BALANCE OF UNDISTRIBUTED
NET INVESTMENT INCOME(LOSS) ..... $ (1,243,797) $ 6,252,171
================ ==================
43
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
NET REALIZED
BEGINNING NET AND DISTRIBUTIONS DISTRIBUTIONS
NET ASSET INVESTMENT UNREALIZED FROM NET FROM NET
VALUE PER INCOME GAIN (LOSS) ON INVESTMENT REALIZED
SHARE (LOSS) INVESTMENTS INCOME GAINS
- ------------------------------------------------------------------------------------------------------------------------------------
EMERGING MARKETS FOCUS FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ........... $ 27.59 0.55(4) 6.18 (0.51) 0.00
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ................... $ 20.62 0.13(4) 6.84 0.00 0.00
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ................... $ 17.76 0.00(4) 2.86 0.00 0.00
JULY 1, 2003 TO SEPTEMBER 30, 2003(5) ................... $ 15.27 0.02(4) 2.47 0.00 0.00
JULY 1, 2002 TO JUNE 30, 2003 ........................... $ 14.50 0.00 0.77 0.00 0.00
OCTOBER 31, 2001(3) TO JUNE 30, 2002 .................... $ 11.37 0.29 2.94 (0.10) 0.00
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ........... $ 27.02 0.41(4) 6.07 (0.35) 0.00
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ................... $ 20.34 (0.03)(4) 6.71 0.00 0.00
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ................... $ 17.62 (0.13)(4) 2.85 0.00 0.00
JULY 1, 2003 TO SEPTEMBER 30, 2003(5) ................... $ 15.18 (0.02)(4) 2.46 0.00 0.00
JULY 1, 2002 TO JUNE 30, 2003 ........................... $ 14.52 0.10 0.56 0.00 0.00
OCTOBER 31, 2001(3) TO JUNE 30, 2002 .................... $ 11.37 0.08 3.17 (0.10) 0.00
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ........... $ 26.87 0.42(4) 6.02 (0.29) 0.00
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ................... $ 20.24 (0.05)(4) 6.68 0.00 0.00
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ................... $ 17.56 (0.14)(4) 2.82 0.00 0.00
JULY 1, 2003 TO SEPTEMBER 30, 2003(5) ................... $ 15.12 (0.02)(4) 2.46 0.00 0.00
JULY 1, 2002 TO JUNE 30, 2003 ........................... $ 14.48 0.02 0.62 0.00 0.00
OCTOBER 31, 2001(3) TO JUNE 30, 2002 .................... $ 11.37 0.05 3.16 (0.10) 0.00
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ........... $ 27.58 0.58(4) 6.17 (0.59) 0.00
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ................... $ 20.55 0.22(4) 6.81 0.00 0.00
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ................... $ 17.64 0.06(4) 2.85 0.00 0.00
JULY 1, 2003 TO SEPTEMBER 30, 2003(5) ................... $ 15.16 0.03(4) 2.45 0.00 0.00
JULY 1, 2002 TO JUNE 30, 2003 ........................... $ 14.41 0.30 0.54 (0.09) 0.00
JULY 1, 2001 TO JUNE 30, 2002 ........................... $ 14.00 0.07 0.44 (0.10) 0.00
JULY 1, 2000 TO JUNE 30, 2001 ........................... $ 16.57 0.20 (2.73) (0.04) 0.00
INSTITUTIONAL EMERGING MARKETS FUND
- ------------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ........... $ 71.17 1.23 15.86 (1.98) 0.00
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ................... $ 52.83 1.17 17.62 (0.45) 0.00
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ................... $ 42.29 0.71 10.45 (0.62) 0.00
JULY 1, 2003 TO SEPTEMBER 30, 2003(5) ................... $ 36.91 0.07 5.31 0.00 0.00
JULY 1, 2002 TO JUNE 30, 2003 ........................... $ 34.41 0.54 2.08 (0.12) 0.00
JULY 1, 2001 TO JUNE 30, 2002 ........................... $ 35.30 0.28 (0.82) (0.35) 0.00
JULY 1, 2000 TO JUNE 30, 2001 ........................... $ 47.07 0.67 (12.44) 0.00 0.00
INTERNATIONAL CORE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ........... $ 13.98 0.02(4) 1.32 (0.12) (1.45)
JANUARY 1, 2005 TO SEPTEMBER 30, 2005 ................... $ 13.16 0.11 0.74 0.00 (0.03)
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................... $ 11.47 0.28(4) 1.93 (0.25) (0.27)
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................... $ 8.84 0.18(4) 2.59 (0.14) 0.00
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................... $ 10.41 (0.06)(4) (1.51) 0.00 0.00
SEPTEMBER 28, 2001(3) TO DECEMBER 31, 2001 .............. $ 10.00 (0.03) 0.44 0.00 0.00
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ........... $ 13.90 (0.03)(4) 1.30 (0.14) (1.45)
JANUARY 1, 2005 TO SEPTEMBER 30, 2005 ................... $ 13.13 0.14 0.66 0.00 (0.03)
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................... $ 11.45 0.28(4) 1.92 (0.25) (0.27)
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................... $ 8.82 0.20(4) 2.58 (0.15) 0.00
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................... $ 10.40 (0.08)(4) (1.50) 0.00 0.00
SEPTEMBER 28, 2001(3) TO DECEMBER 31, 2001 .............. $ 10.00 (0.04) 0.44 0.00 0.00
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ........... $ 13.88 (0.03)(4) 1.31 (0.09) (1.45)
JANUARY 1, 2005 TO SEPTEMBER 30, 2005 ................... $ 13.12 0.11 0.68 0.00 (0.03)
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................... $ 11.43 0.28(4) 1.93 (0.25) (0.27)
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................... $ 8.82 0.21(4) 2.57 (0.17) 0.00
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................... $ 10.40 (0.06)(4) (1.52) 0.00 0.00
SEPTEMBER 28, 2001(3) TO DECEMBER 31, 2001 .............. $ 10.00 (0.04) 0.44 0.00 0.00
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ........... $ 13.99 0.03(4) 1.31 (0.11) (1.45)
APRIL 11, 2005 TO SEPTEMBER 30, 2005(3) ................. $ 13.23 0.08 0.68 0.00 0.00
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
44
FINANCIAL HIGHLIGHTS WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
- --------------------------------------------------------------------------------
ENDING RATIO TO AVERAGE NET ASSETS (ANNUALIZED)(1)
NET ASSET ----------------------------------------------------
VALUE PER NET INVESTMENT GROSS EXPENSES NET
SHARE INCOME (LOSS) EXPENSES WAIVED EXPENSES
- ----------------------------------------------------------------------------------------------------------------------------
EMERGING MARKETS FOCUS FUND
- ----------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ........... $ 33.81 3.69% 2.02% (0.12)% 1.90%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ................... $ 27.59 0.54% 2.03% (0.13)% 1.90%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ................... $ 20.62 0.00% 2.01% (0.11)% 1.90%
JULY 1, 2003 TO SEPTEMBER 30, 2003(5) ................... $ 17.76 0.42% 2.03% (0.15)% 1.88%
JULY 1, 2002 TO JUNE 30, 2003 ........................... $ 15.27 (1.65)% 2.18% 0.00% 2.18%
OCTOBER 31, 2001(3) TO JUNE 30, 2002 .................... $ 14.50 0.43% 5.27% (3.07)% 2.20%
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ........... $ 33.15 2.80% 2.79% (0.14)% 2.65%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ................... $ 27.02 (0.12)% 2.77% (0.12)% 2.65%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ................... $ 20.34 (0.64)% 2.77% (0.12)% 2.65%
JULY 1, 2003 TO SEPTEMBER 30, 2003(5) ................... $ 17.62 (0.45)% 2.79% (0.15)% 2.64%
JULY 1, 2002 TO JUNE 30, 2003 ........................... $ 15.18 1.59% 2.78% (0.45)% 2.33%
OCTOBER 31, 2001(3) TO JUNE 30, 2002 .................... $ 14.52 0.10% 5.38% (3.07)% 2.31%
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ........... $ 33.02 2.95% 2.77% (0.12)% 2.65%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ................... $ 26.87 (0.20)% 2.77% (0.12)% 2.65%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ................... $ 20.24 (0.71)% 2.77% (0.12)% 2.65%
JULY 1, 2003 TO SEPTEMBER 30, 2003(5) ................... $ 17.56 (0.39)% 2.79% (0.15)% 2.64%
JULY 1, 2002 TO JUNE 30, 2003 ........................... $ 15.12 (3.00)% 3.53% (0.14)% 3.39%
OCTOBER 31, 2001(3) TO JUNE 30, 2002 .................... $ 14.48 0.10% 6.51% (3.07)% 3.44%
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ........... $ 33.74 3.95% 1.84% (0.24)% 1.60%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ................... $ 27.58 0.92% 1.76% (0.16)% 1.60%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ................... $ 20.55 0.30% 1.69% (0.09)% 1.60%
JULY 1, 2003 TO SEPTEMBER 30, 2003(5) ................... $ 17.64 0.73% 1.70% (0.15)% 1.55%
JULY 1, 2002 TO JUNE 30, 2003 ........................... $ 15.16 2.43% 2.16% (0.64)% 1.52%
JULY 1, 2001 TO JUNE 30, 2002 ........................... $ 14.41 0.60% 4.66% (3.07)% 1.59%
JULY 1, 2000 TO JUNE 30, 2001 ........................... $ 14.00 1.68% 4.37% (2.65)% 1.72%
INSTITUTIONAL EMERGING MARKETS FUND
- ----------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ........... $ 86.28 2.30% 1.59% (0.34)% 1.25%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ................... $ 71.17 1.67% 1.60% (0.35)% 1.25%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ................... $ 52.83 1.45% 1.63% (0.38)% 1.25%
JULY 1, 2003 TO SEPTEMBER 30, 2003(5) ................... $ 42.29 0.66% 1.63% (0.38)% 1.25%
JULY 1, 2002 TO JUNE 30, 2003 ........................... $ 36.91 1.69% 1.63% (0.38)% 1.25%
JULY 1, 2001 TO JUNE 30, 2002 ........................... $ 34.41 0.85% 4.80% (3.50)% 1.30%
JULY 1, 2000 TO JUNE 30, 2001 ........................... $ 35.30 1.17% 3.18% (1.87)% 1.31%
INTERNATIONAL CORE FUND
- ----------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) $ 13.75 0.34% 5.27% (3.77)% 1.50%
JANUARY 1, 2005 TO SEPTEMBER 30, 2005 ................... $ 13.98 1.82% 5.94% (4.96)% 0.98%
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................... $ 13.16 2.33% 4.78% (4.77)% 0.01%
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................... $ 11.47 1.78% 7.65% (7.64)% 0.01%
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................... $ 8.84 (0.58)% 52.39% (50.18)% 2.21%
SEPTEMBER 28, 2001(3) TO DECEMBER 31, 2001 .............. $ 10.41 (1.12)% 2.23% 0.00% 2.23%
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ........... $ 13.58 (0.48)% 5.89% (3.64)% 2.25%
JANUARY 1, 2005 TO SEPTEMBER 30, 2005 ................... $ 13.90 1.58% 6.88% (5.44)% 1.44%
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................... $ 13.13 2.32% 5.52% (5.52)% 0.00%(6)
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................... $ 11.45 2.01% 8.58% (8.58)% 0.00%
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................... $ 8.82 (0.83)% 52.04% (49.66)% 2.38%
SEPTEMBER 28, 2001(3) TO DECEMBER 31, 2001 .............. $ 10.40 (1.60)% 2.98% (0.28)% 2.70%
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ........... $ 13.62 (0.46)% 5.93% (3.68)% 2.25%
JANUARY 1, 2005 TO SEPTEMBER 30, 2005 ................... $ 13.88 1.51% 6.73% (5.34)% 1.40%
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................... $ 13.12 2.31% 5.51% (5.51)% 0.00%(6)
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................... $ 11.43 2.15% 8.36% (8.35)% 0.01%
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................... $ 8.82 (0.68)% 52.54% (50.13)% 2.41%
SEPTEMBER 28, 2001(3) TO DECEMBER 31, 2001 .............. $ 10.40 (1.60)% 2.98% (0.28)% 2.70%
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ........... $ 13.77 0.45% 5.04% (3.79)% 1.25%
APRIL 11, 2005 TO SEPTEMBER 30, 2005(3) ................. $ 13.99 1.53% 5.60% (4.18)% 1.41%
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE (000'S OMITTED)
- -------------------------------------------------------------------------------------------------------
EMERGING MARKETS FOCUS FUND
- -------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ........... 24.72% 50% $ 186,759
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ................... 33.80% 184% $ 157,107
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ................... 16.04% 225% $ 139,880
JULY 1, 2003 TO SEPTEMBER 30, 2003(5) ................... 16.37% 49% $ 117,842
JULY 1, 2002 TO JUNE 30, 2003 ........................... 5.33% 210% $ 105,512
OCTOBER 31, 2001(3) TO JUNE 30, 2002 .................... 28.57% 206% $ 23
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ........... 24.24% 50% $ 6,331
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ................... 32.84% 184% $ 4,242
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ................... 15.37% 225% $ 2,781
JULY 1, 2003 TO SEPTEMBER 30, 2003(5) ................... 16.06% 49% $ 290
JULY 1, 2002 TO JUNE 30, 2003 ........................... 4.64% 210% $ 28
OCTOBER 31, 2001(3) TO JUNE 30, 2002 .................... 28.65% 206% $ 11
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ........... 24.16% 50% $ 2,850
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ................... 32.76% 184% $ 2,632
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ................... 15.26% 225% $ 2,449
JULY 1, 2003 TO SEPTEMBER 30, 2003(5) ................... 16.14% 49% $ 519
JULY 1, 2002 TO JUNE 30, 2003 ........................... 4.37% 210% $ 59
OCTOBER 31, 2001(3) TO JUNE 30, 2002 .................... 28.39% 206% $ 13
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ........... 24.85% 50% $ 95,285
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ................... 34.21% 184% $ 73,406
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ................... 16.43% 225% $ 50,376
JULY 1, 2003 TO SEPTEMBER 30, 2003(5) ................... 16.42% 49% $ 29,273
JULY 1, 2002 TO JUNE 30, 2003 ........................... 5.79% 210% $ 25,784
JULY 1, 2001 TO JUNE 30, 2002 ........................... 3.80% 206% $ 22,974
JULY 1, 2000 TO JUNE 30, 2001 ........................... (15.26)% 182% $ 10,156
INSTITUTIONAL EMERGING MARKETS FUND
- -------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ........... 24.52% 35% $ 86,014
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ................... 35.76% 109% $ 109,973
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ................... 26.09% 104% $ 101,260
JULY 1, 2003 TO SEPTEMBER 30, 2003(5) ................... 14.96% 19% $ 82,432
JULY 1, 2002 TO JUNE 30, 2003 ........................... 7.71% 80% $ 73,127
JULY 1, 2001 TO JUNE 30, 2002 ........................... (1.56)% 99% $ 66,511
JULY 1, 2000 TO JUNE 30, 2001 ........................... (24.97)% 171% $ 66,761
INTERNATIONAL CORE FUND
- -------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ........... 10.54% 23% $ 2,150
JANUARY 1, 2005 TO SEPTEMBER 30, 2005 ................... 6.48% 37% $ 1,299
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................... 19.38% 28% $ 757
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................... 31.38% 88% $ 585
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................... (15.08)% 47% $ 161
SEPTEMBER 28, 2001(3) TO DECEMBER 31, 2001 .............. 4.10% 4% $ 104
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ........... 10.09% 23% $ 2,436
JANUARY 1, 2005 TO SEPTEMBER 30, 2005 ................... 6.11% 37% $ 1,702
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................... 19.32% 28% $ 1,218
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................... 31.58% 88% $ 727
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................... (15.19)% 47% $ 289
SEPTEMBER 28, 2001(3) TO DECEMBER 31, 2001 .............. 4.00% 4% $ 104
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ........... 10.08% 23% $ 536
JANUARY 1, 2005 TO SEPTEMBER 30, 2005 ................... 6.04% 37% $ 325
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................... 19.44% 28% $ 317
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................... 31.52% 88% $ 183
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................... (15.19)% 47% $ 150
SEPTEMBER 28, 2001(3) TO DECEMBER 31, 2001 .............. 4.00% 4% $ 104
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ........... 10.57% 23% $ 34
APRIL 11, 2005 TO SEPTEMBER 30, 2005(3) ................. 5.74% 106% $ 16
45
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
NET REALIZED
BEGINNING NET AND DISTRIBUTIONS DISTRIBUTIONS
NET ASSET INVESTMENT UNREALIZED FROM NET FROM NET
VALUE PER INCOME GAIN (LOSS) ON INVESTMENT REALIZED
SHARE (LOSS) INVESTMENTS INCOME GAINS
- ------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
- ------------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006
(UNAUDITED) .............................. $ 13.69 0.01(4) 1.78 (0.15) 0.00
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ....... $ 11.09 0.17 2.43 (0.00) 0.00
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ....... $ 9.88 0.04(4) 1.23 (0.06) 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ....... $ 8.46 0.04(4) 1.38 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ....... $ 10.50 (0.01)(4) (2.03) 0.00 0.00
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ....... $ 15.24 0.01 (4.44) 0.00 (0.31)
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006
(UNAUDITED) .............................. $ 13.03 (0.04)(4) 1.69 (0.05) 0.00
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ....... $ 10.62 0.07 2.34 (0.00) 0.00
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ....... $ 9.48 (0.05)(4) 1.19 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ....... $ 8.19 (0.03)(4) 1.32 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ....... $ 10.25 (0.09)(4) (1.97) 0.00 0.00
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ....... $ 14.99 (0.11) (4.32) 0.00 (0.31)
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006
(UNAUDITED) .............................. $ 13.00 (0.04)(4) 1.71 0.06 0.00
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ....... $ 10.60 0.06 2.34 0.00 0.00
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ....... $ 9.47 (0.04)(4) 1.17 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ....... $ 8.18 (0.02)(4) 1.31 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ....... $ 10.24 (0.09)(4) (1.97) 0.00 0.00
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ....... $ 14.98 (0.07) (4.36) 0.00 (0.31)
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006
(UNAUDITED) .............................. $ 13.69 0.04(4) 1.76 (0.19) 0.00
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ....... $ 11.08 0.17 2.48 (0.04) 0.00
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ....... $ 9.87 0.07(4) 1.22 (0.08) 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ....... $ 8.46 0.08(4) 1.34 (0.01) 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ....... $ 10.47 0.02(4) (2.03) 0.00 0.00
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ....... $ 15.17 0.01 (4.40) 0.00 (0.31)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
46
FINANCIAL HIGHLIGHTS WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
- --------------------------------------------------------------------------------
ENDING RATIO TO AVERAGE NET ASSETS (ANNUALIZED)(1)
NET ASSET -------------------------------------------------
VALUE PER NET INVESTMENT GROSS EXPENSES NET
SHARE INCOME (LOSS) EXPENSES WAIVED EXPENSES
- ----------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
- ----------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... $ 15.33 0.17% 1.67% (0.17)% 1.50%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ $ 13.69 1.24% 1.66% (0.16)% 1.50%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ $ 11.09 0.36% 1.71% (0.21)% 1.50%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ $ 9.88 0.42% 1.76% (0.26)% 1.50%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ $ 8.46 (0.08)% 1.96% (0.24)% 1.72%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ $ 10.50 0.05% 1.81% (0.06)% 1.75%
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... $ 14.63 (0.53)% 2.43% (0.18)% 2.25%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ $ 13.03 0.49% 2.41% (0.16)% 2.25%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ $ 10.62 (0.43)% 2.46% (0.21)% 2.25%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ $ 9.48 (0.31)% 2.82% (0.57)% 2.25%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ $ 8.19 (0.83)% 3.06% (0.59)% 2.47%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ $ 10.25 (0.72)% 2.70% (0.20)% 2.50%
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... $ 14.61 (0.53)% 2.43% (0.18)% 2.25%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ $ 13.00 0.42% 2.41% (0.16)% 2.25%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ $ 10.60 (0.39)% 2.45% (0.20)% 2.25%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ $ 9.47 (0.27)% 2.70% (0.45)% 2.25%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ $ 8.18 (0.78)% 2.96% (0.49)% 2.47%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ $ 10.24 (0.69)% 2.50% 0.00% 2.50%
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... $ 15.30 0.51% 1.50% (0.25)% 1.25%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ $ 13.69 1.54% 1.41% (0.16)% 1.25%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ $ 11.08 0.64% 1.38% (0.13)% 1.25%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ $ 9.87 0.76% 1.34% (0.09)% 1.25%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ $ 8.46 0.31% 1.46% (0.02)% 1.44%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ $ 10.47 0.31% 1.53% (0.03)% 1.50%
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE (000'S OMITTED)
- ---------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
- ---------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 13.22% 23% $ 54,184
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 23.48% 46% $ 57,496
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 12.89% 112% $ 56,108
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 16.78% 73% $ 52,762
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ (19.43)% 52% $ 22,806
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ (29.59)% 36% $ 30,727
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 12.72% 23% $ 15,653
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 22.69% 46% $ 14,653
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 12.03% 112% $ 14,796
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 15.75% 73% $ 20,149
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ (20.10)% 52% $ 29,107
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ (30.12)% 36% $ 41,122
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 12.86% 23% $ 1,567
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 22.64% 46% $ 1,512
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 11.93% 112% $ 1,618
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 15.77% 73% $ 2,530
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ (20.12)% 52% $ 2,167
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ (30.14)% 36% $ 2,704
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 13.30% 23% $ 703,527
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 23.94% 46% $ 594,488
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 13.11% 112% $ 394,649
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 16.83% 73% $ 266,099
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ (19.20)% 52% $ 372,380
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ (29.47)% 36% $ 108,796
47
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS NOTES TO FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL HIGHLIGHTS
(1) During each period, various fees and expenses were waived and reimbursed as
indicated. The ratio of Gross Expenses to Average Net Assets reflects the
expense ratio in the absence of any waivers and reimbursements (Note 3).
(2) Total return calculations do not include any sales charges, and would have
been lower had certain expenses not been waived or reimbursed during the
periods shown. Returns for periods less than one year are not annualized.
(3) Commencement of operations.
(4) Calculated based upon average shares outstanding.
(5) The Fund changed its year end from June 30 to September 30.
(6) Amount calculated is less than 0.05%.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
48
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
- --------------------------------------------------------------------------------
1. ORGANIZATION
- --------------------------------------------------------------------------------
Wells Fargo Funds Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end management
investment company. The Trust commenced operations on November 8, 1999, and at
March 31, 2006, was comprised of 108 separate series (each, a "Fund",
collectively, the "Funds"). These financial statements present the Emerging
Markets Focus Fund, Institutional Emerging Markets Fund, International Core Fund
and International Equity Fund.
Each Fund is a diversified series of the Trust.
In August and September 2004, the Board of Trustees of the Trust and the
Boards of Directors of the Strong Funds ("Strong Funds") approved an Agreement
and Plan of Reorganization providing for the reorganization of certain Strong
Funds into the Funds.
Effective at the close of business on April 8, 2005, the following
Acquiring Funds ("Acquiring Funds"), by share class, acquired substantially all
of the net assets of the following Target Funds ("Target Funds"), by share
class, through a tax-free exchange under section 368 of the Internal Revenue
Code.
Acquiring Fund Target Fund
- -------------------------------------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE INTERNATIONAL CORE FUND CLASS A STRONG ADVISOR INTERNATIONAL CORE FUND CLASS A
- -------------------------------------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE INTERNATIONAL CORE FUND CLASS B STRONG ADVISOR INTERNATIONAL CORE FUND CLASS B
- -------------------------------------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE INTERNATIONAL CORE FUND CLASS C STRONG ADVISOR INTERNATIONAL CORE FUND CLASS C
- -------------------------------------------------------------------------------------------------------------
The separate classes of shares offered by each Fund differ principally in
applicable sales charges and distribution, shareholder servicing and
administration fees. Shareholders of each class bear certain expenses that
pertain to that particular class. All shareholders bear the common expenses of a
Fund, earn income from the portfolio, and are allocated unrealized gains and
losses pro rata based on the average daily net assets of each class, without
distinction between share classes. Dividends are determined separately for each
class based on income and expenses allocable to each class. Realized gains and
losses are allocated to each class pro rata based upon the net assets of each
class on the date realized. Differences in per share dividend rates generally
result from the relative weightings of pro rata income and realized gain
allocations and from differences in separate class expenses, including
distribution, shareholder servicing, and administration fees.
2. SIGNIFICANT ACCOUNTING POLICIES
- --------------------------------------------------------------------------------
The following significant accounting policies, which are consistently
followed in the preparation of the financial statements of the Trust, are in
conformity with accounting principles generally accepted in the United States of
America ("GAAP") for investment companies.
The preparation of financial statements in conformity with GAAP requires
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.
Certain Funds of the Trust may invest a substantial portion of their
assets in an industry, sector or foreign country as is discussed in the
Performance Highlights for those Funds. Such Funds may be more affected by
changes in that industry, sector or foreign country than they would be absent
the concentration of investments.
In the normal course of business, the Trust may enter into contracts that
provide certain indemnifications. The Trust's maximum exposure under these
arrangements is dependent on future claims that may be made against the Funds
and, therefore, cannot be estimated; however, based on experience, the risk of
loss from such claims is considered remote.
SECURITY VALUATION
Investments in securities are valued each business day as of the close of
regular trading on the New York Stock Exchange, which is usually 4:00 p.m.
(Eastern Time). Securities which are traded on a national or foreign securities
exchange are valued at the last reported sales price. Securities listed on The
NASDAQ Stock Market, Inc. are valued at the NASDAQ Official Closing Price
("NOCP"), and if no NOCP is available, then at the last reported sales price. In
the absence of any sale of such securities, and in the case of other securities,
including U.S. Government obligations, but excluding debt securities maturing in
60 days or less, the price will be deemed "stale" and the valuations will be
determined in accordance with the Funds' Fair Valuation Procedures.
Securities denominated in foreign currencies are translated into U.S.
dollars using the closing rates of exchange in effect on the day of valuation.
Many securities markets and exchanges outside the U.S. close prior to the
close of the New York Stock Exchange and therefore may not fully reflect trading
or events that occur after the close of the principal exchange in which the
foreign investments are traded but before the close of the New York Stock
Exchange. If such trading or events are expected to materially affect the value
of the investments, then those investments are fair valued following procedures
approved by the Board of Trustees. These procedures take into account multiple
factors including movements in U.S. securities markets after
49
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
foreign exchanges close. Depending on market activity, such fair valuations may
be frequent. In light of the judgment involved in fair value decisions, there
can be no assurance that a fair value assigned to a particular security is
accurate. Such fair value pricing may result in NAVs that are higher or lower
than NAVs based on the closing price or latest quoted bid price.
Debt securities maturing in 60 days or less generally are valued at
amortized cost. The amortized cost method involves valuing a security at its
cost, plus accretion of discount or minus amortization of premium over the
period until maturity, which approximates market value.
Investments which are not valued using any of the methods discussed above
are valued at their fair value as determined by procedures approved by the Board
of Trustees.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Securities transactions are recorded on a trade date basis. Realized gains
or losses are reported on the basis of identified cost of securities delivered.
Interest income is accrued daily and bond discounts are accreted and premiums
are amortized daily.
Dividend income is recognized on the ex-dividend date, except for certain
dividends from foreign securities, which are recorded as soon as the Fund is
informed of the ex-dividend date. Dividend income from foreign securities is
recorded net of foreign taxes withheld where recovery of such taxes is not
assured.
FOREIGN CURRENCY TRANSLATION
The accounting records are maintained in U.S. dollars. Assets, including
investment securities, and liabilities denominated in foreign currency are
translated into U.S. dollars at the prevailing rates of exchange at the date of
valuation. Purchases and sales of securities, and income and expenses are
translated at the prevailing rate of exchange on the respective dates of such
transactions. Reported net realized foreign exchange gains or losses arise from
sales of foreign currencies, currency gains or losses realized between the trade
and settlement dates on securities transactions, and the difference between the
amounts of dividends, interest and foreign withholding taxes recorded and the
U.S. dollar equivalent of the amounts actually paid or received. Net unrealized
foreign exchange gains and losses arise from changes in the fair value of assets
and liabilities other than investments in securities, at fiscal period-end,
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 at
fiscal period-end are not separately presented. Such changes are recorded with
net realized and unrealized gain from investments. Gains and losses from certain
foreign currency transactions are treated as ordinary income for U.S. federal
income tax purposes.
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, if any, is declared and distributed to shareholders
annually. Distributions to shareholders from net realized capital gains, if any,
are declared and distributed at least annually.
For federal income tax purposes, a Fund may designate as capital gains
dividends the earnings and profits distributed to shareholders on the redemption
of fund shares during the year.
Distributions are based on amounts calculated in accordance with the
applicable federal income tax regulations, which may differ from GAAP. The
timing and character of distributions made during the period from net investment
income or net realized gains may also differ from their ultimate
characterization for federal income tax purposes. To the extent that these
differences are permanent in nature, such amounts are reclassified within the
capital accounts based on their federal tax-basis treatment. Temporary
differences do not require reclassifications.
FEDERAL INCOME TAXES
Each Fund is treated as a separate entity for federal income tax purposes.
It is the policy of each Fund of the Trust to continue to qualify as a regulated
investment company by complying with the provisions applicable to regulated
investment companies, as defined under subchapter M of the Internal Revenue Code
(the "Code"), and to make distributions of 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 at March 31, 2006.
50
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
- --------------------------------------------------------------------------------
At September 30, 2005, estimated net capital loss carryforwards, which are
available to offset future net realized capital gains, were:
Capital Loss
Fund Year Expires Carryforwards
- --------------------------------------------------------------------------------
EMERGING MARKETS FOCUS FUND 2006 $ 186,293,649
2007 22,895,349
2008 1,693,484
2009 41,422,225
2010 14,971,904
- --------------------------------------------------------------------------------
INSTITUTIONAL EMERGING MARKETS FUND 2009 1,766,303
2010 6,538,143
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND 2009 27,486,689
2010 24,061,440
2011 45,537,020
2012 17,574,879
- --------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACTS
The Fund(s) may enter into forward foreign currency contracts to protect
against a possible loss resulting from an adverse change in the relationship
between foreign currencies and the U.S. dollar, or between foreign currencies. A
forward contract is an agreement between two counterparties for future delivery
or receipt of currency at a specified price. Risks arise from the possible
inability of counterparties to meet the terms of their contracts and from
movements in currency values. Realized gains or losses are recognized when the
transaction is completed. Contracts which have been offset but have not reached
their settlement date are included in unrealized gains and losses.
As of March 31, 2006, there were no outstanding forward contracts.
SECURITY LOANS
The Fund(s) may loan securities in return for securities, irrevocable
letters of credit or cash collateral, which is invested in various short-term
fixed income securities. A Fund may receive compensation for lending securities
in the form of fees or by retaining a portion of interest on the investment
securities or cash received as collateral. A Fund also continues to receive
interest or dividends on the securities loaned. Security loans are secured at
all times by collateral. The collateral is equal to at least 102% of the market
value of the securities loaned plus accrued interest when the transaction is
entered into. The collateral supporting loans of domestic and foreign equity
securities and corporate bonds are remarked daily while collateral supporting
loans of U.S. Government securities are remarked back to 102% only if the given
collateral falls below 100% of the market value of the securities loans plus any
accrued interest. Gain or loss in the market price of the securities loaned that
may occur during the term of the loan are reflected in the value of the Fund.
The risks from securities lending are that the borrower may not provide
additional collateral when required or return the securities when due or when
called for by the Fund. Wells Fargo Bank, N.A., the Funds' custodian, acts as
the securities lending agent for the Funds and receives for its services 30% of
the revenues earned on the securities lending activities and incurs all
expenses. Prior to October 1, 2005, Wells Fargo Bank, N.A. received 35% of the
revenues earned on the securities lending activities and incurred all expenses.
The value of the securities on loan and the value of the related collateral at
March 31, 2006, are shown on the Statements of Assets and Liabilities.
3. EXPENSES
- --------------------------------------------------------------------------------
ADVISORY FEES
The Trust has entered into an advisory contract with Wells Fargo Funds
Management, LLC ("Funds Management"). The adviser is responsible for
implementing investment policies and guidelines and for supervising the
subadviser, who is responsible for day-to-day portfolio management.
51
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Pursuant to the contract, Funds Management is entitled to receive an
advisory fee for its services as adviser. Funds Management may retain the
services of certain investment subadvisers to provide daily portfolio
management. The fees related to subadvisory services are borne directly by the
adviser and do not increase the overall fees paid by a Fund to the adviser.
Funds Management and the investment subadviser(s) are entitled to be paid a
monthly fee at the following annual rates:
Advisory Fees* Subadvisory Fees
Average Daily (% of Average Average Daily (% of Average
Fund Net Assets Daily Net Assets) Subadviser Net Assets Daily Net Assets)
- -----------------------------------------------------------------------------------------------------------------------------------
EMERGING MARKETS First $500 million 1.100 Wells Capital First $100 million 0.650
FOCUS FUND** Next $500 million 1.050 Management Next $100 million 0.550
Next $2 billion 1.000 Incorporated Over $200 million 0.450
Next $2 billion 0.975
Over $5 billion 0.950
- -----------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL First $500 million 1.100 Wells Capital First $100 million 0.650
EMERGING Next $500 million 1.050 Management Next $100 million 0.550
MARKETS FUND** Next $2 billion 1.000 Incorporated Over $200 million 0.450
Next $2 billion 0.975
Over $5 billion 0.950
- -----------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL First $500 million 0.950 New Star First $50 million 0.350
CORE FUND Next $500 million 0.900 Institutional Next $500 million 0.290
Next $2 billion 0.850 Managers Over $550 million 0.200
Next $2 billion 0.825 Limited
Over $5 billion 0.800
- -----------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL First $500 million 0.950 Artisan Partners, First $250 million 0.700
EQUITY FUND** Next $500 million 0.900 L.P. Over $250 million 0.500
Next $2 billion 0.850
Next $2 billion 0.825
Over $5 billion 0.800
LSV Asset First $150 million 0.350
Management Next $350 million 0.400
Next $250 million 0.350
Next $250 million 0.325
Over $1 billion 0.300
New Star First $50 million 0.350
Institutional Next $500 million 0.290
Managers Limited Over $550 million 0.200
52
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
- --------------------------------------------------------------------------------
*Effective April 11, 2005. From January 1, 2005, through April 10, 2005,
Funds Management served as interim investment adviser to each of the predecessor
Strong Funds and was entitled to receive an annual fee at the following rates:
Advisory Fees
Average Daily (% of Average
Fund Level Net Assets Daily Net Assets)
- -----------------------------------------------------------------------------------------------------------
INTERNATIONAL CORE FUND First $4 billion 0.750
Next $2 billion 0.725
Over $6 billion 0.700
- -----------------------------------------------------------------------------------------------------------
**Effective January 1, 2006. Prior to January 1, 2006, Subadviser(s) were
entitled to be paid a monthly fee at the following rates:
Subadvisory Fees
Average Daily (% of Average
Fund Subadviser Net Assets Daily Net Assets)
- -----------------------------------------------------------------------------------------------------------
EMERGING MARKETS FOCUS FUND Wells Capital First $200 million 0.350
Management Incorporated Over $200 million 0.250
- -----------------------------------------------------------------------------------------------------------
INSTITUTIONAL EMERGING MARKETS FUND Wells Capital First $200 million 0.350
Management Incorporated Over $200 million 0.250
- -----------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND Artisan Partners L.P. All asset levels 0.700
- -----------------------------------------------------------------------------------------------------------
ADMINISTRATION AND TRANSFER AGENT FEES
The Trust has entered into an Administration Agreement with Funds
Management. Under this Agreement, for providing administrative services, which
includes paying fees and expenses for services provided by the transfer agent,
sub-transfer agents, omnibus account servicers and record-keepers, Funds
Management is entitled to receive the following annual fees:
Admin Fees for Admin Fees
International Core Fund only* for other Funds
Average Daily (% of Average (% of Average
Fund Net Assets Daily Net Assets) Daily Net Assets)
- -----------------------------------------------------------------------------------------------------------
FUND LEVEL First $5 billion 0.05 0.05
Next $5 billion 0.04 0.04
Over $10 billion 0.03 0.03
- -----------------------------------------------------------------------------------------------------------
CLASS A 0.23 0.28
- -----------------------------------------------------------------------------------------------------------
CLASS B 0.23 0.28
- -----------------------------------------------------------------------------------------------------------
CLASS C 0.23 0.28
- -----------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS 0.10 0.10
- -----------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS N/A 0.08
*Effective April 11, 2005. Prior to April 11, 2005, Strong Investor
Services, Inc. ("SISI") served as administrator to each of the predecessor
Strong Funds and was entitled to receive an annual fee at the following rates:
Admin Fees for
International Core
Fund only*
(% of Average
Daily Net Assets)
- -----------------------------------------------------------------------------------------------------------
CLASS A 0.30
- -----------------------------------------------------------------------------------------------------------
CLASS B 0.30
- -----------------------------------------------------------------------------------------------------------
CLASS C 0.30
- -----------------------------------------------------------------------------------------------------------
The Trust has entered into an agreement with Boston Financial Data
Services, Inc. ("BFDS"). BFDS served as the transfer agent to the predecessor
Strong Funds effective March 14, 2005. Prior to March 14, 2005, SISI served as
transfer agent to each of the predecessor Strong Funds. Effective April 11,
2005, transfer agent fees are paid by Funds Management and not by the Funds.
Effective at the close of business on April 8, 2005, the Institutional
Class of the Wells Fargo Emerging Market Focus Fund was renamed the
Administrator Class of the Wells Fargo Advantage Emerging Market Focus Fund.
Prior to the class being renamed, the Fund paid 0.20% to Funds Management for
administrative services.
53
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
CUSTODY FEES
The Trust has entered into a contract with Wells Fargo Bank, N.A. ("WFB"),
whereby WFB is responsible for providing custody services. Pursuant to the
contract, WFB is entitled to a monthly fee for custody services at the following
annual rates:
% of Average
Fund Daily Net Assets
- --------------------------------------------------------------------------------
EMERGING MARKETS FOCUS FUND 0.25
- --------------------------------------------------------------------------------
INSTITUTIONAL EMERGING MARKETS FUND 0.25
- --------------------------------------------------------------------------------
INTERNATIONAL CORE FUND 0.10
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND 0.10
Prior to February 28, 2005, State Street Bank and Trust Co. ("State
Street") served as custodian for each of the predecessor Strong Funds. State
Street was entitled to receive certain fees, primarily based on transactions of
the fund.
SHAREHOLDER SERVICING FEES
The Trust has entered into contracts with one or more shareholder
servicing agents, whereby each Fund is charged the following annual fees:
% of Average
Share Class Daily Net Assets
- --------------------------------------------------------------------------------
CLASS A, CLASS B, CLASS C AND ADMINISTRATOR CLASS 0.25%*
- --------------------------------------------------------------------------------
*Effective April 11, 2005. Prior to April 11, 2005, shareholder servicing
fees for the predecessor Strong Funds, if any, were encompassed by the Strong
Funds' 12b-1 distribution and service plan. For the period October 1, 2005,
through March 31, 2006, shareholder servicing fees paid were as follows:
Administrator
Fund Class A Class B Class C Class
- ----------------------------------------------------------------------------------------
EMERGING MARKET FOCUS FUND $ 207,898 $ 6,255 $ 3,213 $ 99,837
- ----------------------------------------------------------------------------------------
INTERNATIONAL CORE FUND 2,063 2,506 543 21
- ----------------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND 68,247 18,230 1,875 782,844
- ----------------------------------------------------------------------------------------
DISTRIBUTION FEES
The Trust has adopted a Distribution Plan (the "Plan") for Class B and
Class C shares of the applicable Funds pursuant to Rule 12b-1 under the 1940
Act. Effective April 11, 2005, distribution fees are charged to the Class B and
Class C shares and paid to Wells Fargo Funds Distributor, LLC at an annual rate
of 0.75% of average daily net assets.
Prior to April 11, 2005, the predecessor Strong Funds adopted a 12b-1
distribution and service plan under the 1940 Act on behalf of the Class A, B,
and C shares. Under the plan, Strong Investments, Inc. was paid an annual rate
of 0.25%, 1.00%, and 1.00%, respectively, of the average daily net assets of
Class A, B, and C shares.
For the period ended March 31, 2006, distribution fees incurred are
disclosed on the Statements of Operations.
OTHER FEES
PFPC, Inc. ("PFPC") serves as fund accountant for the Trust and is
entitled to receive an annual asset based fee and an annual fixed fee from each
Fund. PFPC is also entitled to be reimbursed for all out-of-pocket expenses
reasonably incurred in providing these services.
Prior to February 28, 2005, State Street served as fund accountant for
each of the predecessor Strong Funds. Fund accounting fees were paid by the
Funds' administrator and not by the Funds.
WAIVED FEES AND REIMBURSED EXPENSES
Effective April 11, 2005, Funds Management waived fees or reimbursed
expenses proportionately from all classes, first from advisory fees, and then
from any class specific expenses, if applicable. The Fund's adviser has
committed to waive fees and/or reimburse expenses to the extent necessary to
maintain a certain net operating expense ratio for the Fund(s). Net operating
expense ratios in effect for the period ended March 31, 2006, were as follows:
Net Operating Expense Ratios
-----------------------------------------------------------
Fund Class A Class B Class C Administrator Institutional
- ------------------------------------------------------------------------------------------------------------
EMERGING MARKETS FOCUS FUND 1.90% 2.65% 2.65% 1.60% N/A
- ------------------------------------------------------------------------------------------------------------
INSTITUTIONAL EMERGING MARKETS FUND N/A N/A N/A N/A 1.25%
- ------------------------------------------------------------------------------------------------------------
INTERNATIONAL CORE FUND 1.50% 2.25% 2.25% 1.25% N/A
- ------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND 1.50% 2.25% 2.25% 1.25% N/A
54
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
- --------------------------------------------------------------------------------
Prior to April 11, 2005, the Strong Funds' adviser and/or administrator
could voluntarily waive or absorb certain expenses at their discretion. Strong
Capital Management, Inc. ("SCM") and/or SISI had contractually agreed to waive
its fees and/or absorb expenses for Class A, B, and C shares of the
International Core Fund until May 1, 2005, to keep total annual operating
expenses at no more than 2.5% for the Class A, B, and C shares. However,
effective April 11, 2005, the Funds are subject to a different expense
structure. SISI also allocated to the Funds certain charges or credits resulting
from transfer agency banking activities based on each Class' level of
subscription and redemption activity. Transfer Agency Banking Credits allocated
by SISI, if any, served to reduce the transfer agency expenses incurred by the
Funds.
4. INVESTMENT PORTFOLIO TRANSACTIONS
- --------------------------------------------------------------------------------
Purchases and sales of investments, exclusive of short-term securities
(securities with maturities of one year or less at purchase date) for the period
ended March 31, 2006, were as follows:
Fund Purchases at Cost Sales Proceeds
- --------------------------------------------------------------------------------
EMERGING MAKERTS FOCUS FUND $ 125,964,835 $ 126,998,985
- --------------------------------------------------------------------------------
INSTITUTIONAL EMERGING MARKETS FUND 27,398,362 35,378,651
- --------------------------------------------------------------------------------
INTERNATIONAL CORE FUND 2,051,203 895,947
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND 172,591,219 158,201,448
5. BANK BORROWINGS
- --------------------------------------------------------------------------------
Wells Fargo Funds Trust and Wells Fargo Variable Trust (excluding the
money market funds) share in a revolving Credit Agreement with The Bank of New
York, whereby the Funds are permitted to use bank borrowings for temporary or
emergency purposes, such as to fund shareholder redemption requests. The
agreement permits borrowings of up to $150 million, collectively. Interest is
charged to each Fund based on its borrowing at a rate equal to the Federal Funds
Rate plus 0.40%. In addition, the Funds pay a quarterly commitment fee equal to
0.1% per annum of the credit line.
Prior to April 11, 2005, the predecessor Strong Funds had established a
line of credit agreement ("LOC") with certain financial institutions to be used
for temporary or emergency purposes. Combined borrowings among all participating
Strong Funds were subject to a $200 million cap on the total LOC. For an
individual fund, borrowings under the LOC were limited to either the lesser of
15% of the market value of the fund's total assets or any explicit borrowing
limits in the fund's registration statement. The principal amount of each
borrowing under the LOC was due not more than 45 days after the date of the
borrowing. Borrowings under the LOC accrued interest based on prevailing market
rates as defined in the LOC. A commitment fee of 0.09% per annum was incurred on
the unused portion of the LOC and was allocated to all participating Strong
Funds based on their net asset values. For the six months ended March 31, 2006,
the Emerging Markets Focus Fund, Institutional Emerging Markets Fund,
International Core Fund and International Equity Fund had no borrowings under
either agreement.
6. LEGAL AND REGULATORY MATTERS
- --------------------------------------------------------------------------------
In 2004, the predecessor Strong Funds' prior investment adviser and
affiliates (collectively, "Strong") entered into agreements with certain
regulators, including the Securities and Exchange Commission and the New York
Attorney General ("NYAG"), to settle market-timing investigations. In the
settlements, Strong agreed to pay investor restoration and civil penalties.
Although some portion of these payments is likely to be distributed to
predecessor Strong Fund shareholders, no determination has yet been made as to
the distribution of these amounts, and the successor funds are not expected to
receive any portion of these payments. The NYAG settlement imposed fee
reductions across the predecessor fund complex (excluding money market funds and
very short-term income funds) totaling at least $35 million by May 2009. The
current Funds' advisor has agreed to honor these fee reductions for the benefit
of shareholders across the successor funds. Although civil litigation against
Strong and certain predecessor Strong Funds relating to these matters is
continuing, neither the current adviser nor the successor funds is a party to
any such suit.
7. MISCELLANEOUS
- --------------------------------------------------------------------------------
FOREIGN TAXES PAYABLE
Under Indian tax law, U.S. mutual funds are subject to taxation on capital
gains realized upon the sale of Indian securities. Mutual fund industry practice
has long been to net long-term capital losses against taxable short-term capital
gains. However, the Indian tax statute was amended in mid-2002 to disallow such
netting, and the Indian tax authorities have subsequently assessed additional
taxes on many U.S. mutual funds based upon a retroactive application of the tax
statute. For the taxable years since its inception date, the Wells Fargo
Advantage Emerging Markets Focus Fund (the "Focus Fund"), as successor to the
Montgomery Emerging Markets Fund, has been assessed approximately $590,000. The
Fund filed an administrative appeal to this assessment in April 2003.
On August 1, 2003, the Focus Fund received a demand for approximately
$295,000 to stay the imposition of additional penalties while the assessment was
under appeal, and an agreement was reached on August 8, 2003 for the Focus Fund
to make such payment.
On August 20, 2003, the Focus Fund made the determination to accrue the
entire $590,000 at issue as a tax expense. The Fund continues to pursue the
administrative appeals process and will reverse such accrual in the event of a
favorable disposition.
Foreign taxes payable also reflects accrued India capital gain tax on
unrealized gains, if any, on Indian securities as required under GAAP.
55
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS OTHER INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
PROXY VOTING INFORMATION
A description of the policies and procedures that the Funds use to
determine how to vote proxies relating to portfolio securities and information
regarding the results of such voting during the most recent 12-month period
ended June 30 is available without charge, upon request, by calling
1-800-222-8222, visiting our Web site at WWW.WELLSFARGO.COM/ADVANTAGEFUNDS, or
visiting the SEC Web site at WWW.SEC.GOV.
PORTFOLIO HOLDINGS INFORMATION
The complete portfolio holdings for each Fund are publicly available on
the Funds' Web site (WWW.WELLSFARGO.COM/ADVANTAGEFUNDS) on a monthly, 30-day or
more delayed basis. In addition, top ten holdings information for each Fund is
publicly available on the Funds' Web site on a monthly, seven-day or more
delayed basis. The Fund(s) files its complete schedule of portfolio holdings
with the SEC for the first and third quarters of each fiscal year on Form N-Q,
which is available without charge by visiting the SEC Web site at WWW.SEC.GOV.
In addition, the Fund's Form N-Q may be reviewed and copied at the SEC's Public
Reference Room in Washington, DC, and at regional offices in New York City, at
233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900.
Information about the Public Reference Room may be obtained by calling
1-800-SEC-0330.
BOARD OF TRUSTEES
The following table provides basic information about the Board of Trustees
(the "Trustees") of the Wells Fargo Funds Trust (the "Trust"). This table
supplements, and should be read in conjunction with, the Prospectus and the
Statement of Additional Information* of each Fund. Each of the Trustees listed
below acts in an identical capacity for each of the 139 funds comprising the
Trust, Wells Fargo Variable Trust and Wells Fargo Master Trust (collectively the
"Fund Complex"). All of the non-interested Trustees are also members of the
Audit and Governance Committees of each Trust in the Fund Complex. The 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.
NON-INTERESTED TRUSTEES
- ---------------------------------------------------------------------------------------------------------
POSITION HELD AND PRINCIPAL OCCUPATIONS DURING
NAME AND AGE LENGTH OF SERVICE ** PAST FIVE YEARS OTHER DIRECTORSHIPS
- ---------------------------------------------------------------------------------------------------------
Thomas S. Goho Trustee, since 1987 Chair of Finance, Wake Forest None
63 University, since 2006. Benson-
Pruitt Professorship, Wake
Forest University, Calloway
School of Business and
Accountancy, since 1999.
- ---------------------------------------------------------------------------------------------------------
Peter G. Gordon Trustee, since 1998 Chairman, CEO, and Co- None
63 (Chairman, since 2005) Founder of Crystal Geyser
Water Company, and President
of Crystal Geyser Roxane Water
Company.
- ---------------------------------------------------------------------------------------------------------
Richard M. Leach Trustee, since 1987 Retired. Prior thereto, President None
72 of Richard M. Leach Associates
(a financial consulting firm).
- ---------------------------------------------------------------------------------------------------------
Olivia S. Mitchell Trustee, since 2006 Professor of Insurance and Risk None
53 Management, Wharton School,
University of Pennsylvania.
Director of the Boettner Center
on Pensions and Retirement.
Research Associate and Board
Member, Penn Aging Research
Center. Research Associate,
National Bureau of Economic
Research.
- ---------------------------------------------------------------------------------------------------------
Timothy J. Penny Trustee, since 1996 Senior Counselor to the public None
54 relations firm of Himle-Horner,
and Senior Fellow at the
Humphrey Institute,
Minneapolis, Minnesota (a
public policy organization).
- ---------------------------------------------------------------------------------------------------------
56
OTHER INFORMATION (UNAUDITED) WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
- --------------------------------------------------------------------------------
NON-INTERESTED TRUSTEES (CONTINUED)
- ---------------------------------------------------------------------------------------------------------
POSITION HELD AND PRINCIPAL OCCUPATIONS DURING
NAME AND AGE LENGTH OF SERVICE ** PAST FIVE YEARS OTHER DIRECTORSHIPS
- ---------------------------------------------------------------------------------------------------------
Donald C. Willeke Trustee, since 1996 Principal of the law firm of None
65 Willeke & Daniels.
- ---------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEE***
- ---------------------------------------------------------------------------------------------------------
POSITION HELD AND PRINCIPAL OCCUPATIONS DURING
NAME AND AGE LENGTH OF SERVICE ** PAST FIVE YEARS OTHER DIRECTORSHIPS
- ---------------------------------------------------------------------------------------------------------
J. Tucker Morse Trustee, since 1987 Private Investor/Real Estate None
61 Developer. Prior thereto,
Chairman of White Point Capital,
LLC until 2005.
- ---------------------------------------------------------------------------------------------------------
OFFICERS
- ---------------------------------------------------------------------------------------------------------
POSITION HELD AND PRINCIPAL OCCUPATIONS DURING
NAME AND AGE LENGTH OF SERVICE PAST FIVE YEARS OTHER DIRECTORSHIPS
- ---------------------------------------------------------------------------------------------------------
Karla M. Rabusch President, since 2003 Executive Vice President of None
46 Wells Fargo Bank, N.A. and
President of Wells Fargo Funds
Management, LLC. Senior Vice
President and Chief
Administrative Officer of Wells
Fargo Funds Management, LLC
from 2001 to 2003.
- ---------------------------------------------------------------------------------------------------------
C. David Messman Secretary, since 2000 Vice President and Managing None
45 Senior Counsel of Wells Fargo
Bank, N.A. and Senior Vice
President and Secretary of Wells
Fargo Funds Management, LLC.
Vice President and Senior
Counsel of Wells Fargo Bank,
N.A. from 1996 to 2003.
- ---------------------------------------------------------------------------------------------------------
A. Erdem Cimen Treasurer, since 2006 Vice President of Wells Fargo None
32 Bank, N.A. and Vice President
of Financial Operations for
Wells Fargo Funds Management,
LLC. Vice President and Group
Finance Officer of Wells Fargo
Bank, N.A. Auto Finance Group
from 2004 to 2006. Vice
President of Portfolio Risk
Management for Wells Fargo
Bank, N.A. Auto Finance Group
in 2004. Vice President of
Portfolio Research and Analysis
for Wells Fargo Bank, N.A. Auto
Finance Group from 2001 to 2004.
Director of Small Business
Services Risk Management for
American Express Travel Related
Services from 2000 to 2001.
- ---------------------------------------------------------------------------------------------------------
* The Statement of Additional Information includes additional
information about the Funds' Trustees and is available, without
charge, upon request, by calling 1-800-222-8222 or by visiting the
Funds' Web site at WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
** Length of service dates reflects a Trustee's commencement of service
with the Trust's predecessor entities.
*** As of March 31, 2006, one of the seven Trustees is considered an
"interested person" of the Trusts as defined in the Investment
Company Act of 1940. The interested Trustee, J. Tucker Morse, is
affiliated with a government securities dealer that is registered
under the Securities Exchange Act of 1934, which is not itself
affiliated with Wells Fargo Funds Management, LLC.
57
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS OTHER INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
BOARD CONSIDERATION OF AND CONTINUATION OF INVESTMENT ADVISORY AND SUBADVISORY
AGREEMENTS:
EMERGING MARKETS FOCUS FUND, INSTITUTIONAL EMERGING MARKETS FUND, INTERNATIONAL
CORE FUND AND INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
Section 15(c) of the Investment Company Act of 1940 (the "1940 Act")
contemplates that the Board of Trustees (the "Board") of Wells Fargo Funds Trust
(the "Trust"), including a majority of the Trustees who have no direct or
indirect interest in the investment advisory and subadvisory agreements and are
not "interested persons" of the Trust, as defined in the 1940 Act (the
"Independent Trustees"), will annually review and consider the continuation of
the investment advisory and subadvisory agreements. In this regard, the Board
reviewed and re-approved, during the most recent six months covered by this
report: (i) an investment advisory agreement with Wells Fargo Funds Management,
LLC ("Funds Management") for the Emerging Markets Focus Fund, Institutional
Emerging Markets Fund, International Core Fund and International Equity Fund
(the "Funds"); (ii) an investment subadvisory agreement with Wells Capital
Management Incorporated ("Wells Capital Management") for the Emerging Markets
Focus Fund and Institutional Emerging Markets Fund; (iii) an investment
subadvisory agreement with New Star Institutional Managers Limited ("New Star")
for the International Core Fund and International Equity Fund; (iv) an
investment subadvisory agreement with Artisan Partners Limited Partnership
("Artisan") for the International Equity Fund; and (v) an investment subadvisory
agreement with LSV Asset Management ("LSV") for the International Equity Fund.
The investment advisory agreements with Funds Management and the investment
subadvisory agreements with Wells Capital Management, New Star, Artisan and LSV
(the "Subadvisers"), are collectively referred to as the "Advisory Agreements."
More specifically, at a meeting held on March 31, 2006, the Board,
including the Independent Trustees advised by their independent legal counsel,
considered the factors and reached the conclusions described below relating to
the selection of Funds Management and the Subadvisers and the continuation of
the Advisory Agreements. Prior to the March 31, 2006 meeting, the Board,
including the Independent Trustees, met in person and telephonically a number of
times, both with Funds Management and in private sessions relating to the
advisory contract approvals. The Independent Trustees were assisted in their
evaluation of the Advisory Agreements by independent legal counsel, from whom
they received separate legal advice and with whom they met separately from Funds
Management.
NATURE, EXTENT AND QUALITY OF SERVICES
- --------------------------------------------------------------------------------
The Board received and considered various data and information regarding
the nature, extent and quality of services provided to the Funds by Funds
Management and the Subadvisers under the Advisory Agreements. The Board also
received and considered responses of Funds Management and the Subadvisers to a
detailed set of requests submitted by the Independent Trustees' independent
legal counsel on behalf of such Trustees. The Board reviewed and considered the
data and information, which included, among other things, information about the
background and experience of senior management and the expertise of, and amount
of attention devoted to the Funds by, investment personnel of Funds Management
and the Subadvisers. In this regard, the Board specifically reviewed the
qualifications, backgrounds and responsibilities of the portfolio managers
primarily responsible for day-to-day portfolio management services for the Funds
The Board evaluated the ability of Funds Management and the Subadvisers,
based on their respective resources, reputations and other attributes, to
attract and retain highly qualified investment professionals, including
research, advisory, and supervisory personnel. In this regard, the Board
considered information regarding Funds Management's and each Subadviser's
compensation program for its personnel involved in the management of the Funds.
The Board further considered the compliance programs and compliance
records of Funds Management and the Subadvisers. In addition, the Board took
into account the administrative services provided to the Funds by Funds
Management and its affiliates. In considering these matters, the Board
considered not only the specific information presented in connection with the
meeting, but also the knowledge gained over the course of interacting with Funds
Management about various topics, including Funds Management's oversight of
service providers, such as the Subadvisers.
Based on the above factors, together with those referenced below, the
Board concluded that it was generally satisfied with the nature, extent and
quality of the investment advisory services provided to the Funds by Funds
Management and the Subadvisers.
58
OTHER INFORMATION (UNAUDITED) WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
- --------------------------------------------------------------------------------
FUND PERFORMANCE AND EXPENSES
- --------------------------------------------------------------------------------
The Board considered the performance results for each of the Funds over
various time periods ended December 31, 2005. It also considered these results
in comparison to the median performance results of the group of funds that was
determined by Lipper Inc. ("Lipper") to be the most similar to a given Fund (the
"Peer Group") and to the median performance of a broader universe of relevant
funds as determined by Lipper (the "Universe"), as well as to each Fund's
benchmark index. Lipper is an independent provider of investment company data.
The Board was provided with a description of the methodology used by Lipper to
select the mutual funds in each Fund's Peer Group and Universe.
The Board noted that the performance of each Fund was lower than the
median performance of each Fund's Peer Group for all time periods and required
further monitoring. Upon further review, the Board noted that the Emerging
Markets Focus Fund's and Institutional Emerging Markets Fund's underperformance
was due, in part, to the Funds' portfolios managers' overweight positions in
South Africa and South Korea. Accordingly, the Board asked for continued reports
on the Funds' performance.
The Board received and considered information regarding the Funds' net
operating expense ratios and their various components, including contractual
advisory fees, actual advisory fees, actual non-management fees, Rule 12b-1 and
non-Rule 12b-1 service fees, fee waivers/caps and/or expense reimbursements.
They also considered comparisons of these fees to the expense information for
each Fund's Peer Group and Universe, which comparative data was provided by
Lipper. The Board noted that the net operating expense ratios for the Funds were
lower than the Funds' Peer Groups' median net operating expense ratios.
Based on the above-referenced considerations and other factors, the Board
concluded that the overall performance and expense results supported the
re-approval of the Advisory Agreements for the Funds.
INVESTMENT ADVISORY AND SUBADVISORY FEE RATES
- --------------------------------------------------------------------------------
The Board reviewed and considered the contractual investment advisory fee
rates payable by the Funds to Funds Management for investment advisory services,
both on a stand-alone basis and on a combined basis with the Funds'
administration fee rates (the "Advisory Agreement Rates"). The Board took into
account the separate administration services covered by the administration fee
rates. The Board also reviewed and considered the contractual investment
subadvisory fee rates (the "Subadvisory Agreement Rates") payable by Funds
Management to the Subadvisers for investment subadvisory services. In addition,
the Board reviewed and considered the existing fee waiver/cap arrangements
applicable to the Advisory Agreement Rates and considered the Advisory Agreement
Rates after taking the waivers/caps into account (the "Net Advisory Rates").
The Board received and considered information comparing the Advisory
Agreement Rates and Net Advisory Rates with those of the other funds in the Peer
Groups. The Board noted that the Advisory Agreement Rates and the Net Advisory
Rates for the Funds were lower than, or not appreciably higher than, the median
rates of each Fund's Peer Group. In addition, the Board concluded that the
combined investment advisory/administration fee rates for the Funds (before and
after waivers/caps and/or expense reimbursements) were reasonable in relation to
each Fund's respective Peer Group, and reasonable in relation to the services
provided.
The Board also reviewed and considered the Subadvisory Agreement Rates and
concluded that the Subadvisory Agreement Rates were fair and equitable, based on
their consideration of the factors described above.
PROFITABILITY
- --------------------------------------------------------------------------------
The Board received and considered a detailed profitability analysis of
Funds Management based on the Advisory Agreement Rates and the Net Advisory
Rates, as well as on other relationships between the Funds on the one hand and
Funds Management affiliates on the other. The Board concluded that, in light of
the costs of providing investment management and other services to the Funds,
the profits and other ancillary benefits that Funds Management and its
affiliates received with regard to providing these services to the Funds were
not unreasonable.
The Board did not consider a separate profitability analysis of Wells
Capital Management, as its separate profitability from its relationship with the
Emerging Markets Focus Fund and Institutional Emerging Markets Fund was not a
material factor in determining whether to renew the agreements. The Board did
not consider a separate profitability analysis of Artisan, LSV and New Star,
which are not affiliated with Funds Management. The Board considered that the
subadvisory fees paid to Artisan, LSV
59
WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS OTHER INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
and New Star had been negotiated by Funds Management on an arm's length basis
and that Artisan's, LSV's and New Star's separate profitability from their
relationships with the International Core Fund and International Equity Fund was
not a material factor in determining whether to renew the agreements.
ECONOMIES OF SCALE
- --------------------------------------------------------------------------------
The Board received and considered information regarding whether there have
been economies of scale with respect to the management of the Funds, whether the
Funds have appropriately benefited from any economies of scale, and whether
there is potential for realization of further economies of scale. The Board
acknowledged the inherent limitations of any analysis of an investment adviser's
economies of scale and of any attempt to correlate breakpoints with such
economies, stemming largely from the Board's understanding that economies of
scale are realized, if at all, by an investment adviser across a variety of
products and services, not just in respect to a single fund. The Board concluded
that any actual or potential economies of scale are, or would be, shared
reasonably with Fund shareholders, most particularly through Advisory Agreement
Rate breakpoints applicable to the Funds.
INFORMATION ABOUT SERVICES TO OTHER CLIENTS
- --------------------------------------------------------------------------------
The Board also received and considered information about the nature and
extent of services and fee rates offered by Funds Management to other similarly
situated series of the Trust, and those offered by the Subadvisers to other
clients, including other registered investment companies and separate accounts.
The Board concluded that the Advisory Agreement Rates, the Subadvisory Agreement
Rates and the Net Advisory Rates were within a reasonable range of the fee rates
offered to others by Funds Management and the Subadvisers, giving effect to
differences in services covered by such fee rates.
OTHER BENEFITS TO FUNDS MANAGEMENT AND THE SUBADVISERS
- --------------------------------------------------------------------------------
The Board received and considered information regarding potential
"fall-out" or ancillary benefits received by Funds Management and its affiliates
and the Subadvisers as a result of their relationship with the Funds. Such
benefits could include, among others, benefits directly attributable to the
relationship of Funds Management and the Subadvisers with the Funds and benefits
potentially derived from an increase in Funds Management's and the Subadvisers'
business as a result of their relationship with the Funds (such as the ability
to market to shareholders other financial products offered by Funds Management
and its affiliates or the Subadvisers and their affiliates).
The Board also considered the effectiveness of the policies of the Funds
in achieving the best execution of portfolio transactions, whether and to what
extent soft dollar credits are, or would be, sought and how any such credits are
utilized, any benefits that may be realized by using an affiliated broker, the
extent to which efforts are made to recapture transactions costs, and the
controls applicable to brokerage allocation procedures. The Board also reviewed
Funds Management's and the Subadvisers' methods for allocating portfolio
investment opportunities among the Funds and other clients.
OTHER FACTORS AND BROADER REVIEW
- --------------------------------------------------------------------------------
The Board also considered the markets for distribution of the Funds,
including the principal channels through which the Funds' shares are offered and
sold. The Board noted that the Funds are part of one of the few fund families
that have both direct-to-fund and intermediary distribution.
As discussed above, the Board reviewed detailed materials received from
Funds Management and the Subadvisers annually as part of the re-approval process
under Section 15(c) of the 1940 Act. The Board also reviews and assesses the
quality of the services that the Funds receive throughout the year. In this
regard, the Board reviews reports of Funds Management and the Subadvisers at
each of its quarterly meetings, which include, among other things, a portfolio
review and fund performance reports. In addition, the Board confers with the
portfolio managers of the Funds at various times throughout the year.
After considering the above-described factors and based on its
deliberations and its evaluation of the information described above, the Board
concluded that approval of the continuation of the Advisory Agreements for the
Funds was in the best interest of the Funds and their shareholders. Accordingly,
the Board unanimously approved the continuation of the Advisory Agreements for
an additional one-year period.
60
LIST OF ABBREVIATIONS WELLS FARGO ADVANTAGE INTERNATIONAL STOCK FUNDS
- --------------------------------------------------------------------------------
The following is a list of common abbreviations for terms and entities which may
have appeared in this report.
ABAG -- Association of Bay Area Governments
ADR -- American Depository Receipts
AMBAC -- American Municipal Bond Assurance Corporation
AMT -- Alternative Minimum Tax
ARM -- Adjustable Rate Mortgages
BART -- Bay Area Rapid Transit
CDA -- Community Development Authority
CDSC -- Contingent Deferred Sales Charge
CGIC -- Capital Guaranty Insurance Company
CGY -- Capital Guaranty Corporation
CMT -- Constant Maturity Treasury
COFI -- Cost of Funds Index
Connie Lee -- Connie Lee Insurance Company
COP -- Certificate of Participation
CP -- Commercial Paper
CTF -- Common Trust Fund
DW&P -- Department of Water & Power
DWR -- Department of Water Resources
EDFA -- Education Finance Authority
FFCB -- Federal Farm Credit Bank
FGIC -- Financial Guaranty Insurance Corporation
FHA -- Federal Housing Authority
FHLB -- Federal Home Loan Bank
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
FRN -- Floating Rate Notes
FSA -- Financial Security Assurance, Inc
GDR -- Global Depository Receipt
GNMA -- Government National Mortgage Association
GO -- General Obligation
HFA -- Housing Finance Authority
HFFA -- Health Facilities Financing Authority
IDA -- Industrial Development Authority
IDR -- Industrial Development Revenue
LIBOR -- London Interbank Offered Rate
LLC -- Limited Liability Corporation
LOC -- Letter of Credit
LP -- Limited Partnership
MBIA -- Municipal Bond Insurance Association
MFHR -- Multi-Family Housing Revenue
MUD -- Municipal Utility District
MTN -- Medium Term Note
PCFA -- Pollution Control Finance Authority
PCR -- Pollution Control Revenue
PFA -- Public Finance Authority
PLC -- Private Placement
PSFG -- Public School Fund Guaranty
RDA -- Redevelopment Authority
RDFA -- Redevelopment Finance Authority
REITS -- Real Estate Investment Trusts
R&D -- Research & Development
SFHR -- Single Family Housing Revenue
SFMR -- Single Family Mortgage Revenue
SLMA -- Student Loan Marketing Association
STEERS -- Structured Enhanced Return Trust
TBA -- To Be Announced
TRAN -- Tax Revenue Anticipation Notes
USD -- Unified School District
V/R -- Variable Rate
WEBS -- World Equity Benchmark Shares
XLCA -- XL Capital Assurance
61
THIS PAGE IS INTENTIONALLY LEFT BLANK --
[LOGO]
WELLS ADVANTAGE
FARGO FUNDS
More information about WELLS FARGO This Report and the Financial Statements
ADVANTAGE FUNDS(SM) is available free contained herein are submitted for the
upon request. To obtain literature, general information of the shareholders
please write, e-mail, visit the of WELLS FARGO ADVANTAGE FUNDS. If this
Funds' Web site, or call: report is used for promotional purposes,
distribution of the report must be
WELLS FARGO ADVANTAGE FUNDS accompanied or preceded by a current
P.O. Box 8266 prospectus. For a prospectus containing
Boston, MA 02266-8266 more complete information, including
charges and expenses, call
E-mail: wfaf@wellsfargo.com 1-800-222-8222 or visit the Funds' Web
Web site: www.wellsfargo.com/ site at
advantagefunds www.wellsfargo.com/advantagefunds.
Retail Investment Please consider the investment
Professionals: 1-888-877-9275 objective, risks, charges, and expenses
Institutional Investment of the investment carefully before
Professionals: 1-866-765-0778 investing. This and other information
about WELLS FARGO ADVANTAGE FUNDS can be
found in the current prospectus. Read
the prospectus carefully before you
invest or send money.
Wells Fargo Funds Management, LLC, a
wholly owned subsidiary of Wells Fargo &
Company, provides investment advisory
and administrative services for WELLS
FARGO ADVANTAGE FUNDS. Other affiliates
of Wells Fargo & Company provide
sub-advisory and other services for the
Funds. The Funds are distributed by
WELLS FARGO FUNDS DISTRIBUTOR, LLC,
Member NASD/SIPC, an affiliate of Wells
Fargo & Company.
-----------------------------------------------------
NOT FDIC INSURED o NO BANK GUARANTEE o MAY LOSE VALUE
-----------------------------------------------------
- --------------------------------------------------------------------------------
(C) 2006 Wells Fargo www.wellsfargo.com/advantagefunds RT056259 05-31
Advantage Funds, LLC. SINTLD/SAR108 03/06
All rights reserved.
[LOGO]
WELLS ADVANTAGE
FARGO FUNDS
- --------------------------------------------------------------------------------
MARCH 31, 2006
- --------------------------------------------------------------------------------
Semi-Annual Report
[PHOTO OMITTED]
- --------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE ALLOCATION FUNDS
Wells Fargo Advantage Aggressive Allocation Fund
Wells Fargo Advantage Asset Allocation Fund
Wells Fargo Advantage Conservative Allocation Fund
Wells Fargo Advantage Growth Balanced Fund
Wells Fargo Advantage Moderate Balanced Fund
WELLS FARGO ADVANTAGE ALLOCATION FUNDS
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
Letter to Shareholders...................................................... 1
- --------------------------------------------------------------------------------
Performance Highlights
- --------------------------------------------------------------------------------
Aggressive Allocation Fund............................................... 2
Asset Allocation Fund.................................................... 4
Conservative Allocation Fund............................................. 6
Growth Balanced Fund..................................................... 8
Moderate Balanced Fund................................................... 10
Fund Expenses (Unaudited)................................................... 12
- --------------------------------------------------------------------------------
Portfolio of Investments
- --------------------------------------------------------------------------------
Aggressive Allocation Fund............................................... 14
Asset Allocation Fund.................................................... 15
Conservative Allocation Fund............................................. 33
Growth Balanced Fund..................................................... 34
Moderate Balanced Fund................................................... 35
Financial Statements
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities..................................... 36
Statements of Operations................................................. 38
Statements of Changes in Net Assets...................................... 40
Financial Highlights..................................................... 48
Notes to Financial Highlights............................................ 52
Notes to Financial Statements............................................... 53
- --------------------------------------------------------------------------------
Master Portfolios
Portfolio of Investments
- --------------------------------------------------------------------------------
C&B Large Cap Value Portfolio............................................ 61
Disciplined Growth Portfolio............................................. 66
Equity Income Portfolio.................................................. 71
Equity Value Portfolio................................................... 77
Index Portfolio.......................................................... 83
International Core Portfolio............................................. 100
International Growth Portfolio........................................... 104
International Index Portfolio............................................ 108
International Value Portfolio............................................ 135
Large Cap Appreciation Portfolio......................................... 140
Large Company Growth Portfolio........................................... 146
Small Cap Index Portfolio................................................ 150
Small Company Growth Portfolio........................................... 170
Small Company Value Portfolio............................................ 178
Strategic Small Cap Value Portfolio...................................... 185
Financial Statements
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities..................................... 194
Statements of Operations................................................. 198
Statements of Changes in Net Assets...................................... 202
Financial Highlights..................................................... 208
Notes to Financial Highlights............................................ 210
Notes to Financial Statements............................................... 211
- --------------------------------------------------------------------------------
Other Information (Unaudited) .............................................. 217
- --------------------------------------------------------------------------------
List of Abbreviations....................................................... 222
- --------------------------------------------------------------------------------
-----------------------------------------------------
NOT FDIC INSURED-NO BANK GUARANTEE-MAY LOSE VALUE
-----------------------------------------------------
LETTER TO SHAREHOLDERS WELLS FARGO ADVANTAGE ALLOCATION FUNDS
- --------------------------------------------------------------------------------
DEAR VALUED SHAREHOLDER,
Enclosed please find the WELLS FARGO ADVANTAGE ALLOCATION FUNDS
semi-annual report for the six-month period that ended March 31, 2006. On the
following pages, you will find a discussion of each Fund that includes
performance highlights, changes to the Fund, and the portfolio managers'
strategic outlook. You will also find facts and figures about each Fund.
ECONOMIC OVERVIEW
- --------------------------------------------------------------------------------
The U.S. economy continued to show signs of strength, even though real
Gross Domestic Product (GDP) grew at a rate of only 1.7% for the fourth quarter
of 2005. Volatile energy prices led to subpar performance for the sector during
the six-month period, but overall stock market performance was solid with the
S&P 500 Index reporting gains in excess of 6%. Financials and industrials were
leaders among the different sectors.
During the first quarter of 2006, economic growth gained momentum with
preliminary estimates pegging GDP growth at a rate of 5%. The strong growth came
despite continued interest rate hikes by the Federal Reserve Board (the Fed).
The Federal funds rate as of the end of March stood at 4.75%. Mortgage interest
rates inched upward by about half a percentage point by the close of the first
quarter of 2006. Data on mortgage applications, the number of homes listed for
sale, and median sale prices confirmed that the housing market had lost some of
its impetus. Sluggish housing sales were seen in the condominium markets and in
regions that experienced rapid price appreciation. Sales of single-family homes
held up well, but speculative demand for housing has definitely cooled.
STOCKS REMAIN INCONSISTENT
- --------------------------------------------------------------------------------
Strong corporate earnings helped the equity markets in the fourth quarter
of 2005 while record prices for crude oil and concerns of a slowdown in
worldwide economic growth capped and often reversed rallies. Nevertheless, in
the United States, the fundamentals of strong earnings and low inflation kept
the equity markets steady overall in 2005.
During the first month of 2006, equity markets surged higher as
speculation surfaced that the Fed might stop raising interest rates and move to
a more neutral interest rate environment. Almost all domestic and international
indices reported positive numbers for January. While many of the same indices
saw a decline in performance for February, some stayed in positive territory.
In March, almost every equity market index moved higher to produce the
best first-quarter results for the S&P 500 Index and the Dow Jones Industrial
Average since 1999 and 2002, respectively. The NASDAQ ended the first quarter of
2006 at a five-year high. International markets remained strong and continued to
lead most domestic markets.
BONDS BATTLE RISING INTEREST RATES
- --------------------------------------------------------------------------------
Yields on most U.S. Treasury notes and bonds declined as the Federal funds
rate continued to increase during the fourth quarter of 2005 and into 2006.
During the reporting period, the high-yield and investment-grade segments of the
corporate bond market had positive performance in light of the rising interest
rate environment of 2005. Treasury bills and two-year Treasury notes reported
postive returns for the first quarter of 2006, while long-term Treasury bonds
and Treasury Inflation Protected Securities (TIPS) reported negative returns. By
the end of March, the high-yield and short-duration sectors of the bond market
were the only ones that reported positive returns.
LOOKING AHEAD
- --------------------------------------------------------------------------------
Even though equities enjoyed a first-quarter rally in 2006, high energy
prices and rising interest rates may eventually slow investor enthusiasm for
stocks. We may see long-term interest rates move higher, though their increases
could be restrained if inflation remains steady and investor confidence does not
falter. While a stronger world economy may be good for stocks, the same
expansion might mean less foreign demand for U.S. bonds. These are just a few of
the reasons we believe successful investing includes taking a balanced approach
by maintaining a portfolio that is diversified among stocks and bonds and by
keeping a long-term perspective. While diversification may not prevent losses in
a downturn, it may help reduce them and keep you on track to reach your
financial goals. To help you reach your diversification goals, we offer funds
across every key category, each guided by skillful, independent money
managers--our subadvisers--chosen for their focused attention to a particular
investment style. We believe that our insistence on seeking outstanding money
managers who share our dedication to pursuing consistent, long-term results
offers our investors the firm footing they need to navigate changing market
conditions as they move forward to their financial destinations.
Thank you for choosing WELLS FARGO ADVANTAGE FUNDS(SM)--we appreciate your
confidence in us. If you have any questions about your investment, please
contact your investment professional, or call us at 1-800-222-8222. You may also
visit our Web site at WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
Sincerely,
/s/ Karla M. Rabusch
Karla M. Rabusch
President
WELLS FARGO ADVANTAGE FUNDS
1
WELLS FARGO ADVANTAGE ALLOCATION FUNDS PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE AGGRESSIVE ALLOCATION FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The WELLS FARGO ADVANTAGE AGGRESSIVE ALLOCATION FUND (the Fund) seeks to
provide capital appreciation with a secondary emphasis on current income.
ADVISER MASTER PORTFOLIO SUBADVISERS
Wells Fargo Funds Management, LLC Artisan Partners Limited Partnership
Cadence Capital Management LLC
Cooke & Bieler, L.P.
SUBADVISER Galliard Capital Management, Inc.
Wells Capital Management Incorporated LSV Asset Management
New Star Institutional Managers Limited
Peregrine Capital Management, Inc.
FUND MANAGERS Smith Asset Management Group, L.P.
Thomas C. Biwer, CFA SSgA Funds Management
Galen G. Blomster, CFA Systematic Financial Management, L.P.
Christian L. Chan, CFA Wells Capital Management Incorporated
Gregory T. Genung, CFA
Jeffrey P. Mellas
Andrew Owen, CFA
FUND INCEPTION DATE
12/02/1997
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Administrator Class shares returned 7.43% 1 for the six-month
period that ended March 31, 2006, outperforming the S&P 500 Index 2, which
returned 6.38%, outperforming the Lehman Brothers Aggregate Bond Index 3, which
returned (0.06)%, and outperforming the Aggressive Allocation Composite Index 4,
which returned 6.81%, during the same period.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED. CURRENT
MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB SITE -
WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
ADMINISTRATOR CLASS SHARES ARE SOLD WITHOUT A FRONT-END SALES CHARGE OR
CONTINGENT DEFERRED SALES CHARGE. OTHER FEES AND EXPENSES APPLY TO AN INVESTMENT
IN THE FUND AND ARE DESCRIBED IN THE FUND'S CURRENT PROSPECTUS.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
The Fund's emphasis on stocks, which significantly outperformed bonds
during the six-month period, enabled the Fund to outperform its benchmarks. The
economy and the stock market have shown a lot of resilience over the past six
months, despite the sharp increase in commodity prices and continued monetary
tightening by the Federal Reserve Board. Sustained profit growth and a pickup in
merger and acquisition activity, combined with attractive stock market
valuations, have been instrumental in the global increase in stock prices.
International stocks and small cap stocks led the broad increase in equity
prices during the period. While the stock market has benefited from the solid
traction by the economy, the bond market has had increased concern about the
impact of inflation, as bond yields have moved sharply higher. Core rates of
inflation remained low during the period. However, commodity prices continued to
surge and the sharp advance in the price of gold gained increased attention.
Long Treasury bonds were especially weak in the rising rate environment.
WHAT CHANGES DID YOU MAKE TO THE FUND'S HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
The Tactical Asset Allocation (TAA) Model, which seeks to enhance
portfolio returns by shifting assets between stocks and bonds, maintained a 15%
shift toward stocks throughout the six-month period. Since the shift was
originally implemented toward stocks, the Fund employed a hedged futures overlay
transaction, thus keeping the portfolio's underlying assets near their long-term
strategic allocation of 80% stocks and 20% bonds. With the shift toward stocks,
the portfolio maintained a long position in S&P 500 Index futures and a short
position in long-term Treasury bond futures. With the futures overlay, the Fund
maintained an effective target allocation of 95% stocks and 5% bonds during the
period.
During the period, a small position of 1.36% was initiated in the
Strategic Small Cap Value Portfolio. The source of funds for this investment was
a reduction in the Fund's position in the Small Company Value Portfolio. The
overall weighting in the small company value category was unchanged at 3.75%.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
With stocks significantly outperforming long Treasury bonds, maintaining
the 15% TAA Model shift toward stocks improved performance of the Fund during
the six-month period. While stocks have outperformed the broad bond market, the
TAA Model currently indicates that stocks remain attractive relative to bonds.
As a result, the Fund will keep its overweighted position in stocks until the
relative valuation between stocks and bonds returns to a more normal level.
BALANCED FUNDS MAY INVEST IN STOCKS AND BONDS. STOCKS SHOULD ONLY BE
CONSIDERED FOR LONG-TERM GOALS AS VALUES FLUCTUATE IN RESPONSE TO THE ACTIVITIES
OF INDIVIDUAL COMPANIES AND GENERAL MARKET AND ECONOMIC CONDITIONS. BOND VALUES
FLUCTUATE IN RESPONSE TO THE FINANCIAL CONDITION OF INDIVIDUAL ISSUERS, GENERAL
MARKET AND ECONOMIC CONDITIONS, AND CHANGES IN INTEREST RATES. IN GENERAL, WHEN
INTEREST RATES RISE, BOND VALUES FALL AND INVESTORS MAY LOSE PRINCIPAL VALUE.
INVESTMENT STRATEGIES THAT EMPHASIZE PARTICULAR MARKET SEGMENTS OR FEWER
SECURITIES TEND TO INCREASE THE TOTAL RISK OF AN INVESTMENT (RELATIVE TO THE
BROADER MARKET). THIS FUND IS EXPOSED TO SMALL COMPANY SECURITIES RISK AND
FOREIGN INVESTMENTS RISK. CONSULT THE FUND'S PROSPECTUS FOR ADDITIONAL
INFORMATION ON THESE AND OTHER RISKS.
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2006, and are those of the Fund's
managers. The views are subject to change at any time in response to changing
circumstances in the market and are not intended to predict or guarantee the
future performance of any individual security, market sector or the markets
generally, or the WELLS FARGO ADVANTAGE AGGRESSIVE ALLOCATION FUND.
1 The Fund's adviser has committed through January 31, 2007, to waive fees
and/or reimburse expenses to the extent necessary to maintain a certain net
operating expense ratio for the Fund. Actual reductions of operating expenses
can increase total return to shareholders. Without these reductions, the Fund's
returns would have been lower.
2
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE ALLOCATION FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
Life of
6-Month* 1-Year 5-Year Fund
- --------------------------------------------------------------------------------------------------------------------
Aggressive Allocation Fund - Administrator Class (Incept. Date 12/02/1997) 7.43 13.51 5.15 7.04
- --------------------------------------------------------------------------------------------------------------------
Benchmarks
- --------------------------------------------------------------------------------------------------------------------
S&P 500 Index 2 6.38 11.72 3.97 5.32
- --------------------------------------------------------------------------------------------------------------------
Lehman Brothers Aggregate Bond Index 3 (0.06) 2.26 5.11 5.85
- --------------------------------------------------------------------------------------------------------------------
Aggressive Allocation Composite Index 4 6.81 13.02 6.15 6.35
- --------------------------------------------------------------------------------------------------------------------
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
TEN LARGEST HOLDINGS 5,6 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
Microsoft Corporation 1.74%
- --------------------------------------------------------------------------------
Goldman Sachs Group Incorporated 1.39%
- --------------------------------------------------------------------------------
Exxon Mobil Corporation 1.32%
- --------------------------------------------------------------------------------
American International Group 1.10%
- --------------------------------------------------------------------------------
eBay Incorporated 1.10%
- --------------------------------------------------------------------------------
Medtronic Incorporated 0.99%
- --------------------------------------------------------------------------------
Bank of America Corporation 0.98%
- --------------------------------------------------------------------------------
Cisco Systems Incorporated 0.98%
- --------------------------------------------------------------------------------
General Electric Company 0.92%
- --------------------------------------------------------------------------------
Citigroup Incorporated 0.85%
DIVERSIFIED BOND STYLE CHARACTERISTICS 6 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
Average Credit Quality 7 AA
- --------------------------------------------------------------------------------
Average Maturity 6.71 years
- --------------------------------------------------------------------------------
Duration 5.00 years
- --------------------------------------------------------------------------------
NEUTRAL ALLOCATION 6 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTD BY A BAR CHART IN THE PRINTED MATERIAL.]
Stocks (80%)
Bonds (20%)
EFFECTIVE ALLOCATION 6 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTD BY A BAR CHART IN THE PRINTED MATERIAL.]
Stocks (95%)
Bonds (5%)
DIVERSIFIED EQUITY STYLE CHARACTERISTICS 6 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
Beta** 1.06
- --------------------------------------------------------------------------------
Dividend Yield 1.52%
- --------------------------------------------------------------------------------
Price to Earnings Ratio (trailing 12 months) 18.55x
- --------------------------------------------------------------------------------
Price to Book Ratio 3.26x
- --------------------------------------------------------------------------------
Median Market Cap ($B) $21.94
- --------------------------------------------------------------------------------
5-Year Earnings Growth (historic) 15.52%
- --------------------------------------------------------------------------------
Portfolio Turnover*** 43%
- --------------------------------------------------------------------------------
** A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE S&P 500 INDEX
BETA IS 1.00 BY DEFINITION.
*** THIS MEASURE IS BASED ON SIX MONTHS OF THE FUND'S ACTIVITY.
GROWTH OF $10,000 INVESTMENT 8 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
WELLS FARGO
ADVANTAGE AGGESSIVE
ALLOCATION FUND - LEHMAN BROTHERS
ADMINISTRATOR S&P 500 AGGREGATE BOND AGGRESSIVE ALLOCATION
CLASS INDEX INDEX COMPOSITE INDEX
- ---------- ----------------- -------- ---------------- ----------------------
12/2/1997 10,000 $10,000 $10,000 $10,000
12/31/1997 10,013 $10,172 $10,101 $10,160
1/31/1998 10,144 $10,284 $10,230 $10,283
2/28/1998 10,704 $11,025 $10,222 $10,863
3/31/1998 11,085 $11,590 $10,257 $11,277
4/30/1998 11,225 $11,708 $10,310 $11,374
5/31/1998 11,055 $11,507 $10,408 $11,202
6/30/1998 11,375 $11,974 $10,497 $11,490
7/31/1998 11,205 $11,847 $10,519 $11,354
8/31/1998 9,923 $10,135 $10,690 $10,039
9/30/1998 10,364 $10,785 $10,940 $10,511
10/31/1998 11,135 $11,662 $10,882 $11,168
11/30/1998 11,766 $12,368 $10,944 $11,705
12/31/1998 12,438 $13,081 $10,977 $12,251
1/31/1999 12,791 $13,627 $11,055 $12,543
2/28/1999 12,438 $13,204 $10,862 $12,154
3/31/1999 12,821 $13,732 $10,921 $12,519
4/30/1999 13,234 $14,263 $10,956 $13,012
5/31/1999 13,043 $13,927 $10,860 $12,754
6/30/1999 13,608 $14,699 $10,825 $13,246
7/31/1999 13,376 $14,241 $10,780 $13,008
8/31/1999 13,255 $14,170 $10,774 $12,907
9/30/1999 13,002 $13,782 $10,899 $12,738
10/31/1999 13,507 $14,654 $10,940 $13,309
11/30/1999 13,850 $14,951 $10,938 $13,605
12/31/1999 14,377 $15,832 $10,886 $14,318
1/31/2000 14,041 $15,037 $10,850 $13,809
2/29/2000 14,204 $14,753 $10,981 $13,947
3/31/2000 15,080 $16,196 $11,126 $14,788
4/30/2000 14,836 $15,709 $11,094 $14,351
5/31/2000 14,591 $15,386 $11,088 $14,068
6/30/2000 14,989 $15,767 $11,319 $14,444
7/31/2000 14,897 $15,521 $11,422 $14,231
8/31/2000 15,498 $16,484 $11,588 $14,967
9/30/2000 15,060 $15,614 $11,661 $14,449
10/31/2000 15,162 $15,548 $11,738 $14,298
11/30/2000 14,683 $14,323 $11,930 $13,410
12/31/2000 15,106 $14,393 $12,152 $13,672
1/31/2001 15,330 $14,904 $12,351 $14,069
2/28/2001 14,403 $13,547 $12,459 $13,081
3/31/2001 13,700 $12,689 $12,521 $12,395
4/30/2001 14,786 $13,674 $12,469 $13,193
5/31/2001 14,818 $13,765 $12,543 $13,218
6/30/2001 14,520 $13,431 $12,591 $13,015
7/31/2001 14,403 $13,299 $12,873 $12,892
8/31/2001 13,860 $12,468 $13,021 $12,374
9/30/2001 12,805 $11,462 $13,173 $11,498
10/31/2001 13,061 $11,681 $13,449 $11,780
11/30/2001 14,009 $12,577 $13,263 $12,417
12/31/2001 14,224 $12,687 $13,178 $12,547
1/31/2002 14,008 $12,502 $13,285 $12,376
2/28/2002 13,748 $12,261 $13,414 $12,237
3/31/2002 14,343 $12,722 $13,191 $12,647
4/30/2002 13,943 $11,951 $13,447 $12,269
5/31/2002 13,813 $11,864 $13,561 $12,200
6/30/2002 13,196 $11,019 $13,678 $11,574
7/31/2002 12,005 $10,161 $13,844 $10,803
8/31/2002 11,983 $10,227 $14,078 $10,871
9/30/2002 10,728 $9,116 $14,306 $10,000
10/31/2002 11,539 $9,917 $14,240 $10,589
11/30/2002 12,167 $10,500 $14,236 $11,094
12/31/2002 11,459 $9,884 $14,530 $10,666
1/31/2003 11,119 $9,626 $14,543 $10,432
2/28/2003 10,877 $9,482 $14,744 $10,310
3/31/2003 10,954 $9,573 $14,732 $10,356
4/30/2003 11,789 $10,362 $14,854 $11,080
5/31/2003 12,371 $10,907 $15,131 $11,667
6/30/2003 12,558 $11,046 $15,101 $11,804
7/31/2003 12,997 $11,241 $14,593 $11,954
8/31/2003 13,206 $11,460 $14,689 $12,192
9/30/2003 13,019 $11,338 $15,078 $12,208
10/31/2003 13,811 $11,979 $14,938 $12,783
11/30/2003 13,942 $12,084 $14,973 $12,943
12/31/2003 14,559 $12,718 $15,126 $13,497
1/31/2004 14,759 $12,952 $15,248 $13,740
2/29/2004 14,937 $13,132 $15,413 $13,932
3/31/2004 14,803 $12,933 $15,528 $13,855
4/30/2004 14,570 $12,730 $15,124 $13,545
5/31/2004 14,714 $12,905 $15,064 $13,673
6/30/2004 14,937 $13,155 $15,150 $13,922
7/31/2004 14,381 $12,720 $15,300 $13,532
8/31/2004 14,336 $12,770 $15,592 $13,621
9/30/2004 14,559 $12,908 $15,634 $13,820
10/31/2004 14,737 $13,106 $15,765 $14,052
11/30/2004 15,448 $13,637 $15,639 $14,595
12/31/2004 15,900 $14,100 $15,783 $15,045
1/31/2005 15,472 $13,756 $15,883 $14,753
2/28/2005 15,798 $14,045 $15,789 $15,024
3/31/2005 15,517 $13,797 $15,708 $14,779
4/30/2005 15,101 $13,534 $15,920 $14,545
5/31/2005 15,573 $13,965 $16,092 $14,956
6/30/2005 15,663 $13,984 $16,181 $15,069
7/31/2005 16,327 $14,505 $16,034 $15,520
8/31/2005 16,204 $14,373 $16,239 $15,502
9/30/2005 16,395 $14,489 $16,072 $15,639
10/31/2005 16,147 $14,247 $15,945 $15,359
11/30/2005 16,721 $14,786 $16,015 $15,826
12/31/2005 16,737 $14,791 $16,167 $15,950
1/31/2006 17,263 $15,183 $16,169 $16,446
2/28/2006 17,286 $15,224 $16,222 $16,473
3/31/2006 17,613 $15,413 $16,063 $16,704
- --------------------------------------------------------------------------------
The Fund is a gateway blended Fund that invests all of its assets in two
or more master portfolios of the Master Trust in varying proportions. References
to the investment activities of the Fund are intended to refer to the investment
activities of the master portfolios in which it invests.
Prior to April 11, 2005, the WELLS FARGO ADVANTAGE AGGRESSIVE ALLOCATION
FUND - Administrator Class was named the Wells Fargo Strategic Growth Allocation
Fund - Institutional Class. Performance shown for Administrator Class shares of
the Fund for periods prior to November 8, 1999, reflects the performance of the
Institutional Class shares of the Norwest Advantage Aggressive Balanced-Equity
Fund, its predecessor fund.
2 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.
3 The Lehman Brothers Aggregate Bond Index is composed of the Lehman Brothers
Government/Corporate Index and the 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 Aggressive Allocation Composite Index is weighted 20% in the S&P 500
Index, 20% in the Lehman Brothers Aggregate Bond Index, 20% in the Russell
1000(R) Value Index, 20% in the Russell 1000(R) Growth, 12% in the Morgan
Stanley Capital International Europe, Australasia and Far East ("MSCI/EAFE")
Index, and 8% in the Russell 2000(R) Index. The RUSSELL 1000(R) VALUE INDEX
measures the performance of those Russell 1000 companies with lower
price-to-book ratios and lower forecasted growth values. The RUSSELL 1000(R)
GROWTH INDEX measures the performance of those Russell 1000 companies with
higher price-to-book ratios and higher forecasted growth values. The MSCI EAFE
INDEX is an unmanaged group of securities widely regarded by investors to be
representations of the stock markets of Europe, Australasia and the Far East.
The RUSSELL 2000(R) INDEX measures the performance of the 2,000 smallest
companies in the Russell 3000 Index, which represents approximately 8% of the
total market capitalization of the Russell 3000 Index. You cannot invest
directly in an Index.
5 The Ten Largest Holdings are calculated based on the market value of the
Master Trust portfolio securities allocable to the Fund divided by the total
market value of the portfolio of investments of the Fund. See Notes to the
Financial Statements for a discussion of the Master Trust.
6 Style characteristics and portfolio holdings/allocations are subject to
change. Cash and cash equivalents are not reflected in the calculations of style
characteristics and portfolio holdings/allocations.
7 The average credit quality is compiled from ratings from Standard & Poor's
and/or Moody's Investors Service (together "rating agencies"). Standard & Poor's
is a trademark of McGraw-Hill, Inc., and has been licensed. The Fund is not
sponsored, sold or promoted by these rating agencies and these rating agencies
make no representation regarding the advisability of investing in the Fund.
8 The chart compares the performance of the WELLS FARGO ADVANTAGE AGGRESSIVE
ALLOCATION FUND Administrator Class shares for the life of the Fund with the S&P
500 Index, the Lehman Brothers Aggregate Bond Index and the Aggressive
Allocation Composite Index. The chart assumes a hypothetical $10,000 investment
in Administrator Class shares and reflects all operating expenses.
3
WELLS FARGO ADVANTAGE ALLOCATION FUNDS PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE ASSET ALLOCATION FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The WELLS FARGO ADVANTAGE ASSET ALLOCATION FUND (the Fund) seeks long-term
total return, consistent with reasonable risk.
ADVISER SUBADVISER
Wells Fargo Funds Management, LLC Wells Capital Management Incorporated
PORTFOLIO MANAGERS FUND INCEPTION DATE
Galen G. Blomster, CFA 11/13/1986
Gregory T. Genung, CFA
Jeffrey P. Mellas
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Class A shares returned 4.19% 1 (excluding sales charge) for
the six-month period that ended March 31, 2006, underperforming the S&P 500
Index 2, which returned 6.38%, outperforming the Lehman Brothers 20+ Treasury
Index 3, which returned (3.45)%, and outperforming the Asset Allocation
Composite Index 4, which returned 2.91%, during the same period.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB SITE -
WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. FOR CLASS
B SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%. PERFORMANCE
INCLUDING SALES CHARGE ASSUMES THE SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. ADMINISTRATOR CLASS SHARES ARE SOLD WITHOUT A FRONT-END SALES CHARGE OR
CONTINGENT DEFERRED SALES CHARGE. OTHER FEES AND EXPENSES APPLY TO AN INVESTMENT
IN THE FUND AND ARE DESCRIBED IN THE FUND'S CURRENT PROSPECTUS.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
The Fund's emphasis on stocks, which significantly outperformed bonds
during the six-month period, enabled the Fund to outperform all of its
benchmarks except for the S&P 500 Index. The economy and the stock market have
shown a lot of resilience over the past six months, despite the sharp increase
in commodity prices and continued monetary tightening by the Federal Reserve
Board. Sustained profit growth and a pickup in merger and acquisition activity,
combined with attractive stock market valuations, have been instrumental in the
increase in stock prices. While the stock market has benefited from the solid
traction by the economy, the bond market has had increased concern about the
impact of inflation, as bond yields have moved sharply higher. Core rates of
inflation remained low during the period. However, commodity prices continued to
surge and the sharp advance in the price of gold gained increased attention.
Long Treasury bonds were especially weak in the rising rate environment.
While the portfolio's exposure to long-term Treasury bonds hurt the Fund's
performance, maintaining the 25% Tactical Asset Allocation (TAA) Model from
long-term Treasury bonds toward stocks contributed positively to the performance
to the Fund.
WHAT CHANGES DID YOU MAKE TO THE FUND'S HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
The stock holdings of the Fund replicate the holdings of the S&P 500
Index, and the bond holdings of the Fund replicate the holdings of the Lehman
Brothers 20+ Treasury Index. The TAA Model, which seeks to enhance portfolio
returns by shifting assets between stocks and bonds, maintained a 25% shift
toward stocks throughout the six-month period. Since the shift was originally
implemented toward stocks, the Fund has employed a hedged futures overlay
transaction, thus keeping the portfolio's underlying assets near their long-term
strategic allocation of 60% stocks and 40% bonds. With the shift toward stocks,
the portfolio maintained a long position in S&P 500 Index futures and a short
position in long-term Treasury bond futures. Throughout the six-month period,
the Fund was at a maximum equity overweighting, with an effective target
allocation of 85% stocks and 15% bonds.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
With the securities that comprise the S&P 500 Index significantly
outperforming long Treasury bonds, maintaining the 25% TAA Model shift toward
stocks improved performance of the Fund during the six-month period. While
stocks have outperformed the broad bond market, the TAA Model currently
indicates that stocks remain attractive relative to bonds. As a result, the Fund
will keep its overweighted position in stocks until the relative valuation
between stocks and bonds returns to a more normal level.
BALANCED FUNDS MAY INVEST IN STOCKS AND BONDS. STOCKS SHOULD ONLY BE
CONSIDERED FOR LONG-TERM GOALS AS VALUES FLUCTUATE IN RESPONSE TO THE ACTIVITIES
OF INDIVIDUAL COMPANIES AND GENERAL MARKET AND ECONOMIC CONDITIONS. BOND VALUES
FLUCTUATE IN RESPONSE TO THE FINANCIAL CONDITION OF INDIVIDUAL ISSUERS, GENERAL
MARKET AND ECONOMIC CONDITIONS, AND CHANGES IN INTEREST RATES. IN GENERAL, WHEN
INTEREST RATES RISE, BOND VALUES FALL AND INVESTORS MAY LOSE PRINCIPAL VALUE.
CONSULT THE FUND'S PROSPECTUS FOR ADDITIONAL INFORMATION ON THESE AND OTHER
RISKS.
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2006 and are those of the Fund's
managers. The views are subject to change at any time in response to changing
circumstances in the market and are not intended to predict or guarantee the
future performance of any individual security, market sector or the markets
generally, or the WELLS FARGO ADVANTAGE ASSET ALLOCATION FUND.
1 The Fund's adviser has committed through January 31, 2007, to waive fees
and/or reimburse expenses to the extent necessary to maintain a certain net
operating expense ratio for the Fund. Actual reductions of operating expenses
can increase total return to shareholders. Without these reductions, the Fund's
returns would have been lower.
Performance shown for Class A, Class B and Class C shares of the WELLS
FARGO ADVANTAGE ASSET ALLOCATION FUND for periods prior to November 8, 1999,
reflects the performance of the applicable share class of the Stagecoach Asset
Allocation Fund (the accounting survivor of a merger of the Stagecoach Asset
Allocation Fund and the Stagecoach Balanced Fund), its predecessor fund.
Performance shown for Class C shares for periods prior to April 1, 1998,
reflects the performance of the Class B shares, adjusted to reflect Class C
sales charges and expenses. Performance shown for the Administrator Class
(formerly named Institutional Class) shares for periods prior to November 8,
1999, reflects the performance of the Class A shares of the Stagecoach Asset
Allocation Fund, its predecessor fund, adjusted to reflect Administrator Class
expenses.
2 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.
3 The Lehman Brothers 20+ Treasury Index is an unmanaged index composed of
securities in the U.S. Treasury Index with maturities of 20 years or greater.
You cannot invest directly in an Index.
4 The Asset Allocation Composite Index is weighted 60% in the S&P 500 Index and
40% in the Lehman Brothers 20+ year U.S. Treasury Bond Index. You cannot invest
directly in an Index.
4
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE ALLOCATION FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF MARCH 31, 2006)
- -------------------------------------------------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge
--------------------------------- ---------------------------------
6-Month* 1-Year 5-Year 10-Year 6-Month* 1-Year 5-Year 10-Year
- -------------------------------------------------------------------------------------------------------------------------
Asset Allocation Fund - Class A
(Incept. Date 11/13/1986) (1.80) 2.83 3.67 7.35 4.19 9.13 4.91 7.99
- -------------------------------------------------------------------------------------------------------------------------
Asset Allocation Fund - Class B
(Incept. Date 01/01/1995) (1.19) 3.29 3.76 7.24 3.81 8.29 4.10 7.24
- -------------------------------------------------------------------------------------------------------------------------
Asset Allocation Fund - Class C
(Incept. Date 04/01/1998) 2.81 7.25 4.10 7.24 3.81 8.25 4.10 7.24
- -------------------------------------------------------------------------------------------------------------------------
Asset Allocation Fund - Administrator Class
(Incept. Date 11/08/1999) 4.33 9.40 5.11 8.10
- -------------------------------------------------------------------------------------------------------------------------
Benchmarks
- -------------------------------------------------------------------------------------------------------------------------
S&P 500 Index 2 6.38 11.72 3.97 8.95
- -------------------------------------------------------------------------------------------------------------------------
Lehman Brothers 20+ Treasury Index 3 (3.45) 1.96 6.64 7.95
- -------------------------------------------------------------------------------------------------------------------------
Asset Allocation Composite Index 4 2.91 8.43 5.42 9.07
- -------------------------------------------------------------------------------------------------------------------------
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
TEN LARGEST HOLDINGS 5, 6 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
U.S. Treasury Bond, 6.13%, 11/15/2027 4.99%
- --------------------------------------------------------------------------------
U.S. Treasury Bond, 6.25%, 05/15/2030 4.16%
- --------------------------------------------------------------------------------
U.S. Treasury Bond, 5.38%, 02/15/2031 3.71%
- --------------------------------------------------------------------------------
U.S. Treasury Bond, 6.00%, 02/15/2026 3.06%
- --------------------------------------------------------------------------------
U.S. Treasury Bond, 6.88%, 08/15/2025 2.69%
- --------------------------------------------------------------------------------
U.S. Treasury Bond, 6.13%, 08/15/2029 2.56%
- --------------------------------------------------------------------------------
U.S. Treasury Bond, 6.50%, 11/15/2026 2.54%
- --------------------------------------------------------------------------------
U.S. Treasury Bond, 5.50%, 08/15/2028 2.49%
- --------------------------------------------------------------------------------
U.S. Treasury Bond, 5.25%, 02/15/2029 2.33%
- --------------------------------------------------------------------------------
U.S. Treasury Bond, 6.63%, 02/15/2027 2.26%
SECTOR DISTRIBUTION 6 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Discretionary 7%
Consumer Staples 6%
Energy 6%
Financials 14%
Health Care 8%
Industrials 8%
Information Technology 10%
Materials 2%
Telecommunication Services 2%
Utilities 2%
U.S. Treasury Securities 35%
NEUTRAL ALLOCATION 6 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTD BY A BAR CHART IN THE PRINTED MATERIAL.]
Stocks 60%
Bonds 40%
EFFECTIVE ALLOCATION 6 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTD BY A BAR CHART IN THE PRINTED MATERIAL.]
Stocks 85%
Bonds 15%
FUND CHARACTERISTICS 6 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
Beta** 0.82
- --------------------------------------------------------------------------------
Average Coupon of Bond Portfolio 5.82%
- --------------------------------------------------------------------------------
Average Maturity of Bond Portfolio 23.13 years
- --------------------------------------------------------------------------------
Modified Duration of Bond Portfolio 13.01 years
- --------------------------------------------------------------------------------
Average Credit Quality of Bond Portfolio 7 AAA
- --------------------------------------------------------------------------------
Portfolio Turnover*** 1%
** A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE S&P 500 INDEX
BETA IS 1.00 BY DEFINITION.
*** THIS MEASURE IS BASED ON SIX MONTHS OF THE FUND'S ACTIVITY.
GROWTH OF $10,000 INVESTMENT 8 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
WELLS FARGO WELLS FARGO LEHMAN BROTHERS
ADVANTAGE ASSET ADVANTAGE ASSET 20+ YEAR
ALLOCATION FUND - ALLOCATION FUND - TREASURY S&P 500 ASSET ALLOCATION
CLASS A ADMINISTRATOR CLASS INDEX INDEX COMPOSITE INDEX
----------------- ------------------- -------------- -------- -----------------
3/31/1996 9,423 10,000 $10,000 $10,000 $10,000
4/30/1996 9,432 10,010 $9,823 $10,147 $10,034
5/31/1996 9,513 10,096 $9,770 $10,408 $10,183
6/30/1996 9,620 10,209 $9,989 $10,447 $10,288
7/31/1996 9,406 9,982 $9,988 $9,986 $9,992
8/31/1996 9,397 9,972 $9,845 $10,196 $10,080
9/30/1996 9,764 10,362 $10,133 $10,769 $10,551
10/31/1996 10,099 10,718 $10,557 $11,067 $10,895
11/30/1996 10,637 11,288 $10,934 $11,902 $11,566
12/31/1996 10,369 11,004 $10,648 $11,666 $11,311
1/31/1997 10,579 11,227 $10,553 $12,396 $11,735
2/28/1997 10,604 11,253 $10,555 $12,492 $11,795
3/31/1997 10,246 10,873 $10,265 $11,980 $11,367
4/30/1997 10,644 11,296 $10,526 $12,694 $11,909
5/31/1997 11,003 11,677 $10,648 $13,466 $12,428
6/30/1997 11,318 12,011 $10,871 $14,069 $12,881
7/31/1997 12,112 12,854 $11,568 $15,188 $13,836
8/31/1997 11,577 12,286 $11,210 $14,337 $13,183
9/30/1997 12,052 12,790 $11,543 $15,121 $13,789
10/31/1997 12,037 12,774 $11,967 $14,616 $13,667
11/30/1997 12,427 13,188 $12,155 $15,293 $14,153
12/31/1997 12,651 13,426 $12,371 $15,556 $14,399
1/31/1998 12,840 13,626 $12,631 $15,727 $14,608
2/28/1998 13,451 14,275 $12,530 $16,861 $15,252
3/31/1998 13,942 14,796 $12,555 $17,724 $15,770
4/30/1998 14,037 14,897 $12,597 $17,905 $15,892
5/31/1998 13,970 14,826 $12,863 $17,597 $15,832
6/30/1998 14,489 15,377 $13,202 $18,312 $16,395
7/31/1998 14,344 15,222 $13,127 $18,118 $16,250
8/31/1998 12,953 13,746 $13,769 $15,500 $15,002
9/30/1998 13,685 14,524 $14,276 $16,493 $15,820
10/31/1998 14,491 15,379 $14,033 $17,834 $16,562
11/30/1998 15,207 16,138 $14,163 $18,915 $17,268
12/31/1998 15,887 16,860 $14,130 $20,004 $17,900
1/31/1999 16,444 17,451 $14,264 $20,840 $18,446
2/28/1999 15,850 16,821 $13,502 $20,192 $17,728
3/31/1999 16,301 17,299 $13,442 $21,000 $18,162
4/30/1999 16,772 17,799 $13,453 $21,813 $18,624
5/31/1999 16,425 17,431 $13,239 $21,298 $18,235
6/30/1999 16,885 17,920 $13,077 $22,480 $18,814
7/31/1999 16,512 17,523 $13,003 $21,778 $18,395
8/31/1999 16,418 17,424 $12,942 $21,670 $18,306
9/30/1999 16,184 17,175 $13,035 $21,076 $18,026
10/31/1999 16,766 17,793 $13,037 $22,410 $18,768
11/30/1999 16,911 17,946 $12,938 $22,865 $18,966
12/31/1999 17,395 18,461 $12,709 $24,212 $19,574
1/31/2000 17,029 18,065 $12,930 $22,997 $19,055
2/29/2000 17,153 18,197 $13,389 $22,562 $19,057
3/31/2000 18,395 19,522 $13,890 $24,769 $20,518
4/30/2000 17,983 19,084 $13,758 $24,023 $20,045
5/31/2000 17,681 18,764 $13,690 $23,531 $19,743
6/30/2000 18,097 19,205 $13,987 $24,112 $20,210
7/31/2000 18,030 19,135 $14,264 $23,736 $20,145
8/31/2000 18,874 20,030 $14,612 $25,210 $21,130
9/30/2000 18,119 19,228 $14,362 $23,879 $20,278
10/31/2000 18,164 19,275 $14,602 $23,778 $20,340
11/30/2000 17,390 18,455 $15,097 $21,905 $19,540
12/31/2000 17,566 18,643 $15,450 $22,012 $19,762
1/31/2001 18,010 19,114 $15,448 $22,793 $20,217
2/28/2001 16,832 17,863 $15,720 $20,717 $19,144
3/31/2001 16,002 16,983 $15,594 $19,405 $18,303
4/30/2001 16,772 17,799 $15,105 $20,911 $19,025
5/31/2001 16,885 17,911 $15,130 $21,051 $19,119
6/30/2001 16,636 17,655 $15,287 $20,540 $18,886
7/31/2001 16,718 17,742 $15,890 $20,339 $19,026
8/31/2001 16,124 17,112 $16,271 $19,067 $18,413
9/30/2001 15,307 16,234 $16,309 $17,529 $17,461
10/31/2001 15,773 16,737 $17,279 $17,863 $18,041
11/30/2001 16,312 17,310 $16,363 $19,234 $18,606
12/31/2001 16,303 17,300 $16,010 $19,403 $18,571
1/31/2002 16,181 17,170 $16,234 $19,120 $18,487
2/28/2002 16,006 16,985 $16,412 $18,751 $18,326
3/31/2002 16,205 17,196 $15,654 $19,456 $18,477
4/30/2002 15,775 16,749 $16,297 $18,277 $18,015
5/31/2002 15,696 16,665 $16,298 $18,143 $17,930
6/30/2002 15,165 16,102 $16,586 $16,851 $17,211
7/31/2002 14,388 15,278 $17,111 $15,539 $16,530
8/31/2002 14,538 15,447 $18,005 $15,640 $16,902
9/30/2002 13,286 14,110 $18,803 $13,941 $15,971
10/31/2002 14,191 15,079 $18,102 $15,167 $16,676
11/30/2002 14,884 15,813 $17,955 $16,058 $17,265
12/31/2002 14,197 15,084 $18,732 $15,116 $16,868
1/31/2003 13,867 14,743 $18,674 $14,721 $16,563
2/28/2003 13,706 14,573 $19,265 $14,500 $16,585
3/31/2003 13,792 14,671 $18,943 $14,640 $16,591
4/30/2003 14,751 15,689 $19,185 $15,846 $17,554
5/31/2003 15,504 16,498 $20,415 $16,679 $18,549
6/30/2003 15,602 16,597 $19,997 $16,893 $18,570
7/31/2003 15,567 16,568 $17,937 $17,190 $18,114
8/31/2003 15,863 16,883 $18,328 $17,525 $18,481
9/30/2003 15,816 16,844 $19,334 $17,340 $18,709
10/31/2003 16,485 17,555 $18,737 $18,319 $19,194
11/30/2003 16,602 17,689 $18,845 $18,481 $19,343
12/31/2003 17,341 18,478 $19,070 $19,449 $20,082
1/31/2004 17,646 18,802 $19,453 $19,807 $20,463
2/29/2004 17,876 19,057 $19,875 $20,082 $20,803
3/31/2004 17,683 18,853 $20,179 $19,779 $20,711
4/30/2004 17,267 18,410 $18,918 $19,468 $20,047
5/31/2004 17,433 18,597 $18,840 $19,735 $20,197
6/30/2004 17,719 18,904 $19,023 $20,118 $20,520
7/31/2004 17,254 18,408 $19,371 $19,452 $20,211
8/31/2004 17,403 18,567 $20,173 $19,530 $20,556
9/30/2004 17,575 18,753 $20,393 $19,741 $20,779
10/31/2004 17,827 19,032 $20,740 $20,043 $21,108
11/30/2004 18,342 19,590 $20,225 $20,855 $21,480
12/31/2004 18,945 20,237 $20,784 $21,564 $22,163
1/31/2005 18,676 19,949 $21,515 $21,037 $22,084
2/28/2005 18,955 20,257 $21,231 $21,479 $22,285
3/31/2005 18,631 19,914 $21,087 $21,099 $21,976
4/30/2005 18,438 19,708 $21,911 $20,698 $22,005
5/31/2005 19,018 20,337 $22,582 $21,356 $22,696
6/30/2005 19,108 20,435 $23,040 $21,386 $22,878
7/31/2005 19,584 20,954 $22,349 $22,182 $23,191
8/31/2005 19,526 20,892 $23,098 $21,980 $23,325
9/30/2005 19,513 20,882 $22,271 $22,158 $23,156
10/31/2005 19,142 20,496 $21,785 $21,788 $22,727
11/30/2005 19,767 21,163 $21,936 $22,612 $23,340
12/31/2005 19,854 21,263 $22,567 $22,621 $23,580
1/31/2006 20,221 21,666 $22,283 $23,220 $23,882
2/28/2006 20,320 21,772 $22,555 $23,283 $24,026
3/31/2006 20,331 21,787 $21,504 $23,571 $23,829
- --------------------------------------------------------------------------------
5 The Ten Largest Holdings are calculated based on the market value of the
securities divided by total market value of the Fund.
6 Fund characteristics, sector distribution, and portfolio holdings/allocations
are subject to change. Cash and cash equivalents are not reflected in the
calculations of fund characteristics, sector distribution, and portfolio
holdings/allocations.
7 The average credit quality is compiled from ratings from Standard & Poor's
and/or Moody's Investors Service (together "rating agencies"). Standard & Poor's
is a trademark of McGraw-Hill, Inc., and has been licensed. The Fund is not
sponsored, sold or promoted by these rating agencies and these rating agencies
make no representation regarding the advisability of investing in the Fund.
8 The chart compares the performance of the WELLS FARGO ADVANTAGE ASSET
ALLOCATION FUND Class A and Administrator Class shares for the most recent ten
years with the S&P 500 Index, the Lehman Brothers 20+ Treasury Index and the
Asset Allocation Composite Index. The chart assumes a hypothetical $10,000
investment in Class A and Administrator Class shares and reflects all operating
expenses and, for Class A shares, assumes the maximum initial sales charge of
5.75%.
5
WELLS FARGO ADVANTAGE ALLOCATION FUNDS PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE CONSERVATIVE ALLOCATION FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The WELLS FARGO ADVANTAGE CONSERVATIVE ALLOCATION FUND (the Fund) seeks to
provide a combination of current income and capital appreciation by diversifying
investments in bonds, other fixed income investments, and stocks.
ADVISER MASTER PORTFOLIO SUBADVISERS
Wells Fargo Funds Management, LLC Artisan Partners Limited Partnership
Cadence Capital Management LLC
Cooke & Bieler, L.P.
SUBADVISER Galliard Capital Management, Inc.
Wells Capital Management Incorporated LSV Asset Management
New Star Institutional Managers Limited
Peregrine Capital Management, Inc.
FUND MANAGERS Smith Asset Management Group, L.P.
Thomas C. Biwer, CFA SSgA Funds Management
Galen G. Blomster, CFA Systematic Financial Management, L.P.
Christian L. Chan, CFA Wells Capital Management Incorporated
Gregory T. Genung, CFA
Jeffrey P. Mellas
Andrew Owen, CFA
FUND INCEPTION DATE
04/30/1989
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Administrator Class shares returned 2.22% 1 for the six-month
period that ended March 31, 2006, underperforming the S&P 500 Index 2, which
returned 6.38%, outperforming the Lehman Brothers Aggregate Bond Index 3, which
returned (0.06)%, and outperforming the Conservative Allocation Composite Index
4, which returned 2.07%, during the same period.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED. CURRENT
MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB SITE -
WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
ADMINISTRATOR CLASS SHARES ARE SOLD WITHOUT A FRONT-END SALES CHARGE OR
CONTINGENT DEFERRED SALES CHARGE. OTHER FEES AND EXPENSES APPLY TO AN INVESTMENT
IN THE FUND AND ARE DESCRIBED IN THE FUND'S CURRENT PROSPECTUS.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
The Fund's emphasis on stocks, which significantly outperformed bonds
during the six-month period, enabled the Fund to outperform all of its
benchmarks except for the S&P 500 Index. The economy and the stock market have
shown a lot of resilience over the past six months, despite the sharp increase
in commodity prices and continued monetary tightening by the Federal Reserve
Board. Sustained profit growth and a pickup in merger and acquisition activity,
combined with attractive stock market valuations, have been instrumental in the
global increase in stock prices. International stocks and small cap stocks led
the broad increase in equity prices during the period. While the stock market
has benefited from the solid traction by the economy, the bond market has had
increased concern about the impact of inflation, as bond yields have moved
sharply higher. Core rates of inflation remained low during the period. However,
commodity prices continue to surge and the sharp advance in the price of gold
gained increased attention. Long Treasury bonds were especially weak in the
rising rate environment.
WHAT CHANGES DID YOU MAKE TO THE FUND'S HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
The Tactical Asset Allocation (TAA) Model, which seeks to enhance
portfolio returns by shifting assets between stocks and bonds, maintained a 5%
shift toward stocks throughout the six-month period. Since the shift was
originally implemented toward stocks, the Fund has employed a hedged futures
overlay transaction, thus keeping the portfolio's underlying assets near their
long-term strategic allocation of 20% stocks and 80% bonds. With the shift
toward stocks, the portfolio maintained a long position in S&P 500 Index futures
and a short position in long-term Treasury bond futures. With the futures
overlay, the Fund maintained an effective target allocation of 25% stocks and
75% bonds during the period.
During the period, a small position of 0.335% was initiated in the
Strategic Small Cap Value Portfolio. The source of funds for this investment was
a reduction in the Fund's position in the Small Company Value Portfolio. The
overall weighting in the small company value category was unchanged at 3.75%.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
With stocks significantly outperforming long Treasury bonds, the 5% TAA
Model shift toward stocks improved performance of the Fund during the six-month
period. While stocks have outperformed the broad bond market, the TAA Model
currently indicates that stocks remain attractive relative to bonds. As a
result, the Fund will keep its overweighted position in stocks until the
relative valuation between stocks and bonds returns to a more normal level.
BALANCED FUNDS MAY INVEST IN STOCKS AND BONDS. STOCKS SHOULD ONLY BE
CONSIDERED FOR LONG-TERM GOALS AS VALUES FLUCTUATE IN RESPONSE TO THE ACTIVITIES
OF INDIVIDUAL COMPANIES AND GENERAL MARKET AND ECONOMIC CONDITIONS. BOND VALUES
FLUCTUATE IN RESPONSE TO THE FINANCIAL CONDITION OF INDIVIDUAL ISSUERS, GENERAL
MARKET AND ECONOMIC CONDITIONS, AND CHANGES IN INTEREST RATES. IN GENERAL, WHEN
INTEREST RATES RISE, BOND VALUES FALL AND INVESTORS MAY LOSE PRINCIPAL VALUE.
INVESTMENT STRATEGIES THAT EMPHASIZE PARTICULAR MARKET SEGMENTS OR FEWER
SECURITIES TEND TO INCREASE THE TOTAL RISK OF AN INVESTMENT (RELATIVE TO THE
BROADER MARKET). CONSULT THE FUND'S PROSPECTUS FOR ADDITIONAL INFORMATION ON
THESE AND OTHER RISKS.
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2006, and are those of the Fund's
managers. The views are subject to change at any time in response to changing
circumstances in the market and are not intended to predict or guarantee the
future performance of any individual security, market sector or the markets
generally, or the WELLS FARGO ADVANTAGE CONSERVATIVE ALLOCATION FUND.
1 The Fund's adviser has committed through January 31, 2007, to waive fees
and/or reimburse expenses to the extent necessary to maintain a certain net
operating expense ratio for the Fund. Actual reductions of operating expenses
can increase total return to shareholders. Without these reductions, the Fund's
returns would have been lower.
6
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE ALLOCATION FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF MARCH 31, 2006)
- ----------------------------------------------------------------------------------------------------------------------
6-Month* 1-Year 5-Year 10-Year
- ----------------------------------------------------------------------------------------------------------------------
Conservative Allocation Fund - Administrator Class (Incept. Date 11/11/1994) 2.22 5.03 3.98 6.59
- ----------------------------------------------------------------------------------------------------------------------
Benchmarks
- ----------------------------------------------------------------------------------------------------------------------
S&P 500 Index 2 6.38 11.72 3.97 8.95
- ----------------------------------------------------------------------------------------------------------------------
Lehman Brothers Aggregate Bond Index 3 (0.06) 2.26 5.11 6.29
- ----------------------------------------------------------------------------------------------------------------------
Conservative Allocation Composite Index 4 2.07 5.09 4.88 6.51
- ----------------------------------------------------------------------------------------------------------------------
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
TEN LARGEST HOLDINGS 5,6 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
U.S. Treasury Bonds, 6.25%, 08/15/2023 1.19%
- --------------------------------------------------------------------------------
FHLMC, 6.50%, 02/25/2042 1.05%
- --------------------------------------------------------------------------------
GNMA, 6.99%, 08/16/2042 0.93%
- --------------------------------------------------------------------------------
FNMA, 5.50%, 04/25/2035 0.87%
- --------------------------------------------------------------------------------
Treasury Inflation Protected Notes, 2.38%, 01/15/2025 0.85%
- --------------------------------------------------------------------------------
FHLMC, 6.00%, 10/15/2021 0.84%
- --------------------------------------------------------------------------------
FNMA #725773, 5.50%, 09/01/2034 0.75%
- --------------------------------------------------------------------------------
FNMA, 4.50%, 09/25/2018 0.75%
- --------------------------------------------------------------------------------
FNMA #789463, 4.40%, 06/01/2034 0.73%
- --------------------------------------------------------------------------------
U.S. Treasury Bond, 7.25%, 08/15/2022 0.72%
DIVERSIFIED BOND STYLE CHARACTERISTICS 6 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
Average Credit Quality 7 AA
- --------------------------------------------------------------------------------
Average Maturity 6.71 years
- --------------------------------------------------------------------------------
Duration 5.00 years
NEUTRAL ALLOCATION 6 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
Stocks 20%
Bonds 80%
EFFECTIVE ALLOCATION 6 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
Stocks 25%
Bonds 75%
DIVERSIFIED EQUITY STYLE CHARACTERISTICS 6 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
Beta** 1.06
- --------------------------------------------------------------------------------
Dividend Yield 1.52%
- --------------------------------------------------------------------------------
Price to Earnings Ratio (trailing 12 months) 18.55x
- --------------------------------------------------------------------------------
Price to Book Ratio 3.26x
- --------------------------------------------------------------------------------
Median Market Cap ($B) $21.94
- --------------------------------------------------------------------------------
5-Year Earnings Growth (historic) 15.52%
- --------------------------------------------------------------------------------
Portfolio Turnover*** 94%
- --------------------------------------------------------------------------------
** A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE S&P 500 INDEX
BETA IS 1.00 BY DEFINITION.
*** THIS MEASURE IS BASED ON SIX MONTHS OF THE FUND'S ACTIVITY.
GROWTH OF $10,000 INVESTMENT 8 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
- --------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE CONSERVATIVE
CONSERVATIVE LEHMAN BROTHERS ALLOCATION
ALLOCATION FUND - S&P 500 AGGREGATE BOND COMPOSITE
ADMINISTRATOR CLASS INDEX INDEX INDEX
----------------------- --------- ---------------- -------------
3/31/1996 10,000 $10,000 $10,000 $10,000
4/30/1996 10,067 $10,147 $9,944 $10,020
5/31/1996 10,146 $10,408 $9,924 $10,058
6/30/1996 10,185 $10,447 $10,057 $10,142
7/31/1996 10,062 $9,986 $10,084 $10,070
8/31/1996 10,134 $10,196 $10,067 $10,124
9/30/1996 10,353 $10,769 $10,242 $10,338
10/31/1996 10,465 $11,067 $10,470 $10,514
11/30/1996 10,728 $11,902 $10,649 $10,765
12/31/1996 10,685 $11,666 $10,550 $10,693
1/31/1997 10,835 $12,396 $10,582 $10,814
2/28/1997 10,841 $12,492 $10,609 $10,848
3/31/1997 10,666 $11,980 $10,491 $10,709
4/30/1997 10,871 $12,694 $10,648 $10,905
5/31/1997 11,118 $13,466 $10,750 $11,127
6/30/1997 11,329 $14,069 $10,877 $11,315
7/31/1997 11,750 $15,188 $11,171 $11,655
8/31/1997 11,497 $14,337 $11,076 $11,502
9/30/1997 11,798 $15,121 $11,239 $11,742
10/31/1997 11,852 $14,616 $11,402 $11,757
11/30/1997 11,967 $15,293 $11,454 $11,870
12/31/1997 12,098 $15,556 $11,570 $11,993
1/31/1998 12,254 $15,727 $11,718 $12,126
2/28/1998 12,429 $16,861 $11,709 $12,301
3/31/1998 12,579 $17,724 $11,749 $12,454
4/30/1998 12,663 $17,905 $11,810 $12,528
5/31/1998 12,689 $17,597 $11,922 $12,554
6/30/1998 12,883 $18,312 $12,023 $12,704
7/31/1998 12,838 $18,118 $12,049 $12,695
8/31/1998 12,604 $15,500 $12,245 $12,454
9/30/1998 12,929 $16,493 $12,531 $12,771
10/31/1998 13,104 $17,834 $12,465 $12,953
11/30/1998 13,357 $18,915 $12,536 $13,150
12/31/1998 13,603 $20,004 $12,574 $13,337
1/31/1999 13,768 $20,840 $12,663 $13,477
2/28/1999 13,513 $20,192 $12,441 $13,259
3/31/1999 13,679 $21,000 $12,510 $13,414
4/30/1999 13,844 $21,813 $12,550 $13,580
5/31/1999 13,761 $21,298 $12,439 $13,463
6/30/1999 13,899 $22,480 $12,400 $13,584
7/31/1999 13,844 $21,778 $12,348 $13,509
8/31/1999 13,810 $21,670 $12,341 $13,490
9/30/1999 13,817 $21,076 $12,485 $13,543
10/31/1999 13,968 $22,410 $12,531 $13,731
11/30/1999 14,078 $22,865 $12,529 $13,816
12/31/1999 14,207 $24,212 $12,469 $13,973
1/31/2000 14,147 $22,997 $12,428 $13,838
2/29/2000 14,347 $22,562 $12,579 $13,974
3/31/2000 14,725 $24,769 $12,745 $14,294
4/30/2000 14,621 $24,023 $12,708 $14,186
5/31/2000 14,547 $23,531 $12,701 $14,128
6/30/2000 14,836 $24,112 $12,965 $14,396
7/31/2000 14,925 $23,736 $13,083 $14,428
8/31/2000 15,206 $25,210 $13,273 $14,731
9/30/2000 15,132 $23,879 $13,357 $14,671
10/31/2000 15,243 $23,778 $13,445 $14,699
11/30/2000 15,347 $21,905 $13,665 $14,615
12/31/2000 15,658 $22,012 $13,920 $14,856
1/31/2001 15,824 $22,793 $14,148 $15,126
2/28/2001 15,705 $20,717 $14,271 $14,942
3/31/2001 15,579 $19,405 $14,342 $14,810
4/30/01 15,840 $20,911 $14,282 $15,035
5/31/01 15,911 $21,051 $14,368 $15,108
6/30/01 15,871 $20,540 $14,422 $15,090
7/31/01 16,013 $20,339 $14,745 $15,247
8/31/01 15,958 $19,067 $14,915 $15,192
9/30/01 15,721 $17,529 $15,090 $15,046
10/31/2001 15,974 $17,863 $15,405 $15,319
11/30/2001 16,116 $19,234 $15,192 $15,427
12/31/2001 16,173 $19,403 $15,095 $15,427
1/31/2002 16,156 $19,120 $15,217 $15,441
2/28/2002 16,156 $18,751 $15,365 $15,481
3/31/2002 16,182 $19,456 $15,110 $15,476
4/30/2002 16,216 $18,277 $15,403 $15,534
5/31/2002 16,233 $18,143 $15,534 $15,586
6/30/2002 16,123 $16,851 $15,668 $15,473
7/31/2002 15,827 $15,539 $15,857 $15,322
8/31/2002 15,894 $15,640 $16,125 $15,480
9/30/2002 15,581 $13,941 $16,386 $15,311
10/31/2002 15,844 $15,167 $16,311 $15,508
11/30/2002 16,072 $16,058 $16,306 $15,693
12/31/2002 15,934 $15,116 $16,644 $15,718
1/31/2003 15,820 $14,721 $16,659 $15,641
2/28/2003 15,838 $14,500 $16,888 $15,709
3/31/2003 15,847 $14,640 $16,875 $15,727
4/30/2003 16,232 $15,846 $17,015 $16,071
5/31/2003 16,618 $16,679 $17,332 $16,438
6/30/2003 16,662 $16,893 $17,297 $16,478
7/31/2003 16,635 $17,190 $16,716 $16,252
8/31/2003 16,749 $17,525 $16,826 $16,390
9/30/2003 16,854 $17,340 $17,271 $16,625
10/31/2003 17,082 $18,319 $17,110 $16,741
11/30/2003 17,144 $18,481 $17,151 $16,814
12/31/2003 17,418 $19,449 $17,326 $17,092
1/31/2004 17,554 $19,807 $17,465 $17,244
2/29/2004 17,690 $20,082 $17,654 $17,405
3/31/2004 17,726 $19,779 $17,787 $17,451
4/30/2004 17,455 $19,468 $17,324 $17,119
5/31/2004 17,464 $19,735 $17,255 $17,124
6/30/2004 17,563 $20,118 $17,353 $17,251
7/31/2004 17,464 $19,452 $17,525 $17,224
8/31/2004 17,563 $19,530 $17,860 $17,428
9/30/2004 17,654 $19,741 $17,908 $17,515
10/31/2004 17,772 $20,043 $18,058 $17,669
11/30/2004 17,935 $20,855 $17,914 $17,766
12/31/2004 18,156 $21,564 $18,079 $17,992
1/31/2005 18,081 $21,037 $18,193 $17,966
2/28/2005 18,128 $21,479 $18,085 $17,997
3/31/2005 18,025 $21,099 $17,993 $17,885
4/30/2005 18,006 $20,698 $18,236 $17,950
5/31/2005 18,250 $21,356 $18,433 $18,188
6/30/2005 18,353 $21,386 $18,534 $18,279
7/31/2005 18,456 $22,182 $18,366 $18,335
8/31/2005 18,550 $21,980 $18,601 $18,465
9/30/2005 18,521 $22,158 $18,409 $18,414
10/31/2005 18,390 $21,788 $18,264 $18,267
11/30/2005 18,606 $22,612 $18,344 $18,460
12/31/2005 18,715 $22,621 $18,518 $18,602
1/31/2006 18,873 $23,220 $18,520 $18,758
2/28/2006 18,912 $23,283 $18,581 $18,808
3/31/2006 18,932 $23,571 $18,399 $18,796
The Fund is a gateway blended Fund that invests all of its assets in two
or more master portfolios of the Master Trust in varying proportions. References
to the investment activities of the Fund are intended to refer to the investment
activities of the master portfolios in which it invests.
Performance shown for the Administrator Class (formerly named
Institutional Class) shares for periods prior to November 8, 1999, reflects the
performance of the Institutional Class shares of Norwest Advantage Strategic
Income Fund, it predecessor fund.
2 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.
3 The Lehman Brothers Aggregate Bond Index is composed of the Lehman Brothers
Government/Corporate Index and the 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 Conservative Allocation Composite Index is weighted 5% in the S&P 500
Index, 55% in the Lehman Brothers Aggregate Bond Index, 25% in the Lehman
Brothers 9-12 Month U.S. Treasury Bond Index, 5% in the Russell 1000(R) Value
Index, 5% in the Russell 1000(R) Growth, 3% in the Morgan Stanley Capital
International Europe, Australasia and Far East ("MSCI/EAFE") Index, and 2% in
the Russell 2000(R) Index. The LEHMAN BROTHERS 9-12 MONTH U.S. TREASURY BOND
INDEX is an unmanaged index that includes aged U.S. Treasury bills, notes and
bonds with a remaining maturity from 1 up to (but not including) 12 months. It
excludes zero coupon strips. The RUSSELL 1000(R) VALUE INDEX measures the
performance of those Russell 1000 companies with lower price-to-book ratios and
lower forecasted growth values. The RUSSELL 1000(R) GROWTH INDEX measures the
performance of those Russell 1000 companies with higher price-to-book ratios and
higher forecasted growth values. The MSCI EAFE INDEX is an unmanaged group of
securities widely regarded by investors to be representations of the stock
markets of Europe, Australasia and the Far East. The RUSSELL 2000(R) INDEX
measures the performance of the 2,000 smallest companies in the Russell 3000
Index, which represents approximately 8% of the total market capitalization of
the Russell 3000 Index. You cannot invest directly in an Index.
5 The Ten Largest Holdings are calculated based on the market value of the
Master Trust portfolio securities allocable to the Fund divided by the total
market value of the portfolio of investments of the Fund. See Notes to the
Financial Statements for a discussion of the Master Trust.
6 Style characteristics and portfolio holdings/allocations are subject to
change. Cash and cash equivalents are not reflected in the calculations of style
characteristics and portfolio holdings/allocations.
7 The average credit quality is compiled from ratings from Standard & Poor's
and/or Moody's Investors Service (together "rating agencies"). Standard & Poor's
is a trademark of McGraw-Hill, Inc., and has been licensed. The Fund is not
sponsored, sold or promoted by these rating agencies and these rating agencies
make no representation regarding the advisability of investing in the Fund.
8 The chart compares the performance of the WELLS FARGO ADVANTAGE CONSERVATIVE
ALLOCATION FUND Administrator Class shares for the most recent ten years with
the S&P 500 Index, the Lehman Brothers Aggregate Bond Index and the Conservative
Allocation Composite Index. The chart assumes a hypothetical $10,000 investment
in Administrator Class shares and reflects all operating expenses.
7
WELLS FARGO ADVANTAGE ALLOCATION FUNDS PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE GROWTH BALANCED FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The WELLS FARGO ADVANTAGE GROWTH BALANCED FUND (the Fund) seeks to provide
a combination of current income and capital appreciation by diversifying
investments in stocks and bonds.
ADVISER MASTER PORTFOLIO SUBADVISERS
Wells Fargo Funds Management, LLC Artisan Partners Limited Partnership
Cadence Capital Management LLC
Cooke & Bieler, L.P.
SUBADVISER Galliard Capital Management, Inc.
Wells Capital Management Incorporated LSV Asset Management
New Star Institutional Managers Limited
Peregrine Capital Management, Inc.
FUND MANAGERS Smith Asset Management Group, L.P.
Thomas C. Biwer, CFA SSgA Funds Management
Galen G. Blomster, CFA Systematic Financial Management, L.P.
Christian L. Chan, CFA Wells Capital Management Incorporated
Gregory T. Genung, CFA
Jeffrey P. Mellas
Andrew Owen, CFA
FUND INCEPTION DATE
04/30/1989
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Class A shares returned 6.17% 1 (excluding sales charge), for
the six-month period that ended March 31, 2006, underperforming the S&P 500
Index 2, which returned 6.38%, outperforming the Lehman Brothers Aggregate Bond
Index 3, which returned (0.06)%, and outperforming the Growth Balanced Composite
Index 4, which returned 5.50%, during the same period.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB SITE -
WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. FOR CLASS
B SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%. PERFORMANCE
INCLUDING SALES CHARGE ASSUMES THE SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. ADMINISTRATOR CLASS SHARES ARE SOLD WITHOUT A FRONT-END SALES CHARGE OR
CONTINGENT DEFERRED SALES CHARGE. OTHER FEES AND EXPENSES APPLY TO AN INVESTMENT
IN THE FUND AND ARE DESCRIBED IN THE FUND'S CURRENT PROSPECTUS.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
The Fund's emphasis on stocks, which significantly outperformed bonds
during the six-month period, enabled the Fund to outperform all of its
benchmarks except for the S&P 500 Index. The economy and the stock market have
shown a lot of resilience over the past six months, despite the sharp increase
in commodity prices and continued monetary tightening by the Federal Reserve
Board. Sustained profit growth and a pickup in merger and acquisition activity,
combined with attractive stock market valuations, have been instrumental in the
global increase in stock prices. International stocks and small cap stocks led
the broad increase in equity prices during the period. While the stock market
benefited from the solid traction by the economy, the bond market has had
increased concern about the impact of inflation, as bond yields have moved
sharply higher. Core rates of inflation remain low during the period. However,
commodity prices continued to surge and the sharp advance in the price of gold
gained increased attention. Long Treasury bonds were especially weak in the
rising rate environment.
WHAT CHANGES DID YOU MAKE TO THE FUND'S HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
The Tactical Asset Allocation (TAA) Model, which seeks to enhance
portfolio returns by shifting assets between stocks and bonds, maintained a 15%
shift toward stocks throughout the six-month period. Since the shift was
originally implemented toward stocks, the Fund has employed a hedged futures
overlay transaction, thus keeping the portfolio's underlying assets near their
long-term strategic allocation of 65% stocks and 35% bonds. With the shift
toward stocks, the portfolio maintained a long position in S&P 500 Index futures
and a short position in long-term Treasury bond futures. With the futures
overlay, the Fund maintained an effective target allocation of 80% stocks and
20% bonds during the period.
During the period, a small position of 1.1% was initiated in the Strategic
Small Cap Value Portfolio. The source of funds for this investment was a
reduction in the Fund's position in the Small Company Value Portfolio. The
overall weighting in the small company value category was unchanged at 3.75%.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
With stocks significantly outperforming long Treasury bonds, maintaining
the 15% TAA Model shift toward stocks improved performance of the Fund during
the six-month period. While stocks have outperformed the broad bond market, the
TAA Model currently indicates that stocks remain attractive relative to bonds.
As a result, the Fund will keep its overweighted position in stocks until the
relative valuation between stocks and bonds returns to a more normal level.
BALANCED FUNDS MAY INVEST IN STOCKS AND BONDS. STOCKS SHOULD ONLY BE
CONSIDERED FOR LONG-TERM GOALS AS VALUES FLUCTUATE IN RESPONSE TO THE ACTIVITIES
OF INDIVIDUAL COMPANIES AND GENERAL MARKET AND ECONOMIC CONDITIONS. BOND VALUES
FLUCTUATE IN RESPONSE TO THE FINANCIAL CONDITION OF INDIVIDUAL ISSUERS, GENERAL
MARKET AND ECONOMIC CONDITIONS, AND CHANGES IN INTEREST RATES. IN GENERAL, WHEN
INTEREST RATES RISE, BOND VALUES FALL AND INVESTORS MAY LOSE PRINCIPAL VALUE.
INVESTMENT STRATEGIES THAT EMPHASIZE PARTICULAR MARKET SEGMENTS OR FEWER
SECURITIES TEND TO INCREASE THE TOTAL RISK OF AN INVESTMENT (RELATIVE TO THE
BROADER MARKET). THIS FUND IS EXPOSED TO SMALL COMPANY SECURITIES RISK AND
FOREIGN INVESTMENTS RISK. CONSULT THE FUND'S PROSPECTUS FOR ADDITIONAL
INFORMATION ON THESE AND OTHER RISKS.
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2006, and are those of the Fund's
managers. The views are subject to change at any time in response to changing
circumstances in the market and are not intended to predict or guarantee the
future performance of any individual security, market sector or the markets
generally, or the WELLS FARGO ADVANTAGE GROWTH BALANCED FUND.
1 The Fund's adviser has committed through January 31, 2007, to waive fees
and/or reimburse expenses to the extent necessary to maintain a certain net
operating expense ratio for the Fund. Actual reductions of operating expenses
can increase total return to shareholders. Without these reductions, the Fund's
returns would have been lower.
The Fund is a gateway blended Fund that invests all of its assets in two
or more master portfolios of the Master Trust in varying proportions. References
to the investment activities of the Fund are intended to refer to the investment
activities of the master portfolios in which it invests.
Performance shown for Class A, Class B, Class C and Administrator Class
(formerly named Institutional) shares of the WELLS FARGO ADVANTAGE GROWTH
BALANCED FUND for periods prior to November 8, 1999, reflects the performance of
the Class A, Class B, Class C and Institutional Class shares of the Norwest
Advantage Growth Balanced Fund, its predecessor fund. Performance shown for the
Class A shares for periods prior to October 14, 1998, reflects the performance
of the Administrator Class shares of the Fund, adjusted to reflect Class A sales
charges and expenses. Performance shown for the Class B and Class C shares of
the Fund for periods prior
8
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE ALLOCATION FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF MARCH 31, 2006)
- ----------------------------------------------------------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge
--------------------------------- ---------------------------------
6-Month* 1-Year 5-Year 10-Year 6-Month* 1-Year 5-Year 10-Year
- ----------------------------------------------------------------------------------------------------------------------------------
Growth Balanced Fund - Class A (Incept. Date 10/14/1998) 0.06 4.91 3.63 8.12 6.17 11.31 4.86 8.76
- ----------------------------------------------------------------------------------------------------------------------------------
Growth Balanced Fund - Class B (Incept. Date 10/01/1998) 0.78 5.51 3.74 7.96 5.78 10.51 4.08 7.96
- ----------------------------------------------------------------------------------------------------------------------------------
Growth Balanced Fund - Class C (Incept. Date 10/01/1998) 4.74 9.46 4.07 7.97 5.74 10.46 4.07 7.97
- ----------------------------------------------------------------------------------------------------------------------------------
Growth Balanced Fund - Administrator Class
(Incept. 11/11/1994) 6.30 11.60 5.12 8.95
- ----------------------------------------------------------------------------------------------------------------------------------
Benchmarks
S&P 500 Index 2 6.38 11.72 3.97 8.95
- ----------------------------------------------------------------------------------------------------------------------------------
Lehman Brothers Aggregate Bond Index 3 (0.06) 2.26 5.11 6.29
- ----------------------------------------------------------------------------------------------------------------------------------
Growth Balanced Composite Index 4 5.50 10.97 6.08 8.28
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
TEN LARGEST HOLDINGS 5,6 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
Microsoft Corporation 1.41%
- --------------------------------------------------------------------------------
Goldman Sachs Group Incorporated 1.12%
- --------------------------------------------------------------------------------
Exxon Mobil Corporation 1.07%
- --------------------------------------------------------------------------------
American International Group Incorporated 0.89%
- --------------------------------------------------------------------------------
eBay Incorporated 0.89%
- --------------------------------------------------------------------------------
Medtronic Incorporated 0.80%
- --------------------------------------------------------------------------------
Bank of America Corporation 0.79%
- --------------------------------------------------------------------------------
Cisco Systems Incorporated 0.79%
- --------------------------------------------------------------------------------
U.S. Treasury Bill, 4.16%, 05/11/2006 0.76%
- --------------------------------------------------------------------------------
U.S. Treasury Bond, 6.25%, 08/15/2023 0.76%
DIVERSIFIED BOND STYLE CHARACTERISTICS 6 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
Average Credit Quality 7 AA
- --------------------------------------------------------------------------------
AVERAGE MATURITY 6.71 YEARS
- --------------------------------------------------------------------------------
Duration 5.00 years
- --------------------------------------------------------------------------------
NEUTRAL ALLOCATION 6 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
Stocks 65%
Bonds 35%
EFFECTIVE ALLOCATION 6 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
Stocks 80%
Bonds 20%
DIVERSIFIED EQUITY STYLE CHARACTERISTICS 6 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
Beta** 1.06
- --------------------------------------------------------------------------------
Dividend Yield 1.52%
- --------------------------------------------------------------------------------
Price to Earnings Ratio (trailing 12 months) 18.55x
- --------------------------------------------------------------------------------
Price to Book Ratio 3.26x
- --------------------------------------------------------------------------------
Median Market Cap ($B) $21.94
- --------------------------------------------------------------------------------
5-Year Earnings Growth (historic) 15.52%
- --------------------------------------------------------------------------------
Portfolio Turnover*** 62%
- --------------------------------------------------------------------------------
** A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE S&P 500 INDEX
BETA IS 1.00 BY DEFINITION.
*** THIS MEASURE IS BASED ON SIX MONTHS OF THE FUND'S ACTIVITY.
GROWTH OF $10,000 INVESTMENT 8 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
WELLS FARGO
WELLS FARGO ADVANTAGE GROWTH LEHMAN GROWTH
ADVANTAGE GROWTH BALANCE FUND - BROTHERS BALANCE
BALANCE FUND - ADMINISTRATOR S&P 500 AGGREGATE COMPOSITE
CLASS A CLASS INDEX BOND INDEX INDEX
---------------- ---------------- ------- ---------- -----------
3/31/1996 9,425 10,000 $10,000 $10,000 $10,000
4/30/1996 9,586 10,172 $10,147 $9,944 $10,116
5/31/1996 9,732 10,326 $10,408 $9,924 $10,237
6/30/1996 9,736 10,330 $10,447 $10,057 $10,274
7/31/1996 9,425 10,000 $9,986 $10,084 $9,961
8/31/1996 9,553 10,136 $10,196 $10,067 $10,117
9/30/1996 9,932 10,538 $10,769 $10,242 $10,509
10/31/1996 10,002 10,633 $11,067 $10,470 $10,692
11/30/1996 10,480 11,117 $11,902 $10,649 $11,214
12/31/1996 10,388 11,022 $11,666 $10,550 $11,088
1/31/1997 10,734 11,389 $12,396 $10,582 $11,402
2/28/1997 10,734 11,389 $12,492 $10,609 $11,442
3/31/1997 10,397 11,032 $11,980 $10,491 $11,123
4/30/1997 10,743 11,398 $12,694 $10,648 $11,492
5/31/1997 11,271 11,959 $13,466 $10,750 $12,039
6/30/1997 11,676 12,388 $14,069 $10,877 $12,437
7/31/1997 12,340 13,093 $15,188 $11,171 $13,103
8/31/1997 11,853 12,576 $14,337 $11,076 $12,669
9/30/1997 12,386 13,141 $15,121 $11,239 $13,202
10/31/1997 12,145 12,885 $14,616 $11,402 $12,922
11/30/1997 12,364 13,132 $15,293 $11,454 $13,203
12/31/1997 12,547 13,312 $15,556 $11,570 $13,400
1/31/1998 12,712 13,487 $15,727 $11,718 $13,564
2/28/1998 13,278 14,088 $16,861 $11,709 $14,184
3/31/1998 13,673 14,507 $17,724 $11,749 $14,632
4/30/1998 13,824 14,667 $17,905 $11,810 $14,748
5/31/1998 13,683 14,517 $17,597 $11,922 $14,594
6/30/1998 14,034 14,890 $18,312 $12,023 $14,922
7/31/1998 13,863 14,708 $18,118 $12,049 $14,785
8/31/1998 12,624 13,394 $15,500 $12,245 $13,438
9/30/1998 13,146 13,948 $16,493 $12,531 $14,010
10/31/1998 13,923 14,771 $17,834 $12,465 $14,708
11/30/1998 14,651 15,547 $18,915 $12,536 $15,298
12/31/1998 15,353 16,299 $20,004 $12,574 $15,887
1/31/1999 15,741 16,715 $20,840 $12,663 $16,216
2/28/1999 15,320 16,272 $20,192 $12,441 $15,754
3/31/1999 15,703 16,676 $21,000 $12,510 $16,155
4/30/1999 16,105 17,108 $21,813 $12,550 $16,681
5/31/1999 15,897 16,895 $21,298 $12,439 $16,385
6/30/1999 16,469 17,501 $22,480 $12,400 $16,889
7/31/1999 16,226 17,244 $21,778 $12,348 $16,629
8/31/1999 16,095 17,113 $21,670 $12,341 $16,523
9/30/1999 15,853 16,857 $21,076 $12,485 $16,382
10/31/1999 16,367 17,408 $22,410 $12,531 $16,990
11/30/1999 16,731 17,796 $22,865 $12,529 $17,297
12/31/1999 17,214 18,318 $24,212 $12,469 $18,018
1/31/2000 16,933 18,017 $22,997 $12,428 $17,487
2/29/2000 17,172 18,276 $22,562 $12,579 $17,669
3/31/2000 18,063 19,226 $24,769 $12,745 $18,578
4/30/2000 17,808 18,960 $24,023 $12,708 $18,121
5/31/2000 17,568 18,707 $23,531 $12,701 $17,829
6/30/2000 18,011 19,185 $24,112 $12,965 $18,287
7/31/2000 17,990 19,161 $23,736 $13,083 $18,099
8/31/2000 18,615 19,833 $25,210 $13,273 $18,908
9/30/2000 18,209 19,409 $23,879 $13,357 $18,399
10/31/2000 18,344 19,550 $23,778 $13,445 $18,265
11/30/2000 18,032 19,220 $21,905 $13,665 $17,400
12/31/2000 18,521 19,749 $22,012 $13,920 $17,736
1/31/2001 18,769 20,012 $22,793 $14,148 $18,209
2/28/2001 17,896 19,088 $20,717 $14,271 $17,200
3/31/2001 17,215 18,362 $19,405 $14,342 $16,483
4/30/2001 18,319 19,544 $20,911 $14,282 $17,333
5/31/2001 18,375 19,614 $21,051 $14,368 $17,378
6/30/2001 18,082 19,300 $20,540 $14,422 $17,174
7/31/2001 18,009 19,229 $20,339 $14,745 $17,115
8/31/2001 17,508 18,696 $19,067 $14,915 $16,592
9/30/2001 16,427 17,547 $17,529 $15,090 $15,674
10/31/2001 16,742 17,887 $17,863 $15,405 $16,048
11/30/2001 17,716 18,927 $19,234 $15,192 $16,711
12/31/2001 17,938 19,168 $19,403 $15,095 $16,834
1/31/2002 17,720 18,932 $19,120 $15,217 $16,673
2/28/2002 17,455 18,655 $18,751 $15,365 $16,551
3/31/2002 18,044 19,290 $19,456 $15,110 $16,950
4/30/2002 17,673 18,898 $18,277 $15,403 $16,600
5/31/2002 17,555 18,776 $18,143 $15,534 $16,550
6/30/2002 16,943 18,122 $16,851 $15,668 $15,888
7/31/2002 15,670 16,764 $15,539 $15,857 $15,063
8/31/2002 15,647 16,744 $15,640 $16,125 $15,188
9/30/2002 14,292 15,293 $13,941 $16,386 $14,246
10/31/2002 15,140 16,211 $15,167 $16,311 $14,915
11/30/2002 15,859 16,980 $16,058 $16,306 $15,493
12/31/2002 15,083 16,151 $15,116 $16,644 $15,067
1/31/2003 14,700 15,745 $14,721 $16,659 $14,800
2/28/2003 14,443 15,470 $14,500 $16,888 $14,699
3/31/2003 14,521 15,559 $14,640 $16,875 $14,750
4/30/2003 15,471 16,584 $15,846 $17,015 $15,610
5/31/2003 16,147 17,307 $16,679 $17,332 $16,337
6/30/2003 16,356 17,534 $16,893 $17,297 $16,487
7/31/2003 16,834 18,050 $17,190 $16,716 $16,553
8/31/2003 17,074 18,312 $17,525 $16,826 $16,841
9/30/2003 16,900 18,126 $17,340 $17,271 $16,942
10/31/2003 17,755 19,048 $18,319 $17,110 $17,561
11/30/2003 17,905 19,213 $18,481 $17,151 $17,748
12/31/2003 18,587 19,953 $19,449 $17,326 $18,399
1/31/2004 18,812 20,199 $19,807 $17,465 $18,696
2/29/2004 19,013 20,417 $20,082 $17,654 $18,947
3/31/2004 18,892 20,291 $19,779 $17,787 $18,888
4/30/2004 18,575 19,953 $19,468 $17,324 $18,453
5/31/2004 18,715 20,115 $19,735 $17,255 $18,580
6/30/2004 18,959 20,382 $20,118 $17,353 $18,875
7/31/2004 18,380 19,763 $19,452 $17,525 $18,480
8/31/2004 18,361 19,742 $19,530 $17,860 $18,645
9/30/2004 18,593 19,995 $19,741 $17,908 $18,876
10/31/2004 18,800 20,220 $20,043 $18,058 $19,164
11/30/2004 19,544 21,023 $20,855 $17,914 $19,736
12/31/2004 20,039 21,563 $21,564 $18,079 $20,264
1/31/2005 19,585 21,080 $21,037 $18,193 $19,969
2/28/2005 19,921 21,448 $21,479 $18,085 $20,244
3/31/2005 19,610 21,116 $21,099 $17,993 $19,957
4/30/2005 19,200 20,677 $20,698 $18,236 $19,751
5/31/2005 19,709 21,232 $21,356 $18,433 $20,245
6/30/2005 19,827 21,361 $21,386 $18,534 $20,389
7/31/2005 20,498 22,089 $22,182 $18,366 $20,850
8/31/2005 20,399 21,988 $21,980 $18,601 $20,881
9/30/2005 20,561 22,169 $22,158 $18,409 $20,991
10/31/2005 20,281 21,873 $21,788 $18,264 $20,654
11/30/2005 20,896 22,536 $22,612 $18,344 $21,182
12/31/2005 20,946 22,596 $22,621 $18,518 $21,354
1/31/2006 21,490 23,185 $23,220 $18,520 $21,894
2/28/2006 21,510 23,216 $23,283 $18,581 $21,936
3/31/2006 21,828 23,565 $23,571 $18,399 $22,146
- --------------------------------------------------------------------------------
to October 1, 1998, reflects the performance of the Administrator Class shares
of the Fund adjusted to reflect Class B and Class C sales charges and expenses,
respectively.
2 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.
3 The Lehman Brothers Aggregate Bond Index is composed of the Lehman Brothers
Government/Corporate Index and the 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 Growth Balanced Allocation Composite Index is weighted 16.25% in the S&P
500 Index, 35% in the Lehman Brothers Aggregate Bond Index, 16.25% in the
Russell 1000 (R) Value Index, 16.25% in the Russell 1000 (R) Growth, 9.75% in
the Morgan Stanley Capital International Europe, Australasia and Far East
("MSCI/EAFE") Index, and 6.50% in the Russell 2000 (R) Index. The RUSSELL 1000
(R) VALUE INDEX measures the performance of those Russell 1000 companies with
lower price-to-book ratios and lower forecasted growth values. The RUSSELL 1000
(R) GROWTH INDEX measures the performance of those Russell 1000 companies with
higher price-to-book ratios and higher forecasted growth values. The MSCI EAFE
INDEX is an unmanaged group of securities widely regarded by investors to be
representations of the stock markets of Europe, Australasia and the Far East.
The RUSSELL 2000 (R) INDEX Measures the performance of the 2,000 smallest
companies in the Russell 3000 Index, which represents approximately 8% of the
total market capitalization of the Russell 3000 Index. You cannot invest
directly in an Index.
5 The Ten Largest Holdings are calculated based on the market value of the
Master Trust portfolio securities allocable to the Fund divided by the total
market value of the portfolio of investments of the Fund. See Notes to the
Financial Statements for a discussion of the Master Trust.
6 Style characteristics and portfolio holdings/allocations are subject to
change. Cash and cash equivalents are not reflected in the calculations of style
characteristics and portfolio holdings/allocations.
7 The average credit quality is compiled from ratings from Standard & Poor's
and/or Moody's Investors Service (together "rating agencies"). Standard & Poor's
is a trademark of McGraw-Hill, Inc., and has been licensed. The Fund is not
sponsored, sold or promoted by these rating agencies and these rating agencies
make no representation regarding the advisability of investing in the Fund.
8 The chart compares the performance of the WELLS FARGO ADVANTAGE GROWTH
BALANCED FUND Class A and Administrator Class shares for the most recent ten
years with the S&P 500 Index, the Lehman Brothers Aggregate Bond Index and the
Growth Balanced Composite Index. The chart assumes a hypothetical $10,000
investment in Class A and Administrator Class shares and reflects all operating
expenses and, for Class A shares, assumes the maximum initial sales charge of
5.75%.
9
WELLS FARGO ADVANTAGE ALLOCATION FUNDS PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE MODERATE BALANCED FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The WELLS FARGO ADVANTAGE MODERATE BALANCED FUND (the Fund) seeks to
provide a combination of current income and capital appreciation by diversifying
investments in stocks, bonds and other fixed income securities.
ADVISER MASTER PORTFOLIO SUBADVISERS
Wells Fargo Funds Management, LLC Artisan Partners Limited Partnership
Cadence Capital Management LLC
Cooke & Bieler, L.P.
SUBADVISER Galliard Capital Management, Inc.
Wells Capital Management Incorporated LSV Asset Management
New Star Institutional Managers Limited
Peregrine Capital Management, Inc.
FUND MANAGERS Smith Asset Management Group, L.P.
Thomas C. Biwer, CFA SSgA Funds Management
Galen G. Blomster, CFA Systematic Financial Management, L.P.
Christian L. Chan, CFA Wells Capital Management Incorporated
Gregory T. Genung, CFA
Jeffrey P. Mellas
Andrew Owen, CFA
FUND INCEPTION DATE
04/30/1989
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Class A shares returned 4.02% 1 (excluding sales charge) for
the six-month period that ended March 31, 2006, underperforming the S&P 500
Index 2, which returned 6.38%, outperforming the Lehman Brothers Aggregate Bond
Index 3, which returned (0.06)%, and outperforming the Moderate Balanced
Composite Index 4, which returned 3.61%, during the same period.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB SITE -
WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. FOR CLASS
B SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%. PERFORMANCE
INCLUDING SALES CHARGE ASSUMES THE SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. ADMINISTRATOR CLASS SHARES ARE SOLD WITHOUT A FRONT-END SALES CHARGE OR
CONTINGENT DEFERRED SALES CHARGE. OTHER FEES AND EXPENSES APPLY TO AN INVESTMENT
IN THE FUND AND ARE DESCRIBED IN THE FUND'S CURRENT PROSPECTUS.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
The Fund's emphasis on stocks, which significantly outperformed bonds
during the six-month period, enabled the Fund to outperform all of its
benchmarks except for the S&P 500 Index. The economy and the stock market have
shown a lot of resilience over the past six months, despite the sharp increase
in commodity prices and continued monetary tightening by the Federal Reserve
Board. Sustained profit growth and a pickup in merger and acquisition activity,
combined with attractive stock market valuations, have been instrumental in the
global increase in stock prices. International stocks and small cap stocks led
the broad increase in equity prices during the period. While the stock market
benefited from the solid traction by the economy, the bond market has had
increased concern about the impact of inflation, as bond yields have moved
sharply higher. Core rates of inflation remained low during the period. However,
commodity prices continue to surge and the sharp advance in the price of gold
gained increased attention. Long Treasury bonds were especially weak in the
rising rate environment.
WHAT CHANGES DID YOU MAKE TO THE FUND'S HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
The Tactical Asset Allocation (TAA) Model, which seeks to enhance
portfolio returns by shifting assets between stocks and bonds, maintained a 10%
shift toward stocks throughout the six-month period. Since the shift was
originally implemented toward stocks, the Fund has employed a hedged futures
overlay transaction, thus keeping the portfolio's underlying assets near their
long-term strategic allocation of 40% stocks and 60% bonds. With the shift
toward stocks, the portfolio maintained a long position in S&P 500 Index futures
and a short position in long-term Treasury bond futures. With the futures
overlay, the Fund maintained an effective target allocation of 50% stocks and
50% bonds during the period.
During the period, a small position of 0.68% was initiated in the
Strategic Small Cap Value Portfolio. The source of funds for this investment was
a reduction in the Fund's position in the Small Company Value Portfolio. The
overall weighting in the small company value category was unchanged at 3.75%.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
With stocks significantly outperforming long Treasury bonds, maintaining
the 10% TAA Model shift toward stocks improved performance of the Fund during
the six-month period. While stocks have outperformed the broad bond market, the
TAA Model currently indicates that stocks remain attractive relative to bonds.
As a result, the Fund will keep its overweighted position in stocks until the
relative valuation between stocks and bonds returns to a more normal level.
BALANCED FUNDS MAY INVEST IN STOCKS AND BONDS. STOCKS SHOULD ONLY BE
CONSIDERED FOR LONG-TERM GOALS AS VALUES FLUCTUATE IN RESPONSE TO THE ACTIVITIES
OF INDIVIDUAL COMPANIES AND GENERAL MARKET AND ECONOMIC CONDITIONS. BOND VALUES
FLUCTUATE IN RESPONSE TO THE FINANCIAL CONDITION OF INDIVIDUAL ISSUERS, GENERAL
MARKET AND ECONOMIC CONDITIONS, AND CHANGES IN INTEREST RATES. IN GENERAL, WHEN
INTEREST RATES RISE, BOND VALUES FALL AND INVESTORS MAY LOSE PRINCIPAL VALUE.
INVESTMENT STRATEGIES THAT EMPHASIZE PARTICULAR MARKET SEGMENTS OR FEWER
SECURITIES TEND TO INCREASE THE TOTAL RISK OF AN INVESTMENT (RELATIVE TO THE
BROADER MARKET). CONSULT THE FUND'S PROSPECTUS FOR ADDITIONAL INFORMATION ON
THESE AND OTHER RISKS.
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2006 and are those of the Fund's
managers. The views are subject to change at any time in response to changing
circumstances in the market and are not intended to predict or guarantee the
future performance of any individual security, market sector or the markets
generally, or the WELLS FARGO ADVANTAGE MODERATE BALANCED FUND.
1 The Fund's adviser has committed through January 31, 2007, to waive fees
and/or reimburse expenses to the extent necessary to maintain a certain net
operating expense ratio for the Fund. Actual reductions of operating expenses
can increase total return to shareholders. Without these reductions, the Fund's
returns would have been lower.
The Fund is a gateway blended Fund that invests all of its assets in two
or more master portfolios of the Master Trust in varying proportions. References
to the investment activities of the Fund are intended to refer to the investment
activities of the master portfolios in which it invests.
Performance shown for Class A, Class B and Class C shares of the WELLS
FARGO ADVANTAGE MODERATE BALANCED FUND for periods prior to January 30, 2004,
reflects the performance of the Institutional Class shares of the Fund, adjusted
to reflect applicable sales charges and expenses. Performance shown for the
Administrator Class (formerly Institutional Class) shares for periods prior to
November 8, 1999, reflects the performance of the Institutional Class shares of
the Norwest Advantage Moderate Balanced Fund, its predecessor fund.
10
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE ALLOCATION FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF MARCH 31, 2006)
- -----------------------------------------------------------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge
---------------------------------------------------------------------
6-Month* 1-Year 5-Year 10-Year 6-Month* 1-Year 5-Year 10-Year
- -----------------------------------------------------------------------------------------------------------------------------------
Moderate Balanced Fund - Class A (Incept. Date 01/30/2004) (1.96) 1.55 3.14 6.79 4.02 7.75 4.37 7.43
- -----------------------------------------------------------------------------------------------------------------------------------
Moderate Balanced Fund - Class B (Incept. Date 01/30/2004) (1.39) 1.91 3.24 6.63 3.61 6.91 3.59 6.63
- -----------------------------------------------------------------------------------------------------------------------------------
Moderate Balanced Fund - Class C (Incept. Date 01/30/2004) 2.59 5.88 3.58 6.63 3.59 6.88 3.58 6.63
- -----------------------------------------------------------------------------------------------------------------------------------
Moderate Balanced Fund - Administrator Class
(Incept. Date 11/11/1994) 4.12 7.99 4.62 7.69
- -----------------------------------------------------------------------------------------------------------------------------------
Benchmarks
- -----------------------------------------------------------------------------------------------------------------------------------
S&P 500 Index 2 6.38 11.72 3.97 8.95
- -----------------------------------------------------------------------------------------------------------------------------------
Lehman Brothers Aggregate Bond Index 3 (0.06) 2.26 5.11 6.29
- -----------------------------------------------------------------------------------------------------------------------------------
Moderate Balanced Composite Index 4 3.61 7.69 5.44 7.34
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
TEN LARGEST HOLDINGS 5,6 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
U.S. Treasury Bond, 6.25%, 08/15/2023 0.97%
- --------------------------------------------------------------------------------
Microsoft Corporation 0.87%
- --------------------------------------------------------------------------------
FHLMC, 6.50%, 02/25/2042 0.86%
- --------------------------------------------------------------------------------
GNMA, 6.99%, 08/16/2042 0.76%
- --------------------------------------------------------------------------------
FNMA, 5.50%, 04/25/2035 0.71%
- --------------------------------------------------------------------------------
Goldman Sachs Group Incorporated 0.69%
- --------------------------------------------------------------------------------
Treasury Inflation Protected Notes, 2.38%, 01/15/2025 0.69%
- --------------------------------------------------------------------------------
FHLMC, 6.00%, 10/15/2021 0.68%
- --------------------------------------------------------------------------------
Exxon Mobil Corporation 0.66%
- --------------------------------------------------------------------------------
U.S. Treasury Bill, 4.13%, 05/11/2006 0.64%
DIVERSIFIED BOND STYLE CHARACTERISTICS 6 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
Average Credit Quality 7 AA
- --------------------------------------------------------------------------------
Average Maturity 6.71 years
- --------------------------------------------------------------------------------
Duration 5.00 years
- --------------------------------------------------------------------------------
NEUTRAL ALLOCATION 6 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
Stocks 40%
Bonds 60%
EFFECTIVE ALLOCATION 6 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
Stocks 50%
Bonds 50%
DIVERSIFIED EQUITY STYLE CHARACTERISTICS 5 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
Beta** 1.06
- --------------------------------------------------------------------------------
Dividend Yield 1.52%
- --------------------------------------------------------------------------------
Price to Earnings Ratio (trailing 12 months) 18.55x
- --------------------------------------------------------------------------------
Price to Book Ratio 3.26x
- --------------------------------------------------------------------------------
Median Market Cap ($B) $21.94
- --------------------------------------------------------------------------------
5-Year Earnings Growth (historic) 15.52%
- --------------------------------------------------------------------------------
Portfolio Turnover*** 78%
- --------------------------------------------------------------------------------
** A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE S&P 500 INDEX
BETA IS 1.00 BY DEFINITION.
*** THIS MEASURE IS BASED ON SIX MONTHS OF THE FUND'S ACTIVITY.
GROWTH OF $10,000 INVESTMENT 8 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
LEHMAN MODERATE
WELLS FARGO ADVANTAGE WELLS FARGO ADVANTAGE BROTHERS BALANCEd
MODERATE BALANCED MODERATE BALANCED S&P 500 AGGREGATE COMPOSITE
FUND-CLASS A ADMINISTRATOR CLASS INDEX BOND INDEX INDEX
- ---------- ---------------------- --------------------- -------- ----------- -----------
3/31/1996 9,425 10,000 $10,000 $10,000 $10,000
4/30/1996 9,528 10,111 $10,147 $9,944 $10,064
5/31/1996 9,625 10,217 $10,408 $9,924 $10,139
6/30/1996 9,652 10,247 $10,447 $10,057 $10,202
7/31/1996 9,460 10,045 $9,986 $10,084 $10,023
8/31/1996 9,548 10,141 $10,196 $10,067 $10,124
9/30/1996 9,816 10,428 $10,769 $10,242 $10,416
10/31/1996 9,914 10,534 $11,067 $10,470 $10,593
11/30/1996 10,235 10,877 $11,902 $10,649 $10,962
12/31/1996 10,175 10,816 $11,666 $10,550 $10,868
1/31/1997 10,403 11,060 $12,396 $10,582 $11,074
2/28/1997 10,411 11,071 $12,492 $10,609 $11,110
3/31/1997 10,184 10,832 $11,980 $10,491 $10,895
4/30/1997 10,431 11,097 $12,694 $10,648 $11,166
5/31/1997 10,758 11,447 $13,466 $10,750 $11,528
6/30/1997 11,025 11,734 $14,069 $10,877 $11,804
7/31/1997 11,520 12,264 $15,188 $11,171 $12,280
8/31/1997 11,184 11,909 $14,337 $11,076 $12,011
9/30/1997 11,560 12,311 $15,121 $11,239 $12,374
10/31/1997 11,478 12,227 $14,616 $11,402 $12,264
11/30/1997 11,630 12,391 $15,293 $11,454 $12,448
12/31/1997 11,774 12,547 $15,556 $11,570 $12,602
1/31/1998 11,925 12,710 $15,727 $11,718 $12,747
2/28/1998 12,262 13,072 $16,861 $11,709 $13,109
3/31/1998 12,506 13,334 $17,724 $11,749 $13,384
4/30/1998 12,613 13,451 $17,905 $11,810 $13,475
5/31/1998 12,561 13,398 $17,597 $11,922 $13,427
6/30/1998 12,811 13,667 $18,312 $12,023 $13,650
7/31/1998 12,710 13,562 $18,118 $12,049 $13,589
8/31/1998 12,058 12,868 $15,500 $12,245 $12,894
9/30/1998 12,454 13,293 $16,493 $12,531 $13,318
10/31/1998 12,855 13,725 $17,834 $12,465 $13,720
11/30/1998 13,279 14,180 $18,915 $12,536 $14,081
12/31/1998 13,714 14,648 $20,004 $12,574 $14,432
1/31/1999 13,973 14,928 $20,840 $12,663 $14,649
2/28/1999 13,656 14,592 $20,192 $12,441 $14,335
3/31/1999 13,910 14,866 $21,000 $12,510 $14,591
4/30/1999 14,174 15,152 $21,813 $12,550 $14,902
5/31/1999 14,037 15,009 $21,298 $12,439 $14,715
6/30/1999 14,331 15,326 $22,480 $12,400 $14,990
7/31/1999 14,206 15,195 $21,778 $12,348 $14,844
8/31/1999 14,139 15,127 $21,670 $12,341 $14,791
9/30/1999 14,049 15,033 $21,076 $12,485 $14,766
10/31/1999 14,325 15,332 $22,410 $12,531 $15,123
11/30/1999 14,525 15,550 $22,865 $12,529 $15,297
12/31/1999 14,778 15,824 $24,212 $12,469 $15,678
1/31/2000 14,636 15,675 $22,997 $12,428 $15,390
2/29/2000 14,842 15,899 $22,562 $12,579 $15,544
3/31/2000 15,396 16,495 $24,769 $12,745 $16,095
4/30/2000 15,241 16,332 $24,023 $12,708 $15,853
5/31/2000 15,111 16,197 $23,531 $12,701 $15,705
6/30/2000 15,443 16,556 $24,112 $12,965 $16,047
7/31/2000 15,490 16,610 $23,736 $13,083 $15,993
8/31/2000 15,879 17,031 $25,210 $13,273 $16,495
9/30/2000 15,693 16,834 $23,879 $13,357 $16,261
10/31/2000 15,809 16,963 $23,778 $13,445 $16,225
11/30/2000 15,775 16,929 $21,905 $13,665 $15,830
12/31/2000 16,145 17,330 $22,012 $13,920 $16,109
1/31/2001 16,321 17,522 $22,793 $14,148 $16,462
2/28/2001 15,918 17,093 $20,717 $14,271 $15,945
3/31/2001 15,583 16,738 $19,405 $14,342 $15,572
4/30/01 16,180 17,382 $20,911 $14,282 $16,061
5/31/01 16,245 17,456 $21,051 $14,368 $16,123
6/30/01 16,097 17,300 $20,540 $14,422 $16,028
7/31/01 16,149 17,359 $20,339 $14,745 $16,093
8/31/01 15,911 17,108 $19,067 $14,915 $15,841
9/30/01 15,344 16,501 $17,529 $15,090 $15,367
10/31/2001 15,602 16,782 $17,863 $15,405 $15,681
11/30/2001 16,094 17,315 $19,234 $15,192 $16,034
12/31/2001 16,219 17,453 $19,403 $15,095 $16,088
1/31/2002 16,113 17,342 $19,120 $15,217 $16,026
2/28/2002 15,991 17,215 $18,751 $15,365 $15,996
3/31/2002 16,261 17,509 $19,456 $15,110 $16,167
4/30/2002 16,125 17,366 $18,277 $15,403 $16,050
5/31/2002 16,085 17,326 $18,143 $15,534 $16,057
6/30/2002 15,772 16,993 $16,851 $15,668 $15,706
7/31/2002 15,076 16,247 $15,539 $15,857 $15,257
8/31/2002 15,088 16,263 $15,640 $16,125 $15,398
9/30/2002 14,334 15,453 $13,941 $16,386 $14,878
10/31/2002 14,875 16,041 $15,167 $16,311 $15,296
11/30/2002 15,306 16,509 $16,058 $16,306 $15,661
12/31/2002 14,889 16,062 $15,116 $16,644 $15,481
1/31/2003 14,656 15,814 $14,721 $16,659 $15,317
2/28/2003 14,538 15,690 $14,500 $16,888 $15,305
3/31/2003 14,573 15,731 $14,640 $16,875 $15,339
4/30/2003 15,199 16,410 $15,846 $17,015 $15,922
5/31/2003 15,686 16,940 $16,679 $17,332 $16,450
6/30/2003 15,806 17,072 $16,893 $17,297 $16,540
7/31/2003 16,025 17,312 $17,190 $16,716 $16,449
8/31/2003 16,190 17,495 $17,525 $16,826 $16,653
9/30/2003 16,156 17,461 $17,340 $17,271 $16,826
10/31/2003 16,650 18,000 $18,319 $17,110 $17,166
11/30/2003 16,746 18,107 $18,481 $17,151 $17,289
12/31/2003 17,178 18,578 $19,449 $17,326 $17,728
1/31/2004 17,342 18,759 $19,807 $17,465 $17,941
2/29/2004 17,501 18,931 $20,082 $17,654 $18,140
3/31/2004 17,461 18,897 $19,779 $17,787 $18,140
4/30/2004 17,191 18,604 $19,468 $17,324 $17,767
5/31/2004 17,254 18,681 $19,735 $17,255 $17,825
6/30/2004 17,414 18,854 $20,118 $17,353 $18,023
7/31/2004 17,103 18,526 $19,452 $17,525 $17,838
8/31/2004 17,151 18,570 $19,530 $17,860 $18,023
9/30/2004 17,286 18,733 $19,741 $17,908 $18,172
10/31/2004 17,437 18,897 $20,043 $18,058 $18,383
11/30/2004 17,843 19,336 $20,855 $17,914 $18,684
12/31/2004 18,160 19,690 $21,564 $18,079 $19,037
1/31/2005 17,934 19,438 $21,037 $18,193 $18,897
2/28/2005 18,101 19,627 $21,479 $18,085 $19,032
3/31/2005 17,909 19,429 $21,099 $17,993 $18,848
4/30/2005 17,726 19,230 $20,698 $18,236 $18,797
5/31/2005 18,068 19,600 $21,356 $18,433 $19,143
6/30/2005 18,160 19,708 $21,386 $18,534 $19,256
7/31/2005 18,502 20,088 $22,182 $18,366 $19,484
8/31/2005 18,510 20,097 $21,980 $18,601 $19,572
9/30/2005 18,552 20,151 $22,158 $18,409 $19,590
10/31/2005 18,368 19,952 $21,788 $18,264 $19,365
11/30/2005 18,744 20,358 $22,612 $18,344 $19,699
12/31/2005 18,821 20,445 $22,621 $18,518 $19,853
1/31/2006 19,126 20,786 $23,220 $18,520 $20,170
2/28/2006 19,153 20,825 $23,283 $18,581 $20,217
3/31/2006 19,297 20,980 $23,571 $18,399 $20,298
- --------------------------------------------------------------------------------
2 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.
3 The Lehman Brothers U.S. Aggregate Bond Index is composed of the Lehman
Brothers Government/Corporate Index and the 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 Moderate Balanced Allocation Composite Index is weighted 10% in the S&P
500 Index, 45% in the Lehman Brothers Aggregate Bond Index, 15% in the Lehman
Brothers 9-12 Month U.S. Treasury Bond Index, 10% in the Russell 1000 (R) Value
Index, 10% in the Russell 1000 (R) Growth, 6% in the Morgan Stanley Capital
International Europe, Australasia and Far East ("MSCI/EAFE") Index, and 4% in
the Russell 2000 (R) Index. The LEHMAN BROTHERS 9-12 MONTH U.S. TREASURY BOND
INDEX is an unmanaged index that includes aged U.S. Treasury bills, notes and
bonds with a remaining maturity from 1 up to (but not including) 12 months. It
excludes zero coupon strips. The RUSSELL 1000 (R) VALUE INDEX measures the
performance of those Russell 1000 companies with lower price-to-booK ratios and
lower forecasted growth values. The RUSSELL 1000 (R) GROWTH INDEX measures the
performance of those Russell 1000 companies with higheR price-to-book ratios and
higher forecasted growth values. The MSCI EAFE INDEX is an unmanaged group of
securities widely regarded by investors to be representations of the stock
markets of Europe, Australasia and the Far East. The RUSSELL 2000 (R) INDEX
Measures the performance of the 2,000 smallesT companies in the Russell 3000
Index, which represents approximately 8% of the total market capitalization of
the Russell 3000 Index. You cannot invest directly in an Index.
5 The Ten Largest Holdings are calculated based on the market value of the
Master Trust portfolio securities allocable to the Fund divided by the total
market value of the portfolio of investments of the Fund. See Notes to the
Financial Statements for a discussion of the Master Trust.
6 Style characteristics and portfolio holdings/allocations are subject to
change. Cash and cash equivalents are not reflected in the calculations of style
characteristics and portfolio holdings/allocations.
7 The average credit quality is compiled from ratings from Standard & Poor's
and/or Moody's Investors Service (together "rating agencies"). Standard & Poor's
is a trademark of McGraw-Hill, Inc., and has been licensed. The Fund is not
sponsored, sold or promoted by these rating agencies and these rating agencies
make no representation regarding the advisability of investing in the Fund.
8 The chart compares the performance of the WELLS FARGO ADVANTAGE MODERATE
BALANCED FUND Class A and Administrator Class shares for the most recent ten
years with the S&P 500 Index, the Lehman Brothers U.S. Aggregate Bond Index and
the Moderate Balanced Composite Index. The chart assumes a hypothetical $10,000
investment in Class A and Administrator Class shares and reflects all operating
expenses and, for Class A shares, assumes the maximum initial sales charge of
5.75%.
11
WELLS FARGO ADVANTAGE ALLOCATION FUNDS FUND EXPENSES (UNAUDITED)
- --------------------------------------------------------------------------------
As a shareholder of the Fund, you incur two types of costs: (1)
transaction costs, including sales charges (loads) on purchase payments,
redemption fees (if any) and exchange fees (if any); and (2) ongoing costs,
including management fees; distribution [and/or service] (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 period and held for the entire period (October 1, 2005 to March 31,
2006).
ACTUAL EXPENSES
The "Actual" line of the table below provides information about actual
account values and actual expenses. You may use the information in this line,
together with the amount you invested, to estimate the expenses that you paid
over the period. Simply divide your account value by $1,000 (for example, an
$8,600 account value divided by $1,000 = 8.6), then multiply the result by the
number in the "Actual" line under the heading entitled "Expenses Paid During
Period" for your applicable class of shares to estimate the expenses you paid on
your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The "Hypothetical" line of the table below provides information about
hypothetical account values and hypothetical expenses based on the Fund's actual
expense ratio and an assumed rate of return of 5% per year before expenses,
which is not the Fund's actual return. The hypothetical account values and
expenses may not be used to estimate the actual ending account balance or
expenses you paid for the period. You may use this information to compare the
ongoing costs of investing in the Fund and other funds. To do so, compare this
5% hypothetical example with the 5% hypothetical examples that appear in the
shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight
your ongoing costs only and do not reflect any transactional costs, such as
sales charges (loads), redemption fees, or exchange fees. Therefore, the
"Hypothetical" line of the table is useful in comparing ongoing costs only, and
will not help you determine the relative total costs of owning different funds.
In addition, if these transactional costs were included, your costs would have
been higher.
Beginning Ending
Account Account Expenses
Value Value Paid During Net Annual
10/01/2005 03/31/2006 Period* Expense Ratio
Aggressive Allocation Fund
- ----------------------------------------------------------------------------------------------------------------
Aggressive Allocation Fund - Administrator Class
Actual $1,000.00 $1,074.30 $ 5.17 1.00%
- ----------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,019.95 $ 5.04 1.00%
Asset Allocation Fund
- ----------------------------------------------------------------------------------------------------------------
Asset Allocation Fund - Class A
Actual $1,000.00 $1,041.90 $ 5.85 1.15%
- ----------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,019.20 $ 5.79 1.15%
- ----------------------------------------------------------------------------------------------------------------
Asset Allocation Fund - Class B
Actual $1,000.00 $1,038.10 $ 9.65 1.90%
- ----------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,015.46 $ 9.55 1.90%
- ----------------------------------------------------------------------------------------------------------------
Asset Allocation Fund - Class C
Actual $1,000.00 $1,038.10 $ 9.65 1.90%
- ----------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,015.46 $ 9.55 1.90%
- ----------------------------------------------------------------------------------------------------------------
Asset Allocation Fund - Administrator Class
Actual $1,000.00 $1,043.30 $ 4.58 0.90%
- ----------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,020.44 $ 4.53 0.90%
Conservative Allocation Fund
- ----------------------------------------------------------------------------------------------------------------
Conservative Allocation Fund - Administrator Class
Actual $1,000.00 $1,022.20 $ 4.29 0.85%
- ----------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,020.69 $ 4.28 0.85%
12
FUND EXPENSES (UNAUDITED) WELLS FARGO ADVANTAGE ALLOCATION FUNDS
- --------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses
Value Value Paid During Net Annual
10/01/2005 03/31/2006 Period* Expense Ratio
Growth Balanced Fund
- ----------------------------------------------------------------------------------------------------------------
Growth Balanced Fund - Class A
Actual $1,000.00 $1,061.70 $ 6.17 1.20%
- ----------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,018.95 $ 6.04 1.20%
- ----------------------------------------------------------------------------------------------------------------
Growth Balanced Fund - Class B
Actual $1,000.00 $1,057.80 $10.00 1.95%
- ----------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,015.21 $ 9.80 1.95%
- ----------------------------------------------------------------------------------------------------------------
Growth Balanced Fund - Class C
Actual $1,000.00 $1,057.40 $10.00 1.95%
- ----------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,015.21 $ 9.80 1.95%
- ----------------------------------------------------------------------------------------------------------------
Growth Balanced Fund - Administrator Class
Actual $1,000.00 $1,063.00 $ 4.89 0.95%
- ----------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,020.19 $ 4.78 0.95%
Moderate Balanced Fund
- ----------------------------------------------------------------------------------------------------------------
Moderate Balanced Fund - Class A
Actual $1,000.00 $1,040.20 $ 5.85 1.15%
- ----------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,019.20 $ 5.79 1.15%
- ----------------------------------------------------------------------------------------------------------------
Moderate Balanced Fund - Class B
Actual $1,000.00 $1,036.10 $ 9.64 1.90%
- ----------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,015.46 $ 9.55 1.90%
- ----------------------------------------------------------------------------------------------------------------
Moderate Balanced Fund - Class C
Actual $1,000.00 $1,035.90 $ 9.64 1.90%
- ----------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,015.46 $ 9.55 1.90%
- ----------------------------------------------------------------------------------------------------------------
Moderate Balanced Fund - Administrator Class
Actual $1,000.00 $1,041.20 $ 4.58 0.90%
- ----------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,020.44 $ 4.53 0.90%
* Expenses are equal to the Fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by the number of days in the
most recent fiscal half-year divided by the number of days in the fiscal year
(to reflect the one-half year period).
13
WELLS FARGO ADVANTAGE ALLOCATION FUNDS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
AGGRESSIVE ALLOCATION FUND
- --------------------------------------------------------------------------------
FACE/SHARE
AMOUNT SECURITY NAME VALUE
INVESTMENTS IN AFFILIATED MASTER PORTFOLIOS - 99.20%
N/A WELLS FARGO ADVANTAGE C&B LARGE CAP VALUE PORTFOLIO $ 14,204,368
N/A WELLS FARGO ADVANTAGE DISCIPLINED GROWTH PORTFOLIO 8,538,973
N/A WELLS FARGO ADVANTAGE EQUITY INCOME PORTFOLIO 14,158,428
N/A WELLS FARGO ADVANTAGE EQUITY VALUE PORTFOLIO 14,199,831
N/A WELLS FARGO ADVANTAGE INDEX PORTFOLIO 42,512,981
N/A WELLS FARGO ADVANTAGE INFLATION-PROTECTED BOND PORTFOLIO 4,279,705
N/A WELLS FARGO ADVANTAGE INTERNATIONAL CORE PORTFOLIO 6,462,117
N/A WELLS FARGO ADVANTAGE INTERNATIONAL GROWTH PORTFOLIO 6,531,158
N/A WELLS FARGO ADVANTAGE INTERNATIONAL INDEX PORTFOLIO 6,464,355
N/A WELLS FARGO ADVANTAGE INTERNATIONAL VALUE PORTFOLIO 6,467,740
N/A WELLS FARGO ADVANTAGE LARGE CAP APPRECIATION PORTFOLIO 4,282,274
N/A WELLS FARGO ADVANTAGE LARGE COMPANY GROWTH PORTFOLIO 29,932,578
N/A WELLS FARGO ADVANTAGE MANAGED FIXED INCOME PORTFOLIO 29,953,781
N/A WELLS FARGO ADVANTAGE SMALL CAP INDEX PORTFOLIO 5,847,581
N/A WELLS FARGO ADVANTAGE SMALL COMPANY GROWTH PORTFOLIO 5,800,622
N/A WELLS FARGO ADVANTAGE SMALL COMPANY VALUE PORTFOLIO 2,898,451
N/A WELLS FARGO ADVANTAGE STRATEGIC SMALL CAP VALUE PORTFOLIO 2,953,262
N/A WELLS FARGO ADVANTAGE TOTAL RETURN BOND PORTFOLIO 8,560,185
TOTAL INVESTMENTS IN AFFILIATED MASTER PORTFOLIOS (COST $187,189,416) $ 214,048,390
---------------
PRINCIPAL INTEREST RATE MATURITY DATE
SHORT-TERM INVESTMENTS - 0.87%
US TREASURY BILLS - 0.87%
$ 1,700,000 US TREASURY BILL^# 4.13% 05/11/2006 1,692,124
180,000 US TREASURY BILL^# 4.48 08/10/2006 177,077
1,869,201
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $1,869,699) 1,869,201
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $189,059,115) 100.07% $ 215,917,591
OTHER ASSETS AND LIABILITIES, NET (0.07) (149,451)
------- ---------------
TOTAL NET ASSETS 100.00% $ 215,768,140
======= ===============
^ ZERO COUPON BOND. INTEREST RATE PRESENTED IS YIELD TO MATURITY.
# SECURITY PLEDGED AS COLLATERAL FOR FUTURES TRANSACTIONS.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
14
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE ALLOCATION FUNDS
- --------------------------------------------------------------------------------
ASSET ALLOCATION FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 58.46%
AMUSEMENT & RECREATION SERVICES - 0.13%
10,336 HARRAH'S ENTERTAINMENT INCORPORATED<< $ 805,795
18,932 INTERNATIONAL GAME TECHNOLOGY 666,785
1,472,580
---------------
APPAREL & ACCESSORY STORES - 0.23%
32,227 GAP INCORPORATED 602,000
19,357 KOHL'S CORPORATION+ 1,026,115
19,552 LIMITED BRANDS 478,242
12,274 NORDSTROM INCORPORATED 480,895
2,587,252
---------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS - 0.07%
6,412 JONES APPAREL GROUP INCORPORATED 226,793
5,902 LIZ CLAIBORNE INCORPORATED 241,864
4,948 VF CORPORATION 281,541
750,198
---------------
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS - 0.05%
10,170 AUTONATION INCORPORATED+ 219,163
3,101 AUTOZONE INCORPORATED+ 309,139
528,302
---------------
AUTOMOTIVE REPAIR, SERVICES & PARKING - 0.01%
3,415 RYDER SYSTEM INCORPORATED 152,924
---------------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS - 0.19%
6,893 CENTEX CORPORATION 427,297
15,261 D.R. HORTON INCORPORATED 506,970
4,315 KB HOME<< 280,389
7,696 LENNAR CORPORATION CLASS A<< 464,685
12,013 PULTE HOMES INCORPORATED<< 461,539
2,140,880
---------------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS - 0.72%
119,277 HOME DEPOT INCORPORATED 5,045,417
43,904 LOWE'S COMPANIES INCORPORATED 2,829,174
6,227 SHERWIN-WILLIAMS COMPANY<< 307,863
8,182,454
---------------
BUSINESS SERVICES - 3.78%
33,679 ADOBE SYSTEMS INCORPORATED 1,176,071
6,599 AFFILIATED COMPUTER SERVICES INCORPORATED CLASS A+ 393,696
12,959 AUTODESK INCORPORATED+ 499,181
32,542 AUTOMATIC DATA PROCESSING INCORPORATED 1,486,519
11,949 BMC SOFTWARE INCORPORATED+<< 258,815
25,619 CA INCORPORATED<< 697,093
15
WELLS FARGO ADVANTAGE ALLOCATION FUNDS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSET ALLOCATION FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
BUSINESS SERVICES (CONTINUED)
56,608 CENDANT CORPORATION $ 982,149
10,021 CITRIX SYSTEMS INCORPORATED+ 379,796
10,471 COMPUTER SCIENCES CORPORATION+ 581,664
21,493 COMPUWARE CORPORATION+ 168,290
7,851 CONVERGYS CORPORATION+ 142,967
64,768 EBAY INCORPORATED+ 2,529,838
17,057 ELECTRONIC ARTS INCORPORATED+<< 933,359
28,889 ELECTRONIC DATA SYSTEMS CORPORATION 775,092
7,266 EQUIFAX INCORPORATED 270,586
43,072 FIRST DATA CORPORATION 2,016,631
10,359 FISERV INCORPORATED+ 440,775
11,349 GOOGLE INCORPORATED CLASS A+ 4,426,110
11,187 IMS HEALTH INCORPORATED 288,289
24,173 INTERPUBLIC GROUP OF COMPANIES INCORPORATED+<< 231,094
9,935 INTUIT INCORPORATED+ 528,443
498,982 MICROSOFT CORPORATION 13,577,300
7,099 MONSTER WORLDWIDE INCORPORATED+<< 353,956
10,219 NCR CORPORATION+ 427,052
21,866 NOVELL INCORPORATED+<< 167,931
10,039 OMNICOM GROUP INCORPORATED 835,747
211,586 ORACLE CORPORATION+ 2,896,612
6,237 PARAMETRIC TECHNOLOGY CORPORATION+ 101,853
9,629 ROBERT HALF INTERNATIONAL INCORPORATED 371,776
194,332 SUN MICROSYSTEMS INCORPORATED+ 996,923
58,581 SYMANTEC CORPORATION+ 985,918
19,201 UNISYS CORPORATION+ 132,295
13,732 VERISIGN INCORPORATED+ 329,431
70,854 YAHOO! INCORPORATED+<< 2,285,750
42,669,002
---------------
CHEMICALS & ALLIED PRODUCTS - 5.74%
86,392 ABBOTT LABORATORIES 3,669,068
12,500 AIR PRODUCTS & CHEMICALS INCORPORATED 839,875
4,241 ALBERTO-CULVER COMPANY CLASS B 187,579
65,618 AMGEN INCORPORATED+ 4,773,710
6,202 AVERY DENNISON CORPORATION 362,693
25,295 AVON PRODUCTS INCORPORATED<< 788,445
5,938 BARR PHARMACEUTICALS INCORPORATED+<< 373,975
19,320 BIOGEN IDEC INCORPORATED+ 909,972
110,000 BRISTOL-MYERS SQUIBB COMPANY 2,707,100
6,141 CHIRON CORPORATION+<< 281,319
8,428 CLOROX COMPANY 504,416
28,936 COLGATE-PALMOLIVE COMPANY 1,652,246
54,320 DOW CHEMICAL COMPANY 2,205,392
51,655 E.I. DU PONT DE NEMOURS & COMPANY 2,180,358
4,583 EASTMAN CHEMICAL COMPANY 234,558
16
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE ALLOCATION FUNDS
- --------------------------------------------------------------------------------
ASSET ALLOCATION FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
CHEMICALS & ALLIED PRODUCTS (CONTINUED)
10,243 ECOLAB INCORPORATED $ 391,283
63,447 ELI LILLY & COMPANY<< 3,508,619
6,690 ESTEE LAUDER COMPANIES INCORPORATED CLASS A<< 248,801
18,298 FOREST LABORATORIES INCORPORATED+ 816,640
14,587 GENZYME CORPORATION+ 980,538
25,957 GILEAD SCIENCES INCORPORATED+ 1,615,045
9,031 HOSPIRA INCORPORATED+ 356,363
4,432 INTERNATIONAL FLAVORS & FRAGRANCES INCORPORATED 152,106
13,592 KING PHARMACEUTICALS INCORPORATED+ 234,462
14,343 MEDIMMUNE INCORPORATED+ 524,667
122,801 MERCK & COMPANY INCORPORATED 4,326,279
15,125 MONSANTO COMPANY 1,281,844
12,274 MYLAN LABORATORIES INCORPORATED 287,212
413,144 PFIZER INCORPORATED 10,295,548
9,283 PPG INDUSTRIES INCORPORATED 588,078
18,123 PRAXAIR INCORPORATED 999,483
184,681 PROCTER & GAMBLE COMPANY 10,641,319
8,086 ROHM & HAAS COMPANY 395,163
83,071 SCHERING-PLOUGH CORPORATION 1,577,518
3,754 SIGMA-ALDRICH CORPORATION 246,976
75,469 WYETH 3,661,756
64,800,406
---------------
COMMUNICATIONS - 2.33%
21,784 ALLTEL CORPORATION 1,410,514
217,846 AT&T INCORPORATED<< 5,890,556
23,416 AVAYA INCORPORATED+<< 264,601
100,946 BELLSOUTH CORPORATION 3,497,779
7,355 CENTURYTEL INCORPORATED<< 287,728
29,019 CLEAR CHANNEL COMMUNICATIONS INCORPORATED 841,841
120,082 COMCAST CORPORATION CLASS A+<< 3,141,345
87,102 QWEST COMMUNICATIONS INTERNATIONAL INCORPORATED+<< 592,294
166,610 SPRINT NEXTEL CORPORATION 4,305,202
12,554 UNIVISION COMMUNICATIONS INCORPORATED CLASS A+<< 432,736
164,339 VERIZON COMMUNICATIONS INCORPORATED 5,597,386
26,261,982
---------------
DEPOSITORY INSTITUTIONS - 6.02%
19,403 AMSOUTH BANCORPORATION 524,851
260,800 BANK OF AMERICA CORPORATION 11,876,832
43,309 BANK OF NEW YORK COMPANY INCORPORATED 1,560,856
30,063 BB&T CORPORATION 1,178,470
280,258 CITIGROUP INCORPORATED<< 13,239,388
9,140 COMERICA INCORPORATED 529,846
6,939 COMPASS BANCSHARES INCORPORATED 351,183
31,197 FIFTH THIRD BANCORP 1,227,914
7,074 FIRST HORIZON NATIONAL CORPORATION 294,632
17
WELLS FARGO ADVANTAGE ALLOCATION FUNDS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSET ALLOCATION FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
DEPOSITORY INSTITUTIONS (CONTINUED)
14,377 GOLDEN WEST FINANCIAL CORPORATION $ 976,198
13,966 HUNTINGTON BANCSHARES INCORPORATED 337,000
195,711 JP MORGAN CHASE & COMPANY 8,149,406
22,749 KEYCORP 837,163
4,455 M&T BANK CORPORATION 508,494
11,784 MARSHALL & ILSLEY CORPORATION 513,547
23,266 MELLON FINANCIAL CORPORATION 828,270
30,735 NATIONAL CITY CORPORATION 1,072,651
26,709 NORTH FORK BANCORPORATION INCORPORATED 770,020
10,401 NORTHERN TRUST CORPORATION 546,053
16,408 PNC FINANCIAL SERVICES GROUP 1,104,422
25,623 REGIONS FINANCIAL CORPORATION 901,161
20,054 SOVEREIGN BANCORP INCORPORATED 439,383
18,697 STATE STREET CORPORATION 1,129,860
20,818 SUNTRUST BANKS INCORPORATED 1,514,718
17,589 SYNOVUS FINANCIAL CORPORATION 476,486
101,118 US BANCORP 3,084,099
91,105 WACHOVIA CORPORATION 5,106,435
55,675 WASHINGTON MUTUAL INCORPORATED<< 2,372,868
94,100 WELLS FARGO & COMPANY++ 6,010,167
5,860 ZIONS BANCORPORATION 484,798
67,947,171
---------------
EATING & DRINKING PLACES - 0.34%
7,384 DARDEN RESTAURANTS INCORPORATED 302,966
70,559 MCDONALD'S CORPORATION 2,424,407
6,419 WENDY'S INTERNATIONAL INCORPORATED 398,363
15,487 YUM! BRANDS INCORPORATED 756,695
3,882,431
---------------
EDUCATIONAL SERVICES - 0.04%
7,895 APOLLO GROUP INCORPORATED CLASS A+ 414,566
---------------
ELECTRIC, GAS & SANITARY SERVICES - 2.12%
36,833 AES CORPORATION+ 628,371
9,162 ALLEGHENY ENERGY INCORPORATED+ 310,134
12,312 ALLIED WASTE INDUSTRIES INCORPORATED+ 150,699
11,496 AMEREN CORPORATION<< 572,731
22,107 AMERICAN ELECTRIC POWER COMPANY INCORPORATED 752,080
17,412 CENTERPOINT ENERGY INCORPORATED<< 207,725
11,198 CINERGY CORPORATION 508,501
18,442 CITIZENS COMMUNICATIONS COMPANY<< 244,725
12,395 CMS ENERGY CORPORATION+ 160,515
13,781 CONSOLIDATED EDISON INCORPORATED 599,473
10,020 CONSTELLATION ENERGY GROUP INCORPORATED 548,194
19,510 DOMINION RESOURCES INCORPORATED 1,346,775
9,984 DTE ENERGY COMPANY<< 400,259
52,117 DUKE ENERGY CORPORATION<< 1,519,210
18
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE ALLOCATION FUNDS
- --------------------------------------------------------------------------------
ASSET ALLOCATION FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ELECTRIC, GAS & SANITARY SERVICES (CONTINUED)
16,916 DYNEGY INCORPORATED CLASS A+ $ 81,197
18,294 EDISON INTERNATIONAL 753,347
37,015 EL PASO CORPORATION 446,031
11,670 ENTERGY CORPORATION 804,530
37,464 EXELON CORPORATION 1,981,846
18,520 FIRSTENERGY CORPORATION 905,628
22,659 FPL GROUP INCORPORATED<< 909,532
9,802 KEYSPAN CORPORATION 400,608
5,908 KINDER MORGAN INCORPORATED<< 543,477
2,481 NICOR INCORPORATED 98,148
15,308 NISOURCE INCORPORATED 309,528
2,153 PEOPLES ENERGY CORPORATION<< 76,733
19,389 PG&E CORPORATION 754,232
5,568 PINNACLE WEST CAPITAL CORPORATION 217,709
21,350 PPL CORPORATION 627,690
14,165 PROGRESS ENERGY INCORPORATED 622,977
14,076 PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED 901,427
14,509 SEMPRA ENERGY 674,088
41,648 SOUTHERN COMPANY<< 1,364,805
11,697 TECO ENERGY INCORPORATED 188,556
25,983 TXU CORPORATION 1,162,999
31,011 WASTE MANAGEMENT INCORPORATED 1,094,688
33,389 WILLIAMS COMPANIES INCORPORATED 714,191
22,673 XCEL ENERGY INCORPORATED 411,515
23,994,874
---------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 5.49%
6,575 ADC TELECOMMUNICATIONS INCORPORATED+<< 168,255
27,001 ADVANCED MICRO DEVICES INCORPORATED+ 895,353
20,174 ALTERA CORPORATION+ 416,391
9,650 AMERICAN POWER CONVERSION CORPORATION 223,012
20,558 ANALOG DEVICES INCORPORATED 787,166
8,946 ANDREW CORPORATION+ 109,857
16,525 APPLIED MICRO CIRCUITS CORPORATION+ 67,257
24,733 BROADCOM CORPORATION CLASS A+ 1,067,476
32,698 CIENA CORPORATION+ 170,357
345,350 CISCO SYSTEMS INCORPORATED+ 7,483,735
11,342 COMVERSE TECHNOLOGY INCORPORATED+ 266,877
5,154 COOPER INDUSTRIES LIMITED CLASS A 447,883
23,100 EMERSON ELECTRIC COMPANY 1,931,853
23,043 FREESCALE SEMICONDUCTOR INCORPORATED CLASS B+ 639,904
585,269 GENERAL ELECTRIC COMPANY 20,355,656
3,686 HARMAN INTERNATIONAL INDUSTRIES INCORPORATED 409,625
330,327 INTEL CORPORATION 6,391,828
9,802 JABIL CIRCUIT INCORPORATED+ 420,114
94,118 JDS UNIPHASE CORPORATION+<< 392,472
11,203 KLA-TENCOR CORPORATION<< 541,777
19
WELLS FARGO ADVANTAGE ALLOCATION FUNDS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSET ALLOCATION FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT (CONTINUED)
6,809 L-3 COMMUNICATIONS HOLDINGS INCORPORATED $ 584,144
17,164 LINEAR TECHNOLOGY CORPORATION 602,113
21,993 LSI LOGIC CORPORATION+ 254,239
250,942 LUCENT TECHNOLOGIES INCORPORATED+<< 765,373
18,001 MAXIM INTEGRATED PRODUCTS INCORPORATED 668,737
4,516 MAYTAG CORPORATION 96,326
34,745 MICRON TECHNOLOGY INCORPORATED+ 511,446
8,000 MOLEX INCORPORATED 265,600
140,351 MOTOROLA INCORPORATED 3,215,441
18,949 NATIONAL SEMICONDUCTOR CORPORATION 527,540
21,009 NETWORK APPLIANCE INCORPORATED+ 756,954
7,489 NOVELLUS SYSTEMS INCORPORATED+<< 179,736
9,611 NVIDIA CORPORATION+ 550,326
10,431 PMC-SIERRA INCORPORATED+ 128,197
9,059 QLOGIC CORPORATION+ 175,292
92,999 QUALCOMM INCORPORATED 4,706,679
9,673 ROCKWELL COLLINS INCORPORATED 545,074
29,880 SANMINA-SCI CORPORATION+ 122,508
25,289 TELLABS INCORPORATED+ 402,095
89,858 TEXAS INSTRUMENTS INCORPORATED 2,917,689
3,820 WHIRLPOOL CORPORATION 349,415
19,358 XILINX INCORPORATED 492,855
62,004,627
---------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES - 0.23%
4,875 FLUOR CORPORATION<< 418,275
13,659 MOODY'S CORPORATION 976,072
18,756 PAYCHEX INCORPORATED 781,375
9,134 QUEST DIAGNOSTICS INCORPORATED 468,574
2,644,296
---------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT - 0.19%
5,855 BALL CORPORATION 256,624
8,217 FORTUNE BRANDS INCORPORATED 662,537
11,514 ILLINOIS TOOL WORKS INCORPORATED 1,108,913
3,273 SNAP-ON INCORPORATED 124,767
2,152,841
---------------
FINANCIAL SERVICES - 0.02%
12,059 JANUS CAPITAL GROUP INCORPORATED 279,407
---------------
FOOD & KINDRED PRODUCTS - 1.79%
43,592 ANHEUSER-BUSCH COMPANIES INCORPORATED<< 1,864,430
36,711 ARCHER-DANIELS-MIDLAND COMPANY 1,235,325
10,347 CAMPBELL SOUP COMPANY 335,243
17,036 COCA-COLA ENTERPRISES INCORPORATED 346,512
29,156 CONAGRA FOODS INCORPORATED 625,688
20
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE ALLOCATION FUNDS
- --------------------------------------------------------------------------------
ASSET ALLOCATION FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
FOOD & KINDRED PRODUCTS (CONTINUED)
11,069 CONSTELLATION BRANDS INCORPORATED CLASS A+<< $ 277,278
19,999 GENERAL MILLS INCORPORATED 1,013,549
6,338 HERCULES INCORPORATED+<< 87,464
10,062 HERSHEY FOODS CORPORATION 525,538
18,810 HJ HEINZ COMPANY 713,275
14,115 KELLOGG COMPANY 621,625
7,446 MCCORMICK & COMPANY INCORPORATED 252,122
3,222 MOLSON COORS BREWING COMPANY<< 221,094
7,592 PEPSI BOTTLING GROUP INCORPORATED 230,721
93,026 PEPSICO INCORPORATED 5,375,972
42,681 SARA LEE CORPORATION<< 763,136
115,671 THE COCA-COLA COMPANY<< 4,843,145
14,147 TYSON FOODS INCORPORATED CLASS A 194,380
9,964 WM. WRIGLEY JR. COMPANY 637,696
20,164,193
---------------
FOOD STORES - 0.37%
20,707 ALBERTSON'S INCORPORATED<< 531,549
40,735 KROGER COMPANY 829,364
25,250 SAFEWAY INCORPORATED 634,280
42,862 STARBUCKS CORPORATION+ 1,613,326
7,800 WHOLE FOODS MARKET INCORPORATED 518,232
4,126,751
---------------
FORESTRY - 0.09%
13,658 WEYERHAEUSER COMPANY 989,249
---------------
FURNITURE & FIXTURES - 0.12%
10,240 LEGGETT & PLATT INCORPORATED 249,549
23,375 MASCO CORPORATION 759,454
15,413 NEWELL RUBBERMAID INCORPORATED<< 388,253
1,397,256
---------------
GENERAL MERCHANDISE STORES - 1.16%
6,397 BIG LOTS INCORPORATED+<< 89,302
17,778 DOLLAR GENERAL CORPORATION 314,137
8,718 FAMILY DOLLAR STORES INCORPORATED 231,899
15,284 FEDERATED DEPARTMENT STORES INCORPORATED 1,115,732
13,040 JC PENNEY COMPANY INCORPORATED 787,746
5,604 SEARS HOLDINGS CORPORATION+<< 741,073
49,365 TARGET CORPORATION 2,567,474
25,867 TJX COMPANIES INCORPORATED 642,019
140,266 WAL-MART STORES INCORPORATED 6,626,166
13,115,548
---------------
21
WELLS FARGO ADVANTAGE ALLOCATION FUNDS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSET ALLOCATION FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
HEALTH SERVICES - 0.31%
25,190 CAREMARK RX INCORPORATED+ $ 1,238,844
22,905 HCA INCORPORATED<< 1,048,820
13,512 HEALTH MANAGEMENT ASSOCIATION INCORPORATED CLASS A<< 291,454
7,035 LABORATORY CORPORATION OF AMERICA HOLDINGS+ 411,407
4,439 MANOR CARE INCORPORATED 196,870
26,407 TENET HEALTHCARE CORPORATION+ 194,884
5,706 WATSON PHARMACEUTICALS INCORPORATED+ 163,990
3,546,269
---------------
HOLDING & OTHER INVESTMENT OFFICES - 0.56%
5,422 APARTMENT INVESTMENT & MANAGEMENT COMPANY CLASS A 254,292
11,977 ARCHSTONE-SMITH TRUST 584,118
5,038 BOSTON PROPERTIES INCORPORATED 469,793
22,806 EQUITY OFFICE PROPERTIES TRUST 765,825
16,307 EQUITY RESIDENTIAL 763,005
11,277 KIMCO REALTY CORPORATION 458,297
10,349 PLUM CREEK TIMBER COMPANY<< 382,189
13,672 PROLOGIS<< 731,452
4,642 PUBLIC STORAGE INCORPORATED<< 377,070
10,271 SIMON PROPERTY GROUP INCORPORATED<< 864,202
6,662 VORNADO REALTY TRUST<< 639,552
6,289,795
---------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 0.20%
15,747 BED BATH & BEYOND INCORPORATED+ 604,685
22,832 BEST BUY COMPANY INCORPORATED 1,276,994
8,548 CIRCUIT CITY STORES INCORPORATED 209,255
7,559 RADIO SHACK CORPORATION<< 145,359
2,236,293
---------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 0.17%
18,504 HILTON HOTELS CORPORATION 471,112
9,109 MARRIOTT INTERNATIONAL INCORPORATED CLASS A 624,877
12,119 STARWOOD HOTELS & RESORTS WORLDWIDE INCORPORATED 820,820
1,916,809
---------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 3.27%
42,392 3M COMPANY 3,208,651
10,008 AMERICAN STANDARD COMPANIES INCORPORATED 428,943
47,821 APPLE COMPUTER INCORPORATED+ 2,999,333
89,085 APPLIED MATERIALS INCORPORATED<< 1,559,878
19,218 BAKER HUGHES INCORPORATED<< 1,314,511
4,345 BLACK & DECKER CORPORATION 377,537
37,668 CATERPILLAR INCORPORATED<< 2,704,939
2,608 CUMMINS INCORPORATED<< 274,101
13,301 DEERE & COMPANY 1,051,444
132,148 DELL INCORPORATED+ 3,932,725
22
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE ALLOCATION FUNDS
- --------------------------------------------------------------------------------
ASSET ALLOCATION FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (CONTINUED)
11,415 DOVER CORPORATION $ 554,312
8,360 EATON CORPORATION 610,029
133,453 EMC CORPORATION+ 1,818,964
14,839 GATEWAY INCORPORATED+ 32,497
158,814 HEWLETT-PACKARD COMPANY 5,224,981
18,387 INGERSOLL-RAND COMPANY CLASS A 768,393
88,003 INTERNATIONAL BUSINESS MACHINES CORPORATION 7,257,608
6,080 LEXMARK INTERNATIONAL INCORPORATED+<< 275,910
9,810 NATIONAL-OILWELL VARCO INCORPORATED+<< 629,017
7,014 PALL CORPORATION 218,767
6,722 PARKER HANNIFIN CORPORATION 541,861
12,744 PITNEY BOWES INCORPORATED<< 547,100
51,352 SOLECTRON CORPORATION+ 205,408
4,067 STANLEY WORKS 206,034
14,204 SYMBOL TECHNOLOGIES INCORPORATED 150,278
36,893,221
---------------
INSURANCE AGENTS, BROKERS & SERVICE - 0.26%
18,077 AON CORPORATION<< 750,376
9,179 HUMANA INCORPORATED+ 483,274
7,574 JEFFERSON-PILOT CORPORATION 423,689
30,713 MARSH & MCLENNAN COMPANIES INCORPORATED 901,734
16,768 UNUMPROVIDENT CORPORATION<< 343,409
2,902,482
---------------
INSURANCE CARRIERS - 3.40%
18,098 ACE LIMITED 941,277
31,842 AETNA INCORPORATED 1,564,716
27,972 AFLAC INCORPORATED 1,262,376
36,215 ALLSTATE CORPORATION 1,887,164
5,925 AMBAC FINANCIAL GROUP INCORPORATED 471,630
145,741 AMERICAN INTERNATIONAL GROUP INCORPORATED 9,632,023
11,224 CHUBB CORPORATION 1,071,219
6,797 CIGNA CORPORATION 887,824
9,775 CINCINNATI FINANCIAL CORPORATION 411,238
21,155 GENWORTH FINANCIAL INCORPORATED 707,212
16,982 HARTFORD FINANCIAL SERVICES GROUP INCORPORATED 1,367,900
9,727 LINCOLN NATIONAL CORPORATION<< 530,997
7,619 LOEWS CORPORATION 771,043
7,524 MBIA INCORPORATED<< 452,418
42,559 METLIFE INCORPORATED 2,058,579
4,912 MGIC INVESTMENT CORPORATION<< 327,287
15,693 PRINCIPAL FINANCIAL GROUP INCORPORATED 765,818
11,045 PROGRESSIVE CORPORATION 1,151,552
27,793 PRUDENTIAL FINANCIAL INCORPORATED 2,106,987
6,921 SAFECO CORPORATION 347,503
23
WELLS FARGO ADVANTAGE ALLOCATION FUNDS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSET ALLOCATION FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
INSURANCE CARRIERS (CONTINUED)
39,075 ST. PAUL TRAVELERS COMPANIES INCORPORATED $ 1,632,944
5,815 TORCHMARK CORPORATION 332,037
76,155 UNITEDHEALTH GROUP INCORPORATED 4,254,018
37,058 WELLPOINT INCORPORATED+ 2,869,401
9,793 XL CAPITAL LIMITED CLASS A 627,829
38,432,992
---------------
LEATHER & LEATHER PRODUCTS - 0.07%
21,525 COACH INCORPORATED+ 744,334
---------------
LUMBER & WOOD PRODUCTS, EXCEPT FURNITURE - 0.01%
5,953 LOUISIANA-PACIFIC CORPORATION<< 161,922
---------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 1.72%
24,074 AGILENT TECHNOLOGIES INCORPORATED+ 903,979
8,515 ALLERGAN INCORPORATED<< 923,878
10,290 APPLERA CORPORATION-APPLIED BIOSYSTEMS GROUP 279,271
3,019 BAUSCH & LOMB INCORPORATED 192,310
36,412 BAXTER INTERNATIONAL INCORPORATED 1,413,150
13,887 BECTON DICKINSON & COMPANY 855,162
13,898 BIOMET INCORPORATED+ 493,657
33,213 BOSTON SCIENTIFIC CORPORATION+<< 765,560
5,839 C.R. BARD INCORPORATED 395,943
13,320 DANAHER CORPORATION 846,486
16,126 EASTMAN KODAK COMPANY<< 458,623
6,928 FISHER SCIENTIFIC INTERNATIONAL INCORPORATED+ 471,450
19,026 GUIDANT CORPORATION 1,485,170
67,773 MEDTRONIC INCORPORATED 3,439,480
2,923 MILLIPORE CORPORATION+ 213,554
7,344 PERKINELMER INCORPORATED 172,364
25,049 RAYTHEON COMPANY 1,148,246
9,951 ROCKWELL AUTOMATION INCORPORATED 715,576
20,583 ST. JUDE MEDICAL INCORPORATED+ 843,903
16,407 STRYKER CORPORATION<< 727,486
4,582 TEKTRONIX INCORPORATED 163,623
11,122 TERADYNE INCORPORATED+ 172,502
9,105 THERMO ELECTRON CORPORATION+ 337,704
5,868 WATERS CORPORATION+ 253,204
52,292 XEROX CORPORATION+<< 794,838
13,912 ZIMMER HOLDINGS INCORPORATED+<< 940,451
19,407,570
---------------
MEDICAL MANAGEMENT SERVICES - 0.04%
9,001 COVENTRY HEALTH CARE INCORPORATED+ 485,874
---------------
MEMBERSHIP ORGANIZATIONS - 0.00%
1,313 TRONOX INC COMMON CLASS B+ 22,309
---------------
24
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE ALLOCATION FUNDS
- --------------------------------------------------------------------------------
ASSET ALLOCATION FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
METAL MINING - 0.25%
10,334 FREEPORT-MCMORAN COPPER & GOLD INCORPORATED CLASS B<< $ 617,663
25,086 NEWMONT MINING CORPORATION 1,301,713
11,427 PHELPS DODGE CORPORATION 920,216
2,839,592
---------------
MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS - 0.04%
5,636 VULCAN MATERIALS COMPANY 488,359
---------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 1.23%
9,993 HASBRO INCORPORATED 210,852
167,104 JOHNSON & JOHNSON 9,895,899
21,827 MATTEL INCORPORATED<< 395,724
7,986 TIFFANY & COMPANY<< 299,794
113,162 TYCO INTERNATIONAL LIMITED 3,041,795
13,844,064
---------------
MISCELLANEOUS RETAIL - 0.74%
17,323 AMAZON.COM INCORPORATED+<< 632,463
26,567 COSTCO WHOLESALE CORPORATION 1,438,869
45,897 CVS CORPORATION<< 1,370,943
3,458 DILLARDS INCORPORATED CLASS A 90,046
8,218 EXPRESS SCRIPTS INCORPORATED+<< 722,362
16,602 OFFICE DEPOT INCORPORATED+ 618,259
40,914 STAPLES INCORPORATED 1,044,125
56,828 WALGREEN COMPANY 2,450,992
8,368,059
---------------
MOTION PICTURES - 0.84%
134,785 NEWS CORPORATION CLASS A 2,238,779
252,969 TIME WARNER INCORPORATED 4,247,350
108,134 WALT DISNEY COMPANY<< 3,015,857
9,501,986
---------------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING - 0.43%
61,322 UNITED PARCEL SERVICE INCORPORATED CLASS B<< 4,867,740
---------------
NON-DEPOSITORY CREDIT INSTITUTIONS - 1.17%
69,493 AMERICAN EXPRESS COMPANY 3,651,857
16,906 CAPITAL ONE FINANCIAL CORPORATION<< 1,361,271
11,217 CIT GROUP INCORPORATED 600,334
33,857 COUNTRYWIDE FINANCIAL CORPORATION<< 1,242,552
54,347 FANNIE MAE 2,793,436
38,799 FREDDIE MAC 2,366,739
23,431 SLM CORPORATION 1,217,006
13,233,195
---------------
25
WELLS FARGO ADVANTAGE ALLOCATION FUNDS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSET ALLOCATION FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
OIL & GAS EXTRACTION - 1.97%
12,939 ANADARKO PETROLEUM CORPORATION $ 1,306,968
18,546 APACHE CORPORATION 1,214,948
18,201 BJ SERVICES COMPANY 629,755
21,105 BURLINGTON RESOURCES INCORPORATED 1,939,761
20,978 CHESAPEAKE ENERGY CORPORATION 658,919
24,810 DEVON ENERGY CORPORATION 1,517,628
13,618 EOG RESOURCES INCORPORATED 980,496
28,986 HALLIBURTON COMPANY 2,116,558
6,512 KERR-MCGEE CORPORATION 621,766
8,872 NABORS INDUSTRIES LIMITED+ 635,058
7,701 NOBLE CORPORATION<< 624,551
24,187 OCCIDENTAL PETROLEUM CORPORATION 2,240,925
6,137 ROWAN COMPANIES INCORPORATED+ 269,782
33,176 SCHLUMBERGER LIMITED 4,199,086
18,302 TRANSOCEAN INCORPORATED+<< 1,469,651
19,585 WEATHERFORD INTERNATIONAL LIMITED+ 896,014
20,394 XTO ENERGY INCORPORATED 888,552
22,210,418
---------------
PAPER & ALLIED PRODUCTS - 0.31%
5,912 BEMIS COMPANY INCORPORATED 186,701
27,658 INTERNATIONAL PAPER COMPANY 956,137
25,876 KIMBERLY-CLARK CORPORATION 1,495,633
10,189 MEADWESTVACO CORPORATION 278,262
3,978 OFFICEMAX INCORPORATED 120,016
8,045 PACTIV CORPORATION+ 197,424
6,224 TEMPLE-INLAND INCORPORATED<< 277,279
3,511,452
---------------
PERSONAL SERVICES - 0.06%
7,735 CINTAS CORPORATION 329,666
18,396 H & R BLOCK INCORPORATED 398,273
727,939
---------------
PETROLEUM REFINING & RELATED INDUSTRIES - 3.42%
4,494 AMERADA HESS CORPORATION 639,946
4,001 ASHLAND INCORPORATED 284,391
124,997 CHEVRONTEXACO CORPORATION 7,246,076
77,403 CONOCOPHILLIPS<< 4,887,999
342,867 EXXON MOBIL CORPORATION 20,866,886
20,596 MARATHON OIL CORPORATION 1,568,797
9,271 MURPHY OIL CORPORATION 461,881
7,477 SUNOCO INCORPORATED<< 579,991
34,915 VALERO ENERGY CORPORATION 2,087,219
38,623,186
---------------
26
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE ALLOCATION FUNDS
- --------------------------------------------------------------------------------
ASSET ALLOCATION FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
PRIMARY METAL INDUSTRIES - 0.30%
48,952 ALCOA INCORPORATED $ 1,495,973
4,854 ALLEGHENY TECHNOLOGIES INCORPORATED 296,968
6,941 ENGELHARD CORPORATION 274,933
8,726 NUCOR CORPORATION 914,397
6,110 UNITED STATES STEEL CORPORATION 370,755
3,353,026
---------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 0.57%
43,387 CBS CORPORATION CLASS B 1,040,420
3,314 DOW JONES & COMPANY INCORPORATED<< 130,240
4,776 E.W. SCRIPPS COMPANY CLASS A 213,535
13,367 GANNETT COMPANY INCORPORATED<< 800,951
3,762 KNIGHT-RIDDER INCORPORATED 237,796
20,617 MCGRAW-HILL COMPANIES INCORPORATED 1,187,952
2,350 MEREDITH CORPORATION 131,106
8,152 NEW YORK TIMES COMPANY CLASS A<< 206,327
12,126 RR DONNELLEY & SONS COMPANY 396,763
14,700 TRIBUNE COMPANY 403,221
43,390 VIACOM INCORPORATED CLASS B+ 1,683,532
6,431,843
---------------
RAILROAD TRANSPORTATION - 0.45%
20,941 BURLINGTON NORTHERN SANTA FE CORPORATION 1,745,013
12,320 CSX CORPORATION 736,736
23,146 NORFOLK SOUTHERN CORPORATION 1,251,504
14,876 UNION PACIFIC CORPORATION 1,388,675
5,121,928
---------------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS - 0.04%
3,443 COOPER TIRE & RUBBER COMPANY 49,372
4,570 SEALED AIR CORPORATION 264,466
9,937 THE GOODYEAR TIRE & RUBBER COMPANY+<< 143,888
457,726
---------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 1.65%
14,073 AMERIPRISE FINANCIAL INCORPORATED 634,129
6,702 BEAR STEARNS COMPANIES INCORPORATED 929,567
57,937 CHARLES SCHWAB CORPORATION 997,096
23,465 E*TRADE FINANCIAL CORPORATION+ 633,086
4,729 FEDERATED INVESTORS INCORPORATED CLASS B 184,668
8,568 FRANKLIN RESOURCES INCORPORATED 807,448
24,481 GOLDMAN SACHS GROUP INCORPORATED 3,842,538
15,183 LEHMAN BROTHERS HOLDINGS INCORPORATED 2,194,399
51,562 MERRILL LYNCH & COMPANY INCORPORATED 4,061,023
60,292 MORGAN STANLEY 3,787,543
7,413 T. ROWE PRICE GROUP INCORPORATED 579,771
18,651,268
---------------
27
WELLS FARGO ADVANTAGE ALLOCATION FUNDS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSET ALLOCATION FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 0.21%
86,806 CORNING INCORPORATED+ $ 2,335,949
---------------
TOBACCO PRODUCTS - 0.81%
117,181 ALTRIA GROUP INCORPORATED 8,303,446
4,803 REYNOLDS AMERICAN INCORPORATED<< 506,717
9,184 UST INCORPORATED 382,054
9,192,217
---------------
TRANSPORTATION BY AIR - 0.23%
17,062 FEDEX CORPORATION 1,926,982
39,759 SOUTHWEST AIRLINES COMPANY 715,265
2,642,247
---------------
TRANSPORTATION EQUIPMENT - 1.70%
44,941 BOEING COMPANY 3,502,252
5,335 BRUNSWICK CORPORATION 207,318
104,670 FORD MOTOR COMPANY<< 833,173
22,474 GENERAL DYNAMICS CORPORATION 1,437,887
31,752 GENERAL MOTORS CORPORATION<< 675,365
9,709 GENUINE PARTS COMPANY<< 425,545
6,929 GOODRICH CORPORATION 302,174
15,302 HARLEY-DAVIDSON INCORPORATED 793,868
46,638 HONEYWELL INTERNATIONAL INCORPORATED 1,994,707
10,371 ITT INDUSTRIES INCORPORATED 583,058
10,902 JOHNSON CONTROLS INCORPORATED 827,789
20,116 LOCKHEED MARTIN CORPORATION 1,511,315
3,464 NAVISTAR INTERNATIONAL CORPORATION+ 95,537
19,691 NORTHROP GRUMMAN CORPORATION 1,344,698
9,505 PACCAR INCORPORATED 669,912
7,432 TEXTRON INCORPORATED 694,075
57,015 UNITED TECHNOLOGIES CORPORATION 3,305,160
19,203,833
---------------
TRANSPORTATION SERVICES - 0.02%
7,403 SABRE HOLDINGS CORPORATION 174,193
---------------
WATER TRANSPORTATION - 0.10%
24,378 CARNIVAL CORPORATION<< 1,154,786
---------------
WHOLESALE TRADE NON-DURABLE GOODS - 0.63%
11,736 AMERISOURCEBERGEN CORPORATION 566,497
4,669 BROWN-FORMAN CORPORATION CLASS B 359,373
23,692 CARDINAL HEALTH INCORPORATED 1,765,528
7,619 DEAN FOODS COMPANY+ 295,846
17,188 MCKESSON CORPORATION 896,010
17,092 MEDCO HEALTH SOLUTIONS INCORPORATED+ 978,004
10,627 NIKE INCORPORATED CLASS B 904,358
7,646 SUPERVALU INCORPORATED<< 235,650
34,774 SYSCO CORPORATION 1,114,506
7,115,772
---------------
28
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE ALLOCATION FUNDS
- --------------------------------------------------------------------------------
ASSET ALLOCATION FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
WHOLESALE TRADE-DURABLE GOODS - 0.05%
7,784 PATTERSON COMPANIES INCORPORATED+ $ 273,997
4,293 W.W. GRAINGER INCORPORATED 323,477
597,474
---------------
TOTAL COMMON STOCKS (COST $623,475,902) 660,347,312
---------------
COLLATERAL FOR SECURITIES LENDING - 43.61%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.30%
3,381,447 ATLAS CAPITAL FUNDING LIMITED 3,381,447
---------------
PRINCIPAL INTEREST RATE MATURITY DATE
COLLATERAL INVESTED IN OTHER ASSETS - 43.31%
$ 419,299 ABBEY NATIONAL TREASURY SERVICE 4.69% 01/16/2007 $ 419,794
6,221,862 AMERICAN EXPRESS BANK FSB 4.78 01/26/2007 6,221,177
290,804 AMERICAN EXPRESS CREDIT CORPORATION 4.92 05/16/2006 290,877
3,922,478 AMERICAN GENERAL FINANCE CORPORATION 4.78 04/13/2007 3,924,086
1,281,568 APRECO LLC 4.77 05/10/2006 1,275,263
115,104 AQUINAS FUNDING LLC 4.75 05/15/2006 114,461
9,420,981 ATLANTIC ASSET SECURITIZATION CORPORATION 4.81 04/05/2006 9,418,531
424,980 ATLAS CAPITAL FUNDING LIMITED 4.72 05/01/2006 423,408
3,381,447 ATLAS CAPITAL FUNDING LIMITED 4.80 05/08/2006 3,365,689
1,652,445 ATLAS CAPITAL FUNDING LIMITED 4.60 05/17/2006 1,642,779
11,495,836 ATOMIUM FUNDING CORPORATION 4.79 04/24/2006 11,463,878
239,947 ATOMIUM FUNDING CORPORATION 4.84 04/27/2006 239,187
2,569,899 ATOMIUM FUNDING CORPORATION 4.80 05/11/2006 2,556,896
2,095,144 ATOMIUM FUNDING CORPORATION 4.91 06/07/2006 2,076,770
202,887 BANK OF IRELAND (GOVERNOR & COMPANY) 4.84 05/08/2006 201,941
13,525,786 BEAR STEARNS & COMPANY REPURCHASE
AGREEMENT (MATURITY VALUE $13,531,343) 4.93 04/03/2006 13,525,786
45,987,673 BEAR STEARNS & COMPANY REPURCHASE
AGREEMENT (MATURITY VALUE $46,006,566) 4.93 04/03/2006 45,987,673
716,867 BEAR STEARNS COMPANY INCORPORATED SERIES MTNB 5.18 06/19/2006 717,275
508,434 BETA FINANCE INCORPORATED SERIES MTN 4.88 06/02/2006 508,500
6,086,604 BUCKINGHAM CDO LLC 4.82 04/21/2006 6,072,118
18,729,427 BUCKINGHAM CDO LLC 4.83 04/25/2006 18,674,924
2,917,783 BUCKINGHAM II CDO 4.78 04/05/2006 2,917,024
21,963,172 BUCKINGHAM II CDO LLC++ 4.83 04/25/2006 21,899,259
2,705,157 CAIRN HIGH GRADE FUNDING I 4.90 04/03/2006 2,705,157
5,139,799 CAIRN HIGH GRADE FUNDING I 4.64 04/05/2006 5,138,462
3,381,447 CAIRN HIGH GRADE FUNDING I 4.82 04/19/2006 3,374,278
1,487,836 CAIRN HIGH GRADE FUNDING I++ 4.81 04/20/2006 1,484,489
3,110,931 CAIRN HIGH GRADE FUNDING I 4.83 04/26/2006 3,101,474
4,328,252 CAIRN HIGH GRADE FUNDING I++ 4.74 05/04/2006 4,310,419
1,487,836 CAIRN HIGH GRADE FUNDING I 4.77 05/10/2006 1,480,516
270,516 CC USA INCORPORATED 4.73 07/14/2006 270,521
1,893,610 CEDAR SPRINGS CAPITAL COMPANY LLC 4.85 04/05/2006 1,893,118
1,751,048 CEDAR SPRINGS CAPITAL COMPANY LLC 4.53 04/10/2006 1,749,420
29
WELLS FARGO ADVANTAGE ALLOCATION FUNDS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSET ALLOCATION FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 4,057,736 CEDAR SPRINGS CAPITAL COMPANY LLC 4.55% 04/19/2006 $ 4,049,134
4,104,265 CEDAR SPRINGS CAPITAL COMPANY LLC 4.69 05/08/2006 4,085,139
1,612,003 CEDAR SPRINGS CAPITAL COMPANY LLC 4.72 05/12/2006 1,603,637
790,988 CEDAR SPRINGS CAPITAL COMPANY LLC 4.83 05/22/2006 785,807
289,722 CEDAR SPRINGS CAPITAL COMPANY LLC 4.88 06/02/2006 287,399
5,097,598 CEDAR SPRINGS CAPITAL COMPANY LLC 4.93 06/21/2006 5,043,258
5,390,026 CEDAR SPRINGS CAPITAL COMPANY LLC 4.93 06/22/2006 5,331,814
946,805 CONCORD MINUTEMAN CAPITAL COMPANY SERIES A 4.81 05/19/2006 940,982
4,986,011 CONCORD MINUTEMAN CAPITAL COMPANY SERIES A 4.65 04/04/2007 4,986,011
5,883,717 CONCORD MINUTEMEN CAPITAL COMPANY SERIES A 4.72 04/12/2006 5,883,717
946,805 CONCORD MINUTEMEN CAPITAL COMPANY SERIES A 4.58 04/05/2006 946,559
581,609 CORPORATE ASSET SECURITIZATION AUSTRALIA 4.82 04/11/2006 580,992
371,959 CREDIT SUISSE FIRST BOSTON 5.21 06/19/2006 372,175
5,951,346 CREDIT SUISSE FIRST BOSTON NEW YORK SERIES YCD1 4.92 05/04/2006 5,948,370
211,273 CULLINAN FINANCE CORPORATION 4.73 05/11/2006 210,204
4,334,203 DEER VALLEY FUNDING LLC 4.84 04/19/2006 4,325,014
6,762,893 DEER VALLEY FUNDING LLC 4.82 05/02/2006 6,736,991
6,762,893 DEER VALLEY FUNDING LLC 4.82 05/03/2006 6,736,044
6,762,893 DEER VALLEY FUNDING LLC 4.82 05/04/2006 6,735,030
148,784 DEXIA DELAWARE LLC 4.81 04/06/2006 148,724
1,217,321 EIFFEL FUNDING LLC 4.82 05/02/2006 1,212,658
2,028,868 EIFFEL FUNDING LLC 4.78 05/08/2006 2,019,413
50,857 FALCON ASSET SECURITIZATION CORPORATION 4.95 06/15/2006 50,356
6,762,893 FIVE FINANCE INCORPORATED 4.93 01/25/2007 6,765,328
546,983 GALLEON CAPITAL LLC 4.84 04/10/2006 546,474
3,114,312 GENERAL ELECTRIC CAPITAL ASSURANCE COMPANY 4.91 05/12/2006 3,114,375
2,164,126 GENERAL ELECTRIC CAPITAL ASSURANCE COMPANY 4.83 06/16/2006 2,164,126
1,624,447 GENERAL ELECTRIC CAPITAL ASSURANCE COMPANY 5.06 09/18/2006 1,625,763
6,898,151 GOLDMAN SACHS GROUP INCORPORATED 4.97 06/30/2006 6,898,151
3,381,447 GOLDMAN SACHS GROUP INCORPORATED 5.02 08/16/2006 3,381,447
219,794 GOLDMAN SACHS GROUP INCORPORATED 4.94 08/18/2006 219,948
112,805 GRAMPIAN FUNDING LIMITED 4.43 04/11/2006 112,686
121,056 GRAMPIAN FUNDING LIMITED 4.89 07/03/2006 119,556
987,382 HBOS TREASURY SERVICES PLC 4.98 06/30/2006 987,610
11,361,660 ING USA ANNUITY & LIFE INSURANCE 5.03 06/06/2006 11,361,660
47,230,726 JP MORGAN CHASE & COMPANY REPURCHASE
AGREEMENT (MATURITY VALUE $47,250,091) 4.92 04/03/2006 47,230,726
290,804 K2 (USA) LLC 4.44 04/20/2006 290,150
677,777 K2 (USA) LLC SERIES MTN 4.87 07/24/2006 677,947
8,656,503 KAUPTHING BANK HF++ 4.84 03/20/2007 8,654,772
308,929 KLIO FUNDING CORPORATION 4.81 04/19/2006 308,274
4,143,489 KLIO II FUNDING CORPORATION++ 4.82 04/18/2006 4,135,285
1,922,420 KLIO III FUNDING CORPORATION 4.47 04/05/2006 1,921,920
270,516 LEHMAN BROTHERS HOLDINGS INCORPORATED SERIES MTNG 4.59 06/02/2006 270,578
3,755,299 LEXINGTON PARKER CAPITAL CORPORATION 4.89 04/04/2006 3,754,811
148,378 LEXINGTON PARKER CAPITAL CORPORATION 4.43 04/18/2006 148,084
30
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE ALLOCATION FUNDS
- --------------------------------------------------------------------------------
ASSET ALLOCATION FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 5,299,944 LEXINGTON PARKER CAPITAL CORPORATION 4.69% 05/10/2006 $ 5,273,868
10,144,340 LIBERTY LIGHT US CAPITAL SERIES MTN 4.81 05/26/2006 10,144,948
4,666,396 LIQUID FUNDING LIMITED 4.47 04/04/2006 4,665,790
6,762,893 LIQUID FUNDING LIMITED 4.82 04/28/2006 6,740,508
3,651,962 LIQUID FUNDING LIMITED 4.71 08/14/2006 3,651,962
4,734,025 LIQUID FUNDING LIMITED 4.61 12/01/2006 4,734,025
135,258 MERRILL LYNCH & COMPANY 4.88 04/18/2006 135,251
743,918 MERRILL LYNCH & COMPANY 5.09 06/06/2006 744,112
161,092 MONT BLANC CAPITAL CORPORATION 4.46 04/10/2006 160,942
9,468,050 MORGAN STANLEY 4.94 10/10/2006 9,468,050
6,762,893 MORGAN STANLEY 4.94 10/30/2006 6,762,893
2,079,590 MORGAN STANLEY SERIES EXL 4.78 08/13/2010 2,080,151
8,115,472 MORTGAGE INTEREST NET TRUST (MINTS) 4.78 05/04/2006 8,082,036
269,975 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.58 04/06/2006 269,867
401,851 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.81 04/17/2006 401,108
349,912 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.60 06/15/2006 346,465
243,464 NORDEA NORTH AMERICA INCORPORATED 4.77 05/08/2006 242,330
162,580 PARK AVENUE RECEIVABLES CORPORATION 4.81 04/17/2006 162,279
86,295 PERRY GLOBAL FUNDING LIMITED 4.84 06/12/2006 85,479
6,242,556 PICAROS FUNDING LLC 4.82 04/27/2006 6,222,767
270,516 PRUDENTIAL PLC 4.70 05/08/2006 269,255
6,215,775 RACERS TRUST 2004-6-MM 4.79 05/22/2006 6,216,645
3,809,538 ROYAL BANK OF SCOTLAND PLC 4.79 11/24/2006 3,810,642
608,660 SCALDIS CAPITAL LIMITED 4.47 04/18/2006 607,455
82,778 SCALDIS CAPITAL LIMITED 4.46 04/21/2006 82,581
3,381,447 SEDNA FINANCE INCORPORATED 4.83 12/08/2006 3,381,007
1,284,950 SLM CORPORATION 4.79 04/25/2006 1,284,860
878,635 SOCIETE GENERALE NORTH AMERICA 4.85 04/06/2006 878,284
101,443 SWEDBANK (FORENINGS SPARBANKEN) 4.45 04/10/2006 101,349
1,575,754 TANGO FINANCE CORPORATION 4.43 04/03/2006 1,575,754
1,694,375 TANGO FINANCE CORPORATION SERIES MTN 4.87 10/25/2006 1,694,934
99,956 THAMES ASSET GLOBAL SECURITIZATION #1 INCORPORATED 4.78 05/15/2006 99,397
128,901 THAMES ASSET GLOBAL SECURITIZATION #1 INCORPORATED++ 4.97 06/06/2006 127,787
8,450,370 THAMES ASSET GLOBAL SECURITIZATION #1 INCORPORATED 4.95 06/26/2006 8,354,543
13,525,786 TRANSAMERICA OCCIDENTAL LIFE INSURANCE 5.07 07/11/2006 13,525,786
2,599,521 TRAVELERS INSURANCE COMPANY 4.77 02/09/2007 2,599,469
132,688 UBS FINANCE (DELAWARE) LLC 4.81 05/31/2006 131,660
6,762,893 UNICREDITO ITALIANO NEW YORK SERIES 4.92 06/30/2006 6,761,967
3,381,447 UNICREDITO ITALIANO SERIES LIB 4.70 03/09/2007 3,381,244
3,805,345 WHITE PINE FINANCE LLC 4.84 04/10/2006 3,801,806
284,042 WHITE PINE FINANCE LLC 4.79 05/05/2006 282,832
1,570,344 WHITE PINE FINANCE LLC++ 4.76 05/08/2006 1,563,026
1,352,579 WHITE PINE FINANCE LLC 4.65 05/17/2006 1,344,666
3,516,704 WHITE PINE FINANCE LLC SERIES MTN1 4.81 06/12/2006 3,517,021
31
WELLS FARGO ADVANTAGE ALLOCATION FUNDS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSET ALLOCATION FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 176,376 YORKTOWN CAPITAL LLC 4.81% 04/20/2006 $ 175,979
162,309 YORKTOWN CAPITAL, LLC 4.81 04/17/2006 162,009
489,261,038
---------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $492,642,485) 492,642,485
---------------
US TREASURY SECURITIES - 35.32%
US TREASURY BONDS - 35.32%
23,671,000 US TREASURY BOND<< 6.88 08/15/2025 28,895,261
29,436,000 US TREASURY BOND<< 6.00 02/15/2026 32,844,129
18,144,000 US TREASURY BOND<< 6.75 08/15/2026 21,975,505
23,036,000 US TREASURY BOND<< 6.50 11/15/2026 27,216,665
20,265,000 US TREASURY BOND<< 6.63 02/15/2027 24,302,173
19,055,000 US TREASURY BOND<< 6.38 08/15/2027 22,279,468
47,084,000 US TREASURY BOND<< 6.13 11/15/2027 53,602,215
25,225,000 US TREASURY BOND<< 5.50 08/15/2028 26,724,702
23,540,000 US TREASURY BOND<< 5.25 11/15/2028 24,170,801
24,408,000 US TREASURY BOND<< 5.25 02/15/2029 25,062,061
23,977,000 US TREASURY BOND<< 6.13 08/15/2029 27,489,247
38,198,000 US TREASURY BOND<< 6.25 05/15/2030 44,640,933
37,835,000 US TREASURY BOND<< 5.38 02/15/2031 39,827,241
399,030,401
---------------
TOTAL US TREASURY SECURITIES (COST $378,656,674) 399,030,401
---------------
SHORT-TERM INVESTMENTS - 6.51%
MUTUAL FUND - 4.76%
53,792,470 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~&& 53,792,470
---------------
US TREASURY BILLS - 1.75%
19,875,000 US TREASURY BILL^# 4.13 05/11/2006 19,782,924
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $73,580,826) 73,575,394
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $1,568,355,887)* 143.90% $ 1,625,595,592
OTHER ASSETS AND LIABILITIES, NET (43.90) (495,930,993)
------- ---------------
TOTAL NET ASSETS 100.00% $ 1,129,664,599
======= ===============
<< ALL OR A PORTION OF THIS SECURITY IS ON LOAN. (SEE NOTE 2)
+ NON-INCOME EARNING SECURITIES.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
&& SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $58,086,900.
^ ZERO COUPON BOND. INTEREST RATE PRESENTED IS YIELD TO MATURITY.
++ SECURITIES THAT MAY BE RESOLD TO "QUALIFIED INSTITUTIONAL BUYERS" UNDER
RULE 144A OR SECURITIES OFFERED PURSUANT TO SECTION 4 (2) OF THE
SECURITIES ACT OF 1933, AS AMENDED.
# SECURITY PLEDGED AS COLLATERAL FOR FUTURES TRANSACTIONS.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
32
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE ALLOCATION FUNDS
- --------------------------------------------------------------------------------
CONSERVATIVE ALLOCATION FUND
- --------------------------------------------------------------------------------
FACE/SHARE
AMOUNT SECURITY NAME VALUE
INVESTMENTS IN AFFILIATED MASTER PORTFOLIOS - 99.77%
N/A WELLS FARGO ADVANTAGE C&B LARGE CAP VALUE PORTFOLIO $ 7,794,590
N/A WELLS FARGO ADVANTAGE DISCIPLINED GROWTH PORTFOLIO 4,685,026
N/A WELLS FARGO ADVANTAGE EQUITY INCOME PORTFOLIO 7,765,896
N/A WELLS FARGO ADVANTAGE EQUITY VALUE PORTFOLIO 7,792,099
N/A WELLS FARGO ADVANTAGE INDEX PORTFOLIO 23,325,329
N/A WELLS FARGO ADVANTAGE INFLATION-PROTECTED BOND PORTFOLIO 25,577,310
N/A WELLS FARGO ADVANTAGE INTERNATIONAL CORE PORTFOLIO 3,514,872
N/A WELLS FARGO ADVANTAGE INTERNATIONAL GROWTH PORTFOLIO 3,528,852
N/A WELLS FARGO ADVANTAGE INTERNATIONAL INDEX PORTFOLIO 3,510,267
N/A WELLS FARGO ADVANTAGE INTERNATIONAL VALUE PORTFOLIO 3,504,812
N/A WELLS FARGO ADVANTAGE LARGE CAP APPRECIATION PORTFOLIO 2,350,446
N/A WELLS FARGO ADVANTAGE LARGE COMPANY GROWTH PORTFOLIO 16,418,910
N/A WELLS FARGO ADVANTAGE MANAGED FIXED INCOME PORTFOLIO 179,098,204
N/A WELLS FARGO ADVANTAGE SMALL CAP INDEX PORTFOLIO 3,169,073
N/A WELLS FARGO ADVANTAGE SMALL COMPANY GROWTH PORTFOLIO 3,140,657
N/A WELLS FARGO ADVANTAGE SMALL COMPANY VALUE PORTFOLIO 1,569,886
N/A WELLS FARGO ADVANTAGE STABLE INCOME PORTFOLIO 116,782,624
N/A WELLS FARGO ADVANTAGE STRATEGIC SMALL CAP VALUE PORTFOLIO 1,575,632
N/A WELLS FARGO ADVANTAGE TOTAL RETURN BOND PORTFOLIO 51,162,192
TOTAL INVESTMENTS IN AFFILIATED MASTER PORTFOLIOS (COST $449,556,280) 466,266,677
---------------
PRINCIPAL INTEREST RATE MATURITY DATE
SHORT-TERM INVESTMENTS - 0.29%
US TREASURY BILLS - 0.29%
$ 1,325,000 US TREASURY BILL^# 4.16% 05/11/2006 1,318,861
50,000 US TREASURY BILL^# 4.48 08/10/2006 49,188
1,368,049
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $1,368,421) 1,368,049
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $450,924,701) 100.06% $ 467,634,726
OTHER ASSETS AND LIABILITIES, NET (0.06) (262,432)
------- ---------------
TOTAL NET ASSETS 100.00% $ 467,372,294
======= ===============
^ ZERO COUPON BOND. INTEREST RATE PRESENTED IS YIELD TO MATURITY.
# SECURITY PLEDGED AS COLLATERAL FOR FUTURES TRANSACTIONS.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
33
WELLS FARGO ADVANTAGE ALLOCATION FUNDS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
GROWTH BALANCED FUND
- --------------------------------------------------------------------------------
FACE/SHARE
AMOUNT SECURITY NAME VALUE
INVESTMENTS IN AFFILIATED MASTER PORTFOLIOS - 99.09%
N/A WELLS FARGO ADVANTAGE C&B LARGE CAP VALUE PORTFOLIO $ 109,228,666
N/A WELLS FARGO ADVANTAGE DISCIPLINED GROWTH PORTFOLIO 64,998,099
N/A WELLS FARGO ADVANTAGE EQUITY INCOME PORTFOLIO 108,359,087
N/A WELLS FARGO ADVANTAGE EQUITY VALUE PORTFOLIO 109,066,592
N/A WELLS FARGO ADVANTAGE INDEX PORTFOLIO 326,438,174
N/A WELLS FARGO ADVANTAGE INFLATION-PROTECTED BOND PORTFOLIO 70,437,050
N/A WELLS FARGO ADVANTAGE INTERNATIONAL CORE PORTFOLIO 49,381,720
N/A WELLS FARGO ADVANTAGE INTERNATIONAL GROWTH PORTFOLIO 50,055,185
N/A WELLS FARGO ADVANTAGE INTERNATIONAL INDEX PORTFOLIO 49,547,359
N/A WELLS FARGO ADVANTAGE INTERNATIONAL VALUE PORTFOLIO 49,371,367
N/A WELLS FARGO ADVANTAGE LARGE CAP APPRECIATION PORTFOLIO 32,929,873
N/A WELLS FARGO ADVANTAGE LARGE COMPANY GROWTH PORTFOLIO 229,338,098
N/A WELLS FARGO ADVANTAGE MANAGED FIXED INCOME PORTFOLIO 493,006,696
N/A WELLS FARGO ADVANTAGE SMALL CAP INDEX PORTFOLIO 44,801,712
N/A WELLS FARGO ADVANTAGE SMALL COMPANY GROWTH PORTFOLIO 44,437,194
N/A WELLS FARGO ADVANTAGE SMALL COMPANY VALUE PORTFOLIO 22,242,452
N/A WELLS FARGO ADVANTAGE STRATEGIC SMALL CAP VALUE PORTFOLIO 22,511,243
N/A WELLS FARGO ADVANTAGE TOTAL RETURN BOND PORTFOLIO 140,886,859
TOTAL INVESTMENTS IN AFFILIATED MASTER PORTFOLIOS (COST $1,771,385,432) 2,017,037,426
---------------
PRINCIPAL INTEREST RATE MATURITY DATE
SHORT-TERM INVESTMENTS - 0.91%
US TREASURY BILLS - 0.91%
$ 15,480,000 US TREASURY BILL^# 4.16% 05/11/2006 15,408,285
3,190,000 US TREASURY BILL^# 4.48 08/10/2006 3,138,194
18,546,479
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $18,551,306) 18,546,479
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $1,789,936,738) 100.00% $ 2,035,583,905
OTHER ASSETS AND LIABILITIES, NET 0.00 (88,321)
------- ---------------
TOTAL NET ASSETS 100.00% $ 2,035,495,584
======= ===============
^ ZERO COUPON BOND. INTEREST RATE PRESENTED IS YIELD TO MATURITY.
# SECURITY PLEDGED AS COLLATERAL FOR FUTURES TRANSACTIONS.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
34
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE ALLOCATION FUNDS
- --------------------------------------------------------------------------------
MODERATE BALANCED FUND
- --------------------------------------------------------------------------------
FACE/SHARE
AMOUNT SECURITY NAME VALUE
INVESTMENTS IN AFFILIATED MASTER PORTFOLIOS - 99.41%
N/A WELLS FARGO ADVANTAGE C&B LARGE CAP VALUE PORTFOLIO $ 19,161,364
N/A WELLS FARGO ADVANTAGE DISCIPLINED GROWTH PORTFOLIO 11,410,810
N/A WELLS FARGO ADVANTAGE EQUITY INCOME PORTFOLIO 18,988,252
N/A WELLS FARGO ADVANTAGE EQUITY VALUE PORTFOLIO 19,138,049
N/A WELLS FARGO ADVANTAGE INDEX PORTFOLIO 57,247,107
N/A WELLS FARGO ADVANTAGE INFLATION-PROTECTED BOND PORTFOLIO 25,648,364
N/A WELLS FARGO ADVANTAGE INTERNATIONAL CORE PORTFOLIO 8,673,024
N/A WELLS FARGO ADVANTAGE INTERNATIONAL GROWTH PORTFOLIO 8,786,987
N/A WELLS FARGO ADVANTAGE INTERNATIONAL INDEX PORTFOLIO 8,699,155
N/A WELLS FARGO ADVANTAGE INTERNATIONAL VALUE PORTFOLIO 8,669,729
N/A WELLS FARGO ADVANTAGE LARGE CAP APPRECIATION PORTFOLIO 5,781,322
N/A WELLS FARGO ADVANTAGE LARGE COMPANY GROWTH PORTFOLIO 40,234,583
N/A WELLS FARGO ADVANTAGE MANAGED FIXED INCOME PORTFOLIO 179,489,705
N/A WELLS FARGO ADVANTAGE SMALL CAP INDEX PORTFOLIO 7,869,008
N/A WELLS FARGO ADVANTAGE SMALL COMPANY GROWTH PORTFOLIO 7,782,276
N/A WELLS FARGO ADVANTAGE SMALL COMPANY VALUE PORTFOLIO 3,892,271
N/A WELLS FARGO ADVANTAGE STABLE INCOME PORTFOLIO 85,774,948
N/A WELLS FARGO ADVANTAGE STRATEGIC SMALL CAP VALUE PORTFOLIO 3,939,975
N/A WELLS FARGO ADVANTAGE TOTAL RETURN BOND PORTFOLIO 51,293,230
TOTAL INVESTMENTS IN AFFILIATED MASTER PORTFOLIOS (COST $514,359,375) 572,480,159
---------------
PRINCIPAL INTEREST RATE MATURITY DATE
SHORT-TERM INVESTMENTS - 0.64%
US TREASURY BILLS - 0.64%
$ 3,685,000 US TREASURY BILL^# 4.13% 05/11/2006 3,667,928
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $3,668,935) 3,667,928
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $518,028,310) 100.05% $ 576,148,087
OTHER ASSETS AND LIABILITIES, NET (0.05) (276,844)
------- ---------------
TOTAL NET ASSETS 100.00% $ 575,871,243
======= ===============
^ ZERO COUPON BOND. INTEREST RATE PRESENTED IS YIELD TO MATURITY.
# SECURITY PLEDGED AS COLLATERAL FOR FUTURES TRANSACTIONS.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
35
WELLS FARGO ADVANTAGE ALLOCATION FUNDS STATEMENTS OF ASSETS AND LIABILITIES --
MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
AGGRESSIVE
ALLOCATION FUND
- -------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE ............................. $ 1,869,201
INVESTMENTS IN AFFILIATED MASTER PORTFOLIOS ................ 214,048,390
COLLATERAL FOR SECURITIES LOANED (NOTE 2) .................. 0
INVESTMENTS IN AFFILIATES .................................. 0
--------------
TOTAL INVESTMENTS AT MARKET VALUE (SEE COST BELOW) .......... 215,917,591
--------------
CASH ....................................................... 25,000
RECEIVABLE FOR FUND SHARES ISSUED .......................... 8,125
RECEIVABLES FOR DIVIDENDS AND INTEREST ..................... 0
--------------
TOTAL ASSETS ................................................. 215,950,716
--------------
LIABILITIES
PAYABLE FOR DAILY VARIATION MARGIN ON FUTURES CONTRACTS .... 92,983
PAYABLE FOR FUND SHARES REDEEMED ........................... 0
PAYABLE FOR INVESTMENTS PURCHASED .......................... 0
DIVIDENDS PAYABLE .......................................... 0
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) ...... 23,138
PAYABLE TO THE TRUSTEES AND SHAREHOLDER SERVICING AGENT .... 51,329
PAYABLE FOR SECURITIES LOANED (NOTE 2) ..................... 0
ACCRUED EXPENSES AND OTHER LIABILITIES ..................... 15,126
--------------
TOTAL LIABILITIES ............................................ 182,576
--------------
TOTAL NET ASSETS ............................................. $ 215,768,140
==============
NET ASSETS CONSIST OF:
- -------------------------------------------------------------------------------
PAID-IN CAPITAL ............................................ $ 181,391,225
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ................. 526,910
UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON INVESTMENTS ...... 5,550,356
NET UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS, FOREIGN CURRENCIES AND TRANSLATION OF ASSETS
AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES ........ 26,858,476
NET UNREALIZED APPRECIATION (DEPRECIATION) OF FUTURES ...... 1,441,173
--------------
TOTAL NET ASSETS ............................................. $ 215,768,140
--------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE(1)
- -------------------------------------------------------------------------------
NET ASSETS - CLASS A ....................................... N/A
SHARES OUTSTANDING - CLASS A ............................... N/A
NET ASSET VALUE PER SHARE - CLASS A ........................ N/A
MAXIMUM OFFERING PRICE PER SHARE - CLASS A(2) .............. N/A
NET ASSETS - CLASS B ....................................... N/A
SHARES OUTSTANDING - CLASS B ............................... N/A
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS B ..... N/A
NET ASSETS - CLASS C ....................................... N/A
SHARES OUTSTANDING - CLASS C ............................... N/A
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS C ..... N/A
NET ASSETS - ADMINISTRATOR CLASS ........................... $ 215,768,140
SHARES OUTSTANDING - ADMINISTRATOR CLASS ................... 14,308,564
NET ASSET VALUE AND OFFERING PRICE PER SHARE -
ADMINISTRATOR CLASS ...................................... $ 15.08
--------------
INVESTMENTS AT COST .......................................... $ 189,059,115
==============
SECURITIES ON LOAN, AT MARKET VALUE .......................... $ 0
==============
(1) EACH FUND HAS AN UNLIMITED NUMBER OF AUTHORIZED SHARES.
(2) MAXIMUM OFFERING PRICE IS COMPUTED AS 100/94.25 OF NET ASSET VALUE. ON
INVESTMENTS OF $50,000 OR MORE, THE OFFERING PRICE IS REDUCED.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
36
STATEMENTS OF ASSETS AND LIABILITIES WELLS FARGO ADVANTAGE ALLOCATION FUNDS
- -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSET CONSERVATIVE GROWTH MODERATE
ALLOCATION FUND ALLOCATION FUND BALANCED FUND BALANCED FUND
- -----------------------------------------------------------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE ............................. $1,073,150,470 $ 1,368,049 $ 18,546,479 $ 3,667,928
INVESTMENTS IN AFFILIATED MASTER PORTFOLIOS ................ 0 466,266,677 2,017,037,426 572,480,159
COLLATERAL FOR SECURITIES LOANED (NOTE 2) .................. 492,642,485 0 0 0
INVESTMENTS IN AFFILIATES .................................. 59,802,637 0 0 0
-------------- -------------- -------------- --------------
TOTAL INVESTMENTS AT MARKET VALUE (SEE COST BELOW) .......... 1,625,595,592 467,634,726 2,035,583,905 576,148,087
-------------- -------------- -------------- --------------
CASH ....................................................... 100,350 25,000 25,000 25,000
RECEIVABLE FOR FUND SHARES ISSUED .......................... 176,290 1,075 1,881,427 103,474
RECEIVABLES FOR DIVIDENDS AND INTEREST ..................... 5,760,390 0 0 0
-------------- -------------- -------------- --------------
TOTAL ASSETS ................................................. 1,631,632,622 467,660,801 2,037,490,332 576,276,561
-------------- -------------- -------------- --------------
LIABILITIES
PAYABLE FOR DAILY VARIATION MARGIN ON FUTURES CONTRACTS .... 880,463 69,069 891,344 170,769
PAYABLE FOR FUND SHARES REDEEMED ........................... 1,723,966 13,021 243,786 5,167
PAYABLE FOR INVESTMENTS PURCHASED .......................... 5,665,676 0 0 0
DIVIDENDS PAYABLE .......................................... 0 0 774 7
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) ...... 616,924 80,143 280,532 71,363
PAYABLE TO THE TRUSTEES AND SHAREHOLDER SERVICING AGENT .... 379,588 107,598 529,377 135,895
PAYABLE FOR SECURITIES LOANED (NOTE 2) ..................... 492,642,485 0 0 0
ACCRUED EXPENSES AND OTHER LIABILITIES ..................... 58,921 18,676 48,935 22,117
-------------- -------------- -------------- --------------
TOTAL LIABILITIES ............................................ 501,968,023 288,507 1,994,748 405,318
-------------- -------------- -------------- --------------
TOTAL NET ASSETS ............................................. $1,129,664,599 $ 467,372,294 $2,035,495,584 $ 575,871,243
============== ============== ============== ==============
NET ASSETS CONSIST OF:
- -----------------------------------------------------------------------------------------------------------------------------------
PAID-IN CAPITAL ............................................ $1,112,635,243 $ 443,101,567 $1,716,724,370 $ 500,884,876
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ................. 340,508 3,443,363 8,329,290 3,725,932
UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON INVESTMENTS ...... (52,769,864) 3,063,991 50,803,075 10,480,746
NET UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS, FOREIGN CURRENCIES AND TRANSLATION OF ASSETS
AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES ........ 57,239,705 16,710,025 245,647,167 58,119,777
NET UNREALIZED APPRECIATION (DEPRECIATION) OF FUTURES ...... 12,219,007 1,053,348 13,991,682 2,659,912
-------------- -------------- -------------- --------------
TOTAL NET ASSETS ............................................. $1,129,664,599 $ 467,372,294 $2,035,495,584 $ 575,871,243
-------------- -------------- -------------- --------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE(1)
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS - CLASS A ....................................... $ 907,503,617 N/A $ 62,057,075 $ 5,547,625
SHARES OUTSTANDING - CLASS A ............................... 44,488,739 N/A 1,886,241 258,308
NET ASSET VALUE PER SHARE - CLASS A ........................ $ 20.40 N/A $ 32.90 $ 21.48
MAXIMUM OFFERING PRICE PER SHARE - CLASS A(2) .............. $ 21.64 N/A $ 34.91 $ 22.79
NET ASSETS - CLASS B ....................................... $ 135,921,036 N/A $ 82,519,694 $ 3,225,928
SHARES OUTSTANDING - CLASS B ............................... 10,959,559 N/A 2,764,001 151,129
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS B ..... $ 12.40 N/A $ 29.86 $ 21.35
NET ASSETS - CLASS C ....................................... $ 39,009,792 N/A $ 17,421,003 $ 1,206,391
SHARES OUTSTANDING - CLASS C ............................... 3,142,473 N/A 581,994 56,485
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS C ..... $ 12.41 N/A $ 29.93 $ 21.36
NET ASSETS - ADMINISTRATOR CLASS ........................... $ 47,230,154 $ 467,372,294 $1,873,497,812 $ 565,891,299
SHARES OUTSTANDING - ADMINISTRATOR CLASS ................... 2,312,128 24,358,631 61,674,486 26,261,415
NET ASSET VALUE AND OFFERING PRICE PER SHARE -
ADMINISTRATOR CLASS ...................................... $ 20.43 $ 19.19 $ 30.38 $ 21.55
-------------- -------------- -------------- --------------
INVESTMENTS AT COST .......................................... $1,568,355,887 $ 450,924,701 $1,789,936,738 $ 518,028,310
============== ============== ============== ==============
SECURITIES ON LOAN, AT MARKET VALUE .......................... $ 480,945,819 $ 0 $ 0 $ 0
============== ============== ============== ==============
37
STATEMENT OF OPERATIONS --
FOR THE SIX MONTHS ENDED MARCH 31, 2006
WELLS FARGO ADVANTAGE ALLOCATION FUNDS UNAUDITED)
- --------------------------------------------------------------------------------
AGGRESSIVE
ALLOCATION FUND
- --------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS(1) .............................................. $ 0
DIVIDENDS ALLOCATED FROM AFFILIATED MASTER PORTFOLIOS ..... 1,358,154
INTEREST .................................................. 37,683
INTEREST INCOME ALLOCATED FROM AFFILIATED MASTER PORTFOLIOS 1,005,746
INCOME FROM AFFILIATED SECURITIES ......................... 0
SECURITIES LENDING INCOME, NET ............................ 0
EXPENSES ALLOCATED FROM AFFILIATED MASTER PORTFOLIOS ...... (585,499)
WAIVERS ALLOCATED FROM AFFILIATED MASTER PORTFOLIOS ....... 79,276
--------------
TOTAL INVESTMENT INCOME ...................................... 1,895,360
--------------
EXPENSES
ADVISORY FEES ............................................. 254,423
ADMINISTRATION FEES
FUND LEVEL ............................................ 50,885
CLASS A ............................................... N/A
CLASS B ............................................... N/A
CLASS C ............................................... N/A
ADMINISTRATOR CLASS ................................... 101,769
CUSTODY FEES .............................................. 0
SHAREHOLDER SERVICING FEES ................................ 254,423
ACCOUNTING FEES ........................................... 14,755
DISTRIBUTION FEES (NOTE 3)
CLASS B ............................................... N/A
CLASS C ............................................... N/A
PROFESSIONAL FEES ......................................... 8,961
REGISTRATION FEES ......................................... 17,103
SHAREHOLDER REPORTS ....................................... 14,834
TRUSTEES' FEES ............................................ 3,773
OTHER FEES AND EXPENSES ................................... 4,571
--------------
TOTAL EXPENSES ............................................... 725,497
--------------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) .............. (213,850)
NET EXPENSES .............................................. 511,647
--------------
NET INVESTMENT INCOME (LOSS) ................................. 1,383,713
--------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- -------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY
TRANSLATION ............................................. 16,265
FUTURES TRANSACTIONS ...................................... 1,775,337
SECURITIES TRANSACTIONS ALLOCATED FROM MASTER PORTFOLIOS .. 5,022,289
FORWARD FOREIGN CURRENCY CONTRACTS ALLOCATED FROM MASTER
PORTFOLIOS .............................................. 341
FUTURES TRANSACTIONS ALLOCATED FROM MASTER PORTFOLIOS ..... (65,079)
OPTIONS, SWAP AGREEMENT AND SHORT SALE TRANSACTIONS
ALLOCATED FROM MASTER PORTFOLIOS ........................ 30
--------------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS .................... 6,749,183
--------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY
TRANSLATION ............................................. 0
FUTURES TRANSACTIONS ...................................... 784,491
OPTIONS, SWAP AGREEMENTS AND SHORT SALE TRANSACTIONS ...... 0
SECURITIES TRANSACTIONS ALLOCATED FROM MASTER PORTFOLIOS .. 4,165,321
FORWARDS, FUTURES, OPTIONS, SWAPS AND SHORT SALES ALLOCATED
FROM MASTER PORTFOLIOS .................................. 1,759,663
--------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS ................................................ 6,709,475
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ....... 13,458,658
--------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS .............................................. $ 14,842,371
==============
(1) NET OF FOREIGN WITHHOLDING TAXES OF ...................... $ 17,705
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
38
STATEMENT OF OPERATIONS --
FOR THE SIX MONTHS ENDED MARCH 31, 2006
(UNAUDITED) WELLS FARGO ADVANTAGE ALLOCATION FUNDS
- --------------------------------------------------------------------------------
ASSET CONSERVATIVE GROWTH MODERATE
ALLOCATION FUND ALLOCATION FUND BALANCED FUND BALANCED FUND
- -----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS(1) .............................................. $ 6,471,013 $ 0 $ 0 $ 0
DIVIDENDS ALLOCATED FROM AFFILIATED MASTER PORTFOLIOS ..... 0 1,028,787 11,141,043 2,137,059
INTEREST .................................................. 10,721,077 28,019 379,535 73,028
INTEREST INCOME ALLOCATED FROM AFFILIATED MASTER PORTFOLIOS 0 8,711,065 17,311,300 8,266,446
INCOME FROM AFFILIATED SECURITIES ......................... 826,789 0 0 0
SECURITIES LENDING INCOME, NET ............................ 408,797 0 0 0
EXPENSES ALLOCATED FROM AFFILIATED MASTER PORTFOLIOS ...... 0 (1,078,042) (5,473,042) (1,453,776)
WAIVERS ALLOCATED FROM AFFILIATED MASTER PORTFOLIOS ....... 0 259,807 973,947 309,784
-------------- -------------- -------------- --------------
TOTAL INVESTMENT INCOME ...................................... 18,427,676 8,949,636 24,332,783 9,332,541
-------------- -------------- -------------- --------------
EXPENSES
ADVISORY FEES ............................................. 3,511,973 561,800 2,505,924 711,422
ADMINISTRATION FEES
FUND LEVEL ............................................ 285,273 112,360 501,185 142,284
CLASS A ............................................... 1,288,402 N/A 82,850 6,982
CLASS B ............................................... 194,773 N/A 116,770 4,447
CLASS C ............................................... 56,121 N/A 24,900 1,704
ADMINISTRATOR CLASS ................................... 20,797 224,720 922,184 279,878
CUSTODY FEES .............................................. 114,109 0 0 0
SHAREHOLDER SERVICING FEES ................................ 1,426,364 561,800 2,505,924 711,422
ACCOUNTING FEES ........................................... 36,787 20,534 192,514 32,724
DISTRIBUTION FEES (NOTE 3)
CLASS B ............................................... 521,712 N/A 312,776 11,913
CLASS C ............................................... 150,325 N/A 66,697 4,565
PROFESSIONAL FEES ......................................... 69,223 8,555 54,089 12,649
REGISTRATION FEES ......................................... 20,135 9,304 53,583 45,041
SHAREHOLDER REPORTS ....................................... 79,303 16,269 86,216 31,054
TRUSTEES' FEES ............................................ 3,956 3,758 3,776 3,772
OTHER FEES AND EXPENSES ................................... 113,672 7,275 25,257 7,148
-------------- -------------- -------------- --------------
TOTAL EXPENSES ............................................... 7,892,925 1,526,375 7,454,645 2,007,005
-------------- -------------- -------------- --------------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) .............. (711,605) (434,113) (1,850,408) (561,326)
NET EXPENSES .............................................. 7,181,320 1,092,262 5,604,237 1,445,679
-------------- -------------- -------------- --------------
NET INVESTMENT INCOME (LOSS) ................................. 11,246,356 7,857,374 18,728,546 7,886,862
-------------- -------------- -------------- --------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- -----------------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY
TRANSLATION ............................................. (3,789,907) 45,922 217,670 77,535
FUTURES TRANSACTIONS ...................................... 18,100,912 1,368,295 18,039,863 3,407,147
SECURITIES TRANSACTIONS ALLOCATED FROM MASTER PORTFOLIOS .. 0 2,339,686 43,998,374 9,145,964
FORWARD FOREIGN CURRENCY CONTRACTS ALLOCATED FROM MASTER
PORTFOLIOS .............................................. 0 191 2,781 489
FUTURES TRANSACTIONS ALLOCATED FROM MASTER PORTFOLIOS ..... 0 (582,875) (980,888) (107,301)
OPTIONS, SWAP AGREEMENT AND SHORT SALE TRANSACTIONS
ALLOCATED FROM MASTER PORTFOLIOS ........................ 0 10,422 576 7,739
-------------- -------------- -------------- --------------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS .................... 14,311,005 3,181,641 61,278,376 12,531,573
-------------- -------------- -------------- --------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY
TRANSLATION ............................................. 15,053,653 0 0 0
FUTURES TRANSACTIONS ...................................... 5,776,494 1,053,348 13,991,682 1,391,599
OPTIONS, SWAP AGREEMENTS AND SHORT SALE TRANSACTIONS ...... 0 0 0 0
SECURITIES TRANSACTIONS ALLOCATED FROM MASTER PORTFOLIOS .. 0 (1,582,787) 36,097,418 (4,480,603)
FORWARDS, FUTURES, OPTIONS, SWAPS AND SHORT SALES ALLOCATED
FROM MASTER PORTFOLIOS .................................. 0 (581,737) (7,895,653) 5,711,800
-------------- -------------- -------------- --------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS ................................................ 20,830,147 (1,111,176) 42,193,447 2,622,796
-------------- -------------- -------------- --------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ....... 35,141,152 2,070,465 103,471,823 15,154,369
-------------- -------------- -------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS .............................................. $ 46,387,508 $ 9,927,839 $ 122,200,369 $ 23,041,231
============== ============== ============== ==============
(1) NET OF FOREIGN WITHHOLDING TAXES OF ...................... $ 0 $ 9,778 $ 139,078 $ 24,368
39
WELLS FARGO ADVANTAGE ALLOCATION FUNDS STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
AGGRESSIVE ALLOCATION FUND
--------------------------------
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
MARCH 31, 2006 SEPTEMBER 30,
(UNAUDITED) 2005
- -------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ...................................... $ 196,483,994 $ 170,382,855
OPERATIONS:
NET INVESTMENT INCOME (LOSS) .............................. 1,383,713 2,682,223
NET REALIZED GAIN (LOSS) ON INVESTMENTS ................... 6,749,183 10,631,305
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS ............................................. 6,709,475 8,480,585
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 14,842,371 21,794,113
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ................................................ N/A N/A
CLASS B ................................................ N/A N/A
CLASS C ................................................ N/A N/A
ADMINISTRATOR CLASS .................................... (2,800,058) (2,121,971)
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A ................................................ N/A N/A
CLASS B ................................................ N/A N/A
CLASS C ................................................ N/A N/A
ADMINISTRATOR CLASS .................................... (4,735,077) 0
-------------- --------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS .......................... (7,535,135) (2,121,971)
-------------- --------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A (NOTE 1) ........... N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS A (NOTE 1) ....... N/A N/A
COST OF SHARES REDEEMED - CLASS A (NOTE 1) ............. N/A N/A
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - CLASS A ........................... N/A N/A
-------------- --------------
PROCEEDS FROM SHARES SOLD - CLASS B (NOTE 1) ........... N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS B (NOTE 1) ....... N/A N/A
COST OF SHARES REDEEMED - CLASS B (NOTE 1) ............. N/A N/A
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - CLASS B ........................... N/A N/A
-------------- --------------
PROCEEDS FROM SHARES SOLD - CLASS C (NOTE 1) ........... N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS C (NOTE 1) ....... N/A N/A
COST OF SHARES REDEEMED - CLASS C (NOTE 1) ............. N/A N/A
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - CLASS C ........................... N/A N/A
-------------- --------------
PROCEEDS FROM SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) 51,911,757 115,575,260
REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR
CLASS (NOTE 1) ...................................... 7,517,462 2,109,259
COST OF SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) . (47,452,309) (111,255,522)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS -
ADMINISTRATOR CLASS ....................................... 11,976,910 6,428,997
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS ........................................ 11,976,910 6,428,997
============== ==============
NET INCREASE (DECREASE) IN NET ASSETS ........................ 19,284,146 26,101,139
============== ==============
ENDING NET ASSETS ............................................ $ 215,768,140 $ 196,483,994
============== ==============
(1) PROCEEDS FROM SHARES SOLD MAY INCLUDE AMOUNTS RELATED TO FUND MERGERS AND
SHARE CLASS CONVERSIONS. SEE NOTE 1.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
40
STATEMENTS OF CHANGES IN NET ASSETS WELLS FARGO ADVANTAGE ALLOCATION FUNDS
- --------------------------------------------------------------------------------
ASSET ALLOCATION FUND CONSERVATIVE ALLOCATION FUND
-------------------------------- -------------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
MARCH 31, 2006 SEPTEMBER 30, MARCH 31, 2006 SEPTEMBER 30,
(UNAUDITED) 2005(1) (UNAUDITED) 2005
- -----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ...................................... $1,159,036,372 $1,135,947,526 $ 442,285,061 $ 412,341,156
OPERATIONS:
NET INVESTMENT INCOME (LOSS) .............................. 11,246,356 22,664,646 7,857,374 12,306,323
NET REALIZED GAIN (LOSS) ON INVESTMENTS ................... 14,311,005 11,998,935 3,181,641 9,507,241
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS ............................................. 20,830,147 95,488,711 (1,111,176) (1,122,393)
-------------- -------------- -------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 46,387,508 130,152,292 9,927,839 20,691,171
-------------- -------------- -------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ................................................ (9,259,919) (19,147,898) N/A N/A
CLASS B ................................................ (870,635) (2,268,679) N/A N/A
CLASS C ................................................ (252,527) (429,936) N/A N/A
ADMINISTRATOR CLASS .................................... (522,479) (878,988) (14,500,101) (8,953,894)
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A ................................................ (9,943,175) (20,107,355) N/A N/A
CLASS B ................................................ (1,507,896) (4,447,287) N/A N/A
CLASS C ................................................ (435,861) (564,680) N/A N/A
ADMINISTRATOR CLASS .................................... (387,595) (849,828) (8,664,277) (4,886,634)
-------------- -------------- -------------- --------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS .......................... (23,180,087) (48,694,651) (23,164,378) (13,840,528)
-------------- -------------- -------------- --------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A (NOTE 1) ........... 11,903,923 105,002,997 N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS A (NOTE 1) ....... 18,532,381 38,140,417 N/A N/A
COST OF SHARES REDEEMED - CLASS A (NOTE 1) ............. (76,614,700) (146,362,787) N/A N/A
-------------- -------------- -------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - CLASS A ........................... (46,178,396) (3,219,373) N/A N/A
-------------- -------------- -------------- --------------
PROCEEDS FROM SHARES SOLD - CLASS B (NOTE 1) ........... 3,064,204 21,504,108 N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS B (NOTE 1) ....... 2,232,658 6,399,716 N/A N/A
COST OF SHARES REDEEMED - CLASS B (NOTE 1) ............. (18,781,919) (95,054,913) N/A N/A
-------------- -------------- -------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - CLASS B ........................... (13,485,057) (67,151,089) N/A N/A
-------------- -------------- -------------- --------------
PROCEEDS FROM SHARES SOLD - CLASS C (NOTE 1) ........... 1,280,327 24,242,271 N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS C (NOTE 1) ....... 580,911 864,446 N/A N/A
COST OF SHARES REDEEMED - CLASS C (NOTE 1) ............. (4,475,360) (9,814,621) N/A N/A
-------------- -------------- -------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - CLASS C ........................... (2,614,122) 15,292,096 N/A N/A
-------------- -------------- -------------- --------------
PROCEEDS FROM SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) 39,728,683 10,323,971 170,871,888 300,165,852
REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR
CLASS (NOTE 1) ...................................... 896,208 1,692,283 23,081,989 13,759,922
COST OF SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) . (30,926,510) (15,306,683) (155,630,105) (290,832,512)
-------------- -------------- -------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS -
ADMINISTRATOR CLASS ....................................... 9,698,381 (3,290,429) 38,323,772 23,093,262
-------------- -------------- -------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS ........................................ (52,579,194) (58,368,795) 38,323,772 23,093,262
============== ============== ============== ==============
NET INCREASE (DECREASE) IN NET ASSETS ........................ (29,371,773) 23,088,846 25,087,233 29,943,905
============== ============== ============== ==============
ENDING NET ASSETS ............................................ $1,129,664,599 $1,159,036,372 $ 467,372,294 $ 442,285,061
============== ============== ============== ==============
41
WELLS FARGO ADVANTAGE ALLOCATION FUNDS STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
AGGRESSIVE ALLOCATION FUND
--------------------------------
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
MARCH 31, 2006 SEPTEMBER 30,
(UNAUDITED) 2005
- -------------------------------------------------------------------------------------------------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A (NOTE 1) ............................ N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS -
CLASS A (NOTE 1) ....................................... N/A N/A
SHARES REDEEMED - CLASS A (NOTE 1) ........................ N/A N/A
-------------- --------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A ...... N/A N/A
-------------- --------------
SHARES SOLD - CLASS B (NOTE 1) ............................ N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS -
CLASS B (NOTE 1) ....................................... N/A N/A
SHARES REDEEMED - CLASS B (NOTE 1) ........................ N/A N/A
-------------- --------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B ...... N/A N/A
-------------- --------------
SHARES SOLD - CLASS C (NOTE 1) ............................ N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS -
CLASS C (NOTE 1) ....................................... N/A N/A
SHARES REDEEMED - CLASS C (NOTE 1) ........................ N/A N/A
-------------- --------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C ...... N/A N/A
-------------- --------------
SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ................ 3,574,466 8,328,304
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS -
ADMINISTRATOR CLASS (NOTE 1) ........................... 512,535 151,745
SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) ............ (3,266,373) (8,011,483)
-------------- --------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
ADMINISTRATOR CLASS ....................................... 820,628 468,566
-------------- --------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING
FROM CAPITAL SHARE TRANSACTIONS ........................... 820,628 468,566
============== ==============
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) . $ 526,910 $ 1,943,255
============== ==============
(1) SHARES SOLD MAY INCLUDE AMOUNTS RELATED TO FUND MERGERS AND SHARE CLASS
CONVERSIONS. SEE NOTE 1.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
42
STATEMENTS OF CHANGES IN NET ASSETS WELLS FARGO ADVANTAGE ALLOCATION FUNDS
- --------------------------------------------------------------------------------
ASSET ALLOCATION FUND CONSERVATIVE ALLOCATION FUND
-------------------------------- -------------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
MARCH 31, 2006 SEPTEMBER 30, MARCH 31, 2006 SEPTEMBER 30,
(UNAUDITED) 2005(1) (UNAUDITED) 2005
- -----------------------------------------------------------------------------------------------------------------------------------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A (NOTE 1) ............................ 595,765 6,273,336 N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS -
CLASS A (NOTE 1) ....................................... 915,403 1,948,580 N/A N/A
SHARES REDEEMED - CLASS A (NOTE 1) ........................ (3,795,231) (7,460,920) N/A N/A
-------------- -------------- -------------- --------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A ...... (2,284,063) 760,996 N/A N/A
-------------- -------------- -------------- --------------
SHARES SOLD - CLASS B (NOTE 1) ............................ 249,065 1,284,563 N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS -
CLASS B (NOTE 1) ....................................... 181,657 538,452 N/A N/A
SHARES REDEEMED - CLASS B (NOTE 1) ........................ (1,539,916) (7,968,855) N/A N/A
-------------- -------------- -------------- --------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B ...... (1,109,194) (6,145,840) N/A N/A
-------------- -------------- -------------- --------------
SHARES SOLD - CLASS C (NOTE 1) ............................ 103,832 1,899,403 N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS -
CLASS C (NOTE 1) ....................................... 47,210 72,542 N/A N/A
SHARES REDEEMED - CLASS C (NOTE 1) ........................ (362,751) (826,806) N/A N/A
-------------- -------------- -------------- --------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C ...... (211,709) 1,145,139 N/A N/A
-------------- -------------- -------------- --------------
SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ................ 1,952,217 525,602 8,838,113 15,394,472
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS -
ADMINISTRATOR CLASS (NOTE 1) ........................... 44,150 86,330 1,201,459 707,699
SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) ............ (1,523,529) (780,279) (8,046,631) (14,902,910)
-------------- -------------- -------------- --------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
ADMINISTRATOR CLASS ....................................... 472,838 (168,347) 1,992,941 1,199,261
-------------- -------------- -------------- --------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING
FROM CAPITAL SHARE TRANSACTIONS ........................... (3,132,128) (4,408,052) 1,992,941 1,199,261
============== ============== ============== ==============
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) . $ 340,508 $ (288) $ 3,443,363 $ 10,086,090
============== ============== ============== ==============
43
WELLS FARGO ADVANTAGE ALLOCATION FUNDS STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
GROWTH BALANCED FUND
-------------------------------
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
MARCH 31, 2006 SEPTEMBER 30,
(UNAUDITED) 2005
- -----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ......................................................................... $2,009,757,928 $1,905,931,025
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ................................................................. 18,728,546 35,614,901
NET REALIZED GAIN (LOSS) ON INVESTMENTS ...................................................... 61,278,376 113,174,106
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS .......................... 42,193,447 54,644,760
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ................................. 122,200,369 203,433,767
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ................................................................................... (822,443) (750,931)
CLASS B ................................................................................... (678,739) (638,099)
CLASS C ................................................................................... (140,461) (85,909)
ADMINISTRATOR CLASS ....................................................................... (33,351,944) (30,612,329)
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A ................................................................................... (2,975,958) (379,590)
CLASS B ................................................................................... (4,702,473) (665,956)
CLASS C ................................................................................... (1,011,770) (150,975)
ADMINISTRATOR CLASS ....................................................................... (101,273,947) (12,884,897)
-------------- --------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ............................................................. (144,957,735) (46,168,686)
-------------- --------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A .......................................................... 12,842,486 14,714,148
REINVESTMENT OF DISTRIBUTIONS - CLASS A ...................................................... 3,674,178 1,082,618
COST OF SHARES REDEEMED - CLASS A ............................................................ (12,314,702) (18,969,114)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS A ....... 4,201,962 (3,172,348)
-------------- --------------
PROCEEDS FROM SHARES SOLD - CLASS B .......................................................... 1,969,472 5,312,567
REINVESTMENT OF DISTRIBUTIONS - CLASS B ...................................................... 5,218,862 1,255,613
COST OF SHARES REDEEMED - CLASS B ............................................................ (9,294,738) (18,056,504)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS B ....... (2,106,404) (11,488,324)
-------------- --------------
PROCEEDS FROM SHARES SOLD - CLASS C .......................................................... 805,711 1,276,690
REINVESTMENT OF DISTRIBUTIONS - CLASS C ...................................................... 1,098,695 224,391
COST OF SHARES REDEEMED - CLASS C ............................................................ (2,589,913) (5,674,764)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS C ....... (685,507) (4,173,683)
-------------- --------------
PROCEEDS FROM SHARES SOLD - ADMINISTRATOR CLASS .............................................. 127,400,988 330,586,029
REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS .......................................... 133,904,580 43,042,894
COST OF SHARES REDEEMED - ADMINISTRATOR CLASS ................................................ (214,220,597) (408,232,746)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS -
ADMINISTRATOR CLASS .......................................................................... 47,084,971 (34,603,823)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS ................. 48,495,022 (53,438,178)
============== ==============
NET INCREASE (DECREASE) IN NET ASSETS ........................................................... 25,737,656 103,826,903
============== ==============
ENDING NET ASSETS ............................................................................... $2,035,495,584 $2,009,757,928
============== ==============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
44
STATEMENTS OF CHANGES IN NET ASSETS WELLS FARGO ADVANTAGE ALLOCATION FUNDS
- --------------------------------------------------------------------------------
MODERATE BALANCED FUND
-------------------------------
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
MARCH 31, 2006 SEPTEMBER 30,
(UNAUDITED) 2005
- -----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ......................................................................... $ 566,653,608 $ 550,271,338
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ................................................................. 7,886,862 13,145,013
NET REALIZED GAIN (LOSS) ON INVESTMENTS ...................................................... 12,531,573 29,279,463
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS .......................... 2,622,796 (1,579,072)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ................................. 23,041,231 40,845,404
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ................................................................................... (116,185) (64,284)
CLASS B ................................................................................... (55,427) (37,532)
CLASS C ................................................................................... (20,532) (11,920)
ADMINISTRATOR CLASS ....................................................................... (14,551,656) (10,270,932)
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A ................................................................................... (237,619) (99,431)
CLASS B ................................................................................... (161,257) (75,659)
CLASS C ................................................................................... (60,393) (24,448)
ADMINISTRATOR CLASS ....................................................................... (27,563,965) (15,989,096)
-------------- --------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ............................................................. (42,767,034) (26,573,302)
-------------- --------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A .......................................................... 2,188,287 3,774,421
REINVESTMENT OF DISTRIBUTIONS - CLASS A ...................................................... 346,052 158,415
COST OF SHARES REDEEMED - CLASS A ............................................................ (1,574,891) (1,850,068)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS A ....... 959,448 2,082,768
-------------- --------------
PROCEEDS FROM SHARES SOLD - CLASS B .......................................................... 544,446 1,766,202
REINVESTMENT OF DISTRIBUTIONS - CLASS B ...................................................... 193,156 92,932
COST OF SHARES REDEEMED - CLASS B ............................................................ (533,298) (1,096,408)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS B ....... 204,304 762,726
-------------- --------------
PROCEEDS FROM SHARES SOLD - CLASS C .......................................................... 91,063 721,906
REINVESTMENT OF DISTRIBUTIONS - CLASS C ...................................................... 78,080 35,955
COST OF SHARES REDEEMED - CLASS C ............................................................ (147,983) (249,533)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS C ....... 21,160 508,328
-------------- --------------
PROCEEDS FROM SHARES SOLD - ADMINISTRATOR CLASS .............................................. 52,103,737 134,441,697
REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS .......................................... 41,717,362 25,920,575
COST OF SHARES REDEEMED - ADMINISTRATOR CLASS ................................................ (66,062,573) (161,605,926)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS -
ADMINISTRATOR CLASS .......................................................................... 27,758,526 (1,243,654)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS ................. 28,943,438 2,110,168
============== ==============
NET INCREASE (DECREASE) IN NET ASSETS ........................................................... 9,217,635 16,382,270
============== ==============
ENDING NET ASSETS ............................................................................... $ 575,871,243 $ 566,653,608
============== ==============
45
WELLS FARGO ADVANTAGE ALLOCATION FUNDS STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
GROWTH BALANCED FUND
-------------------------------
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
MARCH 31, 2006 SEPTEMBER 30,
(UNAUDITED) 2005
- -----------------------------------------------------------------------------------------------------------------------------------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A ........................................................................ 394,263 460,600
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS A ..................................... 113,707 33,872
SHARES REDEEMED - CLASS A .................................................................... (377,118) (593,297)
-------------- --------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A ......................................... 130,852 (98,825)
-------------- --------------
SHARES SOLD - CLASS B ........................................................................ 66,371 182,640
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS B ..................................... 178,236 42,938
SHARES REDEEMED - CLASS B .................................................................... (313,512) (619,267)
-------------- --------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B ......................................... (68,905) (393,689)
-------------- --------------
SHARES SOLD - CLASS C ........................................................................ 27,047 43,794
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS C ..................................... 37,420 7,664
SHARES REDEEMED - CLASS C .................................................................... (87,441) (194,388)
-------------- --------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C ......................................... (22,974) (142,930)
-------------- --------------
SHARES SOLD - ADMINISTRATOR CLASS ............................................................ 4,229,012 11,160,084
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS ......................... 4,480,865 1,450,738
SHARES REDEEMED - ADMINISTRATOR CLASS ........................................................ (7,116,839) (13,742,061)
-------------- --------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADMINISTRATOR CLASS ............................. 1,593,038 (1,131,239)
-------------- --------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM CAPITAL SHARE TRANSACTIONS ......... 1,632,011 (1,766,683)
============== ==============
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) .................................... $ 8,329,290 $ 24,594,331
============== ==============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
46
STATEMENTS OF CHANGES IN NET ASSETS WELLS FARGO ADVANTAGE ALLOCATION FUNDS
- --------------------------------------------------------------------------------
MODERATE BALANCED FUND
-------------------------------
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
MARCH 31, 2006 SEPTEMBER 30,
(UNAUDITED) 2005
- -----------------------------------------------------------------------------------------------------------------------------------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A ........................................................................ 101,707 172,733
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS A ..................................... 16,159 7,260
SHARES REDEEMED - CLASS A .................................................................... (72,968) (85,184)
-------------- --------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A ......................................... 44,898 94,809
-------------- --------------
SHARES SOLD - CLASS B ........................................................................ 25,321 81,242
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS B ..................................... 9,083 4,274
SHARES REDEEMED - CLASS B .................................................................... (24,892) (50,485)
-------------- --------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B ......................................... 9,512 35,031
-------------- --------------
SHARES SOLD - CLASS C ........................................................................ 4,198 33,303
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS C ..................................... 3,670 1,654
SHARES REDEEMED - CLASS C .................................................................... (6,855) (11,549)
-------------- --------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C ......................................... 1,013 23,408
-------------- --------------
SHARES SOLD - ADMINISTRATOR CLASS ............................................................ 2,386,289 6,147,585
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS ......................... 1,941,386 1,185,317
SHARES REDEEMED - ADMINISTRATOR CLASS ........................................................ (3,045,966) (7,389,095)
-------------- --------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADMINISTRATOR CLASS ............................. 1,281,709 (56,193)
-------------- --------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM CAPITAL SHARE TRANSACTIONS ......... 1,337,132 97,056
============== ==============
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) .................................... $ 3,725,932 $ 10,582,870
============== ==============
47
WELLS FARGO ADVANTAGE ALLOCATION FUNDS FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
NET REALIZED
BEGINNING NET AND DIVIDENDS DISTRIBUTIONS
NET ASSET INVESTMENT UNREALIZED FROM NET FROM NET
VALUE PER INCOME GAIN (LOSS) ON INVESTMENT REALIZED
SHARE (LOSS) INVESTMENTS INCOME GAINS
- -----------------------------------------------------------------------------------------------------------------------------
AGGRESSIVE ALLOCATION FUND
- -----------------------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)... $14.57 0.10 0.96 (0.20) (0.35)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005........... $13.09 0.19 1.45 (0.16) 0.00
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 .......... $11.85 0.14 1.26 (0.16) 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003........... $ 9.91 0.10 2.00 (0.16) 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002........... $12.02 0.13 (2.03) (0.11) (0.10)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001........... $14.78 0.17 (2.29) (0.17) (0.47)
ASSET ALLOCATION FUND
- -----------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)... $19.99 0.21 0.62 (0.20) (0.22)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005........... $18.80 0.40 1.64 (0.41) (0.44)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 .......... $17.50 0.36(6) 1.57 (0.36) (0.27)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003........... $14.97 0.30 2.53 (0.30) 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002........... $18.72 0.32 (2.52) (0.32) (1.23)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001........... $24.36 0.36 (3.87) (0.36) (1.77)
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)... $12.15 0.08 0.38 (0.08) (0.13)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005........... $11.42 0.15 1.00 (0.15) (0.27)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 .......... $10.63 0.13(6) 0.95 (0.13) (0.16)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003........... $ 9.09 0.10 1.54 (0.10) 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002........... $11.36 0.11 (1.53) (0.11) (0.74)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001........... $14.78 0.13 (2.35) (0.13) (1.07)
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)... $12.16 0.08 0.38 (0.08) (0.13)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005........... $11.44 0.17 0.98 (0.16) (0.27)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 .......... $10.65 0.13(6) 0.95 (0.13) (0.16)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003........... $ 9.11 0.11 1.54 (0.11) 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002........... $11.39 0.11 (1.53) (0.11) (0.75)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001........... $14.82 0.13 (2.35) (0.13) (1.08)
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)... $20.02 0.21 0.65 (0.23) (0.22)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005........... $18.82 0.47 1.63 (0.46) (0.44)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 .......... $17.53 0.40(6) 1.57 (0.41) (0.27)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003........... $14.99 0.33 2.56 (0.35) 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002........... $18.72 0.32 (2.50) (0.32) (1.23)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001........... $24.37 0.46 (3.98) (0.36) (1.77)
CONSERVATIVE ALLOCATION FUND
- -----------------------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)... $19.78 0.32 0.10 (0.63) (0.38)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005........... $19.48 0.54 0.40 (0.41) (0.23)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 .......... $19.23 0.44 0.46 (0.51) (0.14)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003........... $18.42 0.46 1.00 (0.60) (0.05)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002........... $19.92 0.61 (0.75) (0.78) (0.58)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001........... $20.44 0.84 (0.06) (0.93) (0.37)
GROWTH BALANCED FUND
- -----------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)... $33.09 0.26 1.71 (0.45) (1.71)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005........... $30.51 0.52 2.68 (0.41) (0.21)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 .......... $28.27 0.41(6) 2.41 (0.58) 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003........... $24.27 0.34 4.05 (0.39) 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002........... $29.18 0.38 (3.88) (0.23) (1.18)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001........... $34.96 0.59 (3.72) (0.62) (2.03)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
48
FINANCIAL HIGHLIGHTS WELLS FARGO ADVANTAGE ALLOCATION FUNDS
- --------------------------------------------------------------------------------
ENDING RATIO TO AVERAGE NET ASSETS (ANNUALIZED)(1)
NET ASSET --------------------------------------------------------
VALUE PER NET INVESTMENT GROSS EXPENSES NET
SHARE INCOME (LOSS) EXPENSES WAIVED EXPENSES
- -----------------------------------------------------------------------------------------------------------------------
AGGRESSIVE ALLOCATION FUND
- -----------------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)... $15.08 1.36% 1.21% (0.21)% 1.00%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005........... $14.57 1.42% 1.12%(4) (0.12)% 1.00%(4)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 .......... $13.09 1.14% 1.02%(4) (0.02)% 1.00%(4)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003........... $11.85 1.20% 1.13%(4) (0.13)% 1.00%(4)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002........... $ 9.91 1.20% 1.08%(4) (0.08)% 1.00%(4)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001........... $12.02 1.37% 1.03%(4) (0.03)% 1.00%(4)
ASSET ALLOCATION FUND
- -----------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)... $20.40 2.08% 1.27% (0.12)% 1.15%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005........... $19.99 2.06% 1.23% (0.08)% 1.15%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 .......... $18.80 1.90% 1.34% (0.19)% 1.15%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003........... $17.50 1.80% 1.45% (0.30)% 1.15%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002........... $14.97 1.76% 1.34% (0.25)% 1.09%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001........... $18.72 1.71% 1.20% (0.21)% 0.99%
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)... $12.40 1.33% 2.02% (0.12)% 1.90%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005........... $12.15 1.33% 1.98% (0.08)% 1.90%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 .......... $11.42 1.15% 2.09% (0.19)% 1.90%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003........... $10.63 1.05% 2.27% (0.37)% 1.90%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002........... $ 9.09 1.00% 2.15% (0.31)% 1.84%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001........... $11.36 0.96% 1.93% (0.19)% 1.74%
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)... $12.41 1.33% 2.02% (0.12)% 1.90%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005........... $12.16 1.26% 1.98% (0.08)% 1.90%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 .......... $11.44 1.15% 2.09% (0.19)% 1.90%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003........... $10.65 1.05% 2.23% (0.33)% 1.90%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002........... $ 9.11 1.01% 2.11% (0.27)% 1.84%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001........... $11.39 0.96% 1.89% (0.15)% 1.74%
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)... $20.43 2.34% 1.10% (0.20)% 0.90%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005........... $20.02 2.31% 1.00% (0.10)% 0.90%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 .......... $18.82 2.16% 1.10% (0.20)% 0.90%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003........... $17.53 2.04% 1.22% (0.31)% 0.91%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002........... $14.99 1.89% 1.15% (0.18)% 0.97%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001........... $18.72 1.70% 1.12% (0.12)% 1.00%
CONSERVATIVE ALLOCATION FUND
- -----------------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)... $19.19 3.50% 1.04% (0.19)% 0.85%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005........... $19.78 2.78% 1.01%(4) (0.16)% 0.85%(4)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 .......... $19.48 2.32% 0.90%(4) (0.05)% 0.85%(4)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003........... $19.23 2.78% 0.97%(4) (0.15)% 0.82%(4)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002........... $18.42 3.23% 1.00%(4) (0.20)% 0.80%(4)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001........... $19.92 4.34% 0.90%(4) (0.10)% 0.80%(4)
GROWTH BALANCED FUND
- -----------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)... $32.90 1.68% 1.33% (0.13)% 1.20%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005........... $33.09 1.59% 1.33%(4) (0.13)% 1.20%(4)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 .......... $30.51 1.33% 1.28%(4) (0.08)% 1.20%(4)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003........... $28.27 1.43% 1.48%(4) (0.28)% 1.20%(4)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002........... $24.27 1.60% 1.18%(4) (0.03)% 1.15%(4)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001........... $29.18 1.93% 1.30%(4) (0.15)% 1.15%(4)
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE (000'S OMITTED)
- -----------------------------------------------------------------------------------------------
AGGRESSIVE ALLOCATION FUND
- -----------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)... 7.43% 43%(5) $ 215,768
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005........... 12.61% 64%(5) $ 196,484
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 .......... 11.82% 42%(5) $ 170,383
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003........... 21.36% 43%(5) $ 131,760
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002........... (16.22)% 40%(5) $ 78,673
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001........... (14.97)% 49%(5) $ 82,908
ASSET ALLOCATION FUND
- -----------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)... 4.19% 1% $ 907,504
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005........... 11.03% 6% $ 934,783
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 .......... 11.12% 4% $ 864,857
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003........... 19.04% 15% $ 838,683
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002........... (13.20)% 23% $ 763,925
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001........... (15.52)% 54% $ 989,513
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)... 3.81% 1% $ 135,921
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005........... 10.19% 6% $ 146,644
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 .......... 10.24% 4% $ 208,029
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003........... 18.10% 15% $ 280,220
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002........... (13.83)% 23% $ 325,790
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001........... (16.18)% 54% $ 479,035
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)... 3.81% 1% $ 39,010
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005........... 10.15% 6% $ 40,795
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 .......... 10.25% 4% $ 25,268
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003........... 18.14% 15% $ 27,345
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002........... (13.86)% 23% $ 23,466
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001........... (16.16)% 54% $ 31,536
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)... 4.33% 1% $ 47,230
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005........... 11.35% 6% $ 36,815
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 .......... 11.33% 4% $ 37,794
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003........... 19.38% 15% $ 18,214
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002........... (13.09)% 23% $ 14,529
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001........... (15.57)% 54% $ 17,515
CONSERVATIVE ALLOCATION FUND
- -----------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)... 2.22% 94%(5) $ 467,372
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005........... 4.91% 102%(5) $ 442,285
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 .......... 4.74% 72%(5) $ 412,341
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003........... 8.17% 73%(5) $ 381,254
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002........... (0.89)% 71%(5) $ 288,610
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001........... 3.89% 77%(5) $ 301,041
GROWTH BALANCED FUND
- -----------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)... 6.17% 62%(5) $ 62,057
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005........... 10.58% 80%(5) $ 58,091
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 .......... 10.02% 51%(5) $ 56,566
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003........... 18.25% 53%(5) $ 43,509
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002........... (12.99)% 48%(5) $ 32,370
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001........... (9.78)% 60%(5) $ 25,049
49
WELLS FARGO ADVANTAGE ALLOCATION FUNDS FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
NET REALIZED
BEGINNING NET AND DIVIDENDS DISTRIBUTIONS
NET ASSET INVESTMENT UNREALIZED FROM NET FROM NET
VALUE PER INCOME GAIN (LOSS) ON INVESTMENT REALIZED
SHARE (LOSS) INVESTMENTS INCOME GAINS
- -----------------------------------------------------------------------------------------------------------------------------
GROWTH BALANCED FUND (CONTINUED)
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)... $30.12 0.12 1.56 (0.23) (1.71)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005........... $27.83 0.23 2.47 (0.20) (0.21)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 .......... $25.89 0.16(6) 2.22 (0.44) 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003........... $22.22 0.16 3.68 (0.17) 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002........... $26.92 0.19 (3.59) (0.12) (1.18)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001........... $32.50 0.39 (3.50) (0.44) (2.03)
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)... $30.19 0.13 1.55 (0.23) (1.71)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005........... $27.81 0.21 2.50 (0.12) (0.21)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 .......... $25.88 0.16(6) 2.21 (0.44) 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003........... $22.22 0.15 3.69 (0.18) 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002........... $26.91 0.17 (3.57) (0.11) (1.18)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001........... $32.50 0.39 (3.50) (0.45) (2.03)
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)... $30.76 0.27 1.60 (0.54) (1.71)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005........... $28.41 0.56 2.50 (0.50) (0.21)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 .......... $26.34 0.45(6) 2.25 (0.63) 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003........... $22.65 0.35 3.80 (0.46) 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002........... $27.33 0.44 (3.65) (0.29) (1.18)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001........... $32.91 0.57 (3.43) (0.69) (2.03)
MODERATE BALANCED FUND
- -----------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)... $22.23 0.28 0.58 (0.51) (1.10)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005........... $21.72 0.43 1.13 (0.40) (0.65)
JANUARY 30, 2004(3) TO SEPTEMBER 30, 2004 ...... $21.79 0.13 (0.20) 0.00 0.00
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)... $22.04 0.18 0.59 (0.36) (1.10)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005........... $21.62 0.31 1.08 (0.32) (0.65)
JANUARY 30, 2004(3) TO SEPTEMBER 30, 2004 ...... $21.79 0.06 (0.23) 0.00 0.00
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)... $22.05 0.19 0.58 (0.36) (1.10)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005........... $21.62 0.31 1.08 (0.31) (0.65)
JANUARY 30, 2004(3) TO SEPTEMBER 30, 2004 ...... $21.79 0.08 (0.25) 0.00 0.00
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)... $22.32 0.28 0.61 (0.56) (1.10)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005........... $21.76 0.52 1.10 (0.41) (0.65)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 .......... $21.09 0.42 1.10 (0.64) (0.21)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003........... $19.47 0.44 2.02 (0.64) (0.20)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002........... $22.29 0.56 (1.80) (0.54) (1.04)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001........... $24.83 0.76 (1.17) (0.87) (1.26)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
50
FINANCIAL HIGHLIGHTS WELLS FARGO ADVANTAGE ALLOCATION FUNDS
- --------------------------------------------------------------------------------
ENDING RATIO TO AVERAGE NET ASSETS (ANNUALIZED)(1)
NET ASSET --------------------------------------------------------
VALUE PER NET INVESTMENT GROSS EXPENSES NET
SHARE INCOME (LOSS) EXPENSES WAIVED EXPENSES
- -----------------------------------------------------------------------------------------------------------------------
GROWTH BALANCED FUND (CONTINUED)
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)... $29.86 0.93% 2.07% (0.12)% 1.95%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005........... $30.12 0.84% 2.08%(4) (0.13)% 1.95%(4)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 .......... $27.83 0.58% 2.02%(4) (0.07)% 1.95%(4)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003........... $25.89 0.69% 2.57%(4) (0.62)% 1.95%(4)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002........... $22.22 0.85% 2.13%(4) (0.23)% 1.90%(4)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001........... $26.92 1.16% 2.16%(4) (0.26)% 1.90%(4)
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)... $29.93 0.92% 2.07% (0.12)% 1.95%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005........... $30.19 0.84% 2.08%(4) (0.13)% 1.95%(4)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 .......... $27.81 0.58% 2.02%(4) (0.07)% 1.95%(4)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003........... $25.88 0.69% 2.57%(4) (0.62)% 1.95%(4)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002........... $22.22 0.85% 2.17%(4) (0.27)% 1.90%(4)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001........... $26.91 1.18% 2.06%(4) (0.16)% 1.90%(4)
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)... $30.38 1.93% 1.14% (0.19)% 0.95%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005........... $30.76 1.84% 1.07%(4) (0.12)% 0.95%(4)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 .......... $28.41 1.59% 0.95%(4) (0.01)% 0.94%(4)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003........... $26.34 1.69% 1.05%(4) (0.11)% 0.94%(4)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002........... $22.65 1.80% 1.05%(4) (0.12)% 0.93%(4)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001........... $27.33 2.16% 0.97%(4) (0.04)% 0.93%(4)
MODERATE BALANCED FUND
- -----------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)... $21.48 2.55% 1.29% (0.14)% 1.15%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005........... $22.23 2.11% 1.30%(4) (0.15)% 1.15%(4)
JANUARY 30, 2004(3) TO SEPTEMBER 30, 2004 ...... $21.72 1.14% 1.27%(4) (0.12)% 1.15%(4)
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)... $21.35 1.78% 2.03% (0.13)% 1.90%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005........... $22.04 1.35% 2.05%(4) (0.15)% 1.90%(4)
JANUARY 30, 2004(3) TO SEPTEMBER 30, 2004 ...... $21.62 0.65% 2.02%(4) (0.12)% 1.90%(4)
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)... $21.36 1.78% 2.03% (0.13)% 1.90%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005........... $22.05 1.35% 2.05%(4) (0.15)% 1.90%(4)
JANUARY 30, 2004(3) TO SEPTEMBER 30, 2004 ...... $21.62 0.65% 2.01%(4) (0.11)% 1.90%(4)
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)... $21.55 2.78% 1.10% (0.20)% 0.90%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005........... $22.32 2.34% 1.04%(4) (0.14)% 0.90%(4)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 .......... $21.76 1.97% 0.92%(4) (0.02)% 0.90%(4)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003........... $21.09 2.25% 1.03%(4) (0.14)% 0.89%(4)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002........... $19.47 2.55% 1.02%(4) (0.14)% 0.88%(4)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001........... $22.29 3.37% 0.93%(4) (0.05)% 0.88%(4)
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE (000'S OMITTED)
- -----------------------------------------------------------------------------------------------
GROWTH BALANCED FUND (CONTINUED)
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)... 5.78% 62%(5) $ 82,520
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005........... 9.76% 80%(5) $ 85,327
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 .......... 9.17% 51%(5) $ 89,783
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003........... 17.40% 53%(5) $ 81,511
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002........... (13.68)% 48%(5) $ 66,337
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001........... (10.45)% 60%(5) $ 48,487
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)... 5.74% 62%(5) $ 17,421
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005........... 9.79% 80%(5) $ 18,262
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 .......... 9.18% 51%(5) $ 20,799
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003........... 17.35% 53%(5) $ 24,958
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002........... (13.67)% 48%(5) $ 18,484
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001........... (10.46)% 60%(5) $ 11,265
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)... 6.30% 62%(5) $1,873,498
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005........... 10.87% 80%(5) $1,848,078
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 .......... 10.31% 51%(5) $1,738,782
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003........... 18.53% 53%(5) $1,415,216
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002........... (12.85)% 48%(5) $1,075,256
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001........... (9.59)% 60%(5) $1,164,850
MODERATE BALANCED FUND
- -----------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)... 4.02% 78%(5) $ 5,548
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005........... 7.32% 91%(5) $ 4,745
JANUARY 30, 2004(3) TO SEPTEMBER 30, 2004 ...... (0.32)% 62%(5) $ 2,576
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)... 3.61% 78%(5) $ 3,226
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005........... 6.50% 91%(5) $ 3,121
JANUARY 30, 2004(3) TO SEPTEMBER 30, 2004 ...... (0.78)% 62%(5) $ 2,304
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)... 3.59% 78%(5) $ 1,206
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005........... 6.50% 91%(5) $ 1,223
JANUARY 30, 2004(3) TO SEPTEMBER 30, 2004 ...... (0.78)% 62%(5) $ 693
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)... 4.12% 78%(5) $ 565,891
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005........... 7.57% 91%(5) $ 557,564
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 .......... 7.28% 62%(5) $ 544,698
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003........... 12.99% 64%(5) $ 512,460
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002........... (6.35)% 61%(5) $ 459,248
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001........... (1.98)% 69%(5) $ 519,931
51
WELLS FARGO ADVANTAGE ALLOCATION FUNDS NOTES TO FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(1) During each period, various fees and expenses were waived and reimbursed
as indicated. The ratio of Gross Expenses to Average Net Assets reflects
the expense ratio in the absence of any waivers and reimbursements (Note
3).
(2) Total return calculations do not include any sales charges, and would have
been lower had certain expenses not been waived or reimbursed during the
periods shown. Returns for periods less than one year are not annualized.
(3) Commencement of operations.
(4) Includes net expenses allocated from the Portfolio(s) in which the Fund
invests.
(5) Portfolio turnover rate is calculated by aggregating the results of
multiplying the Fund's investment percentage in the respective Portfolio
by the corresponding Portfolio's portfolio turnover rate.
(6) Calculated based upon average shares outstanding.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
52
NOTES TO FINANCIAL STATEMENTS WELLS FARGO ADVANTAGE ALLOCATION FUNDS
- --------------------------------------------------------------------------------
1. ORGANIZATION
- --------------------------------------------------------------------------------
Wells Fargo Funds Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end management
investment company. The Trust commenced operations on November 8, 1999, and at
March 31, 2006, was comprised of 108 separate series (each, a "Fund",
collectively, the "Funds"). These financial statements present the Aggressive
Allocation Fund (formerly named Strategic Growth Allocation Fund), Asset
Allocation Fund, Conservative Allocation Fund (formerly named Strategic Income
Fund), Growth Balanced Fund and Moderate Balanced Fund.
Effective at the close of business on April 8, 2005, the following
Acquiring Funds ("Acquiring Funds") acquired substantially all of the net assets
of the following Target Funds ("Target Funds") through a tax-free exchange under
section 368 of the Internal Revenue Code. The following is a summary of shares
outstanding and net assets immediately before and after the reorganization:
Before Reorganization After Reorganization
Target Funds Aquiring Fund
- ----------------------------------------------------------------------------------------------------------------
Wells Fargo Wells Fargo Wells Fargo
Index Asset Advantage Asset
Fund Allocation Fund Allocation Fund* Allocation Fund
- ----------------------------------------------------------------------------------------------------------------
Shares:
CLASS A 2,766,213 46,078,546 48,271,080
- ----------------------------------------------------------------------------------------------------------------
CLASS B 465,070 14,643,440 15,369,750
- ----------------------------------------------------------------------------------------------------------------
CLASS C 1,141,827 2,005,926 3,785,922
- ----------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS 0 0 1,973,851
- ----------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS(1) 0 1,973,851 0
- ----------------------------------------------------------------------------------------------------------------
Net Asset:
- ----------------------------------------------------------------------------------------------------------------
CLASS A $ 42,259,453 $ 888,129,332 $ 930,388,785
- ----------------------------------------------------------------------------------------------------------------
CLASS B 8,506,562 171,504,642 180,011,204
- ----------------------------------------------------------------------------------------------------------------
CLASS C 20,876,141 23,525,974 44,402,115
- ----------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS 0 0 38,104,327
- ----------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS(1) 0 38,104,327 0
- ----------------------------------------------------------------------------------------------------------------
Unrealized appreciation (depreciation) $ 9,082,590 $ (4,745,349) $ 4,337,241
- ----------------------------------------------------------------------------------------------------------------
Accumulated net realized losses $ (1,384,879) $ (27,732,287) $ (29,117,166)
- ----------------------------------------------------------------------------------------------------------------
* Designates the accounting survivor.
(1) Effective the close of business on April 8, 2005, Institutional
Class of the Wells Fargo Asset Allocation Fund was renamed to the
Administrator Class of the Wells Fargo Advantage Asset Allocation
Fund.
The separate classes of shares offered by each Fund differ principally in
applicable sales charges and distribution, shareholder servicing and
administration fees. Shareholders of each class bear certain expenses that
pertain to that particular class. All shareholders bear the common expenses of a
Fund, earn income from the portfolio, and are allocated unrealized gains and
losses pro rata based on the average daily net assets of each class, without
distinction between share classes. Dividends are determined separately for each
class based on income and expenses allocable to each class. Realized gains and
losses are allocated to each class pro rata based upon the net assets of each
class on the date realized. Differences in per share dividend rates generally
result from the relative weightings of pro rata income and realized gain
allocations and from differences in separate class expenses, including
distribution, shareholder servicing, and administration fees.
The Aggressive Allocation Fund, Conservative Allocation Fund, Growth
Balanced Fund, and Moderate Balanced Fund each seek to achieve its investment
objective by investing substantially all investable assets in one or more
separate diversified portfolios (each, a "Master Portfolio", collectively, the
"Master Portfolios") of Wells Fargo Master Trust, a registered open-end
management investment company. Each Master Portfolio directly acquires portfolio
securities, and a Fund investing in a Master Portfolio acquires an indirect
interest in those securities. Each Fund accounts for its investment in the
Master Portfolios as partnership investments and records daily its share of the
Master Portfolio's income, expenses, and realized and unrealized gains and
losses. The financial statements of the Master Portfolios are in this report and
should be read in conjunction with each
53
WELLS FARGO ADVANTAGE ALLOCATION FUNDS NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
Fund's financial statements. The ownership percentages of each Master Portfolio
by the Aggressive Allocation Fund, Conservative Allocation Fund, Growth Balanced
Fund and Moderate Balanced Fund are as follows:
Aggressive Conservative Growth Moderate
Allocation Fund Allocation Fund Balanced Fund Balanced Fund
- --------------------------------------------------------------------------------------------------------------------
C&B Large Cap Value Portfolio 2% 1% 13% 2%
- --------------------------------------------------------------------------------------------------------------------
Disciplined Growth Portfolio 4% 2% 30% 5%
- --------------------------------------------------------------------------------------------------------------------
Equity Income Portfolio 1% 1% 10% 2%
- --------------------------------------------------------------------------------------------------------------------
Equity Value Portfolio 3% 2% 23% 4%
- --------------------------------------------------------------------------------------------------------------------
Index Portfolio 2% 1% 14% 2%
- --------------------------------------------------------------------------------------------------------------------
Inflation-Protected Bond Portfolio 2% 15% 28% 10%
- --------------------------------------------------------------------------------------------------------------------
International Core Portfolio 4% 2% 30% 5%
- --------------------------------------------------------------------------------------------------------------------
International Growth Portfolio 2% 1% 18% 3%
- --------------------------------------------------------------------------------------------------------------------
International Index Portfolio 4% 2% 30% 5%
- --------------------------------------------------------------------------------------------------------------------
International Value Portfolio 4% 2% 29% 5%
- --------------------------------------------------------------------------------------------------------------------
Large Cap Appreciation Portfolio 3% 2% 23% 4%
- --------------------------------------------------------------------------------------------------------------------
Large Company Growth Portfolio 1% 0% 7% 1%
- --------------------------------------------------------------------------------------------------------------------
Managed Fixed Income Portfolio 3% 19% 52% 19%
- --------------------------------------------------------------------------------------------------------------------
Small Cap Index Portfolio 1% 1% 11% 2%
- --------------------------------------------------------------------------------------------------------------------
Small Company Growth Portfolio 1% 0% 4% 1%
- --------------------------------------------------------------------------------------------------------------------
Small Company Value Portfolio 1% 0% 4% 1%
- --------------------------------------------------------------------------------------------------------------------
Stable Income Portfolio N/A 18% N/A 13%
- --------------------------------------------------------------------------------------------------------------------
Strategic Small Cap Value Portfolio 1% 1% 11% 2%
- --------------------------------------------------------------------------------------------------------------------
Total Return Bond Portfolio 1% 3% 9% 3%
- --------------------------------------------------------------------------------------------------------------------
2. SIGNIFICANT ACCOUNTING POLICIES
- --------------------------------------------------------------------------------
The following significant accounting policies, which are consistently
followed in the preparation of the financial statements of the Trust, are in
conformity with accounting principles generally accepted in the United States of
America ("GAAP") for investment companies.
The preparation of financial statements in conformity with GAAP requires
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.
In the normal course of business, the Trust may enter into contracts that
provide certain indemnifications. The Trust's maximum exposure under these
arrangements is dependent on future claims that may be made against the Funds
and, therefore, cannot be estimated; however, based on experience, the risk of
loss from such claims is considered remote.
SECURITY VALUATION
Investments in securities are valued each business day as of the close of
regular trading on the New York Stock Exchange, which is usually 4:00 p.m.
(Eastern Time). Securities which are traded on a national or foreign securities
exchange are valued at the last reported sales price. Securities listed on The
NASDAQ Stock Market, Inc. are valued at the NASDAQ Official Closing Price
("NOCP"), and if no NOCP is available, then at the last reported sales price. In
the absence of any sale of such securities, and in the case of other securities,
including U.S. Government obligations, but excluding debt securities maturing in
60 days or less, the price will be deemed "stale" and the valuations will be
determined in accordance with the Funds' Fair Valuation Procedures.
Certain fixed income securities with maturities exceeding 60 days are
valued by using a pricing service approved by the Trust's Board of Trustees. The
service uses market prices as quoted by an independent pricing service or by
dealers in these securities when, in the service's judgment, these prices are
readily available and are representative of the securities' market values. For
some securities, such prices are not readily available. These securities will
generally be fair valued using methods which may include consideration of yields
or prices of securities of comparable quality, coupon rate, maturity and type of
issue, indications as to values from dealers in securities, trading
characteristics, and general market conditions.
54
NOTES TO FINANCIAL STATEMENTS WELLS FARGO ADVANTAGE ALLOCATION FUNDS
- --------------------------------------------------------------------------------
Debt securities maturing in 60 days or less generally are valued at
amortized cost. The amortized cost method involves valuing a security at its
cost, plus accretion of discount or minus amortization of premium over the
period until maturity, which approximates market value.
Investments in the Master Portfolios are valued daily based upon each
Fund's proportionate share of each Master Portfolio's net assets, which are also
valued daily. Securities held in the Master Portfolios are valued as discussed
in the Notes to Financial Statements of the Master Portfolios, which are
included elsewhere in this report.
Investments which are not valued using any of the methods discussed above
are valued at their fair value as determined by procedures approved by the Board
of Trustees.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Securities transactions are recorded on a trade date basis. Realized gains
or losses are reported on the basis of identified cost of securities delivered.
Interest income is accrued daily and bond discounts are accreted and premiums
are amortized daily.
Dividend income is recognized on the ex-dividend date, except for certain
dividends from foreign securities, which are recorded as soon as the Fund is
informed of the ex-dividend date. Dividend income from foreign securities is
recorded net of foreign taxes withheld where recovery of such taxes is not
assured.
FUTURES CONTRACTS
The Fund(s) may purchase futures contracts to gain exposure to market
changes, which may be more efficient or cost effective than actually buying the
securities. A futures contract is an agreement between parties to buy or sell a
security at a set price on a future date. Upon entering into such a contract, a
Fund is required to pledge to the broker an amount of cash, U.S. Government
obligations or other high-quality debt securities equal to the minimum "initial
margin" requirements of the exchange on which the futures contract is traded.
Pursuant to the contract, the Fund agrees to receive from or pay to the broker
an amount of cash equal to the daily fluctuation in the value of the contract.
Such receipts or payments are known as "variation margin" and are recorded by
the Fund as unrealized gains or losses. When the contract is closed, the Fund
records a realized gain or loss equal to the difference between the value of the
contract at the time it was opened and the value at the time it was closed.
Pursuant to regulations and/or published positions of the Securities and
Exchange Commission (the "SEC") for long futures positions, the Fund is required
to segregate highly liquid securities as permitted by the SEC in connection with
futures transactions in an amount generally equal to the value of the underlying
contracts. Risks of entering into futures contracts include the possibility that
there may be an illiquid market and that a change in the value of the contract
may not correlate with changes in the value of the underlying securities. At
March 31, 2006, the following Fund(s) held futures contracts:
Net Unrealized
Expiration Notional Appreciation
Fund Contracts Type Date Amount (Depreciation)
- -----------------------------------------------------------------------------------------------------------------------------
AGGRESSIVE ALLOCATION FUND 98 Long S&P 500 Index June 2006 $ 31,598,200 $ 332,650
297 Short US Treasury Bond June 2006 33,528,050 1,108,644
- ------------------------------------------------------------------------------------------------------------------------------
ASSET ALLOCATION FUND 908 Long S&P 500 Index June 2006 293,049,850 2,799,250
247 Long US 20 Year Treasury Bond June 2006 27,641,930 (680,336)
26 Long US Treasury Bond June 2006 2,905,500 (67,438)
2,599 Short US Treasury Bond June 2006 293,864,624 10,167,530
- ------------------------------------------------------------------------------------------------------------------------------
CONSERVATIVE ALLOCATION FUND 72 Long S&P 500 Index June 2006 23,214,500 244,900
209 Short US Treasury Bond June 2006 23,622,104 808,448
- ------------------------------------------------------------------------------------------------------------------------------
GROWTH BALANCED FUND 934 Long S&P 500 Index June 2006 301,196,350 3,124,200
2,796 Short US Treasury Bond June 2006 316,068,358 10,867,483
- ------------------------------------------------------------------------------------------------------------------------------
MODERATE BALANCED FUND 179 Long S&P 500 Index June 2006 57,718,550 604,125
528 Short US Treasury Bond June 2006 59,690,287 2,055,787
- ------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, if any, is declared and distributed to shareholders
annually, with the exception of the Asset Allocation Fund, for which net
investment income, if any, is declared and distributed to shareholders
quarterly. Distributions to shareholders from net realized capital gains, if
any, are declared and distributed at least annually.
For federal income tax purposes, a Fund may designate as capital gains
dividends the earnings and profits distributed to shareholders on the redemption
of fund shares during the year.
Distributions are based on amounts calculated in accordance with the
applicable federal income tax regulations, which may differ from GAAP. The
timing and character of distributions made during the period from net investment
income or net realized gains may also differ from their ultimate
characterization for federal income tax purposes. To the extent that these
differences are permanent in nature, such amounts are reclassified within the
capital accounts based on their federal tax-basis treatment. Temporary
differences do not require reclassifications.
55
WELLS FARGO ADVANTAGE ALLOCATION FUNDS NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
FEDERAL INCOME TAXES
Each Fund is treated as a separate entity for federal income tax purposes.
It is the policy of each Fund of the Trust to continue to qualify as a regulated
investment company by complying with the provisions applicable to regulated
investment companies, as defined under subchapter M of the Internal Revenue Code
(the "Code"), and to make distributions of 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 at March 31, 2006.
At September 30, 2005, estimated net capital loss carryforwards, which are
available to offset future net realized capital gains, were:
Capital Loss
Fund Year Expires Carryforwards
- --------------------------------------------------------------------------------
AGGRESSIVE ALLOCATION FUND 2003 673,670
- --------------------------------------------------------------------------------
SECURITY LOANS
The Fund(s) may loan securities in return for securities, irrevocable
letters of credit or cash collateral, which is invested in various short-term
fixed income securities. A Fund may receive compensation for lending securities
in the form of fees or by retaining a portion of interest on the investment
securities or cash received as collateral. A Fund also continues to receive
interest or dividends on the securities loaned. Security loans are secured at
all times by collateral. The collateral is equal to at least 102% of the market
value of the securities loaned plus accrued interest when the transaction is
entered into. The collateral supporting loans of domestic and foreign equity
securities and corporate bonds are remarked daily while collateral supporting
loans of U.S. Government securities are remarked back to 102% only if the given
collateral falls below 100% of the market value of the securities loans plus any
accrued interest. Gain or loss in the market price of the securities loaned that
may occur during the term of the loan are reflected in the value of the Fund.
The risks from securities lending are that the borrower may not provide
additional collateral when required or return the securities when due or when
called for by the Fund. Wells Fargo Bank, N.A., the Funds' custodian, acts as
the securities lending agent for the Funds and receives for its services 30% of
the revenues earned on the securities lending activities and incurs all
expenses. Prior to October 1, 2005, Wells Fargo Bank, N.A. received 35% of the
revenues earned on the securities lending activities and incurred all expenses.
The value of the securities on loan and the value of the related collateral at
March 31, 2006, are shown on the Statements of Assets and Liabilities.
3. EXPENSES
- --------------------------------------------------------------------------------
ADVISORY FEES
The Trust has entered into an advisory contract with Wells Fargo Funds
Management, LLC ("Funds Management"). The adviser is responsible for
implementing investment policies and guidelines and for supervising the
subadviser, who is responsible for day-to-day portfolio management.
Pursuant to the contract, Funds Management is entitled to receive an
advisory fee for its services as adviser. Funds Management may retain the
services of certain investment subadvisers to provide daily portfolio
management. The fees related to subadvisory services are borne directly by the
adviser and do not increase the overall fees paid by a Fund to the adviser.
Funds Management and the investment subadviser(s) are entitled to be paid a
monthly fee at the following annual rates:
Advisory Fees Subadvisory Fees*
Average Daily (% of Average Average Daily (% of Average
Fund Net Assets Daily Net Assets) Subadviser Net Assets Daily Net Assets)
- ------------------------------------------------------------------------------------------------------------------------------------
AGGRESSIVE N/A 0.250 Wells Capital First $250 million 0.100
ALLOCATION FUND Management Over $250 million 0.050
Incorporated
- ------------------------------------------------------------------------------------------------------------------------------------
ASSET First $500 million 0.650 Wells Capital First $100 million 0.150
ALLOCATION FUND Next $500 million 0.600 Management Next $100 million 0.125
Next $2 billion 0.550 Incorporated Over $200 million 0.100
Next $2 billion 0.525
Over $5 billion 0.500
- ------------------------------------------------------------------------------------------------------------------------------------
CONSERVATIVE N/A 0.250 Wells Capital First $250 million 0.100
ALLOCATION FUND Management Over $250 million 0.050
Incorporated
- ------------------------------------------------------------------------------------------------------------------------------------
GROWTH N/A 0.250 Wells Capital First $250 million 0.100
BALANCED FUND Management Over $250 million 0.050
Incorporated
- ------------------------------------------------------------------------------------------------------------------------------------
56
NOTES TO FINANCIAL STATEMENTS WELLS FARGO ADVANTAGE ALLOCATION FUNDS
- --------------------------------------------------------------------------------
Advisory Fees Subadvisory Fees*
Average Daily (% of Average Average Daily (% of Average
Fund Net Assets Daily Net Assets) Subadviser Net Assets Daily Net Assets)
- ---------------------------------------------------------------------------------------------------------------------------------
MODERATE BALANCED FUND N/A 0.250 Wells Capital First $250 million 0.100
Management Over $250 million 0.050
Incorporated
- ---------------------------------------------------------------------------------------------------------------------------------
* Effective January 1, 2006. Prior to January 1, 2006, Subadviser(s) were
entitled to to be paid a monthly fee at the following rate:
Subadvisory Fees
Average Daily (% of Average
Fund Subadviser Net Assets Daily Net Assets)
- --------------------------------------------------------------------------------------------------------------------
AGGRESSIVE ALLOCATION FUND Wells Capital Management All asset levels 0.050
Incorporated
- --------------------------------------------------------------------------------------------------------------------
ASSET ALLOCATION FUND Wells Capital Management First $1 billion 0.150
Incorporated Over $1 billion 0.100
- --------------------------------------------------------------------------------------------------------------------
CONSERVATIVE ALLOCATION FUND Wells Capital Management All asset levels 0.050
Incorporated
- --------------------------------------------------------------------------------------------------------------------
GROWTH BALANCED FUND Wells Capital Management All asset levels 0.050
Incorporated
- --------------------------------------------------------------------------------------------------------------------
MODERATE BALANCED FUND Wells Capital Management All asset levels 0.050
Incorporated
- --------------------------------------------------------------------------------------------------------------------
For each Fund that is invested in multiple Master Portfolios, Funds
Management is entitled to receive an investment advisory fee of 0.25% of each
Fund's average daily net assets for providing advisory services, including the
determination of the asset allocations of each Fund's investments in the various
Master Portfolios.
Each Fund that invests its assets in one or more of the Master Portfolios
may withdraw its investments from its corresponding Master Portfolio(s) at any
time if the Board of Trustees determines that it is in the best interest of the
Fund to do so. Upon such redemption and subsequent direct investment in a
portfolio of securities, Funds Management (and the corresponding subadviser, if
any) may receive an investment advisory fee for the direct management of those
assets.
ADMINISTRATION AND TRANSFER AGENT FEES
The Trust has entered into an Administration Agreement with Funds
Management. Under this Agreement, for providing administrative services, which
includes paying fees and expenses for services provided by the transfer agent,
sub-transfer agents, omnibus account servicers and record-keepers, Funds
Management is entitled to receive the following annual fees:
Admin Fees
Average Daily (% of Average
Net Assets Daily Net Assets)
- --------------------------------------------------------------------------------
FUND LEVEL First $5 billion 0.05
Next $5 billion 0.04
Over $10 billion 0.03
- --------------------------------------------------------------------------------
CLASS A 0.28
- --------------------------------------------------------------------------------
CLASS B 0.28
- --------------------------------------------------------------------------------
CLASS C 0.28
- --------------------------------------------------------------------------------
ADMINISTRATOR CLASS** 0.10
- --------------------------------------------------------------------------------
** Prior to April 11, 2005, the class level fee was 0.20%.
The Trust has entered into an agreement with Boston Financial Data
Services ("BFDS") as the transfer agent for the Trust. BFDS is entitled to
receive fees from the administrator for its services as transfer agent.
CUSTODY FEES
The Trust has entered into a contract with Wells Fargo Bank, N.A. ("WFB"),
whereby WFB is responsible for providing custody services. Pursuant to the
contract, WFB is entitled to a monthly fee for custody services at the following
annual rates:
57
WELLS FARGO ADVANTAGE ALLOCATION FUNDS NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
% of Average
Fund Daily Net Assets
- --------------------------------------------------------------------------------
ASSET ALLOCATION FUND 0.02
- --------------------------------------------------------------------------------
WFB does not receive a custodial fee for any Fund that invests its assets
solely in one or more Master Portfolios or other investment companies.
SHAREHOLDER SERVICING FEES
The Trust has entered into contracts with one or more shareholder
servicing agents, whereby each Fund is charged the following annual fees:
% Of Average
Share Class Daily Net Assets
- --------------------------------------------------------------------------------
CLASS A, CLASS B AND CLASS C 0.25
- --------------------------------------------------------------------------------
ADMINISTRATOR CLASS* 0.25
* Effective April 11, 2005. Prior to April 11, 2005, shareholder servicing
fees were as follows:
% Of Average
Share Class Daily Net Assets
- --------------------------------------------------------------------------------
ADMINISTRATOR CLASS** 0.10
- --------------------------------------------------------------------------------
** Fee applies to the Administrator Class of the Asset Allocation Fund.
For the period ended March 31, 2006, shareholder servicing fees paid were
as follows:
Administrator
Fund Class A Class B Class C Class
- -----------------------------------------------------------------------------------------------------
AGGRESSIVE ALLOCATION FUND N/A N/A N/A $ 254,423
- -----------------------------------------------------------------------------------------------------
ASSET ALLOCATION FUND $ 1,150,359 $ 173,904 $ 50,108 51,993
- -----------------------------------------------------------------------------------------------------
CONSERVATIVE ALLOCATION FUND N/A N/A N/A 561,800
- -----------------------------------------------------------------------------------------------------
GROWTH BALANCED FUND 73,974 104,259 22,232 2,305,459
- -----------------------------------------------------------------------------------------------------
MODERATE BALANCED FUND 6,234 3,971 1,522 699,695
- -----------------------------------------------------------------------------------------------------
DISTRIBUTION FEES
The Trust has adopted a Distribution Plan (the "Plan") for Class B and
Class C shares of the applicable Funds pursuant to Rule 12b-1 under the 1940
Act. Distribution fees are charged to the Class B and Class C shares and paid to
Wells Fargo Funds Distributor, LLC at an annual rate of 0.75% of average daily
net assets.
Prior to April 11, 2005, Stephens, Inc. served as distributor to the
applicable Funds and received distribution fees at an annual rate of 0.75% of
average daily net assets of the Funds' Class B and Class C shares.
For the period ended March 31, 2006, distribution fees incurred are
disclosed on the Statements of Operations.
OTHER FEES
PFPC, Inc. ("PFPC") serves as fund accountant for the Trust and is
entitled to receive an annual asset based fee and an annual fixed fee from each
Fund. PFPC is also entitled to be reimbursed for all out-of-pocket expenses
reasonably incurred in providing these services.
WAIVED FEES AND REIMBURSED EXPENSES
All amounts shown as waived fees or reimbursed expenses on the Statements
of Operations, for the period ended March 31, 2006, were waived by Funds
Management, first from advisory fees, and then any remaining amount
consecutively from administration, custody and shareholder servicing fees
collected, if any.
Net Operating Expense Ratios
----------------------------
Administrator
Fund Class A Class B Class C Class
- ------------------------------------------------------------------------------------------------------
AGGRESSIVE ALLOCATION FUND N/A N/A N/A 1.00%
- ------------------------------------------------------------------------------------------------------
ASSET ALLOCATION FUND 1.15% 1.90% 1.90% 0.90%
- ------------------------------------------------------------------------------------------------------
CONSERVATIVE ALLOCATION FUND N/A N/A N/A 0.85%
- ------------------------------------------------------------------------------------------------------
GROWTH BALANCED FUND 1.20% 1.95% 1.95% 0.95%
- ------------------------------------------------------------------------------------------------------
MODERATE BALANCED FUND 1.15% 1.90% 1.90% 0.90%
- ------------------------------------------------------------------------------------------------------
58
NOTES TO FINANCIAL STATEMENTS WELLS FARGO ADVANTAGE ALLOCATION FUNDS
- --------------------------------------------------------------------------------
4. INVESTMENT PORTFOLIO TRANSACTIONS
- --------------------------------------------------------------------------------
Purchases and sales of investments, exclusive of short-term securities
(securities with maturities of one year or less at purchase date) and U.S.
Government obligations for the period ended March 31, 2006, were as follows:
Fund Purchases at Cost Sales Proceeds
- --------------------------------------------------------------------------------
AGGRESSIVE ALLOCATION FUND* $ 75,848,508 $ 75,385,750
- --------------------------------------------------------------------------------
ASSET ALLOCATION FUND 14,168,769 60,307,639
- --------------------------------------------------------------------------------
CONSERVATIVE ALLOCATION FUND* 300,345,704 271,246,912
- --------------------------------------------------------------------------------
GROWTH BALANCED FUND* 963,488,315 912,777,158
- --------------------------------------------------------------------------------
MODERATE BALANCED FUND* 320,781,767 295,422,210
- --------------------------------------------------------------------------------
* These Funds seek to achieve their investment objective by investing some
or all of their investable assets in one or more Master Portfolios. Purchases
and sales related to these investments have been calculated by aggregating the
results of multiplying such Fund's ownership percentage of the respective Master
Portfolio by the corresponding Master Portfolio's purchases and sales.
5. BANK BORROWINGS
- --------------------------------------------------------------------------------
Wells Fargo Funds Trust and Wells Fargo Variable Trust (excluding the
money market funds) share in a revolving Credit Agreement with The Bank of New
York, whereby the Funds are permitted to use bank borrowings for temporary or
emergency purposes, such as to fund shareholder redemption requests. The
agreement permits borrowings of up to $150 million, collectively. Interest is
charged to each Fund based on its borrowing at a rate equal to the Federal Funds
Rate plus 0.40%. In addition, the Funds pay a quarterly commitment fee equal to
0.1% per annum of the credit line. For the period ended March 31, 2006, there
were no borrowings by Allocation Funds under the agreement.
59
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
C&B LARGE CAP VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 95.01%
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS - 3.36%
435,900 JONES APPAREL GROUP INCORPORATED $ 15,417,783
208,400 VF CORPORATION 11,857,960
27,275,743
---------------
BUSINESS SERVICES - 7.71%
122 INTERPUBLIC GROUP OF COMPANIES INCORPORATED+ 1,167
369,800 MANPOWER INCORPORATED 21,145,164
749,000 MICROSOFT CORPORATION 20,380,290
251,800 OMNICOM GROUP INCORPORATED 20,962,350
62,488,971
---------------
CHEMICALS & ALLIED PRODUCTS - 5.58%
565,700 AVON PRODUCTS INCORPORATED 17,632,869
337,300 COLGATE-PALMOLIVE COMPANY 19,259,830
236,100 MERCK & COMPANY INCORPORATED 8,317,803
45,210,502
---------------
COMMUNICATIONS - 4.63%
555,000 COMCAST CORPORATION CLASS A+ 14,496,600
1,103,000 VODAFONE GROUP PLC ADR<< 23,052,700
37,549,300
---------------
DEPOSITORY INSTITUTIONS - 8.07%
609,000 BANK OF AMERICA CORPORATION<< 27,733,860
362,600 JP MORGAN CHASE & COMPANY 15,098,664
374,270 STATE STREET CORPORATION 22,617,136
65,449,660
---------------
EATING & DRINKING PLACES - 5.26%
604,000 ARAMARK CORPORATION CLASS B 17,842,160
721,600 MCDONALD'S CORPORATION 24,794,176
42,636,336
---------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 7.20%
722,120 AMERICAN POWER CONVERSION CORPORATION 16,688,193
668,300 FLEXTRONICS INTERNATIONAL LIMITED+ 6,916,905
697,100 MOLEX INCORPORATED CLASS A 20,717,812
680,700 NOKIA OYJ ADR 14,104,104
58,427,014
---------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES - 1.44%
228,000 QUEST DIAGNOSTICS INCORPORATED 11,696,400
---------------
FOOD & KINDRED PRODUCTS - 3.11%
290,100 ANHEUSER-BUSCH COMPANIES INCORPORATED<< 12,407,577
201,500 DIAGEO PLC ADR<< 12,781,145
25,188,722
---------------
61
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
C&B LARGE CAP VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
GENERAL MERCHANDISE STORES - 1.41%
820,200 BIG LOTS INCORPORATED+ $ 11,449,992
---------------
HEALTH SERVICES - 1.63%
289,000 HCA INCORPORATED 13,233,310
---------------
HOLDING & OTHER INVESTMENT OFFICES - 2.46%
6,630 BERKSHIRE HATHAWAY INCORPORATED CLASS B+ 19,969,560
---------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 7.27%
535,800 DOVER CORPORATION 26,018,448
213,800 EATON CORPORATION 15,600,986
403,000 PITNEY BOWES INCORPORATED 17,300,790
58,920,224
---------------
INSURANCE CARRIERS - 4.80%
361,800 ALLSTATE CORPORATION 18,853,398
334,000 MBIA INCORPORATED 20,083,420
38,936,818
---------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 5.02%
450,600 BAXTER INTERNATIONAL INCORPORATED 17,487,786
135,000 BECTON DICKINSON & COMPANY 8,313,300
646,000 BOSTON SCIENTIFIC CORPORATION+<< 14,890,300
40,691,386
---------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 5.33%
588,000 HASBRO INCORPORATED 12,406,800
174,500 JOHNSON & JOHNSON 10,333,890
760,500 TYCO INTERNATIONAL LIMITED 20,442,240
43,182,930
---------------
MISCELLANEOUS RETAIL - 1.45%
418,685 ZALE CORPORATION+ 11,735,741
---------------
NON-DEPOSITORY CREDIT INSTITUTIONS - 6.26%
441,000 AMERICAN EXPRESS COMPANY 23,174,550
446,000 COUNTRYWIDE FINANCIAL CORPORATION 16,368,200
184,000 FREDDIE MAC 11,224,000
50,766,750
---------------
PAPER & ALLIED PRODUCTS - 2.32%
325,299 KIMBERLY-CLARK CORPORATION 18,802,282
---------------
PETROLEUM REFINING & RELATED INDUSTRIES - 4.76%
382,300 EXXON MOBIL CORPORATION 23,266,778
246,100 ROYAL DUTCH SHELL PLC ADR CLASS A 15,322,186
38,588,964
---------------
62
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
C&B LARGE CAP VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
PRIMARY METAL INDUSTRIES - 1.28%
202,600 HUBBELL INCORPORATED CLASS B $ 10,385,276
---------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 1.94%
262,400 GANNETT COMPANY INCORPORATED 15,723,008
---------------
TRANSPORTATION EQUIPMENT - 1.66%
210,600 GENERAL DYNAMICS CORPORATION 13,474,188
---------------
WATER TRANSPORTATION - 1.06%
182,000 CARNIVAL CORPORATION<< 8,621,340
---------------
TOTAL COMMON STOCKS (COST $734,869,870) 770,404,417
---------------
COLLATERAL FOR SECURITIES LENDING - 11.20%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.01%
31,360 SCUDDER DAILY ASSETS MONEY MARKET FUND 31,360
23,762 SHORT TERM INVESTMENT COMPANY MONEY MARKET FUND 23,762
55,122
---------------
PRINCIPAL INTEREST RATE MATURITY DATE
COLLATERAL INVESTED IN OTHER ASSETS - 11.19%
$ 328,700 AMERICAN GENERAL FINANCE CORPORATION+/- 4.78% 04/13/2007 328,835
136,849 APRECO LLC 4.62 05/15/2006 136,084
299,519 APRECO LLC 4.94 06/15/2006 296,569
182,611 ASPEN FUNDING CORPORATION 4.92 04/03/2006 182,611
1,826,112 ATLAS CAPITAL FUNDING CORPORATION SERIES MTN+/- 4.62 11/03/2006 1,826,112
205,584 ATLAS CAPITAL FUNDING LIMITED 4.80 04/17/2006 205,203
438,267 ATLAS CAPITAL FUNDING LIMITED 4.62 05/15/2006 435,817
913,056 ATLAS CAPITAL FUNDING LIMITED+/- 4.80 10/20/2006 913,056
913,056 ATLAS CAPITAL FUNDING LIMITED+/- 4.80 12/22/2006 913,056
146,089 ATOMIUM FUNDING CORPORATION 4.53 04/12/2006 145,915
126,696 BETA FINANCE INCORPORATED SERIES MTN+/- 4.88 06/02/2006 126,712
18,188,077 BNP PARIBAS REPURCHASE AGREEMENT
(MATURITY VALUE $18,195,549) 4.93 04/03/2006 18,188,077
542,136 BUCKINGHAM CDO LLC++ 4.60 04/06/2006 541,919
1,777,391 BUCKINGHAM CDO LLC 4.82 04/21/2006 1,773,161
913,056 BUCKINGHAM CDO LLC 4.82 04/25/2006 910,399
949,578 BUCKINGHAM II CDO LLC++ 4.83 04/25/2006 946,815
3,652,224 BUCKINGHAM II CDO LLC 4.83 04/26/2006 3,641,121
1,095,667 CAIRN HIGH GRADE FUNDING I 4.59 04/06/2006 1,095,229
87,653 CAIRN HIGH GRADE FUNDING I 4.71 04/26/2006 87,387
1,533,934 CAIRN HIGH GRADE FUNDING I 4.83 04/27/2006 1,529,072
913,056 CAIRN HIGH GRADE FUNDING I++ 4.83 05/02/2006 909,559
474,789 CAIRN HIGH GRADE FUNDING I 4.77 05/10/2006 472,453
1,836,521 CEDAR SPRINGS CAPITAL COMPANY LLC 4.78 04/05/2006 1,836,043
504,007 CEDAR SPRINGS CAPITAL COMPANY LLC 4.69 05/08/2006 501,658
162,414 CEDAR SPRINGS CAPITAL COMPANY LLC 4.70 05/10/2006 161,615
730,445 CEDAR SPRINGS CAPITAL COMPANY LLC 4.72 05/12/2006 726,654
63
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
C&B LARGE CAP VALUE PORTFOLIO
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 365,222 CEDAR SPRINGS CAPITAL COMPANY LLC 4.90% 06/07/2006 $ 362,019
972,039 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.92 06/12/2006 962,854
2,008,723 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.72 04/12/2006 2,008,723
365,222 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.75 04/18/2007 365,222
1,285,583 CONSOLIDATED EDISON INCORPORATED 4.90 04/03/2006 1,285,583
91,306 CORPORATE ASSET SECURITIZATION AUSTRALIA LIMITED 4.81 04/13/2006 91,185
1,132,190 CREDIT SUISSE FIRST BOSTON NEW YORK SERIES YCD1+/- 4.92 05/04/2006 1,131,623
913,056 CULLINAN FINANCE CORPORATION+/- 4.71 11/15/2006 913,020
730,445 DEER VALLEY FUNDING LLC++ 4.51 04/10/2006 729,766
933,326 DEER VALLEY FUNDING LLC 4.81 04/17/2006 931,599
2,225,191 DEER VALLEY FUNDING LLC 4.83 04/19/2006 2,220,473
474,789 DEER VALLEY FUNDING LLC 4.80 05/03/2006 472,904
1,826,112 DEUTSCHE BANK REPURCHASE AGREEMENT
(MATURITY VALUE $1,826,849) 4.84 04/03/2006 1,826,112
1,749,014 EIFFEL FUNDING LLC 4.91 04/03/2006 1,749,014
109,567 EIFFEL FUNDING LLC 4.78 04/17/2006 109,364
1,315,568 EUREKA SECURITIZATION INCORPORATED 4.88 05/16/2006 1,308,043
30,094 GALLEON CAPITAL LLC 4.65 04/03/2006 30,094
54,783 GEMINI SECURITIZATION INCORPORATED 4.90 05/24/2006 54,410
876,534 GOLDMAN SACHS GROUP INCORPORATED+/- 4.97 06/30/2006 876,534
2,616,819 HARRIER FINANCE FUNDING LLC 4.62 04/03/2006 2,616,819
584,356 ING USA ANNUITY & LIFE INSURANCE+/- 5.03 06/06/2006 584,356
7,334,023 JP MORGAN CHASE SECURITIES CORPORATION REPURCHASE AGREEMENT
(MATURITY VALUE $7,337,036) 4.93 04/03/2006 7,334,023
47,479 K2 (USA) LLC 4.63 05/02/2006 47,297
168,915 K2 (USA) LLC SERIES MTN+/- 4.87 07/24/2006 168,958
547,834 KAUPTHING BANK HF SERIES MTN+/-++ 4.84 03/20/2007 547,724
73,044 KLIO II FUNDING CORPORATION 4.58 04/05/2006 73,026
88,019 KLIO III FUNDING CORPORATION 4.69 04/19/2006 87,832
36,522 LEXINGTON PARKER CAPITAL CORPORATION 4.62 05/02/2006 36,382
138,638 LEXINGTON PARKER CAPITAL CORPORATION 4.69 05/10/2006 137,956
913,056 LIBERTY LIGHT US CAPITAL SERIES MTN+/- 4.81 05/26/2006 913,111
73,044 LINKS FINANCE LLC SERIES MTN1+/- 4.68 09/12/2006 73,045
219,133 LIQUID FUNDING LIMITED+/- 4.94 04/24/2006 219,142
840,012 LIQUID FUNDING LIMITED+/- 4.71 08/14/2006 840,012
547,834 LIQUID FUNDING LIMITED+/- 4.61 12/01/2006 547,834
219,133 LIQUID FUNDING LIMITED SERIES MTN+/- 4.83 02/20/2007 219,123
365,222 MBIA GLOBAL FUNDING LLC+/- 4.78 02/20/2007 365,201
1,835,243 MERRILL LYNCH & COMPANY SERIES MTN+/- 4.80 10/27/2006 1,836,619
1,095,667 MORGAN STANLEY+/- 4.94 10/10/2006 1,095,667
168,915 MORGAN STANLEY SERIES EXL+/- 4.78 08/13/2010 168,961
628,876 MORTGAGE INTEREST NET TRUST 4.68 04/03/2006 628,876
825,403 MORTGAGE INTEREST NET TRUST 4.78 05/03/2006 822,126
36,522 NATIONWIDE BUILDING SOC+/- 4.74 07/21/2006 36,540
805,425 NEWPORT FUNDING CORPORATION 4.92 04/03/2006 805,425
64
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
C&B LARGE CAP VALUE PORTFOLIO
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 1,105,857 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 4.78% 04/03/2006 $ 1,105,857
1,278,278 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.68 04/04/2006 1,278,112
162,816 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.93 06/26/2006 160,970
69,392 NORDEA NORTH AMERICA INCORPORATED 4.89 05/15/2006 69,004
1,926,548 NORTHERN ROCK PLC+/- 4.63 04/21/2006 1,926,279
144,372 NORTHERN ROCK PLC 4.69 04/24/2006 143,971
1,826,112 NORTHERN ROCK PLC+/- 4.66 02/05/2007 1,826,130
147,732 RACERS TRUST 2004-6-MM+/- 4.79 05/22/2006 147,753
36,522 SCALDIS CAPITAL LIMITED 4.93 06/15/2006 36,163
146,089 TANGO FINANCE CORPORATION 4.95 06/21/2006 144,532
422,307 TANGO FINANCE CORPORATION SERIES MTN+/- 4.87 10/25/2006 422,446
211,135 TRAVELERS INSURANCE COMPANY+/- 4.77 02/09/2007 211,131
913,056 UNICREDITO ITALIANO SERIES LIB+/- 4.70 03/09/2007 913,001
913,056 UNICREDITO ITALIANO SERIES YCD+/- 4.47 04/03/2006 913,056
1,387,845 US BANK NA SERIES BKNT+/- 4.66 07/28/2006 1,387,887
365,222 WHISTLEJACKET CAPITAL LIMITED+/- 4.65 06/09/2006 365,222
36,522 WHITE PINE FINANCE LLC 4.64 04/18/2006 36,450
182,611 WHITE PINE FINANCE LLC 4.82 05/05/2006 181,833
149,084 WHITE PINE FINANCE LLC 4.84 05/25/2006 148,048
112,196 WHITE PINE FINANCE LLC 4.93 06/20/2006 111,015
963,785 WHITE PINE FINANCE LLC 4.93 06/22/2006 953,377
913,056 WHITE PINE FINANCE LLC+/- 4.70 07/17/2006 913,056
876,534 WHITE PINE FINANCE LLC SERIES MTN1+/- 4.81 06/12/2006 876,613
90,737,635
---------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $90,792,757) 90,792,757
---------------
SHARES
SHORT-TERM INVESTMENTS - 4.87%
39,523,765 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~&& 39,523,765
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $39,523,765) 39,523,765
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $865,186,392)* 111.08% $ 900,720,939
OTHER ASSETS AND LIABILITIES, NET (11.08) (89,831,874)
------ ---------------
TOTAL NET ASSETS 100.00% $ 810,889,065
====== ===============
+ NON-INCOME EARNING SECURITIES.
<< ALL OR A PORTION OF THIS SECURITY IS ON LOAN. (SEE NOTE 2)
+/- VARIABLE RATE INVESTMENTS.
++ SECURITIES THAT MAY BE RESOLD TO "QUALIFIED INSTITUTIONAL BUYERS" UNDER
RULE 144A OR SECURITIES OFFERED PURSUANT TO SECTION 4 (2) OF THE
SECURITIES ACT OF 1933, AS AMENDED.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
&& SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $39,523,765.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
65
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
DISCIPLINED GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 98.49%
APPAREL & ACCESSORY STORES - 3.00%
144,600 NORDSTROM INCORPORATED $ 5,665,428
---------------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS - 4.65%
100,000 FASTENAL COMPANY 4,734,000
95,700 HOME DEPOT INCORPORATED 4,048,110
8,782,110
---------------
BUSINESS SERVICES - 14.60%
104,000 ADOBE SYSTEMS INCORPORATED<< 3,631,680
96,100 CHECKFREE CORPORATION<<+ 4,853,050
55,000 COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION CLASS A+ 3,271,950
152,000 ELECTRONIC DATA SYSTEMS CORPORATION<< 4,078,160
232,900 MICROSOFT CORPORATION 6,337,209
139,300 ROBERT HALF INTERNATIONAL INCORPORATED 5,378,373
27,550,422
---------------
CHEMICALS & ALLIED PRODUCTS - 10.47%
49,600 GENENTECH INCORPORATED+ 4,191,696
50,000 GENZYME CORPORATION+ 3,361,000
105,100 GILEAD SCIENCES INCORPORATED+ 6,539,322
98,300 PROCTER & GAMBLE COMPANY 5,664,046
19,756,064
---------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 13.49%
109,000 AMPHENOL CORPORATION CLASS A 5,687,620
259,600 CISCO SYSTEMS INCORPORATED+ 5,625,532
50,700 L-3 COMMUNICATIONS HOLDINGS INCORPORATED 4,349,553
74,000 MAXIM INTEGRATED PRODUCTS INCORPORATED<< 2,749,100
112,000 TEXAS INSTRUMENTS INCORPORATED 3,636,640
133,600 XILINX INCORPORATED<< 3,401,456
25,449,901
---------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT - 2.12%
49,600 FORTUNE BRANDS INCORPORATED 3,999,248
---------------
FOOD & KINDRED PRODUCTS - 2.00%
65,200 PEPSICO INCORPORATED 3,767,908
---------------
HEALTH SERVICES - 2.23%
70,000 DAVITA INCORPORATED+ 4,214,700
---------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 11.30%
74,100 3M COMPANY 5,608,629
216,300 APPLIED MATERIALS INCORPORATED 3,787,413
259,000 EMC CORPORATION+ 3,530,170
75,400 NATIONAL-OILWELL VARCO INCORPORATED<<+ 4,834,648
62,000 SANDISK CORPORATION+ 3,566,240
21,327,100
---------------
66
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
DISCIPLINED GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
INSURANCE CARRIERS - 5.95%
49,700 HARTFORD FINANCIAL SERVICES GROUP INCORPORATED $ 4,003,335
51,400 PRUDENTIAL FINANCIAL INCORPORATED 3,896,634
59,600 UNITEDHEALTH GROUP INCORPORATED 3,329,256
11,229,225
---------------
LEATHER & LEATHER PRODUCTS - 2.76%
150,600 COACH INCORPORATED<<+ 5,207,748
---------------
MEDICAL MANAGEMENT SERVICES - 2.51%
87,750 COVENTRY HEALTH CARE INCORPORATED+ 4,736,745
---------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 2.52%
80,200 JOHNSON & JOHNSON 4,749,444
---------------
MISCELLANEOUS RETAIL - 2.89%
62,000 EXPRESS SCRIPTS INCORPORATED<<+ 5,449,800
---------------
RAILROAD TRANSPORTATION - 2.19%
49,500 BURLINGTON NORTHERN SANTA FE CORPORATION 4,124,835
---------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 6.70%
36,700 BEAR STEARNS COMPANIES INCORPORATED 5,090,290
219,800 CHARLES SCHWAB CORPORATION 3,782,759
40,000 FRANKLIN RESOURCES INCORPORATED 3,769,600
12,642,649
---------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 2.78%
195,000 CORNING INCORPORATED<<+ 5,247,450
---------------
TRANSPORTATION BY AIR - 2.15%
36,000 FEDEX CORPORATION 4,065,840
---------------
TRANSPORTATION EQUIPMENT - 4.18%
53,000 BOEING COMPANY 4,130,290
65,000 UNITED TECHNOLOGIES CORPORATION 3,768,050
7,898,340
---------------
TOTAL COMMON STOCKS (COST $150,402,437) 185,864,957
---------------
COLLATERAL FOR SECURITIES LENDING - 9.66%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.01%
6,300 SCUDDER DAILY ASSETS MONEY MARKET FUND 6,300
4,773 SHORT TERM INVESTMENT COMPANY MONEY MARKET FUND 4,773
11,073
---------------
PRINCIPAL INTEREST RATE MATURITY DATE
COLLATERAL INVESTED IN OTHER ASSETS - 9.65%
$ 66,028 AMERICAN GENERAL FINANCE CORPORATION+/- 4.78% 04/13/2007 66,056
27,490 APRECO LLC 4.62 05/15/2006 27,336
60,167 APRECO LLC 4.94 06/15/2006 59,574
36,683 ASPEN FUNDING CORPORATION 4.92 04/03/2006 36,683
67
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
DISCIPLINED GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 366,825 ATLAS CAPITAL FUNDING CORPORATION SERIES MTN+/- 4.62% 11/03/2006 $ 366,825
41,297 ATLAS CAPITAL FUNDING LIMITED 4.80 04/17/2006 41,221
88,038 ATLAS CAPITAL FUNDING LIMITED 4.62 05/15/2006 87,546
183,412 ATLAS CAPITAL FUNDING LIMITED+/- 4.80 10/20/2006 183,412
183,412 ATLAS CAPITAL FUNDING LIMITED+/- 4.80 12/22/2006 183,412
29,346 ATOMIUM FUNDING CORPORATION 4.53 04/12/2006 29,311
25,450 BETA FINANCE INCORPORATED SERIES MTN+/- 4.88 06/02/2006 25,454
3,653,576 BNP PARIBAS REPURCHASE AGREEMENT
(MATURITY VALUE $3,655,077) 4.93 04/03/2006 3,653,576
108,903 BUCKINGHAM CDO LLC++ 4.60 04/06/2006 108,859
357,038 BUCKINGHAM CDO LLC 4.82 04/21/2006 356,188
183,412 BUCKINGHAM CDO LLC 4.82 04/25/2006 182,879
190,749 BUCKINGHAM II CDO LLC++ 4.83 04/25/2006 190,194
733,650 BUCKINGHAM II CDO LLC 4.83 04/26/2006 731,420
220,095 CAIRN HIGH GRADE FUNDING I 4.59 04/06/2006 220,007
17,608 CAIRN HIGH GRADE FUNDING I 4.71 04/26/2006 17,554
308,133 CAIRN HIGH GRADE FUNDING I 4.83 04/27/2006 307,156
183,412 CAIRN HIGH GRADE FUNDING I++ 4.83 05/02/2006 182,710
95,374 CAIRN HIGH GRADE FUNDING I 4.77 05/10/2006 94,905
368,916 CEDAR SPRINGS CAPITAL COMPANY LLC 4.78 04/05/2006 368,820
101,244 CEDAR SPRINGS CAPITAL COMPANY LLC 4.69 05/08/2006 100,772
32,625 CEDAR SPRINGS CAPITAL COMPANY LLC 4.70 05/10/2006 32,465
146,730 CEDAR SPRINGS CAPITAL COMPANY LLC 4.72 05/12/2006 145,968
73,365 CEDAR SPRINGS CAPITAL COMPANY LLC 4.90 06/07/2006 72,722
195,261 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.92 06/12/2006 193,416
403,507 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.72 04/12/2006 403,507
73,365 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.75 04/18/2007 73,365
258,245 CONSOLIDATED EDISON INCORPORATED 4.90 04/03/2006 258,245
18,341 CORPORATE ASSET SECURITIZATION AUSTRALIA LIMITED 4.81 04/13/2006 18,317
227,431 CREDIT SUISSE FIRST BOSTON NEW YORK SERIES YCD1+/- 4.92 05/04/2006 227,318
183,412 CULLINAN FINANCE CORPORATION+/- 4.71 11/15/2006 183,405
146,730 DEER VALLEY FUNDING LLC++ 4.51 04/10/2006 146,594
187,484 DEER VALLEY FUNDING LLC 4.81 04/17/2006 187,137
446,991 DEER VALLEY FUNDING LLC 4.83 04/19/2006 446,043
95,374 DEER VALLEY FUNDING LLC 4.80 05/03/2006 94,996
366,825 DEUTSCHE BANK REPURCHASE AGREEMENT
(MATURITY VALUE $366,973) 4.84 04/03/2006 366,825
351,338 EIFFEL FUNDING LLC 4.91 04/03/2006 351,338
22,010 EIFFEL FUNDING LLC 4.78 04/17/2006 21,969
264,268 EUREKA SECURITIZATION INCORPORATED 4.88 05/16/2006 262,756
6,045 GALLEON CAPITAL LLC 4.65 04/03/2006 6,045
11,005 GEMINI SECURITIZATION INCORPORATED 4.90 05/24/2006 10,930
176,076 GOLDMAN SACHS GROUP INCORPORATED+/- 4.97 06/30/2006 176,076
525,660 HARRIER FINANCE FUNDING LLC 4.62 04/03/2006 525,660
117,384 ING USA ANNUITY & LIFE INSURANCE+/- 5.03 06/06/2006 117,384
1,473,241 JP MORGAN CHASE SECURITIES CORPORATION REPURCHASE AGREEMENT
(MATURITY VALUE $1,473,846) 4.93 04/03/2006 1,473,241
68
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
DISCIPLINED GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 9,537 K2 (USA) LLC 4.63% 05/02/2006 $ 9,501
33,931 K2 (USA) LLC SERIES MTN+/- 4.87 07/24/2006 33,940
110,047 KAUPTHING BANK HF SERIES MTN+/-++ 4.84 03/20/2007 110,026
14,673 KLIO II FUNDING CORPORATION 4.58 04/05/2006 14,669
17,681 KLIO III FUNDING CORPORATION 4.69 04/19/2006 17,643
7,337 LEXINGTON PARKER CAPITAL CORPORATION 4.62 05/02/2006 7,308
27,849 LEXINGTON PARKER CAPITAL CORPORATION 4.69 05/10/2006 27,712
183,412 LIBERTY LIGHT US CAPITAL SERIES MTN+/- 4.81 05/26/2006 183,424
14,673 LINKS FINANCE LLC SERIES MTN1+/- 4.68 09/12/2006 14,673
44,019 LIQUID FUNDING LIMITED+/- 4.94 04/24/2006 44,021
168,740 LIQUID FUNDING LIMITED+/- 4.71 08/14/2006 168,740
110,048 LIQUID FUNDING LIMITED+/- 4.61 12/01/2006 110,048
44,019 LIQUID FUNDING LIMITED SERIES MTN+/- 4.83 02/20/2007 44,017
73,365 MBIA GLOBAL FUNDING LLC+/- 4.78 02/20/2007 73,361
368,659 MERRILL LYNCH & COMPANY SERIES MTN+/- 4.80 10/27/2006 368,936
220,095 MORGAN STANLEY+/- 4.94 10/10/2006 220,095
33,931 MORGAN STANLEY SERIES EXL+/- 4.78 08/13/2010 33,940
126,327 MORTGAGE INTEREST NET TRUST 4.68 04/03/2006 126,327
165,805 MORTGAGE INTEREST NET TRUST 4.78 05/03/2006 165,147
7,337 NATIONWIDE BUILDING SOC+/- 4.74 07/21/2006 7,340
161,792 NEWPORT FUNDING CORPORATION 4.92 04/03/2006 161,792
222,142 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 4.78 04/03/2006 222,142
256,777 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.68 04/04/2006 256,744
32,706 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.93 06/26/2006 32,335
13,939 NORDEA NORTH AMERICA INCORPORATED 4.89 05/15/2006 13,861
387,000 NORTHERN ROCK PLC+/- 4.63 04/21/2006 386,946
29,001 NORTHERN ROCK PLC 4.69 04/24/2006 28,921
366,825 NORTHERN ROCK PLC+/- 4.66 02/05/2007 366,829
29,676 RACERS TRUST 2004-6-MM+/- 4.79 05/22/2006 29,680
7,337 SCALDIS CAPITAL LIMITED 4.93 06/15/2006 7,264
29,346 TANGO FINANCE CORPORATION 4.95 06/21/2006 29,033
84,832 TANGO FINANCE CORPORATION SERIES MTN+/- 4.87 10/25/2006 84,860
42,412 TRAVELERS INSURANCE COMPANY+/- 4.77 02/09/2007 42,411
183,412 UNICREDITO ITALIANO SERIES LIB+/- 4.70 03/09/2007 183,401
183,412 UNICREDITO ITALIANO SERIES YCD+/- 4.47 04/03/2006 183,412
278,787 US BANK NA SERIES BKNT+/- 4.66 07/28/2006 278,795
73,365 WHISTLEJACKET CAPITAL LIMITED+/- 4.65 06/09/2006 73,365
7,337 WHITE PINE FINANCE LLC 4.64 04/18/2006 7,322
36,682 WHITE PINE FINANCE LLC 4.82 05/05/2006 36,526
29,948 WHITE PINE FINANCE LLC 4.84 05/25/2006 29,739
22,538 WHITE PINE FINANCE LLC 4.93 06/20/2006 22,300
193,603 WHITE PINE FINANCE LLC 4.93 06/22/2006 191,512
183,412 WHITE PINE FINANCE LLC+/- 4.70 07/17/2006 183,412
176,076 WHITE PINE FINANCE LLC SERIES MTN1+/- 4.81 06/12/2006 176,092
18,227,154
---------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $18,238,227) 18,238,227
---------------
69
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
DISCIPLINED GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
SHORT-TERM INVESTMENTS - 5.64%
10,630,161 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~&& $ 10,630,161
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $10,630,161) 10,630,161
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $179,270,825)* 113.79% $ 214,733,345
OTHER ASSETS AND LIABILITIES, NET (13.79) (26,021,200)
------ ---------------
TOTAL NET ASSETS 100.00% $ 188,712,145
====== ===============
<< ALL OR A PORTION OF THIS SECURITY IS ON LOAN. (SEE NOTE 2)
+ NON-INCOME EARNING SECURITIES.
+/- VARIABLE RATE INVESTMENTS.
++ SECURITIES THAT MAY BE RESOLD TO "QUALIFIED INSTITUTIONAL BUYERS" UNDER
RULE 144A OR SECURITIES OFFERED PURSUANT TO SECTION 4 (2) OF THE
SECURITIES ACT OF 1933, AS AMENDED.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
&& SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $10,630,161.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
70
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
EQUITY INCOME PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 99.27%
BUSINESS SERVICES - 1.92%
32 CA INCORPORATED<< $ 871
750,400 MICROSOFT CORPORATION 20,418,384
20,419,255
---------------
CHEMICALS & ALLIED PRODUCTS - 12.41%
561,475 ABBOTT LABORATORIES 23,845,843
161,472 AIR PRODUCTS & CHEMICALS INCORPORATED 10,849,304
203,750 COLGATE-PALMOLIVE COMPANY 11,634,125
601,234 E.I. DU PONT DE NEMOURS & COMPANY 25,378,087
764,735 PFIZER INCORPORATED 19,057,196
374,760 PROCTER & GAMBLE COMPANY 21,593,671
207,981 ROHM & HAAS COMPANY 10,164,032
198,400 WYETH 9,626,368
132,148,626
---------------
COMMUNICATIONS - 3.71%
107,150 ALLTEL CORPORATION 6,937,962
455,215 AT&T INCORPORATED<< 12,309,014
595,486 VERIZON COMMUNICATIONS INCORPORATED 20,282,253
39,529,229
---------------
DEPOSITORY INSTITUTIONS - 14.47%
555,780 BANK OF AMERICA CORPORATION<< 25,310,221
898,690 CITIGROUP INCORPORATED 42,454,116
245,200 FIFTH THIRD BANCORP 9,651,072
542,865 JP MORGAN CHASE & COMPANY 22,604,899
372,050 NORTH FORK BANCORPORATION INCORPORATED 10,726,202
665,731 US BANCORP 20,304,795
410,065 WACHOVIA CORPORATION 22,984,143
154,035,448
---------------
EATING & DRINKING PLACES - 1.79%
555,270 MCDONALD'S CORPORATION 19,079,077
---------------
ELECTRIC, GAS & SANITARY SERVICES - 6.70%
1,850 AMERICAN ELECTRIC POWER COMPANY INCORPORATED 62,937
169,358 DOMINION RESOURCES INCORPORATED 11,690,783
2,700 EDISON INTERNATIONAL 111,186
2,300 EXELON CORPORATION 121,670
191,545 FIRSTENERGY CORPORATION 9,366,550
308,170 FPL GROUP INCORPORATED<< 12,369,944
164,500 KINDER MORGAN INCORPORATED<< 15,132,355
259,200 MDU RESOURCES GROUP INCORPORATED 8,670,240
3,200 ONEOK INCORPORATED 103,200
214,215 PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED 13,718,329
71,347,194
---------------
71
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
EQUITY INCOME PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 10.49%
299,000 CISCO SYSTEMS INCORPORATED+ $ 6,479,330
276,250 EMERSON ELECTRIC COMPANY 23,102,787
1,090,994 GENERAL ELECTRIC COMPANY 37,944,771
785,750 INTEL CORPORATION 15,204,263
709,460 MOTOROLA INCORPORATED 16,253,729
614,870 NOKIA OYJ ADR 12,740,106
111,724,986
---------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES - 1.03%
213,600 QUEST DIAGNOSTICS INCORPORATED 10,957,680
---------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT - 2.71%
357,560 FORTUNE BRANDS INCORPORATED 28,830,063
---------------
FOOD & KINDRED PRODUCTS - 2.52%
463,295 PEPSICO INCORPORATED 26,773,818
---------------
GENERAL MERCHANDISE STORES - 2.87%
79,602 FEDERATED DEPARTMENT STORES INCORPORATED 5,810,946
475,745 TARGET CORPORATION 24,743,497
30,554,443
---------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 5.74%
348,491 3M COMPANY 26,377,284
504,295 HEWLETT-PACKARD COMPANY 16,591,305
219,942 INTERNATIONAL BUSINESS MACHINES CORPORATION 18,138,617
61,107,206
---------------
INSURANCE CARRIERS - 7.21%
252,395 ALLSTATE CORPORATION 13,152,303
330,793 AMERICAN INTERNATIONAL GROUP INCORPORATED 21,862,109
295,430 METLIFE INCORPORATED 14,289,949
655,750 ST. PAUL TRAVELERS COMPANIES INCORPORATED 27,403,793
76,708,154
---------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 2.28%
218,800 BAXTER INTERNATIONAL INCORPORATED 8,491,628
174,559 BECTON DICKINSON & COMPANY 10,749,343
141,300 BIOMET INCORPORATED+ 5,018,976
24,259,947
---------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 1.88%
75,458 ACCO BRANDS CORPORATION<<+ 1,675,168
309,565 JOHNSON & JOHNSON 18,332,439
20,007,607
---------------
MOTION PICTURES - 2.05%
631,150 TIME WARNER INCORPORATED 10,597,009
400,690 WALT DISNEY COMPANY 11,175,244
21,772,253
---------------
72
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
EQUITY INCOME PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
NON-DEPOSITORY CREDIT INSTITUTIONS - 2.04%
413,585 AMERICAN EXPRESS COMPANY $ 21,733,892
---------------
OIL & GAS EXTRACTION - 1.28%
1,000 ANADARKO PETROLEUM CORPORATION 101,010
1,100 SCHLUMBERGER LIMITED 139,227
243,200 TIDEWATER INCORPORATED<< 13,431,936
13,672,173
---------------
PETROLEUM REFINING & RELATED INDUSTRIES - 9.33%
215,758 BP PLC ADR 14,874,357
412,870 CHEVRONTEXACO CORPORATION 23,934,074
348,550 CONOCOPHILLIPS<< 22,010,932
552,786 EXXON MOBIL CORPORATION 33,642,556
77,784 ROYAL DUTCH SHELL PLC ADR CLASS A<< 4,842,832
99,304,751
---------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 3.20%
73,147 AMERIPRISE FINANCIAL INCORPORATED 3,296,004
490,600 MORGAN STANLEY 30,819,491
34,115,495
---------------
TOBACCO PRODUCTS - 1.57%
236,100 ALTRIA GROUP INCORPORATED 16,730,046
---------------
TRANSPORTATION EQUIPMENT - 1.51%
376,480 HONEYWELL INTERNATIONAL INCORPORATED 16,102,050
---------------
WHOLESALE TRADE NON-DURABLE GOODS - 0.56%
185,000 SYSCO CORPORATION 5,929,250
---------------
TOTAL COMMON STOCKS (COST $821,621,251) 1,056,842,643
---------------
COLLATERAL FOR SECURITIES LENDING - 9.39%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.01%
34,518 SCUDDER DAILY ASSETS MONEY MARKET FUND 34,517
26,155 SHORT TERM INVESTMENT COMPANY MONEY MARKET FUND 26,155
60,672
---------------
PRINCIPAL INTEREST RATE MATURITY DATE
COLLATERAL INVESTED IN OTHER ASSETS - 9.38%
$ 361,795 AMERICAN GENERAL FINANCE CORPORATION+/- 4.78% 04/13/2007 361,943
150,627 APRECO LLC 4.62 05/15/2006 149,785
329,675 APRECO LLC 4.94 06/15/2006 326,428
200,997 ASPEN FUNDING CORPORATION 4.92 04/03/2006 200,997
2,009,970 ATLAS CAPITAL FUNDING CORPORATION SERIES MTN+/- 4.62 11/03/2006 2,009,970
226,282 ATLAS CAPITAL FUNDING LIMITED 4.80 04/17/2006 225,864
482,393 ATLAS CAPITAL FUNDING LIMITED+/- 4.62 05/15/2006 479,696
1,004,985 ATLAS CAPITAL FUNDING LIMITED 4.80 10/20/2006 1,004,985
1,004,985 ATLAS CAPITAL FUNDING LIMITED+/- 4.80 12/22/2006 1,004,985
160,798 ATOMIUM FUNDING CORPORATION 4.53 04/12/2006 160,606
73
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
EQUITY INCOME PORTFOLIO
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 139,452 BETA FINANCE INCORPORATED SERIES MTN+/- 4.88% 06/02/2006 $ 139,470
20,019,299 BNP PARIBAS REPURCHASE AGREEMENT
(MATURITY VALUE $20,027,524) 4.93 04/03/2006 20,019,299
596,720 BUCKINGHAM CDO LLC++ 4.60 04/06/2006 596,481
1,956,344 BUCKINGHAM CDO LLC 4.82 04/21/2006 1,951,688
1,004,985 BUCKINGHAM CDO LLC 4.82 04/25/2006 1,002,060
1,045,184 BUCKINGHAM II CDO LLC++ 4.83 04/25/2006 1,042,143
4,019,940 BUCKINGHAM II CDO LLC 4.83 04/26/2006 4,007,719
1,205,982 CAIRN HIGH GRADE FUNDING I 4.59 04/06/2006 1,205,500
96,479 CAIRN HIGH GRADE FUNDING I 4.71 04/26/2006 96,185
1,688,375 CAIRN HIGH GRADE FUNDING I 4.83 04/27/2006 1,683,023
1,004,985 CAIRN HIGH GRADE FUNDING I++ 4.83 05/02/2006 1,001,136
522,592 CAIRN HIGH GRADE FUNDING I 4.77 05/10/2006 520,021
2,021,427 CEDAR SPRINGS CAPITAL COMPANY LLC 4.78 04/05/2006 2,020,901
554,752 CEDAR SPRINGS CAPITAL COMPANY LLC 4.69 05/08/2006 552,167
178,767 CEDAR SPRINGS CAPITAL COMPANY LLC 4.70 05/10/2006 177,887
803,988 CEDAR SPRINGS CAPITAL COMPANY LLC 4.72 05/12/2006 799,815
401,994 CEDAR SPRINGS CAPITAL COMPANY LLC 4.90 06/07/2006 398,468
1,069,907 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.92 06/12/2006 1,059,796
2,210,967 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.72 04/12/2006 2,210,967
401,994 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.75 04/18/2007 401,994
1,415,019 CONSOLIDATED EDISON INCORPORATED 4.90 04/03/2006 1,415,019
100,498 CORPORATE ASSET SECURITIZATION AUSTRALIA LIMITED+/- 4.81 04/13/2006 100,366
1,246,181 CREDIT SUISSE FIRST BOSTON NEW YORK SERIES YCD1 4.92 05/04/2006 1,245,558
1,004,985 CULLINAN FINANCE CORPORATION+/- 4.71 11/15/2006 1,004,945
803,988 DEER VALLEY FUNDING LLC++ 4.51 04/10/2006 803,240
1,027,296 DEER VALLEY FUNDING LLC 4.81 04/17/2006 1,025,395
2,449,229 DEER VALLEY FUNDING LLC 4.83 04/19/2006 2,444,036
522,592 DEER VALLEY FUNDING LLC 4.80 05/03/2006 520,517
2,009,970 DEUTSCHE BANK REPURCHASE AGREEMENT
(MATURITY VALUE $2,010,781) 4.84 04/03/2006 2,009,970
1,925,109 EIFFEL FUNDING LLC 4.91 04/03/2006 1,925,109
120,598 EIFFEL FUNDING LLC 4.78 04/17/2006 120,375
1,448,022 EUREKA SECURITIZATION INCORPORATED 4.88 05/16/2006 1,439,740
33,124 GALLEON CAPITAL LLC+/- 4.65 04/03/2006 33,124
60,299 GEMINI SECURITIZATION INCORPORATED 4.90 05/24/2006 59,888
964,786 GOLDMAN SACHS GROUP INCORPORATED+/- 4.97 06/30/2006 964,786
2,880,287 HARRIER FINANCE FUNDING LLC 4.62 04/03/2006 2,880,287
643,190 ING USA ANNUITY & LIFE INSURANCE+/- 5.03 06/06/2006 643,190
8,072,431 JP MORGAN CHASE SECURITIES CORPORATION REPURCHASE AGREEMENT
(MATURITY VALUE $8,075,747) 4.93 04/03/2006 8,072,431
52,259 K2 (USA) LLC 4.63 05/02/2006 52,059
185,922 K2 (USA) LLC SERIES MTN+/- 4.87 07/24/2006 185,969
602,991 KAUPTHING BANK HF SERIES MTN+/-++ 4.84 03/20/2007 602,870
80,399 KLIO II FUNDING CORPORATION 4.58 04/05/2006 80,378
74
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
EQUITY INCOME PORTFOLIO
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 96,881 KLIO III FUNDING CORPORATION 4.69% 04/19/2006 $ 96,675
40,199 LEXINGTON PARKER CAPITAL CORPORATION 4.62 05/02/2006 40,045
152,597 LEXINGTON PARKER CAPITAL CORPORATION 4.69 05/10/2006 151,846
1,004,985 LIBERTY LIGHT US CAPITAL SERIES MTN+/- 4.81 05/26/2006 1,005,045
80,399 LINKS FINANCE LLC SERIES MTN1+/- 4.68 09/12/2006 80,400
241,196 LIQUID FUNDING LIMITED+/- 4.94 04/24/2006 241,206
924,586 LIQUID FUNDING LIMITED+/- 4.71 08/14/2006 924,586
602,991 LIQUID FUNDING LIMITED+/- 4.61 12/01/2006 602,991
241,196 LIQUID FUNDING LIMITED SERIES MTN+/- 4.83 02/20/2007 241,184
401,994 MBIA GLOBAL FUNDING LLC+/- 4.78 02/20/2007 401,970
2,020,020 MERRILL LYNCH & COMPANY SERIES MTN+/- 4.80 10/27/2006 2,021,535
1,205,982 MORGAN STANLEY+/- 4.94 10/10/2006 1,205,982
185,922 MORGAN STANLEY SERIES EXL+/- 4.78 08/13/2010 185,972
692,193 MORTGAGE INTEREST NET TRUST 4.68 04/03/2006 692,193
908,506 MORTGAGE INTEREST NET TRUST 4.78 05/03/2006 904,900
40,199 NATIONWIDE BUILDING SOC+/- 4.74 07/21/2006 40,219
886,517 NEWPORT FUNDING CORPORATION 4.92 04/03/2006 886,517
1,217,198 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 4.78 04/03/2006 1,217,198
1,406,979 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.68 04/04/2006 1,406,796
179,209 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.93 06/26/2006 177,177
76,379 NORDEA NORTH AMERICA INCORPORATED 4.89 05/15/2006 75,952
2,120,518 NORTHERN ROCK PLC+/- 4.63 04/21/2006 2,120,221
158,908 NORTHERN ROCK PLC 4.69 04/24/2006 158,466
2,009,970 NORTHERN ROCK PLC+/- 4.66 02/05/2007 2,009,990
162,607 RACERS TRUST 2004-6-MM+/- 4.79 05/22/2006 162,629
40,199 SCALDIS CAPITAL LIMITED 4.93 06/15/2006 39,803
160,798 TANGO FINANCE CORPORATION 4.95 06/21/2006 159,083
464,826 TANGO FINANCE CORPORATION SERIES MTN+/- 4.87 10/25/2006 464,979
232,393 TRAVELERS INSURANCE COMPANY+/- 4.77 02/09/2007 232,388
1,004,985 UNICREDITO ITALIANO SERIES LIB+/- 4.70 03/09/2007 1,004,925
1,004,985 UNICREDITO ITALIANO SERIES YCD+/- 4.47 04/03/2006 1,004,985
1,527,577 US BANK NA SERIES BKNT 4.66 07/28/2006 1,527,623
401,994 WHISTLEJACKET CAPITAL LIMITED+/- 4.65 06/09/2006 401,994
40,199 WHITE PINE FINANCE LLC 4.64 04/18/2006 40,120
200,997 WHITE PINE FINANCE LLC 4.82 05/05/2006 200,141
164,094 WHITE PINE FINANCE LLC 4.84 05/25/2006 162,953
123,493 WHITE PINE FINANCE LLC 4.93 06/20/2006 122,192
1,060,822 WHITE PINE FINANCE LLC 4.93 06/22/2006 1,049,365
1,004,985 WHITE PINE FINANCE LLC+/- 4.70 07/17/2006 1,004,985
964,786 WHITE PINE FINANCE LLC SERIES MTN1 4.81 06/12/2006 964,872
99,873,334
---------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $99,934,006) 99,934,006
---------------
75
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
EQUITY INCOME PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
SHORT-TERM INVESTMENTS - 0.67%
7,179,031 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~&& $ 7,179,031
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $7,179,031) 7,179,031
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $928,734,288)* 109.33% $ 1,163,955,680
OTHER ASSETS AND LIABILITIES, NET (9.33) (99,312,636)
------ ---------------
TOTAL NET ASSETS 100.00% $ 1,064,643,044
====== ===============
<< ALL OR A PORTION OF THIS SECURITY IS ON LOAN. (SEE NOTE 2)
+ NON-INCOME EARNING SECURITIES.
+/- VARIABLE RATE INVESTMENTS.
++ SECURITIES THAT MAY BE RESOLD TO "QUALIFIED INSTITUTIONAL BUYERS" UNDER
RULE 144A OR SECURITIES OFFERED PURSUANT TO SECTION 4 (2) OF THE
SECURITIES ACT OF 1933, AS AMENDED.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
&& SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $7,179,031.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
76
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
EQUITY VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 98.18%
APPAREL & ACCESSORY STORES - 0.98%
37,200 ABERCROMBIE & FITCH COMPANY CLASS A $ 2,168,760
80,800 AMERICAN EAGLE OUTFITTERS INCORPORATED 2,412,688
4,581,448
---------------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS - 1.03%
112,800 HOME DEPOT INCORPORATED 4,771,440
---------------
CHEMICALS & ALLIED PRODUCTS - 6.66%
45,000 AMGEN INCORPORATED+ 3,273,750
105,500 DOW CHEMICAL COMPANY 4,283,300
139,900 MERCK & COMPANY INCORPORATED<< 4,928,677
579,000 PFIZER INCORPORATED 14,428,680
71,000 PROCTER & GAMBLE COMPANY 4,091,020
31,005,427
---------------
COMMUNICATIONS - 5.20%
332,600 AT&T INCORPORATED<< 8,993,504
226,800 SPRINT NEXTEL CORPORATION 5,860,512
274,600 VERIZON COMMUNICATIONS INCORPORATED 9,352,876
24,206,892
---------------
DEPOSITORY INSTITUTIONS - 10.06%
360,000 BANK OF AMERICA CORPORATION<< 16,394,400
270,000 CITIGROUP INCORPORATED<< 12,754,800
216,500 JP MORGAN CHASE & COMPANY 9,015,060
104,500 ZIONS BANCORPORATION 8,645,285
46,809,545
---------------
EATING & DRINKING PLACES - 0.99%
133,500 MCDONALD'S CORPORATION 4,587,060
---------------
ELECTRIC, GAS & SANITARY SERVICES - 4.89%
156,500 CMS ENERGY CORPORATION+ 2,026,675
102,000 CONSOLIDATED EDISON INCORPORATED<< 4,437,000
84,000 EXELON CORPORATION<< 4,443,600
111,400 FPL GROUP INCORPORATED<< 4,471,596
112,500 PPL CORPORATION 3,307,500
115,000 WASTE MANAGEMENT INCORPORATED 4,059,500
22,745,871
---------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 4.83%
196,500 FREESCALE SEMICONDUCTOR INCORPORATED+<< 5,464,665
139,000 GENERAL ELECTRIC COMPANY 4,834,420
45,800 HARMAN INTERNATIONAL INDUSTRIES INCORPORATED 5,089,754
164,600 MOTOROLA INCORPORATED 3,770,986
118,400 NATIONAL SEMICONDUCTOR CORPORATION 3,296,256
22,456,081
---------------
77
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
EQUITY VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES - 1.02%
157,500 ACCENTURE LIMITED CLASS A $ 4,736,025
---------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT - 1.02%
268,400 CROWN HOLDINGS INCORPORATED+<< 4,761,416
---------------
FOOD & KINDRED PRODUCTS - 1.50%
207,600 ARCHER-DANIELS-MIDLAND COMPANY 6,985,740
---------------
GENERAL MERCHANDISE STORES - 3.11%
78,900 FEDERATED DEPARTMENT STORES INCORPORATED 5,759,700
144,600 JC PENNEY COMPANY INCORPORATED 8,735,286
14,494,986
---------------
HOLDING & OTHER INVESTMENT OFFICES - 0.81%
175,500 HOST MARRIOTT CORPORATION 3,755,700
---------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 0.59%
70,900 BED BATH & BEYOND INCORPORATED+ 2,722,560
---------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 1.66%
154,800 BOYD GAMING CORPORATION<< 7,730,712
---------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 4.75%
42,300 3M COMPANY 3,201,687
283,000 EMC CORPORATION+ 3,857,290
138,500 HEWLETT-PACKARD COMPANY<< 4,556,650
42,000 INTERNATIONAL BUSINESS MACHINES CORPORATION 3,463,740
88,600 TEREX CORPORATION+ 7,020,664
22,100,031
---------------
INSURANCE CARRIERS - 11.75%
142,200 AMERICAN INTERNATIONAL GROUP INCORPORATED 9,397,998
173,900 ASSURANT INCORPORATED 8,564,575
49,800 CIGNA CORPORATION 6,504,876
71,500 HARTFORD FINANCIAL SERVICES GROUP INCORPORATED 5,759,325
65,000 LINCOLN NATIONAL CORPORATION<< 3,548,350
84,000 LOEWS CORPORATION 8,500,800
83,800 PRUDENTIAL FINANCIAL INCORPORATED 6,352,878
144,500 ST. PAUL TRAVELERS COMPANIES INCORPORATED 6,038,655
54,667,457
---------------
LOCAL & SUB-TRANSIT & INTERURBAN HIGHWAY PASS TRANSPORTATION - 0.70%
120,600 LAIDLAW INTERNATIONAL INCORPORATED 3,280,320
---------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 0.52%
156,200 TERADYNE INCORPORATED+<< 2,422,662
---------------
MEDICAL MANAGEMENT SERVICES - 0.48%
41,600 COVENTRY HEALTH CARE INCORPORATED+ 2,245,568
---------------
78
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
EQUITY VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MOTION PICTURES - 2.59%
299,000 TIME WARNER INCORPORATED $ 5,020,210
252,900 WALT DISNEY COMPANY<< 7,053,381
12,073,591
---------------
NON-DEPOSITORY CREDIT INSTITUTIONS - 1.02%
154,900 AMERICREDIT CORPORATION+<< 4,760,077
---------------
OIL & GAS EXTRACTION - 5.27%
560,000 CHESAPEAKE ENERGY CORPORATION 17,589,600
106,000 CIMAREX ENERGY COMPANY 4,585,560
26,300 DIAMOND OFFSHORE DRILLING INCORPORATED 2,353,850
24,529,010
---------------
PAPER & ALLIED PRODUCTS - 0.81%
111,100 SONOCO PRODUCTS COMPANY 3,762,957
---------------
PETROLEUM REFINING & RELATED INDUSTRIES - 7.31%
91,700 CHEVRONTEXACO CORPORATION 5,315,849
332,000 EXXON MOBIL CORPORATION 20,205,520
142,000 VALERO ENERGY CORPORATION 8,488,760
34,010,129
---------------
PRIMARY METAL INDUSTRIES - 0.44%
33,500 ALLEGHENY TECHNOLOGIES INCORPORATED<< 2,049,530
---------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 7.54%
93,200 BEAR STEARNS COMPANIES INCORPORATED 12,926,840
262,000 E*TRADE FINANCIAL CORPORATION+ 7,068,760
131,500 MERRILL LYNCH & COMPANY INCORPORATED<< 10,356,940
75,400 MORGAN STANLEY 4,736,628
35,089,168
---------------
TOBACCO PRODUCTS - 1.67%
109,400 ALTRIA GROUP INCORPORATED 7,752,084
---------------
TRANSPORTATION BY AIR - 0.83%
96,300 US AIRWAYS GROUP INCORPORATED+<< 3,852,000
---------------
TRANSPORTATION EQUIPMENT - 4.96%
82,800 HONEYWELL INTERNATIONAL INCORPORATED 3,541,356
42,000 JOHNSON CONTROLS INCORPORATED 3,189,060
102,300 TEXTRON INCORPORATED<< 9,553,797
117,500 UNITED TECHNOLOGIES CORPORATION 6,811,475
23,095,688
---------------
WATER TRANSPORTATION - 0.88%
97,600 ROYAL CARIBBEAN CRUISES LIMITED<< 4,101,152
---------------
79
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
EQUITY VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
WHOLESALE TRADE NON-DURABLE GOODS - 1.71%
133,500 AIRGAS INCORPORATED $ 5,218,515
47,700 MEDCO HEALTH SOLUTIONS INCORPORATED+ 2,729,394
7,947,909
---------------
WHOLESALE TRADE DURABLE GOODS - 0.60%
109,200 AVNET INCORPORATED+ 2,771,496
---------------
TOTAL COMMON STOCKS (COST $411,087,221) 456,861,732
---------------
COLLATERAL FOR SECURITIES LENDING - 16.20%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.01%
26,041 SCUDDER DAILY ASSETS MONEY MARKET FUND 26,041
19,731 SHORT TERM INVESTMENT COMPANY MONEY MARKET FUND 19,731
45,772
---------------
PRINCIPAL INTEREST RATE MATURITY DATE
COLLATERAL INVESTED IN OTHER ASSETS - 16.19%
$ 272,943 AMERICAN GENERAL FINANCE CORPORATION+/- 4.78% 04/13/2007 $ 273,055
113,635 APRECO LLC 4.62 05/15/2006 113,000
248,712 APRECO LLC 4.94 06/15/2006 246,262
151,635 ASPEN FUNDING CORPORATION 4.92 04/03/2006 151,635
1,516,350 ATLAS CAPITAL FUNDING CORPORATION SERIES MTN+/- 4.62 11/03/2006 1,516,350
363,924 ATLAS CAPITAL FUNDING LIMITED 4.62 05/15/2006 361,890
758,175 ATLAS CAPITAL FUNDING LIMITED+/- 4.80 10/20/2006 758,175
170,711 ATLAS CAPITAL FUNDING LIMITED 4.80 04/17/2006 170,395
758,175 ATLAS CAPITAL FUNDING LIMITED+/- 4.80 12/22/2006 758,175
121,308 ATOMIUM FUNDING CORPORATION 4.53 04/12/2006 121,164
105,204 BETA FINANCE INCORPORATED SERIES MTN+/- 4.88 06/02/2006 105,218
15,102,843 BNP PARIBAS REPURCHASE AGREEMENT
(MATURITY VALUE $15,109,048) 4.93 04/03/2006 15,102,843
450,174 BUCKINGHAM CDO LLC++ 4.60 04/06/2006 449,994
1,475,894 BUCKINGHAM CDO LLC 4.82 04/21/2006 1,472,381
758,175 BUCKINGHAM CDO LLC 4.82 04/25/2006 755,969
788,502 BUCKINGHAM II CDO LLC++ 4.83 04/25/2006 786,207
3,032,699 BUCKINGHAM II CDO LLC 4.83 04/26/2006 3,023,480
909,810 CAIRN HIGH GRADE FUNDING I 4.59 04/06/2006 909,446
394,251 CAIRN HIGH GRADE FUNDING I 4.77 05/10/2006 392,311
72,785 CAIRN HIGH GRADE FUNDING I 4.71 04/26/2006 72,563
1,273,734 CAIRN HIGH GRADE FUNDING I 4.83 04/27/2006 1,269,696
758,175 CAIRN HIGH GRADE FUNDING I++ 4.83 05/02/2006 755,271
1,524,993 CEDAR SPRINGS CAPITAL COMPANY LLC 4.78 04/05/2006 1,524,596
418,513 CEDAR SPRINGS CAPITAL COMPANY LLC 4.69 05/08/2006 416,562
134,864 CEDAR SPRINGS CAPITAL COMPANY LLC 4.70 05/10/2006 134,201
606,540 CEDAR SPRINGS CAPITAL COMPANY LLC 4.72 05/12/2006 603,392
303,270 CEDAR SPRINGS CAPITAL COMPANY LLC 4.90 06/07/2006 300,610
807,153 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.92 06/12/2006 799,525
303,270 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.75 04/18/2007 303,270
1,667,985 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.72 04/12/2006 1,667,985
80
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
EQUITY VALUE PORTFOLIO
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 1,067,510 CONSOLIDATED EDISON INCORPORATED 4.90% 04/03/2006 $ 1,067,510
75,817 CORPORATE ASSET SECURITIZATION AUSTRALIA LIMITED 4.81 04/13/2006 75,717
940,137 CREDIT SUISSE FIRST BOSTON NEW YORK SERIES YCD1+/- 4.92 05/04/2006 939,667
758,175 CULLINAN FINANCE CORPORATION+/- 4.71 11/15/2006 758,144
606,540 DEER VALLEY FUNDING LLC++ 4.51 04/10/2006 605,976
775,006 DEER VALLEY FUNDING LLC 4.81 04/17/2006 773,573
394,251 DEER VALLEY FUNDING LLC 4.80 05/03/2006 392,686
1,847,733 DEER VALLEY FUNDING LLC 4.83 04/19/2006 1,843,816
1,516,350 DEUTSCHE BANK REPURCHASE AGREEMENT
(MATURITY VALUE $1,516,962) 4.84 04/03/2006 1,516,350
1,452,329 EIFFEL FUNDING LLC 4.91 04/03/2006 1,452,329
90,981 EIFFEL FUNDING LLC 4.78 04/17/2006 90,813
1,092,409 EUREKA SECURITIZATION INCORPORATED 4.88 05/16/2006 1,086,160
24,989 GALLEON CAPITAL LLC 4.65 04/03/2006 24,989
45,490 GEMINI SECURITIZATION INCORPORATED 4.90 05/24/2006 45,181
727,848 GOLDMAN SACHS GROUP INCORPORATED+/- 4.97 06/30/2006 727,848
2,172,929 HARRIER FINANCE FUNDING LLC 4.62 04/03/2006 2,172,929
485,232 ING USA ANNUITY & LIFE INSURANCE+/- 5.03 06/06/2006 485,232
6,089,956 JP MORGAN CHASE SECURITIES CORPORATION REPURCHASE AGREEMENT
(MATURITY VALUE $6,092,458) 4.93 04/03/2006 6,089,956
39,425 K2 (USA) LLC 4.63 05/02/2006 39,274
140,262 K2 (USA) LLC SERIES MTN+/- 4.87 07/24/2006 140,297
454,905 KAUPTHING BANK HF SERIES MTN+/-++ 4.84 03/20/2007 454,814
60,654 KLIO II FUNDING CORPORATION 4.58 04/05/2006 60,638
73,088 KLIO III FUNDING CORPORATION 4.69 04/19/2006 72,933
30,327 LEXINGTON PARKER CAPITAL CORPORATION 4.62 05/02/2006 30,211
115,121 LEXINGTON PARKER CAPITAL CORPORATION 4.69 05/10/2006 114,555
758,175 LIBERTY LIGHT US CAPITAL SERIES MTN+/- 4.81 05/26/2006 758,220
60,654 LINKS FINANCE LLC SERIES MTN1+/- 4.68 09/12/2006 60,655
697,521 LIQUID FUNDING LIMITED+/- 4.71 08/14/2006 697,521
181,962 LIQUID FUNDING LIMITED+/- 4.94 04/24/2006 181,969
454,905 LIQUID FUNDING LIMITED+/- 4.61 12/01/2006 454,905
181,962 LIQUID FUNDING LIMITED SERIES MTN+/- 4.83 02/20/2007 181,953
303,270 MBIA GLOBAL FUNDING LLC+/- 4.78 02/20/2007 303,252
1,523,931 MERRILL LYNCH & COMPANY SERIES MTN+/- 4.80 10/27/2006 1,525,074
909,810 MORGAN STANLEY+/- 4.94 10/10/2006 909,810
140,262 MORGAN STANLEY SERIES EXL+/- 4.78 08/13/2010 140,300
685,390 MORTGAGE INTEREST NET TRUST 4.78 05/03/2006 682,669
522,200 MORTGAGE INTEREST NET TRUST 4.68 04/03/2006 522,200
30,327 NATIONWIDE BUILDING SOC+/- 4.74 07/21/2006 30,342
668,801 NEWPORT FUNDING CORPORATION 4.92 04/03/2006 668,801
918,271 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 4.78 04/03/2006 918,271
1,061,445 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.68 04/04/2006 1,061,307
135,198 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.93 06/26/2006 133,665
57,621 NORDEA NORTH AMERICA INCORPORATED 4.89 05/15/2006 57,299
1,599,749 NORTHERN ROCK PLC+/- 4.63 04/21/2006 1,599,525
1,516,350 NORTHERN ROCK PLC+/- 4.66 02/05/2007 1,516,365
81
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
EQUITY VALUE PORTFOLIO
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 119,883 NORTHERN ROCK PLC 4.69% 04/24/2006 $ 119,549
122,673 RACERS TRUST 2004-6-MM+/- 4.79 05/22/2006 122,690
30,327 SCALDIS CAPITAL LIMITED 4.93 06/15/2006 30,028
121,308 TANGO FINANCE CORPORATION 4.95 06/21/2006 120,015
350,671 TANGO FINANCE CORPORATION SERIES MTN+/- 4.87 10/25/2006 350,787
175,320 TRAVELERS INSURANCE COMPANY+/- 4.77 02/09/2007 175,317
758,175 UNICREDITO ITALIANO SERIES LIB+/- 4.70 03/09/2007 758,129
758,175 UNICREDITO ITALIANO SERIES YCD+/- 4.47 04/03/2006 758,175
1,152,426 US BANK NA SERIES BKNT+/- 4.66 07/28/2006 1,152,460
303,270 WHISTLEJACKET CAPITAL LIMITED+/- 4.65 06/09/2006 303,270
30,327 WHITE PINE FINANCE LLC 4.64 04/18/2006 30,267
758,175 WHITE PINE FINANCE LLC+/- 4.70 07/17/2006 758,175
151,635 WHITE PINE FINANCE LLC 4.82 05/05/2006 150,989
123,795 WHITE PINE FINANCE LLC 4.84 05/25/2006 122,934
93,165 WHITE PINE FINANCE LLC 4.93 06/20/2006 92,183
800,299 WHITE PINE FINANCE LLC 4.93 06/22/2006 791,656
727,848 WHITE PINE FINANCE LLC SERIES MTN1+/- 4.81 06/12/2006 727,913
75,345,859
---------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $75,391,631) 75,391,631
---------------
SHARES
SHORT-TERM INVESTMENTS - 1.52%
7,042,763 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~&& 7,042,763
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $7,042,763) 7,042,763
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $493,521,615)* 115.90% $ 539,296,126
OTHER ASSETS AND LIABILITIES, NET (15.90) (73,982,058)
------ ---------------
TOTAL NET ASSETS 100.00% $ 465,314,068
====== ===============
+ NON-INCOME EARNING SECURITIES.
<< ALL OR A PORTION OF THIS SECURITY IS ON LOAN. (SEE NOTE 2)
+/- VARIABLE RATE INVESTMENTS.
++ SECURITIES THAT MAY BE RESOLD TO "QUALIFIED INSTITUTIONAL BUYERS" UNDER
RULE 144A OR SECURITIES OFFERED PURSUANT TO SECTION 4 (2) OF THE
SECURITIES ACT OF 1933, AS AMENDED.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
&& SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $7,042,763.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
82
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 99.79%
AMUSEMENT & RECREATION SERVICES - 0.22%
36,416 HARRAH'S ENTERTAINMENT INCORPORATED<< $ 2,838,991
66,700 INTERNATIONAL GAME TECHNOLOGY 2,349,174
5,188,165
---------------
APPAREL & ACCESSORY STORES - 0.39%
113,537 GAP INCORPORATED 2,120,871
68,197 KOHL'S CORPORATION+ 3,615,123
68,885 LIMITED BRANDS 1,684,927
43,243 NORDSTROM INCORPORATED 1,694,261
9,115,182
---------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS - 0.11%
22,591 JONES APPAREL GROUP INCORPORATED 799,044
20,796 LIZ CLAIBORNE INCORPORATED 852,220
17,434 VF CORPORATION 991,994
2,643,258
---------------
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS - 0.08%
35,832 AUTONATION INCORPORATED+ 772,179
10,927 AUTOZONE INCORPORATED+ 1,089,313
1,861,492
---------------
AUTOMOTIVE REPAIR, SERVICES & PARKING - 0.02%
12,033 RYDER SYSTEM INCORPORATED 538,838
---------------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS - 0.32%
24,287 CENTEX CORPORATION 1,505,551
53,768 D.R. HORTON INCORPORATED 1,786,173
15,203 KB HOME<< 987,891
27,116 LENNAR CORPORATION CLASS A<< 1,637,264
42,323 PULTE HOMES INCORPORATED<< 1,626,050
7,542,929
---------------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS - 1.24%
420,218 HOME DEPOT INCORPORATED 17,775,221
154,676 LOWE'S COMPANIES INCORPORATED 9,967,322
21,938 SHERWIN-WILLIAMS COMPANY<< 1,084,615
28,827,158
---------------
BUSINESS SERVICES - 6.45%
118,652 ADOBE SYSTEMS INCORPORATED<< 4,143,328
23,247 AFFILIATED COMPUTER SERVICES INCORPORATED CLASS A+ 1,386,916
45,656 AUTODESK INCORPORATED+ 1,758,669
114,647 AUTOMATIC DATA PROCESSING INCORPORATED 5,237,075
42,100 BMC SOFTWARE INCORPORATED<<+ 911,886
90,257 CA INCORPORATED<< 2,455,893
199,435 CENDANT CORPORATION 3,460,197
83
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
BUSINESS SERVICES (CONTINUED)
35,305 CITRIX SYSTEMS INCORPORATED+ $ 1,338,060
36,891 COMPUTER SCIENCES CORPORATION+ 2,049,295
75,721 COMPUWARE CORPORATION+ 592,895
27,661 CONVERGYS CORPORATION+ 503,707
228,183 EBAY INCORPORATED+ 8,912,828
60,095 ELECTRONIC ARTS INCORPORATED+ 3,288,398
101,779 ELECTRONIC DATA SYSTEMS CORPORATION 2,730,731
25,600 EQUIFAX INCORPORATED 953,344
151,746 FIRST DATA CORPORATION 7,104,748
36,495 FISERV INCORPORATED+ 1,552,862
39,983 GOOGLE INCORPORATED CLASS A+ 15,593,370
39,413 IMS HEALTH INCORPORATED 1,015,673
85,973 INTERPUBLIC GROUP OF COMPANIES INCORPORATED<<+ 821,902
35,002 INTUIT INCORPORATED+ 1,861,756
1,757,935 MICROSOFT CORPORATION 47,833,411
25,011 MONSTER WORLDWIDE INCORPORATED<<+ 1,247,048
36,002 NCR CORPORATION+ 1,504,524
77,037 NOVELL INCORPORATED<<+ 591,644
35,368 OMNICOM GROUP INCORPORATED 2,944,386
745,427 ORACLE CORPORATION+ 10,204,896
21,973 PARAMETRIC TECHNOLOGY CORPORATION+ 358,822
33,924 ROBERT HALF INTERNATIONAL INCORPORATED 1,309,806
684,641 SUN MICROSYSTEMS INCORPORATED+ 3,512,208
206,384 SYMANTEC CORPORATION+ 3,473,443
67,646 UNISYS CORPORATION+ 466,081
48,380 VERISIGN INCORPORATED<<+ 1,160,636
249,622 YAHOO! INCORPORATED<<+ 8,052,806
150,333,244
---------------
CHEMICALS & ALLIED PRODUCTS - 9.79%
304,365 ABBOTT LABORATORIES 12,926,382
44,039 AIR PRODUCTS & CHEMICALS INCORPORATED 2,958,980
14,943 ALBERTO-CULVER COMPANY CLASS B 660,929
231,175 AMGEN INCORPORATED+ 16,817,981
21,851 AVERY DENNISON CORPORATION 1,277,846
89,117 AVON PRODUCTS INCORPORATED<< 2,777,777
20,920 BARR PHARMACEUTICALS INCORPORATED<<+ 1,317,542
68,068 BIOGEN IDEC INCORPORATED<<+ 3,206,003
387,537 BRISTOL-MYERS SQUIBB COMPANY 9,537,286
21,635 CHIRON CORPORATION<<+ 991,099
29,694 CLOROX COMPANY 1,777,186
101,945 COLGATE-PALMOLIVE COMPANY 5,821,059
191,372 DOW CHEMICAL COMPANY 7,769,703
181,985 E.I. DU PONT DE NEMOURS & COMPANY 7,681,587
16,149 EASTMAN CHEMICAL COMPANY 826,506
36,064 ECOLAB INCORPORATED 1,377,645
223,529 ELI LILLY & COMPANY<< 12,361,154
84
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
CHEMICALS & ALLIED PRODUCTS (CONTINUED)
23,571 ESTEE LAUDER COMPANIES INCORPORATED CLASS A $ 876,605
64,466 FOREST LABORATORIES INCORPORATED+ 2,877,118
51,390 GENZYME CORPORATION+ 3,454,436
91,447 GILEAD SCIENCES INCORPORATED+ 5,689,832
31,819 HOSPIRA INCORPORATED+ 1,255,578
15,616 INTERNATIONAL FLAVORS & FRAGRANCES INCORPORATED 535,941
47,887 KING PHARMACEUTICALS INCORPORATED+ 826,051
50,533 MEDIMMUNE INCORPORATED+ 1,848,497
432,633 MERCK & COMPANY INCORPORATED<< 15,241,661
53,287 MONSANTO COMPANY 4,516,073
43,243 MYLAN LABORATORIES INCORPORATED 1,011,886
1,455,522 PFIZER INCORPORATED 36,271,608
32,705 PPG INDUSTRIES INCORPORATED 2,071,862
63,851 PRAXAIR INCORPORATED 3,521,383
650,640 PROCTER & GAMBLE COMPANY 37,489,877
28,489 ROHM & HAAS COMPANY 1,392,257
292,664 SCHERING-PLOUGH CORPORATION<< 5,557,689
13,228 SIGMA-ALDRICH CORPORATION 870,270
265,881 WYETH 12,900,546
228,295,835
---------------
COMMUNICATIONS - 3.97%
76,748 ALLTEL CORPORATION 4,969,433
767,480 AT&T INCORPORATED<< 20,752,659
82,496 AVAYA INCORPORATED<<+ 932,205
355,637 BELLSOUTH CORPORATION 12,322,822
25,912 CENTURYTEL INCORPORATED<< 1,013,677
102,237 CLEAR CHANNEL COMMUNICATIONS INCORPORATED 2,965,895
423,054 COMCAST CORPORATION CLASS A<<+ 11,067,093
306,865 QWEST COMMUNICATIONS INTERNATIONAL INCORPORATED+ 2,086,682
586,975 SPRINT NEXTEL CORPORATION 15,167,434
44,229 UNIVISION COMMUNICATIONS INCORPORATED CLASS A<<+ 1,524,574
578,973 VERIZON COMMUNICATIONS INCORPORATED 19,719,820
92,522,294
---------------
DEPOSITORY INSTITUTIONS - 10.27%
68,358 AMSOUTH BANCORPORATION<< 1,849,084
918,809 BANK OF AMERICA CORPORATION 41,842,562
152,582 BANK OF NEW YORK COMPANY INCORPORATED 5,499,055
105,914 BB&T CORPORATION<< 4,151,829
987,361 CITIGROUP INCORPORATED 46,642,934
32,200 COMERICA INCORPORATED 1,866,634
24,449 COMPASS BANCSHARES INCORPORATED 1,237,364
109,911 FIFTH THIRD BANCORP<< 4,326,097
24,925 FIRST HORIZON NATIONAL CORPORATION 1,038,126
50,652 GOLDEN WEST FINANCIAL CORPORATION 3,439,271
49,203 HUNTINGTON BANCSHARES INCORPORATED 1,187,268
85
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
DEPOSITORY INSTITUTIONS (CONTINUED)
689,500 JP MORGAN CHASE & COMPANY $ 28,710,780
80,146 KEYCORP 2,949,373
15,696 M&T BANK CORPORATION 1,791,541
41,517 MARSHALL & ILSLEY CORPORATION 1,809,311
81,967 MELLON FINANCIAL CORPORATION 2,918,025
108,283 NATIONAL CITY CORPORATION 3,779,077
94,097 NORTH FORK BANCORPORATION INCORPORATED 2,712,817
36,644 NORTHERN TRUST CORPORATION 1,923,810
57,808 PNC FINANCIAL SERVICES GROUP 3,891,056
90,273 REGIONS FINANCIAL CORPORATION 3,174,901
70,651 SOVEREIGN BANCORP INCORPORATED 1,547,963
65,872 STATE STREET CORPORATION 3,980,645
73,345 SUNTRUST BANKS INCORPORATED 5,336,582
61,966 SYNOVUS FINANCIAL CORPORATION 1,678,659
356,244 US BANCORP 10,865,442
320,966 WACHOVIA CORPORATION 17,990,144
196,148 WASHINGTON MUTUAL INCORPORATED<< 8,359,828
331,518 WELLS FARGO & COMPANY&& 21,174,055
20,646 ZIONS BANCORPORATION 1,708,044
239,382,277
---------------
EATING & DRINKING PLACES - 0.59%
26,016 DARDEN RESTAURANTS INCORPORATED 1,067,436
248,585 MCDONALD'S CORPORATION 8,541,381
22,614 WENDY'S INTERNATIONAL INCORPORATED 1,403,425
54,563 YUM! BRANDS INCORPORATED 2,665,948
13,678,190
---------------
EDUCATIONAL SERVICES - 0.06%
27,815 APOLLO GROUP INCORPORATED CLASS A+ 1,460,566
---------------
ELECTRIC, GAS & SANITARY SERVICES - 3.63%
129,764 AES CORPORATION+ 2,213,774
32,280 ALLEGHENY ENERGY INCORPORATED+ 1,092,678
43,375 ALLIED WASTE INDUSTRIES INCORPORATED+ 530,910
40,502 AMEREN CORPORATION<< 2,017,810
77,884 AMERICAN ELECTRIC POWER COMPANY INCORPORATED 2,649,614
61,344 CENTERPOINT ENERGY INCORPORATED<< 731,834
39,451 CINERGY CORPORATION 1,791,470
64,974 CITIZENS COMMUNICATIONS COMPANY<< 862,205
43,669 CMS ENERGY CORPORATION+ 565,514
48,551 CONSOLIDATED EDISON INCORPORATED 2,111,968
35,301 CONSTELLATION ENERGY GROUP INCORPORATED 1,931,318
68,737 DOMINION RESOURCES INCORPORATED<< 4,744,915
35,174 DTE ENERGY COMPANY<< 1,410,126
183,610 DUKE ENERGY CORPORATION<< 5,352,231
59,597 DYNEGY INCORPORATED CLASS A+ 286,066
64,450 EDISON INTERNATIONAL 2,654,051
86
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ELECTRIC, GAS & SANITARY SERVICES (CONTINUED)
130,405 EL PASO CORPORATION $ 1,571,380
41,115 ENTERGY CORPORATION 2,834,468
131,989 EXELON CORPORATION 6,982,218
65,247 FIRSTENERGY CORPORATION 3,190,578
79,830 FPL GROUP INCORPORATED<< 3,204,376
34,533 KEYSPAN CORPORATION 1,411,364
20,817 KINDER MORGAN INCORPORATED<< 1,914,956
8,741 NICOR INCORPORATED 345,794
53,933 NISOURCE INCORPORATED 1,090,525
7,585 PEOPLES ENERGY CORPORATION<< 270,329
68,310 PG&E CORPORATION 2,657,259
19,616 PINNACLE WEST CAPITAL CORPORATION 766,986
75,218 PPL CORPORATION 2,211,409
49,907 PROGRESS ENERGY INCORPORATED 2,194,910
49,591 PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED 3,175,808
51,118 SEMPRA ENERGY 2,374,942
146,728 SOUTHERN COMPANY<< 4,808,277
41,211 TECO ENERGY INCORPORATED 664,321
91,542 TXU CORPORATION 4,097,420
109,255 WASTE MANAGEMENT INCORPORATED 3,856,684
117,632 WILLIAMS COMPANIES INCORPORATED<< 2,516,148
79,881 XCEL ENERGY INCORPORATED 1,449,840
84,536,476
---------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 9.37%
23,164 ADC TELECOMMUNICATIONS INCORPORATED<<+ 592,767
95,127 ADVANCED MICRO DEVICES INCORPORATED+ 3,154,411
71,074 ALTERA CORPORATION<<+ 1,466,967
33,999 AMERICAN POWER CONVERSION CORPORATION 785,717
72,428 ANALOG DEVICES INCORPORATED 2,773,268
31,519 ANDREW CORPORATION+ 387,053
58,219 APPLIED MICRO CIRCUITS CORPORATION+ 236,951
87,137 BROADCOM CORPORATION CLASS A+ 3,760,833
115,199 CIENA CORPORATION+ 600,187
1,216,682 CISCO SYSTEMS INCORPORATED+ 26,365,499
39,959 COMVERSE TECHNOLOGY INCORPORATED+ 940,235
18,161 COOPER INDUSTRIES LIMITED CLASS A 1,578,191
81,383 EMERSON ELECTRIC COMPANY 6,806,060
81,183 FREESCALE SEMICONDUCTOR INCORPORATED CLASS B+ 2,254,451
2,061,925 GENERAL ELECTRIC COMPANY 71,713,752
12,986 HARMAN INTERNATIONAL INDUSTRIES INCORPORATED 1,443,134
1,163,754 INTEL CORPORATION 22,518,640
34,535 JABIL CIRCUIT INCORPORATED+ 1,480,170
331,583 JDS UNIPHASE CORPORATION<<+ 1,382,701
39,469 KLA-TENCOR CORPORATION<< 1,908,721
23,988 L-3 COMMUNICATIONS HOLDINGS INCORPORATED 2,057,931
60,471 LINEAR TECHNOLOGY CORPORATION 2,121,323
87
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT (CONTINUED)
77,484 LSI LOGIC CORPORATION+ $ 895,715
884,079 LUCENT TECHNOLOGIES INCORPORATED<<+ 2,696,441
63,420 MAXIM INTEGRATED PRODUCTS INCORPORATED 2,356,053
15,910 MAYTAG CORPORATION 339,360
122,409 MICRON TECHNOLOGY INCORPORATED+ 1,801,861
28,186 MOLEX INCORPORATED 935,775
494,464 MOTOROLA INCORPORATED 11,328,170
66,760 NATIONAL SEMICONDUCTOR CORPORATION 1,858,598
74,015 NETWORK APPLIANCE INCORPORATED+ 2,666,760
26,384 NOVELLUS SYSTEMS INCORPORATED<<+ 633,216
33,861 NVIDIA CORPORATION+ 1,938,881
36,750 PMC-SIERRA INCORPORATED+ 451,658
31,917 QLOGIC CORPORATION+ 617,594
327,641 QUALCOMM INCORPORATED 16,581,911
34,080 ROCKWELL COLLINS INCORPORATED 1,920,408
105,271 SANMINA-SCI CORPORATION+ 431,611
89,095 TELLABS INCORPORATED+ 1,416,611
316,574 TEXAS INSTRUMENTS INCORPORATED 10,279,158
13,458 WHIRLPOOL CORPORATION 1,231,003
68,200 XILINX INCORPORATED 1,736,372
218,446,118
---------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES - 0.40%
17,175 FLUOR CORPORATION<< 1,473,615
48,121 MOODY'S CORPORATION 3,438,727
66,079 PAYCHEX INCORPORATED 2,752,851
32,181 QUEST DIAGNOSTICS INCORPORATED 1,650,885
9,316,078
---------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT - 0.33%
20,629 BALL CORPORATION 904,169
28,949 FORTUNE BRANDS INCORPORATED 2,334,158
40,566 ILLINOIS TOOL WORKS INCORPORATED 3,906,911
11,533 SNAP-ON INCORPORATED 439,638
7,584,876
---------------
FINANCIAL SERVICES - 0.04%
42,486 JANUS CAPITAL GROUP INCORPORATED 984,401
---------------
FOOD & KINDRED PRODUCTS - 3.05%
153,577 ANHEUSER-BUSCH COMPANIES INCORPORATED<< 6,568,488
129,334 ARCHER-DANIELS-MIDLAND COMPANY 4,352,089
36,454 CAMPBELL SOUP COMPANY 1,181,110
60,021 COCA-COLA ENTERPRISES INCORPORATED 1,220,827
102,718 CONAGRA FOODS INCORPORATED 2,204,328
38,999 CONSTELLATION BRANDS INCORPORATED CLASS A<<+ 976,925
70,458 GENERAL MILLS INCORPORATED 3,570,812
22,330 HERCULES INCORPORATED<<+ 308,154
88
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
FOOD & KINDRED PRODUCTS (CONTINUED)
35,451 HERSHEY FOODS CORPORATION $ 1,851,606
66,270 HJ HEINZ COMPANY 2,512,958
49,729 KELLOGG COMPANY 2,190,065
26,233 MCCORMICK & COMPANY INCORPORATED 888,249
11,354 MOLSON COORS BREWING COMPANY 779,112
26,749 PEPSI BOTTLING GROUP INCORPORATED 812,902
327,735 PEPSICO INCORPORATED 18,939,806
150,369 SARA LEE CORPORATION<< 2,688,598
407,513 THE COCA-COLA COMPANY<< 17,062,569
49,842 TYSON FOODS INCORPORATED CLASS A 684,829
35,104 WM. WRIGLEY JR. COMPANY<< 2,246,656
71,040,083
---------------
FOOD STORES - 0.62%
72,954 ALBERTSON'S INCORPORATED 1,872,729
143,512 KROGER COMPANY 2,921,905
88,958 SAFEWAY INCORPORATED 2,234,625
151,005 STARBUCKS CORPORATION+ 5,683,828
27,482 WHOLE FOODS MARKET INCORPORATED 1,825,904
14,538,991
---------------
FORESTRY - 0.15%
48,120 WEYERHAEUSER COMPANY 3,485,332
---------------
FURNITURE & FIXTURES - 0.21%
36,079 LEGGETT & PLATT INCORPORATED 879,245
82,351 MASCO CORPORATION 2,675,584
54,300 NEWELL RUBBERMAID INCORPORATED<< 1,367,817
4,922,646
---------------
GENERAL MERCHANDISE STORES - 1.98%
22,539 BIG LOTS INCORPORATED<<+ 314,645
62,634 DOLLAR GENERAL CORPORATION 1,106,743
30,715 FAMILY DOLLAR STORES INCORPORATED 817,019
53,848 FEDERATED DEPARTMENT STORES INCORPORATED 3,930,904
45,941 JC PENNEY COMPANY INCORPORATED 2,775,296
19,743 SEARS HOLDINGS CORPORATION<<+ 2,610,814
173,917 TARGET CORPORATION 9,045,423
91,132 TJX COMPANIES INCORPORATED 2,261,896
494,164 WAL-MART STORES INCORPORATED 23,344,307
46,207,047
---------------
HEALTH SERVICES - 0.54%
88,748 CAREMARK RX INCORPORATED+ 4,364,627
80,695 HCA INCORPORATED<< 3,695,024
47,604 HEALTH MANAGEMENT ASSOCIATION INCORPORATED CLASS A 1,026,818
24,786 LABORATORY CORPORATION OF AMERICA HOLDINGS+ 1,449,485
15,641 MANOR CARE INCORPORATED 693,678
89
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
HEALTH SERVICES (CONTINUED)
93,034 TENET HEALTHCARE CORPORATION+ $ 686,591
20,104 WATSON PHARMACEUTICALS INCORPORATED+ 577,789
12,494,012
---------------
HOLDING & OTHER INVESTMENT OFFICES - 0.95%
19,102 APARTMENT INVESTMENT & MANAGEMENT COMPANY CLASS A 895,884
42,195 ARCHSTONE-SMITH TRUST 2,057,850
17,750 BOSTON PROPERTIES INCORPORATED 1,655,188
80,347 EQUITY OFFICE PROPERTIES TRUST 2,698,052
57,450 EQUITY RESIDENTIAL 2,688,085
39,728 KIMCO REALTY CORPORATION 1,614,546
36,461 PLUM CREEK TIMBER COMPANY<< 1,346,505
48,167 PROLOGIS 2,576,934
16,355 PUBLIC STORAGE INCORPORATED<< 1,328,517
36,185 SIMON PROPERTY GROUP INCORPORATED<< 3,044,606
23,473 VORNADO REALTY TRUST<< 2,253,408
22,159,575
---------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 0.34%
55,478 BED BATH & BEYOND INCORPORATED+ 2,130,355
80,439 BEST BUY COMPANY INCORPORATED 4,498,954
30,117 CIRCUIT CITY STORES INCORPORATED 737,264
26,631 RADIO SHACK CORPORATION 512,114
7,878,687
---------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 0.29%
65,192 HILTON HOTELS CORPORATION 1,659,788
32,091 MARRIOTT INTERNATIONAL INCORPORATED CLASS A 2,201,443
42,695 STARWOOD HOTELS & RESORTS WORLDWIDE INCORPORATED 2,891,732
6,752,963
---------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 5.58%
149,349 3M COMPANY 11,304,226
35,259 AMERICAN STANDARD COMPANIES INCORPORATED 1,511,201
168,476 APPLE COMPUTER INCORPORATED+ 10,566,815
313,850 APPLIED MATERIALS INCORPORATED<< 5,495,514
67,706 BAKER HUGHES INCORPORATED<< 4,631,090
15,308 BLACK & DECKER CORPORATION 1,330,112
132,708 CATERPILLAR INCORPORATED<< 9,529,762
9,189 CUMMINS INCORPORATED<< 965,764
46,862 DEERE & COMPANY 3,704,441
465,565 DELL INCORPORATED+ 13,855,214
40,216 DOVER CORPORATION 1,952,889
29,454 EATON CORPORATION<< 2,149,258
470,160 EMC CORPORATION+ 6,408,281
52,279 GATEWAY INCORPORATED+ 114,491
559,508 HEWLETT-PACKARD COMPANY 18,407,813
64,780 INGERSOLL-RAND COMPANY CLASS A 2,707,156
90
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (CONTINUED)
310,040 INTERNATIONAL BUSINESS MACHINES CORPORATION<< $ 25,568,999
21,421 LEXMARK INTERNATIONAL INCORPORATED<<+ 972,085
34,562 NATIONAL-OILWELL VARCO INCORPORATED<<+ 2,216,115
24,711 PALL CORPORATION 770,736
23,684 PARKER HANNIFIN CORPORATION 1,909,167
44,900 PITNEY BOWES INCORPORATED<< 1,927,557
180,915 SOLECTRON CORPORATION+ 723,660
14,330 STANLEY WORKS 725,958
50,044 SYMBOL TECHNOLOGIES INCORPORATED 529,466
129,977,770
---------------
INSURANCE AGENTS, BROKERS & SERVICE - 0.44%
63,688 AON CORPORATION<< 2,643,689
32,340 HUMANA INCORPORATED+ 1,702,701
26,906 JEFFERSON-PILOT CORPORATION 1,505,121
108,205 MARSH & MCLENNAN COMPANIES INCORPORATED 3,176,899
59,075 UNUMPROVIDENT CORPORATION<< 1,209,856
10,238,266
---------------
INSURANCE CARRIERS - 5.81%
63,761 ACE LIMITED 3,316,210
112,181 AETNA INCORPORATED 5,512,574
98,546 AFLAC INCORPORATED 4,447,381
127,588 ALLSTATE CORPORATION 6,648,611
20,874 AMBAC FINANCIAL GROUP INCORPORATED 1,661,570
513,454 AMERICAN INTERNATIONAL GROUP INCORPORATED 33,934,175
39,545 CHUBB CORPORATION 3,774,175
23,949 CIGNA CORPORATION 3,128,218
34,441 CINCINNATI FINANCIAL CORPORATION 1,448,933
74,531 GENWORTH FINANCIAL INCORPORATED 2,491,571
59,831 HARTFORD FINANCIAL SERVICES GROUP INCORPORATED 4,819,387
34,269 LINCOLN NATIONAL CORPORATION<< 1,870,745
26,842 LOEWS CORPORATION 2,716,410
26,509 MBIA INCORPORATED<< 1,593,986
149,937 METLIFE INCORPORATED 7,252,453
17,307 MGIC INVESTMENT CORPORATION<< 1,153,166
55,289 PRINCIPAL FINANCIAL GROUP INCORPORATED 2,698,103
38,912 PROGRESSIVE CORPORATION 4,056,965
97,919 PRUDENTIAL FINANCIAL INCORPORATED 7,423,239
24,385 SAFECO CORPORATION 1,224,371
137,663 ST. PAUL TRAVELERS COMPANIES INCORPORATED 5,752,937
20,487 TORCHMARK CORPORATION 1,169,808
268,296 UNITEDHEALTH GROUP INCORPORATED 14,987,015
130,558 WELLPOINT INCORPORATED+ 10,109,106
34,503 XL CAPITAL LIMITED CLASS A 2,211,987
135,403,096
---------------
91
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
LEATHER & LEATHER PRODUCTS - 0.11%
75,834 COACH INCORPORATED+ $ 2,622,340
---------------
LUMBER & WOOD PRODUCTS, EXCEPT FURNITURE - 0.02%
20,975 LOUISIANA-PACIFIC CORPORATION<< 570,520
---------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 2.93%
84,815 AGILENT TECHNOLOGIES INCORPORATED+ 3,184,803
29,998 ALLERGAN INCORPORATED<< 3,254,783
36,254 APPLERA CORPORATION-APPLIED BIOSYSTEMS GROUP 983,934
10,636 BAUSCH & LOMB INCORPORATED 677,513
128,280 BAXTER INTERNATIONAL INCORPORATED 4,978,547
48,927 BECTON DICKINSON & COMPANY 3,012,925
48,964 BIOMET INCORPORATED+ 1,739,201
117,014 BOSTON SCIENTIFIC CORPORATION<<+ 2,697,173
20,574 C.R. BARD INCORPORATED 1,395,123
46,929 DANAHER CORPORATION 2,982,338
56,815 EASTMAN KODAK COMPANY<< 1,615,819
24,410 FISHER SCIENTIFIC INTERNATIONAL INCORPORATED<<+ 1,661,100
67,031 GUIDANT CORPORATION<< 5,232,440
238,766 MEDTRONIC INCORPORATED 12,117,374
10,300 MILLIPORE CORPORATION+ 752,518
25,873 PERKINELMER INCORPORATED 607,239
88,248 RAYTHEON COMPANY 4,045,288
35,059 ROCKWELL AUTOMATION INCORPORATED 2,521,093
72,515 ST. JUDE MEDICAL INCORPORATED+ 2,973,115
57,803 STRYKER CORPORATION<< 2,562,985
16,143 TEKTRONIX INCORPORATED 576,467
39,186 TERADYNE INCORPORATED+ 607,775
32,080 THERMO ELECTRON CORPORATION+ 1,189,847
20,675 WATERS CORPORATION+ 892,126
184,228 XEROX CORPORATION<<+ 2,800,266
49,012 ZIMMER HOLDINGS INCORPORATED<<+ 3,313,211
68,375,003
---------------
MEDICAL MANAGEMENT SERVICES - 0.07%
31,714 COVENTRY HEALTH CARE INCORPORATED+ 1,711,922
---------------
MEMBERSHIP ORGANIZATIONS - 0.00%
4,627 TRONOX INC COMMON CLASS B+ 78,606
---------------
METAL MINING - 0.43%
36,407 FREEPORT-MCMORAN COPPER & GOLD INCORPORATED CLASS B 2,176,047
88,381 NEWMONT MINING CORPORATION 4,586,090
40,261 PHELPS DODGE CORPORATION 3,242,218
10,004,355
---------------
MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS - 0.07%
19,859 VULCAN MATERIALS COMPANY 1,720,782
---------------
92
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MISCELLANEOUS MANUFACTURING INDUSTRIES - 2.09%
35,208 HASBRO INCORPORATED $ 742,889
588,715 JOHNSON & JOHNSON 34,863,702
76,899 MATTEL INCORPORATED<< 1,394,179
28,138 TIFFANY & COMPANY<< 1,056,300
398,676 TYCO INTERNATIONAL LIMITED 10,716,411
48,773,481
---------------
MISCELLANEOUS RETAIL - 1.26%
61,030 AMAZON.COM INCORPORATED+<< 2,228,205
93,598 COSTCO WHOLESALE CORPORATION 5,069,268
161,697 CVS CORPORATION 4,829,889
12,185 DILLARDS INCORPORATED CLASS A 317,297
28,954 EXPRESS SCRIPTS INCORPORATED<<+ 2,545,057
58,491 OFFICE DEPOT INCORPORATED+ 2,178,205
144,144 STAPLES INCORPORATED 3,678,555
200,207 WALGREEN COMPANY 8,634,928
29,481,404
---------------
MOTION PICTURES - 1.44%
474,853 NEWS CORPORATION CLASS A 7,887,308
891,222 TIME WARNER INCORPORATED 14,963,618
380,962 WALT DISNEY COMPANY<< 10,625,030
33,475,956
---------------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING - 0.74%
216,039 UNITED PARCEL SERVICE INCORPORATED CLASS B 17,149,176
---------------
NON-DEPOSITORY CREDIT INSTITUTIONS - 2.00%
244,829 AMERICAN EXPRESS COMPANY 12,865,764
59,563 CAPITAL ONE FINANCIAL CORPORATION<< 4,796,013
39,518 CIT GROUP INCORPORATED 2,115,003
119,282 COUNTRYWIDE FINANCIAL CORPORATION<< 4,377,649
191,467 FANNIE MAE 9,841,404
136,691 FREDDIE MAC 8,338,151
82,551 SLM CORPORATION 4,287,699
46,621,683
---------------
OIL & GAS EXTRACTION - 3.36%
45,585 ANADARKO PETROLEUM CORPORATION 4,604,541
65,340 APACHE CORPORATION 4,280,424
64,124 BJ SERVICES COMPANY 2,218,690
74,354 BURLINGTON RESOURCES INCORPORATED 6,833,876
73,908 CHESAPEAKE ENERGY CORPORATION 2,321,450
87,408 DEVON ENERGY CORPORATION 5,346,747
47,980 EOG RESOURCES INCORPORATED 3,454,560
102,120 HALLIBURTON COMPANY 7,456,803
22,945 KERR-MCGEE CORPORATION 2,190,789
31,258 NABORS INDUSTRIES LIMITED+ 2,237,448
93
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
OIL & GAS EXTRACTION (CONTINUED)
27,130 NOBLE CORPORATION<< $ 2,200,243
85,212 OCCIDENTAL PETROLEUM CORPORATION 7,894,892
21,623 ROWAN COMPANIES INCORPORATED<<+ 950,547
116,883 SCHLUMBERGER LIMITED 14,793,881
64,481 TRANSOCEAN INCORPORATED<<+ 5,177,824
68,999 WEATHERFORD INTERNATIONAL LIMITED+ 3,156,704
71,846 XTO ENERGY INCORPORATED 3,130,330
78,249,749
---------------
PAPER & ALLIED PRODUCTS - 0.53%
20,830 BEMIS COMPANY INCORPORATED 657,811
97,443 INTERNATIONAL PAPER COMPANY 3,368,605
91,163 KIMBERLY-CLARK CORPORATION 5,269,221
35,897 MEADWESTVACO CORPORATION 980,347
14,015 OFFICEMAX INCORPORATED 422,833
28,343 PACTIV CORPORATION+ 695,537
21,929 TEMPLE-INLAND INCORPORATED 976,937
12,371,291
---------------
PERSONAL SERVICES - 0.11%
27,253 CINTAS CORPORATION 1,161,523
64,812 H & R BLOCK INCORPORATED 1,403,180
2,564,703
---------------
PETROLEUM REFINING & RELATED INDUSTRIES - 5.84%
15,832 AMERADA HESS CORPORATION 2,254,477
14,097 ASHLAND INCORPORATED 1,002,015
440,371 CHEVRONTEXACO CORPORATION 25,528,307
272,695 CONOCOPHILLIPS<< 17,220,689
1,207,933 EXXON MOBIL CORPORATION 73,514,802
72,560 MARATHON OIL CORPORATION 5,526,895
32,663 MURPHY OIL CORPORATION 1,627,271
26,342 SUNOCO INCORPORATED 2,043,349
123,009 VALERO ENERGY CORPORATION 7,353,478
136,071,283
---------------
PRIMARY METAL INDUSTRIES - 0.51%
172,460 ALCOA INCORPORATED 5,270,378
17,102 ALLEGHENY TECHNOLOGIES INCORPORATED 1,046,300
24,481 ENGELHARD CORPORATION 969,693
30,742 NUCOR CORPORATION 3,221,454
21,528 UNITED STATES STEEL CORPORATION 1,306,319
11,814,144
---------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 0.97%
152,855 CBS CORPORATION CLASS B 3,665,463
11,678 DOW JONES & COMPANY INCORPORATED<< 458,945
16,827 E.W. SCRIPPS COMPANY CLASS A 752,335
94
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
PRINTING, PUBLISHING & ALLIED INDUSTRIES (CONTINUED)
47,095 GANNETT COMPANY INCORPORATED<< $ 2,821,933
13,253 KNIGHT-RIDDER INCORPORATED<< 837,722
72,634 MCGRAW-HILL COMPANIES INCORPORATED 4,185,171
8,282 MEREDITH CORPORATION 462,053
28,721 NEW YORK TIMES COMPANY CLASS A<< 726,929
42,720 RR DONNELLEY & SONS COMPANY 1,397,798
51,791 TRIBUNE COMPANY 1,420,627
152,866 VIACOM INCORPORATED CLASS B+ 5,931,201
22,660,177
---------------
RAILROAD TRANSPORTATION - 0.77%
73,777 BURLINGTON NORTHERN SANTA FE CORPORATION 6,147,837
43,407 CSX CORPORATION<< 2,595,739
81,547 NORFOLK SOUTHERN CORPORATION 4,409,246
52,409 UNION PACIFIC CORPORATION 4,892,380
18,045,202
---------------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS - 0.07%
12,131 COOPER TIRE & RUBBER COMPANY 173,959
16,101 SEALED AIR CORPORATION 931,765
35,009 THE GOODYEAR TIRE & RUBBER COMPANY<<+ 506,930
1,612,654
---------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 2.82%
49,582 AMERIPRISE FINANCIAL INCORPORATED 2,234,165
23,612 BEAR STEARNS COMPANIES INCORPORATED 3,274,984
204,117 CHARLES SCHWAB CORPORATION 3,512,854
82,669 E*TRADE FINANCIAL CORPORATION+ 2,230,410
16,663 FEDERATED INVESTORS INCORPORATED CLASS B 650,690
30,188 FRANKLIN RESOURCES INCORPORATED 2,844,917
86,248 GOLDMAN SACHS GROUP INCORPORATED 13,537,486
53,491 LEHMAN BROTHERS HOLDINGS INCORPORATED 7,731,054
181,656 MERRILL LYNCH & COMPANY INCORPORATED 14,307,226
212,412 MORGAN STANLEY 13,343,722
26,119 T. ROWE PRICE GROUP INCORPORATED 2,042,767
65,710,275
---------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 0.35%
305,820 CORNING INCORPORATED+ 8,229,616
---------------
TOBACCO PRODUCTS - 1.39%
412,833 ALTRIA GROUP INCORPORATED 29,253,346
16,921 REYNOLDS AMERICAN INCORPORATED<< 1,785,165
32,356 UST INCORPORATED 1,346,010
32,384,521
---------------
95
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
TRANSPORTATION BY AIR - 0.40%
60,112 FEDEX CORPORATION $ 6,789,050
140,074 SOUTHWEST AIRLINES COMPANY 2,519,931
9,308,981
---------------
TRANSPORTATION EQUIPMENT - 2.90%
158,329 BOEING COMPANY 12,338,579
18,796 BRUNSWICK CORPORATION 730,413
368,757 FORD MOTOR COMPANY<< 2,935,306
79,182 GENERAL DYNAMICS CORPORATION 5,066,065
111,866 GENERAL MOTORS CORPORATION<< 2,379,390
34,205 GENUINE PARTS COMPANY<< 1,499,205
24,412 GOODRICH CORPORATION 1,064,607
53,911 HARLEY-DAVIDSON INCORPORATED<< 2,796,903
164,308 HONEYWELL INTERNATIONAL INCORPORATED 7,027,453
36,538 ITT INDUSTRIES INCORPORATED 2,054,166
38,410 JOHNSON CONTROLS INCORPORATED 2,916,471
70,871 LOCKHEED MARTIN CORPORATION 5,324,538
12,204 NAVISTAR INTERNATIONAL CORPORATION+ 336,586
69,375 NORTHROP GRUMMAN CORPORATION 4,737,619
33,488 PACCAR INCORPORATED 2,360,234
26,185 TEXTRON INCORPORATED 2,445,417
200,868 UNITED TECHNOLOGIES CORPORATION 11,644,318
67,657,270
---------------
TRANSPORTATION SERVICES - 0.03%
26,081 SABRE HOLDINGS CORPORATION 613,686
---------------
WATER TRANSPORTATION - 0.17%
85,887 CARNIVAL CORPORATION<< 4,068,467
---------------
WHOLESALE TRADE NON-DURABLE GOODS - 1.08%
41,347 AMERISOURCEBERGEN CORPORATION 1,995,820
16,450 BROWN-FORMAN CORPORATION CLASS B 1,266,157
83,468 CARDINAL HEALTH INCORPORATED 6,220,035
26,842 DEAN FOODS COMPANY+ 1,042,275
60,556 MCKESSON CORPORATION 3,156,784
60,216 MEDCO HEALTH SOLUTIONS INCORPORATED+ 3,445,560
37,439 NIKE INCORPORATED CLASS B 3,186,059
26,939 SUPERVALU INCORPORATED<< 830,260
122,510 SYSCO CORPORATION 3,926,445
25,069,395
---------------
WHOLESALE TRADE DURABLE GOODS - 0.09%
27,425 PATTERSON COMPANIES INCORPORATED+ 965,360
15,124 W.W. GRAINGER INCORPORATED 1,139,593
2,104,953
---------------
TOTAL COMMON STOCKS (COST $1,832,740,086) 2,326,477,440
---------------
96
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
RIGHTS - 0.00%
32,300 SEAGATE TECHNOLOGY RIGHTS(A) $ 0
TOTAL RIGHTS (COST $0) 0
---------------
COLLATERAL FOR SECURITIES LENDING - 10.67%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.01%
85,895 SCUDDER DAILY ASSETS MONEY MARKET FUND 85,895
65,084 SHORT TERM INVESTMENT COMPANY MONEY MARKET FUND 65,084
150,979
---------------
PRINCIPAL INTEREST RATE MATURITY DATE
COLLATERAL INVESTED IN OTHER ASSETS - 10.66%
$ 900,300 AMERICAN GENERAL FINANCE CORPORATION+/- 4.78% 04/13/2007 900,669
374,825 APRECO LLC 4.62 05/15/2006 372,730
820,373 APRECO LLC 4.94 06/15/2006 812,293
500,167 ASPEN FUNDING CORPORATION 4.92 04/03/2006 500,167
5,001,667 ATLAS CAPITAL FUNDING CORPORATION SERIES MTN+/- 4.62 11/03/2006 5,001,667
563,088 ATLAS CAPITAL FUNDING LIMITED 4.80 04/17/2006 562,046
1,200,400 ATLAS CAPITAL FUNDING LIMITED 4.62 05/15/2006 1,193,690
2,500,833 ATLAS CAPITAL FUNDING LIMITED+/- 4.80 10/20/2006 2,500,833
2,500,833 ATLAS CAPITAL FUNDING LIMITED+/- 4.80 12/22/2006 2,500,833
400,133 ATOMIUM FUNDING CORPORATION 4.53 04/12/2006 399,657
347,016 BETA FINANCE INCORPORATED SERIES MTN+/- 4.88 06/02/2006 347,061
49,816,601 BNP PARIBAS REPURCHASE AGREEMENT
(MATURITY VALUE $ 49,837,067) 4.93 04/03/2006 49,816,601
1,484,895 BUCKINGHAM CDO LLC++ 4.60 04/06/2006 1,484,301
4,868,222 BUCKINGHAM CDO LLC 4.82 04/21/2006 4,856,636
2,500,833 BUCKINGHAM CDO LLC 4.82 04/25/2006 2,493,556
2,600,867 BUCKINGHAM II CDO LLC++ 4.83 04/25/2006 2,593,298
10,003,334 BUCKINGHAM II CDO LLC 4.83 04/26/2006 9,972,924
3,001,000 CAIRN HIGH GRADE FUNDING I 4.59 04/06/2006 2,999,800
240,080 CAIRN HIGH GRADE FUNDING I 4.71 04/26/2006 239,350
4,201,400 CAIRN HIGH GRADE FUNDING I 4.83 04/27/2006 4,188,082
2,500,833 CAIRN HIGH GRADE FUNDING I++ 4.83 05/02/2006 2,491,255
1,300,433 CAIRN HIGH GRADE FUNDING I 4.77 05/10/2006 1,294,035
5,030,176 CEDAR SPRINGS CAPITAL COMPANY LLC 4.78 04/05/2006 5,028,869
1,380,460 CEDAR SPRINGS CAPITAL COMPANY LLC 4.69 05/08/2006 1,374,027
444,848 CEDAR SPRINGS CAPITAL COMPANY LLC 4.70 05/10/2006 442,660
2,000,667 CEDAR SPRINGS CAPITAL COMPANY LLC 4.72 05/12/2006 1,990,283
1,000,333 CEDAR SPRINGS CAPITAL COMPANY LLC 4.90 06/07/2006 991,560
2,662,387 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.92 06/12/2006 2,637,228
5,501,833 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.72 04/12/2006 5,501,834
1,000,333 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.75 04/18/2007 1,000,333
3,521,173 CONSOLIDATED EDISON INCORPORATED 4.90 04/03/2006 3,521,173
250,083 CORPORATE ASSET SECURITIZATION AUSTRALIA LIMITED 4.81 04/13/2006 249,753
3,101,033 CREDIT SUISSE FIRST BOSTON NEW YORK SERIES YCD1+/- 4.92 05/04/2006 3,099,483
2,500,833 CULLINAN FINANCE CORPORATION+/- 4.71 11/15/2006 2,500,733
2,000,667 DEER VALLEY FUNDING LLC++ 4.51 04/10/2006 1,998,806
97
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 2,556,352 DEER VALLEY FUNDING LLC 4.81% 04/17/2006 $ 2,551,623
6,094,731 DEER VALLEY FUNDING LLC 4.83 04/19/2006 6,081,810
1,300,433 DEER VALLEY FUNDING LLC 4.80 05/03/2006 1,295,271
5,001,667 DEUTSCHE BANK REPURCHASE AGREEMENT
(MATURITY VALUE $ 5,003,684) 4.84 04/03/2006 5,001,667
4,790,496 EIFFEL FUNDING LLC 4.91 04/03/2006 4,790,496
300,100 EIFFEL FUNDING LLC 4.78 04/17/2006 299,545
3,603,301 EUREKA SECURITIZATION INCORPORATED 4.88 05/16/2006 3,582,690
82,427 GALLEON CAPITAL LLC 4.65 04/03/2006 82,428
150,050 GEMINI SECURITIZATION INCORPORATED 4.90 05/24/2006 149,028
2,400,800 GOLDMAN SACHS GROUP INCORPORATED+/- 4.97 06/30/2006 2,400,800
7,167,389 HARRIER FINANCE FUNDING LLC 4.62 04/03/2006 7,167,389
1,600,533 ING USA ANNUITY & LIFE INSURANCE+/- 5.03 06/06/2006 1,600,533
20,087,670 JP MORGAN CHASE SECURITIES CORPORATION REPURCHASE AGREEMENT
(MATURITY VALUE $ 20,095,923) 4.93 04/03/2006 20,087,670
130,043 K2 (USA) LLC 4.63 05/02/2006 129,545
462,654 K2 (USA) LLC SERIES MTN+/- 4.87 07/24/2006 462,770
1,500,500 KAUPTHING BANK HF SERIES MTN+/-++ 4.84 03/20/2007 1,500,200
200,067 KLIO II FUNDING CORPORATION 4.58 04/05/2006 200,015
241,080 KLIO III FUNDING CORPORATION 4.69 04/19/2006 240,569
100,033 LEXINGTON PARKER CAPITAL CORPORATION 4.62 05/02/2006 99,650
379,727 LEXINGTON PARKER CAPITAL CORPORATION 4.69 05/10/2006 377,858
2,500,833 LIBERTY LIGHT US CAPITAL SERIES MTN+/- 4.81 05/26/2006 2,500,983
200,067 LINKS FINANCE LLC SERIES MTN1+/- 4.68 09/12/2006 200,069
600,200 LIQUID FUNDING LIMITED+/- 4.94 04/24/2006 600,224
2,300,767 LIQUID FUNDING LIMITED+/- 4.71 08/14/2006 2,300,767
1,500,500 LIQUID FUNDING LIMITED+/- 4.61 12/01/2006 1,500,500
600,200 LIQUID FUNDING LIMITED SERIES MTN+/- 4.83 02/20/2007 600,170
1,000,333 MBIA GLOBAL FUNDING LLC+/- 4.78 02/20/2007 1,000,273
5,026,675 MERRILL LYNCH & COMPANY SERIES MTN+/- 4.80 10/27/2006 5,030,445
3,001,000 MORGAN STANLEY+/- 4.94 10/10/2006 3,001,000
462,654 MORGAN STANLEY SERIES EXL+/- 4.78 08/13/2010 462,779
1,722,474 MORTGAGE INTEREST NET TRUST 4.68 04/03/2006 1,722,474
2,260,753 MORTGAGE INTEREST NET TRUST 4.78 05/03/2006 2,251,778
100,033 NATIONWIDE BUILDING SOC+/- 4.74 07/21/2006 100,081
2,206,035 NEWPORT FUNDING CORPORATION 4.92 04/03/2006 2,206,035
3,028,909 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 4.78 04/03/2006 3,028,909
3,501,167 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.68 04/04/2006 3,500,712
445,949 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.93 06/26/2006 440,892
190,063 NORDEA NORTH AMERICA INCORPORATED 4.89 05/15/2006 189,001
5,276,758 NORTHERN ROCK PLC+/- 4.63 04/21/2006 5,276,020
395,432 NORTHERN ROCK PLC 4.69 04/24/2006 394,333
5,001,667 NORTHERN ROCK PLC+/- 4.66 02/05/2007 5,001,717
404,635 RACERS TRUST 2004-6-MM+/- 4.79 05/22/2006 404,692
100,033 SCALDIS CAPITAL LIMITED 4.93 06/15/2006 99,048
400,133 TANGO FINANCE CORPORATION 4.95 06/21/2006 395,868
1,156,685 TANGO FINANCE CORPORATION SERIES MTN+/- 4.87 10/25/2006 1,157,067
98
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 578,293 TRAVELERS INSURANCE COMPANY+/- 4.77% 02/09/2007 $ 578,281
2,500,833 UNICREDITO ITALIANO SERIES LIB+/- 4.70 03/09/2007 2,500,683
2,500,833 UNICREDITO ITALIANO SERIES YCD+/- 4.47 04/03/2006 2,500,833
3,801,267 US BANK NA SERIES BKNT+/- 4.66 07/28/2006 3,801,381
1,000,333 WHISTLEJACKET CAPITAL LIMITED+/- 4.65 06/09/2006 1,000,333
100,033 WHITE PINE FINANCE LLC 4.64 04/18/2006 99,835
500,167 WHITE PINE FINANCE LLC 4.82 05/05/2006 498,036
408,336 WHITE PINE FINANCE LLC 4.84 05/25/2006 405,498
307,302 WHITE PINE FINANCE LLC 4.93 06/20/2006 304,067
2,639,780 WHITE PINE FINANCE LLC 4.93 06/22/2006 2,611,270
2,500,833 WHITE PINE FINANCE LLC+/- 4.70 07/17/2006 2,500,833
2,400,800 WHITE PINE FINANCE LLC SERIES MTN1+/- 4.81 06/12/2006 2,401,016
248,527,686
---------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $248,678,665) 248,678,665
---------------
SHORT-TERM INVESTMENTS - 0.96%
SHARES
MUTUAL FUND - 0.90%
20,878,671 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~&& 20,878,671
---------------
PRINCIPAL
US TREASURY BILLS - 0.06%
$ 95,000 US TREASURY BILL^# 4.16 05/11/2006 94,560
1,385,000 US TREASURY BILL^# 4.48 08/10/2006 1,362,507
1,457,067
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $22,336,023) 22,335,738
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $2,103,754,774)* 111.42% $ 2,597,491,843
OTHER ASSETS AND LIABILITIES, NET (11.42) (266,225,840)
------ ---------------
TOTAL NET ASSETS 100.00% $ 2,331,266,003
====== ===============
<< ALL OR A PORTION OF THIS SECURITY IS ON LOAN. (SEE NOTE 2)
+ NON-INCOME EARNING SECURITIES.
(A) SECURITY FAIR VALUED IN ACCORDANCE WITH THE PROCEDURES APPROVED BY THE
BOARD OF TRUSTEES.
+/- VARIABLE RATE INVESTMENTS.
++ SECURITIES THAT MAY BE RESOLD TO "QUALIFIED INSTITUTIONAL BUYERS" UNDER
RULE 144A OR SECURITIES OFFERED PURSUANT TO SECTION 4 (2) OF THE
SECURITIES ACT OF 1933, AS AMENDED.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
&& SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $33,742,234.
^ ZERO COUPON BOND. INTEREST RATE PRESENTED IS YIELD TO MATURITY.
# SECURITY PLEDGED AS COLLATERAL FOR FUTURES TRANSACTIONS.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
99
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL CORE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 95.77%
AUSTRALIA - 3.37%
61,000 ORICA LIMITED (MISCELLANEOUS MANUFACTURING INDUSTRIES) $ 1,012,706
98,557 PUBLISHING & BROADCASTING LIMITED (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 1,220,637
27,202 RIO TINTO LIMITED (METAL MINING) 1,535,520
121,000 WESTFIELD GROUP (PROPERTIES) 1,481,271
11,527 WOODSIDE PETROLEUM LIMITED (OIL & GAS EXTRACTION) 375,310
5,625,444
---------------
BELGIUM - 1.11%
51,800 FORTIS (DEPOSITORY INSTITUTIONS) 1,850,583
---------------
CHINA - 0.50%
968,000 YANZHOU COAL MINING COMPANY LIMITED (RUBBER & MISCELLANEOUS PLASTICS PRODUCTS) 842,103
---------------
DENMARK - 0.82%
36,900 DANSKE BANK A/S (DEPOSITORY INSTITUTIONS) 1,369,263
---------------
FRANCE - 13.69%
106,700 ALCATEL SA (COMMUNICATIONS) 1,651,227
19,100 ALSTOM RGPT (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT)+ 1,601,735
60,700 AXA SA (INSURANCE CARRIERS) 2,130,289
28,100 BOUYGUES SA (ENGINEERING CONSTRUCTION) 1,493,232
34,574 CAP GEMINI SA (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT)+ 1,883,767
25,600 CARREFOUR SA (FOOD STORES)+ 1,361,933
13,600 LAFARGE SA (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 1,540,997
31,100 SANOFI-AVENTIS SA (CHEMICALS & ALLIED PRODUCTS) 2,958,567
45,000 SUEZ SA (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 1,773,431
15,676 TECHNIP SA (OIL & GAS EXTRACTION) 1,060,986
13,850 TOTAL SA (PETROLEUM REFINING & RELATED INDUSTRIES) 3,653,924
51,300 VIVENDI UNIVERSAL SA (COMMUNICATIONS) 1,761,848
22,871,936
---------------
GERMANY - 6.97%
10,900 ALLIANZ AG (INSURANCE CARRIERS)+ 1,819,969
17,700 BAYERISCHE MOTOREN WERKE AG (AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS) 974,896
7,103 CELESIO AG (WHOLESALE TRADE DURABLE GOODS) 672,185
25,221 COMMERZBANK AG (DEPOSITORY INSTITUTIONS)+ 1,004,952
20,400 E.ON AG (ELECTRIC, GAS & SANITARY SERVICES) 2,244,994
10,300 FRESENIUS MEDICAL CARE AG (HEALTH SERVICES) 1,230,737
44,700 METRO AG (FOOD STORES) 2,291,933
6,500 SAP AG (BUSINESS SERVICES) 1,410,074
11,649,740
---------------
GREECE - 0.89%
40,303 ALPHA BANK AE (DEPOSITORY INSTITUTIONS) 1,488,688
---------------
HONG KONG - 4.37%
150,000 CHEUNG KONG HOLDINGS LIMITED (REAL ESTATE) 1,590,058
253,000 CHINA MOBILE (HONG KONG) LIMITED (COMMUNICATIONS) 1,328,721
100
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INTERNATIONAL CORE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
HONG KONG (CONTINUED)
1,361,000 CHINA PETROLEUM & CHEMICAL CORPORATION (SINOPEC) (OIL COMPANIES) $ 789,326
2,479,000 GUANGDONG INVESTMENT LIMITED (BUSINESS SERVICES) 1,110,241
159,940 SUN HUNG KAI PROPERTIES LIMITED (REAL ESTATE) 1,624,311
150,000 TELEVISION BROADCASTS LIMITED (MOTION PICTURES) 850,609
7,293,266
---------------
HUNGARY - 0.31%
7,560 OTP BANK GDR (DEPOSITORY INSTITUTIONS) 525,420
---------------
ITALY - 3.29%
94,342 ENI SPA (PETROLEUM REFINING & RELATED INDUSTRIES) 2,684,445
389,800 UNICREDITO ITALIANO SPA (DEPOSITORY INSTITUTIONS) 2,817,757
5,502,202
---------------
JAPAN - 23.09%
171,500 AEON COMPANY LIMITED (MISCELLANEOUS RETAIL) 4,160,004
21,000 DAIWA HOUSE INDUSTRY COMPANY LIMITED (BUILDING CONSTRUCTION-GENERAL CONTRACTORS &
OPERATIVE BUILDERS) 363,976
138,000 KANEKA CORPORATION (CHEMICALS & ALLIED PRODUCTS) 1,654,359
64,000 KAO CORPORATION (CHEMICALS & ALLIED PRODUCTS) 1,685,642
5,280 KEYENCE CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT) 1,372,710
146 MILLEA HOLDINGS INCORPORATED (INSURANCE CARRIERS) 2,890,229
124,000 MITSUI SUMITOMO INSURANCE COMPANY LIMITED (INSURANCE CARRIERS) 1,686,695
25,700 MURATA MANUFACTURING COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT
& COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 1,740,263
101,000 NIKKO CORDIAL CORPORATION (FINANCIAL) 1,673,322
286,000 NIPPON OIL CORPORATION (OIL & GAS EXTRACTION) 2,242,804
113,700 NOMURA HOLDINGS INCORPORATED (SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES) 2,535,790
1,038 NTT DOCOMO INCORPORATED (COMMUNICATIONS) 1,534,512
70,300 OMRON CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT) 2,018,811
38,000 SECOM COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT) 1,943,585
171,000 SEKISUI HOUSE LIMITED (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 2,551,198
95,000 SHARP CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS,
EXCEPT COMPUTER EQUIPMENT) S 1,682,880
359,000 SHINSEI BANK LIMITED (DEPOSITORY INSTITUTIONS) 2,513,305
373,000 SUMITOMO TRUST & BANKING COMPANY LIMITED (DEPOSITORY INSTITUTIONS) 4,316,279
38,566,364
---------------
NETHERLANDS - 4.11%
20,273 AKZO NOBEL NV (CHEMICALS & ALLIED PRODUCTS) 1,075,832
80,300 ASML HOLDING NV (SEMICONDUCTOR EQUIPMENT MANUFACTURING & RELATED)+ 1,639,709
57,300 ING GROEP NV (FINANCIAL SERVICES) 2,263,724
75,700 WOLTERS KLUWER NV (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 1,887,959
6,867,224
---------------
NORWAY - 1.60%
2,013 ORKLA ASA (FOOD & KINDRED PRODUCTS) 99,827
88,900 STATOIL ASA (PETROLEUM REFINING & RELATED INDUSTRIES) 2,563,797
2,663,624
---------------
101
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL CORE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
RUSSIA - 1.72%
20,400 LUKOIL ADR (OIL & GAS EXTRACTION)+ $ 1,701,360
35,600 MOBILE TELESYSTEMS ADR (COMMUNICATIONS) 1,178,360
2,879,720
---------------
SINGAPORE - 0.60%
103,000 UNITED OVERSEAS BANK LIMITED (DEPOSITORY INSTITUTIONS) 994,399
---------------
SOUTH KOREA - 0.47%
1,520 SAMSUNG ELECTRONICS COMPANY LIMITED - PREFERRED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT &
COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 778,304
---------------
SPAIN - 1.77%
89,900 BANCO BILBAO VIZCAYA ARGENTARIA SA (DEPOSITORY INSTITUTIONS) 1,876,049
53,179 INDRA SISTEMAS SA (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 1,081,393
2,957,442
---------------
SWEDEN - 0.82%
71,000 SECURITAS AB (BUSINESS SERVICES) 1,367,401
---------------
SWITZERLAND - 6.45%
64,800 NOVARTIS AG (CHEMICALS & ALLIED PRODUCTS) 3,603,728
23,900 ROCHE HOLDING AG (HEALTH SERVICES) 3,558,463
15,500 UBS AG (FINANCIAL SERVICES) 1,702,604
8,100 ZURICH FINANCIAL SERVICES AG (FINANCIAL SERVICES)+ 1,902,830
10,767,625
---------------
THAILAND - 1.58%
660,000 ADVANCED INFORMATION SERVICE PUBLIC COMPANY LIMITED (FOREIGN REGISTERED) (COMMUNICATIONS) 1,553,441
387,500 BANGKOK BANK PUBLIC COMPANY LIMITED (DEPOSITORY INSTITUTIONS) 1,086,495
2,639,936
---------------
UNITED KINGDOM - 18.24%
25,301 ASTRAZENECA PLC (CHEMICALS & ALLIED PRODUCTS) 1,274,787
129,000 AVIVA PLC (INSURANCE CARRIERS) 1,791,884
197,000 BAE SYSTEMS PLC (TRANSPORTATION BY AIR) 1,440,098
217,500 BARCLAYS PLC (DEPOSITORY INSTITUTIONS) 2,545,064
109,200 EMAP PLC (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 1,671,477
196,600 GLAXOSMITHKLINE PLC (CHEMICALS & ALLIED PRODUCTS) 5,140,695
173,000 HSBC HOLDINGS PLC (DEPOSITORY INSTITUTIONS) 2,900,516
856,400 LEGAL & GENERAL GROUP PLC (INSURANCE CARRIERS) 2,112,841
163,519 ROLLS ROYCE GROUP PLC (AEROSPACE, DEFENSE) 1,301,174
8,797,322 ROLLS ROYCE GROUP PLC CLASS B (AEROSPACE, DEFENSE) 15,590
100,600 ROYAL DUTCH SHELL PLC CLASS A (OIL & GAS EXTRACTION) 3,142,603
200,045 SCOTTISH & NEWCASTLE PLC (FOOD & KINDRED PRODUCTS) 1,807,311
66,100 STANDARD CHARTERED PLC (DEPOSITORY INSTITUTIONS) 1,644,547
1,759,000 VODAFONE GROUP PLC (COMMUNICATIONS) 3,682,601
30,471,188
---------------
TOTAL COMMON STOCKS (COST $128,620,363) 159,971,872
---------------
102
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INTERNATIONAL CORE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COLLATERAL FOR SECURITIES LENDING - 1.91%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 1.91%
3,191,264 BANK OF NEW YORK INSTITUTIONAL CASH RESERVE $ 3,191,264
---------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $3,191,264) 3,191,264
---------------
SHORT-TERM INVESTMENTS - 2.50%
4,179,151 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~++ 4,179,151
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $4,179,151) 4,179,151
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $135,990,778)* 100.18% $ 167,342,287
OTHER ASSETS AND LIABILITIES, NET (0.18) (302,110)
------ ---------------
TOTAL NET ASSETS 100.00% $ 167,040,177
====== ===============
+ NON-INCOME EARNING SECURITIES.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
++ SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $4,179,151.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
103
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 97.89%
AUSTRIA - 0.64%
28,805 WIENER STAEDTISCHE ALLGEMEINE VERSICHERUNG AG (INSURANCE CARRIERS) $ 1,780,284
---------------
BELGIUM - 3.74%
211,134 FORTIS NA (DEPOSITORY INSTITUTIONS) 7,532,641
62,229 INBEV NA (FOOD & KINDRED PRODUCTS) 2,918,469
10,451,110
---------------
BRAZIL - 0.41%
266,881 VIVO PARTICIPACOES SA ADR (COMMUNICATIONS)+ 1,142,251
---------------
CANADA - 1.98%
91,400 ENCANA CORPORATION (OIL & GAS EXTRACTION) 4,265,359
14,900 RESEARCH IN MOTION LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT)+ 1,264,712
5,530,071
---------------
DENMARK - 0.17%
19,500 VESTAS WIND SYSTEMS A/S (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS:
PHOTOGRAPHIC, MEDICAL & OPTICAL)+ 486,091
---------------
FINLAND - 0.86%
95,400 FORTUM OYJ (ELECTRIC, GAS & SANITARY SERVICES) 2,407,024
---------------
FRANCE - 7.12%
16,805 ACCOR SA (METAL MINING) 968,775
17,900 ALCATEL SA (COMMUNICATIONS) 277,010
3,339 ALSTOM RGPT (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT)+ 280,010
82,594 AXA SA (INSURANCE CARRIERS) 2,898,667
77,556 CARREFOUR SA (FOOD STORES)+ 4,126,019
8,585 ELECTRICITE DE FRANCE (ELECTRIC, GAS & SANITARY SERVICES)+ 486,897
29,797 LVMH MOET HENNESSY LOUIS VUITTON SA (CONSUMER SERVICES) 2,921,275
76,950 PAGESJAUNES SA (PRINTING, PUBLISHING & ALLIED INDUSTRIES)+ 2,161,590
24,168 PPR SA (APPAREL & ACCESSORY STORES) 2,918,565
58,335 SAFRAN SA (NATIONAL SECURITY & INTERNATIONAL AFFAIRS) 1,478,912
14,725 SANOFI-AVENTIS SA (CHEMICALS & ALLIED PRODUCTS) 1,400,800
19,918,520
---------------
GERMANY - 11.97%
29,361 ALLIANZ AG (INSURANCE CARRIERS)+ 4,902,395
41,081 BAYERISCHE MOTOREN WERKE AG (AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS) 2,262,696
92,500 COMMERZBANK AG (DEPOSITORY INSTITUTIONS)+ 3,685,741
63,267 DEUTSCHE LUFTHANSA AG (TRANSPORTATION BY AIR) 1,132,424
119,297 DEUTSCHE POST AG (TRANSPORTATION SERVICES)+ 2,991,172
17,762 DEUTSCHE TELEKOM AG (COMMUNICATIONS) 299,628
36,519 E.ON AG (ELECTRIC, GAS & SANITARY SERVICES) 4,018,869
22,918 HEIDELBERGER DRUCKMASCHINEN AG (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 1,010,950
82,395 PROSIEBENSAT.1 MEDIA AG (COMMUNICATIONS)+ 2,146,795
50,264 RWE AG (ELECTRIC, GAS & SANITARY SERVICES) 4,374,755
104
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INTERNATIONAL GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
GERMANY (CONTINUED)
14,459 SAP AG (BUSINESS SERVICES) $ 3,136,656
37,577 SIEMENS AG (WHOLESALE TRADE NON-DURABLE GOODS) 3,508,243
33,470,324
---------------
HONG KONG - 4.28%
303,800 CHINA MERCHANTS HOLDINGS INTERNATIONAL COMPANY LIMITED (MOTOR FREIGHT
TRANSPORTATION & WAREHOUSING) 877,044
1,140,900 CHINA MOBILE (HONG KONG) LIMITED (COMMUNICATIONS) 5,991,852
51,200 ESPRIT HOLDINGS LIMITED (WHOLESALE TRADE NON-DURABLE GOODS) 398,559
687,000 MTR CORPORATION (RAILROAD TRANSPORTATION) 1,549,461
42,400 NWS HOLDINGS LIMITED (BUSINESS SERVICES) 78,689
301,700 SUN HUNG KAI PROPERTIES LIMITED (REAL ESTATE) 3,063,990
11,959,595
---------------
ITALY - 4.73%
4,600 CAPITALIA SPA (DEPOSITORY INSTITUTIONS) 38,241
94,421 ENI SPA (PETROLEUM REFINING & RELATED INDUSTRIES) 2,686,693
267,611 SAIPEM SPA (OIL & GAS EXTRACTION) 6,191,005
595,621 UNICREDITO ITALIANO SPA (DEPOSITORY INSTITUTIONS) 4,305,581
13,221,520
---------------
JAPAN - 24.20%
19,250 AIFUL CORPORATION (NON-DEPOSITORY CREDIT INSTITUTIONS) 1,274,065
96,000 BRIDGESTONE CORPORATION (AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS) 2,002,379
152,300 CHUGAI PHARMACEUTICAL COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 2,762,621
182,300 CREDIT SAISON COMPANY LIMITED (MISCELLANEOUS RETAIL) 10,083,033
780 JAPAN TOBACCO INCORPORATED (TOBACCO PRODUCTS) 2,743,585
3,850 JUPITER TELECOMMUNICATIONS COMPANY LIMITED (COMMUNICATIONS)+ 2,721,495
9,020 KEYENCE CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS,
EXCEPT COMPUTER EQUIPMENT) 2,345,047
142 MILLEA HOLDINGS INCORPORATED (INSURANCE CARRIERS) 2,811,045
113,000 MITSUBISHI ESTATE COMPANY LIMITED (REAL ESTATE) 2,678,590
269 MITSUBISHI UFJ FINANCIAL GROUP INCORPORATED (DEPOSITORY INSTITUTIONS) 4,113,849
142,400 MITSUI & COMPANY LIMITED (WHOLESALE TRADE DURABLE GOODS) 2,059,174
99,000 MITSUI FUDOSAN COMPANY LIMITED (REAL ESTATE) 2,275,234
876 MIZUHO FINANCIAL GROUP INCORPORATED (BANKING) 7,167,273
352 NTT DATA CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS,
EXCEPT COMPUTER EQUIPMENT) 1,692,710
24,800 ORIX CORPORATION (MISCELLANEOUS RETAIL) 7,722,345
180,300 SEGA SAMMY HOLDINGS INCORPORATED (AMUSEMENT & RECREATION SERVICES) 7,322,294
15,600 SMC CORPORATION (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 2,430,790
51 SUMITOMO MITSUI FINANCIAL GROUP INCORPORATED (DEPOSITORY INSTITUTIONS) 563,297
604,800 TAISEI CORPORATION (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 2,898,107
67,666,933
---------------
LUXEMBOURG - 1.57%
14,807 RTI GROUP (COMMUNICATIONS) 1,301,835
196,000 STOLT OFFSHORE SA (ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES)+ 3,080,444
4,382,279
---------------
105
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MEXICO - 2.78%
240,400 GRUPO TELEVISA SA ADR (COMMUNICATIONS) $ 4,783,960
1,121,800 WALMART DE MEXICO SA DE CV (GENERAL MERCHANDISE STORES) 3,005,075
7,789,035
---------------
NETHERLANDS - 3.51%
226,851 ASML HOLDING NV (SEMICONDUCTOR EQUIPMENT MANUFACTURING & RELATED)+ 4,632,249
36,400 ASML HOLDING NV NEW YORK REGISTERED SHARES (SEMICONDUCTOR EQUIPMENT
MANUFACTURING & RELATED)+ 741,468
99,346 ING GROEP NV (FINANCIAL SERVICES) 3,924,816
66,178 KONINKLIJKE AHOLD NV (FOOD STORES)+ 520,487
9,819,020
---------------
NORWAY - 0.77%
156,200 SEADRILL LIMITED (PETROLEUM REFINING & RELATED INDUSTRIES)+ 2,145,081
---------------
PORTUGAL - 0.77%
676,725 BANCO COMERCIAL PORTUGUES SA (DEPOSITORY INSTITUTIONS) 2,156,847
---------------
RUSSIA - 3.45%
28,902 AFK SISTEMA GDR (BUSINESS SERVICES)+ 705,209
90,100 LUKOIL ADR (OIL & GAS EXTRACTION) 7,496,320
21,266 RAO UNIFIED ENERGY SYSTEM GDR (ELECTRIC, GAS & SANITARY SERVICES) 1,452,468
9,653,997
---------------
SINGAPORE - 2.52%
362,800 KEPPEL CORPORATION LIMITED (BUSINESS SERVICES) 3,098,456
457,000 SINGAPORE AIRLINES LIMITED (TRANSPORTATION SERVICES) 3,959,526
7,057,982
---------------
SOUTH KOREA - 4.73%
60,228 HANA FINANCIAL GROUP INCORPORATED (DEPOSITORY INSTITUTIONS)+ 2,851,470
74,680 KOOKMIN BANK (FINANCIAL SERVICES)+ 6,448,798
87,630 SHINHAN FINANCIAL GROUP COMPANY LIMITED (FINANCIAL SERVICES) 3,923,327
13,223,595
---------------
SPAIN - 1.17%
56,780 INDUSTRIA DE DISENO TEXTIL SA (APPAREL & ACCESSORY STORES) 2,191,574
58,926 PROMOTORA DE INFORMACIONES SA (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 1,089,000
3,280,574
---------------
SWITZERLAND - 10.78%
46,578 ADECCO SA (BUSINESS SERVICES) 2,602,851
19,596 NESTLE SA (FOOD & KINDRED PRODUCTS) 5,817,245
3,187 NOBEL BIOCARE HOLDING AG (APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS
& SIMILAR MATERIALS)+ 709,567
51,295 NOVARTIS AG (CHEMICALS & ALLIED PRODUCTS) 2,852,673
28,806 ROCHE HOLDING AG (HEALTH SERVICES) 4,288,915
55,612 SWISS REINSURANCE (INSURANCE CARRIERS) 3,886,207
677 SYNTHES INCORPORATED (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS:
PHOTOGRAPHIC, MEDICAL & OPTICAL)+ 74,262
90,319 UBS AG (FINANCIAL SERVICES) 9,921,130
30,152,850
---------------
106
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INTERNATIONAL GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
UNITED KINGDOM - 5.72%
171,511 BARCLAYS PLC (DEPOSITORY INSTITUTIONS) $ 2,006,926
232,973 CADBURY SCHWEPPES PLC (FOOD & KINDRED PRODUCTS) 2,315,279
42,332 CARNIVAL PLC (WATER TRANSPORTATION) 2,081,407
223,771 CENTRICA PLC (ELECTRIC, GAS & SANITARY SERVICES)+ 1,094,420
1,146,875 KINGFISHER PLC (BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS) 4,772,253
43,942 SMITH & NEPHEW PLC (CHEMICALS & ALLIED PRODUCTS) 390,124
792,741 WILLIAM MORRISON SUPERMARKETS PLC (FOOD & KINDRED PRODUCTS) 2,616,898
60,500 WPP GROUP PLC (BUSINESS SERVICES)+ 725,806
16,003,113
---------------
USA - 0.02%
2,400 TIM HORTONS INCORPORATED (EATING & DRINKING PLACES)+ 63,720
---------------
TOTAL COMMON STOCKS (COST $219,203,893) 273,761,816
---------------
COLLATERAL FOR SECURITIES LENDING - 2.46%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 2.46%
6,879,725 BANK OF NEW YORK INSTITUTIONAL CASH RESERVE 6,879,725
---------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $6,879,725) 6,879,725
---------------
SHORT-TERM INVESTMENTS - 2.26%
6,315,090 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~++ 6,315,090
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $6,315,090) 6,315,090
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $232,398,708)* 102.61% $ 286,956,631
OTHER ASSETS AND LIABILITIES, NET (2.61) (7,291,452)
------ ---------------
TOTAL NET ASSETS 100.00% $ 279,665,179
====== ===============
+ NON-INCOME EARNING SECURITIES.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
++ SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $6,315,090.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
107
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 97.25%
AUSTRALIA - 4.99%
4,196 ALINTA LIMITED (ELECTRIC UTILITIES) $ 32,983
15,329 ALUMINA LIMITED (METAL MINING) 81,318
13,245 AMCOR LIMITED (RUBBER & MISCELLANEOUS PLASTICS PRODUCTS) 70,168
26,347 AMP LIMITED (INSURANCE CARRIERS) 163,721
2,290 ANSELL LIMITED (RUBBER & MISCELLANEOUS PLASTICS PRODUCTS) 19,017
2,926 APN NEWS & MEDIA LIMITED (COMMUNICATIONS) 9,908
5,215 ARISTOCRAT LEISURE LIMITED (AMUSEMENT & RECREATION SERVICES) 51,447
26,452 AUSTRALIA & NEW ZEALAND BANKING GROUP LIMITED (DEPOSITORY INSTITUTIONS) 501,831
6,940 AUSTRALIAN GAS LIGHT COMPANY LIMITED (ELECTRIC, GAS & SANITARY SERVICES) 92,064
1,466 AUSTRALIAN STOCK EXCHANGE LIMITED (BUSINESS SERVICES) 34,319
12,532 AXA ASIA PACIFIC HOLDINGS LIMITED (INSURANCE CARRIERS) 52,036
2,568 BABCOCK & BROWN LIMITED (SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES) 34,011
51,802 BHP BILLITON LIMITED (MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS) 1,038,383
1,354 BILLABONG INTERNATIONAL LIMITED (APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR
MATERIALS) 14,734
11,869 BLUESCOPE STEEL LIMITED (MISCELLANEOUS MANUFACTURING INDUSTRIES) 61,009
8,517 BORAL LIMITED (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 54,388
14,979 BRAMBLES INDUSTRIES LIMITED (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 115,277
2,310 CALTEX AUSTRALIA LIMITED (PETROLEUM REFINING & RELATED INDUSTRIES) 31,752
12,029 CENTRO PROPERTIES GROUP (REAL ESTATE) 55,717
4,499 CENTRO RETAIL GROUP (REAL ESTATE)+ 5,073
22,064 CFS GANDEL RETAIL TRUST (REAL ESTATE) 30,802
17 CFS GANDEL RETAIL TRUST-NEW (REAL ESTATE)+ 23
4,058 CHALLENGER FINANCIAL SERVICES GROUP LIMITED (FINANCE & FINANCIAL SERVICES) 10,168
8,674 COCA-COLA AMATIL LIMITED (FOOD & KINDRED PRODUCTS) 44,896
783 COCHLEAR LIMITED (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL &
OPTICAL) 29,788
17,080 COLES MYER LIMITED (MISCELLANEOUS RETAIL) 130,835
18,777 COMMONWEALTH BANK OF AUSTRALIA (DEPOSITORY INSTITUTIONS) 608,944
19,747 COMMONWEALTH PROPERTY OFFICE FUND (REAL ESTATE) 19,509
6,200 COMPUTERSHARE LIMITED (BUSINESS SERVICES) 32,668
2,700 CSL LIMITED (CHEMICALS & ALLIED PRODUCTS) 105,731
14,989 CSR LIMITED (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 47,859
43,267 DB RREEF TRUST (REAL ESTATE) 45,533
4,052 DCA GROUP LIMITED (HEALTH SERVICES) 10,646
2,772 DOWNER EDI LIMITED (ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES) 17,602
29,108 FOSTER'S GROUP LIMITED (FOOD & KINDRED PRODUCTS) 110,652
9,994 FUTURIS CORPORATION LIMITED (MISCELLANEOUS MANUFACTURING INDUSTRIES) 16,170
25,504 GENERAL PROPERTY TRUST (REAL ESTATE) 75,407
10,015 HARVEY NORMAN HOLDINGS LIMITED (GENERAL MERCHANDISE STORES) 27,102
4,413 ILUKA RESOURCES LIMITED (MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS) 24,769
8,462 ING INDUSTRIAL FUND (REAL ESTATE) 13,691
23,435 INSURANCE AUSTRALIA GROUP LIMITED (INSURANCE CARRIERS) 91,771
21,012 INVESTA PROPERTY GROUP (REAL ESTATE) 32,492
7,729 JAMES HARDIE INDUSTRIES NV (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 52,455
15,329 JOHN FAIRFAX HOLDINGS LIMITED (COMMUNICATIONS) 44,006
108
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
AUSTRALIA (CONTINUED)
1,892 LEIGHTON HOLDINGS LIMITED (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) $ 24,042
5,499 LEND LEASE CORPORATION LIMITED (REAL ESTATE) 54,484
4,210 LION NATHAN LIMITED (FOOD & KINDRED PRODUCTS) 24,443
20,293 MACQUAIRE OFFICE TRUST (REAL ESTATE) 19,976
10,714 MACQUARIE AIRPORTS (SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES) 25,848
3,416 MACQUARIE BANK LIMITED (HOLDING & OTHER INVESTMENT OFFICES) 158,176
5,823 MACQUARIE COMMUNICATIONS INFRASTRUCTURE GROUP (HOLDING & OTHER INVESTMENT OFFICES) 24,387
16,782 MACQUARIE GOODMAN GROUP (PROPERTIES) 59,831
33,761 MACQUARIE INFRASTRUCTURE GROUP (HOLDING & OTHER INVESTMENT OFFICES) 92,086
10,648 MAYNE GROUP LIMITED (HEALTH SERVICES) 26,223
10,648 MAYNE PHARMA LIMITED (HEALTH SERVICES)+ 22,564
13,705 MIRVAC GROUP (REAL ESTATE) 41,699
6,348 MULTIPLEX GROUP (HEAVY CONSTRUCTION OTHER THAN BUILDING CONSTRUCTION CONTRACTS) 13,952
23,418 NATIONAL AUSTRALIA BANK LIMITED (DEPOSITORY INSTITUTIONS) 632,039
4,674 NEWCREST MINING LIMITED (METAL MINING) 78,232
10,734 ONESTEEL LIMITED (PRIMARY METAL INDUSTRIES) 31,660
4,167 ORICA LIMITED (MISCELLANEOUS MANUFACTURING INDUSTRIES) 69,171
12,066 ORIGIN ENERGY LIMITED (OIL & GAS EXTRACTION) 63,231
9,792 PACIFIC BRANDS LIMITED (GENERAL MERCHANDISE STORES) 16,754
6,868 PAPERLINX LIMITED (PAPER & ALLIED PRODUCTS) 18,536
9,446 PATRICK CORPORATION LIMITED (BUSINESS SERVICES) 54,505
724 PERPETUAL TRUSTEES AUSTRALIA LIMITED (BUSINESS SERVICES) 35,245
2,504 PUBLISHING & BROADCASTING LIMITED (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 31,012
15,679 QANTAS AIRWAYS (TRANSPORTATION BY AIR) 39,735
11,607 QBE INSURANCE GROUP LIMITED (INSURANCE CARRIERS) 181,811
13,836 RINKER GROUP LIMITED (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 196,618
4,242 RIO TINTO LIMITED (METAL MINING) 239,456
8,651 SANTOS LIMITED (OIL & GAS EXTRACTION) 70,479
1,353 SFE CORPORATION LIMITED (SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES) 15,798
4,053 SONIC HEALTHCARE LIMITED (HEALTH SERVICES) 45,554
20,526 STOCKLAND (REAL ESTATE) 98,748
645 STOCKLAND (REAL ESTATE)+(B) 3,057
8,080 SUNCORP-METWAY LIMITED (DEPOSITORY INSTITUTIONS) 112,450
7,683 TABCORP HOLDINGS LIMITED (AMUSEMENT & RECREATION SERVICES) 85,089
33,770 TELSTRA CORPORATION LIMITED (COMMUNICATIONS) 90,418
4,165 TOLL HOLDINGS LIMITED (TRANSPORTATION SERVICES) 39,061
10,814 TRANSURBAN GROUP (SOCIAL SERVICES) 52,179
1,213 UNITAB LIMITED (COMMERCE) 13,199
5,571 WESFARMERS LIMITED (MISCELLANEOUS MANUFACTURING INDUSTRIES) 139,111
21,620 WESTFIELD GROUP (PROPERTIES) 264,670
730 WESTFIELD GROUP (PROPERTIES)+(B) 8,884
26,600 WESTPAC BANKING CORPORATION (DEPOSITORY INSTITUTIONS) 453,603
6,948 WOODSIDE PETROLEUM LIMITED (OIL & GAS EXTRACTION) 226,221
16,857 WOOLWORTHS LIMITED (FOOD STORES) 227,239
8,364,151
---------------
109
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
AUSTRIA - 0.44%
144 BOEHLER-UDDEHOLM AG (FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT) $ 29,666
2,455 ERSTE BANK DER OESTERREICHISCHEN SPARKASSEN AG (DEPOSITORY INSTITUTIONS) 144,769
199 FLUGHAFEN WIEN AG (CONSTRUCTION SPECIAL TRADE CONTRACTORS) 15,586
3,915 IMMOFINANZ IMMOBILIEN ANLAGEN AG (REAL ESTATE)+ 40,612
80 MAYR-MELNHOF KARTON AG (PAPER & ALLIED PRODUCTS) 14,300
1,630 MEINL EUROPEAN LAND LIMITED (REAL ESTATE)+ 30,618
2,389 OMV AG (OIL & GAS EXTRACTION) 159,811
410 RAIFFEISEN INTERNATIONAL BANK HOLDINGS (DEPOSITORY INSTITUTIONS)+ 34,979
323 RHI AG (MISCELLANEOUS MANUFACTURING INDUSTRIES)+ 10,498
5,149 TELEKOM AUSTRIA AG (COMMUNICATIONS) 121,365
97 VERBUND - OESTERREICHISCHE ELEKTRIZITAETSWIRTSCHAFTS AG (ELECTRIC, GAS & SANITARY SERVICES) 43,141
273 VOESTALPINE AG (FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT)+ 38,199
339 WIENER STAEDTISCHE ALLGEMEINE VERSICHERUNG AG (INSURANCE CARRIERS) 20,952
758 WIENERBERGER AG (BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS) 38,121
742,617
---------------
BELGIUM - 1.16%
1,585 AGFA-GEVAERT NV (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL &
OPTICAL) 30,195
224 BARCO NV (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 19,124
272 BEKAERT SA (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL) 28,018
2,273 BELGACOM SA (COMMUNICATIONS) 72,693
96 COFINIMMO SA (REITS) 15,997
260 COLRUYT SA (FOOD STORES) 38,944
330 COMPAGNIE MARITIME BELGE SA (WATER TRANSPORTATION) 9,882
52 D'IETEREN SA (AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS) 15,559
1,130 DELHAIZE GROUP (FOOD STORES) 81,068
7,885 DEXIA SA (DEPOSITORY INSTITUTIONS)+ 203,914
396 EURONAV SA (WATER TRANSPORTATION)+ 10,730
17,163 FORTIS (DEPOSITORY INSTITUTIONS) 613,157
976 GROUPE BRUXELLES LAMBERT SA (BUSINESS SERVICES) 108,579
2,648 INBEV NA (FOOD & KINDRED PRODUCTS) 124,188
2,724 KBC BANK VERZEKERINGS HOLDINGS (DEPOSITORY INSTITUTIONS) 292,477
481 MOBISTAR SA (COMMUNICATIONS) 34,916
314 OMEGA PHARMA SA (CHEMICALS & ALLIED PRODUCTS) 19,235
851 SOLVAY SA (CHEMICALS & ALLIED PRODUCTS) 98,282
1,796 SUEZ LYONNAISE DES EAUX STRIP SA (ELECTRIC, GAS & SANITARY SERVICES)+ 22
75 SUEZ SA (ENERGY)+ 2,965
1,401 UCB SA (CHEMICALS & ALLIED PRODUCTS) 68,931
409 UMICORE (MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS) 56,653
1,945,529
---------------
CAYMAN ISLANDS - 0.02%
23,000 HUTCHISON TELECOMMUNICATIONS (TELECOMMUNICATIONS)+ 39,276
---------------
DENMARK - 0.63%
16 A.P. MOLLER - MAERSK A/S (LOCAL & SUB-TRANSIT & INTERURBAN HIGHWAY PASS TRANSPORTATION) 137,452
213 BANG & OLUFSEN A/S (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 24,663
506 CARLSBERG A/S (FOOD & KINDRED PRODUCTS) 33,033
110
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
DENMARK (CONTINUED)
413 COLOPLAST A/S (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL &
OPTICAL) $ 31,087
688 DANISCO A/S (FOOD & KINDRED PRODUCTS) 55,752
6,128 DANSKE BANK A/S (DEPOSITORY INSTITUTIONS) 227,394
295 DSV A/S (MOTOR FREIGHT TRANSPORTATION & WAREHOUSING) 39,283
209 EAST ASIATIC COMPANY LIMITED A/S (FOOD & KINDRED PRODUCTS) 8,587
523 FLS INDUSTRIES A/S (BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS)+ 20,978
3,702 GN STORE NORD A/S (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 51,101
1,114 H. LUNDBECK A/S (CHEMICALS & ALLIED PRODUCTS) 24,423
332 NKT HOLDING A/S (MISCELLANEOUS MANUFACTURING INDUSTRIES) 21,027
3,276 NOVO NORDISK A/S CLASS B (CHEMICALS & ALLIED PRODUCTS) 203,759
656 NOVOZYMES A/S (HEALTH SERVICES) 44,477
333 TOPDANMARK A/S (INSURANCE CARRIERS)+ 41,748
257 TRYGVESTA AS (WHOLESALE TRADE DURABLE GOODS)+ 15,046
2,148 VESTAS WIND SYSTEMS A/S (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL
& OPTICAL)+ 53,545
420 WILLIAM DEMANT HOLDING A/S (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL)+ 27,828
1,061,183
---------------
FINLAND - 1.46%
1,353 AMER GROUP (HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES) 27,612
611 CARGOTEC CORPORATION (TRANSPORTATION SERVICES) 25,027
2,307 ELISA CORPORATION (COMMUNICATIONS) 45,794
5,987 FORTUM OYJ (ELECTRIC, GAS & SANITARY SERVICES) 151,057
1,032 KCI KONECRANES OYJ (BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS) 17,759
938 KESKO OYJ (FOOD STORES) 29,271
1,222 KONE OYJ (BUSINESS SERVICES) 50,306
1,657 METSO OYJ (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 63,956
1,497 NESTE OIL OYJ LIMITED (OIL & GAS EXTRACTION)+ 51,459
60,948 NOKIA OYJ (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 1,261,533
1,720 NOKIAN RENKAAT OYJ (TRANSPORTATION EQUIPMENT) 30,328
900 OKO BANK (DEPOSITORY INSTITUTIONS) 14,593
1,353 ORION OYJ (CHEMICALS & ALLIED PRODUCTS) 32,612
1,438 OUTOKUMPU OYJ (METAL MINING) 29,050
1,000 RAUTARUUKKI OYJ (PRIMARY METAL INDUSTRIES) 36,937
5,361 SAMPO OYJ (NON-DEPOSITORY CREDIT INSTITUTIONS) 112,849
8,160 STORA ENSO OYJ (PAPER & ALLIED PRODUCTS) 125,587
1,321 TIETOENATOR OYJ (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 51,612
7,366 UPM-KYMMENE OYJ (PAPER & ALLIED PRODUCTS) 174,067
1,130 UPONOR OYJ (RUBBER & MISCELLANEOUS PLASTICS PRODUCTS) 29,552
889 WARTSILA OYJ (MISCELLANEOUS MANUFACTURING INDUSTRIES) 32,948
2,000 YIT OYJ (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 54,243
2,448,152
---------------
FRANCE - 9.28%
2,717 ACCOR SA (METAL MINING) 156,630
2,036 AIR FRANCE-KLM (TRANSPORTATION BY AIR) 47,940
1,580 AIR LIQUIDE (CHEMICALS & ALLIED PRODUCTS) 328,951
17,795 ALCATEL SA (COMMUNICATIONS) 275,385
111
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
FRANCE (CONTINUED)
1,626 ALSTOM RGPT (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT)+ $ 136,357
7,366 ARCELOR SA (PRIMARY METAL INDUSTRIES) 290,380
1,003 ATOS ORIGIN (BUSINESS SERVICES)+ 74,327
975 AUTOROUTES DU SUD DE LA FRANCE NPV (SOCIAL SERVICES) 60,260
21,592 AXA SA (INSURANCE CARRIERS) 757,779
11,067 BNP PARIBAS SA (DEPOSITORY INSTITUTIONS) 1,028,001
1,107 BNP PARIBAS SA+(B) 99,313
2,549 BOUYGUES SA (ENGINEERING CONSTRUCTION) 135,454
1,063 BUSINESS OBJECTS SA (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT)+ 38,801
1,900 CAP GEMINI SA (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT)+ 103,522
8,064 CARREFOUR SA (FOOD STORES)+ 429,009
575 CASINO GUICHARD-PERRACHON SA (FOOD STORES) 40,206
1,432 CIE GENERALE D'OPTIQUE ESSILOR INTERNATIONAL SA (MEASURING, ANALYZING & CONTROLLING
INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL) 127,724
584 CNP ASSURANCES (INSURANCE AGENTS, BROKERS & SERVICE) 58,883
4,562 COMPAGNIE DE SAINT-GOBAIN (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 318,717
2,089 COMPAGNIE GENERALE DES ESTABLISSEMENTS MICHELIN (RUBBER & MISCELLANEOUS PLASTICS PRODUCTS) 131,262
8,625 CREDIT AGRICOLE SA (DEPOSITORY INSTITUTIONS) 335,622
781 DASSAULT SYSTEMES SA (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 44,663
1,235 EURONEXT NV (BUSINESS SERVICES) 101,847
24,755 FRANCE TELECOM SA (COMMUNICATIONS) 556,791
2,352 GAZ DE FRANCE (MEMBERSHIP ORGANIZATIONS)+ 85,053
159 GECINA SA (REAL ESTATE) 21,099
3,397 GROUPE DANONE (FOOD & KINDRED PRODUCTS) 416,196
335 HERMES INTERNATIONAL (APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS) 84,686
542 IMERYS SA (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 45,649
387 KLEPIERRE (REAL ESTATE) 48,259
4,229 L'OREAL SA (APPAREL & ACCESSORY STORES) 372,583
2,599 LAFARGE SA (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 294,489
1,790 LAGARDERE SCA (COMMUNICATIONS) 139,806
3,550 LVMH MOET HENNESSY LOUIS VUITTON SA (CONSUMER SERVICES) 348,039
530 NEOPOST SA (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 57,613
2,091 PAGESJAUNES SA (PRINTING, PUBLISHING & ALLIED INDUSTRIES)+ 58,738
1,062 PERNOD-RICARD (FOOD & KINDRED PRODUCTS) 203,473
2,212 PEUGEOT SA (AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS) 139,393
915 PPR SA (APPAREL & ACCESSORY STORES) 110,497
2,169 PUBLICIS GROUPE (COMMUNICATIONS) 84,638
2,664 RENAULT SA (TRANSPORTATION EQUIPMENT) 283,291
2,526 SAFRAN SA (NATIONAL SECURITY & INTERNATIONAL AFFAIRS) 64,039
15,158 SANOFI-AVENTIS SA (CHEMICALS & ALLIED PRODUCTS) 1,441,992
3,283 SCHNEIDER ELECTRIC SA (BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS) 354,487
11,766 SCOR SA (INSURANCE CARRIERS)+ 29,943
382 SOCIETE AUTOROUTES DU NORD ET DE L'EST DE LA FRANCE (MISCELLANEOUS MANUFACTURING
INDUSTRIES)+(A) 26,850
527 SOCIETE BIC SA (HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES) 35,381
565 SOCIETE DES AUTOROUTES PARIS-RHIN-RHONE (TRANSPORTATION SERVICES)+ 41,835
5,175 SOCIETE GENERALE (DEPOSITORY INSTITUTIONS) 778,276
1,605 SOCIETE TELEVISION FRANCAISE 1 (COMMUNICATIONS) 48,626
1,362 SODEXHO ALLIANCE SA (FOOD & KINDRED PRODUCTS) 64,701
112
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
FRANCE (CONTINUED)
14,500 SUEZ SA (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) $ 571,439
1,243 TECHNIP SA (OIL & GAS EXTRACTION) 84,129
1,283 THALES SA (TRANSPORTATION BY AIR) 57,046
3,710 THOMSON (HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES) 73,240
8,018 TOTAL SA (PETROLEUM REFINING & RELATED INDUSTRIES) 2,115,319
638 UNIBAIL (REAL ESTATE) 115,202
1,162 VALEO SA (TRANSPORTATION EQUIPMENT) 48,596
4,945 VEOLIA ENVIRONNEMENT (ELECTRIC, GAS & SANITARY SERVICES) 274,642
2,412 VINCI SA (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 237,786
16,750 VIVENDI UNIVERSAL SA (COMMUNICATIONS) 575,262
611 ZODIAC SA (TRANSPORTATION BY AIR) 39,651
15,549,768
---------------
GERMANY - 6.82%
694 ADIDAS-SALOMON AG (APPAREL & ACCESSORY STORES) 137,247
5,558 ALLIANZ AG (INSURANCE CARRIERS)+ 928,017
898 ALTANA AG (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL) 55,653
7,909 BASF AG (CHEMICALS & ALLIED PRODUCTS) 620,122
9,373 BAYER AG (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL) 375,520
275 BEIERSDORF AG (APPAREL & ACCESSORY STORES) 39,658
584 CELESIO AG (WHOLESALE TRADE DURABLE GOODS) 55,266
8,544 COMMERZBANK AG (DEPOSITORY INSTITUTIONS)+ 340,443
1,893 CONTINENTAL AG (RUBBER & MISCELLANEOUS PLASTICS PRODUCTS) 208,414
13,401 DAIMLERCHRYSLER AG (TRANSPORTATION EQUIPMENT) 769,780
7,196 DEUTSCHE BANK AG (DEPOSITORY INSTITUTIONS) 821,909
1,479 DEUTSCHE BOERSE AG (SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES) 213,288
3,799 DEUTSCHE LUFTHANSA AG (TRANSPORTATION BY AIR) 67,999
10,419 DEUTSCHE POST AG (TRANSPORTATION SERVICES)+ 261,227
670 DEUTSCHE POSTBANK AG (DEPOSITORY INSTITUTIONS) 48,619
40,023 DEUTSCHE TELEKOM AG (COMMUNICATIONS) 675,150
629 DOUGLAS HOLDING AG (APPAREL & ACCESSORY STORES) 29,621
9,091 E.ON AG (ELECTRIC, GAS & SANITARY SERVICES) 1,000,453
928 EPCOS AG (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT)+ 12,303
489 FRESENIUS MEDICAL CARE AG (HEALTH SERVICES) 58,430
417 FRESENIUS MEDICAL CARE AG PREFERRED (HEALTH SERVICES) 47,351
863 HEIDELBERGER DRUCKMASCHINEN AG (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 38,068
778 HENKEL KGAA (APPAREL & ACCESSORY STORES) 90,954
992 HOCHTIEF AG (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS)+ 56,117
1,949 HYPO REAL ESTATE HOLDING AG (DEPOSITORY INSTITUTIONS) 133,613
8,453 INFINEON TECHNOLOGIES AG (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT)+ 87,175
1,165 IVG IMMOBILIEN AG (REAL ESTATE)+ 35,027
1,041 KARSTADTQUELLE AG (GENERAL MERCHANDISE STORES) 24,487
1,276 LINDE AG (ELECTRIC, GAS & SANITARY SERVICES) 110,794
1,937 MAN AG (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 134,434
777 MERCK KGAA (CHEMICALS & ALLIED PRODUCTS) 73,851
2,229 METRO AG (FOOD STORES) 114,289
955 MLP AG (HOLDING & OTHER INVESTMENT OFFICES) 23,343
113
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
GERMANY (CONTINUED)
2,801 MUENCHENER RUECKVERSICHERUNG GESELLSCHAFT AG (INSURANCE CARRIERS) $ 397,146
103 PORSCHE AG (TRANSPORTATION EQUIPMENT) 98,609
755 PREMIERE AG (ENTERTAINMENT)+ 13,404
444 PROSIEBENSAT.1 MEDIA AG (COMMUNICATIONS)+ 11,568
165 PUMA AG RUDOLF DASSLER SPORT (APPAREL & ACCESSORY STORES) 62,478
6,158 RWE AG (ELECTRIC, GAS & SANITARY SERVICES) 535,965
634 RWE AG NON-VOTING PREFERRED (ELECTRIC, GAS & SANITARY SERVICES) 49,518
3,187 SAP AG (BUSINESS SERVICES) 691,370
2,478 SCHERING AG (CHEMICALS & ALLIED PRODUCTS) 257,626
11,592 SIEMENS AG (WHOLESALE TRADE NON-DURABLE GOODS) 1,082,246
815 SUEDZUCKER AG (FOOD & KINDRED PRODUCTS) 21,087
5,002 THYSSENKRUPP AG (PRIMARY METAL INDUSTRIES) 144,451
3,371 TUI AG (TRANSPORTATION BY AIR) 66,180
2,537 VOLKSWAGEN AG (TRANSPORTATION EQUIPMENT) 191,571
1,577 VOLKSWAGEN AG PREFERRED (TRANSPORTATION EQUIPMENT) 86,554
263 WINCOR NIXDORF AG (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 33,147
11,431,542
---------------
GREECE - 0.64%
3,878 ALPHA BANK AE (DEPOSITORY INSTITUTIONS) 143,243
1,740 COCA-COLA HELLENIC BOTTLING COMPANY SA (FOOD & KINDRED PRODUCTS) 54,065
1,950 COSMOTE MOBILE COMMUNICATIONS SA (COMMUNICATIONS) 45,136
2,750 EFG EUROBANK ERGASIAS SA (DEPOSITORY INSTITUTIONS) 105,910
1,176 EMPORIKI BANK OF GREECE SA (DEPOSITORY INSTITUTIONS) 39,334
300 FOLLIE SA (APPAREL & ACCESSORY STORES) 8,587
920 GERMANOS SA (HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES) 19,533
350 HELLENIC DUTY FREE SHOPS SA (GENERAL MERCHANDISE STORES) 6,812
2,030 HELLENIC PETROLEUM SA (OIL & GAS EXTRACTION) 28,980
1,700 HELLENIC TECHNODOMIKI TEV SA (HEAVY CONSTRUCTION OTHER THAN BUILDING CONSTRUCTION CONTRACTS) 14,668
4,370 HELLENIC TELECOMMUNICATIONS ORGANIZATION SA (COMMUNICATIONS) 97,443
796 HYATT REGENCY SA (HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES) 10,823
1,610 INTRACOM SA (COMMUNICATIONS) 11,590
3,760 NATIONAL BANK OF GREECE SA (DEPOSITORY INSTITUTIONS) 176,795
3,230 OPAP SA (AMUSEMENT & RECREATION SERVICES) 123,457
2,400 PIRAEUS BANK SA (DEPOSITORY INSTITUTIONS) 72,711
1,690 PUBLIC POWER CORPORATION SA (ELECTRIC, GAS & SANITARY SERVICES) 39,732
1,510 TECHNICAL OLYMPIC SA (HEAVY CONSTRUCTION OTHER THAN BUILDING CONSTRUCTION CONTRACTS) 9,150
900 TITAN CEMENT COMPANY SA (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 42,973
2,080 VIOHALCO SA (BUSINESS SERVICES) 20,972
1,071,914
---------------
HONG KONG - 1.54%
3,500 ASM PACIFIC TECHNOLOGY (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 20,885
22,800 BANK OF EAST ASIA LIMITED (DEPOSITORY INSTITUTIONS) 82,424
51,000 BOC HONG KONG HOLDINGS LIMITED (DEPOSITORY INSTITUTIONS) 102,537
16,000 CATHAY PACIFIC AIRWAYS LIMITED (TRANSPORTATION BY AIR) 28,044
22,000 CHEUNG KONG HOLDINGS LIMITED (REAL ESTATE) 233,209
114
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
HONG KONG (CONTINUED)
7,000 CHEUNG KONG INFRASTRUCTURE HOLDINGS LIMITED (HEAVY CONSTRUCTION OTHER THAN BUILDING
CONSTRUCTION CONTRACTS) $ 22,238
26,000 CLP HOLDINGS LIMITED (ELECTRIC, GAS & SANITARY SERVICES) 151,795
13,000 ESPRIT HOLDINGS LIMITED (WHOLESALE TRADE NON-DURABLE GOODS) 101,197
28,000 GIORDANO INTERNATIONAL LIMITED (APPAREL & ACCESSORY STORES) 15,517
29,000 HANG LUNG PROPERTIES LIMITED (REAL ESTATE) 55,128
11,100 HANG SENG BANK LIMITED (DEPOSITORY INSTITUTIONS) 142,985
9,000 HENDERSON LAND DEVELOPMENT COMPANY LIMITED (REAL ESTATE) 49,877
50,000 HONG KONG & CHINA GAS COMPANY LIMITED (OIL & GAS EXTRACTION) 120,825
14,000 HONG KONG EXCHANGES & CLEARING LIMITED (BUSINESS SERVICES) 84,442
18,500 HONGKONG ELECTRIC HOLDINGS (ELECTRIC, GAS & SANITARY SERVICES) 87,026
10,000 HOPEWELL HOLDINGS (REAL ESTATE) 28,998
30,000 HUTCHISON WHAMPOA (DIVERSIFIED OPERATIONS)+ 275,095
12,000 HYSAN DEVELOPMENT COMPANY LIMITED (REAL ESTATE) 34,179
22,500 JOHNSON ELECTRIC HOLDINGS LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 21,024
9,092 KERRY PROPERTIES LIMITED (REAL ESTATE) 33,278
8,000 KINGBOARD CHEMICALS HOLDINGS (CHEMICALS & ALLIED PRODUCTS) 24,178
28,000 LI & FUNG LIMITED (WHOLESALE TRADE NON-DURABLE GOODS) 63,151
29,000 LINK REIT (REITS)+ 62,790
22,223 MTR CORPORATION (RAILROAD TRANSPORTATION) 50,122
38,682 NEW WORLD DEVELOPMENT LIMITED (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 67,801
2,200 ORIENT OVERSEAS INTERNATIONAL LIMITED (WATER TRANSPORTATION) 7,443
57,000 PCCW LIMITED (COMMUNICATIONS) 37,098
18,000 SCMP GROUP LIMITED (COMMUNICATIONS) 6,438
20,000 SHANGRI-LA ASIA LIMITED (HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES) 32,349
20,276 SINO LAND COMPANY (REAL ESTATE) 29,137
5,500 SMARTONE TELECOMMUNICATIONS HOLDING LIMITED (COMMUNICATIONS) 6,025
32,000 SOLOMON SYSTECH LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 15,466
19,000 SUN HUNG KAI PROPERTIES LIMITED (REAL ESTATE) 192,959
13,000 SWIRE PACIFIC LIMITED (BUSINESS SERVICES) 127,250
14,000 TECHTRONIC INDUSTRIES COMPANY (BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME
DEALERS) 25,170
5,000 TELEVISION BROADCASTS LIMITED (MOTION PICTURES) 28,354
12,000 TEXWINCA HOLDINGS LIMITED (TEXTILE MILL PRODUCTS) 9,202
15,000 WHARF HOLDINGS LIMITED (BUSINESS SERVICES) 55,096
3,000 WING HANG BANK LIMITED (DEPOSITORY INSTITUTIONS) 25,190
9,000 YUE YUEN INDUSTRIAL HOLDINGS (APPAREL & ACCESSORY STORES) 26,504
2,582,426
---------------
IRELAND - 0.86%
12,716 ALLIED IRISH BANKS PLC (DEPOSITORY INSTITUTIONS) 303,576
14,117 BANK OF IRELAND (DEPOSITORY INSTITUTIONS) 262,604
4,473 C&C GROUP PLC (EATING & DRINKING PLACES) 30,356
7,802 CRH PLC (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 272,301
1,283 DCC PLC (BUSINESS SERVICES) 29,852
5,377 DEPFA BANK PLC (DEPOSITORY INSTITUTIONS) 95,787
7,360 EIRCOM GROUP PLC (COMMUNICATIONS) 18,998
5,856 ELAN CORPORATION PLC (CHEMICALS & ALLIED PRODUCTS)+ 84,450
5,901 FYFFES PLC (WHOLESALE TRADE NON-DURABLE GOODS) 15,876
115
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
IRELAND (CONTINUED)
2,819 GRAFTON GROUP PLC (BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS) $ 36,998
2,891 GREENCORE GROUP PLC (FOOD & KINDRED PRODUCTS) 13,488
1,332 IAWS GROUP PLC (AGRICULTURAL PRODUCTION CROPS) 23,099
8,902 INDEPENDENT NEWS AND MEDIA PLC (COMMUNICATIONS) 28,804
3,864 IRISH LIFE & PERMANENT PLC (NON-DEPOSITORY CREDIT INSTITUTIONS) 92,716
2,132 KERRY GROUP PLC (FOOD & KINDRED PRODUCTS) 51,209
1,707 KINGSPAN GROUP PLC (BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS) 26,065
869 PADDY POWER PLC (AMUSEMENT & RECREATION SERVICES) 13,901
623 RYANAIR HOLDINGS PLC ADR (TRANSPORTATION BY AIR)+ 34,078
1,434,158
---------------
ITALY - 3.65%
6,293 ALLEANZA ASSICURAZIONI SPA (INSURANCE CARRIERS) 74,813
2,213 ARNOLDO MONDADORI EDITORE SPA (COMMUNICATIONS) 21,709
14,082 ASSICURAZIONI GENERALI SPA (INSURANCE CARRIERS) 530,392
1,722 AUTOGRILL SPA (EATING & DRINKING PLACES) 25,543
4,088 AUTOSTRADE SPA (SOCIAL SERVICES) 101,113
4,699 BANCA FIDEURAM SPA (HOLDING & OTHER INVESTMENT OFFICES) 27,006
14,756 BANCA INTESA RNC SPA (DEPOSITORY INSTITUTIONS) 83,510
54,037 BANCA INTESA SPA (DEPOSITORY INSTITUTIONS) 322,842
16,347 BANCA MONTE DEI PASCHI DI SIENA SPA (DEPOSITORY INSTITUTIONS) 92,018
15,480 BANCA NAZIONALE DEL LAVORO SPA (DEPOSITORY INSTITUTIONS)+ 54,778
6,239 BANCA POPOLARE DI MILANO SCARL (DEPOSITORY INSTITUTIONS) 73,642
5,170 BANCHE POPOLARI UNITE SCPA (DEPOSITORY INSTITUTIONS) 125,369
5,171 BANCO POPOLARE DI VERONA E NOVARA SCRL (DEPOSITORY INSTITUTIONS) 136,861
1,032 BENETTON GROUP SPA (APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS)+ 15,408
2,527 BULGARI SPA (APPAREL & ACCESSORY STORES) 30,409
23,333 CAPITALIA SPA (DEPOSITORY INSTITUTIONS) 193,975
63,448 ENEL SPA (ELECTRIC, GAS & SANITARY SERVICES) 536,691
37,641 ENI SPA (PETROLEUM REFINING & RELATED INDUSTRIES) 1,071,052
6,470 FIAT SPA (TRANSPORTATION EQUIPMENT)+ 81,543
4,600 FINMECCANICA SPA (TRANSPORTATION BY AIR) 104,464
3,275 GRUPPO EDITORIALE L'ESPRESSO SPA (COMMUNICATIONS) 17,175
931 ITALCEMENTI SPA (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 22,305
360 LOTTOMATICA SPA (AMUSEMENT & RECREATION SERVICES)+ 15,269
1,991 LUXOTTICA GROUP SPA (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL &
OPTICAL) 54,819
10,648 MEDIASET SPA (COMMUNICATIONS) 125,425
6,669 MEDIOBANCA SPA (DEPOSITORY INSTITUTIONS) 143,049
4,147 MEDIOLANUM SPA (INSURANCE CARRIERS) 32,892
43,372 PIRELLI & C SPA (TRANSPORTATION EQUIPMENT) 41,365
16,239 SANPAOLO IMI SPA (DEPOSITORY INSTITUTIONS) 290,671
66,054 SEAT PAGINE GIALLE SPA (COMMUNICATIONS)+ 31,579
14,619 SNAM RETE GAS SPA (OIL & GAS EXTRACTION) 64,620
23,337 TELECOM ITALIA MEDIA SPA (COMMUNICATIONS)+ 12,599
86,745 TELECOM ITALIA RNC SPA (COMMUNICATIONS) 231,007
157,255 TELECOM ITALIA SPA (COMMUNICATIONS) 458,798
17,214 TERNA SPA (ELECTRIC, GAS & SANITARY SERVICES) 45,268
116
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ITALY (CONTINUED)
3,533 TISCALI SPA (COMMUNICATIONS)+ $ 11,528
113,999 UNICREDITO ITALIANO SPA (DEPOSITORY INSTITUTIONS) 824,068
6,125,575
---------------
JAPAN - 24.69%
5,000 77 BANK LIMITED (DEPOSITORY INSTITUTIONS) 38,530
1,100 ACOM COMPANY LIMITED (NON-DEPOSITORY CREDIT INSTITUTIONS) 64,579
600 ADERANS COMPANY LIMITED (APPAREL & ACCESSORY STORES) 17,638
1,100 ADVANTEST CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 131,121
9,500 AEON COMPANY LIMITED (MISCELLANEOUS RETAIL) 230,438
1,500 AEON CREDIT SERVICE COMPANY LIMITED (NON-DEPOSITORY CREDIT INSTITUTIONS) 45,370
900 AIFUL CORPORATION (NON-DEPOSITORY CREDIT INSTITUTIONS) 59,567
2,800 AISIN SEIKI COMPANY LIMITED (TRANSPORTATION EQUIPMENT) 108,955
9,000 AJINOMOTO COMPANY INCORPORATED (FOOD & KINDRED PRODUCTS) 96,117
400 ALFRESA HOLDINGS CORPORATION (WHOLESALE TRADE NON-DURABLE GOODS) 24,299
8,000 ALL NIPPON AIRWAYS COMPANY LIMITED (TRANSPORTATION BY AIR) 29,159
2,000 ALPS ELECTRIC COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT) 32,234
4,000 AMADA COMPANY LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 43,636
1,000 AMANO CORPORATION (MISCELLANEOUS MANUFACTURING INDUSTRIES) 17,417
1,000 ANRITSU CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 6,287
1,000 AOYAMA TRADING COMPANY LIMITED (APPAREL & ACCESSORY STORES) 33,050
400 ARIAKE JAPAN COMPANY LIMITED (FOOD & KINDRED PRODUCTS) 11,929
5,500 ASAHI BREWERIES LIMITED (FOOD & KINDRED PRODUCTS) 78,037
15,000 ASAHI GLASS COMPANY LIMITED (BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS) 224,172
17,000 ASAHI KASEI CORPORATION (CHEMICALS & ALLIED PRODUCTS) 121,181
600 ASATSU-DK INCORPORATED (COMMUNICATIONS) 20,952
500 AUTOBACS SEVEN COMPANY LIMITED (AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS) 24,936
9,000 BANK OF FUKUOKA LIMITED (DEPOSITORY INSTITUTIONS) 75,930
4,000 BANK OF KYOTO LIMITED (DEPOSITORY INSTITUTIONS) 48,258
18,000 BANK OF YOKOHAMA LIMITED (DEPOSITORY INSTITUTIONS) 147,426
1,000 BENESSE CORPORATION (EDUCATIONAL SERVICES) 35,684
10,000 BRIDGESTONE CORPORATION (AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS) 208,581
11,100 CANON INCORPORATED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 734,656
1,000 CANON SALES COMPANY INCORPORATED (WHOLESALE TRADE DURABLE GOODS) 21,538
3,300 CASIO COMPUTER COMPANY LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 58,738
3,000 CENTRAL GLASS COMPANY LIMITED (BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME
DEALERS) 17,383
23 CENTRAL JAPAN RAILWAY COMPANY (RAILROAD TRANSPORTATION) 226,678
11,000 CHIBA BANK LIMITED (DEPOSITORY INSTITUTIONS) 97,850
2,000 CHIYODA CORPORATION (ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES)+ 46,559
8,500 CHUBU ELECTRIC POWER COMPANY INCORPORATED (ELECTRIC, GAS & SANITARY SERVICES) 213,042
3,900 CHUGAI PHARMACEUTICAL COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 70,743
800 CIRCLE K SUNKUS COMPANY LIMITED (GENERAL MERCHANDISE STORES) 19,371
4,400 CITIZEN WATCH COMPANY LIMITED (APPAREL & ACCESSORY STORES) 41,533
800 COCA-COLA WEST JAPAN COMPANY LIMITED (FOOD & KINDRED PRODUCTS) 18,997
2,000 COMSYS HOLDINGS CORPORATION (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 28,564
2,200 CREDIT SAISON COMPANY LIMITED (MISCELLANEOUS RETAIL) 121,682
117
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
JAPAN (CONTINUED)
1,100 CSK HOLDINGS CORPORATION (BUSINESS SERVICES) $ 54,673
9,000 DAI NIPPON PRINTING COMPANY LIMITED (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 162,872
4,000 DAICEL CHEMICAL INDUSTRIES LIMITED (CHEMICALS & ALLIED PRODUCTS) 33,679
4,000 DAIDO STEEL COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT) 40,612
9,300 DAIICHI SANKYO COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 212,154
3,500 DAIKIN INDUSTRIES LIMITED (BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS) 122,515
3,000 DAIMARU INCORPORATED (APPAREL & ACCESSORY STORES) 44,197
10,000 DAINIPPON INK & CHEMICALS INCORPORATED (CHEMICALS & ALLIED PRODUCTS) 37,213
3,000 DAINIPPON SCREEN MANUFACTURING COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT &
COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 31,784
1,000 DAITO TRUST CONSTRUCTION COMPANY LIMITED (REAL ESTATE) 52,166
7,000 DAIWA HOUSE INDUSTRY COMPANY LIMITED (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE
BUILDERS) 121,325
18,000 DAIWA SECURITIES GROUP INCORPORATED (HOLDING & OTHER INVESTMENT OFFICES) 241,478
7,000 DENKI KAGAKU KOGYO KABUSHIKI KAISHA (CHEMICALS & ALLIED PRODUCTS) 31,283
7,800 DENSO CORPORATION (TRANSPORTATION EQUIPMENT) 308,156
26 DENTSU INCORPORATED (BUSINESS SERVICES) 94,325
4,000 DOWA MINING COMPANY LIMITED (MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS) 47,748
15 E*TRADE SECURITIES COMPANY LIMITED (FINANCE & FINANCIAL SERVICES)+ 34,537
14 EACCESS LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT)+ 10,824
49 EAST JAPAN RAILWAY COMPANY (RAILROADS) 363,025
5,000 EBARA CORPORATION (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 31,436
3,700 EISAI COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 161,266
2,280 ELECTRIC POWER DEVELOPMENT COMPANY LIMITED (ELECTRIC, GAS & SANITARY SERVICES) 72,255
600 EPILDA MEMORY INCORPORATED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT)+ 21,512
1,000 FAMILYMART COMPANY LIMITED (GENERAL MERCHANDISE STORES) 31,351
2,600 FANUC LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 250,280
700 FAST RETAILING COMPANY LIMITED (APPAREL & ACCESSORY STORES) 68,454
9,000 FUJI ELECTRIC HOLDINGS COMPANY LIMITED (BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE
HOME DEALERS) 49,091
7,300 FUJI PHOTO FILM COMPANY LIMITED (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL) 243,747
400 FUJI SOFT ABC INCORPORATED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 11,895
7 FUJI TELEVISION NETWORK INCORPORATED (COMMUNICATIONS) 17,485
5,000 FUJIKURA LIMITED (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL &
OPTICAL) 56,627
25,000 FUJITSU LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 210,918
9,000 FURUKAWA ELECTRIC COMPANY LIMITED (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL)+ 74,630
700 GLORY LIMITED (MISCELLANEOUS MANUFACTURING INDUSTRIES) 15,166
18 GOODWILL GROUP INCORPORATED (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 16,822
6,000 GUNMA BANK LIMITED (DEPOSITORY INSTITUTIONS) 45,370
2,000 GUNZE LIMITED (APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS) 13,509
400 HAKUHODO DY HOLDINGS INCORPORATED (CONSUMER SERVICES) 33,475
2,000 HANKYU DEPARTMENT STORES (APPAREL & ACCESSORY STORES) 18,505
400 HIKARI TSUSHIN INCORPORATED (MISCELLANEOUS RETAIL)+ 27,833
4,000 HINO MOTORS LIMITED (TRANSPORTATION EQUIPMENT) 25,149
400 HIROSE ELECTRIC COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT) 56,245
3,000 HITACHI CABLE LIMITED (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL &
OPTICAL) 17,026
118
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
JAPAN (CONTINUED)
1,000 HITACHI CAPITAL CORPORATION (NON-DEPOSITORY CREDIT INSTITUTIONS) $ 20,008
1,700 HITACHI CHEMICAL COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 48,819
1,500 HITACHI CONSTRUCTION MACHINERY COMPANY LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER
EQUIPMENT) 39,507
46,000 HITACHI LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 325,556
600 HITACHI SOFTWARE ENGINEERING COMPANY LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER
EQUIPMENT) 11,113
2,900 HOKKAIDO ELECTRIC POWER COMPANY INCORPORATED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT &
COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 62,213
15,000 HOKUHOKU FINANCIAL GROUP INCORPORATED (DEPOSITORY INSTITUTIONS) 65,888
11,500 HONDA MOTOR COMPANY LIMITED (TRANSPORTATION EQUIPMENT) 712,277
1,400 HOUSE FOODS CORPORATION (FOOD & KINDRED PRODUCTS) 22,980
6,400 HOYA CORPORATION (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL &
OPTICAL) 258,284
1,900 IBIDEN COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 96,049
14 INDEX CORPORATION (COMMUNICATIONS) 29,499
6 INPEX CORPORATION (PETROLEUM REFINING & RELATED INDUSTRIES)(A) 50,824
2,800 ISETAN COMPANY LIMITED (APPAREL & ACCESSORY STORES) 61,020
5,000 ISHIHARA SANGYO KAISHA LIMITED (CHEMICALS & ALLIED PRODUCTS) 9,346
17,000 ISHIKAWAJIMA-HARIMA HEAVY INDUSTRIES COMPANY LIMITED (MISCELLANEOUS MANUFACTURING INDUSTRIES)+ 53,874
1,000 ITO EN LIMITED (EATING & DRINKING PLACES) 35,004
22,000 ITOCHU CORPORATION (WHOLESALE TRADE NON-DURABLE GOODS) 188,972
500 ITOCHU TECHNO-SCIENCE CORPORATION (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 19,711
500 JAFCO COMPANY LIMITED (HOLDING & OTHER INVESTMENT OFFICES) 37,723
11,000 JAPAN AIR LINES CORPORATION (TRANSPORTATION BY AIR) 28,785
7 JAPAN PRIME REALTY INVESTMENT CORPORATION (REITS) 21,351
5 JAPAN REAL ESTATE INVESTMENT CORPORATION (REITS) 43,330
4 JAPAN RETAIL FUND INVESTMENT CORPORATION (REITS) 31,266
65 JAPAN TOBACCO INCORPORATED (TOBACCO PRODUCTS) 228,632
8,200 JFE HOLDINGS INCORPORATED (PRIMARY METAL INDUSTRIES) 330,926
3,000 JGC CORPORATION (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 59,006
10,000 JOYO BANK LIMITED (DEPOSITORY INSTITUTIONS) 70,518
2,400 JSR CORPORATION (CHEMICALS & ALLIED PRODUCTS) 71,368
13,000 KAJIMA CORPORATION (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 81,181
1,000 KAKEN PHARMACEUTICAL COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 8,377
4,000 KAMIGUMI COMPANY LIMITED (TRANSPORTATION SERVICES) 31,878
4,000 KANEKA CORPORATION (CHEMICALS & ALLIED PRODUCTS) 47,952
11,400 KANSAI ELECTRIC POWER COMPANY INCORPORATED (ELECTRIC, GAS & SANITARY SERVICES) 253,279
4,000 KANSAI PAINT COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 36,669
7,000 KAO CORPORATION (CHEMICALS & ALLIED PRODUCTS) 184,367
2,400 KATOKICHI COMPANY LIMITED (FOOD & KINDRED PRODUCTS) 16,415
20,000 KAWASAKI HEAVY INDUSTRIES LIMITED (MISCELLANEOUS MANUFACTURING INDUSTRIES) 70,178
8,000 KAWASAKI KISEN KAISHA LIMITED (WATER TRANSPORTATION) 47,239
34 KDDI CORPORATION (COMMUNICATIONS) 181,699
7,000 KEIHIN ELECTRIC EXPRESS RAILWAY COMPANY LIMITED (RAILROAD TRANSPORTATION) 57,392
9,000 KEIO ELECTRIC RAILWAY COMPANY LIMITED (RAILROAD TRANSPORTATION) 59,414
4,000 KEISEI ELECTRIC RAILWAY COMPANY LIMITED (RAILROAD TRANSPORTATION) 27,596
450 KEYENCE CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 116,992
2,000 KIKKOMAN CORPORATION (FOOD & KINDRED PRODUCTS) 22,498
2,000 KINDEN CORPORATION (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 18,131
119
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
JAPAN (CONTINUED)
23,000 KINTETSU CORPORATION (RAILROAD TRANSPORTATION) $ 89,694
12,000 KIRIN BREWERY COMPANY LIMITED (FOOD & KINDRED PRODUCTS) 163,330
40,000 KOBE STEEL LIMITED (FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT) 151,912
1,300 KOKUYO COMPANY LIMITED (HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES) 19,616
13,000 KOMATSU LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 247,961
1,000 KOMORI CORPORATION (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 23,322
1,600 KONAMI CORPORATION (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 40,306
6,500 KONICA MINOLTA HOLDINGS INCORPORATED (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS:
PHOTOGRAPHIC, MEDICAL & OPTICAL) 82,948
440 KOSE CORPORATION (MISCELLANEOUS MANUFACTURING INDUSTRIES) 16,598
2,000 KOYO SEIKO COMPANY LIMITED (TRANSPORTATION EQUIPMENT) 39,932
16,000 KUBOTA CORPORATION (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 172,642
5,000 KURARAY COMPANY LIMITED (TEXTILE MILL PRODUCTS) 58,794
2,200 KURAYA SANSEIDO INCORPORATED (WHOLESALE TRADE NON-DURABLE GOODS) 35,589
1,900 KURITA WATER INDUSTRIES LIMITED (ADMINISTRATION OF ENVIRONMENTAL QUALITY & HOUSING PROGRAMS) 40,680
2,400 KYOCERA CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 212,472
4,000 KYOWA HAKKO KOGYO COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 29,227
5,400 KYUSHU ELECTRIC POWER COMPANY INCORPORATED (ELECTRIC, GAS & SANITARY SERVICES) 121,810
1,000 LAWSON INCORPORATED (GENERAL MERCHANDISE STORES) 37,638
1,500 LEOPALACE 21 CORPORATION (REAL ESTATE) 56,330
500 MABUCHI MOTOR COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT) 25,743
1,300 MAKITA CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 40,093
18,000 MARUBENI CORPORATION (BUSINESS SERVICES) 94,206
4,700 MARUI COMPANY LIMITED (APPAREL & ACCESSORY STORES) 92,842
1,700 MATSUI SECURITIES COMPANY LIMITED (INSURANCE AGENTS, BROKERS & SERVICE)+ 23,572
700 MATSUMOTOKIYOSHI COMPANY LIMITED (GENERAL MERCHANDISE STORES) 20,042
30,000 MATSUSHITA ELECTRIC INDUSTRIAL COMPANY LIMITED (HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES) 666,525
5,000 MATSUSHITA ELECTRIC WORKS LIMITED (BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME
DEALERS) 60,025
4,000 MEIJI DAIRIES CORPORATION (FOOD & KINDRED PRODUCTS) 23,381
5,000 MEIJI SEIKA KAISHA LIMITED (FOOD & KINDRED PRODUCTS) 25,489
600 MEITEC CORPORATION (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 19,728
21 MILLEA HOLDINGS INCORPORATED (INSURANCE CARRIERS) 415,718
6,000 MINEBEA COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 41,444
16,000 MITSUBISHI CHEMICAL HOLDINGS CORPORATION (CHEMICALS & ALLIED PRODUCTS)+ 98,692
19,200 MITSUBISHI CORPORATION (BUSINESS SERVICES) 437,179
28,000 MITSUBISHI ELECTRIC CORPORATION (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 237,655
16,000 MITSUBISHI ESTATE COMPANY LIMITED (REAL ESTATE) 379,269
6,000 MITSUBISHI GAS CHEMICAL COMPANY INCORPORATED (CHEMICALS & ALLIED PRODUCTS) 73,203
43,000 MITSUBISHI HEAVY INDUSTRIES LIMITED (MISCELLANEOUS MANUFACTURING INDUSTRIES) 204,588
2,000 MITSUBISHI LOGISTICS CORPORATION (MOTOR FREIGHT TRANSPORTATION & WAREHOUSING) 31,980
15,000 MITSUBISHI MATERIALS CORPORATION (MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS) 80,161
7,000 MITSUBISHI RAYON COMPANY LIMITED (TEXTILE MILL PRODUCTS) 57,332
4,000 MITSUBISHI SECURITIES COMPANY LIMITED (SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES &
SERVICES)+ 64,231
123 MITSUBISHI UFJ FINANCIAL GROUP INCORPORATED (DEPOSITORY INSTITUTIONS) 1,881,053
22,000 MITSUI & COMPANY LIMITED (WHOLESALE TRADE DURABLE GOODS) 318,131
10,000 MITSUI CHEMICALS LIMITED (CHEMICALS & ALLIED PRODUCTS) 73,577
120
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
JAPAN (CONTINUED)
10,000 MITSUI ENGINEERING & SHIPBUILDING COMPANY LIMITED (TRANSPORTATION EQUIPMENT) $ 32,455
11,000 MITSUI FUDOSAN COMPANY LIMITED (REAL ESTATE) 252,804
9,000 MITSUI MINING & SMELTING COMPANY LIMITED (METAL MINING) 63,008
16,000 MITSUI O.S.K. LINES LIMITED (WATER TRANSPORTATION) 108,207
17,000 MITSUI SUMITOMO INSURANCE COMPANY LIMITED (INSURANCE CARRIERS) 231,240
8,000 MITSUI TRUST HOLDINGS INCORPORATED (DEPOSITORY INSTITUTIONS) 116,975
6,000 MITSUKOSHI LIMITED (APPAREL & ACCESSORY STORES) 38,488
1,200 MITSUMI ELECTRIC COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT) 15,691
139 MIZUHO FINANCIAL GROUP INCORPORATED (BANKING) 1,137,273
2,900 MURATA MANUFACTURING COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS,
EXCEPT COMPUTER EQUIPMENT) 196,372
3,200 NAMCO BANDAI HOLDINGS INCORPORATED (AMUSEMENT & RECREATION SERVICES) 43,827
28,000 NEC CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 196,737
600 NEC ELECTRONICS CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT) 24,418
9 NET ONE SYSTEMS COMPANY LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 18,505
4,000 NGK INSULATORS LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 58,760
3,000 NGK SPARK PLUG COMPANY LIMITED (TRANSPORTATION EQUIPMENT) 69,966
2,000 NHK SPRING COMPANY LIMITED (TRANSPORTATION EQUIPMENT) 25,319
400 NICHII GAKKAN COMPANY (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 9,278
5,000 NICHIREI CORPORATION (FOOD & KINDRED PRODUCTS) 24,257
1,600 NIDEC CORPORATION (WHOLESALE TRADE DURABLE GOODS) 131,317
12,000 NIKKO CORDIAL CORPORATION (FINANCIAL) 198,811
4,000 NIKON CORPORATION (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL &
OPTICAL) 71,708
1,400 NINTENDO COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT) 209,346
5 NIPPON BUILDING FUND INCORPORATED (REITS) 46,304
3,000 NIPPON ELECTRIC GLASS COMPANY LIMITED (MISCELLANEOUS MANUFACTURING INDUSTRIES) 74,681
11,000 NIPPON EXPRESS COMPANY LIMITED (MOTOR FREIGHT TRANSPORTATION & WAREHOUSING) 62,430
2,000 NIPPON KAYAKU COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 17,706
8,000 NIPPON LIGHT METAL COMPANY LIMITED (METAL MINING) 22,090
3,000 NIPPON MEAT PACKERS INCORPORATED (FOOD & KINDRED PRODUCTS) 31,427
11,500 NIPPON MINING HOLDINGS INCORPORATED (OIL & GAS EXTRACTION) 97,022
18,000 NIPPON OIL CORPORATION (OIL & GAS EXTRACTION) 141,155
15 NIPPON PAPER GROUP INCORPORATED (PAPER & ALLIED PRODUCTS) 64,868
4,000 NIPPON SANSO CORPORATION (CHEMICALS & ALLIED PRODUCTS) 29,567
6,000 NIPPON SHEET GLASS COMPANY LIMITED (BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME
DEALERS) 33,441
2,000 NIPPON SHOKUBAI COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 23,772
89,000 NIPPON STEEL CORPORATION (PRIMARY METAL INDUSTRIES) 344,809
77 NIPPON TELEGRAPH & TELEPHONE CORPORATION (COMMUNICATIONS) 330,374
16,000 NIPPON YUSEN KABUSHIKI KAISHA (WATER TRANSPORTATION) 97,740
8,000 NISHI-NIPPON CITY BANK LIMITED (DEPOSITORY INSTITUTIONS)+ 43,636
4,000 NISHIMATSU CONSTRUCTION COMPANY LIMITED (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE
BUILDERS) 16,381
2,000 NISSAN CHEMICAL INDUSTRIES LIMITED (CHEMICALS & ALLIED PRODUCTS) 33,951
33,000 NISSAN MOTOR COMPANY LIMITED (AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS) 391,963
3,000 NISSHIN SEIFUN GROUP INCORPORATED (FOOD & KINDRED PRODUCTS) 30,663
121
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
JAPAN (CONTINUED)
12,000 NISSHIN STEEL COMPANY LIMITED (FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION
EQUIPMENT) $ 41,597
3,000 NISSHINBO INDUSTRIES INCORPORATED (TEXTILE MILL PRODUCTS) 33,619
1,400 NISSIN FOOD PRODUCTS COMPANY LIMITED (FOOD & KINDRED PRODUCTS) 43,296
600 NITORI COMPANY LIMITED (HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES) 31,249
2,400 NITTO DENKO CORPORATION (CHEMICALS & ALLIED PRODUCTS) 203,704
1,600 NOK CORPORATION (TRANSPORTATION EQUIPMENT) 43,093
25,400 NOMURA HOLDINGS INCORPORATED (SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES) 566,483
3 NOMURA REAL ESTATE OFFICE FUND (REITS) 25,463
300 NOMURA RESEARCH INSTITUTE LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 36,780
6,000 NSK LIMITED (PRIMARY METAL INDUSTRIES) 52,099
5,000 NTN CORPORATION (FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT) 39,635
18 NTT DATA CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 86,559
252 NTT DOCOMO INCORPORATED (COMMUNICATIONS) 372,540
3 NTT URBAN DEVELOPMENT CORPORATION (REAL ESTATE) 25,998
8,000 OBAYASHI CORPORATION (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 65,115
100 OBIC COMPANY LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 21,087
10,000 ODAKYU ELECTRIC RAILWAY COMPANY LIMITED (RAILROAD TRANSPORTATION) 61,937
11,000 OJI PAPER COMPANY LIMITED (PAPER & ALLIED PRODUCTS) 67,664
9,000 OKI ELECTRIC INDUSTRY COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS,
EXCEPT COMPUTER EQUIPMENT) 28,751
3,000 OKUMURA CORPORATION (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 16,517
3,000 OLYMPUS CORPORATION (GENERAL MERCHANDISE STORES) 88,190
3,100 OMRON CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 89,023
2,000 ONWARD KASHIYAMA COMPANY LIMITED (APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS &
SIMILAR MATERIALS) 35,344
600 ORACLE CORPORATION JAPAN (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 30,025
600 ORIENTAL LAND COMPANY LIMITED (AMUSEMENT & RECREATION SERVICES) 34,817
1,220 ORIX CORPORATION (MISCELLANEOUS RETAIL) 379,890
28,000 OSAKA GAS COMPANY LIMITED (ELECTRIC, GAS & SANITARY SERVICES) 101,818
2,600 PIONEER CORPORATION (HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES) 42,015
1,200 PROMISE COMPANY LIMITED (NON-DEPOSITORY CREDIT INSTITUTIONS) 72,591
2,100 QP CORPORATION (FOOD & KINDRED PRODUCTS) 21,250
69 RAKUTEN INCORPORATED (COMMUNICATIONS) 62,727
67 RESONA HOLDINGS INCORPORATED (DEPOSITORY INSTITUTIONS)+ 230,544
10,000 RICOH COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 195,412
700 RINNAI CORPORATION (BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS) 20,994
1,500 ROHM COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 158,666
400 RYOHIN KEIKAKU COMPANY LIMITED (MISCELLANEOUS RETAIL) 33,543
2,000 SANDEN CORPORATION (TRANSPORTATION EQUIPMENT) 8,802
2,000 SANKEN ELECTRIC COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT) 34,240
800 SANKYO COMPANY LIMITED (WHOLESALE TRADE NON-DURABLE GOODS) 55,055
1,100 SANTEN PHARMACEUTICAL COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 26,449
3,000 SANWA SHUTTER CORPORATION (BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS) 19,652
26,000 SANYO ELECTRIC COMPANY LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 71,351
5,000 SAPPORO HOLDINGS LIMITED (EATING & DRINKING PLACES) 26,168
78 SBI HOLDINGS INCORPORATED (HOLDING & OTHER INVESTMENT OFFICES)+ 44,136
3,000 SECOM COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 153,441
122
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
JAPAN (CONTINUED)
2,200 SEGA SAMMY HOLDINGS INCORPORATED (AMUSEMENT & RECREATION SERVICES) $ 89,346
1,700 SEIKO EPSON CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 46,941
2,000 SEINO TRANSPORTATION COMPANY LIMITED (MOTOR FREIGHT TRANSPORTATION & WAREHOUSING) 20,867
7,000 SEKISUI CHEMICAL COMPANY LIMITED (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE
BUILDERS) 59,295
7,000 SEKISUI HOUSE LIMITED (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 104,435
11,820 SEVEN & I HOLDINGS COMPANY LIMITED (FOOD STORES) 467,980
90 SFCG COMPANY LIMITED (SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES) 20,363
14,000 SHARP CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 248,003
900 SHIMACHU COMPANY LIMITED (MISCELLANEOUS RETAIL) 28,292
300 SHIMAMURA COMPANY LIMITED (APPAREL & ACCESSORY STORES) 34,894
1,300 SHIMANO INCORPORATED (HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES) 39,099
9,000 SHIMIZU CORPORATION (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 65,531
5,700 SHIN-ETSU CHEMICAL COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 309,456
8,000 SHINKO SECURITIES COMPANY LIMITED (SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES)+ 44,384
13,000 SHINSEI BANK LIMITED (DEPOSITORY INSTITUTIONS) 91,011
5,000 SHIONOGI & COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 82,031
5,000 SHISEIDO COMPANY LIMITED (APPAREL & ACCESSORY STORES) 93,033
8,000 SHIZUOKA BANK LIMITED (DEPOSITORY INSTITUTIONS) 80,748
16,000 SHOWA DENKO KK (CHEMICALS & ALLIED PRODUCTS) 71,096
2,900 SHOWA SHELL SEKIYU KK (OIL & GAS EXTRACTION) 32,918
800 SMC CORPORATION (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 124,656
10,900 SOFTBANK CORPORATION (HOLDING & OTHER INVESTMENT OFFICES) 319,499
3,700 SOJITZ HOLDINGS CORPORATION (WHOLESALE TRADE NON-DURABLE GOODS)+ 21,879
12,000 SOMPO JAPAN INSURANCE INCORPORATED (INSURANCE CARRIERS) 174,036
14,600 SONY CORPORATION (HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES) 676,041
2,000 STANLEY ELECTRIC COMPANY LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 42,651
500 SUMCO CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 26,848
3,000 SUMITOMO BAKELITE COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 27,171
21,000 SUMITOMO CHEMICAL COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 170,926
15,000 SUMITOMO CORPORATION (SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES) 213,594
10,300 SUMITOMO ELECTRIC INDUSTRIES LIMITED (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS:
PHOTOGRAPHIC, MEDICAL & OPTICAL) 163,207
7,000 SUMITOMO HEAVY INDUSTRIES LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 67,264
59,000 SUMITOMO METAL INDUSTRIES LIMITED (FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION
EQUIPMENT) 253,144
8,000 SUMITOMO METAL MINING COMPANY LIMITED (MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT
FUELS) 111,606
86 SUMITOMO MITSUI FINANCIAL GROUP INCORPORATED (DEPOSITORY INSTITUTIONS) 949,873
7,000 SUMITOMO OSAKA CEMENT COMPANY LIMITED (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 25,514
5,000 SUMITOMO REALTY & DEVELOPMENT COMPANY LIMITED (REAL ESTATE) 138,488
2,000 SUMITOMO RUBBER INDUSTRIES LIMITED (TRANSPORTATION EQUIPMENT) 26,134
18,000 SUMITOMO TRUST & BANKING COMPANY LIMITED (DEPOSITORY INSTITUTIONS) 208,292
3,000 SURUGA BANK LIMITED (DEPOSITORY INSTITUTIONS) 40,552
1,000 SUZUKEN COMPANY LIMITED (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL
& OPTICAL) 31,351
1,300 SYKLARK COMPANY LIMITED (EATING & DRINKING PLACES) 23,250
3,300 T&D HOLDINGS INCORPORATED (INSURANCE CARRIERS) 257,944
13,000 TAIHEIYO CEMENT CORPORATION (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 62,846
12,000 TAISEI CORPORATION (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 57,502
123
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
JAPAN (CONTINUED)
2,000 TAISHO PHARMACEUTICAL COMPANY LIMITED (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS:
PHOTOGRAPHIC, MEDICAL & OPTICAL) $ 40,272
2,000 TAIYO YUDEN COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT) 31,776
3,000 TAKARA HOLDINGS INCORPORATED (EATING & DRINKING PLACES) 18,352
4,000 TAKASHIMAYA COMPANY LIMITED (APPAREL & ACCESSORY STORES) 60,969
12,800 TAKEDA PHARMACEUTICAL COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 729,720
1,550 TAKEFUJI CORPORATION (HOLDING & OTHER INVESTMENT OFFICES) 97,583
1,000 TAKUMA COMPANY LIMITED (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 8,122
3,000 TANABE SEIYAKU COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 33,263
1,800 TDK CORPORATION (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 135,650
11,000 TEIJIN LIMITED (TEXTILE MILL PRODUCTS) 73,178
3,000 TEIKOKU OIL COMPANY LIMITED (OIL & GAS EXTRACTION)(A) 36,219
2,300 TERUMO CORPORATION (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL &
OPTICAL) 75,624
1,600 THK COMPANY LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 51,385
600 TIS INCORPORATED (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 16,211
13,000 TOBU RAILWAY COMPANY LIMITED (RAILROAD TRANSPORTATION) 68,369
3,000 TODA CORPORATION (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 13,458
2,200 TOHO COMPANY LIMITED TOKYO (MOTION PICTURES) 42,430
6,200 TOHOKU ELECTRIC POWER COMPANY INCORPORATED (ELECTRIC, GAS & SANITARY SERVICES) 134,061
3,000 TOKUYAMA CORPORATION (CHEMICALS & ALLIED PRODUCTS) 50,875
600 TOKYO BROADCASTING SYSTEM INCORPORATED (COMMUNICATIONS) 16,109
16,700 TOKYO ELECTRIC POWER COMPANY INCORPORATED (ELECTRIC, GAS & SANITARY SERVICES) 416,436
2,400 TOKYO ELECTRON LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 165,573
31,000 TOKYO GAS COMPANY LIMITED (ELECTRIC, GAS & SANITARY SERVICES) 135,641
1,700 TOKYO STEEL MANUFACTURING COMPANY LIMITED (FURNITURE & FIXTURES) 34,520
1,000 TOKYO STYLE COMPANY LIMITED (APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR
MATERIALS) 11,903
4,000 TOKYO TATEMONO COMPANY LIMITED (INSURANCE AGENTS, BROKERS & SERVICE) 43,636
13,000 TOKYU CORPORATION (TRANSPORTATION SERVICES) 87,587
6,000 TOKYU LAND CORPORATION (REAL ESTATE) 53,628
5,000 TONENGENERAL SEKIYU KK (OIL & GAS EXTRACTION) 50,892
8,000 TOPPAN PRINTING COMPANY LIMITED (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 110,926
20,000 TORAY INDUSTRIES INCORPORATED (TEXTILE MILL PRODUCTS) 163,806
42,000 TOSHIBA CORPORATION (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 244,078
7,000 TOSOH CORPORATION (CHEMICALS & ALLIED PRODUCTS) 34,970
3,700 TOSTEM INAX HOLDING CORPORATION (MISCELLANEOUS MANUFACTURING INDUSTRIES) 79,533
4,000 TOTO LIMITED (HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES) 37,145
2,800 TOYO SEIKAN KAISHA LIMITED (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 50,790
1,000 TOYO SUISAN KAISHA LIMITED (FOOD & KINDRED PRODUCTS) 15,268
9,000 TOYOBO COMPANY LIMITED (TEXTILE MILL PRODUCTS) 27,833
1,100 TOYODA GOSEI COMPANY LIMITED (TRANSPORTATION EQUIPMENT) 24,112
3,000 TOYOTA INDUSTRIES CORPORATION (TRANSPORTATION EQUIPMENT) 122,600
41,900 TOYOTA MOTOR CORPORATION (TRANSPORTATION EQUIPMENT) 2,289,014
2,000 TOYOTA TSUSHO CORPORATION (BUSINESS SERVICES) 54,206
1,500 TREND MICRO INCORPORATED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 52,634
15,000 UBE INDUSTRIES LIMITED JAPAN (CHEMICALS & ALLIED PRODUCTS) 44,223
700 UNI-CHARM CORPORATION (APPAREL & ACCESSORY STORES) 34,376
124
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
JAPAN (CONTINUED)
1,000 UNIDEN CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) $ 16,041
2,000 UNY COMPANY LIMITED (MISCELLANEOUS RETAIL) 31,997
1,500 USHIO INCORPORATED (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL &
OPTICAL) 35,748
380 USS COMPANY LIMITED (AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS) 25,893
2,000 WACOAL CORPORATION (APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS) 27,188
25 WEST JAPAN RAILWAY COMPANY (RAILROAD TRANSPORTATION) 105,565
216 YAHOO! JAPAN CORPORATION (BUSINESS SERVICES)+ 131,765
1,700 YAKULT HONSHA COMPANY LIMITED (FOOD & KINDRED PRODUCTS) 40,803
1,100 YAMADA DENKI COMPANY LIMITED (HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES) 126,822
2,800 YAMAHA CORPORATION (HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES) 49,482
2,400 YAMAHA MOTOR COMPANY LIMITED (TRANSPORTATION EQUIPMENT) 59,337
7,900 YAMANOUCHI PHARMACEUTICAL COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 300,025
5,000 YAMATO TRANSPORT COMPANY LIMITED (TRANSPORTATION SERVICES) 102,379
2,000 YAMAZAKI BAKING COMPANY LIMITED (FOOD & KINDRED PRODUCTS) 15,650
3,000 YASKAWA ELECTRIC CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT) 33,874
2,700 YOKOGAWA ELECTRIC CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT) 48,059
3,000 ZEON CORPORATION (CHEMICALS & ALLIED PRODUCTS) 38,692
41,389,534
---------------
LUXEMBOURG - 0.03%
3,124 STOLT OFFSHORE SA (ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES)+ 49,099
---------------
NETHERLANDS - 4.56%
26,045 ABN AMRO HOLDINGS NV (DEPOSITORY INSTITUTIONS) 780,871
20,651 AEGON NV (INSURANCE CARRIERS) 382,151
3,846 AKZO NOBEL NV (CHEMICALS & ALLIED PRODUCTS) 204,096
6,810 ASML HOLDING NV (SEMICONDUCTOR EQUIPMENT MANUFACTURING & RELATED)+ 139,059
1,613 BUHRMANN NV (WHOLESALE TRADE DURABLE GOODS)+ 28,539
593 CORIO NV (REITS) 38,267
2,186 DSM NV (CHEMICALS & ALLIED PRODUCTS) 99,819
3,553 EUROPEAN AERONAUTIC DEFENCE & SPACE COMPANY (TRANSPORTATION BY AIR) 149,710
2,063 GETRONICS NV (BUSINESS SERVICES) 24,976
8,044 HAGEMEYER NV (WHOLESALE TRADE NON-DURABLE GOODS)+ 40,650
3,402 HEINEKEN NV (EATING & DRINKING PLACES) 129,124
529 IHC CALAND NV (OIL & GAS EXTRACTION)+ 53,049
27,490 ING GROEP NV (FINANCIAL SERVICES) 1,086,035
28,191 KONINKLIJKE (ROYAL) KPN NV (COMMUNICATIONS) 317,720
19,271 KONINKLIJKE (ROYAL) PHILIPS ELECTRONICS NV (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT &
COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 651,334
21,925 KONINKLIJKE AHOLD NV (FOOD STORES)+ 172,439
1,489 OCE NV (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 27,013
2,059 QIAGEN NV (HEALTH SERVICES)+ 30,442
753 RANDSTAD HOLDINGS NV (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 44,632
9,885 REED ELSEVIER NV (COMMUNICATIONS) 141,714
727 RODAMCO EUROPE NV (REITS) 72,992
58,297 ROYAL DUTCH SHELL PLC CLASS A (PETROLEUM REFINING & RELATED INDUSTRIES) 1,824,121
125
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
NETHERLANDS (CONTINUED)
2,332 ROYAL NUMICO NV (FOOD & KINDRED PRODUCTS)+ $ 103,179
6,028 TNT NV (TRANSPORTATION SERVICES) 208,706
8,297 UNILEVER NV (FOOD & KINDRED PRODUCTS) 576,139
2,818 VEDIOR NV (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 55,221
3,327 VNU NV (COMMUNICATIONS) 108,174
349 WERELDHAVE NV (REITS) 39,249
4,362 WOLTERS KLUWER NV (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 108,788
7,638,209
---------------
NEW ZEALAND - 0.17%
18,500 AUCKLAND INTERNATIONAL AIRPORT LIMITED (CONSTRUCTION SPECIAL TRADE CONTRACTORS) 23,233
4,376 CONTACT ENERGY LIMITED (ELECTRIC, GAS & SANITARY SERVICES) 20,904
4,714 FISHER & PAYKEL APPLIANCES HOLDINGS LIMITED (HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES) 12,304
8,696 FISHER & PAYKEL HEALTHCARE CORPORATION (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS:
PHOTOGRAPHIC, MEDICAL & OPTICAL) 22,162
7,167 FLETCHER BUILDING LIMITED (BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS) 39,267
7,892 SKY CITY ENTERTAINMENT GROUP LIMITED (HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES) 26,041
3,579 SKY NETWORK TELEVISION LIMITED (COMMUNICATIONS) 14,079
31,598 TELECOM CORPORATION OF NEW ZEALAND LIMITED (COMMUNICATIONS) 107,763
705 TENON LIMITED (LUMBER & WOOD PRODUCTS, EXCEPT FURNITURE)+ 1,471
4,703 TOWER LIMITED (BUSINESS SERVICES)+ 7,556
3,233 VECTOR LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 5,593
2,606 WAREHOUSE GROUP LIMITED (GENERAL MERCHANDISE STORES) 6,208
372 WASTE MANAGEMENT NZ LIMITED (ADMINISTRATION OF ENVIRONMENTAL QUALITY & HOUSING PROGRAMS) 1,944
288,525
---------------
NORWAY - 0.76%
10,214 DEN NORSKE BANK ASA (DEPOSITORY INSTITUTIONS) 137,540
654 FRONTLINE LIMITED (WATER TRANSPORTATION) 21,805
2,006 NORSK HYDRO ASA (OIL & GAS EXTRACTION) 277,931
1,800 NORSKE SKOGINDUSTRIER ASA (PAPER & ALLIED PRODUCTS) 30,487
2,642 ORKLA ASA (FOOD & KINDRED PRODUCTS) 131,020
831 PETROLEUM GEO-SERVICES ASA (OIL & GAS EXTRACTION)+ 38,737
500 PROSAFE ASA (OIL & GAS EXTRACTION) 26,131
919 SCHIBSTED ASA (COMMUNICATIONS) 25,311
33 SHIP FINANCE INTERNATIONAL LIMITED (WATER TRANSPORTATION) 556
9,812 STATOIL ASA (PETROLEUM REFINING & RELATED INDUSTRIES) 282,969
400 STOLT-NIELSEN ASA (WATER TRANSPORTATION) 12,390
3,964 STOREBRAND ASA (INSURANCE CARRIERS) 44,306
2,116 TANDBERG ASA (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 19,130
800 TANDBERG TELEVISION ASA (COMMUNICATIONS)+ 16,785
11,693 TELENOR ASA (COMMUNICATIONS) 125,787
3,383 TOMRA SYSTEMS ASA (ADMINISTRATION OF ENVIRONMENTAL QUALITY & HOUSING PROGRAMS) 27,101
3,400 YARA INTERNATIONAL ASA (AGRICULTURAL SERVICES) 54,085
1,272,071
---------------
126
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
PORTUGAL - 0.30%
4,914 BANCO BPI SA (DEPOSITORY INSTITUTIONS) $ 35,016
27,491 BANCO COMERCIAL PORTUGUES SA (DEPOSITORY INSTITUTIONS) 87,619
1,543 BANCO ESPIRITO SANTO SA (DEPOSITORY INSTITUTIONS) 28,142
5,340 BRISA-AUTO ESTRADAS DE PORTUGAL SA (SOCIAL SERVICES) 52,547
3,821 CIMPOR CIMENTOS DE PORTUGAL SA (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 25,514
24,710 ELECTRICIDADE DE PORTUGAL SA (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT) 97,022
716 JERONIMO MARTINS (WHOLESALE TRADE NON-DURABLE GOODS) 12,382
10,266 PORTUGAL TELECOM SGPS SA (COMMUNICATIONS) 124,533
1,398 PT MULTIMEDIA SERVICOS DE TELECOMUNICACOES E MULTIMEDIA SGPS SA (COMMUNICATIONS) 17,111
17,058 SONAE SGPS SA (GENERAL MERCHANDISE STORES)+ 27,907
507,793
---------------
SINGAPORE - 0.82%
9,000 ALLGREEN PROPERTIES LIMITED (REAL ESTATE) 8,689
11,000 ASCENDAS REIT (REITS) 14,772
15,000 CAPITALAND LIMITED (REAL ESTATE) 44,930
14,300 CAPITAMALL TRUST (REITS) 20,974
19,000 CHARTERED SEMICONDUCTOR MANUFACTURING LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT &
COMPONENTS, EXCEPT COMPUTER EQUIPMENT)+ 18,461
8,000 CITY DEVELOPMENTS LIMITED (REAL ESTATE) 53,470
29,000 COMFORTDELGRO CORPORATION LIMITED (TRANSPORTATION SERVICES) 30,151
1,000 CREATIVE TECHNOLOGY LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 7,303
4,000 DATACRAFT ASIA LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT)+ 4,520
17,000 DBS GROUP HOLDINGS LIMITED (DEPOSITORY INSTITUTIONS) 171,489
3,000 FRASER & NEAVE LIMITED (FOOD & KINDRED PRODUCTS) 36,761
2,000 HAW PAR CORPORATION LIMITED (BUSINESS SERVICES) 7,365
2,006 JARDINE CYCLE & CARRIAGE LIMITED (WHOLESALE TRADE NON-DURABLE GOODS) 13,780
8,000 KEPPEL CORPORATION LIMITED (BUSINESS SERVICES) 68,323
7,000 KEPPEL LAND LIMITED (REAL ESTATE) 21,401
9,000 NEPTUNE ORIENT LINES LIMITED (WATER TRANSPORTATION) 12,142
36,200 OVERSEA-CHINESE BANKING CORPORATION (DEPOSITORY INSTITUTIONS) 150,101
1,000 OVERSEAS UNION ENTERPRISE LIMITED (HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES) 7,365
11,000 PARKWAY HOLDINGS LIMITED (HEALTH SERVICES) 16,747
15,980 SEMBCORP INDUSTRIES LIMITED (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 34,613
5,035 SEMBCORP LOGISTICS LIMITED (MOTOR FREIGHT TRANSPORTATION & WAREHOUSING) 5,516
9,000 SEMBCORP MARINE LIMITED (TRANSPORTATION EQUIPMENT) 15,874
8,000 SINGAPORE AIRLINES LIMITED (TRANSPORTATION SERVICES) 69,313
9,000 SINGAPORE EXCHANGE LIMITED (BUSINESS SERVICES) 22,279
2,000 SINGAPORE LAND LIMITED (REAL ESTATE) 8,602
25,000 SINGAPORE POST LIMITED (TRANSPORTATION SERVICES) 18,566
19,000 SINGAPORE PRESS HOLDINGS LIMITED (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 52,913
21,000 SINGAPORE TECHNOLOGIES ENGINEERING LIMITED (BUILDING CONSTRUCTION-GENERAL CONTRACTORS &
OPERATIVE BUILDERS) 40,288
95,000 SINGAPORE TELECOMMUNICATIONS LIMITED (COMMUNICATIONS) 155,800
11,000 SMRT CORPORATION LIMITED (TRANSPORTATION SERVICES) 7,624
18,000 STATS CHIPPAC LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT)+ 14,370
12,000 SUNTEC REIT (REITS) 9,803
16,000 UNITED OVERSEAS BANK LIMITED (DEPOSITORY INSTITUTIONS) 154,470
127
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
SINGAPORE (CONTINUED)
9,000 UNITED OVERSEAS LAND LIMITED (REAL ESTATE) $ 16,097
4,000 VENTURE CORPORATION LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT) 31,686
8,000 WING TAI HOLDINGS LIMITED (REAL ESTATE) 9,407
1,375,965
---------------
SPAIN - 3.66%
3,196 ABERTIS INFRAESTRUCTURAS SA (SOCIAL SERVICES) 82,845
363 ACCIONA SA (HEAVY CONSTRUCTION OTHER THAN BUILDING CONSTRUCTION CONTRACTS) 56,550
2,952 ACERINOX SA (FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT) 48,331
3,773 ACTIVIDADES DE CONSTRUCCION Y SERVICIOS SA (HEAVY CONSTRUCTION OTHER THAN BUILDING
CONSTRUCTION CONTRACTS) 146,589
10 AGUAS DE BARCELONA (WATER SUPPLY) 262
4,007 ALTADIS SA (TOBACCO PRODUCTS) 179,669
1,019 ANTENA 3 DE TELEVISION SA (COMMUNICATIONS) 26,291
49,496 BANCO BILBAO VIZCAYA ARGENTARIA SA (DEPOSITORY INSTITUTIONS) 1,032,891
12,068 BANCO POPULAR ESPANOL SA (DEPOSITORY INSTITUTIONS) 177,836
86,795 BANCO SANTANDER CENTRAL HISPANO SA (DEPOSITORY INSTITUTIONS) 1,267,456
3,224 CINTRA CONCESIONES DE INFRAESTRUCTURAS DE TRANSPORTE SA (TRANSPORTATION SERVICES) 41,844
1,699 CORP MAPFRE SA (INSURANCE CARRIERS) 34,611
1,410 EBRO PULEVA SA (AGRICULTURAL PRODUCTION CROPS) 25,699
13,638 ENDESA SA (ELECTRIC, GAS & SANITARY SERVICES) 440,287
762 FOMENTO DE CONSTRUCCIONES Y CONTRATAS SA (HEAVY CONSTRUCTION OTHER THAN BUILDING CONSTRUCTION
CONTRACTS) 56,422
2,075 GAMESA CORPORATION TECNOLOGICA SA (ELECTRIC, GAS & SANITARY SERVICES) 39,907
2,692 GAS NATURAL SDG SA (ELECTRIC, GAS & SANITARY SERVICES) 77,937
871 GRUPO FERROVIAL SA (HEAVY CONSTRUCTION OTHER THAN BUILDING CONSTRUCTION CONTRACTS) 70,404
12,000 IBERDROLA SA (ELECTRIC, GAS & SANITARY SERVICES) 387,406
8,826 IBERIA LINEAS AEREAS DE ESPANA SA (TRANSPORTATION BY AIR) 24,387
2,090 INDRA SISTEMAS SA (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 42,500
2,996 INDUSTRIA DE DISENO TEXTIL SA (APPAREL & ACCESSORY STORES) 115,638
513 INMOBILIARIA COLONIAL SA (REAL ESTATE) 36,058
618 METROVACESA SA (REAL ESTATE) 52,500
1,473 NH HOTELES SA (HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES) 25,366
1,224 PROMOTORA DE INFORMACIONES SA (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 22,620
13,058 REPSOL YPF SA (OIL & GAS EXTRACTION) 370,925
1,811 SACYR VALLEHERMOSO SA (REAL ESTATE) 61,670
1,092 SOCIEDAD GENERAL DE AGUAS DE BARCELONA SA (ELECTRIC, GAS & SANITARY SERVICES) 28,659
457 SOGECABLE SA (COMMUNICATIONS)+ 18,270
2,598 TELEFONICA PUBLICIDAD E INFORMACION SA (COMMUNICATIONS) 28,965
65,113 TELEFONICA SA (COMMUNICATIONS) 1,021,854
1,943 UNION FENOSA SA (ELECTRIC, GAS & SANITARY SERVICES) 73,865
2,270 ZELTIA SA (HEALTH SERVICES)+ 17,991
6,134,505
---------------
SWEDEN - 2.41%
1,292 ALFA LAVAL AB (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL) 34,753
4,687 ASSA ABLOY AB CLASS B (FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT) 86,958
4,614 ATLAS COPCO AB A SHARES (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 129,738
3,306 ATLAS COPCO AB B SHARES (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 86,380
128
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
SWEDEN (CONTINUED)
558 AXFOOD AB (FOOD & KINDRED PRODUCTS) $ 13,863
763 BILLERUD AKTIEBOLAG (PAPER & ALLIED PRODUCTS) 12,246
1,399 CAPIO AB (HEALTH SERVICES)+ 26,135
674 CASTELLUM AB (REAL ESTATE) 28,514
725 D CARNEGIE & COMPANY AB (HOLDING & OTHER INVESTMENT OFFICES) 15,266
3,907 ELECTROLUX AB (HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES) 112,116
1,078 ELEKTA AB CLASS B (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL &
OPTICAL) 17,786
2,481 ENIRO AB (COMMUNICATIONS) 28,669
1,335 FABEGE AB (REAL ESTATE) 28,111
2,975 GAMBRO AB CLASS A (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL &
OPTICAL) 35,524
1,442 GAMBRO AB CLASS B (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL &
OPTICAL) 17,311
2,633 GETINGE AB (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL) 42,596
6,830 HENNES & MAURITZ AB CLASS B (APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR
MATERIALS) 249,049
517 HOGANAS AB (FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT) 12,546
931 HOLMEN AB (PAPER & ALLIED PRODUCTS) 39,327
581 KUNGSLEDEN (PROPERTIES)+ 22,081
2,686 LUNDIN PETROLEUM AB (OIL & GAS EXTRACTION)+ 31,038
761 MODERN TIMES GROUP AB CLASS B (COMMUNICATIONS)+ 35,761
31,359 NORDEA AB (DEPOSITORY INSTITUTIONS) 387,533
1,424 OMX AB (BUSINESS SERVICES)+ 27,242
550 ORIFLAME COSMETICS SA (APPAREL & ACCESSORY STORES) 18,325
2,851 SANDVIK AB (BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS) 168,567
1,403 SAS AB (TRANSPORTATION BY AIR)+ 19,635
1,398 SCANIA AB (TRANSPORTATION EQUIPMENT) 60,669
4,707 SECURITAS AB (BUSINESS SERVICES) 90,653
7,012 SKANDINAVISKA ENSKILDA BANKEN AB (DEPOSITORY INSTITUTIONS) 173,758
5,840 SKANSKA AB (HEAVY CONSTRUCTION OTHER THAN BUILDING CONSTRUCTION CONTRACTS) 95,602
6,340 SKF AB (FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT) 103,381
718 SSAB SVENSKT STAL AB A SHARES (FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION
EQUIPMENT) 34,386
300 SSAB SVENSKT STAL AB B SHARES (FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION
EQUIPMENT) 13,347
2,859 SVENSKA CELLULOSA AB (PAPER & ALLIED PRODUCTS) 125,541
7,814 SVENSKA HANDELSBANKEN (DEPOSITORY INSTITUTIONS) 217,209
5,125 SWEDISH MATCH AB (TOBACCO PRODUCTS) 70,079
5,186 TELE2 AB (COMMUNICATIONS) 61,259
215,937 TELEFONAKTIEBOLAGET LM ERICSSON CLASS B (COMMUNICATIONS) 820,663
27,911 TELIASONERA AB (COMMUNICATIONS) 167,355
1,192 TRELLEBORG AB (MISCELLANEOUS MANUFACTURING INDUSTRIES) 27,778
1,495 VOLVO AB A SHARES (TRANSPORTATION EQUIPMENT) 68,334
3,279 VOLVO AB B SHARES (TRANSPORTATION EQUIPMENT) 153,456
267 WIHLBORGS FASTIGHETER AB (REAL ESTATE)+ 8,125
5,917 WM-DATA AB (BUSINESS SERVICES) 19,373
4,038,038
---------------
SWITZERLAND - 6.69%
28,499 ABB LIMITED (HOLDING & OTHER INVESTMENT OFFICES)+ 359,612
1,802 ADECCO SA (BUSINESS SERVICES) 100,699
1,023 CIBA SPECIALTY CHEMICALS AG (CHEMICALS & ALLIED PRODUCTS) 61,169
129
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
SWITZERLAND (CONTINUED)
3,866 CLARIANT AG (CHEMICALS & ALLIED PRODUCTS) $ 59,903
7,051 COMPAGNIE FINANCIERE RICHEMONT AG (GENERAL MERCHANDISE STORES) 338,041
17,718 CREDIT SUISSE GROUP (NON-DEPOSITORY CREDIT INSTITUTIONS) 994,187
60 GEBERIT AG (BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS) 57,301
104 GIVAUDAN (CHEMICALS & ALLIED PRODUCTS) 79,936
2,612 HOLCIM LIMITED (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 207,974
622 KUDELSKI SA (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 17,725
139 KUEHNE & NAGEL INTERNATIONAL AG (TRANSPORTATION SERVICES)+ 45,049
54 KUONI REISEN HOLDING (AMUSEMENT & RECREATION SERVICES) 28,001
1,354 LOGITECH INTERNATIONAL SA (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT)+ 54,112
610 LONZA GROUP AG (CHEMICALS & ALLIED PRODUCTS) 41,808
502 MICRONAS SEMICONDUCTOR HOLDING AG (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT)+ 16,000
5,851 NESTLE SA (FOOD & KINDRED PRODUCTS) 1,736,921
303 NOBEL BIOCARE HOLDING AG (APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR
MATERIALS)+ 67,461
33,773 NOVARTIS AG (CHEMICALS & ALLIED PRODUCTS) 1,878,221
672 PHONAK HOLDING AG (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL &
OPTICAL) 38,248
633 PSP SWISS PROPERTY AG (REAL ESTATE)+ 31,513
84 RIETER HOLDING AG (CHEMICALS & ALLIED PRODUCTS) 33,506
10,269 ROCHE HOLDING AG (HEALTH SERVICES) 1,528,948
840 SCHINDLER HOLDING AG (BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS) 44,782
80 SERONO SA CLASS B (CHEMICALS & ALLIED PRODUCTS) 55,751
70 SGS SOCIETE GENERALE DE SURVEILLANCE HOLDING SA (BUSINESS SERVICES) 64,864
104 SIG HOLDING AG (MACHINERY)+ 22,178
9,323 STMICROELECTRONICS NV (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 172,410
123 STRAUMANN HOLDING AG (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL &
OPTICAL) 28,022
57 SULZER AG (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 38,892
461 SWATCH GROUP AG (BEARER SHARES) (APPAREL & ACCESSORY STORES) 77,408
798 SWATCH GROUP AG (REGISTERED SHARES) (APPAREL & ACCESSORY STORES) 27,791
4,699 SWISS REINSURANCE (INSURANCE CARRIERS) 328,369
261 SWISSCOM AG (COMMUNICATIONS) 84,587
1,521 SYNGENTA AG (CHEMICALS & ALLIED PRODUCTS)+ 213,744
701 SYNTHES INCORPORATED (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL &
OPTICAL)+ 76,894
15,110 UBS AG (FINANCIAL SERVICES) 1,659,764
96 UNAXIS HOLDING AG (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 27,394
52 VALORA HOLDING AG (GENERAL MERCHANDISE STORES) 10,999
2,118 ZURICH FINANCIAL SERVICES AG (FINANCIAL SERVICES)+ 497,555
11,207,739
---------------
UNITED KINGDOM - 21.67%
7,885 3I GROUP PLC (HOLDING & OTHER INVESTMENT OFFICES) 128,850
9,022 AEGIS GROUP PLC (COMMUNICATIONS) 21,435
4,678 AGGREKO PLC (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 25,704
3,479 ALLIANCE UNICHEM PLC (WHOLESALE TRADE NON-DURABLE GOODS) 54,158
5,500 AMEC PLC (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 38,510
9,212 AMVESCAP PLC (HOLDING & OTHER INVESTMENT OFFICES) 85,947
20,872 ANGLO AMERICAN PLC (COAL MINING) 804,317
130
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
UNITED KINGDOM (CONTINUED)
21,729 ARM HOLDINGS PLC (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) $ 50,305
2,160 ARRIVA PLC (TRANSPORTATION BY AIR) 23,098
4,330 ASSOCIATED BRITISH PORTS HOLDINGS PLC (WATER TRANSPORTATION) 54,429
22,924 ASTRAZENECA PLC (CHEMICALS & ALLIED PRODUCTS) 1,155,022
34,774 AVIVA PLC (INSURANCE CARRIERS) 483,031
15,216 BAA PLC (CONSTRUCTION SPECIAL TRADE CONTRACTORS) 219,158
45,706 BAE SYSTEMS PLC (TRANSPORTATION BY AIR) 334,117
6,974 BALFOUR BEATTY PLC (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 45,074
93,438 BARCLAYS PLC (DEPOSITORY INSTITUTIONS) 1,093,359
3,107 BARRATT DEVELOPMENTS PLC (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 57,166
7,495 BBA GROUP PLC (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 36,559
1,481 BELLWAY PLC (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 31,778
1,398 BERKELEY GROUP HOLDINGS PLC (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 28,782
51,650 BG GROUP PLC (OIL & GAS EXTRACTION) 645,659
36,230 BHP BILLITON PLC (COAL MINING) 661,880
7,231 BOC GROUP PLC (CHEMICALS & ALLIED PRODUCTS) 194,353
7,303 BOOTS GROUP PLC (HEALTH SERVICES)+ 91,293
1,540 BOVIS HOMES GROUP PLC (BUILDING) 24,000
301,049 BP PLC (OIL & GAS EXTRACTION) 3,457,327
10,766 BRAMBLES INDUSTRIES PLC (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 80,572
3,278 BRITANNIC GROUP PLC (INSURANCE CARRIERS) 38,186
8,987 BRITISH AIRWAYS PLC (TRANSPORTATION BY AIR)+ 55,157
22,952 BRITISH AMERICAN TOBACCO PLC (TOBACCO PRODUCTS) 555,885
7,327 BRITISH LAND COMPANY PLC (REAL ESTATE) 157,979
17,688 BRITISH SKY BROADCASTING PLC (COMMUNICATIONS) 165,949
3,325 BRIXTON PLC (REAL ESTATE) 28,422
122,314 BT GROUP PLC (COMMUNICATIONS) 471,771
5,029 BUNZL PLC (MISCELLANEOUS MANUFACTURING INDUSTRIES) 59,675
4,732 BURBERRY GROUP PLC (APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS) 38,106
30,106 CADBURY SCHWEPPES PLC (FOOD & KINDRED PRODUCTS) 299,193
9,985 CAPITA GROUP PLC (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 79,714
2,472 CARNIVAL PLC (WATER TRANSPORTATION) 121,545
5,393 CATTLES PLC (NON-DEPOSITORY CREDIT INSTITUTIONS) 34,504
52,959 CENTRICA PLC (ELECTRIC, GAS & SANITARY SERVICES)+ 259,012
1,952 CLOSE BROTHERS GROUP PLC (HOLDING & OTHER INVESTMENT OFFICES) 36,169
18,480 COBHAM PLC (TRANSPORTATION BY AIR) 60,362
31,640 COMPASS GROUP PLC (FOOD & KINDRED PRODUCTS) 125,473
3,478 COOKSON GROUP PLC (MISCELLANEOUS MANUFACTURING INDUSTRIES)+ 31,242
68,222 CORUS GROUP PLC (FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT) 104,306
4,923 DAILY MAIL & GENERAL TRUST (COMMUNICATIONS) 59,360
3,096 DAVIS SERVICE GROUP PLC (MISCELLANEOUS MANUFACTURING INDUSTRIES) 26,801
3,029 DE LA RUE PLC (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 29,369
42,285 DIAGEO PLC (FOOD & KINDRED PRODUCTS) 665,974
25,726 DSG INTERNATIONAL PLC (GENERAL MERCHANDISE STORES) 82,465
7,143 ELECTROCOMPONENTS PLC (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 34,749
3,536 EMAP PLC (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 54,124
131
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
UNITED KINGDOM (CONTINUED)
11,014 EMI GROUP PLC (AMUSEMENT & RECREATION SERVICES) $ 48,414
5,396 ENTERPRISE INNS PLC (EATING & DRINKING PLACES) 89,251
5,841 FIRST CHOICE HOLIDAYS PLC (PERSONAL SERVICES) 21,844
6,649 FIRSTGROUP PLC (TRANSPORTATION SERVICES) 49,067
10,694 FKI PLC (MISCELLANEOUS MANUFACTURING INDUSTRIES) 23,411
27,162 FRIENDS PROVIDENT PLC (INSURANCE CARRIERS) 98,394
9,410 GALLAHER GROUP PLC (TOBACCO PRODUCTS) 137,332
6,512 GEORGE WIMPEY PLC (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 63,302
10,394 GKL PLC (TRANSPORTATION EQUIPMENT) 60,045
84,573 GLAXOSMITHKLINE PLC (CHEMICALS & ALLIED PRODUCTS) 2,211,414
2,241 GREAT PORTLAND ESTATES PLC (REAL ESTATE) 19,078
15,524 GROUP 4 SECURICOR PLC (SOCIAL SERVICES) 51,044
12,689 GUS PLC (GENERAL MERCHANDISE STORES) 232,585
3,446 HAMMERSON PLC (REAL ESTATE) 74,240
10,005 HANSON PLC (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 131,066
19,601 HAYS PLC (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 55,254
56,298 HBOS PLC (DEPOSITORY INSTITUTIONS) 939,979
22,427 HILTON GROUP PLC (AMUSEMENT & RECREATION SERVICES) 151,573
7,061 HMV GROUP PLC (APPAREL & ACCESSORY STORES) 20,947
164,126 HSBC HOLDINGS PLC (DEPOSITORY INSTITUTIONS) 2,751,734
6,985 ICAP PLC (HOLDING & OTHER INVESTMENT OFFICES) 54,308
4,612 IMI PLC (MISCELLANEOUS MANUFACTURING INDUSTRIES) 45,353
16,463 IMPERIAL CHEMICAL INDUSTRIES PLC (CHEMICALS & ALLIED PRODUCTS) 98,966
10,505 IMPERIAL TOBACCO GROUP PLC (TOBACCO PRODUCTS) 311,553
1,252 INCHCAPE PLC (WHOLESALE TRADE NON-DURABLE GOODS) 56,708
5,814 INTERCONTINENTAL HOTELS GROUP PLC (HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES) 95,098
22,997 INTERNATIONAL POWER PLC (ELECTRIC, GAS & SANITARY SERVICES) 113,073
2,518 INTERTEK GROUP PLC (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 35,983
90,714 INVENSYS PLC (MISCELLANEOUS MANUFACTURING INDUSTRIES)+ 36,250
2,823 ISOFT GROUP PLC (ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES) 7,185
58,214 ITV PLC (COMMUNICATIONS) 120,611
21,047 J SAINSBURY PLC (FOOD & KINDRED PRODUCTS) 121,586
2,738 JOHNSON MATTHEY PLC (CHEMICALS & ALLIED PRODUCTS) 66,408
5,567 KELDA GROUP PLC (ELECTRIC, GAS & SANITARY SERVICES) 76,265
8,813 KESA ELECTRICALS PLC (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 47,773
35,567 KINGFISHER PLC (BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS) 147,998
6,883 LAND SECURITIES GROUP PLC (REAL ESTATE) 230,561
92,461 LEGAL & GENERAL GROUP PLC (INSURANCE CARRIERS) 228,112
3,540 LIBERTY INTERNATIONAL PLC (REAL ESTATE) 72,391
82,310 LLOYDS TSB GROUP PLC (DEPOSITORY INSTITUTIONS) 787,248
18,457 LOGICACMG PLC (BUSINESS SERVICES) 62,772
4,232 LONDON STOCK EXCHANGE PLC (BUSINESS SERVICES) 77,645
4,094 MAN GROUP PLC (BUSINESS SERVICES) 175,334
23,994 MARKS & SPENCER GROUP PLC (GENERAL MERCHANDISE STORES) 231,990
6,080 MEGGITT PLC (TRANSPORTATION BY AIR) 36,761
11,410 MFI FURNITURE PLC (HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES) 21,261
8,634 MISYS PLC (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 33,677
132
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
UNITED KINGDOM (CONTINUED)
6,753 MITCHELLS & BUTLERS PLC (EATING & DRINKING PLACES) $ 56,141
1,852 NATIONAL EXPRESS GROUP PLC (TRANSPORTATION SERVICES) 30,407
39,353 NATIONAL GRID PLC (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 391,431
3,769 NEXT PLC (APPAREL & ACCESSORY STORES) 108,047
79,390 OLD MUTUAL PLC (INSURANCE CARRIERS) 277,590
12,146 PEARSON PLC (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 168,398
3,973 PERSIMMON PLC (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 91,668
17,390 PILKINGTON PLC (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 48,946
6,673 PREMIER FARNELL PLC (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 24,695
3,063 PROVIDENT FINANCIAL PLC (NON-DEPOSITORY CREDIT INSTITUTIONS) 37,598
35,214 PRUDENTIAL PLC (INSURANCE CARRIERS) 408,388
4,177 PUNCH TAVERNS PLC (EATING & DRINKING PLACES) 61,142
10,019 RANK GROUP PLC (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 39,253
8,931 RECKITT BENCKISER PLC (CHEMICALS & ALLIED PRODUCTS) 314,370
17,755 REED ELSEVIER PLC (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 170,279
26,899 RENTOKIL INITIAL PLC (COMMUNICATIONS) 72,906
19,144 REUTERS GROUP PLC (COMMUNICATIONS) 131,880
8,361 REXAM PLC (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 80,985
15,415 RIO TINTO PLC (METAL MINING) 782,574
22,467 ROLLS ROYCE GROUP PLC (AEROSPACE, DEFENSE) 178,777
1,208,725 ROLLS ROYCE GROUP PLC CLASS B (AEROSPACE, DEFENSE) 2,142
44,241 ROYAL & SUN ALLIANCE INSURANCE GROUP (INSURANCE CARRIERS) 105,881
46,516 ROYAL BANK OF SCOTLAND GROUP PLC (DEPOSITORY INSTITUTIONS) 1,513,707
40,360 ROYAL DUTCH SHELL PLC CLASS B (OIL & GAS EXTRACTION) 1,312,680
12,943 SABMILLER PLC (EATING & DRINKING PLACES) 255,455
19,901 SAGE GROUP PLC (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 95,171
1,965 SCHRODERS PLC (HOLDING & OTHER INVESTMENT OFFICES) 40,593
11,404 SCOTTISH & NEWCASTLE PLC (FOOD & KINDRED PRODUCTS) 103,030
12,458 SCOTTISH & SOUTHERN ENERGY PLC (ELECTRIC, GAS & SANITARY SERVICES) 245,017
27,240 SCOTTISH POWER PLC (ELECTRIC, GAS & SANITARY SERVICES) 275,443
8,023 SERCO GROUP PLC (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 43,909
5,212 SEVERN TRENT PLC (WATER TRANSPORTATION) 101,148
29,371 SIGNET GROUP PLC (APPAREL & ACCESSORY STORES) 55,877
6,195 SLOUGH ESTATES PLC (REAL ESTATE) 71,791
13,861 SMITH & NEPHEW PLC (CHEMICALS & ALLIED PRODUCTS) 123,060
8,192 SMITHS GROUP PLC (MISCELLANEOUS MANUFACTURING INDUSTRIES) 139,909
3,481 SSL INTERNATIONAL PLC (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL &
OPTICAL) 19,459
14,419 STAGECOACH GROUP PLC (TRANSPORTATION SERVICES) 28,809
6,928 TATE & LYLE PLC (FOOD & KINDRED PRODUCTS) 68,730
8,276 TAYLOR WOODROW PLC (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 58,094
3,677 TENLENT PLC (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT)+ 32,230
115,009 TESCO PLC (FOOD & KINDRED PRODUCTS) 659,398
9,500 TOMKINS PLC (BUSINESS SERVICES) 55,499
1,903 TRAVIS PERKINS PLC (BUSINESS SERVICES) 55,182
3,378 TRINITY MIRROR PLC (COMMUNICATIONS) 33,453
39,597 UNILEVER PLC (FOOD & KINDRED PRODUCTS) 405,209
4,637 UNITED BUSINESS MEDIA PLC (COMMUNICATIONS) 58,453
133
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
UNITED KINGDOM (CONTINUED)
12,226 UNITED UTILITIES PLC (ELECTRIC, GAS & SANITARY SERVICES) $ 146,460
898,130 VODAFONE GROUP PLC (COMMUNICATIONS) 1,880,304
3,154 WHITBREAD PLC (EATING & DRINKING PLACES) 64,999
5,893 WILLIAM HILL PLC (AMUSEMENT & RECREATION SERVICES) 61,380
8,396 WOLSELEY PLC (WHOLESALE TRADE NON-DURABLE GOODS) 206,264
17,277 WPP GROUP PLC (BUSINESS SERVICES)+ 207,269
10,531 YELL GROUP PLC (COMMUNICATIONS) 99,625
36,325,324
---------------
TOTAL COMMON STOCKS (COST $122,417,142) 162,923,780
---------------
RIGHTS - 0.01%
1,156 SONAE BONUS RIGHTS+ 10,787
TOTAL RIGHTS (COST $5,545) 10,787
---------------
PREFERRED STOCKS - 0.00%
1,644 SYNGENTA+ 2,068
2,412 VINCI+ 5,174
TOTAL PREFERRED STOCKS (COST $0) 7,242
---------------
COLLATERAL FOR SECURITIES LENDING - 5.65%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 5.65%
9,478,754 BANK OF NEW YORK INSTITUTIONAL CASH RESERVE 9,478,754
---------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $9,478,754) 9,478,754
---------------
SHORT-TERM INVESTMENTS - 1.78%
2,985,692 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~++ 2,985,692
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $2,985,692) 2,985,692
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $134,887,133)* 104.69% $ 175,505,568
OTHER ASSETS AND LIABILITIES, NET (4.69) (7,865,648)
------ ---------------
TOTAL NET ASSETS 100.00% $ 167,639,920
====== ===============
+ NON-INCOME EARNING SECURITIES.
(B) SECURITY WAS ACQUIRED THROUGH A PRIVATE PLACEMENT AND MAY NOT BE PUBLICLY
SOLD WITHOUT REGISTRATION UNDER THE SECURITIES ACT OF 1933 (EXCLUDING 144A
ISSUES).
(A) SECURITY FAIR VALUED IN ACCORDANCE WITH THE PROCEDURES APPROVED BY THE
BOARD OF TRUSTEES.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
++ SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $2,985,692.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
134
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INTERNATIONAL VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 96.82%
AUSTRALIA - 4.05%
213,500 BLUESCOPE STEEL LIMITED (MISCELLANEOUS MANUFACTURING INDUSTRIES) $ 1,097,426
193,800 BORAL LIMITED (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 1,237,575
228,400 CSR LIMITED (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 729,263
25,200 NATIONAL AUSTRALIA BANK LIMITED (DEPOSITORY INSTITUTIONS) 680,135
228,000 QANTAS AIRWAYS (TRANSPORTATION BY AIR) 577,818
127,900 SANTOS LIMITED (OIL & GAS EXTRACTION) 1,041,995
561,900 TELSTRA CORPORATION LIMITED (COMMUNICATIONS) 1,504,470
6,868,682
---------------
AUSTRIA - 0.60%
7,300 VOESTALPINE AG (FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT)+ 1,021,423
---------------
BELGIUM - 1.39%
7,700 DEXIA SA (DEPOSITORY INSTITUTIONS)+ 199,130
60,300 FORTIS (DEPOSITORY INSTITUTIONS) 2,154,250
2,353,380
---------------
DENMARK - 0.37%
16,800 DANSKE BANK A/S (DEPOSITORY INSTITUTIONS) 623,405
---------------
FINLAND - 1.60%
8,860 KEMIRA GROWHOW OYJ (CHEMICALS & ALLIED PRODUCTS) 63,349
41,700 KEMIRA OYJ (CHEMICALS & ALLIED PRODUCTS) 726,685
51,800 RAUTARUUKKI OYJ (PRIMARY METAL INDUSTRIES) 1,913,357
2,703,391
---------------
FRANCE - 9.82%
6,753 ASSURANCES GENERALES DE FRANCE (INSURANCE CARRIERS) 815,093
39,700 BNP PARIBAS SA (DEPOSITORY INSTITUTIONS) 3,687,686
7,600 CNP ASSURANCES (INSURANCE AGENTS, BROKERS & SERVICE) 766,281
35,700 COMPAGNIE DE SAINT-GOBAIN (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 2,494,129
10,500 RALLYE SA (GENERAL MERCHANDISE STORES) 448,157
21,400 RENAULT SA (TRANSPORTATION EQUIPMENT) 2,275,685
20,400 SOCIETE GENERALE (DEPOSITORY INSTITUTIONS) 3,067,985
7,800 TOTAL SA (PETROLEUM REFINING & RELATED INDUSTRIES) 2,057,806
24,544 VALEO SA (TRANSPORTATION EQUIPMENT) 1,026,459
16,639,281
---------------
GERMANY - 5.64%
26,500 BASF AG (CHEMICALS & ALLIED PRODUCTS) 2,077,789
38,900 IKB DEUTSCHE INDUSTRIEBANK AG (DEPOSITORY INSTITUTIONS) 1,431,208
32,800 MAN AG (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 2,276,420
94,700 THYSSENKRUPP AG (PRIMARY METAL INDUSTRIES) 2,734,798
53,300 TUI AG (TRANSPORTATION BY AIR) 1,046,390
9,566,605
---------------
135
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
GREECE - 0.33%
77,700 INTRACOM SA (COMMUNICATIONS) $ 559,318
---------------
HONG KONG - 1.22%
284,000 CITIC PACIFIC LIMITED (MISCELLANEOUS RETAIL) 852,826
147,000 ORIENT OVERSEAS INTERNATIONAL LIMITED (WATER TRANSPORTATION) 497,316
652,500 SMARTONE TELECOMMUNICATIONS HOLDING LIMITED (COMMUNICATIONS) 714,801
2,064,943
---------------
IRELAND - 1.09%
76,900 IRISH LIFE & PERMANENT PLC (NON-DEPOSITORY CREDIT INSTITUTIONS) 1,845,197
---------------
ITALY - 2.85%
85,500 BENETTON GROUP SPA (APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS)+ 1,276,521
78,600 ENI SPA (PETROLEUM REFINING & RELATED INDUSTRIES) 2,236,516
225,700 IFIL INVESTMENTS SPA (MISCELLANEOUS SERVICES) 1,319,031
4,832,068
---------------
JAPAN - 24.64%
8,600 ACOM COMPANY LIMITED (NON-DEPOSITORY CREDIT INSTITUTIONS) 504,894
116,500 ASAHI BREWERIES LIMITED (FOOD & KINDRED PRODUCTS) 1,652,974
2,500 COCA-COLA WEST JAPAN COMPANY LIMITED (FOOD & KINDRED PRODUCTS) 59,367
179,000 COSMO OIL COMPANY LIMITED (OIL & GAS EXTRACTION) 938,343
56,500 DAIICHI SANKYO COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 1,288,896
42,200 HITACHI CAPITAL CORPORATION (NON-DEPOSITORY CREDIT INSTITUTIONS) 844,359
31,600 HITACHI MAXELL LIMITED (MISCELLANEOUS MANUFACTURING INDUSTRIES) 522,729
70,100 HOKKAIDO ELECTRIC POWER COMPANY INCORPORATED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT &
COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 1,503,844
24,600 HONDA MOTOR COMPANY LIMITED (TRANSPORTATION EQUIPMENT) 1,523,653
41,400 KANSAI ELECTRIC POWER COMPANY INCORPORATED (ELECTRIC, GAS & SANITARY SERVICES) 919,805
243,000 MARUBENI CORPORATION (BUSINESS SERVICES) 1,271,776
237,000 MITSUBISHI CHEMICAL HOLDINGS CORPORATION (CHEMICALS & ALLIED PRODUCTS)+ 1,461,869
58,600 NAMCO BANDAI HOLDINGS INCORPORATED (AMUSEMENT & RECREATION SERVICES) 802,576
33,000 NIKKO CORDIAL CORPORATION (FINANCIAL) 546,729
163,000 NIPPON OIL CORPORATION (OIL & GAS EXTRACTION) 1,278,241
540 NIPPON TELEGRAPH & TELEPHONE CORPORATION (COMMUNICATIONS) 2,316,907
117,400 NISSAN MOTOR COMPANY LIMITED (AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS) 1,394,437
152,000 NSK LIMITED (PRIMARY METAL INDUSTRIES) 1,319,830
1,200 NTT DOCOMO INCORPORATED (COMMUNICATIONS) 1,774,002
111,000 OJI PAPER COMPANY LIMITED (PAPER & ALLIED PRODUCTS) 682,787
14,100 PROMISE COMPANY LIMITED (NON-DEPOSITORY CREDIT INSTITUTIONS) 852,948
27,000 RICOH COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 527,613
44,500 RYOSAN COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 1,194,732
42,800 SANTEN PHARMACEUTICAL COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 1,029,091
42,800 SHOWA SHELL SEKIYU KK (OIL & GAS EXTRACTION) 485,818
118,000 SUMITOMO BAKELITE COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 1,068,717
101,000 SUMITOMO CORPORATION (SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES) 1,438,199
183,000 SUMITOMO TRUST & BANKING COMPANY LIMITED (DEPOSITORY INSTITUTIONS) 2,117,638
9,000 TAKEFUJI CORPORATION (HOLDING & OTHER INVESTMENT OFFICES) 566,610
136
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INTERNATIONAL VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
JAPAN (CONTINUED)
135,000 TANABE SEIYAKU COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) $ 1,496,814
265,000 TOHO GAS COMPANY LIMITED (PETROLEUM REFINING & RELATED INDUSTRIES) 1,069,456
32,900 TOKYO ELECTRIC POWER COMPANY INCORPORATED (ELECTRIC, GAS & SANITARY SERVICES) 820,404
220,000 TOSHIBA TEC CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 1,153,271
19,000 TOSTEM INAX HOLDING CORPORATION (MISCELLANEOUS MANUFACTURING INDUSTRIES) 408,411
90,100 TOYOTA MOTOR CORPORATION (TRANSPORTATION EQUIPMENT) 4,922,200
41,759,940
---------------
NETHERLANDS - 5.19%
29,600 ABN AMRO HOLDINGS NV (DEPOSITORY INSTITUTIONS) 887,447
171,156 AEGON NV (INSURANCE CARRIERS) 3,167,251
15,100 AKZO NOBEL NV (CHEMICALS & ALLIED PRODUCTS) 801,315
61,800 ING GROEP NV (FINANCIAL SERVICES) 2,441,504
47,800 ROYAL DUTCH SHELL PLC CLASS A (PETROLEUM REFINING & RELATED INDUSTRIES) 1,495,669
8,793,186
---------------
NORWAY - 1.17%
50,000 DEN NORSKE BANK ASA (DEPOSITORY INSTITUTIONS) 673,294
8,300 NORSK HYDRO ASA (OIL & GAS EXTRACTION) 1,149,963
10,420 YARA INTERNATIONAL ASA (AGRICULTURAL SERVICES) 165,754
1,989,011
---------------
PORTUGAL - 0.40%
211,400 BANCO COMERCIAL PORTUGUES SA (DEPOSITORY INSTITUTIONS) 673,771
---------------
SINGAPORE - 0.86%
673,878 MOBILONE LIMITED (COMMUNICATIONS) 980,050
358,000 NEPTUNE ORIENT LINES LIMITED (WATER TRANSPORTATION) 482,990
1,463,040
---------------
SPAIN - 3.91%
63,600 BANCO SANTANDER CENTRAL HISPANO SA (DEPOSITORY INSTITUTIONS) 928,743
106,300 ENDESA SA (ELECTRIC, GAS & SANITARY SERVICES) 3,431,775
79,800 REPSOL YPF SA (OIL & GAS EXTRACTION) 2,266,792
6,627,310
---------------
SWEDEN - 2.22%
22,200 FORENINGS SPARBANKEN AB (DEPOSITORY INSTITUTIONS) 625,653
254,200 NORDEA AB (DEPOSITORY INSTITUTIONS) 3,141,395
3,767,048
---------------
SWITZERLAND - 6.25%
10,800 CIBA SPECIALTY CHEMICALS AG (CHEMICALS & ALLIED PRODUCTS) 645,771
8,600 CONVERIUM HOLDING AG (INSURANCE CARRIERS) 107,199
51,000 CREDIT SUISSE GROUP (NON-DEPOSITORY CREDIT INSTITUTIONS) 2,861,696
2,500 GEORG FISCHER AG (TRANSPORTATION EQUIPMENT)+ 1,114,179
2,100 RIETER HOLDING AG (CHEMICALS & ALLIED PRODUCTS) 837,648
12,900 SAURER AG (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 1,029,111
3,000 SWISSCOM AG (COMMUNICATIONS) 972,270
137
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
SWITZERLAND (CONTINUED)
13,600 UBS AG (FINANCIAL SERVICES) $ 1,493,898
2,000 VALORA HOLDING AG (GENERAL MERCHANDISE STORES) 423,043
5,200 VERWALTUNGS-UND PRIVAT-BANK AG (DEPOSITORY INSTITUTIONS) 1,108,887
10,593,702
---------------
UNITED KINGDOM - 23.22%
106,800 ALFRED MCALPINE GROUP PLC (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 868,398
78,300 ALLIANCE & LEICESTER PLC (DEPOSITORY INSTITUTIONS) 1,681,443
35,100 ARRIVA PLC (TRANSPORTATION BY AIR) 375,351
18,700 ASTRAZENECA PLC (CHEMICALS & ALLIED PRODUCTS) 942,196
114,500 AVIVA PLC (INSURANCE CARRIERS) 1,590,471
323,400 BARCLAYS PLC (DEPOSITORY INSTITUTIONS) 3,784,247
48,300 BARRATT DEVELOPMENTS PLC (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 888,679
11,431 BOOTS GROUP PLC (HEALTH SERVICES)+ 142,895
164,400 BRADFORD & BINGLEY PLC (NON-DEPOSITORY CREDIT INSTITUTIONS) 1,426,007
334,200 BRIT INSURANCE HOLDINGS PLC (INSURANCE CARRIERS) 564,674
479,687 BT GROUP PLC (COMMUNICATIONS) 1,850,175
186,000 DS SMITH PLC (PAPER & ALLIED PRODUCTS) 583,300
529,200 DSG INTERNATIONAL PLC (GENERAL MERCHANDISE STORES) 1,696,360
78,400 FIRSTGROUP PLC (TRANSPORTATION SERVICES) 578,564
78,300 GEORGE WIMPEY PLC (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 761,138
220,900 GKL PLC (TRANSPORTATION EQUIPMENT) 1,276,113
31,300 GLAXOSMITHKLINE PLC (CHEMICALS & ALLIED PRODUCTS) 818,432
175,800 HANSON PLC (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 2,302,990
79,000 HBOS PLC (DEPOSITORY INSTITUTIONS) 1,319,023
172,200 JJB SPORTS PLC (APPAREL & ACCESSORY STORES) 551,242
341,500 LLOYDS TSB GROUP PLC (DEPOSITORY INSTITUTIONS) 3,266,253
237,100 NORTHERN FOODS PLC (FOOD & KINDRED PRODUCTS) 401,641
506,900 OLD MUTUAL PLC (INSURANCE CARRIERS) 1,772,393
577,400 PILKINGTON PLC (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 1,625,151
221,200 ROYAL & SUN ALLIANCE INSURANCE GROUP (INSURANCE CARRIERS) 529,393
109,400 ROYAL DUTCH SHELL PLC CLASS B (OIL & GAS EXTRACTION) 3,558,158
231,200 SCOTTISH POWER PLC (ELECTRIC, GAS & SANITARY SERVICES) 2,337,828
97,800 TATE & LYLE PLC (FOOD & KINDRED PRODUCTS) 970,235
127,300 TAYLOR WOODROW PLC (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 893,535
39,356,285
---------------
TOTAL COMMON STOCKS (COST $116,153,302) 164,100,986
---------------
138
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INTERNATIONAL VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COLLATERAL FOR SECURITIES LENDING - 9.90%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 9.90%
16,780,647 BANK OF NEW YORK INSTITUTIONAL CASH RESERVE $ 16,780,647
---------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $16,780,647) 16,780,647
---------------
SHORT-TERM INVESTMENTS - 2.62%
4,429,719 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~++ 4,429,719
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $4,429,719) 4,429,719
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $137,363,668)* 109.34% $ 185,311,352
OTHER ASSETS AND LIABILITIES, NET (9.34) (15,824,188)
------ ---------------
TOTAL NET ASSETS 100.00% $ 169,487,164
====== ===============
+ NON-INCOME EARNING SECURITIES.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
++ SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $4,429,719.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
139
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE CAP APPRECIATION PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 98.74%
AMUSEMENT & RECREATION SERVICES - 1.23%
49,420 INTERNATIONAL GAME TECHNOLOGY $ 1,740,572
---------------
APPAREL & ACCESSORY STORES - 2.33%
29,020 ABERCROMBIE & FITCH COMPANY CLASS A 1,691,866
41,270 NORDSTROM INCORPORATED 1,616,959
3,308,825
---------------
BUSINESS SERVICES - 5.99%
37,810 ADOBE SYSTEMS INCORPORATED 1,320,325
39,600 CITRIX SYSTEMS INCORPORATED+ 1,500,840
11,800 IRON MOUNTAIN INCORPORATED+ 480,732
50,490 MICROSOFT CORPORATION 1,373,833
40,470 MONSTER WORLDWIDE INCORPORATED+ 2,017,834
46,630 ROBERT HALF INTERNATIONAL INCORPORATED 1,800,385
8,493,949
---------------
CHEMICALS & ALLIED PRODUCTS - 9.70%
34,410 BIOGEN IDEC INCORPORATED+ 1,620,711
31,800 ELI LILLY & COMPANY<< 1,758,540
24,270 GENZYME CORPORATION+ 1,631,429
28,710 GILEAD SCIENCES INCORPORATED+ 1,786,336
47,950 MERCK & COMPANY INCORPORATED 1,689,279
20,820 MONSANTO COMPANY 1,764,495
30,960 PROCTER & GAMBLE COMPANY 1,783,915
35,370 ROHM & HAAS COMPANY 1,728,532
13,763,237
---------------
COAL MINING - 1.36%
38,200 PEABODY ENERGY CORPORATION 1,925,662
---------------
COMMUNICATIONS - 3.79%
60,390 AMERICAN TOWER CORPORATION CLASS A+<< 1,831,025
59,330 AT&T INCORPORATED<< 1,604,283
32,860 NII HOLDINGS INCORPORATED+<< 1,937,754
5,373,062
---------------
DEPOSITORY INSTITUTIONS - 1.31%
27,610 PNC FINANCIAL SERVICES GROUP 1,858,429
---------------
ELECTRIC, GAS & SANITARY SERVICES - 3.39%
53,850 DUKE ENERGY CORPORATION<< 1,569,727
33,460 TXU CORPORATION 1,497,670
49,380 WASTE MANAGEMENT INCORPORATED 1,743,114
4,810,511
---------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 12.56%
34,965 BROADCOM CORPORATION CLASS A+ 1,509,089
79,890 CISCO SYSTEMS INCORPORATED+ 1,731,216
140
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
LARGE CAP APPRECIATION PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT (CONTINUED)
21,280 COOPER INDUSTRIES LIMITED CLASS A $ 1,849,232
21,580 EMERSON ELECTRIC COMPANY 1,804,736
18,210 HARMAN INTERNATIONAL INDUSTRIES INCORPORATED 2,023,677
35,740 HARRIS CORPORATION 1,690,145
79,210 MOTOROLA INCORPORATED 1,814,701
60,580 NATIONAL SEMICONDUCTOR CORPORATION 1,686,547
39,180 QUALCOMM INCORPORATED 1,982,900
53,320 TEXAS INSTRUMENTS INCORPORATED 1,731,300
17,823,543
---------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES - 1.24%
20,270 JACOBS ENGINEERING GROUP INCORPORATED+ 1,758,220
---------------
FOOD & KINDRED PRODUCTS - 1.20%
29,480 PEPSICO INCORPORATED 1,703,649
---------------
FOOD STORES - 1.29 %
48,770 STARBUCKS CORPORATION+ 1,835,703
---------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 2.45%
24,970 MARRIOTT INTERNATIONAL INCORPORATED CLASS A 1,712,942
26,080 STARWOOD HOTELS & RESORTS WORLDWIDE INCORPORATED 1,766,398
3,479,340
---------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 9.65%
25,890 APPLE COMPUTER INCORPORATED+ 1,623,821
95,730 APPLIED MATERIALS INCORPORATED<< 1,676,233
25,650 BAKER HUGHES INCORPORATED 1,754,460
29,110 CATERPILLAR INCORPORATED 2,090,389
54,390 HEWLETT-PACKARD COMPANY 1,789,431
19,690 INTERNATIONAL BUSINESS MACHINES CORPORATION 1,623,834
30,060 JOY GLOBAL INCORPORATED 1,796,686
30,950 LAM RESEARCH CORPORATION+ 1,330,850
13,685,704
---------------
INSURANCE AGENTS, BROKERS & SERVICE - 1.21%
41,290 AON CORPORATION<< 1,713,948
---------------
INSURANCE CARRIERS - 1.33%
3,100 METLIFE INCORPORATED 149,947
22,360 WELLPOINT INCORPORATED+ 1,731,335
1,881,282
---------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 5.13%
18,030 ALLERGAN INCORPORATED 1,956,255
43,810 BAXTER INTERNATIONAL INCORPORATED 1,700,266
26,490 BECTON DICKINSON & COMPANY 1,631,254
27,640 ROCKWELL AUTOMATION INCORPORATED 1,987,593
7,275,368
---------------
141
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE CAP APPRECIATION PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
METAL MINING - 2.58%
31,330 FREEPORT-MCMORAN COPPER & GOLD INCORPORATED CLASS B<< $ 1,872,594
22,150 PHELPS DODGE CORPORATION 1,783,740
3,656,334
---------------
MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS - 1.40%
22,940 VULCAN MATERIALS COMPANY 1,987,751
---------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 1.23%
96,430 MATTEL INCORPORATED 1,748,276
---------------
MISCELLANEOUS RETAIL - 1.11%
17,980 EXPRESS SCRIPTS INCORPORATED+<< 1,580,442
---------------
NON-DEPOSITORY CREDIT INSTITUTIONS - 1.21%
32,190 CIT GROUP INCORPORATED 1,722,809
---------------
OIL & GAS EXTRACTION - 5.16%
26,440 APACHE CORPORATION 1,732,084
24,070 HALLIBURTON COMPANY 1,757,591
20,360 NOBLE CORPORATION<< 1,651,196
17,210 SCHLUMBERGER LIMITED 2,178,270
7,319,141
---------------
PETROLEUM REFINING & RELATED INDUSTRIES - 2.37%
20,530 MARATHON OIL CORPORATION 1,563,770
30,170 VALERO ENERGY CORPORATION 1,803,563
3,367,333
---------------
RAILROAD TRANSPORTATION - 2.69%
24,000 BURLINGTON NORTHERN SANTA FE CORPORATION 1,999,920
19,470 UNION PACIFIC CORPORATION 1,817,525
3,817,445
---------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 6.53%
38,880 AMERIPRISE FINANCIAL INCORPORATED 1,751,933
16,630 FRANKLIN RESOURCES INCORPORATED 1,567,211
13,160 GOLDMAN SACHS GROUP INCORPORATED 2,065,593
12,790 LEHMAN BROTHERS HOLDINGS INCORPORATED 1,848,539
25,850 MERRILL LYNCH & COMPANY INCORPORATED 2,035,946
9,269,222
---------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 1.31%
69,310 CORNING INCORPORATED+ 1,865,132
---------------
TRANSPORTATION BY AIR - 1.22%
96,130 SOUTHWEST AIRLINES COMPANY 1,729,379
---------------
142
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
LARGE CAP APPRECIATION PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
TRANSPORTATION EQUIPMENT - 4.27%
29,540 BOEING COMPANY $ 2,302,052
24,270 LOCKHEED MARTIN CORPORATION 1,823,405
20,620 TEXTRON INCORPORATED 1,925,702
6,051,159
---------------
WHOLESALE TRADE NON-DURABLE GOODS - 2.50%
39,120 AMERISOURCEBERGEN CORPORATION 1,888,322
19,490 NIKE INCORPORATED CLASS B 1,658,599
3,546,921
---------------
TOTAL COMMON STOCKS (COST $120,261,997) 140,092,348
---------------
COLLATERAL FOR SECURITIES LENDING - 9.05%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.01%
4,435 SCUDDER DAILY ASSETS MONEY MARKET FUND 4,435
3,361 SHORT TERM INVESTMENT COMPANY MONEY MARKET FUND 3,361
7,796
---------------
PRINCIPAL INTEREST RATE MATURITY DATE
COLLATERAL INVESTED IN OTHER ASSETS - 9.04%
$ 46,490 AMERICAN GENERAL FINANCE CORPORATION+/- 4.78% 04/13/2007 46,509
19,355 APRECO LLC 4.62 05/15/2006 19,247
42,363 APRECO LLC 4.94 06/15/2006 41,945
25,828 ASPEN FUNDING CORPORATION 4.92 04/03/2006 25,828
258,276 ATLAS CAPITAL FUNDING CORPORATION SERIES MTN+/- 4.62 11/03/2006 258,276
29,077 ATLAS CAPITAL FUNDING LIMITED 4.80 04/17/2006 29,023
61,986 ATLAS CAPITAL FUNDING LIMITED 4.62 05/15/2006 61,640
129,138 ATLAS CAPITAL FUNDING LIMITED+/- 4.80 10/20/2006 129,138
129,138 ATLAS CAPITAL FUNDING LIMITED+/- 4.80 12/22/2006 129,138
20,662 ATOMIUM FUNDING CORPORATION 4.53 04/12/2006 20,638
17,919 BETA FINANCE INCORPORATED SERIES MTN+/- 4.88 06/02/2006 17,922
2,572,434 BNP PARIBAS REPURCHASE AGREEMENT
(MATURITY VALUE $2,573,491) 4.93 04/03/2006 2,572,434
76,677 BUCKINGHAM CDO LLC++ 4.60 04/06/2006 76,646
251,386 BUCKINGHAM CDO LLC 4.82 04/21/2006 250,787
129,138 BUCKINGHAM CDO LLC 4.82 04/25/2006 128,762
134,304 BUCKINGHAM II CDO LLC++ 4.83 04/25/2006 133,913
516,553 BUCKINGHAM II CDO LLC 4.83 04/26/2006 514,983
154,966 CAIRN HIGH GRADE FUNDING I 4.59 04/06/2006 154,904
12,397 CAIRN HIGH GRADE FUNDING I 4.71 04/26/2006 12,360
216,952 CAIRN HIGH GRADE FUNDING I 4.83 04/27/2006 216,265
129,138 CAIRN HIGH GRADE FUNDING I++ 4.83 05/02/2006 128,644
67,152 CAIRN HIGH GRADE FUNDING I 4.77 05/10/2006 66,822
259,749 CEDAR SPRINGS CAPITAL COMPANY LLC 4.78 04/05/2006 259,681
71,284 CEDAR SPRINGS CAPITAL COMPANY LLC 4.69 05/08/2006 70,952
22,971 CEDAR SPRINGS CAPITAL COMPANY LLC 4.70 05/10/2006 22,858
103,311 CEDAR SPRINGS CAPITAL COMPANY LLC 4.72 05/12/2006 102,774
143
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE CAP APPRECIATION PORTFOLIO
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 51,655 CEDAR SPRINGS CAPITAL COMPANY LLC 4.90% 06/07/2006 $ 51,202
137,481 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.92 06/12/2006 136,181
284,104 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.72 04/12/2006 284,104
51,655 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.75 04/18/2007 51,655
181,827 CONSOLIDATED EDISON INCORPORATED 4.90 04/03/2006 181,827
12,914 CORPORATE ASSET SECURITIZATION AUSTRALIA LIMITED 4.81 04/13/2006 12,897
160,131 CREDIT SUISSE FIRST BOSTON NEW YORK SERIES YCD1+/- 4.92 05/04/2006 160,051
129,138 CULLINAN FINANCE CORPORATION+/- 4.71 11/15/2006 129,133
103,311 DEER VALLEY FUNDING LLC++ 4.51 04/10/2006 103,215
132,005 DEER VALLEY FUNDING LLC 4.81 04/17/2006 131,761
314,720 DEER VALLEY FUNDING LLC 4.83 04/19/2006 314,053
67,152 DEER VALLEY FUNDING LLC 4.80 05/03/2006 66,885
258,276 DEUTSCHE BANK REPURCHASE AGREEMENT
(MATURITY VALUE $258,380) 4.84 04/03/2006 258,276
247,372 EIFFEL FUNDING LLC 4.91 04/03/2006 247,372
15,497 EIFFEL FUNDING LLC 4.78 04/17/2006 15,468
186,068 EUREKA SECURITIZATION INCORPORATED 4.88 05/16/2006 185,003
4,256 GALLEON CAPITAL LLC 4.65 04/03/2006 4,256
7,748 GEMINI SECURITIZATION INCORPORATED 4.90 05/24/2006 7,696
123,973 GOLDMAN SACHS GROUP INCORPORATED+/- 4.97 06/30/2006 123,973
370,110 HARRIER FINANCE FUNDING LLC 4.62 04/03/2006 370,110
82,648 ING USA ANNUITY & LIFE INSURANCE+/- 5.03 06/06/2006 82,648
1,037,289 JP MORGAN CHASE SECURITIES CORPORATION REPURCHASE AGREEMENT
(MATURITY VALUE $1,037,715) 4.93 04/03/2006 1,037,289
6,715 K2 (USA) LLC 4.63 05/02/2006 6,689
23,891 K2 (USA) LLC SERIES MTN+/- 4.87 07/24/2006 23,897
77,483 KAUPTHING BANK HF SERIES MTN+/-++ 4.84 03/20/2007 77,467
10,331 KLIO II FUNDING CORPORATION 4.58 04/05/2006 10,328
12,449 KLIO III FUNDING CORPORATION 4.69 04/19/2006 12,423
5,166 LEXINGTON PARKER CAPITAL CORPORATION 4.62 05/02/2006 5,146
19,608 LEXINGTON PARKER CAPITAL CORPORATION 4.69 05/10/2006 19,512
129,138 LIBERTY LIGHT US CAPITAL SERIES MTN+/- 4.81 05/26/2006 129,146
10,331 LINKS FINANCE LLC SERIES MTN1+/- 4.68 09/12/2006 10,331
30,993 LIQUID FUNDING LIMITED+/- 4.94 04/24/2006 30,994
118,807 LIQUID FUNDING LIMITED+/- 4.71 08/14/2006 118,807
77,483 LIQUID FUNDING LIMITED+/- 4.61 12/01/2006 77,483
30,993 LIQUID FUNDING LIMITED SERIES MTN+/- 4.83 02/20/2007 30,992
51,655 MBIA GLOBAL FUNDING LLC+/- 4.78 02/20/2007 51,652
259,568 MERRILL LYNCH & COMPANY SERIES MTN+/- 4.80 10/27/2006 259,763
154,966 MORGAN STANLEY+/- 4.94 10/10/2006 154,966
23,891 MORGAN STANLEY SERIES EXL+/- 4.78 08/13/2010 23,897
88,945 MORTGAGE INTEREST NET TRUST 4.68 04/03/2006 88,945
116,741 MORTGAGE INTEREST NET TRUST 4.78 05/03/2006 116,278
5,166 NATIONWIDE BUILDING SOC+/- 4.74 07/21/2006 5,168
113,915 NEWPORT FUNDING CORPORATION 4.92 04/03/2006 113,915
156,407 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 4.78 04/03/2006 156,407
180,794 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.68 04/04/2006 180,770
144
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
LARGE CAP APPRECIATION PORTFOLIO
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 23,028 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.93% 06/26/2006 $ 22,767
9,815 NORDEA NORTH AMERICA INCORPORATED 4.89 05/15/2006 9,760
272,482 NORTHERN ROCK PLC+/- 4.63 04/21/2006 272,444
20,419 NORTHERN ROCK PLC 4.69 04/24/2006 20,363
258,276 NORTHERN ROCK PLC+/- 4.66 02/05/2007 258,279
20,895 RACERS TRUST 2004-6-MM+/- 4.79 05/22/2006 20,897
5,166 SCALDIS CAPITAL LIMITED 4.93 06/15/2006 5,115
20,662 TANGO FINANCE CORPORATION 4.95 06/21/2006 20,442
59,729 TANGO FINANCE CORPORATION SERIES MTN+/- 4.87 10/25/2006 59,749
29,862 TRAVELERS INSURANCE COMPANY+/- 4.77 02/09/2007 29,861
129,138 UNICREDITO ITALIANO SERIES LIB+/- 4.70 03/09/2007 129,131
129,138 UNICREDITO ITALIANO SERIES YCD+/- 4.47 04/03/2006 129,138
196,290 US BANK NA SERIES BKNT+/- 4.66 07/28/2006 196,296
51,655 WHISTLEJACKET CAPITAL LIMITED+/- 4.65 06/09/2006 51,655
5,166 WHITE PINE FINANCE LLC 4.64 04/18/2006 5,155
25,828 WHITE PINE FINANCE LLC 4.82 05/05/2006 25,718
21,086 WHITE PINE FINANCE LLC 4.84 05/25/2006 20,939
15,869 WHITE PINE FINANCE LLC 4.93 06/20/2006 15,701
136,313 WHITE PINE FINANCE LLC 4.93 06/22/2006 134,841
129,138 WHITE PINE FINANCE LLC+/- 4.70 07/17/2006 129,138
123,973 WHITE PINE FINANCE LLC SERIES MTN1+/- 4.81 06/12/2006 123,984
12,833,493
---------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $12,841,289) 12,841,289
---------------
SHARES
SHORT-TERM INVESTMENTS - 3.86%
5,474,393 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~&& 5,474,393
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $5,474,393) 5,474,393
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $138,577,679)* 111.65% $ 158,408,030
OTHER ASSETS AND LIABILITIES, NET (11.65) (16,529,190)
------ ---------------
TOTAL NET ASSETS 100.00% $ 141,878,840
====== ===============
+ NON-INCOME EARNING SECURITIES.
<< ALL OR A PORTION OF THIS SECURITY IS ON LOAN. (SEE NOTE 2)
+/- VARIABLE RATE INVESTMENTS.
++ SECURITIES THAT MAY BE RESOLD TO "QUALIFIED INSTITUTIONAL BUYERS" UNDER
RULE 144A OR SECURITIES OFFERED PURSUANT TO SECTION 4 (2) OF THE
SECURITIES ACT OF 1933, AS AMENDED.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
&& SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $5,474,393.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
145
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE COMPANY GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 98.65%
APPAREL & ACCESSORY STORES - 1.79%
1,155,000 KOHL'S CORPORATION+<< $ 61,226,550
---------------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS - 7.95%
2,037,300 FASTENAL COMPANY 96,445,782
1,859,917 HOME DEPOT INCORPORATED 78,674,489
1,506,300 LOWE'S COMPANIES INCORPORATED 97,065,972
272,186,243
---------------
BUSINESS SERVICES - 21.78%
1,014,400 AUTOMATIC DATA PROCESSING INCORPORATED 46,337,792
6,378,270 EBAY INCORPORATED+ 249,135,226
2,167,900 FIRST DATA CORPORATION 101,501,078
222,500 GOOGLE INCORPORATED CLASS A+<< 86,775,000
7,904,898 MICROSOFT CORPORATION 215,092,275
1,451,490 YAHOO! INCORPORATED+<< 46,825,067
745,666,438
---------------
CHEMICALS & ALLIED PRODUCTS - 7.62%
1,316,200 AMGEN INCORPORATED+<< 95,753,550
1,538,000 GENENTECH INCORPORATED+<< 129,976,380
522,840 GENZYME CORPORATION+ 35,145,305
260,875,235
---------------
EDUCATIONAL SERVICES - 1.05%
687,075 APOLLO GROUP INCORPORATED CLASS A+<< 36,078,308
---------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 13.40%
6,390,843 CISCO SYSTEMS INCORPORATED+ 138,489,568
4,552,670 INTEL CORPORATION 88,094,164
1,599,900 LINEAR TECHNOLOGY CORPORATION 56,124,492
5,682,500 NOKIA OYJ ADR<< 117,741,400
1,794,100 TEXAS INSTRUMENTS INCORPORATED 58,254,427
458,704,051
---------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES - 3.83%
3,143,700 PAYCHEX INCORPORATED<< 130,966,542
---------------
GENERAL MERCHANDISE STORES - 4.26%
1,738,560 TARGET CORPORATION 90,422,506
1,172,800 WAL-MART STORES INCORPORATED<< 55,403,072
145,825,578
---------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 3.88%
2,603,100 DELL INCORPORATED+<< 77,468,256
4,048,500 EMC CORPORATION+ 55,181,055
132,649,311
---------------
146
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
LARGE COMPANY GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
INSURANCE CARRIERS - 3.85%
1,995,066 AMERICAN INTERNATIONAL GROUP INCORPORATED $ 131,853,912
---------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 6.29%
4,240,310 MEDTRONIC INCORPORATED 215,195,733
---------------
PERSONAL SERVICES - 2.34%
1,876,550 CINTAS CORPORATION 79,978,561
---------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 20.61%
8,818,337 CHARLES SCHWAB CORPORATION 151,763,580
1,337,000 FRANKLIN RESOURCES INCORPORATED 125,998,880
1,924,340 GOLDMAN SACHS GROUP INCORPORATED 302,044,406
1,002,600 LEGG MASON INCORPORATED<< 125,655,858
705,462,724
---------------
TOTAL COMMON STOCKS (COST $2,631,538,868) 3,376,669,186
---------------
COLLATERAL FOR SECURITIES LENDING - 8.19%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.00%
96,834 SCUDDER DAILY ASSETS MONEY MARKET FUND 96,834
73,374 SHORT TERM INVESTMENT COMPANY MONEY MARKET FUND 73,374
170,208
---------------
PRINCIPAL INTEREST RATE MATURITY DATE
COLLATERAL INVESTED IN OTHER ASSETS - 8.19%
$ 1,014,967 AMERICAN GENERAL FINANCE CORPORATION+/- 4.78% 04/13/2007 1,015,383
422,564 APRECO LLC 4.62 05/15/2006 420,202
924,860 APRECO LLC 4.94 06/15/2006 915,750
563,870 ASPEN FUNDING CORPORATION 4.92 04/03/2006 563,870
5,638,703 ATLAS CAPITAL FUNDING CORPORATION SERIES MTN+/- 4.62 11/03/2006 5,638,703
634,805 ATLAS CAPITAL FUNDING LIMITED 4.80 04/17/2006 633,631
1,353,289 ATLAS CAPITAL FUNDING LIMITED+/- 4.62 05/15/2006 1,345,724
2,819,352 ATLAS CAPITAL FUNDING LIMITED 4.80 10/20/2006 2,819,352
2,819,352 ATLAS CAPITAL FUNDING LIMITED+/- 4.80 12/22/2006 2,819,352
451,096 ATOMIUM FUNDING CORPORATION 4.53 04/12/2006 450,559
391,213 BETA FINANCE INCORPORATED SERIES MTN+/- 4.88 06/02/2006 391,264
56,161,483 BNP PARIBAS REPURCHASE AGREEMENT
(MATURITY VALUE $56,184,556) 4.93 04/03/2006 56,161,483
1,674,018 BUCKINGHAM CDO LLC++ 4.60 04/06/2006 1,673,349
5,488,263 BUCKINGHAM CDO LLC 4.82 04/21/2006 5,475,200
2,819,352 BUCKINGHAM CDO LLC 4.82 04/25/2006 2,811,147
2,932,126 BUCKINGHAM II CDO LLC++ 4.83 04/25/2006 2,923,593
11,277,406 BUCKINGHAM II CDO LLC 4.83 04/26/2006 11,243,123
3,383,222 CAIRN HIGH GRADE FUNDING I 4.59 04/06/2006 3,381,869
270,658 CAIRN HIGH GRADE FUNDING I 4.71 04/26/2006 269,835
4,736,511 CAIRN HIGH GRADE FUNDING I 4.83 04/27/2006 4,721,496
2,819,352 CAIRN HIGH GRADE FUNDING I++ 4.83 05/02/2006 2,808,553
1,466,063 CAIRN HIGH GRADE FUNDING I 4.77 05/10/2006 1,458,850
5,670,844 CEDAR SPRINGS CAPITAL COMPANY LLC 4.78 04/05/2006 5,669,369
147
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE COMPANY GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 1,556,282 CEDAR SPRINGS CAPITAL COMPANY LLC 4.69% 05/08/2006 $ 1,549,030
501,506 CEDAR SPRINGS CAPITAL COMPANY LLC 4.70 05/10/2006 499,039
2,255,481 CEDAR SPRINGS CAPITAL COMPANY LLC 4.72 05/12/2006 2,243,775
1,127,741 CEDAR SPRINGS CAPITAL COMPANY LLC 4.90 06/07/2006 1,117,850
3,001,482 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.92 06/12/2006 2,973,118
6,202,573 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.72 04/12/2006 6,202,573
1,127,741 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.75 04/18/2007 1,127,741
3,969,647 CONSOLIDATED EDISON INCORPORATED 4.90 04/03/2006 3,969,647
281,935 CORPORATE ASSET SECURITIZATION AUSTRALIA LIMITED 4.81 04/13/2006 281,563
3,495,996 CREDIT SUISSE FIRST BOSTON NEW YORK SERIES YCD1+/- 4.92 05/04/2006 3,494,248
2,819,352 CULLINAN FINANCE CORPORATION+/- 4.71 11/15/2006 2,819,239
2,255,481 DEER VALLEY FUNDING LLC++ 4.51 04/10/2006 2,253,384
2,881,941 DEER VALLEY FUNDING LLC 4.81 04/17/2006 2,876,610
6,870,985 DEER VALLEY FUNDING LLC 4.83 04/19/2006 6,856,419
1,466,063 DEER VALLEY FUNDING LLC 4.80 05/03/2006 1,460,242
5,638,703 DEUTSCHE BANK REPURCHASE AGREEMENT
(MATURITY VALUE $5,640,977) 4.84 04/03/2006 5,638,703
5,400,637 EIFFEL FUNDING LLC 4.91 04/03/2006 5,400,637
338,322 EIFFEL FUNDING LLC 4.78 04/17/2006 337,696
4,062,234 EUREKA SECURITIZATION INCORPORATED 4.88 05/16/2006 4,038,998
92,926 GALLEON CAPITAL LLC 4.65 04/03/2006 92,926
169,161 GEMINI SECURITIZATION INCORPORATED 4.90 05/24/2006 168,009
2,706,577 GOLDMAN SACHS GROUP INCORPORATED+/- 4.97 06/30/2006 2,706,577
8,080,262 HARRIER FINANCE FUNDING LLC 4.62 04/03/2006 8,080,261
1,804,385 ING USA ANNUITY & LIFE INSURANCE+/- 5.03 06/06/2006 1,804,385
22,646,132 JP MORGAN CHASE SECURITIES CORPORATION REPURCHASE AGREEMENT
(MATURITY VALUE $22,655,436) 4.93 04/03/2006 22,646,132
146,606 K2 (USA) LLC 4.63 05/02/2006 146,045
521,580 K2 (USA) LLC SERIES MTN+/- 4.87 07/24/2006 521,710
1,691,611 KAUPTHING BANK HF SERIES MTN+/-++ 4.84 03/20/2007 1,691,273
225,548 KLIO II FUNDING CORPORATION 4.58 04/05/2006 225,489
271,785 KLIO III FUNDING CORPORATION 4.69 04/19/2006 271,209
112,774 LEXINGTON PARKER CAPITAL CORPORATION 4.62 05/02/2006 112,342
428,090 LEXINGTON PARKER CAPITAL CORPORATION 4.69 05/10/2006 425,984
2,819,352 LIBERTY LIGHT US CAPITAL SERIES MTN+/- 4.81 05/26/2006 2,819,521
225,548 LINKS FINANCE LLC SERIES MTN1+/- 4.68 09/12/2006 225,550
676,644 LIQUID FUNDING LIMITED+/- 4.94 04/24/2006 676,671
2,593,803 LIQUID FUNDING LIMITED+/- 4.71 08/14/2006 2,593,803
1,691,611 LIQUID FUNDING LIMITED+/- 4.61 12/01/2006 1,691,611
676,644 LIQUID FUNDING LIMITED SERIES MTN+/- 4.83 02/20/2007 676,611
1,127,741 MBIA GLOBAL FUNDING LLC+/- 4.78 02/20/2007 1,127,673
5,666,897 MERRILL LYNCH & COMPANY SERIES MTN+/- 4.80 10/27/2006 5,671,147
3,383,222 MORGAN STANLEY+/- 4.94 10/10/2006 3,383,222
521,580 MORGAN STANLEY SERIES EXL+/- 4.78 08/13/2010 521,721
1,941,857 MORTGAGE INTEREST NET TRUST 4.68 04/03/2006 1,941,857
2,548,694 MORTGAGE INTEREST NET TRUST 4.78 05/03/2006 2,538,575
112,774 NATIONWIDE BUILDING SOC+/- 4.74 07/21/2006 112,828
148
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
LARGE COMPANY GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 2,487,006 NEWPORT FUNDING CORPORATION 4.92% 04/03/2006 $ 2,487,006
3,414,686 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 4.78 04/03/2006 3,414,686
3,947,092 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.68 04/04/2006 3,946,579
502,747 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.93 06/26/2006 497,046
214,271 NORDEA NORTH AMERICA INCORPORATED 4.89 05/15/2006 213,073
5,948,832 NORTHERN ROCK PLC+/- 4.63 04/21/2006 5,947,999
445,796 NORTHERN ROCK PLC 4.69 04/24/2006 444,557
5,638,703 NORTHERN ROCK PLC+/- 4.66 02/05/2007 5,638,759
456,171 RACERS TRUST 2004-6-MM+/- 4.79 05/22/2006 456,235
112,774 SCALDIS CAPITAL LIMITED 4.93 06/15/2006 111,663
451,096 TANGO FINANCE CORPORATION 4.95 06/21/2006 446,288
1,304,006 TANGO FINANCE CORPORATION SERIES MTN+/- 4.87 10/25/2006 1,304,437
651,947 TRAVELERS INSURANCE COMPANY+/- 4.77 02/09/2007 651,934
2,819,352 UNICREDITO ITALIANO SERIES LIB+/- 4.70 03/09/2007 2,819,182
2,819,352 UNICREDITO ITALIANO SERIES YCD+/- 4.47 04/03/2006 2,819,352
4,285,414 US BANK NA SERIES BKNT+/- 4.66 07/28/2006 4,285,543
1,127,741 WHISTLEJACKET CAPITAL LIMITED+/- 4.65 06/09/2006 1,127,741
112,774 WHITE PINE FINANCE LLC 4.64 04/18/2006 112,551
563,870 WHITE PINE FINANCE LLC 4.82 05/05/2006 561,468
460,344 WHITE PINE FINANCE LLC 4.84 05/25/2006 457,144
346,442 WHITE PINE FINANCE LLC 4.93 06/20/2006 342,794
2,975,995 WHITE PINE FINANCE LLC 4.93 06/22/2006 2,943,854
2,819,352 WHITE PINE FINANCE LLC+/- 4.70 07/17/2006 2,819,352
2,706,577 WHITE PINE FINANCE LLC SERIES MTN1+/- 4.81 06/12/2006 2,706,821
280,181,365
---------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $280,351,573) 280,351,573
---------------
SHARES
SHORT-TERM INVESTMENTS - 1.32%
45,157,545 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~&& 45,157,545
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $45,157,545) 45,157,545
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $2,957,047,986)* 108.16% $ 3,702,178,304
OTHER ASSETS AND LIABILITIES, NET (8.16) (279,224,051)
------ ---------------
TOTAL NET ASSETS 100.00% $ 3,422,954,253
====== ===============
+ NON-INCOME EARNING SECURITIES.
<< ALL OR A PORTION OF THIS SECURITY IS ON LOAN. (SEE NOTE 2)
+/- VARIABLE RATE INVESTMENTS.
++ SECURITIES THAT MAY BE RESOLD TO "QUALIFIED INSTITUTIONAL BUYERS" UNDER
RULE 144A OR SECURITIES OFFERED PURSUANT TO SECTION 4 (2) OF THE
SECURITIES ACT OF 1933, AS AMENDED.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
&& SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $45,157,545.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
149
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 97.88%
AGRICULTURAL PRODUCTION CROPS - 0.18%
24,252 DELTA & PINE LAND COMPANY $ 731,440
---------------
AMUSEMENT & RECREATION SERVICES - 0.46%
23,084 BALLY TOTAL FITNESS HOLDING CORPORATION+<< 216,297
18,277 MULTIMEDIA GAMES INCORPORATED+<< 271,962
31,827 PINNACLE ENTERTAINMENT+ 896,566
15,398 WMS INDUSTRIES INCORPORATED+<< 463,480
1,848,305
---------------
APPAREL & ACCESSORY STORES - 1.48%
9,737 ASHWORTH INCORPORATED+ 96,688
11,222 BURLINGTON COAT FACTORY WAREHOUSE CORPORATION 510,040
14,506 CHILDREN'S PLACE RETAIL STORES INCORPORATED+<< 839,897
24,492 CHRISTOPHER & BANKS CORPORATION 568,459
15,435 DRESS BARN INCORPORATED+<< 740,108
29,181 FINISH LINE INCORPORATED CLASS A 480,027
30,405 HOT TOPIC INCORPORATED+ 440,873
10,106 JOS. A. BANK CLOTHIERS INCORPORATED+<< 484,583
17,929 STAGE STORES INCORPORATED 533,388
21,117 THE CATO CORPORATION CLASS A 503,852
22,567 TOO INCORPORATED+ 775,177
5,973,092
---------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS - 0.86%
21,454 GYMBOREE CORPORATION+ 558,662
17,376 KELLWOOD COMPANY 545,433
24,953 PHILLIPS-VAN HEUSEN CORPORATION 953,454
80,108 QUIKSILVER INCORPORATED+<< 1,110,297
22,414 RUSSELL CORPORATION 309,313
3,477,159
---------------
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS - 0.23%
10,829 MARINEMAX INCORPORATED+ 362,988
20,161 SONIC AUTOMOTIVE INCORPORATED<< 559,669
922,657
---------------
AUTOMOTIVE REPAIR, SERVICES & PARKING - 0.09%
12,120 CENTRAL PARKING CORPORATION 193,920
8,508 MIDAS INCORPORATED+ 186,070
379,990
---------------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS - 1.09%
8,327 M I HOMES INCORPORATED 391,369
3,273 NVR INCORPORATED+<< 2,418,583
46,493 STANDARD-PACIFIC CORPORATION<< 1,563,095
4,373,047
---------------
150
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
BUSINESS SERVICES - 9.33%
30,447 AARON RENTS INCORPORATED $ 827,245
26,102 ABM INDUSTRIES INCORPORATED 500,375
15,554 ADMINISTAFF INCORPORATED 845,515
21,345 ADVO INCORPORATED 683,040
15,710 ALTIRIS INCORPORATED+ 345,777
21,790 ANSYS INCORPORATED+ 1,179,929
21,055 ARBITRON INCORPORATED 712,080
9,801 BLUE COAT SYSTEMS INCORPORATED+ 213,074
33,199 BRADY CORPORATION CLASS A 1,243,635
20,453 CACI INTERNATIONAL INCORPORATED CLASS A+ 1,344,785
19,259 CAPTARIS INCORPORATED+ 89,169
14,558 CARREKER CORPORATION+ 93,608
41,954 CERNER CORPORATION+<< 1,990,717
37,019 CIBER INCORPORATED+ 236,181
31,712 COGNEX CORPORATION 939,944
29,416 DENDRITE INTERNATIONAL INCORPORATED+ 401,528
23,338 DIGITAL INSIGHT CORPORATION+ 849,503
31,240 EFUNDS CORPORATION+ 807,242
37,063 EPICOR SOFTWARE CORPORATION+ 497,756
22,955 FACTSET RESEARCH SYSTEMS INCORPORATED 1,018,054
28,419 FILENET CORPORATION+ 767,881
15,294 GERBER SCIENTIFIC INCORPORATED 158,140
17,965 GEVITY HR INCORPORATED 439,424
45,087 GLOBAL PAYMENTS INCORPORATED 2,390,062
18,335 HEALTHCARE SERVICES GROUP 391,625
12,591 HEIDRICK & STRUGGLES INTERNATIONAL INCORPORATED+ 456,801
40,342 HYPERION SOLUTIONS CORPORATION+ 1,315,149
18,741 INFOSPACE INCORPORATED+ 523,811
26,082 INTERNET SECURITY SYSTEMS+ 625,446
12,270 INTRADO INCORPORATED+ 318,775
8,769 IPAYMENT INCORPORATED+ 375,752
19,531 JDA SOFTWARE GROUP INCORPORATED+ 282,028
30,819 KEANE INCORPORATED+ 485,399
21,576 KRONOS INCORPORATED+ 806,727
36,652 LABOR READY INCORPORATED+ 877,815
18,754 MANHATTAN ASSOCIATES INCORPORATED+<< 412,588
14,154 MAPINFO CORPORATION+ 198,439
18,868 MIVA INCORPORATED+ 76,981
14,736 MRO SOFTWARE INCORPORATED+ 235,187
29,732 NAPSTER INCORPORATED+ 100,494
21,797 NCO GROUP INCORPORATED+ 517,679
13,358 NEOWARE SYSTEMS INCORPORATED+<< 395,664
16,790 NETWORK EQUIPMENT TECHNOLOGY INCORPORATED+ 66,656
17,385 ON ASSIGNMENT INCORPORATED+ 190,887
13,457 OPEN SOLUTIONS INCORPORATED+ 367,511
14,486 PC-TEL INCORPORATED+ 137,907
16,962 PHOENIX TECHNOLOGIES LIMITED+ 115,002
151
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
BUSINESS SERVICES (CONTINUED)
10,752 PORTFOLIO RECOVERY ASSOCIATES INCORPORATED+<< $ 503,516
27,376 PROGRESS SOFTWARE CORPORATION+ 796,368
11,170 QUALITY SYSTEMS INCORPORATED+ 369,727
16,024 RADIANT SYSTEMS INCORPORATED+ 216,644
14,026 RADISYS CORPORATION+<< 278,416
36,415 SECURE COMPUTING CORPORATION+ 420,229
10,563 SOURCECORP INCORPORATED+ 254,674
40,409 SPHERION CORPORATION+ 420,254
11,446 SPSS INCORPORATED+ 362,380
7,632 STARTEK INCORPORATED 179,810
48,460 TAKE-TWO INTERACTIVE SOFTWARE INCORPORATED+<< 904,264
21,728 TALX CORPORATION 618,813
43,244 THQ INCORPORATED+<< 1,119,587
18,722 VENTIV HEALTH INCORPORATED+ 621,945
6,552 VERTRUE INCORPORATED+ 273,874
15,192 VIAD CORPORATION 520,782
5,526 VOLT INFORMATION SCIENCE INCORPORATED+ 168,875
23,543 WEBEX COMMUNICATIONS INCORPORATED+<< 792,693
32,536 WEBSENSE INCORPORATED+<< 897,343
37,569,181
---------------
CHEMICALS & ALLIED PRODUCTS - 3.28%
28,251 ALPHARMA INCORPORATED CLASS A 757,692
16,206 ARCH CHEMICALS INCORPORATED 492,662
23,968 ARQULE INCORPORATED+ 137,576
10,284 BRADLEY PHARMACEUTICALS INCORPORATED+<< 152,923
18,073 CAMBREX CORPORATION 353,146
22,741 CONNECTICS CORPORATION+<< 385,005
15,960 DIAGNOSTIC PRODUCTS CORPORATION 760,175
19,029 FIRST HORIZON PHARMACEUTICAL CORPORATION+ 479,721
23,197 GEORGIA GULF CORPORATION<< 602,890
19,773 HB FULLER COMPANY 1,015,146
21,580 IDEXX LABORATORIES INCORPORATED+ 1,863,649
30,101 IMMUCOR INCORPORATED+ 863,598
17,082 MACDERMID INCORPORATED 549,186
52,485 MGI PHARMA INCORPORATED+<< 918,487
7,969 NATURES SUNSHINE PRODUCTS INCORPORATED 99,613
37,786 NBTY INCORPORATED+<< 850,941
15,988 NOVEN PHARMACEUTICALS INCORPORATED+ 287,944
19,861 OM GROUP INCORPORATED+ 456,803
27,955 OMNOVA SOLUTIONS INCORPORATED+ 171,085
17,996 PAREXEL INTERNATIONAL CORPORATION+<< 475,814
6,014 PENFORD CORPORATION 96,705
62,290 POLYONE CORPORATION+ 580,543
6,607 QUAKER CHEMICAL CORPORATION 143,702
10,558 SURMODICS INCORPORATED+<< 373,331
152
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
CHEMICALS & ALLIED PRODUCTS (CONTINUED)
6,747 USANA HEALTH SCIENCES INCORPORATED+<< $ 281,485
11,651 WELLMAN INCORPORATED<< 74,100
13,223,922
---------------
COAL MINING - 0.69%
52,109 MASSEY ENERGY COMPANY 1,879,572
12,595 PENN VIRGINIA CORPORATION 894,245
2,773,817
---------------
COMMUNICATIONS - 1.08%
22,301 ANIXTER INTERNATIONAL INCORPORATED+ 1,065,542
12,534 AUDIOVOX CORPORATION CLASS A+ 149,656
28,197 BRIGHTPOINT INCORPORATED+<< 875,799
31,837 GENERAL COMMUNICATION INCORPORATED CLASS A+ 384,909
16,756 J2 GLOBAL COMMUNICATIONS INCORPORATED+<< 787,532
45,777 LIVE NATION INCORPORATED+ 908,215
19,846 NOVATEL WIRELESS INCORPORATED+<< 177,622
4,349,275
---------------
COMPUTERS-INTERGRATED SYSTEMS - 0.08%
20,681 AGILYSYS INCORPORATED 311,456
---------------
CONSTRUCTION SPECIAL TRADE CONTRACTORS - 0.64%
17,447 CHEMED CORPORATION 1,035,305
21,090 EMCOR GROUP INCORPORATED+<< 1,047,329
18,296 INSITUFORM TECHNOLOGIES INCORPORATED CLASS A+ 486,674
2,569,308
---------------
DEPOSITORY INSTITUTIONS - 6.99%
12,418 ANCHOR BANCORP WISCONSIN INCORPORATED 376,390
30,452 BANKATLANTIC BANCORP INCORPORATED CLASS A 438,204
21,600 BANKUNITED FINANCIAL CORPORATION CLASS A 584,064
23,742 BOSTON PRIVATE FINANCIAL HOLDINGS INCORPORATED 802,242
41,725 BROOKLINE BANCORP INCORPORATED 646,320
20,605 CENTRAL PACIFIC FINANCIAL CORPORATION 756,616
31,773 CHITTENDEN CORPORATION 920,457
20,286 COMMUNITY BANK SYSTEM INCORPORATED 452,986
18,771 DIME COMMUNITY BANCSHARES 269,739
14,153 DOWNEY FINANCIAL CORPORATION 952,497
40,516 EAST WEST BANCORP INCORPORATED 1,561,892
15,135 FIDELITY BANKSHARES INCORPORATED 508,990
54,753 FIRST BANCORP PUERTO RICO 676,747
47,754 FIRST COMMONWEALTH FINANCIAL CORPORATION 700,074
33,379 FIRST MIDWEST BANCORP INCORPORATED 1,220,670
15,551 FIRST REPUBLIC BANK 588,139
11,217 FIRSTFED FINANCIAL CORPORATION+<< 670,889
23,665 FLAGSTAR BANCORP INCORPORATED 357,341
153
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
DEPOSITORY INSTITUTIONS (CONTINUED)
15,159 FRANKLIN BANK CORPORATION+ $ 291,508
21,262 GLACIER BANCORP INCORPORATED 660,185
25,885 GOLD BANC CORPORATION INCORPORATED 474,213
26,690 HANMI FINANCIAL CORPORATION 482,021
13,199 HARBOR FLORIDA BANCSHARES INCORPORATED 499,846
12,124 IRWIN FINANCIAL CORPORATION 234,357
20,022 MAF BANCORP INCORPORATED 876,363
13,467 NARA BANK NATIONAL ASSOCIATION 236,346
11,893 PRIVATEBANCORP INCORPORATED 493,441
16,917 PROSPERITY BANCSHARES INCORPORATED 511,063
22,279 PROVIDENT BANKSHARES CORPORATION 812,069
50,916 REPUBLIC BANCORP INCORPORATED 613,031
50,582 SOUTH FINANCIAL GROUP INCORPORATED 1,322,719
30,758 STERLING BANCSHARES INCORPORATED TEXAS 555,182
23,567 STERLING FINANCIAL CORPORATION 683,443
31,717 SUSQUEHANNA BANCSHARES INCORPORATED 817,347
50,722 TRUSTCO BANK CORPORATION NEW YORK SHARES 617,287
63,111 UCBH HOLDINGS INCORPORATED 1,194,060
30,156 UMPQUA HOLDINGS CORPORATION 859,446
25,129 UNITED BANKSHARES INCORPORATED 961,687
42,902 WHITNEY HOLDING CORPORATION 1,521,305
16,026 WINTRUST FINANCIAL CORPORATION 932,232
174 ZIONS BANCORPORATION 14,395
28,147,803
---------------
DURABLE GOODS - CONSUMER - 0.03%
14,586 STURM, RUGER & COMPANY INCORPORATED<< 116,396
---------------
EATING & DRINKING PLACES - 2.22%
23,255 CEC ENTERTAINMENT INCORPORATED+ 781,833
12,734 IHOP CORPORATION 610,468
23,424 JACK IN THE BOX INCORPORATED+ 1,018,944
11,265 LANDRY'S RESTAURANTS INCORPORATED<< 397,992
12,190 LONE STAR STEAKHOUSE & SALOON INCORPORATED 346,440
15,524 O'CHARLEYS INCORPORATED+ 286,573
17,945 P.F. CHANG'S CHINA BISTRO INCORPORATED+<< 884,509
15,962 PAPA JOHNS INTERNATIONAL INCORPORATED+ 523,713
22,788 RARE HOSPITALITY INTERNATIONAL INCORPORATED+ 793,706
9,841 RED ROBIN GOURMET BURGERS INCORPORATED+<< 464,495
28,559 RYAN'S RESTAURANT GROUP INCORPORATED+ 414,106
39,144 SONIC CORPORATION+ 1,375,129
18,908 STEAK N SHAKE COMPANY+ 398,959
36,769 TRIARC COMPANIES INCORPORATED CLASS B 642,722
8,939,589
---------------
EDUCATIONAL SERVICES - 0.12%
15,584 UNIVERSAL TECHNICAL INSTITUTE INCORPORATED+ 469,078
---------------
154
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ELECTRIC, GAS & SANITARY SERVICES - 4.37%
20,430 ALLETE INCORPORATED<< $ 952,038
11,375 AMERICAN STATES WATER COMPANY 424,970
54,827 ATMOS ENERGY CORPORATION 1,443,595
32,939 AVISTA CORPORATION 680,190
7,752 CASCADE NATURAL GAS CORPORATION 152,714
8,322 CENTRAL VERMONT PUBLIC SERVICE 176,510
9,184 CH ENERGY GROUP INCORPORATED 440,832
33,841 CLECO CORPORATION 755,670
32,525 EL PASO ELECTRIC COMPANY+ 619,276
49,652 ENERGEN CORPORATION 1,737,820
3,539 GREEN MOUNTAIN POWER CORPORATION 102,242
14,419 LACLEDE GROUP INCORPORATED 496,302
18,712 NEW JERSEY RESOURCES 846,718
18,687 NORTHWEST NATURAL GAS COMPANY 663,202
51,721 PIEDMONT NATURAL GAS COMPANY<< 1,240,787
19,659 SOUTH JERSEY INDUSTRIES INCORPORATED 536,101
66,286 SOUTHERN UNION COMPANY 1,645,873
26,801 SOUTHWEST GAS CORPORATION 749,088
71,192 UGI CORPORATION 1,500,015
8,777 UIL HOLDINGS CORPORATION 459,476
23,675 UNISOURCE ENERGY CORPORATION 722,087
31,425 WASTE CONNECTIONS INCORPORATED+ 1,251,029
17,596,535
---------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 6.67%
17,209 ACTEL CORPORATION+ 274,311
30,389 ACUITY BRANDS INCORPORATED<< 1,215,560
77,262 ADAPTEC INCORPORATED+ 427,259
19,841 ADVANCED ENERGY INDUSTRIES INCORPORATED+ 280,353
50,755 AEROFLEX INCORPORATED+ 696,866
13,658 AO SMITH CORPORATION 721,142
7,912 APPLIED SIGNAL TECHNOLOGY INCORPORATED 156,895
27,367 ARTESYN TECHNOLOGIES INCORPORATED+ 299,669
25,479 ATMI INCORPORATED+ 769,466
19,068 BALDOR ELECTRIC COMPANY 645,833
7,935 BEL FUSE INCORPORATED CLASS B<< 277,963
28,838 BENCHMARK ELECTRONICS INCORPORATED+<< 1,105,937
17,214 C&D TECHNOLOGIES INCORPORATED<< 159,057
32,436 C-COR INCORPORATED+ 283,491
7,005 CATAPULT COMMUNICATIONS CORPORATION+ 93,167
17,926 CERADYNE INCORPORATED+ 894,507
26,296 CHECKPOINT SYSTEMS INCORPORATED+ 706,837
13,740 COMTECH TELECOMMUNICATIONS CORPORATION+ 400,796
24,308 CTS CORPORATION 325,241
10,500 CUBIC CORPORATION 251,370
24,198 CYMER INCORPORATED+ 1,099,557
12,800 DIODES INCORPORATED+ 531,200
155
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT (CONTINUED)
13,638 DIONEX CORPORATION+<< $ 838,464
21,911 DITECH COMMUNICATIONS CORPORATION+ 228,970
19,346 DSP GROUP INCORPORATED+ 561,228
19,539 ELECTRO SCIENTIFIC INDUSTRIES INCORPORATED+ 432,398
24,004 ESS TECHNOLOGY INCORPORATED+ 79,693
24,076 EXAR CORPORATION+ 343,805
14,665 GREATBATCH INCORPORATED+ 321,310
49,861 HARMONIC INCORPORATED+ 317,615
17,352 HUTCHINSON TECHNOLOGY INCORPORATED+<< 523,510
14,201 INTER-TEL INCORPORATED 304,469
15,125 LITTELFUSE INCORPORATED+ 516,216
19,710 MAGNETEK INCORPORATED+ 78,249
14,242 MERCURY COMPUTER SYSTEMS INCORPORATED+ 230,720
25,262 METHODE ELECTRONICS INCORPORATED 275,103
44,029 MICROSEMI CORPORATION+ 1,281,684
24,848 MOOG INCORPORATED CLASS A+ 881,838
3,191 NATIONAL PRESTO INDUSTRIES INCORPORATED 156,902
13,623 PARK ELECTROCHEMICAL CORPORATION 401,879
17,747 PERICOM SEMICONDUCTOR+ 174,985
28,042 PHOTRONICS INCORPORATED+ 526,068
20,019 POWER INTEGRATIONS INCORPORATED+ 496,071
20,754 REGAL-BELOIT CORPORATION 877,272
11,028 ROGERS CORPORATION+ 600,805
10,545 SBS TECHNOLOGIES INCORPORATED+ 170,829
108,060 SKYWORKS SOLUTIONS INCORPORATED+ 733,727
14,518 STANDARD MICROSYSTEMS CORPORATION+ 377,178
8,090 SUPERTEX INCORPORATED+<< 304,346
31,183 SYMMETRICOM INCORPORATED+ 266,615
16,821 SYNAPTICS INCORPORATED+ 369,894
27,459 TECHNITROL INCORPORATED 658,467
8,923 TOLLGRADE COMMUNICATIONS INCORPORATED+ 132,774
38,892 VARIAN SEMICONDUCTOR EQUIPMENT ASSOCIATES INCORPORATED+ 1,092,087
15,425 VIASAT INCORPORATED+ 441,926
13,071 VICOR CORPORATION 257,891
26,871,465
---------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES - 1.23%
8,459 CDI CORPORATION 243,366
12,953 MAXMUS INCORPORATED 466,049
22,210 PER-SE TECHNOLOGIES INCORPORATED+<< 592,119
30,048 REGENERON PHARMACEUTICAL INCORPORATED+ 499,698
12,498 SFBC INTERNATIONAL INCORPORATED+<< 304,701
38,769 TETRA TECH INCORPORATED+ 740,100
29,201 URS CORPORATION+ 1,175,340
28,601 WATSON WYATT & COMPANY HOLDINGS 931,821
4,953,194
---------------
156
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT - 2.31%
23,836 APTARGROUP INCORPORATED $ 1,316,939
39,646 COMMERCIAL METALS COMPANY 2,120,665
17,154 GRIFFON CORPORATION+<< 426,105
19,800 MASCOTECH ESCROW INCORPORATED+(A) 0
8,654 MATERIAL SCIENCES CORPORATION+ 104,540
23,314 MOBILE MINI INCORPORATED+ 720,869
13,858 NCI BUILDING SYSTEMS INCORPORATED+<< 828,293
53,715 SHAW GROUP INCORPORATED+ 1,632,936
24,912 SIMPSON MANUFACTURING COMPANY INCORPORATED 1,078,690
11,136 VALMONT INDUSTRIES INCORPORATED 468,157
17,236 WATTS WATER TECHNOLOGIES INCORPORATED 626,356
9,323,550
---------------
FINANCE COMPANIES - 0.03%
14,195 REWARDS NETWORK INCORPORATED+ 112,992
---------------
FOOD & KINDRED PRODUCTS - 1.56%
12,489 AMERICAN ITALIAN PASTA COMPANY CLASS A<< 78,181
50,118 CORN PRODUCTS INTERNATIONAL INCORPORATED 1,481,989
35,428 FLOWERS FOODS INCORPORATED 1,052,212
8,563 HANSEN NATURAL CORPORATION+<< 1,079,366
9,182 J & J SNACK FOODS CORPORATION 308,423
20,411 LANCE INCORPORATED 459,248
9,504 PEET'S COFFEE & TEA INCORPORATED+ 285,120
19,575 RALCORP HOLDINGS INCORPORATED+ 744,829
9,653 SANDERSON FARMS INCORPORATED 216,227
21,063 TREEHOUSE FOODS INCORPORATED+ 559,223
6,264,818
---------------
FOOD STORES - 0.50%
12,225 GREAT ATLANTIC & PACIFIC TEA COMPANY INCORPORATED+<< 427,019
21,212 PANERA BREAD COMPANY+ 1,594,718
2,021,737
---------------
FURNITURE & FIXTURES - 0.65%
8,005 BASSETT FURNITURE INDUSTRIES INCORPORATED 159,700
22,349 ETHAN ALLEN INTERIORS INCORPORATED 939,105
35,037 LA-Z-BOY INCORPORATED<< 595,629
23,802 SELECT COMFORT CORPORATION+<< 941,369
2,635,803
---------------
GENERAL MERCHANDISE STORES - 0.36%
34,121 CASEY'S GENERAL STORES INCORPORATED 780,347
27,004 FRED'S INCORPORATED 358,073
18,070 STEIN MART INCORPORATED 314,780
1,453,200
---------------
157
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
HEALTH SERVICES - 2.75%
10,708 AMEDISYS INCORPORATED+<< $ 372,103
20,111 AMSURG CORPORATION+<< 456,319
14,157 CROSS COUNTRY HEALTHCARE INCORPORATED+ 274,080
14,924 CRYOLIFE INCORPORATED+<< 65,666
18,563 ENZO BIOCHEM INCORPORATED+<< 250,601
13,161 GENESIS HEALTHCARE CORPORATION+ 578,294
17,669 GENTIVA HEALTH SERVICES INCORPORATED+ 321,753
23,218 HEALTHWAYS INCORPORATED+<< 1,182,725
44,636 HOOPER HOLMES INCORPORATED 128,998
13,994 LCA-VISION INCORPORATED 701,214
14,139 MATRIA HEALTHCARE INCORPORATED+ 536,716
22,638 NAUTILUS GROUP INCORPORATED<< 338,438
23,361 ODYSSEY HEALTHCARE INCORPORATED+ 402,043
16,346 PEDIATRIX MEDICAL GROUP INCORPORATED+ 1,677,753
11,392 REHABCARE GROUP INCORPORATED+ 214,739
35,112 SIERRA HEALTH SERVICES INCORPORATED+ 1,429,058
28,140 SUNRISE SENIOR LIVING INCORPORATED+<< 1,096,616
30,032 UNITED SURGICAL PARTNERS INTERNATIONAL INCORPORATED+ 1,063,433
11,090,549
---------------
HOLDING & OTHER INVESTMENT OFFICES - 2.92%
8,657 4KIDS ENTERTAINMENT INCORPORATED+ 148,814
21,369 ACADIA REALTY TRUST 503,240
30,608 COLONIAL PROPERTIES TRUST<< 1,534,379
37,825 COMMERCIAL NET LEASE REALTY INCORPORATED<< 881,323
14,931 EASTGROUP PROPERTIES INCORPORATED 708,327
17,863 ENTERTAINMENT PROPERTIES TRUST 749,889
15,484 ESSEX PROPERTY TRUST INCORPORATED 1,683,575
23,562 GLENBOROUGH REALTY TRUST INCORPORATED 512,474
20,171 KILROY REALTY CORPORATION 1,558,411
13,727 LTC PROPERTIES INCORPORATED 319,290
9,587 PARKWAY PROPERTIES INCORPORATED 418,760
31,788 SHURGARD STORAGE CENTERS INCORPORATED 2,118,034
11,125 SOVRAN SELF STORAGE INCORPORATED 614,100
11,750,616
---------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 0.46%
20,253 BELL MICROPRODUCTS INCORPORATED+ 124,758
14,946 COST PLUS INCORPORATED+<< 255,576
17,774 GUITAR CENTER INCORPORATED+<< 847,820
15,194 HAVERTY FURNITURE COMPANIES INCORPORATED 218,034
17,663 TUESDAY MORNING CORPORATION 407,839
1,854,027
---------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 0.33%
24,318 AZTAR CORPORATION+ 1,021,113
15,003 MARCUS CORPORATION 299,310
1,320,423
---------------
158
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 5.96%
12,013 A.S.V. INCORPORATED+<< $ 387,059
11,861 ASTEC INDUSTRIES INCORPORATED+ 425,810
68,108 AXCELIS TECHNOLOGIES INCORPORATED+ 399,113
11,839 BLACK BOX CORPORATION 568,864
35,099 BRIGGS & STRATTON CORPORATION 1,241,452
50,565 BROOKS AUTOMATION INCORPORATED+ 720,046
5,468 DRIL-QUIP INCORPORATED+ 387,408
14,715 ENPRO INDUSTRIES INCORPORATED+<< 504,725
17,592 GARDNER DENVER INCORPORATED+ 1,146,998
15,802 GLOBAL IMAGING SYSTEMS INCORPORATED+ 600,160
13,328 HYDRIL COMPANY+ 1,038,918
35,873 IDEX CORPORATION 1,871,494
71,484 JLG INDUSTRIES INCORPORATED<< 2,200,992
19,052 KAYDON CORPORATION<< 768,939
20,438 KOMAG INCORPORATED+<< 972,849
38,137 KULICKE & SOFFA INDUSTRIES INCORPORATED+ 363,827
38,422 LENNOX INTERNATIONAL INCORPORATED 1,147,281
7,805 LINDSAY MANUFACTURING COMPANY 211,437
9,912 LUFKIN INDUSTRIES INCORPORATED 549,521
20,596 MANITOWOC COMPANY INCORPORATED 1,877,325
26,496 MICROS SYSTEMS INCORPORATED+ 1,220,671
22,318 NETGEAR INCORPORATED+ 424,265
24,922 PAXAR CORPORATION+ 487,724
10,158 PLANAR SYSTEMS INCORPORATED+ 171,873
7,882 ROBBINS & MYERS INCORPORATED 170,251
8,641 SCANSOURCE INCORPORATED+ 522,003
29,351 TORO COMPANY 1,401,510
16,176 ULTRATECH INCORPORATED+ 395,988
16,067 WATSCO INCORPORATED 1,141,560
20,079 WOODWARD GOVERNOR COMPANY 667,627
23,987,690
---------------
INSURANCE AGENTS, BROKERS & SERVICE - 0.25%
24,502 HILB, ROGAL & HAMILTON COMPANY 1,009,972
---------------
INSURANCE CARRIERS - 3.13%
34,953 AMERIGROUP CORPORATION+ 735,411
29,125 CENTENE CORPORATION+ 849,576
19,419 DELPHI FINANCIAL GROUP INCORPORATED CLASS A 1,002,603
44,320 FREMONT GENERAL CORPORATION 955,539
14,035 INFINITY PROPERTY & CASUALTY CORPORATION 585,821
11,711 LANDAMERICA FINANCIAL GROUP INCORPORATED 794,591
37,489 PHILADELPHIA CONSOLIDATED HOLDING CORPORATION+ 1,279,875
14,547 PRESIDENTIAL LIFE CORPORATION 369,639
21,056 PROASSURANCE CORPORATION+ 1,094,912
14,569 RLI CORPORATION 834,804
6,783 SCPIE HOLDINGS INCORPORATED+ 166,184
19,260 SELECTIVE INSURANCE GROUP INCORPORATED 1,020,780
159
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
INSURANCE CARRIERS (CONTINUED)
19,836 STEWART & STEVENSON SERVICES CORPORATION<< $ 723,617
12,329 STEWART INFORMATION SERVICES CORPORATION 580,449
11,512 UNITED FIRE & CASUALTY COMPANY 378,745
25,240 ZENITH NATIONAL INSURANCE CORPORATION 1,214,801
12,587,347
---------------
LEATHER & LEATHER PRODUCTS - 0.44%
12,494 BROWN SHOE COMPANY INCORPORATED 655,685
15,494 GENESCO INCORPORATED+<< 602,562
17,628 K-SWISS INCORPORATED 531,308
1,789,555
---------------
LEGAL SERVICES - 0.06%
6,916 PRE-PAID LEGAL SERVICES INCORPORATED<< 245,380
---------------
LUMBER & WOOD PRODUCTS, EXCEPT FURNITURE - 0.57%
51,562 CHAMPION ENTERPRISES INCORPORATED+ 771,367
9,606 COACHMEN INDUSTRIES INCORPORATED 109,316
8,363 DELTIC TIMBER CORPORATION 506,798
4,604 SKYLINE CORPORATION 190,514
11,047 UNIVERSAL FOREST PRODUCTS 701,374
2,279,369
---------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 8.02%
47,219 AMERICAN MEDICAL SYSTEMS HOLDINGS INCORPORATED+ 1,062,428
9,377 ANALOGIC CORPORATION 620,757
20,104 ARMOR HOLDINGS INCORPORATED+ 1,171,862
16,987 ARTHROCARE CORPORATION+<< 812,318
15,753 BIOLASE TECHNOLOGY INCORPORATED<< 150,441
11,803 BIOSITE INCORPORATED+<< 612,930
9,597 CNS INCORPORATED 206,719
21,065 COHERENT INCORPORATED+ 739,592
15,271 COHU INCORPORATED 324,051
19,002 CONMED CORPORATION+ 363,888
30,152 COOPER COMPANIES INCORPORATED<< 1,629,113
14,834 CYBERONICS INCORPORATED+<< 382,272
8,372 DATASCOPE CORPORATION 331,196
15,034 DJ ORTHOPEDICS INCORPORATED+ 597,752
9,990 EDO CORPORATION<< 308,192
17,190 ESTERLINE TECHNOLOGIES CORPORATION+ 734,873
16,996 FEI COMPANY+ 337,371
46,796 FLIR SYSTEMS INCORPORATED+<< 1,329,474
31,659 FOSSIL INCORPORATED+ 588,224
18,022 HAEMONETICS CORPORATION+ 914,977
30,728 HOLOGIC INCORPORATED+ 1,700,795
9,601 ICU MEDICAL INCORPORATED+<< 347,460
47,561 INPUT OUTPUT INCORPORATED+<< 461,817
11,783 INTEGRA LIFESCIENCES HOLDINGS+<< 482,867
160
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS (CONTINUED)
26,118 INTERMAGNETICS GENERAL CORPORATION+ $ 654,256
21,491 INVACARE CORPORATION 667,510
16,895 ITRON INCORPORATED+ 1,011,166
9,719 KEITHLEY INSTRUMENTS INCORPORATED 149,284
6,763 KENSEY NASH CORPORATION+<< 193,422
46,620 KOPIN CORPORATION+ 233,566
13,576 LASERSCOPE+<< 321,072
25,915 MENTOR CORPORATION 1,174,209
18,380 MERIT MEDICAL SYSTEMS INCORPORATED+ 220,744
13,074 MTS SYSTEMS CORPORATION 546,885
11,658 OSTEOTECH INCORPORATED+ 51,062
11,536 PHOTON DYNAMICS INCORPORATED+ 216,300
15,612 POLYMEDICA CORPORATION 661,324
11,629 POSSIS MEDICAL INCORPORATED+ 118,151
50,916 RESMED INCORPORATED+<< 2,239,286
49,119 RESPIRONICS INCORPORATED+ 1,911,220
16,064 RUDOLPH TECHNOLOGIES INCORPORATED+<< 273,891
17,168 SONIC SOLUTIONS+<< 310,913
27,435 SYBRON DENTAL SPECIALTIES INCORPORATED+ 1,131,419
22,931 TELEDYNE TECHNOLOGIES INCORPORATED+ 816,344
21,719 THERAGENICS CORPORATION+ 68,632
36,815 TRIMBLE NAVIGATION LIMITED+ 1,658,516
18,181 VEECO INSTRUMENTS INCORPORATED+<< 424,526
21,456 VIASYS HEALTHCARE INCORPORATED+ 645,397
3,841 VITAL SIGNS INCORPORATED 210,986
12,520 X-RITE INCORPORATED<< 166,266
32,287,716
---------------
MEMBERSHIP ORGANIZATIONS - 0.12%
27,351 TRONOX INC COMMON CLASS B+ 464,693
---------------
METAL MINING - 0.32%
14,905 CLEVELAND CLIFFS INCORPORATED<< 1,298,524
---------------
MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS - 0.11%
14,924 AMCOL INTERNATIONAL CORPORATION 429,811
---------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 0.64%
10,641 DAKTRONICS INCORPORATED<< 388,397
18,242 JAKKS PACIFIC INCORPORATED+ 487,791
31,762 K2 INCORPORATED+<< 398,613
10,952 LYDALL INCORPORATED+ 105,687
8,042 RUSS BERRIE & COMPANY INCORPORATED 122,238
23,525 SHUFFLE MASTER INCORPORATED+<< 840,783
7,569 STANDEX INTERNATIONAL CORPORATION 239,635
2,583,144
---------------
161
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MISCELLANEOUS RETAIL - 1.25%
19,892 CASH AMERICA INTERNATIONAL INCORPORATED $ 597,158
12,967 HANCOCK FABRICS INCORPORATED<< 47,200
24,197 HIBBETT SPORTING GOODS INCORPORATED+ 798,259
13,770 J JILL GROUP INCORPORATED+ 329,241
15,873 JO ANN STORES INCORPORATED+<< 213,650
18,021 LONGS DRUG STORES CORPORATION 834,012
25,451 SPECTRUM BRANDS INCORPORATED+<< 552,796
18,537 WORLD FUEL SERVICES CORPORATION 749,636
32,450 ZALE CORPORATION+ 909,573
5,031,525
---------------
MOTION PICTURES - 0.31%
28,541 AVID TECHNOLOGY INCORPORATED+<< 1,240,392
---------------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING - 1.10%
17,205 ARKANSAS BEST CORPORATION 673,060
21,268 FORWARD AIR CORPORATION 793,084
30,510 HEARTLAND EXPRESS INCORPORATED 664,813
39,955 LANDSTAR SYSTEM INCORPORATED 1,762,814
19,198 OLD DOMINION FREIGHT LINE+ 517,386
4,411,157
---------------
NON-DEPOSITORY CREDIT INSTITUTIONS - 0.22%
18,346 FINANCIAL FEDERAL CORPORATION<< 537,538
12,422 WORLD ACCEPTANCE CORPORATION+ 340,363
877,901
---------------
OIL & GAS EXTRACTION - 4.52%
9,101 ATWOOD OCEANICS INCORPORATED+ 919,292
32,935 CABOT OIL & GAS CORPORATION 1,578,551
56,119 CIMAREX ENERGY COMPANY 2,427,708
52,668 HELIX ENERGY SOLUTIONS GROUP INCORPORATED+<< 1,996,117
18,104 OCEANEERING INTERNATIONAL INCORPORATED+ 1,037,359
11,022 PETROLEUM DEVELOPMENT CORPORATION+ 499,958
15,969 REMINGTON OIL & GAS CORPORATION+ 690,180
14,067 SEACOR HOLDINGS INCORPORATED+<< 1,114,106
38,323 ST. MARY LAND & EXPLORATION COMPANY<< 1,564,728
18,403 STONE ENERGY CORPORATION+ 812,124
19,449 SWIFT ENERGY COMPANY+ 728,560
23,504 TETRA TECH INCORPORATED+ 1,105,628
31,339 UNIT CORPORATION+ 1,747,149
24,092 VERITAS DGC INCORPORATED+<< 1,093,536
19,856 W-H ENERGY SERVICES INCORPORATED+ 883,394
18,198,390
---------------
PAPER & ALLIED PRODUCTS - 0.65%
22,416 BUCKEYE TECHNOLOGIES INCORPORATED+ 202,865
19,501 CARAUSTAR INDUSTRIES INCORPORATED+ 200,665
162
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
PAPER & ALLIED PRODUCTS (CONTINUED)
13,422 CHESAPEAKE CORPORATION $ 186,297
10,004 NEENAH PAPER INCORPORATED 327,631
42,987 PLAYTEX PRODUCTS INCORPORATED+ 450,074
11,049 POPE & TALBOT INCORPORATED 75,133
21,236 ROCK-TENN COMPANY CLASS A 318,328
10,442 SCHWEITZER MANDUIT INTERNATIONAL INCORPORATED 250,608
8,595 STANDARD REGISTER COMPANY 133,222
34,751 WAUSAU PAPER CORPORATION 492,422
2,637,245
---------------
PERSONAL SERVICES - 0.32%
6,294 ANGELICA CORPORATION 129,153
18,820 COINSTAR INCORPORATED+<< 487,626
3,664 CPI CORPORATION 74,746
14,304 G & K SERVICES INCORPORATED CLASS A 608,492
1,300,017
---------------
PETROLEUM REFINING & RELATED INDUSTRIES - 1.03%
12,308 ELKCORP 415,395
38,074 FRONTIER OIL CORPORATION 2,259,692
28,545 HEADWATERS INCORPORATED+<< 1,135,806
11,310 WD-40 COMPANY 348,913
4,159,806
---------------
PHARMACEUTICALS - 0.05%
41,462 SAVIENT PHARMACEUTICALS INCORPORATED+ 220,992
---------------
PRIMARY METAL INDUSTRIES - 3.44%
21,061 ALERIS INTERNATIONAL INCORPORATED+ 1,012,402
29,361 BELDEN CDT INCORPORATED 799,500
13,026 BRUSH ENGINEERED MATERIALS INCORPORATED+ 257,263
14,918 CARPENTER TECHNOLOGY CORPORATION<< 1,410,049
15,477 CENTURY ALUMINUM COMPANY+ 656,999
15,453 CHAPARRAL STEEL COMPANY+ 1,003,209
14,771 CURTISS-WRIGHT CORPORATION 977,840
20,762 LONE STAR TECHNOLOGIES INCORPORATED+ 1,150,422
29,202 MAVERICK TUBE CORPORATION+<< 1,547,414
24,820 MUELLER INDUSTRIES INCORPORATED 885,826
15,192 NS GROUP INCORPORATED+ 699,288
17,052 QUANEX CORPORATION<< 1,136,175
15,599 RTI INTERNATIONAL METALS INCORPORATED+<< 855,605
7,543 STEEL TECHNOLOGIES INCORPORATED 183,295
15,634 TEXAS INDUSTRIES INCORPORATED 945,701
18,856 TREDEGAR CORPORATION 299,999
10,187 WOLVERINE TUBE INCORPORATED+ 40,952
13,861,939
---------------
163
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 0.44%
22,288 BOWNE & COMPANY INCORPORATED $ 371,541
7,972 CONSOLIDATED GRAPHICS INCORPORATED+ 415,500
19,083 JOHN H. HARLAND COMPANY 749,962
7,423 THOMAS NELSON INCORPORATED 217,123
1,754,126
---------------
RAILROAD TRANSPORTATION - 0.30%
49,734 KANSAS CITY SOUTHERN+<< 1,228,430
---------------
REAL ESTATE - 0.65%
15,567 MERITAGE CORPORATION+ 855,562
38,281 NEW CENTURY FINANCIAL CORPORATION 1,761,692
2,617,254
---------------
REAL ESTATE INVESTMENT TRUST (REIT) - 0.18%
35,216 LEXINGTON CORPORATE PROPERTIES TRUST<< 734,254
---------------
RETAIL, TRADE & SERVICES - 0.41%
35,800 MEN'S WEARHOUSE INCORPORATED 1,286,652
24,900 STRIDE RITE CORPORATION 360,552
1,647,204
---------------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS - 0.13%
20,878 A. SCHULMAN INCORPORATED<< 516,731
---------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 0.78%
28,612 INVESTMENT TECHNOLOGY GROUP INCORPORATED+ 1,424,878
41,074 LABRANCHE & COMPANY INCORPORATED+<< 649,380
14,036 PIPER JAFFRAY COMPANIES INCORPORATED+ 771,980
10,741 SWS GROUP INCORPORATED 280,877
3,127,115
---------------
SOFTWARE - 0.14%
9,267 EPIQ SYSTEMS INCORPORATED+ 176,073
12,107 MANTECH INTERNATIONAL CORPORATION CLASS A+ 402,195
578,268
---------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 0.29%
18,847 APOGEE ENTERPRISES INCORPORATED 318,137
13,512 CARBO CERAMICS INCORPORATED<< 768,968
9,469 LIBBEY INCORPORATED 67,041
1,154,146
---------------
TELEPHONE SERVICES - 0.13%
14,803 COMMONWEALTH TELEPHONE ENTERPRISES INCORPORATED 509,963
---------------
TEXTILE MILL PRODUCTS - 0.65%
21,504 ALBANY INTERNATIONAL CORPORATION CLASS A 819,087
32,496 INTERFACE INCORPORATED+ 448,770
164
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
TEXTILE MILL PRODUCTS (CONTINUED)
9,903 OXFORD INDUSTRIES INCORPORATED $ 506,340
38,529 WOLVERINE WORLD WIDE INCORPORATED 852,647
2,626,844
---------------
TOBACCO PRODUCTS - 0.07%
59,037 ALLIANCE ONE INTERNATIONAL INCORPORATED 286,920
---------------
TRANSPORTATION BY AIR - 0.77%
15,825 BRISTOW GROUP INCORPORATED+ 488,993
22,084 EGL INCORPORATED+<< 993,780
24,519 FRONTIER AIRLINES INCORPORATED+<< 188,796
23,685 MESA AIR GROUP INCORPORATED+<< 270,957
39,205 SKYWEST INCORPORATED 1,147,530
3,090,056
---------------
TRANSPORTATION EQUIPMENT - 2.70%
24,067 AAR CORPORATION+<< 685,428
8,659 ARCTIC CAT INCORPORATED 208,336
34,957 CLARCOR INCORPORATED 1,244,469
43,212 FLEETWOOD ENTERPRISES INCORPORATED+<< 482,678
37,325 GENCORP INCORPORATED+<< 767,029
14,333 GROUP 1 AUTOMOTIVE INCORPORATED 681,391
18,023 MONACO COACH CORPORATION 241,508
49,869 OSHKOSH TRUCK CORPORATION 3,103,847
28,154 POLARIS INDUSTRIES INCORPORATED<< 1,536,082
8,000 STANDARD MOTOR PRODUCTS INCORPORATED<< 71,040
15,505 SUPERIOR INDUSTRIES INTERNATIONAL INCORPORATED 300,177
10,781 TRIUMPH GROUP INCORPORATED+ 477,167
21,086 WABASH NATIONAL CORPORATION 416,448
22,241 WINNEBAGO INDUSTRIES INCORPORATED<< 674,792
10,890,392
---------------
TRANSPORTATION SERVICES - 0.18%
13,686 HUB GROUP INCORPORATED CLASS A+ 623,808
11,959 PEGASUS SOLUTIONS INCORPORATED+ 112,534
736,342
---------------
WATER TRANSPORTATION - 0.30%
17,840 KIRBY CORPORATION+ 1,215,082
---------------
WHOLESALE TRADE NON-DURABLE GOODS - 1.53%
25,811 HAIN CELESTIAL GROUP INCORPORATED+ 675,990
21,199 MYERS INDUSTRIES INCORPORATED 338,972
8,961 NASH FINCH COMPANY<< 267,934
23,223 PERFORMANCE FOOD GROUP COMPANY+<< 724,325
15,547 SCHOOL SPECIALTY INCORPORATED+<< 536,372
22,650 TRACTOR SUPPLY COMPANY+ 1,502,601
165
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
WHOLESALE TRADE NON-DURABLE GOODS (CONTINUED)
28,427 UNITED NATURAL FOODS INCORPORATED+<< $ 994,092
21,399 UNITED STATIONERS INCORPORATED+ 1,136,287
6,176,573
---------------
WHOLESALE TRADE DURABLE GOODS - 2.73%
6,605 AM CASTLE & COMPANY 194,848
16,552 APPLIED INDUSTRIAL TECHNOLOGIES INCORPORATED 738,219
11,947 BARNES GROUP INCORPORATED 483,854
19,591 BUILDING MATERIALS HOLDINGS CORPORATION<< 698,223
14,005 DIGI INTERNATIONAL INCORPORATED+ 163,438
10,161 DREW INDUSTRIES INCORPORATED+ 361,224
32,530 INSIGHT ENTERPRISES INCORPORATED+ 715,985
16,200 KAMAN CORPORATION CLASS A 407,592
38,945 KNIGHT TRANSPORTATION INCORPORATED<< 769,164
3,110 LAWSON PRODUCTS INCORPORATED 127,323
9,421 LENOX GROUP INCORPORATED+ 123,415
31,236 LKQ CORPORATION+ 650,021
27,037 OWENS & MINOR INCORPORATED 886,002
36,701 PEP BOYS-MANNY, MOE & JACK 554,552
21,311 RELIANCE STEEL & ALUMINUM COMPANY 2,001,529
17,100 RYERSON INCORPORATED 457,596
35,643 SCP POOL CORPORATION 1,671,990
11,004,975
---------------
TOTAL COMMON STOCKS (COST $267,377,376) 394,221,664
---------------
COLLATERAL FOR SECURITIES LENDING - 19.88%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.01%
27,648 SCUDDER DAILY ASSETS MONEY MARKET FUND 27,648
20,949 SHORT TERM INVESTMENT COMPANY MONEY MARKET FUND 20,949
48,597
---------------
PRINCIPAL INTEREST RATE MATURITY DATE
COLLATERAL INVESTED IN OTHER ASSETS - 19.87%
$ 289,790 AMERICAN GENERAL FINANCE CORPORATION+/- 4.78% 04/13/2007 289,909
120,649 APRECO LLC 4.62 05/15/2006 119,975
264,063 APRECO LLC 4.94 06/15/2006 261,462
160,995 ASPEN FUNDING CORPORATION 4.92 04/03/2006 160,995
1,609,946 ATLAS CAPITAL FUNDING CORPORATION SERIES MTN+/- 4.62 11/03/2006 1,609,946
181,248 ATLAS CAPITAL FUNDING LIMITED 4.80 04/17/2006 180,912
386,387 ATLAS CAPITAL FUNDING LIMITED 4.62 05/15/2006 384,227
804,973 ATLAS CAPITAL FUNDING LIMITED+/- 4.80 10/20/2006 804,973
804,973 ATLAS CAPITAL FUNDING LIMITED+/- 4.80 12/22/2006 804,973
128,796 ATOMIUM FUNDING CORPORATION 4.53 04/12/2006 128,642
111,698 BETA FINANCE INCORPORATED SERIES MTN+/- 4.88 06/02/2006 111,713
16,035,058 BNP PARIBAS REPURCHASE AGREEMENT
(MATURITY VALUE $16,041,646) 4.93 04/03/2006 16,035,058
166
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 477,961 BUCKINGHAM CDO LLC++ 4.60% 04/06/2006 $ 477,769
1,566,992 BUCKINGHAM CDO LLC 4.82 04/21/2006 1,563,263
804,973 BUCKINGHAM CDO LLC 4.82 04/25/2006 802,630
837,172 BUCKINGHAM II CDO LLC++ 4.83 04/25/2006 834,736
3,219,891 BUCKINGHAM II CDO LLC 4.83 04/26/2006 3,210,103
965,967 CAIRN HIGH GRADE FUNDING I 4.59 04/06/2006 965,581
77,277 CAIRN HIGH GRADE FUNDING I 4.71 04/26/2006 77,042
1,352,354 CAIRN HIGH GRADE FUNDING I 4.83 04/27/2006 1,348,067
804,973 CAIRN HIGH GRADE FUNDING I++ 4.83 05/02/2006 801,890
418,586 CAIRN HIGH GRADE FUNDING I 4.77 05/10/2006 416,526
1,619,122 CEDAR SPRINGS CAPITAL COMPANY LLC 4.78 04/05/2006 1,618,701
444,345 CEDAR SPRINGS CAPITAL COMPANY LLC 4.69 05/08/2006 442,274
143,189 CEDAR SPRINGS CAPITAL COMPANY LLC 4.70 05/10/2006 142,484
643,978 CEDAR SPRINGS CAPITAL COMPANY LLC 4.72 05/12/2006 640,636
321,989 CEDAR SPRINGS CAPITAL COMPANY LLC 4.90 06/07/2006 319,165
856,974 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.92 06/12/2006 848,876
1,770,940 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.72 04/12/2006 1,770,940
321,989 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.75 04/18/2007 321,989
1,133,402 CONSOLIDATED EDISON INCORPORATED 4.90 04/03/2006 1,133,402
80,497 CORPORATE ASSET SECURITIZATION AUSTRALIA LIMITED 4.81 04/13/2006 80,391
998,166 CREDIT SUISSE FIRST BOSTON NEW YORK SERIES YCD1+/- 4.92 05/04/2006 997,667
804,973 CULLINAN FINANCE CORPORATION+/- 4.71 11/15/2006 804,941
643,978 DEER VALLEY FUNDING LLC++ 4.51 04/10/2006 643,379
822,843 DEER VALLEY FUNDING LLC 4.81 04/17/2006 821,321
1,961,783 DEER VALLEY FUNDING LLC 4.83 04/19/2006 1,957,624
418,586 DEER VALLEY FUNDING LLC 4.80 05/03/2006 416,924
1,609,946 DEUTSCHE BANK REPURCHASE AGREEMENT
(MATURITY VALUE $1,610,595) 4.84 04/03/2006 1,609,946
1,541,974 EIFFEL FUNDING LLC 4.91 04/03/2006 1,541,974
96,597 EIFFEL FUNDING LLC 4.78 04/17/2006 96,418
1,159,837 EUREKA SECURITIZATION INCORPORATED 4.88 05/16/2006 1,153,203
26,532 GALLEON CAPITAL LLC 4.65 04/03/2006 26,532
48,298 GEMINI SECURITIZATION INCORPORATED 4.90 05/24/2006 47,969
772,774 GOLDMAN SACHS GROUP INCORPORATED+/- 4.97 06/30/2006 772,774
2,307,052 HARRIER FINANCE FUNDING LLC 4.62 04/03/2006 2,307,052
515,183 ING USA ANNUITY & LIFE INSURANCE+/- 5.03 06/06/2006 515,183
6,465,856 JP MORGAN CHASE SECURITIES CORPORATION REPURCHASE AGREEMENT
(MATURITY VALUE $6,468,512) 4.93 04/03/2006 6,465,856
41,859 K2 (USA) LLC 4.63 05/02/2006 41,698
148,920 K2 (USA) LLC SERIES MTN+/- 4.87 07/24/2006 148,957
482,984 KAUPTHING BANK HF SERIES MTN+/-++ 4.84 03/20/2007 482,887
64,398 KLIO II FUNDING CORPORATION 4.58 04/05/2006 64,381
77,599 KLIO III FUNDING CORPORATION 4.69 04/19/2006 77,435
32,199 LEXINGTON PARKER CAPITAL CORPORATION 4.62 05/02/2006 32,076
122,227 LEXINGTON PARKER CAPITAL CORPORATION 4.69 05/10/2006 121,626
804,973 LIBERTY LIGHT US CAPITAL SERIES MTN+/- 4.81 05/26/2006 805,021
64,398 LINKS FINANCE LLC SERIES MTN1+/- 4.68 09/12/2006 64,398
167
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 193,193 LIQUID FUNDING LIMITED+/- 4.94% 04/24/2006 $ 193,201
740,575 LIQUID FUNDING LIMITED+/- 4.71 08/14/2006 740,575
482,984 LIQUID FUNDING LIMITED+/- 4.61 12/01/2006 482,984
193,193 LIQUID FUNDING LIMITED SERIES MTN+/- 4.83 02/20/2007 193,184
321,989 MBIA GLOBAL FUNDING LLC+/- 4.78 02/20/2007 321,970
1,617,995 MERRILL LYNCH & COMPANY SERIES MTN+/- 4.80 10/27/2006 1,619,209
965,967 MORGAN STANLEY+/- 4.94 10/10/2006 965,967
148,920 MORGAN STANLEY SERIES EXL+/- 4.78 08/13/2010 148,960
554,433 MORTGAGE INTEREST NET TRUST 4.68 04/03/2006 554,433
727,695 MORTGAGE INTEREST NET TRUST 4.78 05/03/2006 724,806
32,199 NATIONWIDE BUILDING SOC+/- 4.74 07/21/2006 32,214
710,083 NEWPORT FUNDING CORPORATION 4.92 04/03/2006 710,083
974,951 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 4.78 04/03/2006 974,951
1,126,962 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.68 04/04/2006 1,126,815
143,543 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.93 06/26/2006 141,915
61,178 NORDEA NORTH AMERICA INCORPORATED 4.89 05/15/2006 60,836
1,698,493 NORTHERN ROCK PLC+/- 4.63 04/21/2006 1,698,255
127,282 NORTHERN ROCK PLC 4.69 04/24/2006 126,928
1,609,946 NORTHERN ROCK PLC+/- 4.66 02/05/2007 1,609,962
130,245 RACERS TRUST 2004-6-MM+/- 4.79 05/22/2006 130,263
32,199 SCALDIS CAPITAL LIMITED 4.93 06/15/2006 31,882
128,796 TANGO FINANCE CORPORATION 4.95 06/21/2006 127,423
372,316 TANGO FINANCE CORPORATION SERIES MTN+/- 4.87 10/25/2006 372,439
186,142 TRAVELERS INSURANCE COMPANY+/- 4.77 02/09/2007 186,138
804,973 UNICREDITO ITALIANO SERIES LIB+/- 4.70 03/09/2007 804,925
804,973 UNICREDITO ITALIANO SERIES YCD+/- 4.47 04/03/2006 804,973
1,223,559 US BANK NA SERIES BKNT+/- 4.66 07/28/2006 1,223,595
321,989 WHISTLEJACKET CAPITAL LIMITED+/- 4.65 06/09/2006 321,989
32,199 WHITE PINE FINANCE LLC 4.64 04/18/2006 32,135
160,995 WHITE PINE FINANCE LLC 4.82 05/05/2006 160,309
131,436 WHITE PINE FINANCE LLC 4.84 05/25/2006 130,523
98,915 WHITE PINE FINANCE LLC 4.93 06/20/2006 97,874
849,697 WHITE PINE FINANCE LLC 4.93 06/22/2006 840,520
804,973 WHITE PINE FINANCE LLC+/- 4.70 07/17/2006 804,973
772,774 WHITE PINE FINANCE LLC SERIES MTN1+/- 4.81 06/12/2006 772,843
79,996,544
---------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $80,045,141) 80,045,141
---------------
SHORT-TERM INVESTMENTS - 1.55%
SHARES
MUTUAL FUND - 1.45%
5,844,883 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~&& 5,844,883
---------------
168
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
US TREASURY BILLS - 0.10%
$ 85,000 US TREASURY BILL^# 4.16% 05/11/2006 $ 84,606
315,000 US TREASURY BILL^# 4.48 08/10/2006 309,885
394,491
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $6,239,455) 6,239,374
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $353,661,972)* 119.31% $ 480,506,179
OTHER ASSETS AND LIABILITIES, NET (19.31) (77,780,827)
------ ---------------
TOTAL NET ASSETS 100.00% $ 402,725,352
====== ===============
+ NON-INCOME EARNING SECURITIES.
<< ALL OR A PORTION OF THIS SECURITY IS ON LOAN. (SEE NOTE 2)
(A) SECURITY FAIR VALUED IN ACCORDANCE WITH THE PROCEDURES APPROVED BY THE
BOARD OF TRUSTEES.
+/- VARIABLE RATE INVESTMENTS.
++ SECURITIES THAT MAY BE RESOLD TO "QUALIFIED INSTITUTIONAL BUYERS" UNDER
RULE 144A OR SECURITIES OFFERED PURSUANT TO SECTION 4 (2) OF THE
SECURITIES ACT OF 1933, AS AMENDED.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
&& SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $5,844,883.
^ ZERO COUPON BOND. INTEREST RATE PRESENTED IS YIELD TO MATURITY.
# SECURITY PLEDGED AS COLLATERAL FOR FUTURES TRANSACTIONS.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
169
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 97.64%
APPAREL & ACCESSORY STORES - 1.83%
136,000 CARTER'S INCORPORATED+ $ 9,178,640
1,451,600 WET SEAL INCORPORATED CLASS A+ 9,653,140
18,831,780
---------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS - 0.83%
615,400 QUIKSILVER INCORPORATED+ 8,529,444
---------------
BUSINESS SERVICES - 16.15%
408,500 ACCESS INTEGRATED TECHNOLOGIES INCORPORATED+ 5,249,225
145,400 ADMINISTAFF INCORPORATED 7,903,944
664,400 CNET NETWORKS INCORPORATED+ 9,441,124
474,500 COGENT INCORPORATED+<< 8,702,330
892,500 EPICOR SOFTWARE CORPORATION+ 11,986,275
581,500 GERBER SCIENTIFIC INCORPORATED 6,012,710
557,100 HUDSON HIGHLAND GROUP INCORPORATED+ 10,551,474
238,250 HYPERION SOLUTIONS CORPORATION+ 7,766,950
1,169,200 LIONBRIDGE TECHNOLOGIES INCORPORATED+ 9,248,372
207,600 MARCHEX INCORPORATED CLASS B+ 4,463,400
803,200 OPSWARE INCORPORATED+ 6,883,424
837,040 PARAMETRIC TECHNOLOGY CORPORATION+ 13,668,863
421,800 PDF SOLUTIONS INCORPORATED+ 7,980,456
338,600 PERFICIENT INCORPORATED+ 3,931,146
782,000 QUEST SOFTWARE INCORPORATED+ 13,059,400
1,269,200 TIBCO SOFTWARE INCORPORATED+<< 10,610,512
470,500 ULTIMATE SOFTWARE GROUP INCORPORATED+ 12,162,425
164,100 WEBEX COMMUNICATIONS INCORPORATED+ 5,525,247
427,400 WITNESS SYSTEMS INCORPORATED+ 10,855,960
166,003,237
---------------
CHEMICALS & ALLIED PRODUCTS - 9.55%
423,300 ALKERMES INCORPORATED+ 9,333,765
567,300 CARDIOME PHARMA CORPORATION+ 7,204,710
425,300 CONNECTICS CORPORATION+ 7,200,329
543,000 ENCYSIVE PHARMACEUTICALS INCORPORATED+ 2,655,270
728,400 GENITOPE CORPORATION+ 6,337,080
183,350 NEUROCRINE BIOSCIENCES INCORPORATED+ 11,833,409
328,400 NUVELO INCORPORATED+<< 5,852,088
515,200 ONYX PHARMACEUTICALS INCORPORATED+ 13,529,152
349,800 PDL BIOPHARMA INCORPORATED+<< 11,473,440
997,500 SANTARUS INCORPORATED+<< 7,451,325
599,900 SOLEXA INCORPORATED+<< 5,987,002
427,300 ZYMOGENETICS INCORPORATED+ 9,238,226
98,095,796
---------------
170
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMUNICATIONS - 1.07%
176,500 CHINA GRENTECH CORPORATION LIMITED ADR+ $ 3,018,150
1,587,200 EXTREME NETWORKS INCORPORATED+ 7,967,744
10,985,894
---------------
COMPUTER SOFTWARE & SERVICES - 0.20%
164,700 NESS TECHNOLOGIES INCORPORATED+ 2,073,573
---------------
EATING & DRINKING PLACES - 0.47%
276,500 MORTON'S RESTAURANT GROUP INCORPORATED+ 4,805,570
---------------
ELECTRIC, GAS & SANITARY SERVICES - 0.73%
253,500 CLEAN HARBORS INCORPORATED+ 7,521,345
---------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 12.80%
873,300 ADVANCED ANALOGIC TECHNOLOGIES INCORPORATED+<< 9,955,620
523,300 ADVANCED ENERGY INDUSTRIES INCORPORATED+ 7,394,229
242,300 ATHEROS COMMUNICATIONS INCORPORATED+ 6,345,837
281,300 DSP GROUP INCORPORATED+ 8,160,513
1,227,600 INTEGRATED DEVICE TECHNOLOGY INCORPORATED+ 18,242,136
516,600 MATTSON TECHNOLOGY INCORPORATED+ 6,199,200
147,300 NICE SYSTEMS LIMITED SPONSORED ADR+ 7,506,408
211,200 ON TRACK INNOVATIONS LIMITED+<< 2,650,560
599,400 OPENWAVE SYSTEMS INCORPORATED+ 12,935,052
372,100 OSI SYSTEMS INCORPORATED+ 7,862,473
1,176,700 PMC-SIERRA INCORPORATED+<< 14,461,643
412,400 RADYNE COMSTREAME INCORPORATED+ 6,586,028
447,500 TEKELEC+ 6,188,925
305,100 TESSERA TECHNOLOGIES INCORPORATED+ 9,787,608
260,100 VARIAN SEMICONDUCTOR EQUIPMENT ASSOCIATES INCORPORATED+ 7,303,608
131,579,840
---------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES - 5.46%
219,200 CORE LABORATORIES NV+ 10,422,960
305,000 DIGITAS INCORPORATED+ 4,392,000
214,700 GEN-PROBE INCORPORATED+<< 11,834,264
480,100 KERYX BIOPHARMACEUTICALS INCORPORATED+ 9,174,711
177,100 LIFECELL CORPORATION+ 3,993,605
260,200 PHARMACEUTICAL PRODUCT DEVELOPMENT INCORPORATED 9,005,522
261,100 SYMYX TECHNOLOGIES INCORPORATED+ 7,242,914
56,065,976
---------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT - 0.90%
154,100 NCI BUILDING SYSTEMS INCORPORATED+<< 9,210,557
---------------
FOOD & KINDRED PRODUCTS - 0.33%
153,100 ALTUS PHARMACEUTICALS INCORPORATED+ 3,357,483
---------------
FURNITURE & FIXTURES - 1.06%
643,200 LA-Z-BOY INCORPORATED 10,934,400
---------------
171
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
GENERAL MERCHANDISE STORES - 1.89%
645,700 BIG LOTS INCORPORATED+ $ 9,013,972
154,600 BON TON STORES INCORPORATED<< 5,001,310
370,100 RETAIL VENTURES INCORPORATED+ 5,425,666
19,440,948
---------------
HEALTH SERVICES - 2.72%
258,500 COMMUNITY HEALTH SYSTEMS INCORPORATED+ 9,344,775
1,085,900 HUMAN GENOME SCIENCES INCORPORATED+<< 11,803,733
430,600 VALEANT PHARMACEUTICALS INTERNATIONAL 6,825,010
27,973,518
---------------
HOLDING & OTHER INVESTMENT OFFICES - 0.39%
362,800 CAPITAL LEASE FUNDING INCORPORATED 4,023,452
---------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 1.58%
548,600 KNOLL INCORPORATED 11,696,152
798,500 RESTORATION HARDWARE INCORPORATED+ 4,543,465
16,239,617
---------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 0.70%
157,600 GAYLORD ENTERTAINMENT COMPANY+ 7,151,888
---------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 2.09%
715,300 NUANCE COMMUNICATIONS INCORPORATED+ 8,447,693
114,300 RACKABLE SYSTEMS INCORPORATED+<< 6,040,755
481,100 SIGMA DESIGNS INCORPORATED+<< 7,019,249
21,507,697
---------------
INSURANCE CARRIERS - 1.40%
318,600 AXIS CAPITAL HOLDINGS LIMITED 9,526,140
259,100 HEALTHSPRING INCORPORATED+<< 4,821,851
14,347,991
---------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 10.98%
237,500 COHERENT INCORPORATED+<< 8,338,625
202,200 DEXCOM INCORPORATED+<< 4,098,594
306,100 ESTERLINE TECHNOLOGIES CORPORATION+ 13,085,775
223,300 FORMFACTOR INCORPORATED+ 8,780,156
456,900 ILLUMINA INCORPORATED+ 10,851,375
768,500 INPUT OUTPUT INCORPORATED+<< 7,462,135
264,500 INTEGRA LIFESCIENCES HOLDINGS+ 10,839,210
1,487,500 LTX CORPORATION+ 8,032,500
240,000 NEXTEST SYSTEMS CORPORATION+ 3,890,400
155,900 NOVATEL INCORPORATED+ 5,748,033
225,000 NUCRYST PHARMACEUTICALS CORPORATION+ 2,335,500
332,700 RUDOLPH TECHNOLOGIES INCORPORATED+ 5,672,535
94,200 SONOSITE INCORPORATED+ 3,828,288
172
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS (CONTINUED)
674,100 THORATEC LABS CORPORATION+ $ 12,989,907
348,600 WRIGHT MEDICAL GROUP INCORPORATED+ 6,884,850
112,837,883
---------------
METAL MINING - 1.17%
784,700 NOVAGOLD RESOURCES INCORPORATED+<< 12,005,910
---------------
MISCELLANEOUS RETAIL - 3.36%
320,900 AC MOORE ARTS & CRAFTS INCORPORATED+ 5,904,560
397,900 CKX INCORPORATED+ 5,200,553
480,500 DOLLAR TREE STORES INCORPORATED+<< 13,295,435
249,800 WORLD FUEL SERVICES CORPORATION 10,101,912
34,502,460
---------------
NON-DEPOSITORY CREDIT INSTITUTIONS - 1.37%
566,311 CAPITALSOURCE INCORPORATED<< 14,089,818
---------------
OIL & GAS EXTRACTION - 5.54%
272,400 BASIC ENERGY SERVICES INCORPORATED+ 8,117,520
385,700 BOIS D' ARC ENERGY INCORPORATED+ 6,421,905
248,800 BRONCO DRILLING COMPANY INCORPORATED+ 6,543,440
1,001,500 PETROHAWK ENERGY CORPORATION+ 13,720,550
231,500 PIONEER NATURAL RESOURCES COMPANY<< 10,243,875
799,000 WARREN RESOURCES INCORPORATED+<< 11,905,100
56,952,390
---------------
PRIMARY METAL INDUSTRIES - 1.84%
125,500 CHAPARRAL STEEL COMPANY+ 8,147,460
196,900 RTI INTERNATIONAL METALS INCORPORATED+<< 10,799,965
18,947,425
---------------
RAILROAD TRANSPORTATION - 0.65%
217,800 GENESEE & WYOMING INCORPORATED+ 6,682,104
---------------
SOCIAL SERVICES - 0.57%
179,900 PROVIDENCE SERVICE CORPORATION+ 5,850,348
---------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 1.26%
233,800 APOGEE ENTERPRISES INCORPORATED 3,946,544
621,700 US CONCRETE INCORPORATED+ 8,989,782
12,936,326
---------------
TEXTILE MILL PRODUCTS - 1.31%
262,400 OXFORD INDUSTRIES INCORPORATED 13,416,512
---------------
TRANSPORTATION BY AIR - 2.43%
120,300 ATLAS AIR WORLDWIDE HOLDINGS INCORPORATED+ 5,666,130
182,300 CHC HELICOPTER CORPORATION 4,639,535
173
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
TRANSPORTATION BY AIR (CONTINUED)
527,600 REPUBLIC AIRWAYS HOLDINGS INCORPORATED+<< $ 7,813,756
170,500 US AIRWAYS GROUP INCORPORATED+<< 6,820,000
24,939,421
---------------
TRANSPORTATION EQUIPMENT - 0.63%
336,700 COMMERCIAL VEHICLE GROUP INCORPORATED+ 6,468,007
---------------
WHOLESALE TRADE NON-DURABLE GOODS - 1.64%
246,600 HERBALIFE LIMITED+ 8,327,682
286,100 NASH FINCH COMPANY 8,554,390
16,882,072
---------------
WHOLESALE TRADE DURABLE GOODS - 2.74%
367,500 AVNET INCORPORATED+ 9,327,150
318,900 CYTYC CORPORATION+<< 8,986,602
470,900 LKQ CORPORATION+ 9,799,429
28,113,181
---------------
TOTAL COMMON STOCKS (COST $820,281,439) 1,003,303,863
---------------
COLLATERAL FOR SECURITIES LENDING - 10.04%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.01%
35,616 SCUDDER DAILY ASSETS MONEY MARKET FUND 35,616
26,987 SHORT TERM INVESTMENT COMPANY MONEY MARKET FUND 26,987
62,603
---------------
PRINCIPAL INTEREST RATE MATURITY DATE
COLLATERAL INVESTED IN OTHER ASSETS - 10.03%
$ 373,305 AMERICAN GENERAL FINANCE CORPORATION+/- 4.78% 04/13/2007 $ 373,458
155,419 APRECO LLC 4.62 05/15/2006 154,551
340,164 APRECO LLC 4.94 06/15/2006 336,813
207,392 ASPEN FUNDING CORPORATION 4.92 04/03/2006 207,392
2,073,918 ATLAS CAPITAL FUNDING CORPORATION SERIES MTN+/- 4.62 11/03/2006 2,073,918
233,482 ATLAS CAPITAL FUNDING LIMITED 4.80 04/17/2006 233,050
497,740 ATLAS CAPITAL FUNDING LIMITED 4.62 05/15/2006 494,958
1,036,959 ATLAS CAPITAL FUNDING LIMITED+/- 4.80 10/20/2006 1,036,959
1,036,959 ATLAS CAPITAL FUNDING LIMITED+/- 4.80 12/22/2006 1,036,959
165,913 ATOMIUM FUNDING CORPORATION 4.53 04/12/2006 165,716
143,888 BETA FINANCE INCORPORATED SERIES MTN+/- 4.88 06/02/2006 143,907
20,656,225 BNP PARIBAS REPURCHASE AGREEMENT
(MATURITY VALUE $20,664,711) 4.93 04/03/2006 20,656,225
615,705 BUCKINGHAM CDO LLC++ 4.60 04/06/2006 615,459
2,018,586 BUCKINGHAM CDO LLC 4.82 04/21/2006 2,013,782
1,036,959 BUCKINGHAM CDO LLC 4.82 04/25/2006 1,033,942
1,078,437 BUCKINGHAM II CDO LLC++ 4.83 04/25/2006 1,075,299
4,147,836 BUCKINGHAM II CDO LLC 4.83 04/26/2006 4,135,227
174
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 1,244,351 CAIRN HIGH GRADE FUNDING I 4.59% 04/06/2006 $ 1,243,853
99,548 CAIRN HIGH GRADE FUNDING I 4.71 04/26/2006 99,245
1,742,091 CAIRN HIGH GRADE FUNDING I 4.83 04/27/2006 1,736,569
1,036,959 CAIRN HIGH GRADE FUNDING I++ 4.83 05/02/2006 1,032,988
539,219 CAIRN HIGH GRADE FUNDING I 4.77 05/10/2006 536,566
2,085,740 CEDAR SPRINGS CAPITAL COMPANY LLC 4.78 04/05/2006 2,085,197
572,401 CEDAR SPRINGS CAPITAL COMPANY LLC 4.69 05/08/2006 569,734
184,454 CEDAR SPRINGS CAPITAL COMPANY LLC 4.70 05/10/2006 183,547
829,567 CEDAR SPRINGS CAPITAL COMPANY LLC 4.72 05/12/2006 825,262
414,784 CEDAR SPRINGS CAPITAL COMPANY LLC 4.90 06/07/2006 411,146
1,103,947 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.92 06/12/2006 1,093,514
2,281,310 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.72 04/12/2006 2,281,310
414,784 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.75 04/18/2007 414,784
1,460,038 CONSOLIDATED EDISON INCORPORATED 4.90 04/03/2006 1,460,038
103,696 CORPORATE ASSET SECURITIZATION AUSTRALIA LIMITED 4.81 04/13/2006 103,559
1,285,829 CREDIT SUISSE FIRST BOSTON NEW YORK SERIES YCD1+/- 4.92 05/04/2006 1,285,186
1,036,959 CULLINAN FINANCE CORPORATION+/- 4.71 11/15/2006 1,036,918
829,567 DEER VALLEY FUNDING LLC++ 4.51 04/10/2006 828,796
1,059,980 DEER VALLEY FUNDING LLC 4.81 04/17/2006 1,058,019
2,527,152 DEER VALLEY FUNDING LLC 4.83 04/19/2006 2,521,795
539,219 DEER VALLEY FUNDING LLC 4.80 05/03/2006 537,078
2,073,918 DEUTSCHE BANK REPURCHASE AGREEMENT
(MATURITY VALUE $2,074,754) 4.84 04/03/2006 2,073,918
1,986,357 EIFFEL FUNDING LLC 4.91 04/03/2006 1,986,357
124,435 EIFFEL FUNDING LLC 4.78 04/17/2006 124,205
1,494,092 EUREKA SECURITIZATION INCORPORATED 4.88 05/16/2006 1,485,546
34,178 GALLEON CAPITAL LLC 4.65 04/03/2006 34,178
62,218 GEMINI SECURITIZATION INCORPORATED 4.90 05/24/2006 61,794
995,481 GOLDMAN SACHS GROUP INCORPORATED+/- 4.97 06/30/2006 995,481
2,971,925 HARRIER FINANCE FUNDING LLC 4.62 04/03/2006 2,971,925
663,654 ING USA ANNUITY & LIFE INSURANCE+/- 5.03 06/06/2006 663,654
8,329,260 JP MORGAN CHASE SECURITIES CORPORATION REPURCHASE AGREEMENT
(MATURITY VALUE $8,332,682) 4.93 04/03/2006 8,329,260
53,922 K2 (USA) LLC 4.63 05/02/2006 53,715
191,837 K2 (USA) LLC SERIES MTN+/- 4.87 07/24/2006 191,885
622,175 KAUPTHING BANK HF SERIES MTN+/-++ 4.84 03/20/2007 622,051
82,957 KLIO II FUNDING CORPORATION 4.58 04/05/2006 82,935
99,963 KLIO III FUNDING CORPORATION 4.69 04/19/2006 99,751
41,478 LEXINGTON PARKER CAPITAL CORPORATION 4.62 05/02/2006 41,320
157,452 LEXINGTON PARKER CAPITAL CORPORATION 4.69 05/10/2006 156,677
1,036,959 LIBERTY LIGHT US CAPITAL SERIES MTN+/- 4.81 05/26/2006 1,037,021
82,957 LINKS FINANCE LLC SERIES MTN1+/- 4.68 09/12/2006 82,958
248,870 LIQUID FUNDING LIMITED+/- 4.94 04/24/2006 248,880
954,002 LIQUID FUNDING LIMITED+/- 4.71 08/14/2006 954,002
622,175 LIQUID FUNDING LIMITED+/- 4.61 12/01/2006 622,175
248,870 LIQUID FUNDING LIMITED SERIES MTN+/- 4.83 02/20/2007 248,858
414,784 MBIA GLOBAL FUNDING LLC+/- 4.78 02/20/2007 414,759
175
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 2,084,288 MERRILL LYNCH & COMPANY SERIES MTN+/- 4.80% 10/27/2006 $ 2,085,851
1,244,351 MORGAN STANLEY+/- 4.94 10/10/2006 1,244,351
191,837 MORGAN STANLEY SERIES EXL+/- 4.78 08/13/2010 191,889
714,216 MORTGAGE INTEREST NET TRUST 4.68 04/03/2006 714,216
937,411 MORTGAGE INTEREST NET TRUST 4.78 05/03/2006 933,690
41,478 NATIONWIDE BUILDING SOC+/- 4.74 07/21/2006 41,498
914,722 NEWPORT FUNDING CORPORATION 4.92 04/03/2006 914,722
1,255,923 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 4.78 04/03/2006 1,255,923
1,451,743 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.68 04/04/2006 1,451,554
184,911 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.93 06/26/2006 182,814
78,809 NORDEA NORTH AMERICA INCORPORATED 4.89 05/15/2006 78,368
2,187,984 NORTHERN ROCK PLC+/- 4.63 04/21/2006 2,187,677
163,964 NORTHERN ROCK PLC 4.69 04/24/2006 163,508
2,073,918 NORTHERN ROCK PLC+/- 4.66 02/05/2007 2,073,939
167,780 RACERS TRUST 2004-6-MM+/- 4.79 05/22/2006 167,804
41,478 SCALDIS CAPITAL LIMITED 4.93 06/15/2006 41,070
165,913 TANGO FINANCE CORPORATION 4.95 06/21/2006 164,145
479,614 TANGO FINANCE CORPORATION SERIES MTN+/- 4.87 10/25/2006 479,773
239,786 TRAVELERS INSURANCE COMPANY+/- 4.77 02/09/2007 239,782
1,036,959 UNICREDITO ITALIANO SERIES LIB+/- 4.70 03/09/2007 1,036,897
1,036,959 UNICREDITO ITALIANO SERIES YCD+/- 4.47 04/03/2006 1,036,959
1,576,178 US BANK NA SERIES BKNT+/- 4.66 07/28/2006 1,576,225
414,784 WHISTLEJACKET CAPITAL LIMITED+/- 4.65 06/09/2006 414,784
41,478 WHITE PINE FINANCE LLC 4.64 04/18/2006 41,396
207,392 WHITE PINE FINANCE LLC 4.82 05/05/2006 206,508
169,315 WHITE PINE FINANCE LLC 4.84 05/25/2006 168,138
127,422 WHITE PINE FINANCE LLC 4.93 06/20/2006 126,080
1,094,573 WHITE PINE FINANCE LLC 4.93 06/22/2006 1,082,751
1,036,959 WHITE PINE FINANCE LLC+/- 4.70 07/17/2006 1,036,959
995,481 WHITE PINE FINANCE LLC SERIES MTN1+/- 4.81 06/12/2006 995,570
103,050,865
---------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $103,113,468) 103,113,468
---------------
SHARES
WARRANTS - 0.00%
36,152 TIMCO AVIATION SERVICES INCORPORATED+(A) 5
TOTAL WARRANTS (COST $0) 5
---------------
176
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
SHORT-TERM INVESTMENTS - 3.71%
38,116,747 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~&& $ 38,116,747
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $38,116,747) 38,116,747
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $961,511,654)* 111.39% $ 1,144,534,083
OTHER ASSETS AND LIABILITIES, NET (11.39) (117,006,457)
------ ---------------
TOTAL NET ASSETS 100.00% $ 1,027,527,626
====== ===============
+ NON-INCOME EARNING SECURITIES.
<< ALL OR A PORTION OF THIS SECURITY IS ON LOAN. (SEE NOTE 2)
+/- VARIABLE RATE INVESTMENTS.
++ SECURITIES THAT MAY BE RESOLD TO "QUALIFIED INSTITUTIONAL BUYERS" UNDER
RULE 144A OR SECURITIES OFFERED PURSUANT TO SECTION 4 (2) OF THE
SECURITIES ACT OF 1933, AS AMENDED.
(A) SECURITY FAIR VALUED IN ACCORDANCE WITH THE PROCEDURES APPROVED BY THE
BOARD OF TRUSTEES.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
&& SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $38,116,747.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
177
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 95.89%
APPAREL & ACCESSORY STORES - 4.00%
254,930 AEROPOSTALE INCORPORATED+ $ 7,688,689
209,200 CACHE INCORPORATED+ 3,836,728
242,390 DSW INCORPORATED+<< 7,591,655
400,510 HOT TOPIC INCORPORATED+ 5,807,395
24,924,467
---------------
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS - 0.93%
172,170 MARINEMAX INCORPORATED+<< 5,771,138
---------------
AUTOMOTIVE REPAIR, SERVICES & PARKING - 1.12%
154,046 DOLLAR THRIFTY AUTOMOTIVE GROUP INCORPORATED+ 6,993,688
---------------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS - 2.29%
277,760 PERINI CORPORATION+<< 8,435,571
210,150 WCI COMMUNITIES INCORPORATED+<< 5,846,373
14,281,944
---------------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS - 0.62%
168,990 BUILDERS FIRSTSOURCE INCORPORATED+ 3,837,763
---------------
BUSINESS SERVICES - 6.65%
182,270 ASSET ACCEPTANCE CAPITAL CORPORATION+ 3,548,797
283,320 AVOCENT CORPORATION+ 8,992,577
365,090 BISYS GROUP INCORPORATED+ 4,921,413
286,990 NCO GROUP INCORPORATED+ 6,816,013
302,580 RENT-A-CENTER INCORPORATED+ 7,743,022
261,540 SYNNEX CORPORATION+ 4,854,182
191,000 TAL INTERNATIONAL GROUP INCORPORATED+<< 4,605,010
41,481,014
---------------
CHEMICALS & ALLIED PRODUCTS - 5.22%
457,220 CF INDUSTRIES HOLDINGS INCORPORATED<< 7,768,168
128,510 CYTEC INDUSTRIES INCORPORATED 7,711,885
95,410 DIAGNOSTIC PRODUCTS CORPORATION 4,544,378
234,880 FIRST HORIZON PHARMACEUTICAL CORPORATION+<< 5,921,325
541,380 PRESTIGE BRANDS HOLDINGS INCORPORATED+ 6,588,595
32,534,351
---------------
COMMUNICATIONS - 3.33%
1,505,380 CINCINNATI BELL INCORPORATED+<< 6,804,318
332,290 IOWA TELECOMMUNICATIONS SERVICES INCORPORATED 6,340,093
580,200 VALOR COMMUNICATIONS GROUP INCORPORATED 7,635,432
20,779,843
---------------
DEPOSITORY INSTITUTIONS - 11.23%
512,120 BANKATLANTIC BANCORP INCORPORATED CLASS A 7,369,407
347,590 COMMERCIAL CAPITAL BANCORPORATION INCORPORATED 4,887,115
129,480 CULLEN FROST BANKERS INCORPORATED 6,959,550
178
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
DEPOSITORY INSTITUTIONS (CONTINUED)
328,050 DIME COMMUNITY BANCSHARES $ 4,714,079
130,110 FIRST REPUBLIC BANK 4,920,760
303,940 FRANKLIN BANK CORPORATION+ 5,844,766
145,460 INVESTORS FINANCIAL SERVICES CORPORATION<< 6,817,710
162,740 PFF BANCORP INCORPORATED 5,485,966
351,630 PROVIDENT FINANCIAL SERVICES INCORPORATED 6,364,503
213,560 SOUTH FINANCIAL GROUP INCORPORATED 5,584,594
236,800 SUSQUEHANNA BANCSHARES INCORPORATED 6,102,336
173,680 UMPQUA HOLDINGS CORPORATION 4,949,880
70,000,666
---------------
EATING & DRINKING PLACES - 3.22%
720,410 CKE RESTAURANTS INCORPORATED<< 12,535,134
213,800 LANDRY'S RESTAURANTS INCORPORATED<< 7,553,554
20,088,688
---------------
ELECTRIC, GAS & SANITARY SERVICES - 0.73%
205,000 CLECO CORPORATION 4,577,651
4,577,651
---------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 7.80%
432,100 AMIS HOLDINGS INCORPORATED+ 3,914,826
314,600 FAIRCHILD SEMICONDUCTOR INTERNATIONAL INCORPORATED+<< 5,999,422
723,590 GRAFTECH INTERNATIONAL LIMITED+ 4,413,899
439,030 GSI LUMONICS INCORPORATED+ 4,851,282
271,770 HUTCHINSON TECHNOLOGY INCORPORATED+<< 8,199,301
360,850 MERCURY COMPUTER SYSTEMS INCORPORATED+ 5,845,770
345,600 PHOTRONICS INCORPORATED+ 6,483,456
183,910 PORTALPLAYER INCORPORATED+<< 4,088,319
232,500 WESTAR ENERGY INCORPORATED 4,838,325
48,634,600
---------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES - 0.42%
136,640 LECG CORPORATION+ 2,633,053
---------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT - 0.91%
574,990 JACUZZI BRANDS INCORPORATED+ 5,652,152
---------------
FOOD & KINDRED PRODUCTS - 1.54%
582,470 HERCULES INCORPORATED+ 8,038,086
87,720 PREMIUM STANDARD FARMS INCORPORATED 1,539,486
9,577,572
---------------
FURNITURE & FIXTURES - 0.92%
233,600 FURNITURE BRANDS INTERNATIONAL INCORPORATED<< 5,725,536
---------------
179
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
HEALTH SERVICES - 2.80%
174,780 APRIA HEALTHCARE GROUP INCORPORATED+ $ 4,016,444
125,160 GENESIS HEALTHCARE CORPORATION+ 5,499,530
196,650 MAGELLAN HEALTH SERVICES INCORPORATED+ 7,958,426
17,474,400
---------------
HOLDING & OTHER INVESTMENT OFFICES - 7.74%
251,870 AMERICAN CAMPUS COMMUNITIES 6,525,952
271,460 BIOMED REALTY TRUST INCORPORATED 8,046,074
236,690 EQUITY ONE INCORPORATED 5,813,106
347,690 FELCOR LODGING TRUST INCORPORATED<< 7,336,259
363,730 STRATEGIC HOTELS & RESORTS INCORPORATED 8,467,635
236,160 SUNSTONE HOTEL INVESTORS INCORPORATED 6,841,555
259,820 U-STORE-IT TRUST 5,235,373
48,265,954
---------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 0.87%
315,690 COST PLUS INCORPORATED+<< 5,398,299
---------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 0.95%
130,820 GAYLORD ENTERTAINMENT COMPANY+<< 5,936,612
---------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 5.48%
340,700 AGCO CORPORATION+<< 7,066,118
620,430 DOT HILL SYSTEMS CORPORATION+ 4,405,053
479,060 EMULEX CORPORATION+ 8,187,136
313,852 SPARTECH CORPORATION 7,532,448
215,390 TIMKEN COMPANY 6,950,635
34,141,390
---------------
INSURANCE CARRIERS - 5.73%
391,950 AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY<< 5,620,563
155,560 ARGONAUT GROUP INCORPORATED+ 5,530,158
178,650 ASSURED GUARANTY LIMITED 4,466,250
117,340 INFINITY PROPERTY & CASUALTY CORPORATION 4,897,771
161,600 MOLINA HEALTHCARE INCORPORATED+ 5,408,752
182,630 PLATINUM UNDERWRITERS HOLDINGS LIMITED<< 5,314,533
292,090 UNIVERSAL AMERICAN FINANCIAL CORPORATION+ 4,498,186
35,736,213
---------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 1.56%
167,200 ARMOR HOLDINGS INCORPORATED+ 9,746,088
---------------
MISCELLANEOUS RETAIL - 0.77%
222,200 SPECTRUM BRANDS INCORPORATED+<< 4,826,184
---------------
OIL & GAS - 0.67%
324,220 COMPTON PETROLEUM CORPORATION+<< 4,162,985
---------------
180
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
OIL & GAS EXTRACTION - 1.86%
277,480 BRIGHAM EXPLORATION COMPANY+ $ 2,430,725
402,970 KEY ENERGY SERVICES INCORPORATED+ 6,145,292
52,610 OCEANEERING INTERNATIONAL INCORPORATED+ 3,014,553
11,590,570
---------------
PAPER & ALLIED PRODUCTS - 0.33%
218,450 XERIUM TECHNOLOGIES INCORPORATED 2,051,245
---------------
PRIMARY METAL INDUSTRIES - 1.32%
270,840 GENERAL CABLE CORPORATION+ 8,214,577
---------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 0.76%
380,230 JOURNAL COMMUNICATIONS INCORPORATED CLASS A 4,714,852
---------------
REAL ESTATE INVESTMENT TRUSTS (REITS) - 1.67%
222,350 COLUMBIA EQUITY TRUST INCORPORATED 3,908,913
148,200 PENNSYLVANIA REAL ESTATE INVESTMENT TRUST 6,520,800
10,429,713
---------------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS - 0.88%
280,550 APPLIED FILMS CORPORATION+ 5,451,086
---------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 1.04%
175,230 CABOT MICROELECTRONICS CORPORATION+<< 6,501,033
---------------
TRANSPORTATION EQUIPMENT - 5.61%
319,280 AFTERMARKET TECHNOLOGY CORPORATION+ 7,218,921
171,820 AMERICAN AXLE AND MANAUFACTURING HOLDINGS<< 2,943,277
388,390 ARVIN INDUSTRIES INCORPORATED<< 5,790,895
449,150 FLEETWOOD ENTERPRISES INCORPORATED+<< 5,017,005
380,960 ORBITAL SCIENCES CORPORATION+<< 6,026,787
368,930 TENNECO AUTOMOTIVE INCORPORATED+ 8,002,092
34,998,977
---------------
TRANSPORTATION SERVICES - 1.02%
153,970 GATX CORPORATION 6,357,422
---------------
WHOLESALE TRADE NON-DURABLE GOODS - 1.29%
258,010 PERFORMANCE FOOD GROUP COMPANY+<< 8,047,332
---------------
WHOLESALE TRADE DURABLE GOODS - 2.61%
269,030 ADESA INCORPORATED 7,193,862
228,870 INTERLINE BRANDS INCORPORATED+ 5,774,390
221,880 WEST MARINE INCORPORATED+<< 3,330,419
16,298,671
---------------
TOTAL COMMON STOCKS (COST $508,444,752) 597,837,729
---------------
181
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COLLATERAL FOR SECURITIES LENDING - 20.42%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.01%
43,973 SCUDDER DAILY ASSETS MONEY MARKET FUND $ 43,973
33,320 SHORT TERM INVESTMENT COMPANY MONEY MARKET FUND 33,320
77,293
---------------
PRINCIPAL INTEREST RATE MATURITY DATE
COLLATERAL INVESTED IN OTHER ASSETS - 20.41%
$ 460,903 AMERICAN GENERAL FINANCE CORPORATION+/- 4.78% 04/13/2007 461,092
191,889 APRECO LLC 4.62 05/15/2006 190,817
419,985 APRECO LLC 4.94 06/15/2006 415,848
256,057 ASPEN FUNDING CORPORATION 4.92 04/03/2006 256,057
2,560,573 ATLAS CAPITAL FUNDING CORPORATION SERIES MTN+/- 4.62 11/03/2006 2,560,573
288,269 ATLAS CAPITAL FUNDING LIMITED 4.80 04/17/2006 287,736
614,538 ATLAS CAPITAL FUNDING LIMITED 4.62 05/15/2006 611,102
1,280,287 ATLAS CAPITAL FUNDING LIMITED+/- 4.80 10/20/2006 1,280,287
1,280,287 ATLAS CAPITAL FUNDING LIMITED+/- 4.80 12/22/2006 1,280,287
204,846 ATOMIUM FUNDING CORPORATION 4.53 04/12/2006 204,602
177,653 BETA FINANCE INCORPORATED SERIES MTN+/- 4.88 06/02/2006 177,676
25,503,311 BNP PARIBAS REPURCHASE AGREEMENT
(MATURITY VALUE $25,513,789) 4.93 04/03/2006 25,503,311
760,183 BUCKINGHAM CDO LLC++ 4.60 04/06/2006 759,879
2,492,257 BUCKINGHAM CDO LLC 4.82 04/21/2006 2,486,326
1,280,287 BUCKINGHAM CDO LLC 4.82 04/25/2006 1,276,561
1,331,498 BUCKINGHAM II CDO LLC++ 4.83 04/25/2006 1,327,624
5,121,147 BUCKINGHAM II CDO LLC 4.83 04/26/2006 5,105,578
1,536,344 CAIRN HIGH GRADE FUNDING I 4.59 04/06/2006 1,535,729
122,908 CAIRN HIGH GRADE FUNDING I 4.71 04/26/2006 122,534
2,150,882 CAIRN HIGH GRADE FUNDING I 4.83 04/27/2006 2,144,063
1,280,287 CAIRN HIGH GRADE FUNDING I++ 4.83 05/02/2006 1,275,383
665,749 CAIRN HIGH GRADE FUNDING I 4.77 05/10/2006 662,474
2,575,169 CEDAR SPRINGS CAPITAL COMPANY LLC 4.78 04/05/2006 2,574,499
706,718 CEDAR SPRINGS CAPITAL COMPANY LLC 4.69 05/08/2006 703,425
227,737 CEDAR SPRINGS CAPITAL COMPANY LLC 4.70 05/10/2006 226,617
1,024,229 CEDAR SPRINGS CAPITAL COMPANY LLC 4.72 05/12/2006 1,018,914
512,115 CEDAR SPRINGS CAPITAL COMPANY LLC 4.90 06/07/2006 507,623
1,362,993 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.92 06/12/2006 1,350,113
2,816,631 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.72 04/12/2006 2,816,631
512,115 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.75 04/18/2007 512,115
1,802,644 CONSOLIDATED EDISON INCORPORATED 4.90 04/03/2006 1,802,644
128,029 CORPORATE ASSET SECURITIZATION AUSTRALIA LIMITED 4.81 04/13/2006 127,860
1,587,555 CREDIT SUISSE FIRST BOSTON NEW YORK SERIES YCD1+/- 4.92 05/04/2006 1,586,762
1,280,287 CULLINAN FINANCE CORPORATION+/- 4.71 11/15/2006 1,280,235
1,024,229 DEER VALLEY FUNDING LLC++ 4.51 04/10/2006 1,023,277
1,308,709 DEER VALLEY FUNDING LLC 4.81 04/17/2006 1,306,288
3,120,161 DEER VALLEY FUNDING LLC 4.83 04/19/2006 3,113,546
665,749 DEER VALLEY FUNDING LLC 4.80 05/03/2006 663,106
182
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 2,560,573 DEUTSCHE BANK REPURCHASE AGREEMENT
(MATURITY VALUE $2,561,606) 4.84% 04/03/2006 $ 2,560,573
2,452,466 EIFFEL FUNDING LLC 4.91 04/03/2006 2,452,466
153,634 EIFFEL FUNDING LLC 4.78 04/17/2006 153,350
1,844,688 EUREKA SECURITIZATION INCORPORATED 4.88 05/16/2006 1,834,137
42,198 GALLEON CAPITAL LLC 4.65 04/03/2006 42,198
76,817 GEMINI SECURITIZATION INCORPORATED 4.90 05/24/2006 76,294
1,229,075 GOLDMAN SACHS GROUP INCORPORATED+/- 4.97 06/30/2006 1,229,075
3,669,302 HARRIER FINANCE FUNDING LLC 4.62 04/03/2006 3,669,302
819,383 ING USA ANNUITY & LIFE INSURANCE+/- 5.03 06/06/2006 819,383
10,283,762 JP MORGAN CHASE SECURITIES CORPORATION REPURCHASE AGREEMENT
(MATURITY VALUE $10,287,987) 4.93 04/03/2006 10,283,762
66,575 K2 (USA) LLC 4.63 05/02/2006 66,320
236,853 K2 (USA) LLC SERIES MTN+/- 4.87 07/24/2006 236,912
768,172 KAUPTHING BANK HF SERIES MTN+/-++ 4.84 03/20/2007 768,018
102,423 KLIO II FUNDING CORPORATION 4.58 04/05/2006 102,396
123,420 KLIO III FUNDING CORPORATION 4.69 04/19/2006 123,158
51,211 LEXINGTON PARKER CAPITAL CORPORATION 4.62 05/02/2006 51,015
194,399 LEXINGTON PARKER CAPITAL CORPORATION 4.69 05/10/2006 193,442
1,280,287 LIBERTY LIGHT US CAPITAL SERIES MTN+/- 4.81 05/26/2006 1,280,364
102,423 LINKS FINANCE LLC SERIES MTN1+/- 4.68 09/12/2006 102,424
307,269 LIQUID FUNDING LIMITED+/- 4.94 04/24/2006 307,281
1,177,864 LIQUID FUNDING LIMITED+/- 4.71 08/14/2006 1,177,864
768,172 LIQUID FUNDING LIMITED+/- 4.61 12/01/2006 768,172
307,269 LIQUID FUNDING LIMITED SERIES MTN+/- 4.83 02/20/2007 307,253
512,115 MBIA GLOBAL FUNDING LLC+/- 4.78 02/20/2007 512,084
2,573,376 MERRILL LYNCH & COMPANY SERIES MTN+/- 4.80 10/27/2006 2,575,306
1,536,344 MORGAN STANLEY+/- 4.94 10/10/2006 1,536,344
236,853 MORGAN STANLEY SERIES EXL+/- 4.78 08/13/2010 236,917
881,810 MORTGAGE INTEREST NET TRUST 4.68 04/03/2006 881,810
1,157,379 MORTGAGE INTEREST NET TRUST 4.78 05/03/2006 1,152,784
51,211 NATIONWIDE BUILDING SOC+/- 4.74 07/21/2006 51,236
1,129,367 NEWPORT FUNDING CORPORATION 4.92 04/03/2006 1,129,367
1,550,632 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 4.78 04/03/2006 1,550,632
1,792,401 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.68 04/04/2006 1,792,168
228,301 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.93 06/26/2006 225,712
97,302 NORDEA NORTH AMERICA INCORPORATED 4.89 05/15/2006 96,758
2,701,405 NORTHERN ROCK PLC+/- 4.63 04/21/2006 2,701,027
202,439 NORTHERN ROCK PLC 4.69 04/24/2006 201,876
2,560,573 NORTHERN ROCK PLC+/- 4.66 02/05/2007 2,560,599
207,150 RACERS TRUST 2004-6-MM+/- 4.79 05/22/2006 207,179
51,211 SCALDIS CAPITAL LIMITED 4.93 06/15/2006 50,707
204,846 TANGO FINANCE CORPORATION 4.95 06/21/2006 202,662
592,158 TANGO FINANCE CORPORATION SERIES MTN+/- 4.87 10/25/2006 592,354
296,053 TRAVELERS INSURANCE COMPANY+/- 4.77 02/09/2007 296,048
1,280,287 UNICREDITO ITALIANO SERIES LIB+/- 4.70 03/09/2007 1,280,210
1,280,287 UNICREDITO ITALIANO SERIES YCD+/- 4.47 04/03/2006 1,280,287
183
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 1,946,036 US BANK NA SERIES BKNT 4.66% 07/28/2006 $ 1,946,094
512,115 WHISTLEJACKET CAPITAL LIMITED+/- 4.65 06/09/2006 512,115
51,211 WHITE PINE FINANCE LLC 4.64 04/18/2006 51,110
256,057 WHITE PINE FINANCE LLC 4.82 05/05/2006 254,967
209,045 WHITE PINE FINANCE LLC 4.84 05/25/2006 207,592
157,322 WHITE PINE FINANCE LLC 4.93 06/20/2006 155,665
1,351,419 WHITE PINE FINANCE LLC 4.93 06/22/2006 1,336,824
1,280,287 WHITE PINE FINANCE LLC+/- 4.70 07/17/2006 1,280,287
1,229,075 WHITE PINE FINANCE LLC SERIES MTN1+/- 4.81 06/12/2006 1,229,186
127,232,260
---------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $127,309,553) 127,309,553
---------------
SHARES
SHORT-TERM INVESTMENTS - 2.87%
17,884,513 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~&& 17,884,513
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $17,884,513) 17,884,513
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $653,638,818)* 119.18% $ 743,031,795
OTHER ASSETS AND LIABILITIES, NET (19.18) (119,554,444)
------ ---------------
TOTAL NET ASSETS 100.00% $ 623,477,351
====== ===============
+ NON-INCOME EARNING SECURITIES.
<< ALL OR A PORTION OF THIS SECURITY IS ON LOAN. (SEE NOTE 2)
+/- VARIABLE RATE INVESTMENTS.
++ SECURITIES THAT MAY BE RESOLD TO "QUALIFIED INSTITUTIONAL BUYERS" UNDER
RULE 144A OR SECURITIES OFFERED PURSUANT TO SECTION 4 (2) OF THE
SECURITIES ACT OF 1933, AS AMENDED.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
&& SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $17,884,513.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
184
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
STRATEGIC SMALL CAP VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 96.94%
ADVERTISING - 0.88%
107,600 CENVEO INCORPORATED+ $ 1,784,008
---------------
AGRICULTURAL PRODUCTION CROPS - 1.78%
119,600 DELTA & PINE LAND COMPANY 3,607,136
---------------
AMUSEMENT & RECREATION SERVICES - 3.17%
334,900 LAKES ENTERTAINMENT INCORPORATED+ 3,643,712
251,600 WESTWOOD ONE INCORPORATED 2,777,664
6,421,376
---------------
APPAREL & ACCESSORY STORES - 1.30%
50,400 CHARLOTTE RUSSE HOLDING INCORPORATED+ 1,078,560
39,600 THE CATO CORPORATION CLASS A 944,856
90,800 WET SEAL INCORPORATED CLASS A+ 603,820
2,627,236
---------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS - 1.26%
58,900 CUTTER & BUCK INCORPORATED 708,567
52,100 GYMBOREE CORPORATION+ 1,356,684
35,200 MAIDENFORM BRANDS INCORPORATED+ 387,552
1,100 RUSSELL CORPORATION 15,180
5,000 TOMMY HILFIGER CORPORATION+ 82,350
2,550,333
---------------
AUTOMOTIVE REPAIR, SERVICES & PARKING - 0.35%
19,100 MONRO MUFFLER BRAKE INCORPORATED 709,374
---------------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS - 0.56%
17,500 LEVITT CORPORATION CLASS A 385,700
24,400 PERINI CORPORATION+ 741,028
1,126,728
---------------
BUSINESS SERVICES - 10.32%
116,800 ANSWERTHINK CONSULTING GROUP INCORPORATED+ 751,024
194,200 APAC TELESERVICES INCORPORATED+ 429,182
69,000 BISYS GROUP INCORPORATED+ 930,120
143,800 BORELAND SOFTWARE CORPORATION+ 776,520
42,800 BSQUARE CORPORATION+ 125,832
351,600 CIBER INCORPORATED+ 2,243,208
21,100 ELECTRO RENT CORPORATION+ 358,700
7,600 FIRSTSERVICE CORPORATION+ 186,884
60,200 GSE SYSTEMS INCORPORATED+ 105,350
60,700 HEALTHCARE SERVICES GROUP 1,296,552
71,900 HMS HOLDINGS CORPORATION+ 629,125
39,000 HUMMINGBIRD LIMITED+ 925,860
68,100 INDUS INTERNATIONAL INCORPORATED+ 247,884
64,800 JDA SOFTWARE GROUP INCORPORATED+ 935,712
90,000 KEANE INCORPORATED+ 1,417,500
185
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
STRATEGIC SMALL CAP VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
BUSINESS SERVICES (CONTINUED)
77,600 LIONBRIDGE TECHNOLOGIES INCORPORATED+ $ 613,816
289,400 MIDWAY GAMES INCORPORATED+ 2,668,268
47,100 MRO SOFTWARE INCORPORATED+ 751,716
35,200 MSC.SOFTWARE CORPORATION 702,240
97,400 OPEN TEXT CORPORATION+ 1,600,282
50,400 PLATO LEARNING INCORPORATED+ 478,296
200 S1 CORPORATION+ 1,008
30,200 SPSS INCORPORATED+ 956,132
87,200 SUPPORTSOFT INCORPORATED+ 386,296
62,100 TAKE-TWO INTERACTIVE SOFTWARE INCORPORATED+ 1,158,786
40,400 WATCHGUARD TECHNOLOGIES INCORPORATED+ 206,040
20,882,333
---------------
CHEMICALS & ALLIED PRODUCTS - 4.72%
111,600 CAMBREX CORPORATION 2,180,664
39,600 ELIZABETH ARDEN INCORPORATED+ 923,472
78,700 IMCLONE SYSTEMS INCORPORATED+ 2,677,374
125,000 LANDEC CORPORATION+ 997,500
25,300 SERACARE LIFE SCIENCES INCORPORATED+(A) 93,610
1,170,000 XOMA LIMITED+ 2,679,300
9,551,920
---------------
COMMUNICATIONS - 5.33%
212,500 CUMULUS MEDIA INCORPORATED CLASS A+ 2,392,750
16,000 ESCHELON TELECOM INCORPORATED+ 251,680
225,200 MASTEC INCORPORATED+ 3,191,084
102,700 PREMIERE GLOBAL SERVICES INCORPORATED+ 826,735
133,200 RADIO ONE INCORPORATED CLASS D+ 993,672
69,100 REGENT COMMUNICATIONS INCORPORATED+ 318,551
507,200 SPANISH BROADCASTING SYSTEM INCORPORATED+ 2,804,816
10,779,288
---------------
CONSTRUCTION SPECIAL TRADE CONTRACTORS - 0.39%
20,800 COMFORT SYSTEMS USA INCORPORATED 280,800
19,300 INSITUFORM TECHNOLOGIES INCORPORATED CLASS A+ 513,380
794,180
---------------
DEPOSITORY INSTITUTIONS - 0.65%
14,800 FIRST FINANCIAL BANCORP 246,272
14,300 MIDWEST BANC HOLDINGS INCORPORATED 370,942
24,400 PLACER SIERRA BANCSHARES 696,620
1,313,834
---------------
EATING & DRINKING PLACES - 0.26%
68,600 BUCA INCORPORATED+ 347,802
19,400 RUBIO'S RESTAURANTS INCORPORATED+ 183,912
531,714
---------------
186
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
STRATEGIC SMALL CAP VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
EDUCATIONAL SERVICES - 1.28%
151,600 CORINTHIAN COLLEGES INCORPORATED+ $ 2,183,040
32,800 LEARNING TREE INTERNATIONAL INCORPORATED+ 397,536
2,580,576
---------------
ELECTRIC, GAS & SANITARY SERVICES - 2.28%
216,500 CASELLA WASTE SYSTEMS INCORPORATED CLASS A+ 3,076,465
32,000 CLEAN HARBORS INCORPORATED+ 949,440
500 IDACORP INCORPORATED 16,260
113,200 PLUG POWER INCORPORATED+ 566,000
4,608,165
---------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 6.18%
78,200 ADAPTEC INCORPORATED+ 432,446
483,100 C-COR INCORPORATED+ 4,222,294
31,100 DIODES INCORPORATED+ 1,290,650
26,900 ESS TECHNOLOGY INCORPORATED+ 89,308
198,000 FUELCELL ENERGY INCORPORATED+ 2,271,060
25,200 INTER-TEL INCORPORATED 540,288
105,900 MAGNETEK INCORPORATED+ 420,423
85,500 MERCURY COMPUTER SYSTEMS INCORPORATED+ 1,385,100
18,700 METHODE ELECTRONICS INCORPORATED 203,643
105,100 PEMSTAR INCORPORATED+ 217,557
32,800 UNIVERSAL ELECTRS INCORPORATED+ 580,560
51,000 WOODHEAD INDUSTRIES INCORPORATED 846,600
12,499,929
---------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES - 0.70%
151,200 DIVERSA CORPORATION+ 1,377,432
3,100 TRIMERIS INCORPORATED+ 41,881
1,419,313
---------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT - 0.49%
38,600 MATERIAL SCIENCES CORPORATION+ 466,288
2,200 VALMONT INDUSTRIES INCORPORATED 92,488
15,600 WATER PIK TECHNOLOGIES INCORPORATED+ 432,276
991,052
---------------
FOOD & KINDRED PRODUCTS - 4.80%
267,000 DEL MONTE FOODS COMPANY 3,166,620
243,600 HERCULES INCORPORATED+ 3,361,680
108,459 TOOTSIE ROLL INDUSTRIES INCORPORATED 3,174,595
9,702,895
---------------
FOOD STORES - 0.72%
21,100 INGLES MARKETS INCORPORATED CLASS A 376,002
53,300 WILD OATS MARKETS INCORPORATED+ 1,083,589
1,459,591
---------------
187
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
STRATEGIC SMALL CAP VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
FURNITURE & FIXTURES - 0.14%
19,300 KIMBALL INTERNATIONAL INCORPORATED CLASS B $ 290,272
---------------
GENERAL MERCHANDISE STORES - 0.58%
55,500 GANDER MOUNTAIN COMPANY+ 522,810
44,600 RETAIL VENTURES INCORPORATED+ 653,836
1,176,646
---------------
HEALTH SERVICES - 2.91%
24,500 AMERICA SERVICE GROUP INCORPORATED+ 319,235
62,700 CARDIAC SCIENCE CORPORATION+ 572,451
57,300 FIVE STAR QUALITY CARE INCORPORATED+ 623,997
910,300 HOOPER HOLMES INCORPORATED 2,630,767
900 MATRIA HEALTHCARE INCORPORATED+ 34,164
15,900 NAUTILUS GROUP INCORPORATED 237,705
42,000 OPTION CARE INCORPORATED 593,880
26,100 REHABCARE GROUP INCORPORATED+ 491,985
77,100 TRANSWORLD HEALTHCARE INCORPORATED+ 373,935
5,878,119
---------------
HEAVY CONSTRUCTION OTHER THAN BUILDING CONSTRUCTION CONTRACTS - 0.08%
3,500 FOSTER WHEELER LIMITED+ 165,585
---------------
HOLDING & OTHER INVESTMENT OFFICES - 4.05%
117,000 AAMES INVESTMENT CORPORATION 664,560
19,300 AGREE REALTY CORPORATION 619,530
109,000 ANTHRACITE CAPITAL INCORPORATED 1,196,820
115,000 ANWORTH MORTGAGE ASSET CORPORATION 903,900
42,500 FELDMAN MALL PROPERTIES INCORPORATED 520,625
95,000 HIGHLAND HOSPITALITY CORPORATION 1,207,450
58,100 JER INVESTORS TRUST INCORPORATED 965,622
48,000 LUMINENT MORTGAGE CAPITAL INCORPORATED 389,280
44,600 MEDICAL PROPERTIES TRUST INCORPORATED 481,680
109,800 WINSTON HOTELS INCORPORATED 1,248,426
8,197,893
---------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 0.60%
118,200 BELL MICROPRODUCTS INCORPORATED+ 728,112
146,100 THE BOMBAY COMPANY INCORPORATED+ 482,130
1,210,242
---------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 0.46%
17,200 MTR GAMING GROUP INCORPORATED+ 177,160
56,300 RED LION HOTELS CORPORATION+ 748,790
925,950
---------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 4.61%
68,900 DOT HILL SYSTEMS CORPORATION+ 489,190
14,000 FARGO ELECTRONICS+ 236,740
32,800 FLANDER CORPORATION+ 383,104
188
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
STRATEGIC SMALL CAP VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (CONTINUED)
346,600 INFOCUS CORPORATION+ $ 1,646,350
28,600 KADANT INCORPORATED+ 649,220
83,200 NN INCORPORATED 1,074,112
200 PLANAR SYSTEMS INCORPORATED+ 3,384
79,000 QUALSTAR CORPORATION+ 319,950
9,100 ROBBINS & MYERS INCORPORATED 196,560
308,300 SILICON GRAPHICS INCORPORATED+ 134,727
200 TENNANT COMPANY 10,464
171,000 ULTRATECH INCORPORATED+ 4,186,080
9,329,881
---------------
INSURANCE AGENTS, BROKERS & SERVICE - 0.35%
122,200 CRAWFORD & COMPANY CLASS A (NON-VOTING) 709,982
---------------
INSURANCE CARRIERS - 7.76%
36,000 AFFIRMATIVE INSURANCE HOLDINGS INCORPORATED 475,560
60,100 AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY 861,834
43,200 AMERISAFE INCOPORATED+ 518,400
42,800 CRM HOLDINGS LIMITED+ 490,060
6,000 DELPHI FINANCIAL GROUP INCORPORATED CLASS A 309,780
137,100 DERES GROUP INCORPORATED 756,792
51,000 DONEGAL GROUP INCORPORATED CLASS A 1,330,590
21,100 EMC INSURANCE GROUP INCORPORATED 588,057
127,000 FREMONT GENERAL CORPORATION 2,738,120
60,000 KMG AMERICA CORPORATION+ 513,600
80,700 MEADOWBROOK INSURANCE GROUP INCORPORATED+ 564,900
13,000 OHIO CASUALTY CORPORATION 412,100
53,800 PMA CAPITAL CORPORATION CLASS A+ 547,684
73,200 PROCENTURY CORPORATION 998,448
46,200 QUANTA CAPITAL HOLDINGS LIMITED+ 138,600
144,400 SCOTTISH RE GROUP LIMITED 3,582,564
30,800 SEABRIGHT INSURANCE HOLDINGS INCORPORATED+ 536,536
50,400 SPECIALTY UNDERWRITERS' ALLIANCE INCORPORATED+ 342,720
15,706,345
---------------
LEATHER & LEATHER PRODUCTS - 0.89%
25,600 SHOE CARNIVAL INCORPORATED+ 639,488
32,700 STEVEN MADDEN LIMITED+ 1,160,850
1,800,338
---------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 4.56%
3,300 CNS INCORPORATED 71,082
1,500 CONMED CORPORATION+ 28,725
78,200 DEL GLOBAL TECHNOLOGIES CORPORATION+ 309,672
74,000 HEALTHTRONICS INCORPORATED+ 611,980
37,900 HERLEY INDUSTRIES INCORPORATED+ 791,352
102,700 INPUT OUTPUT INCORPORATED+ 997,217
36,900 LUMENIS LIMITED+ 70,110
189
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
STRATEGIC SMALL CAP VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS (CONTINUED)
77,400 NORTH AMERICAN SCIENTIFIC INCORPORATED+ $ 181,890
171,000 ORTHOLOGIC CORPORATION+ 376,200
58,500 VITAL SIGNS INCORPORATED 3,213,405
351,100 VIVUS INCORPORATED+ 1,169,163
53,300 ZOLL MEDICAL CORPORATION+ 1,403,922
9,224,718
---------------
MEMBERSHIP ORGANIZATIONS - 0.88%
44,000 AMCOMP INCORPORATED+ 421,960
34,500 EDAP TMS SA ADR+ 614,790
19,200 LSI INDUSTRIES, INC. 327,168
18,100 RIMAGE CORP+ 408,698
1,772,616
---------------
METAL MINING - 0.01%
200 GLAMIS GOLD LIMITED 6,536
200 GOLD FIELDS LIMITED ADR 4,396
200 GOLDCORP INCORPORATED 5,850
16,782
---------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 0.31%
21,200 LYDALL INCORPORATED+ 204,580
27,400 RUSS BERRIE & COMPANY INCORPORATED 416,480
621,060
---------------
MISCELLANEOUS RETAIL - 1.75%
49,200 AC MOORE ARTS & CRAFTS INCORPORATED+ 905,280
58,100 FINLAY ENTERPRISES INCORPORATED+ 596,106
44,200 J JILL GROUP INCORPORATED+ 1,056,822
64,700 PC MALL INCORPORATED+ 412,786
44,600 SHARPER IMAGE CORPORATION+ 571,326
3,542,320
---------------
MOTION PICTURES - 0.78%
73,500 NEW FRONTIER MEDIA INCORPORATED+ 557,865
137,400 WPT ENTERPRISES INCORPORATED+ 1,011,264
1,569,129
---------------
NON-DEPOSITORY CREDIT INSTITUTIONS - 0.81%
14,300 ASTA FUNDING INCORPORATED 475,618
83,200 MCG CAPITAL CORPORATION 1,173,952
1,649,570
---------------
OIL & GAS EXTRACTION - 3.05%
5,500 ATWOOD OCEANICS INCORPORATED+ 555,555
47,600 BRIGHAM EXPLORATION COMPANY+ 416,976
23,100 CARRIZO OIL AND GAS INCORPORATED+ 600,369
24,400 COMSTOCK RESOURCES INCORPORATED+ 724,436
190
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
STRATEGIC SMALL CAP VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
OIL & GAS EXTRACTION (CONTINUED)
142,100 HANOVER COMPRESSOR COMPANY+ $ 2,645,902
62,200 NEWPARK RESOURCES INCORPORATED+ 510,040
26,100 WARREN RESOURCES INCORPORATED+ 388,890
16,300 WILLBROS GROUP INCORPORATED+ 331,542
6,173,710
---------------
PAPER & ALLIED PRODUCTS - 0.97%
157,200 BUCKEYE TECHNOLOGIES INCORPORATED+ 1,422,660
38,500 CHESAPEAKE CORPORATION 534,380
1,957,040
---------------
PETROLEUM REFINING & RELATED INDUSTRIES - 0.35%
22,700 WD-40 COMPANY 700,295
---------------
PRIMARY METAL INDUSTRIES - 1.99%
52,100 BRUSH ENGINEERED MATERIALS INCORPORATED+ 1,028,975
38,000 NORTHWEST PIPE COMPANY+ 1,153,300
10,100 NOVAMERICAN STEEL INCORPORATED+ 464,095
21,100 NS GROUP INCORPORATED+ 971,233
25,300 TREDEGAR CORPORATION 402,523
4,020,126
---------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 1.70%
36,400 ENNIS INCORPORATED 709,800
200 PLAYBOY ENTERPRISES INCORPORATED CLASS B (NON-VOTING)+ 2,840
184,500 READER'S DIGEST ASSOCIATION INCORPORATED 2,721,375
3,434,015
---------------
REAL ESTATE - 0.27%
40,100 THOMAS PROPERTIES GROUP INCORPORATED 545,761
---------------
REAL ESTATE INVESTMENT TRUST (REIT) - 0.31%
29,800 LEXINGTON CORPORATE PROPERTIES TRUST 621,330
---------------
RETAIL, TRADE & SERVICES - 0.39%
55,100 STRIDE RITE CORPORATION 797,848
---------------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS - 0.23%
23,500 APPLIED FILMS CORPORATION+ 456,605
---------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 1.55%
84,300 CABOT MICROELECTRONICS CORPORATION+ 3,127,530
---------------
TEXTILE MILL PRODUCTS - 0.05%
71,400 QUAKER FABRIC CORPORATION 96,390
---------------
TRANSPORTATION EQUIPMENT - 2.58%
28,600 AFTERMARKET TECHNOLOGY CORPORATION+ 646,646
23,000 ARCTIC CAT INCORPORATED 553,380
110,800 EXIDE TECHNOLOGIES+ 316,888
162,100 LEAR CORPORATION 2,874,033
191
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
STRATEGIC SMALL CAP VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
TRANSPORTATION EQUIPMENT (CONTINUED)
19,300 MONACO COACH CORPORATION $ 258,620
28,700 WABASH NATIONAL CORPORATION 566,825
5,216,392
---------------
WHOLESALE TRADE NON-DURABLE GOODS - 1.14%
68,100 BIOSCRIP INCORPORATED+ 491,001
22,200 SCHOOL SPECIALTY INCORPORATED+ 765,900
92,500 SOURCE INTERLINK COMPANIES INCORPORATED+ 1,054,500
2,311,401
---------------
WHOLESALE TRADE DURABLE GOODS - 3.41%
42,800 INTERLINE BRANDS INCORPORATED+ 1,079,844
44,600 KAMAN CORPORATION CLASS A 1,122,136
47,100 KEYSTONE AUTOMOTIVE INDUSTRIES INCORPORATED+ 1,988,091
47,900 LENOX GROUP INCORPORATED+ 627,490
54,200 LKQ CORPORATION+ 1,127,902
82,400 MICROTECK MEDICAL HOLDING INCORPORATED+ 290,048
56,200 NAVARRE CORPORATION+ 241,098
51,400 POMEROY IT SOLUTIONS INCORPORATED+ 429,704
6,906,313
---------------
TOTAL COMMON STOCKS (COST $187,895,448) 196,093,185
---------------
PRINCIPAL INTEREST RATE MATURITY DATE
CORPORATE BONDS & NOTES - 0.06%
ELECTRONICS & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 0.06%
$ 140,000 SILICON GRAPHICS 6.50% 06/01/2009 110,950
---------------
TOTAL CORPORATE BONDS & NOTES (COST $103,817) 110,950
---------------
SHARES
SHORT-TERM INVESTMENTS - 3.27%
6,620,137 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~++ 6,620,137
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $6,620,137) 6,620,137
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $194,619,402)* 100.27% $ 202,824,272
OTHER ASSETS AND LIABILITIES, NET (0.27) (547,199)
------ ---------------
TOTAL NET ASSETS 100.00% $ 202,277,073
====== ===============
+ NON-INCOME EARNING SECURITIES.
(A) SECURITY FAIR VALUED IN ACCORDANCE WITH THE PROCEDURES APPROVED BY THE
BOARD OF TRUSTEES.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
++ SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $6,620,137.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
192
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
STATEMENT OF ASSETS AND LIABILITIES -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
C&B LARGE DISCIPLINED EQUITY
CAP VALUE GROWTH INCOME
PORTFOLIO PORTFOLIO PORTFOLIO
- ------------------------------------------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE .............................. $ 770,404,417 $ 185,864,957 $1,056,842,643
COLLATERAL FOR SECURITIES LOANED (NOTE 2) ................... 90,792,757 18,238,227 99,934,006
INVESTMENTS IN AFFILIATES ................................... 39,523,765 10,630,161 7,179,031
-------------- -------------- --------------
TOTAL INVESTMENTS AT MARKET VALUE (SEE COST BELOW) ............ 900,720,939 214,733,345 1,163,955,680
-------------- -------------- --------------
FOREIGN CURRENCY, AT VALUE .................................. 0 0 0
VARIATION MARGIN RECEIVABLE ON FUTURES CONTRACTS ............ 0 0 0
RECEIVABLE FOR INVESTMENTS SOLD ............................. 0 0 0
RECEIVABLES FOR DIVIDENDS AND INTEREST ...................... 1,475,505 65,661 1,415,335
UNREALIZED APPRECIATION ON FORWARD FOREIGN CURRENCY CONTRACTS 0 0 0
-------------- -------------- --------------
TOTAL ASSETS .................................................. 902,196,444 214,799,006 1,165,371,015
-------------- -------------- --------------
LIABILITIES
PAYABLE FOR DAILY VARIATION MARGIN ON FUTURES CONTRACTS ..... 0 0 0
FOREIGN TAXES PAYABLE ....................................... 390 0 41,173
PAYABLE FOR INVESTMENTS PURCHASED ........................... 0 7,692,668 0
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) ....... 460,019 121,851 665,188
PAYABLE TO THE TRUSTEES AND SHAREHOLDER SERVICING AGENT ..... 3,846 3,482 3,385
UNREALIZED DEPRECIATION ON FORWARD FOREIGN CURRENCY CONTRACTS 0 0 0
PAYABLE FOR SECURITIES LOANED (NOTE 2) ...................... 90,792,757 18,238,227 99,934,006
ACCRUED EXPENSES AND OTHER LIABILITIES ...................... 50,367 30,633 84,219
-------------- -------------- --------------
TOTAL LIABILITIES ............................................. 91,307,379 26,086,861 100,727,971
-------------- -------------- --------------
TOTAL NET ASSETS .............................................. $ 810,889,065 $ 188,712,145 $1,064,643,044
============== ============== ==============
INVESTMENTS AT COST ........................................... $ 865,186,392 $ 179,270,825 $ 928,734,288
============== ============== ==============
FOREIGN CURRENCIES AT COST .................................... $ 0 $ 0 $ 0
============== ============== ==============
SECURITIES ON LOAN, AT MARKET VALUE ........................... $ 87,215,665 $ 17,458,150 $ 96,135,999
============== ============== ==============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
194
STATEMENT OF ASSETS AND LIABILITIES -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
EQUITY INTERNATIONAL INTERNATIONAL
VALUE INDEX CORE GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- -----------------------------------------------------------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE .............................. $ 456,861,732 $2,306,760,452 $ 159,971,872 $ 273,761,816
COLLATERAL FOR SECURITIES LOANED (NOTE 2) ................... 75,391,631 248,678,665 3,191,264 6,879,725
INVESTMENTS IN AFFILIATES ................................... 7,042,763 42,052,726 4,179,151 6,315,090
-------------- -------------- -------------- --------------
TOTAL INVESTMENTS AT MARKET VALUE (SEE COST BELOW) ............ 539,296,126 2,597,491,843 167,342,287 286,956,631
-------------- -------------- -------------- --------------
FOREIGN CURRENCY, AT VALUE .................................. 0 0 0 0
VARIATION MARGIN RECEIVABLE ON FUTURES CONTRACTS ............ 0 0 0 0
RECEIVABLE FOR INVESTMENTS SOLD ............................. 9,583,466 0 2,870,847 3,386,808
RECEIVABLES FOR DIVIDENDS AND INTEREST ...................... 458,588 2,760,141 1,116,635 424,478
UNREALIZED APPRECIATION ON FORWARD FOREIGN CURRENCY CONTRACTS 0 0 0 2,624
-------------- -------------- -------------- --------------
TOTAL ASSETS .................................................. 549,338,180 2,600,251,984 171,329,769 290,770,541
-------------- -------------- -------------- --------------
LIABILITIES
PAYABLE FOR DAILY VARIATION MARGIN ON FUTURES CONTRACTS ..... 0 35,700 0 0
FOREIGN TAXES PAYABLE ....................................... 0 0 11,974 0
PAYABLE FOR INVESTMENTS PURCHASED ........................... 8,278,898 19,934,622 910,439 3,961,694
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) ....... 316,376 219,528 129,699 230,071
PAYABLE TO THE TRUSTEES AND SHAREHOLDER SERVICING AGENT ..... 3,355 3,386 5,725 3,338
UNREALIZED DEPRECIATION ON FORWARD FOREIGN CURRENCY CONTRACTS 0 0 18,258 2,955
PAYABLE FOR SECURITIES LOANED (NOTE 2) ...................... 75,391,631 248,678,665 3,191,264 6,879,725
ACCRUED EXPENSES AND OTHER LIABILITIES ...................... 33,852 114,080 22,233 27,579
-------------- -------------- -------------- --------------
TOTAL LIABILITIES ............................................. 84,024,112 268,985,981 4,289,592 11,105,362
-------------- -------------- -------------- --------------
TOTAL NET ASSETS .............................................. $ 465,314,068 $2,331,266,003 $ 167,040,177 $ 279,665,179
============== ============== ============== ==============
INVESTMENTS AT COST ........................................... $ 493,521,615 $2,103,754,774 $ 135,990,778 $ 232,398,708
============== ============== ============== ==============
FOREIGN CURRENCIES AT COST .................................... $ 0 $ 0 $ 0 $ 0
============== ============== ============== ==============
SECURITIES ON LOAN, AT MARKET VALUE ........................... $ 72,823,440 $ 237,866,126 $ 3,048,985 $ 6,553,513
============== ============== ============== ==============
INTERNATIONAL INTERNATIONAL LARGE CAP LARGE COMPANY
INDEX VALUE APPRECIATION GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- -----------------------------------------------------------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE .............................. $ 163,041,122 $ 164,100,986 $ 140,092,348 $3,376,669,186
COLLATERAL FOR SECURITIES LOANED (NOTE 2) ................... 9,478,754 16,780,647 12,841,289 280,351,573
INVESTMENTS IN AFFILIATES ................................... 2,985,692 4,429,719 5,474,393 45,157,545
-------------- -------------- -------------- --------------
TOTAL INVESTMENTS AT MARKET VALUE (SEE COST BELOW) ............ 175,505,568 185,311,352 158,408,030 3,702,178,304
-------------- -------------- -------------- --------------
FOREIGN CURRENCY, AT VALUE .................................. 477,153 89,469 0 0
VARIATION MARGIN RECEIVABLE ON FUTURES CONTRACTS ............ 414,386 0 0 0
RECEIVABLE FOR INVESTMENTS SOLD ............................. 46,831 0 782,869 0
RECEIVABLES FOR DIVIDENDS AND INTEREST ...................... 837,799 1,057,956 119,887 3,555,898
UNREALIZED APPRECIATION ON FORWARD FOREIGN CURRENCY CONTRACTS 3,946 451 0 0
-------------- -------------- -------------- --------------
TOTAL ASSETS .................................................. 177,285,683 186,459,228 159,310,786 3,705,734,202
-------------- -------------- -------------- --------------
LIABILITIES
PAYABLE FOR DAILY VARIATION MARGIN ON FUTURES CONTRACTS ..... 0 0 0 0
FOREIGN TAXES PAYABLE ....................................... 0 0 423 382,239
PAYABLE FOR INVESTMENTS PURCHASED ........................... 88,095 0 4,464,724 0
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) ....... 32,693 142,400 53,422 1,844,467
PAYABLE TO THE TRUSTEES AND SHAREHOLDER SERVICING AGENT ..... 3,338 3,416 3,697 3,668
UNREALIZED DEPRECIATION ON FORWARD FOREIGN CURRENCY CONTRACTS 14,112 444 0 0
PAYABLE FOR SECURITIES LOANED (NOTE 2) ...................... 9,478,754 16,780,647 12,841,289 280,351,573
ACCRUED EXPENSES AND OTHER LIABILITIES ...................... 28,771 45,157 68,391 198,002
-------------- -------------- -------------- --------------
TOTAL LIABILITIES ............................................. 9,645,763 16,972,064 17,431,946 282,779,949
-------------- -------------- -------------- --------------
TOTAL NET ASSETS .............................................. $ 167,639,920 $ 169,487,164 $ 141,878,840 $3,422,954,253
============== ============== ============== ==============
INVESTMENTS AT COST ........................................... $ 134,887,133 $ 137,363,668 $ 138,577,679 $2,957,047,986
============== ============== ============== ==============
FOREIGN CURRENCIES AT COST .................................... $ 479,514 $ 88,427 $ 0 $ 0
============== ============== ============== ==============
SECURITIES ON LOAN, AT MARKET VALUE ........................... $ 8,942,697 $ 15,884,787 $ 12,379,929 $ 268,475,079
============== ============== ============== ==============
195
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
STATEMENT OF ASSETS AND LIABILITIES -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP SMALL COMPANY SMALL COMPANY STRATEGIC
INDEX GROWTH VALUE SMALL CAP
PORTFOLIO PORTFOLIO PORTFOLIO VALUE PORTFOLIO
- -----------------------------------------------------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE ........................ $ 394,616,155 $1,003,303,868 $ 597,837,729 $ 196,204,135
COLLATERAL FOR SECURITIES LOANED (NOTE 2) ............. 80,045,141 103,113,468 127,309,553 0
INVESTMENTS IN AFFILIATES ............................. 5,844,883 38,116,747 17,884,513 6,620,137
-------------- -------------- -------------- --------------
TOTAL INVESTMENTS AT MARKET VALUE (SEE COST BELOW) ...... 480,506,179 1,144,534,083 743,031,795 202,824,272
-------------- -------------- -------------- --------------
VARIATION MARGIN RECEIVABLE ON FUTURES CONTRACTS ...... 25,200 0 0 0
RECEIVABLE FOR INVESTMENTS SOLD ....................... 5,398,280 5,348,304 7,516,339 156,429
RECEIVABLES FOR DIVIDENDS AND INTEREST ................ 357,698 286,309 750,973 222,873
-------------- -------------- -------------- --------------
TOTAL ASSETS ............................................ 486,287,357 1,150,168,696 751,299,107 203,203,574
-------------- -------------- -------------- --------------
LIABILITIES
FOREIGN TAXES PAYABLE ................................. 0 1,843 0 0
PAYABLE FOR INVESTMENTS PURCHASED ..................... 3,408,891 18,659,561 34,977 792,160
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) . 73,363 809,896 432,865 127,361
PAYABLE TO THE TRUSTEES AND SHAREHOLDER SERVICING AGENT 3,303 3,386 3,385 623
PAYABLE FOR SECURITIES LOANED (NOTE 2) ................ 80,045,141 103,113,468 127,309,553 0
ACCRUED EXPENSES AND OTHER LIABILITIES ................ 31,307 52,916 40,976 6,357
-------------- -------------- -------------- --------------
TOTAL LIABILITIES ....................................... 83,562,005 122,641,070 127,821,756 926,501
-------------- -------------- -------------- --------------
TOTAL NET ASSETS ........................................ $ 402,725,352 $1,027,527,626 $ 623,477,351 $ 202,277,073
============== ============== ============== ==============
INVESTMENTS AT COST ..................................... $ 353,661,972 $ 961,511,654 $ 653,638,818 $ 194,619,402
============== ============== ============== ==============
SECURITIES ON LOAN, AT MARKET VALUE ..................... $ 77,520,062 $ 99,824,629 $ 122,821,350 $ 0
============== ============== ============== ==============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
196
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
STATEMENT OF OPERATIONS --
FOR THE SIX MONTHS ENDED MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
C&B LARGE DISCIPLINED EQUITY
CAP VALUE GROWTH INCOME
PORTFOLIO PORTFOLIO PORTFOLIO
- -----------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS(1) ...................................................... $ 7,625,755 $ 656,097 $ 14,574,326
INTEREST .......................................................... 0 0 3,545
INCOME FROM AFFILIATED SECURITIES ................................. 724,628 98,223 130,820
SECURITIES LENDING INCOME, NET .................................... 1,175 3,327 29,340
------------- ------------- -------------
TOTAL INVESTMENT INCOME ............................................. 8,351,558 757,647 14,738,031
------------- ------------- -------------
EXPENSES
ADVISORY FEES ..................................................... 2,905,024 697,170 4,083,315
CUSTODY FEES ...................................................... 79,439 18,591 114,134
ACCOUNTING FEES ................................................... 0 0 0
PROFESSIONAL FEES ................................................. 23,538 13,141 33,883
REGISTRATION FEES ................................................. 139 52 364
SHAREHOLDER REPORTS ............................................... 22,665 1,494 34,296
TRUSTEES' FEES .................................................... 3,807 3,782 3,776
OTHER FEES AND EXPENSES ........................................... 15,113 2,647 9,241
------------- ------------- -------------
TOTAL EXPENSES ...................................................... 3,049,725 736,877 4,279,009
------------- ------------- -------------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) ...................... (431,811) (14,582) (292,501)
NET EXPENSES ...................................................... 2,617,914 722,295 3,986,508
------------- ------------- -------------
NET INVESTMENT INCOME (LOSS) ........................................ 5,733,644 35,352 10,751,523
------------- ------------- -------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- -----------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
- ------------------------------------------------------------------------------------------------------------------------
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ... 16,464,707 3,926,709 86,513,450
FORWARD FOREIGN CURRENCY CONTRACTS ................................ 0 0 0
FUTURES TRANSACTIONS .............................................. 0 0 0
------------- ------------- -------------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ........................... 16,464,707 3,926,709 86,513,450
------------- ------------- -------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
- -----------------------------------------------------------------------------------------------------------------------
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ... 35,590,789 5,485,162 (56,115,058)
FORWARD FOREIGN CURRENCY CONTRACTS ................................ 0 0 0
FUTURES TRANSACTIONS .............................................. 0 0 0
------------- ------------- -------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS . 35,590,789 5,485,162 (56,115,058)
============= ============= =============
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS .............. 52,055,496 9,411,871 30,398,392
------------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ..... $ 57,789,140 $ 9,447,223 $ 41,149,915
------------- ------------- -------------
(1) NET OF FOREIGN WITHHOLDING TAXES OF ........................... $ 41,057 $ 0 $ 56,462
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
198
STATEMENT OF OPERATIONS --
FOR THE SIX MONTHS ENDED MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
EQUITY INTERNATIONAL
VALUE INDEX CORE
PORTFOLIO PORTFOLIO PORTFOLIO
- -----------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS(1) ...................................................... $ 4,159,592 $ 21,327,761 $ 1,488,931
INTEREST .......................................................... 28,293 25,722 0
INCOME FROM AFFILIATED SECURITIES ................................. 167,416 472,072 52,611
SECURITIES LENDING INCOME, NET .................................... 11,470 129,583 14,953
------------- ------------- -------------
TOTAL INVESTMENT INCOME ............................................. 4,366,771 21,955,138 1,556,495
------------- ------------- -------------
EXPENSES
ADVISORY FEES ..................................................... 1,669,416 953,525 762,888
CUSTODY FEES ...................................................... 44,518 221,031 80,304
ACCOUNTING FEES ................................................... 0 0 10,776
PROFESSIONAL FEES ................................................. 17,359 50,274 28,188
REGISTRATION FEES ................................................. 116 720 45
SHAREHOLDER REPORTS ............................................... 9,793 54,442 3,838
TRUSTEES' FEES .................................................... 3,775 3,777 3,687
OTHER FEES AND EXPENSES ........................................... 6,279 22,057 2,459
------------- ------------- -------------
TOTAL EXPENSES ...................................................... 1,751,256 1,305,826 892,185
------------- ------------- -------------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) ...................... (28,203) (52,180) (64,727)
NET EXPENSES ...................................................... 1,723,053 1,253,646 827,458
------------- ------------- -------------
NET INVESTMENT INCOME (LOSS) ........................................ 2,643,718 20,701,492 729,037
------------- ------------- -------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- -----------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
- -----------------------------------------------------------------------------------------------------------------------
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ... 15,339,886 23,204,909 6,478,277
FORWARD FOREIGN CURRENCY CONTRACTS ................................ 0 0 0
FUTURES TRANSACTIONS .............................................. 0 333,516 0
------------- ------------- -------------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ........................... 15,339,886 23,538,425 6,478,277
------------- ------------- -------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
- -----------------------------------------------------------------------------------------------------------------------
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ... 10,096,858 91,158,379 9,651,689
FORWARD FOREIGN CURRENCY CONTRACTS ................................ 0 0 (17,886)
FUTURES TRANSACTIONS .............................................. 0 (29,150) 0
------------- ------------- -------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS . 10,096,858 91,129,229 9,633,803
============= ============= =============
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS .............. 25,436,744 114,667,654 16,112,080
------------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ..... $ 28,080,462 $ 135,369,146 $ 16,841,117
------------- ------------- -------------
(1) NET OF FOREIGN WITHHOLDING TAXES OF ........................... $ 13,290 $ 0 $ 100,874
INTERNATIONAL INTERNATIONAL INTERNATIONAL
GROWTH INDEX VALUE
PORTFOLIO PORTFOLIO PORTFOLIO
- -----------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS(1) ...................................................... $ 1,040,084 $ 1,616,750 $ 1,844,414
INTEREST .......................................................... 4,328 3,130 11,231
INCOME FROM AFFILIATED SECURITIES ................................. 94,581 44,519 84,227
SECURITIES LENDING INCOME, NET .................................... 17,406 17,389 20,892
------------- ------------- -------------
TOTAL INVESTMENT INCOME ............................................. 1,156,399 1,681,788 1,960,764
------------- ------------- -------------
EXPENSES
ADVISORY FEES ..................................................... 1,221,579 282,255 771,047
CUSTODY FEES ...................................................... 128,587 80,644 81,163
ACCOUNTING FEES ................................................... 7,541 20,125 13,712
PROFESSIONAL FEES ................................................. 15,659 15,876 30,823
REGISTRATION FEES ................................................. 51 46 44
SHAREHOLDER REPORTS ............................................... 5,816 5,295 5,506
TRUSTEES' FEES .................................................... 3,774 3,774 3,779
OTHER FEES AND EXPENSES ........................................... 2,709 2,704 6,059
------------- ------------- -------------
TOTAL EXPENSES ...................................................... 1,385,716 410,719 912,133
------------- ------------- -------------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) ...................... (120,496) (106,689) (16,852)
NET EXPENSES ...................................................... 1,265,220 304,030 895,281
------------- ------------- -------------
NET INVESTMENT INCOME (LOSS) ........................................ (108,821) 1,377,758 1,065,483
------------- ------------- -------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- -----------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
- -----------------------------------------------------------------------------------------------------------------------
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ... 12,697,943 3,655,606 9,567,899
FORWARD FOREIGN CURRENCY CONTRACTS ................................ 0 9,192 0
FUTURES TRANSACTIONS .............................................. 0 539,263 0
------------- ------------- -------------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ........................... 12,697,943 4,204,061 9,567,899
------------- ------------- -------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
- -----------------------------------------------------------------------------------------------------------------------
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ... 28,420,225 16,142,665 10,051,044
FORWARD FOREIGN CURRENCY CONTRACTS ................................ 642 27,219 (102)
FUTURES TRANSACTIONS .............................................. 0 145,333 0
------------- ------------- -------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS . 28,420,867 16,315,217 10,050,942
============= ============= =============
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS .............. 41,118,810 20,519,278 19,618,841
------------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ..... $ 41,009,989 $ 21,897,036 $ 20,684,324
------------- ------------- -------------
(1) NET OF FOREIGN WITHHOLDING TAXES OF ........................... $ 109,979 $ 84,487 $ 86,562
LARGE CAP LARGE COMPANY
APPRECIATION GROWTH
PORTFOLIO PORTFOLIO
- ------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS(1) ...................................................... $ 799,698 $ 12,726,273
INTEREST .......................................................... 0 0
INCOME FROM AFFILIATED SECURITIES ................................. 76,868 696,748
SECURITIES LENDING INCOME, NET .................................... 1,570 132,659
------------- -------------
TOTAL INVESTMENT INCOME ............................................. 878,136 13,555,680
------------- -------------
EXPENSES
ADVISORY FEES ..................................................... 474,115 11,725,293
CUSTODY FEES ...................................................... 13,546 351,275
ACCOUNTING FEES ................................................... 0 0
PROFESSIONAL FEES ................................................. 11,827 68,007
REGISTRATION FEES ................................................. 0 1,264
SHAREHOLDER REPORTS ............................................... 13,528 97,134
TRUSTEES' FEES .................................................... 3,796 3,793
OTHER FEES AND EXPENSES ........................................... 1,927 37,641
------------- -------------
TOTAL EXPENSES ...................................................... 518,739 12,284,407
------------- -------------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) ...................... (39,958) (1,533,631)
NET EXPENSES ...................................................... 478,781 10,750,776
------------- -------------
NET INVESTMENT INCOME (LOSS) ........................................ 399,355 2,804,904
------------- -------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- ------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
- ------------------------------------------------------------------------------------------------------
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ... 11,632,863 64,646,295
FORWARD FOREIGN CURRENCY CONTRACTS ................................ 0 0
FUTURES TRANSACTIONS .............................................. 0 0
------------- -------------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ........................... 11,632,863 64,646,295
------------- -------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
- ------------------------------------------------------------------------------------------------------
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ... (1,036,045) 144,312,725
FORWARD FOREIGN CURRENCY CONTRACTS ................................ 0 0
FUTURES TRANSACTIONS .............................................. 0 0
------------- -------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS . (1,036,045) 144,312,725
============= =============
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS .............. 10,596,818 208,959,020
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ..... $ 10,996,173 $ 211,763,924
------------- -------------
(1) NET OF FOREIGN WITHHOLDING TAXES OF ........................... $ 0 $ 382,239
199
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
STATEMENT OF OPERATIONS --
FOR THE SIX MONTHS ENDED MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP SMALL COMPANY
INDEX GROWTH
PORTFOLIO PORTFOLIO
- ------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS(1) ...................................................... $ 2,035,745 $ 2,469,667
INTEREST .......................................................... 5,910 82
INCOME FROM AFFILIATED SECURITIES ................................. 154,079 491,686
SECURITIES LENDING INCOME, NET .................................... 88,142 229,897
------------- -------------
TOTAL INVESTMENT INCOME ............................................. 2,283,876 3,191,332
------------- -------------
EXPENSES
ADVISORY FEES ..................................................... 372,416 4,078,723
CUSTODY FEES ...................................................... 37,242 93,044
PROFESSIONAL FEES ................................................. 18,968 23,898
REGISTRATION FEES ................................................. 4,994 298
SHAREHOLDER REPORTS ............................................... 9,735 22,485
TRUSTEES' FEES .................................................... 3,772 3,776
OTHER FEES AND EXPENSES ........................................... 3,479 5,765
------------- -------------
TOTAL EXPENSES ...................................................... 450,606 4,227,989
------------- -------------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) ...................... (25,029) (19,444)
NET EXPENSES ...................................................... 425,577 4,208,545
------------- -------------
NET INVESTMENT INCOME (LOSS) ........................................ 1,858,299 (1,017,213)
------------- -------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- ------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
- ------------------------------------------------------------------------------------------------------
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ... 17,339,115 77,318,419
FUTURES TRANSACTIONS .............................................. 1,024,718 0
------------- -------------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ........................... 18,363,833 77,318,419
------------- -------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
- ------------------------------------------------------------------------------------------------------
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ... 28,026,652 87,513,659
FUTURES TRANSACTIONS .............................................. 217,000 0
------------- -------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS . 28,243,652 87,513,659
============= =============
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS .............. 46,607,485 164,832,078
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ..... 48,465,784 163,814,865
============= =============
(1) NET OF FOREIGN WITHHOLDING TAXES OF ........................... $ 725 $ 6,256
(2) THIS PORTFOLIO COMMENCED OPERATIONS ON JANUARY 31, 2006.
SMALL COMPANY STRATEGIC SMALL
VALUE CAP VALUE
PORTFOLIO PORTFOLIO(2)
- -------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS(1) ...................................................... $ 3,977,565 $ 294,106
INTEREST .......................................................... 61,142 100,773
INCOME FROM AFFILIATED SECURITIES ................................. 449,899 73,574
SECURITIES LENDING INCOME, NET .................................... 135,565 0
------------- -------------
TOTAL INVESTMENT INCOME ............................................. 4,624,171 468,453
------------- -------------
EXPENSES
ADVISORY FEES ..................................................... 2,905,315 257,788
CUSTODY FEES ...................................................... 65,427 5,729
PROFESSIONAL FEES ................................................. 20,277 4,568
REGISTRATION FEES ................................................. 168 42
SHAREHOLDER REPORTS ............................................... 15,194 510
TRUSTEES' FEES .................................................... 3,776 1,252
OTHER FEES AND EXPENSES ........................................... 7,628 1,530
------------- -------------
TOTAL EXPENSES ...................................................... 3,017,785 271,419
------------- -------------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) ...................... (573,138) (56,595)
NET EXPENSES ...................................................... 2,444,647 214,824
------------- -------------
NET INVESTMENT INCOME (LOSS) ........................................ 2,179,524 253,629
------------- -------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- -------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
- -------------------------------------------------------------------------------------------------------
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ... 60,222,758 644,786
FUTURES TRANSACTIONS .............................................. 0 0
------------- -------------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ........................... 60,222,758 644,786
------------- -------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
- -------------------------------------------------------------------------------------------------------
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ... 15,224,032 8,204,870
FUTURES TRANSACTIONS .............................................. 0 0
------------- -------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS . 15,224,032 8,204,870
============= =============
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS .............. 75,446,790 8,849,656
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ..... 77,626,314 9,103,285
============= =============
(1) NET OF FOREIGN WITHHOLDING TAXES OF ........................... $ 0 $ 0
(2) THIS PORTFOLIO COMMENCED OPERATIONS ON JANUARY 31, 2006.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
200
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
C&B LARGE CAP VALUE PORTFOLIO(1) DISCIPLINED GROWTH PORTFOLIO
----------------------------------- ----------------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS ENDED PERIOD ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2006 SEPTEMBER 30, MARCH 31, 2006 SEPTEMBER 30,
(UNAUDITED) 2005 (UNAUDITED) 2005
- ----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ............................... $ 774,696,069 $ 0 $ 184,902,166 $ 178,341,304
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ....................... 5,733,644 4,743,929 35,352 813,047
NET REALIZED GAIN (LOSS) ON INVESTMENTS ............ 16,464,707 11,559,905 3,926,709 3,565,680
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)
OF INVESTMENTS .................................. 35,590,789 (56,242) 5,485,162 16,219,053
--------------- --------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ......................................... 57,789,140 16,247,592 9,447,223 20,597,780
--------------- --------------- --------------- ---------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST
CONTRIBUTIONS ...................................... 27,769,856 781,393,050 3,105,614 7,178,229
WITHDRAWALS ........................................ (49,366,000) (22,944,573) (8,742,858) (21,215,147)
--------------- --------------- --------------- ---------------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS ............................... (21,596,144) 758,448,477 (5,637,244) (14,036,918)
--------------- --------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS ................. 36,192,996 774,696,069 3,809,979 6,560,862
--------------- --------------- --------------- ---------------
ENDING NET ASSETS ..................................... $ 810,889,065 $ 774,696,069 $ 188,712,145 $ 184,902,166
=============== =============== =============== ===============
(1) THIS PORTFOLIO COMMENCED OPERATIONS ON DECEMBER 6, 2004.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
202
STATEMENTS OF CHANGES IN NET ASSETS
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
EQUITY INCOME PORTFOLIO EQUITY VALUE PORTFOLIO
----------------------------------- -----------------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2006 SEPTEMBER 30, MARCH 31, 2006 SEPTEMBER 30,
(UNAUDITED) 2005 (UNAUDITED) 2005
- -----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ............................... $ 1,273,196,285 $ 1,739,060,014 $ 438,219,988 $ 225,993,634
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ....................... 10,751,523 29,718,544 2,643,718 4,211,622
NET REALIZED GAIN (LOSS) ON INVESTMENTS ............ 86,513,450 263,090,149 15,339,886 36,519,620
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)
OF INVESTMENTS .................................. (56,115,058) (101,890,052) 10,096,858 24,408,508
--------------- --------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ......................................... 41,149,915 190,918,641 28,080,462 65,139,750
--------------- --------------- --------------- ---------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST
CONTRIBUTIONS ...................................... 27,032,429 22,472,150 24,931,951 240,172,585
WITHDRAWALS ........................................ (276,735,585) (679,254,520) (25,918,333) (93,085,981)
--------------- --------------- --------------- ---------------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS ............................... (249,703,156) (656,782,370) (986,382) 147,086,604
--------------- --------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS ................. (208,553,241) (465,863,729) 27,094,080 212,226,354
--------------- --------------- --------------- ---------------
ENDING NET ASSETS ..................................... $ 1,064,643,044 $ 1,273,196,285 $ 465,314,068 $ 438,219,988
=============== =============== =============== ===============
INDEX PORTFOLIO
-----------------------------------
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2006 SEPTEMBER 30,
(UNAUDITED) 2005
- --------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ............................... $ 2,151,037,408 $ 1,846,126,209
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ....................... 20,701,492 41,951,828
NET REALIZED GAIN (LOSS) ON INVESTMENTS ............ 23,538,425 84,611,766
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)
OF INVESTMENTS .................................. 91,129,229 139,639,605
--------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ......................................... 135,369,146 266,203,199
--------------- ---------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST
CONTRIBUTIONS ...................................... 180,455,274 321,376,976
WITHDRAWALS ........................................ (135,595,825) (282,668,976)
--------------- ---------------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS ............................... 44,859,449 38,708,000
--------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS ................. 180,228,595 304,911,199
--------------- ---------------
ENDING NET ASSETS ..................................... $ 2,331,266,003 $ 2,151,037,408
=============== ===============
203
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
INTERNATIONAL CORE PORTFOLIO INTERNATIONAL GROWTH PORTFOLIO(2)
---------------------------------- ----------------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED PERIOD ENDED
MARCH 31, 2006 SEPTEMBER 30, MARCH 31, 2006 SEPTEMBER 30,
(UNAUDITED) 2005 (UNAUDITED) 2005
- -------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ............................... $ 160,473,368 $ 461,906,264 $ 251,828,302 $ 0
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ....................... 729,037 2,503,163 (108,821) 1,687,794
NET REALIZED GAIN (LOSS) ON INVESTMENTS ............ 6,478,277 64,013,738 12,697,943 8,235,022
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)
OF INVESTMENTS .................................. 9,633,803 (35,614,283) 28,420,867 26,128,962
-------------- -------------- -------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ......................................... 16,841,117 30,902,618 41,009,989 36,051,778
-------------- -------------- -------------- --------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST
CONTRIBUTIONS ...................................... 3,143,823 15,224,525 10,591,945 248,728,667
WITHDRAWALS ........................................ (13,418,131) (347,560,039) (23,765,057) (32,952,143)
-------------- -------------- -------------- --------------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS ............................... (10,274,308) (332,335,514) (13,173,112) 215,776,524
-------------- -------------- -------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS ................. 6,566,809 (301,432,896) 27,836,877 251,828,302
-------------- -------------- -------------- --------------
ENDING NET ASSETS ..................................... $ 167,040,177 $ 160,473,368 $ 279,665,179 $ 251,828,302
============== ============== ============== ==============
(2) THIS PORTFOLIO COMMENCED OPERATIONS ON OCTOBER 6, 2004.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
204
STATEMENTS OF CHANGES IN NET ASSETS
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO(2) INTERNATIONAL VALUE PORTFOLIO
--------------------------------- ----------------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS ENDED PERIOD ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2006 SEPTEMBER 30, MARCH 31, 2006 SEPTEMBER 30,
(UNAUDITED) 2005 (UNAUDITED) 2005
- -------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ............................... $ 161,372,219 $ 0 $ 162,175,581 $ 155,296,981
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ....................... 1,377,758 3,791,332 1,065,483 3,531,358
NET REALIZED GAIN (LOSS) ON INVESTMENTS ............ 4,204,061 3,715,456 9,567,899 14,568,321
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)
OF INVESTMENTS .................................. 16,315,217 24,359,661 10,050,942 19,114,976
-------------- -------------- -------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ......................................... 21,897,036 31,866,449 20,684,324 37,214,655
-------------- -------------- -------------- --------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST
CONTRIBUTIONS ...................................... 1,998,726 159,805,164 4,094,347 7,530,070
WITHDRAWALS ........................................ (17,628,061) (30,299,394) (17,467,088) (37,866,125)
-------------- -------------- -------------- --------------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS ............................... (15,629,335) 129,505,770 (13,372,741) (30,336,055)
-------------- -------------- -------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS ................. 6,267,701 161,372,219 7,311,583 6,878,600
-------------- -------------- -------------- --------------
ENDING NET ASSETS ..................................... $ 167,639,920 $ 161,372,219 $ 169,487,164 $ 162,175,581
============== ============== ============== ==============
LARGE CAP APPRECIATION PORTFOLIO
----------------------------------
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2006 SEPTEMBER 30,
(UNAUDITED) 2005
- -------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ............................... $ 132,789,757 $ 114,158,777
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ....................... 399,355 1,029,238
NET REALIZED GAIN (LOSS) ON INVESTMENTS ............ 11,632,863 9,657,362
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)
OF INVESTMENTS .................................. (1,036,045) 11,730,871
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ......................................... 10,996,173 22,417,471
-------------- --------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST
CONTRIBUTIONS ...................................... 7,120,702 13,469,241
WITHDRAWALS ........................................ (9,027,792) (17,255,732)
-------------- --------------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS ............................... (1,907,090) (3,786,491)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS ................. 9,089,083 18,630,980
-------------- --------------
ENDING NET ASSETS ..................................... $ 141,878,840 $ 132,789,757
============== ==============
205
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
LARGE COMPANY GROWTH PORTFOLIO SMALL CAP INDEX PORTFOLIO
----------------------------------- -----------------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2006 SEPTEMBER 30, MARCH 31, 2006 SEPTEMBER 30,
(UNAUDITED) 2005 (UNAUDITED) 2005
- ----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
Beginning Net Assets ............................... $ 3,563,533,543 $ 3,403,979,864 $ 359,172,109 $ 311,448,570
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ....................... 2,804,904 24,671,536 1,858,299 3,380,122
NET REALIZED GAIN (LOSS) ON INVESTMENTS ............ 64,646,295 176,488,735 18,363,833 14,081,612
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)
OF INVESTMENTS .................................. 144,312,725 200,597,199 28,243,652 46,194,745
--------------- --------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ......................................... 211,763,924 401,757,470 48,465,784 63,656,479
--------------- --------------- --------------- ---------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST
CONTRIBUTIONS ...................................... 82,850,202 497,083,297 21,551,566 28,963,364
WITHDRAWALS ........................................ (435,193,416) (739,287,088) (26,464,107) (44,896,304)
--------------- --------------- --------------- ---------------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS ............................... (352,343,214) (242,203,791) (4,912,541) (15,932,940)
--------------- --------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS ................. (140,579,290) 159,553,679 43,553,243 47,723,539
--------------- --------------- --------------- ---------------
ENDING NET ASSETS ..................................... $ 3,422,954,253 $ 3,563,533,543 $ 402,725,352 $ 359,172,109
=============== =============== =============== ===============
(3) THIS PORTFOLIO COMMENCED OPERATIONS ON JANUARY 31, 2006.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
206
STATEMENTS OF CHANGES IN NET ASSETS
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO SMALL COMPANY VALUE PORTFOLIO
------------------------------------ -----------------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2006 SEPTEMBER 30, MARCH 31, 2006 SEPTEMBER 30,
(UNAUDITED) 2005 (UNAUDITED) 2005
- -----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
Beginning Net Assets ............................... $ 889,007,735 $ 798,352,072 $ 620,229,304 $ 445,746,360
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ....................... (1,017,213) (3,794,922) 2,179,524 3,246,193
NET REALIZED GAIN (LOSS) ON INVESTMENTS ............ 77,318,419 96,209,873 60,222,758 90,994,124
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)
OF INVESTMENTS .................................. 87,513,659 34,372,379 15,224,032 18,729,897
--------------- --------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ......................................... 163,814,865 126,787,330 77,626,314 112,970,214
--------------- --------------- --------------- ---------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST
CONTRIBUTIONS ...................................... 43,474,285 84,733,044 145,374,648 137,873,623
WITHDRAWALS ........................................ (68,769,259) (120,864,711) (219,752,915) (76,360,893)
--------------- --------------- --------------- ---------------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS ............................... (25,294,974) (36,131,667) (74,378,267) 61,512,730
--------------- --------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS ................. 138,519,891 90,655,663 3,248,047 174,482,944
--------------- --------------- --------------- ---------------
ENDING NET ASSETS ..................................... $ 1,027,527,626 $ 889,007,735 $ 623,477,351 $ 620,229,304
=============== =============== =============== ===============
STRATEGIC SMALL CAP VALUE PORTFOLIO(3)
-------------------------------------
FOR THE
PERIOD ENDED
SEPTEMBER 30,
2005
- -----------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
Beginning Net Assets ............................... $ 0
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ....................... 253,629
NET REALIZED GAIN (LOSS) ON INVESTMENTS ............ 644,786
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)
OF INVESTMENTS .................................. 8,204,870
---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ......................................... 9,103,285
---------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST
CONTRIBUTIONS ...................................... 196,976,951
WITHDRAWALS ........................................ (3,803,163)
---------------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS ............................... 193,173,788
---------------
NET INCREASE (DECREASE) IN NET ASSETS ................. 202,277,073
---------------
ENDING NET ASSETS ..................................... $ 202,277,073
===============
207
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
RATIO TO AVERAGE NET ASSETS (ANNUALIZED)(1)
---------------------------------------------------
PORTFOLIO
NET INVESTMENT GROSS EXPENSES NET TOTAL TURNOVER
INCOME (LOSS) EXPENSES WAIVED EXPENSES RETURN(2) RATE
- ----------------------------------------------------------------------------------------------------------------------------------
C&B LARGE CAP VALUE PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED).... 1.44% 0.77% (0.11)% 0.66% 7.42% 15%
DECEMBER 6, 2004(3) TO SEPTEMBER 30, 2005 ....... 0.98% 0.77% (0.06)% 0.71% 1.51% 19%
DISCIPLINED GROWTH PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED).... 0.04% 0.79% (0.01)% 0.78% 5.23% 40%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... 0.44% 0.79% (0.01)% 0.78% 11.76% 45%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004............ 0.28% 0.80% (0.26)% 0.54% 9.88% 87%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003............ 0.28% 0.88% (0.15)% 0.73% 25.65% 117%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002............ 0.27% 0.91% (0.18)% 0.73% (12.57)% 156%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001............ 0.15% 0.82% (0.10)% 0.72% (20.55)% 181%
EQUITY INCOME PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED).... 1.88% 0.75% (0.05)% 0.70% 3.64% 3%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... 2.04% 0.73% (0.13)% 0.60% 13.30% 20%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004............ 1.86% 0.77% (0.21)% 0.56% 17.04% 11%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003............ 2.01% 0.78% (0.11)% 0.67% 20.66% 9%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002............ 1.61% 0.78% (0.10)% 0.68% (19.49)% 12%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001............ 1.29% 0.78% (0.10)% 0.68% (8.61)% 3%
EQUITY VALUE PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED).... 1.19% 0.79% (0.01)% 0.78% 6.33% 53%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... 1.22% 0.78% (0.02)% 0.76% 21.61% 145%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004............ 1.25% 0.80% (0.18)% 0.62% 17.82% 122%
AUGUST 29, 2003(3) TO SEPTEMBER 30, 2003......... 0.64% 0.86% (0.32)% 0.54% (1.80)% 3%
INDEX PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED).... 1.87% 0.12% 0.00% 0.12% 6.34% 3%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... 2.08% 0.12% (0.08)% 0.04% 12.23% 8%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004............ 1.71% 0.17% (0.14)% 0.03% 13.87% 2%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003............ 1.70% 0.18% (0.05)% 0.13% 24.42% 3%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002............ 1.40% 0.18% (0.05)% 0.13% (20.52)% 4%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001............ 1.23% 0.18% (0.05)% 0.13% (26.56)% 2%
INTERNATIONAL CORE PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED).... 0.91% 1.11% (0.08)% 1.03% 10.71% 24%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... 1.51% 1.09% (0.01)% 1.08% 18.69% 108%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004............ 0.86% 1.11% (0.15)% 0.96% 13.84% 33%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003............ 0.81% 1.12% (0.03)% 1.09% 18.39% 75%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002............ 0.54% 1.26% (0.02)% 1.24% (19.04)% 38%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001............ 0.57% 1.31% (0.04)% 1.27% (28.86)% 33%
INTERNATIONAL GROWTH PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED).... (0.08)% 1.08% (0.09)% 0.99% 16.76% 30%
OCTOBER 6, 2004(3) TO SEPTEMBER 30, 2005 ........ 1.02% 1.08% (0.02)% 1.06% 22.30% 67%
INTERNATIONAL INDEX PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED).... 1.71% 0.51% (0.13)% 0.38% 14.27% 2%
OCTOBER 6, 2004(3) TO SEPTEMBER 30, 2005 ........ 2.41% 0.49% (0.03)% 0.46% 21.90% 21%
INTERNATIONAL VALUE PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED).... 1.31% 1.12% (0.02)% 1.10% 13.24% 9%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... 2.21% 1.11% (0.01)% 1.10% 25.92% 14%
OCTOBER 31, 2003(3) TO SEPTEMBER 30, 2004........ 2.61% 1.02% (0.18)% 0.84% 20.00% 24%
LARGE CAP APPRECIATION PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED).... 0.59% 0.77% (0.06)% 0.71% 8.30% 80%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... 0.83% 0.74% 0.00% 0.74% 20.02% 133%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ........... 0.50% 0.76% (0.14)% 0.62% 10.56% 149%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003............ 0.29% 0.81% (0.09)% 0.72% 18.50% 153%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002............ 0.37% 0.88% (0.16)% 0.72% (20.04)% 123%
AUGUST 31, 2001(3) TO SEPTEMBER 30, 2001......... 1.51% 0.79% (0.07)% 0.72% (7.01)% 10%
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
208
FINANCIAL HIGHLIGHTS
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
RATIO TO AVERAGE NET ASSETS (ANNUALIZED)(1)
---------------------------------------------------
PORTFOLIO
NET INVESTMENT GROSS EXPENSES NET TOTAL TURNOVER
INCOME (LOSS) EXPENSES WAIVED EXPENSES RETURN(2) RATE
- ----------------------------------------------------------------------------------------------------------------------------------
LARGE COMPANY GROWTH PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED).... 0.16% 0.70% (0.09)% 0.61% 5.94% 3%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... 0.69% 0.69% (0.01)% 0.68% 11.03% 18%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004............ (0.09)% 0.76% (0.08)% 0.68% 2.96% 14%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003............ (0.24)% 0.78% (0.02)% 0.76% 27.90% 13%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002............ (0.34)% 0.78% 0.00% 0.78% (22.32)% 18%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001............ (0.29)% 0.78% 0.00% 0.78% (39.70)% 13%
SMALL CAP INDEX PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED).... 1.00% 0.24% (0.01)% 0.23% 13.23% 11%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... 1.00% 0.23% (0.05)% 0.18% 21.03% 14%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ........... 0.93% 0.28% (0.19)% 0.09% 23.97% 17%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003............ 0.74% 0.31% (0.02)% 0.29% 27.79% 11%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002............ 0.57% 0.33% (0.01)% 0.32% (2.60)% 17%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001............ 0.90% 0.33% (0.01)% 0.32% (12.27)% 25%
SMALL COMPANY GROWTH PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED).... (0.22)% 0.91% 0.00% 0.91% 18.61% 67%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... (0.45)% 0.91% 0.00% 0.91% 16.51% 142%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004............ (0.63)% 0.93% (0.07)% 0.86% 12.70% 145%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003............ (0.35)% 0.94% (0.02)% 0.92% 37.90% 163%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002............ (0.40)% 0.94% 0.00% 0.94% (19.95)% 169%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001............ (0.17)% 0.94% 0.00% 0.94% (23.09)% 206%
SMALL COMPANY VALUE PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED).... 0.67% 0.92% (0.18)% 0.74% 11.82% 58%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... 0.61% 0.92% (0.10)% 0.82% 24.77% 70%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004............ 0.54% 0.93% (0.13)% 0.80% 23.72% 64%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003............ 0.70% 0.95% (0.16)% 0.79% 38.33% 80%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002............ 0.68% 0.98% (0.19)% 0.79% (2.16)% 98%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001............ 1.32% 0.97% (0.18)% 0.79% 10.70% 90%
STRATEGIC SMALL CAP VALUE PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------------
JANUARY 31, 2006(3) TO MARCH 31, 2006 (UNAUDITED) 0.30% 0.99% (0.21)% 0.78% 4.00% 6%
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
209
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
NOTES TO FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(1) During each period, various fees and expenses were waived and reimbursed,
as indicated. The ratio of Gross Expenses to Average Net Assets reflects
the expense ratio in the absence of any waivers and reimbursements (Note
3).
(2) Total return calculations do not include any sales charges, and would have
been lower had certain expenses not been waived or reimbursed during the
periods shown. Returns for periods less than one year are not annualized.
(3) Commencement of operations.
210
NOTES TO FINANCIAL STATEMENTS WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
1. ORGANIZATION
- --------------------------------------------------------------------------------
Wells Fargo Master Trust (the "Trust") is registered as an open-end
management investment company under the Investment Company Act of 1940, as
amended (the "1940 Act"). The Trust currently has 19 separate investment
portfolios. These financial statements are for 15 of those portfolios as
follows: the C&B Large Cap Value Portfolio, Disciplined Growth Portfolio, Equity
Income Portfolio, Equity Value Portfolio, Index Portfolio, International Core
Portfolio, International Growth Portfolio, International Index Portfolio,
Internationl Value Portfolio, Large Cap Appreciation Portfolio, Large Company
Growth Portfolio, Small Cap Index Portfolio, Small Company Growth Portfolio,
Small Company Value Portfolio and Strategic Small Cap Value Portfolio (each, a
"Fund" and collectively, the "Funds").
Interests in the Funds are sold without any sales charge in private
placement transactions to qualified investors, including open-end management
investment companies.
2. SIGNIFICANT ACCOUNTING POLICIES
- --------------------------------------------------------------------------------
The following significant accounting policies, which are consistently
followed in the preparation of the financial statements of the Trust, are in
conformity with accounting principles generally accepted in the United States of
America ("GAAP") for investment companies.
The preparation of financial statements in conformity with GAAP requires
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.
In the normal course of business, the Trust may enter into contracts that
provide certain indemnifications. The Trust's maximum exposure under these
arrangements is dependent on future claims that may be made against the Funds
and, therefore, cannot be estimated; however, based on experience, the risk of
loss from such claims is considered remote.
SECURITY VALUATION
Investments in securities are valued each business day as of the close of
regular trading on the New York Stock Exchange, which is usually 4:00 p.m.
(Eastern Time). Securities which are traded on a national or foreign securities
exchange are valued at the last reported sales price. Securities listed on The
NASDAQ Stock Market, Inc. are valued at the NASDAQ Official Closing Price
("NOCP"), and if no NOCP is available, then at the last reported sales price. In
the absence of any sale of such securities, and in the case of other securities,
including U.S. Government obligations, but excluding debt securities maturing in
60 days or less, the price will be deemed "stale" and the valuations will be
determined in accordance with the Funds' Fair Valuation Procedures.
Securities denominated in foreign currencies are translated into U.S.
dollars using the closing rates of exchange in effect on the day of valuation.
Many securities markets and exchanges outside the U.S. close prior to the
close of the New York Stock Exchange and therefore may not fully reflect trading
or events that occur after the close of the principal exchange in which the
foreign investments are traded but before the close of the New York Stock
Exchange. If such trading or events are expected to materially affect the value
of the investments, then those investments are fair valued following procedures
approved by the Board of Trustees. These procedures take into account multiple
factors including movements in U.S. securities markets after foreign exchanges
close. Depending on market activity, such fair valuations may be frequent. In
light of the judgment involved in fair value decisions, there can be no
assurance that a fair value assigned to a particular security is accurate. Such
fair value pricing may result in NAVs that are higher or lower than NAVs based
on the closing price or latest quoted bid price.
Debt securities maturing in 60 days or less generally are valued at
amortized cost. The amortized cost method involves valuing a security at its
cost, plus accretion of discount or minus amortization of premium over the
period until maturity, which approximates market value.
Investments which are not valued using any of the methods discussed above
are valued at their fair value as determined by procedures approved by the Board
of Trustees.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Securities transactions are recorded on a trade date basis. Realized gains
or losses are reported on the basis of identified cost of securities delivered.
Interest income is accrued daily and bond discounts are accreted and premiums
are amortized daily.
Dividend income is recognized on the ex-dividend date, except for certain
dividends from foreign securities, which are recorded as soon as the Fund is
informed of the ex-dividend date. Dividend income from foreign securities is
recorded net of foreign taxes withheld where recovery of such taxes is not
assured.
FOREIGN CURRENCY TRANSLATION
The accounting records are maintained in U.S. dollars. Assets, including
investment securities, and liabilities denominated in foreign currency are
translated into U.S. dollars at the prevailing rates of exchange at the date of
valuation. Purchases and sales of securities, and income and expenses are
translated at the prevailing rate of exchange on the respective dates of such
transactions. Reported net realized foreign exchange gains or losses arise from
sales of foreign currencies, currency gains or losses realized between the trade
and settlement dates on securities transactions, and the difference between the
amounts of dividends, interest and foreign withholding taxes recorded and the
U.S. dollar equivalent of the amounts actually paid or received. Net unrealized
foreign exchange gains and losses arise from changes in the fair value of assets
and liabilities other than investments in securities, at fiscal period-end,
resulting from changes in exchange rates.
211
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
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 at
fiscal period-end are not separately presented. Such changes are recorded with
net realized and unrealized gain from investments. Gains and losses from certain
foreign currency transactions are treated as ordinary income for U.S. federal
income tax purposes.
FEDERAL INCOME TAXES
Each Fund of the Trust is treated as a separate entity for federal income
tax purposes. The Funds of the Trust are not required to pay federal income
taxes on their net investment income and net capital gain as they are treated as
partnerships for federal income tax purposes. All interest, dividends, gains and
losses of a Fund are deemed to have been "passed through" to the interestholders
in proportion to their holdings of the Fund regardless of whether such interest,
dividends, or gains have been distributed by the Fund.
FORWARD FOREIGN CURRENCY CONTRACTS
The Funds may enter into forward foreign currency contracts to protect
against a possible loss resulting from an adverse change in the relationship
between foreign currencies and the U.S. dollar, or between foreign currencies. A
forward contract is an agreement between two counterparties for future delivery
or receipt of currency at a specified price. Risks arise from the possible
inability of counterparties to meet the terms of their contracts and from
movements in currency values. Realized gains or losses are recognized when the
transaction is completed. Contracts which have been offset but have not reached
their settlement date are included in unrealized gains and losses.
As of March 31, 2006, outstanding forward contracts were as follows:
Currency Currency Net Unrealized
Amount to be Amount to be Appreciation/
Portfolio Received Type of Currency Settlement Date Delivered (Depreciation)
- --------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO 233,000 Australia Dollar 6/30/2006 $ 165,353 $ 1,215
290,000 Switzerland Franc 6/30/2006 225,365 (763)
907,000 Euro 6/30/2006 1,102,567 2,732
453,000 British Pound 6/30/2006 794,299 (6,315)
97,500,000 Japanese Yen 6/30/2006 845,877 (7,034)
- --------------------------------------------------------------------------------------------------------------------------------
FUTURES CONTRACTS
The Funds may purchase futures contracts to gain exposure to market
changes, which may be more efficient or cost effective than actually buying the
securities. A futures contract is an agreement between parties to buy or sell a
security at a set price on a future date. Upon entering into such a contract, a
Fund is required to pledge to the broker an amount of cash, U.S. Government
obligations or other high-quality debt securities equal to the minimum "initial
margin" requirements of the exchange on which the futures contract is traded.
Pursuant to the contract, the Fund agrees to receive from or pay to the broker
an amount of cash equal to the daily fluctuation in the value of the contract.
Such receipts or payments are known as "variation margin" and are recorded by
the Fund as unrealized gains or losses. When the contract is closed, the Fund
records a realized gain or loss equal to the difference between the value of the
contract at the time it was opened and the value at the time it was closed.
Pursuant to regulations and/or published positions of the Securities and
Exchange Commission (the "SEC") for long futures positions, the Fund is required
to segregate highly liquid securities as permitted by the SEC in connection with
futures transactions in an amount generally equal to the value of the underlying
contracts. Risks of entering into futures contracts include the possibility that
there may be an illiquid market and that a change in the value of the contract
may not correlate with changes in the value of the underlying securities. At
March 31, 2006, the following Funds held futures contracts:
Net Unrealized
Appreciation
Portfolio Contracts Type Expiration Date Notional Amount (Depreciation)
- ---------------------------------------------------------------------------------------------------------------------------
INDEX PORTFOLIO 34 Long S&P 500 June 2006 $11,046,350 $ 31,700
- ---------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO 31 Long DJ Eurostoxx 50 June 2006 1,413,941 2,138
11 Long FTSE 100 Index June 2006 1,149,480 (3,682)
8 Long TOPIX June 2006 1,095,009 80,600
- ---------------------------------------------------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO 14 Long Russell 2000 June 2006 5,215,375 187,225
- ---------------------------------------------------------------------------------------------------------------------------
SECURITY LOANS
The Funds may loan securities in return for securities, irrevocable
letters of credit or cash collateral, which is invested in various short-term
fixed income securities. A Fund may receive compensation for lending securities
in the form of fees or by retaining a portion of interest on the investment
securities or cash received as collateral. A Fund also continues to receive
interest or dividends on the securities loaned. Security loans are secured at
all times by collateral. The collateral is equal to at least 102% of the market
value of the securities loaned plus accrued interest when the transaction is
entered into. The collateral supporting loans of domestic and foreign equity
securities and corporate bonds are remarked daily while collateral supporting
loans of U.S. Government securities are remarked back to 102% only if the given
collateral falls below 100% of the market value of the securities loans plus any
accrued interest. Gain or loss in the market price of the securities loaned that
may occur during the term of the loan are reflected in the value of the Fund.
The risks from securities lending are that the borrower may
212
NOTES TO FINANCIAL STATEMENTS WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
not provide additional collateral when required or return the securities when
due or when called for by the Fund. Wells Fargo Bank, N.A., the Funds'
custodian, acts as the securities lending agent for the Funds and receives for
its services 30% of the revenues earned on the securities lending activities and
incurs all expenses. Prior to October 1, 2005, Wells Fargo Bank, N.A. received
35% of the revenues earned on the securities lending activities and incurred all
expenses. The value of the securities on loan and the value of the related
collateral at March 31, 2006, are shown on the Statement of Assets and
Liabilities.
3. EXPENSES
- --------------------------------------------------------------------------------
ADVISORY FEES
The Trust has entered into an advisory contract with Wells Fargo Funds
Management, LLC ("Funds Management"). The adviser is responsible for
implementing investment policies and guidelines and for supervising the
subadviser, who is responsible for day-to-day portfolio management.
Pursuant to the contract, Funds Management is entitled to receive an
advisory fee for its services as adviser. Funds Management may retain the
services of certain investment subadvisers to provide daily portfolio
management. The fees related to subadvisory services are borne directly by the
adviser and do not increase the overall fees paid by a Fund to the adviser.
Funds Management and the investment subadviser(s) are entitled to be paid a
monthly fee at the following annual rates:
Advisory Fees Subadvisory Fees
Average Daily (% of Average Average Daily (% of Average
Portfolio Net Assets Daily Net Assets) Subadviser Net Assets Daily Net Assets)
- ------------------------------------------------------------------------------------------------------------------------------------
C&B LARGE CAP First $500 million 0.750 Cooke & Bieler, L.P. First $250 million 0.450
VALUE PORTFOLIO Next $500 million 0.700 Next $250 million 0.400
Next $2 billion 0.650 Next $250 million 0.350
Next $2 billion 0.625 Over $750 million 0.300
Over $5 billion 0.600
- ------------------------------------------------------------------------------------------------------------------------------------
DISCIPLINED First $500 million 0.750 Smith Asset First $200 million 0.300
GROWTH PORTFOLIO Next $500 million 0.700 Management Next $300 million 0.200
Next $2 billion 0.650 Group, L.P. Over $500 million 0.150
Next $2 billion 0.625
Over $5 billion 0.600
- ------------------------------------------------------------------------------------------------------------------------------------
EQUITY INCOME First $500 million 0.750 Wells Capital First $100 million 0.350
PORTFOLIO* Next $500 million 0.700 Management Next $100 million 0.300
Next $2 billion 0.650 Incorporated Next $300 million 0.200
Next $2 billion 0.625 Over $500 million 0.150
Over $5 billion 0.600
- ------------------------------------------------------------------------------------------------------------------------------------
EQUITY VALUE First $500 million 0.750 Systematic Financial First $150 million 0.300
PORTFOLIO Next $500 million 0.700 Management L.P. Next $200 million 0.200
Next $2 billion 0.650 Next $400 million 0.150
Next $2 billion 0.625 Next $250 million 0.130
Over $5 billion 0.600 Over $1 billion 0.100
- ------------------------------------------------------------------------------------------------------------------------------------
INDEX PORTFOLIO* First $500 million 0.100 Wells Capital First $100 million 0.050
Next $500 million 0.100 Management Next $100 million 0.030
Next $2 billion 0.075 Incorporated Over $200 million 0.020
Next $2 billion 0.075
Over $5 billion 0.050
- ------------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL First $500 million 0.950 New Star First $50 million 0.350
CORE PORTFOLIO Next $500 million 0.900 Institutional Next $500 million 0.290
Next $2 billion 0.850 Managers Over $550 million 0.200
Next $2 billion 0.825 Limited
Over $5 billion 0.800
- ------------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL First $500 million 0.950 Artisan Partners First $250 million 0.700
GROWTH PORTFOLIO Next $500 million 0.900 Limited Partnership Over $250 million 0.500
Next $2 billion 0.850
Next $2 billion 0.825
Over $5 billion 0.800
- ------------------------------------------------------------------------------------------------------------------------------------
213
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
Advisory Fees Subadvisory Fees
Average Daily (% of Average Average Daily (% of Average
Portfolio Net Assets Daily Net Assets) Subadviser Net Assets Daily Net Assets)
- ------------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL First $500 million 0.350 SSgA Funds First $100 million 0.080
INDEX PORTFOLIO Next $500 million 0.350 Management Over $100 million 0.060
Next $2 billion 0.325
Next $2 billion 0.325
Over $5 billion 0.300
- ------------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL First $500 million 0.950 LSV Asset First $150 million 0.350
VALUE PORTFOLIO Next $500 million 0.900 Management Next $350 million 0.400
Next $2 billion 0.850 Next $250 million 0.350
Next $2 billion 0.825 Next $250 million 0.325
Over $5 billion 0.800 Over $1 billion 0.300
- ------------------------------------------------------------------------------------------------------------------------------------
LARGE CAP First $500 million 0.700 Cadence Capital First $250 million 0.300
APPRECIATION Next $500 million 0.700 Management LLC Next $250 million 0.200
PORTFOLIO Next $2 billion 0.650 Next $500 million 0.150
Next $2 billion 0.625 Over $1 billion 0.100
Over $5 billion 0.600
- ------------------------------------------------------------------------------------------------------------------------------------
LARGE COMPANY First $500 million 0.750 Peregrine Capital First $25 million 0.750
GROWTH PORTFOLIO Next $500 million 0.700 Management, Inc. Next $25 million 0.600
Next $2 billion 0.650 Next $225 million 0.500
Next $2 billion 0.625 Over $275 million 0.300
Over $5 billion 0.600
- ------------------------------------------------------------------------------------------------------------------------------------
SMALL CAP INDEX First $500 million 0.200 Wells Capital First $100 million 0.050
PORTFOLIO* Next $500 million 0.200 Management Next $100 million 0.030
Next $2 billion 0.175 Incorporated Over $200 million 0.020
Next $2 billion 0.175
Over $5 billion 0.150
- ------------------------------------------------------------------------------------------------------------------------------------
SMALL COMPANY First $500 million 0.900 Peregrine Capital First $50 million 0.900
GROWTH PORTFOLIO Next $500 million 0.850 Management, Inc. Next $130 million 0.750
Next $2 billion 0.800 Next $160 million 0.650
Next $2 billion 0.775 Next $345 million 0.500
Over $5 billion 0.750 Next $50 million 0.520
Over $735 million 0.550
- ------------------------------------------------------------------------------------------------------------------------------------
SMALL COMPANY First $500 million 0.900 Peregrine Capital First $175 million 0.500
VALUE PORTFOLIO Next $500 million 0.850 Management, Inc. Over $175 million 0.750
Next $2 billion 0.800
Next $2 billion 0.775
Over $5 billion 0.750
- ------------------------------------------------------------------------------------------------------------------------------------
STRATEGIC SMALL CAP First $500 million 0.900 Wells Capital First $200 million 0.450
VALUE PORTFOLIO Next $500 million 0.850 Management Over $200 million 0.400
Next $2 billion 0.800 Incorporated
Next $2 billion 0.775
Over $5 billion 0.750
- ------------------------------------------------------------------------------------------------------------------------------------
214
NOTES TO FINANCIAL STATEMENTS WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
* Effective January 1, 2006. Prior to January 1, 2006, Subadviser(s) were
entitled to be paid a monthly fee at the following rates:
Subadvisory
Average Daily Fees (% of Average
Portfolio Subadviser Net Assets Daily Net Assets)
- --------------------------------------------------------------------------------------------------
EQUITY INCOME Wells Capital First $200 million 0.250
PORTFOLIO Management Next $200 million 0.200
Incorporated Over $400 million 0.150
- --------------------------------------------------------------------------------------------------
INDEX PORTFOLIO Wells Capital First $200 million 0.020
Management Over $200 million 0.010
Incorporated
- --------------------------------------------------------------------------------------------------
INTERNATIONAL GROWTH Artisan Partners All asset levels 0.700
PORTFOLIO Limited Partnership
- --------------------------------------------------------------------------------------------------
SMALL CAP INDEX Wells Capital First $200 million 0.020
PORTFOLIO Management Over $200 million 0.010
Incorporated
ADMINISTRATION AND TRANSFER AGENT FEES
Currently, there are no administration or transfer agency fees charged to
the Master Trust.
CUSTODY FEES
The Trust has entered into a contract with Wells Fargo Bank, N.A. ("WFB"),
whereby WFB is responsible for providing custody services. Pursuant to the
contract, WFB is entitled to a monthly fee for custody services at the following
annual rates:
% of Average
Portfolio Daily Net Assets
- --------------------------------------------------------------------------------
INTERNATIONAL CORE PORTFOLIO 0.10
- --------------------------------------------------------------------------------
INTERNATIONAL GROWTH PORTFOLIO 0.10
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO 0.10
- --------------------------------------------------------------------------------
INTERNATIONAL VALUE PORTFOLIO 0.10
- --------------------------------------------------------------------------------
ALL OTHER FUNDS 0.02
- --------------------------------------------------------------------------------
TRANSACTIONS WITH AFFILIATES
For the period ended March 31, 2006, the following funds paid brokerage
commissions to an affiliated broker dealer:
Portfolio Broker Commission
- --------------------------------------------------------------------------------
Small Company Growth Portfolio $8,124
- --------------------------------------------------------------------------------
OTHER FEES
PFPC Inc. ("PFPC") serves as fund accountant for the Trust. PFPC currently
does not receive a fee for its services, but is entitled to be reimbursed for
all out-of-pocket expenses reasonably incurred in providing these services.
WAIVED FEES AND REIMBURSED EXPENSES
All amounts shown as waived fees or reimbursed expenses in the Statements
of Operations, for the year ended, were waived by Funds Management, first from
advisory fees, and then any remaining amount consecutively from custody fees
collected, if any.
215
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
4. INVESTMENT PORTFOLIO TRANSACTIONS
- --------------------------------------------------------------------------------
Purchases and sales of investments, exclusive of short-term securities
(securities with maturities of one year or less at purchase date) and U.S.
Government obligations for the period ended March 31, 2006, were as follows:
Portfolio Purchases at Cost Sales Proceeds
- --------------------------------------------------------------------------------
C&B LARGE CAP VALUE PORTFOLIO $ 114,601,117 $ 122,929,813
- --------------------------------------------------------------------------------
DISCIPLINED GROWTH PORTFOLIO 72,191,673 74,705,497
- --------------------------------------------------------------------------------
EQUITY INCOME PORTFOLIO 39,292,629 281,678,052
- --------------------------------------------------------------------------------
EQUITY VALUE PORTFOLIO 234,685,842 236,120,500
- --------------------------------------------------------------------------------
INDEX PORTFOLIO 155,433,837 71,287,796
- --------------------------------------------------------------------------------
INTERNATIONAL CORE PORTFOLIO 38,249,439 49,424,015
- --------------------------------------------------------------------------------
INTERNATIONAL GROWTH PORTFOLIO 75,779,748 90,739,551
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO 2,641,220 17,680,311
- --------------------------------------------------------------------------------
INTERNATIONAL VALUE PORTFOLIO 14,540,851 26,882,236
- --------------------------------------------------------------------------------
LARGE CAP APPRECIATION PORTFOLIO 106,403,724 105,748,284
- --------------------------------------------------------------------------------
LARGE COMPANY GROWTH PORTFOLIO 90,177,225 464,592,490
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO 39,795,161 43,091,348
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO 611,682,946 650,005,416
- --------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO 358,738,527 444,207,613
- --------------------------------------------------------------------------------
STRATEGIC SMALL CAP VALUE PORTFOLIO 198,451,603 11,097,867
- --------------------------------------------------------------------------------
216
OTHER INFORMATION (UNAUDITED) WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
PROXY VOTING INFORMATION
A description of the policies and procedures that the Funds use to
determine how to vote proxies relating to portfolio securities and information
regarding how to obtain the results of such voting during the most recent
12-month period ended June 30 is available without charge, upon request, by
calling 1-800-222-8222, visiting our Web site at
WWW.WELLSFARGO.COM/ADVANTAGEFUNDS, or visiting the SEC Web site at WWW.SEC.GOV.
PORTFOLIO HOLDINGS INFORMATION
The complete portfolio holdings for each Fund are publicly available on
the Funds' Web site (WWW.WELLSFARGO.COM/ADVANTAGEFUNDS) on a monthly, 30-day or
more delayed basis. In addition, top ten holdings information for each Fund is
publicly available on the Funds' Web site on a monthly, seven-day or more
delayed basis. Each Fund files its complete schedule of portfolio holdings with
the SEC for the first and third quarters of each fiscal year on Form N-Q, which
is available without charge by visiting the SEC Web site at WWW.SEC.GOV. In
addition, each Fund's Form N-Q may be reviewed and copied at the SEC's Public
Reference Room in Washington, DC, and at regional offices in New York City, at
233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900.
Information about the Public Reference Room may be obtained by calling
1-800-SEC-0330.
BOARD OF TRUSTEES
The following table provides basic information about the Board of Trustees
(the "Trustees") of the Wells Fargo Funds Trust (the "Trust"). This table
supplements, and should be read in conjunction with, the Prospectus and the
Statement of Additional Information* of each Fund. Each of the Trustees listed
below acts in identical capacities for each of the 139 funds comprising the
Trust, Wells Fargo Variable Trust and Wells Fargo Master Trust (collectively the
"Fund Complex"). All of the non-interested Trustees are also members of the
Audit and Governance Committees of each Trust in the Fund Complex. The 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.
NON-INTERESTED TRUSTEES
- -----------------------------------------------------------------------------------------------------------
POSITION HELD AND PRINCIPAL OCCUPATIONS DURING
NAME AND AGE LENGTH OF SERVICE** PAST FIVE YEARS OTHER DIRECTORSHIPS
- -----------------------------------------------------------------------------------------------------------
Thomas S. Goho Trustee, since 1987 Chair of Finance, Wake Forest None
63 University, since 2006. Benson-
Pruitt Professorship, Wake
Forest University, Calloway
School of Business and
Accountancy, since 1999.
- -----------------------------------------------------------------------------------------------------------
Peter G. Gordon Trustee, since 1998 Chairman, CEO, and Co- None
63 (Chairman, since 2005) Founder of Crystal Geyser
Water Company, and President
of Crystal Geyser Roxane Water
Company.
- -----------------------------------------------------------------------------------------------------------
Richard M. Leach Trustee, since 1987 Retired. Prior thereto, President None
72 of Richard M. Leach Associates
(a financial consulting firm).
- -----------------------------------------------------------------------------------------------------------
Olivia S. Mitchell Trustee, since 2006 Professor of Insurance and Risk None
53 Management, Wharton School,
University of Pennsylvania.
Director of the Boettner Center
on Pensions and Retirement.
Research Associate and Board
Member, Penn Aging Research
Center. Research Associate,
National Bureau of Economic
Research.
- -----------------------------------------------------------------------------------------------------------
Timothy J. Penny Trustee, since 1996 Senior Counselor to the public None
54 relations firm of Himle-Horner,
and Senior Fellow at the
Humphrey Institute,
Minneapolis, Minnesota (a
public policy organization).
- -----------------------------------------------------------------------------------------------------------
Donald C. Willeke Trustee, since 1996 Principal of the law firm of None
65 Willeke & Daniels.
217
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS OTHER INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
INTERESTED TRUSTEE***
- -----------------------------------------------------------------------------------------------------------
POSITION HELD AND PRINCIPAL OCCUPATIONS DURING
NAME AND AGE LENGTH OF SERVICE** PAST FIVE YEARS OTHER DIRECTORSHIPS
- -----------------------------------------------------------------------------------------------------------
J. Tucker Morse Trustee, since 1987 Private Investor/Real Estate None
61 Developer. Prior thereto,
Chairman of White Point
Capital, LLC until 2005.
- -----------------------------------------------------------------------------------------------------------
OFFICERS
- -----------------------------------------------------------------------------------------------------------
POSITION HELD AND PRINCIPAL OCCUPATIONS DURING
NAME AND AGE LENGTH OF SERVICE PAST FIVE YEARS OTHER DIRECTORSHIPS
- -----------------------------------------------------------------------------------------------------------
Karla M. Rabusch President, since 2003 Executive Vice President of None
46 Wells Fargo Bank, N.A. and
President of Wells Fargo Funds
Management, LLC. Senior Vice
President and Chief
Administrative Officer of Wells
Fargo Funds Management, LLC
from 2001 to 2003.
- -----------------------------------------------------------------------------------------------------------
C. David Messman Secretary, since 2000 Vice President and Managing None
45 Senior Counsel of Wells Fargo
Bank, N.A. and Senior Vice
President and Secretary of Wells
Fargo Funds Management, LLC.
Vice President and Senior
Counsel of Wells Fargo Bank,
N.A. from 1996 to 2003.
- -----------------------------------------------------------------------------------------------------------
A. Erdem Cimen Treasurer, since 2006 Vice President of Wells Fargo None
32 Bank, N.A. and Vice President
of Financial Operations for
Wells Fargo Funds Management,
LLC. Vice President and Group
Finance Officer of Wells Fargo
Bank, N.A. Auto Finance Group
from 2004 to 2006. Vice
President of Portfolio Risk
Management for Wells Fargo
Bank, N.A. Auto Finance Group
in 2004. Vice President of
Portfolio Research and Analysis
for Wells Fargo Bank, N.A. Auto
Finance Group from 2001 to
2004. Director of Small Business
Services Risk Management for
American Express Travel Related
Services from 2000 to 2001.
- -----------------------------------------------------------------------------------------------------------
* The Statement of Additional Information includes additional information
about the Funds' Trustees and is available, without charge, upon
request, by calling 1-800-222-8222 or by visiting the Funds' Web site at
WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
** Length of service dates reflects a Trustee's commencement of service with
the Trust's predecessor entities.
*** As of March 31, 2006, one of the seven Trustees is considered an
"interested person" of the Trusts as defined in the Investment Company Act
of 1940. The interested Trustee, J. Tucker Morse, is affiliated with a
government securities dealer that is registered under the Securities
Exchange Act of 1934, which is not itself affiliated with Wells Fargo
Funds Management, LLC.
218
OTHER INFORMATION (UNAUDITED) WELLS FARGO ADVANTAGE ALLOCATION FUNDS
- --------------------------------------------------------------------------------
BOARD CONSIDERATION OF AND CONTINUATION OF INVESTMENT ADVISORY AND SUBADVISORY
AGREEMENTS:
AGGRESSIVE ALLOCATION FUND, ASSET ALLOCATION FUND, CONSERVATIVE ALLOCATION FUND,
GROWTH BALANCED FUND, MODERATE BALANCED FUND,
C&B LARGE CAP VALUE PORTFOLIO, DISCIPLINED GROWTH PORTFOLIO, EQUITY INCOME
PORTFOLIO, EQUITY VALUE PORTFOLIO, INDEX PORTFOLIO,
INTERNATIONAL CORE PORTFOLIO, INTERNATIONAL GROWTH PORTFOLIO, INTERNATIONAL
INDEX PORTFOLIO, INTERNATIONAL VALUE PORTFOLIO,
LARGE CAP APPRECIATION PORTFOLIO, LARGE COMPANY GROWTH PORTFOLIO, SMALL CAP
INDEX PORTFOLIO, SMALL COMPANY GROWTH PORTFOLIO,
SMALL COMPANY VALUE PORTFOLIO AND STRATEGIC SMALL CAP VALUE PORTFOLIO
- --------------------------------------------------------------------------------
Section 15(c) of the Investment Company Act of 1940 (the "1940 Act")
contemplates that the Boards of Trustees (each, a "Board" and collectively, the
"Boards") of Wells Fargo Funds Trust and Wells Fargo Master Trust (each, a
"Trust" and collectively, the "Trusts"), including a majority of the Trustees
who have no direct or indirect interest in the investment advisory and
subadvisory agreements and are not "interested persons" of each Trust, as
defined in the 1940 Act (the "Independent Trustees"), will annually review and
consider the continuation of the investment advisory and subadvisory agreements.
In this regard, the Boards reviewed and re-approved, during the most recent six
months covered by this report: (i) an investment advisory agreement with Wells
Fargo Funds Management, LLC ("Funds Management") for the Aggressive Allocation
Fund, Asset Allocation Fund, Conservative Allocation Fund, Growth Balanced Fund,
Moderate Balanced Fund, C&B Large Cap Value Portfolio, Disciplined Growth
Portfolio, Equity Income Portfolio, Equity Value Portfolio, Index Portfolio,
International Core Portfolio, International Growth Portfolio, International
Index Portfolio, International Value Portfolio, Large Cap Appreciation
Portfolio, Large Company Growth Portfolio, Small Cap Index Portfolio, Small
Company Growth Portfolio, Small Company Value Portfolio and Strategic Small Cap
Value Portfolio (the "Funds"); (ii) an investment subadvisory agreement with
Wells Capital Management Incorporated ("Wells Capital Management") for the
Aggressive Allocation Fund, Asset Allocation Fund, Conservative Allocation Fund,
Growth Balanced Fund, Moderate Balanced Fund, Equity Income Portfolio, Index
Portfolio, Small Cap Index Portfolio and Strategic Small Cap Value Portfolio;
(iii) an investment subadvisory agreement with Artisan Partners Limited
Partnership ("Artisan") for the International Growth Portfolio; (iv) an
investment subadvisory agreement with Cadence Capital Management, LLC
("Cadence") for the Large Cap Appreciation Portfolio; (v) an investment
subadvisory agreement with Cooke & Bieler L.P. ("Cooke & Bieler") for the C&B
Large Cap Value Portfolio; (vi) Galliard Capital Management, Inc. ("Galliard")
for the Aggressive Allocation Fund, Conservative Allocation Fund, Growth
Balanced Fund and Moderate Balanced Fund; (vii) an investment subadvisory
agreement with LSV Asset Management ("LSV") for the International Value
Portfolio; (viii) an investment subadvisory agreement with New Star
Institutional Managers Limited ("New Star") for the International Core
Portfolio; (ix) an investment subadvisory agreement with Peregrine Capital
Management, Inc. ("Peregrine") for the Aggressive Allocation Fund, Conservative
Allocation Fund, Growth Balanced Fund, Moderate Balanced Fund, Large Company
Growth Portfolio, Small Company Growth Portfolio and Small Company Value
Portfolio; (x) an investment subadvisory agreement with Smith Asset Management,
L.P. ("Smith") for the Aggressive Allocation Fund, Conservative Allocation Fund,
Growth Balanced Fund, Moderate Balanced Fund, Disciplined Growth Portfolio; (xi)
an investment subadvisory agreement with SSgA Funds Management ("SSgA") for the
International Index Portfolio; and (xii) an investment subadvisory agreement
with Systematic Financial Management, L.P. ("Systematic") for the Equity Value
Portfolio. The investment advisory agreements with Funds Management and the
investment subadvisory agreements with Wells Capital Management, Artisan,
Cadence, Cooke & Bieler, LSV, New Star, Peregrine, Smith, SSgA, and Systematic
(the "Subadvisers") are collectively referred to as the "Advisory Agreements."
More specifically, at meetings held on March 31, 2006, the Boards,
including the Independent Trustees advised by their independent legal counsel,
considered the factors and reached the conclusions described below relating to
the selection of Funds Management and the Subadvisers and the continuation of
the Advisory Agreements. Prior to the March 31, 2006 meetings, the Boards,
including the Independent Trustees, met in person and telephonically a number of
times, both with Funds Management and in private sessions relating to the
advisory contract approvals. The Independent Trustees were assisted in their
evaluation of the Advisory Agreements by independent legal counsel, from whom
they received separate legal advice and with whom they met separately from Funds
Management.
Because the Aggressive Allocation Fund, Conservative Allocation Fund,
Growth Balanced Fund and Moderate Balanced Fund are gateway blended funds that
invest all of their assets in the portfolios identified above, information
provided to the Boards regarding the Aggressive Allocation Fund, Conservative
Allocation Fund, Growth Balanced Fund and Moderate Balanced Fund is also
applicable to the portfolios identified above.
NATURE, EXTENT AND QUALITY OF SERVICES
- --------------------------------------------------------------------------------
The Boards received and considered various data and information regarding
the nature, extent and quality of services provided to the Funds by Funds
Management and the Subadvisers under the Advisory Agreements. The Board also
received and considered responses of Funds Management and the Subadvisers to a
detailed set of requests submitted by the Independent Trustees' independent
legal counsel on behalf of such Trustees. The Board reviewed and considered the
data and information, which included, among other things, information about the
background and experience of senior management and the expertise of, and amount
of attention devoted to the Funds by, investment personnel of Funds Management
and the Subadvisers. In this regard, the Boards specifically reviewed the
qualifications, background and responsibilities of the portfolio managers
primarily responsible for day-to-day portfolio management services for the
Funds.
219
WELLS FARGO ADVANTAGE ALLOCATION FUNDS OTHER INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
The Boards evaluated the ability of Funds Management and the Subadvisers,
based on their respective resources, reputations and other attributes, to
attract and retain highly qualified investment professionals, including
research, advisory, and supervisory personnel. In this regard, the Boards
considered information regarding Funds Management's and the Subadvisers'
compensation program for its personnel involved in the management of the Funds.
The Boards further considered the compliance programs and compliance
records of Funds Management and the Subadvisers. In addition, the Boards took
into account the administrative services provided to the Funds by Funds
Management and its affiliates. In considering these matters, the Boards
considered not only the specific information presented in connection with the
meetings, but also the knowledge gained over the course of interacting with
Funds Management about various topics, including Funds Management's oversight of
service providers, such as the Subadvisers.
Based on the above factors, together with those referenced below, each of
the Boards concluded that it was generally satisfied with the nature, extent and
quality of the investment advisory services provided to the Funds by Funds
Management and the Subadvisers.
FUND PERFORMANCE AND EXPENSES
- --------------------------------------------------------------------------------
The Boards considered the performance results for each of the Funds over
various time periods ended December 31, 2005. They also considered these results
in comparison to the median performance results of the group of funds that was
determined by Lipper Inc. ("Lipper") to be the most similar to a given Fund (the
"Peer Group") and to the median performance of a broader universe of relevant
funds as determined by Lipper (the "Universe"), as well as to each Fund's
benchmark index. Lipper is an independent provider of investment company data.
The Boards were provided with a description of the methodology used by Lipper to
select the mutual funds in each Fund's Peer Group and Universe. The Boards noted
that the performance of each of the Funds, except the Conservative Allocation
Fund and C&B Large Cap Value Portfolio, was better than, or not appreciably
below, the median performance of each Fund's Peer Group for most time periods.
The Boards noted that the performance of the C&B Large Cap Value Portfolio was
below the median performance for the Fund's Peer Group for several of the
periods. The Boards further noted that the C&B Large Cap Value Portfolio's
recent underperformance was due to the Fund's underweight position in energy and
utilities stocks, which is consistent with the Subadviser's investment process.
The Boards asked for a continued report on the performance of the C&B Large Cap
Value Portfolio. The Boards also noted the improvement in recent performance of
the Conservative Allocation Fund.
The Boards received and considered information regarding the Funds' net
operating expense ratios and their various components, including contractual
advisory fees, actual advisory fees, actual non-management fees, Rule 12b-1 and
non-Rule 12b-1 service fees, fee waivers/caps and/or expense reimbursements.
They also considered comparisons of these fees to the expense information for
the Funds' Peer Group and Universe, which comparative data was provided by
Lipper. The Boards noted that the net operating expense ratios of the Funds were
lower than, or not appreciably higher than, the Funds' Peer Groups' median net
operating expense ratios.
Based on the above-referenced considerations and other factors, the Boards
concluded that the overall performance and expense results supported the
re-approval of the Advisory Agreements for the Funds.
INVESTMENT ADVISORY AND SUBADVISORY FEE RATES
- --------------------------------------------------------------------------------
The Boards reviewed and considered the contractual investment advisory fee
rates payable by the Funds to Funds Management for investment advisory services,
both on a stand-alone basis and on a combined basis with the Funds'
administration fee rates (the "Advisory Agreement Rates"). The Boards took into
account the separate administrative services covered by the administration fee
rates. The Boards also reviewed and considered the contractual investment
subadvisory fee rates (the "Subadvisory Agreement Rates") payable by Funds
Management to the Subadvisers for investment subadvisory services. In addition,
the Boards reviewed and considered the existing fee waiver/cap arrangements
applicable to the Advisory Agreement Rates and considered the Advisory Agreement
Rates after taking the waivers/caps into account (the "Net Advisory Rates").
The Boards received and considered information comparing the Advisory
Agreement Rates and Net Advisory Rates with those of the other funds in the Peer
Group. The Boards noted that the Advisory Agreement Rates and the Net Advisory
Rates for the Funds were lower than, or not appreciably higher than, the median
rates of the Funds' Peer Group. In addition, the Boards concluded that the
combined investment advisory/administration fee rates for the Funds (before and
after waivers/caps and/or expense reimbursements) were reasonable in relation to
the Funds' Peer Group, and reasonable in relation to the services provided.
The Boards also reviewed and considered the Subadvisory Agreement Rates
and concluded that the Subadvisory Agreement Rates were fair and equitable,
based on their consideration of the factors described above.
PROFITABILITY
- --------------------------------------------------------------------------------
The Boards received and considered a detailed profitability analysis of
Funds Management based on the Advisory Agreement Rates and the Net Advisory
Rates, as well as on other relationships between the Funds on the one hand and
Funds Management affiliates on the other. The Boards concluded that, in light of
the costs of providing investment management and other services to the Funds,
the profits and other ancillary benefits that Funds Management and its
affiliates received with regard to providing these services to the Funds were
not unreasonable.
220
OTHER INFORMATION (UNAUDITED) WELLS FARGO ADVANTAGE ALLOCATION FUNDS
- --------------------------------------------------------------------------------
The Boards did not consider a separate profitability analysis of Wells
Capital Management, Peregrine and Smith, as their separate profitability from
their relationships with the Aggressive Allocation Fund, Asset Allocation Fund,
Conservative Allocation Fund, Growth Balanced Fund, Moderate Balanced Fund,
Disciplined Growth Portfolio, Equity Income Portfolio, Index Portfolio, Large
Company Growth Portfolio, Small Cap Index Portfolio, Small Company Growth
Portfolio, Small Company Value Portfolio and Strategic Small Cap Value
Portfolio, was not a material factor in determining whether to renew the
agreements. The Wells Fargo Master Trust Board did not consider profitability
information with respect to Artisan, Cadence, Cooke & Bieler, LSV, New Star,
SSgA, and Systematic, which are not affiliated with Funds Management. The Board
considered that the subadvisory fees paid to these subadvisers had been
negotiated by Funds Management on an arm's length basis and that these
subadvisers' separate profitability from their relationships with the C&B Large
Cap Value Portfolio, Equity Value Portfolio, International Core Portfolio,
International Growth Portfolio, International Index Portfolio, International
Value Portfolio and Large Cap Appreciation Portfolio, was not a material factor
in determining whether to renew the agreements.
ECONOMIES OF SCALE
- --------------------------------------------------------------------------------
The Boards received and considered general information regarding whether
there have been economies of scale with respect to the management of the Funds,
whether the Funds have appropriately benefited from any economies of scale, and
whether there is potential for realization of any further economies of scale.
The Boards acknowledged the inherent limitations of any analysis of an
investment adviser's economies of scale and of any attempt to correlate
breakpoints with such economies, stemming largely from the Boards' understanding
that economies of scale are realized, if at all, by an investment adviser across
a variety of products and services, not just in respect to a single fund. The
Boards concluded that any actual or potential economies of scale are, or will
be, shared reasonably with Fund shareholders/interestholders, most particularly
through Advisory Agreement Rate breakpoints applicable to the Funds.
INFORMATION ABOUT SERVICES TO OTHER CLIENTS
- --------------------------------------------------------------------------------
The Boards also received and considered information about the nature and
extent of services and fee rates offered by Funds Management to other similarly
situated series of the Trusts, and those offered by the Subadvisers to other
clients, including other registered investment companies and separate accounts.
The Boards concluded that the Advisory Agreement Rates, the Subadvisory
Agreement Rates and the Net Advisory Rates were within a reasonable range of the
fee rates offered to others by Funds Management and the Subadvisers, giving
effect to differences in services covered by such fee rates.
OTHER BENEFITS TO FUNDS MANAGEMENT AND THE SUBADVISERS
- --------------------------------------------------------------------------------
The Boards received and considered information regarding potential
"fall-out" or ancillary benefits received by Funds Management and its affiliates
and the Subadvisers as a result of their relationship with the Funds. Such
benefits could include, among others, benefits directly attributable to the
relationship of Funds Management and the Subadvisers with the Funds and benefits
potentially derived from an increase in Funds Management's and the Subadvisers'
business as a result of their relationship with the Funds (such as the ability
to market to shareholders/interestholders other financial products offered by
Funds Management and its affiliates or the Subadvisers and their affiliates).
The Boards also considered the effectiveness of the policies of the Funds
in achieving the best execution of portfolio transactions, whether and to what
extent soft dollar credits are sought and how any such credits are utilized, any
benefits that may be realized by using an affiliated broker, the extent to which
efforts are made to recapture transactions costs, and the controls applicable to
brokerage allocation procedures. The Boards also reviewed Funds Management's and
the Subadvisers methods for allocating portfolio investment opportunities among
the Funds and other clients.
OTHER FACTORS AND BROADER REVIEW
- --------------------------------------------------------------------------------
The Boards also considered the markets for distribution of the Funds,
including the principal channels through which the Funds' shares/interests are
offered and sold. The Boards noted that the Funds are part of one of the few
fund families that have both direct-to-fund and intermediary distribution.
As discussed above, the Boards reviewed detailed materials received from
Funds Management and the Subadvisers annually as part of the re-approval process
under Section 15(c) of the 1940 Act. The Boards also review and assess the
quality of the services that the Funds receive throughout the year. In this
regard, the Boards review reports of Funds Management and the Subadvisers at
each of their quarterly meetings, which include, among other things, a portfolio
review and fund performance reports. In addition, the Boards confer with the
portfolio managers of the Funds at various times throughout the year.
After considering the above-described factors and based on its
deliberations and its evaluation of the information described above, the Boards
concluded that approval of the continuation of the Advisory Agreements for the
Funds was in the best interest of the Funds and its
shareholders/interestholders. Accordingly, the Boards unanimously approved the
continuation of the Advisory Agreements for an additional one-year period.
221
WELLS FARGO ADVANTAGE ALLOCATION FUNDS LIST OF ABBREVIATIONS
- --------------------------------------------------------------------------------
The following is a list of common abbreviations for terms and entities which may
have appeared in this report.
ABAG -- Association of Bay Area Governments
ADR -- American Depository Receipts
AMBAC -- American Municipal Bond Assurance Corporation
AMT -- Alternative Minimum Tax
ARM -- Adjustable Rate Mortgages
BART -- Bay Area Rapid Transit
CDA -- Community Development Authority
CDSC -- Contingent Deferred Sales Charge
CGIC -- Capital Guaranty Insurance Company
CGY -- Capital Guaranty Corporation
CMT -- Constant Maturity Treasury
COFI -- Cost of Funds Index
Connie Lee -- Connie Lee Insurance Company
COP -- Certificate of Participation
CP -- Commercial Paper
CTF -- Common Trust Fund
DW&P -- Department of Water & Power
DWR -- Department of Water Resources
EDFA -- Education Finance Authority
FFCB -- Federal Farm Credit Bank
FGIC -- Financial Guaranty Insurance Corporation
FHA -- Federal Housing Authority
FHLB -- Federal Home Loan Bank
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
FRN -- Floating Rate Notes
FSA -- Financial Security Assurance, Inc
GDR -- Global Depository Receipt
GNMA -- Government National Mortgage Association
GO -- General Obligation
HFA -- Housing Finance Authority
HFFA -- Health Facilities Financing Authority
IDA -- Industrial Development Authority
IDR -- Industrial Development Revenue
LIBOR -- London Interbank Offered Rate
LLC -- Limited Liability Corporation
LOC -- Letter of Credit
LP -- Limited Partnership
MBIA -- Municipal Bond Insurance Association
MFHR -- Multi-Family Housing Revenue
MUD -- Municipal Utility District
MTN -- Medium Term Note
PCFA -- Pollution Control Finance Authority
PCR -- Pollution Control Revenue
PFA -- Public Finance Authority
PLC -- Private Placement
PSFG -- Public School Fund Guaranty
RDA -- Redevelopment Authority
RDFA -- Redevelopment Finance Authority
REITS -- Real Estate Investment Trusts
R&D -- Research & Development
SFHR -- Single Family Housing Revenue
SFMR -- Single Family Mortgage Revenue
SLMA -- Student Loan Marketing Association
STEERS -- Structured Enhanced Return Trust
TBA -- To Be Announced
TRAN -- Tax Revenue Anticipation Notes
USD -- Unified School District
V/R -- Variable Rate
WEBS -- World Equity Benchmark Shares
XLCA -- XL Capital Assurance
222
[LOGO]
WELLS ADVANTAGE
FARGO FUNDS
More information about WELLS FARGO This report and the financial statements
ADVANTAGE FUNDS SM is available free contained herein are submitted for the
upon request. To obtain literature, general information of the shareholders
please write, e-mail, visit the of WELLS FARGO ADVANTAGE FUNDS. If this
Funds' Web site, or call: report is used for promotional purposes,
distribution of the report must be
WELLS FARGO ADVANTAGE FUNDS accompanied or preceded by a current
P.O. Box 8266 prospectus. For a prospectus containing
Boston, MA 02266-8266 more complete information, including
charges and expenses, call
E-mail: wfaf@wellsfargo.com 1-800-222-8222 or visit the Fund's Web
Web site: site at
www.wellsfargo.com/advantagefunds www.wellsfargo.com/advantagefunds.
Retail Investment Professionals: Please consider the investment
1-888-877-9275 objective, risks, charges, and expenses
Institutional Investment of the investment carefully before
Professionals: 1-866-765-0778 investing. This and other information
about WELLS FARGO ADVANTAGE FUNDS can be
found in the current prospectus. Read
the prospectus carefully before you
invest or send money.
Wells Fargo Funds Management, LLC, a
wholly owned subsidiary of Wells Fargo &
Company, provides investment advisory
and administrative services for WELLS
FARGO ADVANTAGE FUNDS. Other affiliates
of Wells Fargo & Company provide sub-
advisory and other services for the
Funds. The Funds are distributed by
WELLS FARGO FUNDS DISTRIBUTOR, LLC,
Member NASD/SIPC, an affiliate of Wells
Fargo & Company.
-------------------------------------------------------
NOT FDIC INSURED o NO BANK GUARANTEE o MAY LOSE VALUE
-------------------------------------------------------
- --------------------------------------------------------------------------------
(C) 2006 Wells Fargo | www.wellsfargo.com/advantagefunds | RT056261 05-31
Advantage Funds, LLC. | | SAAFLD/SAR110 03/06
All rights reserved. | |
[LOGO]
WELLS ADVANTAGE
FARGO FUNDS
- --------------------------------------------------------------------------------
MARCH 31, 2006
- --------------------------------------------------------------------------------
Semi-Annual Report
[PHOTO OMITTED]
- --------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE BALANCED FUND
WELLS FARGO ADVANTAGE BALANCED FUND
- --------------------------------------------------------------------------------
Table of Contents
Letter to Shareholders .................................................... 1
- --------------------------------------------------------------------------------
Performance Highlights
- --------------------------------------------------------------------------------
Balanced Fund .......................................................... 2
- --------------------------------------------------------------------------------
Fund Expenses (Unaudited) ................................................. 4
- --------------------------------------------------------------------------------
Portfolio of Investments
- --------------------------------------------------------------------------------
Balanced Fund .......................................................... 5
- --------------------------------------------------------------------------------
Financial Statements
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities .................................... 16
Statement of Operations ................................................ 17
Statements of Changes in Net Assets .................................... 18
Financial Highlights ................................................... 20
- --------------------------------------------------------------------------------
Notes to Financial Statements ............................................. 22
- --------------------------------------------------------------------------------
Other Information (Unaudited) ............................................. 27
- --------------------------------------------------------------------------------
List of Abbreviations ..................................................... 33
- --------------------------------------------------------------------------------
-------------------------------------------------
NOT FDIC INSURED-NO BANK GUARANTEE-MAY LOSE VALUE
-------------------------------------------------
THIS PAGE IS INTENTIONALLY LEFT BLANK --
LETTER TO SHAREHOLDERS WELLS FARGO ADVANTAGE BALANCED FUND
- --------------------------------------------------------------------------------
DEAR VALUED SHAREHOLDER,
Enclosed please find the WELLS FARGO ADVANTAGE BALANCED FUND semi-annual
report for the six-month period that ended March 31, 2006. On the following
pages, you will find a discussion of the Fund that includes performance
highlights, changes to the Fund, and the managers' strategic outlook. You will
also find facts and figures about the Fund.
ECONOMIC OVERVIEW
- --------------------------------------------------------------------------------
The U.S. economy continued to show signs of strength, even though real
Gross Domestic Product (GDP) grew at a rate of only 1.7% for the fourth quarter
of 2005. Volatile energy prices led to subpar performance for the sector during
the six-month period, but overall stock market performance was solid with the
S&P 500 Index reporting gains in excess of 6%. Financials and industrials were
leaders among the different sectors.
During the first quarter of 2006, economic growth gained momentum with
preliminary estimates pegging GDP growth at a rate of 5%. The strong growth came
despite continued interest rate hikes by the Federal Reserve Board (the Fed).
The Federal funds rate as of the end of March stood at 4.75%. Mortgage interest
rates inched upward by about half a percentage point by the close of the first
quarter of 2006. Data on mortgage applications, the number of homes listed for
sale, and median sale prices confirmed that the housing market had lost some of
its impetus. Sluggish housing sales were seen in the condominium markets and in
regions that experienced rapid price appreciation. Sales of single-family homes
held up well, but speculative demand for housing has definitely cooled.
STOCKS REMAIN INCONSISTENT
- --------------------------------------------------------------------------------
Strong corporate earnings helped the equity markets in the fourth quarter
of 2005 while record prices for crude oil and concerns of a slowdown in
worldwide economic growth capped and often reversed rallies. Nevertheless, in
the United States, the fundamentals of strong earnings and low inflation kept
the equity markets steady overall in 2005.
During the first month of 2006, equity markets surged higher as
speculation surfaced that the Fed might stop raising interest rates and move to
a more neutral interest rate environment. Almost all domestic and international
indices reported positive numbers for January. While many of the same indices
saw a decline in performance for February, some stayed in positive territory.
In March, almost every equity market index moved higher to produce the
best first-quarter results for the S&P 500 Index and the Dow Jones Industrial
Average since 1999 and 2002, respectively. The NASDAQ ended the first quarter of
2006 at a five-year high. International markets remained strong and continued to
lead most domestic markets.
BONDS BATTLE RISING INTEREST RATES
- --------------------------------------------------------------------------------
Yields on most U.S. Treasury notes and bonds declined as the Federal funds
rate continued to increase during the fourth quarter of 2005 and into 2006.
During the reporting period, the high-yield and investment-grade segments of the
corporate bond market had positive performance in light of the rising interest
rate environment of 2005. Treasury bills and two-year Treasury notes reported
postive returns for the first quarter of 2006, while long-term Treasury bonds
and Treasury Inflation Protected Securities (TIPS) reported negative returns. By
the end of March, the high-yield and short-duration sectors of the bond market
were the only ones that reported positive returns.
LOOKING AHEAD
- --------------------------------------------------------------------------------
Even though equities enjoyed a first-quarter rally in 2006, high energy
prices and rising interest rates may eventually slow investor enthusiasm for
stocks. We may see long-term interest rates move higher, though their increases
could be restrained if inflation remains steady and investor confidence does not
falter. While a stronger world economy may be good for stocks, the same
expansion might mean less foreign demand for U.S. bonds. These are just a few of
the reasons we believe successful investing includes taking a balanced approach
by maintaining a portfolio that is diversified among stocks and bonds and by
keeping a long-term perspective. While diversification may not prevent losses in
a downturn, it may help reduce them and keep you on track to reach your
financial goals. To help you reach your diversification goals, we offer funds
across every key category, each guided by skillful, independent money
managers--our subadvisers--chosen for their focused attention to a particular
investment style. We believe that our insistence on seeking outstanding money
managers who share our dedication to pursuing consistent, long-term results
offers our investors the firm footing they need to navigate changing market
conditions as they move forward to their financial destinations.
Thank you for choosing WELLS FARGO ADVANTAGE FUNDS(SM)--we appreciate your
confidence in us. If you have any questions about your investment, please
contact your investment professional, or call us at 1-800-222-8222. You may also
visit our Web site at www.wellsfargo.com/advantagefunds.
Sincerely,
/s/ Karla M. Rabusch
Karla M. Rabusch
President
WELLS FARGO ADVANTAGE FUNDS
1
WELLS FARGO ADVANTAGE BALANCED FUND PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The WELLS FARGO ADVANTAGE BALANCED FUND (the Fund) seeks a combination of
capital appreciation and current income.
ADVISER SUBADVISER
Wells Fargo Funds Management, LLC Wells Capital Management Incorporated
FUND MANAGERS FUND INCEPTION DATE
Gary J. Dunn, CFA 12/30/1981
W. Frank Koster
David L. Roberts, CFA
Robert M. Thornburg
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Investor Class shares returned 2.50% 1 for the six-month
period that ended March 31, 2006, underperforming the S&P 500 Index 2, which
returned 6.38%, and outperforming the Lehman Brothers Aggregate Bond Index 3,
which returned (0.06%), and underperforming the Balanced Fund Composite Index 4,
which returned 3.79%, during the same period.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED. CURRENT
MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB
SITE-WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
INVESTOR CLASS SHARES ARE SOLD WITHOUT A FRONT-END SALES CHARGE OR
CONTINGENT DEFERRED SALES CHARGE. OTHER FEES AND EXPENSES APPLY TO AN INVESTMENT
IN THE FUND AND ARE DESCRIBED IN THE FUND'S CURRENT PROSPECTUS.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
The equity portion of the Fund gave back some of its relative performance
after outperforming the S&P 500 Index in 2005. For the six-month period, the 60%
equity portion of the Fund posted a return of 5.2%, a little more than one
percentage point behind the S&P 500 Index's 6.4% for the same period. Energy
stocks hindered Fund performance and several large-cap health care stocks such
as Amgen, Johnson & Johnson, and Medtronic all declined on lowered earnings
expectations.
Several sectors reported strong performance, including financials,
industrials, and materials. Financial companies with good exposure to the
capital markets did well, and Goldman Sachs, JPMorgan Chase, and Morgan Stanley
all had returns close to 20%. Business spending appeared to be accelerating, and
the earnings outlook improved for many related companies, including Air Products
& Chemicals, Rohm & Haas, Emerson Electric, and Honeywell. Technology holdings
within the Fund also had solid returns, led by Cisco Systems, Hewlett-Packard,
Nokia, and Qualcomm.
The fixed-income portion of the Fund outperformed the Lehman Brothers
Aggregate Bond Index and underperformed the Balanced Fund Composite Index during
the period. Two primary contributors to the outperformance were the short
duration bias of the portfolio and the Fund's exposure to a continued flattening
of the yield curve. The Fund's exposure to Ford and GM debt detracted from
performance during the period, though most of the underperformance was contained
to the last half of 2005. Although both companies continued to face considerable
challenges, their bonds have rebounded somewhat since the beginning of 2006, and
we believe that they will continue to represent reasonable value.
WHAT CHANGES DID YOU MAKE TO THE FUND'S HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
Several new companies were added to the equity portion of the Fund's
portfolio. Boston Scientific was added in the health care sector and offered
long-term investment appeal as the company completes the Guidant acquisition.
The number-one food service distributor, Sysco Corp., was added in the consumer
staples sector because the stock suffered from what we believe is a temporary
stall in earnings and valuations were attractive. In the technology sector, a
new position was initiated in Qualcomm, a major wireless telecommunications
products developer and supplier. Sprint Nextel was added in the
telecommunications services sector and offered exposure to a top-tier wireless
service provider. Finally, a small position was initiated in FirstEnergy, a
leading electric utility provider that services Ohio, Pennsylvania, and New
Jersey.
During the past few months, we bought back some of the portfolio's
short-duration fixed-income holdings and reduced the Fund's exposure to the flat
yield curve. With the Federal funds rate approximately 4% higher than two years
ago and the ten-year Treasury yield approximately 2% higher, we felt it prudent
to convert a portion of the Fund's fixed-income holdings to cash.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
In general, we believe that the robust economic growth in the first
quarter of 2006 may give way to a more reasonable 3% to 3.5% pace for the full
year if interest rate hikes cool. Consumer spending may soften with business
spending poised to pick up some of the slack. We believe the equity portion of
the Fund is positioned to take advantage of both the higher interest rate
environment and increases in corporate and business spending. Larger
capitalization, high-quality stocks have underperformed their respective
counterparts during the past several years, a trend we do not expect to
continue. We believe that the combined attractive valuation of the Fund's equity
holdings and solid expected long-term earnings growth will help to position the
portfolio well for the coming year. If economic growth slows in the second half
of 2006, we believe the Fund's holdings with potential earnings growth will do
well.
On the fixed-income side, we have believed for some time that the economic
expansion would continue and that the Federal Reserve Board (the Fed) would stay
with its monetary tightening policy. In support of this view, we have seen the
Federal funds rate move a full percentage point higher than it was in September
2005, and we anticipate that the rate will hit 5% at the Fed's next meeting. Not
knowing for sure if the Fed will continue to raise interest rates beyond the
anticipated 5%, we have moved the fixed-income portion of the Fund to a more
neutral position.
BALANCED FUNDS MAY INVEST IN STOCKS AND BONDS. STOCKS SHOULD ONLY BE
CONSIDERED FOR LONG-TERM GOALS AS VALUES FLUCTUATE IN RESPONSE TO THE ACTIVITIES
OF INDIVIDUAL COMPANIES AND GENERAL MARKET AND ECONOMIC CONDITIONS. BOND VALUES
FLUCTUATE IN RESPONSE TO THE FINANCIAL CONDITION OF INDIVIDUAL ISSUERS, GENERAL
MARKET AND ECONOMIC CONDITIONS, AND CHANGES IN INTEREST RATES. IN GENERAL, WHEN
INTEREST RATES RISE, BOND VALUES FALL AND INVESTORS MAY LOSE PRINCIPAL VALUE.
INVESTMENT STRATEGIES THAT EMPHASIZE PARTICULAR MARKET SEGMENTS OR FEWER
SECURITIES TEND TO INCREASE THE TOTAL RISK OF AN INVESTMENT (RELATIVE TO THE
BROADER MARKET). THIS FUND IS EXPOSED TO FOREIGN INVESTMENTS RISK AND HIGH YIELD
BOND RISK. CONSULT THE FUND'S PROSPECTUS FOR ADDITIONAL INFORMATION ON THESE AND
OTHER RISKS.
2
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE BALANCED FUND
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
6-Month* 1-Year 5-Year 10-Year
- --------------------------------------------------------------------------------------------------
Balanced Fund - Investor Class (Incept. Date 12/30/1981) 2.50 5.91 2.20 5.50
- --------------------------------------------------------------------------------------------------
Benchmarks
- --------------------------------------------------------------------------------------------------
S&P 500 Index 2 6.38 11.72 3.97 8.95
- --------------------------------------------------------------------------------------------------
Lehman Brothers Aggregate Bond Index 3 (0.06) 2.26 5.11 6.29
- --------------------------------------------------------------------------------------------------
Balanced Fund Composite Index 4 3.79 7.92 4.74 8.23
- --------------------------------------------------------------------------------------------------
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FUND CHARACTERISTICS 5 (AS OF MARCH 31, 2006)
- -----------------------------------------------------------------------
Beta** 0.63
- -----------------------------------------------------------------------
Average Coupon of Bond Portfolio 5.49%
- -----------------------------------------------------------------------
Average Duration of Bond Portfolio 3.36 years
- -----------------------------------------------------------------------
Average Credit Quality of Bond Portfolio Aa1
- -----------------------------------------------------------------------
Portfolio Turnover*** 33%
- -----------------------------------------------------------------------
** A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE S&P 500 INDEX
BETA IS 1.00 BY DEFINITION.
*** THIS MEASURE IS BASED ON SIX MONTHS OF THE FUND'S ACTIVITY.
TEN LARGEST HOLDINGS 5,6 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
U.S. Treasury Note, 4.25%, 10/15/2010 3.75%
- --------------------------------------------------------------------------------
General Electric Company 2.26%
- --------------------------------------------------------------------------------
Microsoft Corporation 2.09%
- --------------------------------------------------------------------------------
Exxon Mobil Corporation 1.95%
- --------------------------------------------------------------------------------
Citigroup Incorporated 1.75%
- --------------------------------------------------------------------------------
JP Morgan Chase & Company 1.69%
- --------------------------------------------------------------------------------
US Treasury Bond, 10.38%, 11/15/2012 1.60%
- --------------------------------------------------------------------------------
Procter & Gamble Company 1.56%
- --------------------------------------------------------------------------------
Bank of America Corporation 1.50%
- --------------------------------------------------------------------------------
ConocoPhillips 1.36%
- --------------------------------------------------------------------------------
SECTOR DISTRIBUTION 5 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Materials 2%
Telecommunications Services 2%
Utilities 2%
International 15%
Consumer Discretionary 10%
Consumer Staples 5%
Energy 6%
Financials 18%
Health Care 11%
Industrials 11%
Information Technology 18%
GROWTH OF $10,000 CHART 7 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
WELLS FARGO ADVANTAGE
BALANCED FUND-Investor Lehman Brothers Balanced Fund
Class S&P 500 Index Aggregate Bond Index Composite Index
3/31/1996 10000 10000 10000 $10,000
4/30/1996 10254 10147 9944 $10,066
5/31/1996 10309 10408 9924 $10,213
6/30/1996 10195 10447 10057 $10,291
7/31/1996 9837 9986 10084 $10,030
8/31/1996 10093 10196 10067 $10,150
9/30/1996 10411 10769 10242 $10,564
10/31/1996 10395 11067 10470 $10,832
11/30/1996 10860 11902 10649 $11,397
12/31/1996 10950 11666 10550 $11,219
1/31/1997 11170 12396 10582 $11,653
2/28/1997 11198 12492 10609 $11,720
3/31/1997 10890 11980 10491 $11,379
4/30/1997 11050 12694 10648 $11,855
5/31/1997 11494 13466 10750 $12,332
6/30/1997 11771 14069 10877 $12,722
7/31/1997 12471 15188 11171 $13,466
8/31/1997 12155 14337 11076 $12,968
9/30/1997 12712 15121 11239 $13,471
10/31/1997 12406 14616 11402 $13,279
11/30/1997 12556 15293 11454 $13,672
12/31/1997 12775 15556 11570 $13,868
1/31/1998 12833 15727 11718 $14,031
2/28/1998 13477 16861 11709 $14,634
3/31/1998 14002 17724 11749 $15,103
4/30/1998 14092 17905 11810 $15,226
5/31/1998 13995 17597 11922 $15,127
6/30/1998 14566 18312 12023 $15,546
7/31/1998 14690 18118 12049 $15,461
8/31/1998 12892 15500 12245 $14,221
9/30/1998 13371 16493 12531 $14,901
10/31/1998 13863 17834 12465 $15,596
11/30/1998 14637 18915 12536 $16,199
12/31/1998 15502 20004 12574 $16,778
1/31/1999 16004 20840 12663 $17,247
2/28/1999 15654 20192 12441 $16,805
3/31/1999 16209 21000 12510 $17,245
4/30/1999 16534 21813 12550 $17,668
5/31/1999 16103 21298 12439 $17,356
6/30/1999 16684 22480 12400 $17,911
7/31/1999 16356 21778 12348 $17,546
8/31/1999 16135 21670 12341 $17,490
9/30/1999 16062 21076 12485 $17,284
10/31/1999 16811 22410 12531 $17,965
11/30/1999 17094 22865 12529 $18,184
12/31/1999 17905 24212 12469 $18,791
1/31/2000 17274 22997 12428 $18,200
2/29/2000 17765 22562 12579 $18,082
3/31/2000 18642 24769 12745 $19,237
4/30/2000 18099 24023 12708 $18,868
5/31/2000 17619 23531 12701 $18,633
6/30/2000 17946 24112 12965 $19,064
7/31/2000 17740 23736 13083 $18,954
8/31/2000 18501 25210 13273 $19,770
9/30/2000 18128 23879 13357 $19,194
10/31/2000 17762 23778 13445 $19,196
11/30/2000 16543 21905 13665 $18,414
12/31/2000 16767 22012 13920 $18,605
1/31/2001 17105 22793 14148 $19,122
2/28/2001 15983 20717 14271 $18,144
3/31/2001 15323 19405 14342 $17,491
4/30/2001 15857 20911 14282 $18,277
5/31/2001 15919 21051 14368 $18,394
6/30/2001 15611 20540 14422 $18,154
7/31/2001 15509 20339 14745 $18,209
8/31/2001 14902 19067 14915 $17,609
9/30/2001 14149 17529 15090 $16,838
10/31/2001 14337 17863 15405 $17,171
11/30/2001 14990 19234 15192 $17,867
12/31/2001 14918 19403 15095 $17,915
1/31/2002 14759 19120 15217 $17,817
2/28/2002 14593 18751 15365 $17,680
3/31/2002 14802 19456 15110 $17,961
4/30/2002 14348 18277 15403 $17,447
5/31/2002 14236 18143 15534 $17,430
6/30/2002 13627 16851 15668 $16,745
7/31/2002 13089 15539 15857 $16,043
8/31/2002 13137 15640 16125 $16,214
9/30/2002 12477 13941 16386 $15,263
10/31/2002 13067 15167 16311 $16,041
11/30/2002 13478 16058 16306 $16,605
12/31/2002 13031 15116 16644 $16,157
1/31/2003 12796 14721 16659 $15,909
2/28/2003 12706 14500 16888 $15,854
3/31/2003 12791 14640 16875 $15,940
4/30/2003 13483 15846 17015 $16,781
5/31/2003 13979 16679 17332 $17,436
6/30/2003 14086 16893 17297 $17,556
7/31/2003 14110 17190 16716 $17,506
8/31/2003 14298 17525 16826 $17,757
9/30/2003 14229 17340 17271 $17,832
10/31/2003 14745 18319 17110 $18,370
11/30/2003 14818 18481 17151 $18,485
12/31/2003 15293 19449 17326 $19,141
1/31/2004 15449 19807 17465 $19,413
2/29/2004 15613 20082 17654 $19,659
3/31/2004 15512 19779 17787 $19,540
4/30/2004 15166 19468 17324 $19,153
5/31/2004 15315 19735 17255 $19,280
6/30/2004 15521 20118 17353 $19,548
7/31/2004 15175 19452 17525 $19,238
8/31/2004 15274 19530 17860 $19,431
9/30/2004 15447 19741 17908 $19,578
10/31/2004 15646 20043 18058 $19,823
11/30/2004 16118 20855 17914 $20,241
12/31/2004 16342 21564 18079 $20,729
1/31/2005 16067 21037 18193 $20,478
2/28/2005 16325 21479 18085 $20,688
3/31/2005 16132 21099 17993 $20,426
4/30/2005 15999 20698 18236 $20,304
5/31/2005 16283 21356 18433 $20,779
6/30/2005 16324 21386 18534 $20,842
7/31/2005 16626 22182 18366 $21,231
8/31/2005 16626 21980 18601 $21,224
9/30/2005 16668 22158 18409 $21,240
10/31/2005 16491 21788 18264 $20,960
11/30/2005 16820 22612 18344 $21,472
12/31/2005 16818 22621 18518 $21,558
1/31/2006 16920 23220 18520 $21,901
2/28/2006 17013 23283 18581 $21,966
3/31/2006 17086 23571 18399 $22,044
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2006, and are those of the Fund's
managers. The views are subject to change at any time in response to changing
circumstances in the market and are not intended to predict or guarantee the
future performance of any individual security, market sector or the markets
generally, or the WELLS FARGO ADVANTAGE BALANCED FUND.
1 The Fund's adviser has committed through April 30, 2007, to waive fees and/or
reimburse expenses to the extent necessary to maintain a certain net operating
expense ratio for the Fund. Actual reductions of operating expenses can increase
total return to shareholders. Without these reductions, the Fund's returns would
have been lower.
Performance shown for the Investor Class shares of the WELLS FARGO
ADVANTAGE BALANCED FUND for periods prior to April 11, 2005, reflects the
performance of the Investor Class shares of the Strong Balanced Fund, its
predecessor fund.
2 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.
3 The Lehman Brothers Aggregate Bond Index is composed of the Lehman Brothers
Government/Corporate Index and the 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 Balanced Fund Composite Index is weighted 60% in the S&P 500 Index and 40%
in the Lehman Brothers Aggregate Bond Index.
5 Fund characteristics, portfolio holdings and sector distribution are subject
to change. Cash and cash equivalents are not reflected in the calculations of
fund characteristics, portfolio holdings and sector distribution.
6 The Ten Largest Holdings are calculated based on the market value of the
securities divided by total market value of the Fund.
7 The chart compares the performance of the WELLS FARGO ADVANTAGE BALANCED FUND
Investor Class shares for the most recent ten years with the S&P 500 Index, the
Lehman Brothers Aggregate Bond Index and the Balanced Fund Composite Index. The
chart assumes a hypothetical $10,000 investment in Investor Class shares and
reflects all operating expenses.
3
WELLS FARGO ADVANTAGE BALANCED FUND FUND EXPENSES (UNAUDITED)
- --------------------------------------------------------------------------------
As a shareholder of the Fund, you incur two types of costs: (1)
transaction costs, including sales charges (loads) on purchase payments,
redemption fees (if any) and exchange fees (if any); and (2) ongoing costs,
including management fees; distribution [and/or service] (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 period and held for the entire period (October 1, 2005 to March 31,
2006).
ACTUAL EXPENSES
The "Actual" line of the table below provides information about actual
account values and actual expenses. You may use the information in this line,
together with the amount you invested, to estimate the expenses that you paid
over the period. Simply divide your account value by $1,000 (for example, an
$8,600 account value divided by $1,000 = 8.6), then multiply the result by the
number in the "Actual" line under the heading entitled "Expenses Paid During
Period" for your applicable class of shares to estimate the expenses you paid on
your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The "Hypothetical" line of the table below provides information about
hypothetical account values and hypothetical expenses based on the Fund's actual
expense ratio and an assumed rate of return of 5% per year before expenses,
which is not the Fund's actual return. The hypothetical account values and
expenses may not be used to estimate the actual ending account balance or
expenses you paid for the period. You may use this information to compare the
ongoing costs of investing in the Fund and other funds. To do so, compare this
5% hypothetical example with the 5% hypothetical examples that appear in the
shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight
your ongoing costs only and do not reflect any transactional costs, such as
sales charges (loads), redemption fees, or exchange fees. Therefore, the
"Hypothetical" line of the table is useful in comparing ongoing costs only, and
will not help you determine the relative total costs of owning different funds.
In addition, if these transactional costs were included, your costs would have
been higher.
Beginning Ending
Account Account Expenses Net Annual
Value Value Paid During Expense
10/01/2005 03/31/2006 Period(1) Ratio
Balanced Fund
- ------------------------------------------------------------------------------------------------
Balanced Fund - Investor Class
Actual $1,000.00 $1,025.00 $6.31 1.25%
- ------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,018.70 $6.29 1.25%
(1) Expenses are equal to the Fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by the number of days in the
most recent fiscal half-year divided by the number of days in the fiscal year
(to reflect the one-half year period).
4
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE BALANCED FUND
- --------------------------------------------------------------------------------
BALANCED FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
AGENCY NOTES - INTEREST BEARING - 0.24%
$ 330,000 FHLB 4.13% 10/19/2007 $ 325,244
TOTAL AGENCY NOTES - INTEREST BEARING (COST $329,924) 325,244
--------------
AGENCY SECURITIES - 6.86%
FEDERAL FARM CREDIT BANK - 0.69%
974,000 FEDERAL FARM CREDIT BANK<< 4.13 07/17/2009 944,148
--------------
FEDERAL HOME LOAN MORTGAGE CORPORATION - 1.87%
1,978 FHLMC #170151 10.50 01/01/2016 2,203
855,000 FHLMC #1J1263+/- 5.97 01/01/2036 864,115
10,695 FHLMC #254325 10.25 03/01/2015 11,383
185,624 FHLMC #G11487 8.00 03/01/2016 196,730
711,899 FHLMC #G18005<< 5.00 08/01/2019 694,468
775,000 FHLMC #H01396+/- 6.50 02/01/2036 784,808
2,553,707
--------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 3.55%
572,466 FNMA #695049 5.50 03/01/2033 559,911
893,347 FNMA #699932 5.50 04/01/2033 873,755
357,328 FNMA #725638<< 5.00 12/01/2018 349,076
938,215 FNMA #735613 6.00 02/01/2035 939,466
841,815 FNMA #828434<< 5.50 06/01/2020 836,962
1,294,100 FNMA #863727<<+/- 5.35 01/01/2036 1,282,485
4,841,655
--------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 0.75%
43,741 GNMA #780434 7.50 12/15/2007 43,902
989,312 GNMA SERIES 2004-53 CLASS KE 5.00 08/20/2032 971,561
1,015,463
--------------
TOTAL AGENCY SECURITIES (COST $9,489,576) 9,354,973
--------------
ASSET BACKED SECURITIES - 3.10%
935,000 CAPITAL AUTO RECEIVABLES ASSET TRUST SERIES 2006-1 CLASS A2A 5.03 09/15/2008 933,572
1,268,876 COMMUNITY PROGRAM LOAN TRUST SERIES 1987-A CLASS A4 4.50 10/01/2018 1,242,658
163,812 COUNTRYWIDE HOME EQUITY LOAN TRUST SERIES 2002-C CLASS A+/- 4.99 05/15/2028 163,910
373,837 COUNTRYWIDE HOME EQUITY LOAN TRUST SERIES 2004-I CLASS A+/- 5.04 02/15/2034 374,837
228,471 COUNTRYWIDE HOME EQUITY LOAN TRUST SERIES 2004-Q CLASS 2A+/- 5.05 12/15/2033 228,971
279,024 FORD CREDIT AUTO OWNER TRUST SERIES 2005-A CLASS A2 3.08 07/15/2007 278,450
805,000 FORD CREDIT AUTO OWNER TRUST SERIES 2006-A CLASS A2A 5.04 09/15/2008 803,874
191,581 TERWIN MORTGAGE TRUST SERIES 2004-21HE CLASS 1A1+/- 5.30 12/25/2034 191,953
TOTAL ASSET BACKED SECURITIES (COST $4,245,556) 4,218,225
--------------
COLLATERALIZED MORTGAGE OBLIGATIONS - 7.38%
64,118 ASSET SECURITIZATION CORPORATION SERIES 1995-MD4 CLASS A1 7.10 08/13/2029 64,959
458,053 BANC OF AMERICA ALTERNATIVE LOAN TRUST SERIES 2005-10 CLASS 6A1 5.50 11/25/2020 452,757
741,963 CHASE MORTGAGE FINANCE CORPORATION SERIES 2005-A1 CLASS 2A2+/- 5.26 12/25/2035 734,766
235,484 CITIGROUP MORTGAGE LOAN TRUST INCORPORATED SERIES 2004-HYB4
CLASS AA+/- 5.15 12/25/2034 235,753
748,795 COUNTRYWIDE ALTERNATIVE LOAN TRUST SERIES 2004-30CB CLASS 3A1 5.00 02/25/2020 727,074
1,000,000 CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORPORATION
SERIES 2005-C1 CLASS A3 4.81 02/15/2038 967,347
689,009 FANNIE MAE SERIES 2003-W8 CLASS 4A+/- 5.11 11/25/2042 693,596
5
WELLS FARGO ADVANTAGE BALANCED FUND
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
BALANCED FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERALIZED MORTGAGE OBLIGATIONS (CONTINUED)
$ 683,545 FANNIE MAE WHOLE LOAN SERIES 2004-W15 CLASS 3A+/- 5.10% 06/25/2044 $ 695,187
278,788 FHLMC STRUCTURED PASS-THROUGH SECURITIES SERIES T-57
CLASS 2A1+/- 5.02 07/25/2043 288,526
320,140 FHLMC STRUCTURED PASS-THROUGH SECURITIES SERIES T-59
CLASS 2A1+/- 5.12 10/25/2043 329,941
381,941 FNMA GRANTOR TRUST SERIES 2002-T1 CLASS A4 9.50 11/25/2031 403,497
439,273 FNMA WHOLE LOAN SERIES 2003-W8 CLASS 1A3 4.75 12/25/2042 434,481
1,185,000 GE CAPITAL COMMERCIAL MORTGAGE CORPORATION SERIES 2005-C1
CLASS A5+/- 4.77 06/10/2048 1,120,291
577,000 GS MORTGAGE SECURITIES CORPORATION II SERIES 2006-GG6
CLASS A4+/- 5.55 04/10/2038 575,340
584,000 JP MORGAN CHASE COMMERCIAL MORTGAGE SECURITIES CORPORATION
SERIES 2005-LDP1 CLASS A4+/- 5.04 03/15/2046 561,694
345,878 JP MORGAN MORTGAGE TRUST SERIES 2005-A2 CLASS 3A1+/- 4.92 04/25/2035 341,845
336,597 JP MORGAN MORTGAGE TRUST SERIES 2005-A3 CLASS 7CA1+/- 5.14 06/25/2035 332,201
560,853 JP MORGAN MORTGAGE TRUST SERIES 2005-A5 CLASS 3A1+/- 5.37 08/25/2035 556,767
379,807 MSAT SERIES 2005-RR4A CLASS A1++ 4.38 11/28/2035 370,319
169,095 NOMURA ASSET ACCEPTANCE CORPORATION SERIES 2005-AP2
CLASS A1+/- 4.94 05/25/2035 169,141
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (COST $10,260,156) 10,055,482
--------------
SHARES
COMMON STOCKS - 59.36%
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS - 0.73%
23,600 HOME DEPOT INCORPORATED 998,280
--------------
BUSINESS SERVICES - 2.38%
9,400 AUTOMATIC DATA PROCESSING INCORPORATED 429,392
103,400 MICROSOFT CORPORATION 2,813,514
3,242,906
--------------
CHEMICALS & ALLIED PRODUCTS - 7.53%
21,500 ABBOTT LABORATORIES 913,105
13,500 AIR PRODUCTS & CHEMICALS INCORPORATED 907,065
10,300 AMGEN INCORPORATED+ 749,325
15,000 COLGATE-PALMOLIVE COMPANY 856,500
17,000 E.I. DU PONT DE NEMOURS & COMPANY 717,570
14,500 ELI LILLY & COMPANY 801,850
53,200 PFIZER INCORPORATED 1,325,744
36,400 PROCTER & GAMBLE COMPANY 2,097,368
17,900 ROHM & HAAS COMPANY 874,773
21,000 WYETH 1,018,920
10,262,220
--------------
COMMUNICATIONS - 1.96%
8,800 ALLTEL CORPORATION 569,800
32,500 AT&T INCORPORATED<< 878,800
18,400 SPRINT NEXTEL CORPORATION 475,456
22,000 VERIZON COMMUNICATIONS INCORPORATED 749,320
2,673,376
--------------
DEPOSITORY INSTITUTIONS - 6.94%
44,300 BANK OF AMERICA CORPORATION 2,017,422
49,900 CITIGROUP INCORPORATED 2,357,276
6
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE BALANCED FUND
- --------------------------------------------------------------------------------
BALANCED FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
DEPOSITORY INSTITUTIONS (CONTINUED)
22,800 FIFTH THIRD BANCORP $ 897,408
54,666 JP MORGAN CHASE & COMPANY 2,276,292
31,700 US BANCORP 966,850
16,900 WACHOVIA CORPORATION 947,245
9,462,493
--------------
EATING & DRINKING PLACES - 0.70%
27,700 MCDONALD'S CORPORATION 951,772
--------------
ELECTRIC, GAS & SANITARY SERVICES - 1.92%
12,000 DOMINION RESOURCES INCORPORATED 828,360
18,400 DUKE ENERGY CORPORATION<< 536,360
19,700 EXELON CORPORATION 1,042,130
4,200 FIRSTENERGY CORPORATION 205,380
2,612,230
--------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 8.32%
68,800 CISCO SYSTEMS INCORPORATED+ 1,490,896
14,000 EMERSON ELECTRIC COMPANY 1,170,820
87,600 GENERAL ELECTRIC COMPANY 3,046,728
58,200 INTEL CORPORATION 1,126,170
54,700 MOTOROLA INCORPORATED 1,253,177
82,000 NOKIA OYJ ADR 1,699,040
13,500 QUALCOMM INCORPORATED 683,235
26,900 TEXAS INSTRUMENTS INCORPORATED 873,443
11,343,509
--------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES - 0.69%
18,400 QUEST DIAGNOSTICS INCORPORATED 943,920
--------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT - 1.26%
21,300 FORTUNE BRANDS INCORPORATED 1,717,419
--------------
FOOD & KINDRED PRODUCTS - 1.68%
29,500 PEPSICO INCORPORATED 1,704,805
14,000 THE COCA-COLA COMPANY 586,180
2,290,985
--------------
GENERAL MERCHANDISE STORES - 1.89%
6,612 FEDERATED DEPARTMENT STORES INCORPORATED 482,676
24,200 TARGET CORPORATION 1,258,642
17,500 WAL-MART STORES INCORPORATED 826,700
2,568,018
--------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 2.73%
10,700 3M COMPANY 809,883
12,700 DELL INCORPORATED+ 377,952
40,700 HEWLETT-PACKARD COMPANY 1,339,030
14,500 INTERNATIONAL BUSINESS MACHINES CORPORATION 1,195,815
3,722,680
--------------
7
WELLS FARGO ADVANTAGE BALANCED FUND
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
BALANCED FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
INSURANCE CARRIERS - 3.88%
16,100 ALLSTATE CORPORATION $ 838,971
23,300 AMERICAN INTERNATIONAL GROUP INCORPORATED 1,539,897
20,100 METLIFE INCORPORATED 972,237
29,300 ST. PAUL TRAVELERS COMPANIES INCORPORATED 1,224,447
12,800 UNITEDHEALTH GROUP INCORPORATED 715,008
5,290,560
--------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL
GOODS - 1.92%
26,600 BAXTER INTERNATIONAL INCORPORATED 1,032,346
35,000 BOSTON SCIENTIFIC CORPORATION+<< 806,750
15,200 MEDTRONIC INCORPORATED 771,400
2,610,496
--------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 1.12%
25,700 JOHNSON & JOHNSON 1,521,954
--------------
MOTION PICTURES - 1.40%
61,500 TIME WARNER INCORPORATED 1,032,585
31,500 WALT DISNEY COMPANY 878,535
1,911,120
--------------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING - 0.73%
12,600 UNITED PARCEL SERVICE INCORPORATED CLASS B 1,000,188
--------------
NON-DEPOSITORY CREDIT INSTITUTIONS - 0.64%
16,600 AMERICAN EXPRESS COMPANY 872,330
--------------
OIL & GAS EXTRACTION - 1.45%
8,400 ANADARKO PETROLEUM CORPORATION 848,484
15,400 HALLIBURTON COMPANY 1,124,508
1,972,992
--------------
PETROLEUM REFINING & RELATED INDUSTRIES - 4.03%
17,900 CHEVRONTEXACO CORPORATION 1,037,663
29,000 CONOCOPHILLIPS 1,831,350
43,100 EXXON MOBIL CORPORATION 2,623,066
5,492,079
--------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 0.21%
5,000 MCGRAW-HILL COMPANIES INCORPORATED 288,100
--------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 1.37%
6,000 GOLDMAN SACHS GROUP INCORPORATED 941,760
14,700 MORGAN STANLEY 923,454
1,865,214
--------------
TOBACCO PRODUCTS - 0.68%
13,100 ALTRIA GROUP INCORPORATED 928,266
--------------
TRANSPORTATION EQUIPMENT - 2.53%
8,000 GENERAL DYNAMICS CORPORATION 511,840
35,100 HONEYWELL INTERNATIONAL INCORPORATED 1,501,227
24,700 UNITED TECHNOLOGIES CORPORATION 1,431,859
3,444,926
--------------
8
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE BALANCED FUND
- --------------------------------------------------------------------------------
BALANCED FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
WHOLESALE TRADE NON-DURABLE GOODS - 0.67%
5,500 NIKE INCORPORATED CLASS B $ 468,050
14,000 SYSCO CORPORATION 448,700
916,750
--------------
TOTAL COMMON STOCKS (COST $71,432,949) 80,904,783
--------------
PRINCIPAL INTEREST RATE MATURITY DATE
CORPORATE BONDS & NOTES - 12.89%
AGRICULTURAL PRODUCTION CROPS - 0.20%
$ 275,000 BUNGE LIMITED FINANCE CORPORATION 4.38% 12/15/2008 267,007
--------------
BUSINESS SERVICES - 0.22%
300,000 NATIONAL RURAL UTILITIES SERIES MTNC 6.50 03/01/2007 303,133
--------------
CHEMICALS & ALLIED PRODUCTS - 0.18%
250,000 TEVA PHARMACEUTICAL FINANCE LLC 5.55 02/01/2016 241,143
--------------
COMMUNICATIONS - 1.78%
150,000 CITIZENS COMMUNICATIONS COMPANY 9.25 05/15/2011 164,625
250,000 COMCAST CORPORATION 5.85 01/15/2010 251,014
220,000 COMCAST CORPORATION 5.45 11/15/2010 217,555
515,000 COX COMMUNICATIONS INCORPORATED 4.63 01/15/2010 493,681
24,000 MOTOROLA INCORPORATED 7.63 11/15/2010 26,177
365,000 NEXTEL COMMUNICATIONS SERIES F 5.95 03/15/2014 361,359
135,000 QWEST CORPORATION 7.63 06/15/2015 144,450
200,000 SBC COMMUNICATIONS 5.10 09/15/2014 189,827
300,000 VERIZON GLOBAL FUNDING CORPORATION 4.38 06/01/2013 275,364
280,000 VODAFONE GROUP PLC 7.75 02/15/2010 300,054
2,424,106
--------------
DEPOSITORY INSTITUTIONS - 1.31%
300,000 JP MORGAN CHASE & COMPANY 6.63 03/15/2012 315,361
545,000 JP MORGAN CHASE & COMPANY 5.13 09/15/2014 523,854
250,000 M&T BANK CORPORATION+++/- 3.85 04/01/2013 242,664
450,000 PNC FUNDING CORPORATION 6.13 02/15/2009 458,157
245,000 WACHOVIA BANK NA 5.60 03/15/2016 242,603
1,782,639
--------------
EATING & DRINKING PLACES - 0.15%
180,000 YUM! BRANDS INCORPORATED 8.88 04/15/2011 202,748
--------------
ELECTRIC, GAS & SANITARY SERVICES - 0.65%
190,000 CAROLINA POWER & LIGHT COMPANY 6.50 07/15/2012 197,988
150,000 FIRSTENERGY CORPORATION SERIES B 6.45 11/15/2011 155,210
175,000 PUBLIC SERVICE COMPANY OF COLORADO 7.88 10/01/2012 197,913
365,000 SOUTHWESTERN ELECTRIC POWER 4.90 07/01/2015 340,439
891,550
--------------
FOOD & KINDRED PRODUCTS - 0.37%
200,000 HJ HEINZ COMPANY++ 6.43 12/01/2008 203,534
305,000 KRAFT FOODS INCORPORATED<< 5.25 10/01/2013 296,998
500,532
--------------
9
WELLS FARGO ADVANTAGE BALANCED FUND
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
BALANCED FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
FOOD STORES - 0.22%
$ 100,000 KROGER COMPANY 6.75% 04/15/2012 $ 104,101
200,000 SAFEWAY INCORPORATED 4.80 07/16/2007 198,246
302,347
--------------
HOLDING & OTHER INVESTMENT OFFICES - 1.91%
235,000 AMERIPRISE FINANCIAL INCORPORATED 5.35 11/15/2010 232,627
908,638 CORE INVESTMENT GRADE TRUST 4.64 11/30/2007 897,734
250,000 CREDIT SUISSE FIRST BOSTON USA INCORPORATED 6.50 01/15/2012 261,083
275,000 GOLDMAN SACHS GROUP INCORPORATED 5.15 01/15/2014 265,137
200,000 MERRILL LYNCH & COMPANY SERIES MTNB<< 4.00 11/15/2007 196,064
500,000 MORGAN STANLEY 5.80 04/01/2007 502,284
250,000 PRINCIPAL LIFE GLOBAL SERIES MTN++ 3.63 04/30/2008 241,532
2,596,461
--------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 0.32%
3,700,000 ALADDIN GAMING/CAPITAL CORPORATION SERIES B^^ 13.50 03/01/2010 4,625
220,000 HARRAH'S OPERATING COMPANY INCORPORATED 5.50 07/01/2010 217,773
220,000 HARRAHS OPERATING COMPANY INCORPORATED 5.75 10/01/2017 208,318
430,716
--------------
INSURANCE CARRIERS - 0.12%
170,000 METLIFE INCORPORATED<< 5.00 06/15/2015 161,795
--------------
METAL MINING - 0.21%
305,000 CODELCO INCORPORATED++ 4.75 10/15/2014 285,404
--------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 0.18%
255,000 FORTUNE BRANDS INCORPORATED 5.13 01/15/2011 249,751
--------------
NATIONAL SECURITY & INTERNATIONAL AFFAIRS - 0.19%
235,000 GOODRICH CORPORATION 7.63 12/15/2012 259,346
--------------
NON-DEPOSITORY CREDIT INSTITUTIONS - 1.90%
195,000 AMERICAN GENERAL FINANCE CORPORATION 4.88 05/15/2010 189,980
210,000 CAPITAL ONE BANK<< 6.50 06/13/2013 218,521
515,000 FORD MOTOR CREDIT COMPANY<< 5.70 01/15/2010 457,023
530,000 GENERAL ELECTRIC CAPITAL CORPORATION SERIES MTN 2.75 09/25/2006 524,221
250,000 GENERAL ELECTRIC CAPITAL CORPORATION SERIES MTNA 6.50 12/10/2007 254,853
370,000 GENERAL MOTORS ACCEPTANCE CORPORATION 6.88 09/15/2011 344,869
190,000 HSBC FINANCE CORPORATION<< 4.75 04/15/2010 184,928
240,000 RESIDENTIAL CAPITAL CORPORATION 6.13 11/21/2008 240,385
180,000 RESIDENTIAL CAPITAL CORPORATION 6.38 06/30/2010 181,335
2,596,115
--------------
OIL & GAS EXTRACTION - 0.46%
200,000 DEVON FINANCING CORPORATION ULC 6.88 09/30/2011 212,045
255,000 HALLIBURTON COMPANY 5.50 10/15/2010 255,602
150,000 PEMEX PROJECT FUNDING MASTER TRUST 7.38 12/15/2014 160,125
627,772
--------------
PETROLEUM REFINING & RELATED INDUSTRIES - 0.14%
175,000 VALERO ENERGY CORPORATION 6.88 04/15/2012 185,415
--------------
10
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE BALANCED FUND
- --------------------------------------------------------------------------------
BALANCED FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
PIPELINES, EXCEPT NATURAL GAS - 0.19%
$ 100,000 CENTERPOINT ENERGY RESOURCES CORPORATION SERIES B 7.88% 04/01/2013 $ 111,407
150,000 PLAINS ALL AMERICAN PIPELINE LP 5.63 12/15/2013 147,710
259,117
--------------
RAILROAD TRANSPORTATION - 0.61%
285,000 BURLINGTON NORTHERN SANTA FE CORPORATION 4.88 01/15/2015 271,561
250,000 NORFOLK SOUTHERN CORPORATION 6.00 04/30/2008 252,904
305,000 UNION PACIFIC CORPORATION 5.75 10/15/2007 306,669
831,134
--------------
REAL ESTATE - 0.56%
350,000 EOP OPERATING LIMITED PARTNERSHIP 6.75 02/15/2012 364,811
400,000 HIGHWOODS REALTY LP 7.00 12/01/2006 402,739
767,550
--------------
REAL ESTATE INVESTMENT TRUSTS (REITS) - 0.37%
285,000 ARCHSTONE-SMITH OPERATIONS TRUST<< 5.25 12/01/2010 280,781
230,000 ISTAR FINANCIAL INCORPORATED 5.80 03/15/2011 228,826
509,607
--------------
TRANSPORTATION EQUIPMENT - 0.37%
100,000 DAIMLERCHRYSLER NORTH AMERICA HOLDING 4.05 06/04/2008 96,900
200,000 DAIMLERCHRYSLER NORTH AMERICA HOLDING 7.75 01/18/2011 214,519
200,000 TEXAS EASTERN TRANSMISSION LIMITED PARTNERSHIP 5.25 07/15/2007 198,857
510,276
--------------
TRANSPORTATION SERVICES - 0.28%
245,000 FEDEX CORPORATION 2.65 04/01/2007 238,166
150,000 TRAVELERS PROPERTY CASUALTY CORPORATION 5.00 03/15/2013 144,139
382,305
--------------
TOTAL CORPORATE BONDS & NOTES (COST $18,880,918) 17,567,969
--------------
FOREIGN CORPORATE BONDS@ - 1.88%
250,000 AMERICA MOVIL SA DE CV 5.50 03/01/2014 239,598
160,000 BSKYB FINANCE UK PLC++ 5.63 10/15/2015 154,208
240,000 DEUTSCHE TELEKOM INTERNATIONAL FINANCE BV 8.00 06/15/2010 261,368
285,000 ENCANA CORPORATION 4.60 08/15/2009 277,752
350,000 FRANCE TELECOM 8.00 03/01/2011 382,239
265,000 GRUPO TELEVISA SA 6.63 03/18/2025 260,033
200,000 HUTCHISON WHAMPOA INTERNATIONAL LIMITED++ 6.25 01/24/2014 202,908
310,000 KFW<< 3.50 03/14/2008 300,762
200,000 NORMANDY FINANCE LIMITED++ 7.63 07/15/2008 208,951
290,000 PCCW-HKT CAPITAL #3 LIMITED++ 5.25 07/20/2015 269,146
TOTAL FOREIGN CORPORATE BONDS (COST $2,583,894) 2,556,965
--------------
FOREIGN GOVERNMENT BONDS@ - 1.14%
500,000 EUROPEAN INVESTMENT BANK 4.63 03/01/2007 498,054
295,000 PENERBANGAN MALAYSIA BOND++ 5.63 03/15/2016 290,648
300,000 REPUBLIC OF ITALY 3.63 09/14/2007 293,770
11
WELLS FARGO ADVANTAGE BALANCED FUND
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
BALANCED FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
FOREIGN GOVERNMENT BONDS (CONTINUED)
$ 280,000 TELECOM ITALIA CAPITAL 4.95% 09/30/2014 $ 257,656
160,000 UNITED MEXICAN STATES 7.50 01/14/2012 172,800
40,000 UNITED MEXICAN STATES<< 5.63 01/15/2017 38,740
TOTAL FOREIGN GOVERNMENT BONDS (COST $1,595,162) 1,551,668
--------------
US TREASURY SECURITIES - 6.57%
US TREASURY BILLS - 0.01%
10,000 US TREASURY BILL^ 4.41 04/27/2006 9,971
--------------
US TREASURY BONDS - 1.58%
1,985,000 US TREASURY BOND<< 10.38 11/15/2012 2,153,026
--------------
US TREASURY NOTES - 4.98%
580,000 US TREASURY NOTE<< 4.38 11/15/2008 573,385
6,130,000 US TREASURY NOTE<< 4.25 10/15/2010 5,986,809
241,000 US TREASURY NOTE<< 4.25 08/15/2015 229,581
6,789,775
--------------
TOTAL US TREASURY SECURITIES (COST $9,213,296) 8,952,772
--------------
COLLATERAL FOR SECURITIES LENDING - 12.47%
SHARES
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.08%
116,688 ATLAS CAPITAL FUNDING LIMITED 116,688
--------------
PRINCIPAL
COLLATERAL INVESTED IN OTHER ASSETS - 12.39%
$ 14,469 ABBEY NATIONAL TREASURY SERVICE 4.69 01/16/2007 14,486
214,706 AMERICAN EXPRESS BANK FSB 4.78 01/26/2007 214,683
10,035 AMERICAN EXPRESS CREDIT CORPORATION 4.92 05/16/2006 10,038
135,358 AMERICAN GENERAL FINANCE CORPORATION 4.78 04/13/2007 135,414
44,225 APRECO LLC 4.77 05/10/2006 44,007
3,972 AQUINAS FUNDING LLC 4.75 05/15/2006 3,950
325,103 ATLANTIC ASSET SECURITIZATION CORPORATION 4.81 04/05/2006 325,018
14,665 ATLAS CAPITAL FUNDING LIMITED 4.72 05/01/2006 14,611
116,688 ATLAS CAPITAL FUNDING LIMITED 4.80 05/08/2006 116,144
57,023 ATLAS CAPITAL FUNDING LIMITED 4.60 05/17/2006 56,690
396,703 ATOMIUM FUNDING CORPORATION 4.79 04/24/2006 395,600
8,280 ATOMIUM FUNDING CORPORATION 4.84 04/27/2006 8,254
88,683 ATOMIUM FUNDING CORPORATION 4.80 05/11/2006 88,234
72,300 ATOMIUM FUNDING CORPORATION 4.91 06/07/2006 71,666
7,001 BANK OF IRELAND (GOVERNOR & COMPANY) 4.84 05/08/2006 6,969
24,738 BEAR STEARNS COMPANY INCORPORATED SERIES MTNB 5.18 06/19/2006 24,752
1,586,960 BEAR STEARNS COMPANY REPURCHASE AGREEMENT
(MATURITY VALUE $1,587,612) 4.93 04/03/2006 1,586,960
466,753 BEAR STEARNS INTERNATIONAL REPURCHASE AGREEMENT
(MATURITY VALUE $466,945) 4.93 04/03/2006 466,753
17,545 BETA FINANCE INCORPORATED SERIES MTN 4.88 06/02/2006 17,548
210,039 BUCKINGHAM CDO LLC 4.82 04/21/2006 209,539
12
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE BALANCED FUND
- --------------------------------------------------------------------------------
BALANCED FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 646,322 BUCKINGHAM CDO LLC 4.83% 04/25/2006 $ 644,441
100,688 BUCKINGHAM II CDO LLC 4.78 04/05/2006 100,662
757,914 BUCKINGHAM II CDO LLC++ 4.83 04/25/2006 755,708
93,351 CAIRN HIGH GRADE FUNDING I 4.90 04/03/2006 93,351
177,366 CAIRN HIGH GRADE FUNDING I 4.64 04/05/2006 177,320
116,688 CAIRN HIGH GRADE FUNDING I 4.82 04/19/2006 116,441
51,343 CAIRN HIGH GRADE FUNDING I++ 4.81 04/20/2006 51,227
107,353 CAIRN HIGH GRADE FUNDING I 4.83 04/26/2006 107,027
149,361 CAIRN HIGH GRADE FUNDING I++ 4.74 05/04/2006 148,746
51,343 CAIRN HIGH GRADE FUNDING I 4.77 05/10/2006 51,090
9,335 CC USA INCORPORATED 4.73 07/14/2006 9,335
65,345 CEDAR SPRINGS CAPITAL COMPANY LLC 4.85 04/05/2006 65,328
60,426 CEDAR SPRINGS CAPITAL COMPANY LLC 4.53 04/10/2006 60,370
140,026 CEDAR SPRINGS CAPITAL COMPANY LLC 4.55 04/19/2006 139,729
141,632 CEDAR SPRINGS CAPITAL COMPANY LLC 4.69 05/08/2006 140,972
55,628 CEDAR SPRINGS CAPITAL COMPANY LLC 4.72 05/12/2006 55,339
27,296 CEDAR SPRINGS CAPITAL COMPANY LLC 4.83 05/22/2006 27,117
9,998 CEDAR SPRINGS CAPITAL COMPANY LLC 4.88 06/02/2006 9,918
175,910 CEDAR SPRINGS CAPITAL COMPANY LLC 4.93 06/21/2006 174,035
186,001 CEDAR SPRINGS CAPITAL COMPANY LLC 4.93 06/22/2006 183,992
32,673 CONCORD MINUTEMAN CAPITAL COMPANY SERIES A 4.81 05/19/2006 32,472
172,059 CONCORD MINUTEMAN CAPITAL COMPANY SERIES A 4.65 04/04/2007 172,059
203,038 CONCORD MINUTEMEN CAPITAL COMPANY 4.72 04/12/2006 203,038
32,673 CONCORD MINUTEMEN CAPITAL COMPANY SERIES A 4.58 04/05/2006 32,664
20,070 CORPORATE ASSET SECURITIZATION AUSTRALIA 4.82 04/11/2006 20,049
12,836 CREDIT SUISSE FIRST BOSTON 5.21 06/19/2006 12,843
205,371 CREDIT SUISSE FIRST BOSTON NEW YORK SERIES YCD1 4.92 05/04/2006 205,269
7,291 CULLINAN FINANCE CORPORATION 4.73 05/11/2006 7,254
149,566 DEER VALLEY FUNDING LLC 4.84 04/19/2006 149,249
233,377 DEER VALLEY FUNDING LLC 4.82 05/02/2006 232,483
233,377 DEER VALLEY FUNDING LLC 4.82 05/03/2006 232,450
233,377 DEER VALLEY FUNDING LLC 4.82 05/04/2006 232,415
5,134 DEXIA DELAWARE LLC 4.81 04/06/2006 5,132
42,008 EIFFEL FUNDING LLC 4.82 05/02/2006 41,847
70,013 EIFFEL FUNDING LLC 4.78 05/08/2006 69,687
1,755 FALCON ASSET SECURITIZATION CORPORATION 4.95 06/15/2006 1,738
233,377 FIVE FINANCE INCORPORATED 4.93 01/25/2007 233,460
18,875 GALLEON CAPITAL LLC 4.84 04/10/2006 18,858
107,470 GENERAL ELECTRIC CAPITAL ASSURANCE COMPANY 4.91 05/12/2006 107,472
74,680 GENERAL ELECTRIC CAPITAL ASSURANCE COMPANY 4.83 06/16/2006 74,680
56,057 GENERAL ELECTRIC CAPITAL ASSURANCE COMPANY 5.06 09/18/2006 56,102
238,044 GOLDMAN SACHS GROUP INCORPORATED 4.97 06/30/2006 238,044
116,688 GOLDMAN SACHS GROUP INCORPORATED 5.02 08/16/2006 116,688
7,585 GOLDMAN SACHS GROUP INCORPORATED 4.94 08/18/2006 7,590
3,893 GRAMPIAN FUNDING LIMITED 4.43 04/11/2006 3,889
4,177 GRAMPIAN FUNDING LIMITED 4.89 07/03/2006 4,126
13
WELLS FARGO ADVANTAGE BALANCED FUND
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
BALANCED FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 34,073 HBOS TREASURY SERVICES PLC 4.98% 06/30/2006 $ 34,081
392,073 ING USA ANNUITY & LIFE INSURANCE 5.03 06/06/2006 392,072
1,629,856 JP MORGAN CHASE SECURITIES CORPORATION REPURCHASE AGREEMENT
(MATURITY VALUE $1,630,524) 4.92 04/03/2006 1,629,856
10,035 K2 (USA) LLC 4.44 04/20/2006 10,013
23,389 K2 (USA) LLC SERIES MTN 4.87 07/24/2006 23,395
298,722 KAUPTHING BANK HF++ 4.84 03/20/2007 298,662
10,661 KLIO FUNDING CORPORATION 4.81 04/19/2006 10,638
142,985 KLIO II FUNDING CORPORATION++ 4.82 04/18/2006 142,702
66,340 KLIO III FUNDING CORPORATION 4.47 04/05/2006 66,322
9,335 LEHMAN BROTHERS HOLDINGS INCORPORATED SERIES MTNG 4.59 06/02/2006 9,337
129,589 LEXINGTON PARKER CAPITAL CORPORATION 4.89 04/04/2006 129,572
5,120 LEXINGTON PARKER CAPITAL CORPORATION 4.43 04/18/2006 5,110
182,892 LEXINGTON PARKER CAPITAL CORPORATION 4.69 05/10/2006 181,993
350,065 LIBERTY LIGHT US CAPITAL SERIES MTN 4.81 05/26/2006 350,086
161,030 LIQUID FUNDING LIMITED 4.47 04/04/2006 161,009
233,377 LIQUID FUNDING LIMITED 4.82 04/28/2006 232,604
126,023 LIQUID FUNDING LIMITED 4.71 08/14/2006 126,023
163,364 LIQUID FUNDING LIMITED 4.61 12/01/2006 163,364
4,668 MERRILL LYNCH & COMPANY 4.88 04/18/2006 4,667
25,671 MERRILL LYNCH & COMPANY 5.09 06/06/2006 25,678
5,559 MONT BLANC CAPITAL CORPORATION 4.46 04/10/2006 5,554
326,727 MORGAN STANLEY 4.94 10/10/2006 326,727
233,377 MORGAN STANLEY 4.94 10/30/2006 233,376
71,763 MORGAN STANLEY SERIES EXL 4.78 08/13/2010 71,783
280,052 MORTGAGE INTEREST NET TRUST (MINTS) 4.78 05/04/2006 278,898
9,316 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.58 04/06/2006 9,313
13,867 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.81 04/17/2006 13,842
12,075 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.60 06/15/2006 11,956
8,402 NORDEA NORTH AMERICA INCORPORATED 4.77 05/08/2006 8,362
5,610 PARK AVENUE RECEIVABLES CORPORATION 4.81 04/17/2006 5,600
2,978 PERRY GLOBAL FUNDING LIMITED 4.84 06/12/2006 2,950
215,421 PICAROS FUNDING LLC 4.82 04/27/2006 214,738
9,335 PRUDENTIAL PLC 4.70 05/08/2006 9,292
214,496 RACERS TRUST 2004-6-MM 4.79 05/22/2006 214,526
116,688 ROYAL BANK OF SCOTLAND PLC 4.79 11/24/2006 116,722
14,773 ROYAL BANK OF SCOTLAND PLC 4.79 11/24/2006 14,777
21,004 SCALDIS CAPITAL LIMITED 4.47 04/18/2006 20,962
2,857 SCALDIS CAPITAL LIMITED 4.46 04/21/2006 2,850
116,688 SEDNA FINANCE INCORPORATED 4.83 12/08/2006 116,673
44,342 SLM CORPORATION 4.79 04/25/2006 44,338
30,320 SOCIETE GENERALE NORTH AMERICA 4.85 04/06/2006 30,308
3,501 SWEDBANK (FORENINGS SPARBANKEN) 4.45 04/10/2006 3,497
54,377 TANGO FINANCE CORPORATION 4.43 04/03/2006 54,377
58,470 TANGO FINANCE CORPORATION SERIES MTN 4.87 10/25/2006 58,489
3,449 THAMES ASSET GLOBAL SECURITIZATION #1 INCORPORATED 4.78 05/15/2006 3,430
4,448 THAMES ASSET GLOBAL SECURITIZATION #1 INCORPORATED++ 4.97 06/06/2006 4,410
14
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE BALANCED FUND
- --------------------------------------------------------------------------------
BALANCED FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 291,609 THAMES ASSET GLOBAL SECURITIZATION #1 INCORPORATED 4.95% 06/26/2006 $ 288,302
466,753 TRANSAMERICA OCCIDENTAL LIFE INSURANCE 5.07 07/11/2006 466,753
89,705 TRAVELERS INSURANCE COMPANY 4.77 02/09/2007 89,703
4,579 UBS FINANCE (DELAWARE) LLC 4.81 05/31/2006 4,543
233,377 UNICREDITO ITALIANO NEW YORK SERIES 4.92 06/30/2006 233,344
116,688 UNICREDITO ITALIANO SERIES LIB 4.70 03/09/2007 116,681
131,316 WHITE PINE FINANCE LLC 4.84 04/10/2006 131,194
9,802 WHITE PINE FINANCE LLC 4.79 05/05/2006 9,760
54,190 WHITE PINE FINANCE LLC++ 4.76 05/08/2006 53,937
46,675 WHITE PINE FINANCE LLC 4.65 05/17/2006 46,402
121,356 WHITE PINE FINANCE LLC SERIES MTN1 4.81 06/12/2006 121,367
6,086 YORKTOWN CAPITAL LLC 4.81 04/20/2006 6,073
5,601 YORKTOWN CAPITAL, LLC 4.81 04/17/2006 5,591
16,883,606
--------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $17,000,294) 17,000,294
--------------
SHORT-TERM INVESTMENTS - 0.03%
SHARES
MUTUAL FUND - 0.03%
43,336 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~# 43,336
--------------
TOTAL SHORT-TERM INVESTMENTS (COST $43,336) 43,336
--------------
TOTAL INVESTMENTS IN SECURITIES
(COST $145,075,061)* 111.92% $ 152,531,711
OTHER ASSETS AND LIABILITIES, NET (11.92)
------ (16,242,543)
--------------
TOTAL NET ASSETS 100.00% $ 136,289,168
====== ==============
<< ALL OR A PORTION OF THIS SECURITY IS ON LOAN. (SEE NOTE 2)
+/- VARIABLE RATE INVESTMENTS.
++ SECURITIES THAT MAY BE RESOLD TO "QUALIFIED INSTITUTIONAL BUYERS" UNDER
RULE 144A OR SECURITIES OFFERED PURSUANT TO SECTION 4 (2) OF THE
SECURITIES ACT OF 1933, AS AMENDED.
+ NON-INCOME EARNING SECURITIES.
^^ THIS SECURITY IS CURRENTLY IN DEFAULT WITH REGARDS TO SCHEDULED INTEREST
OR PRINCIPAL PAYMENTS.
@ FOREIGN BOND PRINCIPAL IS DENOMINATED IN US DOLLARS EXCEPT AS INDICATED
PARENTHETICALLY.
^ ZERO COUPON BOND. INTEREST RATE PRESENTED IS YIELD TO MATURITY.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
# SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $43,336.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
15
WELLS FARGO ADVANTAGE BALANCED FUND
STATEMENTS OF ASSETS AND LIABILITIES -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
BALANCED FUND
- --------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE .................................................. $ 135,488,081
COLLATERAL FOR SECURITIES LOANED (NOTE 2) ....................................... 17,000,294
INVESTMENTS IN AFFILIATES ....................................................... 43,336
-------------
TOTAL INVESTMENTS AT MARKET VALUE (SEE COST BELOW) ................................. 152,531,711
-------------
VARIATION MARGIN RECEIVABLE ON FUTURES CONTRACTS ................................ 390
RECEIVABLE FOR FUND SHARES ISSUED ............................................... 2,446
RECEIVABLE FOR INVESTMENTS SOLD ................................................. 1,064,508
RECEIVABLES FOR DIVIDENDS AND INTEREST .......................................... 785,222
-------------
TOTAL ASSETS ....................................................................... 154,384,277
-------------
LIABILITIES
PAYABLE FOR FUND SHARES REDEEMED ................................................ 3,988
PAYABLE FOR INVESTMENTS PURCHASED ............................................... 957,083
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) ........................... 54,212
PAYABLE TO THE TRUSTEES AND SHAREHOLDER SERVICING AGENT ......................... 33,157
PAYABLE FOR SECURITIES LOANED (NOTE 2) .......................................... 17,000,294
ACCRUED EXPENSES AND OTHER LIABILITIES .......................................... 46,375
-------------
TOTAL LIABILITIES .................................................................. 18,095,109
-------------
TOTAL NET ASSETS ................................................................... $ 136,289,168
=============
NET ASSETS CONSIST OF:
- ----------------------------------------------------------------------------------------------------
PAID-IN CAPITAL ................................................................. $ 135,935,828
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ...................................... 37,565
UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON INVESTMENTS ........................... (7,133,289)
NET UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS, FOREIGN CURRENCIES AND
TRANSLATION OF ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES ....... 7,456,650
NET UNREALIZED APPRECIATION (DEPRECIATION) OF FUTURES ........................... (7,586)
-------------
TOTAL NET ASSETS ................................................................... $ 136,289,168
-------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE 1
- ----------------------------------------------------------------------------------------------------
NET ASSETS - INVESTOR CLASS ..................................................... $ 136,289,168
SHARES OUTSTANDING - INVESTOR CLASS ............................................. 6,792,404
NET ASSET VALUE AND OFFERING PRICE PER SHARE - INVESTOR CLASS ................... $ 20.06
-------------
INVESTMENTS AT COST ................................................................ $ 145,075,061
=============
SECURITIES ON LOAN, AT MARKET VALUE ................................................ $ 16,594,058
=============
(1) EACH FUND HAS AN UNLIMITED NUMBER OF AUTHORIZED SHARES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
16
STATEMENTS OF OPERATIONS -- FOR THE SIX MONTHS ENDED MARCH 31, 2006
WELLS FARGO ADVANTAGE BALANCED FUND
- --------------------------------------------------------------------------------
BALANCED FUND
- --------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS ....................................................................... $ 896,017
INTEREST ........................................................................ 1,359,502
INCOME FROM AFFILIATED SECURITIES ............................................... 86,405
SECURITIES LENDING INCOME, NET .................................................. 9,799
-------------
TOTAL INVESTMENT INCOME ............................................................ 2,351,723
-------------
EXPENSES
ADVISORY FEES ................................................................... 452,205
ADMINISTRATION FEES ............................................................. 347,850
CUSTODY FEES .................................................................... 13,914
SHAREHOLDER SERVICING FEES ...................................................... 173,925
ACCOUNTING FEES ................................................................. 14,461
PROFESSIONAL FEES ............................................................... 16,803
REGISTRATION FEES ............................................................... 6,890
SHAREHOLDER REPORTS ............................................................. 35,870
TRUSTEES' FEES .................................................................. 4,055
OTHER FEES AND EXPENSES ......................................................... 2,639
-------------
TOTAL EXPENSES ..................................................................... 1,068,612
-------------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) .................................... (198,986)
NET EXPENSES .................................................................... 869,626
-------------
NET INVESTMENT INCOME (LOSS) ....................................................... 1,482,097
-------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- ----------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ................. 1,727,141
FUTURES TRANSACTIONS ............................................................ (11,555)
-------------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS .......................................... 1,715,586
-------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ................. 274,971
FUTURES TRANSACTIONS ............................................................ (4,479)
-------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ................ 270,492
=============
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ............................. 1,986,078
-------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS .................... $ 3,468,175
-------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
17
WELLS FARGO ADVANTAGE BALANCED FUND STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
BALANCED FUND
---------------------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE FOR THE
MARCH 31, 2006 PERIOD ENDED YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005 DECEMBER 31, 2004
- ----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS .............................................. $ 142,490,661 $ 154,974,006 $ 208,955,025
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ...................................... 1,482,097 1,747,951 2,085,502
NET REALIZED GAIN (LOSS) ON INVESTMENTS ........................... 1,715,586 9,945,188 13,171,857
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS ..................................................... 270,492 (8,863,860) (4,483,036)
---------------- ------------------ -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ...... 3,468,175 2,829,279 10,774,323
---------------- ------------------ -----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME ............................................. (1,482,545) (1,748,839) (2,151,090)
---------------- ------------------ -----------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS .................................. (1,482,545) (1,748,839) (2,151,090)
---------------- ------------------ -----------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - INVESTOR CLASS ........................ 2,689,144 6,174,165 26,599,270
REINVESTMENT OF DISTRIBUTIONS - INVESTOR CLASS .................... 1,433,047 1,685,000 2,073,183
COST OF SHARES REDEEMED - INVESTOR CLASS .......................... (12,309,314) (21,422,950) (91,276,705)
---------------- ------------------ -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INVESTOR CLASS ..................................... (8,187,123) (13,563,785) (62,604,252)
---------------- ------------------ -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - TOTAL .............................................. (8,187,123) (13,563,785) (62,604,252)
---------------- ------------------ -----------------
NET INCREASE (DECREASE) IN NET ASSETS ................................ (6,201,493) (12,483,345) (53,981,019)
---------------- ------------------ -----------------
ENDING NET ASSETS .................................................... $ 136,289,168 $ 142,490,661 $ 154,974,006
================ ================== =================
SHARES ISSUED AND REDEEMED:
SHARES SOLD - INVESTOR CLASS ...................................... 134,949 315,558 1,407,580
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - INVESTOR CLASS ... 71,522 86,465 108,957
SHARES REDEEMED - INVESTOR CLASS .................................. (616,759) (1,095,863) (4,840,528)
---------------- ------------------ -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INVESTOR CLASS ....... (410,288) (693,840) (3,323,991)
---------------- ------------------ -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM CAPITAL
SHARE TRANSACTIONS ................................................ (410,288) (693,840) (3,323,991)
---------------- ------------------ -----------------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ......... $ 37,565 $ 38,013 $ 0
================ ================== =================
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
18
THIS PAGE IS INTENTIONALLY LEFT BLANK --
WELLS FARGO ADVANTAGE BALANCED FUND FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
NET REALIZED
BEGINNING NET AND DISTRIBUTIONS DISTRIBUTIONS
NET ASSET INVESTMENT UNREALIZED FROM NET FROM NET
VALUE PER INCOME GAIN (LOSS) ON INVESTMENT REALIZED
SHARE (LOSS) INVESTMENTS INCOME GAINS
- -----------------------------------------------------------------------------------------------------------------------------
BALANCED FUND
- -----------------------------------------------------------------------------------------------------------------------------
INVESTOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ... $ 19.78 0.21 0.28 (0.21) 0.00
JANUARY 1, 2005 TO SEPTEMBER 30, 2005(4) ........ $ 19.63 0.24 0.15 (0.24) 0.00
JANUARY 1, 2004 TO DECEMBER 31, 2004 ............ $ 18.62 0.25 1.02 (0.26) 0.00
JANUARY 1, 2003 TO DECEMBER 31, 2003 ............ $ 16.06 0.19 2.58 (0.21) 0.00
JANUARY 1, 2002 TO DECEMBER 31, 2002 ............ $ 18.84 0.40 (2.77) (0.41) 0.00
JANUARY 1, 2001 TO DECEMBER 31, 2001 ............ $ 21.83 0.58 (2.99) (0.58) 0.00
NOVEMBER 1, 2000 TO DECEMBER 31, 2000(3) ........ $ 24.77 0.12 (1.53) (0.20) (1.33)
NOVEMBER 1, 1999 TO OCTOBER 31, 2000 ............ $ 24.92 0.82 0.61 (0.83) (0.75)
(1) DURING EACH PERIOD, VARIOUS FEES AND EXPENSES WERE WAIVED AND REIMBURSED
AS INDICATED. THE RATIO OF GROSS EXPENSES TO AVERAGE NET ASSETS REFLECTS
THE EXPENSE RATIO IN THE ABSENCE OF ANY WAIVERS AND REIMBURSEMENTS (NOTE
3).
(2) TOTAL RETURN CALCULATIONS DO NOT INCLUDE ANY SALES CHARGES, AND WOULD HAVE
BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN WAIVED OR REIMBURSED DURING THE
PERIODS SHOWN. RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT
ANNUALIZED.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM OCTOBER 31, 2000 TO DECEMBER 31,
2000.
(4) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31, 2004 TO SEPTEMBER
30, 2005.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
20
FINANCIAL HIGHLIGHTS WELLS FARGO ADVANTAGE BALANCED FUND
- --------------------------------------------------------------------------------
ENDING RATIO TO AVERAGE NET ASSETS (ANNUALIZED)(1)
NET ASSET -----------------------------------------------
RETURN OF VALUE PER NET INVESTMENT GROSS EXPENSES NET
CAPITAL SHARE INCOME (LOSS) EXPENSES WAIVED EXPENSES
- ------------------------------------------------------------------------------------------------------------------------------
BALANCED FUND
- ------------------------------------------------------------------------------------------------------------------------------
INVESTOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ... 0.00 $ 20.06 2.13% 1.54% (0.29)% 1.25%
JANUARY 1, 2005 TO SEPTEMBER 30, 2005(4) ........ 0.00 $ 19.78 1.58% 1.45% (0.17)% 1.28%
JANUARY 1, 2004 TO DECEMBER 31, 2004 ............ 0.00 $ 19.63 1.25% 1.31% (0.04)% 1.27%
JANUARY 1, 2003 TO DECEMBER 31, 2003 ............ 0.00 $ 18.62 1.09% 1.31% (0.05)% 1.26%
JANUARY 1, 2002 TO DECEMBER 31, 2002 ............ 0.00 $ 16.06 2.31% 1.30% (0.01)% 1.29%
JANUARY 1, 2001 TO DECEMBER 31, 2001 ............ 0.00 $ 18.84 2.88% 1.19% 0.00% 1.19%
NOVEMBER 1, 2000 TO DECEMBER 31, 2000(3) ........ 0.00 $ 21.83 3.31% 1.07% 0.00% 1.07%
NOVEMBER 1, 1999 TO OCTOBER 31, 2000 ............ 0.00 $ 24.77 3.21% 1.06% 0.00% 1.06%
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE (000'S OMITTED)
- ---------------------------------------------------------------------------------------------
BALANCED FUND
- ---------------------------------------------------------------------------------------------
INVESTOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ... 2.50% 33% $ 136,289
JANUARY 1, 2005 TO SEPTEMBER 30, 2005(4) ........ 2.00% 87% $ 142,491
JANUARY 1, 2004 TO DECEMBER 31, 2004 ............ 6.86% 148% $ 154,974
JANUARY 1, 2003 TO DECEMBER 31, 2003 ............ 17.36% 205% $ 208,955
JANUARY 1, 2002 TO DECEMBER 31, 2002 ............ (12.65)% 226% $ 218,015
JANUARY 1, 2001 TO DECEMBER 31, 2001 ............ (11.03)% 234% $ 300,022
NOVEMBER 1, 2000 TO DECEMBER 31, 2000(3) ........ (5.60)% 45% $ 346,693
NOVEMBER 1, 1999 TO OCTOBER 31, 2000 ............ 5.66% 151% $ 371,535
21
WELLS FARGO ADVANTAGE BALANCED FUND NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. ORGANIZATION
- --------------------------------------------------------------------------------
Wells Fargo Funds Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end management
investment company. The Trust commenced operations on November 8, 1999, and at
March 31, 2006, was comprised of 108 separate series (each, a "Fund",
collectively, the "Funds"). These financial statements present the Balanced
Fund. The Fund is a diversified series of the Trust.
In August and September 2004, the Board of Trustees of the Trust and the
Boards of Directors of the Strong Funds ("Strong Funds") approved an Agreement
and Plan of Reorganization providing for the reorganization of certain Strong
Funds into the Funds.
Effective at the close of business on April 8, 2005, the following
Acquiring Funds ("Acquiring Fund"), by share class, acquired substantially all
of the net assets of the following Target Funds ("Target Fund"), by share class,
through a tax-free exchange under section 368 of the Internal Revenue Code.
Acquiring Fund Target Fund
- ----------------------------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE BALANCED FUND INVESTOR CLASS Strong Balanced Fund Investor Class
- ----------------------------------------------------------------------------------------------------
2. SIGNIFICANT ACCOUNTING POLICIES
- --------------------------------------------------------------------------------
The following significant accounting policies, which are consistently
followed in the preparation of the financial statements of the Trust, are in
conformity with accounting principles generally accepted in the United States of
America ("GAAP") for investment companies.
The preparation of financial statements in conformity with GAAP requires
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.
In the normal course of business, the Trust may enter into contracts that
provide certain indemnifications. The Trust's maximum exposure under these
arrangements is dependent on future claims that may be made against the Funds
and, therefore, cannot be estimated; however, based on experience, the risk of
loss from such claims is considered remote.
SECURITY VALUATION
Investments in securities are valued each business day as of the close of
regular trading on the New York Stock Exchange, which is usually 4:00 p.m.
(Eastern Time). Securities, which are traded on a national or foreign securities
exchange, are valued at the last reported sales price. Securities listed on The
NASDAQ Stock Market, Inc. are valued at the NASDAQ Official Closing Price
("NOCP"), and if no NOCP is available, then at the last reported sales price. In
the absence of any sale of such securities, and in the case of other securities,
including U.S. Government obligations, but excluding debt securities maturing in
60 days or less, the price will be deemed "stale" and the valuations will be
determined in accordance with the Funds' Fair Valuation Procedures.
Certain fixed income securities with maturities exceeding 60 days are
valued by using a pricing service approved by the Trust's Board of Trustees. The
service uses market prices as quoted by an independent pricing service or by
dealers in these securities when, in the service's judgment, these prices are
readily available and are representative of the securities' market values. For
some securities, such prices are not readily available. These securities will
generally be fair valued using methods which may include consideration of yields
or prices of securities of comparable quality, coupon rate, maturity and type of
issue, indications as to values from dealers in securities, trading
characteristics, and general market conditions.
Debt securities maturing in 60 days or less generally are valued at
amortized cost. The amortized cost method involves valuing a security at its
cost, plus accretion of discount or minus amortization of premium over the
period until maturity, which approximates market value.
Investments which are not valued using any of the methods discussed above
are valued at their fair value as determined by procedures approved by the Board
of Trustees.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Securities transactions are recorded on a trade date basis. Realized gains
or losses are reported on the basis of identified cost of securities delivered.
Interest income is accrued daily and bond discounts are accreted and premiums
are amortized daily.
Dividend income is recognized on the ex-dividend date, except for certain
dividends from foreign securities, which are recorded as soon as the Fund is
informed of the ex-dividend date. Dividend income from foreign securities is
recorded net of foreign taxes withheld where recovery of such taxes is not
assured.
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, if any, is declared and distributed to shareholders
quarterly. Distributions to shareholders from net realized capital gains, if
any, are declared and distributed at least annually.
For federal income tax purposes, a Fund may designate as capital gains
dividends the earnings and profits distributed to shareholders on the redemption
of fund shares during the year.
Distributions are based on amounts calculated in accordance with the
applicable federal income tax regulations, which may differ from GAAP. The
timing and character of distributions made during the period from net investment
income or net realized gains may also differ from their ultimate
characterization for federal income tax purposes. To the extent that these
differences are permanent in nature, such amounts are reclassified within the
capital accounts based on their federal tax-basis treatment. Temporary
differences do not require reclassifications.
22
NOTES TO FINANCIAL STATEMENTS WELLS FARGO ADVANTAGE BALANCED FUND
- --------------------------------------------------------------------------------
FEDERAL INCOME TAXES
Each Fund is treated as a separate entity for federal income tax purposes.
It is the policy of each Fund of the Trust to continue to qualify as a regulated
investment company by complying with the provisions applicable to regulated
investment companies, as defined under subchapter M of the Internal Revenue Code
(the "Code"), and to make distributions of 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 at March 31, 2006.
At September 30, 2005, estimated net capital loss carryforwards, which are
available to offset future net realized capital gains, were:
Capital Loss
Fund Year Expires Carryforwards
- --------------------------------------------------------------------------------
BALANCED FUND 2010 $8,169,457
- --------------------------------------------------------------------------------
FUTURES CONTRACTS
The Fund may purchase futures contracts to gain exposure to market
changes, which may be more efficient or cost effective than actually buying the
securities. A futures contract is an agreement between parties to buy or sell a
security at a set price on a future date. Upon entering into such a contract, a
Fund is required to pledge to the broker an amount of cash, U.S. Government
obligations or other high-quality debt securities equal to the minimum "initial
margin" requirements of the exchange on which the futures contract is traded.
Pursuant to the contract, the Fund agrees to receive from or pay to the broker
an amount of cash equal to the daily fluctuation in the value of the contract.
Such receipts or payments are known as "variation margin" and are recorded by
the Fund as unrealized gains or losses. When the contract is closed, the Fund
records a realized gain or loss equal to the difference between the value of the
contract at the time it was opened and the value at the time it was closed.
Pursuant to regulations and/or published positions of the Securities and
Exchange Commission (the "SEC") for long futures positions, the Fund is required
to segregate highly liquid securities as permitted by the SEC in connection with
futures transactions in an amount generally equal to the value of the underlying
contracts. Risks of entering into futures contracts include the possibility that
there may be an illiquid market and that a change in the value of the contract
may not correlate with changes in the value of the underlying securities. At
March 31, 2006, the Fund held the following future contract:
Net Unrealized
Notional Appreciation
Fund Contracts Type Expiration Date Amount (Depreciation)
- ---------------------------------------------------------------------------------------------------
BALANCED FUND 5 Long US 10 Year Treasury Bond June 2006 $539,531 $(7,578)
- ---------------------------------------------------------------------------------------------------
SECURITY LOANS
The Fund(s) may loan securities in return for securities, irrevocable
letters of credit or cash collateral, which is invested in various short-term
fixed income securities. A Fund may receive compensation for lending securities
in the form of fees or by retaining a portion of interest on the investment
securities or cash received as collateral. A Fund also continues to receive
interest or dividends on the securities loaned. Security loans are secured at
all times by collateral. The collateral is equal to at least 102% of the market
value of the securities loaned plus accrued interest when the transaction is
entered into. The collateral supporting loans of domestic and foreign equity
securities and corporate bonds are remarked daily while collateral supporting
loans of U.S. Government securities are remarked back to 102% only if the given
collateral falls below 100% of the market value of the securities loans plus any
accrued interest. Gain or loss in the market price of the securities loaned that
may occur during the term of the loan are reflected in the value of the Fund.
The risks from securities lending are that the borrower may not provide
additional collateral when required or return the securities when due or when
called for by the Fund. Wells Fargo Bank, N.A., the Funds' custodian, acts as
the securities lending agent for the Funds and receives for its services 30% of
the revenues earned on the securities lending activities and incurs all
expenses. Prior to October 1, 2005, Wells Fargo Bank, N.A. received 35% of the
revenues earned on the securities lending activities and incurred all expenses.
The value of the securities on loan and the value of the related collateral at
March 31, 2006, are shown on the Statement of Assets and Liabilities.
WHEN-ISSUED TRANSACTIONS
Each Fund may purchase securities on a forward commitment or 'when-issued'
basis. A Fund records a when-issued transaction on the trade date and will
segregate with the custodian qualifying assets having a value sufficient to make
payment for the securities purchased. Securities purchased on a when-issued
basis are marked-to-market daily and the Fund begins earning interest on the
settlement date. Losses may arise due to changes in the market value of the
underlying securities or if the counterparty does not perform under the
contract.
3. EXPENSES
- --------------------------------------------------------------------------------
ADVISORY FEES
The Trust has entered into an advisory contract with Wells Fargo Funds
Management, LLC ("Funds Management"). The adviser is responsible for
implementing investment policies and guidelines and for supervising the
subadviser, who is responsible for day-to-day portfolio management.
23
WELLS FARGO ADVANTAGE BALANCED FUND NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
Pursuant to the contract, Funds Management is entitled to receive an
advisory fee for its services as adviser. Funds Management may retain the
services of certain investment subadvisers to provide daily portfolio
management. The fees related to subadvisory services are borne directly by the
adviser and do not increase the overall fees paid by a Fund to the adviser.
Funds Management and the investment subadviser(s) are entitled to be paid a
monthly fee at the following annual rates:
Subadvisory
Advisory Fee* Fees** (% of
Average Daily (% of Average Average Daily Average Daily
Fund Net Assets Daily Net Assets) Subadviser Net Assets Net Assets)
- ------------------------------------------------------------------------------------------------------------
BALANCED FUND First $500 million 0.650 Wells Capital First $100 million 0.250
Next $500 million 0.600 Management Next $100 million 0.200
Next $2 billion 0.550 Incorporated Over $200 million 0.150
Next $2 billion 0.525
Over $5 billion 0.500
- ------------------------------------------------------------------------------------------------------------
* Effective April 11, 2005. From January 1, 2005, through April 10, 2005,
Funds Management served as interim investment adviser to the predecessor Strong
Funds and was entitled to receive an annual fee at the following rates:
** Effective January 1, 2006. Prior to January 1, 2006, Subadviser(s) were
entitled to be paid a monthly fee at the following rate:
Advisory Fees
(% of Average
Fund Average Daily Net Assets Daily Net Assets)
- --------------------------------------------------------------------------------
BALANCED FUND First $35 million 0.600
Over $35 million 0.550
- --------------------------------------------------------------------------------
Subadvisory Fees
(% of Average
Fund Subadviser Average Daily Net Assets Daily Net Assets)
- --------------------------------------------------------------------------------
BALANCED FUND Wells Capital First $1 billion 0.250
Management Over $1 billion 0.200
Incorporated
- --------------------------------------------------------------------------------
ADMINISTRATION AND TRANSFER AGENT FEES
The Trust has entered into an Administration Agreement with Funds
Management. Under this Agreement, for providing administrative services, which
includes paying fees and expenses for services provided by the transfer agent,
sub-transfer agents, omnibus account servicers and record-keepers, Funds
Management is entitled to receive the following annual fees:
Admin Fees**
(% of Average
Fund Average Daily Net Assets Daily Net Assets)
- --------------------------------------------------------------------------------
BALANCED FUND First $5 billion 0.50
Next $5 billion 0.49
Over $10 billion 0.48
- --------------------------------------------------------------------------------
** Effective April 11, 2005. Prior to April 11, 2005, Strong Investor
Services, Inc. ("SISI") served as administrator to each of the predecessor
Strong Funds and was entitled to receive an annual fee at the following rates:
Admin Fees
(% of Average
Fund Daily Net Assets)
- --------------------------------------------------------------------------------
BALANCED FUND 0.30
- --------------------------------------------------------------------------------
The Trust has entered into an agreement with Boston Financial Data
Services, Inc. ("BFDS"). BFDS served as the transfer agent to the predecessor
Strong Funds effective March 14, 2005. Prior to March 14, 2005, SISI served as
transfer agent to each of the predecessor Strong Funds.
For the financial statement presentation, transfer agent fees for the
period from January 1, 2005, through April 10, 2005, as shown below, have been
combined with administration fees.
Transfer Agent Fees
and Other
Fund Related Expenses
- --------------------------------------------------------------------------------
BALANCED FUND $133,556
- --------------------------------------------------------------------------------
24
NOTES TO FINANCIAL STATEMENTS WELLS FARGO ADVANTAGE BALANCED FUND
- --------------------------------------------------------------------------------
CUSTODY FEES
The Trust has entered into a contract with Wells Fargo Bank, N.A. ("WFB"),
whereby WFB is responsible for providing custody services. Pursuant to the
contract, WFB is entitled to a monthly fee for custody services at the following
annual rates:
% of Average
Fund Daily Net Assets
- --------------------------------------------------------------------------------
BALANCED FUND 0.02
- --------------------------------------------------------------------------------
Prior to March 21, 2005, State Street served as custodian for the Strong
Balanced Fund. State Street was entitled to receive certain fees, primarily
based on transactions of the fund.
SHAREHOLDER SERVICING FEES
The Trust has entered into contracts with one or more shareholder
servicing agents, whereby each Fund is charged the following annual fees:
% of Average
Share Class Daily Net Assets
- --------------------------------------------------------------------------------
INVESTOR CLASS 0.25
- --------------------------------------------------------------------------------
For the period ended March 31, 2006, shareholder servicing fees paid were
as follows:
Fund Investor Class
- --------------------------------------------------------------------------------
BALANCED FUND $173,925
- --------------------------------------------------------------------------------
OTHER FEES
PFPC, Inc. ("PFPC") serves as fund accountant for the Trust and is
entitled to receive an annual asset based fee and an annual fixed fee from each
Fund. PFPC is also entitled to be reimbursed for all out-of-pocket expenses
reasonably incurred in providing these services.
Prior to March 21, 2005, State Street served as fund accountant for each
of the predecessor Strong Funds. Fund accounting fees were paid by the Funds'
administrator and not by the Funds.
WAIVED FEES AND REIMBURSED EXPENSES
Effective April 11, 2005, Funds Management waived fees or reimbursed
expenses proportionately from all classes, first from advisory fees, and then
from any class specific expenses, if applicable. Funds Management has committed
to waive fees and/or reimburse expenses to the extent necessary to maintain a
certain net operating expense ratio for the Fund(s). Net operating expense
ratios in effect for the period ended March 31, 2006, were as follows:
Net Operating
Fund Expense Ratio
- --------------------------------------------------------------------------------
BALANCED FUND 1.25%
- --------------------------------------------------------------------------------
Prior to April 11, 2005, the Strong Funds' adviser and/or administrator
could voluntarily waive or absorb certain expenses at their discretion. Pursuant
to the direction of the Strong Funds Board of Directors and certain regulatory
settlements, Strong Capital Management, Inc. ("SCM") had contractually agreed to
waive fees and/or absorb expenses in the amount of 0.033% for Strong Balanced
Fund from May 21, 2004, to May 21, 2005. However, effective April 11, 2005, the
Fund is subject to a different expense structure. SISI also allocated to each
fund certain charges or credits resulting from transfer agency banking
activities based on each Class' level of subscription and redemption activity.
Transfer Agency Banking Credits allocated by SISI, if any, served to reduce the
transfer agency expenses incurred by the Funds. From January 1, 2005, through
April 10, 2005, the expense offsets that are included in the waived fees and
reimbursed expenses amount on the Statements of Operations are as follows:
Waived Fees
and Reimbursed
Fund Expenses
- --------------------------------------------------------------------------------
BALANCED FUND $16,319
- --------------------------------------------------------------------------------
4. INVESTMENT PORTFOLIO TRANSACTIONS
- --------------------------------------------------------------------------------
Purchases and sales of investments, exclusive of short-term securities and
U.S. government obligations (securities with maturities of one year or less at
purchase date) for the period ended March 31, 2006, were as follows:
Fund Purchases at Cost Sales Proceeds
- --------------------------------------------------------------------------------
BALANCED FUND $48,465,011 $43,835,466
- --------------------------------------------------------------------------------
25
WELLS FARGO ADVANTAGE BALANCED FUND NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
5. BANK BORROWINGS
- --------------------------------------------------------------------------------
Wells Fargo Funds Trust and Wells Fargo Variable Trust (excluding the
money market funds) share in a revolving Credit Agreement with The Bank of New
York, whereby the Funds are permitted to use bank borrowings for temporary or
emergency purposes, such as to fund shareholder redemption requests. The
agreement permits borrowings of up to $150 million, collectively. Interest is
charged to each Fund based on its borrowing at a rate equal to the Federal Funds
Rate plus 0.40%. In addition, the Funds pay a quarterly commitment fee equal to
0.1% per annum of the credit line.
Prior to April 11, 2005, the predecessor Strong Funds had established a
line of credit agreement ("LOC") with certain financial institutions to be used
for temporary or emergency purposes. Combined borrowings among all participating
Strong Funds were subject to a $200 million cap on the total LOC. For an
individual fund, borrowings under the LOC were limited to either the lesser of
15% of the market value of the fund's total assets or any explicit borrowing
limits in the fund's registration statement. The principal amount of each
borrowing under the LOC was due not more than 45 days after the date of the
borrowing. Borrowings under the LOC accrued interest based on prevailing market
rates as defined in the LOC. A commitment fee of 0.09% per annum was incurred on
the unused portion of the LOC and was allocated to all participating Strong
Funds based on their net asset values. For the period ended March 31, 2006,
there were no borrowings by the Balanced Fund under either agreement.
26
OTHER INFORMATION (UNAUDITED) WELLS FARGO ADVANTAGE BALANCED FUND
- --------------------------------------------------------------------------------
PROXY VOTING INFORMATION
A description of the policies and procedures that the Funds use to
determine how to vote proxies relating to portfolio securities and information
regarding how to obtain the results of such voting during the most recent
12-month period ended June 30 is available without charge, upon request, by
calling 1-800-222-8222, visiting our Web site at
WWW.WELLSFARGO.COM/ADVANTAGEFUNDS, or visiting the SEC Web site at WWW.SEC.GOV.
PORTFOLIO HOLDINGS INFORMATION
The complete portfolio holdings for each Fund are publicly available on
the Funds' Web site (WWW.WELLSFARGO.COM/ADVANTAGEFUNDS) on a monthly, 30-day or
more delayed basis. In addition, top ten holdings information for each Fund is
publicly available on the Funds' Web site on a monthly, seven-day or more
delayed basis. Each Fund files its complete schedule of portfolio holdings with
the SEC for the first and third quarters of each fiscal year on Form N-Q, which
is available without charge by visiting the SEC Web site at WWW.SEC.GOV. In
addition, each Fund's Form N-Q may be reviewed and copied at the SEC's Public
Reference Room in Washington, DC, and at regional offices in New York City, at
233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900.
Information about the Public Reference Room may be obtained by calling
1-800-SEC-0330.
BOARD OF TRUSTEES
The following table provides basic information about the Board of Trustees
(the "Trustees") of the Wells Fargo Funds Trust (the "Trust"). This table
supplements, and should be read in conjunction with, the Prospectus and the
Statement of Additional Information* of each Fund. Each of the Trustees listed
below acts in identical capacities for each of the 139 funds comprising the
Trust, Wells Fargo Variable Trust and Wells Fargo Master Trust (collectively the
"Fund Complex"). All of the non-interested Trustees are also members of the
Audit and Governance Committees of each Trust in the Fund Complex. The 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.
NON-INTERESTED TRUSTEES
- ------------------------------------------------------------------------------------------------------
POSITION HELD AND PRINCIPAL OCCUPATIONS DURING
NAME AND AGE LENGTH OF SERVICE ** PAST FIVE YEARS OTHER DIRECTORSHIPS
- ------------------------------------------------------------------------------------------------------
Thomas S. Goho Trustee, since 1987 Chair of Finance, Wake Forest None
63 University, since 2006.
Benson- Pruitt Professorship,
Wake Forest University,
Calloway School of Business
and Accountancy, since 1999.
- ------------------------------------------------------------------------------------------------------
Peter G. Gordon Trustee, since 1998 Chairman, CEO, and Co- None
63 (Chairman, since 2005) Founder of Crystal Geyser
Water Company, and President
of Crystal Geyser Roxane
Water Company.
- ------------------------------------------------------------------------------------------------------
Richard M. Leach Trustee, since 1987 Retired. Prior thereto, None
72 President of Richard M. Leach
Associates (a financial
consulting firm).
- ------------------------------------------------------------------------------------------------------
Olivia S. Mitchell Trustee, since 2006 Professor of Insurance and None
53 Risk Management, Wharton School,
University of Pennsylvania.
Director of the Boettner
Center on Pensions and
Retirement. Research Associate
and Board Member, Penn Aging
Research Center. Research
Associate, National Bureau of
Economic Research.
- ------------------------------------------------------------------------------------------------------
27
WELLS FARGO ADVANTAGE BALANCED FUND OTHER INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
NON-INTERESTED TRUSTEES (CONTINUED)
- ------------------------------------------------------------------------------------------------------
POSITION HELD AND PRINCIPAL OCCUPATIONS DURING
NAME AND AGE LENGTH OF SERVICE ** PAST FIVE YEARS OTHER DIRECTORSHIPS
- ------------------------------------------------------------------------------------------------------
Timothy J. Penny Trustee, since 1996 Senior Counselor to the public None
54 relations firm of Himle-Horner,
and Senior Fellow at the
Humphrey Institute, Minneapolis,
Minnesota (a public policy
organization).
- ------------------------------------------------------------------------------------------------------
Donald C. Willeke Trustee, since 1996 Principal of the law firm of None
65 Willeke & Daniels.
- ------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEE***
- ------------------------------------------------------------------------------------------------------
POSITION HELD AND PRINCIPAL OCCUPATIONS DURING
NAME AND AGE LENGTH OF SERVICE ** PAST FIVE YEARS OTHER DIRECTORSHIPS
- ------------------------------------------------------------------------------------------------------
J. Tucker Morse Trustee, since 1987 Private Investor/Real Estate None
61 Developer. Prior thereto,
Chairman of White Point
Capital, until 2005.
- ------------------------------------------------------------------------------------------------------
OFFICERS
- ------------------------------------------------------------------------------------------------------
POSITION HELD AND PRINCIPAL OCCUPATIONS DURING
NAME AND AGE LENGTH OF SERVICE PAST FIVE YEARS OTHER DIRECTORSHIPS
- ------------------------------------------------------------------------------------------------------
Karla M. Rabusch President, since 2003 Executive Vice President of None
46 Wells Fargo Bank, N.A. and
President of Wells Fargo Funds
Management, LLC. Senior Vice
President and Chief
Administrative Officer of Wells
Fargo Funds Management, LLC
from 2001 to 2003.
- ------------------------------------------------------------------------------------------------------
C. David Messman Secretary, since 2000 Vice President and Managing None
45 Senior Counsel of Wells Fargo
Bank, N.A. and Senior Vice
President and Secretary of Wells
Fargo Funds Management, LLC.
Vice President and Senior
Counsel of Wells Fargo Bank,
N.A. from 1996 to 2003.
- ------------------------------------------------------------------------------------------------------
28
OTHER INFORMATION (UNAUDITED) WELLS FARGO ADVANTAGE BALANCED FUND
- --------------------------------------------------------------------------------
OFFICERS (CONTINUED)
- ------------------------------------------------------------------------------------------------------
POSITION HELD AND PRINCIPAL OCCUPATIONS DURING
NAME AND AGE LENGTH OF SERVICE PAST FIVE YEARS OTHER DIRECTORSHIPS
- ------------------------------------------------------------------------------------------------------
A. Erdem Cimen Treasurer, since 2006 Vice President of Wells Fargo None
32 Bank, N.A. and Vice President
of Financial Operations for
Wells Fargo Funds Management,
LLC. Vice President and Group
Finance Officer of Wells Fargo
Bank, N.A. Auto Finance Group
from 2004 to 2006. Vice
President of Portfolio Risk
Management for Wells Fargo
Bank, N.A. Auto Finance Group
in 2004. Vice President of
Portfolio Research and
Analysis for Wells Fargo
Bank, N.A. Auto Finance Group
from 2001 to 2004. Director of
Small Business Services Risk
Management for American
Express Travel Related
Services from 2000 to 2001.
- ------------------------------------------------------------------------------------------------------
* The Statement of Additional Information includes additional
information about the Funds' Trustees and is available, without
charge, upon request, by calling 1-800-222-8222 or by visiting the
Funds' Web site at WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
** Length of service dates reflects a Trustee's commencement of service
with the Trust's predecessor entities.
*** As of March 31, 2006, one of the seven Trustees is considered an
"interested person" of the Trusts as defined in the Investment
Company Act of 1940. The interested Trustee, J. Tucker Morse, is
affiliated with a government securities dealer that is registered
under the Securities Exchange Act of 1934, which is not itself
affiliated with Wells Fargo Funds Management, LLC.
29
WELLS FARGO ADVANTAGE BALANCED FUND OTHER INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
BOARD CONSIDERATION OF AND CONTINUATION OF INVESTMENT ADVISORY AND SUBADVISORY
AGREEMENTS:
BALANCED FUND
- --------------------------------------------------------------------------------
Section 15(c) of the Investment Company Act of 1940 (the "1940 Act")
contemplates that the Board of Trustees (the "Board") of Wells Fargo Funds Trust
(the "Trust"), including a majority of the Trustees who have no direct or
indirect interest in the investment advisory and subadvisory agreements and are
not "interested persons" of the Trust, as defined in the 1940 Act (the
"Independent Trustees"), will annually review and consider the continuation of
the investment advisory and subadvisory agreements. In this regard, the Board
reviewed and re-approved, during the six months covered by this report: (i) an
investment advisory agreement with Wells Fargo Funds Management, LLC ("Funds
Management") for the Balanced Fund (the "Fund"); and (ii) an investment
subadvisory agreement with Wells Capital Management Incorporated ("Wells Capital
Management") for the Fund. The investment advisory agreement with Funds
Management and the investment subadvisory agreement with Wells Capital
Management are collectively referred to as the "Advisory Agreements."
More specifically, at a meeting held on March 31, 2006, the Board,
including the Independent Trustees advised by their independent legal counsel,
considered the factors and reached the conclusions described below relating to
the selection of Funds Management and Wells Capital Management and the
continuation of the Advisory Agreements. Prior to the March 31, 2006 meeting,
the Board, including the Independent Trustees, met in person and telephonically
a number of times, both with Funds Management and in private sessions relating
to the advisory contract approvals. The Independent Trustees were assisted in
their evaluation by independent legal counsel, from whom they received separate
legal advice and with whom they met separately from Funds Management.
NATURE, EXTENT AND QUALITY OF SERVICES
- --------------------------------------------------------------------------------
The Board received and considered various data and information regarding
the nature, extent and quality of services provided to the Fund by Funds
Management and Wells Capital Management under the Advisory Agreements. The Board
also considered responses of Funds Management and Wells Capital Management to a
detailed set of requests submitted by the Independent Trustees' independent
legal counsel on behalf of such Trustees. The Board reviewed and considered the
data and information, which included, among other things, information about the
background and experience of senior management and the expertise of, and amount
of attention devoted to the Fund by, investment personnel of Funds Management
and Wells Capital Management. In this regard, the Board specifically reviewed
the qualifications, backgrounds and responsibilities of the portfolio managers
primarily responsible for day-today portfolio management services for the Fund.
The Board evaluated the ability of Funds Management and Wells Capital
Management, based on their respective resources, reputations and other
attributes, to attract and retain highly qualified investment professionals,
including research, advisory, and supervisory personnel. In this regard, the
Board considered information regarding Funds Management's and Wells Capital
Management's compensation program for its personnel involved in the management
of the Fund.
The Board further considered the compliance programs and compliance
records of Funds Management and Wells Capital Management. In addition, the Board
took into account the administrative services provided to the Fund by Funds
Management and its affiliates. In considering these matters, the Board
considered not only the specific information presented in connection with the
meeting, but also the knowledge gained over the course of interacting with Funds
Management about various topics, including Funds Management's oversight of
service providers, such as Wells Capital Management.
Based on the above factors, together with those referenced below, the
Board concluded that it was generally satisfied with the nature, extent and
quality of the investment advisory services provided to the Fund by Funds
Management and Wells Capital Management.
FUND PERFORMANCE AND EXPENSES
- --------------------------------------------------------------------------------
The Board considered the performance results for the Fund over various
time periods ended December 31, 2005. The Board also considered these results,
as applicable, in comparison to the median performance results of the group of
funds that was determined by Lipper Inc. ("Lipper") to be the most similar to
the Fund (the "Peer Group") and to the median performance of a broader universe
of relevant funds as determined by Lipper (the "Universe"), as well as to the
Fund's benchmark index. Lipper is an independent provider of investment company
data. The Board was provided with a description of the methodology used by
Lipper to select the mutual funds in the Fund's Peer Group and Universe. The
Board noted that the Fund's performance was below the median performance of its
Peer Group for all time periods, however, the Board also noted that there had
been a portfolio management change for the Fund during the year and that
performance had since stabilized.
30
OTHER INFORMATION (UNAUDITED) WELLS FARGO ADVANTAGE BALANCED FUND
- --------------------------------------------------------------------------------
The Board received and considered information regarding the Fund's net
operating expense ratio and its various components, including contractual
advisory fees, actual advisory fees, actual non-management fees, Rule 12b-1 and
non-Rule 12b-1 service fees, fee waivers/caps and/or expense reimbursements. The
Board also considered comparisons of these fees to the expense information for
the Fund's Peer Group and Universe, which comparative data was provided by
Lipper. The Board noted that the net operating expense ratio of the Fund was
below the Fund's Peer Group's median net operating expense ratio.
Based on the above-referenced considerations and other factors, the Board
concluded that the overall performance and expense results supported the
re-approval of the Advisory Agreements for the Fund.
INVESTMENT ADVISORY AND SUBADVISORY FEE RATES
- --------------------------------------------------------------------------------
The Board reviewed and considered the contractual investment advisory fee
rates payable by the Funds to Funds Management for investment advisory services,
both on a stand-alone basis and on a combined basis with the Fund's
administration fee rates (the "Advisory Agreement Rates"). The Board took into
account the separate administrative services covered by the administration fee
rates. The Board also reviewed and considered the contractual investment
subadvisory fee rates (the "Subadvisory Agreement Rates") payable by Funds
Management to Wells Capital Management for investment subadvisory services. In
addition, the Board reviewed and considered the existing fee waiver/cap
arrangements applicable to the Advisory Agreement Rates and considered the
Advisory Agreement Rates after taking the waivers/caps into account (the "Net
Advisory Rates").
The Board received and considered information comparing the Advisory
Agreement Rates and Net Advisory Rates with those of the other funds in the Peer
Group. The Board noted that the Advisory Agreement Rates and the Net Advisory
Rates for the Fund were not appreciably higher than the median rates of the
Fund's Peer Group. In addition, the Board concluded that the combined investment
advisory/administration fee rate for the Fund (before and after waivers/caps
and/or expense reimbursements) was reasonable in relation to the Fund's Peer
Group, and reasonable in relation to the services provided.
The Board also reviewed and considered the Subadvisory Agreement Rates and
concluded that the Subadvisory Agreement Rates were fair and equitable, based on
its consideration of the factors described above.
PROFITABILITY
- --------------------------------------------------------------------------------
The Board received and considered a detailed profitability analysis of
Funds Management based on the Advisory Agreement Rates and Net Advisory Rates,
as well as on other relationships between the Fund on the one hand and Funds
Management affiliates on the other. The Board concluded that, in light of the
costs of providing investment management and other services to the Fund, the
profits and other ancillary benefits that Funds Management and its affiliates
received with regard to providing these services to such series were not
unreasonable. The Board did not consider a separate profitability analysis of
Wells Capital Management, as its separate profitability from its relationship
with the Fund was not a material factor in determining whether to renew the
agreement.
ECONOMIES OF SCALE
- --------------------------------------------------------------------------------
The Board received and considered information regarding the potential for
realization of any future economies of scale. However, the Board acknowledged
the inherent limitations of any analysis of an investment adviser's economies of
scale and of any attempt to correlate breakpoints with such economies, stemming
largely from the Board's understanding that economies of scale are realized, if
at all, by an investment adviser across a variety of products and services, not
just with respect to a single fund. The Board concluded that any actual or
potential economies of scale are, or will be, shared reasonably with Fund
shareholders most particularly through Advisory Agreement Rate breakpoints
applicable to the Fund.
INFORMATION ABOUT SERVICES TO OTHER CLIENTS
- --------------------------------------------------------------------------------
The Board also received and considered information about the nature and
extent of services and fee rates offered by Funds Management to other similarly
situated series of the Trust, and those offered by Wells Capital Management to
other clients, including other registered investment companies and separate
accounts. The Board concluded that the Advisory Agreement Rates, the Subadvisory
Agreement Rates and the Net Advisory Rates were within a reasonable range of the
fee rates offered to others by Funds Management and Wells Capital Management,
giving effect to differences in services covered by such fee rates.
31
WELLS FARGO ADVANTAGE BALANCED FUND OTHER INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
OTHER BENEFITS TO FUNDS MANAGEMENT AND WELLS CAPITAL MANAGEMENT
- --------------------------------------------------------------------------------
The Board received and considered information regarding potential
"fall-out" or ancillary benefits received by Funds Management and its affiliates
(including Wells Capital Management) as a result of their relationship with the
Fund. Such benefits could include, among others, benefits directly attributable
to the relationship of Funds Management and Wells Capital Management with the
Fund and benefits potentially derived from an increase in Funds Management's and
Wells Capital Management's business as a result of their relationship with the
Fund (such as the ability to market to shareholders other financial products
offered by Funds Management and its affiliates (including Wells Capital
Management)).
The Board also considered the effectiveness of the policies of the Fund in
seeking the best execution of portfolio transactions, whether and to what extent
soft dollar credits are sought and how any such credits are utilized, any
benefits that may be realized by using an affiliated broker, the extent to which
efforts are made to recapture transaction costs, and the controls applicable to
brokerage allocation procedures. The Board also reviewed Funds Management's and
Wells Capital Management's methods for allocating portfolio investment
opportunities among the Fund and other clients.
OTHER FACTORS AND BROADER REVIEW
- --------------------------------------------------------------------------------
The Board also considered the markets for distribution of the Fund,
including the principal channels through which the Fund's shares are offered and
sold. The Board noted that the Fund is part of one of the few fund families that
have both direct-to-fund and intermediary distribution.
As discussed above, the Board reviewed detailed materials received from
Funds Management and Wells Capital Management annually as part of the
re-approval process under Section 15(c) of the 1940 Act. The Board also reviews
and assesses the quality of the services that the Fund receives throughout the
year. In this regard, the Board reviews reports of Funds Management and Wells
Capital Management at each of its quarterly meetings, which include, among other
things, a portfolio review and fund performance reports. In addition, the Board
confers with the portfolio managers of the Fund at various times throughout the
year.
After considering the above-described factors and based on its
deliberations and its evaluation of the information described above, the Board
concluded that approval of the continuation of the Advisory Agreements for the
Fund was in the best interest of the Fund and its shareholders. Accordingly, the
Board unanimously approved the continuation of the Advisory Agreements for an
additional one-year period.
32
LIST OF ABBREVIATIONS WELLS FARGO ADVANTAGE BALANCED FUND
- --------------------------------------------------------------------------------
The following is a list of common abbreviations for terms and entities which may
have appeared in this report.
ABAG -- Association of Bay Area Governments
ADR -- American Depositary Receipts
AMBAC -- American Municipal Bond Assurance Corporation
AMT -- Alternative Minimum Tax
ARM -- Adjustable Rate Mortgages
BART -- Bay Area Rapid Transit
CDA -- Community Development Authority
CDSC -- Contingent Deferred Sales Charge
CGIC -- Capital Guaranty Insurance Company
CGY -- Capital Guaranty Corporation
CMT -- Constant Maturity Treasury
COFI -- Cost of Funds Index
Connie Lee -- Connie Lee Insurance Company
COP -- Certificate of Participation
CP -- Commercial Paper
CTF -- Common Trust Fund
DW&P -- Department of Water & Power
DWR -- Department of Water Resources
EDFA -- Education Finance Authority
FFCB -- Federal Farm Credit Bank
FGIC -- Financial Guaranty Insurance Corporation
FHA -- Federal Housing Authority
FHLB -- Federal Home Loan Bank
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
FRN -- Floating Rate Notes
FSA -- Financial Security Assurance, Inc
GDR -- Global Depositary Receipt
GNMA -- Government National Mortgage Association
GO -- General Obligation
HFA -- Housing Finance Authority
HFFA -- Health Facilities Financing Authority
IDA -- Industrial Development Authority
IDR -- Industrial Development Revenue
LIBOR -- London Interbank Offered Rate
LLC -- Limited Liability Corporation
LOC -- Letter of Credit
LP -- Limited Partnership
MBIA -- Municipal Bond Insurance Association
MFHR -- Multi-Family Housing Revenue
MUD -- Municipal Utility District
MTN -- Medium Term Note
PCFA -- Pollution Control Finance Authority
PCR -- Pollution Control Revenue
PFA -- Public Finance Authority
PLC -- Private Placement
PSFG -- Public School Fund Guaranty
RAW -- Revenue Anticipation Warrants
RDA -- Redevelopment Authority
RDFA -- Redevelopment Finance Authority
R&D -- Research & Development
SFHR -- Single Family Housing Revenue
SFMR -- Single Family Mortgage Revenue
SLMA -- Student Loan Marketing Association
STEERS -- Structured Enhanced Return Trust
TBA -- To Be Announced
TRAN -- Tax Revenue Anticipation Notes
USD -- Unified School District
V/R -- Variable Rate
WEBS -- World Equity Benchmark Shares
XLCA -- XL Capital Assurance
33
THIS PAGE IS INTENTIONALLY LEFT BLANK --
[LOGO]
WELLS ADVANTAGE
FARGO FUNDS
More information about WELLS FARGO This report and the financial
ADVANTAGE FUNDS(SM) is available free statements contained herein are
upon request. To obtain literature, submitted for the general information
please write, e-mail, visit the of the shareholders of WELLS FARGO
Funds' Web site, or call: ADVANTAGE FUNDS. If this report is
used for promotional purposes,
WELLS FARGO ADVANTAGE FUNDS distribution of the report must be
P.O. Box 8266 accompanied or preceded by a current
Boston, MA 02266-8266 prospectus. For a prospectus
containing more complete information,
E-mail: wfaf@wellsfargo.com including charges and expenses, call
Web site: www.wellsfargo.com/ 1-800-222-8222 or visit the Funds'
advantagefunds Web site at
Retail Investment www.wellsfargo.com/advantagefunds.
Professionals: 1-888-877-9275 Please consider the investment
Institutional Investment objective, risks, charges, and
Professionals: 1-866-765-0778 expenses of the investment carefully
before investing. This and other
information about WELLS FARGO
ADVANTAGE FUNDS can be found in the
current prospectus. Read the
prospectus carefully before you
invest or send money.
Wells Fargo Funds Management, LLC, a
wholly owned subsidiary of Wells
Fargo & Company, provides investment
advisory and administrative services
for WELLS FARGO ADVANTAGE FUNDS.
Other affiliates of Wells Fargo &
Company provide sub-advisory and
other services for the Funds. The
Funds are distributed by WELLS FARGO
FUNDS DISTRIBUTOR, LLC, Member
NASD/SIPC, an affiliate of Wells
Fargo & Company.
-----------------------------------------------------
NOT FDIC INSURED o NO BANK GUARANTEE o MAY LOSE VALUE
-----------------------------------------------------
- --------------------------------------------------------------------------------
(C) 2006 Wells Fargo www.wellsfargo.com/advantagefunds RT056262 05-31
Advantage Funds, LLC. SAAFNLD/SAR109 03/06
All rights reserved.
[LOGO]
WELLS ADVANTAGE
FARGO FUNDS
- --------------------------------------------------------------------------------
MARCH 31, 2006
- --------------------------------------------------------------------------------
Semi-Annual Report
[PHOTO OMITTED]
- --------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
Wells Fargo Advantage C&B Large Cap Value Fund
Wells Fargo Advantage Diversified Equity Fund
Wells Fargo Advantage Diversified Small Cap Fund
Wells Fargo Advantage Equity Income Fund
Wells Fargo Advantage Equity Value Fund
Wells Fargo Advantage Growth Equity Fund
Wells Fargo Advantage International Value Fund
Wells Fargo Advantage Large Cap Appreciation Fund
Wells Fargo Advantage Large Company Growth Fund
Wells Fargo Advantage Small Company Growth Fund
Wells Fargo Advantage Small Company Value Fund
WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
Letter to Shareholders .................................................... 1
- --------------------------------------------------------------------------------
Performance Highlights
- --------------------------------------------------------------------------------
C&B Large Cap Value Fund ............................................... 2
Diversified Equity Fund ................................................ 4
Diversified Small Cap Fund ............................................. 6
Equity Income Fund ..................................................... 8
Equity Value Fund ...................................................... 10
Growth Equity Fund ..................................................... 12
International Value Fund ............................................... 14
Large Cap Appreciation Fund ............................................ 16
Large Company Growth Fund .............................................. 18
Small Company Growth Fund .............................................. 20
Small Company Value Fund ............................................... 22
Fund Expenses (Unaudited) ................................................. 24
- --------------------------------------------------------------------------------
Portfolio of Investments
- --------------------------------------------------------------------------------
C&B Large Cap Value Fund ............................................... 28
Diversified Equity Fund ................................................ 29
Diversified Small Cap Fund ............................................. 30
Equity Income Fund ..................................................... 31
Equity Value Fund ...................................................... 32
Growth Equity Fund ..................................................... 33
International Value Fund ............................................... 34
Large Cap Appreciation Fund ............................................ 35
Large Company Growth Fund .............................................. 36
Small Company Growth Fund .............................................. 37
Small Company Value Fund ............................................... 38
Financial Statements
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities ................................... 40
Statements of Operations ............................................... 42
Statements of Changes in Net Assets .................................... 44
Financial Highlights ................................................... 56
Notes to Financial Highlights .......................................... 66
Notes to Financial Statements ............................................. 67
- --------------------------------------------------------------------------------
Master Portfolios
Portfolio of Investments
- --------------------------------------------------------------------------------
C&B Large Cap Value Portfolio .......................................... 75
Disciplined Growth Portfolio ........................................... 80
Equity Income Portfolio ................................................ 85
Equity Value Portfolio ................................................. 91
Index Portfolio ........................................................ 97
International Core Portfolio ........................................... 114
International Growth Portfolio ......................................... 118
International Index Portfolio .......................................... 122
International Value Portfolio .......................................... 149
Large Cap Appreciation Portfolio ....................................... 154
Large Company Growth Portfolio ......................................... 160
Small Cap Index Portfolio .............................................. 164
Small Company Growth Portfolio ......................................... 184
Small Company Value Portfolio .......................................... 192
Strategic Small Cap Value Portfolio .................................... 199
Financial Statements
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities ................................... 208
Statements of Operations ............................................... 212
Statements of Changes in Net Assets .................................... 216
Financial Highlights ................................................... 222
Notes to Financial Highlights .......................................... 224
Notes to Financial Statements ............................................. 225
- --------------------------------------------------------------------------------
Other Information (Unaudited) ............................................. 231
- --------------------------------------------------------------------------------
List of Abbreviations ..................................................... 237
- --------------------------------------------------------------------------------
-----------------------------------------------------
NOT FDIC INSURED-NO BANK GUARANTEE-MAY LOSE VALUE
-----------------------------------------------------
LETTER TO SHAREHOLDERS WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
- --------------------------------------------------------------------------------
DEAR VALUED SHAREHOLDER,
Enclosed please find the Wells Fargo Advantage Equity Gateway Funds
semi-annual report for the six-month period that ended March 31, 2006. On the
following pages, you will find a discussion of each Fund that includes
performance highlights, changes to the Fund, and the portfolio managers'
strategic outlook. You will also find facts and figures about each Fund.
ECONOMIC OVERVIEW
- --------------------------------------------------------------------------------
The U.S. economy continued to show signs of strength, even though real
Gross Domestic Product (GDP) grew at a rate of only 1.7% for the fourth quarter
of 2005. Volatile energy prices led to subpar performance for the sector during
the six-month period, but overall stock market performance was solid with the
S&P 500 Index reporting gains in excess of 6%. Financials and industrials were
leaders among the different sectors.
During the first quarter of 2006, economic growth gained momentum with
preliminary estimates pegging GDP growth at a rate of 5%. The strong growth came
despite continued interest rate hikes by the Federal Reserve Board (the Fed).
The Federal funds rate as of the end of March stood at 4.75%. Mortgage interest
rates inched upward by about half a percentage point by the close of the first
quarter of 2006. Data on mortgage applications, the number of homes listed for
sale, and median sale prices confirmed that the housing market had lost some of
its impetus. Sluggish housing sales were seen in the condominium markets and in
regions that experienced rapid price appreciation. Sales of single-family homes
held up well, but speculative demand for housing has definitely cooled.
STOCKS REMAIN INCONSISTENT
- --------------------------------------------------------------------------------
Strong corporate earnings helped the equity markets in the fourth quarter
of 2005 while record prices for crude oil and concerns of a slowdown in
worldwide economic growth capped and often reversed rallies. Nevertheless, in
the United States, the fundamentals of strong earnings and low inflation kept
the equity markets steady overall in 2005.
During the first month of 2006, equity markets surged higher as
speculation surfaced that the Fed might stop raising interest rates and move to
a more neutral interest rate environment. Almost all domestic and international
indices reported positive numbers for January. While many of the same indices
saw a decline in performance for February, some stayed in positive territory.
In March, almost every equity market index moved higher to produce the
best first quarter results for the S&P 500 Index and the Dow Jones Industrial
Average since 1999 and 2002, respectively. The NASDAQ ended the first quarter of
2006 at a five-year high. International markets remained strong and continued to
lead most domestic markets.
LOOKING AHEAD
- --------------------------------------------------------------------------------
Even though equities enjoyed a first-quarter rally in 2006, high energy
prices and rising interest rates may eventually slow investor enthusiasm for
stocks. We may see long-term interest rates move higher, though their increases
could be restrained if inflation remains steady and investor confidence does not
falter. These are just a few of the reasons why we believe successful investing
includes taking a balanced approach by maintaining a portfolio that is
diversified among stocks and bonds and keeping a long-term perspective. While
diversification may not prevent losses in a downturn, it may help reduce them
and keep you on track to reach your financial goals. To help you reach your
diversification goals, we offer funds across every key category, each guided by
skillful, independent money managers--our subadvisers--chosen for their focused
attention to a particular investment style. We believe that our insistence on
seeking skillful, independent money managers who share our dedication to
pursuing consistent, long-term results offers our investors the firm footing
they need to navigate changing market conditions as they move forward to their
financial destinations.
Thank you for choosing WELLS FARGO ADVANTAGE FUNDS SM--we appreciate your
confidence in us. If you have any questions about your investment, please
contact your investment professional, or call us at 1-800-222-8222. You may also
visit our Web site at www.wellsfargo.com/advantagefunds.
Sincerely,
/s/ Karla M. Rabusch
Karla M. Rabusch
President
WELLS FARGO ADVANTAGE FUNDS
1
WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE C&B LARGE CAP VALUE FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The WELLS FARGO ADVANTAGE C&B LARGE CAP VALUE FUND (the Fund) seeks
maximum long-term total return, consistent with minimizing risk to principal.
ADVISER SUBADVISER
Wells Fargo Funds Management, LLC Cooke & Bieler, L.P.
FUND MANAGERS FUND INCEPTION DATE
Kermit S. Eck, CFA 05/15/1990
Daren C. Heitman, CFA
Michael M. Meyer, CFA
James R. Norris
Edward W. O'Connor, CFA
R. James O'Neil, CFA
Mehul Trivedi, CFA
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Class A shares returned 7.17% 1 (excluding sales charges) for
the six-month period that ended March 31, 2006, underperforming the Russell 1000
(R) Value Index 2, which returned 7.27%, and outperforming the S&P 500 Index 3,
which returned 6.38% during the same period.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB SITE AT
WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. FOR CLASS
B SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%. PERFORMANCE
INCLUDING SALES CHARGE ASSUMES THE SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. CLASS D, ADMINISTRATOR CLASS AND INSTITUTIONAL CLASS SHARES ARE SOLD
WITHOUT SALES CHARGES OR CONTINGENT DEFERRED SALES CHARGE. OTHER FEES AND
EXPENSES APPLY TO AN INVESTMENT IN THE FUND AND ARE DESCRIBED IN THE FUND'S
CURRENT PROSPECTUS.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
The Fund reported positive returns and underperformed its benchmark the
Russell 1000 (R) Value Index and outperformed the S&P 500 Index. The Fund's
investment style of seeking companies with competitive advantages, strong and
stable cash flows, and financial flexibility competed somewhat with the strong
market advances in equities that lacked the fundamentals we like to see. During
the period, the Fund's underweighted positions in telecommunications and
financials detracted from performance, and the worst performers included
Vodafone Group, Gannett Co., Flextronics International, Comcast Corp., and
Parametric Technology. The Fund's best performing holdings resided primarily in
the consumer durables, retail, and industrial sectors and included names such as
Engelhard Corp., Manpower, State Street, Dover Corp., and FedEx.
WHAT CHANGES DID YOU MAKE TO THE FUND'S HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
We review three key areas before buying or selling a stock. First, we
research the company's financial and managerial strength. Second, we evaluate
the solid growth prospects of any underlying businesses. Third, we look for
bargain valuations. As a result, we purchased the following new additions:
American Power Conversion, Diageo plc, Johnson & Johnson, and Quest Diagnostics,
Inc. To make room for these new holdings, we sold several equities that had
reached their valuation targets: Applied Materials Inc., Fed Ex, Parametric
Technology, and Principal Financial Group. Other factors can affect our decision
to buy, sell, or hold a stock. For example, the uncertainty surrounding the
outcome of the Plavix exclusivity issue prompted the sale of Bristol Myers
Squibb, and the elimination of Engelhard was a result of the price run-up based
on the proposed bid by suitor BASF. We also liquidated the Fund's position in
Leggett & Platt, a diversified manufacturer, due to concerns regarding consumer
discretionary spending, alternative mattress materials (foam), and Far Eastern
manufacturing competition.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
We believe that prospects for the U.S. stock market are fair at this
point, and in this environment, we expect that selectivity and a focus on
quality will become increasingly important factors in determining investment
performance. As always, we remain committed to our "high quality, low risk"
investment style seeks to identify and research competitively advantaged,
financially strong companies at attractive valuations.
STOCK FUNDS SHOULD ONLY BE CONSIDERED FOR LONG-TERM GOALS AS VALUES
FLUCTUATE IN RESPONSE TO THE ACTIVITIES OF INDIVIDUAL COMPANIES AND GENERAL
MARKET AND ECONOMIC CONDITIONS. CONSULT THE FUND'S PROSPECTUS FOR ADDITIONAL
INFORMATION ON THESE AND OTHER RISKS.
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2006, and are those of the Fund's
managers. The views are subject to change at any time in response to changing
circumstances in the market and are not intended to predict or guarantee the
future performance of any individual security, market sector or the markets
generally, or the WELLS FARGO ADVANTAGE C&B LARGE CAP VALUE FUND.
1 The Fund's adviser has committed through February 28, 2007, to waive fees
and/or reimburse expenses to the extent necessary to maintain a certain net
operating expense ratio for the Fund. Actual reductions of operating expenses
can increase total return to shareholders. Without these reductions, the Fund's
returns would have been lower.
Effective December 6, 2004, the Fund is a gateway feeder fund that invests
all of its assets in a single master portfolio of the Master Trust with a
substantially similar investment objective and substantially similar investment
strategies. References to the investment activities of the Fund are intended to
refer to the investment activities of the master portfolio in which it invests.
Prior to April 11, 2005, the WELLS FARGO ADVANTAGE C&B LARGE CAP VALUE
FUND was named the Wells Fargo C&B Large Cap Value Fund. Performance shown for
the Class A, Class B, Class C, Class D, Administrator Class (formerly named the
Institutional Class) and Institutional Class (formerly named the Select Class)
shares of the WELLS FARGO ADVANTAGE C&B LARGE CAP VALUE FUND for periods prior
to July 26, 2004, reflects the performance of the unnamed share class of the C&B
Large Cap Value Portfolio, the predecessor fund, adjusted to reflect applicable
sales charges and expenses.
2 The Russell 1000(R) Value Index measures performance of those Russell 1000
companies with lower price-to-book ratios and lower forecasted growth values.
You cannot invest directly in an Index. The Fund has selected the Russell
1000(R) Value Index to replace the S&P 500 Index as its benchmark index going
forward because the Russell 1000(R) Value Index is more representative of the
breadth of the Fund's holdings.
2
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
Including Sales Charge
-----------------------------------
6-Month* 1-Year 5-Year 10-Year
- --------------------------------------------------------------------------------------------------------------
C&B Large Cap Value Fund - Class A (Incept. date 07/26/2004) 0.96 1.52 7.69 10.54
- --------------------------------------------------------------------------------------------------------------
C&B Large Cap Value Fund - Class B (Incept. date 07/26/2004) 1.80 1.93 7.93 10.42
- --------------------------------------------------------------------------------------------------------------
C&B Large Cap Value Fund - Class C (Incept. date 07/26/2004) 5.80 5.93 8.23 10.42
- --------------------------------------------------------------------------------------------------------------
C&B Large Cap Value Fund - Class D (Incept. date 05/15/1990)
- --------------------------------------------------------------------------------------------------------------
C&B Large Cap Value Fund - Administrator Class (Incept. date 07/26/2004)
- --------------------------------------------------------------------------------------------------------------
C&B Large Cap Value Fund - Institutional Class (Incept. date 07/26/2004)
- --------------------------------------------------------------------------------------------------------------
Benchmarks
- --------------------------------------------------------------------------------------------------------------
Russell 1000(R) Value Index 2
- --------------------------------------------------------------------------------------------------------------
S&P 500 Index 3
- --------------------------------------------------------------------------------------------------------------
Excluding Sales Charge
-----------------------------------
6-Month* 1-Year 5-Year 10-Year
- --------------------------------------------------------------------------------------------------------------
C&B Large Cap Value Fund - Class A (Incept. date 07/26/2004) 7.17 7.67 8.98 11.19
- --------------------------------------------------------------------------------------------------------------
C&B Large Cap Value Fund - Class B (Incept. date 07/26/2004) 6.80 6.93 8.23 10.42
- --------------------------------------------------------------------------------------------------------------
C&B Large Cap Value Fund - Class C (Incept. date 07/26/2004) 6.80 6.93 8.23 10.42
- --------------------------------------------------------------------------------------------------------------
C&B Large Cap Value Fund - Class D (Incept. date 05/15/1990) 7.16 7.79 8.98 11.19
- --------------------------------------------------------------------------------------------------------------
C&B Large Cap Value Fund - Administrator Class (Incept. date 07/26/2004) 7.27 8.02 9.07 11.23
- --------------------------------------------------------------------------------------------------------------
C&B Large Cap Value Fund - Institutional Class (Incept. date 07/26/2004) 7.44 8.32 9.19 11.30
- --------------------------------------------------------------------------------------------------------------
Benchmarks
- --------------------------------------------------------------------------------------------------------------
Russell 1000(R) Value Index 2 7.27 13.31 7.79 10.97
- --------------------------------------------------------------------------------------------------------------
S&P 500 Index 3 6.38 11.72 3.97 8.95
- --------------------------------------------------------------------------------------------------------------
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FUND CHARACTERISTICS 4 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------
Beta** 0.92
- --------------------------------------------------------------------
Price to Earnings Ratio (trailing 12 months) 15.70x
- --------------------------------------------------------------------
Price to Book Ratio 4.16x
- --------------------------------------------------------------------
Median Market Cap. ($B) $ 21.03
- --------------------------------------------------------------------
Portfolio Turnover 6*** 15%
- --------------------------------------------------------------------
** A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE RUSSELL 1000(R)
VALUE INDEX BETA IS 1.00 BY DEFINITION.
*** THIS MEASURE IS BASED ON SIX MONTHS OF THE FUND'S ACTIVITY.
SECTOR DISTRIBUTION 4 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTD BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Discretionary 19%
Consumer Staples 11%
Energy 5%
Financials 22%
Health Care 12%
Industrials 22%
Information Technology 6%
Telecommunications Services 3%
TEN LARGEST EQUITY HOLDINGS 4,5 (AS OF MARCH 31, 2006)
- ---------------------------------------------------------------------
Bank of America Corporation 3.60%
- ---------------------------------------------------------------------
Dover Corporation 3.38%
- ---------------------------------------------------------------------
McDonald's Corporation 3.22%
- ---------------------------------------------------------------------
Exxon Mobil Corporation 3.02%
- ---------------------------------------------------------------------
American Express Company 3.01%
- ---------------------------------------------------------------------
Vodafone Group plc ADR 2.99%
- ---------------------------------------------------------------------
State Street Corporation 2.94%
- ---------------------------------------------------------------------
Manpower Incorporated 2.74%
- ---------------------------------------------------------------------
Omnicom Group Incorporated 2.72%
- ---------------------------------------------------------------------
Molex Incorporated Class A 2.69%
GROWTH OF $10,000 INVESTMENT 7 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
WELLS FARGO WELLS FARGO
ADVANTAGE C&B LARGE ADVANTAGE C&B LARGE RUSSELL
CAP VALUE FUND - CAP VALUE FUND - 1000(R) S&P
DATE CLASS A INSTITUTIONAL CLASS VALUE INDEX 500 INDEX
- ----------- ------------------- ------------------- ----------- ---------
3/31/1996 9,428 10,000 10,000 10,000
4/30/1996 9,568 10,149 10,038 10,147
5/31/1996 9,748 10,340 10,163 10,408
6/30/1996 9,754 10,346 10,172 10,447
7/31/1996 9,272 9,835 9,787 9,986
8/31/1996 9,470 10,045 10,067 10,196
9/30/1996 9,953 10,557 10,468 10,769
10/31/1996 10,197 10,817 10,873 11,067
11/30/1996 10,853 11,512 11,661 11,902
12/31/1996 10,726 11,378 11,512 11,666
1/31/1997 11,057 11,729 12,070 12,396
2/28/1997 11,215 11,896 12,248 12,492
3/31/1997 10,971 11,637 11,807 11,980
4/30/1997 11,303 11,989 12,303 12,694
5/31/1997 12,220 12,962 12,990 13,466
6/30/1997 12,797 13,574 13,548 14,069
7/31/1997 13,763 14,599 14,566 15,188
8/31/1997 13,144 13,943 14,048 14,337
9/30/1997 13,858 14,700 14,896 15,121
10/31/1997 13,301 14,108 14,481 14,616
11/30/1997 13,611 14,437 15,121 15,293
12/31/1997 13,728 14,562 15,562 15,556
1/31/1998 13,604 14,430 15,341 15,727
2/28/1998 14,793 15,691 16,374 16,861
3/31/1998 15,372 16,305 17,376 17,724
4/30/1998 15,268 16,195 17,492 17,905
5/31/1998 14,936 15,843 17,233 17,597
6/30/1998 14,812 15,711 17,454 18,312
7/31/1998 14,084 14,939 17,147 18,118
8/31/1998 12,046 12,778 14,595 15,500
9/30/1998 12,764 13,539 15,433 16,493
10/31/1998 14,173 15,033 16,629 17,834
11/30/1998 14,601 15,487 17,404 18,915
12/31/1998 14,832 15,732 17,996 20,004
1/31/1999 14,256 15,121 18,140 20,840
2/28/1999 14,406 15,280 17,884 20,192
3/31/1999 14,869 15,772 18,254 21,000
4/30/1999 16,177 17,159 19,959 21,813
5/31/1999 16,001 16,972 19,739 21,298
6/30/1999 16,579 17,586 20,312 22,480
7/31/1999 16,289 17,278 19,717 21,778
8/31/1999 15,671 16,623 18,985 21,670
9/30/1999 15,155 16,075 18,323 21,076
10/31/1999 15,269 16,196 19,378 22,410
11/30/1999 15,218 16,142 19,227 22,865
12/31/1999 15,137 16,057 19,319 24,212
1/31/2000 14,598 15,485 18,689 22,997
2/29/2000 13,712 14,545 17,301 22,562
3/31/2000 15,422 16,358 19,412 24,769
4/30/2000 15,596 16,542 19,186 24,023
5/31/2000 16,253 17,239 19,388 23,531
6/30/2000 15,472 16,411 18,502 24,112
7/31/2000 15,627 16,576 18,733 23,736
8/31/2000 16,460 17,460 19,775 25,210
9/30/2000 16,678 17,691 19,957 23,879
10/31/2000 16,931 17,959 20,447 23,778
11/30/2000 16,912 17,938 19,689 21,905
12/31/2000 18,087 19,185 20,675 22,012
1/31/2001 18,432 19,551 20,754 22,793
2/28/2001 18,186 19,290 20,177 20,717
3/31/2001 17,713 18,788 19,465 19,405
4/30/2001 18,133 19,234 20,418 20,911
5/31/2001 18,948 20,099 20,878 21,051
6/30/2001 18,324 19,436 20,414 20,540
7/31/2001 18,695 19,830 20,371 20,339
8/31/2001 18,646 19,778 19,555 19,067
9/30/2001 17,594 18,662 18,178 17,529
10/31/2001 17,694 18,768 18,022 17,863
11/30/2001 18,785 19,926 19,069 19,234
12/31/2001 19,279 20,450 19,519 19,403
1/31/2002 19,254 20,422 19,368 19,120
2/28/2002 19,640 20,832 19,399 18,751
3/31/2002 20,621 21,873 20,317 19,456
4/30/2002 20,466 21,709 19,620 18,277
5/31/2002 20,698 21,955 19,718 18,143
6/30/2002 19,413 20,592 18,586 16,851
7/31/2002 17,890 18,976 16,858 15,539
8/31/2002 18,071 19,168 16,986 15,640
9/30/2002 16,008 16,980 15,097 13,941
10/31/2002 16,784 17,803 16,216 15,167
11/30/2002 18,025 19,119 17,237 16,058
12/31/2002 17,179 18,222 16,489 15,116
1/31/2003 16,602 17,610 16,090 14,721
2/28/2003 15,880 16,844 15,661 14,500
3/31/2003 16,080 17,056 15,687 14,640
4/30/2003 17,873 18,958 17,068 15,846
5/31/2003 19,146 20,308 18,170 16,679
6/30/2003 19,447 20,627 18,397 16,893
7/31/2003 19,794 20,996 18,673 17,190
8/31/2003 20,577 21,826 18,965 17,525
9/30/2003 20,060 21,278 18,779 17,340
10/31/2003 21,541 22,848 19,928 18,319
11/30/2003 21,860 23,187 20,198 18,481
12/31/2003 22,928 24,320 21,443 19,449
1/31/2004 23,277 24,690 21,821 19,807
2/29/2004 23,975 25,431 22,288 20,082
3/31/2004 23,842 25,289 22,093 19,779
4/30/2004 23,580 25,011 21,554 19,468
5/31/2004 23,842 25,289 21,774 19,735
6/30/2004 24,391 25,872 22,288 20,118
7/31/2004 23,662 25,099 21,973 19,452
8/31/2004 23,750 25,192 22,286 19,530
9/30/2004 24,012 25,501 22,631 19,741
10/31/2004 24,099 25,593 23,007 20,043
11/30/2004 24,740 26,304 24,170 20,855
12/31/2004 25,795 27,423 24,980 21,564
1/31/2005 25,117 26,703 24,536 21,037
2/28/2005 25,559 27,204 25,349 21,479
3/31/2005 25,294 26,922 25,002 21,099
4/30/2005 24,793 26,421 24,554 20,698
5/31/2005 25,383 27,079 25,146 21,356
6/30/2005 25,412 27,110 25,420 21,386
7/31/2005 26,149 27,892 26,155 22,182
8/31/2005 25,677 27,392 26,042 21,980
9/30/2005 25,412 27,141 26,407 22,158
10/31/2005 24,970 26,672 25,736 21,788
11/30/2005 25,943 27,705 26,578 22,612
12/31/2005 25,874 27,679 26,740 22,621
1/31/2006 26,539 28,387 27,777 23,220
2/28/2006 26,600 28,484 27,947 23,283
3/31/2006 27,235 29,161 28,324 23,571
- --------------------------------------------------------------------------------
3 The S&P 500 Index consists of 500 stocks chosen for market size, 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.
4 Fund characteristics, equity holdings and sector distribution are subject to
change. Cash and cash equivalents are not reflected in the calculations of fund
characteristics, equity holdings and sector distribution.
5 The Ten Largest Equity Holdings are calculated based on the market value of
the Master Trust portfolio securities allocable to the Fund divided by total
market value of the portfolio of investments of the Fund. See Notes to Financial
Statements for a discussion of the Master Trust.
6 Portfolio turnover rate represents the activity from the Funds investment in a
single Master Portfolio.
7 The chart compares the performance of the WELLS FARGO ADVANTAGE C&B LARGE CAP
VALUE FUND Class A shares and Institutional Class shares for the most recent ten
years with the Russell 1000(R) Value Index and S&P 500 Index. The chart assumes
a hypothetical investment of $10,000 in Class A shares and Institutional Class
shares and reflects all operating expenses and, for Class A shares, assumes the
maximum initial sales charge of 5.75%.
3
WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE DIVERSIFIED EQUITY FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The WELLS FARGO ADVANTAGE DIVERSIFIED EQUITY FUND (the Fund) seeks
long-term capital appreciation with moderate annual return volatility by
diversifying its investments among different equity investment styles.
ADVISER FUND MANAGERS
Wells Fargo Funds Management, LLC Thomas C. Biwer, CFA
Christian L. Chan, CFA
SUBADVISERS FOR MASTER PORTFOLIOS Andrew Owen, CFA
Artisan Partners Limited Partnership
Cadence Capital Management LLC FUND INCEPTION DATE
Cooke & Bieler, L.P. 12/31/1988
LSV Asset Management
New Star Institutional Managers Limited
Peregrine Capital Management, Inc.
Smith Asset Management Group, L.P.
SSgA Funds Management
Systematic Financial Management, L.P.
Wells Capital Management Incorporated
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Class A shares returned 7.72% 1 (excluding sales charges)
for the six-month period that ended March 31, 2006, outperforming the S&P 500
Index 2, which returned 6.38% and underperforming the Diversified Equity
Composite Index 3, which returned 8.56% during the same period.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTION OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB SITE AT
WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. FOR CLASS
B SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%. PERFORMANCE
INCLUDING SALES CHARGE ASSUMES THE SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. ADMINISTRATOR CLASS SHARES ARE SOLD WITHOUT A FRONT-END SALES CHARGE OR
CONTINGENT DEFERRED SALES CHARGE. OTHER FEES AND EXPENSES APPLY TO AN INVESTMENT
IN THE FUND AND ARE DESCRIBED IN THE FUND'S CURRENT PROSPECTUS.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
The Fund underperformed its composite benchmark for the six-month
period. Of the 15 underlying portfolios in the Fund, five outperformed their
respective benchmarks while ten underperformed. The weakest performer was the
Equity Income Portfolio in the large-cap value category, followed by the
International Core Portfolio and the Small Company Value Portfolio.
Significant outperforming components included the International Growth
Portfolio, the Small Company Growth Portfolio, and the Large-Cap Appreciation
Portfolio in the large growth category.
WHAT CHANGES DID YOU MAKE TO THE FUND'S HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
During the period, a small position of 1.67% was initiated in the
Strategic Small Cap Value Portfolio. The source of funds for this investment
was a reduction in the Fund's position in the Small Company Value Portfolio.
The overall weighting in the small company value category was unchanged at
3.75%.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
The Fund remains in its neutral allocation of 25% each in large-cap
value, large-cap core, and large-cap growth categories; 10% in the small
company category; and 15% in the international equity category.
Our outlook for U.S. stocks is positive, given the solid underpinnings
of corporate earnings growth, ample liquidity in the financial system,
reasonable valuations, healthy technical readings, and neutral investor
sentiment. Our outlook for non-U.S. equities is similarly positive, supported
by firming global economic growth and attractive valuations.
STOCK FUNDS SHOULD ONLY BE CONSIDERED FOR LONG-TERM GOALS AS VALUES
FLUCTUATE IN RESPONSE TO THE ACTIVITIES OF INDIVIDUAL COMPANIES AND GENERAL
MARKET AND ECONOMIC CONDITIONS. INVESTMENT STRATEGIES THAT EMPHASIZE
PARTICULAR MARKET SEGMENTS OR FEWER SECURITIES TEND TO INCREASE THE TOTAL
RISK OF AN INVESTMENT (RELATIVE TO THE BROADER MARKET). THIS FUND IS EXPOSED
TO SMALL COMPANY SECURITIES RISK, AND FOREIGN INVESTMENTS RISK. CONSULT THE
FUND'S PROSPECTUS FOR ADDITIONAL INFORMATION ON THESE AND OTHER RISKS.
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2006, and are those of the Fund's
managers. The views are subject to change at any time in response to changing
circumstances in the market and are not intended to predict or guarantee the
future performance of any individual security, market sector or the markets
generally, or the WELLS FARGO ADVANTAGE DIVERSIFIED EQUITY FUND.
1 The Fund's adviser has committed through January 31, 2007, to waive fees
and/or reimburse expenses to the extent necessary to maintain a certain net
operating expense ratio for the Fund. Actual reductions of operating expenses
can increase total return to shareholders. Without these reductions, the Fund's
returns would have been lower.
The Fund is a gateway blended Fund that invests all of its assets in two
or more master portfolios of the Master Trust in varying proportions. References
to the investment activities of the Fund are intended to refer to the investment
activities of the master portfolios in which it invests.
Prior to April 11, 2005, the WELLS FARGO ADVANTAGE DIVERSIFIED EQUITY FUND
was named the Wells Fargo Diversified Equity Fund. Performance shown for the
Administrator Class shares (formerly named Institutional Class shares) for
periods prior to November 8, 1999, reflects the performance of the Institutional
Class shares of the Norwest Advantage Diversified Equity Fund, its predecessor
fund. Performance shown for Class A, Class B and Class C shares of the Fund
prior to November 8, 1999, reflects the performance of the applicable share
class of the Norwest Advantage Diversified Equity Fund, its predecessor fund.
Performance shown for the Class A shares prior to May 2, 1996, reflects the
performance of the Administrator Class shares of the Fund adjusted to reflect
Class A sales charges. Performance shown for Class B shares of the Fund prior to
May 6, 1996, reflects the performance of the Administrator Class shares adjusted
to reflect Class B sales charges and expenses. Performance shown for Class C
shares of the Fund prior to October 1, 1998, reflects the performance of the
Administrator Class shares of the Fund adjusted to reflect Class C sales charges
and expenses.
4
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
Including Sales Charge
----------------------------------------
6-Month* 1-Year 5-Year 10-Year
- ------------------------------------------------------------------------------------------------------------------
Diversified Equity Fund - Class A (Incept. date 05/02/1996) 1.53 8.16 3.29 7.74
- ------------------------------------------------------------------------------------------------------------------
Diversified Equity Fund - Class B (Incept. date 05/06/1996) 2.31 8.91 3.40 7.57
- ------------------------------------------------------------------------------------------------------------------
Diversified Equity Fund - Class C (Incept. date 10/01/1998) 6.31 12.93 3.74 7.60
- ------------------------------------------------------------------------------------------------------------------
Diversified Equity Fund - Administrator Class (Incept. date 11/11/1994)
- ------------------------------------------------------------------------------------------------------------------
Benchmarks
- ------------------------------------------------------------------------------------------------------------------
S&P 500 Index 2
- ------------------------------------------------------------------------------------------------------------------
Diversified Equity Composite Index 3
- ------------------------------------------------------------------------------------------------------------------
Excluding Sales Charge
----------------------------------------
6-Month* 1-Year 5-Year 10-Year
- ------------------------------------------------------------------------------------------------------------------
Diversified Equity Fund - Class A (Incept. date 05/02/1996) 7.72 14.76 4.52 8.38
- ------------------------------------------------------------------------------------------------------------------
Diversified Equity Fund - Class B (Incept. date 05/06/1996) 7.31 13.91 3.74 7.57
- ------------------------------------------------------------------------------------------------------------------
Diversified Equity Fund - Class C (Incept. date 10/01/1998) 7.31 13.93 3.74 7.60
- ------------------------------------------------------------------------------------------------------------------
Diversified Equity Fund - Administrator Class (Incept. date 11/11/1994) 7.84 15.05 4.79 8.52
- ------------------------------------------------------------------------------------------------------------------
Benchmarks
- ------------------------------------------------------------------------------------------------------------------
S&P 500 Index 2 6.38 11.72 3.97 8.95
- ------------------------------------------------------------------------------------------------------------------
Diversified Equity Composite Index 3 8.56 15.79 6.14 8.87
- ------------------------------------------------------------------------------------------------------------------
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FUND CHARACTERISTICS 4 (AS OF MARCH 31, 2006)
- -----------------------------------------------------------------
Beta** 0.99
- -----------------------------------------------------------------
Price to Earnings Ratio (trailing 12 months) 18.55x
- -----------------------------------------------------------------
Price to Book Ratio 3.26x
- -----------------------------------------------------------------
Median Market Cap. ($B) $ 21.94
- -----------------------------------------------------------------
Portfolio Turnover*** 17%
- -----------------------------------------------------------------
** A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE DIVERSIFIED
EQUITY COMPOSITE INDEX BETA IS 1.00 BY DEFINITION.
*** THIS MEASURE IS BASED ON SIX MONTHS OF THE FUND'S ACTIVITY.
SECTOR DISTRIBUTION 4 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTD BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Discretionary 10%
Consumer Staples 5%
Energy 6%
Financials 19%
Health Care 11%
Industrials 10%
Information Technology 18%
Materials 2%
Telecommunications Services 2%
Utilities 2%
International 15%
TEN LARGEST EQUITY HOLDINGS 4,5 (AS OF MARCH 31, 2006)
- -----------------------------------------------------------------
Microsoft Corporation 2.21%
- -----------------------------------------------------------------
Goldman Sachs Group Incorporated 1.75%
- -----------------------------------------------------------------
Exxon Mobil Corporation 1.68%
- -----------------------------------------------------------------
American International Group Incorporated 1.40%
- -----------------------------------------------------------------
eBay Incorporated 1.39%
- -----------------------------------------------------------------
Medtronic Incorporated 1.25%
- -----------------------------------------------------------------
Bank of America Corporation 1.24%
- -----------------------------------------------------------------
Cisco Systems Incorporated 1.24%
- -----------------------------------------------------------------
General Electric Company 1.17%
- -----------------------------------------------------------------
Citigroup Incorporated 1.08%
GROWTH OF $10,000 INVESTMENT 6 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
WELLS FARGO
WELLS FARGO ADVANTAGE DIVERSIFIED
ADVANTAGE DIVERSIFIED EQUITY EQUITY
DIVERSIFIED EQUITY FUND - ADMINISTRATOR COMPOSITE
DATE FUND - CLASS A CLASS S&P 500 INDEX INDEX
- ----------- ------------------ -------------------- ------------- -----------
3/31/1996 9425 10000 10,000 10,000
4/30/1996 9689 10280 10,147 10,209
5/31/1996 9913 10514 10,408 10,408
6/30/1996 9877 10479 10,447 10,390
7/31/1996 9397 9970 9,986 9,888
8/31/1996 9588 10173 10,196 10,136
9/30/1996 10101 10717 10,769 10,644
10/31/1996 10169 10789 11,067 10,803
11/30/1996 10808 11467 11,902 11,515
12/31/1996 10694 11343 11,666 11,373
1/31/1997 11212 11896 12,396 11,850
2/28/1997 11209 11893 12,492 11,897
3/31/1997 10753 11409 11,980 11,458
4/30/1997 11206 11889 12,694 11,952
5/31/1997 11970 12696 13,466 12,765
6/30/1997 12530 13291 14,069 13,333
7/31/1997 13396 14213 15,188 14,238
8/31/1997 12710 13486 14,337 13,577
9/30/1997 13461 14282 15,121 14,348
10/31/1997 12914 13702 14,616 13,768
11/30/1997 13255 14060 15,293 14,195
12/31/1997 13441 14261 15,556 14,443
1/31/1998 13595 14424 15,727 14,616
2/28/1998 14555 15443 16,861 15,649
3/31/1998 15193 16116 17,724 16,381
4/30/1998 15417 16354 17,905 16,535
5/31/1998 15091 16012 17,597 16,184
6/30/1998 15575 16525 18,312 16,670
7/31/1998 15305 16239 18,118 16,415
8/31/1998 13048 13844 15,500 13,972
9/30/1998 13717 14554 16,493 14,710
10/31/1998 14636 15529 17,834 15,879
11/30/1998 15505 16451 18,915 16,811
12/31/1998 16445 17449 20,004 17,779
1/31/1999 16920 17949 20,840 18,277
2/28/1999 16431 17433 20,192 17,648
3/31/1999 17014 18052 21,000 18,287
4/30/1999 17647 18724 21,813 19,171
5/31/1999 17366 18426 21,298 18,738
6/30/1999 18317 19434 22,480 19,657
7/31/1999 17939 19033 21,778 19,237
8/31/1999 17741 18823 21,670 19,053
9/30/1999 17280 18331 21,076 18,685
10/31/1999 18119 19220 22,410 19,715
11/30/1999 18641 19778 22,865 20,263
12/31/1999 19807 21016 24,212 21,614
1/31/2000 18963 20117 22,997 20,672
2/29/2000 18960 20113 22,562 20,868
3/31/2000 20552 21802 24,769 22,372
4/30/2000 20058 21278 24,023 21,561
5/31/2000 19610 20806 23,531 21,032
6/30/2000 20153 21379 24,112 21,626
7/31/2000 19849 21056 23,736 21,179
8/31/2000 20932 22210 25,210 22,470
9/30/2000 20043 21262 23,879 21,464
10/31/2000 20081 21302 23,778 21,147
11/30/2000 18849 20000 21,905 19,419
12/31/2000 19434 20616 22,012 19,803
1/31/2001 19748 20949 22,793 20,441
2/28/2001 18164 19273 20,717 18,602
3/31/2001 16899 17931 19,405 17,360
4/30/2001 18252 19371 20,911 18,775
5/31/2001 18290 19420 21,051 18,790
6/30/2001 17825 18927 20,540 18,412
7/31/2001 17557 18646 20,339 18,092
8/31/2001 16702 17744 19,067 17,131
9/30/2001 15219 16171 17,529 15,565
10/31/2001 15609 16588 17,863 15,961
11/30/2001 16719 17771 19,234 17,094
12/31/2001 16970 18046 19,403 17,345
1/31/2002 16711 17771 19,120 17,016
2/28/2002 16384 17427 18,751 16,735
3/31/2002 17089 18182 19,456 17,505
4/30/2002 16452 17504 18,277 16,766
5/31/2002 16239 17283 18,143 16,613
6/30/2002 15287 16271 16,851 15,513
7/31/2002 13800 14694 15,539 14,173
8/31/2002 13860 14761 15,640 14,225
9/30/2002 12322 13121 13,941 12,743
10/31/2002 13252 14120 15,167 13,695
11/30/2002 14000 14920 16,058 14,513
12/31/2002 13216 14083 15,116 13,738
1/31/2003 12781 13624 14,721 13,358
2/28/2003 12513 13342 14,500 13,117
3/31/2003 12572 13405 14,640 13,193
4/30/2003 13604 14511 15,846 14,318
5/31/2003 14393 15357 16,679 15,200
6/30/2003 14627 15607 16,893 15,431
7/31/2003 15036 16048 17,190 15,805
8/31/2003 15331 16366 17,525 16,172
9/30/2003 15181 16212 17,340 16,091
10/31/2003 16111 17208 18,319 17,076
11/30/2003 16286 17399 18,481 17,334
12/31/2003 17058 18227 19,449 18,216
1/31/2004 17333 18526 19,807 18,591
2/29/2004 17578 18787 20,082 18,865
3/31/2004 17449 18654 19,779 18,699
4/30/2004 17041 18223 19,468 18,298
5/31/2004 17213 18406 19,735 18,531
6/30/2004 17509 18728 20,118 18,928
7/31/2004 16822 17998 19,452 18,217
8/31/2004 16827 18007 19,530 18,281
9/30/2004 17127 18333 19,741 18,602
10/31/2004 17384 18613 20,043 18,955
11/30/2004 18247 19540 20,855 19,907
12/31/2004 18848 20189 21,564 20,628
1/31/2005 18339 19644 21,037 20,096
2/28/2005 18745 20084 21,479 20,586
3/31/2005 18371 19689 21,099 20,194
4/30/2005 17885 19173 20,698 19,725
5/31/2005 18516 19854 21,356 20,370
6/30/2005 18670 20019 21,386 20,533
7/31/2005 19478 20895 22,182 21,348
8/31/2005 19380 20790 21,980 21,249
9/30/2005 19572 21005 22,158 21,539
10/31/2005 19226 20634 21,788 21,099
11/30/2005 19959 21425 22,612 21,878
12/31/2005 20025 21506 22,621 22,039
1/31/2006 20686 22221 23,220 22,897
2/28/2006 20702 22238 23,283 22,924
3/31/2006 21083 22652 23,571 23,382
- --------------------------------------------------------------------------------
2 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.
3 Diversified Equity Composite Index is weighted 25% in the S&P 500 Index, 25%
in the Russell 1000(R) Value Index, 25% in the Russell 1000(R) Growth Index, 15%
in the MSCI EAFE(R) Index, 10% in the Russell 2000(R) Index. The RUSSELL 1000(R)
VALUE INDEX measures the performance of those Russell 1000 companies with lower
price-to-book ratios and lower forecasted growth values. THE RUSSELL 1000(R)
GROWTH INDEX measures the performance of those Russell 1000 companies with
higher price-to-book ratios and higher forecasted growth values. The MSCI
EAFE(R) INDEX, THE MORGAN STANLEY CAPITAL INTERNATIONAL EUROPE, AUSTRALASIA AND
FAR EAST ("MSCI EAFE") STOCK INDEX is an unmanaged group of securities widely
regarded by investors to be representations of the stock markets of Europe,
Australasia and the Far East. The RUSSELL 2000(R) INDEX which measures the
performance of the 2,000 smallest companies in the Russell 3000 Index, which
represents approximately 8% of the total market capitalization of the Russell
3000 Index. You cannot invest directly in an Index.
4 Fund characteristics, equity holdings and sector distribution are subject to
change. Cash and cash equivalents are not reflected in the calculations of fund
characteristics, equity holdings and sector distribution.
5 The Ten Largest Equity Holdings are calculated based on the market value of
the Master Trust portfolio securities allocable to the Fund divided by total
market value of the portfolio of investments of the Fund. See Notes to Financial
Statements for a discussion of the Master Trust.
6 The chart compares the performance of the WELLS FARGO ADVANTAGE DIVERSIFIED
EQUITY FUND Class A shares and Administrator Class shares for the most recent
ten years with the S&P 500 Index and Diversified Equity Composite Index. The
chart assumes a hypothetical investment of $10,000 in Class A shares and
Administrator Class shares and reflects all operating expenses and, for Class A
shares, assumes the maximum initial sales charge of 5.75%.
5
WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE DIVERSIFIED SMALL CAP FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The WELLS FARGO ADVANTAGE DIVERSIFIED SMALL CAP FUND (the Fund) seeks
long-term capital appreciation with moderate annual return volatility by
diversifying its investments across different small-capitalization equity
investment styles.
ADVISER FUND MANAGERS
Wells Fargo Funds Management, LLC Thomas C. Biwer, CFA
Christian L. Chan, CFA
SUBADVISERS FOR MASTER PORTFOLIOS Andrew Owen, CFA
Peregrine Capital Management, Inc.
Wells Capital Management Incorporated FUND INCEPTION DATE
12/31/1997
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Administrator Class shares returned 14.22% 1 for the
six-month period that ended March 31, 2006, underperforming the Russell 2000
(R) Index 2, which returned 15.23% during the same period.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTION OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED. CURRENT
MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB SITE AT
WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
ADMINISTRATOR CLASS SHARES ARE SOLD WITHOUT A FRONT-END SALES CHARGE OR
CONTINGENT DEFERRED SALES CHARGE. OTHER FEES AND EXPENSES APPLY TO AN INVESTMENT
IN THE FUND AND ARE DESCRIBED IN THE FUND'S CURRENT PROSPECTUS.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
The Fund underperformed its benchmark for the six-month period. The
shortfall was primarily due to the Fund's Small Cap Index Portfolio. The
Small Cap Index Portfolio is designed to replicate the returns of the S&P
Small Cap 600 Index 6, which underperformed the Fund's overall benchmark
index, the Russell 2000 (R) Index, for the period. The Small Company Value
Portfolio underperformed its style benchmark while the Small Company Growth
Portfolio outperformed its benchmark.
WHAT CHANGES DID YOU MAKE TO THE FUND'S HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
During the period, a 16.67% position was initiated in the Strategic
Small Cap Value Portfolio, which is managed by multiple managers. The source
of funds for this investment was a reduction in the Fund's position in the
Small Company Value Portfolio. The overall weighting in the small company
value category was unchanged at 33.33%.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
The Fund remains in its neutral allocation of one-third each in
small-company value, small-company core, and small-company growth categories.
Our outlook for U.S. stocks is positive, given the solid underpinnings of
corporate earnings growth, ample liquidity in the financial system,
reasonable valuations, positive technical readings, and neutral investor
sentiment. Small company stocks in particular have continued to show
impressive relative strength recently, even after seven years of
outperforming the general market. While the trend of small company
outperformance is still in place, the cycle is clearly extended. Prospects
for small companies are more sensitive to economic growth, which may slow
somewhat in future quarters in response to the lagged effects of higher
interest rates and energy costs.
STOCK FUNDS SHOULD ONLY BE CONSIDERED FOR LONG-TERM GOALS AS VALUES
FLUCTUATE IN RESPONSE TO THE ACTIVITIES OF INDIVIDUAL COMPANIES AND GENERAL
MARKET AND ECONOMIC CONDITIONS. FUNDS THAT INVEST IN SMALLER COMPANIES INVOLVE
ADDITIONAL RISKS BECAUSE THESE COMPANIES OFTEN HAVE LIMITED FINANCIAL RESOURCES,
AND THEIR 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.
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2006, and are those of the Fund's
managers. The views are subject to change at any time in response to changing
circumstances in the market and are not intended to predict or guarantee the
future performance of any individual security, market sector or the markets
generally, or the WELLS FARGO ADVANTAGE DIVERSIFIED SMALL CAP FUND.
1 The Fund's adviser has committed through January 31, 2007, to waive fees
and/or reimburse expenses to the extent necessary to maintain a certain net
operating expense ratio for the Fund. Actual reductions of operating expenses
can increase total return to shareholders. Without these reductions, the Fund's
returns would have been lower.
The Fund is a gateway blended Fund that invests all of its assets in two
or more Master Portfolios of the Master Trust in varying proportions. References
to the investment activities of the Fund are intended to refer to the investment
activities of the Master Portfolios in which it invests.
Prior to April 11, 2005, the WELLS FARGO ADVANTAGE DIVERSIFIED SMALL CAP
FUND-Administrator Class was named the Wells Fargo Diversified Small Cap Fund-
Institutional Class. Performance shown for the Administrator Class shares for
periods prior to November 8, 1999, reflects the performance shown for the
Institutional Class shares of the Norwest Advantage Diversified Small Cap Fund,
its predecessor fund.
6
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN 1 (%) (MARCH 31, 2006)
- --------------------------------------------------------------------------------
6-Month* 1-Year 5-Year Life of Fund
- --------------------------------------------------------------------------------------------------------------------------
Diversified Small Cap Fund - Administrator Class (Incept. date 12/31/1997) 14.22 25.73 13.87 8.85
- --------------------------------------------------------------------------------------------------------------------------
Benchmark
- --------------------------------------------------------------------------------------------------------------------------
Russell 2000(R) Index 2 15.23 25.85 12.59 8.35
- --------------------------------------------------------------------------------------------------------------------------
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FUND CHARACTERISTICS 3 (AS OF MARCH 31, 2006)
- -----------------------------------------------------------------
Beta** 0.97
- -----------------------------------------------------------------
Price to Earnings Ratio (trailing 12 months) 22.42x
- -----------------------------------------------------------------
Price to Book Ratio 2.58x
- -----------------------------------------------------------------
Median Market Cap. ($B) $ 0.91
- -----------------------------------------------------------------
Portfolio Turnover*** 36%
- -----------------------------------------------------------------
** A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE RUSSELL 2000 (R)
INDEX BETA IS 1.00 BY DEFINITION.
*** THIS MEASURE IS BASED ON SIX MONTHS OF THE FUND'S ACTIVITY.
SECTOR DISTRIBUTION 3 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTD BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Discretionary 16%
Consumer Staples 3%
Energy 7%
Financials 15%
Health Care 14%
Industrials 15%
Information Technology 22%
Materials 5%
Telecommunications Services 1%
Utilities 2%
TEN LARGEST EQUITY HOLDINGS 3,4 (AS OF MARCH 31, 2006)
- -----------------------------------------------------------------
Integrated Device Technology Incorporated 0.61%
- -----------------------------------------------------------------
Hercules Incorporated 0.51%
- -----------------------------------------------------------------
Esterline Technologies Company 0.50%
- -----------------------------------------------------------------
Oxford Industries Incorporated 0.49%
- -----------------------------------------------------------------
PMC-Sierra Incorporated 0.48%
- -----------------------------------------------------------------
LKQ Corporation 0.48%
- -----------------------------------------------------------------
CapitalSource Incorporated 0.47%
- -----------------------------------------------------------------
Petrohawk Energy Corporation 0.46%
- -----------------------------------------------------------------
Parametric Technology Corporation 0.46%
- -----------------------------------------------------------------
Onyx Pharmaceuticals Incorporated 0.45%
- -----------------------------------------------------------------
GROWTH OF $10,000 INVESTMENT 5 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTD BY A LINE CHART IN THE PRINTED MATERIAL.]
WELLS FARGO
ADVANTAGE DIVERSIFIED
SMALL CAP FUND - RUSSELL 2000
DATE ADMINISTRATOR CLASS (R) INDEX
- ----------- --------------------- ------------
12/31/1997 10000 10,000
1/31/1998 9880 9,842
2/28/1998 10690 10,569
3/31/1998 11170 11,005
4/30/1998 11220 11,065
5/31/1998 10520 10,469
6/30/1998 10450 10,491
7/31/1998 9660 9,641
8/31/1998 7600 7,769
9/30/1998 7970 8,377
10/31/1998 8320 8,719
11/30/1998 8750 9,176
12/31/1998 9140 9,744
1/31/1999 9040 9,873
2/28/1999 8260 9,074
3/31/1999 8150 9,215
4/30/1999 8720 10,041
5/29/1999 8990 10,187
6/30/1999 9500 10,648
7/31/1999 9450 10,356
8/31/1999 9070 9,973
9/30/1999 9020 9,975
10/31/1999 9020 10,016
11/30/1999 9370 10,614
12/31/1999 10040 11,815
1/31/2000 9570 11,625
2/29/2000 10400 13,544
3/31/2000 10760 12,652
4/30/2000 10690 11,890
5/31/2000 10350 11,197
6/30/2000 10810 12,173
7/31/2000 10520 11,781
8/31/2000 11440 12,680
9/30/2000 11180 12,307
10/31/2000 11090 11,759
11/30/2000 10180 10,551
12/31/2000 11219 11,457
1/31/2001 11475 12,054
2/28/2001 11016 11,263
3/31/2001 10516 10,713
4/30/2001 11261 11,550
5/31/2001 11507 11,835
6/30/2001 11805 12,243
7/31/2001 11549 11,580
8/31/2001 11208 11,206
9/30/2001 9781 9,698
10/31/2001 10143 10,265
11/30/2001 10890 11,060
12/31/2001 11452 11,742
1/31/2002 11560 11,620
2/28/2002 11506 11,302
3/31/2002 12411 12,210
4/30/2002 12691 12,322
5/31/2002 12239 11,774
6/30/2002 11776 11,190
7/31/2002 10020 9,501
8/31/2002 10095 9,477
9/30/2002 9373 8,797
10/31/2002 9621 9,079
11/30/2002 10149 9,889
12/31/2002 9786 9,338
1/31/2003 9449 9,079
2/28/2003 9144 8,805
3/31/2003 9275 8,919
4/30/2003 10036 9,764
5/31/2003 10993 10,812
6/30/2003 11275 11,008
7/31/2003 12015 11,697
8/31/2003 12569 12,232
9/30/2003 12308 12,006
10/31/2003 13254 13,015
11/30/2003 13657 13,477
12/31/2003 14084 13,750
1/31/2004 14467 14,347
2/29/2004 14599 14,476
3/31/2004 14752 14,611
4/30/2004 14205 13,865
5/31/2004 14380 14,086
6/30/2004 15004 14,679
7/31/2004 14139 13,691
8/31/2004 13997 13,621
9/30/2004 14675 14,260
10/31/2004 15026 14,541
11/30/2004 16240 15,802
12/31/2004 16776 16,269
1/31/2005 16105 15,591
2/28/2005 16458 15,854
3/31/2005 16011 15,401
4/30/2005 15163 14,519
5/31/2005 16082 15,470
6/30/2005 16741 16,067
7/31/2005 17659 17,085
8/31/2005 17424 16,769
9/30/2005 17624 16,821
10/31/2005 16847 16,298
11/30/2005 17824 17,088
12/31/2005 17907 17,010
1/31/2006 19372 18,536
2/28/2006 19321 18,484
3/31/2006 20131 19,380
- --------------------------------------------------------------------------------
2 Russell 2000(R) Index measures the performance of the 2,000 smallest companies
in the Russell 3000 Index, which represents approximately 8% of the total market
capitalization of the Russell 3000 Index. You cannot invest directly in an
Index.
3 Fund characteristics, equity holdings and sector distribution are subject to
change. Cash and cash equivalents are not reflected in the calculations of fund
characteristics, equity holdings and sector distribution.
4 The Ten Largest Equity Holdings are calculated based on the market value of
the Master Trust portfolio securities allocable to the Fund divided by total
market value of the portfolio of investments of the Fund. See Notes to Financial
Statements for a discussion of the Master Trust.
5 The chart compares the performance of the WELLS FARGO ADVANTAGE DIVERSIFIED
SMALL CAP FUND Administrator Class shares for the life of the Fund with the
Russell 2000(R) Index. The chart assumes a hypothetical investment of $10,000 in
Administrator Class shares and reflects all operating expenses.
6 S&P SmallCap 600 Index measures performance of the small company segment of
the U.S. market. The SmallCap 600 is gaining wide acceptance as the preferred
benchmark for both active and passive management due to its low turnover and
greater liquidity. Approximately $8 billion is indexed to the S&P SmallCap 600.
You cannot invest directly in an Index.
7
WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE EQUITY INCOME FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The WELLS FARGO ADVANTAGE EQUITY INCOME FUND (the Fund) seeks long-term
capital appreciation and above-average dividend income.
ADVISER SUBADVISER
Wells Fargo Funds Management, LLC Wells Capital Management Incorporated
FUND MANAGERS FUND INCEPTION DATE
Gary J. Dunn, CFA 03/31/1989
David L. Roberts, CFA
Robert M. Thornburg
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Class A shares returned 3.43% 1 (excluding sales charges) for
the six-month period that ended March 31, 2006, underperforming the Russell 1000
(R) Value Index 2, which returned 7.27% and underperforming the S&P 500 Index 3,
which returned 6.38% during the same period.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTION OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB SITE AT
WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. FOR CLASS
B SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%. PERFORMANCE
INCLUDING SALES CHARGE ASSUMES THE SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. ADMINISTRATOR CLASS SHARES ARE SOLD WITHOUT A FRONT-END SALES CHARGE OR
CONTINGENT DEFERRED SALES CHARGE. OTHER FEES AND EXPENSES APPLY TO AN INVESTMENT
IN THE FUND AND ARE DESCRIBED IN THE FUND'S CURRENT PROSPECTUS.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
High quality, mega capitalization stocks were the biggest detractors from
the Fund's performance. Sectors that negatively impacted the Fund performances
on an absolute basis included utilities, energy, consumer staples, and health
care. Utilities, a sector that had great returns last year, retreated during the
period. For example, Dominion Resources and FPL Group were both negatively
impacted by hurricane activity in their service areas and by higher interest
rates. Oil prices declined from their record levels as demand slowed and
post-hurricane production resumed. ConocoPhillips stocks declined after the
announcement of the Burlington Resources acquisition, which may positively
impact the company in the long-term. The stock price for Altria Group moved
lower despite good fourth-quarter results in 2005 that included strong revenue
growth. Johnson & Johnson's stock price was also down for the six-month period
after announcing its first sales decline in 22 years.
Sectors that helped performance on an absolute basis included materials,
industrials, and telecommunication services. Materials company Air Products &
Chemicals reported strong year-end quarterly results, despite the negative
impact of the hurricanes in the southern United States, which interrupted
production at a number of facilities. Emerson Electric turned in back-to-back
quarters of double-digit revenue and earnings growth, thanks to higher sales of
climate-control equipment and industrial products. The price of AT&T was up more
than 15% after strong fourth quarter results were announced; the increase beat
expectations for the third straight quarter.
WHAT CHANGES DID YOU MAKE TO THE FUND'S HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
Four new equity positions were initiated during the period: Cisco Systems,
MDU Resources, SYSCO Corporation, and Biomet. The purchases helped to further
diversify the portfolio with quality holdings at reasonable valuations. There
were no significant changes in sector weights, with the exception of a 1.2%
reduction in energy, a sector where we believe earnings growth may have peaked.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
Robust first quarter economic growth in 2006 should give way to a more
reasonable 3% to 3 1/2% growth rate for the full year as interest rate hikes
temper demand. Consumer spending may soften, but business spending may
compensate for the slowdown on the consumer side. We believe the Fund is
positioned to take advantage of the higher interest rate environment with
underweightings in both financials and utilities. In addition, the
overweightings in technology and industrials should benefit from higher levels
of corporate spending. We will continue to seek investments that have the
potential to provide long-term capital appreciation and above-average dividend
income.
STOCK FUNDS SHOULD ONLY BE CONSIDERED FOR LONG-TERM GOALS AS VALUES
FLUCTUATE IN RESPONSE TO THE ACTIVITIES OF INDIVIDUAL COMPANIES AND GENERAL
MARKET AND ECONOMIC CONDITIONS. CONSULT THE FUND'S PROSPECTUS FOR ADDITIONAL
INFORMATION ON THESE AND OTHER RISKS.
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2006, and are those of the Fund's
managers. The views are subject to change at any time in response to changing
circumstances in the market and are not intended to predict or guarantee the
future performance of any individual security, market sector or the markets
generally, or the WELLS FARGO ADVANTAGE EQUITY INCOME FUND.
1 The Fund's adviser has committed through April 30, 2007, to waive fees and/or
reimburse expenses to the extent necessary to maintain a certain net operating
expense ratio for the Fund. Actual reductions of operating expenses can increase
total return to shareholders. Without these reductions, the Fund's returns would
have been lower.
The Fund is a gateway feeder fund that invests all of its assets in a
single master portfolio of the Master Trust with a substantially similar
investment objective and substantially similar investment strategies. References
to the investment activities of the Fund are intended to refer to the investment
activities of the master portfolio in which it invests.
Prior to April 11, 2005, the WELLS FARGO ADVANTAGE EQUITY INCOME FUND was
named the Wells Fargo Equity Income Fund. Performance shown for the
Administrator Class (formerly Institutional Class) shares for periods prior to
November 8, 1999, reflects the performance of the Institutional Class shares of
the Norwest Advantage Income Equity Fund, its predecessor fund. Performance
shown for Class A, Class B and Class C shares of the Fund for periods prior to
November 8, 1999, reflects the performance of the applicable share class of the
Norwest Advantage Income Equity Fund, its predecessor fund. Performance shown
for the Class A and Class B shares of the Fund for periods prior to May 2, 1996,
reflects the performance of the Administrator Class shares of the Fund adjusted
to reflect Class A and Class B sales charges and expenses, respectively.
Performance shown for the Class C shares for periods prior to October 1, 1998,
reflects the performance of the Administrator Class shares of the Fund adjusted
to reflect Class C sales charges and expenses.
8
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
Including Sales Charge
---------------------------------
6-Month* 1-Year 5-Year 10-Year
----------------------------------------------------------------------------------------------------
Equity Income Fund - Class A (Incept. date 05/02/1996) (2.52) 1.38 3.29 7.39
----------------------------------------------------------------------------------------------------
Equity Income Fund - Class B (Incept. date 05/02/1996) (1.97) 1.73 3.39 7.22
----------------------------------------------------------------------------------------------------
Equity Income Fund - Class C (Incept. date 10/01/1998) 2.04 5.76 3.75 7.22
----------------------------------------------------------------------------------------------------
Equity Income Fund - Administrator Class (Incept. date 11/11/1994)
----------------------------------------------------------------------------------------------------
Benchmarks
----------------------------------------------------------------------------------------------------
Russell 1000(R) Value Index 2
----------------------------------------------------------------------------------------------------
S&P 500 Index 3
----------------------------------------------------------------------------------------------------
Excluding Sales Charge
---------------------------------
6-Month* 1-Year 5-Year 10-Year
-----------------------------------------------------------------------------------------------------
Equity Income Fund - Class A (Incept. date 05/02/1996) 3.43 7.56 4.52 8.03
-----------------------------------------------------------------------------------------------------
Equity Income Fund - Class B (Incept. date 05/02/1996) 3.03 6.73 3.74 7.22
-----------------------------------------------------------------------------------------------------
Equity Income Fund - Class C (Incept. date 10/01/1998) 3.04 6.76 3.75 7.22
-----------------------------------------------------------------------------------------------------
Equity Income Fund - Administrator Class (Incept. date 11/11/1994) 3.55 7.83 4.79 8.20
-----------------------------------------------------------------------------------------------------
Benchmarks
-----------------------------------------------------------------------------------------------------
Russell 1000(R) Value Index 2 7.27 13.31 7.79 10.97
-----------------------------------------------------------------------------------------------------
S&P 500 Index 3 6.38 11.72 3.97 8.95
-----------------------------------------------------------------------------------------------------
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FUND CHARACTERISTICS 4 (AS OF MARCH 31, 2006)
- -----------------------------------------------------------------
Beta** 0.90
- -----------------------------------------------------------------
Price to Earnings Ratio (trailing 12 months) 15.10x
- -----------------------------------------------------------------
Price to Book Ratio 2.60x
- -----------------------------------------------------------------
Median Market Cap. ($B) $ 44.40
- -----------------------------------------------------------------
Portfolio Turnover 6*** 3%
- -----------------------------------------------------------------
** A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE RUSSELL 1000(R)
VALUE INDEX IS 1.00 BY DEFINITION.
*** THIS MEASURE IS BASED ON SIX MONTHS OF THE FUND'S ACTIVITY.
SECTOR DISTRIBUTION 4 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTD BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Discretionary 10%
Consumer Staples 8%
Energy 12%
Financials 27%
Health Care 10%
Industrials 10%
Information Technology 10%
Materials 4%
Telecommunication Services 4%
Utilities 5%
TEN LARGEST EQUITY HOLDINGS 4,5 (AS OF MARCH 31, 2006)
- -----------------------------------------------------------------
Citigroup Incorporated 4.02%
- -----------------------------------------------------------------
General Electric Company 3.59%
- -----------------------------------------------------------------
Exxon Mobil Corporation 3.18%
- -----------------------------------------------------------------
Morgan Stanley 2.92%
- -----------------------------------------------------------------
Fortune Brands Incorporated 2.73%
- -----------------------------------------------------------------
St. Paul Travelers Companies Incorporated 2.59%
- -----------------------------------------------------------------
Pepsico Incorporated 2.53%
- -----------------------------------------------------------------
3M Company 2.50%
- -----------------------------------------------------------------
E.I. du Pont de Nemours & Company 2.40%
- -----------------------------------------------------------------
Bank of America Corporation 2.39%
- -----------------------------------------------------------------
GROWTH OF $10,000 INVESTMENT 7 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTD BY A LINE CHART IN THE PRINTED MATERIAL.]
WELLS FARGO
WELLS FARGO ADVANTAGE
ADVANTAGE EQUITY INCOME -
EQUITY INCOME ADMINISTRATOR RUSSELL 1000 S&P
DATE - CLASS A CLASS (R) VALUE INDEX 500 INDEX
- ----------- ------------- --------------- --------------- ---------
3/31/1996 9,425 10,000 10,000 10,000
4/30/1996 9,561 10,144 10,038 10,147
5/31/1996 9,788 10,385 10,163 10,408
6/30/1996 9,895 10,494 10,172 10,447
7/31/1996 9,499 10,079 9,787 9,986
8/31/1996 9,627 10,215 10,067 10,196
9/30/1996 10,052 10,665 10,468 10,769
10/31/1996 10,242 10,866 10,873 11,067
11/30/1996 10,962 11,634 11,661 11,902
12/31/1996 10,759 11,416 11,512 11,666
1/31/1997 11,291 11,976 12,070 12,396
2/28/1997 11,453 12,151 12,248 12,492
3/31/1997 11,092 11,769 11,807 11,980
4/30/1997 11,450 12,148 12,303 12,694
5/31/1997 11,981 12,712 12,990 13,466
6/30/1997 12,493 13,252 13,548 14,069
7/31/1997 13,320 14,129 14,566 15,188
8/31/1997 12,675 13,445 14,048 14,337
9/30/1997 13,317 14,129 14,896 15,121
10/31/1997 12,904 13,691 14,481 14,616
11/30/1997 13,520 14,345 15,121 15,293
12/31/1997 13,779 14,616 15,562 15,556
1/31/1998 13,798 14,640 15,341 15,727
2/28/1998 14,722 15,621 16,374 16,861
3/31/1998 15,498 16,444 17,376 17,724
4/30/1998 15,640 16,590 17,492 17,905
5/31/1998 15,412 16,348 17,233 17,597
6/30/1998 15,657 16,608 17,454 18,312
7/31/1998 15,210 16,138 17,147 18,118
8/31/1998 13,300 14,108 14,595 15,500
9/30/1998 14,033 14,889 15,433 16,493
10/31/1998 15,031 15,944 16,629 17,834
11/30/1998 15,737 16,694 17,404 18,915
12/31/1998 16,234 17,225 17,996 20,004
1/31/1999 16,188 17,176 18,140 20,840
2/28/1999 16,226 17,213 17,884 20,192
3/31/1999 16,860 17,885 18,254 21,000
4/30/1999 17,730 18,812 19,959 21,813
5/31/1999 17,684 18,759 19,739 21,298
6/30/1999 18,409 19,532 20,312 22,480
7/31/1999 17,919 19,013 19,717 21,778
8/31/1999 17,621 18,692 18,985 21,670
9/30/1999 16,948 17,978 18,323 21,076
10/31/1999 17,416 18,475 19,378 22,410
11/30/1999 17,547 18,618 19,227 22,865
12/31/1999 17,576 18,651 19,319 24,212
1/31/2000 16,690 17,715 18,689 22,997
2/29/2000 15,414 16,365 17,301 22,562
3/31/2000 16,954 18,007 19,412 24,769
4/30/2000 16,872 17,923 19,186 24,023
5/31/2000 17,148 18,216 19,388 23,531
6/30/2000 16,746 17,793 18,502 24,112
7/31/2000 16,410 17,440 18,733 23,736
8/31/2000 17,331 18,422 19,775 25,210
9/30/2000 17,146 18,229 19,957 23,879
10/31/2000 17,603 18,719 20,447 23,778
11/30/2000 16,984 18,066 19,689 21,905
12/31/2000 17,865 19,006 20,675 22,012
1/31/2001 17,852 18,997 20,754 22,793
2/28/2001 17,328 18,443 20,177 20,717
3/31/2001 16,357 17,412 19,465 19,405
4/30/2001 17,445 18,576 20,418 20,911
5/31/2001 17,758 18,909 20,878 21,051
6/30/2001 17,238 18,363 20,414 20,540
7/31/2001 17,050 18,167 20,371 20,339
8/31/2001 16,687 17,784 19,555 19,067
9/30/2001 15,609 16,634 18,178 17,529
10/31/2001 15,802 16,848 18,022 17,863
11/30/2001 16,657 17,758 19,069 19,234
12/31/2001 16,851 17,970 19,519 19,403
1/31/2002 16,605 17,713 19,368 19,120
2/28/2002 16,700 17,819 19,399 18,751
3/31/2002 17,250 18,410 20,317 19,456
4/30/2002 16,710 17,834 19,620 18,277
5/31/2002 16,697 17,825 19,718 18,143
6/30/2002 15,808 16,883 18,586 16,851
7/31/2002 14,353 15,328 16,858 15,539
8/31/2002 14,418 15,402 16,986 15,640
9/30/2002 12,512 13,367 15,097 13,941
10/31/2002 13,435 14,354 16,216 15,167
11/30/2002 14,228 15,211 17,237 16,058
12/31/2002 13,499 14,433 16,489 15,116
1/31/2003 13,081 13,986 16,090 14,721
2/28/2003 12,677 13,559 15,661 14,500
3/31/2003 12,702 13,588 15,687 14,640
4/30/2003 13,722 14,681 17,068 15,846
5/31/2003 14,527 15,543 18,170 16,679
6/30/2003 14,819 15,863 18,397 16,893
7/31/2003 15,082 16,150 18,673 17,190
8/31/2003 15,149 16,222 18,965 17,525
9/30/2003 15,030 16,097 18,779 17,340
10/31/2003 15,885 17,018 19,928 18,319
11/30/2003 16,053 17,204 20,198 18,481
12/31/2003 17,010 18,226 21,443 19,449
1/31/2004 17,306 18,550 21,821 19,807
2/29/2004 17,769 19,051 22,288 20,082
3/31/2004 17,568 18,836 22,093 19,779
4/30/2004 17,281 18,533 21,554 19,468
5/31/2004 17,301 18,560 21,774 19,735
6/30/2004 17,578 18,858 22,288 20,118
7/31/2004 17,219 18,478 21,973 19,452
8/31/2004 17,355 18,635 22,286 19,530
9/30/2004 17,499 18,792 22,631 19,741
10/31/2004 17,616 18,923 23,007 20,043
11/30/2004 18,362 19,724 24,170 20,855
12/31/2004 18,903 20,308 24,980 21,564
1/31/2005 18,779 20,180 24,536 21,037
2/28/2005 19,357 20,808 25,349 21,479
3/31/2005 18,971 20,399 25,002 21,099
4/30/2005 18,618 20,020 24,554 20,698
5/31/2005 19,101 20,545 25,146 21,356
6/30/2005 19,036 20,481 25,420 21,386
7/31/2005 19,619 21,110 26,155 22,182
8/31/2005 19,504 20,993 26,042 21,980
9/30/2005 19,729 21,242 26,407 22,158
10/31/2005 19,418 20,907 25,736 21,788
11/30/2005 19,996 21,529 26,578 22,612
12/31/2005 19,879 21,416 26,740 22,621
1/31/2006 20,170 21,729 27,777 23,220
2/28/2006 20,284 21,860 27,947 23,283
3/31/2006 20,405 21,997 28,324 23,571
- --------------------------------------------------------------------------------
2 The Russell 1000(R) Value Index measures the performance of those Russell 1000
companies with lower price-to-book ratios and lower forecasted growth values.
You cannot invest directly in an Index. The Fund has selected the Russell
1000(R) Value Index to replace the S&P 500 Index as its benchmark index going
forward because the Russell 1000(R) Value Index is more representative of the
breadth of the Fund's holdings.
3 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.
4 Fund characteristics, equity holdings and sector distribution are subject to
change. Cash and cash equivalents are not reflected in the calculations of fund
characteristics, equity holdings and sector distribution.
5 The Ten Largest Equity Holdings are calculated based on the market value of
the Master Trust portfolio securities allocable to the Fund divided by total
market value of the portfolio of investments of the Fund. See Notes to Financial
Statements for a discussion of the Master Trust.
6 Portfolio turnover rate represents the activity from the Funds investment in a
single Master Portfolio.
7 The chart compares the performance of the WELLS FARGO ADVANTAGE EQUITY INCOME
FUND Class A and Administrator Class shares for the most recent ten years with
the Russell 1000(R) Value Index and S&P 500 Index. The chart assumes a
hypothetical investment of $10,000 in Class A and Administrator Class shares and
reflects all operating expenses and, for Class A shares, assumes the maximum
initial sales charge of 5.75%.
9
WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE EQUITY VALUE FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The WELLS FARGO ADVANTAGE EQUITY VALUE FUND (the Fund) seeks long-term
capital appreciation.
ADVISER SUBADVISER
Wells Fargo Funds Management, LLC Systematic Financial Management, L.P.
FUND MANAGERS FUND INCEPTION DATE
D. Kevin McCreesh, CFA 08/29/2003
Ronald M. Mushock, CFA
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Class A shares returned 6.15% 1 (excluding sales charges) for
the six-month period that ended March 31, 2006, underperforming the Russell 1000
(R) Value Index 2, which returned 7.27% and underperforming the S&P 500 Index 3,
which returned 6.38% during the same period.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTION OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB SITE AT
WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. FOR CLASS
B SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%. PERFORMANCE
INCLUDING SALES CHARGE ASSUMES THE SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. ADMINISTRATOR CLASS SHARES ARE SOLD WITHOUT A FRONT-END SALES CHARGE OR
CONTINGENT DEFERRED SALES CHARGE. OTHER FEES AND EXPENSES APPLY TO AN INVESTMENT
IN THE FUND AND ARE DESCRIBED IN THE FUND'S CURRENT PROSPECTUS.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
The Fund's underperformance relative to its benchmarks was primarily
attributed to disappointing stock selection within the energy and information
technology sectors. One holding that detracted from performance in the energy
sector was Chesapeake Energy. As the second-largest independent producer of
natural gas in the United States, its stock price fell because of the decline in
the underlying commodity price. Within the information technology sector, the
Fund's position in network-security provider McAfee detracted most from
performance. We eliminated the Fund's position in the company after McAfee gave
advance notice of negative earnings.
Even though the Federal Reserve raised interest rates four times during
the past six months, the financial sector rallied in anticipation that the
tightening cycle was near its end. Consequently, the Fund was adversely affected
by its underweighted position in Financials, especially in the banking industry,
which was up 11% for the six-month period and was one of the top performing
industry groups within the sector. The Fund was also impaired by its
underweighted position in the real estate industry, especially in Real Estate
Investment Trusts (REITs), which were up 17.5%.
In contrast, the Fund benefited from its overweighted position in the
investment banking and brokerage industries, which continued to show signs of
strength. Despite the Fund's underweighted position in financials, it was able
to outperform its benchmark in the sector due to strong stock selection. The
Fund added significant value from the consumer discretionary sector, most
notably in retail. However, the fear that rising oil prices were going to put a
serious dent into consumer spending continued to threaten the sector. The
consumer discretionary sector has also been weighed down by uncertainty in the
housing market. The Fund remained underweighted in the homebuilding industry
during the period.
WHAT CHANGES DID YOU MAKE TO THE FUND'S HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
The Fund initiated a position in Terex (TEX), a manufacturer of
multi-faceted equipment used in the non-residential construction,
infrastructure, and mining industries. The company had experienced accelerated
demand for mining machinery equipment, pricing power, and a growing backlog
position in the non-residential construction market.
Another new addition to the Fund during the period was Royal Caribbean
Cruises (RCL), which is the second largest passenger cruise operator in the
world. The Fund added the company after it reported a 23 cent positive earnings
surprise at the beginning of February 2006.
One holding that the Fund eliminated was homebuilder Lennar (LEN). The
housing market continued to show signs of weakness as the combination of higher
mortgage rates and increased housing prices, especially in the Northeast and
West, made houses less affordable. New home sales declined 10.5% in February to
their lowest level since May 2003. Although Lennar's earnings remained strong,
there was a slight negative revision in its future earnings potential causing
the Fund to sell the stock in anticipation of further deterioration in the
company's fundamentals.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
The U.S. economy seems to be expanding at a solid pace. While inflation
risks appear to be under control, some analysts still believe the Fed will raise
its overnight lending rate at least one more time. We continue to be encouraged
by the direction of earnings and the health of company balance sheets, which
remain positive despite higher energy costs and rising short-term interest
rates. Although some experts think that a significant decline in the housing
market will have severe implications on consumer spending, we think that the
resiliency of the consumer will win out and that the economy will continue to
expand at a steady pace.
STOCK FUNDS SHOULD ONLY BE CONSIDERED FOR LONG-TERM GOALS AS VALUES
FLUCTUATE IN RESPONSE TO THE ACTIVITIES OF INDIVIDUAL COMPANIES AND GENERAL
MARKET AND ECONOMIC CONDITIONS. THE FUND'S INVESTMENT PROCESS MAY, AT TIMES,
RESULT IN HIGHER THAN AVERAGE PORTFOLIO TURNOVER AND INCREASED TRADING EXPENSES,
AND MAY GENERATE HIGHER SHORT-TERM CAPITAL GAINS. INVESTMENT STRATEGIES THAT
EMPHASIZE PARTICULAR MARKET SEGMENTS OR FEWER SECURITIES TEND TO INCREASE THE
TOTAL RISK OF AN INVESTMENT (RELATIVE TO THE BROADER MARKET). THIS FUND IS
EXPOSED TO FOREIGN INVESTMENTS RISK. CONSULT THE FUND'S PROSPECTUS FOR
ADDITIONAL INFORMATION ON THESE AND OTHER RISKS.
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2006, and are those of the Fund's
managers. The views are subject to change at any time in response to changing
circumstances in the market and are not intended to predict or guarantee the
future performance of any individual security, market sector or the markets
generally, or the WELLS FARGO ADVANTAGE EQUITY VALUE FUND.
1 The Fund's adviser has committed through January 31, 2007, to waive fees
and/or reimburse expenses to the extent necessary to maintain a certain net
operating expense ratio for the Fund. Actual reductions of operating expenses
can increase total return to shareholders. Without these reductions, the Fund's
returns would have been lower.
The Fund is a gateway feeder Fund that invests all of its assets in a
single master portfolio of the Master Trust with a substantially similar
investment objective and substantially similar investment strategies. References
to the investment activities of the Fund are intended to refer to the investment
activities of the master portfolio in which it invests.
Prior to April 11, 2005, the WELLS FARGO ADVANTAGE EQUITY VALUE
FUND-Administrator Class was named the Wells Fargo Large Cap Value Fund-
Institutional Class.
10
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge
------------------------------- ------------------------------
6-Month* 1-Year Life of Fund 6-Month* 1-Year Life of Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Equity Value Fund - Class A (Incept. date 08/29/2003) 0.05 8.44 13.60 6.15 15.06 16.23
- ------------------------------------------------------------------------------------------------------------------------------------
Equity Value Fund - Class B (Incept. date 08/29/2003) 0.77 9.20 14.44 5.77 14.20 15.37
- ------------------------------------------------------------------------------------------------------------------------------------
Equity Value Fund - Class C (Incept. date 08/29/2003) 4.70 13.12 15.38 5.70 14.12 15.38
- ------------------------------------------------------------------------------------------------------------------------------------
Equity Value Fund - Administrator Class (Incept. date 08/29/2003) 6.20 15.28 16.53
- ------------------------------------------------------------------------------------------------------------------------------------
Benchmarks
- ------------------------------------------------------------------------------------------------------------------------------------
Russell 1000(R) Value Index 2 7.27 13.31 16.81
- ------------------------------------------------------------------------------------------------------------------------------------
S&P 500 Index 3 6.38 11.72 12.16
- ------------------------------------------------------------------------------------------------------------------------------------
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FUND CHARACTERISTICS 4 (AS OF MARCH 31, 2006)
- -----------------------------------------------------------------
Beta** 1.04
- -----------------------------------------------------------------
Price to Earnings Ratio (trailing 12 months) 15.50x
- -----------------------------------------------------------------
Price to Book Ratio 2.30x
- -----------------------------------------------------------------
Median Market Cap. ($B) $ 18.10
- -----------------------------------------------------------------
Portfolio Turnover 6*** 53%
- -----------------------------------------------------------------
** A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE RUSSELL 1000(R)
VALUE INDEX IS 1.00 BY DEFINITION.
*** THIS MEASURE IS BASED ON SIX MONTHS OF THE FUND'S ACTIVITY.
SECTOR DISTRIBUTION 4 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTD BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Discretionary 13%
Consumer Staples 6%
Energy 13%
Financials 31%
Health Care 8%
Industrials 10%
Information Technology 6%
Materials 4%
Telecommunication Services 5%
Utilities 4%
TEN LARGEST EQUITY HOLDINGS 4,5 (AS OF MARCH 31, 2006)
- -----------------------------------------------------------------
Exxon Mobil Corporation 4.42%
- -----------------------------------------------------------------
Chesapeake Energy Corporation 3.85%
- -----------------------------------------------------------------
Bank of America Corporation 3.58%
- -----------------------------------------------------------------
Pfizer Incorporated 3.16%
- -----------------------------------------------------------------
Bear Stearns Companies Incorporated 2.83%
- -----------------------------------------------------------------
Citigroup Incorporated 2.79%
- -----------------------------------------------------------------
Merrill Lynch & Company Incorporated 2.26%
- -----------------------------------------------------------------
Textron Incorporated 2.09%
- -----------------------------------------------------------------
American International Group Incorporated 2.06%
- -----------------------------------------------------------------
Verizon Communications Incorporated 2.05%
GROWTH OF $10,000 INVESTMENT 7 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTD BY A LINE CHART IN THE PRINTED MATERIAL.]
WELLS FARGO WELLS FARGO
ADVANTAGE ADVANTAGE EQUITY
EQUITY VALUE VALUE FUND - RUSSELL 1000 S&P 500
DATE FUND - CLASS A ADMINISTRATOR CLASS (R) VALUE INDEX INDEX
- ----------- -------------- ------------------- --------------- -------
8/29/2003 9,425 10,000 10,000 10,000
8/31/2003 9,425 10,000 10,000 10,000
9/30/2003 9,255 9,820 9,902 9,894
10/31/2003 9,689 10,280 10,508 10,453
11/30/2003 10,028 10,650 10,651 10,545
12/31/2003 10,438 11,088 11,307 11,098
1/31/2004 10,618 11,278 11,506 11,302
2/29/2004 10,910 11,599 11,752 11,459
3/31/2004 10,750 11,428 11,650 11,286
4/30/2004 10,306 10,958 11,365 11,109
5/31/2004 10,476 11,138 11,481 11,261
6/30/2004 10,825 11,519 11,752 11,479
7/31/2004 10,580 11,258 11,587 11,099
8/31/2004 10,599 11,278 11,751 11,144
9/30/2004 10,825 11,519 11,933 11,264
10/31/2004 11,080 11,799 12,132 11,436
11/30/2004 11,664 12,419 12,745 11,900
12/31/2004 11,996 12,782 13,172 12,304
1/31/2005 11,816 12,581 12,938 12,004
2/28/2005 12,271 13,072 13,367 12,256
3/31/2005 12,091 12,892 13,183 12,039
4/30/2005 11,711 12,481 12,947 11,810
5/31/2005 12,110 12,912 13,259 12,186
6/30/2005 12,309 13,132 13,404 12,203
7/31/2005 12,764 13,613 13,791 12,657
8/31/2005 12,773 13,623 13,732 12,542
9/30/2005 13,105 13,994 13,924 12,643
10/31/2005 12,735 13,593 13,570 12,432
11/30/2005 13,115 14,004 14,014 12,902
12/31/2005 13,204 14,106 14,100 12,907
1/31/2006 13,730 14,670 14,647 13,249
2/28/2006 13,739 14,680 14,736 13,285
3/31/2006 13,911 14,861 14,935 13,450
- --------------------------------------------------------------------------------
2 The Russell 1000(R) Value Index measures the performance of those Russell 1000
companies with lower price-to-book ratios and lower forecasted growth values.
You cannot invest directly in an Index. The Fund has selected the Russell
1000(R) Value Index to replace the S&P 500 Index as its benchmark index going
forward because the Russell 1000(R) Value Index is more representative of the
breadth of the Fund's holdings.
3 The S&P 500 Index consists of 500 stocks chosen for market size, liquidity
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.
4 Fund characteristics, equity holdings and sector distribution are subject to
change. Cash and cash equivalents are not reflected in the calculations of fund
characteristics, equity holdings and sector distribution.
5 The Ten Largest Equity Holdings are calculated based on the market value of
the Master Trust Portfolio securities allocable to the Fund divided by total
market value of the portfolio of investments of the Fund. See Notes to Financial
Statements for a discussion of the Master Trust.
6 Portfolio turnover rate represents the activity from the Funds investment in a
single Master Portfolio.
7 The chart compares the performance of the WELLS FARGO ADVANTAGE EQUITY VALUE
FUND Class A and Administrator Class shares for the life of the Fund with the
Russell 1000(R) Value Index and S&P 500 Index. The chart assumes a hypothetical
investment of $10,000 in Class A and Administrator Class shares and reflects all
operating expenses and, for Class A shares, assumes the maximum initial sales
charge of 5.75%.
11
WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE GROWTH EQUITY FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The WELLS FARGO ADVANTAGE GROWTH EQUITY FUND (the Fund) seeks long-term
capital appreciation with moderate annual return volatility by diversifying its
investments among different equity investment styles.
ADVISER FUND MANAGERS
Wells Fargo Funds Management, LLC Thomas C. Biwer, CFA
Christian L. Chan, CFA
SUBADVISERS OF MASTER PORTFOLIOS Andrew Owen, CFA
Artisan Partners Limited
Partnership LSV Asset Management FUND INCEPTION DATE
New Star Institutional Managers Limited 04/30/1989
Peregrine Capital Management, Inc.
Smith Asset Management Group, L.P.
SSgA Funds Management, Inc.
Wells Capital Management Incorporated
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Class A shares returned 10.91% 1 (excluding sales charges) for
the six-month period that ended March 31, 2006, outperforming the S&P 500 Index
2, which returned 6.38%, and underperforming Growth Equity Composite Index 3,
which returned 11.67% during the same period.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTION OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB SITE AT
WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. FOR CLASS
B SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%. PERFORMANCE
INCLUDING SALES CHARGE ASSUMES THE SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. ADMINISTRATOR AND INSTITUTIONAL CLASS SHARES ARE SOLD WITHOUT A
FRONT-END SALES CHARGE OR CONTINGENT DEFERRED SALES CHARGE. OTHER FEES AND
EXPENSES APPLY TO AN INVESTMENT IN THE FUND AND ARE DESCRIBED IN THE FUND'S
CURRENT PROSPECTUS.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
The Fund underperformed its composite benchmark for the six-month period.
Of the ten underlying portfolios in the Fund, three outperformed their
respective benchmarks while seven underperformed. The weakest performers were
the International Core Portfolio and the Small Company Value Portfolio.
Significant outperforming components included the International Growth Portfolio
and the Small Company Growth Portfolio.
WHAT CHANGES DID YOU MAKE TO THE FUND'S HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
During the period, a 5.83% position was initiated in the Strategic Small
Cap Value Portfolio, managed by multiple managers. The source of revenue for
this investment was a reduction in the Fund's position in the Small Company
Value Portfolio. The overall weighting in the small-company value category was
unchanged at 11.67%.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
The Fund remains invested in its neutral allocation of 35% in the
large-cap growth category, 35% in the small-company category, and 30% in the
international equity category.
Our outlook for U.S. stocks is positive, given the solid underpinnings of
corporate earnings growth, ample liquidity in the financial system, reasonable
valuations, healthy technical readings, and neutral investor sentiment. Our
outlook for non-U.S. equities is similarly positive, supported by firming global
economic growth and attractive valuations.
Growth stocks as a group have lagged the overall market for some years
now. Our outlook for growth stocks is positive now that signs of slowing in
economic growth in housing and auto sales have emerged. This kind of shift in
the economy tends to favor growth stocks over cyclical/value stocks.
STOCK FUNDS SHOULD ONLY BE CONSIDERED FOR LONG-TERM GOALS AS VALUES
FLUCTUATE IN RESPONSE TO THE ACTIVITIES OF INDIVIDUAL COMPANIES AND GENERAL
MARKET AND ECONOMIC CONDITIONS. INVESTMENT STRATEGIES THAT EMPHASIZE PARTICULAR
MARKET SEGMENTS OR FEWER SECURITIES TEND TO INCREASE THE TOTAL RISK OF AN
INVESTMENT (RELATIVE TO THE BROADER MARKET). THIS FUND IS EXPOSED TO SMALL
COMPANY SECURITIES RISK, AND FOREIGN INVESTMENTS RISK. CONSULT THE FUND'S
PROSPECTUS FOR ADDITIONAL INFORMATION ON THESE AND OTHER RISKS.
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2006, and are those of the Fund's
managers. The views are subject to change at any time in response to changing
circumstances in the market and are not intended to predict or guarantee the
future performance of any individual security, market sector or the markets
generally, or the WELLS FARGO ADVANTAGE GROWTH EQUITY FUND.
1 The Fund's adviser has committed through January 31, 2007, for classes A, B,
C, and Administrator Class shares and through April 30, 2007 for Institutional
Class shares, to waive fees and/or reimburse expenses to the extent necessary to
maintain a certain net operating expense ratio for the Fund. Actual reductions
of operating expenses can increase total return to shareholders. Without these
reductions, the Fund's returns would have been lower.
The Fund is a gateway blended Fund that invests all of its assets in two
or more master portfolios of the Master Trust in varying proportions. References
to the investment activities of the Fund are intended to refer to the investment
activities of the master portfolios in which it invests.
Prior to April 11, 2005, the WELLS FARGO ADVANTAGE GROWTH EQUITY FUND was
named the Wells Fargo Growth Equity Fund. Performance shown for the
Administrator Class (formerly named Institutional Class) shares for periods
prior to November 8, 1999, reflects the performance of the Institutional Class
shares of Norwest Advantage Growth Equity Fund, its predecessor fund.
Performance shown for the Institutional Class (formerly named Select Class)
shares for periods prior to April 11, 2005, reflects the performance of the
Administrator Class shares of the Wells Fargo Growth Equity Fund and for periods
prior to November 8, 1999, reflects the performance of the Administrator Class
shares of Norwest Advantage Growth Equity Fund, its predecessor fund.
Performance shown for the Class A, Class B and Class C shares of the Fund for
periods prior to November 8, 1999, reflects the performance of the applicable
share class of the Norwest Advantage Growth Equity Fund, its predecessor fund.
Performance shown for the Class A shares for periods prior to May 2, 1996,
reflects the performance of the Administrator Class shares of the Fund adjusted
to reflect Class A sales charges and expenses. Performance shown for the Class B
shares for periods prior to May 6, 1996, reflects the performance of the
Administrator Class shares of the Fund adjusted to reflect Class B sales charges
and expenses. Performance shown for the Class C shares for periods prior to
October 1, 1998, reflects the performance of the Administrator Class shares of
the Fund adjusted to reflect Class C sales charges and expenses.
12
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
Including Sales Charge
---------------------------------
6-Month* 1-Year 5-Year 10-Year
- ---------------------------------------------------------------------------------------------
Growth Equity Fund - Class A (Incept. date 05/02/1996) 4.54 14.09 5.19 7.90
- ---------------------------------------------------------------------------------------------
Growth Equity Fund - Class B (Incept. date 05/06/1996) 5.55 15.17 5.31 7.72
- ---------------------------------------------------------------------------------------------
Growth Equity Fund - Class C (Incept. date 10/01/1998) 9.53 19.16 5.63 7.81
- ---------------------------------------------------------------------------------------------
Growth Equity Fund - Administrator Class
(Incept. date 11/11/1994)
- ---------------------------------------------------------------------------------------------
Growth Equity Fund - Institutional Class
(Incept. date 04/11/2005)
- ---------------------------------------------------------------------------------------------
Benchmark
- ---------------------------------------------------------------------------------------------
S&P 500 Index 2
- ---------------------------------------------------------------------------------------------
Growth Equity Composite Index 3
- ---------------------------------------------------------------------------------------------
Excluding Sales Charge
----------------------------------
6-Month* 1-Year 5-Year 10-Year
- ---------------------------------------------------------------------------------------------
Growth Equity Fund - Class A (Incept. date 05/02/1996) 10.91 21.05 6.44 8.54
- ---------------------------------------------------------------------------------------------
Growth Equity Fund - Class B (Incept. date 05/06/1996) 10.55 20.17 5.63 7.72
- ---------------------------------------------------------------------------------------------
Growth Equity Fund - Class C (Incept. date 10/01/1998) 10.53 20.16 5.63 7.81
- ---------------------------------------------------------------------------------------------
Growth Equity Fund - Administrator Class
(Incept. date 11/11/1994) 11.05 21.37 6.71 8.71
- ---------------------------------------------------------------------------------------------
Growth Equity Fund - Institutional Class
(Incept. date 04/11/2005) 11.19 21.60 6.75 8.73
- ---------------------------------------------------------------------------------------------
Benchmark
- ---------------------------------------------------------------------------------------------
S&P 500 Index 2 6.38 11.72 3.97 8.95
- ---------------------------------------------------------------------------------------------
Growth Equity Composite Index 3 11.67 21.06 8.00 8.11
- ---------------------------------------------------------------------------------------------
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FUND CHARACTERISTICS 4 (AS OF MARCH 31, 2006)
- -----------------------------------------------------------------
Beta** 0.98
- -----------------------------------------------------------------
Price to Earnings Ratio (trailing 12 months) 20.82x
- -----------------------------------------------------------------
Price to Book Ratio 3.34x
- -----------------------------------------------------------------
Median Market Cap. ($B) $ 19.27
- -----------------------------------------------------------------
Portfolio Turnover*** 21%
- -----------------------------------------------------------------
** A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE GROWTH EQUITY
COMPOSITE INDEX IS 1.00 BY DEFINITION.
*** THIS MEASURE IS BASED ON SIX MONTHS OF THE FUND'S ACTIVITY.
SECTOR DISTRIBUTION 4 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTD BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Discretionary 14%
Consumer Staples 4%
Energy 9%
Financials 30%
Health Care 13%
Industrials 10%
Information Technology 20%
TEN LARGEST EQUITY HOLDINGS 4,5 (AS OF MARCH 31, 2006)
- -----------------------------------------------------------------
Goldman Sachs Group Incorporated 2.64%
- -----------------------------------------------------------------
eBay Incorporated 2.18%
- -----------------------------------------------------------------
Microsoft Corporation 2.05%
- -----------------------------------------------------------------
Medtronic Incorporated 1.88%
- -----------------------------------------------------------------
Charles Schwab Corporation 1.43%
- -----------------------------------------------------------------
Cisco Systems Incorporated 1.36%
- -----------------------------------------------------------------
Genentech Incorporated 1.25%
- -----------------------------------------------------------------
Franklin Resources 1.20%
- -----------------------------------------------------------------
American International Group Incorporated 1.15%
- -----------------------------------------------------------------
Paychex Incorporated 1.15%
GROWTH OF $10,000 INVESTMENT 6 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTD BY A LINE CHART IN THE PRINTED MATERIAL.]
WELLS FARGO WELLS FARGO
ADVANTAGE ADVANTAGE GROWTH GROWTH
GROWTH EQUITY EQUITY FUND - S&P 500 EQUITY COMPOSITE
DATE FUND - CLASS A ADMINISTRATOR CLASS INDEX INDEX
- ----------- -------------- ------------------- ------- ----------------
3/31/1996 9,425 10,000 10,000 10,000
4/30/1996 9,848 10,449 10,147 10,366
5/31/1996 10,059 10,673 10,408 10,579
6/30/1996 9,859 10,460 10,447 10,450
7/31/1996 9,281 9,847 9,986 9,824
8/31/1996 9,582 10,167 10,196 10,119
9/30/1996 10,059 10,673 10,769 10,596
10/31/1996 9,983 10,592 11,067 10,529
11/30/1996 10,488 11,128 11,902 11,083
12/31/1996 10,518 11,160 11,666 11,066
1/31/1997 10,868 11,531 12,396 11,299
2/28/1997 10,734 11,389 12,492 11,232
3/31/1997 10,278 10,905 11,980 10,846
4/30/1997 10,529 11,167 12,694 11,126
5/31/1997 11,479 12,180 13,466 12,057
6/30/1997 12,066 12,802 14,069 12,606
7/31/1997 12,804 13,585 15,188 13,263
8/31/1997 12,313 13,061 14,337 12,800
9/30/1997 13,133 13,934 15,121 13,564
10/31/1997 12,511 13,270 14,616 12,867
11/30/1997 12,507 13,270 15,293 12,990
12/31/1997 12,631 13,402 15,556 13,154
1/31/1998 12,828 13,606 15,727 13,400
2/28/1998 13,753 14,592 16,861 14,357
3/31/1998 14,261 15,127 17,724 14,897
4/30/1998 14,517 15,403 17,905 15,034
5/31/1998 14,068 14,922 17,597 14,579
6/30/1998 14,458 15,340 18,312 14,936
7/31/1998 14,131 14,993 18,118 14,523
8/31/1998 11,788 12,508 15,500 12,234
9/30/1998 12,273 13,022 16,493 12,785
10/31/1998 12,946 13,736 17,834 13,727
11/30/1998 13,781 14,622 18,915 14,555
12/31/1998 14,715 15,613 20,004 15,502
1/31/1999 15,163 16,088 20,840 15,879
2/28/1999 14,405 15,284 20,192 15,061
3/31/1999 14,778 15,679 21,000 15,610
4/30/1999 15,305 16,239 21,813 16,296
5/31/1999 15,133 16,057 21,298 15,953
6/30/1999 16,087 17,064 22,480 16,783
7/31/1999 15,907 16,878 21,778 16,584
8/31/1999 15,665 16,620 21,670 16,483
9/30/1999 15,409 16,345 21,076 16,413
10/31/1999 16,096 17,078 22,410 17,054
11/30/1999 16,861 17,890 22,865 17,910
12/31/1999 18,490 19,628 24,212 19,754
1/31/2000 17,858 18,957 22,997 18,942
2/29/2000 18,901 20,069 22,562 20,514
3/31/2000 19,929 21,170 24,769 20,793
4/30/2000 19,326 20,530 24,023 19,681
5/31/2000 18,524 19,684 23,531 18,788
6/30/2000 19,548 20,776 24,112 20,080
7/31/2000 19,253 20,468 23,736 19,309
8/31/2000 20,292 21,575 25,210 20,486
9/30/2000 19,263 20,484 23,879 19,298
10/31/2000 19,036 20,253 23,778 18,540
11/30/2000 17,640 18,767 21,905 16,709
12/31/2000 18,434 19,614 22,012 17,204
1/31/2001 18,795 20,003 22,793 17,931
2/28/2001 16,971 18,063 20,717 16,051
3/31/2001 15,652 16,664 19,405 14,844
4/30/2001 17,034 18,142 20,911 16,217
5/31/2001 16,942 18,045 21,051 16,101
6/30/2001 16,713 17,808 20,540 15,967
7/31/2001 16,317 17,394 20,339 15,438
8/31/2001 15,463 16,482 19,067 14,704
9/30/2001 13,690 14,596 17,529 13,051
10/31/2001 14,275 15,229 17,863 13,658
11/30/2001 15,394 16,421 19,234 14,639
12/31/2001 15,770 16,831 19,403 14,971
1/31/2002 15,562 16,604 19,120 14,585
2/28/2002 15,129 16,150 18,751 14,264
3/31/2002 16,019 17,102 19,456 15,070
4/30/2002 15,693 16,762 18,277 14,717
5/31/2002 15,307 16,345 18,143 14,420
6/30/2002 14,512 15,500 16,851 13,531
7/31/2002 12,802 13,677 15,539 12,154
8/31/2002 12,820 13,702 15,640 12,148
9/30/2002 11,574 12,371 13,941 11,010
10/31/2002 12,333 13,185 15,167 11,665
11/30/2002 13,069 13,967 16,058 12,410
12/31/2002 12,345 13,203 15,116 11,743
1/31/2003 11,882 12,710 14,721 11,382
2/28/2003 11,621 12,433 14,500 11,165
3/31/2003 11,663 12,477 14,640 11,222
4/30/2003 12,648 13,537 15,846 12,215
5/31/2003 13,485 14,433 16,679 13,109
6/30/2003 13,728 14,698 16,893 13,351
7/31/2003 14,334 15,348 17,190 13,856
8/31/2003 14,779 15,828 17,525 14,299
9/30/2003 14,624 15,664 17,340 14,286
10/31/2003 15,604 16,718 18,319 15,254
11/30/2003 15,835 16,970 18,481 15,601
12/31/2003 16,500 17,684 19,449 16,266
1/31/2004 16,755 17,961 19,807 16,699
2/29/2004 16,886 18,106 20,082 16,904
3/31/2004 16,909 18,138 19,779 16,878
4/30/2004 16,417 17,614 19,468 16,393
5/31/2004 16,583 17,797 19,735 16,608
6/30/2004 16,921 18,163 20,118 17,035
7/31/2004 16,055 17,236 19,452 16,130
8/31/2004 15,978 17,153 19,530 16,095
9/30/2004 16,435 17,652 19,741 16,539
10/31/2004 16,755 17,999 20,043 16,912
11/30/2004 17,800 19,123 20,855 17,976
12/31/2004 18,422 19,793 21,564 18,646
1/31/2005 17,752 19,080 21,037 18,053
2/28/2005 18,121 19,487 21,479 18,461
3/31/2005 17,664 18,994 21,099 18,019
4/30/2005 17,051 18,341 20,698 17,411
5/31/2005 17,771 19,114 21,356 18,107
6/30/2005 18,109 19,487 21,386 18,400
7/31/2005 19,060 20,512 22,182 19,293
8/31/2005 19,035 20,492 21,980 19,227
9/30/2005 19,279 20,759 22,158 19,536
10/31/2005 18,854 20,306 21,788 19,086
11/30/2005 19,674 21,192 22,612 19,838
12/31/2005 19,855 21,396 22,621 20,062
1/31/2006 20,806 22,423 23,220 21,184
2/28/2006 20,776 22,399 23,283 21,138
3/31/2006 21,383 23,053 23,571 21,815
- --------------------------------------------------------------------------------
2 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.
3 Growth Equity Composite Index is weighted 35% in the Russell 1000(R) Growth
Index, 30% in the MSCI EAFE(R) Index, 35% in the Russell 2000(R) Index. The
RUSSELL 1000(R) GROWTH INDEX measures the performance of those Russell 1000
companies with higher price-to-book ratios and higher forecasted growth values.
The MSCI EAFE(R) INDEX, THE MORGAN STANLEY CAPITAL INTERNATIONAL EUROPE,
AUSTRALASIA AND FAR EAST ("MSCI EAFE") STOCK INDEX is an unmanaged group of
securities widely regarded by investors to be representations of the stock
markets of Europe, Australasia and the Far East. The RUSSELL 2000(R) INDEX
measures the performance of the 2,000 smallest companies in the Russell 3000
Index, which represents approximately 8% of the total market capitalization of
the Russell 3000 Index. You cannot invest directly in an Index.
4 Fund characteristics, equity holdings and sector distribution are subject to
change. Cash and cash equivalents are not reflected in the calculations of fund
characteristics, equity holdings and sector distribution.
5 The Ten Largest Equity Holdings are calculated based on the market value of
the Master Trust portfolio securities allocable to the Fund divided by total
market value of the portfolio of investments of the Fund. See Notes to Financial
Statements for a discussion of the Master Trust.
6 The chart compares the performance of the WELLS FARGO ADVANTAGE GROWTH EQUITY
FUND Class A and Administrator Class shares for the most recent ten years with
the S&P 500 Index and the Growth Equity Composite Index. The chart assumes a
hypothetical investment of $10,000 in Class A and Administrator Class shares and
reflects all operating expenses and, for Class A shares, assumes the maximum
initial sales charge of 5.75%.
13
WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE INTERNATIONAL VALUE FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The WELLS FARGO ADVANTAGE INTERNATIONAL VALUE FUND (the Fund) seeks
long-term capital appreciation.
ADVISER SUBADVISER
Wells Fargo Funds Management, LLC LSV Asset Management
FUND MANAGERS FUND INCEPTION DATE
Josef Lakonishok 10/31/2003
Puneet Mansharamani
Menno Vermeulen, CFA
Robert W. Vishny
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Class A shares returned 13.10% 1 (excluding sales charges) for
the six-month period that ended March 31, 2006, underperforming the MSCI EAFE
Index 2, which returned 13.86% and underperforming the MSCI EAFE Value Index 3,
which returned 14.07% during the same period.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTION OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE AT THE FUNDS' WEB SITE AT
WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. FOR CLASS
B SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%. PERFORMANCE
INCLUDING SALES CHARGE ASSUMES THE SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. ADMINISTRATOR CLASS SHARES ARE SOLD WITHOUT SALES CHARGES. OTHER FEES
AND EXPENSES APPLY TO AN INVESTMENT IN THE FUND AND ARE DESCRIBED IN THE FUND'S
CURRENT PROSPECTUS.
THE FUND HAS A REDEMPTION FEE OF 2.00% DEDUCTED FROM THE NET PROCEEDS OF
SHARES REDEEMED OR EXCHANGED WITHIN 30 DAYS AFTER PURCHASE. PERFORMANCE DATA
DOES NOT REFLECT THE DEDUCTION OF THIS FEE, WHICH, IF REFLECTED, WOULD REDUCE
THE PERFORMANCE.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
International equity markets posted strong returns during the reporting
period, with economic activity in Europe and Japan remaining strong. The good
news on the economic front helped to offset high energy prices and a more
restrictive monetary environment seen in many countries. The Fund's overweighted
position in higher-dividend-paying stocks worked against performance because
stocks that paid minimal or no dividends led the market. In addition, the Fund's
holdings in Japanese stocks were weak compared to its benchmark. Poor stock
selection in Japan was counterbalanced to some extent by good stock selection in
the United Kingdom and Switzerland.
The strategy to have the Fund overweighted in energy and underweighted in
the technology sectors detracted from performance, but this was compensated for
by the Fund's overweighted position in financials and underweighted position in
consumer staples. Overall, stock selection was neutral, because good selection
in financials and telecommunications stocks was offset by poor selection in
energy, materials, and industrials. The Fund remains underweighted in the health
care, consumer staples, and technology sectors and overweighted in financials,
materials, and consumer discretionary stocks.
WHAT CHANGES DID YOU MAKE TO THE FUND'S HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
Given the energetic markets, we sold strong-performing stocks as their
relative attractiveness deteriorated and their valuations strained. Several
stocks fell into this category, including UBS in Switzerland, Nihon Unisys in
Japan, and CSR Ltd in Australia. The proceeds were used to purchase higher
ranked stocks with better upside potential. Examples included Commonwealth Bank
and Quantas Airlines in Australia and Nippon Mitsubishi Oil and Tokyo Electric
Power in Japan.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
We anticipate seeing continued strength in international equities. Our
approach is to select stocks that are inexpensive and have poor past performance
but seem to be gaining momentum. The Fund's portfolio consistently trades at a
significant valuation discount relative to the market and has a bias toward mid
cap stocks relative to its benchmark. We will continue to maintain this
portfolio strategy and make changes when our fundamental indicators direct us to
do so.
STOCK FUNDS SHOULD ONLY BE CONSIDERED FOR LONG-TERM GOALS AS VALUES
FLUCTUATE IN RESPONSE TO THE ACTIVITIES OF INDIVIDUAL COMPANIES AND GENERAL
MARKET AND ECONOMIC CONDITIONS. FOREIGN INVESTMENTS PRESENT CERTAIN RISKS THAT
MAY NOT BE PRESENT IN DOMESTIC INVESTMENTS, INCLUDING CURRENCY FLUCTUATION, THE
POTENTIAL FOR DIPLOMATIC AND POLITICAL INSTABILITY, REGULATORY AND LIQUIDITY
RISKS, FOREIGN TAXATION AND DIFFERENCES IN AUDITING AND OTHER FINANCIAL
STANDARDS. THESE RISKS ARE GENERALLY INTENSIFIED IN EMERGING MARKETS. INVESTMENT
STRATEGIES THAT EMPHASIZE PARTICULAR MARKET SEGMENTS OR FEWER SECURITIES TEND TO
INCREASE THE TOTAL RISK OF AN INVESTMENT (RELATIVE TO THE BROADER MARKET). THIS
FUND IS EXPOSED TO SMALL COMPANY SECURITIES RISK. CONSULT THE FUND'S PROSPECTUS
FOR ADDITIONAL INFORMATION ON THESE AND OTHER RISKS.
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2006, and are those of the Fund's
managers. The views are subject to change at any time in response to changing
circumstances in the market and are not intended to predict or guarantee the
future performance of any individual security, market sector or the markets
generally, or the WELLS FARGO ADVANTAGE INTERNATIONAL VALUE FUND.
1 The Fund's adviser has committed through April 30, 2007, to waive fees and/or
reimburse expenses to the extent necessary to maintain a certain net operating
expense ratio for the Fund. Actual reductions of operating expenses can increase
total return to shareholders. Without these reductions, the Fund's returns would
have been lower.
The Fund is a gateway feeder fund that invests all of its assets in a
single master portfolio of the Master Trust with a substantially similar
investment objective and substantially similar investment strategies. References
to the investment activities of the Fund are intended to refer to the investment
activities of the master portfolio in which it invests.
Prior to April 11, 2005, the WELLS FARGO ADVANTAGE INTERNATIONAL VALUE
FUND was named the Wells Fargo Overseas Fund. Performance shown for the Class B
and Class C shares of the Fund for periods prior to April 11, 2005, reflects the
performance shown for the Class A shares of the Fund, adjusted to reflect the
respective class' expenses. Performance shown for the Administrator Class shares
for periods prior to April 11, 2005, reflects the performance shown for the
Class A shares of the Fund and includes fees and expenses that are not
applicable to and higher than those of the Administrator Class shares.
14
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
Including Sales Charge
------------------------------
6-Month* 1-Year Life of Fund
- ------------------------------------------------------------------------------------------------------------
International Value Fund - Class A (Incept. date 10/31/2003) 6.60 14.27 20.80
- ------------------------------------------------------------------------------------------------------------
International Value Fund - Class B (Incept. date 04/11/2005) 7.66 15.24 21.90
- ------------------------------------------------------------------------------------------------------------
International Value Fund - Class C (Incept. date 04/11/2005) 11.66 19.24 22.83
- ------------------------------------------------------------------------------------------------------------
International Value Fund - Administrator Class (Incept. date 04/11/2005)
- ------------------------------------------------------------------------------------------------------------
Benchmark
- ------------------------------------------------------------------------------------------------------------
MSCI EAFE Index 2
- ------------------------------------------------------------------------------------------------------------
MSCI EAFE Value Index 3
- ------------------------------------------------------------------------------------------------------------
Excluding Sales Charge
------------------------------
6-Month* 1-Year Life of Fund
- ------------------------------------------------------------------------------------------------------------
International Value Fund - Class A (Incept. date 10/31/2003) 13.10 21.25 23.80
- ------------------------------------------------------------------------------------------------------------
International Value Fund - Class B (Incept. date 04/11/2005) 12.66 20.24 22.83
- ------------------------------------------------------------------------------------------------------------
International Value Fund - Class C (Incept. date 04/11/2005) 12.66 20.24 22.83
- ------------------------------------------------------------------------------------------------------------
International Value Fund - Administrator Class (Incept. date 04/11/2005) 13.12 21.35 23.84
- ------------------------------------------------------------------------------------------------------------
Benchmark
- ------------------------------------------------------------------------------------------------------------
MSCI EAFE Index 2 13.86 24.41 22.90
- ------------------------------------------------------------------------------------------------------------
MSCI EAFE Value Index 3 14.07 24.79 25.65
- ------------------------------------------------------------------------------------------------------------
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FUND CHARACTERISTICS 4 (AS OF MARCH 31, 2006)
- -----------------------------------------------------------------
Beta** 0.99
- -----------------------------------------------------------------
Price to Earnings Ratio (trailing 12 months) 12.25x
- -----------------------------------------------------------------
Price to Book Ratio 1.92x
- -----------------------------------------------------------------
Median Market Cap. ($B) $ 9.00
- -----------------------------------------------------------------
Portfolio Turnover 6*** 9%
- -----------------------------------------------------------------
** A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE MSCI EAFE VALUE
INDEX IS 1.00 BY DEFINITION.
*** THIS MEASURE IS BASED ON SIX MONTHS OF THE FUND'S ACTIVITY.
PORTFOLIO COMPOSITION 4 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTD BY A PIE CHART IN THE PRINTED MATERIAL.]
Asia/Pacific Ex Japan 2%
Australia 4%
Continental Europe 45%
Japan 25%
United Kingdom 24%
TEN LARGEST EQUITY HOLDINGS 4,5 (AS OF MARCH 31, 2006)
- -----------------------------------------------------------------
Toyota Motor Corporation 3.00%
- -----------------------------------------------------------------
Barclays plc 2.31%
- -----------------------------------------------------------------
BNP Paribas SA 2.25%
- -----------------------------------------------------------------
Royal Dutch Shell plc Class B 2.17%
- -----------------------------------------------------------------
Endesa SA 2.09%
- -----------------------------------------------------------------
Lloyds TSB Group plc 1.99%
- -----------------------------------------------------------------
Aegon NV 1.93%
- -----------------------------------------------------------------
Nordea AB 1.91%
- -----------------------------------------------------------------
Societe Generale 1.87%
- -----------------------------------------------------------------
Credit Suisse Group 1.74%
- -----------------------------------------------------------------
GROWTH OF $10,000 INVESTMENT 7 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTD BY A LINE CHART IN THE PRINTED MATERIAL.]
WELLS FARGO
ADVANTAGE WELLS FARGO
INTERNATIONAL ADVANTAGE INTERNATIONAL MSCI
VALUE FUND - VALUE FUND - MSCI EAFE EAFE VALUE
DATE CLASS A ADMINISTRATOR CLASS INDEX INDEX
- --------- ------------- ----------------------- --------- ----------
10/31/03 9,425 10,000 10,000 10,000
11/30/03 9,491 10,070 10,222 10,209
12/31/03 10,254 10,880 11,020 11,102
1/31/04 10,509 11,150 11,176 11,201
2/29/04 10,867 11,530 11,434 11,508
3/31/04 11,008 11,680 11,498 11,629
4/30/04 10,735 11,390 11,238 11,402
5/31/04 10,735 11,390 11,276 11,503
6/30/04 11,140 11,820 11,523 11,863
7/31/04 10,886 11,550 11,149 11,569
8/31/04 10,924 11,590 11,198 11,659
9/30/04 11,253 11,940 11,490 11,982
10/31/04 11,499 12,200 11,882 12,394
11/30/04 12,271 13,020 12,694 13,235
12/31/04 12,893 13,679 13,250 13,838
1/31/05 12,843 13,627 13,007 13,648
2/28/05 13,455 14,276 13,569 14,280
3/31/05 13,021 13,815 13,228 13,914
4/30/05 12,656 13,428 12,917 13,551
5/31/05 12,527 13,292 12,924 13,542
6/30/05 12,823 13,606 13,096 13,800
7/31/05 13,179 13,993 13,498 14,226
8/31/05 13,524 14,360 13,839 14,544
9/30/05 13,959 14,821 14,455 15,223
10/31/05 13,495 14,329 14,033 14,752
11/30/05 13,653 14,507 14,377 15,200
12/31/05 14,252 15,134 15,045 15,814
1/31/06 15,114 16,056 15,969 16,782
2/28/06 15,233 16,183 15,934 16,900
3/31/06 15,787 16,765 16,460 17,362
- --------------------------------------------------------------------------------
2 The Morgan Stanley Capital International Europe, Australasia and Far East
("MSCI EAFE") Stock Index is an unmanaged group of securities widely regarded by
investors to be representations of the stock markets of Europe, Australasia and
the Far East. You cannot invest directly in an Index.
3 The MSCI EAFE Value Index is a subset of the Morgan Stanley Capital
International Europe, Australasia and Far East ("MSCI EAFE") Stock Index and
constituents of the Index include securities from Europe,Australasia (Australia
and Asia),and the Far East.The Index generally represents approximately 50% of
the free float-adjusted market capitalization of the MSCI EAFE Index and
consists of those securities classified by MSCI as most representing the value
style. You cannot invest directly in an Index. The Fund has selected the MSCI
EAFE Value Index to replace the MSCI EAFE Index as its benchmark index going
forward because the MSCI EAFE Value Index is more representative of the breadth
of the Fund's holdings.
4 Fund characteristics, equity holdings and portfolio composition are subject to
change. Cash and cash equivalents are not reflected in the calculations of fund
characteristics, equity holdings and portfolio composition.
5 The Ten Largest Equity Holdings are calculated based on the market value of
the Master Trust portfolio securities allocable to the Fund divided by total
market value of the portfolio of investments of the Fund. See Notes to Financial
Statements for a discussion of the Master Trust.
6 Portfolio turnover rate represents the activity from the Fund's investment in
a single Master Portfolio.
7 The chart compares the performance of the WELLS FARGO ADVANTAGE INTERNATIONAL
VALUE FUND Class A and Administrator Class shares for the life of the Fund with
the MSCI EAFE Index and MSCI EAFE Value.The chart assumes a hypothetical
investment of $10,000 in Class A and Administrator Class shares and reflects all
operating expenses and, for Class A shares, assumes the maximum initial sales
charge of 5.75%.
15
WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE LARGE CAP APPRECIATION FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The WELLS FARGO ADVANTAGE LARGE CAP APPRECIATION FUND (the Fund) seeks
long-term capital appreciation.
ADVISER SUBADVISER
Wells Fargo Funds Management, LLC Cadence Capital Management LLC
FUND MANAGERS FUND INCEPTION DATE
William B. Bannick, CFA 08/31/2001
Robert L. Fitzpatrick, CFA
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Class A shares returned 7.91% 1 (excluding sales charges) for
the six-month period that ended March 31, 2006, outperforming the Russell 1000
(R) Growth Index 2, which returned 6.16%, and outperforming the S&P 500 Index 3,
which returned 6.38% during the same period.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB SITE AT
WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. FOR CLASS
B SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%. PERFORMANCE
INCLUDING SALES CHARGE ASSUMES THE SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. ADMINISTRATOR CLASS SHARES ARE SOLD WITHOUT A FRONT-END SALES CHARGE OR
CONTINGENT DEFERRED SALES CHARGE. OTHER FEES AND EXPENSES APPLY TO AN INVESTMENT
IN THE FUND AND ARE DESCRIBED IN THE FUND'S CURRENT PROSPECTUS.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
The Fund had a strong six months, outperforming both the Russell 1000 (R)
Growth Index and the S&P 500 Index. Careful stock selection within the
information technology sector had the greatest favorable impact, as the Fund's
holdings performed considerably better than those of the benchmark. One
particularly strong stock for the Fund was Broadcom, a maker of semiconductors
for broadband communications devices, which benefited from increased enterprise
network spending and a strong wireless communications market. Stock picks in the
industrials sector also helped, as continued economic growth boosted the
performance of many names in that part of the market. At period-end, the
portfolio remained overweighted in energy stocks. We did trim the Fund's energy
holdings during the period to lock in profits but continued to see further
appreciation potential there. The greatest negative impact came from our
consumer discretionary stocks, especially retailers. Teen and young-adult
retailer Abercrombie & Fitch and luxury jeweler Tiffany were two notable
detractors.
WHAT CHANGES DID YOU MAKE TO THE FUND'S HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
As the economy continued to expand and the Federal Reserve Board (the Fed)
issued a favorable economic outlook, we increased the portfolio's exposure to
basic industrial companies. Within the broad industrials sector, defense
companies have benefited from increased federal government spending, and
transportation companies, especially railroads, also have seen solid growth.
Industrial companies whose products help their customers improve operating
efficiencies have seen their earnings estimates increase and also have reported
positive earnings surprises. Both of these factors influence our ongoing
stock-selection process and help us find stocks that we believe have high
earnings potential along with reasonable relative valuations.
The proceeds for our new purchases in industrials came from further cuts
to our financial sector exposure, since the Fed had clearly indicated that its
cycle of interest-rate hikes is not over yet. Most financial stocks continue to
operate in a tough environment, with interest rates pressuring profit margins
and continuing to reduce earnings. We have, however, uncovered what we believe
are excellent investment opportunities among the growth areas of the financial
sector--especially capital markets companies, which continue to benefit from
merger and acquisition activity.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
Given the U.S. economy's continued resilience, we are optimistic about the
stock market in 2006 and believe that stock selection will be an important
factor for future outperformance. At period end, the portfolio's largest sector
exposures were in industrials, in which we were overweighted relative to our
benchmark, and information technology, in which we were underweighted. More
importantly, we are emphasizing companies in parts of the market that we feel
are demonstrating positive fundamentals--such as firms benefiting from strong
end markets, pricing power, the opportunity for improved profit margins, and new
product cycles. Although we are likely to see a slowdown in the economy as the
year goes on, we believe that our process may continue to point us to companies
in economic sectors with higher potential for sustainable earnings growth.
STOCK FUNDS SHOULD ONLY BE CONSIDERED FOR LONG-TERM GOALS AS VALUES
FLUCTUATE IN RESPONSE TO THE ACTIVITIES OF INDIVIDUAL COMPANIES AND GENERAL
MARKET AND ECONOMIC CONDITIONS. THE FUND'S INVESTMENT PROCESS MAY, AT TIMES,
RESULT IN HIGHER THAN AVERAGE PORTFOLIO TURNOVER AND INCREASED TRADING EXPENSES,
AND MAY GENERATE HIGHER SHORT-TERM CAPITAL GAINS. CONSULT THE FUND'S PROSPECTUS
FOR ADDITIONAL INFORMATION ON THESE AND OTHER RISKS.
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2006, and are those of the Fund's
managers. The views are subject to change at any time in response to changing
circumstances in the market and are not intended to predict or guarantee the
future performance of any individual security, market sector or the markets
generally, or the WELLS FARGO ADVANTAGE LARGE CAP APPRECIATION FUND.
1 The Fund's adviser has committed through January 31, 2007, to waive fees
and/or reimburse expenses to the extent necessary to maintain a certain net
operating expense ratio for the Fund. Actual reductions of operating expenses
can increase total return to shareholders. Without these reductions, the Fund's
returns would have been lower.
The Fund is a gateway feeder Fund that invests all of its assets in a
single master portfolio of the Master Trust with a substantially similar
investment objective and substantially similar investment strategies. References
to the investment activities of the Fund are intended to refer to the investment
activities of the master portfolio in which it invests.
Prior to April 11, 2005, the WELLS FARGO ADVANTAGE LARGE CAP APPRECIATION
FUND--Administrator Class was named the Wells Fargo Large Cap Appreciation Fund
Institutional Class.
16
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge
-------------------------------- -------------------------------
6-Month* 1-Year Life of Fund 6-Month* 1-Year Life of Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Large Cap Appreciation Fund - Class A (Incept. date 08/31/2001) 1.70 9.48 3.89 7.91 16.16 5.25
- ------------------------------------------------------------------------------------------------------------------------------------
Large Cap Appreciation Fund - Class B (Incept. date 08/31/2001) 2.59 10.30 4.08 7.59 15.30 4.46
- ------------------------------------------------------------------------------------------------------------------------------------
Large Cap Appreciation Fund - Class C (Incept. date 08/31/2001) 6.49 14.29 4.46 7.49 15.29 4.46
- ------------------------------------------------------------------------------------------------------------------------------------
Large Cap Appreciation Fund - Administrator Class
(Incept. date 08/31/2001) 8.06 16.36 5.48
- ------------------------------------------------------------------------------------------------------------------------------------
Benchmarks
- ------------------------------------------------------------------------------------------------------------------------------------
Russell 1000(R) Growth Index 2 6.16 13.14 2.48
- ------------------------------------------------------------------------------------------------------------------------------------
S&P 500 Index 3 6.38 11.72 4.74
- ------------------------------------------------------------------------------------------------------------------------------------
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FUND CHARACTERISTICS 4 (AS OF MARCH 31, 2006)
- -----------------------------------------------------------------
Beta** 0.94
- -----------------------------------------------------------------
Price to Earnings Ratio (trailing 12 months) 20.71x
- -----------------------------------------------------------------
Price to Book Ratio 3.74x
- -----------------------------------------------------------------
Median Market Cap. ($B) $ 21.08
- -----------------------------------------------------------------
Portfolio Turnover 6*** 80%
- -----------------------------------------------------------------
** A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE RUSSELL 1000(R)
GROWTH INDEX IS 1.00 BY DEFINITION.
*** THIS MEASURE IS BASED ON SIX MONTHS OF THE FUND'S ACTIVITY.
SECTOR DISTRIBUTION 4 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTD BY A PIE CHART IN THE PRINTED MATERIAL.]
Utilities 2%
Consumer Discretionary 11%
Consumer Staples 3%
Energy 11%
Financials 11%
Health Care 14%
Industrials 21%
Information Technology 18%
Materials 5%
Telecommunication Services 4%
TEN LARGEST EQUITY HOLDINGS 4,5 (AS OF MARCH 31, 2006)
- -----------------------------------------------------------------
Boeing Company 1.64%
- -----------------------------------------------------------------
Schlumberger Limited 1.55%
- -----------------------------------------------------------------
Caterpillar Incorporated 1.49%
- -----------------------------------------------------------------
Goldman Sachs Group Incorporated 1.47%
- -----------------------------------------------------------------
Merrill Lynch & Company Incorporated 1.45%
- -----------------------------------------------------------------
Harman International Incorporated 1.44%
- -----------------------------------------------------------------
Monster Worldwide Incorporated 1.44%
- -----------------------------------------------------------------
Burlington Northern Santa Fe Corporation 1.43%
- -----------------------------------------------------------------
Vulcan Materials Company 1.42%
- -----------------------------------------------------------------
Rockwell Automation Incorporated 1.42%
GROWTH OF $10,000 INVESTMENT 7 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTD BY A LINE CHART IN THE PRINTED MATERIAL.]
WELLS FARGO WELLS FARGO
ADVANTAGE ADVANTAGE
LARGE CAP LARGE CAP
APPRECIATION APPRECIATION FUND RUSSELL 1000 (R) S&P 500
DATE FUND - CLASS A - ADMINISTRATOR CLASS GROWTH INDEX INDEX
- ----------- -------------- --------------------- ---------------- --------
8/31/2001 9,425 10,000 10,000 10,000
9/30/2001 8,982 9,530 9,002 9,193
10/31/2001 8,944 9,500 9,475 9,369
11/30/2001 9,340 9,910 10,385 10,087
12/31/2001 9,500 10,090 10,365 10,176
1/31/2002 9,378 9,960 10,182 10,027
2/28/2002 9,114 9,670 9,760 9,834
3/31/2002 9,444 10,030 10,097 10,204
4/30/2002 9,123 9,690 9,273 9,585
5/31/2002 8,982 9,540 9,049 9,515
6/30/2002 8,454 8,980 8,212 8,838
7/31/2002 7,681 8,160 7,760 8,149
8/31/2002 7,710 8,190 7,783 8,202
9/30/2002 7,097 7,550 6,976 7,312
10/31/2002 7,474 7,950 7,616 7,954
11/30/2002 7,568 8,050 8,030 8,422
12/31/2002 7,238 7,700 7,475 7,928
1/31/2003 7,163 7,620 7,294 7,721
2/28/2003 7,088 7,550 7,260 7,605
3/31/2003 7,238 7,710 7,395 7,678
4/30/2003 7,653 8,150 7,942 8,310
5/31/2003 8,077 8,610 8,338 8,748
6/30/2003 8,143 8,680 8,453 8,860
7/31/2003 8,313 8,860 8,664 9,016
8/31/2003 8,539 9,100 8,879 9,191
9/30/2003 8,407 8,960 8,784 9,094
10/31/2003 8,954 9,540 9,277 9,608
11/30/2003 9,029 9,630 9,375 9,692
12/31/2003 9,218 9,830 9,699 10,200
1/31/2004 9,321 9,950 9,897 10,388
2/29/2004 9,491 10,120 9,960 10,532
3/31/2004 9,491 10,130 9,775 10,373
4/30/2004 9,029 9,640 9,661 10,210
5/31/2004 9,180 9,800 9,841 10,350
6/30/2004 9,434 10,080 9,964 10,551
7/31/2004 8,963 9,570 9,401 10,202
8/31/2004 8,954 9,560 9,355 10,243
9/30/2004 9,237 9,870 9,444 10,353
10/31/2004 9,444 10,090 9,591 10,512
11/30/2004 10,038 10,720 9,921 10,937
12/31/2004 10,312 11,022 10,310 11,309
1/31/2005 10,111 10,809 9,966 11,033
2/28/2005 10,408 11,124 10,072 11,265
3/31/2005 10,255 10,972 9,889 11,066
4/30/2005 9,939 10,627 9,700 10,855
5/31/2005 10,284 10,992 10,170 11,200
6/30/2005 10,437 11,165 10,132 11,216
7/31/2005 10,944 11,713 10,627 11,633
8/31/2005 10,839 11,601 10,490 11,528
9/30/2005 11,039 11,814 10,539 11,621
10/31/2005 10,714 11,469 10,436 11,427
11/30/2005 11,135 11,926 10,886 11,859
12/31/2005 11,226 12,026 10,853 11,864
1/31/2006 11,872 12,723 11,044 12,178
2/28/2006 11,721 12,562 11,026 12,211
3/31/2006 11,912 12,766 11,189 12,362
- --------------------------------------------------------------------------------
2 The Russell 1000(R) Growth Index measures the performance of those Russell
1000 companies with higher price-to-book ratios and higher forecasted growth
values. You cannot invest directly in an Index. The Fund has selected the
Russell 1000(R) Growth Index to replace the S&P 500 Index as its benchmark index
going forward because the Russell 1000(R) Growth Index is more representative of
the breadth of the Fund's holdings.
3 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.
4 Fund characteristics, equity holdings and sector distribution are subject to
change. Cash and cash equivalents are not reflected in the calculations of fund
characteristics, equity holdings and sector distribution.
5 The Ten Largest Equity Holdings are calculated based on the market value of
the Master Trust portfolio securities allocable to the Fund divided by total
market value of the portfolio of investments of the Fund. See Notes to Financial
Statements for a discussion of the Master Trust.
6 Portfolio turnover rate represents the activity from the Fund's investment in
a single Master Portfolio.
7 The chart compares the performance of the WELLS FARGO ADVANTAGE LARGE CAP
APPRECIATION FUND Class A and Administrator Class shares for the life of the
Fund with the Russell 1000(R) Growth Index and S&P 500 Index. The chart assumes
a hypothetical investment of $10,000 in Class A and Administrator Class shares
and reflects all operating expenses and, for Class A shares, assumes the maximum
initial sales charge of 5.75%.
17
WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE LARGE COMPANY GROWTH FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The WELLS FARGO ADVANTAGE LARGE COMPANY GROWTH FUND (the Fund) seeks
long-term capital appreciation by investing primarily in large, domestic
companies that we believe have superior growth potential.
ADVISER SUBADVISER
Wells Fargo Funds Management, LLC Peregrine Capital Management, Inc.
FUND MANAGERS FUND INCEPTION DATE
John Dale, CFA 12/31/1982
Gary Nussbaum, CFA
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Class A shares returned 5.67% 1 (excluding sales charges) for
the six-month period that ended March 31, 2006, underperforming the Russell 1000
(R) Growth Index 2, which returned 6.16% and underperforming the S&P 500 Index
2, which returned 6.38% during the same period.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB SITE AT
WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. FOR CLASS
B SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%. PERFORMANCE
INCLUDING SALES CHARGE ASSUMES THE SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. ADMINISTRATOR CLASS, INSTITUTIONAL CLASS, AND CLASS Z SHARES ARE SOLD
WITHOUT A FRONT-END SALES CHARGE OR CONTINGENT DEFERRED SALES CHARGE. OTHER FEES
AND EXPENSES APPLY TO AN INVESTMENT IN THE FUND AND ARE DESCRIBED IN THE FUND'S
CURRENT PROSPECTUS.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
The Fund underperformed its benchmark the Russell 1000 (R) Growth Index
for the six-month period that ended March 31, 2006. The high-growth,
high-quality segment of the market has been out of favor for an unprecedented
six years. However, there have been increasing signs that investors are
returning to growth stocks--a fact supported by improved performance of the
Russell 1000 (R) Growth Index.
Stock investors encountered a favorable market and economic backdrop
during the past six months, with moderate growth in gross domestic product, low
inflation, and low interest rates. Average corporate earnings growth remained
well above average, which continued to help value-oriented sectors relative to
their growth counterparts. With value sectors--such as energy, basic materials,
and telecom services--demonstrating very strong short-term earnings growth, many
stocks in these sectors again performed well during the past six months.
In managing the Fund, we employ a pure growth investment style.
Accordingly, we seek companies that we believe can sustain rapid growth over a
long time horizon. During the six-month period, performance was helped by an
eclectic group of holdings, including toolmaker Fastenal, financial services
company Goldman Sachs, mobile telephone maker Nokia, Internet search leader
Google, network communications gear manufacturer Cisco, and brokerage firm
Charles Schwab. By contrast, computer retailer Dell, semiconductor giant Intel,
biotechnology company Amgen, and education company Apollo Group all detracted
from performance during the period.
WHAT CHANGES DID YOU MAKE TO THE FUND'S HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
The portfolio's turnover has historically been low, averaging less than
20% per year. Turnover was light during the past six months as well, reflecting
the strong fundamentals of the companies already owned by the Fund. We sold
Fiserv, a business outsourcing company, in the first quarter of 2006. With the
proceeds from this one sale, we purchased shares of Google after its stock price
dipped to take advantage of the company's better long-term growth prospects.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
We believe that catalysts for a resurgence in large-capitalization growth
stock performance continue to gain momentum. Earnings growth remains the key
factor. The widening gap between the earnings growth of growth stocks and the
S&P 500 Index has historically been a positive sign for the growth asset class.
The fundamentals of the portfolio's holdings--including revenue, earnings, and
cash flow growth--remain very strong.
Stock valuations in nearly all asset classes continue to be compressed.
Earnings gains for many growth companies have been very strong, even as the
stock prices of many of them have gone nowhere--resulting in much lower
price-to-earnings ratios. If valuations stop compressing, the portfolio's
revenue, earnings, and cash flow growth may lead to long-term, share-price gains
for the Fund's holdings. We remain optimistic that high-quality,
large-capitalization growth stock investing may return to favor. Our confidence
stems from the long-term fundamental improvement and positioning of the
portfolio's companies.
STOCK FUNDS SHOULD ONLY BE CONSIDERED FOR LONG-TERM GOALS AS VALUES
FLUCTUATE IN RESPONSE TO THE ACTIVITIES OF INDIVIDUAL COMPANIES AND GENERAL
MARKET AND ECONOMIC CONDITIONS. INVESTMENT STRATEGIES THAT EMPHASIZE PARTICULAR
MARKET SEGMENTS OR FEWER SECURITIES TEND TO INCREASE THE TOTAL RISK OF AN
INVESTMENT (RELATIVE TO THE BROADER MARKET). THIS FUND IS EXPOSED TO FOREIGN
INVESTMENTS RISK. CONSULT THE FUND'S PROSPECTUS FOR ADDITIONAL INFORMATION ON
THESE AND OTHER RISKS.
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2006, and are those of the Fund's
managers. The views are subject to change at any time in response to changing
circumstances in the market and are not intended to predict or guarantee the
future performance of any individual security, market sector or the markets
generally, or the WELLS FARGO ADVANTAGE LARGE COMPANY GROWTH FUND.
1 The Fund's adviser has committed through April 30, 2007, to waive fees and/or
reimburse expenses to the extent necessary to maintain a certain net operating
expense ratio for the Fund. Actual reductions of operating expenses can increase
total return to shareholders. Without these reductions, the Fund's returns would
have been lower.
The Fund is a gateway feeder Fund that invests all of its assets in a
single master portfolio of the Master Trust with a substantially similar
investment objective and substantially similar investment strategies. References
to the investment activities of the Fund are intended to refer to the investment
activities of the master portfolio in which it invests.
18
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
Including Sales Charge
-------------------------------------
6-Month* 1-Year 5-Year 10-Year
- -----------------------------------------------------------------------------------------------------------
Large Company Growth Fund - Class A (Incept.10/01/1998) (0.40) 9.35 (0.94) 7.90
- -----------------------------------------------------------------------------------------------------------
Large Company Growth Fund - Class B (Incept.10/01/1998) 0.29 10.14 (0.85) 7.82
- -----------------------------------------------------------------------------------------------------------
Large Company Growth Fund - Class C (Incept.11/08/1999) 4.30 14.13 (0.42) 7.83
- -----------------------------------------------------------------------------------------------------------
Large Company Growth Fund - Class Z (Incept.04/11/2005)
- -----------------------------------------------------------------------------------------------------------
Large Company Growth Fund - Administrator Class (Incept.11/11/1994)
- -----------------------------------------------------------------------------------------------------------
Large Company Growth Fund - Institutional Class (Incept.06/30/2004)
- -----------------------------------------------------------------------------------------------------------
Benchmarks
- -----------------------------------------------------------------------------------------------------------
Russell 1000(R) Growth Index 2
- -----------------------------------------------------------------------------------------------------------
S&P 500 Index 3
- -----------------------------------------------------------------------------------------------------------
Excluding Sales Charge
--------------------------------------
6-Month* 1-Year 5-Year 10-Year
- ------------------------------------------------------------------------------------------------------------
Large Company Growth Fund - Class A (Incept.10/01/1998) 5.67 16.02 0.24 8.54
- -----------------------------------------------------------------------------------------------------------
Large Company Growth Fund - Class B (Incept.10/01/1998) 5.29 15.14 (0.44) 7.82
- -----------------------------------------------------------------------------------------------------------
Large Company Growth Fund - Class C (Incept.11/08/1999) 5.30 15.13 (0.42) 7.83
- -----------------------------------------------------------------------------------------------------------
Large Company Growth Fund - Class Z (Incept.04/11/2005) 5.60 15.81 0.06 8.26
- -----------------------------------------------------------------------------------------------------------
Large Company Growth Fund - Administrator Class (Incept.11/11/1994) 5.81 16.30 0.48 8.72
- -----------------------------------------------------------------------------------------------------------
Large Company Growth Fund - Institutional Class (Incept.06/30/2004) 5.94 16.54 0.56 8.76
- -----------------------------------------------------------------------------------------------------------
Benchmarks
- -----------------------------------------------------------------------------------------------------------
Russell 1000(R) Growth Index 2 6.16 13.14 1.66 6.50
- -----------------------------------------------------------------------------------------------------------
S&P 500 Index 3 6.38 11.72 3.97 8.95
- -----------------------------------------------------------------------------------------------------------
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FUND CHARACTERISTICS 4 (AS OF MARCH 31, 2006)
- -----------------------------------------------------------------
Beta** 1.30
- -----------------------------------------------------------------
Price to Earnings Ratio (trailing 12 months) 23.00x
- -----------------------------------------------------------------
Price to Book Ratio 4.54x
- -----------------------------------------------------------------
Median Market Cap. ($B) $ 50.40
- -----------------------------------------------------------------
Portfolio Turnover 6*** 3%
- -----------------------------------------------------------------
** A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE RUSSELL 1000(R)
GROWTH INDEX IS 1.00 BY DEFINITION.
*** THIS MEASURE IS BASED ON SIX MONTHS OF THE FUND'S ACTIVITY.
SECTOR DISTRIBUTION 4 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTD BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Discretionary 11%
Consumer Staples 2%
Financials 25%
Health Care 14%
Industrials 5%
Information Technology 43%
TEN LARGEST EQUITY HOLDINGS 4,5 (AS OF MARCH 31, 2006)
- -----------------------------------------------------------------
Goldman Sachs Group Incorporated 8.95%
- -----------------------------------------------------------------
eBay Incorporated 7.38%
- -----------------------------------------------------------------
Medtronic Incorporated 6.37%
- -----------------------------------------------------------------
Microsoft Corporation 6.37%
- -----------------------------------------------------------------
Charles Schwab Corporation 4.49%
- -----------------------------------------------------------------
Cisco Systems Incorporated 4.10%
- -----------------------------------------------------------------
American International Group Incorporated 3.90%
- -----------------------------------------------------------------
Paychex Incorporated 3.88%
- -----------------------------------------------------------------
Genentech Incorporated 3.85%
- -----------------------------------------------------------------
Franklin Resources Incorporated 3.73%
GROWTH OF $10,000 INVESTMENT 7 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTD BY A LINE CHART IN THE PRINTED MATERIAL.]
WELLS FARGO
ADVANTAGE WELLS FARGO
LARGE COMPANY ADVANTAGE LARGE
GROWTH - COMPANY GROWTH - RUSSELL 1000 (R) S&P 500
DATE CLASS A ADMINISTRATOR CLASS GROWTH INDEX INDEX
- ----------- ------------- ------------------- ---------------- --------
3/31/1996 9,425 10,000 10,000 10,000
4/30/1996 9,812 10,410 10,263 10,147
5/31/1996 10,123 10,741 10,621 10,408
6/30/1996 9,988 10,597 10,636 10,447
7/31/1996 9,433 10,008 10,013 9,986
8/31/1996 9,534 10,115 10,271 10,196
9/30/1996 10,420 11,055 11,019 10,769
10/31/1996 10,337 10,968 11,085 11,067
11/30/1996 10,994 11,665 11,917 11,902
12/31/1996 10,853 11,515 11,684 11,666
1/31/1997 11,723 12,438 12,503 12,396
2/28/1997 11,458 12,157 12,418 12,492
3/31/1997 10,645 11,294 11,746 11,980
4/30/1997 11,477 12,177 12,526 12,694
5/31/1997 12,343 13,096 13,430 13,466
6/30/1997 12,994 13,786 13,968 14,069
7/31/1997 14,193 15,058 15,202 15,188
8/31/1997 13,410 14,228 14,313 14,337
9/30/1997 14,344 15,219 15,017 15,121
10/31/1997 13,803 14,645 14,462 14,616
11/30/1997 14,227 15,095 15,076 15,293
12/31/1997 14,472 15,355 15,245 15,556
1/31/1998 14,852 15,758 15,701 15,727
2/28/1998 16,030 17,007 16,882 16,861
3/31/1998 16,443 17,445 17,555 17,724
4/30/1998 16,872 17,901 17,797 17,905
5/31/1998 16,328 17,324 17,292 17,597
6/30/1998 17,816 18,903 18,350 18,312
7/31/1998 17,853 18,942 18,229 18,118
8/31/1998 14,873 15,780 15,493 15,500
9/30/1998 16,271 17,263 16,683 16,493
10/31/1998 17,464 18,530 18,024 17,834
11/30/1998 19,122 20,295 19,396 18,915
12/31/1998 21,415 22,726 21,145 20,004
1/31/1999 23,160 24,585 22,386 20,840
2/28/1999 22,185 23,551 21,363 20,192
3/31/1999 23,561 25,015 22,489 21,000
4/30/1999 23,659 25,126 22,518 21,813
5/31/1999 22,834 24,248 21,827 21,298
6/30/1999 24,842 26,390 23,355 22,480
7/31/1999 23,628 25,108 22,612 21,778
8/31/1999 23,687 25,170 22,981 21,670
9/30/1999 22,782 24,216 22,498 21,076
10/31/1999 24,748 26,305 24,197 22,410
11/30/1999 25,652 27,272 25,504 22,865
12/31/1999 28,472 30,273 28,156 24,212
1/31/2000 27,740 29,505 26,835 22,997
2/29/2000 28,259 30,059 28,148 22,562
3/31/2000 31,586 33,605 30,163 24,769
4/30/2000 30,363 32,305 28,727 24,023
5/31/2000 28,340 30,159 27,279 23,531
6/30/2000 30,520 32,487 29,347 24,112
7/31/2000 30,617 32,592 28,123 23,736
8/31/2000 32,451 34,551 30,669 25,210
9/30/2000 30,186 32,146 27,767 23,879
10/31/2000 30,170 32,132 26,454 23,778
11/30/2000 27,616 29,418 22,555 21,905
12/31/2000 27,386 29,178 21,842 22,012
1/31/2001 27,818 29,643 23,351 22,793
2/28/2001 23,598 25,147 19,386 20,717
3/31/2001 21,121 22,517 17,277 19,405
4/30/2001 23,386 24,935 19,462 20,911
5/31/2001 23,170 24,714 19,176 21,051
6/30/2001 22,518 24,023 18,731 20,540
7/31/2001 22,115 23,594 18,263 20,339
8/31/2001 20,111 21,462 16,769 19,067
9/30/2001 18,156 19,375 15,096 17,529
10/31/2001 18,995 20,278 15,888 17,863
11/30/2001 21,219 22,659 17,415 19,234
12/31/2001 21,423 22,880 17,382 19,403
1/31/2002 21,288 22,738 17,075 19,120
2/28/2002 19,867 21,222 16,366 18,751
3/31/2002 20,751 22,176 16,932 19,456
4/30/2002 19,129 20,444 15,550 18,277
5/31/2002 18,547 19,822 15,174 18,143
6/30/2002 17,329 18,523 13,770 16,851
7/31/2002 15,630 16,712 13,013 15,539
8/31/2002 15,813 16,910 13,052 15,640
9/30/2002 14,062 15,040 11,698 13,941
10/31/2002 15,663 16,754 12,771 15,167
11/30/2002 16,734 17,905 13,465 16,058
12/31/2002 15,373 16,450 12,535 15,116
1/31/2003 14,819 15,860 12,231 14,721
2/28/2003 14,681 15,717 12,175 14,500
3/31/2003 14,868 15,929 12,401 14,640
4/30/2003 16,204 17,353 13,318 15,846
5/31/2003 16,970 18,177 13,983 16,679
6/30/2003 17,166 18,389 14,176 16,893
7/31/2003 18,050 19,338 14,528 17,190
8/31/2003 18,392 19,711 14,890 17,525
9/30/2003 17,907 19,191 14,730 17,340
10/31/2003 18,991 20,361 15,558 18,319
11/30/2003 18,909 20,278 15,720 18,481
12/31/2003 19,443 20,854 16,264 19,449
1/31/2004 19,651 21,079 16,596 19,807
2/29/2004 19,630 21,066 16,702 20,082
3/31/2004 19,366 20,785 16,392 19,779
4/30/2004 19,044 20,444 16,201 19,468
5/31/2004 19,333 20,757 16,503 19,735
6/30/2004 19,329 20,757 16,710 20,118
7/31/2004 18,123 19,467 15,765 19,452
8/31/2004 18,107 19,453 15,687 19,530
9/30/2004 18,315 19,684 15,836 19,741
10/31/2004 18,665 20,061 16,083 20,043
11/30/2004 19,447 20,909 16,636 20,855
12/31/2004 20,025 21,533 17,289 21,564
1/31/2005 18,913 20,342 16,712 21,037
2/28/2005 18,946 20,384 16,890 21,479
3/31/2005 18,429 19,830 16,582 21,099
4/30/2005 17,985 19,355 16,267 20,698
5/31/2005 19,198 20,670 17,054 21,356
6/30/2005 19,243 20,721 16,991 21,386
7/31/2005 20,604 22,188 17,821 22,182
8/31/2005 20,278 21,842 17,592 21,980
9/30/2005 20,233 21,796 17,673 22,158
10/31/2005 20,469 22,054 17,501 21,788
11/30/2005 21,573 23,254 18,255 22,612
12/31/2005 21,120 22,767 18,199 22,621
1/31/2006 21,091 22,743 18,519 23,220
2/28/2006 21,128 22,785 18,490 23,283
3/31/2006 21,381 23,062 18,763 23,571
- --------------------------------------------------------------------------------
Prior to April 11, 2005, the WELLS FARGO ADVANTAGE LARGE COMPANY GROWTH
FUND was named the Wells Fargo Large Company Growth Fund. Performance shown for
the Class A and Class B shares of the Fund for periods prior to November 8,
1999, reflects the performance shown for the applicable share class of the
Norwest Advantage Large Company Growth Fund, its predecessor fund. Performance
shown for the Class A shares for periods prior to October 1, 1998, reflects the
performance of the Administrator Class shares of the Fund adjusted to reflect
Class A sales charges and expenses. Performance shown for the Class B shares for
periods prior to October 1,1998, reflects the performance shown for the
Administrator Class shares of the Fund adjusted to reflect Class B sales charges
and expenses. Performance shown for the Class C shares for periods prior to
November 8, 1999, reflects the performance shown for the Class B shares adjusted
to reflect Class C sales charges and expenses. Prior to April 11, 2005, the
Administrator Class was named the Institutional Class. Performance shown for the
Administrator Class shares prior to November 8,1999 reflects the performance
shown for the Institutional Class shares of Norwest Advantage Large Company
Growth Fund, its predecessor fund. For periods prior to April 11, 2005, the
Institutional Class was named the Select Class. Performance shown for the
Institutional Class shares for periods prior to June 30, 2004, reflects the
performance shown for the Administrator Class shares and of the Fund adjusted to
reflect Institutional Class expenses. Performance shown for the Class Z shares
for periods prior to April 11, 2005 reflects the performance shown for the
Administrator Class shares of the Fund, and for periods prior to November 8,
1999 reflects the performance shown for the Institutional Class shares of
Norwest Advantage Large Company Growth Fund, its predecessor fund.
2 The Russell 1000(R) Growth Index measures the performance of those Russell
1000 companies with higher price-to-book ratios and higher forecasted growth
values. You cannot invest directly in an Index. The Fund has selected the
Russell 1000(R) Growth Index to replace the S&P 500 Index as its benchmark index
going forward because the Russell 1000(R) Growth Index is more representative of
the breadth of the Fund's holdings.
3 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.
4 Fund characteristics, equity holdings and sector distribution are subject to
change. Cash and cash equivalents are not reflected in the calculations of fund
characteristics, equity holdings and sector distribution.
5 The Ten Largest Equity Holdings are calculated based on the market value of
the Master Trust portfolio securities allocable to the Fund divided by total
market value of the portfolio of investments of the Fund. See Notes to Financial
Statements for a discussion of the Master Trust.
6 Portfolio turnover rate represents the activity from the Fund's investment in
a single Master Portfolio.
7 The chart compares the performance of the WELLS FARGO ADVANTAGE LARGE COMPANY
GROWTH FUND Class A and Administrator Class shares for the most recent ten years
with the Russell 1000(R) Growth Index and S&P 500 Index. The chart assumes a
hypothetical investment of $10,000 in Class A and Administrator Class shares and
reflects all operating expenses and, for Class A shares, assumes the maximum
initial sales charge of 5.75%.
19
WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE SMALL COMPANY GROWTH FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The WELLS FARGO ADVANTAGE SMALL COMPANY GROWTH FUND (the Fund) seeks to
provide long-term capital appreciation by investing in smaller domestic
companies.
ADVISER SUBADVISER
Wells Fargo Funds Management, LLC Peregrine Capital Management, Inc.
FUND MANAGERS FUND INCEPTION DATE
Wiliam A. Grierson 12/31/1982
Daniel J. Hagen, CFA
Robert B. Mersky, CFA
James P. Ross, CFA
Paul E. von Kuster, CFA
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Class A shares returned 18.29% 1 (excluding sales charges) for
the six-month period that ended March 31, 2006, outperforming the Russell 2000
(R) Growth Index 2, which returned 16.20% and outperforming the Russell 2000 (R)
Index 3, which returned 15.23% during the same period.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTION OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB SITE AT
WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. FOR CLASS
B SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%. PERFORMANCE
INCLUDING SALES CHARGE ASSUMES THE SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. ADMINISTRATOR CLASS SHARES ARE SOLD WITHOUT A FRONT-END SALES CHARGE OR
CONTINGENT DEFERRED SALES CHARGE. OTHER FEES AND EXPENSES APPLY TO AN INVESTMENT
IN THE FUND AND ARE DESCRIBED IN THE FUND'S CURRENT PROSPECTUS.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
Good stock selection, rather than sector weighting differences, was the
primary driver of the Fund's positive performance. Chaparral Steel, the number
two domestic producer of structural steel, rose from $24 to nearly $65 on
tremendous earnings acceleration. Integrated Device Technologies, the Fund's
largest holding, gained 38% as the company began to generate significant
synergies from their recently completed merger with Integrated Circuit Systems.
Illumina, a company that is quickly becoming one of the leaders in tools that
analyze genetic variation and function, appreciated more than 100%.
In general, the Fund benefited from the change that began in the small-cap
market in early 2005. We believe that the first quarter of 2005 marked the end
of five years of underperformance for small-growth stocks. During those five
years the Russell 2000 Value Index posted annualized returns of 15.4% per year,
while the Russell 2000 Growth Index lost 6.6% per year. Since that time, these
two groups of small stocks have returned to balance. The Fund's relative
performance to its benchmark has shown steady improvement as investors have
become increasingly focused on individual companies instead of sector or
industry trends.
WHAT CHANGES DID YOU MAKE TO THE FUND'S HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
The Fund is managed exclusively on a bottom-up basis, with purchase
decisions made based on individual growth and valuation characteristics of
candidate companies. During the period, we added Rackable Systems because of
their long-term earnings growth prospects, which are driven by leadership in
high-density server and storage products for large-scale data centers. RTI
International Metals, a titanium producer, was also added on the strength of
their earnings potential. Cardiome Pharma, a drug development company with
market opportunity in a trial fibrillation was also purchased.
Sales during the period were consistent with our disciplined process.
Vista Print, a leading online supplier of high-quality graphic design services
and customized printing was sold because it achieved its upside sell target
price. Long-time holding, Cephalon, was sold after an unfavorable FDA panel vote
on Sparlon for the treatment of ADHD. Despite this setback, the stock rose 37%
in the six months that ended March 31, 2006. Allegheny Technologies was sold to
make room for RTI International.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
We have managed small growth portfolios using the same investment process
for more than 30 years, giving us a rare perspective on market cycles. We
believe that the market recently emerged from the post-bubble bust, and that we
are in the beginning of a prolonged period for normal small cap markets where
both growth and value stocks produce similar performance, and great companies in
all sectors are rewarded. We will continue to seek investments in smaller
domestic companies that have the potential to provide long-term capital
appreciation.
STOCK FUNDS SHOULD ONLY BE CONSIDERED FOR LONG-TERM GOALS AS VALUES
FLUCTUATE IN RESPONSE TO THE ACTIVITIES OF INDIVIDUAL COMPANIES AND GENERAL
MARKET AND ECONOMIC CONDITIONS. FUNDS THAT INVEST IN SMALLER COMPANIES INVOLVE
ADDITIONAL RISKS BECAUSE THESE COMPANIES OFTEN HAVE LIMITED FINANCIAL RESOURCES,
AND THEIR STOCKS TEND TO BE MORE VOLATILE AND LESS LIQUID THAN THOSE OF LARGE
COMPANIES. THE FUND'S INVESTMENT PROCESS MAY, AT TIMES, RESULT IN HIGHER THAN
AVERAGE PORTFOLIO TURNOVER AND INCREASED TRADING EXPENSES, AND MAY GENERATE
HIGHER SHORT-TERM CAPITAL GAINS. INVESTMENT STRATEGIES THAT EMPHASIZE PARTICULAR
MARKET SEGMENTS OR FEWER SECURITIES TEND TO INCREASE THE TOTAL RISK OF AN
INVESTMENT (RELATIVE TO THE BROADER MARKET). CONSULT THE FUND'S PROSPECTUS FOR
ADDITIONAL INFORMATION ON THESE AND OTHER RISKS.
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2006, and are those of the Fund's
managers. The views are subject to change at any time in response to changing
circumstances in the market and are not intended to predict or guarantee the
future performance of any individual security, market sector or the markets
generally, or the WELLS FARGO ADVANTAGE SMALL COMPANY GROWTH FUND.
1 The Fund's Adviser has committed through January 31, 2007, to waive fees
and/or reimburse expenses to the extent necessary to maintain a certain net
operating expense ratio for the Fund. Actual reductions of operating expenses
can increase total return to shareholders. Without these reductions, the Fund's
returns would have been lower.
The Fund is a gateway feeder Fund that invests all of its assets in a
single master portfolio of the Master Trust with a substantially similar
investment objective and substantially similar investment strategies. References
to the investment activities of the Fund are intended to refer to the investment
activities of the master portfolio in which it invests.
20
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge
------------------------------------ ----------------------------------
6-Month* 1-Year 5-Year 10-Year 6-Month* 1-Year 5-Year 10-Year
- --------------------------------------------------------------------------------------------------------------------------------
Small Company Growth Fund -Class A
(Incept. date 01/30/2004) 11.49 23.23 8.04 7.34 18.29 30.75 9.33 7.98
- --------------------------------------------------------------------------------------------------------------------------------
Small Company Growth Fund - Class B
(Incept. date 01/30/2004) 12.83 24.79 8.24 7.18 17.83 29.79 8.53 7.18
- --------------------------------------------------------------------------------------------------------------------------------
Small Company Growth Fund - Class C
(Incept. date 01/30/2004) 16.82 28.74 8.66 7.25 17.82 29.74 8.66 7.25
- --------------------------------------------------------------------------------------------------------------------------------
Small Company Growth Fund -
- --------------------------------------------------------------------------------------------------------------------------------
Administrator Class (Incept. date 11/11/1994) 18.44 31.08 9.60 8.25
- --------------------------------------------------------------------------------------------------------------------------------
Benchmarks
- --------------------------------------------------------------------------------------------------------------------------------
Russell 2000(R) Growth Index 2 16.20 27.84 8.59 5.51
- --------------------------------------------------------------------------------------------------------------------------------
Russell 2000(R) Index 3 15.23 25.85 12.59 10.15
- --------------------------------------------------------------------------------------------------------------------------------
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FUND CHARACTERISTICS 4 (AS OF MARCH 31, 2006)
- -----------------------------------------------------------------
Beta** 0.90
- -----------------------------------------------------------------
Price to Earnings Ratio (trailing 12 months) 31.00x
- -----------------------------------------------------------------
Price to Book Ratio 3.30x
- -----------------------------------------------------------------
Median Market Cap. ($B) $ 0.90
- -----------------------------------------------------------------
Portfolio Turnover 6*** 67%
- -----------------------------------------------------------------
** A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE RUSSELL 2000(R)
GROWTH INDEX IS 1.00 BY DEFINITION.
*** THIS MEASURE IS BASED ON SIX MONTHS OF THE FUND'S ACTIVITY.
SECTOR DISTRIBUTION 4 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTD BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Discretionary 12%
Consumer Staples 2%
Energy 9%
Financials 3%
Health Care 23%
Industrials 10%
Information Technology 36%
Materials 5%
TEN LARGEST EQUITY HOLDINGS 4,5 (AS OF MARCH 31, 2006)
- -----------------------------------------------------------------
Integrated Device Technology Incorporated 1.82%
- -----------------------------------------------------------------
PMC-Sierra Incorporated 1.44%
- -----------------------------------------------------------------
Capitalsource Incorporated 1.41%
- -----------------------------------------------------------------
Petrohawk Energy Corporation 1.37%
- -----------------------------------------------------------------
Parametric Technology Corporation 1.36%
- -----------------------------------------------------------------
Onyx Pharmaceuticals Incorporated 1.35%
- -----------------------------------------------------------------
Oxford Industries Incorporated 1.34%
- -----------------------------------------------------------------
Dollar Tree Stores Incorporated 1.33%
- -----------------------------------------------------------------
Esterline Technologies Corporation 1.31%
- -----------------------------------------------------------------
Quest Software Incorporated 1.30%
GROWTH OF $10,000 INVESTMENT 7 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTD BY A LINE CHART IN THE PRINTED MATERIAL.]
WELLS FARGO WELLS FARGO
ADVANTAGE ADVANTAGE SMALL
SMALL COMPANY COMPANY GROWTH
GROWTH FUND FUND - ADMINISTRATOR RUSSELL 2000 (R) RUSSELL (R)
DATE - CLASS A CLASS GROWTH INDEX 2000 INDEX
- ----------- ------------- -------------------- --------------- -----------
3/31/1996 9,425 10,000 10,000 10,000
4/30/1996 10,166 10,789 10,768 10,535
5/31/1996 10,482 11,126 11,320 10,950
6/30/1996 9,851 10,459 10,585 10,500
7/31/1996 9,189 9,757 9,292 9,583
8/31/1996 9,907 10,523 9,980 10,140
9/30/1996 10,296 10,937 10,494 10,537
10/31/1996 10,068 10,698 10,041 10,374
11/30/1996 10,437 11,092 10,321 10,802
12/31/1996 10,664 11,335 10,522 11,085
1/31/1997 11,028 11,725 10,785 11,307
2/28/1997 10,581 11,252 10,134 11,033
3/31/1997 10,088 10,730 9,418 10,512
4/30/1997 10,004 10,643 9,309 10,542
5/31/1997 11,047 11,755 10,708 11,715
6/30/1997 11,837 12,598 11,071 12,217
7/31/1997 12,734 13,555 11,638 12,786
8/31/1997 12,937 13,775 11,987 13,078
9/30/1997 13,896 14,799 12,944 14,036
10/31/1997 13,545 14,428 12,166 13,419
11/30/1997 13,179 14,041 11,876 13,332
12/31/1997 12,995 13,848 11,883 13,566
1/31/1998 12,908 13,758 11,725 13,351
2/28/1998 13,875 14,791 12,760 14,338
3/31/1998 14,585 15,551 13,295 14,929
4/30/1998 14,670 15,645 13,376 15,011
5/31/1998 13,486 14,386 12,404 14,202
6/30/1998 13,211 14,095 12,530 14,231
7/31/1998 12,396 13,228 11,484 13,079
8/31/1998 9,237 9,859 8,834 10,539
9/30/1998 9,951 10,624 9,729 11,364
10/31/1998 10,645 11,367 10,237 11,828
11/30/1998 11,258 12,024 11,031 12,447
12/31/1998 11,782 12,587 12,030 13,218
1/31/1999 12,139 12,970 12,571 13,394
2/28/1999 10,827 11,571 11,421 12,309
3/31/1999 10,755 11,496 11,828 12,501
4/30/1999 11,532 12,329 12,872 13,621
5/31/1999 12,011 12,844 12,892 13,820
6/30/1999 12,770 13,658 13,572 14,444
7/31/1999 12,754 13,644 13,153 14,049
8/31/1999 11,968 12,807 12,661 13,529
9/30/1999 11,822 12,652 12,905 13,532
10/31/1999 11,920 12,760 13,235 13,587
11/30/1999 12,879 13,790 14,634 14,398
12/31/1999 14,000 14,993 17,214 16,028
1/31/2000 13,857 14,843 17,054 15,770
2/29/2000 16,318 17,483 21,023 18,374
3/31/2000 16,450 17,628 18,813 17,163
4/30/2000 15,923 17,066 16,913 16,130
5/31/2000 15,147 16,238 15,432 15,189
6/30/2000 16,165 17,333 17,425 16,514
7/31/2000 15,101 16,195 15,932 15,982
8/31/2000 16,416 17,609 17,608 17,201
9/30/2000 15,802 16,954 16,733 16,696
10/31/2000 15,428 16,556 15,374 15,951
11/30/2000 13,248 14,220 12,582 14,313
12/31/2000 14,292 15,344 13,352 15,542
1/31/2001 14,991 16,098 14,432 16,352
2/28/2001 14,175 15,224 12,454 15,279
3/31/2001 13,002 13,968 11,322 14,532
4/30/2001 14,197 15,254 12,708 15,669
5/31/2001 14,862 15,972 13,002 16,054
6/30/2001 15,354 16,504 13,373 16,608
7/31/2001 14,928 16,050 12,232 15,710
8/31/2001 14,491 15,583 11,468 15,202
9/30/2001 12,085 12,999 9,617 13,156
10/31/2001 12,839 13,813 10,542 13,926
11/30/2001 13,715 14,758 11,422 15,003
12/31/2001 14,345 15,440 12,133 15,929
1/31/2002 13,926 14,991 11,701 15,763
2/28/2002 13,134 14,142 10,944 15,332
3/31/2002 14,164 15,254 11,895 16,564
4/30/2002 13,700 14,758 11,638 16,715
5/31/2002 13,214 14,237 10,957 15,973
6/30/2002 12,440 13,406 10,028 15,181
7/31/2002 10,401 11,210 8,487 12,888
8/31/2002 10,493 11,312 8,483 12,856
9/30/2002 9,625 10,379 7,870 11,933
10/31/2002 9,895 10,672 8,268 12,316
11/30/2002 10,564 11,396 9,088 13,415
12/31/2002 10,074 10,869 8,461 12,667
1/31/2003 9,850 10,630 8,231 12,317
2/28/2003 9,720 10,493 8,012 11,945
3/31/2003 9,901 10,690 8,133 12,099
4/30/2003 10,547 11,390 8,903 13,246
5/31/2003 11,686 12,622 9,906 14,667
6/30/2003 12,038 13,005 10,097 14,932
7/31/2003 12,794 13,825 10,860 15,867
8/31/2003 13,400 14,483 11,444 16,594
9/30/2003 13,209 14,279 11,154 16,287
10/31/2003 14,252 15,410 12,118 17,655
11/30/2003 14,576 15,763 12,513 18,282
12/31/2003 15,109 16,343 12,569 18,653
1/31/2004 15,720 17,007 13,229 19,462
2/29/2004 15,709 16,995 13,209 19,638
3/31/2004 15,637 16,917 13,270 19,820
4/30/2004 15,040 16,283 12,604 18,809
5/31/2004 15,233 16,493 12,855 19,108
6/30/2004 15,670 16,977 13,283 19,913
7/31/2004 14,420 15,619 12,090 18,573
8/31/2004 14,027 15,200 11,830 18,478
9/30/2004 14,813 16,050 12,485 19,345
10/31/2004 15,305 16,588 12,788 19,726
11/30/2004 16,411 17,797 13,869 21,436
12/31/2004 17,076 18,515 14,367 22,070
1/31/2005 16,046 17,408 13,720 21,150
2/28/2005 16,135 17,504 13,908 21,508
3/31/2005 15,534 16,854 13,387 20,892
4/30/2005 14,622 15,874 12,535 19,695
5/31/2005 15,317 16,632 13,419 20,985
6/30/2005 16,080 17,456 13,852 21,795
7/31/2005 16,959 18,419 14,821 23,177
8/31/2005 16,725 18,172 14,612 22,748
9/30/2005 17,170 18,654 14,727 22,819
10/31/2005 16,269 17,679 14,182 22,109
11/30/2005 17,443 18,960 14,985 23,182
12/31/2005 17,738 19,279 14,962 23,075
1/31/2006 19,543 21,250 16,406 25,145
2/28/2006 19,621 21,335 16,319 25,074
3/31/2006 20,311 22,094 17,113 26,290
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Performance shown for Class A, Class B and Class C shares of the Fund for
periods prior to January 30, 2004, reflects the performance shown of the
Administrator Class shares of the Fund adjusted to reflect applicable sales
charges and expenses. Prior to April 11, 2005, the Administrator Class was named
the Institutional Class.
2 The Russell 2000(R) Growth Index measures the performance shown of those
Russell 2000 companies with higher price-to-book ratios and higher forecasted
growth values. You cannot invest directly in an Index. The Fund has selected the
Russell 2000(R) Growth Index to replace the Russell 2000(R) Index as its
benchmark index going forward because the Russell 2000(R) Growth Index is more
representative of the breadth of the Fund's holdings.
3 The Russell 2000(R) Index measures the performance of the 2,000 smallest
companies in the Russell 3000(R) Index, which represents approximately 8% of the
total market capitalization of the Russell 3000(R) Index. You cannot invest
directly in an Index.
4 Fund characteristics, equity holdings and sector distribution are subject to
change. Cash and cash equivalents are not reflected in the calculations of fund
characteristics, equity holdings and sector distribution.
5 The Ten Largest Equity Holdings are calculated based on the market value of
the Master Trust portfolio securities allocable to the Fund divided by total
market value of the portfolio of investments of the Fund. See Notes to Financial
Statements for a discussion of the Master Trust.
6 Portfolio turnover rate represents the activity from the Fund's investment in
a single Master Portfolio.
7 The chart compares the performance of the Wells Fargo Advantage Small Company
Growth Fund Class A and Administrator Class shares for the most recent ten years
with the Russell 2000(R) Growth Index and Russell 2000(R) Index. The chart
assumes a hypothetical investment of $10,000 in Class A and Administrator Class
shares and reflects all operating expenses and, for Class A shares, assumes the
maximum initial sales charge of 5.75%.
21
WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS PERFORMANCE HIGHLIGHTS
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WELLS FARGO ADVANTAGE SMALL COMPANY VALUE FUND
INVESTMENT OBJECTIVE
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The WELLS FARGO ADVANTAGE SMALL COMPANY VALUE FUND (the Fund) seeks
long-term capital appreciation. EFFECTIVE NOVEMBER 1, 2005, THIS FUND IS
CLOSED TO NEW INVESTORS.
ADVISER SUBADVISER
Wells Fargo Funds Management, LLC Peregrine Capital Management, Inc.
FUND MANAGERS FUND INCEPTION DATE
Jason R. Ballsrud, CFA 06/01/1997
Tasso H. Coin, Jr., CFA
Douglas G. Pugh, CFA
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
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The Fund's Class A shares returned 11.59% 1 (excluding sales charges) for
the six-month period that ended March 31, 2006, underperforming the Russell 2000
(R) Index 2, which returned 15.23% and underperforming the Russell 2000 (R)
Value Index 3 which returned 14.26% during the same period.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTION OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB SITE AT
WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. FOR CLASS
B SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%. PERFORMANCE
INCLUDING SALES CHARGE ASSUMES THE SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. ADMINISTRATOR CLASS SHARES ARE SOLD WITHOUT A FRONT-END SALES CHARGE OR
CONTINGENT DEFERRED SALES CHARGE. OTHER FEES AND EXPENSES APPLY TO AN INVESTMENT
IN THE FUND AND ARE DESCRIBED IN THE FUND'S CURRENT PROSPECTUS.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
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The Fund delivered strong absolute returns but was unable to keep pace
with its benchmarks in a small-cap growth driven market. As 2005 came to an end,
investors maintained a cautious outlook with several concerns weighing on the
2006 outlook. The markets reflected this by pushing gold prices to new highs,
while keeping commodity costs elevated and edging up interest rates. Then as
January 2006 closed, market fears abated with investors favoring aggressive
growth. The result of this shift in sentiment drove the returns in January to
nearly double digits for the small cap benchmarks. With a brief pause in early
February, markets then regained momentum and never looked backed through the
first quarter. As a result, the Russell 2000 Value's first quarter returns
nearly tripled its entire return of 2005.
Nevertheless, strong stock selection in technology stocks helped the Fund
outperform in the fourth quarter of 2005, though the Fund was unable to keep
pace with the technology sector as the market moved into the fast pace of first
quarter 2006. Most of the Fund's relative underperformance was limited to the
technology sector. The portfolio's average technology holding returned 0.75%
versus the Russell 2000 Value average technology return of 22.3%.
WHAT CHANGES DID YOU MAKE TO THE FUND'S HOLDINGS DURING THE PERIOD?
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Changes to the portfolio were consistent with our strict value process.
Portfolio turnover was driven by selling those positions that received takeover
offers or had achieved fair value due to price appreciation. There was only one
position that was sold for fundamental deterioration. Over the past six months
19 new positions were added in several sectors. These additions had very strong
value characteristics associated with them.
We also sold some of the Fund's holdings. For example, high consumer
demand for the next generation of cell phones prompted us to sell Multi-Fineline
Electronics (MFLX) and OmniVision Technologies (OVTI) after they performed
nicely in the 4th quarter of 2005 and had reached their fair value due to price
appreciation. OmniVision is the leading supplier of camera-on-a-chip solutions
that many of the new phones have built into their designs. OmniVision has
successfully integrated its products into all of the major handset providers,
significantly boosting its sales and earnings. Multi-Fineline specializes in
flexible circuitry systems that are used in the very popular clamshell-folding
cell phone designs. The Fund also saw a resurgence of takeover activity during
the period. Three positions were offered favorable bids during the six-month
period. These positions represented 3% of the portfolio's assets and received an
average premium of 30% over their pre-takeover price.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
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We believe the large capitalization low quality stocks within the Russell
2000 Value technology sector are potential candidates for a sharp contraction in
the coming months due to lack of quality and weak fundamentals. Our approach is
to remain positioned in the strongest small value names we can identify and
strictly avoid speculation--just as we have for over a decade. Our methodology
is in place and we believe it will continue to support our investment strategy.
STOCK FUNDS SHOULD ONLY BE CONSIDERED FOR LONG-TERM GOALS AS VALUES
FLUCTUATE IN RESPONSE TO THE ACTIVITIES OF INDIVIDUAL COMPANIES AND GENERAL
MARKET AND ECONOMIC CONDITIONS. FUNDS THAT INVEST IN SMALLER COMPANIES INVOLVE
ADDITIONAL RISKS BECAUSE THESE COMPANIES OFTEN HAVE LIMITED FINANCIAL RESOURCES,
AND THEIR 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.
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The views expressed are as of March 31, 2006, and are those of the Fund's
managers. The views are subject to change at any time in response to changing
circumstances in the market and are not intended to predict or guarantee the
future performance of any individual security, market sector or the markets
generally, or the WELLS FARGO ADVANTAGE SMALL COMPANY VALUE FUND.
1 The Fund's Adviser has committed through January 31, 2007, to waive fees
and/or reimburse expenses to the extent necessary to maintain a certain net
operating expense ratio for the Fund. Actual reductions of operating expenses
can increase total return to shareholders. Without these reductions, the Fund's
returns would have been lower.
The Fund is a gateway feeder Fund that invests all of its assets in a
single master portfolio of the Master Trust with a substantially similar
investment objective and substantially similar investment strategies. References
to the investment activities of the Fund are intended to refer to the investment
activities of the Master Portfolio in which it invests.
Performance shown for the Class A, Class B, and Administrator Class shares
of the Fund for periods prior to January 31, 2002, and Class C shares for
periods prior to August 31, 2002, reflects the performance of the Small Company
Value Master Portfolio, a Master portfolio in which the Fund invests, adjusted
to reflect the appropriate fees and expenses. The Small Company Value Master
Portfolio has a substantially identical investment objective and investment
strategy as the Fund. For periods prior to April 11, 2005, the Administrator
Class was named the Institutional Class.
22
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
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AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF MARCH 31, 2006)
Including Sales Charge Excluding Sales Charge
---------------------------------------- -----------------------------------------
6-Month* 1-Year 5-Year Life of Fund 6-Month* 1-Year 5-Year Life of Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Small Company Value Fund -
Class A (Incept. Date 01/31/2002) 5.17 16.09 16.10 13.44 11.59 23.17 17.48 14.20
- ------------------------------------------------------------------------------------------------------------------------------------
Small Company Value Fund -
Class B (Incept. Date 01/31/2002) 6.08 17.13 16.36 13.34 11.08 22.13 16.57 13.34
- ------------------------------------------------------------------------------------------------------------------------------------
Small Company Value Fund -
Class C (Incept. Date 08/30/2002) 10.09 21.22 16.58 13.34 11.09 22.22 16.58 13.34
- ------------------------------------------------------------------------------------------------------------------------------------
Small Company Value Fund -
Administrator Class (Incept. Date 01/31/2002) 11.68 23.42 17.71 14.41
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Benchmarks
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Russell 2000(R) Index 2 15.23 25.85 12.59 9.59
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Russell 2000(R) Value Index 3 14.26 23.77 16.24 12.92
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* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FUND CHARACTERISTICS 4 (AS OF MARCH 31, 2006)
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Beta** 0.93
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Price to Earnings Ratio (trailing 12 months) 17.00x
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Price to Book Ratio 1.90x
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Median Market Cap. ($B) $ 0.94
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Portfolio Turnover 6*** 58%
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** A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE RUSSELL 2000(R)
VALUE INDEX IS 1.00 BY DEFINITION.
*** THIS MEASURE IS BASED ON SIX MONTHS OF THE FUND'S ACTIVITY.
SECTOR DISTRIBUTION 4 (AS OF MARCH 31, 2006)
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[THE FOLLOWING TABLE WAS REPRESENTD BY A PIE CHART IN THE PRINTED MATERIAL.]
Utilities 2%
Consumer Discretionary 21%
Consumer Staples 2%
Energy 3%
Financials 27%
Health Care 5%
Industrials 17%
Information Technology 15%
Materials 5%
Telecommunication Services 3%
TEN LARGEST EQUITY HOLDINGS 4,5 (AS OF MARCH 31, 2006)
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CKE Restaurants Incorporated 2.09%
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Armor Holdings Incorporated 1.62%
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Avocent Corporation 1.50%
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Strategic Hotels & Resorts Incorporated 1.41%
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Perini Corporation 1.40%
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General Cable Corporation 1.37%
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Hutchinson Technology 1.36%
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Emulex Corporation 1.36%
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Performance Food Group Company 1.34%
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BioMed Realty Trust Incorporated 1.34%
GROWTH OF $10,000 INVESTMENT 7 (AS OF MARCH 31, 2006)
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[THE FOLLOWING TABLE WAS REPRESENTD BY A LINE CHART IN THE PRINTED MATERIAL.]
WELLS FARGO
ADVANTAGE WELLS FARGO
SMALL COMPANY ADVANTAGE SMALL
VALUE FUND - COMPANY VALUE FUND - RUSSELL 2000 RUSSELL 2000
DATE CLASS A ADMINISTRATOR CLASS (R) VALUE INDEX (R) INDEX
- ----------- ------------- -------------------- --------------- ------------
6/1/1997 9,425 10,000 10,000 10,000
6/30/1997 10,112 10,730 10,506 10,429
7/31/1997 10,667 11,320 10,947 10,914
8/31/1997 10,847 11,512 11,121 11,164
9/30/1997 11,620 12,334 11,860 11,981
10/31/1997 11,249 11,942 11,538 11,455
11/30/1997 11,370 12,072 11,664 11,381
12/31/1997 11,783 12,512 12,060 11,580
1/31/1998 11,621 12,342 11,841 11,397
2/28/1998 12,409 13,181 12,557 12,239
3/31/1998 12,921 13,726 13,067 12,743
4/30/1998 13,115 13,934 13,131 12,813
5/31/1998 12,502 13,284 12,666 12,123
6/30/1998 12,392 13,169 12,595 12,148
7/31/1998 11,672 12,406 11,608 11,164
8/31/1998 9,584 10,188 9,790 8,996
9/30/1998 9,995 10,626 10,343 9,701
10/31/1998 10,137 10,778 10,650 10,096
11/30/1998 10,473 11,137 10,939 10,625
12/31/1998 10,671 11,349 11,282 11,283
1/31/1999 10,435 11,100 11,026 11,433
2/28/1999 9,807 10,433 10,273 10,507
3/31/1999 9,674 10,293 10,188 10,671
4/30/1999 10,487 11,159 11,118 11,627
5/31/1999 11,049 11,759 11,460 11,797
6/30/1999 11,327 12,056 11,875 12,330
7/31/1999 11,186 11,907 11,593 11,992
8/31/1999 10,925 11,631 11,169 11,548
9/30/1999 10,567 11,251 10,946 11,551
10/31/1999 10,453 11,132 10,727 11,598
11/30/1999 10,345 11,018 10,782 12,291
12/31/1999 10,718 11,416 11,114 13,682
1/31/2000 9,945 10,595 10,823 13,462
2/29/2000 9,906 10,555 11,485 15,684
3/31/2000 10,787 11,494 11,539 14,651
4/30/2000 10,867 11,581 11,607 13,769
5/31/2000 10,965 11,687 11,430 12,966
6/30/2000 10,927 11,648 11,764 14,096
7/31/2000 11,216 11,957 12,156 13,643
8/31/2000 12,139 12,943 12,699 14,683
9/30/2000 11,978 12,773 12,627 14,252
10/31/2000 11,961 12,757 12,582 13,616
11/30/2000 11,910 12,704 12,326 12,218
12/31/2000 13,558 14,464 13,651 13,267
1/31/2001 13,805 14,729 14,027 13,959
2/28/2001 13,804 14,730 14,008 13,043
3/31/2001 13,610 14,524 13,783 12,405
4/30/2001 14,163 15,117 14,421 13,375
5/31/2001 14,826 15,826 14,792 13,704
6/30/2001 15,408 16,450 15,387 14,177
7/31/2001 15,093 16,117 15,042 13,410
8/31/2001 15,178 16,209 14,990 12,977
9/30/2001 13,177 14,074 13,335 11,230
10/31/2001 13,534 14,458 13,684 11,887
11/30/2001 14,661 15,664 14,667 12,807
12/31/2001 15,307 16,356 15,565 13,597
1/31/2002 15,506 16,570 15,772 13,456
2/28/2002 16,343 17,465 15,868 13,087
3/31/2002 17,894 19,139 17,056 14,139
4/30/2002 18,343 19,603 17,656 14,268
5/31/2002 17,956 19,205 17,072 13,635
6/30/2002 17,413 18,608 16,694 12,958
7/31/2002 14,358 15,344 14,214 11,002
8/31/2002 14,048 15,029 14,151 10,974
9/30/2002 13,071 13,985 13,140 10,186
10/31/2002 13,568 14,515 13,338 10,513
11/30/2002 14,715 15,742 14,402 11,451
12/31/2002 14,319 15,319 13,787 10,813
1/31/2003 13,668 14,639 13,398 10,514
2/28/2003 12,969 13,893 12,948 10,196
3/31/2003 13,187 14,125 13,086 10,328
4/30/2003 14,490 15,518 14,329 11,307
5/31/2003 15,886 17,010 15,792 12,520
6/30/2003 16,212 17,374 16,060 12,747
7/31/2003 17,530 18,784 16,861 13,544
8/31/2003 18,322 19,646 17,501 14,165
9/30/2003 17,934 19,231 17,301 13,903
10/31/2003 19,128 20,524 18,711 15,071
11/30/2003 19,733 21,154 19,430 15,606
12/31/2003 20,516 22,011 20,132 15,922
1/31/2004 20,838 22,355 20,828 16,613
2/29/2004 21,064 22,596 21,232 16,763
3/31/2004 21,579 23,147 21,525 16,919
4/30/2004 20,709 22,217 20,412 16,056
5/31/2004 20,886 22,424 20,658 16,311
6/30/2004 21,886 23,492 21,708 16,998
7/31/2004 21,080 22,648 20,710 15,854
8/31/2004 21,225 22,803 20,913 15,773
9/30/2004 22,015 23,664 21,740 16,513
10/31/2004 22,450 24,129 22,078 16,838
11/30/2004 24,351 26,161 24,037 18,298
12/31/2004 25,289 27,182 24,611 18,840
1/31/2005 24,348 26,195 23,659 18,054
2/28/2005 25,135 27,035 24,129 18,359
3/31/2005 24,725 26,597 23,632 17,834
4/30/2005 23,647 25,445 22,413 16,812
5/31/2005 25,255 27,182 23,780 17,913
6/30/2005 26,265 28,278 24,831 18,605
7/31/2005 27,582 29,686 26,244 19,784
8/31/2005 27,309 29,412 25,642 19,418
9/30/2005 27,291 29,393 25,599 19,479
10/31/2005 26,025 28,041 24,957 18,873
11/30/2005 27,497 29,631 25,970 19,788
12/31/2005 27,681 29,819 25,770 19,697
1/31/2006 29,375 31,651 27,901 21,464
2/28/2006 29,319 31,591 27,898 21,404
3/31/2006 30,454 32,825 29,249 22,442
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2 The Russell 2000(R) Index measures the performance of the 2,000 smallest
companies in the Russell 3000(R) Index, which represents approximately 8% of the
total market capitalization of the Russell 3000(R) Index. You cannot invest
directly in an Index.
3 The Russell 2000(R) 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. The Fund has selected the Russell
2000(R) Value Index to replace the Russell 2000(R) Index as its benchmark index
going forward because the Russell 2000(R) Value Index is more representative of
the breadth of the Fund's holdings.
4 Fund characteristics, equity holdings and sector distribution are subject to
change. Cash and cash equivalents are not reflected in the calculations of fund
characteristics, equity holdings and sector distribution.
5 The Ten Largest Equity Holdings are calculated based on the market value of
the Master Trust portfolio securities allocable to the Fund divided by total
market value of the portfolio of investments of the Fund. See Notes to Financial
Statements for a discussion of the Master Trust.
6 Portfolio turnover rate represents the activity from the Fund's investment in
a single Master Portfolio.
7 The chart compares the performance of the WELLS FARGO ADVANTAGE SMALL COMPANY
VALUE FUND Class A and Administrator Class shares for the life of the Fund with
the Russell 2000(R) Index and Russell 2000(R) Value Index. The chart assumes a
hypothetical investment of $10,000 in Class A and Administrator Class shares and
reflects all operating expenses and, for Class A shares, assumes the maximum
initial sales charge of 5.75%.
23
WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS FUND EXPENSES (UNAUDITED)
- --------------------------------------------------------------------------------
As a shareholder of the Fund, you incur two types of costs: (1)
transaction costs, including sales charges (loads) on purchase payments,
redemption fees (if any) and exchange fees (if any); and (2) ongoing costs,
including management fees; distribution (12b-1) and/or shareholder service fees;
and other Fund expenses. This example is intended to help you understand your
ongoing costs (in dollars) of investing in the Fund and to compare these costs
with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning
of the period and held for the entire period (October 1, 2005 to March 31,
2006).
ACTUAL EXPENSES
The "Actual" line of the table below provides information about actual
account values and actual expenses. You may use the information in this line,
together with the amount you invested, to estimate the expenses that you paid
over the period. Simply divide your account value by $1,000 (for example, an
$8,600 account value divided by $1,000 = 8.6), then multiply the result by the
number in the "Actual" line under the heading entitled "Expenses Paid During
Period" for your applicable class of shares to estimate the expenses you paid on
your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The "Hypothetical" line of the table below provides information about
hypothetical account values and hypothetical expenses based on the Fund's actual
expense ratio and an assumed rate of return of 5% per year before expenses,
which is not the Fund's actual return. The hypothetical account values and
expenses may not be used to estimate the actual ending account balance or
expenses you paid for the period. You may use this information to compare the
ongoing costs of investing in the Fund and other funds. To do so, compare this
5% hypothetical example with the 5% hypothetical examples that appear in the
shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight
your ongoing costs only and do not reflect any transactional costs, such as
sales charges (loads), redemption fees, or exchange fees. Therefore, the
"Hypothetical" line of the table is useful in comparing ongoing costs only, and
will not help you determine the relative total costs of owning different funds.
In addition, if these transactional costs were included, your costs would have
been higher.
Beginning Ending
Account Account Expenses Net Annual
Value Value Paid During Expense
10/01/2005 03/31/2006 Period (1) Ratio
C & B Large Cap Value Fund
- ---------------------------------------------------------------------------------------------------------------------
C&B Large Cap Value Fund - Class A
Actual $1,000.00 $1,009.60 $ 6.01 1.20%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,018.95 $ 6.04 1.20%
- ---------------------------------------------------------------------------------------------------------------------
C&B Large Cap Value Fund - Class B
Actual $1,000.00 $1,018.00 $ 9.81 1.95%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,015.21 $ 9.80 1.95%
- ---------------------------------------------------------------------------------------------------------------------
C&B Large Cap Value Fund - Class C
Actual $1,000.00 $1,058.00 $10.01 1.95%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,015.21 $ 9.80 1.95%
- ---------------------------------------------------------------------------------------------------------------------
C&B Large Cap Value Fund - Class D
Actual $1,000.00 $1,071.60 $ 6.20 1.20%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,018.95 $ 6.04 1.20%
- ---------------------------------------------------------------------------------------------------------------------
C&B Large Cap Value Fund - Administrator Class
Actual $1,000.00 $1,072.70 $ 4.91 0.95%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,020.19 $ 4.78 0.95%
- ---------------------------------------------------------------------------------------------------------------------
C&B Large Cap Value Fund - Institutional Class
Actual $1,000.00 $1,074.40 $ 3.62 0.70%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,021.44 $ 3.53 0.70%
Diversified Equity Fund
- ---------------------------------------------------------------------------------------------------------------------
Diversified Equity Fund - Class A
Actual $1,000.00 $1,015.30 $ 6.28 1.25%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,018.70 $ 6.29 1.25%
- ---------------------------------------------------------------------------------------------------------------------
Diversified Equity Fund - Class B
Actual $1,000.00 $1,023.10 $10.09 2.00%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,014.96 $10.05 2.00%
- ---------------------------------------------------------------------------------------------------------------------
Diversified Equity Fund - Class C
Actual $1,000.00 $1,063.10 $10.59 2.00%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,014.96 $10.05 2.00%
24
FUND EXPENSES (UNAUDITED) WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
- --------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Net Annual
Value Value Paid During Expense
10/01/2005 03/31/2006 Period (1) Ratio
- ---------------------------------------------------------------------------------------------------------------------
Diversified Equity Fund - Administrator Class
Actual $1,000.00 $1,078.40 $ 5.18 1.00%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,019.95 $ 5.04 1.00%
Diversified Small Cap Fund
- ---------------------------------------------------------------------------------------------------------------------
Diversified Small Cap Fund - Administrator Class
Actual $1,000.00 $1,142.20 $ 6.41 1.20%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,018.95 $ 6.04 1.20%
Equity Income Fund
- ---------------------------------------------------------------------------------------------------------------------
Equity Income Fund - Class A
Actual $1,000.00 $ 974.80 $ 5.42 1.10%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,019.45 $ 5.54 1.10%
- ---------------------------------------------------------------------------------------------------------------------
Equity Income Fund - Class B
Actual $1,000.00 $ 980.30 $ 9.13 1.85%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,015.71 $ 9.30 1.85%
- ---------------------------------------------------------------------------------------------------------------------
Equity Income Fund - Class C
Actual $1,000.00 $1,020.40 $ 9.32 1.85%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,015.71 $ 9.30 1.85%
- ---------------------------------------------------------------------------------------------------------------------
Equity Income Fund - Administrator Class
Actual $1,000.00 $1,035.50 $ 4.31 0.85%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,020.69 $ 4.28 0.85%
Equity Value Fund
- ---------------------------------------------------------------------------------------------------------------------
Equity Value Fund - Class A
Actual $1,000.00 $1,000.50 $ 6.23 1.25%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,018.70 $ 6.29 1.25%
- ---------------------------------------------------------------------------------------------------------------------
Equity Value Fund - Class B
Actual $1,000.00 $1,007.70 $10.01 2.00%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,014.96 $10.05 2.00%
- ---------------------------------------------------------------------------------------------------------------------
Equity Value Fund - Class C
Actual $1,000.00 $1,047.00 $10.21 2.00%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,014.96 $10.05 2.00%
- ---------------------------------------------------------------------------------------------------------------------
Equity Value Fund - Administrator Class
Actual $1,000.00 $1,062.00 $ 5.14 1.00%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,019.95 $ 5.04 1.00%
Growth Equity Fund
- ---------------------------------------------------------------------------------------------------------------------
Growth Equity Fund - Class A
Actual $1,000.00 $1,045.40 $ 7.65 1.50%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,017.45 $ 7.54 1.50%
- ---------------------------------------------------------------------------------------------------------------------
Growth Equity Fund - Class B
Actual $1,000.00 $1,055.50 $11.53 2.25%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,013.71 $11.30 2.25%
- ---------------------------------------------------------------------------------------------------------------------
Growth Equity Fund - Class C
Actual $1,000.00 $1,095.30 $11.75 2.25%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,013.71 $11.30 2.25%
- ---------------------------------------------------------------------------------------------------------------------
Growth Equity Fund - Administrator Class
Actual $1,000.00 $1,110.50 $ 6.58 1.25%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,018.70 $ 6.29 1.25%
25
WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS FUND EXPENSES (UNAUDITED)
- --------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Net Annual
Value Value Paid During Expense
10/01/2005 03/31/2006 Period(1) Ratio
- ---------------------------------------------------------------------------------------------------------------------
Growth Equity Fund - Institutional Class
Actual $1,000.00 $1,111.90 $ 5.53 1.05%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,019.70 $ 5.29 1.05%
International Value Fund
- ---------------------------------------------------------------------------------------------------------------------
International Value Fund - Class A
Actual $1,000.00 $1,066.00 $ 7.73 1.50%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,017.45 $ 7.54 1.50%
- ---------------------------------------------------------------------------------------------------------------------
International Value Fund - Class B
Actual $1,000.00 $1,076.60 $11.65 2.25%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,013.71 $11.30 2.25%
- ---------------------------------------------------------------------------------------------------------------------
International Value Fund - Class C
Actual $1,000.00 $1,116.60 $11.87 2.25%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,013.71 $11.30 2.25%
- ---------------------------------------------------------------------------------------------------------------------
International Value Fund - Administrator Class
Actual $1,000.00 $1,131.20 $ 6.64 1.25%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,018.70 $ 6.29 1.25%
Large Cap Appreciation Fund
- ---------------------------------------------------------------------------------------------------------------------
Large Cap Appreciation Fund - Class A
Actual $1,000.00 $1,017.00 $ 6.29 1.25%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,018.70 $ 6.29 1.25%
- ---------------------------------------------------------------------------------------------------------------------
Large Cap Appreciation Fund - Class B
Actual $1,000.00 $1,025.90 $10.10 2.00%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,014.96 $10.05 2.00%
- ---------------------------------------------------------------------------------------------------------------------
Large Cap Appreciation Fund - Class C
Actual $1,000.00 $1,064.90 $10.30 2.00%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,014.96 $10.05 2.00%
- ---------------------------------------------------------------------------------------------------------------------
Large Cap Appreciation Fund - Administrator Class
Actual $1,000.00 $1,080.60 $ 5.19 1.00%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,019.95 $ 5.04 1.00%
Large Company Growth Fund
- ---------------------------------------------------------------------------------------------------------------------
Large Company Growth Fund - Class A
Actual $1,000.00 $ 996.00 $ 5.97 1.20%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,018.95 $ 6.04 1.20%
- ---------------------------------------------------------------------------------------------------------------------
Large Company Growth Fund - Class B
Actual $1,000.00 $1,002.90 $ 9.74 1.95%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,015.21 $ 9.80 1.95%
- ---------------------------------------------------------------------------------------------------------------------
Large Company Growth Fund - Class C
Actual $1,000.00 $1,043.00 $ 9.93 1.95%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,015.21 $ 9.80 1.95%
- ---------------------------------------------------------------------------------------------------------------------
Large Company Growth Fund - Administrator Class
Actual $1,000.00 $1,058.10 $ 4.87 0.95%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,020.19 $ 4.78 0.95%
- ---------------------------------------------------------------------------------------------------------------------
Large Company Growth Fund - Institutional Class
Actual $1,000.00 $1,059.40 $ 3.85 0.75%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,021.19 $ 3.78 0.75%
26
FUND EXPENSES (UNAUDITED) WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
- --------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Net Annual
Value Value Paid During Expense
10/01/2005 03/31/2006 Period(1) Ratio
- ---------------------------------------------------------------------------------------------------------------------
Large Company Growth Fund - Class Z
Actual (2) $1,000.00 $1,056.00 $ 7.02 1.37%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,018.10 $ 6.89 1.37%
Small Company Growth Fund
- ---------------------------------------------------------------------------------------------------------------------
Small Company Growth Fund - Class A
Actual $1,000.00 $1,114.90 $ 7.65 1.45%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,017.70 $ 7.29 1.45%
- ---------------------------------------------------------------------------------------------------------------------
Small Company Growth Fund - Class B
Actual $1,000.00 $1,128.30 $11.67 2.20%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,013.96 $11.05 2.20%
- ---------------------------------------------------------------------------------------------------------------------
Small Company Growth Fund - Class C
Actual $1,000.00 $1,168.20 $11.89 2.20%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,013.96 $11.05 2.20%
- ---------------------------------------------------------------------------------------------------------------------
Small Company Growth Fund - Administrator Class
Actual $1,000.00 $1,184.40 $ 6.54 1.20%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,018.95 $ 6.04 1.20%
Small Company Value Fund
- ---------------------------------------------------------------------------------------------------------------------
Small Company Value Fund - Class A
Actual $1,000.00 $1,051.70 $ 7.06 1.38%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,018.05 $ 6.94 1.38%
- ---------------------------------------------------------------------------------------------------------------------
Small Company Value Fund - Class B
Actual $1,000.00 $1,060.80 $10.89 2.12%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,014.36 $10.65 2.12%
- ---------------------------------------------------------------------------------------------------------------------
Small Company Value Fund - Class C
Actual $1,000.00 $1,100.90 $11.16 2.13%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,014.31 $10.70 2.13%
- ---------------------------------------------------------------------------------------------------------------------
Small Company Value Fund - Administrator Class
Actual $1,000.00 $1,116.80 $ 6.33 1.20%
- ---------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,018.05 $ 6.04 1.20%
(1) Expenses are equal to the Fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by the number of days in the
most recent fiscal half-year divided by the number of days in the fiscal year
(to reflect the one-half year period.)
27
WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
C&B LARGE CAP VALUE FUND
- --------------------------------------------------------------------------------
FACE/SHARE
AMOUNT SECURITY NAME VALUE
INVESTMENTS IN AFFILIATED MASTER PORTFOLIOS - 99.97%
N/A WELLS FARGO ADVANTAGE C&B LARGE CAP VALUE PORTFOLIO $ 544,044,855
TOTAL INVESTMENTS IN AFFILIATED MASTER PORTFOLIOS (COST $520,190,400) 544,044,855
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $520,190,400) 99.97% $ 544,044,855
OTHER ASSETS AND LIABILITIES, NET 0.03 181,501
------ ---------------
TOTAL NET ASSETS 100.00% $ 544,226,356
====== ===============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
28
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
- --------------------------------------------------------------------------------
DIVERSIFIED EQUITY FUND
- --------------------------------------------------------------------------------
FACE/SHARE
AMOUNT SECURITY NAME VALUE
INVESTMENTS IN AFFILIATED MASTER PORTFOLIOS - 100.05%
N/A WELLS FARGO ADVANTAGE C&B LARGE CAP VALUE PORTFOLIO $ 116,454,675
N/A WELLS FARGO ADVANTAGE DISCIPLINED GROWTH PORTFOLIO 69,261,653
N/A WELLS FARGO ADVANTAGE EQUITY INCOME PORTFOLIO 115,599,989
N/A WELLS FARGO ADVANTAGE EQUITY VALUE PORTFOLIO 116,262,745
N/A WELLS FARGO ADVANTAGE INDEX PORTFOLIO 347,864,970
N/A WELLS FARGO ADVANTAGE INTERNATIONAL CORE PORTFOLIO 52,871,750
N/A WELLS FARGO ADVANTAGE INTERNATIONAL GROWTH PORTFOLIO 53,483,479
N/A WELLS FARGO ADVANTAGE INTERNATIONAL INDEX PORTFOLIO 53,006,051
N/A WELLS FARGO ADVANTAGE INTERNATIONAL VALUE PORTFOLIO 52,880,235
N/A WELLS FARGO ADVANTAGE LARGE CAP APPRECIATION PORTFOLIO 35,028,742
N/A WELLS FARGO ADVANTAGE LARGE COMPANY GROWTH PORTFOLIO 243,694,387
N/A WELLS FARGO ADVANTAGE SMALL CAP INDEX PORTFOLIO 47,513,688
N/A WELLS FARGO ADVANTAGE SMALL COMPANY GROWTH PORTFOLIO 47,319,710
N/A WELLS FARGO ADVANTAGE SMALL COMPANY VALUE PORTFOLIO 23,680,907
N/A WELLS FARGO ADVANTAGE STRATEGIC SMALL CAP VALUE PORTFOLIO 23,924,267
TOTAL INVESTMENTS IN AFFILIATED MASTER PORTFOLIOS (COST $1,025,811,214) 1,398,847,248
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $1,025,811,214) 100.05% $ 1,398,847,248
OTHER ASSETS AND LIABILITIES, NET (0.05) (745,927)
------ ---------------
TOTAL NET ASSETS 100.00% $ 1,398,101,321
====== ===============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
29
WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
DIVERSIFIED SMALL CAP FUND
- --------------------------------------------------------------------------------
FACE/SHARE
AMOUNT SECURITY NAME VALUE
INVESTMENTS IN AFFILIATED MASTER PORTFOLIOS - 100.03%
N/A WELLS FARGO ADVANTAGE SMALL CAP INDEX PORTFOLIO $ 220,639,890
N/A WELLS FARGO ADVANTAGE SMALL COMPANY GROWTH PORTFOLIO 220,746,255
N/A WELLS FARGO ADVANTAGE SMALL COMPANY VALUE PORTFOLIO 110,011,955
N/A WELLS FARGO ADVANTAGE STRATEGIC SMALL CAP VALUE PORTFOLIO 111,058,403
TOTAL INVESTMENTS IN AFFILIATED MASTER PORTFOLIOS (COST $532,794,614) 662,456,503
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $532,794,614) 100.03% $ 662,456,503
OTHER ASSETS AND LIABILITIES, NET (0.03) (190,204)
------ ---------------
TOTAL NET ASSETS 100.00% $ 662,266,299
====== ===============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
30
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
- --------------------------------------------------------------------------------
EQUITY INCOME FUND
- --------------------------------------------------------------------------------
FACE/SHARE
AMOUNT SECURITY NAME VALUE
INVESTMENTS IN AFFILIATED MASTER PORTFOLIOS - 100.07%
N/A WELLS FARGO ADVANTAGE EQUITY INCOME PORTFOLIO $ 799,771,392
TOTAL INVESTMENTS IN AFFILIATED MASTER PORTFOLIOS (COST $911,814,969) 799,771,392
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $911,814,969) 100.07% $ 799,771,392
OTHER ASSETS AND LIABILITIES, NET (0.07) (522,168)
------ ---------------
TOTAL NET ASSETS 100.00% $ 799,249,224
====== ===============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
31
WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
EQUITY VALUE FUND
- --------------------------------------------------------------------------------
FACE/SHARE
AMOUNT SECURITY NAME VALUE
INVESTMENTS IN AFFILIATED MASTER PORTFOLIOS - 100.03%
N/A WELLS FARGO ADVANTAGE EQUITY VALUE PORTFOLIO $ 74,478,270
TOTAL INVESTMENTS IN AFFILIATED MASTER PORTFOLIOS (COST $68,339,811) 74,478,270
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $68,339,811) 100.03% $ 74,478,270
OTHER ASSETS AND LIABILITIES, NET (0.03) (21,412)
------ ---------------
TOTAL NET ASSETS 100.00% $ 74,456,858
====== ===============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
32
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
- --------------------------------------------------------------------------------
GROWTH EQUITY FUND
- --------------------------------------------------------------------------------
FACE/SHARE
AMOUNT SECURITY NAME VALUE
INVESTMENTS IN AFFILIATED MASTER PORTFOLIOS - 100.01%
N/A WELLS FARGO ADVANTAGE DISCIPLINED GROWTH PORTFOLIO $ 29,817,588
N/A WELLS FARGO ADVANTAGE INTERNATIONAL CORE PORTFOLIO 46,136,693
N/A WELLS FARGO ADVANTAGE INTERNATIONAL GROWTH PORTFOLIO 46,741,393
N/A WELLS FARGO ADVANTAGE INTERNATIONAL INDEX PORTFOLIO 46,412,733
N/A WELLS FARGO ADVANTAGE INTERNATIONAL VALUE PORTFOLIO 46,602,271
N/A WELLS FARGO ADVANTAGE LARGE COMPANY GROWTH PORTFOLIO 179,235,501
N/A WELLS FARGO ADVANTAGE SMALL CAP INDEX PORTFOLIO 72,885,460
N/A WELLS FARGO ADVANTAGE SMALL COMPANY GROWTH PORTFOLIO 72,436,074
N/A WELLS FARGO ADVANTAGE SMALL COMPANY VALUE PORTFOLIO 36,201,992
N/A WELLS FARGO ADVANTAGE STRATEGIC SMALL CAP VALUE PORTFOLIO 36,314,292
TOTAL INVESTMENTS IN AFFILIATED MASTER PORTFOLIOS (COST $410,575,739) 612,783,997
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $410,575,739) 100.01% $ 612,783,997
OTHER ASSETS AND LIABILITIES, NET (0.01) (65,680)
------ ---------------
TOTAL NET ASSETS 100.00% $ 612,718,317
====== ===============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
33
WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL VALUE FUND
- --------------------------------------------------------------------------------
FACE/SHARE
AMOUNT SECURITY NAME VALUE
INVESTMENTS IN AFFILIATED MASTER PORTFOLIOS - 98.42%
N/A WELLS FARGO ADVANTAGE INTERNATIONAL VALUE PORTFOLIO $ 1,991,011
TOTAL INVESTMENTS IN AFFILIATED MASTER PORTFOLIOS (COST $1,770,369) 1,991,011
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $1,770,369) 98.42% $ 1,991,011
OTHER ASSETS AND LIABILITIES, NET 1.58 31,888
------ ---------------
TOTAL NET ASSETS 100.00% $ 2,022,899
====== ===============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
34
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
- --------------------------------------------------------------------------------
LARGE CAP APPRECIATION FUND
- --------------------------------------------------------------------------------
FACE/SHARE
AMOUNT SECURITY NAME VALUE
INVESTMENTS IN AFFILIATED MASTER PORTFOLIOS - 99.79%
N/A WELLS FARGO ADVANTAGE LARGE CAP APPRECIATION PORTFOLIO $ 61,505,558
TOTAL INVESTMENTS IN AFFILIATED MASTER PORTFOLIOS (COST $53,952,339) 61,505,558
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $53,952,339) 99.79% $ 61,505,558
OTHER ASSETS AND LIABILITIES, NET 0.21 130,712
------ ---------------
TOTAL NET ASSETS 100.00% $ 61,636,270
====== ===============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
35
WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE COMPANY GROWTH FUND
- --------------------------------------------------------------------------------
FACE/SHARE
AMOUNT SECURITY NAME VALUE
INVESTMENTS IN AFFILIATED MASTER PORTFOLIOS - 100.04%
N/A WELLS FARGO ADVANTAGE LARGE COMPANY GROWTH PORTFOLIO $ 2,642,706,368
TOTAL INVESTMENTS IN AFFILIATED MASTER PORTFOLIOS (COST $2,192,202,924) 2,642,706,368
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $2,192,202,924) 100.04% $ 2,642,706,368
OTHER ASSETS AND LIABILITIES, NET (0.04) (1,066,666)
------ ---------------
TOTAL NET ASSETS 100.00% $ 2,641,639,702
====== ===============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
36
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH FUND
- --------------------------------------------------------------------------------
FACE/SHARE
AMOUNT SECURITY NAME VALUE
INVESTMENTS IN AFFILIATED MASTER PORTFOLIOS - 99.92%
N/A WELLS FARGO ADVANTAGE SMALL COMPANY GROWTH PORTFOLIO $ 625,864,838
TOTAL INVESTMENTS IN AFFILIATED MASTER PORTFOLIOS (COST $556,710,357) 625,864,838
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $556,710,357) 99.92% $ 625,864,838
OTHER ASSETS AND LIABILITIES, NET 0.08 476,925
------ ---------------
TOTAL NET ASSETS 100.00% $ 626,341,763
====== ===============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
37
WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL COMPANY VALUE FUND
- --------------------------------------------------------------------------------
FACE/SHARE
AMOUNT SECURITY NAME VALUE
INVESTMENTS IN AFFILIATED MASTER PORTFOLIOS - 99.87%
N/A WELLS FARGO ADVANTAGE SMALL COMPANY VALUE PORTFOLIO $ 384,502,636
TOTAL INVESTMENTS IN AFFILIATED MASTER PORTFOLIOS (COST $345,313,477) 384,502,636
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $345,313,477) 99.87% $ 384,502,636
OTHER ASSETS AND LIABILITIES, NET 0.13 499,453
------ ---------------
TOTAL NET ASSETS 100.00% $ 385,002,089
====== ===============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
38
THIS PAGE IS INTENTIONALLY LEFT BLANK --
WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS STATEMENTS OF ASSETS AND LIABILITIES
-- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
C&B LARGE CAP DIVERSIFIED DIVERSIFIED
VALUE FUND EQUITY FUND SMALL CAP FUND
- -------------------------------------------------------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
INVESTMENTS IN AFFILIATED MASTER PORTFOLIOS ........................ $ 544,044,855 $ 1,398,847,248 $ 662,456,503
--------------- --------------- ---------------
TOTAL INVESTMENTS AT MARKET VALUE (SEE COST BELOW) ................... 544,044,855 1,398,847,248 662,456,503
--------------- --------------- ---------------
CASH ............................................................... 25,000 17,747 25,000
RECEIVABLE FOR FUND SHARES ISSUED .................................. 456,503 157,943 114,214
RECEIVABLES FOR DIVIDENDS AND INTEREST ............................. 0 0 0
RECEIVABLE FROM INVESTMENT ADVISOR AND AFFILIATES .................. 56,796 0 0
PREPAID EXPENSES AND OTHER ASSETS .................................. 0 24 0
--------------- --------------- ---------------
TOTAL ASSETS ......................................................... 544,583,154 1,399,022,962 662,595,717
--------------- --------------- ---------------
LIABILITIES
PAYABLE FOR FUND SHARES REDEEMED ................................... 171,264 328,553 23,893
DIVIDENDS PAYABLE .................................................. 1,006 0 0
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) .............. 0 222,860 122,041
PAYABLE TO THE TRUSTEES AND SHAREHOLDER SERVICING AGENT ............ 137,559 362,712 148,325
ACCRUED EXPENSES AND OTHER LIABILITIES ............................. 46,969 7,516 35,159
--------------- --------------- ---------------
TOTAL LIABILITIES .................................................... 356,798 921,641 329,418
--------------- --------------- ---------------
TOTAL NET ASSETS ..................................................... $ 544,226,356 $ 1,398,101,321 $ 662,266,299
=============== =============== ===============
NET ASSETS CONSIST OF:
- -------------------------------------------------------------------------------------------------------------------------------
PAID-IN CAPITAL .................................................... $ 509,790,682 $ 970,096,303 $ 489,988,588
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ......................... 1,098,650 1,024,350 (312,238)
UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON INVESTMENTS .............. 9,482,569 53,944,634 42,928,060
NET UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS, FOREIGN CURRENCIES AND TRANSLATION OF
ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES ......... 23,854,455 373,036,034 129,661,889
--------------- --------------- ---------------
TOTAL NET ASSETS ..................................................... $ 544,226,356 $ 1,398,101,321 $ 662,266,299
--------------- --------------- ---------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE(1)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSETS - CLASS A ............................................... $ 52,720,950 $ 121,142,419 N/A
SHARES OUTSTANDING - CLASS A ....................................... 5,849,544 3,037,584 N/A
NET ASSET VALUE PER SHARE - CLASS A ................................ $ 9.01 $ 39.88 N/A
MAXIMUM OFFERING PRICE PER SHARE - CLASS A(2) ...................... $ 9.56 $ 42.31 N/A
NET ASSETS - CLASS B ............................................... $ 25,104,513 $ 59,533,854 N/A
SHARES OUTSTANDING - CLASS B ....................................... 2,802,770 1,558,053 N/A
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS B ............. $ 8.96 $ 38.21 N/A
NET ASSETS - CLASS C ............................................... $ 14,567,647 $ 7,048,055 N/A
SHARES OUTSTANDING - CLASS C ....................................... 1,626,492 181,613 N/A
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS C ............. $ 8.96 $ 38.81 N/A
NET ASSETS - CLASS D ............................................... $ 158,826,983 N/A N/A
SHARES OUTSTANDING - CLASS D ....................................... 17,625,139 N/A N/A
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS D ............. $ 9.01 N/A N/A
NET ASSETS - CLASS Z ............................................... N/A N/A N/A
SHARES OUTSTANDING - CLASS Z ....................................... N/A N/A N/A
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS Z ............. N/A N/A N/A
NET ASSETS - ADMINISTRATOR CLASS ................................... $ 224,782,181 $ 1,210,376,993 $ 662,266,299
SHARES OUTSTANDING - ADMINISTRATOR CLASS ........................... 24,913,787 30,317,738 42,288,591
NET ASSET VALUE AND OFFERING PRICE PER SHARE - ADMINISTRATOR CLASS . $ 9.02 $ 39.92 $ 15.66
NET ASSETS - INSTITUTIONAL CLASS ................................... $ 68,224,082 N/A N/A
SHARES OUTSTANDING - INSTITUTIONAL CLASS ........................... 7,537,828 N/A N/A
NET ASSET VALUE AND OFFERING PRICE PER SHARE - INSTITUTIONAL CLASS . $ 9.05 N/A N/A
--------------- --------------- ---------------
INVESTMENTS AT COST .................................................. $ 520,190,400 $ 1,025,811,214 $ 532,794,614
=============== =============== ===============
(1) EACH FUND HAS AN UNLIMITED NUMBER OF AUTHORIZED SHARES.
(2) MAXIMUM OFFERING PRICE IS COMPUTED AS 100/94.25 OF NET ASSET VALUE. ON
INVESTMENTS OF $50,000 OR MORE, THE OFFERING PRICE IS REDUCED.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
40
STATEMENTS OF ASSETS AND LIABILITIES WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
- -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
EQUITY EQUITY GROWTH
INCOME FUND VALUE FUND EQUITY FUND
- -------------------------------------------------------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
INVESTMENTS IN AFFILIATED MASTER PORTFOLIOS ........................ $ 799,771,392 $ 74,478,270 $ 612,783,997
--------------- --------------- ---------------
TOTAL INVESTMENTS AT MARKET VALUE (SEE COST BELOW) ................... 799,771,392 74,478,270 612,783,997
--------------- --------------- ---------------
CASH ............................................................... 0 0 25,000
RECEIVABLE FOR FUND SHARES ISSUED .................................. 295,942 218 134,297
RECEIVABLES FOR DIVIDENDS AND INTEREST ............................. 0 0 0
RECEIVABLE FROM INVESTMENT ADVISOR AND AFFILIATES .................. 86,735 48,023 0
PREPAID EXPENSES AND OTHER ASSETS .................................. 0 2 57
--------------- --------------- ---------------
TOTAL ASSETS ......................................................... 800,154,069 74,526,513 612,943,351
--------------- --------------- ---------------
LIABILITIES
PAYABLE FOR FUND SHARES REDEEMED ................................... 635,749 17,259 13,757
DIVIDENDS PAYABLE .................................................. 2,527 0 0
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) .............. 0 0 68,740
PAYABLE TO THE TRUSTEES AND SHAREHOLDER SERVICING AGENT ............ 224,816 22,259 112,955
ACCRUED EXPENSES AND OTHER LIABILITIES ............................. 41,753 30,137 29,582
--------------- --------------- ---------------
TOTAL LIABILITIES .................................................... 904,845 69,655 225,034
--------------- --------------- ---------------
TOTAL NET ASSETS ..................................................... $ 799,249,224 $ 74,456,858 $ 612,718,317
=============== =============== ===============
NET ASSETS CONSIST OF:
- -------------------------------------------------------------------------------------------------------------------------------
PAID-IN CAPITAL .................................................... $ 858,162,842 $ 67,983,854 $ 383,429,858
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ......................... 326,863 140,505 (680,130)
UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON INVESTMENTS .............. 52,803,096 194,040 27,723,229
NET UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS, FOREIGN CURRENCIES AND TRANSLATION OF
ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES ......... (112,043,577) 6,138,459 202,245,360
--------------- --------------- ---------------
TOTAL NET ASSETS ..................................................... $ 799,249,224 $ 74,456,858 $ 612,718,317
--------------- --------------- ---------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE(1)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSETS - CLASS A ............................................... $ 173,106,997 $ 4,273,443 $ 25,311,107
SHARES OUTSTANDING - CLASS A ....................................... 5,747,101 293,574 865,689
NET ASSET VALUE PER SHARE - CLASS A ................................ $ 30.12 $ 14.56 $ 29.24
MAXIMUM OFFERING PRICE PER SHARE - CLASS A(2) ...................... $ 31.96 $ 15.45 $ 31.02
NET ASSETS - CLASS B ............................................... $ 49,193,226 $ 2,417,275 $ 8,367,440
SHARES OUTSTANDING - CLASS B ....................................... 1,632,671 167,346 318,324
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS B ............. $ 30.13 $ 14.44 $ 26.29
NET ASSETS - CLASS C ............................................... $ 5,500,141 $ 392,997 $ 1,105,742
SHARES OUTSTANDING - CLASS C ....................................... 174,947 27,220 40,215
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS C ............. $ 31.44 $ 14.44 $ 27.50
NET ASSETS - CLASS D ............................................... N/A N/A N/A
SHARES OUTSTANDING - CLASS D ....................................... N/A N/A N/A
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS D ............. N/A N/A N/A
NET ASSETS - CLASS Z ............................................... N/A N/A N/A
SHARES OUTSTANDING - CLASS Z ....................................... N/A N/A N/A
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS Z ............. N/A N/A N/A
NET ASSETS - ADMINISTRATOR CLASS ................................... $ 571,448,860 $ 67,373,143 $ 430,877,356
SHARES OUTSTANDING - ADMINISTRATOR CLASS ........................... 19,000,275 4,563,783 14,542,678
NET ASSET VALUE AND OFFERING PRICE PER SHARE - ADMINISTRATOR CLASS . $ 30.08 $ 14.76 $ 29.63
NET ASSETS - INSTITUTIONAL CLASS ................................... N/A N/A $ 147,056,672
SHARES OUTSTANDING - INSTITUTIONAL CLASS ........................... N/A N/A 4,963,802
NET ASSET VALUE AND OFFERING PRICE PER SHARE - INSTITUTIONAL CLASS . N/A N/A $ 29.63
--------------- --------------- ---------------
INVESTMENTS AT COST .................................................. $ 911,814,969 $ 68,339,811 $ 410,575,739
=============== =============== ===============
LARGE CAP
INTERNATIONAL APPRECIATION LARGE COMPANY
VALUE FUND FUND GROWTH FUND
- -------------------------------------------------------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
INVESTMENTS IN AFFILIATED MASTER PORTFOLIOS ........................ $ 1,991,011 $ 61,505,558 $ 2,642,706,368
--------------- --------------- ---------------
TOTAL INVESTMENTS AT MARKET VALUE (SEE COST BELOW) ................... 1,991,011 61,505,558 2,642,706,368
--------------- --------------- ---------------
CASH ............................................................... 25,000 25,000 30,000
RECEIVABLE FOR FUND SHARES ISSUED .................................. 13,818 135,055 770,602
RECEIVABLES FOR DIVIDENDS AND INTEREST ............................. 0 0 1,128
RECEIVABLE FROM INVESTMENT ADVISOR AND AFFILIATES .................. 30,639 17,294 0
PREPAID EXPENSES AND OTHER ASSETS .................................. 0 0 138,595
--------------- --------------- ---------------
TOTAL ASSETS ......................................................... 2,060,468 61,682,907 2,643,646,693
--------------- --------------- ---------------
LIABILITIES
PAYABLE FOR FUND SHARES REDEEMED ................................... 0 2,500 977,683
DIVIDENDS PAYABLE .................................................. 0 0 0
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) .............. 0 0 339,315
PAYABLE TO THE TRUSTEES AND SHAREHOLDER SERVICING AGENT ............ 4,815 20,281 689,993
ACCRUED EXPENSES AND OTHER LIABILITIES ............................. 32,754 23,856 0
--------------- --------------- ---------------
TOTAL LIABILITIES .................................................... 37,569 46,637 2,006,991
--------------- --------------- ---------------
TOTAL NET ASSETS ..................................................... $ 2,022,899 $ 61,636,270 $ 2,641,639,702
=============== =============== ===============
NET ASSETS CONSIST OF:
- -------------------------------------------------------------------------------------------------------------------------------
PAID-IN CAPITAL .................................................... $ 1,766,577 $ 50,122,654 $ 2,630,029,514
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ......................... 11,447 (15,140) (9,444,721)
UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON INVESTMENTS .............. 24,233 3,975,537 (429,448,535)
NET UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS, FOREIGN CURRENCIES AND TRANSLATION OF
ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES ........ 220,642 7,553,219 450,503,444
--------------- --------------- ---------------
TOTAL NET ASSETS ..................................................... $ 2,022,899 $ 61,636,270 $ 2,641,639,702
--------------- --------------- ---------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE(1)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSETS - CLASS A ............................................... $ 1,091,598 $ 36,686,968 $ 543,495,788
SHARES OUTSTANDING - CLASS A ....................................... 68,479 3,108,195 10,367,840
NET ASSET VALUE PER SHARE - CLASS A ................................ $ 15.94 $ 11.80 $ 52.42
MAXIMUM OFFERING PRICE PER SHARE - CLASS A(2) ...................... $ 16.91 $ 12.52 $ 55.62
NET ASSETS - CLASS B ............................................... $ 574,675 $ 3,770,395 $ 149,823,563
SHARES OUTSTANDING - CLASS B ....................................... 36,354 330,122 3,187,804
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS B ............. $ 15.81 $ 11.42 $ 47.00
NET ASSETS - CLASS C ............................................... $ 86,080 $ 898,882 $ 17,892,432
SHARES OUTSTANDING - CLASS C ....................................... 5,446 78,692 379,992
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS C ............. $ 15.81 $ 11.42 $ 47.09
NET ASSETS - CLASS D ............................................... N/A N/A N/A
SHARES OUTSTANDING - CLASS D ....................................... N/A N/A N/A
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS D ............. N/A N/A N/A
NET ASSETS - CLASS Z ............................................... N/A N/A $ 121,366,230
SHARES OUTSTANDING - CLASS Z ....................................... N/A N/A 2,444,432
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS Z ............. N/A N/A $ 49.65
NET ASSETS - ADMINISTRATOR CLASS ................................... $ 270,546 $ 20,280,025 $ 1,695,371,455
SHARES OUTSTANDING - ADMINISTRATOR CLASS ........................... 17,086 1,703,530 33,986,486
NET ASSET VALUE AND OFFERING PRICE PER SHARE - ADMINISTRATOR CLASS . $ 15.83 $ 11.90 $ 49.88
NET ASSETS - INSTITUTIONAL CLASS ................................... N/A N/A $ 113,690,234
SHARES OUTSTANDING - INSTITUTIONAL CLASS ........................... N/A N/A 2,277,220
NET ASSET VALUE AND OFFERING PRICE PER SHARE - INSTITUTIONAL CLASS . N/A N/A $ 49.93
--------------- --------------- ---------------
INVESTMENTS AT COST .................................................. $ 1,770,369 $ 53,952,339 $ 2,192,202,924
=============== =============== ===============
SMALL COMPANY SMALL COMPANY
GROWTH FUND VALUE FUND
- ------------------------------------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
INVESTMENTS IN AFFILIATED MASTER PORTFOLIOS ........................ $ 625,864,838 $ 384,502,636
--------------- ---------------
TOTAL INVESTMENTS AT MARKET VALUE (SEE COST BELOW) ................... 625,864,838 384,502,636
--------------- ---------------
CASH ............................................................... 25,000 25,000
RECEIVABLE FOR FUND SHARES ISSUED .................................. 607,197 630,964
RECEIVABLES FOR DIVIDENDS AND INTEREST ............................. 0 0
RECEIVABLE FROM INVESTMENT ADVISOR AND AFFILIATES .................. 22,460 27,368
PREPAID EXPENSES AND OTHER ASSETS .................................. 3 0
--------------- ---------------
TOTAL ASSETS ......................................................... 626,519,498 385,185,968
--------------- ---------------
LIABILITIES
PAYABLE FOR FUND SHARES REDEEMED ................................... 10,070 43,678
DIVIDENDS PAYABLE .................................................. 0 0
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) .............. 0 0
PAYABLE TO THE TRUSTEES AND SHAREHOLDER SERVICING AGENT ............ 142,403 102,088
ACCRUED EXPENSES AND OTHER LIABILITIES ............................. 25,262 38,113
--------------- ---------------
TOTAL LIABILITIES .................................................... 177,735 183,879
--------------- ---------------
TOTAL NET ASSETS ..................................................... $ 626,341,763 $ 385,002,089
=============== ===============
NET ASSETS CONSIST OF:
- ------------------------------------------------------------------------------------------------------------
PAID-IN CAPITAL .................................................... $ 506,566,210 $ 327,311,312
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ......................... (2,787,707) 226,827
UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON INVESTMENTS .............. 53,408,779 18,274,791
NET UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS, FOREIGN CURRENCIES AND TRANSLATION OF
ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES ......... 69,154,481 39,189,159
--------------- ---------------
TOTAL NET ASSETS ..................................................... $ 626,341,763 $ 385,002,089
--------------- ---------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE(1)
- ------------------------------------------------------------------------------------------------------------
NET ASSETS - CLASS A ............................................... $ 6,516,631 $ 91,807,893
SHARES OUTSTANDING - CLASS A ....................................... 192,479 5,614,319
NET ASSET VALUE PER SHARE - CLASS A ................................ $ 33.86 $ 16.35
MAXIMUM OFFERING PRICE PER SHARE - CLASS A(2) ...................... $ 35.93 $ 17.35
NET ASSETS - CLASS B ............................................... $ 884,258 $ 16,756,684
SHARES OUTSTANDING - CLASS B ....................................... 26,557 1,062,489
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS B ............. $ 33.30 $ 15.77
NET ASSETS - CLASS C ............................................... $ 174,929 $ 5,498,276
SHARES OUTSTANDING - CLASS C ....................................... 5,218 348,684
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS C ............. $ 33.52 $ 15.77
NET ASSETS - CLASS D ............................................... N/A N/A
SHARES OUTSTANDING - CLASS D ....................................... N/A N/A
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS D ............. N/A N/A
NET ASSETS - CLASS Z ............................................... N/A N/A
SHARES OUTSTANDING - CLASS Z ....................................... N/A N/A
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS Z ............. N/A N/A
NET ASSETS - ADMINISTRATOR CLASS ................................... $ 618,765,945 $ 270,939,236
SHARES OUTSTANDING - ADMINISTRATOR CLASS ........................... 18,162,824 16,436,094
NET ASSET VALUE AND OFFERING PRICE PER SHARE - ADMINISTRATOR CLASS . $ 34.07 $ 16.48
NET ASSETS - INSTITUTIONAL CLASS ................................... N/A N/A
SHARES OUTSTANDING - INSTITUTIONAL CLASS ........................... N/A N/A
NET ASSET VALUE AND OFFERING PRICE PER SHARE - INSTITUTIONAL CLASS . N/A N/A
--------------- ---------------
INVESTMENTS AT COST .................................................. $ 556,710,357 $ 345,313,477
=============== ===============
41
STATEMENTS OF OPERATIONS --
FOR THE SIX MONTHS ENDED MARCH
WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
DIVERSIFIED
C&B LARGE CAP DIVERSIFIED SMALL
VALUE FUND EQUITY FUND CAP FUND
- -------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS ALLOCATED FROM AFFILIATED MASTER PORTFOLIOS(1) .......... $ 5,593,442 $ 11,285,483 $ 3,338,848
INTEREST .......................................................... 0 0 0
INTEREST INCOME ALLOCATED FROM AFFILIATED MASTER PORTFOLIOS ....... 0 2,994 3,640
EXPENSES ALLOCATED FROM AFFILIATED MASTER PORTFOLIOS .............. (2,043,383) (4,215,426) (2,077,858)
WAIVERS ALLOCATED FROM AFFILIATED MASTER PORTFOLIOS ............... 289,342 357,968 203,715
--------------- --------------- ---------------
TOTAL INVESTMENT INCOME .............................................. 3,839,401 7,431,019 1,468,345
--------------- --------------- ---------------
EXPENSES
ADVISORY FEES ..................................................... 0 1,712,452 750,515
ADMINISTRATION FEES
FUND LEVEL ..................................................... 133,113 342,490 150,103
CLASS A ........................................................ 73,225 166,680 N/A
CLASS B ........................................................ 34,779 86,362 N/A
CLASS C ........................................................ 19,599 9,953 N/A
CLASS D ........................................................ 227,558 N/A N/A
CLASS Z ........................................................ N/A N/A N/A
ADMINISTRATOR CLASS ............................................ 107,166 591,054 300,206
INSTITUTIONAL CLASS ............................................ 25,773 N/A N/A
SHAREHOLDER SERVICING FEES ........................................ 585,023 1,712,452 750,515
ACCOUNTING FEES ................................................... 37,443 47,961 24,081
DISTRIBUTION FEES (NOTE 3)
CLASS B ........................................................ 93,158 231,328 N/A
CLASS C ........................................................ 52,498 26,660 N/A
PROFESSIONAL FEES ................................................. 9,582 21,616 16,862
REGISTRATION FEES ................................................. 88,924 36,811 15,276
SHAREHOLDER REPORTS ............................................... 72,186 52,181 63,766
TRUSTEES' FEES .................................................... 3,774 3,780 3,774
OTHER FEES AND EXPENSES ........................................... 6,048 14,887 7,072
--------------- --------------- ---------------
TOTAL EXPENSES ....................................................... 1,569,849 5,056,667 2,082,170
--------------- --------------- ---------------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) ...................... (413,461) (1,571,013) (357,276)
NET EXPENSES ...................................................... 1,156,388 3,485,654 1,724,894
--------------- --------------- ---------------
NET INVESTMENT INCOME (LOSS) ......................................... 2,683,013 3,945,365 (256,549)
--------------- --------------- ---------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- -------------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ... 5,281 254,608 28,722
SECURITIES TRANSACTIONS ALLOCATED FROM MASTER PORTFOLIOS .......... 11,099,481 62,414,857 43,390,978
FORWARD FOREIGN CURRENCY CONTRACTS ALLOCATED FROM MASTER PORTFOLIOS 0 2,941 0
FUTURES TRANSACTIONS ALLOCATED FROM MASTER PORTFOLIOS ............. 0 472,760 460,048
--------------- --------------- ---------------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ............................ 11,104,762 63,145,166 43,879,748
--------------- --------------- ---------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
SECURITIES TRANSACTIONS ALLOCATED FROM MASTER PORTFOLIOS .......... 23,753,776 40,517,768 40,411,123
FORWARDS, FUTURES, OPTIONS, SWAPS AND SHORT SALES ALLOCATED FROM
MASTER PORTFOLIOS ................................................. 0 (3,850,015) 89,181
--------------- --------------- ---------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS .. 23,753,776 36,667,753 40,500,304
--------------- --------------- ---------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ............... 34,858,538 99,812,919 84,380,052
--------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ...... $ 37,541,551 $ 103,758,284 $ 84,123,503
=============== =============== ===============
(1) NET OF FOREIGN WITHHOLDING TAXES OF .............................. $ 27,516 $ 147,574 $ 1,735
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
42
STATEMENTS OF OPERATIONS --
FOR THE SIX MONTHS ENDED MARCH
31, 2006 (UNAUDITED) WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
- --------------------------------------------------------------------------------
EQUITY EQUITY GROWTH
INCOME FUND VALUE FUND EQUITY FUND
- -------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS ALLOCATED FROM AFFILIATED MASTER PORTFOLIOS(1) .......... $ 11,372,834 $ 701,915 $ 3,510,163
INTEREST .......................................................... 0 0 0
INTEREST INCOME ALLOCATED FROM AFFILIATED MASTER PORTFOLIOS ....... 0 0 0
EXPENSES ALLOCATED FROM AFFILIATED MASTER PORTFOLIOS .............. (3,294,714) (281,578) (2,239,762)
WAIVERS ALLOCATED FROM AFFILIATED MASTER PORTFOLIOS ............... 224,709 4,525 217,104
--------------- --------------- ---------------
TOTAL INVESTMENT INCOME .............................................. 8,302,829 424,862 1,487,505
--------------- --------------- ---------------
EXPENSES
ADVISORY FEES ..................................................... 0 0 718,624
ADMINISTRATION FEES
FUND LEVEL ..................................................... 219,539 17,898 143,725
CLASS A ........................................................ 249,900 5,524 32,659
CLASS B ........................................................ 76,039 3,297 11,626
CLASS C ........................................................ 8,461 545 1,357
CLASS D ........................................................ N/A N/A N/A
CLASS Z ........................................................ N/A N/A N/A
ADMINISTRATOR CLASS ............................................ 319,650 32,451 202,798
INSTITUTIONAL CLASS ............................................ N/A N/A 54,681
SHAREHOLDER SERVICING FEES ........................................ 1,097,696 89,491 547,746
ACCOUNTING FEES ................................................... 43,052 20,631 69,205
DISTRIBUTION FEES (NOTE 3)
CLASS B ........................................................ 203,676 8,831 31,141
CLASS C ........................................................ 22,662 1,459 3,636
PROFESSIONAL FEES ................................................. 39,867 5,417 17,348
REGISTRATION FEES ................................................. 21,786 37,322 54,924
SHAREHOLDER REPORTS ............................................... 41,547 9,894 31,647
TRUSTEES' FEES .................................................... 3,776 3,775 3,775
OTHER FEES AND EXPENSES ........................................... 18,099 3,761 5,563
--------------- --------------- ---------------
TOTAL EXPENSES ....................................................... 2,365,750 240,296 1,930,455
--------------- --------------- ---------------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) ...................... (1,178,047) (140,647) (421,885)
NET EXPENSES ...................................................... 1,187,703 99,649 1,508,570
--------------- --------------- ---------------
NET INVESTMENT INCOME (LOSS) ......................................... 7,115,126 325,213 (21,065)
--------------- --------------- ---------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- -------------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ... 169,800 110 128,268
SECURITIES TRANSACTIONS ALLOCATED FROM MASTER PORTFOLIOS .......... 60,321,327 (215,376) 34,396,726
FORWARD FOREIGN CURRENCY CONTRACTS ALLOCATED FROM MASTER PORTFOLIOS 0 0 2,448
FUTURES TRANSACTIONS ALLOCATED FROM MASTER PORTFOLIOS ............. 0 0 351,270
--------------- --------------- ---------------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ............................ 60,491,127 (215,266) 34,878,712
--------------- --------------- ---------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
SECURITIES TRANSACTIONS ALLOCATED FROM MASTER PORTFOLIOS .......... (36,816,958) 4,300,838 26,211,301
FORWARDS, FUTURES, OPTIONS, SWAPS AND SHORT SALES ALLOCATED FROM
MASTER PORTFOLIOS ................................................. 0 0 98,523
--------------- --------------- ---------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS .. (36,816,958) 4,300,838 26,309,824
--------------- --------------- ---------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ............... 23,674,169 4,085,572 61,188,536
--------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ...... $ 30,789,295 $ 4,410,785 $ 61,167,471
=============== =============== ===============
(1) NET OF FOREIGN WITHHOLDING TAXES OF .............................. $ 42,743 $ 2,134 $ 109,909
LARGE CAP LARGE
INTERNATIONAL APPRECIATION COMPANY
VALUE FUND FUND GROWTH FUND
- -------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS ALLOCATED FROM AFFILIATED MASTER PORTFOLIOS(1) .......... $ 19,057 $ 367,883 $ 10,596,622
INTEREST .......................................................... 0 0 6,780
INTEREST INCOME ALLOCATED FROM AFFILIATED MASTER PORTFOLIOS ....... 0 0 0
EXPENSES ALLOCATED FROM AFFILIATED MASTER PORTFOLIOS .............. (7,990) (218,154) (9,633,881)
WAIVERS ALLOCATED FROM AFFILIATED MASTER PORTFOLIOS ............... 191 17,259 1,202,792
--------------- --------------- ---------------
TOTAL INVESTMENT INCOME .............................................. 11,258 166,988 2,172,313
--------------- --------------- ---------------
EXPENSES
ADVISORY FEES ..................................................... 0 0 0
ADMINISTRATION FEES
FUND LEVEL ..................................................... 354 14,219 688,791
CLASS A ........................................................ 1,032 47,099 755,369
CLASS B ........................................................ 533 4,624 246,101
CLASS C ........................................................ 115 1,150 27,270
CLASS D ........................................................ N/A N/A N/A
CLASS Z ........................................................ N/A N/A 280,576
ADMINISTRATOR CLASS ............................................ 109 9,556 890,265
INSTITUTIONAL CLASS ............................................ N/A N/A 46,047
SHAREHOLDER SERVICING FEES ........................................ 1,771 71,097 3,300,055
ACCOUNTING FEES ................................................... 18,981 11,309 80,702
DISTRIBUTION FEES (NOTE 3)
CLASS B ........................................................ 1,428 12,385 659,198
CLASS C ........................................................ 307 3,079 73,046
PROFESSIONAL FEES ................................................. 5,579 6,605 36,029
REGISTRATION FEES ................................................. 12,702 3,417 45,554
SHAREHOLDER REPORTS ............................................... 2,063 12,937 164,560
TRUSTEES' FEES .................................................... 3,805 3,814 4,052
OTHER FEES AND EXPENSES ........................................... 2,444 3,971 21,381
--------------- --------------- ---------------
TOTAL EXPENSES ....................................................... 51,223 205,262 7,318,996
--------------- --------------- ---------------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) ...................... (48,606) (59,864) (867,549)
NET EXPENSES ...................................................... 2,617 145,398 6,451,447
--------------- --------------- ---------------
NET INVESTMENT INCOME (LOSS) ......................................... 8,641 21,590 (4,279,134)
--------------- --------------- ---------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- -------------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ... 4 829 263,882
SECURITIES TRANSACTIONS ALLOCATED FROM MASTER PORTFOLIOS .......... 24,772 4,095,658 39,041,800
FORWARD FOREIGN CURRENCY CONTRACTS ALLOCATED FROM MASTER PORTFOLIOS 0 0 0
FUTURES TRANSACTIONS ALLOCATED FROM MASTER PORTFOLIOS ............. 0 0 0
--------------- --------------- ---------------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ............................ 24,776 4,096,487 39,305,682
--------------- --------------- ---------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
SECURITIES TRANSACTIONS ALLOCATED FROM MASTER PORTFOLIOS .......... 164,335 349,881 126,179,215
FORWARDS, FUTURES, OPTIONS, SWAPS AND SHORT SALES ALLOCATED FROM
MASTER PORTFOLIOS ................................................. 2,870 0 0
--------------- --------------- ---------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS .. 167,205 349,881 126,179,215
--------------- --------------- ---------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ............... 191,981 4,446,368 165,484,897
--------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ...... $ 200,622 $ 4,467,958 $ 161,205,763
=============== =============== ===============
(1) NET OF FOREIGN WITHHOLDING TAXES OF .............................. $ 820 $ 0 $ 295,107
SMALL SMALL
COMPANY COMPANY
GROWTH FUND VALUE FUND
- ------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS ALLOCATED FROM AFFILIATED MASTER PORTFOLIOS(1) .......... $ 1,906,004 $ 2,204,164
INTEREST .......................................................... 2,053 588
INTEREST INCOME ALLOCATED FROM AFFILIATED MASTER PORTFOLIOS ....... 0 0
EXPENSES ALLOCATED FROM AFFILIATED MASTER PORTFOLIOS .............. (2,532,649) (1,415,237)
WAIVERS ALLOCATED FROM AFFILIATED MASTER PORTFOLIOS ............... 11,401 253,592
--------------- ---------------
TOTAL INVESTMENT INCOME .............................................. (613,191) 1,043,107
--------------- ---------------
EXPENSES
ADVISORY FEES ..................................................... 0 0
ADMINISTRATION FEES
FUND LEVEL ..................................................... 139,323 76,680
CLASS A ........................................................ 4,451 114,390
CLASS B ........................................................ 930 22,414
CLASS C ........................................................ 190 7,273
CLASS D ........................................................ N/A N/A
CLASS Z ........................................................ N/A N/A
ADMINISTRATOR CLASS ............................................ 276,657 101,904
INSTITUTIONAL CLASS ............................................ N/A N/A
SHAREHOLDER SERVICING FEES ........................................ 696,617 383,398
ACCOUNTING FEES ................................................... 32,044 17,180
DISTRIBUTION FEES (NOTE 3)
CLASS B ........................................................ 2,491 60,036
CLASS C ........................................................ 510 19,481
PROFESSIONAL FEES ................................................. 18,924 8,769
REGISTRATION FEES ................................................. 26,855 66,788
SHAREHOLDER REPORTS ............................................... 21,398 50,401
TRUSTEES' FEES .................................................... 3,776 3,775
OTHER FEES AND EXPENSES ........................................... 5,072 6,664
--------------- ---------------
TOTAL EXPENSES ....................................................... 1,229,238 939,153
--------------- ---------------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) ...................... (400,353) (120,448)
NET EXPENSES ...................................................... 828,885 818,705
--------------- ---------------
NET INVESTMENT INCOME (LOSS) ......................................... (1,442,076) 224,402
--------------- ---------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- ------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ... 53,399 2,786
SECURITIES TRANSACTIONS ALLOCATED FROM MASTER PORTFOLIOS .......... 45,648,373 19,543,981
FORWARD FOREIGN CURRENCY CONTRACTS ALLOCATED FROM MASTER PORTFOLIOS 0 0
FUTURES TRANSACTIONS ALLOCATED FROM MASTER PORTFOLIOS ............. 0 0
--------------- ---------------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ............................ 45,701,772 19,546,767
--------------- ---------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
SECURITIES TRANSACTIONS ALLOCATED FROM MASTER PORTFOLIOS .......... 52,874,819 18,369,593
FORWARDS, FUTURES, OPTIONS, SWAPS AND SHORT SALES ALLOCATED FROM
MASTER PORTFOLIOS ................................................. 0 0
--------------- ---------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS .. 52,874,819 18,369,593
--------------- ---------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ............... 98,576,591 37,916,360
--------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ...... $ 97,134,515 $ 38,140,762
=============== ===============
(1) NET OF FOREIGN WITHHOLDING TAXES OF .............................. $ 3,740 $ 0
43
WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
C&B LARGE CAP VALUE FUND
----------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005
- ------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS .............................................. $ 517,037,985 $ 95,377,137
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ...................................... 2,683,013 2,209,432
NET REALIZED GAIN (LOSS) ON INVESTMENTS ........................... 11,104,762 9,203,272
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS 23,753,776 (3,825,316)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ...... 37,541,551 7,587,388
--------------------- ---------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ........................................................ (268,713) (68,720)
CLASS B ........................................................ 0 (24,137)
CLASS C ........................................................ 0 (12,175)
CLASS D ........................................................ (824,165) (256,921)
ADMINISTRATOR CLASS ............................................ (1,530,614) (156,717)
INSTITUTIONAL CLASS ............................................ (578,225) (122,787)
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A ........................................................ (1,068,091) (146,170)
CLASS B ........................................................ (507,201) (78,997)
CLASS C ........................................................ (284,881) (38,365)
CLASS D ........................................................ (3,306,953) (564,190)
ADMINISTRATOR CLASS ............................................ (4,260,741) (302,387)
INSTITUTIONAL CLASS ............................................ (1,273,864) (167,766)
--------------------- ---------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS .................................. (13,903,448) (1,939,332)
--------------------- ---------------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A (NOTE 1) ...................... 14,257,055 49,206,070
REINVESTMENT OF DISTRIBUTIONS - CLASS A (NOTE 1) .................. 1,251,407 203,320
COST OF SHARES REDEEMED - CLASS A (NOTE 1) ........................ (16,878,868) (9,643,896)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS A .............................. (1,370,406) 39,765,494
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - CLASS B (NOTE 1) ...................... 2,809,825 20,994,815
REINVESTMENT OF DISTRIBUTIONS - CLASS B (NOTE 1) .................. 493,230 99,110
COST OF SHARES REDEEMED - CLASS B (NOTE 1) ........................ (3,653,747) (2,802,975)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS B .............................. (350,692) 18,290,950
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - CLASS C (NOTE 1) ...................... 2,633,043 11,240,614
REINVESTMENT OF DISTRIBUTIONS - CLASS C (NOTE 1) .................. 279,904 49,753
COST OF SHARES REDEEMED - CLASS C (NOTE 1) ........................ (2,073,652) (1,026,486)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS C .............................. 839,295 10,263,881
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - CLASS D ............................... 24,326,374 138,395,264
REINVESTMENT OF DISTRIBUTIONS - CLASS D ........................... 4,057,175 802,914
COST OF SHARES REDEEMED - CLASS D ................................. (40,158,858) (29,050,635)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS D .............................. (11,775,309) 110,147,543
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) .......... 69,599,380 344,818,510
REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS (NOTE 1) ...... 5,618,797 446,400
COST OF SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) ............ (61,111,075) (160,543,540)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - ADMINISTRATOR CLASS .................. 14,107,102 184,721,370
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) .......... 2,588,520 58,155,619
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS (NOTE 1) ...... 1,709,892 283,524
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) ............ (2,198,134) (5,615,589)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - INSTITUTIONAL CLASS .................. 2,100,278 52,823,554
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS ........................................ 3,550,268 416,012,792
===================== =====================
NET INCREASE (DECREASE) IN NET ASSETS ................................ 27,188,371 421,660,848
===================== =====================
ENDING NET ASSETS .................................................... $ 544,226,356 $ 517,037,985
===================== =====================
(1) PROCEEDS FROM SHARES SOLD MAY INCLUDE AMOUNTS RELATED TO FUND MERGERS AND
SHARE CLASS CONVERSIONS. SEE NOTE 1.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
44
STATEMENTS OF CHANGES IN NET ASSETS WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
- --------------------------------------------------------------------------------
DIVERSIFIED EQUITY FUND
----------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005
- ------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS .............................................. $ 1,371,303,220 $ 1,369,558,672
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ...................................... 3,945,365 12,272,184
NET REALIZED GAIN (LOSS) ON INVESTMENTS ........................... 63,145,166 177,426,713
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS 36,667,753 (2,376,734)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ...... 103,758,284 187,322,163
--------------------- ---------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ........................................................ (362,967) (884,827)
CLASS B ........................................................ 0 0
CLASS C ........................................................ 0 0
CLASS D ........................................................ N/A N/A
ADMINISTRATOR CLASS ............................................ (6,395,366) (12,443,279)
INSTITUTIONAL CLASS ............................................ N/A N/A
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A ........................................................ (13,833,788) (8,227,697)
CLASS B ........................................................ (7,495,649) (6,298,863)
CLASS C ........................................................ (855,277) (588,149)
CLASS D ........................................................ N/A N/A
ADMINISTRATOR CLASS ............................................ (136,966,613) (91,862,272)
INSTITUTIONAL CLASS ............................................ N/A N/A
--------------------- ---------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS .................................. (165,909,660) (120,305,087)
--------------------- ---------------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A (NOTE 1) ...................... 10,903,683 28,603,909
REINVESTMENT OF DISTRIBUTIONS - CLASS A (NOTE 1) .................. 13,732,370 8,869,043
COST OF SHARES REDEEMED - CLASS A (NOTE 1) ........................ (16,350,747) (26,520,967)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS A .............................. 8,285,306 10,951,985
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - CLASS B (NOTE 1) ...................... 1,760,926 5,242,432
REINVESTMENT OF DISTRIBUTIONS - CLASS B (NOTE 1) .................. 7,360,019 6,133,671
COST OF SHARES REDEEMED - CLASS B (NOTE 1) ........................ (11,677,410) (31,411,245)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS B .............................. (2,556,465) (20,035,142)
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - CLASS C (NOTE 1) ...................... 312,482 704,584
REINVESTMENT OF DISTRIBUTIONS - CLASS C (NOTE 1) .................. 824,249 566,003
COST OF SHARES REDEEMED - CLASS C (NOTE 1) ........................ (906,859) (2,269,629)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS C .............................. 229,872 (999,042)
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - CLASS D ............................... N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS D ........................... N/A N/A
COST OF SHARES REDEEMED - CLASS D ................................. N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS D .............................. N/A N/A
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) .......... 1,171,332,742 103,124,336
REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS (NOTE 1) ...... 138,664,282 99,029,018
COST OF SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) ............ (1,227,006,260) (257,343,683)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - ADMINISTRATOR CLASS .................. 82,990,764 (55,190,329)
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) .......... N/A N/A
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS (NOTE 1) ...... N/A N/A
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) ............ N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - INSTITUTIONAL CLASS .................. N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS ........................................ 88,949,477 (65,272,528)
===================== =====================
NET INCREASE (DECREASE) IN NET ASSETS ................................ 26,798,101 1,744,548
===================== =====================
ENDING NET ASSETS .................................................... $ 1,398,101,321 $ 1,371,303,220
===================== =====================
DIVERSIFIED SMALL CAP FUND
----------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005
- ------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS .............................................. $ 564,317,639 $ 441,079,970
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ...................................... (256,549) (875,738)
NET REALIZED GAIN (LOSS) ON INVESTMENTS ........................... 43,879,748 51,879,720
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS 40,500,304 38,525,182
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ...... 84,123,503 89,529,164
--------------------- ---------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ........................................................ N/A N/A
CLASS B ........................................................ N/A N/A
CLASS C ........................................................ N/A N/A
CLASS D ........................................................ N/A N/A
ADMINISTRATOR CLASS ............................................ 0 0
INSTITUTIONAL CLASS ............................................ N/A N/A
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A ........................................................ N/A N/A
CLASS B ........................................................ N/A N/A
CLASS C ........................................................ N/A N/A
CLASS D ........................................................ N/A N/A
ADMINISTRATOR CLASS ............................................ (51,030,568) (34,661,689)
INSTITUTIONAL CLASS ............................................ N/A N/A
--------------------- ---------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS .................................. (51,030,568) (34,661,689)
--------------------- ---------------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A (NOTE 1) ...................... N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS A (NOTE 1) .................. N/A N/A
COST OF SHARES REDEEMED - CLASS A (NOTE 1) ........................ N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS A .............................. N/A N/A
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - CLASS B (NOTE 1) ...................... N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS B (NOTE 1) .................. N/A N/A
COST OF SHARES REDEEMED - CLASS B (NOTE 1) ........................ N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS B .............................. N/A N/A
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - CLASS C (NOTE 1) ...................... N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS C (NOTE 1) .................. N/A N/A
COST OF SHARES REDEEMED - CLASS C (NOTE 1) ........................ N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS C .............................. N/A N/A
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - CLASS D ............................... N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS D ........................... N/A N/A
COST OF SHARES REDEEMED - CLASS D ................................. N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS D .............................. N/A N/A
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) .......... 152,783,857 245,460,828
REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS (NOTE 1) ...... 43,789,231 30,040,514
COST OF SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) ............ (131,717,363) (207,131,148)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - ADMINISTRATOR CLASS .................. 64,855,725 68,370,194
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) .......... N/A N/A
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS (NOTE 1) ...... N/A N/A
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) ............ N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - INSTITUTIONAL CLASS .................. N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS ........................................ 64,855,725 68,370,194
===================== =====================
NET INCREASE (DECREASE) IN NET ASSETS ................................ 97,948,660 123,237,669
===================== =====================
ENDING NET ASSETS .................................................... $ 662,266,299 $ 564,317,639
===================== =====================
EQUITY INCOME FUND
----------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005(1)
- ------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS .............................................. $ 1,008,301,692 $ 1,129,725,841
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ...................................... 7,115,126 17,826,661
NET REALIZED GAIN (LOSS) ON INVESTMENTS ........................... 60,491,127 176,903,108
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS (36,816,958) (60,746,650)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ...... 30,789,295 133,983,119
--------------------- ---------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ........................................................ (1,383,638) (2,791,117)
CLASS B ........................................................ (206,931) (502,259)
CLASS C ........................................................ (20,705) (53,776)
CLASS D ........................................................ N/A N/A
ADMINISTRATOR CLASS ............................................ (5,516,697) (14,012,322)
INSTITUTIONAL CLASS ............................................ N/A N/A
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A ........................................................ (34,907,773) (10,623,933)
CLASS B ........................................................ (10,697,534) (4,382,815)
CLASS C ........................................................ (1,153,791) (483,616)
CLASS D ........................................................ N/A N/A
ADMINISTRATOR CLASS ............................................ (135,597,732) (48,226,560)
INSTITUTIONAL CLASS ............................................ N/A N/A
--------------------- ---------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS .................................. (189,484,801) (81,076,398)
--------------------- ---------------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A (NOTE 1) ...................... 9,710,207 31,106,416
REINVESTMENT OF DISTRIBUTIONS - CLASS A (NOTE 1) .................. 34,342,254 12,685,325
COST OF SHARES REDEEMED - CLASS A (NOTE 1) ........................ (26,232,330) (54,657,500)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS A .............................. 17,820,131 (10,865,759)
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - CLASS B (NOTE 1) ...................... 843,210 2,912,945
REINVESTMENT OF DISTRIBUTIONS - CLASS B (NOTE 1) .................. 10,447,268 4,671,023
COST OF SHARES REDEEMED - CLASS B (NOTE 1) ........................ (12,403,038) (31,540,098)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS B .............................. (1,112,560) (23,956,130)
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - CLASS C (NOTE 1) ...................... 214,483 722,585
REINVESTMENT OF DISTRIBUTIONS - CLASS C (NOTE 1) .................. 1,079,772 499,124
COST OF SHARES REDEEMED - CLASS C (NOTE 1) ........................ (1,724,789) (3,592,707)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS C .............................. (430,534) (2,370,998)
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - CLASS D ............................... N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS D ........................... N/A N/A
COST OF SHARES REDEEMED - CLASS D ................................. N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS D .............................. N/A N/A
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) .......... 214,450,703 68,183,780
REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS (NOTE 1) ...... 64,467,140 26,359,810
COST OF SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) ............ (345,551,842) (231,681,573)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - ADMINISTRATOR CLASS .................. (66,633,999) (137,137,983)
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) .......... N/A N/A
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS (NOTE 1) ...... N/A N/A
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) ............ N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - INSTITUTIONAL CLASS .................. N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS ........................................ (50,356,962) (174,330,870)
===================== =====================
NET INCREASE (DECREASE) IN NET ASSETS ................................ (209,052,468) (121,424,149)
===================== =====================
ENDING NET ASSETS .................................................... $ 799,249,224 $ 1,008,301,692
===================== =====================
45
WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
C&B LARGE CAP VALUE FUND
----------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005
- ------------------------------------------------------------------------------------------------------------------------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A (NOTE 1) .................................... 1,638,315 5,710,877
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS A (NOTE 1) . 143,185 23,644
SHARES REDEEMED - CLASS A (NOTE 1) ................................ (1,931,762) (1,114,064)
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A .............. (150,262) 4,620,457
--------------------- ---------------------
SHARES SOLD - CLASS B (NOTE 1) .................................... 326,272 2,451,755
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS B (NOTE 1) . 56,824 11,563
SHARES REDEEMED - CLASS B (NOTE 1) ................................ (419,583) (325,366)
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B .............. (36,487) 2,137,952
--------------------- ---------------------
SHARES SOLD - CLASS C (NOTE 1) .................................... 304,347 1,310,862
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS C (NOTE 1) . 32,247 5,804
SHARES REDEEMED - CLASS C (NOTE 1) ................................ (238,111) (119,587)
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C .............. 98,483 1,197,079
--------------------- ---------------------
SHARES SOLD - CLASS D ............................................. 2,785,622 16,086,919
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS D .......... 464,209 93,445
SHARES REDEEMED - CLASS D ......................................... (4,591,834) (3,355,209)
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS D .............. (1,342,003) 12,825,155
--------------------- ---------------------
SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ........................ 8,006,365 40,090,811
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS
- ADMINISTRATOR CLASS (NOTE 1) .................................. 642,231 51,886
SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) .................... (7,027,951) (18,665,878)
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADMINISTRATOR CLASS .. 1,620,645 21,476,819
--------------------- ---------------------
SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) ........................ 291,293 6,748,939
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS
- INSTITUTIONAL CLASS (NOTE 1) .................................. 194,825 32,921
SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) .................... (251,396) (641,217)
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INSTITUTIONAL CLASS .. 234,722 6,140,643
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM
CAPITAL SHARE TRANSACTIONS ........................................ 425,098 48,398,105
===================== =====================
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ......... $ 1,098,650 $ 1,617,354
===================== =====================
(1) SHARES SOLD MAY INCLUDE AMOUNTS RELATED TO FUND MERGERS AND SHARE CLASS
CONVERSIONS (SEE NOTE 1).
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
46
STATEMENTS OF CHANGES IN NET ASSETS WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
- --------------------------------------------------------------------------------
DIVERSIFIED EQUITY FUND
----------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005
- ------------------------------------------------------------------------------------------------------------------------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A (NOTE 1) .................................... 271,827 707,625
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS A (NOTE 1) . 355,665 221,966
SHARES REDEEMED - CLASS A (NOTE 1) ................................ (409,398) (657,268)
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A .............. 218,094 272,323
--------------------- ---------------------
SHARES SOLD - CLASS B (NOTE 1) .................................... 45,851 134,932
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS B (NOTE 1) . 199,081 159,482
SHARES REDEEMED - CLASS B (NOTE 1) ................................ (302,689) (804,830)
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B .............. (57,757) (510,416)
--------------------- ---------------------
SHARES SOLD - CLASS C (NOTE 1) .................................... 8,031 17,849
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS C (NOTE 1) . 21,951 14,517
SHARES REDEEMED - CLASS C (NOTE 1) ................................ (23,511) (56,963)
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C .............. 6,471 (24,597)
--------------------- ---------------------
SHARES SOLD - CLASS D ............................................. N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS D .......... N/A N/A
SHARES REDEEMED - CLASS D ......................................... N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS D .............. N/A N/A
--------------------- ---------------------
SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ........................ 30,527,575 2,559,679
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS
- ADMINISTRATOR CLASS (NOTE 1) .................................. 3,583,101 2,474,470
SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) .................... (31,920,154) (6,392,089)
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADMINISTRATOR CLASS .. 2,190,522 (1,357,940)
--------------------- ---------------------
SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) ........................ N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS
- INSTITUTIONAL CLASS (NOTE 1) .................................. N/A N/A
SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) .................... N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INSTITUTIONAL CLASS .. N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM
CAPITAL SHARE TRANSACTIONS ........................................ 2,357,330 (1,620,630)
===================== =====================
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ......... $ 1,024,350 $ 3,837,318
===================== =====================
DIVERSIFIED SMALL CAP FUND
----------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005
- ------------------------------------------------------------------------------------------------------------------------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A (NOTE 1) .................................... N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS A (NOTE 1) . N/A N/A
SHARES REDEEMED - CLASS A (NOTE 1) ................................ N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A .............. N/A N/A
--------------------- ---------------------
SHARES SOLD - CLASS B (NOTE 1) .................................... N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS B (NOTE 1) . N/A N/A
SHARES REDEEMED - CLASS B (NOTE 1) ................................ N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B .............. N/A N/A
--------------------- ---------------------
SHARES SOLD - CLASS C (NOTE 1) .................................... N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS C (NOTE 1) . N/A N/A
SHARES REDEEMED - CLASS C (NOTE 1) ................................ N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C .............. N/A N/A
--------------------- ---------------------
SHARES SOLD - CLASS D ............................................. N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS D .......... N/A N/A
SHARES REDEEMED - CLASS D ......................................... N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS D .............. N/A N/A
--------------------- ---------------------
SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ........................ 10,408,520 17,394,522
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS
- ADMINISTRATOR CLASS (NOTE 1) .................................. 3,096,834 2,175,273
SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) .................... (8,909,147) (14,768,383)
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADMINISTRATOR CLASS .. 4,596,207 4,801,412
--------------------- ---------------------
SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) ........................ N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS
- INSTITUTIONAL CLASS (NOTE 1) .................................. N/A N/A
SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) .................... N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INSTITUTIONAL CLASS .. N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM
CAPITAL SHARE TRANSACTIONS ........................................ 4,596,207 4,801,412
===================== =====================
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ......... $ (312,238) $ (55,689)
===================== =====================
EQUITY INCOME FUND
----------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005(1)
- ------------------------------------------------------------------------------------------------------------------------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A (NOTE 1) .................................... 304,579 880,518
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS A (NOTE 1) . 1,142,286 364,612
SHARES REDEEMED - CLASS A (NOTE 1) ................................ (823,098) (1,528,563)
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A .............. 623,767 (283,433)
--------------------- ---------------------
SHARES SOLD - CLASS B (NOTE 1) .................................... 26,487 82,490
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS B (NOTE 1) . 347,933 134,705
SHARES REDEEMED - CLASS B (NOTE 1) ................................ (387,199) (899,876)
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B .............. (12,779) (682,681)
--------------------- ---------------------
SHARES SOLD - CLASS C (NOTE 1) .................................... 6,445 19,842
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS C (NOTE 1) . 34,479 13,916
SHARES REDEEMED - CLASS C (NOTE 1) ................................ (51,017) (103,757)
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C .............. (10,093) (69,999)
--------------------- ---------------------
SHARES SOLD - CLASS D ............................................. N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS D .......... N/A N/A
SHARES REDEEMED - CLASS D ......................................... N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS D .............. N/A N/A
--------------------- ---------------------
SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ........................ 7,147,605 1,936,641
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS
- ADMINISTRATOR CLASS (NOTE 1) .................................. 2,146,324 758,737
SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) .................... (11,203,530) (6,570,891)
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADMINISTRATOR CLASS .. (1,909,601) (3,875,513)
--------------------- ---------------------
SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) ........................ N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS
- INSTITUTIONAL CLASS (NOTE 1) .................................. N/A N/A
SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) .................... N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INSTITUTIONAL CLASS .. N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM
CAPITAL SHARE TRANSACTIONS ........................................ (1,308,706) (4,911,626)
===================== =====================
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ......... $ 326,863 $ 339,708
===================== =====================
47
WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
EQUITY VALUE FUND
----------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005
- ------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ........................................... $ 69,665,565 $ 3,447,414
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ...................................... 325,213 48,515
NET REALIZED GAIN (LOSS) ON INVESTMENTS ........................... (215,266) 621,316
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS 4,300,838 1,671,177
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ...... 4,410,785 2,341,008
--------------------- ---------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ........................................................ (21,560) (14,199)
CLASS B ........................................................ 0 0
CLASS C ........................................................ 0 (343)
ADMINISTRATOR CLASS ............................................ (200,582) (485)
INSTITUTIONAL CLASS ............................................ N/A N/A
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A ........................................................ (8,112) 0
CLASS B ........................................................ (5,083) 0
CLASS C ........................................................ (783) 0
ADMINISTRATOR CLASS ............................................ (133,040) 0
INSTITUTIONAL CLASS ............................................ N/A N/A
--------------------- ---------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS .................................. (369,160) (15,027)
--------------------- ---------------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A (NOTE 1) ...................... 653,010 2,497,466
REINVESTMENT OF DISTRIBUTIONS - CLASS A (NOTE 1) .................. 29,209 13,506
COST OF SHARES REDEEMED - CLASS A (NOTE 1) ........................ (416,894) (859,349)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS A .............................. 265,325 1,651,623
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - CLASS B (NOTE 1) ...................... 367,612 1,119,000
REINVESTMENT OF DISTRIBUTIONS - CLASS B (NOTE 1) .................. 4,844 0
COST OF SHARES REDEEMED - CLASS B (NOTE 1) ........................ (330,900) (332,202)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS B .............................. 41,556 786,798
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - CLASS C (NOTE 1) ...................... 16,805 140,852
REINVESTMENT OF DISTRIBUTIONS - CLASS C (NOTE 1) .................. 774 271
COST OF SHARES REDEEMED - CLASS C (NOTE 1) ........................ (73,675) (76,376)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS C .............................. (56,096) 64,747
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) .......... 8,280,410 62,167,706
REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS (NOTE 1) ...... 321,545 14
COST OF SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) ............ (8,103,072) (778,718)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - ADMINISTRATOR CLASS .................. 498,883 61,389,002
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) .......... N/A N/A
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS (NOTE 1) ...... N/A N/A
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) ............ N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - INSTITUTIONAL CLASS .................. N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS ........................................ 749,668 63,892,170
===================== =====================
NET INCREASE (DECREASE) IN NET ASSETS ................................ 4,791,293 66,218,151
===================== =====================
ENDING NET ASSETS .................................................... $ 74,456,858 $ 69,665,565
===================== =====================
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
48
STATEMENTS OF CHANGES IN NET ASSETS WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
- --------------------------------------------------------------------------------
GROWTH EQUITY FUND
----------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005
- ------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ........................................... $ 560,778,729 $ 525,438,936
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ...................................... (21,065) 2,075,269
NET REALIZED GAIN (LOSS) ON INVESTMENTS ........................... 34,878,712 95,358,400
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS 26,309,824 (9,191,355)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ...... 61,167,471 88,242,314
--------------------- ---------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ........................................................ (4,096) 0
CLASS B ........................................................ 0 0
CLASS C ........................................................ 0 0
ADMINISTRATOR CLASS ............................................ (897,737) (599,922)
INSTITUTIONAL CLASS ............................................ (577,908) 0
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A ........................................................ (3,374,982) (1,105,103)
CLASS B ........................................................ (1,305,682) (643,047)
CLASS C ........................................................ (141,261) (52,253)
ADMINISTRATOR CLASS ............................................ (57,971,069) (26,827,315)
INSTITUTIONAL CLASS ............................................ (19,564,840) 0
--------------------- ---------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS .................................. (83,837,575) (29,227,640)
--------------------- ---------------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A (NOTE 1) ...................... 3,023,557 5,751,097
REINVESTMENT OF DISTRIBUTIONS - CLASS A (NOTE 1) .................. 3,322,262 1,095,308
COST OF SHARES REDEEMED - CLASS A (NOTE 1) ........................ (2,868,414) (5,040,982)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS A .............................. 3,477,405 1,805,423
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - CLASS B (NOTE 1) ...................... 515,063 987,772
REINVESTMENT OF DISTRIBUTIONS - CLASS B (NOTE 1) .................. 1,279,429 633,928
COST OF SHARES REDEEMED - CLASS B (NOTE 1) ........................ (1,757,349) (5,478,510)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS B .............................. 37,143 (3,856,810)
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - CLASS C (NOTE 1) ...................... 397,006 202,684
REINVESTMENT OF DISTRIBUTIONS - CLASS C (NOTE 1) .................. 131,944 50,214
COST OF SHARES REDEEMED - CLASS C (NOTE 1) ........................ (230,235) (594,093)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS C .............................. 298,715 (341,195)
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) .......... 46,019,734 58,238,932
REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS (NOTE 1) ...... 58,268,987 27,200,769
COST OF SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) ............ (54,479,773) (230,664,656)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - ADMINISTRATOR CLASS .................. 49,808,948 (145,224,955)
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) .......... 16,873,456 127,064,241
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS (NOTE 1) ...... 20,142,745 0
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) ............ (16,028,720) (3,121,585)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - INSTITUTIONAL CLASS .................. 20,987,481 123,942,656
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS ........................................ 74,609,692 (23,674,881)
===================== =====================
NET INCREASE (DECREASE) IN NET ASSETS ................................ 51,939,588 35,339,793
===================== =====================
ENDING NET ASSETS .................................................... $ 612,718,317 $ 560,778,729
===================== =====================
INTERNATIONAL VALUE FUND
----------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005
- ------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ........................................... $ 943,105 $ 22,873
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ...................................... 8,641 5,819
NET REALIZED GAIN (LOSS) ON INVESTMENTS ........................... 24,776 (999)
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS 167,205 51,513
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ...... 200,622 56,333
--------------------- ---------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ........................................................ N/A (496)
CLASS B ........................................................ 0 0
CLASS C ........................................................ 0 0
ADMINISTRATOR CLASS ............................................ (1,528) 0
INSTITUTIONAL CLASS ............................................ N/A N/A
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A ........................................................ (2,123) (758)
CLASS B ........................................................ (1,183) 0
CLASS C ........................................................ (273) 0
ADMINISTRATOR CLASS ............................................ (639) 0
INSTITUTIONAL CLASS ............................................ N/A N/A
--------------------- ---------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS .................................. (5,746) (1,254)
--------------------- ---------------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A (NOTE 1) ...................... 545,006 441,910
REINVESTMENT OF DISTRIBUTIONS - CLASS A (NOTE 1) .................. 2,061 1,254
COST OF SHARES REDEEMED - CLASS A (NOTE 1) ........................ (50,852) (1,980)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS A .............................. 496,215 441,184
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - CLASS B (NOTE 1) ...................... 333,437 178,196
REINVESTMENT OF DISTRIBUTIONS - CLASS B (NOTE 1) .................. 1,183 0
COST OF SHARES REDEEMED - CLASS B (NOTE 1) ........................ (188) (5,660)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS B .............................. 334,432 172,536
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - CLASS C (NOTE 1) ...................... 30,639 56,433
REINVESTMENT OF DISTRIBUTIONS - CLASS C (NOTE 1) .................. 273 0
COST OF SHARES REDEEMED - CLASS C (NOTE 1) ........................ (14,886) 0
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS C .............................. 16,026 56,433
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) .......... 50,652 195,000
REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS (NOTE 1) ...... 2,169 0
COST OF SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) ............ (14,576) 0
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - ADMINISTRATOR CLASS .................. 38,245 195,000
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) .......... N/A N/A
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS (NOTE 1) ...... N/A N/A
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) ............ N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - INSTITUTIONAL CLASS .................. N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS ........................................ 884,918 865,153
===================== =====================
NET INCREASE (DECREASE) IN NET ASSETS ................................ 1,079,794 920,232
===================== =====================
ENDING NET ASSETS .................................................... $ 2,022,899 $ 943,105
===================== =====================
LARGE CAP APPRECIATION FUND
----------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005
- ------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ........................................... $ 53,611,321 $ 37,400,421
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ...................................... 21,590 148,173
NET REALIZED GAIN (LOSS) ON INVESTMENTS ........................... 4,096,487 2,785,943
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS 349,881 4,862,951
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ...... 4,467,958 7,797,067
--------------------- ---------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ........................................................ 0 (83,495)
CLASS B ........................................................ 0 0
CLASS C ........................................................ 0 0
ADMINISTRATOR CLASS ............................................ (40,003) (59,487)
INSTITUTIONAL CLASS ............................................ N/A N/A
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A ........................................................ (1,752,260) (254,198)
CLASS B ........................................................ (175,778) (19,836)
CLASS C ........................................................ (45,586) (7,690)
ADMINISTRATOR CLASS ............................................ (993,338) (178,894)
INSTITUTIONAL CLASS ............................................ N/A N/A
--------------------- ---------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS .................................. (3,006,965) (603,600)
--------------------- ---------------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A (NOTE 1) ...................... 12,860,698 26,406,584
REINVESTMENT OF DISTRIBUTIONS - CLASS A (NOTE 1) .................. 1,748,120 337,131
COST OF SHARES REDEEMED - CLASS A (NOTE 1) ........................ (10,841,328) (19,155,531)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS A .............................. 3,767,490 7,588,184
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - CLASS B (NOTE 1) ...................... 1,037,241 1,338,632
REINVESTMENT OF DISTRIBUTIONS - CLASS B (NOTE 1) .................. 172,259 19,796
COST OF SHARES REDEEMED - CLASS B (NOTE 1) ........................ (249,838) (463,114)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS B .............................. 959,662 895,314
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - CLASS C (NOTE 1) ...................... 262,899 256,174
REINVESTMENT OF DISTRIBUTIONS - CLASS C (NOTE 1) .................. 43,760 6,967
COST OF SHARES REDEEMED - CLASS C (NOTE 1) ........................ (192,069) (273,648)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS C .............................. 114,590 (10,507)
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) .......... 3,304,656 4,709,342
REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS (NOTE 1) ...... 1,000,385 238,381
COST OF SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) ............ (2,582,827) (4,403,281)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - ADMINISTRATOR CLASS .................. 1,722,214 544,442
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) .......... N/A N/A
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS (NOTE 1) ...... N/A N/A
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) ............ N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - INSTITUTIONAL CLASS .................. N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS ........................................ 6,563,956 9,017,433
===================== =====================
NET INCREASE (DECREASE) IN NET ASSETS ................................ 8,024,949 16,210,900
===================== =====================
ENDING NET ASSETS .................................................... $ 61,636,270 $ 53,611,321
===================== =====================
49
WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
EQUITY VALUE FUND
----------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005
- ------------------------------------------------------------------------------------------------------------------------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A (NOTE 1) .................................... 46,556 198,465
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS A (NOTE 1) . 2,089 1,080
SHARES REDEEMED - CLASS A (NOTE 1) ................................ (29,764) (68,138)
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A .............. 18,881 131,407
--------------------- ---------------------
SHARES SOLD - CLASS B (NOTE 1) .................................... 26,573 89,463
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS B (NOTE 1) . 348 0
SHARES REDEEMED - CLASS B (NOTE 1) ................................ (23,586) (25,635)
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B .............. 3,335 63,828
--------------------- ---------------------
SHARES SOLD - CLASS C (NOTE 1) .................................... 1,208 11,320
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS C (NOTE 1) . 55 22
SHARES REDEEMED - CLASS C (NOTE 1) ................................ (5,433) (5,824)
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C .............. (4,170) 5,518
--------------------- ---------------------
SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ........................ 584,860 4,551,616
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS
- ADMINISTRATOR CLASS (NOTE 1) .................................. 22,689 1
SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) .................... (569,032) (58,118)
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADMINISTRATOR CLASS .. 38,517 4,493,499
--------------------- ---------------------
SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) ........................ N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS
- INSTITUTIONAL CLASS (NOTE 1) .................................. N/A N/A
SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) .................... N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INSTITUTIONAL CLASS .. N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM
CAPITAL SHARE TRANSACTIONS ........................................ 56,563 4,694,252
===================== =====================
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ......... $ 140,505 $ 37,434
===================== =====================
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
50
STATEMENTS OF CHANGES IN NET ASSETS WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
- --------------------------------------------------------------------------------
GROWTH EQUITY FUND
----------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005
- ------------------------------------------------------------------------------------------------------------------------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A (NOTE 1) .................................... 103,907 198,445
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS A (NOTE 1) . 120,679 38,164
SHARES REDEEMED - CLASS A (NOTE 1) ................................ (98,173) (174,070)
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A .............. 126,413 62,539
--------------------- ---------------------
SHARES SOLD - CLASS B (NOTE 1) .................................... 19,906 37,035
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS B (NOTE 1) . 51,590 23,958
SHARES REDEEMED - CLASS B (NOTE 1) ................................ (65,347) (204,328)
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B .............. 6,149 (143,335)
--------------------- ---------------------
SHARES SOLD - CLASS C (NOTE 1) .................................... 14,458 7,466
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS C (NOTE 1) . 5,087 1,827
SHARES REDEEMED - CLASS C (NOTE 1) ................................ (8,120) (21,743)
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C .............. 11,425 (12,450)
--------------------- ---------------------
SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ........................ 1,605,441 1,994,432
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS
- ADMINISTRATOR CLASS (NOTE 1) .................................. 2,085,802 937,592
SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) .................... (1,881,616) (7,855,403)
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADMINISTRATOR CLASS .. 1,809,627 (4,923,379)
--------------------- ---------------------
SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) ........................ 575,676 4,318,047
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS
- INSTITUTIONAL CLASS (NOTE 1) .................................. 720,379 0
SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) .................... (547,551) (102,749)
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INSTITUTIONAL CLASS .. 748,504 4,215,298
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM
CAPITAL SHARE TRANSACTIONS ........................................ 2,702,118 (801,327)
===================== =====================
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ......... $ (680,130) $ 820,676
===================== =====================
INTERNATIONAL VALUE FUND
----------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005
- ------------------------------------------------------------------------------------------------------------------------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A (NOTE 1) .................................... 36,826 33,029
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS A (NOTE 1) . 143 98
SHARES REDEEMED - CLASS A (NOTE 1) ................................ (3,391) (141)
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A .............. 33,578 32,986
--------------------- ---------------------
SHARES SOLD - CLASS B (NOTE 1) .................................... 23,244 13,444
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS B (NOTE 1) . 83 0
SHARES REDEEMED - CLASS B (NOTE 1) ................................ (13) (404)
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B .............. 23,314 13,040
--------------------- ---------------------
SHARES SOLD - CLASS C (NOTE 1) .................................... 2,221 4,207
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS C (NOTE 1) . 19 0
SHARES REDEEMED - CLASS C (NOTE 1) ................................ (1,001) 0
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C .............. 1,239 4,207
--------------------- ---------------------
SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ........................ 3,375 14,617
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS
- ADMINISTRATOR CLASS (NOTE 1) .................................. 151 0
SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) .................... (1,057) 0
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADMINISTRATOR CLASS .. 2,469 14,617
--------------------- ---------------------
SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) ........................ N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS
- INSTITUTIONAL CLASS (NOTE 1) .................................. N/A N/A
SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) .................... N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INSTITUTIONAL CLASS .. N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM
CAPITAL SHARE TRANSACTIONS ........................................ 60,600 64,850
===================== =====================
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ......... $ 11,447 $ 4,334
===================== =====================
LARGE CAP APPRECIATION FUND
----------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005
- ------------------------------------------------------------------------------------------------------------------------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A (NOTE 1) .................................... 1,119,609 2,445,974
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS A (NOTE 1) . 154,838 31,500
SHARES REDEEMED - CLASS A (NOTE 1) ................................ (943,706) (1,780,149)
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A .............. 330,741 697,325
--------------------- ---------------------
SHARES SOLD - CLASS B (NOTE 1) .................................... 93,332 127,998
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS B (NOTE 1) . 15,746 1,894
SHARES REDEEMED - CLASS B (NOTE 1) ................................ (22,344) (44,073)
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B .............. 86,734 85,819
--------------------- ---------------------
SHARES SOLD - CLASS C (NOTE 1) .................................... 23,374 24,144
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS C (NOTE 1) . 3,996 667
SHARES REDEEMED - CLASS C (NOTE 1) ................................ (17,355) (25,951)
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C .............. 10,015 (1,140)
--------------------- ---------------------
SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ........................ 287,088 431,173
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS
- ADMINISTRATOR CLASS (NOTE 1) .................................. 87,780 22,128
SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) .................... (222,736) (404,871)
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADMINISTRATOR CLASS .. 152,132 48,430
--------------------- ---------------------
SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) ........................ N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS
- INSTITUTIONAL CLASS (NOTE 1) .................................. N/A N/A
SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) .................... N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INSTITUTIONAL CLASS .. N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM
CAPITAL SHARE TRANSACTIONS ........................................ 579,622 830,434
===================== =====================
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ......... $ (15,140) $ 3,273
===================== =====================
51
WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
LARGE COMPANY GROWTH FUND
----------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005(1)
- ------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS .............................................. $ 2,813,219,775 $ 2,735,592,632
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ...................................... (4,279,134) 8,099,020
NET REALIZED GAIN (LOSS) ON INVESTMENTS ........................... 39,305,682 70,075,916
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS 126,179,215 230,403,507
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ...... 161,205,763 308,578,443
--------------------- ---------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ........................................................ (703,209) 0
CLASS B ........................................................ 0 0
CLASS C ........................................................ 0 0
CLASS Z ........................................................ (338,346) 0
ADMINISTRATOR CLASS ............................................ (3,712,000) (3,294,215)
INSTITUTIONAL CLASS ............................................ (346,417) (195,867)
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A ........................................................ 0 0
CLASS B ........................................................ 0 0
CLASS C ........................................................ 0 0
CLASS Z ........................................................ 0 0
ADMINISTRATOR CLASS ............................................ 0 0
INSTITUTIONAL CLASS ............................................ 0 0
--------------------- ---------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS .................................. (5,099,972) (3,490,082)
--------------------- ---------------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A (NOTE 1) ...................... 105,006,729 251,026,859
REINVESTMENT OF DISTRIBUTIONS - CLASS A (NOTE 1) .................. 664,814 0
COST OF SHARES REDEEMED - CLASS A (NOTE 1) ........................ (115,457,305) (221,718,382)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS A .............................. (9,785,762) 29,308,477
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - CLASS B (NOTE 1) ...................... 2,371,163 30,960,310
REINVESTMENT OF DISTRIBUTIONS - CLASS B (NOTE 1) .................. 0 0
COST OF SHARES REDEEMED - CLASS B (NOTE 1) ........................ (49,876,385) (61,985,872)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS B .............................. (47,505,222) (31,025,562)
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - CLASS C (NOTE 1) ...................... 520,869 1,341,371
REINVESTMENT OF DISTRIBUTIONS - CLASS C (NOTE 1) .................. 0 0
COST OF SHARES REDEEMED - CLASS C (NOTE 1) ........................ (4,880,173) (14,529,875)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS C .............................. (4,359,304) (13,188,504)
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - CLASS Z (NOTE 1) ...................... 3,977,647 136,964,011
REINVESTMENT OF DISTRIBUTIONS - CLASS Z (NOTE 1) .................. 335,751 0
COST OF SHARES REDEEMED - CLASS Z (NOTE 1) ........................ (14,105,088) (18,434,303)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS Z .............................. (9,791,690) 118,529,708
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) .......... 1,420,147,905 688,872,467
REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS (NOTE 1) ...... 3,157,826 2,634,629
COST OF SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) ............ (1,682,868,068) (1,069,774,244)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - ADMINISTRATOR CLASS .................. (259,562,337) (378,267,148)
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) .......... 29,156,771 78,280,082
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS (NOTE 1) ...... 221,464 195,867
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) ............ (26,059,784) (31,294,138)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - INSTITUTIONAL CLASS .................. 3,318,451 47,181,811
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS ........................................ (327,685,864) (227,461,218)
===================== =====================
NET INCREASE (DECREASE) IN NET ASSETS ................................ (171,580,073) 77,627,143
===================== =====================
ENDING NET ASSETS .................................................... $ 2,641,639,702 $ 2,813,219,775
===================== =====================
(1) PROCEEDS FROM SHARES SOLD MAY INCLUDE AMOUNTS RELATED TO FUND MERGERS AND
SHARE CLASS CONVERSIONS. SEE NOTE 1.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
52
STATEMENTS OF CHANGES IN NET ASSETS WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH FUND
----------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005
- ------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS .............................................. $ 526,138,301 $ 487,289,383
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ...................................... (1,442,076) (3,796,923)
NET REALIZED GAIN (LOSS) ON INVESTMENTS ........................... 45,701,772 58,289,414
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS 52,874,819 19,099,512
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ...... 97,134,515 73,592,003
--------------------- ---------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ........................................................ 0 0
CLASS B ........................................................ 0 0
CLASS C ........................................................ 0 0
CLASS Z ........................................................ N/A N/A
ADMINISTRATOR CLASS ............................................ 0 0
INSTITUTIONAL CLASS ............................................ N/A N/A
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A ........................................................ (188,199) (6,766)
CLASS B ........................................................ (43,570) (1,420)
CLASS C ........................................................ (9,399) (277)
CLASS Z ........................................................ N/A N/A
ADMINISTRATOR CLASS ............................................ (39,157,391) (3,114,794)
INSTITUTIONAL CLASS ............................................ N/A N/A
--------------------- ---------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS .................................. (39,398,559) (3,123,257)
--------------------- ---------------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A (NOTE 1) ...................... 4,202,282 2,475,828
REINVESTMENT OF DISTRIBUTIONS - CLASS A (NOTE 1) .................. 187,482 6,736
COST OF SHARES REDEEMED - CLASS A (NOTE 1) ........................ (561,975) (1,217,587)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS A .............................. 3,827,789 1,264,977
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - CLASS B (NOTE 1) ...................... 258,382 424,610
REINVESTMENT OF DISTRIBUTIONS - CLASS B (NOTE 1) .................. 43,432 1,369
COST OF SHARES REDEEMED - CLASS B (NOTE 1) ........................ (45,305) (53,884)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS B .............................. 256,509 372,095
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - CLASS C (NOTE 1) ...................... 108,818 57,580
REINVESTMENT OF DISTRIBUTIONS - CLASS C (NOTE 1) .................. 10,715 277
COST OF SHARES REDEEMED - CLASS C (NOTE 1) ........................ (36,670) (17,326)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS C .............................. 82,863 40,531
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - CLASS Z (NOTE 1) ...................... N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS Z (NOTE 1) .................. N/A N/A
COST OF SHARES REDEEMED - CLASS Z (NOTE 1) ........................ N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS Z .............................. N/A N/A
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) .......... 74,871,474 126,079,673
REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS (NOTE 1) ...... 38,367,975 3,041,362
COST OF SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) ............ (74,939,104) (162,418,466)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - ADMINISTRATOR CLASS .................. 38,300,345 (33,297,431)
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) .......... N/A N/A
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS (NOTE 1) ...... N/A N/A
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) ............ N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - INSTITUTIONAL CLASS .................. N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS ........................................ 42,467,506 (31,619,828)
===================== =====================
NET INCREASE (DECREASE) IN NET ASSETS ................................ 100,203,462 38,848,918
===================== =====================
ENDING NET ASSETS .................................................... $ 626,431,763 $ 526,138,301
===================== =====================
SMALL COMPANY VALUE FUND
----------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005
- ------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS .............................................. $ 233,665,412 $ 105,204,995
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ...................................... 224,402 248,318
NET REALIZED GAIN (LOSS) ON INVESTMENTS ........................... 19,546,767 21,559,818
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS 18,369,593 10,276,212
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ...... 38,140,762 32,084,348
--------------------- ---------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ........................................................ (41,980) 0
CLASS B ........................................................ 0 0
CLASS C ........................................................ 0 0
CLASS Z ........................................................ N/A N/A
ADMINISTRATOR CLASS ............................................ (404,456) 0
INSTITUTIONAL CLASS ............................................ N/A N/A
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A ........................................................ (6,595,774) (2,264,229)
CLASS B ........................................................ (1,347,107) (780,300)
CLASS C ........................................................ (438,280) (187,151)
CLASS Z ........................................................ N/A N/A
ADMINISTRATOR CLASS ............................................ (14,544,288) (4,617,320)
INSTITUTIONAL CLASS ............................................ N/A N/A
--------------------- ---------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS .................................. (23,371,885) (7,849,000)
--------------------- ---------------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A (NOTE 1) ...................... 47,779,495 68,957,691
REINVESTMENT OF DISTRIBUTIONS - CLASS A (NOTE 1) .................. 6,419,529 2,197,603
COST OF SHARES REDEEMED - CLASS A (NOTE 1) ........................ (38,017,624) (36,978,295)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS A .............................. 16,181,400 34,176,999
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - CLASS B (NOTE 1) ...................... 894,433 3,979,807
REINVESTMENT OF DISTRIBUTIONS - CLASS B (NOTE 1) .................. 1,296,407 760,439
COST OF SHARES REDEEMED - CLASS B (NOTE 1) ........................ (1,613,604) (2,487,786)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS B .............................. 577,236 2,252,460
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - CLASS C (NOTE 1) ...................... 805,693 2,356,418
REINVESTMENT OF DISTRIBUTIONS - CLASS C (NOTE 1) .................. 396,729 176,872
COST OF SHARES REDEEMED - CLASS C (NOTE 1) ........................ (687,441) (968,625)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS C .............................. 514,981 1,564,665
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - CLASS Z (NOTE 1) ...................... N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS Z (NOTE 1) .................. N/A N/A
COST OF SHARES REDEEMED - CLASS Z (NOTE 1) ........................ N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS Z .............................. N/A N/A
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) .......... 235,798,974 190,137,571
REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS (NOTE 1) ...... 14,408,819 4,411,297
COST OF SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) ............ (130,913,610) (128,317,923)
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - ADMINISTRATOR CLASS .................. 119,294,183 66,230,945
--------------------- ---------------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) .......... N/A N/A
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS (NOTE 1) ...... N/A N/A
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) ............ N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - INSTITUTIONAL CLASS .................. N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS ........................................ 136,567,800 104,225,069
===================== =====================
NET INCREASE (DECREASE) IN NET ASSETS ................................ 151,336,677 128,460,417
===================== =====================
ENDING NET ASSETS .................................................... $ 385,002,089 $ 233,665,412
===================== =====================
53
WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
LARGE COMPANY GROWTH FUND
----------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005(1)
- ------------------------------------------------------------------------------------------------------------------------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A (NOTE 1) .................................... 2,024,723 5,154,538
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS A (NOTE 1) . 12,644 0
SHARES REDEEMED - CLASS A (NOTE 1) ................................ (2,226,477) (4,705,233)
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A .............. (189,110) 449,305
--------------------- ---------------------
SHARES SOLD - CLASS B (NOTE 1) .................................... 50,982 243,643
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS B (NOTE 1) . 0 0
SHARES REDEEMED - CLASS B (NOTE 1) ................................ (1,072,533) (1,453,267)
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B .............. (1,021,551) (1,209,624)
--------------------- ---------------------
SHARES SOLD - CLASS C (NOTE 1) .................................... 11,167 31,638
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS C (NOTE 1) . 0 0
SHARES REDEEMED - CLASS C (NOTE 1) ................................ (105,476) (340,189)
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C .............. (94,309) (308,551)
--------------------- ---------------------
SHARES SOLD - CLASS Z (NOTE 1) .................................... 80,980 3,053,202
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS Z (NOTE 1) . 6,737 0
SHARES REDEEMED - CLASS Z (NOTE 1) ................................ (287,228) (409,260)
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS Z .............. (199,511) 2,643,942
--------------------- ---------------------
SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ........................ 28,534,723 15,282,753
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS
- ADMINISTRATOR CLASS (NOTE 1) .................................. 63,157 57,575
SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) .................... (33,786,635) (22,399,747)
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADMINISTRATOR CLASS .. (5,188,755) (7,059,419)
--------------------- ---------------------
SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) ........................ 588,218 1,675,050
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS
- INSTITUTIONAL CLASS (NOTE 1) .................................. 4,428 4,284
SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) .................... (525,277) (706,406)
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INSTITUTIONAL CLASS .. 67,369 972,928
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM
CAPITAL SHARE TRANSACTIONS ........................................ (6,625,867) (4,511,419)
===================== =====================
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ......... $ (9,444,721) $ (65,615)
===================== =====================
(1) SHARES SOLD MAY INCLUDE AMOUNTS RELATED TO FUND MERGERS AND SHARE CLASS
CONVERSIONS (SEE NOTE 1).
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
54
STATEMENTS OF CHANGES IN NET ASSETS WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH FUND
----------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005
- ------------------------------------------------------------------------------------------------------------------------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A (NOTE 1) .................................... 129,444 85,615
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS A (NOTE 1) . 6,330 228
SHARES REDEEMED - CLASS A (NOTE 1) ................................ (18,372) (41,855)
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A .............. 117,402 43,988
--------------------- ---------------------
SHARES SOLD - CLASS B (NOTE 1) .................................... 8,323 14,672
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS B (NOTE 1) . 1,487 47
SHARES REDEEMED - CLASS B (NOTE 1) ................................ (1,422) (1,958)
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B .............. 8,388 12,761
--------------------- ---------------------
SHARES SOLD - CLASS C (NOTE 1) .................................... 3,578 2,038
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS C (NOTE 1) . 318 9
SHARES REDEEMED - CLASS C (NOTE 1) ................................ (1,182) (572)
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C .............. 2,714 1,475
--------------------- ---------------------
SHARES SOLD - CLASS Z (NOTE 1) .................................... N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS Z (NOTE 1) . N/A N/A
SHARES REDEEMED - CLASS Z (NOTE 1) ................................ N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS Z .............. N/A N/A
--------------------- ---------------------
SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ........................ 2,376,811 4,348,066
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS
- ADMINISTRATOR CLASS (NOTE 1) .................................. 1,288,381 102,575
SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) .................... (2,372,978) (5,701,519)
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADMINISTRATOR CLASS .. 1,292,214 (1,250,878)
--------------------- ---------------------
SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) ........................ N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS
- INSTITUTIONAL CLASS (NOTE 1) .................................. N/A N/A
SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) .................... N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INSTITUTIONAL CLASS .. N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM
CAPITAL SHARE TRANSACTIONS ........................................ 1,420,718 (1,192,654)
===================== =====================
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ......... $ (2,787,707) $ (1,345,631)
===================== =====================
SMALL COMPANY VALUE FUND
----------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005
- ------------------------------------------------------------------------------------------------------------------------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A (NOTE 1) .................................... 3,078,349 4,587,328
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS A (NOTE 1) . 425,172 153,894
SHARES REDEEMED - CLASS A (NOTE 1) ................................ (2,444,720) (2,459,598)
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A .............. 1,058,801 2,281,624
--------------------- ---------------------
SHARES SOLD - CLASS B (NOTE 1) .................................... 59,762 273,493
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS B (NOTE 1) . 88,856 54,584
SHARES REDEEMED - CLASS B (NOTE 1) ................................ (106,846) (172,357)
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B .............. 41,772 155,720
--------------------- ---------------------
SHARES SOLD - CLASS C (NOTE 1) .................................... 53,786 160,380
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS C (NOTE 1) . 27,211 12,697
SHARES REDEEMED - CLASS C (NOTE 1) ................................ (45,497) (66,897)
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C .............. 35,500 106,180
--------------------- ---------------------
SHARES SOLD - CLASS Z (NOTE 1) .................................... N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS Z (NOTE 1) . N/A N/A
SHARES REDEEMED - CLASS Z (NOTE 1) ................................ N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS Z .............. N/A N/A
--------------------- ---------------------
SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ........................ 15,119,094 12,490,658
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS
- ADMINISTRATOR CLASS (NOTE 1) .................................. 945,869 307,193
SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) .................... (8,354,898) (8,425,050)
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADMINISTRATOR CLASS .. 7,710,065 4,372,801
--------------------- ---------------------
SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) ........................ N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS
- INSTITUTIONAL CLASS (NOTE 1) .................................. N/A N/A
SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) .................... N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INSTITUTIONAL CLASS .. N/A N/A
--------------------- ---------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM
CAPITAL SHARE TRANSACTIONS ........................................ 8,846,138 6,916,325
===================== =====================
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ......... $ 226,827 $ 448,861
===================== =====================
55
WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
NET REALIZED
BEGINNING NET AND DISTRIBUTIONS DISTRIBUTIONS
NET ASSET INVESTMENT UNREALIZED FROM NET FROM NET
VALUE PER INCOME GAIN (LOSS) ON INVESTMENT REALIZED
SHARE (LOSS) INVESTMENTS INCOME GAINS
- ------------------------------------------------------------------------------------------------------------------------------------
C&B LARGE CAP VALUE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... $ 8.62 0.04 0.57 (0.04) (0.18)
NOVEMBER 1, 2004(8) TO SEPTEMBER 30, 2005 ........ $ 8.27 0.05(7) 0.40 (0.03) (0.07)
JULY 26, 2004(9) TO OCTOBER 31, 2004 ............. $ 8.01 0.00 0.26 0.00 0.00
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... $ 8.56 0.01 0.57 0.00 (0.18)
NOVEMBER 1, 2004(8) TO SEPTEMBER 30, 2005 ........ $ 8.26 (0.01)(7) 0.40 (0.02) (0.07)
JULY 26, 2004(9) TO OCTOBER 31, 2004 ............. $ 8.01 (0.01) 0.26 0.00 0.00
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... $ 8.56 0.01 0.57 0.00 (0.18)
NOVEMBER 1, 2004(8) TO SEPTEMBER 30, 2005 ........ $ 8.26 (0.01)(7) 0.40 (0.02) (0.07)
JULY 26, 2004(9) TO OCTOBER 31, 2004 ............. $ 8.01 (0.01) 0.26 0.00 0.00
CLASS D
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... $ 8.62 0.03 0.58 (0.04) (0.18)
NOVEMBER 1, 2004(8) TO SEPTEMBER 30, 2005 ........ $ 8.27 0.05(7) 0.40 (0.03) (0.07)
NOVEMBER 1, 2003 TO OCTOBER 31, 2004 ............. $ 7.42 0.03 0.85 (0.03) 0.00
NOVEMBER 1, 2002 TO OCTOBER 31, 2003 ............. $ 6.49 0.05 1.61 (0.05) (0.68)
NOVEMBER 1, 2001 TO OCTOBER 31, 2002 ............. $ 7.13 0.05 (0.38) (0.05) (0.26)
NOVEMBER 1, 2000 TO OCTOBER 31, 2001 ............. $ 8.71 0.07 0.27 (0.11) (1.81)
NOVEMBER 1, 1999 TO OCTOBER 31, 2000 ............. $ 12.06 0.12 0.54 (0.09) (3.92)
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... $ 8.64 0.05 0.57 (0.06) (0.18)
NOVEMBER 1, 2004(8) TO SEPTEMBER 30, 2005 ........ $ 8.27 0.07(7) 0.41 (0.04) (0.07)
JULY 26, 2004(9) TO OCTOBER 31, 2004 ............. $ 8.01 0.01 0.25 0.00 0.00
INSTITUTIONAL CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... $ 8.67 0.07 0.57 (0.08) (0.18)
NOVEMBER 1, 2004(8) TO SEPTEMBER 30, 2005 ........ $ 8.28 0.09(7) 0.41 (0.04) (0.07)
JULY 26, 2004(9) TO OCTOBER 31, 2004 ............. $ 8.01 0.02 0.25 0.00 0.00
DIVERSIFIED EQUITY FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... $ 41.90 0.08 2.98 (0.12) (4.96)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ $ 39.91 0.28(7) 5.22 (0.32) (3.19)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ $ 35.61 0.15 4.41 (0.26) 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ $ 29.00 0.13 6.59 (0.11) 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ $ 36.33 0.09(7) (6.85) (0.15) (0.42)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ $ 52.73 0.09 (11.70) (0.17) (4.62)
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... $ 40.38 (0.13) 2.92 0.00 (4.96)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ $ 38.55 (0.01)(7) 5.03 0.00 (3.19)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ $ 34.43 (0.40) 4.52 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ $ 28.15 (0.19) 6.47 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ $ 35.41 (0.20)(7) (6.64) 0.00 (0.42)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ $ 51.70 (0.17) (11.50) 0.00 (4.62)
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... $ 40.94 (0.03) 2.86 0.00 (4.96)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ $ 39.04 (0.02)(7) 5.11 0.00 (3.19)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ $ 34.90 (0.37) 4.54 (0.03) 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ $ 28.56 (0.05) 6.39 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ $ 35.91 (0.20)(7) (6.73) 0.00 (0.42)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ $ 52.36 (0.16) (11.67) 0.00 (4.62)
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... $ 41.98 0.11 3.00 (0.21) (4.96)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ $ 39.96 0.39(7) 5.22 (0.40) (3.19)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ $ 35.64 0.26 4.39 (0.33) 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ $ 29.04 0.24 6.57 (0.21) 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ $ 36.38 0.18(7) (6.87) (0.23) (0.42)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ $ 52.72 0.15 (11.70) (0.17) (4.62)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
56
FINANCIAL HIGHLIGHTS WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
- --------------------------------------------------------------------------------
RATIO TO AVERAGE NET ASSETS (ANNUALIZED)(1)
--------------------------------------------------
DISTRIBUTIONS ENDING NET
IN EXCESS OF NET ASSET INVESTMENT
REALIZED VALUE PER INCOME GROSS EXPENSES NET
GAINS SHARE (LOSS) EXPENSES WAIVED EXPENSES
- ------------------------------------------------------------------------------------------------------------------------------------
C&B LARGE CAP VALUE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 9.01 0.90% 1.32%(4) (0.12)% 1.20%(4)
NOVEMBER 1, 2004(8) TO SEPTEMBER 30, 2005 ........ 0.00 $ 8.62 0.63% 1.35%(4) (0.15)% 1.20%(4)
JULY 26, 2004(9) TO OCTOBER 31, 2004 ............. 0.00 $ 8.27 0.18% 1.60% (0.40)% 1.20%
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 8.96 0.15% 2.07%(4) (0.12)% 1.95%(4)
NOVEMBER 1, 2004(8) TO SEPTEMBER 30, 2005 ........ 0.00 $ 8.56 (0.11)% 2.10%(4) (0.15)% 1.95%(4)
JULY 26, 2004(9) TO OCTOBER 31, 2004 ............. 0.00 $ 8.26 (0.60)% 2.35% (0.40)% 1.95%
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 8.96 0.15% 2.07%(4) (0.12)% 1.95%(4)
NOVEMBER 1, 2004(8) TO SEPTEMBER 30, 2005 ........ 0.00 $ 8.56 (0.12)% 2.10%(4) (0.15)% 1.95%(4)
JULY 26, 2004(9) TO OCTOBER 31, 2004 ............. 0.00 $ 8.26 (0.58)% 2.35% (0.40)% 1.95%
CLASS D
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 9.01 0.90% 1.32%(4) (0.12)% 1.20%(4)
NOVEMBER 1, 2004(8) TO SEPTEMBER 30, 2005 ........ 0.00 $ 8.62 0.67% 1.35%(4) (0.15)% 1.20%(4)
NOVEMBER 1, 2003 TO OCTOBER 31, 2004 ............. 0.00 $ 8.27 0.40% 1.30% (0.14)% 1.16%
NOVEMBER 1, 2002 TO OCTOBER 31, 2003 ............. 0.00 $ 7.42 0.76% 1.20% (0.04)% 1.16%
NOVEMBER 1, 2001 TO OCTOBER 31, 2002 ............. 0.00 $ 6.49 0.59% 1.60% (0.46)% 1.14%
NOVEMBER 1, 2000 TO OCTOBER 31, 2001 ............. 0.00 $ 7.13 0.91% 1.00% 0.00% 1.00%
NOVEMBER 1, 1999 TO OCTOBER 31, 2000 ............. 0.00 $ 8.71 1.16% 1.00% 0.00% 1.00%
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 9.02 1.16% 1.14%(4) (0.19)% 0.95%(4)
NOVEMBER 1, 2004(8) TO SEPTEMBER 30, 2005 ........ 0.00 $ 8.64 0.83% 1.13%(4) (0.18)% 0.95%(4)
JULY 26, 2004(9) TO OCTOBER 31, 2004 ............. 0.00 $ 8.27 0.47% 1.39% (0.44)% 0.95%
INSTITUTIONAL CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 9.05 1.40% 0.87%(4) (0.17)% 0.70%(4)
NOVEMBER 1, 2004(8) TO SEPTEMBER 30, 2005 ........ 0.00 $ 8.67 1.14% 0.90%(4) (0.20)% 0.70%(4)
JULY 26, 2004(9) TO OCTOBER 31, 2004 ............. 0.00 $ 8.28 0.91% 1.22% (0.52)% 0.70%
DIVERSIFIED EQUITY FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 39.88 0.40% 1.42%(4) (0.17)% 1.25%(4)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 0.00 $ 41.90 0.69% 1.41%(4) (0.16)% 1.25%(4)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 0.00 $ 39.91 0.37% 1.37%(4) (0.12)% 1.25%(4)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 0.00 $ 35.61 0.42% 1.54%(4) (0.29)% 1.25%(4)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ 0.00 $ 29.00 0.22% 1.58%(4) (0.33)% 1.25%(4)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ 0.00 $ 36.33 0.23% 1.61%(4) (0.46)% 1.15%(4)
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 38.21 (0.36)% 2.17%(4) (0.17)% 2.00%(4)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 0.00 $ 40.38 (0.03)% 2.16%(4) (0.16)% 2.00%(4)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 0.00 $ 38.55 (0.40)% 2.12%(4) (0.12)% 2.00%(4)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 0.00 $ 34.43 (0.33)% 2.31%(4) (0.31)% 2.00%(4)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ 0.00 $ 28.15 (0.53)% 2.39%(4) (0.39)% 2.00%(4)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ 0.00 $ 35.41 (0.52)% 2.41%(4) (0.51)% 1.90%(4)
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 38.81 (0.35)% 2.17%(4) (0.17)% 2.00%(4)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 0.00 $ 40.94 (0.04)% 2.16%(4) (0.16)% 2.00%(4)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 0.00 $ 39.04 (0.38)% 2.12%(4) (0.12)% 2.00%(4)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 0.00 $ 34.90 (0.33)% 2.28%(4) (0.28)% 2.00%(4)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ 0.00 $ 28.56 (0.52)% 2.13%(4) (0.13)% 2.00%(4)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ 0.00 $ 35.91 (0.52)% 2.01%(4) (0.11)% 1.90%(4)
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 39.92 0.65% 1.24%(4) (0.24)% 1.00%(4)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 0.00 $ 41.98 0.96% 1.15%(4) (0.15)% 1.00%(4)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 0.00 $ 39.96 0.61% 1.04%(4) (0.04)% 1.00%(4)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 0.00 $ 35.64 0.67% 1.17%(4) (0.17)% 1.00%(4)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ 0.00 $ 29.04 0.47% 1.14%(4) (0.14)% 1.00%(4)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ 0.00 $ 36.38 0.38% 1.07%(4) (0.07)% 1.00%(4)
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE(3) (000'S OMITTED)
- --------------------------------------------------------------------------------------------------
C&B LARGE CAP VALUE FUND
- --------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 7.17% 15%(5) $ 52,721
NOVEMBER 1, 2004(8) TO SEPTEMBER 30, 2005 ........ 5.45% 25%(5) $ 51,719
JULY 26, 2004(9) TO OCTOBER 31, 2004 ............. 3.25% 30% $ 11,408
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 6.80% 15%(5) $ 25,104
NOVEMBER 1, 2004(8) TO SEPTEMBER 30, 2005 ........ 4.70% 25%(5) $ 24,296
JULY 26, 2004(9) TO OCTOBER 31, 2004 ............. 3.12% 30% $ 5,790
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 6.80% 15%(5) $ 14,568
NOVEMBER 1, 2004(8) TO SEPTEMBER 30, 2005 ........ 4.71% 25%(5) $ 13,075
JULY 26, 2004(9) TO OCTOBER 31, 2004 ............. 3.12% 30% $ 2,732
CLASS D
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 7.16% 15%(5) $ 158,827
NOVEMBER 1, 2004(8) TO SEPTEMBER 30, 2005 ........ 5.44% 25%(5) $ 163,464
NOVEMBER 1, 2003 TO OCTOBER 31, 2004 ............. 11.88% 30% $ 50,790
NOVEMBER 1, 2002 TO OCTOBER 31, 2003 ............. 28.34% 26% $ 20,419
NOVEMBER 1, 2001 TO OCTOBER 31, 2002 ............. (5.14)% 39% $ 14,383
NOVEMBER 1, 2000 TO OCTOBER 31, 2001 ............. 4.50% 41% $ 38,850
NOVEMBER 1, 1999 TO OCTOBER 31, 2000 ............. 10.89% 48% $ 35,251
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 7.27% 15%(5) $ 224,782
NOVEMBER 1, 2004(8) TO SEPTEMBER 30, 2005 ........ 5.74% 25%(5) $ 201,181
JULY 26, 2004(9) TO OCTOBER 31, 2004 ............. 3.37% 30% $ 9,627
INSTITUTIONAL CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 7.44% 15%(5) $ 68,224
NOVEMBER 1, 2004(8) TO SEPTEMBER 30, 2005 ........ 6.05% 25%(5) $ 63,303
JULY 26, 2004(9) TO OCTOBER 31, 2004 ............. 3.37% 30% $ 15,030
DIVERSIFIED EQUITY FUND
- --------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 7.72% 17%(6) $ 121,142
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 14.27% 42%(6) $ 118,140
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 12.82% 32%(6) $ 101,649
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 23.21% 32%(6) $ 76,292
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ (19.04)% 30%(6) $ 57,876
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ (24.07)% 34%(6) $ 74,038
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 7.31% 17%(6) $ 59,534
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 13.44% 42%(6) $ 65,245
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 11.97% 32%(6) $ 81,966
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 22.31% 32%(6) $ 92,300
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ (19.64)% 30%(6) $ 85,035
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ (24.65)% 34%(6) $ 111,956
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 7.31% 17%(6) $ 7,048
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 13.45% 42%(6) $ 7,170
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 11.92% 32%(6) $ 7,798
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 22.23% 32%(6) $ 9,463
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ (19.62)% 30%(6) $ 6,730
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ (24.64)% 34%(6) $ 7,693
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 7.84% 17%(6) $ 1,210,377
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 14.57% 42%(6) $ 1,180,748
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 13.08% 32%(6) $ 1,178,146
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 23.55% 32%(6) $ 1,152,692
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ (18.86)% 30%(6) $ 1,014,998
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ (23.95)% 34%(6) $ 1,398,810
57
WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
NET REALIZED
BEGINNING NET AND DISTRIBUTIONS DISTRIBUTIONS
NET ASSET INVESTMENT UNREALIZED FROM NET FROM NET
VALUE PER INCOME GAIN (LOSS) ON INVESTMENT REALIZED
SHARE (LOSS) INVESTMENTS INCOME GAINS
- ------------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED SMALL CAP FUND
- ------------------------------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... $ 14.97 (0.01) 2.00 0.00 (1.30)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ $ 13.41 (0.02) 2.63 0.00 (1.05)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ $ 11.32 (0.04) 2.21 0.00 (0.08)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ $ 8.70 (0.01) 2.71 0.00 (0.08)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ $ 9.18 (0.02) (0.34) 0.00 (0.12)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ $ 11.18 0.01 (1.34) (0.01) (0.66)
EQUITY INCOME FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)..... $ 36.21 0.22 0.95 (0.23) (7.03)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ $ 34.49 0.52 3.74 (0.52) (2.02)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ $ 31.32 0.45 4.59 (0.47) (1.40)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ $ 28.74 0.46 5.04 (0.46) (2.46)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ $ 37.23 0.44 (7.51) (0.43) (0.99)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ $ 41.28 0.36 (4.05) (0.36) 0.00
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)..... $ 36.23 0.11 0.93 (0.11) (7.03)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ $ 34.49 0.25 3.74 (0.23) (2.02)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ $ 31.31 0.21 4.57 (0.20) (1.40)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ $ 28.72 0.25 5.02 (0.22) (2.46)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ $ 37.18 0.16 (7.49) (0.14) (0.99)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ $ 41.22 0.05 (4.03) (0.06) 0.00
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)..... $ 37.49 0.12 0.97 (0.11) (7.03)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ $ 35.61 0.27 3.86 (0.23) (2.02)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ $ 32.26 0.22 4.70 (0.17) (1.40)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ $ 29.52 0.25 5.19 (0.24) (2.46)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ $ 38.18 0.18 (7.70) (0.15) (0.99)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ $ 42.32 0.05 (4.14) (0.05) 0.00
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)..... $ 36.17 0.28 0.93 (0.27) (7.03)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ $ 34.45 0.62 3.73 (0.61) (2.02)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ $ 31.28 0.54 4.59 (0.56) (1.40)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ $ 28.72 0.55 5.02 (0.55) (2.46)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ $ 37.21 0.54 (7.51) (0.53) (0.99)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ $ 41.27 0.46 (4.05) (0.47) 0.00
EQUITY VALUE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)..... $ 13.82 0.06 0.79 (0.08) (0.03)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ $ 11.48 0.10(7) 2.31 (0.07) 0.00
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ $ 9.82 0.05 1.62 (0.01) 0.00
AUGUST 29, 2003(9) TO SEPTEMBER 30, 2003 ......... $ 10.00 0.00 (0.18) 0.00 0.00
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)..... $ 13.69 0.00 0.78 0.00 (0.03)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ $ 11.40 0.01(7) 2.28 0.00 0.00
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ $ 9.81 0.00 1.59 0.00 0.00
AUGUST 29, 2003(9) TO SEPTEMBER 30, 2003 ......... $ 10.00 (0.01) (0.18) 0.00 0.00
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)..... $ 13.69 0.01 0.79 (0.02) (0.03)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ $ 11.40 0.01(7) 2.29 (0.01) 0.00
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ $ 9.81 0.00 1.59 0.00 0.00
AUGUST 29, 2003(9) TO SEPTEMBER 30, 2003 ......... $ 10.00 (0.01) (0.18) 0.00 0.00
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED)..... $ 13.96 0.07 0.80 (0.04) (0.03)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ $ 11.51 0.08(7) 2.38 (0.01) 0.00
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ $ 9.82 0.05 1.65 (0.01) 0.00
AUGUST 29, 2003(9) TO SEPTEMBER 30, 2003 ......... $ 10.00 0.00 (0.18) 0.00 0.00
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
58
FINANCIAL HIGHLIGHTS WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
- --------------------------------------------------------------------------------
RATIO TO AVERAGE NET ASSETS (ANNUALIZED)(1)
-------------------------------------------------
DISTRIBUTIONS ENDING NET
IN EXCESS OF NET ASSET INVESTMENT
REALIZED VALUE PER INCOME GROSS EXPENSES NET
GAINS SHARE (LOSS) EXPENSES(5) WAIVED EXPENSES(4)
- -----------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED SMALL CAP FUND
- -----------------------------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 15.66 (0.09)% 1.32% (0.12)% 1.20%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 0.00 $ 14.97 (0.17)% 1.26% (0.07)% 1.19%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 0.00 $ 13.41 (0.33)% 1.21% (0.01)% 1.20%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 0.00 $ 11.32 (0.13)% 1.27% (0.10)% 1.17%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ 0.00 $ 8.70 (0.24)% 1.38% (0.18)% 1.20%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ 0.00 $ 9.18 0.13% 1.28% (0.08)% 1.20%
EQUITY INCOME FUND
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 30.12 1.47% 1.32% (0.22)% 1.10%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 0.00 $ 36.21 1.49% 1.22% (0.12)% 1.10%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 0.00 $ 34.49 1.32% 1.18% (0.08)% 1.10%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 0.00 $ 31.32 1.57% 1.33% (0.23)% 1.10%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ 0.00 $ 28.74 1.19% 1.36% (0.26)% 1.10%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ 0.00 $ 37.23 0.86% 1.51% (0.41)% 1.10%
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 30.13 0.73% 2.06% (0.21)% 1.85%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 0.00 $ 36.23 0.76% 1.97% (0.12)% 1.85%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 0.00 $ 34.49 0.57% 1.93% (0.08)% 1.85%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 0.00 $ 31.31 0.82% 2.13% (0.28)% 1.85%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ 0.00 $ 28.72 0.43% 2.18% (0.33)% 1.85%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ 0.00 $ 37.18 0.12% 2.20% (0.35)% 1.85%
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 31.44 0.72% 2.06% (0.21)% 1.85%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 0.00 $ 37.49 0.77% 1.97% (0.12)% 1.85%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 0.00 $ 35.61 0.58% 1.93% (0.08)% 1.85%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 0.00 $ 32.26 0.82% 2.07% (0.22)% 1.85%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ 0.00 $ 29.52 0.46% 2.12% (0.27)% 1.85%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ 0.00 $ 38.18 0.14% 2.02% (0.17)% 1.85%
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 30.08 1.74% 1.13% (0.28)% 0.85%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 0.00 $ 36.17 1.75% 0.96% (0.11)% 0.85%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 0.00 $ 34.45 1.58% 0.85% (0.01)% 0.84%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 0.00 $ 31.28 1.83% 0.94% (0.09)% 0.85%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ 0.00 $ 28.72 1.44% 0.91% (0.06)% 0.85%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ 0.00 $ 37.21 1.11% 0.85% 0.00% 0.85%
EQUITY VALUE FUND
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 14.56 0.71% 1.59% (0.34)% 1.25%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 0.00 $ 13.82 0.80% 2.48% (1.23)% 1.25%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 0.00 $ 11.48 0.54% 10.90% (9.65)% 1.25%
AUGUST 29, 2003(9) TO SEPTEMBER 30, 2003 ......... 0.00 $ 9.82 (0.26)% 196.38% (195.13)% 1.25%
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 14.44 (0.04)% 2.33% (0.33)% 2.00%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 0.00 $ 13.69 0.07% 3.25% (1.25)% 2.00%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 0.00 $ 11.40 (0.19)% 11.20% (9.20)% 2.00%
AUGUST 29, 2003(9) TO SEPTEMBER 30, 2003 ......... 0.00 $ 9.81 (1.08)% 189.72% (187.72)% 2.00%
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 14.44 (0.03)% 2.32% (0.32)% 2.00%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 0.00 $ 13.69 0.06% 3.26% (1.26)% 2.00%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 0.00 $ 11.40 (0.19)% 11.11% (9.11)% 2.00%
AUGUST 29, 2003(9) TO SEPTEMBER 30, 2003 ......... 0.00 $ 9.81 (0.64)% 209.42% (207.42)% 2.00%
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 14.76 0.96% 1.40% (0.40)% 1.00%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 0.00 $ 13.96 0.67% 2.04% (1.04)% 1.00%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 0.00 $ 11.51 0.77% 9.22% (8.22)% 1.00%
AUGUST 29, 2003(9) TO SEPTEMBER 30, 2003 ......... 0.00 $ 9.82 (0.33)% 211.67% (210.67)% 1.00%
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE(3) (000'S OMITTED)
- --------------------------------------------------------------------------------------------------
DIVERSIFIED SMALL CAP FUND
- --------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 14.22% 36%(6) $ 662,266
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 20.09% 75%(6) $ 564,318
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 19.23% 75%(6) $ 441,080
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 31.32% 84%(6) $ 285,650
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ (4.17)% 93%(6) $ 192,987
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ (12.52)% 113%(6) $ 138,795
EQUITY INCOME FUND
- --------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 3.43% 3%(5) $ 173,107
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 12.74% 20%(5) $ 185,533
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 16.43% 11%(5) $ 186,501
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 20.12% 9%(5) $ 161,962
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ (19.84)% 12%(5) $ 124,015
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ (8.97)% 3%(5) $ 165,304
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 3.03% 3%(5) $ 49,193
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 11.91% 20%(5) $ 59,606
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 15.56% 11%(5) $ 80,298
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 19.22% 9%(5) $ 98,690
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ (20.43)% 12%(5) $ 91,889
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ (9.67)% 3%(5) $ 134,403
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 3.04% 3%(5) $ 5,500
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 11.90% 20%(5) $ 6,937
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 15.54% 11%(5) $ 9,083
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 19.27% 9%(5) $ 10,689
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ (20.41)% 12%(5) $ 7,415
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ (9.66)% 3%(5) $ 7,508
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 3.55% 3%(5) $ 571,449
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 13.04% 20%(5) $ 756,225
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 16.74% 11%(5) $ 853,843
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 20.42% 9%(5) $ 907,662
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ (19.64)% 12%(5) $ 902,521
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ (8.75)% 3%(5) $ 1,163,331
EQUITY VALUE FUND
- --------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 6.15% 53%(5) $ 4,274
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 21.06% 145%(5) $ 3,796
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 16.96% 122%(5) $ 1,645
AUGUST 29, 2003(9) TO SEPTEMBER 30, 2003 ......... (1.80)% 3%(5) $ 76
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 5.77% 53%(5) $ 2,417
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 20.09% 145%(5) $ 2,245
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 16.21% 122%(5) $ 1,142
AUGUST 29, 2003(9) TO SEPTEMBER 30, 2003 ......... (1.90)% 3%(5) $ 37
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 5.70% 53%(5) $ 393
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 20.20% 145%(5) $ 430
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 16.21% 122%(5) $ 295
AUGUST 29, 2003(9) TO SEPTEMBER 30, 2003 ......... (1.90)% 3%(5) $ 12
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 6.20% 53%(5) $ 67,373
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 21.40% 145%(5) $ 63,194
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 17.30% 122%(5) $ 366
AUGUST 29, 2003(9) TO SEPTEMBER 30, 2003 ......... (1.80)% 3%(5) $ 10
59
WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
NET REALIZED
BEGINNING NET AND DISTRIBUTIONS DISTRIBUTIONS
NET ASSET INVESTMENT UNREALIZED FROM NET FROM NET
VALUE PER INCOME GAIN (LOSS) ON INVESTMENT REALIZED
SHARE (LOSS) INVESTMENTS INCOME GAINS
- ------------------------------------------------------------------------------------------------------------------------------------
GROWTH EQUITY FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... $ 30.80 (0.02) 3.09 (0.00) (4.63)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ $ 27.70 0.04(7) 4.63 0.00 (1.57)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ $ 24.64 (0.08)(7) 3.14 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ $ 19.50 (0.08)(7) 5.22 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ $ 23.87 (0.10) (3.34) (0.01) (0.92)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ $ 39.89 (0.07) (9.86) 0.00 (6.09)
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... $ 28.23 (0.06) 2.75 0.00 (4.63)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ $ 25.69 (0.16)(7) 4.27 0.00 (1.57)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ $ 23.02 (0.28)(7) 2.95 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ $ 18.37 (0.23)(7) 4.88 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ $ 22.69 (0.31) (3.09) 0.00 (0.92)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ $ 38.48 (0.19) (9.51) 0.00 (6.09)
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... $ 29.32 0.94 1.87 0.00 (4.63)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ $ 26.61 (0.17)(7) 4.45 0.00 (1.57)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ $ 23.87 (0.28)(7) 3.02 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ $ 19.04 (0.25)(7) 5.08 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ $ 23.49 (0.25) (3.28) 0.00 (0.92)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ $ 39.61 (0.22) (9.81) 0.00 (6.09)
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... $ 31.17 (0.02) 3.17 (0.06) (4.63)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ $ 27.97 0.12(7) 4.68 (0.03) (1.57)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ $ 24.82 (0.01)(7) 3.16 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ $ 19.61 (0.03)(7) 5.25 (0.01) 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ $ 24.00 (0.05) (3.35) (0.07) (0.92)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ $ 39.98 (0.02) (9.87) 0.00 (6.09)
INSTITUTIONAL CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... $ 31.19 0.02 3.17 (0.12) (4.63)
APRIL 11, 2005(9) TO SEPTEMBER 30, 2005 .......... $ 28.50 0.03(7) 2.66 0.00 0.00
INTERNATIONAL VALUE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... $ 14.13 0.06 1.80 0.00 (0.05)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ $ 11.94 0.11 2.68 (0.23) (0.37)
OCTOBER 31, 2003(9) TO SEPTEMBER 30, 2004 ........ $ 10.00 0.21 1.73 0.00 0.00
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... $ 14.09 0.02 1.75 0.00 (0.05)
APRIL 11, 2005(9) TO SEPTEMBER 30, 2005 .......... $ 13.27 0.05 0.77 0.00 0.00
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... $ 14.09 0.03 1.74 0.00 (0.05)
APRIL 11, 2005(9) TO SEPTEMBER 30, 2005 .......... $ 13.27 0.05 0.77 0.00 0.00
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... $ 14.15 0.09 1.75 (0.11) (0.05)
APRIL 11, 2005(9) TO SEPTEMBER 30, 2005 .......... $ 13.27 0.18 0.70 0.00 0.00
LARGE CAP APPRECIATION FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... $ 11.54 0.00 0.88 0.00 (0.62)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ $ 9.80 0.03(7) 1.87 (0.04) (0.12)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ $ 8.92 0.00(7) 0.88 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ $ 7.53 (0.01) 1.40 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ $ 9.53 (0.01) (1.99) 0.00 0.00
AUGUST 31, 2001(9) TO SEPTEMBER 30, 2001 ......... $ 10.00 0.00 (0.47) 0.00 0.00
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... $ 11.22 0.02 0.80 0.00 (0.62)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ $ 9.57 (0.05)(7) 1.82 0.00 (0.12)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ $ 8.78 (0.21)(7) 1.00 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ $ 7.47 (0.06) 1.37 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ $ 9.52 (0.07) (1.98) 0.00 0.00
AUGUST 31, 2001(9) TO SEPTEMBER 30, 2001 ......... $ 10.00 0.00 (0.48) 0.00 0.00
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
60
FINANCIAL HIGHLIGHTS WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
- --------------------------------------------------------------------------------
RATIO TO AVERAGE NET ASSETS (ANNUALIZED)(1)
-------------------------------------------------
DISTRIBUTIONS ENDING NET
IN EXCESS OF NET ASSET INVESTMENT
REALIZED VALUE PER INCOME GROSS EXPENSES NET
GAINS SHARE (LOSS) EXPENSES(4) WAIVED EXPENSES(4)
- -----------------------------------------------------------------------------------------------------------------------------------
GROWTH EQUITY FUND
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 29.24 (0.27)% 1.60% (0.10)% 1.50%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 0.00 $ 30.80 0.15% 1.60% (0.10)% 1.50%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 0.00 $ 27.70 (0.28)% 1.60% (0.10)% 1.50%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 0.00 $ 24.64 (0.38)% 1.82% (0.32)% 1.50%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ 0.00 $ 19.50 (0.43)% 1.88% (0.41)% 1.47%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ 0.00 $ 23.87 (0.31)% 1.93% (0.43)% 1.50%
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 26.29 (1.04)% 2.34% (0.09)% 2.25%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 0.00 $ 28.23 (0.60)% 2.35% (0.10)% 2.25%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 0.00 $ 25.69 (1.08)% 2.34% (0.09)% 2.25%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 0.00 $ 23.02 (1.13)% 2.59% (0.34)% 2.25%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ 0.00 $ 18.37 (1.18)% 2.63% (0.41)% 2.22%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ 0.00 $ 22.69 (1.06)% 2.65% (0.40)% 2.25%
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 27.50 (1.01)% 2.35% (0.10)% 2.25%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 0.00 $ 29.32 (0.62)% 2.35% (0.10)% 2.25%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 0.00 $ 26.61 (1.05)% 2.34% (0.09)% 2.25%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 0.00 $ 23.87 (1.11)% 2.68% (0.43)% 2.25%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ 0.00 $ 19.04 (1.17)% 2.74% (0.52)% 2.22%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ 0.00 $ 23.49 (1.06)% 2.32% (0.07)% 2.25%
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 29.63 (0.03)% 1.42% (0.17)% 1.25%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 0.00 $ 31.17 0.42% 1.34% (0.09)% 1.25%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 0.00 $ 27.97 (0.04)% 1.27% (0.03)% 1.24%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 0.00 $ 24.82 (0.12)% 1.45% (0.20)% 1.25%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ 0.00 $ 19.61 (0.19)% 1.41% (0.19)% 1.22%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ 0.00 $ 24.00 (0.06)% 1.29% (0.04)% 1.25%
INSTITUTIONAL CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 29.63 0.18% 1.15% (0.10)% 1.05%
APRIL 11, 2005(9) TO SEPTEMBER 30, 2005 .......... 0.00 $ 31.19 0.19% 1.12% (0.07)% 1.05%
INTERNATIONAL VALUE FUND
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 15.94 1.48% 9.92% (8.42)% 1.50%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 0.00 $ 14.13 2.21% 33.96% (32.46)% 1.50%
OCTOBER 31, 2003(9) TO SEPTEMBER 30, 2004 ........ 0.00 $ 11.94 2.46% 282.28% (280.78)% 1.50%
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 15.81 0.72% 9.77% (7.52)% 2.25%
APRIL 11, 2005(9) TO SEPTEMBER 30, 2005 .......... 0.00 $ 14.09 1.66% 20.77% (18.54)% 2.23%
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 15.81 0.46% 9.17% (6.92)% 2.25%
APRIL 11, 2005(9) TO SEPTEMBER 30, 2005 .......... 0.00 $ 14.09 1.84% 20.85% (18.62)% 2.23%
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 15.83 1.57% 9.70% (8.45)% 1.25%
APRIL 11, 2005(9) TO SEPTEMBER 30, 2005 .......... 0.00 $ 14.15 3.07% 20.19% (18.94)% 1.25%
LARGE CAP APPRECIATION FUND
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 11.80 0.05% 1.44% (0.19)% 1.25%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 0.00 $ 11.54 0.27% 1.42% (0.17)% 1.25%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 0.00 $ 9.80 (0.11)% 1.42% (0.17)% 1.25%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 0.00 $ 8.92 (0.19)% 2.45% (1.24)% 1.21%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ 0.00 $ 7.53 (0.15)% 6.48% (5.28)% 1.20%
AUGUST 31, 2001(9) TO SEPTEMBER 30, 2001 ......... 0.00 $ 9.53 1.17% 1.24% (0.29)% 0.95%
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 11.42 (0.71)% 2.20% (0.20)% 2.00%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 0.00 $ 11.22 (0.51)% 2.17% (0.17)% 2.00%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 0.00 $ 9.57 (0.88)% 2.16% (0.16)% 2.00%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 0.00 $ 8.78 (0.95)% 3.11% (1.16)% 1.95%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ 0.00 $ 7.47 (0.90)% 8.45% (6.50)% 1.95%
AUGUST 31, 2001(9) TO SEPTEMBER 30, 2001 ......... 0.00 $ 9.52 (0.24)% 1.78% 0.00% 1.78%
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE(3) (000'S OMITTED)
- --------------------------------------------------------------------------------------------------
GROWTH EQUITY FUND
- --------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 10.91% 21%(6) $ 25,311
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 17.27% 50%(6) $ 22,769
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 12.38% 44%(6) $ 18,742
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 26.36% 58%(6) $ 15,576
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ (15.46)% 40%(6) $ 11,210
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ (28.93)% 75%(6) $ 12,473
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 10.55% 21%(6) $ 8,367
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 16.40% 50%(6) $ 8,811
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 11.60% 44%(6) $ 11,700
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 25.31% 58%(6) $ 14,379
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ (16.09)% 40%(6) $ 13,670
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ (29.46)% 75%(6) $ 17,319
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 10.53% 21%(6) $ 1,106
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 16.47% 50%(6) $ 844
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 11.52% 44%(6) $ 1,097
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 25.37% 58%(6) $ 2,980
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ (16.10)% 40%(6) $ 1,721
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ (29.46)% 75%(6) $ 1,799
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 11.05% 21%(6) $ 430,877
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 17.60% 50%(6) $ 396,865
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 12.69% 44%(6) $ 493,899
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 26.62% 58%(6) $ 450,480
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ (15.25)% 40%(6) $ 363,946
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ (28.74)% 75%(6) $ 476,031
INSTITUTIONAL CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 11.19% 21%(6) $ 147,057
APRIL 11, 2005(9) TO SEPTEMBER 30, 2005 .......... 9.44% 50%(6) $ 131,489
INTERNATIONAL VALUE FUND
- --------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 13.10% 9%(5) $ 1,092
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 24.00% 14%(5) $ 493
OCTOBER 31, 2003(9) TO SEPTEMBER 30, 2004 ........ 19.40% 24%(5) $ 23
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 12.66% 9%(5) $ 575
APRIL 11, 2005(9) TO SEPTEMBER 30, 2005 .......... 6.18% 14%(5) $ 184
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 12.66% 9%(5) $ 86
APRIL 11, 2005(9) TO SEPTEMBER 30, 2005 .......... 6.18% 14%(5) $ 59
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 13.12% 9%(5) $ 270
APRIL 11, 2005(9) TO SEPTEMBER 30, 2005 .......... 6.63% 14%(5) $ 207
LARGE CAP APPRECIATION FUND
- --------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 7.91% 80%(5) $ 36,687
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 19.52% 133%(5) $ 32,048
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 9.87% 149%(5) $ 20,393
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 18.46% 153%(5) $ 1,033
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ (20.99)% 123%(5) $ 898
AUGUST 31, 2001(9) TO SEPTEMBER 30, 2001 ......... (4.70)% 10%(5) $ 41
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 7.59% 80%(5) $ 3,770
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 18.60% 133%(5) $ 2,732
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 9.00% 149%(5) $ 1,509
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 17.54% 153%(5) $ 1,449
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ (21.53)% 123%(5) $ 1,041
AUGUST 31, 2001(9) TO SEPTEMBER 30, 2001 ......... (4.80)% 10%(5) $ 91
61
WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
NET REALIZED
BEGINNING NET AND DISTRIBUTIONS DISTRIBUTIONS
NET ASSET INVESTMENT UNREALIZED FROM NET FROM NET
VALUE PER INCOME GAIN (LOSS) ON INVESTMENT REALIZED
SHARE (LOSS) INVESTMENTS INCOME GAINS
- ------------------------------------------------------------------------------------------------------------------------------------
LARGE CAP APPRECIATION FUND (CONTINUED)
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... $ 11.23 (0.02) 0.83 0.00 (0.62)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ $ 9.58 (0.05)(7) 1.82 0.00 (0.12)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ $ 8.79 (0.15)(7) 0.94 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ $ 7.47 (0.03) 1.35 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ $ 9.53 (0.05) (2.01) 0.00 0.00
AUGUST 31, 2001(9)TO SEPTEMBER 30, 2001 .......... $ 10.00 0.00 (0.47) 0.00 0.00
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... $ 11.64 0.22 0.90 (0.24) (0.62)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ $ 9.87 0.06(7) 1.87 (0.04) (0.12)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ $ 8.96 0.02(7) 0.89 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ $ 7.55 0.00 1.41 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ $ 9.53 0.00 (1.98) 0.00 0.00
AUGUST 31, 2001(9) TO SEPTEMBER 30, 2001 ......... $ 10.00 0.01 (0.48) 0.00 0.00
LARGE COMPANY GROWTH FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... $ 49.67 (0.11) 2.93 (0.07) 0.00
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ $ 44.97 0.06(7) 4.64 0.00 0.00
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ $ 43.96 (0.28)(7) 1.29 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ $ 34.52 (0.46) 9.90 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ $ 44.57 (0.34) (9.71) 0.00 0.00
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ $ 75.03 (0.37) (29.21) 0.00 (0.84)
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... $ 44.64 (1.54) 3.90 0.00 0.00
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ $ 40.72 (0.23)(7) 4.15 0.00 0.00
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ $ 40.11 (0.58)(7) 1.19 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ $ 31.72 (0.68) 9.07 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ $ 41.18 (0.69) (8.77) 0.00 0.00
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ $ 69.77 (0.62) (27.09) 0.00 (0.84)
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... $ 44.72 (0.34) 2.71 0.00 0.00
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ $ 40.80 (0.20)(7) 4.12 0.00 0.00
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ $ 40.18 (0.58)(7) 1.20 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ $ 31.76 (0.62) 9.04 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ $ 41.22 (0.89) (8.57) 0.00 0.00
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ $ 69.85 (0.43) (27.32) 0.00 (0.84)
CLASS Z
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... $ 47.14 (0.30) 2.81 0.00 0.00
APRIL 11, 2005(9) TO SEPTEMBER 30, 2005 .......... $ 42.80 (0.17)(7) 4.51 0.00 0.00
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... $ 47.24 0.01 2.74 (0.11) 0.00
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ $ 42.73 0.21(7) 4.37 (0.07) 0.00
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ $ 41.67 (0.16)(7) 1.22 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ $ 32.65 (0.16) 9.18 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ $ 42.06 (0.21) (9.20) 0.00 0.00
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ $ 70.71 (0.24) (27.53) 0.00 (0.84)
INSTITUTIONAL CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... $ 47.27 (0.00) 2.81 (0.15) 0.00
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ $ 42.75 0.24(7) 4.44 (0.16) 0.00
JUNE 30, 2004(9) TO SEPTEMBER 30, 2004 ........... $ 44.93 (0.02)(7) (2.16) 0.00 0.00
SMALL COMPANY GROWTH FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... $ 30.87 (0.34) 5.64 0.00 (2.31)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ $ 26.78 (0.29)(7) 4.55 0.00 (0.17)
JANUARY 30, 2004(9) TO SEPTEMBER 30, 2004 ........ $ 28.42 (0.21)(7) (1.43) 0.00 0.00
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... $ 30.51 (0.21) 5.31 0.00 (2.31)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ $ 26.66 (0.50)(7) 4.52 0.00 (0.17)
JANUARY 30, 2004(9) TO SEPTEMBER 30, 2004 ........ $ 28.42 (0.34)(7) (1.42) 0.00 0.00
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
62
FINANCIAL HIGHLIGHTS WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
- --------------------------------------------------------------------------------
RATIO TO AVERAGE NET ASSETS (ANNUALIZED)(1)
-----------------------------------------------
DISTRIBUTIONS ENDING NET
IN EXCESS OF NET ASSET INVESTMENT
REALIZED VALUE PER INCOME GROSS EXPENSES NET
GAINS SHARE (LOSS) EXPENSES(4) WAIVED EXPENSES(4)
- ---------------------------------------------------------------------------------------------------------------------------------
LARGE CAP APPRECIATION FUND (CONTINUED)
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 11.42 (0.70)% 2.19% (0.19)% 2.00%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 0.00 $ 11.23 (0.44)% 2.17% (0.17)% 2.00%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 0.00 $ 9.58 (0.88)% 2.16% (0.16)% 2.00%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 0.00 $ 8.79 (0.94)% 3.96% (2.01)% 1.95%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ 0.00 $ 7.47 (0.93)% 8.37% (6.42)% 1.95%
AUGUST 31, 2001(9)TO SEPTEMBER 30, 2001 .......... 0.00 $ 9.53 0.00% 1.83% 0.00% 1.83%
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 11.90 0.29% 1.25% (0.25)% 1.00%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 0.00 $ 11.64 0.56% 1.16% (0.16)% 1.00%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 0.00 $ 9.87 0.12% 1.08% (0.08)% 1.00%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 0.00 $ 8.96 (0.06)% 1.61% (0.66)% 0.95%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ 0.00 $ 7.55 0.05% 5.81% (4.86)% 0.95%
AUGUST 31, 2001(9) TO SEPTEMBER 30, 2001 ......... 0.00 $ 9.53 1.00% 0.86% 0.00% 0.86%
LARGE COMPANY GROWTH FUND
- ---------------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 52.42 (0.42)% 1.22% (0.02)% 1.20%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 0.00 $ 49.67 0.12% 1.27% (0.07)% 1.20%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 0.00 $ 44.97 (0.61)% 1.28% (0.08)% 1.20%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 0.00 $ 43.96 (0.69)% 1.41% (0.21)% 1.20%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ 0.00 $ 34.52 (0.76)% 1.45% (0.25)% 1.20%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ (0.04) $ 44.57 (0.71)% 1.36% (0.16)% 1.20%
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 47.00 (1.19)% 1.97% (0.02)% 1.95%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 0.00 $ 44.64 (0.53)% 2.02% (0.07)% 1.95%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 0.00 $ 40.72 (1.36)% 2.03% (0.08)% 1.95%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 0.00 $ 40.11 (1.35)% 2.33% (0.45)% 1.88%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ 0.00 $ 31.72 (1.31)% 2.46% (0.71)% 1.75%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ (0.04) $ 41.18 (1.26)% 2.19% (0.44)% 1.75%
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 47.09 (1.18)% 1.96% (0.01)% 1.95%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 0.00 $ 44.72 (0.46)% 2.02% (0.07)% 1.95%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 0.00 $ 40.80 (1.36)% 2.03% (0.08)% 1.95%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 0.00 $ 40.18 (1.34)% 2.16% (0.30)% 1.86%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ 0.00 $ 31.76 (1.31)% 2.28% (0.53)% 1.75%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ (0.04) $ 41.22 (1.26)% 2.15% (0.40)% 1.75%
CLASS Z
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 49.65 (0.60)% 1.39% (0.02)% 1.37%
APRIL 11, 2005(9) TO SEPTEMBER 30, 2005 .......... 0.00 $ 47.14 (0.77)% 1.43% (0.06)% 1.37%
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 49.88 (0.18)% 1.04% (0.09)% 0.95%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 0.00 $ 47.24 0.46% 1.01% (0.06)% 0.95%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 0.00 $ 42.73 (0.35)% 0.95% (0.01)% 0.94%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 0.00 $ 41.67 (0.44)% 1.05% (0.09)% 0.96%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ 0.00 $ 32.65 (0.56)% 1.03% (0.03)% 1.00%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ (0.04) $ 42.06 (0.48)% 0.97% 0.00% 0.97%
INSTITUTIONAL CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 49.93 0.03% 0.77% (0.02)% 0.75%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 0.00 $ 47.27 0.53% 0.82% (0.07)% 0.75%
JUNE 30, 2004(9) TO SEPTEMBER 30, 2004 ........... 0.00 $ 42.75 (0.04)% 0.85% (0.10)% 0.75%
SMALL COMPANY GROWTH FUND
- ---------------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 33.86 (0.80)% 1.55% (0.10)% 1.45%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 0.00 $ 30.87 (1.00)% 1.54% (0.09)% 1.45%
JANUARY 30, 2004(9) TO SEPTEMBER 30, 2004 ........ 0.00 $ 26.78 (0.80)% 1.55% (0.10)% 1.45%
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 33.30 (1.53)% 2.29% (0.09)% 2.20%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 0.00 $ 30.51 (1.75)% 2.29% (0.09)% 2.20%
JANUARY 30, 2004(9) TO SEPTEMBER 30, 2004 ........ 0.00 $ 26.66 (1.29)% 2.29% (0.09)% 2.20%
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE(3) (000'S OMITTED)
- --------------------------------------------------------------------------------------------------
LARGE CAP APPRECIATION FUND (CONTINUED)
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 7.49% 80%(5) $ 899
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 18.58% 133%(5) $ 771
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 8.99% 149%(5) $ 669
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 17.67% 153%(5) $ 499
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ (21.62)% 123%(5) $ 200
AUGUST 31, 2001(9)TO SEPTEMBER 30, 2001 .......... (4.70)% 10%(5) $ 26
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 8.06% 80%(5) $ 20,280
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 19.70% 133%(5) $ 18,060
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 10.16% 149%(5) $ 14,830
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 18.68% 153%(5) $ 16,905
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ (20.78)% 123%(5) $ 4,155
AUGUST 31, 2001(9) TO SEPTEMBER 30, 2001 ......... (4.70)% 10%(5) $ 10
LARGE COMPANY GROWTH FUND
- --------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 5.67% 3%(5) $ 543,496
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 10.45% 18%(5) $ 524,323
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 2.28% 14%(5) $ 454,499
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 27.35% 13%(5) $ 364,406
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ (22.55)% 18%(5) $ 141,774
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ (39.85)% 13%(5) $ 202,514
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 5.29% 3%(5) $ 149,824
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 9.63% 18%(5) $ 187,895
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 1.52% 14%(5) $ 220,657
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 26.45% 13%(5) $ 246,894
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ (22.97)% 18%(5) $ 218,625
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ (40.18)% 13%(5) $ 307,706
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 5.30% 3%(5) $ 17,892
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 9.61% 18%(5) $ 21,211
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 1.54% 14%(5) $ 31,937
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 26.51% 13%(5) $ 40,436
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ (22.95)% 18%(5) $ 27,092
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ (40.19)% 13%(5) $ 27,189
CLASS Z
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 5.60% 3%(5) $ 121,366
APRIL 11, 2005(9) TO SEPTEMBER 30, 2005 .......... 10.14% 18%(5) $ 124,645
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 5.81% 3%(5) $ 1,695,372
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 10.73% 18%(5) $ 1,850,677
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 2.57% 14%(5) $ 1,975,616
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 27.60% 13%(5) $ 1,761,429
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ (22.37)% 18%(5) $ 1,038,491
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ (39.73)% 13%(5) $ 1,066,607
INSTITUTIONAL CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 5.94% 3%(5) $ 113,690
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 10.96% 18%(5) $ 104,469
JUNE 30, 2004(9) TO SEPTEMBER 30, 2004 ........... (4.85)% 14%(5) $ 52,884
SMALL COMPANY GROWTH FUND
- --------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 18.29% 67%(5) $ 6,517
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 15.95% 142%(5) $ 2,317
JANUARY 30, 2004(9) TO SEPTEMBER 30, 2004 ........ (5.77)% 145%(5) $ 832
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 17.83% 67%(5) $ 884
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 15.12% 142%(5) $ 554
JANUARY 30, 2004(9) TO SEPTEMBER 30, 2004 ........ (6.19)% 145%(5) $ 144
63
WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
NET REALIZED
BEGINNING NET AND DISTRIBUTIONS DISTRIBUTIONS
NET ASSET INVESTMENT UNREALIZED FROM NET FROM NET
VALUE PER INCOME GAIN (LOSS) ON INVESTMENT REALIZED
SHARE (LOSS) INVESTMENTS INCOME GAINS
- ------------------------------------------------------------------------------------------------------------------------------------
SMALL COMPANY GROWTH FUND (CONTINUED)
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... $ 30.69 (0.22) 5.36 0.00 (2.31)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ $ 26.82 (0.50)(7) 4.54 0.00 (0.17)
JANUARY 30, 2004(9) TO SEPTEMBER 30, 2004 ........ $ 28.42 (0.34)(7) (1.26) 0.00 0.00
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... $ 31.01 (0.07) 5.44 0.00 (2.31)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ $ 26.83 (0.21)(7) 4.56 0.00 (0.17)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ $ 23.87 (0.26)(7) 3.22 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ $ 17.35 (0.13) 6.65 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ $ 21.73 (0.16) (4.22) 0.00 0.00
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ $ 36.22 (0.10) (7.26) 0.00 (7.13)
SMALL COMPANY VALUE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... $ 15.95 0.01 1.72 (0.01) (1.32)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ $ 13.66 0.00 3.17 0.00 (0.88)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ $ 11.56 (0.01) 1.63 0.00 0.48
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ $ 8.43 0.00 3.13 0.00 0.00
JANUARY 31, 2002(9) TO SEPTEMBER 30, 2002 ........ $ 10.00 0.00 (1.57) 0.00 0.00
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... $ 15.48 (0.04) 1.65 0.00 (1.32)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ $ 13.38 (0.07) 3.05 0.00 (0.88)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ $ 11.41 (0.08) 1.57 0.00 0.48
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ $ 8.38 (0.06) 3.09 0.00 0.00
JANUARY 31, 2002(9) TO SEPTEMBER 30, 2002 ........ $ 10.00 (0.03) (1.59) 0.00 0.00
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... $ 15.48 (0.04) 1.65 0.00 (1.32)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ $ 13.37 (0.04) 3.03 0.00 (0.88)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ $ 11.41 (0.08) 1.56 0.00 0.48
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ $ 8.38 (0.04) 3.07 0.00 0.00
AUGUST 30, 2002(9) TO SEPTEMBER 30, 2002 ......... $ 9.05 0.00 (0.67) 0.00 0.00
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... $ 16.08 (0.01) 1.76 (0.03) (1.32)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ $ 13.74 0.02 3.20 0.00 (0.88)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ $ 11.60 0.01 1.65 0.00 0.48
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ $ 8.44 0.01 3.15 0.00 0.00
JANUARY 31, 2002(9) TO SEPTEMBER 30, 2002 ........ $ 10.00 0.01 (1.57) 0.00 0.00
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
64
FINANCIAL HIGHLIGHTS WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
- --------------------------------------------------------------------------------
RATIO TO AVERAGE NET ASSETS (ANNUALIZED)(1)
------------------------------------------------
DISTRIBUTIONS ENDING NET
IN EXCESS OF NET ASSET INVESTMENT
REALIZED VALUE PER INCOME GROSS EXPENSES NET
GAINS SHARE (LOSS) EXPENSES(4) WAIVED EXPENSES(4)
- ----------------------------------------------------------------------------------------------------------------------------------
SMALL COMPANY GROWTH FUND (CONTINUED)
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 33.52 (1.53)% 2.29% (0.09)% 2.20%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 0.00 $ 30.69 (1.73)% 2.29% (0.09)% 2.20%
JANUARY 30, 2004(9) TO SEPTEMBER 30, 2004 ........ 0.00 $ 26.82 (1.29)% 2.27% (0.07)% 2.20%
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 34.07 (0.52)% 1.35% (0.15)% 1.20%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 0.00 $ 31.01 (0.74)% 1.31% (0.11)% 1.20%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 0.00 $ 26.83 (0.97)% 1.25% (0.05)% 1.20%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 0.00 $ 23.87 (0.65)% 1.34% (0.13)% 1.21%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ 0.00 $ 17.35 (0.68)% 1.25% (0.03)% 1.22%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ 0.00 $ 21.73 (0.44)% 1.21% 0.00% 1.21%
SMALL COMPANY VALUE FUND
- ----------------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 16.35 0.06% 1.43% (0.05)% 1.38%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 0.00 $ 15.95 0.10% 1.44% (0.09)% 1.35%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 0.00 $ 13.66 (0.06)% 1.58% (0.13)% 1.45%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 0.00 $ 11.56 0.06% 1.43% 0.00% 1.43%
JANUARY 31, 2002(9) TO SEPTEMBER 30, 2002 ........ 0.00 $ 8.43 0.00% 2.32% (0.94)% 1.38%
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 15.77 (0.70)% 2.17% (0.05)% 2.12%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 0.00 $ 15.48 (0.70)% 2.21% (0.09)% 2.12%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 0.00 $ 13.38 (0.85)% 2.36% (0.16)% 2.20%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 0.00 $ 11.41 (0.67)% 2.18% 0.00% 2.18%
JANUARY 31, 2002(9) TO SEPTEMBER 30, 2002 ........ 0.00 $ 8.38 (0.74)% 3.46% (1.32)% 2.14%
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 15.77 (0.70)% 2.17% (0.04)% 2.13%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 0.00 $ 15.48 (0.67)% 2.20% (0.09)% 2.11%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 0.00 $ 13.37 (0.84)% 2.35% (0.15)% 2.20%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 0.00 $ 11.41 (0.80)% 2.18% 0.00% 2.18%
AUGUST 30, 2002(9) TO SEPTEMBER 30, 2002 ......... 0.00 $ 8.38 0.68% 7.48% (5.28)% 2.20%
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 0.00 $ 16.48 0.27% 1.29% (0.09)% 1.20%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 0.00 $ 16.08 0.33% 1.22% (0.10)% 1.12%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 0.00 $ 13.74 0.15% 1.38% (0.18)% 1.20%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 0.00 $ 11.60 0.21% 1.21% 0.00% 1.21%
JANUARY 31, 2002(9) TO SEPTEMBER 30, 2002 ........ 0.00 $ 8.44 0.34% 3.58% (2.35)% 1.23%
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE(3) (000'S OMITTED)
- --------------------------------------------------------------------------------------------------
SMALL COMPANY GROWTH FUND (CONTINUED)
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 17.82% 67%(5) $ 175
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 15.10% 142%(5) $ 77
JANUARY 30, 2004(9) TO SEPTEMBER 30, 2004 ........ (5.59)% 145%(5) $ 28
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 18.44% 67%(5) $ 618,766
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 16.26% 142%(5) $ 523,190
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 12.40% 145%(5) $ 486,285
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 37.58% 163%(5) $ 432,328
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ (20.16)% 169%(5) $ 329,964
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ (23.33)% 206%(5) $ 431,695
SMALL COMPANY VALUE FUND
- --------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 11.59% 58%(5) $ 91,808
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 23.97% 70%(5) $ 72,680
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 22.75% 64%(5) $ 31,068
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 37.20% 80%(5) $ 8,783
JANUARY 31, 2002(9) TO SEPTEMBER 30, 2002 ........ (15.70)% 98%(5) $ 4,276
CLASS B
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 11.08% 58%(5) $ 16,757
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 23.01% 70%(5) $ 15,802
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 21.89% 64%(5) $ 11,571
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 36.23% 80%(5) $ 7,520
JANUARY 31, 2002(9) TO SEPTEMBER 30, 2002 ........ (16.20)% 98%(5) $ 4,860
CLASS C
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 11.09% 58%(5) $ 5,498
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 23.11% 70%(5) $ 4,847
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 21.80% 64%(5) $ 2,769
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 36.23% 80%(5) $ 1,497
AUGUST 30, 2002(9) TO SEPTEMBER 30, 2002 ......... (7.40)% 98%(5) $ 59
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 11.68% 58%(5) $ 270,939
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 24.21% 70%(5) $ 140,337
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 23.05% 64%(5) $ 59,797
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 37.51% 80%(5) $ 33,583
JANUARY 31, 2002(9) TO SEPTEMBER 30, 2002 ........ (15.60)% 98%(5) $ 5,465
65
WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS NOTES TO FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(1) During each period, various fees and expenses were waived and reimbursed
as indicated. The ratio of Gross Expenses to Average Net Assets reflects
the expense ratio in the absence of any waivers and reimbursements (Note
3).
(2) Total return calculations do not include any sales charges, and would have
been lower had certain expenses not been waived or reimbursed during the
periods shown. Returns for periods of less than one year are not
annualized.
(3) Calculated on the basis of the Fund as a whole without distinguishing
between the classes of shares issued.
(4) Includes net expenses allocated from Portfolio(s) in which the Fund
invests.
(5) Portfolio turnover rate represents the activity from the Fund's investment
in a single Portfolio.
(6) Portfolio turnover rate is calculated by aggregating the results of
multiplying the Fund's investment percentage in the respective Portfolio
by the corresponding Portfolio's portfolio turnover rate.
(7) Calculated based upon average shares outstanding.
(8) The Fund changed its year end from October 31 to September 30.
(9) Commencement of operations.
66
NOTES TO FINANCIAL STATEMENTS WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
- --------------------------------------------------------------------------------
1. ORGANIZATION
- --------------------------------------------------------------------------------
Wells Fargo Funds Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end management
investment company. The Trust commenced operations on November 8, 1999, and at
March 31, 2006, was comprised of 108 separate series (each, a "Fund",
collectively, the "Funds"). These financial statements present the C&B Large Cap
Value Fund, Diversified Equity Fund, Diversified Small Cap Fund, Equity Income
Fund, Equity Value Fund, Growth Equity Fund, International Value Fund, Large Cap
Appreciation Fund, Large Company Growth Fund, Small Company Growth Fund, and
Small Company Value Fund.
In August and September 2004, the Board of Trustees of the Trust and the
Boards of Directors of the Strong Funds ("Strong Funds") approved an Agreement
and Plan of Reorganization providing for the reorganization of certain Strong
Funds into the Funds.
Effective at the close of business on April 8, 2005, the following
Acquiring Funds ("Acquiring Funds") acquired substantially all of the net assets
of the following Target Funds ("Target Funds") through a tax-free exchange under
section 368 of the Internal Revenue Code. The following is a summary of shares
outstanding and net assets immediately before and after the reorganization:
After
Before Reorganization Reorganization
------------------------------------------------------------------ ---------------
Target Funds Acquiring Fund
- -----------------------------------------------------------------------------------------------------------------------------------
WELLS FARGO WELLS FARGO
STRONG STRONG LARGE ADVANTAGE
ADVISOR BLUE WELLS FARGO COMPANY LARGE COMPANY
FUND FOCUS FUND CHIP FUND GROWTH FUND GROWTH FUND* GROWTH FUND
- -----------------------------------------------------------------------------------------------------------------------------------
SHARES:
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A 113,416 0 9,614,528 9,136,049 11,741,584
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS B(1) 148,305 0 600,938 4,721,058 4,841,404
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS C(1) 21,133 0 0 592,034 592,034
- -----------------------------------------------------------------------------------------------------------------------------------
SELECT CLASS(4) 0 0 0 1,055,462 0
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS Z 0 0 0 0 2,963,752
- -----------------------------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS 0 0 0 0 43,483,684
- -----------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS(2) 0 0 2,099,734 42,786,098 1,055,462
- -----------------------------------------------------------------------------------------------------------------------------------
INVESTOR CLASS(3) 0 11,122,341 0 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A $ 724,634 $ 0 $ 115,605,061 $ 411,571,874 $ 528,949,205
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS B(1) 915,446 0 4,890,229 191,839,332 196,729,561
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS C(1) 132,190 0 0 24,102,082 24,102,082
- -----------------------------------------------------------------------------------------------------------------------------------
SELECT CLASS(4) 0 0 0 45,157,984 0
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS Z 0 0 0 0 126,842,039
- -----------------------------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS 0 0 0 0 1,861,005,652
- -----------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS(2) 0 0 29,855,154 1,831,150,498 45,157,984
- -----------------------------------------------------------------------------------------------------------------------------------
INVESTOR CLASS(3) 0 126,842,039 0 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
UNREALIZED APPRECIATION (DEPRECIATION) $ (6,664) $ (6,153,196) $ 21,387,228 $ 76,720,601 $ 91,947,969
- -----------------------------------------------------------------------------------------------------------------------------------
ACCUMULATED NET REALIZED LOSSES $ (3,571,103) $ (140,063,161) $ (51,572,336) $ (411,601,756) $ (606,808,356)
- -----------------------------------------------------------------------------------------------------------------------------------
* DESIGNATES THE ACCOUNTING SURVIVOR.
(1) EFFECTIVE AT THE CLOSE OF BUSINESS ON APRIL 8, 2005, CLASS B AND CLASS
C OF THE STRONG ADVISOR FOCUS FUND MERGED INTO CLASS A OF THE WELLS FARGO
ADVANTAGE LARGE COMPANY GROWTH FUND.
(2) EFFECTIVE AT THE CLOSE OF BUSINESS ON APRIL 8, 2005, INSTITUTIONAL
CLASS OF THE WELLS FARGO GROWTH FUND MERGED INTO ADMINISTRATOR CLASS OF THE
WELLS FARGO ADVANTAGE LARGE COMPANY GROWTH FUND (PREVIOUSLY NAMED INSTITUTIONAL
CLASS OF THE WELLS FARGO LARGE COMPANY GROWTH FUND).
(3) EFFECTIVE AT THE CLOSE OF BUSINESS ON APRIL 8, 2005, INVESTOR CLASS OF
THE STRONG BLUE CHIP FUND MERGED INTO CLASS Z OF THE WELLS FARGO ADVANTAGE LARGE
COMPANY GROWTH FUND.
(4) EFFECTIVE AT THE CLOSE OF BUSINESS ON APRIL 8, 2005, SELECT CLASS OF
THE WELLS FARGO LARGE COMPANY GROWTH FUND WAS RENAMED INSTITUTIONAL CLASS OF THE
WELLS FARGO ADVANTAGE LARGE COMPANY GROWTH FUND.
67
WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
Before Reorganization After Reorganization
- ----------------------------------------------------------------------------------------------- --------------------
Target Fund Acquiring Fund
- -----------------------------------------------------------------------------------------------------------------------
WELLS FARGO
STRONG ADVISOR UTILITIES WELLS FARGO ADVANTAGE EQUITY
FUND & ENERGY FUND EQUITY INCOME FUND* INCOME FUND
- -----------------------------------------------------------------------------------------------------------------------
SHARES:
- -----------------------------------------------------------------------------------------------------------------------
CLASS A 183,668 5,439,667 5,494,907
- -----------------------------------------------------------------------------------------------------------------------
CLASS B 29,573 2,010,652 2,019,423
- -----------------------------------------------------------------------------------------------------------------------
CLASS C 16,639 210,962 215,721
- -----------------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS 0 0 23,161,747
- -----------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS(1) 0 23,161,747 0
- -----------------------------------------------------------------------------------------------------------------------
NET ASSETS:
- -----------------------------------------------------------------------------------------------------------------------
CLASS A $ 1,933,655 $ 190,411,338 $ 192,344,993
- -----------------------------------------------------------------------------------------------------------------------
CLASS B 306,937 70,367,923 70,674,860
- -----------------------------------------------------------------------------------------------------------------------
CLASS C 172,341 7,640,254 7,812,595
- -----------------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS 0 0 809,702,767
- -----------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS(1) 0 809,702,767 0
- -----------------------------------------------------------------------------------------------------------------------
UNREALIZED APPRECIATION (DEPRECIATION) $ 164,280 $ (58,517,831) $ (58,353,551)
- -----------------------------------------------------------------------------------------------------------------------
ACCUMULATED NET REALIZED GAINS (LOSSES) $ 439,215 $ 185,240,718 $ 185,679,933
- -----------------------------------------------------------------------------------------------------------------------
* DESIGNATES THE ACCOUNTING SURVIVOR.
(1) EFFECTIVE AT THE CLOSE OF BUSINESS ON APRIL 8, 2005, INSTITUTIONAL
CLASS OF THE WELLS FARGO EQUITY INCOME FUND WAS RENAMED ADMINISTRATOR CLASS OF
THE WELLS FARGO ADVANTAGE EQUITY INCOME FUND.
On February 3, 2004, the Board of Trustees of the Trust and on February
18, 2004, the Boards of Trustees of The Cooke & Bieler Funds approved an
Agreement and Plan of Reorganization of the Cooke & Bieler Portfolios (C&B
Portfolios) into the Funds as defined above. Effective at the close of business
on July 23, 2004, the Wells Fargo C&B Large Cap Value Fund acquired all of the
net assets of the C&B Large Cap Value Portfolio.
Effective April 11, 2005, the Wells Fargo Funds changed its name to WELLS
FARGO ADVANTAGE FUNDS. Also at this time, the Institutional Class changed its
name to Administrator Class and the Select Class changed its name to
Institutional Class.
Effective April 11, 2005, the Wells Fargo Overseas Fund changed its name
to the Wells Fargo Advantage International Value Fund, and the Wells Fargo Large
Cap Value Fund changed its name to the Wells Fargo Advantage Equity Value Fund.
Also, effective April 11, 2005, the Institutional Class of the Growth Equity
Fund and Class B, Class C, and Administrator Class shares of the International
Value Fund commenced operations.
The separate classes of shares offered by each Fund differ principally in
applicable sales charges and distribution, shareholder servicing and
administration fees. Shareholders of each class bear certain expenses that
pertain to that particular class. All shareholders bear the common expenses of a
Fund, earn income from the portfolio, and are allocated unrealized gains and
losses pro rata based on the average daily net assets of each class, without
distinction between share classes. Dividends are determined separately for each
class based on income and expenses allocable to each class. Realized gains and
losses are allocated to each class pro rata based upon the net assets of each
class on the date realized. Differences in per share dividend rates generally
result from the relative weightings of pro rata income and realized gain
allocations and from differences in separate class expenses, including
distribution, shareholder servicing, and administration fees.
The C&B Large Cap Value Fund, Diversified Equity Fund, Diversified Small
Cap Fund, Equity Income Fund, Equity Value Fund, Growth Equity Fund,
International Value Fund, Large Cap Appreciation Fund, Large Company Growth
Fund, Small Company Growth Fund, and Small Company Value Fund each seek to
achieve its investment objective by investing all investable assets in one or
more separate diversified portfolios (each, a "Master Portfolio", collectively,
the "Master Portfolios") of Wells Fargo Master Trust, a registered open-end
management investment company. Each Master Portfolio directly acquires portfolio
securities, and a Fund investing in a Master Portfolio acquires an indirect
interest in those securities. Each Fund accounts for its investment in the
Master Portfolios as partnership investments and records daily its share of the
Master Portfolio's income, expenses, and realized and unrealized gains and
losses. The financial statements of the Master Portfolios are in this report and
should be read in conjunction with each Fund's financial statements. The
ownership percentages of each Master Portfolio by the C&B Large Cap Value Fund,
Diversified Equity Fund, Diversified Small Cap Fund, Equity Income Fund, Equity
Value Fund, Growth Equity Fund, International Value Fund, Large Cap Appreciation
Fund, Large Company Growth Fund, Small Company Growth Fund, and Small Company
Value Fund are as follows:
68
NOTES TO FINANCIAL STATEMENTS WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
- --------------------------------------------------------------------------------
Diversified Equity
C&B Large Diversified Small Income Equity Growth
Cap Value Fund Equity Fund Cap Fund Fund Value Fund Equity Fund
- --------------------------------------------------------------------------------------------------------------------------
C&B LARGE CAP VALUE PORTFOLIO 67% 14% N/A N/A N/A N/A
- --------------------------------------------------------------------------------------------------------------------------
DISCIPLINED GROWTH PORTFOLIO N/A 37% N/A N/A N/A 16%
- --------------------------------------------------------------------------------------------------------------------------
EQUITY INCOME PORTFOLIO N/A 11% N/A 75% N/A N/A
- --------------------------------------------------------------------------------------------------------------------------
EQUITY VALUE PORTFOLIO N/A 25% N/A N/A 16% N/A
- --------------------------------------------------------------------------------------------------------------------------
INDEX PORTFOLIO N/A 15% N/A N/A N/A N/A
- --------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL CORE PORTFOLIO N/A 32% N/A N/A N/A 28%
- --------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL GROWTH PORTFOLIO N/A 19% N/A N/A N/A 17%
- --------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO N/A 32% N/A N/A N/A 28%
- --------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL VALUE PORTFOLIO N/A 31% N/A N/A N/A 28%
- --------------------------------------------------------------------------------------------------------------------------
LARGE CAP APPRECIATION PORTFOLIO N/A 25% N/A N/A N/A N/A
- --------------------------------------------------------------------------------------------------------------------------
LARGE COMPANY GROWTH PORTFOLIO N/A 7% N/A N/A N/A 5%
- --------------------------------------------------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO N/A 12% 55% N/A N/A 18%
- --------------------------------------------------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO N/A 5% 21% N/A N/A 7%
- --------------------------------------------------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO N/A 41% 18% N/A N/A 6%
- --------------------------------------------------------------------------------------------------------------------------
STRATEGIC SMALL CAP VALUE PORTFOLIO N/A 12% 55% N/A N/A 18%
- --------------------------------------------------------------------------------------------------------------------------
Large Cap Large Small Small
International Appreciation Company Company Company
Value Fund Fund Growth Fund Growth Fund Value Fund
- --------------------------------------------------------------------------------------------------------------------------
INDEX PORTFOLIO N/A N/A N/A N/A N/A
- --------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL VALUE PORTFOLIO 1% N/A N/A N/A N/A
- --------------------------------------------------------------------------------------------------------------------------
LARGE CAP APPRECIATION PORTFOLIO N/A 43% N/A N/A N/A
- --------------------------------------------------------------------------------------------------------------------------
LARGE COMPANY GROWTH PORTFOLIO N/A N/A 77% N/A N/A
- --------------------------------------------------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO N/A N/A N/A 61% N/A
- --------------------------------------------------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO N/A N/A N/A N/A 62%
- --------------------------------------------------------------------------------------------------------------------------
2. SIGNIFICANT ACCOUNTING POLICIES
- --------------------------------------------------------------------------------
The following significant accounting policies, which are consistently
followed in the preparation of the financial statements of the Trust, are in
conformity with accounting principles generally accepted in the United States of
America ("GAAP") for investment companies.
The preparation of financial statements in conformity with GAAP requires
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.
In the normal course of business, the Trust may enter into contracts that
provide certain indemnifications. The Trust's maximum exposure under these
arrangements is dependent on future claims that may be made against the Funds
and, therefore, cannot be estimated; however, based on experience, the risk of
loss from such claims is considered remote.
SECURITY VALUATION
Investments in the Master Portfolios are valued daily based upon each
fund's proportionate share of each Master Portfolio's net assets, which are also
valued daily. Securities held in the Master Portfolios are valued as discussed
in the Notes to Financial Statements of the Master Portfolios, which are
included elsewhere in this report.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Securities transactions are recorded on a trade date basis. Realized gains
or losses are reported on the basis of identified cost of securities delivered.
Interest income is accrued daily and bond discounts are accreted and premiums
are amortized daily.
Dividend income is recognized on the ex-dividend date, except for certain
dividends from foreign securities, which are recorded as soon as the Fund is
informed of the ex-dividend date. Dividend income from foreign securities is
recorded net of foreign taxes withheld where recovery of such taxes is not
assured.
69
WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, if any, is declared and distributed to shareholders
annually, with the exception of the Equity Income Fund, for which net investment
income, if any, is declared and distributed quarterly. Distributions to
shareholders from net realized capital gains, if any, are declared and
distributed at least annually.
For federal income tax purposes, a Fund may designate as capital gains
dividends the earnings and profits distributed to shareholders on the redemption
of fund shares during the year.
Distributions are based on amounts calculated in accordance with the
applicable federal income tax regulations, which may differ from GAAP. The
timing and character of distributions made during the period from net investment
income or net realized gains may also differ from their ultimate
characterization for federal income tax purposes. To the extent that these
differences are permanent in nature, such amounts are reclassified within the
capital accounts based on their federal tax-basis treatment. Temporary
differences do not require reclassifications.
FEDERAL INCOME TAXES
Each Fund is treated as a separate entity for federal income tax purposes.
It is the policy of each Fund of the Trust to continue to qualify as a regulated
investment company by complying with the provisions applicable to regulated
investment companies, as defined under subchapter M of the Internal Revenue Code
(the "Code"), and to make distributions of 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 at March 31, 2006.
At September 30, 2005, estimated net capital loss carryforwards, which are
available to offset future net realized capital gains, were:
Capital Loss
Fund Year Expires Carryforwards
- --------------------------------------------------------------------------------
LARGE COMPANY GROWTH FUND 2007 $ 11,428,295
2008 234,113
2009 26,848,447
2010 145,793,339
2011 260,092,200
2012 46,100,191
2013 6,235,040
- --------------------------------------------------------------------------------
At September 30, 2005, current year deferred post-October capital losses,
which will be treated as realized for tax purposes on the first day of the
succeeding year, were:
Deferred
Post-October
Fund Capital Loss
- --------------------------------------------------------------------------------
INTERNATIONAL VALUE FUND $1,685
- --------------------------------------------------------------------------------
The capital loss carryforwards may include capital losses acquired from a
merger as discussed in Note 1. The yearly utilization of any acquired capital
loss is limited by the Code.
3. EXPENSES
- --------------------------------------------------------------------------------
ADVISORY FEES
The Trust has entered into an advisory contract with Wells Fargo Funds
Management, LLC ("Funds Management"). The adviser is responsible for
implementing investment policies and guidelines and for supervising the
subadviser, who is responsible for day-to-day portfolio management.
For each Fund that invests all of its assets in single Master Portfolios,
Funds Management does not currently receive investment advisory fees. For each
Fund that is invested in multiple Master Portfolios, Funds Management is
entitled to receive an investment advisory fee of 0.25% of each Fund's average
daily net assets for providing such advisory services, including the
determination of the asset allocations of each Fund's investments in the various
Master Portfolios. Funds Management acts as adviser to the Master Portfolios,
and is entitled to receive fees from the Master Portfolios for those services.
Prior to December 6, 2004, the C&B Large Cap Value Fund invested its assets
directly in a portfolio of securities. Accordingly, Funds Management was
entitled to receive an advisory fee for its services as adviser. Funds
Management was paid a monthly fee at the following annual rates:
Advisory Fees
Average Daily (% of Daily
Fund Net Assets Net Assets)
- --------------------------------------------------------------------------------
C&B LARGE CAP VALUE FUND First $500 million 0.750
Next $500 million 0.700
Next $2 billion 0.650
Next $2 billion 0.625
Over $5 billion 0.600
- --------------------------------------------------------------------------------
70
NOTES TO FINANCIAL STATEMENTS WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
- --------------------------------------------------------------------------------
Each Fund that invests its assets in one or more of the Master Portfolios
may withdraw its investments from its corresponding Master Portfolio(s) at any
time if the Board of Trustees determines that it is in the best interest of the
Fund to do so. Upon such redemption and subsequent direct investment in a
portfolio of securities, Funds Management (and the corresponding subadviser, if
any) may receive an investment advisory fee for the direct management of those
assets.
ADMINISTRATION AND TRANSFER AGENT FEES
The Trust has entered into an Administration Agreement with Funds
Management. Under this Agreement, for providing administrative services, which
includes paying fees and expenses for services provided by the transfer agent,
sub-transfer agents, omnibus account servicers and record-keepers, Funds
Management is entitled to receive the following annual fees:
Administration Fees
Average Daily (% of Average
Net Assets Daily Net Assets)
- --------------------------------------------------------------------------------
FUND LEVEL First $5 billion 0.05
Next $5 billion 0.04
Over $10 billion 0.03
- --------------------------------------------------------------------------------
CLASS A All asset levels 0.28
- --------------------------------------------------------------------------------
CLASS B All asset levels 0.28
- --------------------------------------------------------------------------------
CLASS C All asset levels 0.28
- --------------------------------------------------------------------------------
CLASS D All asset levels 0.28
- --------------------------------------------------------------------------------
CLASS Z 0.45
- --------------------------------------------------------------------------------
ADMINISTRATOR CLASS* All asset levels 0.10
- --------------------------------------------------------------------------------
INSTITUTIONAL CLASS** 0.08
* PRIOR TO APRIL 11, 2005, THE CLASS LEVEL FEE WAS 0.20%.
** PRIOR TO APRIL 11, 2005, THE CLASS LEVEL FEE WAS 0.10%.
The Trust has entered into an agreement with Boston Financial Data
Services ("BFDS") as the transfer agent for the Trust. Transfer agent fees are
paid by Funds Management and not by the Funds.
CUSTODY FEES
The Trust has entered into a contract with Wells Fargo Bank, N.A. ("WFB"),
whereby WFB is responsible for providing custody services. WFB does not receive
a custodial fee for any Fund that invests its assets solely in one or more
Master Portfolios or other investment companies.
Prior to December 6, 2004, the C&B Large Cap Value Fund invested its
assets in a portfolio of securities. Accordingly, WFB was entitled to a monthly
fee for custody services at the following annual rates:
% of Average
Fund Daily Net Assets
- --------------------------------------------------------------------------------
C&B LARGE CAP VALUE FUND 0.02
- --------------------------------------------------------------------------------
SHAREHOLDER SERVICING FEES
The Trust has entered into contracts with one or more shareholder
servicing agents, whereby each Fund is charged the following annual fees:
% of Average
Share Class Daily Net Assets
- --------------------------------------------------------------------------------
CLASS A, CLASS B, CLASS C, CLASS D, CLASS Z 0.25
- --------------------------------------------------------------------------------
ADMINISTRATOR CLASS*** 0.25
*** PRIOR TO APRIL 11, 2005, THE CLASS LEVEL FEE WAS 0.10% FOR THE C&B
LARGE CAP VALUE FUND, DIVERSIFIED SMALL CAP FUND, SMALL COMPANY GROWTH FUND, AND
SMALL COMPANY VALUE FUND. ALL OTHER EQUITY GATEWAY FUNDS DID NOT PAY SHAREHOLDER
SERVICING FEES FOR THIS CLASS LEVEL PRIOR TO APRIL 11, 2005.
For the period ended March 31, 2006, shareholder servicing fees paid were
as follows:
Administrator Institutional
Fund Class a Class B Class C Class D Class Z Class Class
- -----------------------------------------------------------------------------------------------------------------
C&B LARGE CAP VALUE FUND $ 65,379 $ 31,053 $17,499 $203,176 N/A $ 267,916 $ 0
- -----------------------------------------------------------------------------------------------------------------
DIVERSIFIED EQUITY FUND 148,821 77,109 8,887 N/A N/A 1,477,635 N/A
- -----------------------------------------------------------------------------------------------------------------
DIVERSIFIED SMALL CAP FUND N/A N/A N/A N/A N/A 750,515 N/A
- -----------------------------------------------------------------------------------------------------------------
EQUITY INCOME FUND 223,125 67,892 7,554 N/A N/A 799,125 N/A
71
WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
Administrator Institutional
Fund Class a Class B Class C Class D Class Z Class Class
- -----------------------------------------------------------------------------------------------------------------
EQUITY VALUE 4,932 2,944 486 N/A N/A 81,129 N/A
- -----------------------------------------------------------------------------------------------------------------
GROWTH EQUITY FUND 29,160 10,380 1,212 N/A N/A 506,994 0
- -----------------------------------------------------------------------------------------------------------------
INTERNATIONAL VALUE FUND 921 476 102 N/A N/A 272 N/A
- -----------------------------------------------------------------------------------------------------------------
LARGE CAP APPRECIATION FUND 42,054 4,128 1,026 N/A N/A 23,889 N/A
- -----------------------------------------------------------------------------------------------------------------
LARGE COMPANY GROWTH FUND 674,434 219,733 24,349 N/A $155,876 2,225,661 0
- -----------------------------------------------------------------------------------------------------------------
SMALL COMPANY GROWTH FUND 3,975 830 170 N/A N/A 691,642 N/A
- -----------------------------------------------------------------------------------------------------------------
SMALL COMPANY VALUE FUND 102,134 20,012 6,493 N/A N/A 254,759 N/A
- -----------------------------------------------------------------------------------------------------------------
DISTRIBUTION FEES
The Trust has adopted a Distribution Plan (the "Plan") for Class B and
Class C shares of the applicable Funds pursuant to Rule 12b-1 under the 1940
Act. Distribution fees are charged to the Class B and Class C shares and paid to
Wells Fargo Funds Distributor, LLC at an annual rate of 0.75% of average daily
net assets.
Prior to April 11, 2005, Stephens, Inc. served as distributor to the
applicable Funds and received distribution fees at an annual rate of 0.75% of
average daily net assets of the funds' Class B and Class C shares.
For the period ended March 31, 2006, distribution fees incurred are
disclosed on the Statements of Operations.
OTHER FEES
PFPC, Inc. ("PFPC") serves as fund accountant for the Trust and is
entitled to receive an annual asset based fee and an annual fixed fee from each
Fund. PFPC is also entitled to be reimbursed for all out-of-pocket expenses
reasonably incurred in providing these services.
WAIVED FEES AND REIMBURSED EXPENSES
All amounts shown as waived fees or reimbursed expenses on the Statements
of Operations, for the period ended March 31, 2006, were waived by Funds
Management proportionately from all classes, first from advisory or
administration fees, and then from any class specific expenses, if applicable.
Funds Management has committed to waive fees and/or reimburse expenses to the
extent necessary to maintain a certain net operating expense ratio for the
Fund(s). Net operating expense ratios during the period were as follows:
Net Operating Expense Ratios
----------------------------
Fund Class A Class B Class C Class D Class Z Administrator Institutional
- -----------------------------------------------------------------------------------------------------------------
C&B LARGE CAP VALUE FUND 1.20% 1.95% 1.95% 1.20% N/A 0.95% 0.70%
- -----------------------------------------------------------------------------------------------------------------
DIVERSIFIED EQUITY FUND 1.25% 2.00% 2.00% N/A N/A 1.00% N/A
- -----------------------------------------------------------------------------------------------------------------
DIVERSIFIED SMALL CAP FUND N/A N/A N/A N/A N/A 1.20% N/A
- -----------------------------------------------------------------------------------------------------------------
EQUITY INCOME FUND 1.10% 1.85% 1.85% N/A N/A 0.85% N/A
- -----------------------------------------------------------------------------------------------------------------
EQUITY VALUE FUND 1.25% 2.00% 2.00% N/A N/A 1.00% N/A
- -----------------------------------------------------------------------------------------------------------------
GROWTH EQUITY FUND 1.50% 2.25% 2.25% N/A N/A 1.25% 1.05%
- -----------------------------------------------------------------------------------------------------------------
INTERNATIONAL VALUE FUND 1.50% 2.25% 2.25% N/A N/A 1.25% N/A
- -----------------------------------------------------------------------------------------------------------------
LARGE CAP APPRECIATION FUND 1.25% 2.00% 2.00% N/A N/A 1.00% N/A
- -----------------------------------------------------------------------------------------------------------------
LARGE COMPANY GROWTH FUND 1.20% 1.95% 1.95% N/A 1.37% 0.95% 0.75%
- -----------------------------------------------------------------------------------------------------------------
SMALL COMPANY GROWTH FUND 1.45% 2.20% 2.20% N/A N/A 1.20% N/A
- -----------------------------------------------------------------------------------------------------------------
SMALL COMPANY VALUE FUND 1.38% 2.12% 2.13% N/A N/A 1.20% N/A
- -----------------------------------------------------------------------------------------------------------------
72
NOTES TO FINANCIAL STATEMENTS WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
- --------------------------------------------------------------------------------
4. INVESTMENT PORTFOLIO TRANSACTIONS
- --------------------------------------------------------------------------------
Purchases and sales of investments, exclusive of short-term securities
(securities with maturities of one year or less at purchase date) and U.S.
Government obligations for the period ended March 31, 2006, were as follows:
Fund* Purchases at Cost Sales Proceeds
- --------------------------------------------------------------------------------
C&B LARGE CAP VALUE FUND $ 76,888,628 $ 82,476,550
- --------------------------------------------------------------------------------
DIVERSIFIED EQUITY FUND 264,413,034 304,553,977
- --------------------------------------------------------------------------------
DIVERSIFIED SMALL CAP FUND 325,468,795 247,263,209
- --------------------------------------------------------------------------------
EQUITY INCOME FUND 29,517,049 211,599,605
- --------------------------------------------------------------------------------
EQUITY VALUE FUND 37,563,866 37,793,498
- --------------------------------------------------------------------------------
GROWTH EQUITY FUND 150,868,210 158,488,366
- --------------------------------------------------------------------------------
INTERNATIONAL VALUE FUND 170,820 315,801
- --------------------------------------------------------------------------------
LARGE CAP APPRECIATION FUND 47,423,192 45,842,685
- --------------------------------------------------------------------------------
LARGE COMPANY GROWTH FUND 69,621,709 358,690,605
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH FUND 372,574,750 395,916,883
- --------------------------------------------------------------------------------
SMALL COMPANY VALUE FUND 221,236,440 273,945,795
- --------------------------------------------------------------------------------
* THESE FUNDS SEEK TO ACHIEVE THEIR INVESTMENT OBJECTIVES BY INVESTING
SOME OR ALL OF ITS INVESTABLE ASSETS IN ONE OR MORE MASTER PORTFOLIOS. PURCHASES
AND SALES RELATED TO THESE INVESTMENTS HAVE BEEN CALCULATED BY AGGREGATING THE
RESULTS OF MULTIPLYING SUCH FUND'S OWNERSHIP PERCENTAGE OF THE RESPECTIVE MASTER
PORTFOLIO BY THE CORRESPONDING MASTER PORTFOLIO'S PURCHASES AND SALES.
5. BANK BORROWINGS
- --------------------------------------------------------------------------------
Wells Fargo Funds Trust and Wells Fargo Variable Trust (excluding the
money market funds) share in a revolving Credit Agreement with The Bank of New
York, whereby the Funds are permitted to use bank borrowings for temporary or
emergency purposes, such as to fund shareholder redemption requests. The
agreement permits borrowings of up to $150 million, collectively. Interest is
charged to each Fund based on its borrowing at a rate equal to the Federal Funds
Rate plus 0.40%. In addition, the Funds pay a quarterly commitment fee equal to
0.1% per annum of the credit line. For the period ended March 31, 2006, there
were no borrowings by the Equity Gateway Funds under the agreement.
6. LEGAL AND REGULATORY MATTERS
- --------------------------------------------------------------------------------
In 2004, the predecessor Strong Funds' prior investment adviser and
affiliates (collectively, "Strong") entered into agreements with certain
regulators, including the Securities and Exchange Commission and the New York
Attorney General ("NYAG"), to settle market-timing investigations. In the
settlements, Strong agreed to pay investor restoration and civil penalties.
Although some portion of these payments is likely to be distributed to
predecessor Strong Fund shareholders, no determination has yet been made as to
the distribution of these amounts, and the successor funds are not expected to
receive any portion of these payments. The NYAG settlement imposed fee
reductions across the predecessor fund complex (excluding money market funds and
very short-term income funds) totaling at least $35 million by May 2009. Funds
Management has agreed to honor these fee reductions for the benefit of
shareholders across the successor funds. Although civil litigation against
Strong and certain predecessor Strong Funds relating to these matters is
continuing, neither the current adviser nor the successor funds is a party to
any such suit.
73
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
C&B LARGE CAP VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 95.01%
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS - 3.36%
435,900 JONES APPAREL GROUP INCORPORATED $ 15,417,783
208,400 VF CORPORATION 11,857,960
27,275,743
---------------
BUSINESS SERVICES - 7.71%
122 INTERPUBLIC GROUP OF COMPANIES INCORPORATED+ 1,167
369,800 MANPOWER INCORPORATED 21,145,164
749,000 MICROSOFT CORPORATION 20,380,290
251,800 OMNICOM GROUP INCORPORATED 20,962,350
62,488,971
---------------
CHEMICALS & ALLIED PRODUCTS - 5.58%
565,700 AVON PRODUCTS INCORPORATED 17,632,869
337,300 COLGATE-PALMOLIVE COMPANY 19,259,830
236,100 MERCK & COMPANY INCORPORATED 8,317,803
45,210,502
---------------
COMMUNICATIONS - 4.63%
555,000 COMCAST CORPORATION CLASS A+ 14,496,600
1,103,000 VODAFONE GROUP PLC ADR<< 23,052,700
37,549,300
---------------
DEPOSITORY INSTITUTIONS - 8.07%
609,000 BANK OF AMERICA CORPORATION<< 27,733,860
362,600 JP MORGAN CHASE & COMPANY 15,098,664
374,270 STATE STREET CORPORATION 22,617,136
65,449,660
---------------
EATING & DRINKING PLACES - 5.26%
604,000 ARAMARK CORPORATION CLASS B 17,842,160
721,600 MCDONALD'S CORPORATION 24,794,176
42,636,336
---------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 7.20%
722,120 AMERICAN POWER CONVERSION CORPORATION 16,688,193
668,300 FLEXTRONICS INTERNATIONAL LIMITED+ 6,916,905
697,100 MOLEX INCORPORATED CLASS A 20,717,812
680,700 NOKIA OYJ ADR 14,104,104
58,427,014
---------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES - 1.44%
228,000 QUEST DIAGNOSTICS INCORPORATED 11,696,400
---------------
FOOD & KINDRED PRODUCTS - 3.11%
290,100 ANHEUSER-BUSCH COMPANIES INCORPORATED<< 12,407,577
201,500 DIAGEO PLC ADR<< 12,781,145
25,188,722
---------------
75
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
C&B LARGE CAP VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
GENERAL MERCHANDISE STORES - 1.41%
820,200 BIG LOTS INCORPORATED+ $ 11,449,992
---------------
HEALTH SERVICES - 1.63%
289,000 HCA INCORPORATED 13,233,310
---------------
HOLDING & OTHER INVESTMENT OFFICES - 2.46%
6,630 BERKSHIRE HATHAWAY INCORPORATED CLASS B+ 19,969,560
---------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 7.27%
535,800 DOVER CORPORATION 26,018,448
213,800 EATON CORPORATION 15,600,986
403,000 PITNEY BOWES INCORPORATED 17,300,790
58,920,224
---------------
INSURANCE CARRIERS - 4.80%
361,800 ALLSTATE CORPORATION 18,853,398
334,000 MBIA INCORPORATED 20,083,420
38,936,818
---------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 5.02%
450,600 BAXTER INTERNATIONAL INCORPORATED 17,487,786
135,000 BECTON DICKINSON & COMPANY 8,313,300
646,000 BOSTON SCIENTIFIC CORPORATION+<< 14,890,300
40,691,386
---------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 5.33%
588,000 HASBRO INCORPORATED 12,406,800
174,500 JOHNSON & JOHNSON 10,333,890
760,500 TYCO INTERNATIONAL LIMITED 20,442,240
43,182,930
---------------
MISCELLANEOUS RETAIL - 1.45%
418,685 ZALE CORPORATION+ 11,735,741
---------------
NON-DEPOSITORY CREDIT INSTITUTIONS - 6.26%
441,000 AMERICAN EXPRESS COMPANY 23,174,550
446,000 COUNTRYWIDE FINANCIAL CORPORATION 16,368,200
184,000 FREDDIE MAC 11,224,000
50,766,750
---------------
PAPER & ALLIED PRODUCTS - 2.32%
325,299 KIMBERLY-CLARK CORPORATION 18,802,282
---------------
PETROLEUM REFINING & RELATED INDUSTRIES - 4.76%
382,300 EXXON MOBIL CORPORATION 23,266,778
246,100 ROYAL DUTCH SHELL PLC ADR CLASS A 15,322,186
38,588,964
---------------
76
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
C&B LARGE CAP VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
PRIMARY METAL INDUSTRIES - 1.28%
202,600 HUBBELL INCORPORATED CLASS B $ 10,385,276
---------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 1.94%
262,400 GANNETT COMPANY INCORPORATED 15,723,008
---------------
TRANSPORTATION EQUIPMENT - 1.66%
210,600 GENERAL DYNAMICS CORPORATION 13,474,188
---------------
WATER TRANSPORTATION - 1.06%
182,000 CARNIVAL CORPORATION<< 8,621,340
---------------
TOTAL COMMON STOCKS (COST $734,869,870) 770,404,417
---------------
COLLATERAL FOR SECURITIES LENDING - 11.20%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.01%
31,360 SCUDDER DAILY ASSETS MONEY MARKET FUND 31,360
23,762 SHORT TERM INVESTMENT COMPANY MONEY MARKET FUND 23,762
55,122
---------------
PRINCIPAL INTEREST RATE MATURITY DATE
COLLATERAL INVESTED IN OTHER ASSETS - 11.19%
$ 328,700 AMERICAN GENERAL FINANCE CORPORATION+/- 4.78% 04/13/2007 328,835
136,849 APRECO LLC 4.62 05/15/2006 136,084
299,519 APRECO LLC 4.94 06/15/2006 296,569
182,611 ASPEN FUNDING CORPORATION 4.92 04/03/2006 182,611
1,826,112 ATLAS CAPITAL FUNDING CORPORATION SERIES MTN+/- 4.62 11/03/2006 1,826,112
205,584 ATLAS CAPITAL FUNDING LIMITED 4.80 04/17/2006 205,203
438,267 ATLAS CAPITAL FUNDING LIMITED 4.62 05/15/2006 435,817
913,056 ATLAS CAPITAL FUNDING LIMITED+/- 4.80 10/20/2006 913,056
913,056 ATLAS CAPITAL FUNDING LIMITED+/- 4.80 12/22/2006 913,056
146,089 ATOMIUM FUNDING CORPORATION 4.53 04/12/2006 145,915
126,696 BETA FINANCE INCORPORATED SERIES MTN+/- 4.88 06/02/2006 126,712
18,188,077 BNP PARIBAS REPURCHASE AGREEMENT
(MATURITY VALUE $18,195,549) 4.93 04/03/2006 18,188,077
542,136 BUCKINGHAM CDO LLC++ 4.60 04/06/2006 541,919
1,777,391 BUCKINGHAM CDO LLC 4.82 04/21/2006 1,773,161
913,056 BUCKINGHAM CDO LLC 4.82 04/25/2006 910,399
949,578 BUCKINGHAM II CDO LLC++ 4.83 04/25/2006 946,815
3,652,224 BUCKINGHAM II CDO LLC 4.83 04/26/2006 3,641,121
1,095,667 CAIRN HIGH GRADE FUNDING I 4.59 04/06/2006 1,095,229
87,653 CAIRN HIGH GRADE FUNDING I 4.71 04/26/2006 87,387
1,533,934 CAIRN HIGH GRADE FUNDING I 4.83 04/27/2006 1,529,072
913,056 CAIRN HIGH GRADE FUNDING I++ 4.83 05/02/2006 909,559
474,789 CAIRN HIGH GRADE FUNDING I 4.77 05/10/2006 472,453
1,836,521 CEDAR SPRINGS CAPITAL COMPANY LLC 4.78 04/05/2006 1,836,043
504,007 CEDAR SPRINGS CAPITAL COMPANY LLC 4.69 05/08/2006 501,658
162,414 CEDAR SPRINGS CAPITAL COMPANY LLC 4.70 05/10/2006 161,615
730,445 CEDAR SPRINGS CAPITAL COMPANY LLC 4.72 05/12/2006 726,654
77
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
C&B LARGE CAP VALUE PORTFOLIO
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 365,222 CEDAR SPRINGS CAPITAL COMPANY LLC 4.90% 06/07/2006 $ 362,019
972,039 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.92 06/12/2006 962,854
2,008,723 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.72 04/12/2006 2,008,723
365,222 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.75 04/18/2007 365,222
1,285,583 CONSOLIDATED EDISON INCORPORATED 4.90 04/03/2006 1,285,583
91,306 CORPORATE ASSET SECURITIZATION AUSTRALIA LIMITED 4.81 04/13/2006 91,185
1,132,190 CREDIT SUISSE FIRST BOSTON NEW YORK SERIES YCD1+/- 4.92 05/04/2006 1,131,623
913,056 CULLINAN FINANCE CORPORATION+/- 4.71 11/15/2006 913,020
730,445 DEER VALLEY FUNDING LLC++ 4.51 04/10/2006 729,766
933,326 DEER VALLEY FUNDING LLC 4.81 04/17/2006 931,599
2,225,191 DEER VALLEY FUNDING LLC 4.83 04/19/2006 2,220,473
474,789 DEER VALLEY FUNDING LLC 4.80 05/03/2006 472,904
1,826,112 DEUTSCHE BANK REPURCHASE AGREEMENT
(MATURITY VALUE $1,826,849) 4.84 04/03/2006 1,826,112
1,749,014 EIFFEL FUNDING LLC 4.91 04/03/2006 1,749,014
109,567 EIFFEL FUNDING LLC 4.78 04/17/2006 109,364
1,315,568 EUREKA SECURITIZATION INCORPORATED 4.88 05/16/2006 1,308,043
30,094 GALLEON CAPITAL LLC 4.65 04/03/2006 30,094
54,783 GEMINI SECURITIZATION INCORPORATED 4.90 05/24/2006 54,410
876,534 GOLDMAN SACHS GROUP INCORPORATED+/- 4.97 06/30/2006 876,534
2,616,819 HARRIER FINANCE FUNDING LLC 4.62 04/03/2006 2,616,819
584,356 ING USA ANNUITY & LIFE INSURANCE+/- 5.03 06/06/2006 584,356
7,334,023 JP MORGAN CHASE SECURITIES CORPORATION REPURCHASE AGREEMENT
(MATURITY VALUE $7,337,036) 4.93 04/03/2006 7,334,023
47,479 K2 (USA) LLC 4.63 05/02/2006 47,297
168,915 K2 (USA) LLC SERIES MTN+/- 4.87 07/24/2006 168,958
547,834 KAUPTHING BANK HF SERIES MTN+/-++ 4.84 03/20/2007 547,724
73,044 KLIO II FUNDING CORPORATION 4.58 04/05/2006 73,026
88,019 KLIO III FUNDING CORPORATION 4.69 04/19/2006 87,832
36,522 LEXINGTON PARKER CAPITAL CORPORATION 4.62 05/02/2006 36,382
138,638 LEXINGTON PARKER CAPITAL CORPORATION 4.69 05/10/2006 137,956
913,056 LIBERTY LIGHT US CAPITAL SERIES MTN+/- 4.81 05/26/2006 913,111
73,044 LINKS FINANCE LLC SERIES MTN1+/- 4.68 09/12/2006 73,045
219,133 LIQUID FUNDING LIMITED+/- 4.94 04/24/2006 219,142
840,012 LIQUID FUNDING LIMITED+/- 4.71 08/14/2006 840,012
547,834 LIQUID FUNDING LIMITED+/- 4.61 12/01/2006 547,834
219,133 LIQUID FUNDING LIMITED SERIES MTN+/- 4.83 02/20/2007 219,123
365,222 MBIA GLOBAL FUNDING LLC+/- 4.78 02/20/2007 365,201
1,835,243 MERRILL LYNCH & COMPANY SERIES MTN+/- 4.80 10/27/2006 1,836,619
1,095,667 MORGAN STANLEY+/- 4.94 10/10/2006 1,095,667
168,915 MORGAN STANLEY SERIES EXL+/- 4.78 08/13/2010 168,961
628,876 MORTGAGE INTEREST NET TRUST 4.68 04/03/2006 628,876
825,403 MORTGAGE INTEREST NET TRUST 4.78 05/03/2006 822,126
36,522 NATIONWIDE BUILDING SOC+/- 4.74 07/21/2006 36,540
805,425 NEWPORT FUNDING CORPORATION 4.92 04/03/2006 805,425
78
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
C&B LARGE CAP VALUE PORTFOLIO
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 1,105,857 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 4.78% 04/03/2006 $ 1,105,857
1,278,278 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.68 04/04/2006 1,278,112
162,816 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.93 06/26/2006 160,970
69,392 NORDEA NORTH AMERICA INCORPORATED 4.89 05/15/2006 69,004
1,926,548 NORTHERN ROCK PLC+/- 4.63 04/21/2006 1,926,279
144,372 NORTHERN ROCK PLC 4.69 04/24/2006 143,971
1,826,112 NORTHERN ROCK PLC+/- 4.66 02/05/2007 1,826,130
147,732 RACERS TRUST 2004-6-MM+/- 4.79 05/22/2006 147,753
36,522 SCALDIS CAPITAL LIMITED 4.93 06/15/2006 36,163
146,089 TANGO FINANCE CORPORATION 4.95 06/21/2006 144,532
422,307 TANGO FINANCE CORPORATION SERIES MTN+/- 4.87 10/25/2006 422,446
211,135 TRAVELERS INSURANCE COMPANY+/- 4.77 02/09/2007 211,131
913,056 UNICREDITO ITALIANO SERIES LIB+/- 4.70 03/09/2007 913,001
913,056 UNICREDITO ITALIANO SERIES YCD+/- 4.47 04/03/2006 913,056
1,387,845 US BANK NA SERIES BKNT+/- 4.66 07/28/2006 1,387,887
365,222 WHISTLEJACKET CAPITAL LIMITED+/- 4.65 06/09/2006 365,222
36,522 WHITE PINE FINANCE LLC 4.64 04/18/2006 36,450
182,611 WHITE PINE FINANCE LLC 4.82 05/05/2006 181,833
149,084 WHITE PINE FINANCE LLC 4.84 05/25/2006 148,048
112,196 WHITE PINE FINANCE LLC 4.93 06/20/2006 111,015
963,785 WHITE PINE FINANCE LLC 4.93 06/22/2006 953,377
913,056 WHITE PINE FINANCE LLC+/- 4.70 07/17/2006 913,056
876,534 WHITE PINE FINANCE LLC SERIES MTN1+/- 4.81 06/12/2006 876,613
90,737,635
---------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $90,792,757) 90,792,757
---------------
SHARES
SHORT-TERM INVESTMENTS - 4.87%
39,523,765 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~@ 39,523,765
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $39,523,765) 39,523,765
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $865,186,392)* 111.08% $ 900,720,939
OTHER ASSETS AND LIABILITIES, NET (11.08) (89,831,874)
------ ---------------
TOTAL NET ASSETS 100.00% $ 810,889,065
====== ===============
+ NON-INCOME EARNING SECURITIES.
<< ALL OR A PORTION OF THIS SECURITY IS ON LOAN. (SEE NOTE 2)
+/- VARIABLE RATE INVESTMENTS.
++ SECURITIES THAT MAY BE RESOLD TO "QUALIFIED INSTITUTIONAL BUYERS" UNDER
RULE 144A OR SECURITIES OFFERED PURSUANT TO SECTION 4 (2) OF THE
SECURITIES ACT OF 1933, AS AMENDED.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
@ SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $39,523,765.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
79
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
DISCIPLINED GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 98.49%
APPAREL & ACCESSORY STORES - 3.00%
144,600 NORDSTROM INCORPORATED $ 5,665,428
---------------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS - 4.65%
100,000 FASTENAL COMPANY 4,734,000
95,700 HOME DEPOT INCORPORATED 4,048,110
8,782,110
---------------
BUSINESS SERVICES - 14.60%
104,000 ADOBE SYSTEMS INCORPORATED<< 3,631,680
96,100 CHECKFREE CORPORATION<<+ 4,853,050
55,000 COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION CLASS A+ 3,271,950
152,000 ELECTRONIC DATA SYSTEMS CORPORATION<< 4,078,160
232,900 MICROSOFT CORPORATION 6,337,209
139,300 ROBERT HALF INTERNATIONAL INCORPORATED 5,378,373
27,550,422
---------------
CHEMICALS & ALLIED PRODUCTS - 10.47%
49,600 GENENTECH INCORPORATED+ 4,191,696
50,000 GENZYME CORPORATION+ 3,361,000
105,100 GILEAD SCIENCES INCORPORATED+ 6,539,322
98,300 PROCTER & GAMBLE COMPANY 5,664,046
19,756,064
---------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 13.49%
109,000 AMPHENOL CORPORATION CLASS A 5,687,620
259,600 CISCO SYSTEMS INCORPORATED+ 5,625,532
50,700 L-3 COMMUNICATIONS HOLDINGS INCORPORATED 4,349,553
74,000 MAXIM INTEGRATED PRODUCTS INCORPORATED<< 2,749,100
112,000 TEXAS INSTRUMENTS INCORPORATED 3,636,640
133,600 XILINX INCORPORATED<< 3,401,456
25,449,901
---------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT - 2.12%
49,600 FORTUNE BRANDS INCORPORATED 3,999,248
---------------
FOOD & KINDRED PRODUCTS - 2.00%
65,200 PEPSICO INCORPORATED 3,767,908
---------------
HEALTH SERVICES - 2.23%
70,000 DAVITA INCORPORATED+ 4,214,700
---------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 11.30%
74,100 3M COMPANY 5,608,629
216,300 APPLIED MATERIALS INCORPORATED 3,787,413
259,000 EMC CORPORATION+ 3,530,170
75,400 NATIONAL-OILWELL VARCO INCORPORATED<<+ 4,834,648
62,000 SANDISK CORPORATION+ 3,566,240
21,327,100
---------------
80
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
DISCIPLINED GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
INSURANCE CARRIERS - 5.95%
49,700 HARTFORD FINANCIAL SERVICES GROUP INCORPORATED $ 4,003,335
51,400 PRUDENTIAL FINANCIAL INCORPORATED 3,896,634
59,600 UNITEDHEALTH GROUP INCORPORATED 3,329,256
11,229,225
---------------
LEATHER & LEATHER PRODUCTS - 2.76%
150,600 COACH INCORPORATED<<+ 5,207,748
---------------
MEDICAL MANAGEMENT SERVICES - 2.51%
87,750 COVENTRY HEALTH CARE INCORPORATED+ 4,736,745
---------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 2.52%
80,200 JOHNSON & JOHNSON 4,749,444
---------------
MISCELLANEOUS RETAIL - 2.89%
62,000 EXPRESS SCRIPTS INCORPORATED<<+ 5,449,800
---------------
RAILROAD TRANSPORTATION - 2.19%
49,500 BURLINGTON NORTHERN SANTA FE CORPORATION 4,124,835
---------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 6.70%
36,700 BEAR STEARNS COMPANIES INCORPORATED 5,090,290
219,800 CHARLES SCHWAB CORPORATION 3,782,759
40,000 FRANKLIN RESOURCES INCORPORATED 3,769,600
12,642,649
---------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 2.78%
195,000 CORNING INCORPORATED<<+ 5,247,450
---------------
TRANSPORTATION BY AIR - 2.15%
36,000 FEDEX CORPORATION 4,065,840
---------------
TRANSPORTATION EQUIPMENT - 4.18%
53,000 BOEING COMPANY 4,130,290
65,000 UNITED TECHNOLOGIES CORPORATION 3,768,050
7,898,340
---------------
TOTAL COMMON STOCKS (COST $150,402,437) 185,864,957
---------------
COLLATERAL FOR SECURITIES LENDING - 9.66%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.01%
6,300 SCUDDER DAILY ASSETS MONEY MARKET FUND 6,300
4,773 SHORT TERM INVESTMENT COMPANY MONEY MARKET FUND 4,773
11,073
---------------
PRINCIPAL INTEREST RATE MATURITY DATE
COLLATERAL INVESTED IN OTHER ASSETS - 9.65%
$ 66,028 AMERICAN GENERAL FINANCE CORPORATION+/- 4.78% 04/13/2007 66,056
27,490 APRECO LLC 4.62 05/15/2006 27,336
60,167 APRECO LLC 4.94 06/15/2006 59,574
36,683 ASPEN FUNDING CORPORATION 4.92 04/03/2006 36,683
81
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
DISCIPLINED GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 366,825 ATLAS CAPITAL FUNDING CORPORATION SERIES MTN+/- 4.62% 11/03/2006 $ 366,825
41,297 ATLAS CAPITAL FUNDING LIMITED 4.80 04/17/2006 41,221
88,038 ATLAS CAPITAL FUNDING LIMITED 4.62 05/15/2006 87,546
183,412 ATLAS CAPITAL FUNDING LIMITED+/- 4.80 10/20/2006 183,412
183,412 ATLAS CAPITAL FUNDING LIMITED+/- 4.80 12/22/2006 183,412
29,346 ATOMIUM FUNDING CORPORATION 4.53 04/12/2006 29,311
25,450 BETA FINANCE INCORPORATED SERIES MTN+/- 4.88 06/02/2006 25,454
3,653,576 BNP PARIBAS REPURCHASE AGREEMENT
(MATURITY VALUE $3,655,077) 4.93 04/03/2006 3,653,576
108,903 BUCKINGHAM CDO LLC++ 4.60 04/06/2006 108,859
357,038 BUCKINGHAM CDO LLC 4.82 04/21/2006 356,188
183,412 BUCKINGHAM CDO LLC 4.82 04/25/2006 182,879
190,749 BUCKINGHAM II CDO LLC++ 4.83 04/25/2006 190,194
733,650 BUCKINGHAM II CDO LLC 4.83 04/26/2006 731,420
220,095 CAIRN HIGH GRADE FUNDING I 4.59 04/06/2006 220,007
17,608 CAIRN HIGH GRADE FUNDING I 4.71 04/26/2006 17,554
308,133 CAIRN HIGH GRADE FUNDING I 4.83 04/27/2006 307,156
183,412 CAIRN HIGH GRADE FUNDING I++ 4.83 05/02/2006 182,710
95,374 CAIRN HIGH GRADE FUNDING I 4.77 05/10/2006 94,905
368,916 CEDAR SPRINGS CAPITAL COMPANY LLC 4.78 04/05/2006 368,820
101,244 CEDAR SPRINGS CAPITAL COMPANY LLC 4.69 05/08/2006 100,772
32,625 CEDAR SPRINGS CAPITAL COMPANY LLC 4.70 05/10/2006 32,465
146,730 CEDAR SPRINGS CAPITAL COMPANY LLC 4.72 05/12/2006 145,968
73,365 CEDAR SPRINGS CAPITAL COMPANY LLC 4.90 06/07/2006 72,722
195,261 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.92 06/12/2006 193,416
403,507 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.72 04/12/2006 403,507
73,365 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.75 04/18/2007 73,365
258,245 CONSOLIDATED EDISON INCORPORATED 4.90 04/03/2006 258,245
18,341 CORPORATE ASSET SECURITIZATION AUSTRALIA LIMITED 4.81 04/13/2006 18,317
227,431 CREDIT SUISSE FIRST BOSTON NEW YORK SERIES YCD1+/- 4.92 05/04/2006 227,318
183,412 CULLINAN FINANCE CORPORATION+/- 4.71 11/15/2006 183,405
146,730 DEER VALLEY FUNDING LLC++ 4.51 04/10/2006 146,594
187,484 DEER VALLEY FUNDING LLC 4.81 04/17/2006 187,137
446,991 DEER VALLEY FUNDING LLC 4.83 04/19/2006 446,043
95,374 DEER VALLEY FUNDING LLC 4.80 05/03/2006 94,996
366,825 DEUTSCHE BANK REPURCHASE AGREEMENT
(MATURITY VALUE $366,973) 4.84 04/03/2006 366,825
351,338 EIFFEL FUNDING LLC 4.91 04/03/2006 351,338
22,010 EIFFEL FUNDING LLC 4.78 04/17/2006 21,969
264,268 EUREKA SECURITIZATION INCORPORATED 4.88 05/16/2006 262,756
6,045 GALLEON CAPITAL LLC 4.65 04/03/2006 6,045
11,005 GEMINI SECURITIZATION INCORPORATED 4.90 05/24/2006 10,930
176,076 GOLDMAN SACHS GROUP INCORPORATED+/- 4.97 06/30/2006 176,076
525,660 HARRIER FINANCE FUNDING LLC 4.62 04/03/2006 525,660
117,384 ING USA ANNUITY & LIFE INSURANCE+/- 5.03 06/06/2006 117,384
1,473,241 JP MORGAN CHASE SECURITIES CORPORATION REPURCHASE AGREEMENT
(MATURITY VALUE $1,473,846) 4.93 04/03/2006 1,473,241
82
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
DISCIPLINED GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 9,537 K2 (USA) LLC 4.63% 05/02/2006 $ 9,501
33,931 K2 (USA) LLC SERIES MTN+/- 4.87 07/24/2006 33,940
110,047 KAUPTHING BANK HF SERIES MTN+/-++ 4.84 03/20/2007 110,026
14,673 KLIO II FUNDING CORPORATION 4.58 04/05/2006 14,669
17,681 KLIO III FUNDING CORPORATION 4.69 04/19/2006 17,643
7,337 LEXINGTON PARKER CAPITAL CORPORATION 4.62 05/02/2006 7,308
27,849 LEXINGTON PARKER CAPITAL CORPORATION 4.69 05/10/2006 27,712
183,412 LIBERTY LIGHT US CAPITAL SERIES MTN+/- 4.81 05/26/2006 183,424
14,673 LINKS FINANCE LLC SERIES MTN1+/- 4.68 09/12/2006 14,673
44,019 LIQUID FUNDING LIMITED+/- 4.94 04/24/2006 44,021
168,740 LIQUID FUNDING LIMITED+/- 4.71 08/14/2006 168,740
110,048 LIQUID FUNDING LIMITED+/- 4.61 12/01/2006 110,048
44,019 LIQUID FUNDING LIMITED SERIES MTN+/- 4.83 02/20/2007 44,017
73,365 MBIA GLOBAL FUNDING LLC+/- 4.78 02/20/2007 73,361
368,659 MERRILL LYNCH & COMPANY SERIES MTN+/- 4.80 10/27/2006 368,936
220,095 MORGAN STANLEY+/- 4.94 10/10/2006 220,095
33,931 MORGAN STANLEY SERIES EXL+/- 4.78 08/13/2010 33,940
126,327 MORTGAGE INTEREST NET TRUST 4.68 04/03/2006 126,327
165,805 MORTGAGE INTEREST NET TRUST 4.78 05/03/2006 165,147
7,337 NATIONWIDE BUILDING SOC+/- 4.74 07/21/2006 7,340
161,792 NEWPORT FUNDING CORPORATION 4.92 04/03/2006 161,792
222,142 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 4.78 04/03/2006 222,142
256,777 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.68 04/04/2006 256,744
32,706 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.93 06/26/2006 32,335
13,939 NORDEA NORTH AMERICA INCORPORATED 4.89 05/15/2006 13,861
387,000 NORTHERN ROCK PLC+/- 4.63 04/21/2006 386,946
29,001 NORTHERN ROCK PLC 4.69 04/24/2006 28,921
366,825 NORTHERN ROCK PLC+/- 4.66 02/05/2007 366,829
29,676 RACERS TRUST 2004-6-MM+/- 4.79 05/22/2006 29,680
7,337 SCALDIS CAPITAL LIMITED 4.93 06/15/2006 7,264
29,346 TANGO FINANCE CORPORATION 4.95 06/21/2006 29,033
84,832 TANGO FINANCE CORPORATION SERIES MTN+/- 4.87 10/25/2006 84,860
42,412 TRAVELERS INSURANCE COMPANY+/- 4.77 02/09/2007 42,411
183,412 UNICREDITO ITALIANO SERIES LIB+/- 4.70 03/09/2007 183,401
183,412 UNICREDITO ITALIANO SERIES YCD+/- 4.47 04/03/2006 183,412
278,787 US BANK NA SERIES BKNT+/- 4.66 07/28/2006 278,795
73,365 WHISTLEJACKET CAPITAL LIMITED+/- 4.65 06/09/2006 73,365
7,337 WHITE PINE FINANCE LLC 4.64 04/18/2006 7,322
36,682 WHITE PINE FINANCE LLC 4.82 05/05/2006 36,526
29,948 WHITE PINE FINANCE LLC 4.84 05/25/2006 29,739
22,538 WHITE PINE FINANCE LLC 4.93 06/20/2006 22,300
193,603 WHITE PINE FINANCE LLC 4.93 06/22/2006 191,512
183,412 WHITE PINE FINANCE LLC+/- 4.70 07/17/2006 183,412
176,076 WHITE PINE FINANCE LLC SERIES MTN1+/- 4.81 06/12/2006 176,092
18,227,154
---------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $18,238,227) 18,238,227
---------------
83
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
DISCIPLINED GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
SHORT-TERM INVESTMENTS - 5.64%
10,630,161 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~@ $ 10,630,161
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $10,630,161) 10,630,161
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $179,270,825)* 113.79% $ 214,733,345
OTHER ASSETS AND LIABILITIES, NET (13.79) (26,021,200)
------ ---------------
TOTAL NET ASSETS 100.00% $ 188,712,145
====== ===============
<< ALL OR A PORTION OF THIS SECURITY IS ON LOAN. (SEE NOTE 2)
+ NON-INCOME EARNING SECURITIES.
+/- VARIABLE RATE INVESTMENTS.
++ SECURITIES THAT MAY BE RESOLD TO "QUALIFIED INSTITUTIONAL BUYERS" UNDER
RULE 144A OR SECURITIES OFFERED PURSUANT TO SECTION 4 (2) OF THE
SECURITIES ACT OF 1933, AS AMENDED.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
@ SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $10,630,161.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
84
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
EQUITY INCOME PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 99.27%
BUSINESS SERVICES - 1.92%
32 CA INCORPORATED<< $ 871
750,400 MICROSOFT CORPORATION 20,418,384
20,419,255
---------------
CHEMICALS & ALLIED PRODUCTS - 12.41%
561,475 ABBOTT LABORATORIES 23,845,843
161,472 AIR PRODUCTS & CHEMICALS INCORPORATED 10,849,304
203,750 COLGATE-PALMOLIVE COMPANY 11,634,125
601,234 E.I. DU PONT DE NEMOURS & COMPANY 25,378,087
764,735 PFIZER INCORPORATED 19,057,196
374,760 PROCTER & GAMBLE COMPANY 21,593,671
207,981 ROHM & HAAS COMPANY 10,164,032
198,400 WYETH 9,626,368
132,148,626
---------------
COMMUNICATIONS - 3.71%
107,150 ALLTEL CORPORATION 6,937,962
455,215 AT&T INCORPORATED<< 12,309,014
595,486 VERIZON COMMUNICATIONS INCORPORATED 20,282,253
39,529,229
---------------
DEPOSITORY INSTITUTIONS - 14.47%
555,780 BANK OF AMERICA CORPORATION<< 25,310,221
898,690 CITIGROUP INCORPORATED 42,454,116
245,200 FIFTH THIRD BANCORP 9,651,072
542,865 JP MORGAN CHASE & COMPANY 22,604,899
372,050 NORTH FORK BANCORPORATION INCORPORATED 10,726,202
665,731 US BANCORP 20,304,795
410,065 WACHOVIA CORPORATION 22,984,143
154,035,448
---------------
EATING & DRINKING PLACES - 1.79%
555,270 MCDONALD'S CORPORATION 19,079,077
---------------
ELECTRIC, GAS & SANITARY SERVICES - 6.70%
1,850 AMERICAN ELECTRIC POWER COMPANY INCORPORATED 62,937
169,358 DOMINION RESOURCES INCORPORATED 11,690,783
2,700 EDISON INTERNATIONAL 111,186
2,300 EXELON CORPORATION 121,670
191,545 FIRSTENERGY CORPORATION 9,366,550
308,170 FPL GROUP INCORPORATED<< 12,369,944
164,500 KINDER MORGAN INCORPORATED<< 15,132,355
259,200 MDU RESOURCES GROUP INCORPORATED 8,670,240
3,200 ONEOK INCORPORATED 103,200
214,215 PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED 13,718,329
71,347,194
---------------
85
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
EQUITY INCOME PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 10.49%
299,000 CISCO SYSTEMS INCORPORATED+ $ 6,479,330
276,250 EMERSON ELECTRIC COMPANY 23,102,787
1,090,994 GENERAL ELECTRIC COMPANY 37,944,771
785,750 INTEL CORPORATION 15,204,263
709,460 MOTOROLA INCORPORATED 16,253,729
614,870 NOKIA OYJ ADR 12,740,106
111,724,986
---------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES - 1.03%
213,600 QUEST DIAGNOSTICS INCORPORATED 10,957,680
---------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT - 2.71%
357,560 FORTUNE BRANDS INCORPORATED 28,830,063
---------------
FOOD & KINDRED PRODUCTS - 2.52%
463,295 PEPSICO INCORPORATED 26,773,818
---------------
GENERAL MERCHANDISE STORES - 2.87%
79,602 FEDERATED DEPARTMENT STORES INCORPORATED 5,810,946
475,745 TARGET CORPORATION 24,743,497
30,554,443
---------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 5.74%
348,491 3M COMPANY 26,377,284
504,295 HEWLETT-PACKARD COMPANY 16,591,305
219,942 INTERNATIONAL BUSINESS MACHINES CORPORATION 18,138,617
61,107,206
---------------
INSURANCE CARRIERS - 7.21%
252,395 ALLSTATE CORPORATION 13,152,303
330,793 AMERICAN INTERNATIONAL GROUP INCORPORATED 21,862,109
295,430 METLIFE INCORPORATED 14,289,949
655,750 ST. PAUL TRAVELERS COMPANIES INCORPORATED 27,403,793
76,708,154
---------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 2.28%
218,800 BAXTER INTERNATIONAL INCORPORATED 8,491,628
174,559 BECTON DICKINSON & COMPANY 10,749,343
141,300 BIOMET INCORPORATED+ 5,018,976
24,259,947
---------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 1.88%
75,458 ACCO BRANDS CORPORATION<<+ 1,675,168
309,565 JOHNSON & JOHNSON 18,332,439
20,007,607
---------------
MOTION PICTURES - 2.05%
631,150 TIME WARNER INCORPORATED 10,597,009
400,690 WALT DISNEY COMPANY 11,175,244
21,772,253
---------------
86
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
EQUITY INCOME PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
NON-DEPOSITORY CREDIT INSTITUTIONS - 2.04%
413,585 AMERICAN EXPRESS COMPANY $ 21,733,892
---------------
OIL & GAS EXTRACTION - 1.28%
1,000 ANADARKO PETROLEUM CORPORATION 101,010
1,100 SCHLUMBERGER LIMITED 139,227
243,200 TIDEWATER INCORPORATED<< 13,431,936
13,672,173
---------------
PETROLEUM REFINING & RELATED INDUSTRIES - 9.33%
215,758 BP PLC ADR 14,874,357
412,870 CHEVRONTEXACO CORPORATION 23,934,074
348,550 CONOCOPHILLIPS<< 22,010,932
552,786 EXXON MOBIL CORPORATION 33,642,556
77,784 ROYAL DUTCH SHELL PLC ADR CLASS A<< 4,842,832
99,304,751
---------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 3.20%
73,147 AMERIPRISE FINANCIAL INCORPORATED 3,296,004
490,600 MORGAN STANLEY 30,819,491
34,115,495
---------------
TOBACCO PRODUCTS - 1.57%
236,100 ALTRIA GROUP INCORPORATED 16,730,046
---------------
TRANSPORTATION EQUIPMENT - 1.51%
376,480 HONEYWELL INTERNATIONAL INCORPORATED 16,102,050
---------------
WHOLESALE TRADE NON-DURABLE GOODS - 0.56%
185,000 SYSCO CORPORATION 5,929,250
---------------
TOTAL COMMON STOCKS (COST $821,621,251) 1,056,842,643
---------------
COLLATERAL FOR SECURITIES LENDING - 9.39%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.01%
34,518 SCUDDER DAILY ASSETS MONEY MARKET FUND 34,517
26,155 SHORT TERM INVESTMENT COMPANY MONEY MARKET FUND 26,155
60,672
---------------
PRINCIPAL INTEREST RATE MATURITY DATE
COLLATERAL INVESTED IN OTHER ASSETS - 9.38%
$ 361,795 AMERICAN GENERAL FINANCE CORPORATION+/- 4.78% 04/13/2007 361,943
150,627 APRECO LLC 4.62 05/15/2006 149,785
329,675 APRECO LLC 4.94 06/15/2006 326,428
200,997 ASPEN FUNDING CORPORATION 4.92 04/03/2006 200,997
2,009,970 ATLAS CAPITAL FUNDING CORPORATION SERIES MTN+/- 4.62 11/03/2006 2,009,970
226,282 ATLAS CAPITAL FUNDING LIMITED 4.80 04/17/2006 225,864
482,393 ATLAS CAPITAL FUNDING LIMITED+/- 4.62 05/15/2006 479,696
1,004,985 ATLAS CAPITAL FUNDING LIMITED 4.80 10/20/2006 1,004,985
1,004,985 ATLAS CAPITAL FUNDING LIMITED+/- 4.80 12/22/2006 1,004,985
160,798 ATOMIUM FUNDING CORPORATION 4.53 04/12/2006 160,606
87
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
EQUITY INCOME PORTFOLIO
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 139,452 BETA FINANCE INCORPORATED SERIES MTN+/- 4.88% 06/02/2006 $ 139,470
20,019,299 BNP PARIBAS REPURCHASE AGREEMENT
(MATURITY VALUE $20,027,524) 4.93 04/03/2006 20,019,299
596,720 BUCKINGHAM CDO LLC++ 4.60 04/06/2006 596,481
1,956,344 BUCKINGHAM CDO LLC 4.82 04/21/2006 1,951,688
1,004,985 BUCKINGHAM CDO LLC 4.82 04/25/2006 1,002,060
1,045,184 BUCKINGHAM II CDO LLC++ 4.83 04/25/2006 1,042,143
4,019,940 BUCKINGHAM II CDO LLC 4.83 04/26/2006 4,007,719
1,205,982 CAIRN HIGH GRADE FUNDING I 4.59 04/06/2006 1,205,500
96,479 CAIRN HIGH GRADE FUNDING I 4.71 04/26/2006 96,185
1,688,375 CAIRN HIGH GRADE FUNDING I 4.83 04/27/2006 1,683,023
1,004,985 CAIRN HIGH GRADE FUNDING I++ 4.83 05/02/2006 1,001,136
522,592 CAIRN HIGH GRADE FUNDING I 4.77 05/10/2006 520,021
2,021,427 CEDAR SPRINGS CAPITAL COMPANY LLC 4.78 04/05/2006 2,020,901
554,752 CEDAR SPRINGS CAPITAL COMPANY LLC 4.69 05/08/2006 552,167
178,767 CEDAR SPRINGS CAPITAL COMPANY LLC 4.70 05/10/2006 177,887
803,988 CEDAR SPRINGS CAPITAL COMPANY LLC 4.72 05/12/2006 799,815
401,994 CEDAR SPRINGS CAPITAL COMPANY LLC 4.90 06/07/2006 398,468
1,069,907 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.92 06/12/2006 1,059,796
2,210,967 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.72 04/12/2006 2,210,967
401,994 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.75 04/18/2007 401,994
1,415,019 CONSOLIDATED EDISON INCORPORATED 4.90 04/03/2006 1,415,019
100,498 CORPORATE ASSET SECURITIZATION AUSTRALIA LIMITED+/- 4.81 04/13/2006 100,366
1,246,181 CREDIT SUISSE FIRST BOSTON NEW YORK SERIES YCD1 4.92 05/04/2006 1,245,558
1,004,985 CULLINAN FINANCE CORPORATION+/- 4.71 11/15/2006 1,004,945
803,988 DEER VALLEY FUNDING LLC++ 4.51 04/10/2006 803,240
1,027,296 DEER VALLEY FUNDING LLC 4.81 04/17/2006 1,025,395
2,449,229 DEER VALLEY FUNDING LLC 4.83 04/19/2006 2,444,036
522,592 DEER VALLEY FUNDING LLC 4.80 05/03/2006 520,517
2,009,970 DEUTSCHE BANK REPURCHASE AGREEMENT
(MATURITY VALUE $2,010,781) 4.84 04/03/2006 2,009,970
1,925,109 EIFFEL FUNDING LLC 4.91 04/03/2006 1,925,109
120,598 EIFFEL FUNDING LLC 4.78 04/17/2006 120,375
1,448,022 EUREKA SECURITIZATION INCORPORATED 4.88 05/16/2006 1,439,740
33,124 GALLEON CAPITAL LLC+/- 4.65 04/03/2006 33,124
60,299 GEMINI SECURITIZATION INCORPORATED 4.90 05/24/2006 59,888
964,786 GOLDMAN SACHS GROUP INCORPORATED+/- 4.97 06/30/2006 964,786
2,880,287 HARRIER FINANCE FUNDING LLC 4.62 04/03/2006 2,880,287
643,190 ING USA ANNUITY & LIFE INSURANCE+/- 5.03 06/06/2006 643,190
8,072,431 JP MORGAN CHASE SECURITIES CORPORATION REPURCHASE AGREEMENT
(MATURITY VALUE $8,075,747) 4.93 04/03/2006 8,072,431
52,259 K2 (USA) LLC 4.63 05/02/2006 52,059
185,922 K2 (USA) LLC SERIES MTN+/- 4.87 07/24/2006 185,969
602,991 KAUPTHING BANK HF SERIES MTN+/-++ 4.84 03/20/2007 602,870
80,399 KLIO II FUNDING CORPORATION 4.58 04/05/2006 80,378
88
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
EQUITY INCOME PORTFOLIO
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 96,881 KLIO III FUNDING CORPORATION 4.69% 04/19/2006 $ 96,675
40,199 LEXINGTON PARKER CAPITAL CORPORATION 4.62 05/02/2006 40,045
152,597 LEXINGTON PARKER CAPITAL CORPORATION 4.69 05/10/2006 151,846
1,004,985 LIBERTY LIGHT US CAPITAL SERIES MTN+/- 4.81 05/26/2006 1,005,045
80,399 LINKS FINANCE LLC SERIES MTN1+/- 4.68 09/12/2006 80,400
241,196 LIQUID FUNDING LIMITED+/- 4.94 04/24/2006 241,206
924,586 LIQUID FUNDING LIMITED+/- 4.71 08/14/2006 924,586
602,991 LIQUID FUNDING LIMITED+/- 4.61 12/01/2006 602,991
241,196 LIQUID FUNDING LIMITED SERIES MTN+/- 4.83 02/20/2007 241,184
401,994 MBIA GLOBAL FUNDING LLC+/- 4.78 02/20/2007 401,970
2,020,020 MERRILL LYNCH & COMPANY SERIES MTN+/- 4.80 10/27/2006 2,021,535
1,205,982 MORGAN STANLEY+/- 4.94 10/10/2006 1,205,982
185,922 MORGAN STANLEY SERIES EXL+/- 4.78 08/13/2010 185,972
692,193 MORTGAGE INTEREST NET TRUST 4.68 04/03/2006 692,193
908,506 MORTGAGE INTEREST NET TRUST 4.78 05/03/2006 904,900
40,199 NATIONWIDE BUILDING SOC+/- 4.74 07/21/2006 40,219
886,517 NEWPORT FUNDING CORPORATION 4.92 04/03/2006 886,517
1,217,198 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 4.78 04/03/2006 1,217,198
1,406,979 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.68 04/04/2006 1,406,796
179,209 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.93 06/26/2006 177,177
76,379 NORDEA NORTH AMERICA INCORPORATED 4.89 05/15/2006 75,952
2,120,518 NORTHERN ROCK PLC+/- 4.63 04/21/2006 2,120,221
158,908 NORTHERN ROCK PLC 4.69 04/24/2006 158,466
2,009,970 NORTHERN ROCK PLC+/- 4.66 02/05/2007 2,009,990
162,607 RACERS TRUST 2004-6-MM+/- 4.79 05/22/2006 162,629
40,199 SCALDIS CAPITAL LIMITED 4.93 06/15/2006 39,803
160,798 TANGO FINANCE CORPORATION 4.95 06/21/2006 159,083
464,826 TANGO FINANCE CORPORATION SERIES MTN+/- 4.87 10/25/2006 464,979
232,393 TRAVELERS INSURANCE COMPANY+/- 4.77 02/09/2007 232,388
1,004,985 UNICREDITO ITALIANO SERIES LIB+/- 4.70 03/09/2007 1,004,925
1,004,985 UNICREDITO ITALIANO SERIES YCD+/- 4.47 04/03/2006 1,004,985
1,527,577 US BANK NA SERIES BKNT 4.66 07/28/2006 1,527,623
401,994 WHISTLEJACKET CAPITAL LIMITED+/- 4.65 06/09/2006 401,994
40,199 WHITE PINE FINANCE LLC 4.64 04/18/2006 40,120
200,997 WHITE PINE FINANCE LLC 4.82 05/05/2006 200,141
164,094 WHITE PINE FINANCE LLC 4.84 05/25/2006 162,953
123,493 WHITE PINE FINANCE LLC 4.93 06/20/2006 122,192
1,060,822 WHITE PINE FINANCE LLC 4.93 06/22/2006 1,049,365
1,004,985 WHITE PINE FINANCE LLC+/- 4.70 07/17/2006 1,004,985
964,786 WHITE PINE FINANCE LLC SERIES MTN1 4.81 06/12/2006 964,872
99,873,334
---------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $99,934,006) 99,934,006
---------------
89
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
EQUITY INCOME PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
SHORT-TERM INVESTMENTS - 0.67%
7,179,031 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~@ $ 7,179,031
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $7,179,031) 7,179,031
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $928,734,288)* 109.33% $ 1,163,955,680
OTHER ASSETS AND LIABILITIES, NET (9.33) (99,312,636)
------ ---------------
TOTAL NET ASSETS 100.00% $ 1,064,643,044
====== ===============
<< ALL OR A PORTION OF THIS SECURITY IS ON LOAN. (SEE NOTE 2)
+ NON-INCOME EARNING SECURITIES.
+/- VARIABLE RATE INVESTMENTS.
++ SECURITIES THAT MAY BE RESOLD TO "QUALIFIED INSTITUTIONAL BUYERS" UNDER
RULE 144A OR SECURITIES OFFERED PURSUANT TO SECTION 4 (2) OF THE
SECURITIES ACT OF 1933, AS AMENDED.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
@ SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $7,179,031.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
90
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
EQUITY VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 98.18%
APPAREL & ACCESSORY STORES - 0.98%
37,200 ABERCROMBIE & FITCH COMPANY CLASS A $ 2,168,760
80,800 AMERICAN EAGLE OUTFITTERS INCORPORATED 2,412,688
4,581,448
---------------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS - 1.03%
112,800 HOME DEPOT INCORPORATED 4,771,440
---------------
CHEMICALS & ALLIED PRODUCTS - 6.66%
45,000 AMGEN INCORPORATED+ 3,273,750
105,500 DOW CHEMICAL COMPANY 4,283,300
139,900 MERCK & COMPANY INCORPORATED<< 4,928,677
579,000 PFIZER INCORPORATED 14,428,680
71,000 PROCTER & GAMBLE COMPANY 4,091,020
31,005,427
---------------
COMMUNICATIONS - 5.20%
332,600 AT&T INCORPORATED<< 8,993,504
226,800 SPRINT NEXTEL CORPORATION 5,860,512
274,600 VERIZON COMMUNICATIONS INCORPORATED 9,352,876
24,206,892
---------------
DEPOSITORY INSTITUTIONS - 10.06%
360,000 BANK OF AMERICA CORPORATION<< 16,394,400
270,000 CITIGROUP INCORPORATED<< 12,754,800
216,500 JP MORGAN CHASE & COMPANY 9,015,060
104,500 ZIONS BANCORPORATION 8,645,285
46,809,545
---------------
EATING & DRINKING PLACES - 0.99%
133,500 MCDONALD'S CORPORATION 4,587,060
---------------
ELECTRIC, GAS & SANITARY SERVICES - 4.89%
156,500 CMS ENERGY CORPORATION+ 2,026,675
102,000 CONSOLIDATED EDISON INCORPORATED<< 4,437,000
84,000 EXELON CORPORATION<< 4,443,600
111,400 FPL GROUP INCORPORATED<< 4,471,596
112,500 PPL CORPORATION 3,307,500
115,000 WASTE MANAGEMENT INCORPORATED 4,059,500
22,745,871
---------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 4.83%
196,500 FREESCALE SEMICONDUCTOR INCORPORATED+<< 5,464,665
139,000 GENERAL ELECTRIC COMPANY 4,834,420
45,800 HARMAN INTERNATIONAL INDUSTRIES INCORPORATED 5,089,754
164,600 MOTOROLA INCORPORATED 3,770,986
118,400 NATIONAL SEMICONDUCTOR CORPORATION 3,296,256
22,456,081
---------------
91
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
EQUITY VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES - 1.02%
157,500 ACCENTURE LIMITED CLASS A $ 4,736,025
---------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT - 1.02%
268,400 CROWN HOLDINGS INCORPORATED+<< 4,761,416
---------------
FOOD & KINDRED PRODUCTS - 1.50%
207,600 ARCHER-DANIELS-MIDLAND COMPANY 6,985,740
---------------
GENERAL MERCHANDISE STORES - 3.11%
78,900 FEDERATED DEPARTMENT STORES INCORPORATED 5,759,700
144,600 JC PENNEY COMPANY INCORPORATED 8,735,286
14,494,986
---------------
HOLDING & OTHER INVESTMENT OFFICES - 0.81%
175,500 HOST MARRIOTT CORPORATION 3,755,700
---------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 0.59%
70,900 BED BATH & BEYOND INCORPORATED+ 2,722,560
---------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 1.66%
154,800 BOYD GAMING CORPORATION<< 7,730,712
---------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 4.75%
42,300 3M COMPANY 3,201,687
283,000 EMC CORPORATION+ 3,857,290
138,500 HEWLETT-PACKARD COMPANY<< 4,556,650
42,000 INTERNATIONAL BUSINESS MACHINES CORPORATION 3,463,740
88,600 TEREX CORPORATION+ 7,020,664
22,100,031
---------------
INSURANCE CARRIERS - 11.75%
142,200 AMERICAN INTERNATIONAL GROUP INCORPORATED 9,397,998
173,900 ASSURANT INCORPORATED 8,564,575
49,800 CIGNA CORPORATION 6,504,876
71,500 HARTFORD FINANCIAL SERVICES GROUP INCORPORATED 5,759,325
65,000 LINCOLN NATIONAL CORPORATION<< 3,548,350
84,000 LOEWS CORPORATION 8,500,800
83,800 PRUDENTIAL FINANCIAL INCORPORATED 6,352,878
144,500 ST. PAUL TRAVELERS COMPANIES INCORPORATED 6,038,655
54,667,457
---------------
LOCAL & SUB-TRANSIT & INTERURBAN HIGHWAY PASS TRANSPORTATION - 0.70%
120,600 LAIDLAW INTERNATIONAL INCORPORATED 3,280,320
---------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 0.52%
156,200 TERADYNE INCORPORATED+<< 2,422,662
---------------
MEDICAL MANAGEMENT SERVICES - 0.48%
41,600 COVENTRY HEALTH CARE INCORPORATED+ 2,245,568
---------------
92
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
EQUITY VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MOTION PICTURES - 2.59%
299,000 TIME WARNER INCORPORATED $ 5,020,210
252,900 WALT DISNEY COMPANY<< 7,053,381
12,073,591
---------------
NON-DEPOSITORY CREDIT INSTITUTIONS - 1.02%
154,900 AMERICREDIT CORPORATION+<< 4,760,077
---------------
OIL & GAS EXTRACTION - 5.27%
560,000 CHESAPEAKE ENERGY CORPORATION 17,589,600
106,000 CIMAREX ENERGY COMPANY 4,585,560
26,300 DIAMOND OFFSHORE DRILLING INCORPORATED 2,353,850
24,529,010
---------------
PAPER & ALLIED PRODUCTS - 0.81%
111,100 SONOCO PRODUCTS COMPANY 3,762,957
---------------
PETROLEUM REFINING & RELATED INDUSTRIES - 7.31%
91,700 CHEVRONTEXACO CORPORATION 5,315,849
332,000 EXXON MOBIL CORPORATION 20,205,520
142,000 VALERO ENERGY CORPORATION 8,488,760
34,010,129
---------------
PRIMARY METAL INDUSTRIES - 0.44%
33,500 ALLEGHENY TECHNOLOGIES INCORPORATED<< 2,049,530
---------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 7.54%
93,200 BEAR STEARNS COMPANIES INCORPORATED 12,926,840
262,000 E*TRADE FINANCIAL CORPORATION+ 7,068,760
131,500 MERRILL LYNCH & COMPANY INCORPORATED<< 10,356,940
75,400 MORGAN STANLEY 4,736,628
35,089,168
---------------
TOBACCO PRODUCTS - 1.67%
109,400 ALTRIA GROUP INCORPORATED 7,752,084
---------------
TRANSPORTATION BY AIR - 0.83%
96,300 US AIRWAYS GROUP INCORPORATED+<< 3,852,000
---------------
TRANSPORTATION EQUIPMENT - 4.96%
82,800 HONEYWELL INTERNATIONAL INCORPORATED 3,541,356
42,000 JOHNSON CONTROLS INCORPORATED 3,189,060
102,300 TEXTRON INCORPORATED<< 9,553,797
117,500 UNITED TECHNOLOGIES CORPORATION 6,811,475
23,095,688
---------------
WATER TRANSPORTATION - 0.88%
97,600 ROYAL CARIBBEAN CRUISES LIMITED<< 4,101,152
---------------
93
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
EQUITY VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
WHOLESALE TRADE NON-DURABLE GOODS - 1.71%
133,500 AIRGAS INCORPORATED $ 5,218,515
47,700 MEDCO HEALTH SOLUTIONS INCORPORATED+ 2,729,394
7,947,909
---------------
WHOLESALE TRADE DURABLE GOODS - 0.60%
109,200 AVNET INCORPORATED+ 2,771,496
---------------
TOTAL COMMON STOCKS (COST $411,087,221) 456,861,732
---------------
COLLATERAL FOR SECURITIES LENDING - 16.20%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.01%
26,041 SCUDDER DAILY ASSETS MONEY MARKET FUND 26,041
19,731 SHORT TERM INVESTMENT COMPANY MONEY MARKET FUND 19,731
45,772
---------------
PRINCIPAL INTEREST RATE MATURITY DATE
COLLATERAL INVESTED IN OTHER ASSETS - 16.19%
$ 272,943 AMERICAN GENERAL FINANCE CORPORATION+/- 4.78% 04/13/2007 $ 273,055
113,635 APRECO LLC 4.62 05/15/2006 113,000
248,712 APRECO LLC 4.94 06/15/2006 246,262
151,635 ASPEN FUNDING CORPORATION 4.92 04/03/2006 151,635
1,516,350 ATLAS CAPITAL FUNDING CORPORATION SERIES MTN+/- 4.62 11/03/2006 1,516,350
363,924 ATLAS CAPITAL FUNDING LIMITED 4.62 05/15/2006 361,890
758,175 ATLAS CAPITAL FUNDING LIMITED+/- 4.80 10/20/2006 758,175
170,711 ATLAS CAPITAL FUNDING LIMITED 4.80 04/17/2006 170,395
758,175 ATLAS CAPITAL FUNDING LIMITED+/- 4.80 12/22/2006 758,175
121,308 ATOMIUM FUNDING CORPORATION 4.53 04/12/2006 121,164
105,204 BETA FINANCE INCORPORATED SERIES MTN+/- 4.88 06/02/2006 105,218
15,102,843 BNP PARIBAS REPURCHASE AGREEMENT
(MATURITY VALUE $15,109,048) 4.93 04/03/2006 15,102,843
450,174 BUCKINGHAM CDO LLC++ 4.60 04/06/2006 449,994
1,475,894 BUCKINGHAM CDO LLC 4.82 04/21/2006 1,472,381
758,175 BUCKINGHAM CDO LLC 4.82 04/25/2006 755,969
788,502 BUCKINGHAM II CDO LLC++ 4.83 04/25/2006 786,207
3,032,699 BUCKINGHAM II CDO LLC 4.83 04/26/2006 3,023,480
909,810 CAIRN HIGH GRADE FUNDING I 4.59 04/06/2006 909,446
394,251 CAIRN HIGH GRADE FUNDING I 4.77 05/10/2006 392,311
72,785 CAIRN HIGH GRADE FUNDING I 4.71 04/26/2006 72,563
1,273,734 CAIRN HIGH GRADE FUNDING I 4.83 04/27/2006 1,269,696
758,175 CAIRN HIGH GRADE FUNDING I++ 4.83 05/02/2006 755,271
1,524,993 CEDAR SPRINGS CAPITAL COMPANY LLC 4.78 04/05/2006 1,524,596
418,513 CEDAR SPRINGS CAPITAL COMPANY LLC 4.69 05/08/2006 416,562
134,864 CEDAR SPRINGS CAPITAL COMPANY LLC 4.70 05/10/2006 134,201
606,540 CEDAR SPRINGS CAPITAL COMPANY LLC 4.72 05/12/2006 603,392
303,270 CEDAR SPRINGS CAPITAL COMPANY LLC 4.90 06/07/2006 300,610
807,153 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.92 06/12/2006 799,525
303,270 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.75 04/18/2007 303,270
1,667,985 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.72 04/12/2006 1,667,985
94
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
EQUITY VALUE PORTFOLIO
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 1,067,510 CONSOLIDATED EDISON INCORPORATED 4.90% 04/03/2006 $ 1,067,510
75,817 CORPORATE ASSET SECURITIZATION AUSTRALIA LIMITED 4.81 04/13/2006 75,717
940,137 CREDIT SUISSE FIRST BOSTON NEW YORK SERIES YCD1+/- 4.92 05/04/2006 939,667
758,175 CULLINAN FINANCE CORPORATION+/- 4.71 11/15/2006 758,144
606,540 DEER VALLEY FUNDING LLC++ 4.51 04/10/2006 605,976
775,006 DEER VALLEY FUNDING LLC 4.81 04/17/2006 773,573
394,251 DEER VALLEY FUNDING LLC 4.80 05/03/2006 392,686
1,847,733 DEER VALLEY FUNDING LLC 4.83 04/19/2006 1,843,816
1,516,350 DEUTSCHE BANK REPURCHASE AGREEMENT
(MATURITY VALUE $1,516,962) 4.84 04/03/2006 1,516,350
1,452,329 EIFFEL FUNDING LLC 4.91 04/03/2006 1,452,329
90,981 EIFFEL FUNDING LLC 4.78 04/17/2006 90,813
1,092,409 EUREKA SECURITIZATION INCORPORATED 4.88 05/16/2006 1,086,160
24,989 GALLEON CAPITAL LLC 4.65 04/03/2006 24,989
45,490 GEMINI SECURITIZATION INCORPORATED 4.90 05/24/2006 45,181
727,848 GOLDMAN SACHS GROUP INCORPORATED+/- 4.97 06/30/2006 727,848
2,172,929 HARRIER FINANCE FUNDING LLC 4.62 04/03/2006 2,172,929
485,232 ING USA ANNUITY & LIFE INSURANCE+/- 5.03 06/06/2006 485,232
6,089,956 JP MORGAN CHASE SECURITIES CORPORATION REPURCHASE AGREEMENT
(MATURITY VALUE $6,092,458) 4.93 04/03/2006 6,089,956
39,425 K2 (USA) LLC 4.63 05/02/2006 39,274
140,262 K2 (USA) LLC SERIES MTN+/- 4.87 07/24/2006 140,297
454,905 KAUPTHING BANK HF SERIES MTN+/-++ 4.84 03/20/2007 454,814
60,654 KLIO II FUNDING CORPORATION 4.58 04/05/2006 60,638
73,088 KLIO III FUNDING CORPORATION 4.69 04/19/2006 72,933
30,327 LEXINGTON PARKER CAPITAL CORPORATION 4.62 05/02/2006 30,211
115,121 LEXINGTON PARKER CAPITAL CORPORATION 4.69 05/10/2006 114,555
758,175 LIBERTY LIGHT US CAPITAL SERIES MTN+/- 4.81 05/26/2006 758,220
60,654 LINKS FINANCE LLC SERIES MTN1+/- 4.68 09/12/2006 60,655
697,521 LIQUID FUNDING LIMITED+/- 4.71 08/14/2006 697,521
181,962 LIQUID FUNDING LIMITED+/- 4.94 04/24/2006 181,969
454,905 LIQUID FUNDING LIMITED+/- 4.61 12/01/2006 454,905
181,962 LIQUID FUNDING LIMITED SERIES MTN+/- 4.83 02/20/2007 181,953
303,270 MBIA GLOBAL FUNDING LLC+/- 4.78 02/20/2007 303,252
1,523,931 MERRILL LYNCH & COMPANY SERIES MTN+/- 4.80 10/27/2006 1,525,074
909,810 MORGAN STANLEY+/- 4.94 10/10/2006 909,810
140,262 MORGAN STANLEY SERIES EXL+/- 4.78 08/13/2010 140,300
685,390 MORTGAGE INTEREST NET TRUST 4.78 05/03/2006 682,669
522,200 MORTGAGE INTEREST NET TRUST 4.68 04/03/2006 522,200
30,327 NATIONWIDE BUILDING SOC+/- 4.74 07/21/2006 30,342
668,801 NEWPORT FUNDING CORPORATION 4.92 04/03/2006 668,801
918,271 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 4.78 04/03/2006 918,271
1,061,445 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.68 04/04/2006 1,061,307
135,198 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.93 06/26/2006 133,665
57,621 NORDEA NORTH AMERICA INCORPORATED 4.89 05/15/2006 57,299
1,599,749 NORTHERN ROCK PLC+/- 4.63 04/21/2006 1,599,525
1,516,350 NORTHERN ROCK PLC+/- 4.66 02/05/2007 1,516,365
95
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
EQUITY VALUE PORTFOLIO
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 119,883 NORTHERN ROCK PLC 4.69% 04/24/2006 $ 119,549
122,673 RACERS TRUST 2004-6-MM+/- 4.79 05/22/2006 122,690
30,327 SCALDIS CAPITAL LIMITED 4.93 06/15/2006 30,028
121,308 TANGO FINANCE CORPORATION 4.95 06/21/2006 120,015
350,671 TANGO FINANCE CORPORATION SERIES MTN+/- 4.87 10/25/2006 350,787
175,320 TRAVELERS INSURANCE COMPANY+/- 4.77 02/09/2007 175,317
758,175 UNICREDITO ITALIANO SERIES LIB+/- 4.70 03/09/2007 758,129
758,175 UNICREDITO ITALIANO SERIES YCD+/- 4.47 04/03/2006 758,175
1,152,426 US BANK NA SERIES BKNT+/- 4.66 07/28/2006 1,152,460
303,270 WHISTLEJACKET CAPITAL LIMITED+/- 4.65 06/09/2006 303,270
30,327 WHITE PINE FINANCE LLC 4.64 04/18/2006 30,267
758,175 WHITE PINE FINANCE LLC+/- 4.70 07/17/2006 758,175
151,635 WHITE PINE FINANCE LLC 4.82 05/05/2006 150,989
123,795 WHITE PINE FINANCE LLC 4.84 05/25/2006 122,934
93,165 WHITE PINE FINANCE LLC 4.93 06/20/2006 92,183
800,299 WHITE PINE FINANCE LLC 4.93 06/22/2006 791,656
727,848 WHITE PINE FINANCE LLC SERIES MTN1+/- 4.81 06/12/2006 727,913
75,345,859
---------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $75,391,631) 75,391,631
---------------
SHARES
SHORT-TERM INVESTMENTS - 1.52%
7,042,763 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~@ 7,042,763
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $7,042,763) 7,042,763
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $493,521,615)* 115.90% $ 539,296,126
OTHER ASSETS AND LIABILITIES, NET (15.90) (73,982,058)
------ ---------------
TOTAL NET ASSETS 100.00% $ 465,314,068
====== ===============
+ NON-INCOME EARNING SECURITIES.
<< ALL OR A PORTION OF THIS SECURITY IS ON LOAN. (SEE NOTE 2)
+/- VARIABLE RATE INVESTMENTS.
++ SECURITIES THAT MAY BE RESOLD TO "QUALIFIED INSTITUTIONAL BUYERS" UNDER
RULE 144A OR SECURITIES OFFERED PURSUANT TO SECTION 4 (2) OF THE
SECURITIES ACT OF 1933, AS AMENDED.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
@ SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $7,042,763.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
96
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 99.79%
AMUSEMENT & RECREATION SERVICES - 0.22%
36,416 HARRAH'S ENTERTAINMENT INCORPORATED<< $ 2,838,991
66,700 INTERNATIONAL GAME TECHNOLOGY 2,349,174
5,188,165
---------------
APPAREL & ACCESSORY STORES - 0.39%
113,537 GAP INCORPORATED 2,120,871
68,197 KOHL'S CORPORATION+ 3,615,123
68,885 LIMITED BRANDS 1,684,927
43,243 NORDSTROM INCORPORATED 1,694,261
9,115,182
---------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS - 0.11%
22,591 JONES APPAREL GROUP INCORPORATED 799,044
20,796 LIZ CLAIBORNE INCORPORATED 852,220
17,434 VF CORPORATION 991,994
2,643,258
---------------
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS - 0.08%
35,832 AUTONATION INCORPORATED+ 772,179
10,927 AUTOZONE INCORPORATED+ 1,089,313
1,861,492
---------------
AUTOMOTIVE REPAIR, SERVICES & PARKING - 0.02%
12,033 RYDER SYSTEM INCORPORATED 538,838
---------------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS - 0.32%
24,287 CENTEX CORPORATION 1,505,551
53,768 D.R. HORTON INCORPORATED 1,786,173
15,203 KB HOME<< 987,891
27,116 LENNAR CORPORATION CLASS A<< 1,637,264
42,323 PULTE HOMES INCORPORATED<< 1,626,050
7,542,929
---------------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS - 1.24%
420,218 HOME DEPOT INCORPORATED 17,775,221
154,676 LOWE'S COMPANIES INCORPORATED 9,967,322
21,938 SHERWIN-WILLIAMS COMPANY<< 1,084,615
28,827,158
---------------
BUSINESS SERVICES - 6.45%
118,652 ADOBE SYSTEMS INCORPORATED<< 4,143,328
23,247 AFFILIATED COMPUTER SERVICES INCORPORATED CLASS A+ 1,386,916
45,656 AUTODESK INCORPORATED+ 1,758,669
114,647 AUTOMATIC DATA PROCESSING INCORPORATED 5,237,075
42,100 BMC SOFTWARE INCORPORATED<<+ 911,886
90,257 CA INCORPORATED<< 2,455,893
199,435 CENDANT CORPORATION 3,460,197
97
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
BUSINESS SERVICES (CONTINUED)
35,305 CITRIX SYSTEMS INCORPORATED+ $ 1,338,060
36,891 COMPUTER SCIENCES CORPORATION+ 2,049,295
75,721 COMPUWARE CORPORATION+ 592,895
27,661 CONVERGYS CORPORATION+ 503,707
228,183 EBAY INCORPORATED+ 8,912,828
60,095 ELECTRONIC ARTS INCORPORATED+ 3,288,398
101,779 ELECTRONIC DATA SYSTEMS CORPORATION 2,730,731
25,600 EQUIFAX INCORPORATED 953,344
151,746 FIRST DATA CORPORATION 7,104,748
36,495 FISERV INCORPORATED+ 1,552,862
39,983 GOOGLE INCORPORATED CLASS A+ 15,593,370
39,413 IMS HEALTH INCORPORATED 1,015,673
85,973 INTERPUBLIC GROUP OF COMPANIES INCORPORATED<<+ 821,902
35,002 INTUIT INCORPORATED+ 1,861,756
1,757,935 MICROSOFT CORPORATION 47,833,411
25,011 MONSTER WORLDWIDE INCORPORATED<<+ 1,247,048
36,002 NCR CORPORATION+ 1,504,524
77,037 NOVELL INCORPORATED<<+ 591,644
35,368 OMNICOM GROUP INCORPORATED 2,944,386
745,427 ORACLE CORPORATION+ 10,204,896
21,973 PARAMETRIC TECHNOLOGY CORPORATION+ 358,822
33,924 ROBERT HALF INTERNATIONAL INCORPORATED 1,309,806
684,641 SUN MICROSYSTEMS INCORPORATED+ 3,512,208
206,384 SYMANTEC CORPORATION+ 3,473,443
67,646 UNISYS CORPORATION+ 466,081
48,380 VERISIGN INCORPORATED<<+ 1,160,636
249,622 YAHOO! INCORPORATED<<+ 8,052,806
150,333,244
---------------
CHEMICALS & ALLIED PRODUCTS - 9.79%
304,365 ABBOTT LABORATORIES 12,926,382
44,039 AIR PRODUCTS & CHEMICALS INCORPORATED 2,958,980
14,943 ALBERTO-CULVER COMPANY CLASS B 660,929
231,175 AMGEN INCORPORATED+ 16,817,981
21,851 AVERY DENNISON CORPORATION 1,277,846
89,117 AVON PRODUCTS INCORPORATED<< 2,777,777
20,920 BARR PHARMACEUTICALS INCORPORATED<<+ 1,317,542
68,068 BIOGEN IDEC INCORPORATED<<+ 3,206,003
387,537 BRISTOL-MYERS SQUIBB COMPANY 9,537,286
21,635 CHIRON CORPORATION<<+ 991,099
29,694 CLOROX COMPANY 1,777,186
101,945 COLGATE-PALMOLIVE COMPANY 5,821,059
191,372 DOW CHEMICAL COMPANY 7,769,703
181,985 E.I. DU PONT DE NEMOURS & COMPANY 7,681,587
16,149 EASTMAN CHEMICAL COMPANY 826,506
36,064 ECOLAB INCORPORATED 1,377,645
223,529 ELI LILLY & COMPANY<< 12,361,154
98
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
CHEMICALS & ALLIED PRODUCTS (CONTINUED)
23,571 ESTEE LAUDER COMPANIES INCORPORATED CLASS A $ 876,605
64,466 FOREST LABORATORIES INCORPORATED+ 2,877,118
51,390 GENZYME CORPORATION+ 3,454,436
91,447 GILEAD SCIENCES INCORPORATED+ 5,689,832
31,819 HOSPIRA INCORPORATED+ 1,255,578
15,616 INTERNATIONAL FLAVORS & FRAGRANCES INCORPORATED 535,941
47,887 KING PHARMACEUTICALS INCORPORATED+ 826,051
50,533 MEDIMMUNE INCORPORATED+ 1,848,497
432,633 MERCK & COMPANY INCORPORATED<< 15,241,661
53,287 MONSANTO COMPANY 4,516,073
43,243 MYLAN LABORATORIES INCORPORATED 1,011,886
1,455,522 PFIZER INCORPORATED 36,271,608
32,705 PPG INDUSTRIES INCORPORATED 2,071,862
63,851 PRAXAIR INCORPORATED 3,521,383
650,640 PROCTER & GAMBLE COMPANY 37,489,877
28,489 ROHM & HAAS COMPANY 1,392,257
292,664 SCHERING-PLOUGH CORPORATION<< 5,557,689
13,228 SIGMA-ALDRICH CORPORATION 870,270
265,881 WYETH 12,900,546
228,295,835
---------------
COMMUNICATIONS - 3.97%
76,748 ALLTEL CORPORATION 4,969,433
767,480 AT&T INCORPORATED<< 20,752,659
82,496 AVAYA INCORPORATED<<+ 932,205
355,637 BELLSOUTH CORPORATION 12,322,822
25,912 CENTURYTEL INCORPORATED<< 1,013,677
102,237 CLEAR CHANNEL COMMUNICATIONS INCORPORATED 2,965,895
423,054 COMCAST CORPORATION CLASS A<<+ 11,067,093
306,865 QWEST COMMUNICATIONS INTERNATIONAL INCORPORATED+ 2,086,682
586,975 SPRINT NEXTEL CORPORATION 15,167,434
44,229 UNIVISION COMMUNICATIONS INCORPORATED CLASS A<<+ 1,524,574
578,973 VERIZON COMMUNICATIONS INCORPORATED 19,719,820
92,522,294
---------------
DEPOSITORY INSTITUTIONS - 10.27%
68,358 AMSOUTH BANCORPORATION<< 1,849,084
918,809 BANK OF AMERICA CORPORATION 41,842,562
152,582 BANK OF NEW YORK COMPANY INCORPORATED 5,499,055
105,914 BB&T CORPORATION<< 4,151,829
987,361 CITIGROUP INCORPORATED 46,642,934
32,200 COMERICA INCORPORATED 1,866,634
24,449 COMPASS BANCSHARES INCORPORATED 1,237,364
109,911 FIFTH THIRD BANCORP<< 4,326,097
24,925 FIRST HORIZON NATIONAL CORPORATION 1,038,126
50,652 GOLDEN WEST FINANCIAL CORPORATION 3,439,271
49,203 HUNTINGTON BANCSHARES INCORPORATED 1,187,268
99
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
DEPOSITORY INSTITUTIONS (CONTINUED)
689,500 JP MORGAN CHASE & COMPANY $ 28,710,780
80,146 KEYCORP 2,949,373
15,696 M&T BANK CORPORATION 1,791,541
41,517 MARSHALL & ILSLEY CORPORATION 1,809,311
81,967 MELLON FINANCIAL CORPORATION 2,918,025
108,283 NATIONAL CITY CORPORATION 3,779,077
94,097 NORTH FORK BANCORPORATION INCORPORATED 2,712,817
36,644 NORTHERN TRUST CORPORATION 1,923,810
57,808 PNC FINANCIAL SERVICES GROUP 3,891,056
90,273 REGIONS FINANCIAL CORPORATION 3,174,901
70,651 SOVEREIGN BANCORP INCORPORATED 1,547,963
65,872 STATE STREET CORPORATION 3,980,645
73,345 SUNTRUST BANKS INCORPORATED 5,336,582
61,966 SYNOVUS FINANCIAL CORPORATION 1,678,659
356,244 US BANCORP 10,865,442
320,966 WACHOVIA CORPORATION 17,990,144
196,148 WASHINGTON MUTUAL INCORPORATED<< 8,359,828
331,518 WELLS FARGO & COMPANY++ 21,174,055
20,646 ZIONS BANCORPORATION 1,708,044
239,382,277
---------------
EATING & DRINKING PLACES - 0.59%
26,016 DARDEN RESTAURANTS INCORPORATED 1,067,436
248,585 MCDONALD'S CORPORATION 8,541,381
22,614 WENDY'S INTERNATIONAL INCORPORATED 1,403,425
54,563 YUM! BRANDS INCORPORATED 2,665,948
13,678,190
---------------
EDUCATIONAL SERVICES - 0.06%
27,815 APOLLO GROUP INCORPORATED CLASS A+ 1,460,566
---------------
ELECTRIC, GAS & SANITARY SERVICES - 3.63%
129,764 AES CORPORATION+ 2,213,774
32,280 ALLEGHENY ENERGY INCORPORATED+ 1,092,678
43,375 ALLIED WASTE INDUSTRIES INCORPORATED+ 530,910
40,502 AMEREN CORPORATION<< 2,017,810
77,884 AMERICAN ELECTRIC POWER COMPANY INCORPORATED 2,649,614
61,344 CENTERPOINT ENERGY INCORPORATED<< 731,834
39,451 CINERGY CORPORATION 1,791,470
64,974 CITIZENS COMMUNICATIONS COMPANY<< 862,205
43,669 CMS ENERGY CORPORATION+ 565,514
48,551 CONSOLIDATED EDISON INCORPORATED 2,111,968
35,301 CONSTELLATION ENERGY GROUP INCORPORATED 1,931,318
68,737 DOMINION RESOURCES INCORPORATED<< 4,744,915
35,174 DTE ENERGY COMPANY<< 1,410,126
183,610 DUKE ENERGY CORPORATION<< 5,352,231
59,597 DYNEGY INCORPORATED CLASS A+ 286,066
64,450 EDISON INTERNATIONAL 2,654,051
100
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ELECTRIC, GAS & SANITARY SERVICES (CONTINUED)
130,405 EL PASO CORPORATION $ 1,571,380
41,115 ENTERGY CORPORATION 2,834,468
131,989 EXELON CORPORATION 6,982,218
65,247 FIRSTENERGY CORPORATION 3,190,578
79,830 FPL GROUP INCORPORATED<< 3,204,376
34,533 KEYSPAN CORPORATION 1,411,364
20,817 KINDER MORGAN INCORPORATED<< 1,914,956
8,741 NICOR INCORPORATED 345,794
53,933 NISOURCE INCORPORATED 1,090,525
7,585 PEOPLES ENERGY CORPORATION<< 270,329
68,310 PG&E CORPORATION 2,657,259
19,616 PINNACLE WEST CAPITAL CORPORATION 766,986
75,218 PPL CORPORATION 2,211,409
49,907 PROGRESS ENERGY INCORPORATED 2,194,910
49,591 PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED 3,175,808
51,118 SEMPRA ENERGY 2,374,942
146,728 SOUTHERN COMPANY<< 4,808,277
41,211 TECO ENERGY INCORPORATED 664,321
91,542 TXU CORPORATION 4,097,420
109,255 WASTE MANAGEMENT INCORPORATED 3,856,684
117,632 WILLIAMS COMPANIES INCORPORATED<< 2,516,148
79,881 XCEL ENERGY INCORPORATED 1,449,840
84,536,476
---------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 9.37%
23,164 ADC TELECOMMUNICATIONS INCORPORATED<<+ 592,767
95,127 ADVANCED MICRO DEVICES INCORPORATED+ 3,154,411
71,074 ALTERA CORPORATION<<+ 1,466,967
33,999 AMERICAN POWER CONVERSION CORPORATION 785,717
72,428 ANALOG DEVICES INCORPORATED 2,773,268
31,519 ANDREW CORPORATION+ 387,053
58,219 APPLIED MICRO CIRCUITS CORPORATION+ 236,951
87,137 BROADCOM CORPORATION CLASS A+ 3,760,833
115,199 CIENA CORPORATION+ 600,187
1,216,682 CISCO SYSTEMS INCORPORATED+ 26,365,499
39,959 COMVERSE TECHNOLOGY INCORPORATED+ 940,235
18,161 COOPER INDUSTRIES LIMITED CLASS A 1,578,191
81,383 EMERSON ELECTRIC COMPANY 6,806,060
81,183 FREESCALE SEMICONDUCTOR INCORPORATED CLASS B+ 2,254,451
2,061,925 GENERAL ELECTRIC COMPANY 71,713,752
12,986 HARMAN INTERNATIONAL INDUSTRIES INCORPORATED 1,443,134
1,163,754 INTEL CORPORATION 22,518,640
34,535 JABIL CIRCUIT INCORPORATED+ 1,480,170
331,583 JDS UNIPHASE CORPORATION<<+ 1,382,701
39,469 KLA-TENCOR CORPORATION<< 1,908,721
23,988 L-3 COMMUNICATIONS HOLDINGS INCORPORATED 2,057,931
60,471 LINEAR TECHNOLOGY CORPORATION 2,121,323
101
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT (CONTINUED)
77,484 LSI LOGIC CORPORATION+ $ 895,715
884,079 LUCENT TECHNOLOGIES INCORPORATED<<+ 2,696,441
63,420 MAXIM INTEGRATED PRODUCTS INCORPORATED 2,356,053
15,910 MAYTAG CORPORATION 339,360
122,409 MICRON TECHNOLOGY INCORPORATED+ 1,801,861
28,186 MOLEX INCORPORATED 935,775
494,464 MOTOROLA INCORPORATED 11,328,170
66,760 NATIONAL SEMICONDUCTOR CORPORATION 1,858,598
74,015 NETWORK APPLIANCE INCORPORATED+ 2,666,760
26,384 NOVELLUS SYSTEMS INCORPORATED<<+ 633,216
33,861 NVIDIA CORPORATION+ 1,938,881
36,750 PMC-SIERRA INCORPORATED+ 451,658
31,917 QLOGIC CORPORATION+ 617,594
327,641 QUALCOMM INCORPORATED 16,581,911
34,080 ROCKWELL COLLINS INCORPORATED 1,920,408
105,271 SANMINA-SCI CORPORATION+ 431,611
89,095 TELLABS INCORPORATED+ 1,416,611
316,574 TEXAS INSTRUMENTS INCORPORATED 10,279,158
13,458 WHIRLPOOL CORPORATION 1,231,003
68,200 XILINX INCORPORATED 1,736,372
218,446,118
---------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES - 0.40%
17,175 FLUOR CORPORATION<< 1,473,615
48,121 MOODY'S CORPORATION 3,438,727
66,079 PAYCHEX INCORPORATED 2,752,851
32,181 QUEST DIAGNOSTICS INCORPORATED 1,650,885
9,316,078
---------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT - 0.33%
20,629 BALL CORPORATION 904,169
28,949 FORTUNE BRANDS INCORPORATED 2,334,158
40,566 ILLINOIS TOOL WORKS INCORPORATED 3,906,911
11,533 SNAP-ON INCORPORATED 439,638
7,584,876
---------------
FINANCIAL SERVICES - 0.04%
42,486 JANUS CAPITAL GROUP INCORPORATED 984,401
---------------
FOOD & KINDRED PRODUCTS - 3.05%
153,577 ANHEUSER-BUSCH COMPANIES INCORPORATED<< 6,568,488
129,334 ARCHER-DANIELS-MIDLAND COMPANY 4,352,089
36,454 CAMPBELL SOUP COMPANY 1,181,110
60,021 COCA-COLA ENTERPRISES INCORPORATED 1,220,827
102,718 CONAGRA FOODS INCORPORATED 2,204,328
38,999 CONSTELLATION BRANDS INCORPORATED CLASS A<<+ 976,925
70,458 GENERAL MILLS INCORPORATED 3,570,812
22,330 HERCULES INCORPORATED<<+ 308,154
102
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
FOOD & KINDRED PRODUCTS (CONTINUED)
35,451 HERSHEY FOODS CORPORATION $ 1,851,606
66,270 HJ HEINZ COMPANY 2,512,958
49,729 KELLOGG COMPANY 2,190,065
26,233 MCCORMICK & COMPANY INCORPORATED 888,249
11,354 MOLSON COORS BREWING COMPANY 779,112
26,749 PEPSI BOTTLING GROUP INCORPORATED 812,902
327,735 PEPSICO INCORPORATED 18,939,806
150,369 SARA LEE CORPORATION<< 2,688,598
407,513 THE COCA-COLA COMPANY<< 17,062,569
49,842 TYSON FOODS INCORPORATED CLASS A 684,829
35,104 WM. WRIGLEY JR. COMPANY<< 2,246,656
71,040,083
---------------
FOOD STORES - 0.62%
72,954 ALBERTSON'S INCORPORATED 1,872,729
143,512 KROGER COMPANY 2,921,905
88,958 SAFEWAY INCORPORATED 2,234,625
151,005 STARBUCKS CORPORATION+ 5,683,828
27,482 WHOLE FOODS MARKET INCORPORATED 1,825,904
14,538,991
---------------
FORESTRY - 0.15%
48,120 WEYERHAEUSER COMPANY 3,485,332
---------------
FURNITURE & FIXTURES - 0.21%
36,079 LEGGETT & PLATT INCORPORATED 879,245
82,351 MASCO CORPORATION 2,675,584
54,300 NEWELL RUBBERMAID INCORPORATED<< 1,367,817
4,922,646
---------------
GENERAL MERCHANDISE STORES - 1.98%
22,539 BIG LOTS INCORPORATED<<+ 314,645
62,634 DOLLAR GENERAL CORPORATION 1,106,743
30,715 FAMILY DOLLAR STORES INCORPORATED 817,019
53,848 FEDERATED DEPARTMENT STORES INCORPORATED 3,930,904
45,941 JC PENNEY COMPANY INCORPORATED 2,775,296
19,743 SEARS HOLDINGS CORPORATION<<+ 2,610,814
173,917 TARGET CORPORATION 9,045,423
91,132 TJX COMPANIES INCORPORATED 2,261,896
494,164 WAL-MART STORES INCORPORATED 23,344,307
46,207,047
---------------
HEALTH SERVICES - 0.54%
88,748 CAREMARK RX INCORPORATED+ 4,364,627
80,695 HCA INCORPORATED<< 3,695,024
47,604 HEALTH MANAGEMENT ASSOCIATION INCORPORATED CLASS A 1,026,818
24,786 LABORATORY CORPORATION OF AMERICA HOLDINGS+ 1,449,485
15,641 MANOR CARE INCORPORATED 693,678
103
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
HEALTH SERVICES (CONTINUED)
93,034 TENET HEALTHCARE CORPORATION+ $ 686,591
20,104 WATSON PHARMACEUTICALS INCORPORATED+ 577,789
12,494,012
---------------
HOLDING & OTHER INVESTMENT OFFICES - 0.95%
19,102 APARTMENT INVESTMENT & MANAGEMENT COMPANY CLASS A 895,884
42,195 ARCHSTONE-SMITH TRUST 2,057,850
17,750 BOSTON PROPERTIES INCORPORATED 1,655,188
80,347 EQUITY OFFICE PROPERTIES TRUST 2,698,052
57,450 EQUITY RESIDENTIAL 2,688,085
39,728 KIMCO REALTY CORPORATION 1,614,546
36,461 PLUM CREEK TIMBER COMPANY<< 1,346,505
48,167 PROLOGIS 2,576,934
16,355 PUBLIC STORAGE INCORPORATED<< 1,328,517
36,185 SIMON PROPERTY GROUP INCORPORATED<< 3,044,606
23,473 VORNADO REALTY TRUST<< 2,253,408
22,159,575
---------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 0.34%
55,478 BED BATH & BEYOND INCORPORATED+ 2,130,355
80,439 BEST BUY COMPANY INCORPORATED 4,498,954
30,117 CIRCUIT CITY STORES INCORPORATED 737,264
26,631 RADIO SHACK CORPORATION 512,114
7,878,687
---------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 0.29%
65,192 HILTON HOTELS CORPORATION 1,659,788
32,091 MARRIOTT INTERNATIONAL INCORPORATED CLASS A 2,201,443
42,695 STARWOOD HOTELS & RESORTS WORLDWIDE INCORPORATED 2,891,732
6,752,963
---------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 5.58%
149,349 3M COMPANY 11,304,226
35,259 AMERICAN STANDARD COMPANIES INCORPORATED 1,511,201
168,476 APPLE COMPUTER INCORPORATED+ 10,566,815
313,850 APPLIED MATERIALS INCORPORATED<< 5,495,514
67,706 BAKER HUGHES INCORPORATED<< 4,631,090
15,308 BLACK & DECKER CORPORATION 1,330,112
132,708 CATERPILLAR INCORPORATED<< 9,529,762
9,189 CUMMINS INCORPORATED<< 965,764
46,862 DEERE & COMPANY 3,704,441
465,565 DELL INCORPORATED+ 13,855,214
40,216 DOVER CORPORATION 1,952,889
29,454 EATON CORPORATION<< 2,149,258
470,160 EMC CORPORATION+ 6,408,281
52,279 GATEWAY INCORPORATED+ 114,491
559,508 HEWLETT-PACKARD COMPANY 18,407,813
64,780 INGERSOLL-RAND COMPANY CLASS A 2,707,156
104
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (CONTINUED)
310,040 INTERNATIONAL BUSINESS MACHINES CORPORATION<< $ 25,568,999
21,421 LEXMARK INTERNATIONAL INCORPORATED<<+ 972,085
34,562 NATIONAL-OILWELL VARCO INCORPORATED<<+ 2,216,115
24,711 PALL CORPORATION 770,736
23,684 PARKER HANNIFIN CORPORATION 1,909,167
44,900 PITNEY BOWES INCORPORATED<< 1,927,557
180,915 SOLECTRON CORPORATION+ 723,660
14,330 STANLEY WORKS 725,958
50,044 SYMBOL TECHNOLOGIES INCORPORATED 529,466
129,977,770
---------------
INSURANCE AGENTS, BROKERS & SERVICE - 0.44%
63,688 AON CORPORATION<< 2,643,689
32,340 HUMANA INCORPORATED+ 1,702,701
26,906 JEFFERSON-PILOT CORPORATION 1,505,121
108,205 MARSH & MCLENNAN COMPANIES INCORPORATED 3,176,899
59,075 UNUMPROVIDENT CORPORATION<< 1,209,856
10,238,266
---------------
INSURANCE CARRIERS - 5.81%
63,761 ACE LIMITED 3,316,210
112,181 AETNA INCORPORATED 5,512,574
98,546 AFLAC INCORPORATED 4,447,381
127,588 ALLSTATE CORPORATION 6,648,611
20,874 AMBAC FINANCIAL GROUP INCORPORATED 1,661,570
513,454 AMERICAN INTERNATIONAL GROUP INCORPORATED 33,934,175
39,545 CHUBB CORPORATION 3,774,175
23,949 CIGNA CORPORATION 3,128,218
34,441 CINCINNATI FINANCIAL CORPORATION 1,448,933
74,531 GENWORTH FINANCIAL INCORPORATED 2,491,571
59,831 HARTFORD FINANCIAL SERVICES GROUP INCORPORATED 4,819,387
34,269 LINCOLN NATIONAL CORPORATION<< 1,870,745
26,842 LOEWS CORPORATION 2,716,410
26,509 MBIA INCORPORATED<< 1,593,986
149,937 METLIFE INCORPORATED 7,252,453
17,307 MGIC INVESTMENT CORPORATION<< 1,153,166
55,289 PRINCIPAL FINANCIAL GROUP INCORPORATED 2,698,103
38,912 PROGRESSIVE CORPORATION 4,056,965
97,919 PRUDENTIAL FINANCIAL INCORPORATED 7,423,239
24,385 SAFECO CORPORATION 1,224,371
137,663 ST. PAUL TRAVELERS COMPANIES INCORPORATED 5,752,937
20,487 TORCHMARK CORPORATION 1,169,808
268,296 UNITEDHEALTH GROUP INCORPORATED 14,987,015
130,558 WELLPOINT INCORPORATED+ 10,109,106
34,503 XL CAPITAL LIMITED CLASS A 2,211,987
135,403,096
---------------
105
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
LEATHER & LEATHER PRODUCTS - 0.11%
75,834 COACH INCORPORATED+ $ 2,622,340
---------------
LUMBER & WOOD PRODUCTS, EXCEPT FURNITURE - 0.02%
20,975 LOUISIANA-PACIFIC CORPORATION<< 570,520
---------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 2.93%
84,815 AGILENT TECHNOLOGIES INCORPORATED+ 3,184,803
29,998 ALLERGAN INCORPORATED<< 3,254,783
36,254 APPLERA CORPORATION-APPLIED BIOSYSTEMS GROUP 983,934
10,636 BAUSCH & LOMB INCORPORATED 677,513
128,280 BAXTER INTERNATIONAL INCORPORATED 4,978,547
48,927 BECTON DICKINSON & COMPANY 3,012,925
48,964 BIOMET INCORPORATED+ 1,739,201
117,014 BOSTON SCIENTIFIC CORPORATION<<+ 2,697,173
20,574 C.R. BARD INCORPORATED 1,395,123
46,929 DANAHER CORPORATION 2,982,338
56,815 EASTMAN KODAK COMPANY<< 1,615,819
24,410 FISHER SCIENTIFIC INTERNATIONAL INCORPORATED<<+ 1,661,100
67,031 GUIDANT CORPORATION<< 5,232,440
238,766 MEDTRONIC INCORPORATED 12,117,374
10,300 MILLIPORE CORPORATION+ 752,518
25,873 PERKINELMER INCORPORATED 607,239
88,248 RAYTHEON COMPANY 4,045,288
35,059 ROCKWELL AUTOMATION INCORPORATED 2,521,093
72,515 ST. JUDE MEDICAL INCORPORATED+ 2,973,115
57,803 STRYKER CORPORATION<< 2,562,985
16,143 TEKTRONIX INCORPORATED 576,467
39,186 TERADYNE INCORPORATED+ 607,775
32,080 THERMO ELECTRON CORPORATION+ 1,189,847
20,675 WATERS CORPORATION+ 892,126
184,228 XEROX CORPORATION<<+ 2,800,266
49,012 ZIMMER HOLDINGS INCORPORATED<<+ 3,313,211
68,375,003
---------------
MEDICAL MANAGEMENT SERVICES - 0.07%
31,714 COVENTRY HEALTH CARE INCORPORATED+ 1,711,922
---------------
MEMBERSHIP ORGANIZATIONS - 0.00%
4,627 TRONOX INC COMMON CLASS B+ 78,606
---------------
METAL MINING - 0.43%
36,407 FREEPORT-MCMORAN COPPER & GOLD INCORPORATED CLASS B 2,176,047
88,381 NEWMONT MINING CORPORATION 4,586,090
40,261 PHELPS DODGE CORPORATION 3,242,218
10,004,355
---------------
MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS - 0.07%
19,859 VULCAN MATERIALS COMPANY 1,720,782
---------------
106
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MISCELLANEOUS MANUFACTURING INDUSTRIES - 2.09%
35,208 HASBRO INCORPORATED $ 742,889
588,715 JOHNSON & JOHNSON 34,863,702
76,899 MATTEL INCORPORATED<< 1,394,179
28,138 TIFFANY & COMPANY<< 1,056,300
398,676 TYCO INTERNATIONAL LIMITED 10,716,411
48,773,481
---------------
MISCELLANEOUS RETAIL - 1.26%
61,030 AMAZON.COM INCORPORATED+<< 2,228,205
93,598 COSTCO WHOLESALE CORPORATION 5,069,268
161,697 CVS CORPORATION 4,829,889
12,185 DILLARDS INCORPORATED CLASS A 317,297
28,954 EXPRESS SCRIPTS INCORPORATED<<+ 2,545,057
58,491 OFFICE DEPOT INCORPORATED+ 2,178,205
144,144 STAPLES INCORPORATED 3,678,555
200,207 WALGREEN COMPANY 8,634,928
29,481,404
---------------
MOTION PICTURES - 1.44%
474,853 NEWS CORPORATION CLASS A 7,887,308
891,222 TIME WARNER INCORPORATED 14,963,618
380,962 WALT DISNEY COMPANY<< 10,625,030
33,475,956
---------------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING - 0.74%
216,039 UNITED PARCEL SERVICE INCORPORATED CLASS B 17,149,176
---------------
NON-DEPOSITORY CREDIT INSTITUTIONS - 2.00%
244,829 AMERICAN EXPRESS COMPANY 12,865,764
59,563 CAPITAL ONE FINANCIAL CORPORATION<< 4,796,013
39,518 CIT GROUP INCORPORATED 2,115,003
119,282 COUNTRYWIDE FINANCIAL CORPORATION<< 4,377,649
191,467 FANNIE MAE 9,841,404
136,691 FREDDIE MAC 8,338,151
82,551 SLM CORPORATION 4,287,699
46,621,683
---------------
OIL & GAS EXTRACTION - 3.36%
45,585 ANADARKO PETROLEUM CORPORATION 4,604,541
65,340 APACHE CORPORATION 4,280,424
64,124 BJ SERVICES COMPANY 2,218,690
74,354 BURLINGTON RESOURCES INCORPORATED 6,833,876
73,908 CHESAPEAKE ENERGY CORPORATION 2,321,450
87,408 DEVON ENERGY CORPORATION 5,346,747
47,980 EOG RESOURCES INCORPORATED 3,454,560
102,120 HALLIBURTON COMPANY 7,456,803
22,945 KERR-MCGEE CORPORATION 2,190,789
31,258 NABORS INDUSTRIES LIMITED+ 2,237,448
107
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
OIL & GAS EXTRACTION (CONTINUED)
27,130 NOBLE CORPORATION<< $ 2,200,243
85,212 OCCIDENTAL PETROLEUM CORPORATION 7,894,892
21,623 ROWAN COMPANIES INCORPORATED<<+ 950,547
116,883 SCHLUMBERGER LIMITED 14,793,881
64,481 TRANSOCEAN INCORPORATED<<+ 5,177,824
68,999 WEATHERFORD INTERNATIONAL LIMITED+ 3,156,704
71,846 XTO ENERGY INCORPORATED 3,130,330
78,249,749
---------------
PAPER & ALLIED PRODUCTS - 0.53%
20,830 BEMIS COMPANY INCORPORATED 657,811
97,443 INTERNATIONAL PAPER COMPANY 3,368,605
91,163 KIMBERLY-CLARK CORPORATION 5,269,221
35,897 MEADWESTVACO CORPORATION 980,347
14,015 OFFICEMAX INCORPORATED 422,833
28,343 PACTIV CORPORATION+ 695,537
21,929 TEMPLE-INLAND INCORPORATED 976,937
12,371,291
---------------
PERSONAL SERVICES - 0.11%
27,253 CINTAS CORPORATION 1,161,523
64,812 H & R BLOCK INCORPORATED 1,403,180
2,564,703
---------------
PETROLEUM REFINING & RELATED INDUSTRIES - 5.84%
15,832 AMERADA HESS CORPORATION 2,254,477
14,097 ASHLAND INCORPORATED 1,002,015
440,371 CHEVRONTEXACO CORPORATION 25,528,307
272,695 CONOCOPHILLIPS<< 17,220,689
1,207,933 EXXON MOBIL CORPORATION 73,514,802
72,560 MARATHON OIL CORPORATION 5,526,895
32,663 MURPHY OIL CORPORATION 1,627,271
26,342 SUNOCO INCORPORATED 2,043,349
123,009 VALERO ENERGY CORPORATION 7,353,478
136,071,283
---------------
PRIMARY METAL INDUSTRIES - 0.51%
172,460 ALCOA INCORPORATED 5,270,378
17,102 ALLEGHENY TECHNOLOGIES INCORPORATED 1,046,300
24,481 ENGELHARD CORPORATION 969,693
30,742 NUCOR CORPORATION 3,221,454
21,528 UNITED STATES STEEL CORPORATION 1,306,319
11,814,144
---------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 0.97%
152,855 CBS CORPORATION CLASS B 3,665,463
11,678 DOW JONES & COMPANY INCORPORATED<< 458,945
16,827 E.W. SCRIPPS COMPANY CLASS A 752,335
108
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
PRINTING, PUBLISHING & ALLIED INDUSTRIES (CONTINUED)
47,095 GANNETT COMPANY INCORPORATED<< $ 2,821,933
13,253 KNIGHT-RIDDER INCORPORATED<< 837,722
72,634 MCGRAW-HILL COMPANIES INCORPORATED 4,185,171
8,282 MEREDITH CORPORATION 462,053
28,721 NEW YORK TIMES COMPANY CLASS A<< 726,929
42,720 RR DONNELLEY & SONS COMPANY 1,397,798
51,791 TRIBUNE COMPANY 1,420,627
152,866 VIACOM INCORPORATED CLASS B+ 5,931,201
22,660,177
---------------
RAILROAD TRANSPORTATION - 0.77%
73,777 BURLINGTON NORTHERN SANTA FE CORPORATION 6,147,837
43,407 CSX CORPORATION<< 2,595,739
81,547 NORFOLK SOUTHERN CORPORATION 4,409,246
52,409 UNION PACIFIC CORPORATION 4,892,380
18,045,202
---------------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS - 0.07%
12,131 COOPER TIRE & RUBBER COMPANY 173,959
16,101 SEALED AIR CORPORATION 931,765
35,009 THE GOODYEAR TIRE & RUBBER COMPANY<<+ 506,930
1,612,654
---------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 2.82%
49,582 AMERIPRISE FINANCIAL INCORPORATED 2,234,165
23,612 BEAR STEARNS COMPANIES INCORPORATED 3,274,984
204,117 CHARLES SCHWAB CORPORATION 3,512,854
82,669 E*TRADE FINANCIAL CORPORATION+ 2,230,410
16,663 FEDERATED INVESTORS INCORPORATED CLASS B 650,690
30,188 FRANKLIN RESOURCES INCORPORATED 2,844,917
86,248 GOLDMAN SACHS GROUP INCORPORATED 13,537,486
53,491 LEHMAN BROTHERS HOLDINGS INCORPORATED 7,731,054
181,656 MERRILL LYNCH & COMPANY INCORPORATED 14,307,226
212,412 MORGAN STANLEY 13,343,722
26,119 T. ROWE PRICE GROUP INCORPORATED 2,042,767
65,710,275
---------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 0.35%
305,820 CORNING INCORPORATED+ 8,229,616
---------------
TOBACCO PRODUCTS - 1.39%
412,833 ALTRIA GROUP INCORPORATED 29,253,346
16,921 REYNOLDS AMERICAN INCORPORATED<< 1,785,165
32,356 UST INCORPORATED 1,346,010
32,384,521
---------------
109
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
TRANSPORTATION BY AIR - 0.40%
60,112 FEDEX CORPORATION $ 6,789,050
140,074 SOUTHWEST AIRLINES COMPANY 2,519,931
9,308,981
---------------
TRANSPORTATION EQUIPMENT - 2.90%
158,329 BOEING COMPANY 12,338,579
18,796 BRUNSWICK CORPORATION 730,413
368,757 FORD MOTOR COMPANY<< 2,935,306
79,182 GENERAL DYNAMICS CORPORATION 5,066,065
111,866 GENERAL MOTORS CORPORATION<< 2,379,390
34,205 GENUINE PARTS COMPANY<< 1,499,205
24,412 GOODRICH CORPORATION 1,064,607
53,911 HARLEY-DAVIDSON INCORPORATED<< 2,796,903
164,308 HONEYWELL INTERNATIONAL INCORPORATED 7,027,453
36,538 ITT INDUSTRIES INCORPORATED 2,054,166
38,410 JOHNSON CONTROLS INCORPORATED 2,916,471
70,871 LOCKHEED MARTIN CORPORATION 5,324,538
12,204 NAVISTAR INTERNATIONAL CORPORATION+ 336,586
69,375 NORTHROP GRUMMAN CORPORATION 4,737,619
33,488 PACCAR INCORPORATED 2,360,234
26,185 TEXTRON INCORPORATED 2,445,417
200,868 UNITED TECHNOLOGIES CORPORATION 11,644,318
67,657,270
---------------
TRANSPORTATION SERVICES - 0.03%
26,081 SABRE HOLDINGS CORPORATION 613,686
---------------
WATER TRANSPORTATION - 0.17%
85,887 CARNIVAL CORPORATION<< 4,068,467
---------------
WHOLESALE TRADE NON-DURABLE GOODS - 1.08%
41,347 AMERISOURCEBERGEN CORPORATION 1,995,820
16,450 BROWN-FORMAN CORPORATION CLASS B 1,266,157
83,468 CARDINAL HEALTH INCORPORATED 6,220,035
26,842 DEAN FOODS COMPANY+ 1,042,275
60,556 MCKESSON CORPORATION 3,156,784
60,216 MEDCO HEALTH SOLUTIONS INCORPORATED+ 3,445,560
37,439 NIKE INCORPORATED CLASS B 3,186,059
26,939 SUPERVALU INCORPORATED<< 830,260
122,510 SYSCO CORPORATION 3,926,445
25,069,395
---------------
WHOLESALE TRADE DURABLE GOODS - 0.09%
27,425 PATTERSON COMPANIES INCORPORATED+ 965,360
15,124 W.W. GRAINGER INCORPORATED 1,139,593
2,104,953
---------------
TOTAL COMMON STOCKS (COST $1,832,740,086) 2,326,477,440
---------------
110
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
RIGHTS - 0.00%
32,300 SEAGATE TECHNOLOGY RIGHTS(A) $ 0
TOTAL RIGHTS (COST $0) 0
---------------
COLLATERAL FOR SECURITIES LENDING - 10.67%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.01%
85,895 SCUDDER DAILY ASSETS MONEY MARKET FUND 85,895
65,084 SHORT TERM INVESTMENT COMPANY MONEY MARKET FUND 65,084
150,979
---------------
PRINCIPAL INTEREST RATE MATURITY DATE
COLLATERAL INVESTED IN OTHER ASSETS - 10.66%
$ 900,300 AMERICAN GENERAL FINANCE CORPORATION+/- 4.78% 04/13/2007 900,669
374,825 APRECO LLC 4.62 05/15/2006 372,730
820,373 APRECO LLC 4.94 06/15/2006 812,293
500,167 ASPEN FUNDING CORPORATION 4.92 04/03/2006 500,167
5,001,667 ATLAS CAPITAL FUNDING CORPORATION SERIES MTN+/- 4.62 11/03/2006 5,001,667
563,088 ATLAS CAPITAL FUNDING LIMITED 4.80 04/17/2006 562,046
1,200,400 ATLAS CAPITAL FUNDING LIMITED 4.62 05/15/2006 1,193,690
2,500,833 ATLAS CAPITAL FUNDING LIMITED+/- 4.80 10/20/2006 2,500,833
2,500,833 ATLAS CAPITAL FUNDING LIMITED+/- 4.80 12/22/2006 2,500,833
400,133 ATOMIUM FUNDING CORPORATION 4.53 04/12/2006 399,657
347,016 BETA FINANCE INCORPORATED SERIES MTN+/- 4.88 06/02/2006 347,061
49,816,601 BNP PARIBAS REPURCHASE AGREEMENT
(MATURITY VALUE $ 49,837,067) 4.93 04/03/2006 49,816,601
1,484,895 BUCKINGHAM CDO LLC++ 4.60 04/06/2006 1,484,301
4,868,222 BUCKINGHAM CDO LLC 4.82 04/21/2006 4,856,636
2,500,833 BUCKINGHAM CDO LLC 4.82 04/25/2006 2,493,556
2,600,867 BUCKINGHAM II CDO LLC++ 4.83 04/25/2006 2,593,298
10,003,334 BUCKINGHAM II CDO LLC 4.83 04/26/2006 9,972,924
3,001,000 CAIRN HIGH GRADE FUNDING I 4.59 04/06/2006 2,999,800
240,080 CAIRN HIGH GRADE FUNDING I 4.71 04/26/2006 239,350
4,201,400 CAIRN HIGH GRADE FUNDING I 4.83 04/27/2006 4,188,082
2,500,833 CAIRN HIGH GRADE FUNDING I++ 4.83 05/02/2006 2,491,255
1,300,433 CAIRN HIGH GRADE FUNDING I 4.77 05/10/2006 1,294,035
5,030,176 CEDAR SPRINGS CAPITAL COMPANY LLC 4.78 04/05/2006 5,028,869
1,380,460 CEDAR SPRINGS CAPITAL COMPANY LLC 4.69 05/08/2006 1,374,027
444,848 CEDAR SPRINGS CAPITAL COMPANY LLC 4.70 05/10/2006 442,660
2,000,667 CEDAR SPRINGS CAPITAL COMPANY LLC 4.72 05/12/2006 1,990,283
1,000,333 CEDAR SPRINGS CAPITAL COMPANY LLC 4.90 06/07/2006 991,560
2,662,387 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.92 06/12/2006 2,637,228
5,501,833 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.72 04/12/2006 5,501,834
1,000,333 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.75 04/18/2007 1,000,333
3,521,173 CONSOLIDATED EDISON INCORPORATED 4.90 04/03/2006 3,521,173
250,083 CORPORATE ASSET SECURITIZATION AUSTRALIA LIMITED 4.81 04/13/2006 249,753
3,101,033 CREDIT SUISSE FIRST BOSTON NEW YORK SERIES YCD1+/- 4.92 05/04/2006 3,099,483
2,500,833 CULLINAN FINANCE CORPORATION+/- 4.71 11/15/2006 2,500,733
2,000,667 DEER VALLEY FUNDING LLC++ 4.51 04/10/2006 1,998,806
111
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 2,556,352 DEER VALLEY FUNDING LLC 4.81% 04/17/2006 $ 2,551,623
6,094,731 DEER VALLEY FUNDING LLC 4.83 04/19/2006 6,081,810
1,300,433 DEER VALLEY FUNDING LLC 4.80 05/03/2006 1,295,271
5,001,667 DEUTSCHE BANK REPURCHASE AGREEMENT
(MATURITY VALUE $ 5,003,684) 4.84 04/03/2006 5,001,667
4,790,496 EIFFEL FUNDING LLC 4.91 04/03/2006 4,790,496
300,100 EIFFEL FUNDING LLC 4.78 04/17/2006 299,545
3,603,301 EUREKA SECURITIZATION INCORPORATED 4.88 05/16/2006 3,582,690
82,427 GALLEON CAPITAL LLC 4.65 04/03/2006 82,428
150,050 GEMINI SECURITIZATION INCORPORATED 4.90 05/24/2006 149,028
2,400,800 GOLDMAN SACHS GROUP INCORPORATED+/- 4.97 06/30/2006 2,400,800
7,167,389 HARRIER FINANCE FUNDING LLC 4.62 04/03/2006 7,167,389
1,600,533 ING USA ANNUITY & LIFE INSURANCE+/- 5.03 06/06/2006 1,600,533
20,087,670 JP MORGAN CHASE SECURITIES CORPORATION REPURCHASE AGREEMENT
(MATURITY VALUE $ 20,095,923) 4.93 04/03/2006 20,087,670
130,043 K2 (USA) LLC 4.63 05/02/2006 129,545
462,654 K2 (USA) LLC SERIES MTN+/- 4.87 07/24/2006 462,770
1,500,500 KAUPTHING BANK HF SERIES MTN+/-++ 4.84 03/20/2007 1,500,200
200,067 KLIO II FUNDING CORPORATION 4.58 04/05/2006 200,015
241,080 KLIO III FUNDING CORPORATION 4.69 04/19/2006 240,569
100,033 LEXINGTON PARKER CAPITAL CORPORATION 4.62 05/02/2006 99,650
379,727 LEXINGTON PARKER CAPITAL CORPORATION 4.69 05/10/2006 377,858
2,500,833 LIBERTY LIGHT US CAPITAL SERIES MTN+/- 4.81 05/26/2006 2,500,983
200,067 LINKS FINANCE LLC SERIES MTN1+/- 4.68 09/12/2006 200,069
600,200 LIQUID FUNDING LIMITED+/- 4.94 04/24/2006 600,224
2,300,767 LIQUID FUNDING LIMITED+/- 4.71 08/14/2006 2,300,767
1,500,500 LIQUID FUNDING LIMITED+/- 4.61 12/01/2006 1,500,500
600,200 LIQUID FUNDING LIMITED SERIES MTN+/- 4.83 02/20/2007 600,170
1,000,333 MBIA GLOBAL FUNDING LLC+/- 4.78 02/20/2007 1,000,273
5,026,675 MERRILL LYNCH & COMPANY SERIES MTN+/- 4.80 10/27/2006 5,030,445
3,001,000 MORGAN STANLEY+/- 4.94 10/10/2006 3,001,000
462,654 MORGAN STANLEY SERIES EXL+/- 4.78 08/13/2010 462,779
1,722,474 MORTGAGE INTEREST NET TRUST 4.68 04/03/2006 1,722,474
2,260,753 MORTGAGE INTEREST NET TRUST 4.78 05/03/2006 2,251,778
100,033 NATIONWIDE BUILDING SOC+/- 4.74 07/21/2006 100,081
2,206,035 NEWPORT FUNDING CORPORATION 4.92 04/03/2006 2,206,035
3,028,909 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 4.78 04/03/2006 3,028,909
3,501,167 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.68 04/04/2006 3,500,712
445,949 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.93 06/26/2006 440,892
190,063 NORDEA NORTH AMERICA INCORPORATED 4.89 05/15/2006 189,001
5,276,758 NORTHERN ROCK PLC+/- 4.63 04/21/2006 5,276,020
395,432 NORTHERN ROCK PLC 4.69 04/24/2006 394,333
5,001,667 NORTHERN ROCK PLC+/- 4.66 02/05/2007 5,001,717
404,635 RACERS TRUST 2004-6-MM+/- 4.79 05/22/2006 404,692
100,033 SCALDIS CAPITAL LIMITED 4.93 06/15/2006 99,048
400,133 TANGO FINANCE CORPORATION 4.95 06/21/2006 395,868
1,156,685 TANGO FINANCE CORPORATION SERIES MTN+/- 4.87 10/25/2006 1,157,067
112
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 578,293 TRAVELERS INSURANCE COMPANY+/- 4.77% 02/09/2007 $ 578,281
2,500,833 UNICREDITO ITALIANO SERIES LIB+/- 4.70 03/09/2007 2,500,683
2,500,833 UNICREDITO ITALIANO SERIES YCD+/- 4.47 04/03/2006 2,500,833
3,801,267 US BANK NA SERIES BKNT+/- 4.66 07/28/2006 3,801,381
1,000,333 WHISTLEJACKET CAPITAL LIMITED+/- 4.65 06/09/2006 1,000,333
100,033 WHITE PINE FINANCE LLC 4.64 04/18/2006 99,835
500,167 WHITE PINE FINANCE LLC 4.82 05/05/2006 498,036
408,336 WHITE PINE FINANCE LLC 4.84 05/25/2006 405,498
307,302 WHITE PINE FINANCE LLC 4.93 06/20/2006 304,067
2,639,780 WHITE PINE FINANCE LLC 4.93 06/22/2006 2,611,270
2,500,833 WHITE PINE FINANCE LLC+/- 4.70 07/17/2006 2,500,833
2,400,800 WHITE PINE FINANCE LLC SERIES MTN1+/- 4.81 06/12/2006 2,401,016
248,527,686
---------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $248,678,665) 248,678,665
---------------
SHORT-TERM INVESTMENTS - 0.96%
SHARES
MUTUAL FUND - 0.90%
20,878,671 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~@ 20,878,671
---------------
PRINCIPAL
US TREASURY BILLS - 0.06%
$ 95,000 US TREASURY BILL^# 4.16 05/11/2006 94,560
1,385,000 US TREASURY BILL^# 4.48 08/10/2006 1,362,507
1,457,067
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $22,336,023) 22,335,738
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $2,103,754,774)* 111.42% $ 2,597,491,843
OTHER ASSETS AND LIABILITIES, NET (11.42) (266,225,840)
------ ---------------
TOTAL NET ASSETS 100.00% $ 2,331,266,003
====== ===============
<< ALL OR A PORTION OF THIS SECURITY IS ON LOAN. (SEE NOTE 2)
+ NON-INCOME EARNING SECURITIES.
(A) SECURITY FAIR VALUED IN ACCORDANCE WITH THE PROCEDURES APPROVED BY THE
BOARD OF TRUSTEES.
+/- VARIABLE RATE INVESTMENTS.
++ SECURITIES THAT MAY BE RESOLD TO "QUALIFIED INSTITUTIONAL BUYERS" UNDER
RULE 144A OR SECURITIES OFFERED PURSUANT TO SECTION 4 (2) OF THE
SECURITIES ACT OF 1933, AS AMENDED.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
@ SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $33,742,234.
^ ZERO COUPON BOND. INTEREST RATE PRESENTED IS YIELD TO MATURITY.
# SECURITY PLEDGED AS COLLATERAL FOR FUTURES TRANSACTIONS.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
113
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL CORE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 95.77%
AUSTRALIA - 3.37%
61,000 ORICA LIMITED (MISCELLANEOUS MANUFACTURING INDUSTRIES) $ 1,012,706
98,557 PUBLISHING & BROADCASTING LIMITED (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 1,220,637
27,202 RIO TINTO LIMITED (METAL MINING) 1,535,520
121,000 WESTFIELD GROUP (PROPERTIES) 1,481,271
11,527 WOODSIDE PETROLEUM LIMITED (OIL & GAS EXTRACTION) 375,310
5,625,444
---------------
BELGIUM - 1.11%
51,800 FORTIS (DEPOSITORY INSTITUTIONS) 1,850,583
---------------
CHINA - 0.50%
968,000 YANZHOU COAL MINING COMPANY LIMITED (RUBBER & MISCELLANEOUS PLASTICS PRODUCTS) 842,103
---------------
DENMARK - 0.82%
36,900 DANSKE BANK A/S (DEPOSITORY INSTITUTIONS) 1,369,263
---------------
FRANCE - 13.69%
106,700 ALCATEL SA (COMMUNICATIONS) 1,651,227
19,100 ALSTOM RGPT (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT)+ 1,601,735
60,700 AXA SA (INSURANCE CARRIERS) 2,130,289
28,100 BOUYGUES SA (ENGINEERING CONSTRUCTION) 1,493,232
34,574 CAP GEMINI SA (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT)+ 1,883,767
25,600 CARREFOUR SA (FOOD STORES)+ 1,361,933
13,600 LAFARGE SA (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 1,540,997
31,100 SANOFI-AVENTIS SA (CHEMICALS & ALLIED PRODUCTS) 2,958,567
45,000 SUEZ SA (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 1,773,431
15,676 TECHNIP SA (OIL & GAS EXTRACTION) 1,060,986
13,850 TOTAL SA (PETROLEUM REFINING & RELATED INDUSTRIES) 3,653,924
51,300 VIVENDI UNIVERSAL SA (COMMUNICATIONS) 1,761,848
22,871,936
---------------
GERMANY - 6.97%
10,900 ALLIANZ AG (INSURANCE CARRIERS)+ 1,819,969
17,700 BAYERISCHE MOTOREN WERKE AG (AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS) 974,896
7,103 CELESIO AG (WHOLESALE TRADE DURABLE GOODS) 672,185
25,221 COMMERZBANK AG (DEPOSITORY INSTITUTIONS)+ 1,004,952
20,400 E.ON AG (ELECTRIC, GAS & SANITARY SERVICES) 2,244,994
10,300 FRESENIUS MEDICAL CARE AG (HEALTH SERVICES) 1,230,737
44,700 METRO AG (FOOD STORES) 2,291,933
6,500 SAP AG (BUSINESS SERVICES) 1,410,074
11,649,740
---------------
GREECE - 0.89%
40,303 ALPHA BANK AE (DEPOSITORY INSTITUTIONS) 1,488,688
---------------
HONG KONG - 4.37%
150,000 CHEUNG KONG HOLDINGS LIMITED (REAL ESTATE) 1,590,058
253,000 CHINA MOBILE (HONG KONG) LIMITED (COMMUNICATIONS) 1,328,721
114
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INTERNATIONAL CORE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
HONG KONG (CONTINUED)
1,361,000 CHINA PETROLEUM & CHEMICAL CORPORATION (SINOPEC) (OIL COMPANIES) $ 789,326
2,479,000 GUANGDONG INVESTMENT LIMITED (BUSINESS SERVICES) 1,110,241
159,940 SUN HUNG KAI PROPERTIES LIMITED (REAL ESTATE) 1,624,311
150,000 TELEVISION BROADCASTS LIMITED (MOTION PICTURES) 850,609
7,293,266
---------------
HUNGARY - 0.31%
7,560 OTP BANK GDR (DEPOSITORY INSTITUTIONS) 525,420
---------------
ITALY - 3.29%
94,342 ENI SPA (PETROLEUM REFINING & RELATED INDUSTRIES) 2,684,445
389,800 UNICREDITO ITALIANO SPA (DEPOSITORY INSTITUTIONS) 2,817,757
5,502,202
---------------
JAPAN - 23.09%
171,500 AEON COMPANY LIMITED (MISCELLANEOUS RETAIL) 4,160,004
21,000 DAIWA HOUSE INDUSTRY COMPANY LIMITED
(BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 363,976
138,000 KANEKA CORPORATION (CHEMICALS & ALLIED PRODUCTS) 1,654,359
64,000 KAO CORPORATION (CHEMICALS & ALLIED PRODUCTS) 1,685,642
5,280 KEYENCE CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS,
EXCEPT COMPUTER EQUIPMENT) 1,372,710
146 MILLEA HOLDINGS INCORPORATED (INSURANCE CARRIERS) 2,890,229
124,000 MITSUI SUMITOMO INSURANCE COMPANY LIMITED (INSURANCE CARRIERS) 1,686,695
25,700 MURATA MANUFACTURING COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS,
EXCEPT COMPUTER EQUIPMENT) 1,740,263
101,000 NIKKO CORDIAL CORPORATION (FINANCIAL) 1,673,322
286,000 NIPPON OIL CORPORATION (OIL & GAS EXTRACTION) 2,242,804
113,700 NOMURA HOLDINGS INCORPORATED (SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES) 2,535,790
1,038 NTT DOCOMO INCORPORATED (COMMUNICATIONS) 1,534,512
70,300 OMRON CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 2,018,811
38,000 SECOM COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 1,943,585
171,000 SEKISUI HOUSE LIMITED (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 2,551,198
95,000 SHARP CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 1,682,880
359,000 SHINSEI BANK LIMITED (DEPOSITORY INSTITUTIONS) 2,513,305
373,000 SUMITOMO TRUST & BANKING COMPANY LIMITED (DEPOSITORY INSTITUTIONS) 4,316,279
38,566,364
---------------
NETHERLANDS - 4.11%
20,273 AKZO NOBEL NV (CHEMICALS & ALLIED PRODUCTS) 1,075,832
80,300 ASML HOLDING NV (SEMICONDUCTOR EQUIPMENT MANUFACTURING & RELATED)+ 1,639,709
57,300 ING GROEP NV (FINANCIAL SERVICES) 2,263,724
75,700 WOLTERS KLUWER NV (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 1,887,959
6,867,224
---------------
NORWAY - 1.60%
2,013 ORKLA ASA (FOOD & KINDRED PRODUCTS) 99,827
88,900 STATOIL ASA (PETROLEUM REFINING & RELATED INDUSTRIES) 2,563,797
2,663,624
---------------
115
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL CORE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
RUSSIA - 1.72%
20,400 LUKOIL ADR (OIL & GAS EXTRACTION)+ $ 1,701,360
35,600 MOBILE TELESYSTEMS ADR (COMMUNICATIONS) 1,178,360
2,879,720
---------------
SINGAPORE - 0.60%
103,000 UNITED OVERSEAS BANK LIMITED (DEPOSITORY INSTITUTIONS) 994,399
---------------
SOUTH KOREA - 0.47%
1,520 SAMSUNG ELECTRONICS COMPANY LIMITED - PREFERRED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT &
COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 778,304
---------------
SPAIN - 1.77%
89,900 BANCO BILBAO VIZCAYA ARGENTARIA SA (DEPOSITORY INSTITUTIONS) 1,876,049
53,179 INDRA SISTEMAS SA (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 1,081,393
2,957,442
---------------
SWEDEN - 0.82%
71,000 SECURITAS AB (BUSINESS SERVICES) 1,367,401
---------------
SWITZERLAND - 6.45%
64,800 NOVARTIS AG (CHEMICALS & ALLIED PRODUCTS) 3,603,728
23,900 ROCHE HOLDING AG (HEALTH SERVICES) 3,558,463
15,500 UBS AG (FINANCIAL SERVICES) 1,702,604
8,100 ZURICH FINANCIAL SERVICES AG (FINANCIAL SERVICES)+ 1,902,830
10,767,625
---------------
THAILAND - 1.58%
660,000 ADVANCED INFORMATION SERVICE PUBLIC COMPANY LIMITED (FOREIGN REGISTERED) (COMMUNICATIONS) 1,553,441
387,500 BANGKOK BANK PUBLIC COMPANY LIMITED (DEPOSITORY INSTITUTIONS) 1,086,495
2,639,936
---------------
UNITED KINGDOM - 18.24%
25,301 ASTRAZENECA PLC (CHEMICALS & ALLIED PRODUCTS) 1,274,787
129,000 AVIVA PLC (INSURANCE CARRIERS) 1,791,884
197,000 BAE SYSTEMS PLC (TRANSPORTATION BY AIR) 1,440,098
217,500 BARCLAYS PLC (DEPOSITORY INSTITUTIONS) 2,545,064
109,200 EMAP PLC (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 1,671,477
196,600 GLAXOSMITHKLINE PLC (CHEMICALS & ALLIED PRODUCTS) 5,140,695
173,000 HSBC HOLDINGS PLC (DEPOSITORY INSTITUTIONS) 2,900,516
856,400 LEGAL & GENERAL GROUP PLC (INSURANCE CARRIERS) 2,112,841
163,519 ROLLS ROYCE GROUP PLC (AEROSPACE, DEFENSE) 1,301,174
8,797,322 ROLLS ROYCE GROUP PLC CLASS B (AEROSPACE, DEFENSE) 15,590
100,600 ROYAL DUTCH SHELL PLC CLASS A (OIL & GAS EXTRACTION) 3,142,603
200,045 SCOTTISH & NEWCASTLE PLC (FOOD & KINDRED PRODUCTS) 1,807,311
66,100 STANDARD CHARTERED PLC (DEPOSITORY INSTITUTIONS) 1,644,547
1,759,000 VODAFONE GROUP PLC (COMMUNICATIONS) 3,682,601
30,471,188
---------------
TOTAL COMMON STOCKS (COST $128,620,363) 159,971,872
---------------
116
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INTERNATIONAL CORE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COLLATERAL FOR SECURITIES LENDING - 1.91%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 1.91%
3,191,264 BANK OF NEW YORK INSTITUTIONAL CASH RESERVE $ 3,191,264
---------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $3,191,264) 3,191,264
---------------
SHORT-TERM INVESTMENTS - 2.50%
4,179,151 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~++ 4,179,151
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $4,179,151) 4,179,151
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $135,990,778)* 100.18% $ 167,342,287
OTHER ASSETS AND LIABILITIES, NET (0.18) (302,110)
------ ---------------
TOTAL NET ASSETS 100.00% $ 167,040,177
====== ===============
+ NON-INCOME EARNING SECURITIES.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
++ SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $4,179,151.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
117
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 97.89%
AUSTRIA - 0.64%
28,805 WIENER STAEDTISCHE ALLGEMEINE VERSICHERUNG AG (INSURANCE CARRIERS) $ 1,780,284
---------------
BELGIUM - 3.74%
211,134 FORTIS NA (DEPOSITORY INSTITUTIONS) 7,532,641
62,229 INBEV NA (FOOD & KINDRED PRODUCTS) 2,918,469
10,451,110
---------------
BRAZIL - 0.41%
266,881 VIVO PARTICIPACOES SA ADR (COMMUNICATIONS)+ 1,142,251
---------------
CANADA - 1.98%
91,400 ENCANA CORPORATION (OIL & GAS EXTRACTION) 4,265,359
14,900 RESEARCH IN MOTION LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT)+ 1,264,712
5,530,071
---------------
DENMARK - 0.17%
19,500 VESTAS WIND SYSTEMS A/S (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL)+ 486,091
---------------
FINLAND - 0.86%
95,400 FORTUM OYJ (ELECTRIC, GAS & SANITARY SERVICES) 2,407,024
---------------
FRANCE - 7.12%
16,805 ACCOR SA (METAL MINING) 968,775
17,900 ALCATEL SA (COMMUNICATIONS) 277,010
3,339 ALSTOM RGPT (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT)+ 280,010
82,594 AXA SA (INSURANCE CARRIERS) 2,898,667
77,556 CARREFOUR SA (FOOD STORES)+ 4,126,019
8,585 ELECTRICITE DE FRANCE (ELECTRIC, GAS & SANITARY SERVICES)+ 486,897
29,797 LVMH MOET HENNESSY LOUIS VUITTON SA (CONSUMER SERVICES) 2,921,275
76,950 PAGESJAUNES SA (PRINTING, PUBLISHING & ALLIED INDUSTRIES)+ 2,161,590
24,168 PPR SA (APPAREL & ACCESSORY STORES) 2,918,565
58,335 SAFRAN SA (NATIONAL SECURITY & INTERNATIONAL AFFAIRS) 1,478,912
14,725 SANOFI-AVENTIS SA (CHEMICALS & ALLIED PRODUCTS) 1,400,800
19,918,520
---------------
GERMANY - 11.97%
29,361 ALLIANZ AG (INSURANCE CARRIERS)+ 4,902,395
41,081 BAYERISCHE MOTOREN WERKE AG (AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS) 2,262,696
92,500 COMMERZBANK AG (DEPOSITORY INSTITUTIONS)+ 3,685,741
63,267 DEUTSCHE LUFTHANSA AG (TRANSPORTATION BY AIR) 1,132,424
119,297 DEUTSCHE POST AG (TRANSPORTATION SERVICES)+ 2,991,172
17,762 DEUTSCHE TELEKOM AG (COMMUNICATIONS) 299,628
36,519 E.ON AG (ELECTRIC, GAS & SANITARY SERVICES) 4,018,869
22,918 HEIDELBERGER DRUCKMASCHINEN AG (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 1,010,950
82,395 PROSIEBENSAT.1 MEDIA AG (COMMUNICATIONS)+ 2,146,795
50,264 RWE AG (ELECTRIC, GAS & SANITARY SERVICES) 4,374,755
118
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INTERNATIONAL GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
GERMANY (CONTINUED)
14,459 SAP AG (BUSINESS SERVICES) $ 3,136,656
37,577 SIEMENS AG (WHOLESALE TRADE NON-DURABLE GOODS) 3,508,243
33,470,324
---------------
HONG KONG - 4.28%
303,800 CHINA MERCHANTS HOLDINGS INTERNATIONAL COMPANY LIMITED (MOTOR FREIGHT TRANSPORTATION &
WAREHOUSING) 877,044
1,140,900 CHINA MOBILE (HONG KONG) LIMITED (COMMUNICATIONS) 5,991,852
51,200 ESPRIT HOLDINGS LIMITED (WHOLESALE TRADE NON-DURABLE GOODS) 398,559
687,000 MTR CORPORATION (RAILROAD TRANSPORTATION) 1,549,461
42,400 NWS HOLDINGS LIMITED (BUSINESS SERVICES) 78,689
301,700 SUN HUNG KAI PROPERTIES LIMITED (REAL ESTATE) 3,063,990
11,959,595
---------------
ITALY - 4.73%
4,600 CAPITALIA SPA (DEPOSITORY INSTITUTIONS) 38,241
94,421 ENI SPA (PETROLEUM REFINING & RELATED INDUSTRIES) 2,686,693
267,611 SAIPEM SPA (OIL & GAS EXTRACTION) 6,191,005
595,621 UNICREDITO ITALIANO SPA (DEPOSITORY INSTITUTIONS) 4,305,581
13,221,520
---------------
JAPAN - 24.20%
19,250 AIFUL CORPORATION (NON-DEPOSITORY CREDIT INSTITUTIONS) 1,274,065
96,000 BRIDGESTONE CORPORATION (AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS) 2,002,379
152,300 CHUGAI PHARMACEUTICAL COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 2,762,621
182,300 CREDIT SAISON COMPANY LIMITED (MISCELLANEOUS RETAIL) 10,083,033
780 JAPAN TOBACCO INCORPORATED (TOBACCO PRODUCTS) 2,743,585
3,850 JUPITER TELECOMMUNICATIONS COMPANY LIMITED (COMMUNICATIONS)+ 2,721,495
9,020 KEYENCE CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 2,345,047
142 MILLEA HOLDINGS INCORPORATED (INSURANCE CARRIERS) 2,811,045
113,000 MITSUBISHI ESTATE COMPANY LIMITED (REAL ESTATE) 2,678,590
269 MITSUBISHI UFJ FINANCIAL GROUP INCORPORATED (DEPOSITORY INSTITUTIONS) 4,113,849
142,400 MITSUI & COMPANY LIMITED (WHOLESALE TRADE DURABLE GOODS) 2,059,174
99,000 MITSUI FUDOSAN COMPANY LIMITED (REAL ESTATE) 2,275,234
876 MIZUHO FINANCIAL GROUP INCORPORATED (BANKING) 7,167,273
352 NTT DATA CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 1,692,710
24,800 ORIX CORPORATION (MISCELLANEOUS RETAIL) 7,722,345
180,300 SEGA SAMMY HOLDINGS INCORPORATED (AMUSEMENT & RECREATION SERVICES) 7,322,294
15,600 SMC CORPORATION (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 2,430,790
51 SUMITOMO MITSUI FINANCIAL GROUP INCORPORATED (DEPOSITORY INSTITUTIONS) 563,297
604,800 TAISEI CORPORATION (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 2,898,107
67,666,933
---------------
LUXEMBOURG - 1.57%
14,807 RTI GROUP (COMMUNICATIONS) 1,301,835
196,000 STOLT OFFSHORE SA (ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES)+ 3,080,444
4,382,279
---------------
119
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MEXICO - 2.78%
240,400 GRUPO TELEVISA SA ADR (COMMUNICATIONS) $ 4,783,960
1,121,800 WALMART DE MEXICO SA DE CV (GENERAL MERCHANDISE STORES) 3,005,075
7,789,035
---------------
NETHERLANDS - 3.51%
226,851 ASML HOLDING NV (SEMICONDUCTOR EQUIPMENT MANUFACTURING & RELATED)+ 4,632,249
36,400 ASML HOLDING NV NEW YORK REGISTERED SHARES (SEMICONDUCTOR EQUIPMENT MANUFACTURING & RELATED)+ 741,468
99,346 ING GROEP NV (FINANCIAL SERVICES) 3,924,816
66,178 KONINKLIJKE AHOLD NV (FOOD STORES)+ 520,487
9,819,020
---------------
NORWAY - 0.77%
156,200 SEADRILL LIMITED (PETROLEUM REFINING & RELATED INDUSTRIES)+ 2,145,081
---------------
PORTUGAL - 0.77%
676,725 BANCO COMERCIAL PORTUGUES SA (DEPOSITORY INSTITUTIONS) 2,156,847
---------------
RUSSIA - 3.45%
28,902 AFK SISTEMA GDR (BUSINESS SERVICES)+ 705,209
90,100 LUKOIL ADR (OIL & GAS EXTRACTION) 7,496,320
21,266 RAO UNIFIED ENERGY SYSTEM GDR (ELECTRIC, GAS & SANITARY SERVICES) 1,452,468
9,653,997
---------------
SINGAPORE - 2.52%
362,800 KEPPEL CORPORATION LIMITED (BUSINESS SERVICES) 3,098,456
457,000 SINGAPORE AIRLINES LIMITED (TRANSPORTATION SERVICES) 3,959,526
7,057,982
---------------
SOUTH KOREA - 4.73%
60,228 HANA FINANCIAL GROUP INCORPORATED (DEPOSITORY INSTITUTIONS)+ 2,851,470
74,680 KOOKMIN BANK (FINANCIAL SERVICES)+ 6,448,798
87,630 SHINHAN FINANCIAL GROUP COMPANY LIMITED (FINANCIAL SERVICES) 3,923,327
13,223,595
---------------
SPAIN - 1.17%
56,780 INDUSTRIA DE DISENO TEXTIL SA (APPAREL & ACCESSORY STORES) 2,191,574
58,926 PROMOTORA DE INFORMACIONES SA (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 1,089,000
3,280,574
---------------
SWITZERLAND - 10.78%
46,578 ADECCO SA (BUSINESS SERVICES) 2,602,851
19,596 NESTLE SA (FOOD & KINDRED PRODUCTS) 5,817,245
3,187 NOBEL BIOCARE HOLDING AG (APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR
MATERIALS)+ 709,567
51,295 NOVARTIS AG (CHEMICALS & ALLIED PRODUCTS) 2,852,673
28,806 ROCHE HOLDING AG (HEALTH SERVICES) 4,288,915
55,612 SWISS REINSURANCE (INSURANCE CARRIERS) 3,886,207
677 SYNTHES INCORPORATED (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL &
OPTICAL)+ 74,262
90,319 UBS AG (FINANCIAL SERVICES) 9,921,130
30,152,850
---------------
120
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INTERNATIONAL GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
UNITED KINGDOM - 5.72%
171,511 BARCLAYS PLC (DEPOSITORY INSTITUTIONS) $ 2,006,926
232,973 CADBURY SCHWEPPES PLC (FOOD & KINDRED PRODUCTS) 2,315,279
42,332 CARNIVAL PLC (WATER TRANSPORTATION) 2,081,407
223,771 CENTRICA PLC (ELECTRIC, GAS & SANITARY SERVICES)+ 1,094,420
1,146,875 KINGFISHER PLC (BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS) 4,772,253
43,942 SMITH & NEPHEW PLC (CHEMICALS & ALLIED PRODUCTS) 390,124
792,741 WILLIAM MORRISON SUPERMARKETS PLC (FOOD & KINDRED PRODUCTS) 2,616,898
60,500 WPP GROUP PLC (BUSINESS SERVICES)+ 725,806
16,003,113
---------------
USA - 0.02%
2,400 TIM HORTONS INCORPORATED (EATING & DRINKING PLACES)+ 63,720
---------------
TOTAL COMMON STOCKS (COST $219,203,893) 273,761,816
---------------
COLLATERAL FOR SECURITIES LENDING - 2.46%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 2.46%
6,879,725 BANK OF NEW YORK INSTITUTIONAL CASH RESERVE 6,879,725
---------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $6,879,725) 6,879,725
---------------
SHORT-TERM INVESTMENTS - 2.26%
6,315,090 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~++ 6,315,090
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $6,315,090) 6,315,090
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $232,398,708) 102.61% $ 286,956,631
OTHER ASSETS AND LIABILITIES, NET (2.61) (7,291,452)
------ ---------------
TOTAL NET ASSETS 100.00% $ 279,665,179
===== ===============
+ NON-INCOME EARNING SECURITIES.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
++ SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $6,315,090.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
121
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 97.25%
AUSTRALIA - 4.99%
4,196 ALINTA LIMITED (ELECTRIC UTILITIES) $ 32,983
15,329 ALUMINA LIMITED (METAL MINING) 81,318
13,245 AMCOR LIMITED (RUBBER & MISCELLANEOUS PLASTICS PRODUCTS) 70,168
26,347 AMP LIMITED (INSURANCE CARRIERS) 163,721
2,290 ANSELL LIMITED (RUBBER & MISCELLANEOUS PLASTICS PRODUCTS) 19,017
2,926 APN NEWS & MEDIA LIMITED (COMMUNICATIONS) 9,908
5,215 ARISTOCRAT LEISURE LIMITED (AMUSEMENT & RECREATION SERVICES) 51,447
26,452 AUSTRALIA & NEW ZEALAND BANKING GROUP LIMITED (DEPOSITORY INSTITUTIONS) 501,831
6,940 AUSTRALIAN GAS LIGHT COMPANY LIMITED (ELECTRIC, GAS & SANITARY SERVICES) 92,064
1,466 AUSTRALIAN STOCK EXCHANGE LIMITED (BUSINESS SERVICES) 34,319
12,532 AXA ASIA PACIFIC HOLDINGS LIMITED (INSURANCE CARRIERS) 52,036
2,568 BABCOCK & BROWN LIMITED (SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES) 34,011
51,802 BHP BILLITON LIMITED (MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS) 1,038,383
1,354 BILLABONG INTERNATIONAL LIMITED (APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR
MATERIALS) 14,734
11,869 BLUESCOPE STEEL LIMITED (MISCELLANEOUS MANUFACTURING INDUSTRIES) 61,009
8,517 BORAL LIMITED (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 54,388
14,979 BRAMBLES INDUSTRIES LIMITED (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 115,277
2,310 CALTEX AUSTRALIA LIMITED (PETROLEUM REFINING & RELATED INDUSTRIES) 31,752
12,029 CENTRO PROPERTIES GROUP (REAL ESTATE) 55,717
4,499 CENTRO RETAIL GROUP (REAL ESTATE)+ 5,073
22,064 CFS GANDEL RETAIL TRUST (REAL ESTATE) 30,802
17 CFS GANDEL RETAIL TRUST-NEW (REAL ESTATE)+ 23
4,058 CHALLENGER FINANCIAL SERVICES GROUP LIMITED (FINANCE & FINANCIAL SERVICES) 10,168
8,674 COCA-COLA AMATIL LIMITED (FOOD & KINDRED PRODUCTS) 44,896
783 COCHLEAR LIMITED (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL &
OPTICAL) 29,788
17,080 COLES MYER LIMITED (MISCELLANEOUS RETAIL) 130,835
18,777 COMMONWEALTH BANK OF AUSTRALIA (DEPOSITORY INSTITUTIONS) 608,944
19,747 COMMONWEALTH PROPERTY OFFICE FUND (REAL ESTATE) 19,509
6,200 COMPUTERSHARE LIMITED (BUSINESS SERVICES) 32,668
2,700 CSL LIMITED (CHEMICALS & ALLIED PRODUCTS) 105,731
14,989 CSR LIMITED (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 47,859
43,267 DB RREEF TRUST (REAL ESTATE) 45,533
4,052 DCA GROUP LIMITED (HEALTH SERVICES) 10,646
2,772 DOWNER EDI LIMITED (ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES) 17,602
29,108 FOSTER'S GROUP LIMITED (FOOD & KINDRED PRODUCTS) 110,652
9,994 FUTURIS CORPORATION LIMITED (MISCELLANEOUS MANUFACTURING INDUSTRIES) 16,170
25,504 GENERAL PROPERTY TRUST (REAL ESTATE) 75,407
10,015 HARVEY NORMAN HOLDINGS LIMITED (GENERAL MERCHANDISE STORES) 27,102
4,413 ILUKA RESOURCES LIMITED (MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS) 24,769
8,462 ING INDUSTRIAL FUND (REAL ESTATE) 13,691
23,435 INSURANCE AUSTRALIA GROUP LIMITED (INSURANCE CARRIERS) 91,771
21,012 INVESTA PROPERTY GROUP (REAL ESTATE) 32,492
7,729 JAMES HARDIE INDUSTRIES NV (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 52,455
15,329 JOHN FAIRFAX HOLDINGS LIMITED (COMMUNICATIONS) 44,006
122
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
AUSTRALIA (CONTINUED)
1,892 LEIGHTON HOLDINGS LIMITED (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) $ 24,042
5,499 LEND LEASE CORPORATION LIMITED (REAL ESTATE) 54,484
4,210 LION NATHAN LIMITED (FOOD & KINDRED PRODUCTS) 24,443
20,293 MACQUAIRE OFFICE TRUST (REAL ESTATE) 19,976
10,714 MACQUARIE AIRPORTS (SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES) 25,848
3,416 MACQUARIE BANK LIMITED (HOLDING & OTHER INVESTMENT OFFICES) 158,176
5,823 MACQUARIE COMMUNICATIONS INFRASTRUCTURE GROUP (HOLDING & OTHER INVESTMENT OFFICES) 24,387
16,782 MACQUARIE GOODMAN GROUP (PROPERTIES) 59,831
33,761 MACQUARIE INFRASTRUCTURE GROUP (HOLDING & OTHER INVESTMENT OFFICES) 92,086
10,648 MAYNE GROUP LIMITED (HEALTH SERVICES) 26,223
10,648 MAYNE PHARMA LIMITED (HEALTH SERVICES)+ 22,564
13,705 MIRVAC GROUP (REAL ESTATE) 41,699
6,348 MULTIPLEX GROUP (HEAVY CONSTRUCTION OTHER THAN BUILDING CONSTRUCTION CONTRACTS) 13,952
23,418 NATIONAL AUSTRALIA BANK LIMITED (DEPOSITORY INSTITUTIONS) 632,039
4,674 NEWCREST MINING LIMITED (METAL MINING) 78,232
10,734 ONESTEEL LIMITED (PRIMARY METAL INDUSTRIES) 31,660
4,167 ORICA LIMITED (MISCELLANEOUS MANUFACTURING INDUSTRIES) 69,171
12,066 ORIGIN ENERGY LIMITED (OIL & GAS EXTRACTION) 63,231
9,792 PACIFIC BRANDS LIMITED (GENERAL MERCHANDISE STORES) 16,754
6,868 PAPERLINX LIMITED (PAPER & ALLIED PRODUCTS) 18,536
9,446 PATRICK CORPORATION LIMITED (BUSINESS SERVICES) 54,505
724 PERPETUAL TRUSTEES AUSTRALIA LIMITED (BUSINESS SERVICES) 35,245
2,504 PUBLISHING & BROADCASTING LIMITED (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 31,012
15,679 QANTAS AIRWAYS (TRANSPORTATION BY AIR) 39,735
11,607 QBE INSURANCE GROUP LIMITED (INSURANCE CARRIERS) 181,811
13,836 RINKER GROUP LIMITED (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 196,618
4,242 RIO TINTO LIMITED (METAL MINING) 239,456
8,651 SANTOS LIMITED (OIL & GAS EXTRACTION) 70,479
1,353 SFE CORPORATION LIMITED (SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES) 15,798
4,053 SONIC HEALTHCARE LIMITED (HEALTH SERVICES) 45,554
20,526 STOCKLAND (REAL ESTATE) 98,748
645 STOCKLAND (REAL ESTATE)+(B) 3,057
8,080 SUNCORP-METWAY LIMITED (DEPOSITORY INSTITUTIONS) 112,450
7,683 TABCORP HOLDINGS LIMITED (AMUSEMENT & RECREATION SERVICES) 85,089
33,770 TELSTRA CORPORATION LIMITED (COMMUNICATIONS) 90,418
4,165 TOLL HOLDINGS LIMITED (TRANSPORTATION SERVICES) 39,061
10,814 TRANSURBAN GROUP (SOCIAL SERVICES) 52,179
1,213 UNITAB LIMITED (COMMERCE) 13,199
5,571 WESFARMERS LIMITED (MISCELLANEOUS MANUFACTURING INDUSTRIES) 139,111
21,620 WESTFIELD GROUP (PROPERTIES) 264,670
730 WESTFIELD GROUP (PROPERTIES)+(B) 8,884
26,600 WESTPAC BANKING CORPORATION (DEPOSITORY INSTITUTIONS) 453,603
6,948 WOODSIDE PETROLEUM LIMITED (OIL & GAS EXTRACTION) 226,221
16,857 WOOLWORTHS LIMITED (FOOD STORES) 227,239
8,364,151
---------------
123
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
AUSTRIA - 0.44%
144 BOEHLER-UDDEHOLM AG (FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT) $ 29,666
2,455 ERSTE BANK DER OESTERREICHISCHEN SPARKASSEN AG (DEPOSITORY INSTITUTIONS) 144,769
199 FLUGHAFEN WIEN AG (CONSTRUCTION SPECIAL TRADE CONTRACTORS) 15,586
3,915 IMMOFINANZ IMMOBILIEN ANLAGEN AG (REAL ESTATE)+ 40,612
80 MAYR-MELNHOF KARTON AG (PAPER & ALLIED PRODUCTS) 14,300
1,630 MEINL EUROPEAN LAND LIMITED (REAL ESTATE)+ 30,618
2,389 OMV AG (OIL & GAS EXTRACTION) 159,811
410 RAIFFEISEN INTERNATIONAL BANK HOLDINGS (DEPOSITORY INSTITUTIONS)+ 34,979
323 RHI AG (MISCELLANEOUS MANUFACTURING INDUSTRIES)+ 10,498
5,149 TELEKOM AUSTRIA AG (COMMUNICATIONS) 121,365
97 VERBUND - OESTERREICHISCHE ELEKTRIZITAETSWIRTSCHAFTS AG (ELECTRIC, GAS & SANITARY SERVICES) 43,141
273 VOESTALPINE AG (FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT)+ 38,199
339 WIENER STAEDTISCHE ALLGEMEINE VERSICHERUNG AG (INSURANCE CARRIERS) 20,952
758 WIENERBERGER AG (BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS) 38,121
742,617
---------------
BELGIUM - 1.16%
1,585 AGFA-GEVAERT NV (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL) 30,195
224 BARCO NV (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 19,124
272 BEKAERT SA (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL) 28,018
2,273 BELGACOM SA (COMMUNICATIONS) 72,693
96 COFINIMMO SA (REITS) 15,997
260 COLRUYT SA (FOOD STORES) 38,944
330 COMPAGNIE MARITIME BELGE SA (WATER TRANSPORTATION) 9,882
52 D'IETEREN SA (AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS) 15,559
1,130 DELHAIZE GROUP (FOOD STORES) 81,068
7,885 DEXIA SA (DEPOSITORY INSTITUTIONS)+ 203,914
396 EURONAV SA (WATER TRANSPORTATION)+ 10,730
17,163 FORTIS (DEPOSITORY INSTITUTIONS) 613,157
976 GROUPE BRUXELLES LAMBERT SA (BUSINESS SERVICES) 108,579
2,648 INBEV NA (FOOD & KINDRED PRODUCTS) 124,188
2,724 KBC BANK VERZEKERINGS HOLDINGS (DEPOSITORY INSTITUTIONS) 292,477
481 MOBISTAR SA (COMMUNICATIONS) 34,916
314 OMEGA PHARMA SA (CHEMICALS & ALLIED PRODUCTS) 19,235
851 SOLVAY SA (CHEMICALS & ALLIED PRODUCTS) 98,282
1,796 SUEZ LYONNAISE DES EAUX STRIP SA (ELECTRIC, GAS & SANITARY SERVICES)+ 22
75 SUEZ SA (ENERGY)+ 2,965
1,401 UCB SA (CHEMICALS & ALLIED PRODUCTS) 68,931
409 UMICORE (MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS) 56,653
1,945,529
---------------
CAYMAN ISLANDS - 0.02%
23,000 HUTCHISON TELECOMMUNICATIONS (TELECOMMUNICATIONS)+ 39,276
---------------
DENMARK - 0.63%
16 A.P. MOLLER - MAERSK A/S (LOCAL & SUB-TRANSIT & INTERURBAN HIGHWAY PASS TRANSPORTATION) 137,452
213 BANG & OLUFSEN A/S (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 24,663
506 CARLSBERG A/S (FOOD & KINDRED PRODUCTS) 33,033
124
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
DENMARK (CONTINUED)
413 COLOPLAST A/S (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL) $ 31,087
688 DANISCO A/S (FOOD & KINDRED PRODUCTS) 55,752
6,128 DANSKE BANK A/S (DEPOSITORY INSTITUTIONS) 227,394
295 DSV A/S (MOTOR FREIGHT TRANSPORTATION & WAREHOUSING) 39,283
209 EAST ASIATIC COMPANY LIMITED A/S (FOOD & KINDRED PRODUCTS) 8,587
523 FLS INDUSTRIES A/S (BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS)+ 20,978
3,702 GN STORE NORD A/S (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 51,101
1,114 H. LUNDBECK A/S (CHEMICALS & ALLIED PRODUCTS) 24,423
332 NKT HOLDING A/S (MISCELLANEOUS MANUFACTURING INDUSTRIES) 21,027
3,276 NOVO NORDISK A/S CLASS B (CHEMICALS & ALLIED PRODUCTS) 203,759
656 NOVOZYMES A/S (HEALTH SERVICES) 44,477
333 TOPDANMARK A/S (INSURANCE CARRIERS)+ 41,748
257 TRYGVESTA AS (WHOLESALE TRADE DURABLE GOODS)+ 15,046
2,148 VESTAS WIND SYSTEMS A/S (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL &
OPTICAL)+ 53,545
420 WILLIAM DEMANT HOLDING A/S (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL)+ 27,828
1,061,183
---------------
FINLAND - 1.46%
1,353 AMER GROUP (HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES) 27,612
611 CARGOTEC CORPORATION (TRANSPORTATION SERVICES) 25,027
2,307 ELISA CORPORATION (COMMUNICATIONS) 45,794
5,987 FORTUM OYJ (ELECTRIC, GAS & SANITARY SERVICES) 151,057
1,032 KCI KONECRANES OYJ (BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS) 17,759
938 KESKO OYJ (FOOD STORES) 29,271
1,222 KONE OYJ (BUSINESS SERVICES) 50,306
1,657 METSO OYJ (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 63,956
1,497 NESTE OIL OYJ LIMITED (OIL & GAS EXTRACTION)+ 51,459
60,948 NOKIA OYJ (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 1,261,533
1,720 NOKIAN RENKAAT OYJ (TRANSPORTATION EQUIPMENT) 30,328
900 OKO BANK (DEPOSITORY INSTITUTIONS) 14,593
1,353 ORION OYJ (CHEMICALS & ALLIED PRODUCTS) 32,612
1,438 OUTOKUMPU OYJ (METAL MINING) 29,050
1,000 RAUTARUUKKI OYJ (PRIMARY METAL INDUSTRIES) 36,937
5,361 SAMPO OYJ (NON-DEPOSITORY CREDIT INSTITUTIONS) 112,849
8,160 STORA ENSO OYJ (PAPER & ALLIED PRODUCTS) 125,587
1,321 TIETOENATOR OYJ (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 51,612
7,366 UPM-KYMMENE OYJ (PAPER & ALLIED PRODUCTS) 174,067
1,130 UPONOR OYJ (RUBBER & MISCELLANEOUS PLASTICS PRODUCTS) 29,552
889 WARTSILA OYJ (MISCELLANEOUS MANUFACTURING INDUSTRIES) 32,948
2,000 YIT OYJ (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 54,243
2,448,152
---------------
FRANCE - 9.28%
2,717 ACCOR SA (METAL MINING) 156,630
2,036 AIR FRANCE-KLM (TRANSPORTATION BY AIR) 47,940
1,580 AIR LIQUIDE (CHEMICALS & ALLIED PRODUCTS) 328,951
17,795 ALCATEL SA (COMMUNICATIONS) 275,385
125
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
FRANCE (CONTINUED)
1,626 ALSTOM RGPT (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT)+ $ 136,357
7,366 ARCELOR SA (PRIMARY METAL INDUSTRIES) 290,380
1,003 ATOS ORIGIN (BUSINESS SERVICES)+ 74,327
975 AUTOROUTES DU SUD DE LA FRANCE NPV (SOCIAL SERVICES) 60,260
21,592 AXA SA (INSURANCE CARRIERS) 757,779
11,067 BNP PARIBAS SA (DEPOSITORY INSTITUTIONS) 1,028,001
1,107 BNP PARIBAS SA+(B) 99,313
2,549 BOUYGUES SA (ENGINEERING CONSTRUCTION) 135,454
1,063 BUSINESS OBJECTS SA (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT)+ 38,801
1,900 CAP GEMINI SA (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT)+ 103,522
8,064 CARREFOUR SA (FOOD STORES)+ 429,009
575 CASINO GUICHARD-PERRACHON SA (FOOD STORES) 40,206
1,432 CIE GENERALE D'OPTIQUE ESSILOR INTERNATIONAL SA (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS:
PHOTOGRAPHIC, MEDICAL & OPTICAL) 127,724
584 CNP ASSURANCES (INSURANCE AGENTS, BROKERS & SERVICE) 58,883
4,562 COMPAGNIE DE SAINT-GOBAIN (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 318,717
2,089 COMPAGNIE GENERALE DES ESTABLISSEMENTS MICHELIN (RUBBER & MISCELLANEOUS PLASTICS PRODUCTS) 131,262
8,625 CREDIT AGRICOLE SA (DEPOSITORY INSTITUTIONS) 335,622
781 DASSAULT SYSTEMES SA (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 44,663
1,235 EURONEXT NV (BUSINESS SERVICES) 101,847
24,755 FRANCE TELECOM SA (COMMUNICATIONS) 556,791
2,352 GAZ DE FRANCE (MEMBERSHIP ORGANIZATIONS)+ 85,053
159 GECINA SA (REAL ESTATE) 21,099
3,397 GROUPE DANONE (FOOD & KINDRED PRODUCTS) 416,196
335 HERMES INTERNATIONAL (APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS) 84,686
542 IMERYS SA (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 45,649
387 KLEPIERRE (REAL ESTATE) 48,259
4,229 L'OREAL SA (APPAREL & ACCESSORY STORES) 372,583
2,599 LAFARGE SA (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 294,489
1,790 LAGARDERE SCA (COMMUNICATIONS) 139,806
3,550 LVMH MOET HENNESSY LOUIS VUITTON SA (CONSUMER SERVICES) 348,039
530 NEOPOST SA (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 57,613
2,091 PAGESJAUNES SA (PRINTING, PUBLISHING & ALLIED INDUSTRIES)+ 58,738
1,062 PERNOD-RICARD (FOOD & KINDRED PRODUCTS) 203,473
2,212 PEUGEOT SA (AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS) 139,393
915 PPR SA (APPAREL & ACCESSORY STORES) 110,497
2,169 PUBLICIS GROUPE (COMMUNICATIONS) 84,638
2,664 RENAULT SA (TRANSPORTATION EQUIPMENT) 283,291
2,526 SAFRAN SA (NATIONAL SECURITY & INTERNATIONAL AFFAIRS) 64,039
15,158 SANOFI-AVENTIS SA (CHEMICALS & ALLIED PRODUCTS) 1,441,992
3,283 SCHNEIDER ELECTRIC SA (BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS) 354,487
11,766 SCOR SA (INSURANCE CARRIERS)+ 29,943
382 SOCIETE AUTOROUTES DU NORD ET DE L'EST DE LA FRANCE (MISCELLANEOUS MANUFACTURING INDUSTRIES)+(A) 26,850
527 SOCIETE BIC SA (HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES) 35,381
565 SOCIETE DES AUTOROUTES PARIS-RHIN-RHONE (TRANSPORTATION SERVICES)+ 41,835
5,175 SOCIETE GENERALE (DEPOSITORY INSTITUTIONS) 778,276
1,605 SOCIETE TELEVISION FRANCAISE 1 (COMMUNICATIONS) 48,626
1,362 SODEXHO ALLIANCE SA (FOOD & KINDRED PRODUCTS) 64,701
126
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
FRANCE (CONTINUED)
14,500 SUEZ SA (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) $ 571,439
1,243 TECHNIP SA (OIL & GAS EXTRACTION) 84,129
1,283 THALES SA (TRANSPORTATION BY AIR) 57,046
3,710 THOMSON (HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES) 73,240
8,018 TOTAL SA (PETROLEUM REFINING & RELATED INDUSTRIES) 2,115,319
638 UNIBAIL (REAL ESTATE) 115,202
1,162 VALEO SA (TRANSPORTATION EQUIPMENT) 48,596
4,945 VEOLIA ENVIRONNEMENT (ELECTRIC, GAS & SANITARY SERVICES) 274,642
2,412 VINCI SA (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 237,786
16,750 VIVENDI UNIVERSAL SA (COMMUNICATIONS) 575,262
611 ZODIAC SA (TRANSPORTATION BY AIR) 39,651
15,549,768
---------------
GERMANY - 6.82%
694 ADIDAS-SALOMON AG (APPAREL & ACCESSORY STORES) 137,247
5,558 ALLIANZ AG (INSURANCE CARRIERS)+ 928,017
898 ALTANA AG (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL) 55,653
7,909 BASF AG (CHEMICALS & ALLIED PRODUCTS) 620,122
9,373 BAYER AG (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL) 375,520
275 BEIERSDORF AG (APPAREL & ACCESSORY STORES) 39,658
584 CELESIO AG (WHOLESALE TRADE DURABLE GOODS) 55,266
8,544 COMMERZBANK AG (DEPOSITORY INSTITUTIONS)+ 340,443
1,893 CONTINENTAL AG (RUBBER & MISCELLANEOUS PLASTICS PRODUCTS) 208,414
13,401 DAIMLERCHRYSLER AG (TRANSPORTATION EQUIPMENT) 769,780
7,196 DEUTSCHE BANK AG (DEPOSITORY INSTITUTIONS) 821,909
1,479 DEUTSCHE BOERSE AG (SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES) 213,288
3,799 DEUTSCHE LUFTHANSA AG (TRANSPORTATION BY AIR) 67,999
10,419 DEUTSCHE POST AG (TRANSPORTATION SERVICES)+ 261,227
670 DEUTSCHE POSTBANK AG (DEPOSITORY INSTITUTIONS) 48,619
40,023 DEUTSCHE TELEKOM AG (COMMUNICATIONS) 675,150
629 DOUGLAS HOLDING AG (APPAREL & ACCESSORY STORES) 29,621
9,091 E.ON AG (ELECTRIC, GAS & SANITARY SERVICES) 1,000,453
928 EPCOS AG (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT)+ 12,303
489 FRESENIUS MEDICAL CARE AG (HEALTH SERVICES) 58,430
417 FRESENIUS MEDICAL CARE AG PREFERRED (HEALTH SERVICES) 47,351
863 HEIDELBERGER DRUCKMASCHINEN AG (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 38,068
778 HENKEL KGAA (APPAREL & ACCESSORY STORES) 90,954
992 HOCHTIEF AG (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS)+ 56,117
1,949 HYPO REAL ESTATE HOLDING AG (DEPOSITORY INSTITUTIONS) 133,613
8,453 INFINEON TECHNOLOGIES AG (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT)+ 87,175
1,165 IVG IMMOBILIEN AG (REAL ESTATE)+ 35,027
1,041 KARSTADTQUELLE AG (GENERAL MERCHANDISE STORES) 24,487
1,276 LINDE AG (ELECTRIC, GAS & SANITARY SERVICES) 110,794
1,937 MAN AG (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 134,434
777 MERCK KGAA (CHEMICALS & ALLIED PRODUCTS) 73,851
2,229 METRO AG (FOOD STORES) 114,289
955 MLP AG (HOLDING & OTHER INVESTMENT OFFICES) 23,343
127
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
GERMANY (CONTINUED)
2,801 MUENCHENER RUECKVERSICHERUNG GESELLSCHAFT AG (INSURANCE CARRIERS) $ 397,146
103 PORSCHE AG (TRANSPORTATION EQUIPMENT) 98,609
755 PREMIERE AG (ENTERTAINMENT)+ 13,404
444 PROSIEBENSAT.1 MEDIA AG (COMMUNICATIONS)+ 11,568
165 PUMA AG RUDOLF DASSLER SPORT (APPAREL & ACCESSORY STORES) 62,478
6,158 RWE AG (ELECTRIC, GAS & SANITARY SERVICES) 535,965
634 RWE AG NON-VOTING PREFERRED (ELECTRIC, GAS & SANITARY SERVICES) 49,518
3,187 SAP AG (BUSINESS SERVICES) 691,370
2,478 SCHERING AG (CHEMICALS & ALLIED PRODUCTS) 257,626
11,592 SIEMENS AG (WHOLESALE TRADE NON-DURABLE GOODS) 1,082,246
815 SUEDZUCKER AG (FOOD & KINDRED PRODUCTS) 21,087
5,002 THYSSENKRUPP AG (PRIMARY METAL INDUSTRIES) 144,451
3,371 TUI AG (TRANSPORTATION BY AIR) 66,180
2,537 VOLKSWAGEN AG (TRANSPORTATION EQUIPMENT) 191,571
1,577 VOLKSWAGEN AG PREFERRED (TRANSPORTATION EQUIPMENT) 86,554
263 WINCOR NIXDORF AG (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 33,147
11,431,542
---------------
GREECE - 0.64%
3,878 ALPHA BANK AE (DEPOSITORY INSTITUTIONS) 143,243
1,740 COCA-COLA HELLENIC BOTTLING COMPANY SA (FOOD & KINDRED PRODUCTS) 54,065
1,950 COSMOTE MOBILE COMMUNICATIONS SA (COMMUNICATIONS) 45,136
2,750 EFG EUROBANK ERGASIAS SA (DEPOSITORY INSTITUTIONS) 105,910
1,176 EMPORIKI BANK OF GREECE SA (DEPOSITORY INSTITUTIONS) 39,334
300 FOLLIE SA (APPAREL & ACCESSORY STORES) 8,587
920 GERMANOS SA (HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES) 19,533
350 HELLENIC DUTY FREE SHOPS SA (GENERAL MERCHANDISE STORES) 6,812
2,030 HELLENIC PETROLEUM SA (OIL & GAS EXTRACTION) 28,980
1,700 HELLENIC TECHNODOMIKI TEV SA (HEAVY CONSTRUCTION OTHER THAN BUILDING CONSTRUCTION CONTRACTS) 14,668
4,370 HELLENIC TELECOMMUNICATIONS ORGANIZATION SA (COMMUNICATIONS) 97,443
796 HYATT REGENCY SA (HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES) 10,823
1,610 INTRACOM SA (COMMUNICATIONS) 11,590
3,760 NATIONAL BANK OF GREECE SA (DEPOSITORY INSTITUTIONS) 176,795
3,230 OPAP SA (AMUSEMENT & RECREATION SERVICES) 123,457
2,400 PIRAEUS BANK SA (DEPOSITORY INSTITUTIONS) 72,711
1,690 PUBLIC POWER CORPORATION SA (ELECTRIC, GAS & SANITARY SERVICES) 39,732
1,510 TECHNICAL OLYMPIC SA (HEAVY CONSTRUCTION OTHER THAN BUILDING CONSTRUCTION CONTRACTS) 9,150
900 TITAN CEMENT COMPANY SA (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 42,973
2,080 VIOHALCO SA (BUSINESS SERVICES) 20,972
1,071,914
---------------
HONG KONG - 1.54%
3,500 ASM PACIFIC TECHNOLOGY (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 20,885
22,800 BANK OF EAST ASIA LIMITED (DEPOSITORY INSTITUTIONS) 82,424
51,000 BOC HONG KONG HOLDINGS LIMITED (DEPOSITORY INSTITUTIONS) 102,537
16,000 CATHAY PACIFIC AIRWAYS LIMITED (TRANSPORTATION BY AIR) 28,044
22,000 CHEUNG KONG HOLDINGS LIMITED (REAL ESTATE) 233,209
128
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
HONG KONG (CONTINUED)
7,000 CHEUNG KONG INFRASTRUCTURE HOLDINGS LIMITED (HEAVY CONSTRUCTION OTHER THAN BUILDING CONSTRUCTION
CONTRACTS) $ 22,238
26,000 CLP HOLDINGS LIMITED (ELECTRIC, GAS & SANITARY SERVICES) 151,795
13,000 ESPRIT HOLDINGS LIMITED (WHOLESALE TRADE NON-DURABLE GOODS) 101,197
28,000 GIORDANO INTERNATIONAL LIMITED (APPAREL & ACCESSORY STORES) 15,517
29,000 HANG LUNG PROPERTIES LIMITED (REAL ESTATE) 55,128
11,100 HANG SENG BANK LIMITED (DEPOSITORY INSTITUTIONS) 142,985
9,000 HENDERSON LAND DEVELOPMENT COMPANY LIMITED (REAL ESTATE) 49,877
50,000 HONG KONG & CHINA GAS COMPANY LIMITED (OIL & GAS EXTRACTION) 120,825
14,000 HONG KONG EXCHANGES & CLEARING LIMITED (BUSINESS SERVICES) 84,442
18,500 HONGKONG ELECTRIC HOLDINGS (ELECTRIC, GAS & SANITARY SERVICES) 87,026
10,000 HOPEWELL HOLDINGS (REAL ESTATE) 28,998
30,000 HUTCHISON WHAMPOA (DIVERSIFIED OPERATIONS)+ 275,095
12,000 HYSAN DEVELOPMENT COMPANY LIMITED (REAL ESTATE) 34,179
22,500 JOHNSON ELECTRIC HOLDINGS LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 21,024
9,092 KERRY PROPERTIES LIMITED (REAL ESTATE) 33,278
8,000 KINGBOARD CHEMICALS HOLDINGS (CHEMICALS & ALLIED PRODUCTS) 24,178
28,000 LI & FUNG LIMITED (WHOLESALE TRADE NON-DURABLE GOODS) 63,151
29,000 LINK REIT (REITS)+ 62,790
22,223 MTR CORPORATION (RAILROAD TRANSPORTATION) 50,122
38,682 NEW WORLD DEVELOPMENT LIMITED (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 67,801
2,200 ORIENT OVERSEAS INTERNATIONAL LIMITED (WATER TRANSPORTATION) 7,443
57,000 PCCW LIMITED (COMMUNICATIONS) 37,098
18,000 SCMP GROUP LIMITED (COMMUNICATIONS) 6,438
20,000 SHANGRI-LA ASIA LIMITED (HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES) 32,349
20,276 SINO LAND COMPANY (REAL ESTATE) 29,137
5,500 SMARTONE TELECOMMUNICATIONS HOLDING LIMITED (COMMUNICATIONS) 6,025
32,000 SOLOMON SYSTECH LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 15,466
19,000 SUN HUNG KAI PROPERTIES LIMITED (REAL ESTATE) 192,959
13,000 SWIRE PACIFIC LIMITED (BUSINESS SERVICES) 127,250
14,000 TECHTRONIC INDUSTRIES COMPANY (BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS) 25,170
5,000 TELEVISION BROADCASTS LIMITED (MOTION PICTURES) 28,354
12,000 TEXWINCA HOLDINGS LIMITED (TEXTILE MILL PRODUCTS) 9,202
15,000 WHARF HOLDINGS LIMITED (BUSINESS SERVICES) 55,096
3,000 WING HANG BANK LIMITED (DEPOSITORY INSTITUTIONS) 25,190
9,000 YUE YUEN INDUSTRIAL HOLDINGS (APPAREL & ACCESSORY STORES) 26,504
2,582,426
---------------
IRELAND - 0.86%
12,716 ALLIED IRISH BANKS PLC (DEPOSITORY INSTITUTIONS) 303,576
14,117 BANK OF IRELAND (DEPOSITORY INSTITUTIONS) 262,604
4,473 C&C GROUP PLC (EATING & DRINKING PLACES) 30,356
7,802 CRH PLC (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 272,301
1,283 DCC PLC (BUSINESS SERVICES) 29,852
5,377 DEPFA BANK PLC (DEPOSITORY INSTITUTIONS) 95,787
7,360 EIRCOM GROUP PLC (COMMUNICATIONS) 18,998
5,856 ELAN CORPORATION PLC (CHEMICALS & ALLIED PRODUCTS)+ 84,450
5,901 FYFFES PLC (WHOLESALE TRADE NON-DURABLE GOODS) 15,876
129
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
IRELAND (CONTINUED)
2,819 GRAFTON GROUP PLC (BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS) $ 36,998
2,891 GREENCORE GROUP PLC (FOOD & KINDRED PRODUCTS) 13,488
1,332 IAWS GROUP PLC (AGRICULTURAL PRODUCTION CROPS) 23,099
8,902 INDEPENDENT NEWS AND MEDIA PLC (COMMUNICATIONS) 28,804
3,864 IRISH LIFE & PERMANENT PLC (NON-DEPOSITORY CREDIT INSTITUTIONS) 92,716
2,132 KERRY GROUP PLC (FOOD & KINDRED PRODUCTS) 51,209
1,707 KINGSPAN GROUP PLC (BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS) 26,065
869 PADDY POWER PLC (AMUSEMENT & RECREATION SERVICES) 13,901
623 RYANAIR HOLDINGS PLC ADR (TRANSPORTATION BY AIR)+ 34,078
1,434,158
---------------
ITALY - 3.65%
6,293 ALLEANZA ASSICURAZIONI SPA (INSURANCE CARRIERS) 74,813
2,213 ARNOLDO MONDADORI EDITORE SPA (COMMUNICATIONS) 21,709
14,082 ASSICURAZIONI GENERALI SPA (INSURANCE CARRIERS) 530,392
1,722 AUTOGRILL SPA (EATING & DRINKING PLACES) 25,543
4,088 AUTOSTRADE SPA (SOCIAL SERVICES) 101,113
4,699 BANCA FIDEURAM SPA (HOLDING & OTHER INVESTMENT OFFICES) 27,006
14,756 BANCA INTESA RNC SPA (DEPOSITORY INSTITUTIONS) 83,510
54,037 BANCA INTESA SPA (DEPOSITORY INSTITUTIONS) 322,842
16,347 BANCA MONTE DEI PASCHI DI SIENA SPA (DEPOSITORY INSTITUTIONS) 92,018
15,480 BANCA NAZIONALE DEL LAVORO SPA (DEPOSITORY INSTITUTIONS)+ 54,778
6,239 BANCA POPOLARE DI MILANO SCARL (DEPOSITORY INSTITUTIONS) 73,642
5,170 BANCHE POPOLARI UNITE SCPA (DEPOSITORY INSTITUTIONS) 125,369
5,171 BANCO POPOLARE DI VERONA E NOVARA SCRL (DEPOSITORY INSTITUTIONS) 136,861
1,032 BENETTON GROUP SPA (APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS)+ 15,408
2,527 BULGARI SPA (APPAREL & ACCESSORY STORES) 30,409
23,333 CAPITALIA SPA (DEPOSITORY INSTITUTIONS) 193,975
63,448 ENEL SPA (ELECTRIC, GAS & SANITARY SERVICES) 536,691
37,641 ENI SPA (PETROLEUM REFINING & RELATED INDUSTRIES) 1,071,052
6,470 FIAT SPA (TRANSPORTATION EQUIPMENT)+ 81,543
4,600 FINMECCANICA SPA (TRANSPORTATION BY AIR) 104,464
3,275 GRUPPO EDITORIALE L'ESPRESSO SPA (COMMUNICATIONS) 17,175
931 ITALCEMENTI SPA (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 22,305
360 LOTTOMATICA SPA (AMUSEMENT & RECREATION SERVICES)+ 15,269
1,991 LUXOTTICA GROUP SPA (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL) 54,819
10,648 MEDIASET SPA (COMMUNICATIONS) 125,425
6,669 MEDIOBANCA SPA (DEPOSITORY INSTITUTIONS) 143,049
4,147 MEDIOLANUM SPA (INSURANCE CARRIERS) 32,892
43,372 PIRELLI & C SPA (TRANSPORTATION EQUIPMENT) 41,365
16,239 SANPAOLO IMI SPA (DEPOSITORY INSTITUTIONS) 290,671
66,054 SEAT PAGINE GIALLE SPA (COMMUNICATIONS)+ 31,579
14,619 SNAM RETE GAS SPA (OIL & GAS EXTRACTION) 64,620
23,337 TELECOM ITALIA MEDIA SPA (COMMUNICATIONS)+ 12,599
86,745 TELECOM ITALIA RNC SPA (COMMUNICATIONS) 231,007
157,255 TELECOM ITALIA SPA (COMMUNICATIONS) 458,798
17,214 TERNA SPA (ELECTRIC, GAS & SANITARY SERVICES) 45,268
130
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ITALY (CONTINUED)
3,533 TISCALI SPA (COMMUNICATIONS)+ $ 11,528
113,999 UNICREDITO ITALIANO SPA (DEPOSITORY INSTITUTIONS) 824,068
6,125,575
---------------
JAPAN - 24.69%
5,000 77 BANK LIMITED (DEPOSITORY INSTITUTIONS) 38,530
1,100 ACOM COMPANY LIMITED (NON-DEPOSITORY CREDIT INSTITUTIONS) 64,579
600 ADERANS COMPANY LIMITED (APPAREL & ACCESSORY STORES) 17,638
1,100 ADVANTEST CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 131,121
9,500 AEON COMPANY LIMITED (MISCELLANEOUS RETAIL) 230,438
1,500 AEON CREDIT SERVICE COMPANY LIMITED (NON-DEPOSITORY CREDIT INSTITUTIONS) 45,370
900 AIFUL CORPORATION (NON-DEPOSITORY CREDIT INSTITUTIONS) 59,567
2,800 AISIN SEIKI COMPANY LIMITED (TRANSPORTATION EQUIPMENT) 108,955
9,000 AJINOMOTO COMPANY INCORPORATED (FOOD & KINDRED PRODUCTS) 96,117
400 ALFRESA HOLDINGS CORPORATION (WHOLESALE TRADE NON-DURABLE GOODS) 24,299
8,000 ALL NIPPON AIRWAYS COMPANY LIMITED (TRANSPORTATION BY AIR) 29,159
2,000 ALPS ELECTRIC COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT) 32,234
4,000 AMADA COMPANY LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 43,636
1,000 AMANO CORPORATION (MISCELLANEOUS MANUFACTURING INDUSTRIES) 17,417
1,000 ANRITSU CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 6,287
1,000 AOYAMA TRADING COMPANY LIMITED (APPAREL & ACCESSORY STORES) 33,050
400 ARIAKE JAPAN COMPANY LIMITED (FOOD & KINDRED PRODUCTS) 11,929
5,500 ASAHI BREWERIES LIMITED (FOOD & KINDRED PRODUCTS) 78,037
15,000 ASAHI GLASS COMPANY LIMITED (BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS) 224,172
17,000 ASAHI KASEI CORPORATION (CHEMICALS & ALLIED PRODUCTS) 121,181
600 ASATSU-DK INCORPORATED (COMMUNICATIONS) 20,952
500 AUTOBACS SEVEN COMPANY LIMITED (AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS) 24,936
9,000 BANK OF FUKUOKA LIMITED (DEPOSITORY INSTITUTIONS) 75,930
4,000 BANK OF KYOTO LIMITED (DEPOSITORY INSTITUTIONS) 48,258
18,000 BANK OF YOKOHAMA LIMITED (DEPOSITORY INSTITUTIONS) 147,426
1,000 BENESSE CORPORATION (EDUCATIONAL SERVICES) 35,684
10,000 BRIDGESTONE CORPORATION (AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS) 208,581
11,100 CANON INCORPORATED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 734,656
1,000 CANON SALES COMPANY INCORPORATED (WHOLESALE TRADE DURABLE GOODS) 21,538
3,300 CASIO COMPUTER COMPANY LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 58,738
3,000 CENTRAL GLASS COMPANY LIMITED (BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE
HOME DEALERS) 17,383
23 CENTRAL JAPAN RAILWAY COMPANY (RAILROAD TRANSPORTATION) 226,678
11,000 CHIBA BANK LIMITED (DEPOSITORY INSTITUTIONS) 97,850
2,000 CHIYODA CORPORATION (ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES)+ 46,559
8,500 CHUBU ELECTRIC POWER COMPANY INCORPORATED (ELECTRIC, GAS & SANITARY SERVICES) 213,042
3,900 CHUGAI PHARMACEUTICAL COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 70,743
800 CIRCLE K SUNKUS COMPANY LIMITED (GENERAL MERCHANDISE STORES) 19,371
4,400 CITIZEN WATCH COMPANY LIMITED (APPAREL & ACCESSORY STORES) 41,533
800 COCA-COLA WEST JAPAN COMPANY LIMITED (FOOD & KINDRED PRODUCTS) 18,997
2,000 COMSYS HOLDINGS CORPORATION (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 28,564
2,200 CREDIT SAISON COMPANY LIMITED (MISCELLANEOUS RETAIL) 121,682
131
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
JAPAN (CONTINUED)
1,100 CSK HOLDINGS CORPORATION (BUSINESS SERVICES) $ 54,673
9,000 DAI NIPPON PRINTING COMPANY LIMITED (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 162,872
4,000 DAICEL CHEMICAL INDUSTRIES LIMITED (CHEMICALS & ALLIED PRODUCTS) 33,679
4,000 DAIDO STEEL COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT) 40,612
9,300 DAIICHI SANKYO COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 212,154
3,500 DAIKIN INDUSTRIES LIMITED (BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS) 122,515
3,000 DAIMARU INCORPORATED (APPAREL & ACCESSORY STORES) 44,197
10,000 DAINIPPON INK & CHEMICALS INCORPORATED (CHEMICALS & ALLIED PRODUCTS) 37,213
3,000 DAINIPPON SCREEN MANUFACTURING COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT &
COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 31,784
1,000 DAITO TRUST CONSTRUCTION COMPANY LIMITED (REAL ESTATE) 52,166
7,000 DAIWA HOUSE INDUSTRY COMPANY LIMITED (BUILDING CONSTRUCTION-GENERAL CONTRACTORS &
OPERATIVE BUILDERS) 121,325
18,000 DAIWA SECURITIES GROUP INCORPORATED (HOLDING & OTHER INVESTMENT OFFICES) 241,478
7,000 DENKI KAGAKU KOGYO KABUSHIKI KAISHA (CHEMICALS & ALLIED PRODUCTS) 31,283
7,800 DENSO CORPORATION (TRANSPORTATION EQUIPMENT) 308,156
26 DENTSU INCORPORATED (BUSINESS SERVICES) 94,325
4,000 DOWA MINING COMPANY LIMITED (MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS) 47,748
15 E*TRADE SECURITIES COMPANY LIMITED (FINANCE & FINANCIAL SERVICES)+ 34,537
14 EACCESS LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT)+ 10,824
49 EAST JAPAN RAILWAY COMPANY (RAILROADS) 363,025
5,000 EBARA CORPORATION (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 31,436
3,700 EISAI COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 161,266
2,280 ELECTRIC POWER DEVELOPMENT COMPANY LIMITED (ELECTRIC, GAS & SANITARY SERVICES) 72,255
600 EPILDA MEMORY INCORPORATED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT)+ 21,512
1,000 FAMILYMART COMPANY LIMITED (GENERAL MERCHANDISE STORES) 31,351
2,600 FANUC LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 250,280
700 FAST RETAILING COMPANY LIMITED (APPAREL & ACCESSORY STORES) 68,454
9,000 FUJI ELECTRIC HOLDINGS COMPANY LIMITED (BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE
HOME DEALERS) 49,091
7,300 FUJI PHOTO FILM COMPANY LIMITED (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL) 243,747
400 FUJI SOFT ABC INCORPORATED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 11,895
7 FUJI TELEVISION NETWORK INCORPORATED (COMMUNICATIONS) 17,485
5,000 FUJIKURA LIMITED (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL &
OPTICAL) 56,627
25,000 FUJITSU LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 210,918
9,000 FURUKAWA ELECTRIC COMPANY LIMITED (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL)+ 74,630
700 GLORY LIMITED (MISCELLANEOUS MANUFACTURING INDUSTRIES) 15,166
18 GOODWILL GROUP INCORPORATED (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 16,822
6,000 GUNMA BANK LIMITED (DEPOSITORY INSTITUTIONS) 45,370
2,000 GUNZE LIMITED (APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS) 13,509
400 HAKUHODO DY HOLDINGS INCORPORATED (CONSUMER SERVICES) 33,475
2,000 HANKYU DEPARTMENT STORES (APPAREL & ACCESSORY STORES) 18,505
400 HIKARI TSUSHIN INCORPORATED (MISCELLANEOUS RETAIL)+ 27,833
4,000 HINO MOTORS LIMITED (TRANSPORTATION EQUIPMENT) 25,149
400 HIROSE ELECTRIC COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT) 56,245
3,000 HITACHI CABLE LIMITED (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL) 17,026
132
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
JAPAN (CONTINUED)
1,000 HITACHI CAPITAL CORPORATION (NON-DEPOSITORY CREDIT INSTITUTIONS) $ 20,008
1,700 HITACHI CHEMICAL COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 48,819
1,500 HITACHI CONSTRUCTION MACHINERY COMPANY LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER
EQUIPMENT) 39,507
46,000 HITACHI LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 325,556
600 HITACHI SOFTWARE ENGINEERING COMPANY LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY &
COMPUTER EQUIPMENT) 11,113
2,900 HOKKAIDO ELECTRIC POWER COMPANY INCORPORATED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT &
COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 62,213
15,000 HOKUHOKU FINANCIAL GROUP INCORPORATED (DEPOSITORY INSTITUTIONS) 65,888
11,500 HONDA MOTOR COMPANY LIMITED (TRANSPORTATION EQUIPMENT) 712,277
1,400 HOUSE FOODS CORPORATION (FOOD & KINDRED PRODUCTS) 22,980
6,400 HOYA CORPORATION (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL) 258,284
1,900 IBIDEN COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT) 96,049
14 INDEX CORPORATION (COMMUNICATIONS) 29,499
6 INPEX CORPORATION (PETROLEUM REFINING & RELATED INDUSTRIES)(A) 50,824
2,800 ISETAN COMPANY LIMITED (APPAREL & ACCESSORY STORES) 61,020
5,000 ISHIHARA SANGYO KAISHA LIMITED (CHEMICALS & ALLIED PRODUCTS) 9,346
17,000 ISHIKAWAJIMA-HARIMA HEAVY INDUSTRIES COMPANY LIMITED (MISCELLANEOUS MANUFACTURING INDUSTRIES)+ 53,874
1,000 ITO EN LIMITED (EATING & DRINKING PLACES) 35,004
22,000 ITOCHU CORPORATION (WHOLESALE TRADE NON-DURABLE GOODS) 188,972
500 ITOCHU TECHNO-SCIENCE CORPORATION (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 19,711
500 JAFCO COMPANY LIMITED (HOLDING & OTHER INVESTMENT OFFICES) 37,723
11,000 JAPAN AIR LINES CORPORATION (TRANSPORTATION BY AIR) 28,785
7 JAPAN PRIME REALTY INVESTMENT CORPORATION (REITS) 21,351
5 JAPAN REAL ESTATE INVESTMENT CORPORATION (REITS) 43,330
4 JAPAN RETAIL FUND INVESTMENT CORPORATION (REITS) 31,266
65 JAPAN TOBACCO INCORPORATED (TOBACCO PRODUCTS) 228,632
8,200 JFE HOLDINGS INCORPORATED (PRIMARY METAL INDUSTRIES) 330,926
3,000 JGC CORPORATION (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 59,006
10,000 JOYO BANK LIMITED (DEPOSITORY INSTITUTIONS) 70,518
2,400 JSR CORPORATION (CHEMICALS & ALLIED PRODUCTS) 71,368
13,000 KAJIMA CORPORATION (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 81,181
1,000 KAKEN PHARMACEUTICAL COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 8,377
4,000 KAMIGUMI COMPANY LIMITED (TRANSPORTATION SERVICES) 31,878
4,000 KANEKA CORPORATION (CHEMICALS & ALLIED PRODUCTS) 47,952
11,400 KANSAI ELECTRIC POWER COMPANY INCORPORATED (ELECTRIC, GAS & SANITARY SERVICES) 253,279
4,000 KANSAI PAINT COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 36,669
7,000 KAO CORPORATION (CHEMICALS & ALLIED PRODUCTS) 184,367
2,400 KATOKICHI COMPANY LIMITED (FOOD & KINDRED PRODUCTS) 16,415
20,000 KAWASAKI HEAVY INDUSTRIES LIMITED (MISCELLANEOUS MANUFACTURING INDUSTRIES) 70,178
8,000 KAWASAKI KISEN KAISHA LIMITED (WATER TRANSPORTATION) 47,239
34 KDDI CORPORATION (COMMUNICATIONS) 181,699
7,000 KEIHIN ELECTRIC EXPRESS RAILWAY COMPANY LIMITED (RAILROAD TRANSPORTATION) 57,392
9,000 KEIO ELECTRIC RAILWAY COMPANY LIMITED (RAILROAD TRANSPORTATION) 59,414
4,000 KEISEI ELECTRIC RAILWAY COMPANY LIMITED (RAILROAD TRANSPORTATION) 27,596
450 KEYENCE CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT) 116,992
2,000 KIKKOMAN CORPORATION (FOOD & KINDRED PRODUCTS) 22,498
2,000 KINDEN CORPORATION (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 18,131
133
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
JAPAN (CONTINUED)
23,000 KINTETSU CORPORATION (RAILROAD TRANSPORTATION) $ 89,694
12,000 KIRIN BREWERY COMPANY LIMITED (FOOD & KINDRED PRODUCTS) 163,330
40,000 KOBE STEEL LIMITED (FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT) 151,912
1,300 KOKUYO COMPANY LIMITED (HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES) 19,616
13,000 KOMATSU LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 247,961
1,000 KOMORI CORPORATION (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 23,322
1,600 KONAMI CORPORATION (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 40,306
6,500 KONICA MINOLTA HOLDINGS INCORPORATED (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS:
PHOTOGRAPHIC, MEDICAL & OPTICAL) 82,948
440 KOSE CORPORATION (MISCELLANEOUS MANUFACTURING INDUSTRIES) 16,598
2,000 KOYO SEIKO COMPANY LIMITED (TRANSPORTATION EQUIPMENT) 39,932
16,000 KUBOTA CORPORATION (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 172,642
5,000 KURARAY COMPANY LIMITED (TEXTILE MILL PRODUCTS) 58,794
2,200 KURAYA SANSEIDO INCORPORATED (WHOLESALE TRADE NON-DURABLE GOODS) 35,589
1,900 KURITA WATER INDUSTRIES LIMITED (ADMINISTRATION OF ENVIRONMENTAL QUALITY & HOUSING PROGRAMS) 40,680
2,400 KYOCERA CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 212,472
4,000 KYOWA HAKKO KOGYO COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 29,227
5,400 KYUSHU ELECTRIC POWER COMPANY INCORPORATED (ELECTRIC, GAS & SANITARY SERVICES) 121,810
1,000 LAWSON INCORPORATED (GENERAL MERCHANDISE STORES) 37,638
1,500 LEOPALACE 21 CORPORATION (REAL ESTATE) 56,330
500 MABUCHI MOTOR COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT) 25,743
1,300 MAKITA CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 40,093
18,000 MARUBENI CORPORATION (BUSINESS SERVICES) 94,206
4,700 MARUI COMPANY LIMITED (APPAREL & ACCESSORY STORES) 92,842
1,700 MATSUI SECURITIES COMPANY LIMITED (INSURANCE AGENTS, BROKERS & SERVICE)+ 23,572
700 MATSUMOTOKIYOSHI COMPANY LIMITED (GENERAL MERCHANDISE STORES) 20,042
30,000 MATSUSHITA ELECTRIC INDUSTRIAL COMPANY LIMITED (HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES) 666,525
5,000 MATSUSHITA ELECTRIC WORKS LIMITED (BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME
DEALERS) 60,025
4,000 MEIJI DAIRIES CORPORATION (FOOD & KINDRED PRODUCTS) 23,381
5,000 MEIJI SEIKA KAISHA LIMITED (FOOD & KINDRED PRODUCTS) 25,489
600 MEITEC CORPORATION (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 19,728
21 MILLEA HOLDINGS INCORPORATED (INSURANCE CARRIERS) 415,718
6,000 MINEBEA COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 41,444
16,000 MITSUBISHI CHEMICAL HOLDINGS CORPORATION (CHEMICALS & ALLIED PRODUCTS)+ 98,692
19,200 MITSUBISHI CORPORATION (BUSINESS SERVICES) 437,179
28,000 MITSUBISHI ELECTRIC CORPORATION (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 237,655
16,000 MITSUBISHI ESTATE COMPANY LIMITED (REAL ESTATE) 379,269
6,000 MITSUBISHI GAS CHEMICAL COMPANY INCORPORATED (CHEMICALS & ALLIED PRODUCTS) 73,203
43,000 MITSUBISHI HEAVY INDUSTRIES LIMITED (MISCELLANEOUS MANUFACTURING INDUSTRIES) 204,588
2,000 MITSUBISHI LOGISTICS CORPORATION (MOTOR FREIGHT TRANSPORTATION & WAREHOUSING) 31,980
15,000 MITSUBISHI MATERIALS CORPORATION (MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS) 80,161
7,000 MITSUBISHI RAYON COMPANY LIMITED (TEXTILE MILL PRODUCTS) 57,332
4,000 MITSUBISHI SECURITIES COMPANY LIMITED (SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES &
SERVICES)+ 64,231
123 MITSUBISHI UFJ FINANCIAL GROUP INCORPORATED (DEPOSITORY INSTITUTIONS) 1,881,053
22,000 MITSUI & COMPANY LIMITED (WHOLESALE TRADE DURABLE GOODS) 318,131
10,000 MITSUI CHEMICALS LIMITED (CHEMICALS & ALLIED PRODUCTS) 73,577
134
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
JAPAN (CONTINUED)
10,000 MITSUI ENGINEERING & SHIPBUILDING COMPANY LIMITED (TRANSPORTATION EQUIPMENT) $ 32,455
11,000 MITSUI FUDOSAN COMPANY LIMITED (REAL ESTATE) 252,804
9,000 MITSUI MINING & SMELTING COMPANY LIMITED (METAL MINING) 63,008
16,000 MITSUI O.S.K. LINES LIMITED (WATER TRANSPORTATION) 108,207
17,000 MITSUI SUMITOMO INSURANCE COMPANY LIMITED (INSURANCE CARRIERS) 231,240
8,000 MITSUI TRUST HOLDINGS INCORPORATED (DEPOSITORY INSTITUTIONS) 116,975
6,000 MITSUKOSHI LIMITED (APPAREL & ACCESSORY STORES) 38,488
1,200 MITSUMI ELECTRIC COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT) 15,691
139 MIZUHO FINANCIAL GROUP INCORPORATED (BANKING) 1,137,273
2,900 MURATA MANUFACTURING COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS,
EXCEPT COMPUTER EQUIPMENT) 196,372
3,200 NAMCO BANDAI HOLDINGS INCORPORATED (AMUSEMENT & RECREATION SERVICES) 43,827
28,000 NEC CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 196,737
600 NEC ELECTRONICS CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT) 24,418
9 NET ONE SYSTEMS COMPANY LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 18,505
4,000 NGK INSULATORS LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT) 58,760
3,000 NGK SPARK PLUG COMPANY LIMITED (TRANSPORTATION EQUIPMENT) 69,966
2,000 NHK SPRING COMPANY LIMITED (TRANSPORTATION EQUIPMENT) 25,319
400 NICHII GAKKAN COMPANY (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 9,278
5,000 NICHIREI CORPORATION (FOOD & KINDRED PRODUCTS) 24,257
1,600 NIDEC CORPORATION (WHOLESALE TRADE DURABLE GOODS) 131,317
12,000 NIKKO CORDIAL CORPORATION (FINANCIAL) 198,811
4,000 NIKON CORPORATION (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL &
OPTICAL) 71,708
1,400 NINTENDO COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT) 209,346
5 NIPPON BUILDING FUND INCORPORATED (REITS) 46,304
3,000 NIPPON ELECTRIC GLASS COMPANY LIMITED (MISCELLANEOUS MANUFACTURING INDUSTRIES) 74,681
11,000 NIPPON EXPRESS COMPANY LIMITED (MOTOR FREIGHT TRANSPORTATION & WAREHOUSING) 62,430
2,000 NIPPON KAYAKU COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 17,706
8,000 NIPPON LIGHT METAL COMPANY LIMITED (METAL MINING) 22,090
3,000 NIPPON MEAT PACKERS INCORPORATED (FOOD & KINDRED PRODUCTS) 31,427
11,500 NIPPON MINING HOLDINGS INCORPORATED (OIL & GAS EXTRACTION) 97,022
18,000 NIPPON OIL CORPORATION (OIL & GAS EXTRACTION) 141,155
15 NIPPON PAPER GROUP INCORPORATED (PAPER & ALLIED PRODUCTS) 64,868
4,000 NIPPON SANSO CORPORATION (CHEMICALS & ALLIED PRODUCTS) 29,567
6,000 NIPPON SHEET GLASS COMPANY LIMITED (BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME
DEALERS) 33,441
2,000 NIPPON SHOKUBAI COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 23,772
89,000 NIPPON STEEL CORPORATION (PRIMARY METAL INDUSTRIES) 344,809
77 NIPPON TELEGRAPH & TELEPHONE CORPORATION (COMMUNICATIONS) 330,374
16,000 NIPPON YUSEN KABUSHIKI KAISHA (WATER TRANSPORTATION) 97,740
8,000 NISHI-NIPPON CITY BANK LIMITED (DEPOSITORY INSTITUTIONS)+ 43,636
4,000 NISHIMATSU CONSTRUCTION COMPANY LIMITED (BUILDING CONSTRUCTION-GENERAL CONTRACTORS &
OPERATIVE BUILDERS) 16,381
2,000 NISSAN CHEMICAL INDUSTRIES LIMITED (CHEMICALS & ALLIED PRODUCTS) 33,951
33,000 NISSAN MOTOR COMPANY LIMITED (AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS) 391,963
3,000 NISSHIN SEIFUN GROUP INCORPORATED (FOOD & KINDRED PRODUCTS) 30,663
135
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
JAPAN (CONTINUED)
12,000 NISSHIN STEEL COMPANY LIMITED (FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION
EQUIPMENT) $ 41,597
3,000 NISSHINBO INDUSTRIES INCORPORATED (TEXTILE MILL PRODUCTS) 33,619
1,400 NISSIN FOOD PRODUCTS COMPANY LIMITED (FOOD & KINDRED PRODUCTS) 43,296
600 NITORI COMPANY LIMITED (HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES) 31,249
2,400 NITTO DENKO CORPORATION (CHEMICALS & ALLIED PRODUCTS) 203,704
1,600 NOK CORPORATION (TRANSPORTATION EQUIPMENT) 43,093
25,400 NOMURA HOLDINGS INCORPORATED (SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES) 566,483
3 NOMURA REAL ESTATE OFFICE FUND (REITS) 25,463
300 NOMURA RESEARCH INSTITUTE LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 36,780
6,000 NSK LIMITED (PRIMARY METAL INDUSTRIES) 52,099
5,000 NTN CORPORATION (FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT) 39,635
18 NTT DATA CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 86,559
252 NTT DOCOMO INCORPORATED (COMMUNICATIONS) 372,540
3 NTT URBAN DEVELOPMENT CORPORATION (REAL ESTATE) 25,998
8,000 OBAYASHI CORPORATION (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 65,115
100 OBIC COMPANY LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 21,087
10,000 ODAKYU ELECTRIC RAILWAY COMPANY LIMITED (RAILROAD TRANSPORTATION) 61,937
11,000 OJI PAPER COMPANY LIMITED (PAPER & ALLIED PRODUCTS) 67,664
9,000 OKI ELECTRIC INDUSTRY COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS,
EXCEPT COMPUTER EQUIPMENT) 28,751
3,000 OKUMURA CORPORATION (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 16,517
3,000 OLYMPUS CORPORATION (GENERAL MERCHANDISE STORES) 88,190
3,100 OMRON CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT) 89,023
2,000 ONWARD KASHIYAMA COMPANY LIMITED (APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS &
SIMILAR MATERIALS) 35,344
600 ORACLE CORPORATION JAPAN (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 30,025
600 ORIENTAL LAND COMPANY LIMITED (AMUSEMENT & RECREATION SERVICES) 34,817
1,220 ORIX CORPORATION (MISCELLANEOUS RETAIL) 379,890
28,000 OSAKA GAS COMPANY LIMITED (ELECTRIC, GAS & SANITARY SERVICES) 101,818
2,600 PIONEER CORPORATION (HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES) 42,015
1,200 PROMISE COMPANY LIMITED (NON-DEPOSITORY CREDIT INSTITUTIONS) 72,591
2,100 QP CORPORATION (FOOD & KINDRED PRODUCTS) 21,250
69 RAKUTEN INCORPORATED (COMMUNICATIONS) 62,727
67 RESONA HOLDINGS INCORPORATED (DEPOSITORY INSTITUTIONS)+ 230,544
10,000 RICOH COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 195,412
700 RINNAI CORPORATION (BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS) 20,994
1,500 ROHM COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 158,666
400 RYOHIN KEIKAKU COMPANY LIMITED (MISCELLANEOUS RETAIL) 33,543
2,000 SANDEN CORPORATION (TRANSPORTATION EQUIPMENT) 8,802
2,000 SANKEN ELECTRIC COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT) 34,240
800 SANKYO COMPANY LIMITED (WHOLESALE TRADE NON-DURABLE GOODS) 55,055
1,100 SANTEN PHARMACEUTICAL COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 26,449
3,000 SANWA SHUTTER CORPORATION (BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS) 19,652
26,000 SANYO ELECTRIC COMPANY LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 71,351
5,000 SAPPORO HOLDINGS LIMITED (EATING & DRINKING PLACES) 26,168
78 SBI HOLDINGS INCORPORATED (HOLDING & OTHER INVESTMENT OFFICES)+ 44,136
3,000 SECOM COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 153,441
136
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
JAPAN (CONTINUED)
2,200 SEGA SAMMY HOLDINGS INCORPORATED (AMUSEMENT & RECREATION SERVICES) $ 89,346
1,700 SEIKO EPSON CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 46,941
2,000 SEINO TRANSPORTATION COMPANY LIMITED (MOTOR FREIGHT TRANSPORTATION & WAREHOUSING) 20,867
7,000 SEKISUI CHEMICAL COMPANY LIMITED (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE
BUILDERS) 59,295
7,000 SEKISUI HOUSE LIMITED (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 104,435
11,820 SEVEN & I HOLDINGS COMPANY LIMITED (FOOD STORES) 467,980
90 SFCG COMPANY LIMITED (SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES) 20,363
14,000 SHARP CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 248,003
900 SHIMACHU COMPANY LIMITED (MISCELLANEOUS RETAIL) 28,292
300 SHIMAMURA COMPANY LIMITED (APPAREL & ACCESSORY STORES) 34,894
1,300 SHIMANO INCORPORATED (HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES) 39,099
9,000 SHIMIZU CORPORATION (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 65,531
5,700 SHIN-ETSU CHEMICAL COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 309,456
8,000 SHINKO SECURITIES COMPANY LIMITED (SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES &
SERVICES)+ 44,384
13,000 SHINSEI BANK LIMITED (DEPOSITORY INSTITUTIONS) 91,011
5,000 SHIONOGI & COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 82,031
5,000 SHISEIDO COMPANY LIMITED (APPAREL & ACCESSORY STORES) 93,033
8,000 SHIZUOKA BANK LIMITED (DEPOSITORY INSTITUTIONS) 80,748
16,000 SHOWA DENKO KK (CHEMICALS & ALLIED PRODUCTS) 71,096
2,900 SHOWA SHELL SEKIYU KK (OIL & GAS EXTRACTION) 32,918
800 SMC CORPORATION (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 124,656
10,900 SOFTBANK CORPORATION (HOLDING & OTHER INVESTMENT OFFICES) 319,499
3,700 SOJITZ HOLDINGS CORPORATION (WHOLESALE TRADE NON-DURABLE GOODS)+ 21,879
12,000 SOMPO JAPAN INSURANCE INCORPORATED (INSURANCE CARRIERS) 174,036
14,600 SONY CORPORATION (HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES) 676,041
2,000 STANLEY ELECTRIC COMPANY LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 42,651
500 SUMCO CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 26,848
3,000 SUMITOMO BAKELITE COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 27,171
21,000 SUMITOMO CHEMICAL COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 170,926
15,000 SUMITOMO CORPORATION (SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES) 213,594
10,300 SUMITOMO ELECTRIC INDUSTRIES LIMITED (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS:
PHOTOGRAPHIC, MEDICAL & OPTICAL) 163,207
7,000 SUMITOMO HEAVY INDUSTRIES LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 67,264
59,000 SUMITOMO METAL INDUSTRIES LIMITED (FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION
EQUIPMENT) 253,144
8,000 SUMITOMO METAL MINING COMPANY LIMITED (MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS) 111,606
86 SUMITOMO MITSUI FINANCIAL GROUP INCORPORATED (DEPOSITORY INSTITUTIONS) 949,873
7,000 SUMITOMO OSAKA CEMENT COMPANY LIMITED (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 25,514
5,000 SUMITOMO REALTY & DEVELOPMENT COMPANY LIMITED (REAL ESTATE) 138,488
2,000 SUMITOMO RUBBER INDUSTRIES LIMITED (TRANSPORTATION EQUIPMENT) 26,134
18,000 SUMITOMO TRUST & BANKING COMPANY LIMITED (DEPOSITORY INSTITUTIONS) 208,292
3,000 SURUGA BANK LIMITED (DEPOSITORY INSTITUTIONS) 40,552
1,000 SUZUKEN COMPANY LIMITED (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL
& OPTICAL) 31,351
1,300 SYKLARK COMPANY LIMITED (EATING & DRINKING PLACES) 23,250
3,300 T&D HOLDINGS INCORPORATED (INSURANCE CARRIERS) 257,944
13,000 TAIHEIYO CEMENT CORPORATION (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 62,846
12,000 TAISEI CORPORATION (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 57,502
137
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
JAPAN (CONTINUED)
2,000 TAISHO PHARMACEUTICAL COMPANY LIMITED (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS:
PHOTOGRAPHIC, MEDICAL & OPTICAL) $ 40,272
2,000 TAIYO YUDEN COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT) 31,776
3,000 TAKARA HOLDINGS INCORPORATED (EATING & DRINKING PLACES) 18,352
4,000 TAKASHIMAYA COMPANY LIMITED (APPAREL & ACCESSORY STORES) 60,969
12,800 TAKEDA PHARMACEUTICAL COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 729,720
1,550 TAKEFUJI CORPORATION (HOLDING & OTHER INVESTMENT OFFICES) 97,583
1,000 TAKUMA COMPANY LIMITED (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 8,122
3,000 TANABE SEIYAKU COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 33,263
1,800 TDK CORPORATION (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 135,650
11,000 TEIJIN LIMITED (TEXTILE MILL PRODUCTS) 73,178
3,000 TEIKOKU OIL COMPANY LIMITED (OIL & GAS EXTRACTION)(A) 36,219
2,300 TERUMO CORPORATION (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL) 75,624
1,600 THK COMPANY LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 51,385
600 TIS INCORPORATED (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 16,211
13,000 TOBU RAILWAY COMPANY LIMITED (RAILROAD TRANSPORTATION) 68,369
3,000 TODA CORPORATION (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 13,458
2,200 TOHO COMPANY LIMITED TOKYO (MOTION PICTURES) 42,430
6,200 TOHOKU ELECTRIC POWER COMPANY INCORPORATED (ELECTRIC, GAS & SANITARY SERVICES) 134,061
3,000 TOKUYAMA CORPORATION (CHEMICALS & ALLIED PRODUCTS) 50,875
600 TOKYO BROADCASTING SYSTEM INCORPORATED (COMMUNICATIONS) 16,109
16,700 TOKYO ELECTRIC POWER COMPANY INCORPORATED (ELECTRIC, GAS & SANITARY SERVICES) 416,436
2,400 TOKYO ELECTRON LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 165,573
31,000 TOKYO GAS COMPANY LIMITED (ELECTRIC, GAS & SANITARY SERVICES) 135,641
1,700 TOKYO STEEL MANUFACTURING COMPANY LIMITED (FURNITURE & FIXTURES) 34,520
1,000 TOKYO STYLE COMPANY LIMITED (APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS &
SIMILAR MATERIALS) 11,903
4,000 TOKYO TATEMONO COMPANY LIMITED (INSURANCE AGENTS, BROKERS & SERVICE) 43,636
13,000 TOKYU CORPORATION (TRANSPORTATION SERVICES) 87,587
6,000 TOKYU LAND CORPORATION (REAL ESTATE) 53,628
5,000 TONENGENERAL SEKIYU KK (OIL & GAS EXTRACTION) 50,892
8,000 TOPPAN PRINTING COMPANY LIMITED (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 110,926
20,000 TORAY INDUSTRIES INCORPORATED (TEXTILE MILL PRODUCTS) 163,806
42,000 TOSHIBA CORPORATION (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 244,078
7,000 TOSOH CORPORATION (CHEMICALS & ALLIED PRODUCTS) 34,970
3,700 TOSTEM INAX HOLDING CORPORATION (MISCELLANEOUS MANUFACTURING INDUSTRIES) 79,533
4,000 TOTO LIMITED (HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES) 37,145
2,800 TOYO SEIKAN KAISHA LIMITED (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 50,790
1,000 TOYO SUISAN KAISHA LIMITED (FOOD & KINDRED PRODUCTS) 15,268
9,000 TOYOBO COMPANY LIMITED (TEXTILE MILL PRODUCTS) 27,833
1,100 TOYODA GOSEI COMPANY LIMITED (TRANSPORTATION EQUIPMENT) 24,112
3,000 TOYOTA INDUSTRIES CORPORATION (TRANSPORTATION EQUIPMENT) 122,600
41,900 TOYOTA MOTOR CORPORATION (TRANSPORTATION EQUIPMENT) 2,289,014
2,000 TOYOTA TSUSHO CORPORATION (BUSINESS SERVICES) 54,206
1,500 TREND MICRO INCORPORATED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 52,634
15,000 UBE INDUSTRIES LIMITED JAPAN (CHEMICALS & ALLIED PRODUCTS) 44,223
700 UNI-CHARM CORPORATION (APPAREL & ACCESSORY STORES) 34,376
138
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
JAPAN (CONTINUED)
1,000 UNIDEN CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) $ 16,041
2,000 UNY COMPANY LIMITED (MISCELLANEOUS RETAIL) 31,997
1,500 USHIO INCORPORATED (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL
& OPTICAL) 35,748
380 USS COMPANY LIMITED (AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS) 25,893
2,000 WACOAL CORPORATION (APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS) 27,188
25 WEST JAPAN RAILWAY COMPANY (RAILROAD TRANSPORTATION) 105,565
216 YAHOO! JAPAN CORPORATION (BUSINESS SERVICES)+ 131,765
1,700 YAKULT HONSHA COMPANY LIMITED (FOOD & KINDRED PRODUCTS) 40,803
1,100 YAMADA DENKI COMPANY LIMITED (HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES) 126,822
2,800 YAMAHA CORPORATION (HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES) 49,482
2,400 YAMAHA MOTOR COMPANY LIMITED (TRANSPORTATION EQUIPMENT) 59,337
7,900 YAMANOUCHI PHARMACEUTICAL COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 300,025
5,000 YAMATO TRANSPORT COMPANY LIMITED (TRANSPORTATION SERVICES) 102,379
2,000 YAMAZAKI BAKING COMPANY LIMITED (FOOD & KINDRED PRODUCTS) 15,650
3,000 YASKAWA ELECTRIC CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT) 33,874
2,700 YOKOGAWA ELECTRIC CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT) 48,059
3,000 ZEON CORPORATION (CHEMICALS & ALLIED PRODUCTS) 38,692
41,389,534
---------------
LUXEMBOURG - 0.03%
3,124 STOLT OFFSHORE SA (ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES)+ 49,099
---------------
NETHERLANDS - 4.56%
26,045 ABN AMRO HOLDINGS NV (DEPOSITORY INSTITUTIONS) 780,871
20,651 AEGON NV (INSURANCE CARRIERS) 382,151
3,846 AKZO NOBEL NV (CHEMICALS & ALLIED PRODUCTS) 204,096
6,810 ASML HOLDING NV (SEMICONDUCTOR EQUIPMENT MANUFACTURING & RELATED)+ 139,059
1,613 BUHRMANN NV (WHOLESALE TRADE DURABLE GOODS)+ 28,539
593 CORIO NV (REITS) 38,267
2,186 DSM NV (CHEMICALS & ALLIED PRODUCTS) 99,819
3,553 EUROPEAN AERONAUTIC DEFENCE & SPACE COMPANY (TRANSPORTATION BY AIR) 149,710
2,063 GETRONICS NV (BUSINESS SERVICES) 24,976
8,044 HAGEMEYER NV (WHOLESALE TRADE NON-DURABLE GOODS)+ 40,650
3,402 HEINEKEN NV (EATING & DRINKING PLACES) 129,124
529 IHC CALAND NV (OIL & GAS EXTRACTION)+ 53,049
27,490 ING GROEP NV (FINANCIAL SERVICES) 1,086,035
28,191 KONINKLIJKE (ROYAL) KPN NV (COMMUNICATIONS) 317,720
19,271 KONINKLIJKE (ROYAL) PHILIPS ELECTRONICS NV (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT &
COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 651,334
21,925 KONINKLIJKE AHOLD NV (FOOD STORES)+ 172,439
1,489 OCE NV (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 27,013
2,059 QIAGEN NV (HEALTH SERVICES)+ 30,442
753 RANDSTAD HOLDINGS NV (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 44,632
9,885 REED ELSEVIER NV (COMMUNICATIONS) 141,714
727 RODAMCO EUROPE NV (REITS) 72,992
58,297 ROYAL DUTCH SHELL PLC CLASS A (PETROLEUM REFINING & RELATED INDUSTRIES) 1,824,121
139
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
NETHERLANDS (CONTINUED)
2,332 ROYAL NUMICO NV (FOOD & KINDRED PRODUCTS)+ $ 103,179
6,028 TNT NV (TRANSPORTATION SERVICES) 208,706
8,297 UNILEVER NV (FOOD & KINDRED PRODUCTS) 576,139
2,818 VEDIOR NV (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 55,221
3,327 VNU NV (COMMUNICATIONS) 108,174
349 WERELDHAVE NV (REITS) 39,249
4,362 WOLTERS KLUWER NV (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 108,788
7,638,209
---------------
NEW ZEALAND - 0.17%
18,500 AUCKLAND INTERNATIONAL AIRPORT LIMITED (CONSTRUCTION SPECIAL TRADE CONTRACTORS) 23,233
4,376 CONTACT ENERGY LIMITED (ELECTRIC, GAS & SANITARY SERVICES) 20,904
4,714 FISHER & PAYKEL APPLIANCES HOLDINGS LIMITED (HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES) 12,304
8,696 FISHER & PAYKEL HEALTHCARE CORPORATION (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS:
PHOTOGRAPHIC, MEDICAL & OPTICAL) 22,162
7,167 FLETCHER BUILDING LIMITED (BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS) 39,267
7,892 SKY CITY ENTERTAINMENT GROUP LIMITED (HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES) 26,041
3,579 SKY NETWORK TELEVISION LIMITED (COMMUNICATIONS) 14,079
31,598 TELECOM CORPORATION OF NEW ZEALAND LIMITED (COMMUNICATIONS) 107,763
705 TENON LIMITED (LUMBER & WOOD PRODUCTS, EXCEPT FURNITURE)+ 1,471
4,703 TOWER LIMITED (BUSINESS SERVICES)+ 7,556
3,233 VECTOR LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 5,593
2,606 WAREHOUSE GROUP LIMITED (GENERAL MERCHANDISE STORES) 6,208
372 WASTE MANAGEMENT NZ LIMITED (ADMINISTRATION OF ENVIRONMENTAL QUALITY & HOUSING PROGRAMS) 1,944
288,525
---------------
NORWAY - 0.76%
10,214 DEN NORSKE BANK ASA (DEPOSITORY INSTITUTIONS) 137,540
654 FRONTLINE LIMITED (WATER TRANSPORTATION) 21,805
2,006 NORSK HYDRO ASA (OIL & GAS EXTRACTION) 277,931
1,800 NORSKE SKOGINDUSTRIER ASA (PAPER & ALLIED PRODUCTS) 30,487
2,642 ORKLA ASA (FOOD & KINDRED PRODUCTS) 131,020
831 PETROLEUM GEO-SERVICES ASA (OIL & GAS EXTRACTION)+ 38,737
500 PROSAFE ASA (OIL & GAS EXTRACTION) 26,131
919 SCHIBSTED ASA (COMMUNICATIONS) 25,311
33 SHIP FINANCE INTERNATIONAL LIMITED (WATER TRANSPORTATION) 556
9,812 STATOIL ASA (PETROLEUM REFINING & RELATED INDUSTRIES) 282,969
400 STOLT-NIELSEN ASA (WATER TRANSPORTATION) 12,390
3,964 STOREBRAND ASA (INSURANCE CARRIERS) 44,306
2,116 TANDBERG ASA (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 19,130
800 TANDBERG TELEVISION ASA (COMMUNICATIONS)+ 16,785
11,693 TELENOR ASA (COMMUNICATIONS) 125,787
3,383 TOMRA SYSTEMS ASA (ADMINISTRATION OF ENVIRONMENTAL QUALITY & HOUSING PROGRAMS) 27,101
3,400 YARA INTERNATIONAL ASA (AGRICULTURAL SERVICES) 54,085
1,272,071
---------------
140
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
PORTUGAL - 0.30%
4,914 BANCO BPI SA (DEPOSITORY INSTITUTIONS) $ 35,016
27,491 BANCO COMERCIAL PORTUGUES SA (DEPOSITORY INSTITUTIONS) 87,619
1,543 BANCO ESPIRITO SANTO SA (DEPOSITORY INSTITUTIONS) 28,142
5,340 BRISA-AUTO ESTRADAS DE PORTUGAL SA (SOCIAL SERVICES) 52,547
3,821 CIMPOR CIMENTOS DE PORTUGAL SA (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 25,514
24,710 ELECTRICIDADE DE PORTUGAL SA (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT) 97,022
716 JERONIMO MARTINS (WHOLESALE TRADE NON-DURABLE GOODS) 12,382
10,266 PORTUGAL TELECOM SGPS SA (COMMUNICATIONS) 124,533
1,398 PT MULTIMEDIA SERVICOS DE TELECOMUNICACOES E MULTIMEDIA SGPS SA (COMMUNICATIONS) 17,111
17,058 SONAE SGPS SA (GENERAL MERCHANDISE STORES)+ 27,907
507,793
---------------
SINGAPORE - 0.82%
9,000 ALLGREEN PROPERTIES LIMITED (REAL ESTATE) 8,689
11,000 ASCENDAS REIT (REITS) 14,772
15,000 CAPITALAND LIMITED (REAL ESTATE) 44,930
14,300 CAPITAMALL TRUST (REITS) 20,974
19,000 CHARTERED SEMICONDUCTOR MANUFACTURING LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT &
COMPONENTS, EXCEPT COMPUTER EQUIPMENT)+ 18,461
8,000 CITY DEVELOPMENTS LIMITED (REAL ESTATE) 53,470
29,000 COMFORTDELGRO CORPORATION LIMITED (TRANSPORTATION SERVICES) 30,151
1,000 CREATIVE TECHNOLOGY LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 7,303
4,000 DATACRAFT ASIA LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT)+ 4,520
17,000 DBS GROUP HOLDINGS LIMITED (DEPOSITORY INSTITUTIONS) 171,489
3,000 FRASER & NEAVE LIMITED (FOOD & KINDRED PRODUCTS) 36,761
2,000 HAW PAR CORPORATION LIMITED (BUSINESS SERVICES) 7,365
2,006 JARDINE CYCLE & CARRIAGE LIMITED (WHOLESALE TRADE NON-DURABLE GOODS) 13,780
8,000 KEPPEL CORPORATION LIMITED (BUSINESS SERVICES) 68,323
7,000 KEPPEL LAND LIMITED (REAL ESTATE) 21,401
9,000 NEPTUNE ORIENT LINES LIMITED (WATER TRANSPORTATION) 12,142
36,200 OVERSEA-CHINESE BANKING CORPORATION (DEPOSITORY INSTITUTIONS) 150,101
1,000 OVERSEAS UNION ENTERPRISE LIMITED (HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES) 7,365
11,000 PARKWAY HOLDINGS LIMITED (HEALTH SERVICES) 16,747
15,980 SEMBCORP INDUSTRIES LIMITED (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 34,613
5,035 SEMBCORP LOGISTICS LIMITED (MOTOR FREIGHT TRANSPORTATION & WAREHOUSING) 5,516
9,000 SEMBCORP MARINE LIMITED (TRANSPORTATION EQUIPMENT) 15,874
8,000 SINGAPORE AIRLINES LIMITED (TRANSPORTATION SERVICES) 69,313
9,000 SINGAPORE EXCHANGE LIMITED (BUSINESS SERVICES) 22,279
2,000 SINGAPORE LAND LIMITED (REAL ESTATE) 8,602
25,000 SINGAPORE POST LIMITED (TRANSPORTATION SERVICES) 18,566
19,000 SINGAPORE PRESS HOLDINGS LIMITED (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 52,913
21,000 SINGAPORE TECHNOLOGIES ENGINEERING LIMITED (BUILDING CONSTRUCTION-GENERAL CONTRACTORS &
OPERATIVE BUILDERS) 40,288
95,000 SINGAPORE TELECOMMUNICATIONS LIMITED (COMMUNICATIONS) 155,800
11,000 SMRT CORPORATION LIMITED (TRANSPORTATION SERVICES) 7,624
18,000 STATS CHIPPAC LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT)+ 14,370
12,000 SUNTEC REIT (REITS) 9,803
16,000 UNITED OVERSEAS BANK LIMITED (DEPOSITORY INSTITUTIONS) 154,470
141
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
SINGAPORE (CONTINUED)
9,000 UNITED OVERSEAS LAND LIMITED (REAL ESTATE) $ 16,097
4,000 VENTURE CORPORATION LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT) 31,686
8,000 WING TAI HOLDINGS LIMITED (REAL ESTATE) 9,407
1,375,965
---------------
SPAIN - 3.66%
3,196 ABERTIS INFRAESTRUCTURAS SA (SOCIAL SERVICES) 82,845
363 ACCIONA SA (HEAVY CONSTRUCTION OTHER THAN BUILDING CONSTRUCTION CONTRACTS) 56,550
2,952 ACERINOX SA (FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT) 48,331
3,773 ACTIVIDADES DE CONSTRUCCION Y SERVICIOS SA (HEAVY CONSTRUCTION OTHER THAN BUILDING CONSTRUCTION
CONTRACTS) 146,589
10 AGUAS DE BARCELONA (WATER SUPPLY) 262
4,007 ALTADIS SA (TOBACCO PRODUCTS) 179,669
1,019 ANTENA 3 DE TELEVISION SA (COMMUNICATIONS) 26,291
49,496 BANCO BILBAO VIZCAYA ARGENTARIA SA (DEPOSITORY INSTITUTIONS) 1,032,891
12,068 BANCO POPULAR ESPANOL SA (DEPOSITORY INSTITUTIONS) 177,836
86,795 BANCO SANTANDER CENTRAL HISPANO SA (DEPOSITORY INSTITUTIONS) 1,267,456
3,224 CINTRA CONCESIONES DE INFRAESTRUCTURAS DE TRANSPORTE SA (TRANSPORTATION SERVICES) 41,844
1,699 CORP MAPFRE SA (INSURANCE CARRIERS) 34,611
1,410 EBRO PULEVA SA (AGRICULTURAL PRODUCTION CROPS) 25,699
13,638 ENDESA SA (ELECTRIC, GAS & SANITARY SERVICES) 440,287
762 FOMENTO DE CONSTRUCCIONES Y CONTRATAS SA (HEAVY CONSTRUCTION OTHER THAN BUILDING CONSTRUCTION
CONTRACTS) 56,422
2,075 GAMESA CORPORATION TECNOLOGICA SA (ELECTRIC, GAS & SANITARY SERVICES) 39,907
2,692 GAS NATURAL SDG SA (ELECTRIC, GAS & SANITARY SERVICES) 77,937
871 GRUPO FERROVIAL SA (HEAVY CONSTRUCTION OTHER THAN BUILDING CONSTRUCTION CONTRACTS) 70,404
12,000 IBERDROLA SA (ELECTRIC, GAS & SANITARY SERVICES) 387,406
8,826 IBERIA LINEAS AEREAS DE ESPANA SA (TRANSPORTATION BY AIR) 24,387
2,090 INDRA SISTEMAS SA (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 42,500
2,996 INDUSTRIA DE DISENO TEXTIL SA (APPAREL & ACCESSORY STORES) 115,638
513 INMOBILIARIA COLONIAL SA (REAL ESTATE) 36,058
618 METROVACESA SA (REAL ESTATE) 52,500
1,473 NH HOTELES SA (HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES) 25,366
1,224 PROMOTORA DE INFORMACIONES SA (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 22,620
13,058 REPSOL YPF SA (OIL & GAS EXTRACTION) 370,925
1,811 SACYR VALLEHERMOSO SA (REAL ESTATE) 61,670
1,092 SOCIEDAD GENERAL DE AGUAS DE BARCELONA SA (ELECTRIC, GAS & SANITARY SERVICES) 28,659
457 SOGECABLE SA (COMMUNICATIONS)+ 18,270
2,598 TELEFONICA PUBLICIDAD E INFORMACION SA (COMMUNICATIONS) 28,965
65,113 TELEFONICA SA (COMMUNICATIONS) 1,021,854
1,943 UNION FENOSA SA (ELECTRIC, GAS & SANITARY SERVICES) 73,865
2,270 ZELTIA SA (HEALTH SERVICES)+ 17,991
6,134,505
---------------
SWEDEN - 2.41%
1,292 ALFA LAVAL AB (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL) 34,753
4,687 ASSA ABLOY AB CLASS B (FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT) 86,958
4,614 ATLAS COPCO AB A SHARES (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 129,738
3,306 ATLAS COPCO AB B SHARES (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 86,380
142
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
SWEDEN (CONTINUED)
558 AXFOOD AB (FOOD & KINDRED PRODUCTS) $ 13,863
763 BILLERUD AKTIEBOLAG (PAPER & ALLIED PRODUCTS) 12,246
1,399 CAPIO AB (HEALTH SERVICES)+ 26,135
674 CASTELLUM AB (REAL ESTATE) 28,514
725 D CARNEGIE & COMPANY AB (HOLDING & OTHER INVESTMENT OFFICES) 15,266
3,907 ELECTROLUX AB (HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES) 112,116
1,078 ELEKTA AB CLASS B (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL &
OPTICAL) 17,786
2,481 ENIRO AB (COMMUNICATIONS) 28,669
1,335 FABEGE AB (REAL ESTATE) 28,111
2,975 GAMBRO AB CLASS A (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL &
OPTICAL) 35,524
1,442 GAMBRO AB CLASS B (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL &
OPTICAL) 17,311
2,633 GETINGE AB (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL) 42,596
6,830 HENNES & MAURITZ AB CLASS B (APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR
MATERIALS) 249,049
517 HOGANAS AB (FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT) 12,546
931 HOLMEN AB (PAPER & ALLIED PRODUCTS) 39,327
581 KUNGSLEDEN (PROPERTIES)+ 22,081
2,686 LUNDIN PETROLEUM AB (OIL & GAS EXTRACTION)+ 31,038
761 MODERN TIMES GROUP AB CLASS B (COMMUNICATIONS)+ 35,761
31,359 NORDEA AB (DEPOSITORY INSTITUTIONS) 387,533
1,424 OMX AB (BUSINESS SERVICES)+ 27,242
550 ORIFLAME COSMETICS SA (APPAREL & ACCESSORY STORES) 18,325
2,851 SANDVIK AB (BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS) 168,567
1,403 SAS AB (TRANSPORTATION BY AIR)+ 19,635
1,398 SCANIA AB (TRANSPORTATION EQUIPMENT) 60,669
4,707 SECURITAS AB (BUSINESS SERVICES) 90,653
7,012 SKANDINAVISKA ENSKILDA BANKEN AB (DEPOSITORY INSTITUTIONS) 173,758
5,840 SKANSKA AB (HEAVY CONSTRUCTION OTHER THAN BUILDING CONSTRUCTION CONTRACTS) 95,602
6,340 SKF AB (FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT) 103,381
718 SSAB SVENSKT STAL AB A SHARES (FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION
EQUIPMENT) 34,386
300 SSAB SVENSKT STAL AB B SHARES (FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION
EQUIPMENT) 13,347
2,859 SVENSKA CELLULOSA AB (PAPER & ALLIED PRODUCTS) 125,541
7,814 SVENSKA HANDELSBANKEN (DEPOSITORY INSTITUTIONS) 217,209
5,125 SWEDISH MATCH AB (TOBACCO PRODUCTS) 70,079
5,186 TELE2 AB (COMMUNICATIONS) 61,259
215,937 TELEFONAKTIEBOLAGET LM ERICSSON CLASS B (COMMUNICATIONS) 820,663
27,911 TELIASONERA AB (COMMUNICATIONS) 167,355
1,192 TRELLEBORG AB (MISCELLANEOUS MANUFACTURING INDUSTRIES) 27,778
1,495 VOLVO AB A SHARES (TRANSPORTATION EQUIPMENT) 68,334
3,279 VOLVO AB B SHARES (TRANSPORTATION EQUIPMENT) 153,456
267 WIHLBORGS FASTIGHETER AB (REAL ESTATE)+ 8,125
5,917 WM-DATA AB (BUSINESS SERVICES) 19,373
4,038,038
---------------
SWITZERLAND - 6.69%
28,499 ABB LIMITED (HOLDING & OTHER INVESTMENT OFFICES)+ 359,612
1,802 ADECCO SA (BUSINESS SERVICES) 100,699
1,023 CIBA SPECIALTY CHEMICALS AG (CHEMICALS & ALLIED PRODUCTS) 61,169
143
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
SWITZERLAND (CONTINUED)
3,866 CLARIANT AG (CHEMICALS & ALLIED PRODUCTS) $ 59,903
7,051 COMPAGNIE FINANCIERE RICHEMONT AG (GENERAL MERCHANDISE STORES) 338,041
17,718 CREDIT SUISSE GROUP (NON-DEPOSITORY CREDIT INSTITUTIONS) 994,187
60 GEBERIT AG (BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS) 57,301
104 GIVAUDAN (CHEMICALS & ALLIED PRODUCTS) 79,936
2,612 HOLCIM LIMITED (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 207,974
622 KUDELSKI SA (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 17,725
139 KUEHNE & NAGEL INTERNATIONAL AG (TRANSPORTATION SERVICES)+ 45,049
54 KUONI REISEN HOLDING (AMUSEMENT & RECREATION SERVICES) 28,001
1,354 LOGITECH INTERNATIONAL SA (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT)+ 54,112
610 LONZA GROUP AG (CHEMICALS & ALLIED PRODUCTS) 41,808
502 MICRONAS SEMICONDUCTOR HOLDING AG (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT)+ 16,000
5,851 NESTLE SA (FOOD & KINDRED PRODUCTS) 1,736,921
303 NOBEL BIOCARE HOLDING AG (APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR
MATERIALS)+ 67,461
33,773 NOVARTIS AG (CHEMICALS & ALLIED PRODUCTS) 1,878,221
672 PHONAK HOLDING AG (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL &
OPTICAL) 38,248
633 PSP SWISS PROPERTY AG (REAL ESTATE)+ 31,513
84 RIETER HOLDING AG (CHEMICALS & ALLIED PRODUCTS) 33,506
10,269 ROCHE HOLDING AG (HEALTH SERVICES) 1,528,948
840 SCHINDLER HOLDING AG (BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS) 44,782
80 SERONO SA CLASS B (CHEMICALS & ALLIED PRODUCTS) 55,751
70 SGS SOCIETE GENERALE DE SURVEILLANCE HOLDING SA (BUSINESS SERVICES) 64,864
104 SIG HOLDING AG (MACHINERY)+ 22,178
9,323 STMICROELECTRONICS NV (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 172,410
123 STRAUMANN HOLDING AG (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL &
OPTICAL) 28,022
57 SULZER AG (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 38,892
461 SWATCH GROUP AG (BEARER SHARES) (APPAREL & ACCESSORY STORES) 77,408
798 SWATCH GROUP AG (REGISTERED SHARES) (APPAREL & ACCESSORY STORES) 27,791
4,699 SWISS REINSURANCE (INSURANCE CARRIERS) 328,369
261 SWISSCOM AG (COMMUNICATIONS) 84,587
1,521 SYNGENTA AG (CHEMICALS & ALLIED PRODUCTS)+ 213,744
701 SYNTHES INCORPORATED (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL &
OPTICAL)+ 76,894
15,110 UBS AG (FINANCIAL SERVICES) 1,659,764
96 UNAXIS HOLDING AG (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 27,394
52 VALORA HOLDING AG (GENERAL MERCHANDISE STORES) 10,999
2,118 ZURICH FINANCIAL SERVICES AG (FINANCIAL SERVICES)+ 497,555
11,207,739
---------------
UNITED KINGDOM - 21.67%
7,885 3I GROUP PLC (HOLDING & OTHER INVESTMENT OFFICES) 128,850
9,022 AEGIS GROUP PLC (COMMUNICATIONS) 21,435
4,678 AGGREKO PLC (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 25,704
3,479 ALLIANCE UNICHEM PLC (WHOLESALE TRADE NON-DURABLE GOODS) 54,158
5,500 AMEC PLC (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 38,510
9,212 AMVESCAP PLC (HOLDING & OTHER INVESTMENT OFFICES) 85,947
20,872 ANGLO AMERICAN PLC (COAL MINING) 804,317
144
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
UNITED KINGDOM (CONTINUED)
21,729 ARM HOLDINGS PLC (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) $ 50,305
2,160 ARRIVA PLC (TRANSPORTATION BY AIR) 23,098
4,330 ASSOCIATED BRITISH PORTS HOLDINGS PLC (WATER TRANSPORTATION) 54,429
22,924 ASTRAZENECA PLC (CHEMICALS & ALLIED PRODUCTS) 1,155,022
34,774 AVIVA PLC (INSURANCE CARRIERS) 483,031
15,216 BAA PLC (CONSTRUCTION SPECIAL TRADE CONTRACTORS) 219,158
45,706 BAE SYSTEMS PLC (TRANSPORTATION BY AIR) 334,117
6,974 BALFOUR BEATTY PLC (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 45,074
93,438 BARCLAYS PLC (DEPOSITORY INSTITUTIONS) 1,093,359
3,107 BARRATT DEVELOPMENTS PLC (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 57,166
7,495 BBA GROUP PLC (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 36,559
1,481 BELLWAY PLC (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 31,778
1,398 BERKELEY GROUP HOLDINGS PLC (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 28,782
51,650 BG GROUP PLC (OIL & GAS EXTRACTION) 645,659
36,230 BHP BILLITON PLC (COAL MINING) 661,880
7,231 BOC GROUP PLC (CHEMICALS & ALLIED PRODUCTS) 194,353
7,303 BOOTS GROUP PLC (HEALTH SERVICES)+ 91,293
1,540 BOVIS HOMES GROUP PLC (BUILDING) 24,000
301,049 BP PLC (OIL & GAS EXTRACTION) 3,457,327
10,766 BRAMBLES INDUSTRIES PLC (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 80,572
3,278 BRITANNIC GROUP PLC (INSURANCE CARRIERS) 38,186
8,987 BRITISH AIRWAYS PLC (TRANSPORTATION BY AIR)+ 55,157
22,952 BRITISH AMERICAN TOBACCO PLC (TOBACCO PRODUCTS) 555,885
7,327 BRITISH LAND COMPANY PLC (REAL ESTATE) 157,979
17,688 BRITISH SKY BROADCASTING PLC (COMMUNICATIONS) 165,949
3,325 BRIXTON PLC (REAL ESTATE) 28,422
122,314 BT GROUP PLC (COMMUNICATIONS) 471,771
5,029 BUNZL PLC (MISCELLANEOUS MANUFACTURING INDUSTRIES) 59,675
4,732 BURBERRY GROUP PLC (APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS) 38,106
30,106 CADBURY SCHWEPPES PLC (FOOD & KINDRED PRODUCTS) 299,193
9,985 CAPITA GROUP PLC (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 79,714
2,472 CARNIVAL PLC (WATER TRANSPORTATION) 121,545
5,393 CATTLES PLC (NON-DEPOSITORY CREDIT INSTITUTIONS) 34,504
52,959 CENTRICA PLC (ELECTRIC, GAS & SANITARY SERVICES)+ 259,012
1,952 CLOSE BROTHERS GROUP PLC (HOLDING & OTHER INVESTMENT OFFICES) 36,169
18,480 COBHAM PLC (TRANSPORTATION BY AIR) 60,362
31,640 COMPASS GROUP PLC (FOOD & KINDRED PRODUCTS) 125,473
3,478 COOKSON GROUP PLC (MISCELLANEOUS MANUFACTURING INDUSTRIES)+ 31,242
68,222 CORUS GROUP PLC (FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT) 104,306
4,923 DAILY MAIL & GENERAL TRUST (COMMUNICATIONS) 59,360
3,096 DAVIS SERVICE GROUP PLC (MISCELLANEOUS MANUFACTURING INDUSTRIES) 26,801
3,029 DE LA RUE PLC (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 29,369
42,285 DIAGEO PLC (FOOD & KINDRED PRODUCTS) 665,974
25,726 DSG INTERNATIONAL PLC (GENERAL MERCHANDISE STORES) 82,465
7,143 ELECTROCOMPONENTS PLC (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 34,749
3,536 EMAP PLC (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 54,124
145
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
UNITED KINGDOM (CONTINUED)
11,014 EMI GROUP PLC (AMUSEMENT & RECREATION SERVICES) $ 48,414
5,396 ENTERPRISE INNS PLC (EATING & DRINKING PLACES) 89,251
5,841 FIRST CHOICE HOLIDAYS PLC (PERSONAL SERVICES) 21,844
6,649 FIRSTGROUP PLC (TRANSPORTATION SERVICES) 49,067
10,694 FKI PLC (MISCELLANEOUS MANUFACTURING INDUSTRIES) 23,411
27,162 FRIENDS PROVIDENT PLC (INSURANCE CARRIERS) 98,394
9,410 GALLAHER GROUP PLC (TOBACCO PRODUCTS) 137,332
6,512 GEORGE WIMPEY PLC (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 63,302
10,394 GKL PLC (TRANSPORTATION EQUIPMENT) 60,045
84,573 GLAXOSMITHKLINE PLC (CHEMICALS & ALLIED PRODUCTS) 2,211,414
2,241 GREAT PORTLAND ESTATES PLC (REAL ESTATE) 19,078
15,524 GROUP 4 SECURICOR PLC (SOCIAL SERVICES) 51,044
12,689 GUS PLC (GENERAL MERCHANDISE STORES) 232,585
3,446 HAMMERSON PLC (REAL ESTATE) 74,240
10,005 HANSON PLC (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 131,066
19,601 HAYS PLC (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 55,254
56,298 HBOS PLC (DEPOSITORY INSTITUTIONS) 939,979
22,427 HILTON GROUP PLC (AMUSEMENT & RECREATION SERVICES) 151,573
7,061 HMV GROUP PLC (APPAREL & ACCESSORY STORES) 20,947
164,126 HSBC HOLDINGS PLC (DEPOSITORY INSTITUTIONS) 2,751,734
6,985 ICAP PLC (HOLDING & OTHER INVESTMENT OFFICES) 54,308
4,612 IMI PLC (MISCELLANEOUS MANUFACTURING INDUSTRIES) 45,353
16,463 IMPERIAL CHEMICAL INDUSTRIES PLC (CHEMICALS & ALLIED PRODUCTS) 98,966
10,505 IMPERIAL TOBACCO GROUP PLC (TOBACCO PRODUCTS) 311,553
1,252 INCHCAPE PLC (WHOLESALE TRADE NON-DURABLE GOODS) 56,708
5,814 INTERCONTINENTAL HOTELS GROUP PLC (HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES) 95,098
22,997 INTERNATIONAL POWER PLC (ELECTRIC, GAS & SANITARY SERVICES) 113,073
2,518 INTERTEK GROUP PLC (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 35,983
90,714 INVENSYS PLC (MISCELLANEOUS MANUFACTURING INDUSTRIES)+ 36,250
2,823 ISOFT GROUP PLC (ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES) 7,185
58,214 ITV PLC (COMMUNICATIONS) 120,611
21,047 J SAINSBURY PLC (FOOD & KINDRED PRODUCTS) 121,586
2,738 JOHNSON MATTHEY PLC (CHEMICALS & ALLIED PRODUCTS) 66,408
5,567 KELDA GROUP PLC (ELECTRIC, GAS & SANITARY SERVICES) 76,265
8,813 KESA ELECTRICALS PLC (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 47,773
35,567 KINGFISHER PLC (BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS) 147,998
6,883 LAND SECURITIES GROUP PLC (REAL ESTATE) 230,561
92,461 LEGAL & GENERAL GROUP PLC (INSURANCE CARRIERS) 228,112
3,540 LIBERTY INTERNATIONAL PLC (REAL ESTATE) 72,391
82,310 LLOYDS TSB GROUP PLC (DEPOSITORY INSTITUTIONS) 787,248
18,457 LOGICACMG PLC (BUSINESS SERVICES) 62,772
4,232 LONDON STOCK EXCHANGE PLC (BUSINESS SERVICES) 77,645
4,094 MAN GROUP PLC (BUSINESS SERVICES) 175,334
23,994 MARKS & SPENCER GROUP PLC (GENERAL MERCHANDISE STORES) 231,990
6,080 MEGGITT PLC (TRANSPORTATION BY AIR) 36,761
11,410 MFI FURNITURE PLC (HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES) 21,261
8,634 MISYS PLC (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 33,677
146
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
UNITED KINGDOM (CONTINUED)
6,753 MITCHELLS & BUTLERS PLC (EATING & DRINKING PLACES) $ 56,141
1,852 NATIONAL EXPRESS GROUP PLC (TRANSPORTATION SERVICES) 30,407
39,353 NATIONAL GRID PLC (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 391,431
3,769 NEXT PLC (APPAREL & ACCESSORY STORES) 108,047
79,390 OLD MUTUAL PLC (INSURANCE CARRIERS) 277,590
12,146 PEARSON PLC (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 168,398
3,973 PERSIMMON PLC (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 91,668
17,390 PILKINGTON PLC (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 48,946
6,673 PREMIER FARNELL PLC (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 24,695
3,063 PROVIDENT FINANCIAL PLC (NON-DEPOSITORY CREDIT INSTITUTIONS) 37,598
35,214 PRUDENTIAL PLC (INSURANCE CARRIERS) 408,388
4,177 PUNCH TAVERNS PLC (EATING & DRINKING PLACES) 61,142
10,019 RANK GROUP PLC (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 39,253
8,931 RECKITT BENCKISER PLC (CHEMICALS & ALLIED PRODUCTS) 314,370
17,755 REED ELSEVIER PLC (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 170,279
26,899 RENTOKIL INITIAL PLC (COMMUNICATIONS) 72,906
19,144 REUTERS GROUP PLC (COMMUNICATIONS) 131,880
8,361 REXAM PLC (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 80,985
15,415 RIO TINTO PLC (METAL MINING) 782,574
22,467 ROLLS ROYCE GROUP PLC (AEROSPACE, DEFENSE) 178,777
1,208,725 ROLLS ROYCE GROUP PLC CLASS B (AEROSPACE, DEFENSE) 2,142
44,241 ROYAL & SUN ALLIANCE INSURANCE GROUP (INSURANCE CARRIERS) 105,881
46,516 ROYAL BANK OF SCOTLAND GROUP PLC (DEPOSITORY INSTITUTIONS) 1,513,707
40,360 ROYAL DUTCH SHELL PLC CLASS B (OIL & GAS EXTRACTION) 1,312,680
12,943 SABMILLER PLC (EATING & DRINKING PLACES) 255,455
19,901 SAGE GROUP PLC (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 95,171
1,965 SCHRODERS PLC (HOLDING & OTHER INVESTMENT OFFICES) 40,593
11,404 SCOTTISH & NEWCASTLE PLC (FOOD & KINDRED PRODUCTS) 103,030
12,458 SCOTTISH & SOUTHERN ENERGY PLC (ELECTRIC, GAS & SANITARY SERVICES) 245,017
27,240 SCOTTISH POWER PLC (ELECTRIC, GAS & SANITARY SERVICES) 275,443
8,023 SERCO GROUP PLC (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 43,909
5,212 SEVERN TRENT PLC (WATER TRANSPORTATION) 101,148
29,371 SIGNET GROUP PLC (APPAREL & ACCESSORY STORES) 55,877
6,195 SLOUGH ESTATES PLC (REAL ESTATE) 71,791
13,861 SMITH & NEPHEW PLC (CHEMICALS & ALLIED PRODUCTS) 123,060
8,192 SMITHS GROUP PLC (MISCELLANEOUS MANUFACTURING INDUSTRIES) 139,909
3,481 SSL INTERNATIONAL PLC (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL &
OPTICAL) 19,459
14,419 STAGECOACH GROUP PLC (TRANSPORTATION SERVICES) 28,809
6,928 TATE & LYLE PLC (FOOD & KINDRED PRODUCTS) 68,730
8,276 TAYLOR WOODROW PLC (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 58,094
3,677 TENLENT PLC (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT)+ 32,230
115,009 TESCO PLC (FOOD & KINDRED PRODUCTS) 659,398
9,500 TOMKINS PLC (BUSINESS SERVICES) 55,499
1,903 TRAVIS PERKINS PLC (BUSINESS SERVICES) 55,182
3,378 TRINITY MIRROR PLC (COMMUNICATIONS) 33,453
39,597 UNILEVER PLC (FOOD & KINDRED PRODUCTS) 405,209
4,637 UNITED BUSINESS MEDIA PLC (COMMUNICATIONS) 58,453
147
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
UNITED KINGDOM (CONTINUED)
12,226 UNITED UTILITIES PLC (ELECTRIC, GAS & SANITARY SERVICES) $ 146,460
898,130 VODAFONE GROUP PLC (COMMUNICATIONS) 1,880,304
3,154 WHITBREAD PLC (EATING & DRINKING PLACES) 64,999
5,893 WILLIAM HILL PLC (AMUSEMENT & RECREATION SERVICES) 61,380
8,396 WOLSELEY PLC (WHOLESALE TRADE NON-DURABLE GOODS) 206,264
17,277 WPP GROUP PLC (BUSINESS SERVICES)+ 207,269
10,531 YELL GROUP PLC (COMMUNICATIONS) 99,625
36,325,324
---------------
TOTAL COMMON STOCKS (COST $122,417,142) 162,923,780
---------------
RIGHTS - 0.01%
1,156 SONAE BONUS RIGHTS+ 10,787
TOTAL RIGHTS (COST $5,545) 10,787
---------------
PREFERRED STOCKS - 0.00%
1,644 SYNGENTA+ 2,068
2,412 VINCI+ 5,174
TOTAL PREFERRED STOCKS (COST $0) 7,242
---------------
COLLATERAL FOR SECURITIES LENDING - 5.65%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 5.65%
9,478,754 BANK OF NEW YORK INSTITUTIONAL CASH RESERVE 9,478,754
---------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $9,478,754) 9,478,754
---------------
SHORT-TERM INVESTMENTS - 1.78%
2,985,692 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~++ 2,985,692
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $2,985,692) 2,985,692
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $134,887,133)* 104.69% $ 175,505,568
OTHER ASSETS AND LIABILITIES, NET (4.69) (7,865,648)
------ ---------------
TOTAL NET ASSETS 100.00% $ 167,639,920
====== ===============
+ NON-INCOME EARNING SECURITIES.
(B) SECURITY WAS ACQUIRED THROUGH A PRIVATE PLACEMENT AND MAY NOT BE PUBLICLY
SOLD WITHOUT REGISTRATION UNDER THE SECURITIES ACT OF 1933 (EXCLUDING 144A
ISSUES).
(A) SECURITY FAIR VALUED IN ACCORDANCE WITH THE PROCEDURES APPROVED BY THE
BOARD OF TRUSTEES.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
++ SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $2,985,692.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
148
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INTERNATIONAL VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 96.82%
AUSTRALIA - 4.05%
213,500 BLUESCOPE STEEL LIMITED (MISCELLANEOUS MANUFACTURING INDUSTRIES) $ 1,097,426
193,800 BORAL LIMITED (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 1,237,575
228,400 CSR LIMITED (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 729,263
25,200 NATIONAL AUSTRALIA BANK LIMITED (DEPOSITORY INSTITUTIONS) 680,135
228,000 QANTAS AIRWAYS (TRANSPORTATION BY AIR) 577,818
127,900 SANTOS LIMITED (OIL & GAS EXTRACTION) 1,041,995
561,900 TELSTRA CORPORATION LIMITED (COMMUNICATIONS) 1,504,470
6,868,682
---------------
AUSTRIA - 0.60%
7,300 VOESTALPINE AG (FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT)+ 1,021,423
---------------
BELGIUM - 1.39%
7,700 DEXIA SA (DEPOSITORY INSTITUTIONS)+ 199,130
60,300 FORTIS (DEPOSITORY INSTITUTIONS) 2,154,250
2,353,380
---------------
DENMARK - 0.37%
16,800 DANSKE BANK A/S (DEPOSITORY INSTITUTIONS) 623,405
---------------
FINLAND - 1.60%
8,860 KEMIRA GROWHOW OYJ (CHEMICALS & ALLIED PRODUCTS) 63,349
41,700 KEMIRA OYJ (CHEMICALS & ALLIED PRODUCTS) 726,685
51,800 RAUTARUUKKI OYJ (PRIMARY METAL INDUSTRIES) 1,913,357
2,703,391
---------------
FRANCE - 9.82%
6,753 ASSURANCES GENERALES DE FRANCE (INSURANCE CARRIERS) 815,093
39,700 BNP PARIBAS SA (DEPOSITORY INSTITUTIONS) 3,687,686
7,600 CNP ASSURANCES (INSURANCE AGENTS, BROKERS & SERVICE) 766,281
35,700 COMPAGNIE DE SAINT-GOBAIN (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 2,494,129
10,500 RALLYE SA (GENERAL MERCHANDISE STORES) 448,157
21,400 RENAULT SA (TRANSPORTATION EQUIPMENT) 2,275,685
20,400 SOCIETE GENERALE (DEPOSITORY INSTITUTIONS) 3,067,985
7,800 TOTAL SA (PETROLEUM REFINING & RELATED INDUSTRIES) 2,057,806
24,544 VALEO SA (TRANSPORTATION EQUIPMENT) 1,026,459
16,639,281
---------------
GERMANY - 5.64%
26,500 BASF AG (CHEMICALS & ALLIED PRODUCTS) 2,077,789
38,900 IKB DEUTSCHE INDUSTRIEBANK AG (DEPOSITORY INSTITUTIONS) 1,431,208
32,800 MAN AG (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 2,276,420
94,700 THYSSENKRUPP AG (PRIMARY METAL INDUSTRIES) 2,734,798
53,300 TUI AG (TRANSPORTATION BY AIR) 1,046,390
9,566,605
---------------
149
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
GREECE - 0.33%
77,700 INTRACOM SA (COMMUNICATIONS) $ 559,318
---------------
HONG KONG - 1.22%
284,000 CITIC PACIFIC LIMITED (MISCELLANEOUS RETAIL) 852,826
147,000 ORIENT OVERSEAS INTERNATIONAL LIMITED (WATER TRANSPORTATION) 497,316
652,500 SMARTONE TELECOMMUNICATIONS HOLDING LIMITED (COMMUNICATIONS) 714,801
2,064,943
---------------
IRELAND - 1.09%
76,900 IRISH LIFE & PERMANENT PLC (NON-DEPOSITORY CREDIT INSTITUTIONS) 1,845,197
---------------
ITALY - 2.85%
85,500 BENETTON GROUP SPA (APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS)+ 1,276,521
78,600 ENI SPA (PETROLEUM REFINING & RELATED INDUSTRIES) 2,236,516
225,700 IFIL INVESTMENTS SPA (MISCELLANEOUS SERVICES) 1,319,031
4,832,068
---------------
JAPAN - 24.64%
8,600 ACOM COMPANY LIMITED (NON-DEPOSITORY CREDIT INSTITUTIONS) 504,894
116,500 ASAHI BREWERIES LIMITED (FOOD & KINDRED PRODUCTS) 1,652,974
2,500 COCA-COLA WEST JAPAN COMPANY LIMITED (FOOD & KINDRED PRODUCTS) 59,367
179,000 COSMO OIL COMPANY LIMITED (OIL & GAS EXTRACTION) 938,343
56,500 DAIICHI SANKYO COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 1,288,896
42,200 HITACHI CAPITAL CORPORATION (NON-DEPOSITORY CREDIT INSTITUTIONS) 844,359
31,600 HITACHI MAXELL LIMITED (MISCELLANEOUS MANUFACTURING INDUSTRIES) 522,729
70,100 HOKKAIDO ELECTRIC POWER COMPANY INCORPORATED (ELECTRONIC & OTHER ELECTRICAL
EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 1,503,844
24,600 HONDA MOTOR COMPANY LIMITED (TRANSPORTATION EQUIPMENT) 1,523,653
41,400 KANSAI ELECTRIC POWER COMPANY INCORPORATED (ELECTRIC, GAS & SANITARY SERVICES) 919,805
243,000 MARUBENI CORPORATION (BUSINESS SERVICES) 1,271,776
237,000 MITSUBISHI CHEMICAL HOLDINGS CORPORATION (CHEMICALS & ALLIED PRODUCTS)+ 1,461,869
58,600 NAMCO BANDAI HOLDINGS INCORPORATED (AMUSEMENT & RECREATION SERVICES) 802,576
33,000 NIKKO CORDIAL CORPORATION (FINANCIAL) 546,729
163,000 NIPPON OIL CORPORATION (OIL & GAS EXTRACTION) 1,278,241
540 NIPPON TELEGRAPH & TELEPHONE CORPORATION (COMMUNICATIONS) 2,316,907
117,400 NISSAN MOTOR COMPANY LIMITED (AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS) 1,394,437
152,000 NSK LIMITED (PRIMARY METAL INDUSTRIES) 1,319,830
1,200 NTT DOCOMO INCORPORATED (COMMUNICATIONS) 1,774,002
111,000 OJI PAPER COMPANY LIMITED (PAPER & ALLIED PRODUCTS) 682,787
14,100 PROMISE COMPANY LIMITED (NON-DEPOSITORY CREDIT INSTITUTIONS) 852,948
27,000 RICOH COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS,
EXCEPT COMPUTER EQUIPMENT) 527,613
44,500 RYOSAN COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS,
EXCEPT COMPUTER EQUIPMENT) 1,194,732
42,800 SANTEN PHARMACEUTICAL COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 1,029,091
42,800 SHOWA SHELL SEKIYU KK (OIL & GAS EXTRACTION) 485,818
118,000 SUMITOMO BAKELITE COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 1,068,717
101,000 SUMITOMO CORPORATION (SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES) 1,438,199
183,000 SUMITOMO TRUST & BANKING COMPANY LIMITED (DEPOSITORY INSTITUTIONS) 2,117,638
9,000 TAKEFUJI CORPORATION (HOLDING & OTHER INVESTMENT OFFICES) 566,610
150
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INTERNATIONAL VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
JAPAN (CONTINUED)
135,000 TANABE SEIYAKU COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) $ 1,496,814
265,000 TOHO GAS COMPANY LIMITED (PETROLEUM REFINING & RELATED INDUSTRIES) 1,069,456
32,900 TOKYO ELECTRIC POWER COMPANY INCORPORATED (ELECTRIC, GAS & SANITARY SERVICES) 820,404
220,000 TOSHIBA TEC CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS,
EXCEPT COMPUTER EQUIPMENT) 1,153,271
19,000 TOSTEM INAX HOLDING CORPORATION (MISCELLANEOUS MANUFACTURING INDUSTRIES) 408,411
90,100 TOYOTA MOTOR CORPORATION (TRANSPORTATION EQUIPMENT) 4,922,200
41,759,940
---------------
NETHERLANDS - 5.19%
29,600 ABN AMRO HOLDINGS NV (DEPOSITORY INSTITUTIONS) 887,447
171,156 AEGON NV (INSURANCE CARRIERS) 3,167,251
15,100 AKZO NOBEL NV (CHEMICALS & ALLIED PRODUCTS) 801,315
61,800 ING GROEP NV (FINANCIAL SERVICES) 2,441,504
47,800 ROYAL DUTCH SHELL PLC CLASS A (PETROLEUM REFINING & RELATED INDUSTRIES) 1,495,669
8,793,186
---------------
NORWAY - 1.17%
50,000 DEN NORSKE BANK ASA (DEPOSITORY INSTITUTIONS) 673,294
8,300 NORSK HYDRO ASA (OIL & GAS EXTRACTION) 1,149,963
10,420 YARA INTERNATIONAL ASA (AGRICULTURAL SERVICES) 165,754
1,989,011
---------------
PORTUGAL - 0.40%
211,400 BANCO COMERCIAL PORTUGUES SA (DEPOSITORY INSTITUTIONS) 673,771
---------------
SINGAPORE - 0.86%
673,878 MOBILONE LIMITED (COMMUNICATIONS) 980,050
358,000 NEPTUNE ORIENT LINES LIMITED (WATER TRANSPORTATION) 482,990
1,463,040
---------------
SPAIN - 3.91%
63,600 BANCO SANTANDER CENTRAL HISPANO SA (DEPOSITORY INSTITUTIONS) 928,743
106,300 ENDESA SA (ELECTRIC, GAS & SANITARY SERVICES) 3,431,775
79,800 REPSOL YPF SA (OIL & GAS EXTRACTION) 2,266,792
6,627,310
---------------
SWEDEN - 2.22%
22,200 FORENINGS SPARBANKEN AB (DEPOSITORY INSTITUTIONS) 625,653
254,200 NORDEA AB (DEPOSITORY INSTITUTIONS) 3,141,395
3,767,048
---------------
SWITZERLAND - 6.25%
10,800 CIBA SPECIALTY CHEMICALS AG (CHEMICALS & ALLIED PRODUCTS) 645,771
8,600 CONVERIUM HOLDING AG (INSURANCE CARRIERS) 107,199
51,000 CREDIT SUISSE GROUP (NON-DEPOSITORY CREDIT INSTITUTIONS) 2,861,696
2,500 GEORG FISCHER AG (TRANSPORTATION EQUIPMENT)+ 1,114,179
2,100 RIETER HOLDING AG (CHEMICALS & ALLIED PRODUCTS) 837,648
12,900 SAURER AG (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 1,029,111
3,000 SWISSCOM AG (COMMUNICATIONS) 972,270
151
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
SWITZERLAND (CONTINUED)
13,600 UBS AG (FINANCIAL SERVICES) $ 1,493,898
2,000 VALORA HOLDING AG (GENERAL MERCHANDISE STORES) 423,043
5,200 VERWALTUNGS-UND PRIVAT-BANK AG (DEPOSITORY INSTITUTIONS) 1,108,887
10,593,702
---------------
UNITED KINGDOM - 23.22%
106,800 ALFRED MCALPINE GROUP PLC (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 868,398
78,300 ALLIANCE & LEICESTER PLC (DEPOSITORY INSTITUTIONS) 1,681,443
35,100 ARRIVA PLC (TRANSPORTATION BY AIR) 375,351
18,700 ASTRAZENECA PLC (CHEMICALS & ALLIED PRODUCTS) 942,196
114,500 AVIVA PLC (INSURANCE CARRIERS) 1,590,471
323,400 BARCLAYS PLC (DEPOSITORY INSTITUTIONS) 3,784,247
48,300 BARRATT DEVELOPMENTS PLC (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 888,679
11,431 BOOTS GROUP PLC (HEALTH SERVICES)+ 142,895
164,400 BRADFORD & BINGLEY PLC (NON-DEPOSITORY CREDIT INSTITUTIONS) 1,426,007
334,200 BRIT INSURANCE HOLDINGS PLC (INSURANCE CARRIERS) 564,674
479,687 BT GROUP PLC (COMMUNICATIONS) 1,850,175
186,000 DS SMITH PLC (PAPER & ALLIED PRODUCTS) 583,300
529,200 DSG INTERNATIONAL PLC (GENERAL MERCHANDISE STORES) 1,696,360
78,400 FIRSTGROUP PLC (TRANSPORTATION SERVICES) 578,564
78,300 GEORGE WIMPEY PLC (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 761,138
220,900 GKL PLC (TRANSPORTATION EQUIPMENT) 1,276,113
31,300 GLAXOSMITHKLINE PLC (CHEMICALS & ALLIED PRODUCTS) 818,432
175,800 HANSON PLC (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 2,302,990
79,000 HBOS PLC (DEPOSITORY INSTITUTIONS) 1,319,023
172,200 JJB SPORTS PLC (APPAREL & ACCESSORY STORES) 551,242
341,500 LLOYDS TSB GROUP PLC (DEPOSITORY INSTITUTIONS) 3,266,253
237,100 NORTHERN FOODS PLC (FOOD & KINDRED PRODUCTS) 401,641
506,900 OLD MUTUAL PLC (INSURANCE CARRIERS) 1,772,393
577,400 PILKINGTON PLC (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 1,625,151
221,200 ROYAL & SUN ALLIANCE INSURANCE GROUP (INSURANCE CARRIERS) 529,393
109,400 ROYAL DUTCH SHELL PLC CLASS B (OIL & GAS EXTRACTION) 3,558,158
231,200 SCOTTISH POWER PLC (ELECTRIC, GAS & SANITARY SERVICES) 2,337,828
97,800 TATE & LYLE PLC (FOOD & KINDRED PRODUCTS) 970,235
127,300 TAYLOR WOODROW PLC (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 893,535
39,356,285
---------------
TOTAL COMMON STOCKS (COST $116,153,302) 164,100,986
---------------
152
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INTERNATIONAL VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COLLATERAL FOR SECURITIES LENDING - 9.90%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 9.90%
16,780,647 BANK OF NEW YORK INSTITUTIONAL CASH RESERVE $ 16,780,647
---------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $16,780,647) 16,780,647
---------------
SHORT-TERM INVESTMENTS - 2.62%
4,429,719 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~++ 4,429,719
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $4,429,719) 4,429,719
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $137,363,668)* 109.34% $ 185,311,352
OTHER ASSETS AND LIABILITIES, NET (9.34) (15,824,188)
------ ---------------
TOTAL NET ASSETS 100.00% $ 169,487,164
====== ===============
+ NON-INCOME EARNING SECURITIES.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
++ SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $4,429,719.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
153
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE CAP APPRECIATION PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 98.74%
AMUSEMENT & RECREATION SERVICES - 1.23%
49,420 INTERNATIONAL GAME TECHNOLOGY $ 1,740,572
---------------
APPAREL & ACCESSORY STORES - 2.33%
29,020 ABERCROMBIE & FITCH COMPANY CLASS A 1,691,866
41,270 NORDSTROM INCORPORATED 1,616,959
3,308,825
---------------
BUSINESS SERVICES - 5.99%
37,810 ADOBE SYSTEMS INCORPORATED 1,320,325
39,600 CITRIX SYSTEMS INCORPORATED+ 1,500,840
11,800 IRON MOUNTAIN INCORPORATED+ 480,732
50,490 MICROSOFT CORPORATION 1,373,833
40,470 MONSTER WORLDWIDE INCORPORATED+ 2,017,834
46,630 ROBERT HALF INTERNATIONAL INCORPORATED 1,800,385
8,493,949
---------------
CHEMICALS & ALLIED PRODUCTS - 9.70%
34,410 BIOGEN IDEC INCORPORATED+ 1,620,711
31,800 ELI LILLY & COMPANY<< 1,758,540
24,270 GENZYME CORPORATION+ 1,631,429
28,710 GILEAD SCIENCES INCORPORATED+ 1,786,336
47,950 MERCK & COMPANY INCORPORATED 1,689,279
20,820 MONSANTO COMPANY 1,764,495
30,960 PROCTER & GAMBLE COMPANY 1,783,915
35,370 ROHM & HAAS COMPANY 1,728,532
13,763,237
---------------
COAL MINING - 1.36%
38,200 PEABODY ENERGY CORPORATION 1,925,662
---------------
COMMUNICATIONS - 3.79%
60,390 AMERICAN TOWER CORPORATION CLASS A+<< 1,831,025
59,330 AT&T INCORPORATED<< 1,604,283
32,860 NII HOLDINGS INCORPORATED+<< 1,937,754
5,373,062
---------------
DEPOSITORY INSTITUTIONS - 1.31%
27,610 PNC FINANCIAL SERVICES GROUP 1,858,429
---------------
ELECTRIC, GAS & SANITARY SERVICES - 3.39%
53,850 DUKE ENERGY CORPORATION<< 1,569,727
33,460 TXU CORPORATION 1,497,670
49,380 WASTE MANAGEMENT INCORPORATED 1,743,114
4,810,511
---------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 12.56%
34,965 BROADCOM CORPORATION CLASS A+ 1,509,089
79,890 CISCO SYSTEMS INCORPORATED+ 1,731,216
154
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
LARGE CAP APPRECIATION PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT (CONTINUED)
21,280 COOPER INDUSTRIES LIMITED CLASS A $ 1,849,232
21,580 EMERSON ELECTRIC COMPANY 1,804,736
18,210 HARMAN INTERNATIONAL INDUSTRIES INCORPORATED 2,023,677
35,740 HARRIS CORPORATION 1,690,145
79,210 MOTOROLA INCORPORATED 1,814,701
60,580 NATIONAL SEMICONDUCTOR CORPORATION 1,686,547
39,180 QUALCOMM INCORPORATED 1,982,900
53,320 TEXAS INSTRUMENTS INCORPORATED 1,731,300
17,823,543
---------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES - 1.24%
20,270 JACOBS ENGINEERING GROUP INCORPORATED+ 1,758,220
---------------
FOOD & KINDRED PRODUCTS - 1.20%
29,480 PEPSICO INCORPORATED 1,703,649
---------------
FOOD STORES - 1.29%
48,770 STARBUCKS CORPORATION+ 1,835,703
---------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 2.45%
24,970 MARRIOTT INTERNATIONAL INCORPORATED CLASS A 1,712,942
26,080 STARWOOD HOTELS & RESORTS WORLDWIDE INCORPORATED 1,766,398
3,479,340
---------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 9.65%
25,890 APPLE COMPUTER INCORPORATED+ 1,623,821
95,730 APPLIED MATERIALS INCORPORATED<< 1,676,233
25,650 BAKER HUGHES INCORPORATED 1,754,460
29,110 CATERPILLAR INCORPORATED 2,090,389
54,390 HEWLETT-PACKARD COMPANY 1,789,431
19,690 INTERNATIONAL BUSINESS MACHINES CORPORATION 1,623,834
30,060 JOY GLOBAL INCORPORATED 1,796,686
30,950 LAM RESEARCH CORPORATION+ 1,330,850
13,685,704
---------------
INSURANCE AGENTS, BROKERS & SERVICE - 1.21%
41,290 AON CORPORATION<< 1,713,948
---------------
INSURANCE CARRIERS - 1.33%
3,100 METLIFE INCORPORATED 149,947
22,360 WELLPOINT INCORPORATED+ 1,731,335
1,881,282
---------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 5.13%
18,030 ALLERGAN INCORPORATED 1,956,255
43,810 BAXTER INTERNATIONAL INCORPORATED 1,700,266
26,490 BECTON DICKINSON & COMPANY 1,631,254
27,640 ROCKWELL AUTOMATION INCORPORATED 1,987,593
7,275,368
---------------
155
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE CAP APPRECIATION PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
METAL MINING - 2.58%
31,330 FREEPORT-MCMORAN COPPER & GOLD INCORPORATED CLASS B<< $ 1,872,594
22,150 PHELPS DODGE CORPORATION 1,783,740
3,656,334
---------------
MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS - 1.40%
22,940 VULCAN MATERIALS COMPANY 1,987,751
---------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 1.23%
96,430 MATTEL INCORPORATED 1,748,276
---------------
MISCELLANEOUS RETAIL - 1.11%
17,980 EXPRESS SCRIPTS INCORPORATED+<< 1,580,442
---------------
NON-DEPOSITORY CREDIT INSTITUTIONS - 1.21%
32,190 CIT GROUP INCORPORATED 1,722,809
---------------
OIL & GAS EXTRACTION - 5.16%
26,440 APACHE CORPORATION 1,732,084
24,070 HALLIBURTON COMPANY 1,757,591
20,360 NOBLE CORPORATION<< 1,651,196
17,210 SCHLUMBERGER LIMITED 2,178,270
7,319,141
---------------
PETROLEUM REFINING & RELATED INDUSTRIES - 2.37%
20,530 MARATHON OIL CORPORATION 1,563,770
30,170 VALERO ENERGY CORPORATION 1,803,563
3,367,333
---------------
RAILROAD TRANSPORTATION - 2.69%
24,000 BURLINGTON NORTHERN SANTA FE CORPORATION 1,999,920
19,470 UNION PACIFIC CORPORATION 1,817,525
3,817,445
---------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 6.53%
38,880 AMERIPRISE FINANCIAL INCORPORATED 1,751,933
16,630 FRANKLIN RESOURCES INCORPORATED 1,567,211
13,160 GOLDMAN SACHS GROUP INCORPORATED 2,065,593
12,790 LEHMAN BROTHERS HOLDINGS INCORPORATED 1,848,539
25,850 MERRILL LYNCH & COMPANY INCORPORATED 2,035,946
9,269,222
---------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 1.31%
69,310 CORNING INCORPORATED+ 1,865,132
---------------
TRANSPORTATION BY AIR - 1.22%
96,130 SOUTHWEST AIRLINES COMPANY 1,729,379
---------------
156
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
LARGE CAP APPRECIATION PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
TRANSPORTATION EQUIPMENT - 4.27%
29,540 BOEING COMPANY $ 2,302,052
24,270 LOCKHEED MARTIN CORPORATION 1,823,405
20,620 TEXTRON INCORPORATED 1,925,702
6,051,159
---------------
WHOLESALE TRADE NON-DURABLE GOODS - 2.50%
39,120 AMERISOURCEBERGEN CORPORATION 1,888,322
19,490 NIKE INCORPORATED CLASS B 1,658,599
3,546,921
---------------
TOTAL COMMON STOCKS (COST $120,261,997) 140,092,348
---------------
COLLATERAL FOR SECURITIES LENDING - 9.05%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.01%
4,435 SCUDDER DAILY ASSETS MONEY MARKET FUND 4,435
3,361 SHORT TERM INVESTMENT COMPANY MONEY MARKET FUND 3,361
7,796
---------------
PRINCIPAL INTEREST RATE MATURITY DATE
COLLATERAL INVESTED IN OTHER ASSETS - 9.04%
$ 46,490 AMERICAN GENERAL FINANCE CORPORATION+/- 4.78% 04/13/2007 46,509
19,355 APRECO LLC 4.62 05/15/2006 19,247
42,363 APRECO LLC 4.94 06/15/2006 41,945
25,828 ASPEN FUNDING CORPORATION 4.92 04/03/2006 25,828
258,276 ATLAS CAPITAL FUNDING CORPORATION SERIES MTN+/- 4.62 11/03/2006 258,276
29,077 ATLAS CAPITAL FUNDING LIMITED 4.80 04/17/2006 29,023
61,986 ATLAS CAPITAL FUNDING LIMITED 4.62 05/15/2006 61,640
129,138 ATLAS CAPITAL FUNDING LIMITED+/- 4.80 10/20/2006 129,138
129,138 ATLAS CAPITAL FUNDING LIMITED+/- 4.80 12/22/2006 129,138
20,662 ATOMIUM FUNDING CORPORATION 4.53 04/12/2006 20,638
17,919 BETA FINANCE INCORPORATED SERIES MTN+/- 4.88 06/02/2006 17,922
2,572,434 BNP PARIBAS REPURCHASE AGREEMENT
(MATURITY VALUE $2,573,491) 4.93 04/03/2006 2,572,434
76,677 BUCKINGHAM CDO LLC++ 4.60 04/06/2006 76,646
251,386 BUCKINGHAM CDO LLC 4.82 04/21/2006 250,787
129,138 BUCKINGHAM CDO LLC 4.82 04/25/2006 128,762
134,304 BUCKINGHAM II CDO LLC++ 4.83 04/25/2006 133,913
516,553 BUCKINGHAM II CDO LLC 4.83 04/26/2006 514,983
154,966 CAIRN HIGH GRADE FUNDING I 4.59 04/06/2006 154,904
12,397 CAIRN HIGH GRADE FUNDING I 4.71 04/26/2006 12,360
216,952 CAIRN HIGH GRADE FUNDING I 4.83 04/27/2006 216,265
129,138 CAIRN HIGH GRADE FUNDING I++ 4.83 05/02/2006 128,644
67,152 CAIRN HIGH GRADE FUNDING I 4.77 05/10/2006 66,822
259,749 CEDAR SPRINGS CAPITAL COMPANY LLC 4.78 04/05/2006 259,681
71,284 CEDAR SPRINGS CAPITAL COMPANY LLC 4.69 05/08/2006 70,952
22,971 CEDAR SPRINGS CAPITAL COMPANY LLC 4.70 05/10/2006 22,858
103,311 CEDAR SPRINGS CAPITAL COMPANY LLC 4.72 05/12/2006 102,774
157
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE CAP APPRECIATION PORTFOLIO
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 51,655 CEDAR SPRINGS CAPITAL COMPANY LLC 4.90% 06/07/2006 $ 51,202
137,481 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.92 06/12/2006 136,181
284,104 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.72 04/12/2006 284,104
51,655 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.75 04/18/2007 51,655
181,827 CONSOLIDATED EDISON INCORPORATED 4.90 04/03/2006 181,827
12,914 CORPORATE ASSET SECURITIZATION AUSTRALIA LIMITED 4.81 04/13/2006 12,897
160,131 CREDIT SUISSE FIRST BOSTON NEW YORK SERIES YCD1+/- 4.92 05/04/2006 160,051
129,138 CULLINAN FINANCE CORPORATION+/- 4.71 11/15/2006 129,133
103,311 DEER VALLEY FUNDING LLC++ 4.51 04/10/2006 103,215
132,005 DEER VALLEY FUNDING LLC 4.81 04/17/2006 131,761
314,720 DEER VALLEY FUNDING LLC 4.83 04/19/2006 314,053
67,152 DEER VALLEY FUNDING LLC 4.80 05/03/2006 66,885
258,276 DEUTSCHE BANK REPURCHASE AGREEMENT
(MATURITY VALUE $258,380) 4.84 04/03/2006 258,276
247,372 EIFFEL FUNDING LLC 4.91 04/03/2006 247,372
15,497 EIFFEL FUNDING LLC 4.78 04/17/2006 15,468
186,068 EUREKA SECURITIZATION INCORPORATED 4.88 05/16/2006 185,003
4,256 GALLEON CAPITAL LLC 4.65 04/03/2006 4,256
7,748 GEMINI SECURITIZATION INCORPORATED 4.90 05/24/2006 7,696
123,973 GOLDMAN SACHS GROUP INCORPORATED+/- 4.97 06/30/2006 123,973
370,110 HARRIER FINANCE FUNDING LLC 4.62 04/03/2006 370,110
82,648 ING USA ANNUITY & LIFE INSURANCE+/- 5.03 06/06/2006 82,648
1,037,289 JP MORGAN CHASE SECURITIES CORPORATION REPURCHASE AGREEMENT
(MATURITY VALUE $1,037,715) 4.93 04/03/2006 1,037,289
6,715 K2 (USA) LLC 4.63 05/02/2006 6,689
23,891 K2 (USA) LLC SERIES MTN+/- 4.87 07/24/2006 23,897
77,483 KAUPTHING BANK HF SERIES MTN+/-++ 4.84 03/20/2007 77,467
10,331 KLIO II FUNDING CORPORATION 4.58 04/05/2006 10,328
12,449 KLIO III FUNDING CORPORATION 4.69 04/19/2006 12,423
5,166 LEXINGTON PARKER CAPITAL CORPORATION 4.62 05/02/2006 5,146
19,608 LEXINGTON PARKER CAPITAL CORPORATION 4.69 05/10/2006 19,512
129,138 LIBERTY LIGHT US CAPITAL SERIES MTN+/- 4.81 05/26/2006 129,146
10,331 LINKS FINANCE LLC SERIES MTN1+/- 4.68 09/12/2006 10,331
30,993 LIQUID FUNDING LIMITED+/- 4.94 04/24/2006 30,994
118,807 LIQUID FUNDING LIMITED+/- 4.71 08/14/2006 118,807
77,483 LIQUID FUNDING LIMITED+/- 4.61 12/01/2006 77,483
30,993 LIQUID FUNDING LIMITED SERIES MTN+/- 4.83 02/20/2007 30,992
51,655 MBIA GLOBAL FUNDING LLC+/- 4.78 02/20/2007 51,652
259,568 MERRILL LYNCH & COMPANY SERIES MTN+/- 4.80 10/27/2006 259,763
154,966 MORGAN STANLEY+/- 4.94 10/10/2006 154,966
23,891 MORGAN STANLEY SERIES EXL+/- 4.78 08/13/2010 23,897
88,945 MORTGAGE INTEREST NET TRUST 4.68 04/03/2006 88,945
116,741 MORTGAGE INTEREST NET TRUST 4.78 05/03/2006 116,278
5,166 NATIONWIDE BUILDING SOC+/- 4.74 07/21/2006 5,168
113,915 NEWPORT FUNDING CORPORATION 4.92 04/03/2006 113,915
156,407 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 4.78 04/03/2006 156,407
180,794 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.68 04/04/2006 180,770
158
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
LARGE CAP APPRECIATION PORTFOLIO
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 23,028 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.93% 06/26/2006 $ 22,767
9,815 NORDEA NORTH AMERICA INCORPORATED 4.89 05/15/2006 9,760
272,482 NORTHERN ROCK PLC+/- 4.63 04/21/2006 272,444
20,419 NORTHERN ROCK PLC 4.69 04/24/2006 20,363
258,276 NORTHERN ROCK PLC+/- 4.66 02/05/2007 258,279
20,895 RACERS TRUST 2004-6-MM+/- 4.79 05/22/2006 20,897
5,166 SCALDIS CAPITAL LIMITED 4.93 06/15/2006 5,115
20,662 TANGO FINANCE CORPORATION 4.95 06/21/2006 20,442
59,729 TANGO FINANCE CORPORATION SERIES MTN+/- 4.87 10/25/2006 59,749
29,862 TRAVELERS INSURANCE COMPANY+/- 4.77 02/09/2007 29,861
129,138 UNICREDITO ITALIANO SERIES LIB+/- 4.70 03/09/2007 129,131
129,138 UNICREDITO ITALIANO SERIES YCD+/- 4.47 04/03/2006 129,138
196,290 US BANK NA SERIES BKNT+/- 4.66 07/28/2006 196,296
51,655 WHISTLEJACKET CAPITAL LIMITED+/- 4.65 06/09/2006 51,655
5,166 WHITE PINE FINANCE LLC 4.64 04/18/2006 5,155
25,828 WHITE PINE FINANCE LLC 4.82 05/05/2006 25,718
21,086 WHITE PINE FINANCE LLC 4.84 05/25/2006 20,939
15,869 WHITE PINE FINANCE LLC 4.93 06/20/2006 15,701
136,313 WHITE PINE FINANCE LLC 4.93 06/22/2006 134,841
129,138 WHITE PINE FINANCE LLC+/- 4.70 07/17/2006 129,138
123,973 WHITE PINE FINANCE LLC SERIES MTN1+/- 4.81 06/12/2006 123,984
12,833,493
---------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $12,841,289) 12,841,289
---------------
SHARES
SHORT-TERM INVESTMENTS - 3.86%
5,474,393 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~@ 5,474,393
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $5,474,393) 5,474,393
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $138,577,679)* 111.65% $ 158,408,030
OTHER ASSETS AND LIABILITIES, NET (11.65) (16,529,190)
------ ---------------
TOTAL NET ASSETS 100.00% $ 141,878,840
====== ===============
+ NON-INCOME EARNING SECURITIES.
<< ALL OR A PORTION OF THIS SECURITY IS ON LOAN. (SEE NOTE 2)
+/- VARIABLE RATE INVESTMENTS.
++ SECURITIES THAT MAY BE RESOLD TO "QUALIFIED INSTITUTIONAL BUYERS" UNDER
RULE 144A OR SECURITIES OFFERED PURSUANT TO SECTION 4 (2) OF THE
SECURITIES ACT OF 1933, AS AMENDED.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
@ SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $5,474,393.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
159
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE COMPANY GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 98.65%
APPAREL & ACCESSORY STORES - 1.79%
1,155,000 KOHL'S CORPORATION+<< $ 61,226,550
---------------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS - 7.95%
2,037,300 FASTENAL COMPANY 96,445,782
1,859,917 HOME DEPOT INCORPORATED 78,674,489
1,506,300 LOWE'S COMPANIES INCORPORATED 97,065,972
272,186,243
---------------
BUSINESS SERVICES - 21.78%
1,014,400 AUTOMATIC DATA PROCESSING INCORPORATED 46,337,792
6,378,270 EBAY INCORPORATED+ 249,135,226
2,167,900 FIRST DATA CORPORATION 101,501,078
222,500 GOOGLE INCORPORATED CLASS A+<< 86,775,000
7,904,898 MICROSOFT CORPORATION 215,092,275
1,451,490 YAHOO! INCORPORATED+<< 46,825,067
745,666,438
---------------
CHEMICALS & ALLIED PRODUCTS - 7.62%
1,316,200 AMGEN INCORPORATED+<< 95,753,550
1,538,000 GENENTECH INCORPORATED+<< 129,976,380
522,840 GENZYME CORPORATION+ 35,145,305
260,875,235
---------------
EDUCATIONAL SERVICES - 1.05%
687,075 APOLLO GROUP INCORPORATED CLASS A+<< 36,078,308
---------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 13.40%
6,390,843 CISCO SYSTEMS INCORPORATED+ 138,489,568
4,552,670 INTEL CORPORATION 88,094,164
1,599,900 LINEAR TECHNOLOGY CORPORATION 56,124,492
5,682,500 NOKIA OYJ ADR<< 117,741,400
1,794,100 TEXAS INSTRUMENTS INCORPORATED 58,254,427
458,704,051
---------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES - 3.83%
3,143,700 PAYCHEX INCORPORATED<< 130,966,542
---------------
GENERAL MERCHANDISE STORES - 4.26%
1,738,560 TARGET CORPORATION 90,422,506
1,172,800 WAL-MART STORES INCORPORATED<< 55,403,072
145,825,578
---------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 3.88%
2,603,100 DELL INCORPORATED+<< 77,468,256
4,048,500 EMC CORPORATION+ 55,181,055
132,649,311
---------------
160
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
LARGE COMPANY GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
INSURANCE CARRIERS - 3.85%
1,995,066 AMERICAN INTERNATIONAL GROUP INCORPORATED $ 131,853,912
---------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 6.29%
4,240,310 MEDTRONIC INCORPORATED 215,195,733
---------------
PERSONAL SERVICES - 2.34%
1,876,550 CINTAS CORPORATION 79,978,561
---------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 20.61%
8,818,337 CHARLES SCHWAB CORPORATION 151,763,580
1,337,000 FRANKLIN RESOURCES INCORPORATED 125,998,880
1,924,340 GOLDMAN SACHS GROUP INCORPORATED 302,044,406
1,002,600 LEGG MASON INCORPORATED<< 125,655,858
705,462,724
---------------
TOTAL COMMON STOCKS (COST $2,631,538,868) 3,376,669,186
---------------
COLLATERAL FOR SECURITIES LENDING - 8.19%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.00%
96,834 SCUDDER DAILY ASSETS MONEY MARKET FUND 96,834
73,374 SHORT TERM INVESTMENT COMPANY MONEY MARKET FUND 73,374
170,208
---------------
PRINCIPAL INTEREST RATE MATURITY DATE
COLLATERAL INVESTED IN OTHER ASSETS - 8.19%
$ 1,014,967 AMERICAN GENERAL FINANCE CORPORATION+/- 4.78% 04/13/2007 1,015,383
422,564 APRECO LLC 4.62 05/15/2006 420,202
924,860 APRECO LLC 4.94 06/15/2006 915,750
563,870 ASPEN FUNDING CORPORATION 4.92 04/03/2006 563,870
5,638,703 ATLAS CAPITAL FUNDING CORPORATION SERIES MTN+/- 4.62 11/03/2006 5,638,703
634,805 ATLAS CAPITAL FUNDING LIMITED 4.80 04/17/2006 633,631
1,353,289 ATLAS CAPITAL FUNDING LIMITED+/- 4.62 05/15/2006 1,345,724
2,819,352 ATLAS CAPITAL FUNDING LIMITED 4.80 10/20/2006 2,819,352
2,819,352 ATLAS CAPITAL FUNDING LIMITED+/- 4.80 12/22/2006 2,819,352
451,096 ATOMIUM FUNDING CORPORATION 4.53 04/12/2006 450,559
391,213 BETA FINANCE INCORPORATED SERIES MTN+/- 4.88 06/02/2006 391,264
56,161,483 BNP PARIBAS REPURCHASE AGREEMENT
(MATURITY VALUE $56,184,556) 4.93 04/03/2006 56,161,483
1,674,018 BUCKINGHAM CDO LLC++ 4.60 04/06/2006 1,673,349
5,488,263 BUCKINGHAM CDO LLC 4.82 04/21/2006 5,475,200
2,819,352 BUCKINGHAM CDO LLC 4.82 04/25/2006 2,811,147
2,932,126 BUCKINGHAM II CDO LLC++ 4.83 04/25/2006 2,923,593
11,277,406 BUCKINGHAM II CDO LLC 4.83 04/26/2006 11,243,123
3,383,222 CAIRN HIGH GRADE FUNDING I 4.59 04/06/2006 3,381,869
270,658 CAIRN HIGH GRADE FUNDING I 4.71 04/26/2006 269,835
4,736,511 CAIRN HIGH GRADE FUNDING I 4.83 04/27/2006 4,721,496
2,819,352 CAIRN HIGH GRADE FUNDING I++ 4.83 05/02/2006 2,808,553
1,466,063 CAIRN HIGH GRADE FUNDING I 4.77 05/10/2006 1,458,850
5,670,844 CEDAR SPRINGS CAPITAL COMPANY LLC 4.78 04/05/2006 5,669,369
161
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE COMPANY GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 1,556,282 CEDAR SPRINGS CAPITAL COMPANY LLC 4.69% 05/08/2006 $ 1,549,030
501,506 CEDAR SPRINGS CAPITAL COMPANY LLC 4.70 05/10/2006 499,039
2,255,481 CEDAR SPRINGS CAPITAL COMPANY LLC 4.72 05/12/2006 2,243,775
1,127,741 CEDAR SPRINGS CAPITAL COMPANY LLC 4.90 06/07/2006 1,117,850
3,001,482 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.92 06/12/2006 2,973,118
6,202,573 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.72 04/12/2006 6,202,573
1,127,741 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.75 04/18/2007 1,127,741
3,969,647 CONSOLIDATED EDISON INCORPORATED 4.90 04/03/2006 3,969,647
281,935 CORPORATE ASSET SECURITIZATION AUSTRALIA LIMITED 4.81 04/13/2006 281,563
3,495,996 CREDIT SUISSE FIRST BOSTON NEW YORK SERIES YCD1+/- 4.92 05/04/2006 3,494,248
2,819,352 CULLINAN FINANCE CORPORATION+/- 4.71 11/15/2006 2,819,239
2,255,481 DEER VALLEY FUNDING LLC++ 4.51 04/10/2006 2,253,384
2,881,941 DEER VALLEY FUNDING LLC 4.81 04/17/2006 2,876,610
6,870,985 DEER VALLEY FUNDING LLC 4.83 04/19/2006 6,856,419
1,466,063 DEER VALLEY FUNDING LLC 4.80 05/03/2006 1,460,242
5,638,703 DEUTSCHE BANK REPURCHASE AGREEMENT
(MATURITY VALUE $5,640,977) 4.84 04/03/2006 5,638,703
5,400,637 EIFFEL FUNDING LLC 4.91 04/03/2006 5,400,637
338,322 EIFFEL FUNDING LLC 4.78 04/17/2006 337,696
4,062,234 EUREKA SECURITIZATION INCORPORATED 4.88 05/16/2006 4,038,998
92,926 GALLEON CAPITAL LLC 4.65 04/03/2006 92,926
169,161 GEMINI SECURITIZATION INCORPORATED 4.90 05/24/2006 168,009
2,706,577 GOLDMAN SACHS GROUP INCORPORATED+/- 4.97 06/30/2006 2,706,577
8,080,262 HARRIER FINANCE FUNDING LLC 4.62 04/03/2006 8,080,261
1,804,385 ING USA ANNUITY & LIFE INSURANCE+/- 5.03 06/06/2006 1,804,385
22,646,132 JP MORGAN CHASE SECURITIES CORPORATION REPURCHASE AGREEMENT
(MATURITY VALUE $22,655,436) 4.93 04/03/2006 22,646,132
146,606 K2 (USA) LLC 4.63 05/02/2006 146,045
521,580 K2 (USA) LLC SERIES MTN+/- 4.87 07/24/2006 521,710
1,691,611 KAUPTHING BANK HF SERIES MTN+/-++ 4.84 03/20/2007 1,691,273
225,548 KLIO II FUNDING CORPORATION 4.58 04/05/2006 225,489
271,785 KLIO III FUNDING CORPORATION 4.69 04/19/2006 271,209
112,774 LEXINGTON PARKER CAPITAL CORPORATION 4.62 05/02/2006 112,342
428,090 LEXINGTON PARKER CAPITAL CORPORATION 4.69 05/10/2006 425,984
2,819,352 LIBERTY LIGHT US CAPITAL SERIES MTN+/- 4.81 05/26/2006 2,819,521
225,548 LINKS FINANCE LLC SERIES MTN1+/- 4.68 09/12/2006 225,550
676,644 LIQUID FUNDING LIMITED+/- 4.94 04/24/2006 676,671
2,593,803 LIQUID FUNDING LIMITED+/- 4.71 08/14/2006 2,593,803
1,691,611 LIQUID FUNDING LIMITED+/- 4.61 12/01/2006 1,691,611
676,644 LIQUID FUNDING LIMITED SERIES MTN+/- 4.83 02/20/2007 676,611
1,127,741 MBIA GLOBAL FUNDING LLC+/- 4.78 02/20/2007 1,127,673
5,666,897 MERRILL LYNCH & COMPANY SERIES MTN+/- 4.80 10/27/2006 5,671,147
3,383,222 MORGAN STANLEY+/- 4.94 10/10/2006 3,383,222
521,580 MORGAN STANLEY SERIES EXL+/- 4.78 08/13/2010 521,721
1,941,857 MORTGAGE INTEREST NET TRUST 4.68 04/03/2006 1,941,857
2,548,694 MORTGAGE INTEREST NET TRUST 4.78 05/03/2006 2,538,575
112,774 NATIONWIDE BUILDING SOC+/- 4.74 07/21/2006 112,828
162
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
LARGE COMPANY GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 2,487,006 NEWPORT FUNDING CORPORATION 4.92% 04/03/2006 $ 2,487,006
3,414,686 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 4.78 04/03/2006 3,414,686
3,947,092 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.68 04/04/2006 3,946,579
502,747 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.93 06/26/2006 497,046
214,271 NORDEA NORTH AMERICA INCORPORATED 4.89 05/15/2006 213,073
5,948,832 NORTHERN ROCK PLC+/- 4.63 04/21/2006 5,947,999
445,796 NORTHERN ROCK PLC 4.69 04/24/2006 444,557
5,638,703 NORTHERN ROCK PLC+/- 4.66 02/05/2007 5,638,759
456,171 RACERS TRUST 2004-6-MM+/- 4.79 05/22/2006 456,235
112,774 SCALDIS CAPITAL LIMITED 4.93 06/15/2006 111,663
451,096 TANGO FINANCE CORPORATION 4.95 06/21/2006 446,288
1,304,006 TANGO FINANCE CORPORATION SERIES MTN+/- 4.87 10/25/2006 1,304,437
651,947 TRAVELERS INSURANCE COMPANY+/- 4.77 02/09/2007 651,934
2,819,352 UNICREDITO ITALIANO SERIES LIB+/- 4.70 03/09/2007 2,819,182
2,819,352 UNICREDITO ITALIANO SERIES YCD+/- 4.47 04/03/2006 2,819,352
4,285,414 US BANK NA SERIES BKNT+/- 4.66 07/28/2006 4,285,543
1,127,741 WHISTLEJACKET CAPITAL LIMITED+/- 4.65 06/09/2006 1,127,741
112,774 WHITE PINE FINANCE LLC 4.64 04/18/2006 112,551
563,870 WHITE PINE FINANCE LLC 4.82 05/05/2006 561,468
460,344 WHITE PINE FINANCE LLC 4.84 05/25/2006 457,144
346,442 WHITE PINE FINANCE LLC 4.93 06/20/2006 342,794
2,975,995 WHITE PINE FINANCE LLC 4.93 06/22/2006 2,943,854
2,819,352 WHITE PINE FINANCE LLC+/- 4.70 07/17/2006 2,819,352
2,706,577 WHITE PINE FINANCE LLC SERIES MTN1+/- 4.81 06/12/2006 2,706,821
280,181,365
---------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $280,351,573) 280,351,573
---------------
SHARES
SHORT-TERM INVESTMENTS - 1.32%
45,157,545 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~@ 45,157,545
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $45,157,545) 45,157,545
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $2,957,047,986)* 108.16% $ 3,702,178,304
OTHER ASSETS AND LIABILITIES, NET (8.16) (279,224,051)
------ ---------------
TOTAL NET ASSETS 100.00% $ 3,422,954,253
====== ===============
+ NON-INCOME EARNING SECURITIES.
<< ALL OR A PORTION OF THIS SECURITY IS ON LOAN. (SEE NOTE 2)
+/- VARIABLE RATE INVESTMENTS.
++ SECURITIES THAT MAY BE RESOLD TO "QUALIFIED INSTITUTIONAL BUYERS" UNDER
RULE 144A OR SECURITIES OFFERED PURSUANT TO SECTION 4 (2) OF THE
SECURITIES ACT OF 1933, AS AMENDED.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
@ SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $45,157,545.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
163
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 97.88%
AGRICULTURAL PRODUCTION CROPS - 0.18%
24,252 DELTA & PINE LAND COMPANY $ 731,440
---------------
AMUSEMENT & RECREATION SERVICES - 0.46%
23,084 BALLY TOTAL FITNESS HOLDING CORPORATION+<< 216,297
18,277 MULTIMEDIA GAMES INCORPORATED+<< 271,962
31,827 PINNACLE ENTERTAINMENT+ 896,566
15,398 WMS INDUSTRIES INCORPORATED+<< 463,480
1,848,305
---------------
APPAREL & ACCESSORY STORES - 1.48%
9,737 ASHWORTH INCORPORATED+ 96,688
11,222 BURLINGTON COAT FACTORY WAREHOUSE CORPORATION 510,040
14,506 CHILDREN'S PLACE RETAIL STORES INCORPORATED+<< 839,897
24,492 CHRISTOPHER & BANKS CORPORATION 568,459
15,435 DRESS BARN INCORPORATED+<< 740,108
29,181 FINISH LINE INCORPORATED CLASS A 480,027
30,405 HOT TOPIC INCORPORATED+ 440,873
10,106 JOS. A. BANK CLOTHIERS INCORPORATED+<< 484,583
17,929 STAGE STORES INCORPORATED 533,388
21,117 THE CATO CORPORATION CLASS A 503,852
22,567 TOO INCORPORATED+ 775,177
5,973,092
---------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS - 0.86%
21,454 GYMBOREE CORPORATION+ 558,662
17,376 KELLWOOD COMPANY 545,433
24,953 PHILLIPS-VAN HEUSEN CORPORATION 953,454
80,108 QUIKSILVER INCORPORATED+<< 1,110,297
22,414 RUSSELL CORPORATION 309,313
3,477,159
---------------
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS - 0.23%
10,829 MARINEMAX INCORPORATED+ 362,988
20,161 SONIC AUTOMOTIVE INCORPORATED<< 559,669
922,657
---------------
AUTOMOTIVE REPAIR, SERVICES & PARKING - 0.09%
12,120 CENTRAL PARKING CORPORATION 193,920
8,508 MIDAS INCORPORATED+ 186,070
379,990
---------------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS - 1.09%
8,327 M I HOMES INCORPORATED 391,369
3,273 NVR INCORPORATED+<< 2,418,583
46,493 STANDARD-PACIFIC CORPORATION<< 1,563,095
4,373,047
---------------
164
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
BUSINESS SERVICES - 9.33%
30,447 AARON RENTS INCORPORATED $ 827,245
26,102 ABM INDUSTRIES INCORPORATED 500,375
15,554 ADMINISTAFF INCORPORATED 845,515
21,345 ADVO INCORPORATED 683,040
15,710 ALTIRIS INCORPORATED+ 345,777
21,790 ANSYS INCORPORATED+ 1,179,929
21,055 ARBITRON INCORPORATED 712,080
9,801 BLUE COAT SYSTEMS INCORPORATED+ 213,074
33,199 BRADY CORPORATION CLASS A 1,243,635
20,453 CACI INTERNATIONAL INCORPORATED CLASS A+ 1,344,785
19,259 CAPTARIS INCORPORATED+ 89,169
14,558 CARREKER CORPORATION+ 93,608
41,954 CERNER CORPORATION+<< 1,990,717
37,019 CIBER INCORPORATED+ 236,181
31,712 COGNEX CORPORATION 939,944
29,416 DENDRITE INTERNATIONAL INCORPORATED+ 401,528
23,338 DIGITAL INSIGHT CORPORATION+ 849,503
31,240 EFUNDS CORPORATION+ 807,242
37,063 EPICOR SOFTWARE CORPORATION+ 497,756
22,955 FACTSET RESEARCH SYSTEMS INCORPORATED 1,018,054
28,419 FILENET CORPORATION+ 767,881
15,294 GERBER SCIENTIFIC INCORPORATED 158,140
17,965 GEVITY HR INCORPORATED 439,424
45,087 GLOBAL PAYMENTS INCORPORATED 2,390,062
18,335 HEALTHCARE SERVICES GROUP 391,625
12,591 HEIDRICK & STRUGGLES INTERNATIONAL INCORPORATED+ 456,801
40,342 HYPERION SOLUTIONS CORPORATION+ 1,315,149
18,741 INFOSPACE INCORPORATED+ 523,811
26,082 INTERNET SECURITY SYSTEMS+ 625,446
12,270 INTRADO INCORPORATED+ 318,775
8,769 IPAYMENT INCORPORATED+ 375,752
19,531 JDA SOFTWARE GROUP INCORPORATED+ 282,028
30,819 KEANE INCORPORATED+ 485,399
21,576 KRONOS INCORPORATED+ 806,727
36,652 LABOR READY INCORPORATED+ 877,815
18,754 MANHATTAN ASSOCIATES INCORPORATED+<< 412,588
14,154 MAPINFO CORPORATION+ 198,439
18,868 MIVA INCORPORATED+ 76,981
14,736 MRO SOFTWARE INCORPORATED+ 235,187
29,732 NAPSTER INCORPORATED+ 100,494
21,797 NCO GROUP INCORPORATED+ 517,679
13,358 NEOWARE SYSTEMS INCORPORATED+<< 395,664
16,790 NETWORK EQUIPMENT TECHNOLOGY INCORPORATED+ 66,656
17,385 ON ASSIGNMENT INCORPORATED+ 190,887
13,457 OPEN SOLUTIONS INCORPORATED+ 367,511
14,486 PC-TEL INCORPORATED+ 137,907
16,962 PHOENIX TECHNOLOGIES LIMITED+ 115,002
165
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
BUSINESS SERVICES (CONTINUED)
10,752 PORTFOLIO RECOVERY ASSOCIATES INCORPORATED+<< $ 503,516
27,376 PROGRESS SOFTWARE CORPORATION+ 796,368
11,170 QUALITY SYSTEMS INCORPORATED+ 369,727
16,024 RADIANT SYSTEMS INCORPORATED+ 216,644
14,026 RADISYS CORPORATION+<< 278,416
36,415 SECURE COMPUTING CORPORATION+ 420,229
10,563 SOURCECORP INCORPORATED+ 254,674
40,409 SPHERION CORPORATION+ 420,254
11,446 SPSS INCORPORATED+ 362,380
7,632 STARTEK INCORPORATED 179,810
48,460 TAKE-TWO INTERACTIVE SOFTWARE INCORPORATED+<< 904,264
21,728 TALX CORPORATION 618,813
43,244 THQ INCORPORATED+<< 1,119,587
18,722 VENTIV HEALTH INCORPORATED+ 621,945
6,552 VERTRUE INCORPORATED+ 273,874
15,192 VIAD CORPORATION 520,782
5,526 VOLT INFORMATION SCIENCE INCORPORATED+ 168,875
23,543 WEBEX COMMUNICATIONS INCORPORATED+<< 792,693
32,536 WEBSENSE INCORPORATED+<< 897,343
37,569,181
---------------
CHEMICALS & ALLIED PRODUCTS - 3.28%
28,251 ALPHARMA INCORPORATED CLASS A 757,692
16,206 ARCH CHEMICALS INCORPORATED 492,662
23,968 ARQULE INCORPORATED+ 137,576
10,284 BRADLEY PHARMACEUTICALS INCORPORATED+<< 152,923
18,073 CAMBREX CORPORATION 353,146
22,741 CONNECTICS CORPORATION+<< 385,005
15,960 DIAGNOSTIC PRODUCTS CORPORATION 760,175
19,029 FIRST HORIZON PHARMACEUTICAL CORPORATION+ 479,721
23,197 GEORGIA GULF CORPORATION<< 602,890
19,773 HB FULLER COMPANY 1,015,146
21,580 IDEXX LABORATORIES INCORPORATED+ 1,863,649
30,101 IMMUCOR INCORPORATED+ 863,598
17,082 MACDERMID INCORPORATED 549,186
52,485 MGI PHARMA INCORPORATED+<< 918,487
7,969 NATURES SUNSHINE PRODUCTS INCORPORATED 99,613
37,786 NBTY INCORPORATED+<< 850,941
15,988 NOVEN PHARMACEUTICALS INCORPORATED+ 287,944
19,861 OM GROUP INCORPORATED+ 456,803
27,955 OMNOVA SOLUTIONS INCORPORATED+ 171,085
17,996 PAREXEL INTERNATIONAL CORPORATION+<< 475,814
6,014 PENFORD CORPORATION 96,705
62,290 POLYONE CORPORATION+ 580,543
6,607 QUAKER CHEMICAL CORPORATION 143,702
10,558 SURMODICS INCORPORATED+<< 373,331
166
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
CHEMICALS & ALLIED PRODUCTS (CONTINUED)
6,747 USANA HEALTH SCIENCES INCORPORATED+<< $ 281,485
11,651 WELLMAN INCORPORATED<< 74,100
13,223,922
---------------
COAL MINING - 0.69%
52,109 MASSEY ENERGY COMPANY 1,879,572
12,595 PENN VIRGINIA CORPORATION 894,245
2,773,817
---------------
COMMUNICATIONS - 1.08%
22,301 ANIXTER INTERNATIONAL INCORPORATED+ 1,065,542
12,534 AUDIOVOX CORPORATION CLASS A+ 149,656
28,197 BRIGHTPOINT INCORPORATED+<< 875,799
31,837 GENERAL COMMUNICATION INCORPORATED CLASS A+ 384,909
16,756 J2 GLOBAL COMMUNICATIONS INCORPORATED+<< 787,532
45,777 LIVE NATION INCORPORATED+ 908,215
19,846 NOVATEL WIRELESS INCORPORATED+<< 177,622
4,349,275
---------------
COMPUTERS-INTERGRATED SYSTEMS - 0.08%
20,681 AGILYSYS INCORPORATED 311,456
---------------
CONSTRUCTION SPECIAL TRADE CONTRACTORS - 0.64%
17,447 CHEMED CORPORATION 1,035,305
21,090 EMCOR GROUP INCORPORATED+<< 1,047,329
18,296 INSITUFORM TECHNOLOGIES INCORPORATED CLASS A+ 486,674
2,569,308
---------------
DEPOSITORY INSTITUTIONS - 6.99%
12,418 ANCHOR BANCORP WISCONSIN INCORPORATED 376,390
30,452 BANKATLANTIC BANCORP INCORPORATED CLASS A 438,204
21,600 BANKUNITED FINANCIAL CORPORATION CLASS A 584,064
23,742 BOSTON PRIVATE FINANCIAL HOLDINGS INCORPORATED 802,242
41,725 BROOKLINE BANCORP INCORPORATED 646,320
20,605 CENTRAL PACIFIC FINANCIAL CORPORATION 756,616
31,773 CHITTENDEN CORPORATION 920,457
20,286 COMMUNITY BANK SYSTEM INCORPORATED 452,986
18,771 DIME COMMUNITY BANCSHARES 269,739
14,153 DOWNEY FINANCIAL CORPORATION 952,497
40,516 EAST WEST BANCORP INCORPORATED 1,561,892
15,135 FIDELITY BANKSHARES INCORPORATED 508,990
54,753 FIRST BANCORP PUERTO RICO 676,747
47,754 FIRST COMMONWEALTH FINANCIAL CORPORATION 700,074
33,379 FIRST MIDWEST BANCORP INCORPORATED 1,220,670
15,551 FIRST REPUBLIC BANK 588,139
11,217 FIRSTFED FINANCIAL CORPORATION+<< 670,889
23,665 FLAGSTAR BANCORP INCORPORATED 357,341
167
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
DEPOSITORY INSTITUTIONS (CONTINUED)
15,159 FRANKLIN BANK CORPORATION+ $ 291,508
21,262 GLACIER BANCORP INCORPORATED 660,185
25,885 GOLD BANC CORPORATION INCORPORATED 474,213
26,690 HANMI FINANCIAL CORPORATION 482,021
13,199 HARBOR FLORIDA BANCSHARES INCORPORATED 499,846
12,124 IRWIN FINANCIAL CORPORATION 234,357
20,022 MAF BANCORP INCORPORATED 876,363
13,467 NARA BANK NATIONAL ASSOCIATION 236,346
11,893 PRIVATEBANCORP INCORPORATED 493,441
16,917 PROSPERITY BANCSHARES INCORPORATED 511,063
22,279 PROVIDENT BANKSHARES CORPORATION 812,069
50,916 REPUBLIC BANCORP INCORPORATED 613,031
50,582 SOUTH FINANCIAL GROUP INCORPORATED 1,322,719
30,758 STERLING BANCSHARES INCORPORATED TEXAS 555,182
23,567 STERLING FINANCIAL CORPORATION 683,443
31,717 SUSQUEHANNA BANCSHARES INCORPORATED 817,347
50,722 TRUSTCO BANK CORPORATION NEW YORK SHARES 617,287
63,111 UCBH HOLDINGS INCORPORATED 1,194,060
30,156 UMPQUA HOLDINGS CORPORATION 859,446
25,129 UNITED BANKSHARES INCORPORATED 961,687
42,902 WHITNEY HOLDING CORPORATION 1,521,305
16,026 WINTRUST FINANCIAL CORPORATION 932,232
174 ZIONS BANCORPORATION 14,395
28,147,803
---------------
DURABLE GOODS - CONSUMER - 0.03%
14,586 STURM, RUGER & COMPANY INCORPORATED<< 116,396
---------------
EATING & DRINKING PLACES - 2.22%
23,255 CEC ENTERTAINMENT INCORPORATED+ 781,833
12,734 IHOP CORPORATION 610,468
23,424 JACK IN THE BOX INCORPORATED+ 1,018,944
11,265 LANDRY'S RESTAURANTS INCORPORATED<< 397,992
12,190 LONE STAR STEAKHOUSE & SALOON INCORPORATED 346,440
15,524 O'CHARLEYS INCORPORATED+ 286,573
17,945 P.F. CHANG'S CHINA BISTRO INCORPORATED+<< 884,509
15,962 PAPA JOHNS INTERNATIONAL INCORPORATED+ 523,713
22,788 RARE HOSPITALITY INTERNATIONAL INCORPORATED+ 793,706
9,841 RED ROBIN GOURMET BURGERS INCORPORATED+<< 464,495
28,559 RYAN'S RESTAURANT GROUP INCORPORATED+ 414,106
39,144 SONIC CORPORATION+ 1,375,129
18,908 STEAK N SHAKE COMPANY+ 398,959
36,769 TRIARC COMPANIES INCORPORATED CLASS B 642,722
8,939,589
---------------
EDUCATIONAL SERVICES - 0.12%
15,584 UNIVERSAL TECHNICAL INSTITUTE INCORPORATED+ 469,078
---------------
168
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ELECTRIC, GAS & SANITARY SERVICES - 4.37%
20,430 ALLETE INCORPORATED<< $ 952,038
11,375 AMERICAN STATES WATER COMPANY 424,970
54,827 ATMOS ENERGY CORPORATION 1,443,595
32,939 AVISTA CORPORATION 680,190
7,752 CASCADE NATURAL GAS CORPORATION 152,714
8,322 CENTRAL VERMONT PUBLIC SERVICE 176,510
9,184 CH ENERGY GROUP INCORPORATED 440,832
33,841 CLECO CORPORATION 755,670
32,525 EL PASO ELECTRIC COMPANY+ 619,276
49,652 ENERGEN CORPORATION 1,737,820
3,539 GREEN MOUNTAIN POWER CORPORATION 102,242
14,419 LACLEDE GROUP INCORPORATED 496,302
18,712 NEW JERSEY RESOURCES 846,718
18,687 NORTHWEST NATURAL GAS COMPANY 663,202
51,721 PIEDMONT NATURAL GAS COMPANY<< 1,240,787
19,659 SOUTH JERSEY INDUSTRIES INCORPORATED 536,101
66,286 SOUTHERN UNION COMPANY 1,645,873
26,801 SOUTHWEST GAS CORPORATION 749,088
71,192 UGI CORPORATION 1,500,015
8,777 UIL HOLDINGS CORPORATION 459,476
23,675 UNISOURCE ENERGY CORPORATION 722,087
31,425 WASTE CONNECTIONS INCORPORATED+ 1,251,029
17,596,535
---------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 6.67%
17,209 ACTEL CORPORATION+ 274,311
30,389 ACUITY BRANDS INCORPORATED<< 1,215,560
77,262 ADAPTEC INCORPORATED+ 427,259
19,841 ADVANCED ENERGY INDUSTRIES INCORPORATED+ 280,353
50,755 AEROFLEX INCORPORATED+ 696,866
13,658 AO SMITH CORPORATION 721,142
7,912 APPLIED SIGNAL TECHNOLOGY INCORPORATED 156,895
27,367 ARTESYN TECHNOLOGIES INCORPORATED+ 299,669
25,479 ATMI INCORPORATED+ 769,466
19,068 BALDOR ELECTRIC COMPANY 645,833
7,935 BEL FUSE INCORPORATED CLASS B<< 277,963
28,838 BENCHMARK ELECTRONICS INCORPORATED+<< 1,105,937
17,214 C&D TECHNOLOGIES INCORPORATED<< 159,057
32,436 C-COR INCORPORATED+ 283,491
7,005 CATAPULT COMMUNICATIONS CORPORATION+ 93,167
17,926 CERADYNE INCORPORATED+ 894,507
26,296 CHECKPOINT SYSTEMS INCORPORATED+ 706,837
13,740 COMTECH TELECOMMUNICATIONS CORPORATION+ 400,796
24,308 CTS CORPORATION 325,241
10,500 CUBIC CORPORATION 251,370
24,198 CYMER INCORPORATED+ 1,099,557
12,800 DIODES INCORPORATED+ 531,200
169
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT (CONTINUED)
13,638 DIONEX CORPORATION+<< $ 838,464
21,911 DITECH COMMUNICATIONS CORPORATION+ 228,970
19,346 DSP GROUP INCORPORATED+ 561,228
19,539 ELECTRO SCIENTIFIC INDUSTRIES INCORPORATED+ 432,398
24,004 ESS TECHNOLOGY INCORPORATED+ 79,693
24,076 EXAR CORPORATION+ 343,805
14,665 GREATBATCH INCORPORATED+ 321,310
49,861 HARMONIC INCORPORATED+ 317,615
17,352 HUTCHINSON TECHNOLOGY INCORPORATED+<< 523,510
14,201 INTER-TEL INCORPORATED 304,469
15,125 LITTELFUSE INCORPORATED+ 516,216
19,710 MAGNETEK INCORPORATED+ 78,249
14,242 MERCURY COMPUTER SYSTEMS INCORPORATED+ 230,720
25,262 METHODE ELECTRONICS INCORPORATED 275,103
44,029 MICROSEMI CORPORATION+ 1,281,684
24,848 MOOG INCORPORATED CLASS A+ 881,838
3,191 NATIONAL PRESTO INDUSTRIES INCORPORATED 156,902
13,623 PARK ELECTROCHEMICAL CORPORATION 401,879
17,747 PERICOM SEMICONDUCTOR+ 174,985
28,042 PHOTRONICS INCORPORATED+ 526,068
20,019 POWER INTEGRATIONS INCORPORATED+ 496,071
20,754 REGAL-BELOIT CORPORATION 877,272
11,028 ROGERS CORPORATION+ 600,805
10,545 SBS TECHNOLOGIES INCORPORATED+ 170,829
108,060 SKYWORKS SOLUTIONS INCORPORATED+ 733,727
14,518 STANDARD MICROSYSTEMS CORPORATION+ 377,178
8,090 SUPERTEX INCORPORATED+<< 304,346
31,183 SYMMETRICOM INCORPORATED+ 266,615
16,821 SYNAPTICS INCORPORATED+ 369,894
27,459 TECHNITROL INCORPORATED 658,467
8,923 TOLLGRADE COMMUNICATIONS INCORPORATED+ 132,774
38,892 VARIAN SEMICONDUCTOR EQUIPMENT ASSOCIATES INCORPORATED+ 1,092,087
15,425 VIASAT INCORPORATED+ 441,926
13,071 VICOR CORPORATION 257,891
26,871,465
---------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES - 1.23%
8,459 CDI CORPORATION 243,366
12,953 MAXMUS INCORPORATED 466,049
22,210 PER-SE TECHNOLOGIES INCORPORATED+<< 592,119
30,048 REGENERON PHARMACEUTICAL INCORPORATED+ 499,698
12,498 SFBC INTERNATIONAL INCORPORATED+<< 304,701
38,769 TETRA TECH INCORPORATED+ 740,100
29,201 URS CORPORATION+ 1,175,340
28,601 WATSON WYATT & COMPANY HOLDINGS 931,821
4,953,194
---------------
170
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT - 2.31%
23,836 APTARGROUP INCORPORATED $ 1,316,939
39,646 COMMERCIAL METALS COMPANY 2,120,665
17,154 GRIFFON CORPORATION+<< 426,105
19,800 MASCOTECH ESCROW INCORPORATED+(A) 0
8,654 MATERIAL SCIENCES CORPORATION+ 104,540
23,314 MOBILE MINI INCORPORATED+ 720,869
13,858 NCI BUILDING SYSTEMS INCORPORATED+<< 828,293
53,715 SHAW GROUP INCORPORATED+ 1,632,936
24,912 SIMPSON MANUFACTURING COMPANY INCORPORATED 1,078,690
11,136 VALMONT INDUSTRIES INCORPORATED 468,157
17,236 WATTS WATER TECHNOLOGIES INCORPORATED 626,356
9,323,550
---------------
FINANCE COMPANIES - 0.03%
14,195 REWARDS NETWORK INCORPORATED+ 112,992
---------------
FOOD & KINDRED PRODUCTS - 1.56%
12,489 AMERICAN ITALIAN PASTA COMPANY CLASS A<< 78,181
50,118 CORN PRODUCTS INTERNATIONAL INCORPORATED 1,481,989
35,428 FLOWERS FOODS INCORPORATED 1,052,212
8,563 HANSEN NATURAL CORPORATION+<< 1,079,366
9,182 J & J SNACK FOODS CORPORATION 308,423
20,411 LANCE INCORPORATED 459,248
9,504 PEET'S COFFEE & TEA INCORPORATED+ 285,120
19,575 RALCORP HOLDINGS INCORPORATED+ 744,829
9,653 SANDERSON FARMS INCORPORATED 216,227
21,063 TREEHOUSE FOODS INCORPORATED+ 559,223
6,264,818
---------------
FOOD STORES - 0.50%
12,225 GREAT ATLANTIC & PACIFIC TEA COMPANY INCORPORATED+<< 427,019
21,212 PANERA BREAD COMPANY+ 1,594,718
2,021,737
---------------
FURNITURE & FIXTURES - 0.65%
8,005 BASSETT FURNITURE INDUSTRIES INCORPORATED 159,700
22,349 ETHAN ALLEN INTERIORS INCORPORATED 939,105
35,037 LA-Z-BOY INCORPORATED<< 595,629
23,802 SELECT COMFORT CORPORATION+<< 941,369
2,635,803
---------------
GENERAL MERCHANDISE STORES - 0.36%
34,121 CASEY'S GENERAL STORES INCORPORATED 780,347
27,004 FRED'S INCORPORATED 358,073
18,070 STEIN MART INCORPORATED 314,780
1,453,200
---------------
171
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
HEALTH SERVICES - 2.75%
10,708 AMEDISYS INCORPORATED+<< $ 372,103
20,111 AMSURG CORPORATION+<< 456,319
14,157 CROSS COUNTRY HEALTHCARE INCORPORATED+ 274,080
14,924 CRYOLIFE INCORPORATED+<< 65,666
18,563 ENZO BIOCHEM INCORPORATED+<< 250,601
13,161 GENESIS HEALTHCARE CORPORATION+ 578,294
17,669 GENTIVA HEALTH SERVICES INCORPORATED+ 321,753
23,218 HEALTHWAYS INCORPORATED+<< 1,182,725
44,636 HOOPER HOLMES INCORPORATED 128,998
13,994 LCA-VISION INCORPORATED 701,214
14,139 MATRIA HEALTHCARE INCORPORATED+ 536,716
22,638 NAUTILUS GROUP INCORPORATED<< 338,438
23,361 ODYSSEY HEALTHCARE INCORPORATED+ 402,043
16,346 PEDIATRIX MEDICAL GROUP INCORPORATED+ 1,677,753
11,392 REHABCARE GROUP INCORPORATED+ 214,739
35,112 SIERRA HEALTH SERVICES INCORPORATED+ 1,429,058
28,140 SUNRISE SENIOR LIVING INCORPORATED+<< 1,096,616
30,032 UNITED SURGICAL PARTNERS INTERNATIONAL INCORPORATED+ 1,063,433
11,090,549
---------------
HOLDING & OTHER INVESTMENT OFFICES - 2.92%
8,657 4KIDS ENTERTAINMENT INCORPORATED+ 148,814
21,369 ACADIA REALTY TRUST 503,240
30,608 COLONIAL PROPERTIES TRUST<< 1,534,379
37,825 COMMERCIAL NET LEASE REALTY INCORPORATED<< 881,323
14,931 EASTGROUP PROPERTIES INCORPORATED 708,327
17,863 ENTERTAINMENT PROPERTIES TRUST 749,889
15,484 ESSEX PROPERTY TRUST INCORPORATED 1,683,575
23,562 GLENBOROUGH REALTY TRUST INCORPORATED 512,474
20,171 KILROY REALTY CORPORATION 1,558,411
13,727 LTC PROPERTIES INCORPORATED 319,290
9,587 PARKWAY PROPERTIES INCORPORATED 418,760
31,788 SHURGARD STORAGE CENTERS INCORPORATED 2,118,034
11,125 SOVRAN SELF STORAGE INCORPORATED 614,100
11,750,616
---------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 0.46%
20,253 BELL MICROPRODUCTS INCORPORATED+ 124,758
14,946 COST PLUS INCORPORATED+<< 255,576
17,774 GUITAR CENTER INCORPORATED+<< 847,820
15,194 HAVERTY FURNITURE COMPANIES INCORPORATED 218,034
17,663 TUESDAY MORNING CORPORATION 407,839
1,854,027
---------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 0.33%
24,318 AZTAR CORPORATION+ 1,021,113
15,003 MARCUS CORPORATION 299,310
1,320,423
---------------
172
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 5.96%
12,013 A.S.V. INCORPORATED+<< $ 387,059
11,861 ASTEC INDUSTRIES INCORPORATED+ 425,810
68,108 AXCELIS TECHNOLOGIES INCORPORATED+ 399,113
11,839 BLACK BOX CORPORATION 568,864
35,099 BRIGGS & STRATTON CORPORATION 1,241,452
50,565 BROOKS AUTOMATION INCORPORATED+ 720,046
5,468 DRIL-QUIP INCORPORATED+ 387,408
14,715 ENPRO INDUSTRIES INCORPORATED+<< 504,725
17,592 GARDNER DENVER INCORPORATED+ 1,146,998
15,802 GLOBAL IMAGING SYSTEMS INCORPORATED+ 600,160
13,328 HYDRIL COMPANY+ 1,038,918
35,873 IDEX CORPORATION 1,871,494
71,484 JLG INDUSTRIES INCORPORATED<< 2,200,992
19,052 KAYDON CORPORATION<< 768,939
20,438 KOMAG INCORPORATED+<< 972,849
38,137 KULICKE & SOFFA INDUSTRIES INCORPORATED+ 363,827
38,422 LENNOX INTERNATIONAL INCORPORATED 1,147,281
7,805 LINDSAY MANUFACTURING COMPANY 211,437
9,912 LUFKIN INDUSTRIES INCORPORATED 549,521
20,596 MANITOWOC COMPANY INCORPORATED 1,877,325
26,496 MICROS SYSTEMS INCORPORATED+ 1,220,671
22,318 NETGEAR INCORPORATED+ 424,265
24,922 PAXAR CORPORATION+ 487,724
10,158 PLANAR SYSTEMS INCORPORATED+ 171,873
7,882 ROBBINS & MYERS INCORPORATED 170,251
8,641 SCANSOURCE INCORPORATED+ 522,003
29,351 TORO COMPANY 1,401,510
16,176 ULTRATECH INCORPORATED+ 395,988
16,067 WATSCO INCORPORATED 1,141,560
20,079 WOODWARD GOVERNOR COMPANY 667,627
23,987,690
---------------
INSURANCE AGENTS, BROKERS & SERVICE - 0.25%
24,502 HILB, ROGAL & HAMILTON COMPANY 1,009,972
---------------
INSURANCE CARRIERS - 3.13%
34,953 AMERIGROUP CORPORATION+ 735,411
29,125 CENTENE CORPORATION+ 849,576
19,419 DELPHI FINANCIAL GROUP INCORPORATED CLASS A 1,002,603
44,320 FREMONT GENERAL CORPORATION 955,539
14,035 INFINITY PROPERTY & CASUALTY CORPORATION 585,821
11,711 LANDAMERICA FINANCIAL GROUP INCORPORATED 794,591
37,489 PHILADELPHIA CONSOLIDATED HOLDING CORPORATION+ 1,279,875
14,547 PRESIDENTIAL LIFE CORPORATION 369,639
21,056 PROASSURANCE CORPORATION+ 1,094,912
14,569 RLI CORPORATION 834,804
6,783 SCPIE HOLDINGS INCORPORATED+ 166,184
19,260 SELECTIVE INSURANCE GROUP INCORPORATED 1,020,780
173
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
INSURANCE CARRIERS (CONTINUED)
19,836 STEWART & STEVENSON SERVICES CORPORATION<< $ 723,617
12,329 STEWART INFORMATION SERVICES CORPORATION 580,449
11,512 UNITED FIRE & CASUALTY COMPANY 378,745
25,240 ZENITH NATIONAL INSURANCE CORPORATION 1,214,801
12,587,347
---------------
LEATHER & LEATHER PRODUCTS - 0.44%
12,494 BROWN SHOE COMPANY INCORPORATED 655,685
15,494 GENESCO INCORPORATED+<< 602,562
17,628 K-SWISS INCORPORATED 531,308
1,789,555
---------------
LEGAL SERVICES - 0.06%
6,916 PRE-PAID LEGAL SERVICES INCORPORATED<< 245,380
---------------
LUMBER & WOOD PRODUCTS, EXCEPT FURNITURE - 0.57%
51,562 CHAMPION ENTERPRISES INCORPORATED+ 771,367
9,606 COACHMEN INDUSTRIES INCORPORATED 109,316
8,363 DELTIC TIMBER CORPORATION 506,798
4,604 SKYLINE CORPORATION 190,514
11,047 UNIVERSAL FOREST PRODUCTS 701,374
2,279,369
---------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 8.02%
47,219 AMERICAN MEDICAL SYSTEMS HOLDINGS INCORPORATED+ 1,062,428
9,377 ANALOGIC CORPORATION 620,757
20,104 ARMOR HOLDINGS INCORPORATED+ 1,171,862
16,987 ARTHROCARE CORPORATION+<< 812,318
15,753 BIOLASE TECHNOLOGY INCORPORATED<< 150,441
11,803 BIOSITE INCORPORATED+<< 612,930
9,597 CNS INCORPORATED 206,719
21,065 COHERENT INCORPORATED+ 739,592
15,271 COHU INCORPORATED 324,051
19,002 CONMED CORPORATION+ 363,888
30,152 COOPER COMPANIES INCORPORATED<< 1,629,113
14,834 CYBERONICS INCORPORATED+<< 382,272
8,372 DATASCOPE CORPORATION 331,196
15,034 DJ ORTHOPEDICS INCORPORATED+ 597,752
9,990 EDO CORPORATION<< 308,192
17,190 ESTERLINE TECHNOLOGIES CORPORATION+ 734,873
16,996 FEI COMPANY+ 337,371
46,796 FLIR SYSTEMS INCORPORATED+<< 1,329,474
31,659 FOSSIL INCORPORATED+ 588,224
18,022 HAEMONETICS CORPORATION+ 914,977
30,728 HOLOGIC INCORPORATED+ 1,700,795
9,601 ICU MEDICAL INCORPORATED+<< 347,460
47,561 INPUT OUTPUT INCORPORATED+<< 461,817
11,783 INTEGRA LIFESCIENCES HOLDINGS+<< 482,867
174
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS (CONTINUED)
26,118 INTERMAGNETICS GENERAL CORPORATION+ $ 654,256
21,491 INVACARE CORPORATION 667,510
16,895 ITRON INCORPORATED+ 1,011,166
9,719 KEITHLEY INSTRUMENTS INCORPORATED 149,284
6,763 KENSEY NASH CORPORATION+<< 193,422
46,620 KOPIN CORPORATION+ 233,566
13,576 LASERSCOPE+<< 321,072
25,915 MENTOR CORPORATION 1,174,209
18,380 MERIT MEDICAL SYSTEMS INCORPORATED+ 220,744
13,074 MTS SYSTEMS CORPORATION 546,885
11,658 OSTEOTECH INCORPORATED+ 51,062
11,536 PHOTON DYNAMICS INCORPORATED+ 216,300
15,612 POLYMEDICA CORPORATION 661,324
11,629 POSSIS MEDICAL INCORPORATED+ 118,151
50,916 RESMED INCORPORATED+<< 2,239,286
49,119 RESPIRONICS INCORPORATED+ 1,911,220
16,064 RUDOLPH TECHNOLOGIES INCORPORATED+<< 273,891
17,168 SONIC SOLUTIONS+<< 310,913
27,435 SYBRON DENTAL SPECIALTIES INCORPORATED+ 1,131,419
22,931 TELEDYNE TECHNOLOGIES INCORPORATED+ 816,344
21,719 THERAGENICS CORPORATION+ 68,632
36,815 TRIMBLE NAVIGATION LIMITED+ 1,658,516
18,181 VEECO INSTRUMENTS INCORPORATED+<< 424,526
21,456 VIASYS HEALTHCARE INCORPORATED+ 645,397
3,841 VITAL SIGNS INCORPORATED 210,986
12,520 X-RITE INCORPORATED<< 166,266
32,287,716
---------------
MEMBERSHIP ORGANIZATIONS - 0.12%
27,351 TRONOX INC COMMON CLASS B+ 464,693
---------------
METAL MINING - 0.32%
14,905 CLEVELAND CLIFFS INCORPORATED<< 1,298,524
---------------
MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS - 0.11%
14,924 AMCOL INTERNATIONAL CORPORATION 429,811
---------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 0.64%
10,641 DAKTRONICS INCORPORATED<< 388,397
18,242 JAKKS PACIFIC INCORPORATED+ 487,791
31,762 K2 INCORPORATED+<< 398,613
10,952 LYDALL INCORPORATED+ 105,687
8,042 RUSS BERRIE & COMPANY INCORPORATED 122,238
23,525 SHUFFLE MASTER INCORPORATED+<< 840,783
7,569 STANDEX INTERNATIONAL CORPORATION 239,635
2,583,144
---------------
175
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MISCELLANEOUS RETAIL - 1.25%
19,892 CASH AMERICA INTERNATIONAL INCORPORATED $ 597,158
12,967 HANCOCK FABRICS INCORPORATED<< 47,200
24,197 HIBBETT SPORTING GOODS INCORPORATED+ 798,259
13,770 J JILL GROUP INCORPORATED+ 329,241
15,873 JO ANN STORES INCORPORATED+<< 213,650
18,021 LONGS DRUG STORES CORPORATION 834,012
25,451 SPECTRUM BRANDS INCORPORATED+<< 552,796
18,537 WORLD FUEL SERVICES CORPORATION 749,636
32,450 ZALE CORPORATION+ 909,573
5,031,525
---------------
MOTION PICTURES - 0.31%
28,541 AVID TECHNOLOGY INCORPORATED+<< 1,240,392
---------------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING - 1.10%
17,205 ARKANSAS BEST CORPORATION 673,060
21,268 FORWARD AIR CORPORATION 793,084
30,510 HEARTLAND EXPRESS INCORPORATED 664,813
39,955 LANDSTAR SYSTEM INCORPORATED 1,762,814
19,198 OLD DOMINION FREIGHT LINE+ 517,386
4,411,157
---------------
NON-DEPOSITORY CREDIT INSTITUTIONS - 0.22%
18,346 FINANCIAL FEDERAL CORPORATION<< 537,538
12,422 WORLD ACCEPTANCE CORPORATION+ 340,363
877,901
---------------
OIL & GAS EXTRACTION - 4.52%
9,101 ATWOOD OCEANICS INCORPORATED+ 919,292
32,935 CABOT OIL & GAS CORPORATION 1,578,551
56,119 CIMAREX ENERGY COMPANY 2,427,708
52,668 HELIX ENERGY SOLUTIONS GROUP INCORPORATED+<< 1,996,117
18,104 OCEANEERING INTERNATIONAL INCORPORATED+ 1,037,359
11,022 PETROLEUM DEVELOPMENT CORPORATION+ 499,958
15,969 REMINGTON OIL & GAS CORPORATION+ 690,180
14,067 SEACOR HOLDINGS INCORPORATED+<< 1,114,106
38,323 ST. MARY LAND & EXPLORATION COMPANY<< 1,564,728
18,403 STONE ENERGY CORPORATION+ 812,124
19,449 SWIFT ENERGY COMPANY+ 728,560
23,504 TETRA TECH INCORPORATED+ 1,105,628
31,339 UNIT CORPORATION+ 1,747,149
24,092 VERITAS DGC INCORPORATED+<< 1,093,536
19,856 W-H ENERGY SERVICES INCORPORATED+ 883,394
18,198,390
---------------
PAPER & ALLIED PRODUCTS - 0.65%
22,416 BUCKEYE TECHNOLOGIES INCORPORATED+ 202,865
19,501 CARAUSTAR INDUSTRIES INCORPORATED+ 200,665
176
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
PAPER & ALLIED PRODUCTS (CONTINUED)
13,422 CHESAPEAKE CORPORATION $ 186,297
10,004 NEENAH PAPER INCORPORATED 327,631
42,987 PLAYTEX PRODUCTS INCORPORATED+ 450,074
11,049 POPE & TALBOT INCORPORATED 75,133
21,236 ROCK-TENN COMPANY CLASS A 318,328
10,442 SCHWEITZER MANDUIT INTERNATIONAL INCORPORATED 250,608
8,595 STANDARD REGISTER COMPANY 133,222
34,751 WAUSAU PAPER CORPORATION 492,422
2,637,245
---------------
PERSONAL SERVICES - 0.32%
6,294 ANGELICA CORPORATION 129,153
18,820 COINSTAR INCORPORATED+<< 487,626
3,664 CPI CORPORATION 74,746
14,304 G & K SERVICES INCORPORATED CLASS A 608,492
1,300,017
---------------
PETROLEUM REFINING & RELATED INDUSTRIES - 1.03%
12,308 ELKCORP 415,395
38,074 FRONTIER OIL CORPORATION 2,259,692
28,545 HEADWATERS INCORPORATED+<< 1,135,806
11,310 WD-40 COMPANY 348,913
4,159,806
---------------
PHARMACEUTICALS - 0.05%
41,462 SAVIENT PHARMACEUTICALS INCORPORATED+ 220,992
---------------
PRIMARY METAL INDUSTRIES - 3.44%
21,061 ALERIS INTERNATIONAL INCORPORATED+ 1,012,402
29,361 BELDEN CDT INCORPORATED 799,500
13,026 BRUSH ENGINEERED MATERIALS INCORPORATED+ 257,263
14,918 CARPENTER TECHNOLOGY CORPORATION<< 1,410,049
15,477 CENTURY ALUMINUM COMPANY+ 656,999
15,453 CHAPARRAL STEEL COMPANY+ 1,003,209
14,771 CURTISS-WRIGHT CORPORATION 977,840
20,762 LONE STAR TECHNOLOGIES INCORPORATED+ 1,150,422
29,202 MAVERICK TUBE CORPORATION+<< 1,547,414
24,820 MUELLER INDUSTRIES INCORPORATED 885,826
15,192 NS GROUP INCORPORATED+ 699,288
17,052 QUANEX CORPORATION<< 1,136,175
15,599 RTI INTERNATIONAL METALS INCORPORATED+<< 855,605
7,543 STEEL TECHNOLOGIES INCORPORATED 183,295
15,634 TEXAS INDUSTRIES INCORPORATED 945,701
18,856 TREDEGAR CORPORATION 299,999
10,187 WOLVERINE TUBE INCORPORATED+ 40,952
13,861,939
---------------
177
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 0.44%
22,288 BOWNE & COMPANY INCORPORATED $ 371,541
7,972 CONSOLIDATED GRAPHICS INCORPORATED+ 415,500
19,083 JOHN H. HARLAND COMPANY 749,962
7,423 THOMAS NELSON INCORPORATED 217,123
1,754,126
---------------
RAILROAD TRANSPORTATION - 0.30%
49,734 KANSAS CITY SOUTHERN+<< 1,228,430
---------------
REAL ESTATE - 0.65%
15,567 MERITAGE CORPORATION+ 855,562
38,281 NEW CENTURY FINANCIAL CORPORATION 1,761,692
2,617,254
---------------
REAL ESTATE INVESTMENT TRUST (REIT) - 0.18%
35,216 LEXINGTON CORPORATE PROPERTIES TRUST<< 734,254
---------------
RETAIL, TRADE & SERVICES - 0.41%
35,800 MEN'S WEARHOUSE INCORPORATED 1,286,652
24,900 STRIDE RITE CORPORATION 360,552
1,647,204
---------------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS - 0.13%
20,878 A. SCHULMAN INCORPORATED<< 516,731
---------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 0.78%
28,612 INVESTMENT TECHNOLOGY GROUP INCORPORATED+ 1,424,878
41,074 LABRANCHE & COMPANY INCORPORATED+<< 649,380
14,036 PIPER JAFFRAY COMPANIES INCORPORATED+ 771,980
10,741 SWS GROUP INCORPORATED 280,877
3,127,115
---------------
SOFTWARE - 0.14%
9,267 EPIQ SYSTEMS INCORPORATED+ 176,073
12,107 MANTECH INTERNATIONAL CORPORATION CLASS A+ 402,195
578,268
---------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 0.29%
18,847 APOGEE ENTERPRISES INCORPORATED 318,137
13,512 CARBO CERAMICS INCORPORATED<< 768,968
9,469 LIBBEY INCORPORATED 67,041
1,154,146
---------------
TELEPHONE SERVICES - 0.13%
14,803 COMMONWEALTH TELEPHONE ENTERPRISES INCORPORATED 509,963
---------------
TEXTILE MILL PRODUCTS - 0.65%
21,504 ALBANY INTERNATIONAL CORPORATION CLASS A 819,087
32,496 INTERFACE INCORPORATED+ 448,770
178
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
TEXTILE MILL PRODUCTS (CONTINUED)
9,903 OXFORD INDUSTRIES INCORPORATED $ 506,340
38,529 WOLVERINE WORLD WIDE INCORPORATED 852,647
2,626,844
---------------
TOBACCO PRODUCTS - 0.07%
59,037 ALLIANCE ONE INTERNATIONAL INCORPORATED 286,920
---------------
TRANSPORTATION BY AIR - 0.77%
15,825 BRISTOW GROUP INCORPORATED+ 488,993
22,084 EGL INCORPORATED+<< 993,780
24,519 FRONTIER AIRLINES INCORPORATED+<< 188,796
23,685 MESA AIR GROUP INCORPORATED+<< 270,957
39,205 SKYWEST INCORPORATED 1,147,530
3,090,056
---------------
TRANSPORTATION EQUIPMENT - 2.70%
24,067 AAR CORPORATION+<< 685,428
8,659 ARCTIC CAT INCORPORATED 208,336
34,957 CLARCOR INCORPORATED 1,244,469
43,212 FLEETWOOD ENTERPRISES INCORPORATED+<< 482,678
37,325 GENCORP INCORPORATED+<< 767,029
14,333 GROUP 1 AUTOMOTIVE INCORPORATED 681,391
18,023 MONACO COACH CORPORATION 241,508
49,869 OSHKOSH TRUCK CORPORATION 3,103,847
28,154 POLARIS INDUSTRIES INCORPORATED<< 1,536,082
8,000 STANDARD MOTOR PRODUCTS INCORPORATED<< 71,040
15,505 SUPERIOR INDUSTRIES INTERNATIONAL INCORPORATED 300,177
10,781 TRIUMPH GROUP INCORPORATED+ 477,167
21,086 WABASH NATIONAL CORPORATION 416,448
22,241 WINNEBAGO INDUSTRIES INCORPORATED<< 674,792
10,890,392
---------------
TRANSPORTATION SERVICES - 0.18%
13,686 HUB GROUP INCORPORATED CLASS A+ 623,808
11,959 PEGASUS SOLUTIONS INCORPORATED+ 112,534
736,342
---------------
WATER TRANSPORTATION - 0.30%
17,840 KIRBY CORPORATION+ 1,215,082
---------------
WHOLESALE TRADE NON-DURABLE GOODS - 1.53%
25,811 HAIN CELESTIAL GROUP INCORPORATED+ 675,990
21,199 MYERS INDUSTRIES INCORPORATED 338,972
8,961 NASH FINCH COMPANY<< 267,934
23,223 PERFORMANCE FOOD GROUP COMPANY+<< 724,325
15,547 SCHOOL SPECIALTY INCORPORATED+<< 536,372
22,650 TRACTOR SUPPLY COMPANY+ 1,502,601
179
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
SHARES SECURITY NAME VALUE
WHOLESALE TRADE NON-DURABLE GOODS (CONTINUED)
28,427 UNITED NATURAL FOODS INCORPORATED+<< $ 994,092
21,399 UNITED STATIONERS INCORPORATED+ 1,136,287
6,176,573
---------------
WHOLESALE TRADE DURABLE GOODS - 2.73%
6,605 AM CASTLE & COMPANY 194,848
16,552 APPLIED INDUSTRIAL TECHNOLOGIES INCORPORATED 738,219
11,947 BARNES GROUP INCORPORATED 483,854
19,591 BUILDING MATERIALS HOLDINGS CORPORATION<< 698,223
14,005 DIGI INTERNATIONAL INCORPORATED+ 163,438
10,161 DREW INDUSTRIES INCORPORATED+ 361,224
32,530 INSIGHT ENTERPRISES INCORPORATED+ 715,985
16,200 KAMAN CORPORATION CLASS A 407,592
38,945 KNIGHT TRANSPORTATION INCORPORATED<< 769,164
3,110 LAWSON PRODUCTS INCORPORATED 127,323
9,421 LENOX GROUP INCORPORATED+ 123,415
31,236 LKQ CORPORATION+ 650,021
27,037 OWENS & MINOR INCORPORATED 886,002
36,701 PEP BOYS-MANNY, MOE & JACK 554,552
21,311 RELIANCE STEEL & ALUMINUM COMPANY 2,001,529
17,100 RYERSON INCORPORATED 457,596
35,643 SCP POOL CORPORATION 1,671,990
11,004,975
---------------
TOTAL COMMON STOCKS (COST $267,377,376) 394,221,664
---------------
COLLATERAL FOR SECURITIES LENDING - 19.88%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.01%
27,648 SCUDDER DAILY ASSETS MONEY MARKET FUND 27,648
20,949 SHORT TERM INVESTMENT COMPANY MONEY MARKET FUND 20,949
48,597
---------------
PRINCIPAL INTEREST RATE MATURITY DATE
COLLATERAL INVESTED IN OTHER ASSETS - 19.87%
$ 289,790 AMERICAN GENERAL FINANCE CORPORATION+/- 4.78% 04/13/2007 289,909
120,649 APRECO LLC 4.62 05/15/2006 119,975
264,063 APRECO LLC 4.94 06/15/2006 261,462
160,995 ASPEN FUNDING CORPORATION 4.92 04/03/2006 160,995
1,609,946 ATLAS CAPITAL FUNDING CORPORATION SERIES MTN+/- 4.62 11/03/2006 1,609,946
181,248 ATLAS CAPITAL FUNDING LIMITED 4.80 04/17/2006 180,912
386,387 ATLAS CAPITAL FUNDING LIMITED 4.62 05/15/2006 384,227
804,973 ATLAS CAPITAL FUNDING LIMITED+/- 4.80 10/20/2006 804,973
804,973 ATLAS CAPITAL FUNDING LIMITED+/- 4.80 12/22/2006 804,973
128,796 ATOMIUM FUNDING CORPORATION 4.53 04/12/2006 128,642
111,698 BETA FINANCE INCORPORATED SERIES MTN+/- 4.88 06/02/2006 111,713
16,035,058 BNP PARIBAS REPURCHASE AGREEMENT
(MATURITY VALUE $16,041,646) 4.93 04/03/2006 16,035,058
180
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 477,961 BUCKINGHAM CDO LLC++ 4.60% 04/06/2006 $ 477,769
1,566,992 BUCKINGHAM CDO LLC 4.82 04/21/2006 1,563,263
804,973 BUCKINGHAM CDO LLC 4.82 04/25/2006 802,630
837,172 BUCKINGHAM II CDO LLC++ 4.83 04/25/2006 834,736
3,219,891 BUCKINGHAM II CDO LLC 4.83 04/26/2006 3,210,103
965,967 CAIRN HIGH GRADE FUNDING I 4.59 04/06/2006 965,581
77,277 CAIRN HIGH GRADE FUNDING I 4.71 04/26/2006 77,042
1,352,354 CAIRN HIGH GRADE FUNDING I 4.83 04/27/2006 1,348,067
804,973 CAIRN HIGH GRADE FUNDING I++ 4.83 05/02/2006 801,890
418,586 CAIRN HIGH GRADE FUNDING I 4.77 05/10/2006 416,526
1,619,122 CEDAR SPRINGS CAPITAL COMPANY LLC 4.78 04/05/2006 1,618,701
444,345 CEDAR SPRINGS CAPITAL COMPANY LLC 4.69 05/08/2006 442,274
143,189 CEDAR SPRINGS CAPITAL COMPANY LLC 4.70 05/10/2006 142,484
643,978 CEDAR SPRINGS CAPITAL COMPANY LLC 4.72 05/12/2006 640,636
321,989 CEDAR SPRINGS CAPITAL COMPANY LLC 4.90 06/07/2006 319,165
856,974 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.92 06/12/2006 848,876
1,770,940 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.72 04/12/2006 1,770,940
321,989 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.75 04/18/2007 321,989
1,133,402 CONSOLIDATED EDISON INCORPORATED 4.90 04/03/2006 1,133,402
80,497 CORPORATE ASSET SECURITIZATION AUSTRALIA LIMITED 4.81 04/13/2006 80,391
998,166 CREDIT SUISSE FIRST BOSTON NEW YORK SERIES YCD1+/- 4.92 05/04/2006 997,667
804,973 CULLINAN FINANCE CORPORATION+/- 4.71 11/15/2006 804,941
643,978 DEER VALLEY FUNDING LLC++ 4.51 04/10/2006 643,379
822,843 DEER VALLEY FUNDING LLC 4.81 04/17/2006 821,321
1,961,783 DEER VALLEY FUNDING LLC 4.83 04/19/2006 1,957,624
418,586 DEER VALLEY FUNDING LLC 4.80 05/03/2006 416,924
1,609,946 DEUTSCHE BANK REPURCHASE AGREEMENT
(MATURITY VALUE $1,610,595) 4.84 04/03/2006 1,609,946
1,541,974 EIFFEL FUNDING LLC 4.91 04/03/2006 1,541,974
96,597 EIFFEL FUNDING LLC 4.78 04/17/2006 96,418
1,159,837 EUREKA SECURITIZATION INCORPORATED 4.88 05/16/2006 1,153,203
26,532 GALLEON CAPITAL LLC 4.65 04/03/2006 26,532
48,298 GEMINI SECURITIZATION INCORPORATED 4.90 05/24/2006 47,969
772,774 GOLDMAN SACHS GROUP INCORPORATED+/- 4.97 06/30/2006 772,774
2,307,052 HARRIER FINANCE FUNDING LLC 4.62 04/03/2006 2,307,052
515,183 ING USA ANNUITY & LIFE INSURANCE+/- 5.03 06/06/2006 515,183
6,465,856 JP MORGAN CHASE SECURITIES CORPORATION REPURCHASE AGREEMENT
(MATURITY VALUE $6,468,512) 4.93 04/03/2006 6,465,856
41,859 K2 (USA) LLC 4.63 05/02/2006 41,698
148,920 K2 (USA) LLC SERIES MTN+/- 4.87 07/24/2006 148,957
482,984 KAUPTHING BANK HF SERIES MTN+/-++ 4.84 03/20/2007 482,887
64,398 KLIO II FUNDING CORPORATION 4.58 04/05/2006 64,381
77,599 KLIO III FUNDING CORPORATION 4.69 04/19/2006 77,435
32,199 LEXINGTON PARKER CAPITAL CORPORATION 4.62 05/02/2006 32,076
122,227 LEXINGTON PARKER CAPITAL CORPORATION 4.69 05/10/2006 121,626
804,973 LIBERTY LIGHT US CAPITAL SERIES MTN+/- 4.81 05/26/2006 805,021
64,398 LINKS FINANCE LLC SERIES MTN1+/- 4.68 09/12/2006 64,398
181
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 193,193 LIQUID FUNDING LIMITED+/- 4.94% 04/24/2006 $ 193,201
740,575 LIQUID FUNDING LIMITED+/- 4.71 08/14/2006 740,575
482,984 LIQUID FUNDING LIMITED+/- 4.61 12/01/2006 482,984
193,193 LIQUID FUNDING LIMITED SERIES MTN+/- 4.83 02/20/2007 193,184
321,989 MBIA GLOBAL FUNDING LLC+/- 4.78 02/20/2007 321,970
1,617,995 MERRILL LYNCH & COMPANY SERIES MTN+/- 4.80 10/27/2006 1,619,209
965,967 MORGAN STANLEY+/- 4.94 10/10/2006 965,967
148,920 MORGAN STANLEY SERIES EXL+/- 4.78 08/13/2010 148,960
554,433 MORTGAGE INTEREST NET TRUST 4.68 04/03/2006 554,433
727,695 MORTGAGE INTEREST NET TRUST 4.78 05/03/2006 724,806
32,199 NATIONWIDE BUILDING SOC+/- 4.74 07/21/2006 32,214
710,083 NEWPORT FUNDING CORPORATION 4.92 04/03/2006 710,083
974,951 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 4.78 04/03/2006 974,951
1,126,962 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.68 04/04/2006 1,126,815
143,543 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.93 06/26/2006 141,915
61,178 NORDEA NORTH AMERICA INCORPORATED 4.89 05/15/2006 60,836
1,698,493 NORTHERN ROCK PLC+/- 4.63 04/21/2006 1,698,255
127,282 NORTHERN ROCK PLC 4.69 04/24/2006 126,928
1,609,946 NORTHERN ROCK PLC+/- 4.66 02/05/2007 1,609,962
130,245 RACERS TRUST 2004-6-MM+/- 4.79 05/22/2006 130,263
32,199 SCALDIS CAPITAL LIMITED 4.93 06/15/2006 31,882
128,796 TANGO FINANCE CORPORATION 4.95 06/21/2006 127,423
372,316 TANGO FINANCE CORPORATION SERIES MTN+/- 4.87 10/25/2006 372,439
186,142 TRAVELERS INSURANCE COMPANY+/- 4.77 02/09/2007 186,138
804,973 UNICREDITO ITALIANO SERIES LIB+/- 4.70 03/09/2007 804,925
804,973 UNICREDITO ITALIANO SERIES YCD+/- 4.47 04/03/2006 804,973
1,223,559 US BANK NA SERIES BKNT+/- 4.66 07/28/2006 1,223,595
321,989 WHISTLEJACKET CAPITAL LIMITED+/- 4.65 06/09/2006 321,989
32,199 WHITE PINE FINANCE LLC 4.64 04/18/2006 32,135
160,995 WHITE PINE FINANCE LLC 4.82 05/05/2006 160,309
131,436 WHITE PINE FINANCE LLC 4.84 05/25/2006 130,523
98,915 WHITE PINE FINANCE LLC 4.93 06/20/2006 97,874
849,697 WHITE PINE FINANCE LLC 4.93 06/22/2006 840,520
804,973 WHITE PINE FINANCE LLC+/- 4.70 07/17/2006 804,973
772,774 WHITE PINE FINANCE LLC SERIES MTN1+/- 4.81 06/12/2006 772,843
79,996,544
---------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $80,045,141) 80,045,141
---------------
SHORT-TERM INVESTMENTS - 1.55%
SHARES
MUTUAL FUND - 1.45%
5,844,883 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~@ 5,844,883
---------------
182
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
US TREASURY BILLS - 0.10%
$ 85,000 US TREASURY BILL^# 4.16% 05/11/2006 $ 84,606
315,000 US TREASURY BILL^# 4.48 08/10/2006 309,885
394,491
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $6,239,455) 6,239,374
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $353,661,972)* 119.31% $ 480,506,179
OTHER ASSETS AND LIABILITIES, NET (19.31) (77,780,827)
------ ---------------
TOTAL NET ASSETS 100.00% $ 402,725,352
====== ===============
+ NON-INCOME EARNING SECURITIES.
<< ALL OR A PORTION OF THIS SECURITY IS ON LOAN. (SEE NOTE 2)
(A) SECURITY FAIR VALUED IN ACCORDANCE WITH THE PROCEDURES APPROVED BY THE
BOARD OF TRUSTEES.
+/- VARIABLE RATE INVESTMENTS.
++ SECURITIES THAT MAY BE RESOLD TO "QUALIFIED INSTITUTIONAL BUYERS" UNDER
RULE 144A OR SECURITIES OFFERED PURSUANT TO SECTION 4 (2) OF THE
SECURITIES ACT OF 1933, AS AMENDED.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
@ SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $5,844,883.
^ ZERO COUPON BOND. INTEREST RATE PRESENTED IS YIELD TO MATURITY.
# SECURITY PLEDGED AS COLLATERAL FOR FUTURES TRANSACTIONS.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
183
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 97.64%
APPAREL & ACCESSORY STORES - 1.83%
136,000 CARTER'S INCORPORATED+ $ 9,178,640
1,451,600 WET SEAL INCORPORATED CLASS A+ 9,653,140
18,831,780
---------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS - 0.83%
615,400 QUIKSILVER INCORPORATED+ 8,529,444
---------------
BUSINESS SERVICES - 16.15%
408,500 ACCESS INTEGRATED TECHNOLOGIES INCORPORATED+ 5,249,225
145,400 ADMINISTAFF INCORPORATED 7,903,944
664,400 CNET NETWORKS INCORPORATED+ 9,441,124
474,500 COGENT INCORPORATED+<< 8,702,330
892,500 EPICOR SOFTWARE CORPORATION+ 11,986,275
581,500 GERBER SCIENTIFIC INCORPORATED 6,012,710
557,100 HUDSON HIGHLAND GROUP INCORPORATED+ 10,551,474
238,250 HYPERION SOLUTIONS CORPORATION+ 7,766,950
1,169,200 LIONBRIDGE TECHNOLOGIES INCORPORATED+ 9,248,372
207,600 MARCHEX INCORPORATED CLASS B+ 4,463,400
803,200 OPSWARE INCORPORATED+ 6,883,424
837,040 PARAMETRIC TECHNOLOGY CORPORATION+ 13,668,863
421,800 PDF SOLUTIONS INCORPORATED+ 7,980,456
338,600 PERFICIENT INCORPORATED+ 3,931,146
782,000 QUEST SOFTWARE INCORPORATED+ 13,059,400
1,269,200 TIBCO SOFTWARE INCORPORATED+<< 10,610,512
470,500 ULTIMATE SOFTWARE GROUP INCORPORATED+ 12,162,425
164,100 WEBEX COMMUNICATIONS INCORPORATED+ 5,525,247
427,400 WITNESS SYSTEMS INCORPORATED+ 10,855,960
166,003,237
---------------
CHEMICALS & ALLIED PRODUCTS - 9.55%
423,300 ALKERMES INCORPORATED+ 9,333,765
567,300 CARDIOME PHARMA CORPORATION+ 7,204,710
425,300 CONNECTICS CORPORATION+ 7,200,329
543,000 ENCYSIVE PHARMACEUTICALS INCORPORATED+ 2,655,270
728,400 GENITOPE CORPORATION+ 6,337,080
183,350 NEUROCRINE BIOSCIENCES INCORPORATED+ 11,833,409
328,400 NUVELO INCORPORATED+<< 5,852,088
515,200 ONYX PHARMACEUTICALS INCORPORATED+ 13,529,152
349,800 PDL BIOPHARMA INCORPORATED+<< 11,473,440
997,500 SANTARUS INCORPORATED+<< 7,451,325
599,900 SOLEXA INCORPORATED+<< 5,987,002
427,300 ZYMOGENETICS INCORPORATED+ 9,238,226
98,095,796
---------------
184
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMUNICATIONS - 1.07%
176,500 CHINA GRENTECH CORPORATION LIMITED ADR+ $ 3,018,150
1,587,200 EXTREME NETWORKS INCORPORATED+ 7,967,744
10,985,894
---------------
COMPUTER SOFTWARE & SERVICES - 0.20%
164,700 NESS TECHNOLOGIES INCORPORATED+ 2,073,573
---------------
EATING & DRINKING PLACES - 0.47%
276,500 MORTON'S RESTAURANT GROUP INCORPORATED+ 4,805,570
---------------
ELECTRIC, GAS & SANITARY SERVICES - 0.73%
253,500 CLEAN HARBORS INCORPORATED+ 7,521,345
---------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 12.80%
873,300 ADVANCED ANALOGIC TECHNOLOGIES INCORPORATED+<< 9,955,620
523,300 ADVANCED ENERGY INDUSTRIES INCORPORATED+ 7,394,229
242,300 ATHEROS COMMUNICATIONS INCORPORATED+ 6,345,837
281,300 DSP GROUP INCORPORATED+ 8,160,513
1,227,600 INTEGRATED DEVICE TECHNOLOGY INCORPORATED+ 18,242,136
516,600 MATTSON TECHNOLOGY INCORPORATED+ 6,199,200
147,300 NICE SYSTEMS LIMITED SPONSORED ADR+ 7,506,408
211,200 ON TRACK INNOVATIONS LIMITED+<< 2,650,560
599,400 OPENWAVE SYSTEMS INCORPORATED+ 12,935,052
372,100 OSI SYSTEMS INCORPORATED+ 7,862,473
1,176,700 PMC-SIERRA INCORPORATED+<< 14,461,643
412,400 RADYNE COMSTREAME INCORPORATED+ 6,586,028
447,500 TEKELEC+ 6,188,925
305,100 TESSERA TECHNOLOGIES INCORPORATED+ 9,787,608
260,100 VARIAN SEMICONDUCTOR EQUIPMENT ASSOCIATES INCORPORATED+ 7,303,608
131,579,840
---------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES - 5.46%
219,200 CORE LABORATORIES NV+ 10,422,960
305,000 DIGITAS INCORPORATED+ 4,392,000
214,700 GEN-PROBE INCORPORATED+<< 11,834,264
480,100 KERYX BIOPHARMACEUTICALS INCORPORATED+ 9,174,711
177,100 LIFECELL CORPORATION+ 3,993,605
260,200 PHARMACEUTICAL PRODUCT DEVELOPMENT INCORPORATED 9,005,522
261,100 SYMYX TECHNOLOGIES INCORPORATED+ 7,242,914
56,065,976
---------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT - 0.90%
154,100 NCI BUILDING SYSTEMS INCORPORATED+<< 9,210,557
---------------
FOOD & KINDRED PRODUCTS - 0.33%
153,100 ALTUS PHARMACEUTICALS INCORPORATED+ 3,357,483
---------------
FURNITURE & FIXTURES - 1.06%
643,200 LA-Z-BOY INCORPORATED 10,934,400
---------------
185
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
GENERAL MERCHANDISE STORES - 1.89%
645,700 BIG LOTS INCORPORATED+ $ 9,013,972
154,600 BON TON STORES INCORPORATED<< 5,001,310
370,100 RETAIL VENTURES INCORPORATED+ 5,425,666
19,440,948
---------------
HEALTH SERVICES - 2.72%
258,500 COMMUNITY HEALTH SYSTEMS INCORPORATED+ 9,344,775
1,085,900 HUMAN GENOME SCIENCES INCORPORATED+<< 11,803,733
430,600 VALEANT PHARMACEUTICALS INTERNATIONAL 6,825,010
27,973,518
---------------
HOLDING & OTHER INVESTMENT OFFICES - 0.39%
362,800 CAPITAL LEASE FUNDING INCORPORATED 4,023,452
---------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 1.58%
548,600 KNOLL INCORPORATED 11,696,152
798,500 RESTORATION HARDWARE INCORPORATED+ 4,543,465
16,239,617
---------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 0.70%
157,600 GAYLORD ENTERTAINMENT COMPANY+ 7,151,888
---------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 2.09%
715,300 NUANCE COMMUNICATIONS INCORPORATED+ 8,447,693
114,300 RACKABLE SYSTEMS INCORPORATED+<< 6,040,755
481,100 SIGMA DESIGNS INCORPORATED+<< 7,019,249
21,507,697
---------------
INSURANCE CARRIERS - 1.40%
318,600 AXIS CAPITAL HOLDINGS LIMITED 9,526,140
259,100 HEALTHSPRING INCORPORATED+<< 4,821,851
14,347,991
---------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 10.98%
237,500 COHERENT INCORPORATED+<< 8,338,625
202,200 DEXCOM INCORPORATED+<< 4,098,594
306,100 ESTERLINE TECHNOLOGIES CORPORATION+ 13,085,775
223,300 FORMFACTOR INCORPORATED+ 8,780,156
456,900 ILLUMINA INCORPORATED+ 10,851,375
768,500 INPUT OUTPUT INCORPORATED+<< 7,462,135
264,500 INTEGRA LIFESCIENCES HOLDINGS+ 10,839,210
1,487,500 LTX CORPORATION+ 8,032,500
240,000 NEXTEST SYSTEMS CORPORATION+ 3,890,400
155,900 NOVATEL INCORPORATED+ 5,748,033
225,000 NUCRYST PHARMACEUTICALS CORPORATION+ 2,335,500
332,700 RUDOLPH TECHNOLOGIES INCORPORATED+ 5,672,535
94,200 SONOSITE INCORPORATED+ 3,828,288
186
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS (CONTINUED)
674,100 THORATEC LABS CORPORATION+ $ 12,989,907
348,600 WRIGHT MEDICAL GROUP INCORPORATED+ 6,884,850
112,837,883
---------------
METAL MINING - 1.17%
784,700 NOVAGOLD RESOURCES INCORPORATED+<< 12,005,910
---------------
MISCELLANEOUS RETAIL - 3.36%
320,900 AC MOORE ARTS & CRAFTS INCORPORATED+ 5,904,560
397,900 CKX INCORPORATED+ 5,200,553
480,500 DOLLAR TREE STORES INCORPORATED+<< 13,295,435
249,800 WORLD FUEL SERVICES CORPORATION 10,101,912
34,502,460
---------------
NON-DEPOSITORY CREDIT INSTITUTIONS - 1.37%
566,311 CAPITALSOURCE INCORPORATED<< 14,089,818
---------------
OIL & GAS EXTRACTION - 5.54%
272,400 BASIC ENERGY SERVICES INCORPORATED+ 8,117,520
385,700 BOIS D' ARC ENERGY INCORPORATED+ 6,421,905
248,800 BRONCO DRILLING COMPANY INCORPORATED+ 6,543,440
1,001,500 PETROHAWK ENERGY CORPORATION+ 13,720,550
231,500 PIONEER NATURAL RESOURCES COMPANY<< 10,243,875
799,000 WARREN RESOURCES INCORPORATED+<< 11,905,100
56,952,390
---------------
PRIMARY METAL INDUSTRIES - 1.84%
125,500 CHAPARRAL STEEL COMPANY+ 8,147,460
196,900 RTI INTERNATIONAL METALS INCORPORATED+<< 10,799,965
18,947,425
---------------
RAILROAD TRANSPORTATION - 0.65%
217,800 GENESEE & WYOMING INCORPORATED+ 6,682,104
---------------
SOCIAL SERVICES - 0.57%
179,900 PROVIDENCE SERVICE CORPORATION+ 5,850,348
---------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 1.26%
233,800 APOGEE ENTERPRISES INCORPORATED 3,946,544
621,700 US CONCRETE INCORPORATED+ 8,989,782
12,936,326
---------------
TEXTILE MILL PRODUCTS - 1.31%
262,400 OXFORD INDUSTRIES INCORPORATED 13,416,512
---------------
TRANSPORTATION BY AIR - 2.43%
120,300 ATLAS AIR WORLDWIDE HOLDINGS INCORPORATED+ 5,666,130
182,300 CHC HELICOPTER CORPORATION 4,639,535
187
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
TRANSPORTATION BY AIR (CONTINUED)
527,600 REPUBLIC AIRWAYS HOLDINGS INCORPORATED+<< $ 7,813,756
170,500 US AIRWAYS GROUP INCORPORATED+<< 6,820,000
24,939,421
---------------
TRANSPORTATION EQUIPMENT - 0.63%
336,700 COMMERCIAL VEHICLE GROUP INCORPORATED+ 6,468,007
---------------
WHOLESALE TRADE NON-DURABLE GOODS - 1.64%
246,600 HERBALIFE LIMITED+ 8,327,682
286,100 NASH FINCH COMPANY 8,554,390
16,882,072
---------------
WHOLESALE TRADE DURABLE GOODS - 2.74%
367,500 AVNET INCORPORATED+ 9,327,150
318,900 CYTYC CORPORATION+<< 8,986,602
470,900 LKQ CORPORATION+ 9,799,429
28,113,181
---------------
TOTAL COMMON STOCKS (COST $820,281,439) 1,003,303,863
---------------
COLLATERAL FOR SECURITIES LENDING - 10.04%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.01%
35,616 SCUDDER DAILY ASSETS MONEY MARKET FUND 35,616
26,987 SHORT TERM INVESTMENT COMPANY MONEY MARKET FUND 26,987
62,603
---------------
PRINCIPAL INTEREST RATE MATURITY DATE
COLLATERAL INVESTED IN OTHER ASSETS - 10.03%
$ 373,305 AMERICAN GENERAL FINANCE CORPORATION+/- 4.78% 04/13/2007 $ 373,458
155,419 APRECO LLC 4.62 05/15/2006 154,551
340,164 APRECO LLC 4.94 06/15/2006 336,813
207,392 ASPEN FUNDING CORPORATION 4.92 04/03/2006 207,392
2,073,918 ATLAS CAPITAL FUNDING CORPORATION SERIES MTN+/- 4.62 11/03/2006 2,073,918
233,482 ATLAS CAPITAL FUNDING LIMITED 4.80 04/17/2006 233,050
497,740 ATLAS CAPITAL FUNDING LIMITED 4.62 05/15/2006 494,958
1,036,959 ATLAS CAPITAL FUNDING LIMITED+/- 4.80 10/20/2006 1,036,959
1,036,959 ATLAS CAPITAL FUNDING LIMITED+/- 4.80 12/22/2006 1,036,959
165,913 ATOMIUM FUNDING CORPORATION 4.53 04/12/2006 165,716
143,888 BETA FINANCE INCORPORATED SERIES MTN+/- 4.88 06/02/2006 143,907
20,656,225 BNP PARIBAS REPURCHASE AGREEMENT
(MATURITY VALUE $20,664,711) 4.93 04/03/2006 20,656,225
615,705 BUCKINGHAM CDO LLC++ 4.60 04/06/2006 615,459
2,018,586 BUCKINGHAM CDO LLC 4.82 04/21/2006 2,013,782
1,036,959 BUCKINGHAM CDO LLC 4.82 04/25/2006 1,033,942
1,078,437 BUCKINGHAM II CDO LLC++ 4.83 04/25/2006 1,075,299
4,147,836 BUCKINGHAM II CDO LLC 4.83 04/26/2006 4,135,227
188
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 1,244,351 CAIRN HIGH GRADE FUNDING I 4.59% 04/06/2006 $ 1,243,853
99,548 CAIRN HIGH GRADE FUNDING I 4.71 04/26/2006 99,245
1,742,091 CAIRN HIGH GRADE FUNDING I 4.83 04/27/2006 1,736,569
1,036,959 CAIRN HIGH GRADE FUNDING I++ 4.83 05/02/2006 1,032,988
539,219 CAIRN HIGH GRADE FUNDING I 4.77 05/10/2006 536,566
2,085,740 CEDAR SPRINGS CAPITAL COMPANY LLC 4.78 04/05/2006 2,085,197
572,401 CEDAR SPRINGS CAPITAL COMPANY LLC 4.69 05/08/2006 569,734
184,454 CEDAR SPRINGS CAPITAL COMPANY LLC 4.70 05/10/2006 183,547
829,567 CEDAR SPRINGS CAPITAL COMPANY LLC 4.72 05/12/2006 825,262
414,784 CEDAR SPRINGS CAPITAL COMPANY LLC 4.90 06/07/2006 411,146
1,103,947 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.92 06/12/2006 1,093,514
2,281,310 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.72 04/12/2006 2,281,310
414,784 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.75 04/18/2007 414,784
1,460,038 CONSOLIDATED EDISON INCORPORATED 4.90 04/03/2006 1,460,038
103,696 CORPORATE ASSET SECURITIZATION AUSTRALIA LIMITED 4.81 04/13/2006 103,559
1,285,829 CREDIT SUISSE FIRST BOSTON NEW YORK SERIES YCD1+/- 4.92 05/04/2006 1,285,186
1,036,959 CULLINAN FINANCE CORPORATION+/- 4.71 11/15/2006 1,036,918
829,567 DEER VALLEY FUNDING LLC++ 4.51 04/10/2006 828,796
1,059,980 DEER VALLEY FUNDING LLC 4.81 04/17/2006 1,058,019
2,527,152 DEER VALLEY FUNDING LLC 4.83 04/19/2006 2,521,795
539,219 DEER VALLEY FUNDING LLC 4.80 05/03/2006 537,078
2,073,918 DEUTSCHE BANK REPURCHASE AGREEMENT
(MATURITY VALUE $2,074,754) 4.84 04/03/2006 2,073,918
1,986,357 EIFFEL FUNDING LLC 4.91 04/03/2006 1,986,357
124,435 EIFFEL FUNDING LLC 4.78 04/17/2006 124,205
1,494,092 EUREKA SECURITIZATION INCORPORATED 4.88 05/16/2006 1,485,546
34,178 GALLEON CAPITAL LLC 4.65 04/03/2006 34,178
62,218 GEMINI SECURITIZATION INCORPORATED 4.90 05/24/2006 61,794
995,481 GOLDMAN SACHS GROUP INCORPORATED+/- 4.97 06/30/2006 995,481
2,971,925 HARRIER FINANCE FUNDING LLC 4.62 04/03/2006 2,971,925
663,654 ING USA ANNUITY & LIFE INSURANCE+/- 5.03 06/06/2006 663,654
8,329,260 JP MORGAN CHASE SECURITIES CORPORATION REPURCHASE AGREEMENT
(MATURITY VALUE $8,332,682) 4.93 04/03/2006 8,329,260
53,922 K2 (USA) LLC 4.63 05/02/2006 53,715
191,837 K2 (USA) LLC SERIES MTN+/- 4.87 07/24/2006 191,885
622,175 KAUPTHING BANK HF SERIES MTN+/-++ 4.84 03/20/2007 622,051
82,957 KLIO II FUNDING CORPORATION 4.58 04/05/2006 82,935
99,963 KLIO III FUNDING CORPORATION 4.69 04/19/2006 99,751
41,478 LEXINGTON PARKER CAPITAL CORPORATION 4.62 05/02/2006 41,320
157,452 LEXINGTON PARKER CAPITAL CORPORATION 4.69 05/10/2006 156,677
1,036,959 LIBERTY LIGHT US CAPITAL SERIES MTN+/- 4.81 05/26/2006 1,037,021
82,957 LINKS FINANCE LLC SERIES MTN1+/- 4.68 09/12/2006 82,958
248,870 LIQUID FUNDING LIMITED+/- 4.94 04/24/2006 248,880
954,002 LIQUID FUNDING LIMITED+/- 4.71 08/14/2006 954,002
622,175 LIQUID FUNDING LIMITED+/- 4.61 12/01/2006 622,175
248,870 LIQUID FUNDING LIMITED SERIES MTN+/- 4.83 02/20/2007 248,858
414,784 MBIA GLOBAL FUNDING LLC+/- 4.78 02/20/2007 414,759
189
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 2,084,288 MERRILL LYNCH & COMPANY SERIES MTN+/- 4.80% 10/27/2006 $ 2,085,851
1,244,351 MORGAN STANLEY+/- 4.94 10/10/2006 1,244,351
191,837 MORGAN STANLEY SERIES EXL+/- 4.78 08/13/2010 191,889
714,216 MORTGAGE INTEREST NET TRUST 4.68 04/03/2006 714,216
937,411 MORTGAGE INTEREST NET TRUST 4.78 05/03/2006 933,690
41,478 NATIONWIDE BUILDING SOC+/- 4.74 07/21/2006 41,498
914,722 NEWPORT FUNDING CORPORATION 4.92 04/03/2006 914,722
1,255,923 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 4.78 04/03/2006 1,255,923
1,451,743 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.68 04/04/2006 1,451,554
184,911 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.93 06/26/2006 182,814
78,809 NORDEA NORTH AMERICA INCORPORATED 4.89 05/15/2006 78,368
2,187,984 NORTHERN ROCK PLC+/- 4.63 04/21/2006 2,187,677
163,964 NORTHERN ROCK PLC 4.69 04/24/2006 163,508
2,073,918 NORTHERN ROCK PLC+/- 4.66 02/05/2007 2,073,939
167,780 RACERS TRUST 2004-6-MM+/- 4.79 05/22/2006 167,804
41,478 SCALDIS CAPITAL LIMITED 4.93 06/15/2006 41,070
165,913 TANGO FINANCE CORPORATION 4.95 06/21/2006 164,145
479,614 TANGO FINANCE CORPORATION SERIES MTN+/- 4.87 10/25/2006 479,773
239,786 TRAVELERS INSURANCE COMPANY+/- 4.77 02/09/2007 239,782
1,036,959 UNICREDITO ITALIANO SERIES LIB+/- 4.70 03/09/2007 1,036,897
1,036,959 UNICREDITO ITALIANO SERIES YCD+/- 4.47 04/03/2006 1,036,959
1,576,178 US BANK NA SERIES BKNT+/- 4.66 07/28/2006 1,576,225
414,784 WHISTLEJACKET CAPITAL LIMITED+/- 4.65 06/09/2006 414,784
41,478 WHITE PINE FINANCE LLC 4.64 04/18/2006 41,396
207,392 WHITE PINE FINANCE LLC 4.82 05/05/2006 206,508
169,315 WHITE PINE FINANCE LLC 4.84 05/25/2006 168,138
127,422 WHITE PINE FINANCE LLC 4.93 06/20/2006 126,080
1,094,573 WHITE PINE FINANCE LLC 4.93 06/22/2006 1,082,751
1,036,959 WHITE PINE FINANCE LLC+/- 4.70 07/17/2006 1,036,959
995,481 WHITE PINE FINANCE LLC SERIES MTN1+/- 4.81 06/12/2006 995,570
103,050,865
---------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $103,113,468) 103,113,468
---------------
SHARES
WARRANTS - 0.00%
36,152 TIMCO AVIATION SERVICES INCORPORATED+(A) 5
TOTAL WARRANTS (COST $0) 5
---------------
190
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
SHORT-TERM INVESTMENTS - 3.71%
38,116,747 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~@ $ 38,116,747
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $38,116,747) 38,116,747
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $961,511,654)* 111.39% $ 1,144,534,083
OTHER ASSETS AND LIABILITIES, NET (11.39) (117,006,457)
------ ---------------
TOTAL NET ASSETS 100.00% $ 1,027,527,626
====== ===============
+ NON-INCOME EARNING SECURITIES.
<< ALL OR A PORTION OF THIS SECURITY IS ON LOAN. (SEE NOTE 2)
+/- VARIABLE RATE INVESTMENTS.
++ SECURITIES THAT MAY BE RESOLD TO "QUALIFIED INSTITUTIONAL BUYERS" UNDER
RULE 144A OR SECURITIES OFFERED PURSUANT TO SECTION 4 (2) OF THE
SECURITIES ACT OF 1933, AS AMENDED.
(a) SECURITY FAIR VALUED IN ACCORDANCE WITH THE PROCEDURES APPROVED BY THE
BOARD OF TRUSTEES.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
@ SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $38,116,747.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
191
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 95.89%
APPAREL & ACCESSORY STORES - 4.00%
254,930 AEROPOSTALE INCORPORATED+ $ 7,688,689
209,200 CACHE INCORPORATED+ 3,836,728
242,390 DSW INCORPORATED+<< 7,591,655
400,510 HOT TOPIC INCORPORATED+ 5,807,395
24,924,467
---------------
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS - 0.93%
172,170 MARINEMAX INCORPORATED+<< 5,771,138
---------------
AUTOMOTIVE REPAIR, SERVICES & PARKING - 1.12%
154,046 DOLLAR THRIFTY AUTOMOTIVE GROUP INCORPORATED+ 6,993,688
---------------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS - 2.29%
277,760 PERINI CORPORATION+<< 8,435,571
210,150 WCI COMMUNITIES INCORPORATED+<< 5,846,373
14,281,944
---------------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS - 0.62%
168,990 BUILDERS FIRSTSOURCE INCORPORATED+ 3,837,763
---------------
BUSINESS SERVICES - 6.65%
182,270 ASSET ACCEPTANCE CAPITAL CORPORATION+ 3,548,797
283,320 AVOCENT CORPORATION+ 8,992,577
365,090 BISYS GROUP INCORPORATED+ 4,921,413
286,990 NCO GROUP INCORPORATED+ 6,816,013
302,580 RENT-A-CENTER INCORPORATED+ 7,743,022
261,540 SYNNEX CORPORATION+ 4,854,182
191,000 TAL INTERNATIONAL GROUP INCORPORATED+<< 4,605,010
41,481,014
---------------
CHEMICALS & ALLIED PRODUCTS - 5.22%
457,220 CF INDUSTRIES HOLDINGS INCORPORATED<< 7,768,168
128,510 CYTEC INDUSTRIES INCORPORATED 7,711,885
95,410 DIAGNOSTIC PRODUCTS CORPORATION 4,544,378
234,880 FIRST HORIZON PHARMACEUTICAL CORPORATION+<< 5,921,325
541,380 PRESTIGE BRANDS HOLDINGS INCORPORATED+ 6,588,595
32,534,351
---------------
COMMUNICATIONS - 3.33%
1,505,380 CINCINNATI BELL INCORPORATED+<< 6,804,318
332,290 IOWA TELECOMMUNICATIONS SERVICES INCORPORATED 6,340,093
580,200 VALOR COMMUNICATIONS GROUP INCORPORATED 7,635,432
20,779,843
---------------
DEPOSITORY INSTITUTIONS - 11.23%
512,120 BANKATLANTIC BANCORP INCORPORATED CLASS A 7,369,407
347,590 COMMERCIAL CAPITAL BANCORPORATION INCORPORATED 4,887,115
129,480 CULLEN FROST BANKERS INCORPORATED 6,959,550
192
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
DEPOSITORY INSTITUTIONS (CONTINUED)
328,050 DIME COMMUNITY BANCSHARES $ 4,714,079
130,110 FIRST REPUBLIC BANK 4,920,760
303,940 FRANKLIN BANK CORPORATION+ 5,844,766
145,460 INVESTORS FINANCIAL SERVICES CORPORATION<< 6,817,710
162,740 PFF BANCORP INCORPORATED 5,485,966
351,630 PROVIDENT FINANCIAL SERVICES INCORPORATED 6,364,503
213,560 SOUTH FINANCIAL GROUP INCORPORATED 5,584,594
236,800 SUSQUEHANNA BANCSHARES INCORPORATED 6,102,336
173,680 UMPQUA HOLDINGS CORPORATION 4,949,880
70,000,666
---------------
EATING & DRINKING PLACES - 3.22%
720,410 CKE RESTAURANTS INCORPORATED<< 12,535,134
213,800 LANDRY'S RESTAURANTS INCORPORATED<< 7,553,554
20,088,688
---------------
ELECTRIC, GAS & SANITARY SERVICES - 0.73%
205,000 CLECO CORPORATION 4,577,651
4,577,651
---------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 7.80%
432,100 AMIS HOLDINGS INCORPORATED+ 3,914,826
314,600 FAIRCHILD SEMICONDUCTOR INTERNATIONAL INCORPORATED+<< 5,999,422
723,590 GRAFTECH INTERNATIONAL LIMITED+ 4,413,899
439,030 GSI LUMONICS INCORPORATED+ 4,851,282
271,770 HUTCHINSON TECHNOLOGY INCORPORATED+<< 8,199,301
360,850 MERCURY COMPUTER SYSTEMS INCORPORATED+ 5,845,770
345,600 PHOTRONICS INCORPORATED+ 6,483,456
183,910 PORTALPLAYER INCORPORATED+<< 4,088,319
232,500 WESTAR ENERGY INCORPORATED 4,838,325
48,634,600
---------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES - 0.42%
136,640 LECG CORPORATION+ 2,633,053
---------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT - 0.91%
574,990 JACUZZI BRANDS INCORPORATED+ 5,652,152
---------------
FOOD & KINDRED PRODUCTS - 1.54%
582,470 HERCULES INCORPORATED+ 8,038,086
87,720 PREMIUM STANDARD FARMS INCORPORATED 1,539,486
9,577,572
---------------
FURNITURE & FIXTURES - 0.92%
233,600 FURNITURE BRANDS INTERNATIONAL INCORPORATED<< 5,725,536
---------------
193
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
HEALTH SERVICES - 2.80%
174,780 APRIA HEALTHCARE GROUP INCORPORATED+ $ 4,016,444
125,160 GENESIS HEALTHCARE CORPORATION+ 5,499,530
196,650 MAGELLAN HEALTH SERVICES INCORPORATED+ 7,958,426
17,474,400
---------------
HOLDING & OTHER INVESTMENT OFFICES - 7.74%
251,870 AMERICAN CAMPUS COMMUNITIES 6,525,952
271,460 BIOMED REALTY TRUST INCORPORATED 8,046,074
236,690 EQUITY ONE INCORPORATED 5,813,106
347,690 FELCOR LODGING TRUST INCORPORATED<< 7,336,259
363,730 STRATEGIC HOTELS & RESORTS INCORPORATED 8,467,635
236,160 SUNSTONE HOTEL INVESTORS INCORPORATED 6,841,555
259,820 U-STORE-IT TRUST 5,235,373
48,265,954
---------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 0.87%
315,690 COST PLUS INCORPORATED+<< 5,398,299
---------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 0.95%
130,820 GAYLORD ENTERTAINMENT COMPANY+<< 5,936,612
---------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 5.48%
340,700 AGCO CORPORATION+<< 7,066,118
620,430 DOT HILL SYSTEMS CORPORATION+ 4,405,053
479,060 EMULEX CORPORATION+ 8,187,136
313,852 SPARTECH CORPORATION 7,532,448
215,390 TIMKEN COMPANY 6,950,635
34,141,390
---------------
INSURANCE CARRIERS - 5.73%
391,950 AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY<< 5,620,563
155,560 ARGONAUT GROUP INCORPORATED+ 5,530,158
178,650 ASSURED GUARANTY LIMITED 4,466,250
117,340 INFINITY PROPERTY & CASUALTY CORPORATION 4,897,771
161,600 MOLINA HEALTHCARE INCORPORATED+ 5,408,752
182,630 PLATINUM UNDERWRITERS HOLDINGS LIMITED<< 5,314,533
292,090 UNIVERSAL AMERICAN FINANCIAL CORPORATION+ 4,498,186
35,736,213
---------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 1.56%
167,200 ARMOR HOLDINGS INCORPORATED+ 9,746,088
---------------
MISCELLANEOUS RETAIL - 0.77%
222,200 SPECTRUM BRANDS INCORPORATED+<< 4,826,184
---------------
OIL & GAS - 0.67%
324,220 COMPTON PETROLEUM CORPORATION+<< 4,162,985
---------------
194
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
OIL & GAS EXTRACTION - 1.86%
277,480 BRIGHAM EXPLORATION COMPANY+ $ 2,430,725
402,970 KEY ENERGY SERVICES INCORPORATED+ 6,145,292
52,610 OCEANEERING INTERNATIONAL INCORPORATED+ 3,014,553
11,590,570
---------------
PAPER & ALLIED PRODUCTS - 0.33%
218,450 XERIUM TECHNOLOGIES INCORPORATED 2,051,245
---------------
PRIMARY METAL INDUSTRIES - 1.32%
270,840 GENERAL CABLE CORPORATION+ 8,214,577
---------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 0.76%
380,230 JOURNAL COMMUNICATIONS INCORPORATED CLASS A 4,714,852
---------------
REAL ESTATE INVESTMENT TRUSTS (REITS) - 1.67%
222,350 COLUMBIA EQUITY TRUST INCORPORATED 3,908,913
148,200 PENNSYLVANIA REAL ESTATE INVESTMENT TRUST 6,520,800
10,429,713
---------------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS - 0.88%
280,550 APPLIED FILMS CORPORATION+ 5,451,086
---------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 1.04%
175,230 CABOT MICROELECTRONICS CORPORATION+<< 6,501,033
---------------
TRANSPORTATION EQUIPMENT - 5.61%
319,280 AFTERMARKET TECHNOLOGY CORPORATION+ 7,218,921
171,820 AMERICAN AXLE AND MANAUFACTURING HOLDINGS<< 2,943,277
388,390 ARVIN INDUSTRIES INCORPORATED<< 5,790,895
449,150 FLEETWOOD ENTERPRISES INCORPORATED+<< 5,017,005
380,960 ORBITAL SCIENCES CORPORATION+<< 6,026,787
368,930 TENNECO AUTOMOTIVE INCORPORATED+ 8,002,092
34,998,977
---------------
TRANSPORTATION SERVICES - 1.02%
153,970 GATX CORPORATION 6,357,422
---------------
WHOLESALE TRADE NON-DURABLE GOODS - 1.29%
258,010 PERFORMANCE FOOD GROUP COMPANY+<< 8,047,332
---------------
WHOLESALE TRADE DURABLE GOODS - 2.61%
269,030 ADESA INCORPORATED 7,193,862
228,870 INTERLINE BRANDS INCORPORATED+ 5,774,390
221,880 WEST MARINE INCORPORATED+<< 3,330,419
16,298,671
---------------
TOTAL COMMON STOCKS (COST $508,444,752) 597,837,729
---------------
195
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COLLATERAL FOR SECURITIES LENDING - 20.42%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.01%
43,973 SCUDDER DAILY ASSETS MONEY MARKET FUND $ 43,973
33,320 SHORT TERM INVESTMENT COMPANY MONEY MARKET FUND 33,320
77,293
---------------
PRINCIPAL INTEREST RATE MATURITY DATE
COLLATERAL INVESTED IN OTHER ASSETS - 20.41%
$ 460,903 AMERICAN GENERAL FINANCE CORPORATION+/- 4.78% 04/13/2007 461,092
191,889 APRECO LLC 4.62 05/15/2006 190,817
419,985 APRECO LLC 4.94 06/15/2006 415,848
256,057 ASPEN FUNDING CORPORATION 4.92 04/03/2006 256,057
2,560,573 ATLAS CAPITAL FUNDING CORPORATION SERIES MTN+/- 4.62 11/03/2006 2,560,573
288,269 ATLAS CAPITAL FUNDING LIMITED 4.80 04/17/2006 287,736
614,538 ATLAS CAPITAL FUNDING LIMITED 4.62 05/15/2006 611,102
1,280,287 ATLAS CAPITAL FUNDING LIMITED+/- 4.80 10/20/2006 1,280,287
1,280,287 ATLAS CAPITAL FUNDING LIMITED+/- 4.80 12/22/2006 1,280,287
204,846 ATOMIUM FUNDING CORPORATION 4.53 04/12/2006 204,602
177,653 BETA FINANCE INCORPORATED SERIES MTN+/- 4.88 06/02/2006 177,676
25,503,311 BNP PARIBAS REPURCHASE AGREEMENT
(MATURITY VALUE $25,513,789) 4.93 04/03/2006 25,503,311
760,183 BUCKINGHAM CDO LLC++ 4.60 04/06/2006 759,879
2,492,257 BUCKINGHAM CDO LLC 4.82 04/21/2006 2,486,326
1,280,287 BUCKINGHAM CDO LLC 4.82 04/25/2006 1,276,561
1,331,498 BUCKINGHAM II CDO LLC++ 4.83 04/25/2006 1,327,624
5,121,147 BUCKINGHAM II CDO LLC 4.83 04/26/2006 5,105,578
1,536,344 CAIRN HIGH GRADE FUNDING I 4.59 04/06/2006 1,535,729
122,908 CAIRN HIGH GRADE FUNDING I 4.71 04/26/2006 122,534
2,150,882 CAIRN HIGH GRADE FUNDING I 4.83 04/27/2006 2,144,063
1,280,287 CAIRN HIGH GRADE FUNDING I++ 4.83 05/02/2006 1,275,383
665,749 CAIRN HIGH GRADE FUNDING I 4.77 05/10/2006 662,474
2,575,169 CEDAR SPRINGS CAPITAL COMPANY LLC 4.78 04/05/2006 2,574,499
706,718 CEDAR SPRINGS CAPITAL COMPANY LLC 4.69 05/08/2006 703,425
227,737 CEDAR SPRINGS CAPITAL COMPANY LLC 4.70 05/10/2006 226,617
1,024,229 CEDAR SPRINGS CAPITAL COMPANY LLC 4.72 05/12/2006 1,018,914
512,115 CEDAR SPRINGS CAPITAL COMPANY LLC 4.90 06/07/2006 507,623
1,362,993 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.92 06/12/2006 1,350,113
2,816,631 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.72 04/12/2006 2,816,631
512,115 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.75 04/18/2007 512,115
1,802,644 CONSOLIDATED EDISON INCORPORATED 4.90 04/03/2006 1,802,644
128,029 CORPORATE ASSET SECURITIZATION AUSTRALIA LIMITED 4.81 04/13/2006 127,860
1,587,555 CREDIT SUISSE FIRST BOSTON NEW YORK SERIES YCD1+/- 4.92 05/04/2006 1,586,762
1,280,287 CULLINAN FINANCE CORPORATION+/- 4.71 11/15/2006 1,280,235
1,024,229 DEER VALLEY FUNDING LLC++ 4.51 04/10/2006 1,023,277
1,308,709 DEER VALLEY FUNDING LLC 4.81 04/17/2006 1,306,288
3,120,161 DEER VALLEY FUNDING LLC 4.83 04/19/2006 3,113,546
665,749 DEER VALLEY FUNDING LLC 4.80 05/03/2006 663,106
196
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 2,560,573 DEUTSCHE BANK REPURCHASE AGREEMENT
(MATURITY VALUE $2,561,606) 4.84% 04/03/2006 $ 2,560,573
2,452,466 EIFFEL FUNDING LLC 4.91 04/03/2006 2,452,466
153,634 EIFFEL FUNDING LLC 4.78 04/17/2006 153,350
1,844,688 EUREKA SECURITIZATION INCORPORATED 4.88 05/16/2006 1,834,137
42,198 GALLEON CAPITAL LLC 4.65 04/03/2006 42,198
76,817 GEMINI SECURITIZATION INCORPORATED 4.90 05/24/2006 76,294
1,229,075 GOLDMAN SACHS GROUP INCORPORATED+/- 4.97 06/30/2006 1,229,075
3,669,302 HARRIER FINANCE FUNDING LLC 4.62 04/03/2006 3,669,302
819,383 ING USA ANNUITY & LIFE INSURANCE+/- 5.03 06/06/2006 819,383
10,283,762 JP MORGAN CHASE SECURITIES CORPORATION REPURCHASE AGREEMENT
(MATURITY VALUE $10,287,987) 4.93 04/03/2006 10,283,762
66,575 K2 (USA) LLC 4.63 05/02/2006 66,320
236,853 K2 (USA) LLC SERIES MTN+/- 4.87 07/24/2006 236,912
768,172 KAUPTHING BANK HF SERIES MTN+/-++ 4.84 03/20/2007 768,018
102,423 KLIO II FUNDING CORPORATION 4.58 04/05/2006 102,396
123,420 KLIO III FUNDING CORPORATION 4.69 04/19/2006 123,158
51,211 LEXINGTON PARKER CAPITAL CORPORATION 4.62 05/02/2006 51,015
194,399 LEXINGTON PARKER CAPITAL CORPORATION 4.69 05/10/2006 193,442
1,280,287 LIBERTY LIGHT US CAPITAL SERIES MTN+/- 4.81 05/26/2006 1,280,364
102,423 LINKS FINANCE LLC SERIES MTN1+/- 4.68 09/12/2006 102,424
307,269 LIQUID FUNDING LIMITED+/- 4.94 04/24/2006 307,281
1,177,864 LIQUID FUNDING LIMITED+/- 4.71 08/14/2006 1,177,864
768,172 LIQUID FUNDING LIMITED+/- 4.61 12/01/2006 768,172
307,269 LIQUID FUNDING LIMITED SERIES MTN+/- 4.83 02/20/2007 307,253
512,115 MBIA GLOBAL FUNDING LLC+/- 4.78 02/20/2007 512,084
2,573,376 MERRILL LYNCH & COMPANY SERIES MTN+/- 4.80 10/27/2006 2,575,306
1,536,344 MORGAN STANLEY+/- 4.94 10/10/2006 1,536,344
236,853 MORGAN STANLEY SERIES EXL+/- 4.78 08/13/2010 236,917
881,810 MORTGAGE INTEREST NET TRUST 4.68 04/03/2006 881,810
1,157,379 MORTGAGE INTEREST NET TRUST 4.78 05/03/2006 1,152,784
51,211 NATIONWIDE BUILDING SOC+/- 4.74 07/21/2006 51,236
1,129,367 NEWPORT FUNDING CORPORATION 4.92 04/03/2006 1,129,367
1,550,632 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 4.78 04/03/2006 1,550,632
1,792,401 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.68 04/04/2006 1,792,168
228,301 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.93 06/26/2006 225,712
97,302 NORDEA NORTH AMERICA INCORPORATED 4.89 05/15/2006 96,758
2,701,405 NORTHERN ROCK PLC+/- 4.63 04/21/2006 2,701,027
202,439 NORTHERN ROCK PLC 4.69 04/24/2006 201,876
2,560,573 NORTHERN ROCK PLC+/- 4.66 02/05/2007 2,560,599
207,150 RACERS TRUST 2004-6-MM+/- 4.79 05/22/2006 207,179
51,211 SCALDIS CAPITAL LIMITED 4.93 06/15/2006 50,707
204,846 TANGO FINANCE CORPORATION 4.95 06/21/2006 202,662
592,158 TANGO FINANCE CORPORATION SERIES MTN+/- 4.87 10/25/2006 592,354
296,053 TRAVELERS INSURANCE COMPANY+/- 4.77 02/09/2007 296,048
1,280,287 UNICREDITO ITALIANO SERIES LIB+/- 4.70 03/09/2007 1,280,210
1,280,287 UNICREDITO ITALIANO SERIES YCD+/- 4.47 04/03/2006 1,280,287
197
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 1,946,036 US BANK NA SERIES BKNT 4.66% 07/28/2006 $ 1,946,094
512,115 WHISTLEJACKET CAPITAL LIMITED+/- 4.65 06/09/2006 512,115
51,211 WHITE PINE FINANCE LLC 4.64 04/18/2006 51,110
256,057 WHITE PINE FINANCE LLC 4.82 05/05/2006 254,967
209,045 WHITE PINE FINANCE LLC 4.84 05/25/2006 207,592
157,322 WHITE PINE FINANCE LLC 4.93 06/20/2006 155,665
1,351,419 WHITE PINE FINANCE LLC 4.93 06/22/2006 1,336,824
1,280,287 WHITE PINE FINANCE LLC+/- 4.70 07/17/2006 1,280,287
1,229,075 WHITE PINE FINANCE LLC SERIES MTN1+/- 4.81 06/12/2006 1,229,186
127,232,260
---------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $127,309,553) 127,309,553
---------------
SHARES
SHORT-TERM INVESTMENTS - 2.87%
17,884,513 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~@ 17,884,513
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $17,884,513) 17,884,513
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $653,638,818)* 119.18% $ 743,031,795
OTHER ASSETS AND LIABILITIES, NET (19.18) (119,554,444)
------ ---------------
TOTAL NET ASSETS 100.00% $ 623,477,351
====== ===============
+ NON-INCOME EARNING SECURITIES.
<< ALL OR A PORTION OF THIS SECURITY IS ON LOAN. (SEE NOTE 2)
+/- VARIABLE RATE INVESTMENTS.
++ SECURITIES THAT MAY BE RESOLD TO "QUALIFIED INSTITUTIONAL BUYERS" UNDER
RULE 144A OR SECURITIES OFFERED PURSUANT TO SECTION 4 (2) OF THE
SECURITIES ACT OF 1933, AS AMENDED.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
@ SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $17,884,513.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
198
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
STRATEGIC SMALL CAP VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 96.94%
ADVERTISING - 0.88%
107,600 CENVEO INCORPORATED+ $ 1,784,008
---------------
AGRICULTURAL PRODUCTION CROPS - 1.78%
119,600 DELTA & PINE LAND COMPANY 3,607,136
---------------
AMUSEMENT & RECREATION SERVICES - 3.17%
334,900 LAKES ENTERTAINMENT INCORPORATED+ 3,643,712
251,600 WESTWOOD ONE INCORPORATED 2,777,664
6,421,376
---------------
APPAREL & ACCESSORY STORES - 1.30%
50,400 CHARLOTTE RUSSE HOLDING INCORPORATED+ 1,078,560
39,600 THE CATO CORPORATION CLASS A 944,856
90,800 WET SEAL INCORPORATED CLASS A+ 603,820
2,627,236
---------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS - 1.26%
58,900 CUTTER & BUCK INCORPORATED 708,567
52,100 GYMBOREE CORPORATION+ 1,356,684
35,200 MAIDENFORM BRANDS INCORPORATED+ 387,552
1,100 RUSSELL CORPORATION 15,180
5,000 TOMMY HILFIGER CORPORATION+ 82,350
2,550,333
---------------
AUTOMOTIVE REPAIR, SERVICES & PARKING - 0.35%
19,100 MONRO MUFFLER BRAKE INCORPORATED 709,374
---------------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS - 0.56%
17,500 LEVITT CORPORATION CLASS A 385,700
24,400 PERINI CORPORATION+ 741,028
1,126,728
---------------
BUSINESS SERVICES - 10.32%
116,800 ANSWERTHINK CONSULTING GROUP INCORPORATED+ 751,024
194,200 APAC TELESERVICES INCORPORATED+ 429,182
69,000 BISYS GROUP INCORPORATED+ 930,120
143,800 BORELAND SOFTWARE CORPORATION+ 776,520
42,800 BSQUARE CORPORATION+ 125,832
351,600 CIBER INCORPORATED+ 2,243,208
21,100 ELECTRO RENT CORPORATION+ 358,700
7,600 FIRSTSERVICE CORPORATION+ 186,884
60,200 GSE SYSTEMS INCORPORATED+ 105,350
60,700 HEALTHCARE SERVICES GROUP 1,296,552
71,900 HMS HOLDINGS CORPORATION+ 629,125
39,000 HUMMINGBIRD LIMITED+ 925,860
68,100 INDUS INTERNATIONAL INCORPORATED+ 247,884
64,800 JDA SOFTWARE GROUP INCORPORATED+ 935,712
90,000 KEANE INCORPORATED+ 1,417,500
199
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
STRATEGIC SMALL CAP VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
BUSINESS SERVICES (CONTINUED)
77,600 LIONBRIDGE TECHNOLOGIES INCORPORATED+ $ 613,816
289,400 MIDWAY GAMES INCORPORATED+ 2,668,268
47,100 MRO SOFTWARE INCORPORATED+ 751,716
35,200 MSC.SOFTWARE CORPORATION 702,240
97,400 OPEN TEXT CORPORATION+ 1,600,282
50,400 PLATO LEARNING INCORPORATED+ 478,296
200 S1 CORPORATION+ 1,008
30,200 SPSS INCORPORATED+ 956,132
87,200 SUPPORTSOFT INCORPORATED+ 386,296
62,100 TAKE-TWO INTERACTIVE SOFTWARE INCORPORATED+ 1,158,786
40,400 WATCHGUARD TECHNOLOGIES INCORPORATED+ 206,040
20,882,333
---------------
CHEMICALS & ALLIED PRODUCTS - 4.72%
111,600 CAMBREX CORPORATION 2,180,664
39,600 ELIZABETH ARDEN INCORPORATED+ 923,472
78,700 IMCLONE SYSTEMS INCORPORATED+ 2,677,374
125,000 LANDEC CORPORATION+ 997,500
25,300 SERACARE LIFE SCIENCES INCORPORATED+(A) 93,610
1,170,000 XOMA LIMITED+ 2,679,300
9,551,920
---------------
COMMUNICATIONS - 5.33%
212,500 CUMULUS MEDIA INCORPORATED CLASS A+ 2,392,750
16,000 ESCHELON TELECOM INCORPORATED+ 251,680
225,200 MASTEC INCORPORATED+ 3,191,084
102,700 PREMIERE GLOBAL SERVICES INCORPORATED+ 826,735
133,200 RADIO ONE INCORPORATED CLASS D+ 993,672
69,100 REGENT COMMUNICATIONS INCORPORATED+ 318,551
507,200 SPANISH BROADCASTING SYSTEM INCORPORATED+ 2,804,816
10,779,288
---------------
CONSTRUCTION SPECIAL TRADE CONTRACTORS - 0.39%
20,800 COMFORT SYSTEMS USA INCORPORATED 280,800
19,300 INSITUFORM TECHNOLOGIES INCORPORATED CLASS A+ 513,380
794,180
---------------
DEPOSITORY INSTITUTIONS - 0.65%
14,800 FIRST FINANCIAL BANCORP 246,272
14,300 MIDWEST BANC HOLDINGS INCORPORATED 370,942
24,400 PLACER SIERRA BANCSHARES 696,620
1,313,834
---------------
EATING & DRINKING PLACES - 0.26%
68,600 BUCA INCORPORATED+ 347,802
19,400 RUBIO'S RESTAURANTS INCORPORATED+ 183,912
531,714
---------------
200
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
STRATEGIC SMALL CAP VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
EDUCATIONAL SERVICES - 1.28%
151,600 CORINTHIAN COLLEGES INCORPORATED+ $ 2,183,040
32,800 LEARNING TREE INTERNATIONAL INCORPORATED+ 397,536
2,580,576
---------------
ELECTRIC, GAS & SANITARY SERVICES - 2.28%
216,500 CASELLA WASTE SYSTEMS INCORPORATED CLASS A+ 3,076,465
32,000 CLEAN HARBORS INCORPORATED+ 949,440
500 IDACORP INCORPORATED 16,260
113,200 PLUG POWER INCORPORATED+ 566,000
4,608,165
---------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 6.18%
78,200 ADAPTEC INCORPORATED+ 432,446
483,100 C-COR INCORPORATED+ 4,222,294
31,100 DIODES INCORPORATED+ 1,290,650
26,900 ESS TECHNOLOGY INCORPORATED+ 89,308
198,000 FUELCELL ENERGY INCORPORATED+ 2,271,060
25,200 INTER-TEL INCORPORATED 540,288
105,900 MAGNETEK INCORPORATED+ 420,423
85,500 MERCURY COMPUTER SYSTEMS INCORPORATED+ 1,385,100
18,700 METHODE ELECTRONICS INCORPORATED 203,643
105,100 PEMSTAR INCORPORATED+ 217,557
32,800 UNIVERSAL ELECTRS INCORPORATED+ 580,560
51,000 WOODHEAD INDUSTRIES INCORPORATED 846,600
12,499,929
---------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES - 0.70%
151,200 DIVERSA CORPORATION+ 1,377,432
3,100 TRIMERIS INCORPORATED+ 41,881
1,419,313
---------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT - 0.49%
38,600 MATERIAL SCIENCES CORPORATION+ 466,288
2,200 VALMONT INDUSTRIES INCORPORATED 92,488
15,600 WATER PIK TECHNOLOGIES INCORPORATED+ 432,276
991,052
---------------
FOOD & KINDRED PRODUCTS - 4.80%
267,000 DEL MONTE FOODS COMPANY 3,166,620
243,600 HERCULES INCORPORATED+ 3,361,680
108,459 TOOTSIE ROLL INDUSTRIES INCORPORATED 3,174,595
9,702,895
---------------
FOOD STORES - 0.72%
21,100 INGLES MARKETS INCORPORATED CLASS A 376,002
53,300 WILD OATS MARKETS INCORPORATED+ 1,083,589
1,459,591
---------------
201
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
STRATEGIC SMALL CAP VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
FURNITURE & FIXTURES - 0.14%
19,300 KIMBALL INTERNATIONAL INCORPORATED CLASS B $ 290,272
---------------
GENERAL MERCHANDISE STORES - 0.58%
55,500 GANDER MOUNTAIN COMPANY+ 522,810
44,600 RETAIL VENTURES INCORPORATED+ 653,836
1,176,646
---------------
HEALTH SERVICES - 2.91%
24,500 AMERICA SERVICE GROUP INCORPORATED+ 319,235
62,700 CARDIAC SCIENCE CORPORATION+ 572,451
57,300 FIVE STAR QUALITY CARE INCORPORATED+ 623,997
910,300 HOOPER HOLMES INCORPORATED 2,630,767
900 MATRIA HEALTHCARE INCORPORATED+ 34,164
15,900 NAUTILUS GROUP INCORPORATED 237,705
42,000 OPTION CARE INCORPORATED 593,880
26,100 REHABCARE GROUP INCORPORATED+ 491,985
77,100 TRANSWORLD HEALTHCARE INCORPORATED+ 373,935
5,878,119
---------------
HEAVY CONSTRUCTION OTHER THAN BUILDING CONSTRUCTION CONTRACTS - 0.08%
3,500 FOSTER WHEELER LIMITED+ 165,585
---------------
HOLDING & OTHER INVESTMENT OFFICES - 4.05%
117,000 AAMES INVESTMENT CORPORATION 664,560
19,300 AGREE REALTY CORPORATION 619,530
109,000 ANTHRACITE CAPITAL INCORPORATED 1,196,820
115,000 ANWORTH MORTGAGE ASSET CORPORATION 903,900
42,500 FELDMAN MALL PROPERTIES INCORPORATED 520,625
95,000 HIGHLAND HOSPITALITY CORPORATION 1,207,450
58,100 JER INVESTORS TRUST INCORPORATED 965,622
48,000 LUMINENT MORTGAGE CAPITAL INCORPORATED 389,280
44,600 MEDICAL PROPERTIES TRUST INCORPORATED 481,680
109,800 WINSTON HOTELS INCORPORATED 1,248,426
8,197,893
---------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 0.60%
118,200 BELL MICROPRODUCTS INCORPORATED+ 728,112
146,100 THE BOMBAY COMPANY INCORPORATED+ 482,130
1,210,242
---------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 0.46%
17,200 MTR GAMING GROUP INCORPORATED+ 177,160
56,300 RED LION HOTELS CORPORATION+ 748,790
925,950
---------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 4.61%
68,900 DOT HILL SYSTEMS CORPORATION+ 489,190
14,000 FARGO ELECTRONICS+ 236,740
32,800 FLANDER CORPORATION+ 383,104
202
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
STRATEGIC SMALL CAP VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (CONTINUED)
346,600 INFOCUS CORPORATION+ $ 1,646,350
28,600 KADANT INCORPORATED+ 649,220
83,200 NN INCORPORATED 1,074,112
200 PLANAR SYSTEMS INCORPORATED+ 3,384
79,000 QUALSTAR CORPORATION+ 319,950
9,100 ROBBINS & MYERS INCORPORATED 196,560
308,300 SILICON GRAPHICS INCORPORATED+ 134,727
200 TENNANT COMPANY 10,464
171,000 ULTRATECH INCORPORATED+ 4,186,080
9,329,881
---------------
INSURANCE AGENTS, BROKERS & SERVICE - 0.35%
122,200 CRAWFORD & COMPANY CLASS A (NON-VOTING) 709,982
---------------
INSURANCE CARRIERS - 7.76%
36,000 AFFIRMATIVE INSURANCE HOLDINGS INCORPORATED 475,560
60,100 AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY 861,834
43,200 AMERISAFE INCOPORATED+ 518,400
42,800 CRM HOLDINGS LIMITED+ 490,060
6,000 DELPHI FINANCIAL GROUP INCORPORATED CLASS A 309,780
137,100 DERES GROUP INCORPORATED 756,792
51,000 DONEGAL GROUP INCORPORATED CLASS A 1,330,590
21,100 EMC INSURANCE GROUP INCORPORATED 588,057
127,000 FREMONT GENERAL CORPORATION 2,738,120
60,000 KMG AMERICA CORPORATION+ 513,600
80,700 MEADOWBROOK INSURANCE GROUP INCORPORATED+ 564,900
13,000 OHIO CASUALTY CORPORATION 412,100
53,800 PMA CAPITAL CORPORATION CLASS A+ 547,684
73,200 PROCENTURY CORPORATION 998,448
46,200 QUANTA CAPITAL HOLDINGS LIMITED+ 138,600
144,400 SCOTTISH RE GROUP LIMITED 3,582,564
30,800 SEABRIGHT INSURANCE HOLDINGS INCORPORATED+ 536,536
50,400 SPECIALTY UNDERWRITERS' ALLIANCE INCORPORATED+ 342,720
15,706,345
---------------
LEATHER & LEATHER PRODUCTS - 0.89%
25,600 SHOE CARNIVAL INCORPORATED+ 639,488
32,700 STEVEN MADDEN LIMITED+ 1,160,850
1,800,338
---------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 4.56%
3,300 CNS INCORPORATED 71,082
1,500 CONMED CORPORATION+ 28,725
78,200 DEL GLOBAL TECHNOLOGIES CORPORATION+ 309,672
74,000 HEALTHTRONICS INCORPORATED+ 611,980
37,900 HERLEY INDUSTRIES INCORPORATED+ 791,352
102,700 INPUT OUTPUT INCORPORATED+ 997,217
36,900 LUMENIS LIMITED+ 70,110
203
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
STRATEGIC SMALL CAP VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS (CONTINUED)
77,400 NORTH AMERICAN SCIENTIFIC INCORPORATED+ $ 181,890
171,000 ORTHOLOGIC CORPORATION+ 376,200
58,500 VITAL SIGNS INCORPORATED 3,213,405
351,100 VIVUS INCORPORATED+ 1,169,163
53,300 ZOLL MEDICAL CORPORATION+ 1,403,922
9,224,718
---------------
MEMBERSHIP ORGANIZATIONS - 0.88%
44,000 AMCOMP INCORPORATED+ 421,960
34,500 EDAP TMS SA ADR+ 614,790
19,200 LSI INDUSTRIES, INC. 327,168
18,100 RIMAGE CORP+ 408,698
1,772,616
---------------
METAL MINING - 0.01%
200 GLAMIS GOLD LIMITED 6,536
200 GOLD FIELDS LIMITED ADR 4,396
200 GOLDCORP INCORPORATED 5,850
16,782
---------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 0.31%
21,200 LYDALL INCORPORATED+ 204,580
27,400 RUSS BERRIE & COMPANY INCORPORATED 416,480
621,060
---------------
MISCELLANEOUS RETAIL - 1.75%
49,200 AC MOORE ARTS & CRAFTS INCORPORATED+ 905,280
58,100 FINLAY ENTERPRISES INCORPORATED+ 596,106
44,200 J JILL GROUP INCORPORATED+ 1,056,822
64,700 PC MALL INCORPORATED+ 412,786
44,600 SHARPER IMAGE CORPORATION+ 571,326
3,542,320
---------------
MOTION PICTURES - 0.78%
73,500 NEW FRONTIER MEDIA INCORPORATED+ 557,865
137,400 WPT ENTERPRISES INCORPORATED+ 1,011,264
1,569,129
---------------
NON-DEPOSITORY CREDIT INSTITUTIONS - 0.81%
14,300 ASTA FUNDING INCORPORATED 475,618
83,200 MCG CAPITAL CORPORATION 1,173,952
1,649,570
---------------
OIL & GAS EXTRACTION - 3.05%
5,500 ATWOOD OCEANICS INCORPORATED+ 555,555
47,600 BRIGHAM EXPLORATION COMPANY+ 416,976
23,100 CARRIZO OIL AND GAS INCORPORATED+ 600,369
24,400 COMSTOCK RESOURCES INCORPORATED+ 724,436
204
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
STRATEGIC SMALL CAP VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
OIL & GAS EXTRACTION (CONTINUED)
142,100 HANOVER COMPRESSOR COMPANY+ $ 2,645,902
62,200 NEWPARK RESOURCES INCORPORATED+ 510,040
26,100 WARREN RESOURCES INCORPORATED+ 388,890
16,300 WILLBROS GROUP INCORPORATED+ 331,542
6,173,710
---------------
PAPER & ALLIED PRODUCTS - 0.97%
157,200 BUCKEYE TECHNOLOGIES INCORPORATED+ 1,422,660
38,500 CHESAPEAKE CORPORATION 534,380
1,957,040
---------------
PETROLEUM REFINING & RELATED INDUSTRIES - 0.35%
22,700 WD-40 COMPANY 700,295
---------------
PRIMARY METAL INDUSTRIES - 1.99%
52,100 BRUSH ENGINEERED MATERIALS INCORPORATED+ 1,028,975
38,000 NORTHWEST PIPE COMPANY+ 1,153,300
10,100 NOVAMERICAN STEEL INCORPORATED+ 464,095
21,100 NS GROUP INCORPORATED+ 971,233
25,300 TREDEGAR CORPORATION 402,523
4,020,126
---------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 1.70%
36,400 ENNIS INCORPORATED 709,800
200 PLAYBOY ENTERPRISES INCORPORATED CLASS B (NON-VOTING)+ 2,840
184,500 READER'S DIGEST ASSOCIATION INCORPORATED 2,721,375
3,434,015
---------------
REAL ESTATE - 0.27%
40,100 THOMAS PROPERTIES GROUP INCORPORATED 545,761
---------------
REAL ESTATE INVESTMENT TRUST (REIT) - 0.31%
29,800 LEXINGTON CORPORATE PROPERTIES TRUST 621,330
---------------
RETAIL, TRADE & SERVICES - 0.39%
55,100 STRIDE RITE CORPORATION 797,848
---------------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS - 0.23%
23,500 APPLIED FILMS CORPORATION+ 456,605
---------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 1.55%
84,300 CABOT MICROELECTRONICS CORPORATION+ 3,127,530
---------------
TEXTILE MILL PRODUCTS - 0.05%
71,400 QUAKER FABRIC CORPORATION 96,390
---------------
TRANSPORTATION EQUIPMENT - 2.58%
28,600 AFTERMARKET TECHNOLOGY CORPORATION+ 646,646
23,000 ARCTIC CAT INCORPORATED 553,380
110,800 EXIDE TECHNOLOGIES+ 316,888
162,100 LEAR CORPORATION 2,874,033
205
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
STRATEGIC SMALL CAP VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
TRANSPORTATION EQUIPMENT (CONTINUED)
19,300 MONACO COACH CORPORATION $ 258,620
28,700 WABASH NATIONAL CORPORATION 566,825
5,216,392
---------------
WHOLESALE TRADE NON-DURABLE GOODS - 1.14%
68,100 BIOSCRIP INCORPORATED+ 491,001
22,200 SCHOOL SPECIALTY INCORPORATED+ 765,900
92,500 SOURCE INTERLINK COMPANIES INCORPORATED+ 1,054,500
2,311,401
---------------
WHOLESALE TRADE DURABLE GOODS - 3.41%
42,800 INTERLINE BRANDS INCORPORATED+ 1,079,844
44,600 KAMAN CORPORATION CLASS A 1,122,136
47,100 KEYSTONE AUTOMOTIVE INDUSTRIES INCORPORATED+ 1,988,091
47,900 LENOX GROUP INCORPORATED+ 627,490
54,200 LKQ CORPORATION+ 1,127,902
82,400 MICROTECK MEDICAL HOLDING INCORPORATED+ 290,048
56,200 NAVARRE CORPORATION+ 241,098
51,400 POMEROY IT SOLUTIONS INCORPORATED+ 429,704
6,906,313
---------------
TOTAL COMMON STOCKS (COST $187,895,448) 196,093,185
---------------
PRINCIPAL INTEREST RATE MATURITY DATE
CORPORATE BONDS & NOTES - 0.06%
ELECTRONICS & OTHER ELECTRICAL EQUIPMENT & COMPONENTS,
EXCEPT COMPUTER EQUIPMENT - 0.06%
$ 140,000 SILICON GRAPHICS 6.50% 06/01/2009 110,950
TOTAL CORPORATE BONDS & NOTES (COST $103,817) 110,950
---------------
SHARES
SHORT-TERM INVESTMENTS - 3.27%
6,620,137 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~++ 6,620,137
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $6,620,137) 6,620,137
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $194,619,402)* 100.27% $ 202,824,272
OTHER ASSETS AND LIABILITIES, NET (0.27) (547,199)
------ ---------------
TOTAL NET ASSETS 100.00% $ 202,277,073
====== ===============
+ NON-INCOME EARNING SECURITIES.
(A) SECURITY FAIR VALUED IN ACCORDANCE WITH THE PROCEDURES APPROVED BY THE
BOARD OF TRUSTEES.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
++ SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $6,620,137.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
206
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
STATEMENT OF ASSETS AND LIABILITIES -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
C&B LARGE DISCIPLINED EQUITY
CAP VALUE GROWTH INCOME
PORTFOLIO PORTFOLIO PORTFOLIO
- ------------------------------------------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE .............................. $ 770,404,417 $ 185,864,957 $1,056,842,643
COLLATERAL FOR SECURITIES LOANED (NOTE 2) ................... 90,792,757 18,238,227 99,934,006
INVESTMENTS IN AFFILIATES ................................... 39,523,765 10,630,161 7,179,031
-------------- -------------- --------------
TOTAL INVESTMENTS AT MARKET VALUE (SEE COST BELOW) ........... 900,720,939 214,733,345 1,163,955,680
-------------- -------------- --------------
FOREIGN CURRENCY, AT VALUE .................................. 0 0 0
VARIATION MARGIN RECEIVABLE ON FUTURES CONTRACTS ............ 0 0 0
RECEIVABLE FOR INVESTMENTS SOLD ............................. 0 0 0
RECEIVABLES FOR DIVIDENDS AND INTEREST ...................... 1,475,505 65,661 1,415,335
UNREALIZED APPRECIATION ON FORWARD FOREIGN CURRENCY CONTRACTS 0 0 0
-------------- -------------- --------------
TOTAL ASSETS .................................................. 902,196,444 214,799,006 1,165,371,015
-------------- -------------- --------------
LIABILITIES
PAYABLE FOR DAILY VARIATION MARGIN ON FUTURES CONTRACTS ..... 0 0 0
FOREIGN TAXES PAYABLE ....................................... 390 0 41,173
PAYABLE FOR INVESTMENTS PURCHASED ........................... 0 7,692,668 0
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) ....... 460,019 121,851 665,188
PAYABLE TO THE TRUSTEES AND SHAREHOLDER SERVICING AGENT ..... 3,846 3,482 3,385
UNREALIZED DEPRECIATION ON FORWARD FOREIGN CURRENCY CONTRACTS 0 0 0
PAYABLE FOR SECURITIES LOANED (NOTE 2) ...................... 90,792,757 18,238,227 99,934,006
ACCRUED EXPENSES AND OTHER LIABILITIES ...................... 50,367 30,633 84,219
-------------- -------------- --------------
TOTAL LIABILITIES ............................................. 91,307,379 26,086,861 100,727,971
-------------- -------------- --------------
TOTAL NET ASSETS .............................................. $ 810,889,065 $ 188,712,145 $1,064,643,044
============== ============== ==============
INVESTMENTS AT COST ........................................... $ 865,186,392 $ 179,270,825 $ 928,734,288
============== ============== ==============
FOREIGN CURRENCIES AT COST .................................... $ 0 $ 0 $ 0
============== ============== ==============
SECURITIES ON LOAN, AT MARKET VALUE ........................... $ 87,215,665 $ 17,458,150 $ 96,135,999
============== ============== ==============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
208
STATEMENT OF ASSETS AND LIABILITIES -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
EQUITY INTERNATIONAL INTERNATIONAL
VALUE INDEX CORE GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- -----------------------------------------------------------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE .............................. $ 456,861,732 $2,306,760,452 $ 159,971,872 $ 273,761,816
COLLATERAL FOR SECURITIES LOANED (NOTE 2) ................... 75,391,631 248,678,665 3,191,264 6,879,725
INVESTMENTS IN AFFILIATES ................................... 7,042,763 42,052,726 4,179,151 6,315,090
-------------- -------------- -------------- --------------
TOTAL INVESTMENTS AT MARKET VALUE (SEE COST BELOW) ........... 539,296,126 2,597,491,843 167,342,287 286,956,631
-------------- -------------- -------------- --------------
FOREIGN CURRENCY, AT VALUE .................................. 0 0 0 0
VARIATION MARGIN RECEIVABLE ON FUTURES CONTRACTS ............ 0 0 0 0
RECEIVABLE FOR INVESTMENTS SOLD ............................. 9,583,466 0 2,870,847 3,386,808
RECEIVABLES FOR DIVIDENDS AND INTEREST ...................... 458,588 2,760,141 1,116,635 424,478
UNREALIZED APPRECIATION ON FORWARD FOREIGN CURRENCY CONTRACTS 0 0 0 2,624
-------------- -------------- -------------- --------------
TOTAL ASSETS .................................................. 549,338,180 2,600,251,984 171,329,769 290,770,541
-------------- -------------- -------------- --------------
LIABILITIES
PAYABLE FOR DAILY VARIATION MARGIN ON FUTURES CONTRACTS ..... 0 35,700 0 0
FOREIGN TAXES PAYABLE ....................................... 0 0 11,974 0
PAYABLE FOR INVESTMENTS PURCHASED ........................... 8,278,898 19,934,622 910,439 3,961,694
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) ....... 316,376 219,528 129,699 230,071
PAYABLE TO THE TRUSTEES AND SHAREHOLDER SERVICING AGENT ..... 3,355 3,386 5,725 3,338
UNREALIZED DEPRECIATION ON FORWARD FOREIGN CURRENCY CONTRACTS 0 0 18,258 2,955
PAYABLE FOR SECURITIES LOANED (NOTE 2) ...................... 75,391,631 248,678,665 3,191,264 6,879,725
ACCRUED EXPENSES AND OTHER LIABILITIES ...................... 33,852 114,080 22,233 27,579
-------------- -------------- -------------- --------------
TOTAL LIABILITIES ............................................. 84,024,112 268,985,981 4,289,592 11,105,362
-------------- -------------- -------------- --------------
TOTAL NET ASSETS .............................................. $ 465,314,068 $2,331,266,003 $ 167,040,177 $ 279,665,179
============== ============== ============== ==============
INVESTMENTS AT COST ........................................... $ 493,521,615 $2,103,754,774 $ 135,990,778 $ 232,398,708
============== ============== ============== ==============
FOREIGN CURRENCIES AT COST .................................... $ 0 $ 0 $ 0 $ 0
============== ============== ============== ==============
SECURITIES ON LOAN, AT MARKET VALUE ........................... $ 72,823,440 $ 237,866,126 $ 3,048,985 $ 6,553,513
============== ============== ============== ==============
INTERNATIONAL INTERNATIONAL LARGE CAP LARGE COMPANY
INDEX VALUE APPRECIATION GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- -----------------------------------------------------------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE .............................. $ 163,041,122 $ 164,100,986 $ 140,092,348 $3,376,669,186
COLLATERAL FOR SECURITIES LOANED (NOTE 2) ................... 9,478,754 16,780,647 12,841,289 280,351,573
INVESTMENTS IN AFFILIATES ................................... 2,985,692 4,429,719 5,474,393 45,157,545
-------------- -------------- -------------- --------------
TOTAL INVESTMENTS AT MARKET VALUE (SEE COST BELOW) ........... 175,505,568 185,311,352 158,408,030 3,702,178,304
-------------- -------------- -------------- --------------
FOREIGN CURRENCY, AT VALUE .................................. 477,153 89,469 0 0
VARIATION MARGIN RECEIVABLE ON FUTURES CONTRACTS ............ 414,386 0 0 0
RECEIVABLE FOR INVESTMENTS SOLD ............................. 46,831 0 782,869 0
RECEIVABLES FOR DIVIDENDS AND INTEREST ...................... 837,799 1,057,956 119,887 3,555,898
UNREALIZED APPRECIATION ON FORWARD FOREIGN CURRENCY CONTRACTS 3,946 451 0 0
-------------- -------------- -------------- --------------
TOTAL ASSETS .................................................. 177,285,683 186,459,228 159,310,786 3,705,734,202
-------------- -------------- -------------- --------------
LIABILITIES
PAYABLE FOR DAILY VARIATION MARGIN ON FUTURES CONTRACTS ..... 0 0 0 0
FOREIGN TAXES PAYABLE ....................................... 0 0 423 382,239
PAYABLE FOR INVESTMENTS PURCHASED ........................... 88,095 0 4,464,724 0
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) ....... 32,693 142,400 53,422 1,844,467
PAYABLE TO THE TRUSTEES AND SHAREHOLDER SERVICING AGENT ..... 3,338 3,416 3,697 3,668
UNREALIZED DEPRECIATION ON FORWARD FOREIGN CURRENCY CONTRACTS 14,112 444 0 0
PAYABLE FOR SECURITIES LOANED (NOTE 2) ...................... 9,478,754 16,780,647 12,841,289 280,351,573
ACCRUED EXPENSES AND OTHER LIABILITIES ...................... 28,771 45,157 68,391 198,002
-------------- -------------- -------------- --------------
TOTAL LIABILITIES ............................................. 9,645,763 16,972,064 17,431,946 282,779,949
-------------- -------------- -------------- --------------
TOTAL NET ASSETS .............................................. $ 167,639,920 $ 169,487,164 $ 141,878,840 $3,422,954,253
============== ============== ============== ==============
INVESTMENTS AT COST ........................................... $ 134,887,133 $ 137,363,668 $ 138,577,679 $2,957,047,986
============== ============== ============== ==============
FOREIGN CURRENCIES AT COST .................................... $ 479,514 $ 88,427 $ 0 $ 0
============== ============== ============== ==============
SECURITIES ON LOAN, AT MARKET VALUE ........................... $ 8,942,697 $ 15,884,787 $ 12,379,929 $ 268,475,079
============== ============== ============== ==============
209
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
STATEMENT OF ASSETS AND LIABILITIES -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP SMALL COMPANY SMALL COMPANY STRATEGIC
INDEX GROWTH VALUE SMALL CAP
PORTFOLIO PORTFOLIO PORTFOLIO VALUE PORTFOLIO
- -----------------------------------------------------------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE .............................. $ 394,616,155 $1,003,303,868 $ 597,837,729 $ 196,204,135
COLLATERAL FOR SECURITIES LOANED (NOTE 2) ................... 80,045,141 103,113,468 127,309,553 0
INVESTMENTS IN AFFILIATES ................................... 5,844,883 38,116,747 17,884,513 6,620,137
-------------- -------------- -------------- --------------
TOTAL INVESTMENTS AT MARKET VALUE (SEE COST BELOW) ........... 480,506,179 1,144,534,083 743,031,795 202,824,272
-------------- -------------- -------------- --------------
VARIATION MARGIN RECEIVABLE ON FUTURES CONTRACTS ............ 25,200 0 0 0
RECEIVABLE FOR INVESTMENTS SOLD ............................. 5,398,280 5,348,304 7,516,339 156,429
RECEIVABLES FOR DIVIDENDS AND INTEREST ...................... 357,698 286,309 750,973 222,873
-------------- -------------- -------------- --------------
TOTAL ASSETS .................................................. 486,287,357 1,150,168,696 751,299,107 203,203,574
-------------- -------------- -------------- --------------
LIABILITIES
FOREIGN TAXES PAYABLE ....................................... 0 1,843 0 0
PAYABLE FOR INVESTMENTS PURCHASED ........................... 3,408,891 18,659,561 34,977 792,160
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) ....... 73,363 809,896 432,865 127,361
PAYABLE TO THE TRUSTEES AND SHAREHOLDER SERVICING AGENT...... 3,303 3,386 3,385 623
PAYABLE FOR SECURITIES LOANED (NOTE 2) ...................... 80,045,141 103,113,468 127,309,553 0
ACCRUED EXPENSES AND OTHER LIABILITIES ...................... 31,307 52,916 40,976 6,357
-------------- -------------- -------------- --------------
TOTAL LIABILITIES ............................................. 83,562,005 122,641,070 127,821,756 926,501
-------------- -------------- -------------- --------------
TOTAL NET ASSETS .............................................. $ 402,725,352 $1,027,527,626 $ 623,477,351 $ 202,277,073
============== ============== ============== ==============
INVESTMENTS AT COST ........................................... $ 353,661,972 $ 961,511,654 $ 653,638,818 $ 194,619,402
============== ============== ============== ==============
SECURITIES ON LOAN, AT MARKET VALUE ........................... $ 77,520,062 $ 99,824,629 $ 122,821,350 $ 0
============== ============== ============== ==============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
210
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
STATEMENT OF OPERATIONS --
FOR THE SIX MONTHS ENDED MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
C&B LARGE DISCIPLINED EQUITY
CAP VALUE GROWTH INCOME
PORTFOLIO PORTFOLIO PORTFOLIO
- ---------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS(1) .................................................... $ 7,625,755 $ 656,097 $ 14,574,326
INTEREST ........................................................ 0 0 3,545
INCOME FROM AFFILIATED SECURITIES ............................... 724,628 98,223 130,820
SECURITIES LENDING INCOME, NET .................................. 1,175 3,327 29,340
------------- ------------- -------------
TOTAL INVESTMENT INCOME ........................................... 8,351,558 757,647 14,738,031
------------- ------------- -------------
EXPENSES
ADVISORY FEES ................................................... 2,905,024 697,170 4,083,315
CUSTODY FEES .................................................... 79,439 18,591 114,134
ACCOUNTING FEES ................................................. 0 0 0
PROFESSIONAL FEES ............................................... 23,538 13,141 33,883
REGISTRATION FEES ............................................... 139 52 364
SHAREHOLDER REPORTS ............................................. 22,665 1,494 34,296
TRUSTEES' FEES .................................................. 3,807 3,782 3,776
OTHER FEES AND EXPENSES ......................................... 15,113 2,647 9,241
------------- ------------- -------------
TOTAL EXPENSES .................................................... 3,049,725 736,877 4,279,009
------------- ------------- -------------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) .................... (431,811) (14,582) (292,501)
NET EXPENSES .................................................... 2,617,914 722,295 3,986,508
------------- ------------- -------------
NET INVESTMENT INCOME (LOSS) ...................................... 5,733,644 35,352 10,751,523
------------- ------------- -------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- ---------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
- ---------------------------------------------------------------------------------------------------------------------
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION . 16,464,707 3,926,709 86,513,450
FORWARD FOREIGN CURRENCY CONTRACTS .............................. 0 0 0
FUTURES TRANSACTIONS ............................................ 0 0 0
------------- ------------- -------------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ......................... 16,464,707 3,926,709 86,513,450
------------- ------------- -------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
- ---------------------------------------------------------------------------------------------------------------------
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION . 35,590,789 5,485,162 (56,115,058)
FORWARD FOREIGN CURRENCY CONTRACTS .............................. 0 0 0
FUTURES TRANSACTIONS ............................................ 0 0 0
------------- ------------- -------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS 35,590,789 5,485,162 (56,115,058)
============= ============= =============
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ............ 52,055,496 9,411,871 30,398,392
------------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ... $ 57,789,140 $ 9,447,223 $ 41,149,915
------------- ------------- -------------
(1) NET OF FOREIGN WITHHOLDING TAXES OF ........................... $ 41,057 $ 0 $ 56,462
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
212
STATEMENT OF OPERATIONS --
FOR THE SIX MONTHS ENDED MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
EQUITY INTERNATIONAL
VALUE INDEX CORE
PORTFOLIO PORTFOLIO PORTFOLIO
- ---------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS(1) .................................................... $ 4,159,592 $ 21,327,761 $ 1,488,931
INTEREST ........................................................ 28,293 25,722 0
INCOME FROM AFFILIATED SECURITIES ............................... 167,416 472,072 52,611
SECURITIES LENDING INCOME, NET .................................. 11,470 129,583 14,953
------------- ------------- -------------
TOTAL INVESTMENT INCOME ........................................... 4,366,771 21,955,138 1,556,495
------------- ------------- -------------
EXPENSES
ADVISORY FEES ................................................... 1,669,416 953,525 762,888
CUSTODY FEES .................................................... 44,518 221,031 80,304
ACCOUNTING FEES ................................................. 0 0 10,776
PROFESSIONAL FEES ............................................... 17,359 50,274 28,188
REGISTRATION FEES ............................................... 116 720 45
SHAREHOLDER REPORTS ............................................. 9,793 54,442 3,838
TRUSTEES' FEES .................................................. 3,775 3,777 3,687
OTHER FEES AND EXPENSES ......................................... 6,279 22,057 2,459
------------- ------------- -------------
TOTAL EXPENSES .................................................... 1,751,256 1,305,826 892,185
------------- ------------- -------------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) .................... (28,203) (52,180) (64,727)
NET EXPENSES .................................................... 1,723,053 1,253,646 827,458
------------- ------------- -------------
NET INVESTMENT INCOME (LOSS) ...................................... 2,643,718 20,701,492 729,037
------------- ------------- -------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- ---------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
- ---------------------------------------------------------------------------------------------------------------------
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION . 15,339,886 23,204,909 6,478,277
FORWARD FOREIGN CURRENCY CONTRACTS .............................. 0 0 0
FUTURES TRANSACTIONS ............................................ 0 333,516 0
------------- ------------- -------------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ......................... 15,339,886 23,538,425 6,478,277
------------- ------------- -------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
- ---------------------------------------------------------------------------------------------------------------------
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION . 10,096,858 91,158,379 9,651,689
FORWARD FOREIGN CURRENCY CONTRACTS .............................. 0 0 (17,886)
FUTURES TRANSACTIONS ............................................ 0 (29,150) 0
------------- ------------- -------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS 10,096,858 91,129,229 9,633,803
============= ============= =============
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ............ 25,436,744 114,667,654 16,112,080
------------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ... $ 28,080,462 $ 135,369,146 $ 16,841,117
------------- ------------- -------------
(1) NET OF FOREIGN WITHHOLDING TAXES OF ........................... $ 13,290 $ 0 $ 100,874
INTERNATIONAL INTERNATIONAL INTERNATIONAL
GROWTH INDEX VALUE
PORTFOLIO PORTFOLIO PORTFOLIO
- ---------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS(1) .................................................... $ 1,040,084 $ 1,616,750 $ 1,844,414
INTEREST ........................................................ 4,328 3,130 11,231
INCOME FROM AFFILIATED SECURITIES ............................... 94,581 44,519 84,227
SECURITIES LENDING INCOME, NET .................................. 17,406 17,389 20,892
------------- ------------- -------------
TOTAL INVESTMENT INCOME ........................................... 1,156,399 1,681,788 1,960,764
------------- ------------- -------------
EXPENSES
ADVISORY FEES ................................................... 1,221,579 282,255 771,047
CUSTODY FEES .................................................... 128,587 80,644 81,163
ACCOUNTING FEES ................................................. 7,541 20,125 13,712
PROFESSIONAL FEES ............................................... 15,659 15,876 30,823
REGISTRATION FEES ............................................... 51 46 44
SHAREHOLDER REPORTS ............................................. 5,816 5,295 5,506
TRUSTEES' FEES .................................................. 3,774 3,774 3,779
OTHER FEES AND EXPENSES ......................................... 2,709 2,704 6,059
------------- ------------- -------------
TOTAL EXPENSES .................................................... 1,385,716 410,719 912,133
------------- ------------- -------------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) .................... (120,496) (106,689) (16,852)
NET EXPENSES .................................................... 1,265,220 304,030 895,281
------------- ------------- -------------
NET INVESTMENT INCOME (LOSS) ...................................... (108,821) 1,377,758 1,065,483
------------- ------------- -------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- ---------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
- ---------------------------------------------------------------------------------------------------------------------
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION . 12,697,943 3,655,606 9,567,899
FORWARD FOREIGN CURRENCY CONTRACTS .............................. 0 9,192 0
FUTURES TRANSACTIONS ............................................ 0 539,263 0
------------- ------------- -------------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ......................... 12,697,943 4,204,061 9,567,899
------------- ------------- -------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
- ---------------------------------------------------------------------------------------------------------------------
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION . 28,420,225 16,142,665 10,051,044
FORWARD FOREIGN CURRENCY CONTRACTS .............................. 642 27,219 (102)
FUTURES TRANSACTIONS ............................................ 0 145,333 0
------------- ------------- -------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS 28,420,867 16,315,217 10,050,942
============= ============= =============
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ............ 41,118,810 20,519,278 19,618,841
------------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ... $ 41,009,989 $ 21,897,036 $ 20,684,324
------------- ------------- -------------
(1) NET OF FOREIGN WITHHOLDING TAXES OF ........................... $ 109,979 $ 84,487 $ 86,562
LARGE CAP LARGE COMPANY
APPRECIATION GROWTH
PORTFOLIO PORTFOLIO
- ----------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS(1) .................................................... $ 799,698 $ 12,726,273
INTEREST ........................................................ 0 0
INCOME FROM AFFILIATED SECURITIES ............................... 76,868 696,748
SECURITIES LENDING INCOME, NET .................................. 1,570 132,659
------------- -------------
TOTAL INVESTMENT INCOME ........................................... 878,136 13,555,680
------------- -------------
EXPENSES
ADVISORY FEES ................................................... 474,115 11,725,293
CUSTODY FEES .................................................... 13,546 351,275
ACCOUNTING FEES ................................................. 0 0
PROFESSIONAL FEES ............................................... 11,827 68,007
REGISTRATION FEES ............................................... 0 1,264
SHAREHOLDER REPORTS ............................................. 13,528 97,134
TRUSTEES' FEES .................................................. 3,796 3,793
OTHER FEES AND EXPENSES ......................................... 1,927 37,641
------------- -------------
TOTAL EXPENSES .................................................... 518,739 12,284,407
------------- -------------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) .................... (39,958) (1,533,631)
NET EXPENSES .................................................... 478,781 10,750,776
------------- -------------
NET INVESTMENT INCOME (LOSS) ...................................... 399,355 2,804,904
------------- -------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- ----------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
- ----------------------------------------------------------------------------------------------------
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION . 11,632,863 64,646,295
FORWARD FOREIGN CURRENCY CONTRACTS .............................. 0 0
FUTURES TRANSACTIONS ............................................ 0 0
------------- -------------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ......................... 11,632,863 64,646,295
------------- -------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
- ----------------------------------------------------------------------------------------------------
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION . (1,036,045) 144,312,725
FORWARD FOREIGN CURRENCY CONTRACTS .............................. 0 0
FUTURES TRANSACTIONS ............................................ 0 0
------------- -------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS (1,036,045) 144,312,725
============= =============
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ............ 10,596,818 208,959,020
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ... $ 10,996,173 $ 211,763,924
------------- -------------
(1) NET OF FOREIGN WITHHOLDING TAXES OF ........................... $ 0 $ 382,239
213
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
STATEMENT OF OPERATIONS --
FOR THE SIX MONTHS ENDED MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP SMALL COMPANY SMALL COMPANY STRATEGIC
INDEX GROWTH VALUE SMALL CAP VALUE
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO(2)
- -----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS(1) .................................................... $ 2,035,745 $ 2,469,667 $ 3,977,565 $ 294,106
INTEREST ........................................................ 5,910 82 61,142 100,773
INCOME FROM AFFILIATED SECURITIES ............................... 154,079 491,686 449,899 73,574
SECURITIES LENDING INCOME, NET .................................. 88,142 229,897 135,565 0
------------- ------------- ------------- -------------
TOTAL INVESTMENT INCOME ........................................... 2,283,876 3,191,332 4,624,171 468,453
------------- ------------- ------------- -------------
EXPENSES
ADVISORY FEES ................................................... 372,416 4,078,723 2,905,315 257,788
CUSTODY FEES .................................................... 37,242 93,044 65,427 5,729
PROFESSIONAL FEES ............................................... 18,968 23,898 20,277 4,568
REGISTRATION FEES ............................................... 4,994 298 168 42
SHAREHOLDER REPORTS ............................................. 9,735 22,485 15,194 510
TRUSTEES' FEES .................................................. 3,772 3,776 3,776 1,252
OTHER FEES AND EXPENSES ......................................... 3,479 5,765 7,628 1,530
------------- ------------- ------------- -------------
TOTAL EXPENSES .................................................... 450,606 4,227,989 3,017,785 271,419
------------- ------------- ------------- -------------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) .................... (25,029) (19,444) (573,138) (56,595)
NET EXPENSES .................................................... 425,577 4,208,545 2,444,647 214,824
------------- ------------- ------------- -------------
NET INVESTMENT INCOME (LOSS) ...................................... 1,858,299 (1,017,213) 2,179,524 253,629
------------- ------------- ------------- -------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- -----------------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
- -----------------------------------------------------------------------------------------------------------------------------------
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION . 17,339,115 77,318,419 60,222,758 644,786
FUTURES TRANSACTIONS ............................................ 1,024,718 0 0 0
------------- ------------- ------------- -------------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ......................... 18,363,833 77,318,419 60,222,758 644,786
------------- ------------- ------------- -------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
- -----------------------------------------------------------------------------------------------------------------------------------
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION . 28,026,652 87,513,659 15,224,032 8,204,870
FUTURES TRANSACTIONS ............................................ 217,000 0 0 0
------------- ------------- ------------- -------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS 28,243,652 87,513,659 15,224,032 8,204,870
============= ============= ============= =============
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ............ 46,607,485 164,832,078 75,446,790 8,849,656
------------- ------------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ... 48,465,784 163,814,865 77,626,314 9,103,285
============= ============= ============= =============
(1) NET OF FOREIGN WITHHOLDING TAXES OF ......................... $ 725 $ 6,256 $ 0 $ 0
(2) THIS PORTFOLIO COMMENCED OPERATIONS ON JANUARY 31, 2006.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
214
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
C&B LARGE CAP VALUE PORTFOLIO(1)
--------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
MARCH 31, 2006 PERIOD ENDED
(UNAUDITED) SEPTEMBER 30, 2005
- --------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ........................................ $ 774,696,069 $ 0
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ................................ 5,733,644 4,743,929
NET REALIZED GAIN (LOSS) ON INVESTMENTS ..................... 16,464,707 11,559,905
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)
OF INVESTMENTS ........................................... 35,590,789 (56,242)
----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ................................................. 57,789,140 16,247,592
----------------- -----------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST
CONTRIBUTIONS ............................................... 27,769,856 781,393,050
WITHDRAWALS ................................................. (49,366,000) (22,944,573)
----------------- -----------------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS ........................................ (21,596,144) 758,448,477
----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS ......................... 36,192,996 774,696,069
----------------- -----------------
ENDING NET ASSETS ............................................. $ 810,889,065 $ 774,696,069
================= =================
DISCIPLINED GROWTH PORTFOLIO
--------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005
- --------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ........................................ $ 184,902,166 $ 178,341,304
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ................................ 35,352 813,047
NET REALIZED GAIN (LOSS) ON INVESTMENTS ..................... 3,926,709 3,565,680
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)
OF INVESTMENTS ........................................... 5,485,162 16,219,053
----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS .................................................. 9,447,223 20,597,780
----------------- -----------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST
CONTRIBUTIONS ............................................... 3,105,614 7,178,229
WITHDRAWALS ................................................. (8,742,858) (21,215,147)
----------------- -----------------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS ........................................ (5,637,244) (14,036,918)
----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS ......................... 3,809,979 6,560,862
----------------- -----------------
ENDING NET ASSETS ............................................. $ 188,712,145 $ 184,902,166
================= =================
(1) THIS PORTFOLIO COMMENCED OPERATIONS ON DECEMBER 6, 2004.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
216
STATEMENTS OF CHANGES IN NET ASSETS
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
EQUITY INCOME PORTFOLIO
--------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005
- --------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ........................................ $ 1,273,196,285 $ 1,739,060,014
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ................................ 10,751,523 29,718,544
NET REALIZED GAIN (LOSS) ON INVESTMENTS ..................... 86,513,450 263,090,149
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)
OF INVESTMENTS ........................................... (56,115,058) (101,890,052)
----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS .................................................. 41,149,915 190,918,641
----------------- -----------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST
CONTRIBUTIONS ............................................... 27,032,429 22,472,150
WITHDRAWALS ................................................. (276,735,585) (679,254,520)
----------------- -----------------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS ........................................ (249,703,156) (656,782,370)
----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS ......................... (208,553,241) (465,863,729)
----------------- -----------------
ENDING NET ASSETS ............................................. $ 1,064,643,044 $ 1,273,196,285
================= =================
EQUITY VALUE PORTFOLIO
--------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005
- --------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ........................................ $ 438,219,988 $ 225,993,634
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ................................ 2,643,718 4,211,622
NET REALIZED GAIN (LOSS) ON INVESTMENTS ..................... 15,339,886 36,519,620
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)
OF INVESTMENTS ........................................... 10,096,858 24,408,508
----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS .................................................. 28,080,462 65,139,750
----------------- -----------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST
CONTRIBUTIONS ............................................... 24,931,951 240,172,585
WITHDRAWALS ................................................. (25,918,333) (93,085,981)
----------------- -----------------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS ........................................ (986,382) 147,086,604
----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS ......................... 27,094,080 212,226,354
----------------- -----------------
ENDING NET ASSETS ............................................. $ 465,314,068 $ 438,219,988
================= =================
INDEX PORTFOLIO
--------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005
- --------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ........................................ $ 2,151,037,408 $ 1,846,126,209
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ................................ 20,701,492 41,951,828
NET REALIZED GAIN (LOSS) ON INVESTMENTS ..................... 23,538,425 84,611,766
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)
OF INVESTMENTS ........................................... 91,129,229 139,639,605
----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS .................................................. 135,369,146 266,203,199
----------------- -----------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST
CONTRIBUTIONS ............................................... 180,455,274 321,376,976
WITHDRAWALS ................................................. (135,595,825) (282,668,976)
----------------- -----------------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS ........................................ 44,859,449 38,708,000
----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS ......................... 180,228,595 304,911,199
----------------- -----------------
ENDING NET ASSETS ............................................. $ 2,331,266,003 $ 2,151,037,408
================= =================
217
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
INTERNATIONAL CORE PORTFOLIO
--------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005
- --------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ........................................ $ 160,473,368 $ 461,906,264
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ................................ 729,037 2,503,163
NET REALIZED GAIN (LOSS) ON INVESTMENTS ..................... 6,478,277 64,013,738
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)
OF INVESTMENTS ........................................... 9,633,803 (35,614,283)
----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS .................................................. 16,841,117 30,902,618
----------------- -----------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST
CONTRIBUTIONS ............................................... 3,143,823 15,224,525
WITHDRAWALS ................................................. (13,418,131) (347,560,039)
----------------- -----------------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS ........................................ (10,274,308) (332,335,514)
----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS ......................... 6,566,809 (301,432,896)
----------------- -----------------
ENDING NET ASSETS ............................................. $ 167,040,177 $ 160,473,368
================= =================
INTERNATIONAL GROWTH PORTFOLIO(2)
--------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
MARCH 31, 2006 PERIOD ENDED
(UNAUDITED) SEPTEMBER 30, 2005
- --------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ........................................ $ 251,828,302 $ 0
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ................................ (108,821) 1,687,794
NET REALIZED GAIN (LOSS) ON INVESTMENTS ..................... 12,697,943 8,235,022
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)
OF INVESTMENTS ........................................... 28,420,867 26,128,962
----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS .................................................. 41,009,989 36,051,778
----------------- -----------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST
CONTRIBUTIONS ............................................... 10,591,945 248,728,667
WITHDRAWALS ................................................. (23,765,057) (32,952,143)
----------------- -----------------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS ........................................ (13,173,112) 215,776,524
----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS ......................... 27,836,877 251,828,302
----------------- -----------------
ENDING NET ASSETS ............................................. $ 279,665,179 $ 251,828,302
================= =================
(2) THIS PORTFOLIO COMMENCED OPERATIONS ON OCTOBER 6, 2004.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
218
STATEMENTS OF CHANGES IN NET ASSETS
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO(2)
--------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
MARCH 31, 2006 PERIOD ENDED
(UNAUDITED) SEPTEMBER 30, 2005
- --------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ........................................ $ 161,372,219 $ 0
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ................................ 1,377,758 3,791,332
NET REALIZED GAIN (LOSS) ON INVESTMENTS ..................... 4,204,061 3,715,456
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)
OF INVESTMENTS ........................................... 16,315,217 24,359,661
----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS .................................................. 21,897,036 31,866,449
----------------- -----------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST
CONTRIBUTIONS ............................................... 1,998,726 159,805,164
WITHDRAWALS ................................................. (17,628,061) (30,299,394)
----------------- -----------------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS ........................................ (15,629,335) 129,505,770
----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS ......................... 6,267,701 161,372,219
----------------- -----------------
ENDING NET ASSETS ............................................. $ 167,639,920 $ 161,372,219
================= =================
INTERNATIONAL VALUE PORTFOLIO
--------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005
- --------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ........................................ $ 162,175,581 $ 155,296,981
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ................................ 1,065,483 3,531,358
NET REALIZED GAIN (LOSS) ON INVESTMENTS ..................... 9,567,899 14,568,321
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)
OF INVESTMENTS ........................................... 10,050,942 19,114,976
----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS .................................................. 20,684,324 37,214,655
----------------- -----------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST
CONTRIBUTIONS ............................................... 4,094,347 7,530,070
WITHDRAWALS ................................................. (17,467,088) (37,866,125)
----------------- -----------------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS ........................................ (13,372,741) (30,336,055)
----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS ......................... 7,311,583 6,878,600
----------------- -----------------
ENDING NET ASSETS ............................................. $ 169,487,164 $ 162,175,581
================= =================
LARGE CAP APPRECIATION PORTFOLIO
--------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005
- --------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ........................................ $ 132,789,757 $ 114,158,777
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ................................ 399,355 1,029,238
NET REALIZED GAIN (LOSS) ON INVESTMENTS ..................... 11,632,863 9,657,362
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)
OF INVESTMENTS ........................................... (1,036,045) 11,730,871
----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS .................................................. 10,996,173 22,417,471
----------------- -----------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST
CONTRIBUTIONS ............................................... 7,120,702 13,469,241
WITHDRAWALS ................................................. (9,027,792) (17,255,732)
----------------- -----------------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS ........................................ (1,907,090) (3,786,491)
----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS ......................... 9,089,083 18,630,980
----------------- -----------------
ENDING NET ASSETS ............................................. $ 141,878,840 $ 132,789,757
================= =================
219
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
LARGE COMPANY GROWTH PORTFOLIO
--------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005
- --------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ........................................ $ 3,563,533,543 $ 3,403,979,864
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ................................ 2,804,904 24,671,536
NET REALIZED GAIN (LOSS) ON INVESTMENTS ..................... 64,646,295 176,488,735
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)
OF INVESTMENTS ........................................... 144,312,725 200,597,199
----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS .................................................. 211,763,924 401,757,470
----------------- -----------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST
CONTRIBUTIONS ............................................... 82,850,202 497,083,297
WITHDRAWALS ................................................. (435,193,416) (739,287,088)
----------------- -----------------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS ........................................ (352,343,214) (242,203,791)
----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS ......................... (140,579,290) 159,553,679
----------------- -----------------
ENDING NET ASSETS ............................................. $ 3,422,954,253 $ 3,563,533,543
================= =================
SMALL CAP INDEX PORTFOLIO
--------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005
- --------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ........................................ $ 359,172,109 $ 311,448,570
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ................................ 1,858,299 3,380,122
NET REALIZED GAIN (LOSS) ON INVESTMENTS ..................... 18,363,833 14,081,612
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)
OF INVESTMENTS ........................................... 28,243,652 46,194,745
----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS .................................................. 48,465,784 63,656,479
----------------- -----------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST
CONTRIBUTIONS ............................................... 21,551,566 28,963,364
WITHDRAWALS ................................................. (26,464,107) (44,896,304)
----------------- -----------------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS ........................................ (4,912,541) (15,932,940)
----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS ......................... 43,553,243 47,723,539
----------------- -----------------
ENDING NET ASSETS ............................................. $ 402,725,352 $ 359,172,109
================= =================
(3) THIS PORTFOLIO COMMENCED OPERATIONS ON JANUARY 31, 2006.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
220
STATEMENTS OF CHANGES IN NET ASSETS
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO
--------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005
- --------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ........................................ $ 889,007,735 $ 798,352,072
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ................................ (1,017,213) (3,794,922)
NET REALIZED GAIN (LOSS) ON INVESTMENTS ..................... 77,318,419 96,209,873
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)
OF INVESTMENTS ........................................... 87,513,659 34,372,379
----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS .................................................. 163,814,865 126,787,330
----------------- -----------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST
CONTRIBUTIONS ............................................... 43,474,285 84,733,044
WITHDRAWALS ................................................. (68,769,259) (120,864,711)
----------------- -----------------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS ........................................ (25,294,974) (36,131,667)
----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS ......................... 138,519,891 90,655,663
----------------- -----------------
ENDING NET ASSETS ............................................. $ 1,027,527,626 $ 889,007,735
================= =================
SMALL COMPANY VALUE PORTFOLIO
--------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005
- --------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ........................................ $ 620,229,304 $ 445,746,360
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ................................ 2,179,524 3,246,193
NET REALIZED GAIN (LOSS) ON INVESTMENTS ..................... 60,222,758 90,994,124
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)
OF INVESTMENTS ........................................... 15,224,032 18,729,897
----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS .................................................. 77,626,314 112,970,214
----------------- -----------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST
CONTRIBUTIONS ............................................... 145,374,648 137,873,623
WITHDRAWALS ................................................. (219,752,915) (76,360,893)
----------------- -----------------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS ........................................ (74,378,267) 61,512,730
----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS ......................... 3,248,047 174,482,944
----------------- -----------------
ENDING NET ASSETS ............................................. $ 623,477,351 $ 620,229,304
================= =================
STRATEGIC SMALL CAP VALUE PORTFOLIO(3)
--------------------------------------
FOR THE
PERIOD ENDED
MARCH 31, 2006
(UNAUDITED)
- --------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ........................................ $ 0
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ................................ 253,629
NET REALIZED GAIN (LOSS) ON INVESTMENTS ..................... 644,786
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)
OF INVESTMENTS ........................................... 8,204,870
-----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS .................................................. 9,103,285
-----------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST
CONTRIBUTIONS ............................................... 196,976,951
WITHDRAWALS ................................................. (3,803,163)
-----------------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS ........................................ 193,173,788
-----------------
NET INCREASE (DECREASE) IN NET ASSETS ......................... 202,277,073
-----------------
ENDING NET ASSETS ............................................. $ 202,277,073
=================
221
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
RATIO TO AVERAGE NET ASSETS (ANNUALIZED)(1)
----------------------------------------------------
PORTFOLIO
NET INVESTMENT GROSS EXPENSES NET TOTAL TURNOVER
INCOME (LOSS) EXPENSES WAIVED EXPENSES RETURN(2) RATE
- ----------------------------------------------------------------------------------------------------------------------------
C&B LARGE CAP VALUE PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ... 1.44% 0.77% (0.11)% 0.66% 7.42% 15%
DECEMBER 6, 2004(3) TO SEPTEMBER 30, 2005 ....... 0.98% 0.77% (0.06)% 0.71% 1.51% 19%
DISCIPLINED GROWTH PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ... 0.04% 0.79% (0.01)% 0.78% 5.23% 40%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... 0.44% 0.79% (0.01)% 0.78% 11.76% 45%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ........... 0.28% 0.80% (0.26)% 0.54% 9.88% 87%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 0.28% 0.88% (0.15)% 0.73% 25.65% 117%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... 0.27% 0.91% (0.18)% 0.73% (12.57)% 156%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... 0.15% 0.82% (0.10)% 0.72% (20.55)% 181%
EQUITY INCOME PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ... 1.88% 0.75% (0.05)% 0.70% 3.64% 3%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... 2.04% 0.73% (0.13)% 0.60% 13.30% 20%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ........... 1.86% 0.77% (0.21)% 0.56% 17.04% 11%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 2.01% 0.78% (0.11)% 0.67% 20.66% 9%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... 1.61% 0.78% (0.10)% 0.68% (19.49)% 12%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... 1.29% 0.78% (0.10)% 0.68% (8.61)% 3%
EQUITY VALUE PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ... 1.19% 0.79% (0.01)% 0.78% 6.33% 53%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... 1.22% 0.78% (0.02)% 0.76% 21.61% 145%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ........... 1.25% 0.80% (0.18)% 0.62% 17.82% 122%
AUGUST 29, 2003(3) TO SEPTEMBER 30, 2003 ........ 0.64% 0.86% (0.32)% 0.54% (1.80)% 3%
INDEX PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ... 1.87% 0.12% 0.00% 0.12% 6.34% 3%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... 2.08% 0.12% (0.08)% 0.04% 12.23% 8%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ........... 1.71% 0.17% (0.14)% 0.03% 13.87% 2%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 1.70% 0.18% (0.05)% 0.13% 24.42% 3%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... 1.40% 0.18% (0.05)% 0.13% (20.52)% 4%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... 1.23% 0.18% (0.05)% 0.13% (26.56)% 2%
INTERNATIONAL CORE PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ... 0.91% 1.11% (0.08)% 1.03% 10.71% 24%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... 1.51% 1.09% (0.01)% 1.08% 18.69% 108%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ........... 0.86% 1.11% (0.15)% 0.96% 13.84% 33%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 0.81% 1.12% (0.03)% 1.09% 18.39% 75%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... 0.54% 1.26% (0.02)% 1.24% (19.04)% 38%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... 0.57% 1.31% (0.04)% 1.27% (28.86)% 33%
INTERNATIONAL GROWTH PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ... (0.08)% 1.08% (0.09)% 0.99% 16.76% 30%
OCTOBER 6, 2004(3) TO SEPTEMBER 30, 2005 ........ 1.02% 1.08% (0.02)% 1.06% 22.30% 67%
INTERNATIONAL INDEX PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ... 1.71% 0.51% (0.13)% 0.38% 14.27% 2%
OCTOBER 6, 2004(3) TO SEPTEMBER 30, 2005 ........ 2.41% 0.49% (0.03)% 0.46% 21.90% 21%
INTERNATIONAL VALUE PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ... 1.31% 1.12% (0.02)% 1.10% 13.24% 9%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... 2.21% 1.11% (0.01)% 1.10% 25.92% 14%
OCTOBER 31, 2003(3) TO SEPTEMBER 30, 2004 ....... 2.61% 1.02% (0.18)% 0.84% 20.00% 24%
LARGE CAP APPRECIATION PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ... 0.59% 0.77% (0.06)% 0.71% 8.30% 80%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... 0.83% 0.74% 0.00% 0.74% 20.02% 133%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ........... 0.50% 0.76% (0.14)% 0.62% 10.56% 149%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 0.29% 0.81% (0.09)% 0.72% 18.50% 153%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... 0.37% 0.88% (0.16)% 0.72% (20.04)% 123%
AUGUST 31, 2001(3) TO SEPTEMBER 30, 2001 ........ 1.51% 0.79% (0.07)% 0.72% (7.01)% 10%
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
222
FINANCIAL HIGHLIGHTS
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
RATIO TO AVERAGE NET ASSETS (ANNUALIZED)(1)
----------------------------------------------------
PORTFOLIO
NET INVESTMENT GROSS EXPENSES NET TOTAL TURNOVER
INCOME (LOSS) EXPENSES WAIVED EXPENSES RETURN(2) RATE
- ----------------------------------------------------------------------------------------------------------------------------
LARGE COMPANY GROWTH PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ... 0.16% 0.70% (0.09)% 0.61% 5.94% 3%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... 0.69% 0.69% (0.01)% 0.68% 11.03% 18%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ........... (0.09)% 0.76% (0.08)% 0.68% 2.96% 14%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... (0.24)% 0.78% (0.02)% 0.76% 27.90% 13%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... (0.34)% 0.78% 0.00% 0.78% (22.32)% 18%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... (0.29)% 0.78% 0.00% 0.78% (39.70)% 13%
SMALL CAP INDEX PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ... 1.00% 0.24% (0.01)% 0.23% 13.23% 11%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... 1.00% 0.23% (0.05)% 0.18% 21.03% 14%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ........... 0.93% 0.28% (0.19)% 0.09% 23.97% 17%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 0.74% 0.31% (0.02)% 0.29% 27.79% 11%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... 0.57% 0.33% (0.01)% 0.32% (2.60)% 17%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... 0.90% 0.33% (0.01)% 0.32% (12.27)% 25%
SMALL COMPANY GROWTH PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ... (0.22)% 0.91% 0.00% 0.91% 18.61% 67%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... (0.45)% 0.91% 0.00% 0.91% 16.51% 142%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ........... (0.63)% 0.93% (0.07)% 0.86% 12.70% 145%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... (0.35)% 0.94% (0.02)% 0.92% 37.90% 163%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... (0.40)% 0.94% 0.00% 0.94% (19.95)% 169%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... (0.17)% 0.94% 0.00% 0.94% (23.09)% 206%
SMALL COMPANY VALUE PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) ... 0.67% 0.92% (0.18)% 0.74% 11.82% 58%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... 0.61% 0.92% (0.10)% 0.82% 24.77% 70%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ........... 0.54% 0.93% (0.13)% 0.80% 23.72% 64%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 0.70% 0.95% (0.16)% 0.79% 38.33% 80%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... 0.68% 0.98% (0.19)% 0.79% (2.16)% 98%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... 1.32% 0.97% (0.18)% 0.79% 10.70% 90%
STRATEGIC SMALL CAP VALUE PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------
JANUARY 31, 2006(3) TO MARCH 31, 2006 (UNAUDITED) 0.30% 0.99% (0.21)% 0.78% 4.00% 6%
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
223
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS NOTES TO FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------
(1) During each period, various fees and expenses were waived and
reimbursed, as indicated. The ratio of Gross Expenses to Average Net
Assets reflects the expense ratio in the absence of any waivers and
reimbursements (Note 3).
(2) Total return calculations do not include any sales charges, and
would have been lower had certain expenses not been waived or
reimbursed during the periods shown. Returns for periods less than
one year are not annualized.
(3) Commencement of operations.
224
NOTES TO FINANCIAL STATEMENTS WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
1. ORGANIZATION
- --------------------------------------------------------------------------------
Wells Fargo Master Trust (the "Trust") is registered as an open-end
management investment company under the Investment Company Act of 1940, as
amended (the "1940 Act"). The Trust currently has 19 separate investment
portfolios. These financial statements are for 15 of those portfolios as
follows: the C&B Large Cap Value Portfolio, Disciplined Growth Portfolio, Equity
Income Portfolio, Equity Value Portfolio, Index Portfolio, International Core
Portfolio, International Growth Portfolio, International Index Portfolio,
Internationl Value Portfolio, Large Cap Appreciation Portfolio, Large Company
Growth Portfolio, Small Cap Index Portfolio, Small Company Growth Portfolio,
Small Company Value Portfolio and Strategic Small Cap Value Portfolio (each, a
"Fund" and collectively, the "Funds").
Interests in the Funds are sold without any sales charge in private
placement transactions to qualified investors, including open-end management
investment companies.
2. SIGNIFICANT ACCOUNTING POLICIES
- --------------------------------------------------------------------------------
The following significant accounting policies, which are consistently
followed in the preparation of the financial statements of the Trust, are in
conformity with accounting principles generally accepted in the United States of
America ("GAAP") for investment companies.
The preparation of financial statements in conformity with GAAP requires
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.
In the normal course of business, the Trust may enter into contracts that
provide certain indemnifications. The Trust's maximum exposure under these
arrangements is dependent on future claims that may be made against the Funds
and, therefore, cannot be estimated; however, based on experience, the risk of
loss from such claims is considered remote.
SECURITY VALUATION
Investments in securities are valued each business day as of the close of
regular trading on the New York Stock Exchange, which is usually 4:00 p.m.
(Eastern Time). Securities which are traded on a national or foreign securities
exchange are valued at the last reported sales price. Securities listed on The
NASDAQ Stock Market, Inc. are valued at the NASDAQ Official Closing Price
("NOCP"), and if no NOCP is available, then at the last reported sales price. In
the absence of any sale of such securities, and in the case of other securities,
including U.S. Government obligations, but excluding debt securities maturing in
60 days or less, the price will be deemed "stale" and the valuations will be
determined in accordance with the Funds' Fair Valuation Procedures.
Securities denominated in foreign currencies are translated into U.S.
dollars using the closing rates of exchange in effect on the day of valuation.
Many securities markets and exchanges outside the U.S. close prior to the
close of the New York Stock Exchange and therefore may not fully reflect trading
or events that occur after the close of the principal exchange in which the
foreign investments are traded but before the close of the New York Stock
Exchange. If such trading or events are expected to materially affect the value
of the investments, then those investments are fair valued following procedures
approved by the Board of Trustees. These procedures take into account multiple
factors including movements in U.S. securities markets after foreign exchanges
close. Depending on market activity, such fair valuations may be frequent. In
light of the judgment involved in fair value decisions, there can be no
assurance that a fair value assigned to a particular security is accurate. Such
fair value pricing may result in NAVs that are higher or lower than NAVs based
on the closing price or latest quoted bid price.
Debt securities maturing in 60 days or less generally are valued at
amortized cost. The amortized cost method involves valuing a security at its
cost, plus accretion of discount or minus amortization of premium over the
period until maturity, which approximates market value.
Investments which are not valued using any of the methods discussed above
are valued at their fair value as determined by procedures approved by the Board
of Trustees.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Securities transactions are recorded on a trade date basis. Realized gains
or losses are reported on the basis of identified cost of securities delivered.
Interest income is accrued daily and bond discounts are accreted and premiums
are amortized daily.
Dividend income is recognized on the ex-dividend date, except for certain
dividends from foreign securities, which are recorded as soon as the Fund is
informed of the ex-dividend date. Dividend income from foreign securities is
recorded net of foreign taxes withheld where recovery of such taxes is not
assured.
FOREIGN CURRENCY TRANSLATION
The accounting records are maintained in U.S. dollars. Assets, including
investment securities, and liabilities denominated in foreign currency are
translated into U.S. dollars at the prevailing rates of exchange at the date of
valuation. Purchases and sales of securities, and income and expenses are
translated at the prevailing rate of exchange on the respective dates of such
transactions. Reported net realized foreign exchange gains or losses arise from
sales of foreign currencies, currency gains or losses realized between the trade
and settlement dates on securities transactions, and the difference between the
amounts of dividends, interest and foreign withholding taxes recorded and the
U.S. dollar equivalent of the amounts actually paid or received. Net unrealized
foreign exchange gains and losses arise from changes in the fair value of assets
and liabilities other than investments in securities, at fiscal period-end,
resulting from changes in exchange rates.
225
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
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 at
fiscal period-end are not separately presented. Such changes are recorded with
net realized and unrealized gain from investments. Gains and losses from certain
foreign currency transactions are treated as ordinary income for U.S. federal
income tax purposes.
FEDERAL INCOME TAXES
Each Fund of the Trust is treated as a separate entity for federal income
tax purposes. The Funds of the Trust are not required to pay federal income
taxes on their net investment income and net capital gain as they are treated as
partnerships for federal income tax purposes. All interest, dividends, gains and
losses of a Fund are deemed to have been "passed through" to the interestholders
in proportion to their holdings of the Fund regardless of whether such interest,
dividends, or gains have been distributed by the Fund.
FORWARD FOREIGN CURRENCY CONTRACTS
The Funds may enter into forward foreign currency contracts to protect
against a possible loss resulting from an adverse change in the relationship
between foreign currencies and the U.S. dollar, or between foreign currencies. A
forward contract is an agreement between two counterparties for future delivery
or receipt of currency at a specified price. Risks arise from the possible
inability of counterparties to meet the terms of their contracts and from
movements in currency values. Realized gains or losses are recognized when the
transaction is completed. Contracts which have been offset but have not reached
their settlement date are included in unrealized gains and losses.
As of March 31, 2006, outstanding forward contracts were as follows:
Currency Currency Net Unrealized
Amount to be Amount to be Appreciation/
Portfolio Received Type of Currency Settlement Date Delivered (Depreciation)
- ----------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO 233,000 Australia Dollar 6/30/2006 $ 165,353 $ 1,215
290,000 Switzerland Franc 6/30/2006 225,365 (763)
907,000 Euro 6/30/2006 1,102,567 2,732
453,000 British Pound 6/30/2006 794,299 (6,315)
97,500,000 Japanese Yen 6/30/2006 845,877 (7,034)
- ----------------------------------------------------------------------------------------------------------------------------
FUTURES CONTRACTS
The Funds may purchase futures contracts to gain exposure to market
changes, which may be more efficient or cost effective than actually buying the
securities. A futures contract is an agreement between parties to buy or sell a
security at a set price on a future date. Upon entering into such a contract, a
Fund is required to pledge to the broker an amount of cash, U.S. Government
obligations or other high-quality debt securities equal to the minimum "initial
margin" requirements of the exchange on which the futures contract is traded.
Pursuant to the contract, the Fund agrees to receive from or pay to the broker
an amount of cash equal to the daily fluctuation in the value of the contract.
Such receipts or payments are known as "variation margin" and are recorded by
the Fund as unrealized gains or losses. When the contract is closed, the Fund
records a realized gain or loss equal to the difference between the value of the
contract at the time it was opened and the value at the time it was closed.
Pursuant to regulations and/or published positions of the Securities and
Exchange Commission (the "SEC") for long futures positions, the Fund is required
to segregate highly liquid securities as permitted by the SEC in connection with
futures transactions in an amount generally equal to the value of the underlying
contracts. Risks of entering into futures contracts include the possibility that
there may be an illiquid market and that a change in the value of the contract
may not correlate with changes in the value of the underlying securities. At
March 31, 2006, the following Funds held futures contracts:
Net Unrealized
Appreciation
Portfolio Contracts Type Expiration Date Notional Amount (Depreciation)
- -----------------------------------------------------------------------------------------------------------------------------
INDEX PORTFOLIO 34 Long S&P 500 June 2006 $11,046,350 $ 31,700
- -----------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO 31 Long DJ Eurostoxx 50 June 2006 1,413,941 2,138
11 Long FTSE 100 Index June 2006 1,149,480 (3,682)
8 Long TOPIX June 2006 1,095,009 80,600
- -----------------------------------------------------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO 14 Long Russell 2000 June 2006 5,215,375 187,225
- -----------------------------------------------------------------------------------------------------------------------------
SECURITY LOANS
The Funds may loan securities in return for securities, irrevocable
letters of credit or cash collateral, which is invested in various short-term
fixed income securities. A Fund may receive compensation for lending securities
in the form of fees or by retaining a portion of interest on the investment
securities or cash received as collateral. A Fund also continues to receive
interest or dividends on the securities loaned. Security loans are secured at
all times by collateral. The collateral is equal to at least 102% of the market
value of the securities loaned plus accrued interest when the transaction is
entered into. The collateral supporting loans of domestic and foreign equity
securities and corporate bonds are remarked daily while collateral supporting
loans of U.S. Government securities are remarked back to 102% only if the given
collateral falls below 100% of the market value of the securities loans plus any
accrued interest. Gain or loss in the market price of the securities loaned that
may occur during the term of the loan are reflected in the value of the Fund.
The risks from securities lending are that the borrower may
226
NOTES TO FINANCIAL STATEMENTS WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
not provide additional collateral when required or return the securities when
due or when called for by the Fund. Wells Fargo Bank, N.A., the Funds'
custodian, acts as the securities lending agent for the Funds and receives for
its services 30% of the revenues earned on the securities lending activities and
incurs all expenses. Prior to October 1, 2005, Wells Fargo Bank, N.A. received
35% of the revenues earned on the securities lending activities and incurred all
expenses. The value of the securities on loan and the value of the related
collateral at March 31, 2006, are shown on the Statement of Assets and
Liabilities.
3. EXPENSES
- --------------------------------------------------------------------------------
ADVISORY FEES
The Trust has entered into an advisory contract with Wells Fargo Funds
Management, LLC ("Funds Management"). The adviser is responsible for
implementing investment policies and guidelines and for supervising the
subadviser, who is responsible for day-to-day portfolio management.
Pursuant to the contract, Funds Management is entitled to receive an
advisory fee for its services as adviser. Funds Management may retain the
services of certain investment subadvisers to provide daily portfolio
management. The fees related to subadvisory services are borne directly by the
adviser and do not increase the overall fees paid by a Fund to the adviser.
Funds Management and the investment subadviser(s) are entitled to be paid a
monthly fee at the following annual rates:
Advisory Fees Subadvisory Fees
Average Daily (% of Average Average Daily (% of Average
Portfolio Net Assets Daily Net Assets) Subadviser Net Assets Daily Net Assets)
- ------------------------------------------------------------------------------------------------------------------------------------
C&B LARGE CAP First $500 million 0.750 Cooke & Bieler, L.P. First $250 million 0.450
VALUE PORTFOLIO Next $500 million 0.700 Next $250 million 0.400
Next $2 billion 0.650 Next $250 million 0.350
Next $2 billion 0.625 Over $750 million 0.300
Over $5 billion 0.600
- ------------------------------------------------------------------------------------------------------------------------------------
DISCIPLINED First $500 million 0.750 Smith Asset First $200 million 0.300
GROWTH PORTFOLIO Next $500 million 0.700 Management Next $300 million 0.200
Next $2 billion 0.650 Group, L.P. Over $500 million 0.150
Next $2 billion 0.625
Over $5 billion 0.600
- ------------------------------------------------------------------------------------------------------------------------------------
EQUITY INCOME First $500 million 0.750 Wells Capital First $100 million 0.350
PORTFOLIO* Next $500 million 0.700 Management Next $100 million 0.300
Next $2 billion 0.650 Incorporated Next $300 million 0.200
Next $2 billion 0.625 Over $500 million 0.150
Over $5 billion 0.600
- ------------------------------------------------------------------------------------------------------------------------------------
EQUITY VALUE First $500 million 0.750 Systematic Financial First $150 million 0.300
PORTFOLIO Next $500 million 0.700 Management L.P. Next $200 million 0.200
Next $2 billion 0.650 Next $400 million 0.150
Next $2 billion 0.625 Next $250 million 0.130
Over $5 billion 0.600 Over $1 billion 0.100
- ------------------------------------------------------------------------------------------------------------------------------------
INDEX PORTFOLIO* First $500 million 0.100 Wells Capital First $100 million 0.050
Next $500 million 0.100 Management Next $100 million 0.030
Next $2 billion 0.075 Incorporated Over $200 million 0.020
Next $2 billion 0.075
Over $5 billion 0.050
- ------------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL First $500 million 0.950 New Star First $50 million 0.350
CORE PORTFOLIO Next $500 million 0.900 Institutional Next $500 million 0.290
Next $2 billion 0.850 Managers Over $550 million 0.200
Next $2 billion 0.825 Limited
Over $5 billion 0.800
- ------------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL First $500 million 0.950 Artisan Partners First $250 million 0.700
GROWTH PORTFOLIO Next $500 million 0.900 Limited Partnership Over $250 million 0.500
Next $2 billion 0.850
Next $2 billion 0.825
Over $5 billion 0.800
- ------------------------------------------------------------------------------------------------------------------------------------
227
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
Advisory Fees Subadvisory Fees
Average Daily (% of Average Average Daily (% of Average
Portfolio Net Assets Daily Net Assets) Subadviser Net Assets Daily Net Assets)
- ------------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL First $500 million 0.350 SSgA Funds First $100 million 0.080
INDEX PORTFOLIO Next $500 million 0.350 Management Over $100 million 0.060
Next $2 billion 0.325
Next $2 billion 0.325
Over $5 billion 0.300
- ------------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL First $500 million 0.950 LSV Asset First $150 million 0.350
VALUE PORTFOLIO Next $500 million 0.900 Management Next $350 million 0.400
Next $2 billion 0.850 Next $250 million 0.350
Next $2 billion 0.825 Next $250 million 0.325
Over $5 billion 0.800 Over $1 billion 0.300
- ------------------------------------------------------------------------------------------------------------------------------------
LARGE CAP First $500 million 0.700 Cadence Capital First $250 million 0.300
APPRECIATION Next $500 million 0.700 Management LLC Next $250 million 0.200
PORTFOLIO Next $2 billion 0.650 Next $500 million 0.150
Next $2 billion 0.625 Over $1 billion 0.100
Over $5 billion 0.600
- ------------------------------------------------------------------------------------------------------------------------------------
LARGE COMPANY First $500 million 0.750 Peregrine Capital First $25 million 0.750
GROWTH PORTFOLIO Next $500 million 0.700 Management, Inc. Next $25 million 0.600
Next $2 billion 0.650 Next $225 million 0.500
Next $2 billion 0.625 Over $275 million 0.300
Over $5 billion 0.600
- ------------------------------------------------------------------------------------------------------------------------------------
SMALL CAP INDEX First $500 million 0.200 Wells Capital First $100 million 0.050
PORTFOLIO* Next $500 million 0.200 Management Next $100 million 0.030
Next $2 billion 0.175 Incorporated Over $200 million 0.020
Next $2 billion 0.175
Over $5 billion 0.150
- ------------------------------------------------------------------------------------------------------------------------------------
SMALL COMPANY First $500 million 0.900 Peregrine Capital First $50 million 0.900
GROWTH PORTFOLIO Next $500 million 0.850 Management, Inc. Next $130 million 0.750
Next $2 billion 0.800 Next $160 million 0.650
Next $2 billion 0.775 Next $345 million 0.500
Over $5 billion 0.750 Next $50 million 0.520
Over $735 million 0.550
- ------------------------------------------------------------------------------------------------------------------------------------
SMALL COMPANY First $500 million 0.900 Peregrine Capital First $175 million 0.500
VALUE PORTFOLIO Next $500 million 0.850 Management, Inc. Over $175 million 0.750
Next $2 billion 0.800
Next $2 billion 0.775
Over $5 billion 0.750
- ------------------------------------------------------------------------------------------------------------------------------------
STRATEGIC SMALL CAP First $500 million 0.900 Wells Capital First $200 million 0.450
VALUE PORTFOLIO Next $500 million 0.850 Management Over $200 million 0.400
Next $2 billion 0.800 Incorporated
Next $2 billion 0.775
Over $5 billion 0.750
- ------------------------------------------------------------------------------------------------------------------------------------
228
NOTES TO FINANCIAL STATEMENTS WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
* Effective January 1, 2006. Prior to January 1, 2006, Subadviser(s) were
entitled to be paid a monthly fee at the following rates:
Subadvisory
Average Daily Fees (% of Average
Portfolio Subadviser Net Assets Daily Net Assets)
- -------------------------------------------------------------------------------------------
EQUITY INCOME Wells Capital First $200 million 0.250
PORTFOLIO Management Next $200 million 0.200
Incorporated Over $400 million 0.150
- -------------------------------------------------------------------------------------------
INDEX PORTFOLIO Wells Capital First $200 million 0.020
Management Over $200 million 0.010
Incorporated
- -------------------------------------------------------------------------------------------
INTERNATIONAL GROWTH Artisan Partners All asset levels 0.700
PORTFOLIO Limited Partnership
- -------------------------------------------------------------------------------------------
SMALL CAP INDEX Wells Capital First $200 million 0.020
PORTFOLIO Management Over $200 million 0.010
Incorporated
ADMINISTRATION AND TRANSFER AGENT FEES
Currently, there are no administration or transfer agency fees charged to
the Master Trust.
CUSTODY FEES
The Trust has entered into a contract with Wells Fargo Bank, N.A. ("WFB"),
whereby WFB is responsible for providing custody services. Pursuant to the
contract, WFB is entitled to a monthly fee for custody services at the following
annual rates:
% of Average
Portfolio Daily Net Assets
- --------------------------------------------------------------------------------
INTERNATIONAL CORE PORTFOLIO 0.10
- --------------------------------------------------------------------------------
INTERNATIONAL GROWTH PORTFOLIO 0.10
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO 0.10
- --------------------------------------------------------------------------------
INTERNATIONAL VALUE PORTFOLIO 0.10
- --------------------------------------------------------------------------------
ALL OTHER FUNDS 0.02
- --------------------------------------------------------------------------------
TRANSACTIONS WITH AFFILIATES
For the period ended March 31, 2006, the following funds paid brokerage
commissions to an affiliated broker dealer:
Portfolio Broker Commission
- --------------------------------------------------------------------------------
Small Company Growth Portfolio $8,124
- --------------------------------------------------------------------------------
OTHER FEES
PFPC Inc. ("PFPC") serves as fund accountant for the Trust. PFPC currently
does not receive a fee for its services, but is entitled to be reimbursed for
all out-of-pocket expenses reasonably incurred in providing these services.
WAIVED FEES AND REIMBURSED EXPENSES
All amounts shown as waived fees or reimbursed expenses in the Statements
of Operations, for the year ended, were waived by Funds Management, first from
advisory fees, and then any remaining amount consecutively from custody fees
collected, if any.
229
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
4. INVESTMENT PORTFOLIO TRANSACTIONS
- --------------------------------------------------------------------------------
Purchases and sales of investments, exclusive of short-term securities
(securities with maturities of one year or less at purchase date) and U.S.
Government obligations for the period ended March 31, 2006, were as follows:
Portfolio Purchases at Cost Sales Proceeds
- --------------------------------------------------------------------------------
C&B LARGE CAP VALUE PORTFOLIO $114,601,117 $122,929,813
- --------------------------------------------------------------------------------
DISCIPLINED GROWTH PORTFOLIO 72,191,673 74,705,497
- --------------------------------------------------------------------------------
EQUITY INCOME PORTFOLIO 39,292,629 281,678,052
- --------------------------------------------------------------------------------
EQUITY VALUE PORTFOLIO 234,685,842 236,120,500
- --------------------------------------------------------------------------------
INDEX PORTFOLIO 155,433,837 71,287,796
- --------------------------------------------------------------------------------
INTERNATIONAL CORE PORTFOLIO 38,249,439 49,424,015
- --------------------------------------------------------------------------------
INTERNATIONAL GROWTH PORTFOLIO 75,779,748 90,739,551
- --------------------------------------------------------------------------------
INTERNATIONAL INDEX PORTFOLIO 2,641,220 17,680,311
- --------------------------------------------------------------------------------
INTERNATIONAL VALUE PORTFOLIO 14,540,851 26,882,236
- --------------------------------------------------------------------------------
LARGE CAP APPRECIATION PORTFOLIO 106,403,724 105,748,284
- --------------------------------------------------------------------------------
LARGE COMPANY GROWTH PORTFOLIO 90,177,225 464,592,490
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO 39,795,161 43,091,348
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO 611,682,946 650,005,416
- --------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO 358,738,527 444,207,613
- --------------------------------------------------------------------------------
STRATEGIC SMALL CAP VALUE PORTFOLIO 198,451,603 11,097,867
- --------------------------------------------------------------------------------
230
OTHER INFORMATION (UNAUDITED) WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
PROXY VOTING INFORMATION
A description of the policies and procedures that the Funds use to
determine how to vote proxies relating to portfolio securities and information
regarding how to obtain the results of such voting during the most recent
12-month period ended June 30 is available without charge, upon request, by
calling 1-800-222-8222, visiting our Web site at
WWW.WELLSFARGO.COM/ADVANTAGEFUNDS, or visiting the SEC Web site at WWW.SEC.GOV.
PORTFOLIO HOLDINGS INFORMATION
The complete portfolio holdings for each Fund are publicly available on
the Funds' Web site (WWW.WELLSFARGO.COM/ADVANTAGEFUNDS) on a monthly, 30-day or
more delayed basis. In addition, top ten holdings information for each Fund is
publicly available on the Funds' Web site on a monthly, seven-day or more
delayed basis. Each Fund files its complete schedule of portfolio holdings with
the SEC for the first and third quarters of each fiscal year on Form N-Q, which
is available without charge by visiting the SEC Web site at WWW.SEC.GOV. In
addition, each Fund's Form N-Q may be reviewed and copied at the SEC's Public
Reference Room in Washington, DC, and at regional offices in New York City, at
233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900.
Information about the Public Reference Room may be obtained by calling
1-800-SEC-0330.
BOARD OF TRUSTEES
The following table provides basic information about the Board of Trustees
(the "Trustees") of the Wells Fargo Funds Trust (the "Trust"). This table
supplements, and should be read in conjunction with, the Prospectus and the
Statement of Additional Information* of each Fund. Each of the Trustees listed
below acts in identical capacities for each of the 139 funds comprising the
Trust, Wells Fargo Variable Trust and Wells Fargo Master Trust (collectively the
"Fund Complex"). All of the non-interested Trustees are also members of the
Audit and Governance Committees of each Trust in the Fund Complex. The 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.
NON-INTERESTED TRUSTEES
- ----------------------------------------------------------------------------------------------------------------
POSITION HELD AND PRINCIPAL OCCUPATIONS DURING
NAME AND AGE LENGTH OF SERVICE** PAST FIVE YEARS OTHER DIRECTORSHIPS
- ----------------------------------------------------------------------------------------------------------------
Thomas S. Goho Trustee, since 1987 Chair of Finance, Wake Forest None
63 University, since 2006. Benson-
Pruitt Professorship, Wake Forest
University, Calloway School of
Business and Accountancy, since
1999.
- ----------------------------------------------------------------------------------------------------------------
Peter G. Gordon Trustee, since 1998 Chairman, CEO, and Co-Founder of None
63 (Chairman, since 2005) Crystal Geyser Water Company, and
President of Crystal Geyser Roxane
Water Company.
- ----------------------------------------------------------------------------------------------------------------
Richard M. Leach Trustee, since 1987 Retired. Prior thereto, President None
72 of Richard M. Leach Associates (a
financial consulting firm).
- ----------------------------------------------------------------------------------------------------------------
Olivia S. Mitchell Trustee, since 2006 Professor of Insurance and Risk None
53 Management, Wharton School,
University of Pennsylvania.
Director of the Boettner Center on
Pensions and Retirement. Research
Associate and Board Member, Penn
Aging Research Center. Research
Associate, National Bureau of
Economic Research.
- ----------------------------------------------------------------------------------------------------------------
Timothy J. Penny Trustee, since 1996 Senior Counselor to the public None
54 relations firm of Himle-Horner,
and Senior Fellow at the Humphrey
Institute, Minneapolis, Minnesota
(a public policy organization).
- ----------------------------------------------------------------------------------------------------------------
Donald C. Willeke Trustee, since 1996 Principal of the law firm of None
65 Willeke & Daniels.
231
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS OTHER INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
INTERESTED TRUSTEE***
- ----------------------------------------------------------------------------------------------------------------
POSITION HELD AND PRINCIPAL OCCUPATIONS DURING
NAME AND AGE LENGTH OF SERVICE** PAST FIVE YEARS OTHER DIRECTORSHIPS
- ----------------------------------------------------------------------------------------------------------------
J. Tucker Morse Trustee, since 1987 Private Investor/Real Estate None
61 Developer. Prior thereto,
Chairman of White Point Capital,
LLC until 2005.
- ----------------------------------------------------------------------------------------------------------------
OFFICERS
- ----------------------------------------------------------------------------------------------------------------
POSITION HELD AND PRINCIPAL OCCUPATIONS DURING
NAME AND AGE LENGTH OF SERVICE PAST FIVE YEARS OTHER DIRECTORSHIPS
- ----------------------------------------------------------------------------------------------------------------
Karla M. Rabusch President, since 2003 Executive Vice President of None
46 Wells Fargo Bank, N.A. and
President of Wells Fargo Funds
Management, LLC. Senior Vice
President and Chief
Administrative Officer of
Wells Fargo Funds Management,
LLC from 2001 to 2003.
- ----------------------------------------------------------------------------------------------------------------
C. David Messman Secretary, since 2000 Vice President and Managing None
45 Senior Counsel of Wells Fargo
Bank, N.A. and Senior Vice
President and Secretary of Wells
Fargo Funds Management, LLC.
Vice President and Senior Counsel
of Wells Fargo Bank, N.A. from
1996 to 2003.
- ----------------------------------------------------------------------------------------------------------------
A. Erdem Cimen Treasurer, since 2006 Vice President of Wells None
32 Fargo Bank, N.A. and Vice
President of Financial
Operations for Wells Fargo
Funds Management, LLC. Vice
President and Group Finance
Officer of Wells Fargo Bank,
N.A. Auto Finance Group from
2004 to 2006. Vice President of
Portfolio Risk Management for
Wells Fargo Bank, N.A. Auto
Finance Group in 2004. Vice
President of Portfolio Research
and Analysis for Wells Fargo
Bank, N.A. Auto Finance Group
from 2001 to 2004. Director of
Small Business Services Risk
Management for American Express
Travel Related Services from
2000 to 2001.
- ----------------------------------------------------------------------------------------------------------------
* The Statement of Additional Information includes additional information
about the Funds' Trustees and is available, without charge, upon request,
by calling 1-800-222-8222 or by visiting the Funds' Web site at
WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
** Length of service dates reflects a Trustee's commencement of service with
the Trust's predecessor entities.
*** As of March 31, 2006, one of the seven Trustees is considered an
"interested person" of the Trusts as defined in the Investment Company Act
of 1940. The interested Trustee, J. Tucker Morse, is affiliated with a
government securities dealer that is registered under the Securities
Exchange Act of 1934, which is not itself affiliated with Wells Fargo
Funds Management, LLC.
232
OTHER INFORMATION (UNAUDITED) WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
- --------------------------------------------------------------------------------
BOARD CONSIDERATION OF AND CONTINUATION OF INVESTMENT ADVISORY AND SUBADVISORY
AGREEMENTS:
C&B LARGE CAP VALUE FUND, DIVERSIFIED EQUITY FUND, DIVERSIFIED SMALL CAP FUND,
EQUITY INCOME FUND, EQUITY VALUE FUND, GROWTH EQUITY FUND, INTERNATIONAL VALUE
FUND, LARGE CAP APPRECIATION FUND, LARGE COMPANY GROWTH FUND, SMALL COMPANY
GROWTH FUND, SMALL COMPANY VALUE FUND, C&B LARGE CAP VALUE PORTFOLIO,
DISCIPLINED GROWTH PORTFOLIO, EQUITY INCOME PORTFOLIO, EQUITY VALUE PORTFOLIO,
INDEX PORTFOLIO, INTERNATIONAL CORE PORTFOLIO, INTERNATIONAL GROWTH PORTFOLIO,
INTERNATIONAL INDEX PORTFOLIO, INTERNATIONAL VALUE PORTFOLIO, LARGE CAP
APPRECIATION PORTFOLIO, LARGE COMPANY GROWTH PORTFOLIO, SMALL CAP INDEX
PORTFOLIO, SMALL COMPANY GROWTH PORTFOLIO, SMALL COMPANY VALUE PORTFOLIO AND
STRATEGIC SMALL CAP VALUE PORTFOLIO
- --------------------------------------------------------------------------------
Section 15(c) of the Investment Company Act of 1940 (the "1940 Act")
contemplates that the Boards of Trustees (each, a "Board" and collectively, the
"Boards") of Wells Fargo Funds Trust and Wells Fargo Master Trust (each, a
"Trust" and collectively, the "Trusts"), including a majority of the Trustees
who have no direct or indirect interest in the investment advisory and
subadvisory agreements and are not "interested persons" of each Trust, as
defined in the 1940 Act (the "Independent Trustees"), will annually review and
consider the continuation of the investment advisory and subadvisory agreements.
In this regard, the Boards reviewed and re-approved, during the most recent six
months covered by this report: (i) an investment advisory agreement with Wells
Fargo Funds Management, LLC ("Funds Management") for the C&B Large Cap Value
Fund, Diversified Equity Fund, Diversified Small Cap Fund, Equity Income Fund,
Equity Value Fund, Growth Equity Fund, International Value Fund, Large Cap
Appreciation Fund, Large Company Growth Fund, Small Company Growth Fund, Small
Company Value Fund, C&B Large Cap Value Portfolio, Disciplined Growth Portfolio,
Equity Income Portfolio, Equity Value Portfolio, Index Portfolio, International
Core Portfolio, International Growth Portfolio, International Index Portfolio,
International Value Portfolio, Large Cap Appreciation Portfolio, Large Company
Growth Portfolio, Small Cap Index Portfolio, Small Company Growth Portfolio,
Small Company Value Portfolio and Strategic Small Cap Value Portfolio (the
"Funds"); (ii) an investment subadvisory agreement with Wells Capital Management
Incorporated ("Wells Capital Management") for the Diversified Equity Fund,
Diversified Small Cap Fund, Equity Income Fund, Growth Equity Fund, Equity
Income Portfolio, Index Portfolio, Small Cap Index Portfolio and Strategic Small
Cap Value Portfolio; (iii) an investment subadvisory agreement with Artisan
Partners Limited Partnership ("Artisan") for the International Growth Portfolio;
(iv) an investment subadvisory agreement with Cadence Capital Management, LLC
("Cadence") for the Large Cap Appreciation Portfolio; (v) an investment
subadvisory agreement with Cooke & Bieler, L.P. ("Cooke & Bieler") for the C&B
Large Cap Value Portfolio; (vi) an investment subadvisory agreement with LSV
Asset Management ("LSV") for the International Value Fund and International
Value Portfolio; (vii) an investment subadvisory agreement with New Star
Institutional Managers Limited ("New Star") for the International Core
Portfolio; (viii) an investment subadvisory agreement with Peregrine Capital
Management, Inc. ("Peregrine") for the Diversified Equity Fund, Diversified
Small Cap Fund, Growth Equity Fund, Large Company Growth Fund, Small Company
Growth Fund, Small Company Value Fund, Large Company Growth Portfolio, Small
Company Growth Portfolio and Small Company Value Portfolio; (ix) an investment
subadvisory agreement with Smith Asset Management Group ("Smith") for the
Diversified Equity Fund, Growth Equity Fund and Disciplined Growth Portfolio;
(x) an investment subadvisory agreement with SSgA Funds Management ("SSgA") for
the International Index Portfolio; and (xi) an investment subadvisory agreement
with Systematic Financial Management, L.P. ("Systematic") for the Equity Value
Fund and Equity Value Portfolio. The investment advisory agreements with Funds
Management and the investment subadvisory agreements with Wells Capital
Management, Artisan, Cadence, Cooke & Bieler, LSV, New Star, Peregrine, Smith,
SSgA and Systematic (the "Subadvisers") are collectively referred to as the
"Advisory Agreements."
More specifically, at meetings held on March 31, 2006, the Boards,
including the Independent Trustees advised by their independent legal counsel,
considered the factors and reached the conclusions described below relating to
the selection of Funds Management and the Subadvisers and the continuation of
the Advisory Agreements. Prior to the March 31, 2006 meetings, the Boards,
including the Independent Trustees, met in person and telephonically a number of
times, both with Funds Management and in private sessions relating to the
advisory contract approvals. The Independent Trustees were assisted in their
evaluation of the Advisory Agreements by independent legal counsel, from whom
they received separate legal advice and with whom they met separately from Funds
Management.
Because the Diversified Equity Fund, Diversified Small Cap Fund and Growth
Equity Fund are gateway blended funds that invest all of their assets in the
portfolios identified above and the C&B Large Cap Value Fund, Equity Income
Fund, Equity Value Fund, International Value Fund, Large Cap Appreciation Fund,
Large Company Growth Fund, Small Company Growth Fund and Small Company Value
Fund are gateway feeder funds that invest all of their assets in one of the
portfolios identified above, which has a substantially similar investment
objective and substantially similar investment strategies to the respective
Fund, information provided to the Boards regarding these Funds is also
applicable to the portfolios identified above, as relevant.
233
WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS OTHER INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
NATURE, EXTENT AND QUALITY OF SERVICES
- --------------------------------------------------------------------------------
The Boards received and considered various data and information regarding
the nature, extent and quality of services provided to the Funds by Funds
Management and the Subadvisers under the Advisory Agreements. The Boards also
received and considered responses of Funds Management and the Subadvisers to a
detailed set of requests submitted by the Independent Trustees' independent
legal counsel on behalf of such Trustees. The Boards reviewed and considered the
data and information, which included, among other things, information about the
background and experience of senior management and the expertise of, and amount
of attention devoted to the Funds by, investment personnel of Funds Management
and the Subadvisers. In this regard, the Boards specifically reviewed the
qualifications, backgrounds and responsibilities of the portfolio managers
primarily responsible for day-to-day portfolio management services for the
Funds.
The Boards evaluated the ability of Funds Management and the Subadvisers,
based on their respective resources, reputations and other attributes, to
attract and retain highly qualified investment professionals, including
research, advisory, and supervisory personnel. In this regard, the Boards
considered information regarding Funds Management's and the Subadviser's
compensation program for its personnel involved in the management of the Funds.
The Boards further considered the compliance programs and compliance
records of Funds Management and the Subadvisers. In addition, the Boards took
into account the administrative services provided to the Funds by Funds
Management and its affiliates. In considering these matters, the Boards
considered not only the specific information presented in connection with the
meetings, but also the knowledge gained over the course of interacting with
Funds Management about various topics, including Funds Management's oversight of
service providers, such as the investment subadvisers.
Based on the above factors, together with those referenced below, each of
the Boards concluded that it was generally satisfied with the nature, extent and
quality of the investment advisory services provided to the Funds by Funds
Management and the Subadvisers.
FUND PERFORMANCE AND EXPENSES
- --------------------------------------------------------------------------------
The Boards considered the performance results for each of the Funds over
various time periods ended December 31, 2005. They also considered these results
in comparison to the median performance results of the group of funds that was
determined by Lipper Inc. ("Lipper") to be the most similar to a given Fund (the
"Peer Group") and to the median performance of a broader universe of relevant
funds as determined by Lipper (the "Universe"), as well as to each Fund's
benchmark index. Lipper is an independent provider of investment company data.
The Boards were provided with a description of the methodology used by Lipper to
select the mutual funds in each Fund's Peer Group and Universe.
The Boards noted that the performance of each Fund was better than, or not
appreciably below, the median performance of each Fund's Peer Group for most
time periods. The Boards noted that the performance of the Equity Income Fund,
International Value Fund, Large Company Growth Fund and Small Company Growth
Fund was lower than the median performance of each Fund's Peer Group for most
time periods and that the performance of the C&B Large Cap Value Fund for the
recent periods was lower than the median performance of the Fund's Peer Group
and that these Funds required further monitoring. Accordingly, the Wells Fargo
Funds Trust Board asked for a continued report on the performance of the C&B
Large Cap Value Fund, Equity Income Fund, Large Company Growth Fund and Small
Company Growth Fund. Upon further review, the Wells Fargo Funds Trust Board
noted that the Equity Income Fund's performance had improved during 2005 and
that the Large Company Growth Fund's performance had improved in the latter half
of 2005 into 2006. The Boards also noted that C&B Large Cap Value Fund's
underweight position in energy and utilities stocks was the primary factor
contributing to the C&B Large Cap Value Fund's relative underperformance. The
Board asked for continuing reports on these Funds.
The Boards received and considered information regarding the Funds' net
operating expense ratios and their various components, including contractual
advisory fees, actual advisory fees, actual non-management fees, Rule 12b-1 and
non-Rule 12b-1 service fees, fee waivers/caps and/or expense reimbursements.
They also considered comparisons of these fees to the expense information for
the Funds' Peer Group and Universe, which comparative data was provided by
Lipper. The Boards noted that the net operating expense ratios of the Funds,
except for certain classes of the Growth Equity Fund and Large Company Growth
Fund, were lower than, equal to, or not appreciably higher than, each Fund's
Peer Group's median net operating expense ratios. The Boards noted that the net
operating expense ratios for certain classes of the Growth Equity Fund and Large
Company Growth Fund were higher than their Peer Groups' median net operating
expense ratios, but the Board further noted that the Advisory Agreement Rates
(as defined below) were within a reasonable range of the median rates of each
Fund's Peer Group. In addition, the Boards considered that the other funds in
the Growth Equity Fund's Peer Group may not be similar enough to the Growth
Equity Fund in that the Fund has large cap, small cap and international
portfolio holdings, resulting in a higher blended expense ratio than the multi
cap value funds used in the Peer Group.
234
OTHER INFORMATION (UNAUDITED) WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
- --------------------------------------------------------------------------------
Based on the above-referenced considerations and other factors, the Boards
concluded that the overall performance and expense results supported the
re-approval of the Advisory Agreements for the Funds.
INVESTMENT ADVISORY AND SUBADVISORY FEE RATES
- --------------------------------------------------------------------------------
The Boards reviewed and considered the contractual investment advisory fee
rates payable by the Funds to Funds Management for investment advisory services,
both on a stand-alone basis and on a combined basis with the Funds'
administration fee rates (the "Advisory Agreement Rates"). The Boards took into
account the separate administrative services covered by the administration fee
rates. The Boards also reviewed and considered the contractual investment
subadvisory fee rates (the "Subadvisory Agreement Rates") payable by Funds
Management to the Subadvisers for investment subadvisory services. In addition,
the Boards reviewed and considered the existing fee waiver/cap arrangements
applicable to the Advisory Agreement Rates and considered the Advisory Agreement
Rates after taking the waivers/caps into account (the "Net Advisory Rates").
The Boards received and considered information comparing the Advisory
Agreement Rates and Net Advisory Rates with those of the other funds in the Peer
Group. The Boards noted that the Advisory Agreement Rates and the Net Advisory
Rates for the Funds were lower than, or not appreciably higher than, the median
rates of the Funds' Peer Group. In addition, the Boards concluded that the
combined investment advisory/administration fee rates for the Funds (before and
after waivers/caps and/or expense reimbursements) were reasonable in relation to
the Funds' Peer Group, and reasonable in relation to the services provided.
The Boards also reviewed and considered the Subadvisory Agreement Rates
and concluded that the Subadvisory Agreement Rates were fair and equitable,
based on their consideration of the factors described above.
PROFITABILITY
- --------------------------------------------------------------------------------
The Boards received and considered a detailed profitability analysis of
Funds Management based on the Advisory Agreement Rates and the Net Advisory
Rates, as well as on other relationships between the Funds on the one hand and
Funds Management affiliates on the other. The Boards concluded that, in light of
the costs of providing investment management and other services to the Funds,
the profits and other ancillary benefits that Funds Management and its
affiliates received with regard to providing these services to the Funds were
not unreasonable.
The Boards did not consider a separate profitability analysis of Wells
Capital Management, Peregrine and Smith, as their separate profitability from
their relationships with the Diversified Equity Fund, Diversified Small Cap
Fund, Equity Income Fund, Growth Equity Fund, Large Company Growth Fund, Small
Company Growth Fund Small Company Value Fund, Disciplined Growth Portfolio,
Equity Income Portfolio, Index Portfolio, Small Cap Index Portfolio, Large
Company Growth Portfolio, Small Company Growth Portfolio, Small Company Value
Portfolio and Strategic Small Cap Value Portfolio was not a material factor in
determining whether to renew the agreements. The Boards did not consider
profitability information with respect to Artisan, Cadence, Cooke & Bieler, LSV,
New Star, SSgA and Systematic, which are not affiliated with Funds Management.
The Boards considered that the subadvisory fees paid to Artisan, Cadence, Cooke
& Bieler, LSV, New Star, SSgA and Systematic, had been negotiated by Funds
Management on an arm's length basis and that Artisan's, Cadence's, Cooke &
Bieler's, LSV's, New Star's, SSgA's and Systematic's separate profitability from
their relationships with the Equity Value Fund, International Value Fund, C&B
Large Cap Value Portfolio, Equity Value Portfolio, International Core Portfolio,
International Growth Portfolio, International Index Portfolio, International
Value Portfolio and Large Cap Appreciation Portfolio, was not a material factor
in determining whether to renew the agreements.
ECONOMIES OF SCALE
- --------------------------------------------------------------------------------
The Boards received and considered general information regarding whether
there have been economies of scale with respect to the management of the Funds,
whether the Funds have appropriately benefited from any economies of scale, and
whether there is potential for realization of any further economies of scale.
The Boards acknowledged the inherent limitations of any analysis of an
investment adviser's economies of scale and of any attempt to correlate
breakpoints with such economies, stemming largely from the Boards' understanding
that economies of scale are realized, if at all, by an investment adviser across
a variety of products and services, not just in respect to a single fund. The
Boards concluded that any actual or potential economies of scale are, or will
be, shared reasonably with Fund shareholders/interestholders, most particularly
through Advisory Agreement Rate breakpoints applicable to the Funds.
INFORMATION ABOUT SERVICES TO OTHER CLIENTS
- --------------------------------------------------------------------------------
The Board also received and considered information about the nature and
extent of services and fee rates offered by Funds Management to other similarly
situated series of the Trusts, and those offered by the Subadvisers to other
clients, including other registered investment companies and separate accounts.
The Board concluded that the Advisory Agreement Rates, the Subadvisory Agreement
Rates and the Net Advisory Rates were within a reasonable range of the fee rates
offered to others by Funds Management and the Subadvisers, giving effect to
differences in services covered by such fee rates.
235
WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS OTHER INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
OTHER BENEFITS TO FUNDS MANAGEMENT AND THE SUBADVISERS
- --------------------------------------------------------------------------------
The Boards received and considered information regarding potential
"fall-out" or ancillary benefits received by Funds Management and its affiliates
and the Subadvisers as a result of their relationship with the Funds. Such
benefits could include, among others, benefits directly attributable to the
relationship of Funds Management and the Subadvisers with the Funds and benefits
potentially derived from an increase in Funds Management's and the Subadvisers'
business as a result of their relationship with the Funds (such as the ability
to market to shareholders/interestholders other financial products offered by
Funds Management and its affiliates or the Subadvisers and their affiliates).
The Boards also considered the effectiveness of the policies of the Funds
in achieving the best execution of portfolio transactions, whether and to what
extent soft dollar credits are sought and how any such credits are utilized, any
benefits that may be realized by using an affiliated broker, the extent to which
efforts are made to recapture transaction costs, and the controls applicable to
brokerage allocation procedures. The Boards also reviewed Funds Management's and
the Subadvisers' methods for allocating portfolio investment opportunities among
the Funds and other clients.
OTHER FACTORS AND BROADER REVIEW
- --------------------------------------------------------------------------------
The Boards also considered the markets for distribution of the Funds,
including the principal channels through which the Funds' shares/interests are
offered and sold. The Boards noted that the Funds are part of one of the few
fund families that have both direct-to-fund and intermediary distribution.
As discussed above, the Boards reviewed detailed materials received from
Funds Management and the Subadvisers annually as part of the re-approval process
under Section 15(c) of the 1940 Act. The Boards also review and assess the
quality of the services that the Funds receive throughout the year. In this
regard, the Boards review reports of Funds Management and the Subadvisers at
each of their quarterly meetings, which include, among other things, a portfolio
review and fund performance reports. In addition, the Boards confer with the
portfolio managers of the Funds at various times throughout the year.
After considering the above-described factors and based on its
deliberations and its evaluation of the information described above, the Boards
concluded that approval of the continuation of the Advisory Agreements for the
Funds was in the best interest of the Funds and its
shareholders/interestholders. Accordingly, the Boards unanimously approved the
continuation of the Advisory Agreements for an additional one-year period.
236
LIST OF ABBREVIATIONS WELLS FARGO ADVANTAGE EQUITY GATEWAY FUNDS
- --------------------------------------------------------------------------------
The following is a list of common abbreviations for terms and entities which may
have appeared in this report.
ABAG -- Association of Bay Area Governments
ADR -- American Depositary Receipt
AMBAC -- American Municipal Bond Assurance Corporation
AMT -- Alternative Minimum Tax
ARM -- Adjustable Rate Mortgages
BART -- Bay Area Rapid Transit
CDA -- Community Development Authority
CDSC -- Contingent Deferred Sales Charge
CGIC -- Capital Guaranty Insurance Company
CGY -- Capital Guaranty Corporation
CMT -- Constant Maturity Treasury
COFI -- Cost of Funds Index
Connie Lee -- Connie Lee Insurance Company
COP -- Certificate of Participation
CP -- Commercial Paper
CTF -- Common Trust Fund
DW&P -- Department of Water & Power
DWR -- Department of Water Resources
EDFA -- Education Finance Authority
FFCB -- Federal Farm Credit Bank
FGIC -- Financial Guaranty Insurance Corporation
FHA -- Federal Housing Authority
FHLB -- Federal Home Loan Bank
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
FRN -- Floating Rate Notes
FSA -- Financial Security Assurance, Inc
GDR -- Global Depositary Receipt
GNMA -- Government National Mortgage Association
GO -- General Obligation
HFA -- Housing Finance Authority
HFFA -- Health Facilities Financing Authority
IDA -- Industrial Development Authority
IDR -- Industrial Development Revenue
LIBOR -- London Interbank Offered Rate
LLC -- Limited Liability Corporation
LOC -- Letter of Credit
LP -- Limited Partnership
MBIA -- Municipal Bond Insurance Association
MFHR -- Multi-Family Housing Revenue
MUD -- Municipal Utility District
MTN -- Medium Term Note
PCFA -- Pollution Control Finance Authority
PCR -- Pollution Control Revenue
PFA -- Public Finance Authority
PLC -- Private Placement
PSFG -- Public School Fund Guaranty
RDA -- Redevelopment Authority
RDFA -- Redevelopment Finance Authority
REITS -- Real Estate Investment Trusts
R&D -- Research & Development
SFHR -- Single Family Housing Revenue
SFMR -- Single Family Mortgage Revenue
SLMA -- Student Loan Marketing Association
STEERS -- Structured Enhanced Return Trust
TBA -- To Be Announced
TRAN -- Tax Revenue Anticipation Notes
USD -- Unified School District
V/R -- Variable Rate
WEBS -- World Equity Benchmark Shares
XLCA -- XL Capital Assurance
237
[LOGO]
WELLS ADVANTAGE
FARGO FUNDS
More information about WELLS FARGO This report and the financial
ADVANTAGE FUNDS(SM) is available free statements contained herein are
upon request. To obtain literature, submitted for the general
please write, e-mail, visit the information of the shareholders of
Funds' Web site, or call: WELLS FARGO ADVANTAGE FUNDS. If
this report is used for promotional
WELLS FARGO ADVANTAGE FUNDS purposes, distribution of the
P.O. Box 8266 report must be accompanied or
Boston, MA 02266-8266 preceded by a current prospectus.
For a prospectus containing more
E-mail: wfaf@wellsfargo.com complete information, including
Web site: www.wellsfargo.com/ charges and expenses, call
advantagefunds 1-800-222-8222 or visit the Funds'
Retail Investment Professionals: Web site at
1-888-877-9275 www.wellsfargo.com/advantagefunds.
Institutional Investment Professionals: Please consider the investment
1-866-765-0778 objective, risks, charges, and
expenses of the investment
carefully before investing. This
and other information about WELLS
FARGO ADVANTAGE FUNDS can be found
in the current prospectus. Read the
prospectus carefully before you
invest or send money.
Wells Fargo Funds Management, LLC,
a wholly owned subsidiary of Wells
Fargo & Company, provides
investment advisory and
administrative services for WELLS
FARGO ADVANTAGE FUNDS. Other
affiliates of Wells Fargo & Company
provide sub-advisory and other
services for the Funds. The Funds
are distributed by WELLS FARGO
FUNDS DISTRIBUTOR, LLC, Member
NASD/SIPC, an affiliate of Wells
Fargo & Company.
-------------------------------------------------------
NOT FDIC INSURED o NO BANK GUARANTEE o MAY LOSE VALUE
-------------------------------------------------------
- --------------------------------------------------------------------------------
(C) 2006 Wells Fargo | www.wellsfargo.com/advantagefunds | RT056263 05-31
Advantage Funds, LLC. | | SEGF/SAR111 03/06
All rights reserved. | |
[LOGO]
WELLS ADVANTAGE
FARGO FUNDS
- --------------------------------------------------------------------------------
MARCH 31, 2006
- --------------------------------------------------------------------------------
Semi-Annual Report
[PHOTO OMITTED]
- --------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE INDEX FUND
WELLS FARGO ADVANTAGE INDEX FUND
- --------------------------------------------------------------------------------
Table of Contents
Letter to Shareholders .................................................... 1
- --------------------------------------------------------------------------------
Performance Highlights
- --------------------------------------------------------------------------------
Index Fund ............................................................. 2
Fund Expenses (Unaudited) ................................................. 4
- --------------------------------------------------------------------------------
Portfolio of Investments
- --------------------------------------------------------------------------------
Index Fund ............................................................. 5
Financial Statements
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities .................................... 6
Statement of Operations ................................................ 7
Statements of Changes in Net Assets .................................... 8
Financial Highlights ................................................... 10
Notes to Financial Highlights .......................................... 12
Notes to Financial Statements ............................................. 13
- --------------------------------------------------------------------------------
Master Portfolios
Portfolio of Investments
- --------------------------------------------------------------------------------
Index Portfolio ........................................................ 17
Financial Statements
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities .................................... 34
Statement of Operations ................................................ 35
Statements of Changes in Net Assets .................................... 36
Financial Highlights ................................................... 37
Notes to Financial Statements ............................................. 38
- --------------------------------------------------------------------------------
Other Information (Unaudited) ............................................. 41
- --------------------------------------------------------------------------------
List of Abbreviations ..................................................... 46
- --------------------------------------------------------------------------------
-------------------------------------------------
NOT FDIC INSURED-NO BANK GUARANTEE-MAY LOSE VALUE
-------------------------------------------------
THIS PAGE IS INTENTIONALLY LEFT BLANK --
LETTER TO SHAREHOLDERS WELLS FARGO ADVANTAGE INDEX FUND
- --------------------------------------------------------------------------------
DEAR VALUED SHAREHOLDER,
Enclosed please find the WELLS FARGO ADVANTAGE INDEX FUND semi-annual
report for the six-month period that ended March 31, 2006. On the following
pages, you will find the portfolio manager's discussion of the Fund that
includes performance highlights, changes to the Fund, and his strategic outlook.
You will also find facts and figures about the Fund.
ECONOMIC OVERVIEW
- --------------------------------------------------------------------------------
The U.S. economy continued to show signs of strength, even though real
Gross Domestic Product (GDP) grew at a rate of only 1.7% for the fourth quarter
of 2005. Volatile energy prices led to subpar performance for the sector during
the six-month period, but overall stock market performance was solid with the
S&P 500 Index reporting gains in excess of 6%. Financials and industrials were
leaders among the different sectors.
During the first quarter of 2006, economic growth gained momentum with
preliminary estimates pegging GDP growth at a rate of 5%. The strong growth came
despite continued interest rate hikes by the Federal Reserve Board (the Fed).
The Federal funds rate as of the end of March stood at 4.75%. Mortgage interest
rates inched upward by about half a percentage point by the close of the first
quarter of 2006. Data on mortgage applications, the number of homes listed for
sale, and median sale prices confirmed that the housing market had lost some of
its impetus. Sluggish housing sales were seen in the condominium markets and in
regions that experienced rapid price appreciation. Sales of single-family homes
held up well, but speculative demand for housing has definitely cooled.
STOCKS REMAIN INCONSISTENT
- --------------------------------------------------------------------------------
Strong corporate earnings helped the equity markets in the fourth quarter
of 2005 while record prices for crude oil and concerns of a slowdown in
worldwide economic growth capped and often reversed rallies. Nevertheless, in
the United States, the fundamentals of strong earnings and low inflation kept
the equity markets steady overall in 2005.
During the first month of 2006, equity markets surged higher as
speculation surfaced that the Fed might stop raising interest rates and move to
a more neutral interest rate environment. Almost all domestic and international
indices reported positive numbers for January. While many of the same indices
saw a decline in performance for February, some stayed in positive territory.
In March, almost every equity market index moved higher to produce the
best first quarter results for the S&P 500 Index and the Dow Jones Industrial
Average since 1999 and 2002, respectively. The NASDAQ ended the first quarter of
2006 at a five-year high. International markets remained strong and continued to
lead most domestic markets.
LOOKING AHEAD
- --------------------------------------------------------------------------------
Even though equities enjoyed a first-quarter rally in 2006, high energy
prices and rising interest rates may eventually slow investor enthusiasm for
stocks. We may see long-term interest rates move higher, though their increases
could be restrained if inflation remains steady and investor confidence does not
falter. These are just a few of the reasons why we believe that successful
investing includes taking a balanced approach by maintaining a portfolio that is
diversified among stocks and bonds and keeping a long-term perspective. While
diversification may not prevent losses in a downturn, it may help reduce them
and keep you on track to reach your financial goals. To help you reach your
diversification goals, we offer funds across every key category, each guided by
skillful, independent money managers--our subadvisers--chosen for their focused
attention to a particular investment style. We believe that our insistence on
seeking skillful, independent money managers who share our dedication to
pursuing consistent, long-term results offers our investors the firm footing
they need to navigate changing market conditions as they move forward to their
financial destinations.
Thank you for choosing WELLS FARGO ADVANTAGE FUNDS(SM)--we appreciate your
confidence in us. If you have any questions about your investment, please
contact your investment professional, or call us at 1-800-222-8222. You may also
visit our Web site at WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
Sincerely,
/s/ Karla M. Rabusch
Karla M. Rabusch
President
WELLS FARGO ADVANTAGE FUNDS
1
WELLS FARGO ADVANTAGE INDEX FUND PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The WELLS FARGO ADVANTAGE INDEX FUND (the Fund) seeks to replicate the
total rate of return of the S&P 500 Index 2, before fees and expenses.
ADVISER SUBADVISER
Wells Fargo Funds Management, LLC Wells Capital Management Incorporated
FUND MANAGER FUND INCEPTION DATE
Gregory T. Genung, CFA 01/31/1987
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Administrator Class shares returned 6.26% 1 for the six-month
period ending March 31, 2006, underperforming the S&P 500 Index 2, which
returned 6.38% during the same period.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS, AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED. CURRENT
MONTH-END PERFORMANCE IS AVAILABLE AT THE FUNDS' WEB SITE
- - WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
ADMINISTRATOR AND INVESTOR CLASS SHARES ARE SOLD WITHOUT A FRONT-END SALES
CHARGE OR CONTINGENT DEFERRED SALES CHARGE. OTHER FEES AND EXPENSES APPLY TO AN
INVESTMENT IN THE FUND AND ARE DESCRIBED IN THE FUND'S CURRENT PROSPECTUS.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
Because the Fund attempts to achieve at least a 95% correlation to the
performance of the S&P 500 Index, security selection and performance tend to
match the index. Factors that have affected the S&P 500 Index as well as the
Fund include a large-cap stock rally, which was led by the basic materials
sector as demand for metals, especially copper, increased. Telecommunications
services also contributed to the rally as the sector rose on the back of merger
and acquisition activity. Overall, the U.S. economy remained robust and the
unemployment rate continued to decline. While the threat of inflation remains,
the vigilance of the Federal Reserve Board's interest rate increases has kept
consumer prices in check. The combination of low unemployment, controlled
inflation, and managed interest rates often provides an economic environment
suitable for positive stock returns.
WHAT CHANGES DID YOU MAKE TO THE FUND'S HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
Several changes were made to the S&P 500 Index during the reporting
period. Many of the changes were in response to merger and acquisition activity
as companies looked to buy growth as well as foster it internally. For example,
in February 2006, Cisco Corporation purchased Scientific-Atlanta, Inc., a
communications products company. As the transaction was finalized, the
constituent Scientific-Atlanta, Inc., was removed from the S&P 500 Index.
Accordingly, we also removed the company from the Fund's portfolio in response
to the index change. Other reasons actions were taken regarding securities that
comprise the index included subsidiary spin-offs, the conversion of convertible
securities, and the issuance of additional shares for cash acquisitions and
general operating expenses.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
We continue to see positive growth for the U.S. economy with stable prices
for the foreseeable future. Going forward, we will continue to seek to achieve
the Fund's objective of replicating the total return of the S&P 500 Index before
fees and expenses.
STOCK FUNDS SHOULD ONLY BE CONSIDERED FOR LONG-TERM GOALS AS VALUES
FLUCTUATE IN RESPONSE TO THE ACTIVITIES OF INDIVIDUAL COMPANIES AND GENERAL
MARKET AND ECONOMIC CONDITIONS. CONSULT THE FUND'S PROSPECTUS FOR ADDITIONAL
INFORMATION ON THESE AND OTHER RISKS.
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2006, and are those of the Fund's
manager. The views are subject to change at any time in response to changing
circumstances in the market and are not intended to predict or guarantee the
future performance of any individual security, market sector or the markets
generally, or the WELLS FARGO ADVANTAGE INDEX FUND.
1 The Fund's Adviser has committed through January 31, 2007, for the
Administrator Class and through April 30, 2007, for the Investor Class, to waive
fees and/or reimburse expenses to the extent necessary to maintain a certain net
operating expense ratio for the Fund. Actual reductions of operating expenses
can increase total return to shareholders. Without these reductions, the Fund's
returns would have been lower.
The Fund is a gateway feeder Fund that invests all of its assets in a
single master portfolio of the Master Trust with a substantially similar
investment objective and substantially similar investment strategies. References
to the investment activities of the Fund are intended to refer to the investment
activities of the master portfolio in which it invests.
Prior to April 11, 2005, the WELLS FARGO ADVANTAGE INDEX FUND -
Administrator Class was named the WELLS FARGO INDEX FUND - Institutional Class.
Performance shown for the Administrator Class shares for periods prior to
November 8,1999,reflects the performance of the Institutional Class shares of
Norwest Advantage Index Fund, its predecessor fund. Performance shown for the
Investor Class shares for periods prior to April 11, 2005, reflects the
performance of the Administrator Class shares of the Fund, and includes expenses
that are not applicable to and are lower than those of the Investor Class
shares.
2 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
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE INDEX FUND
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
6-Month* 1-Year 5-Year 10-Year
- ------------------------------------------------------------------------------------------------------------
Index Fund - Administrator Class (Incept. Date 11/11/1994) 6.26 11.45 3.78 8.73
- ------------------------------------------------------------------------------------------------------------
Index Fund - Investor Class (Incept. Date 04/11/2005) 6.15 11.22 3.57 8.51
- ------------------------------------------------------------------------------------------------------------
Benchmark
- ------------------------------------------------------------------------------------------------------------
S&P 500 Index 2 6.38 11.72 3.97 8.95
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FUND CHARACTERISTICS 3 (AS OF MARCH 31, 2006)
- ------------------------------------------------------------------
Beta** 1.00
- ------------------------------------------------------------------
Price to Earnings Ratio (trailing 12 months) 17.17x
- ------------------------------------------------------------------
Price to Book Ratio 2.82x
- ------------------------------------------------------------------
Median Market Cap ($B) $ 12.21
- ------------------------------------------------------------------
Portfolio Turnover 5*** 3%
- ------------------------------------------------------------------
** A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE S&P 500 INDEX
IS 1.00 BY DEFINITION.
*** THIS MEASURE IS BASED ON SIX MONTHS OF THE FUND'S ACTIVITY.
TEN LARGEST EQUITY HOLDINGS 3,4 (AS OF MARCH 31, 2006)
- ---------------------------------------------------------------------------
Exxon Mobil Corporation 3.19%
- ---------------------------------------------------------------------------
General Electric Company 3.11%
- ---------------------------------------------------------------------------
Microsoft Corporation 2.07%
- ---------------------------------------------------------------------------
Citigroup Incorporated 2.02%
- ---------------------------------------------------------------------------
Bank of America Corporation 1.81%
- ---------------------------------------------------------------------------
Procter & Gamble Company 1.62%
- ---------------------------------------------------------------------------
Pfizer Incorporated 1.57%
- ---------------------------------------------------------------------------
Johnson & Johnson 1.51%
- ---------------------------------------------------------------------------
American International Group Incorporated 1.47%
- ---------------------------------------------------------------------------
Altria Group Incorporated 1.27%
SECTOR DISTRIBUTION 3 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Discretionary 10%
Consumer Staples 9%
Energy 10%
Financials 21%
Health Care 13%
Industrials 12%
Information Technology 16%
Materials 3%
Telecommunication Services 3%
Utilities 3%
GROWTH OF $10,000 INVESTMENT 6 (AS OF MARCH 31, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
WELLS FARGO ADVANTAGE INDEX
FUND - Administrator Class S&P 500 Index
03/96 10000 10000
04/96 10142 10147
05/96 10396 10408
06/96 10439 10447
07/96 9977 9986
08/96 10178 10196
09/96 10746 10769
10/96 11040 11067
11/96 11872 11902
12/96 11617 11666
01/97 12351 12396
02/97 12446 12492
03/97 11936 11980
04/97 12646 12694
05/97 13414 13466
06/97 14025 14069
07/97 15122 15188
08/97 14280 14337
09/97 15054 15121
10/97 14548 14616
11/97 15214 15293
12/97 15472 15556
01/98 15641 15727
02/98 16765 16861
03/98 17617 17724
04/98 17794 17905
05/98 17481 17597
06/98 18190 18312
07/98 17994 18118
08/98 15385 15500
09/98 16365 16493
10/98 17693 17834
11/98 18756 18915
12/98 19854 20004
01/99 20646 20840
02/99 20004 20192
03/99 20800 21000
04/99 21595 21813
05/99 21076 21298
06/99 22245 22480
07/99 21553 21778
08/99 21452 21670
09/99 20865 21076
10/99 22183 22410
11/99 22622 22865
12/99 23942 24212
01/00 22733 22997
02/00 22303 22562
03/00 24479 24769
04/00 23741 24023
05/00 23251 23531
06/00 23816 24112
07/00 23456 23736
08/00 24906 25210
09/00 23590 23879
10/00 23488 23778
11/00 21639 21905
12/00 21739 22012
01/01 22502 22793
02/01 20474 20717
03/01 19180 19405
04/01 20668 20911
05/01 20804 21051
06/01 20293 20540
07/01 20091 20339
08/01 18830 19067
09/01 17309 17529
10/01 17635 17863
11/01 18982 19234
12/01 19146 19403
01/02 18866 19120
02/02 18499 18751
03/02 19192 19456
04/02 18028 18277
05/02 17890 18143
06/02 16610 16851
07/02 15338 15539
08/02 15438 15640
09/02 13754 13941
10/02 14980 15167
11/02 15859 16058
12/02 14929 15116
01/03 14526 14721
02/03 14306 14500
03/03 14442 14640
04/03 15624 15846
05/03 16450 16679
06/03 16657 16893
07/03 16945 17190
08/03 17272 17525
09/03 17085 17340
10/03 18047 18319
11/03 18204 18481
12/03 19151 19449
01/04 19494 19807
02/04 19760 20082
03/04 19460 19779
04/04 19151 19468
05/04 19408 19735
06/04 19782 20118
07/04 19129 19452
08/04 19202 19530
09/04 19404 19741
10/04 19696 20043
11/04 20490 20855
12/04 21180 21564
01/05 20665 21037
02/05 21093 21479
03/05 20718 21099
04/05 20320 20698
05/05 20962 21356
06/05 20988 21386
07/05 21765 22182
08/05 21560 21980
09/05 21730 22158
10/05 21363 21788
11/05 22171 22612
12/05 22174 22621
01/06 22758 23220
02/06 22811 23283
03/06 23090 23571
- --------------------------------------------------------------------------------
3 Fund characteristics, equity holdings and sector distribution are subject to
change. Cash and cash equivalents are not reflected in the calculations of
fund characteristics, equity holdings and sector distribution.
4 The Ten Largest Equity Holdings are calculated based on the market value of
the Master Trust portfolio securities allocable to the Fund divided by total
market value of the portfolio of investments of the Fund. See Notes to
Financial Statements for a discussion of the Master Trust.
5 Portfolio turnover rate represents the activity from the Fund's investment in
a single Master Portfolio.
6 The chart compares the performance of the WELLS FARGO ADVANTAGE INDEX FUND
Administrator Class shares for the most recent ten years with the S&P 500
Index.
The chart assumes a hypothetical investment of $10,000 in Administrator Class
shares and reflects all operating expenses.
3
WELLS FARGO ADVANTAGE INDEX FUND FUND EXPENSES (UNAUDITED)
- --------------------------------------------------------------------------------
As a shareholder of the Fund, you incur two types of costs: (1)
transaction costs, including sales charges (loads) on purchase payments,
redemption fees (if any) and exchange fees (if any); and (2) ongoing costs,
including management fees; distribution (12b-1) and/or shareholder service fees;
and other Fund expenses. This example is intended to help you understand your
ongoing costs (in dollars) of investing in the Fund and to compare these costs
with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning
of the period and held for the entire period (October 1, 2005 to March 31,
2006).
ACTUAL EXPENSES
The "Actual" line of the table below provides information about actual
account values and actual expenses. You may use the information in this line,
together with the amount you invested, to estimate the expenses that you paid
over the period. Simply divide your account value by $1,000 (for example, an
$8,600 account value divided by $1,000 = 8.6), then multiply the result by the
number in the "Actual" line under the heading entitled "Expenses Paid During
Period" for your applicable class of shares to estimate the expenses you paid on
your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The "Hypothetical" line of the table below provides information about
hypothetical account values and hypothetical expenses based on the Fund's actual
expense ratio and an assumed rate of return of 5% per year before expenses,
which is not the Fund's actual return. The hypothetical account values and
expenses may not be used to estimate the actual ending account balance or
expenses you paid for the period. You may use this information to compare the
ongoing costs of investing in the Fund and other funds. To do so, compare this
5% hypothetical example with the 5% hypothetical examples that appear in the
shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight
your ongoing costs only and do not reflect any transactional costs, such as
sales charges (loads), redemption fees, or exchange fees. Therefore, the
"Hypothetical" line of the table is useful in comparing ongoing costs only, and
will not help you determine the relative total costs of owning different funds.
In addition, if these transactional costs were included, your costs would have
been higher.
Beginning Ending Expenses
Account Value Account Value Paid During Net Annual
Index Fund 10/01/2005 03/31/2006 Period(1) Expense Ratio
- ---------------------------------------------------------------------------------------------------------------------------
Index Fund - Administrator Class
Actual $ 1,000.00 $ 1,062.60 $ 1.29 0.25%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $ 1,000.00 $ 1,023.68 $ 1.26 0.25%
- ---------------------------------------------------------------------------------------------------------------------------
Index Fund - Investor Class
Actual $ 1,000.00 $ 1,061.50 $ 2.31 0.45%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $ 1,000.00 $ 1,022.69 $ 2.27 0.45%
(1) Expenses are equal to the Fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by the number of days in the
most recent fiscal half-year divided by the number of days in the fiscal year
(to reflect the one-half year period.)
4
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE INDEX FUND
- --------------------------------------------------------------------------------
INDEX FUND
- --------------------------------------------------------------------------------
FACE/SHARE
AMOUNT SECURITY NAME VALUE
INVESTMENTS IN AFFILIATED MASTER PORTFOLIOS - 100.02%
N/A WELLS FARGO ADVANTAGE INDEX PORTFOLIO $ 1,533,877,443
TOTAL INVESTMENTS IN AFFILIATED MASTER PORTFOLIOS (COST $1,042,818,021) 1,533,877,443
-----------------
TOTAL INVESTMENTS IN SECURITIES
(COST $1,042,818,021) 100.02% $ 1,533,877,443
OTHER ASSETS AND LIABILITIES, NET (0.02) (375,182)
------ -----------------
TOTAL NET ASSETS 100.00% $ 1,533,502,261
====== =================
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
5
WELLS FARGO ADVANTAGE INDEX FUND
STATEMENT OF ASSETS AND LIABILITIES -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX FUND
- -----------------------------------------------------------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
INVESTMENTS IN AFFILIATED MASTER PORTFOLIOS ............................................................... $ 1,533,877,443
-----------------
TOTAL INVESTMENTS AT MARKET VALUE (SEE COST BELOW) ........................................................... 1,533,877,443
-----------------
CASH ...................................................................................................... 25,000
RECEIVABLE FOR FUND SHARES ISSUED ......................................................................... 347,069
RECEIVABLES FOR DIVIDENDS AND INTEREST .................................................................... 451
RECEIVABLE FROM INVESTMENT ADVISOR AND AFFILIATES ......................................................... 33,697
PREPAID EXPENSES AND OTHER ASSETS ......................................................................... 2,995
-----------------
TOTAL ASSETS ................................................................................................. 1,534,286,655
-----------------
LIABILITIES
PAYABLE FOR FUND SHARES REDEEMED .......................................................................... 611,499
DIVIDENDS PAYABLE ......................................................................................... 531
PAYABLE TO THE TRUSTEES AND SHAREHOLDER SERVICING AGENT ................................................... 172,364
-----------------
TOTAL LIABILITIES ............................................................................................ 784,394
-----------------
TOTAL NET ASSETS ............................................................................................. $ 1,533,502,261
=================
NET ASSETS CONSIST OF:
- -----------------------------------------------------------------------------------------------------------------------------------
PAID-IN CAPITAL ........................................................................................... $ 1,052,295,031
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ................................................................ 5,998,537
UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON INVESTMENTS ..................................................... (15,850,729)
NET UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS, FOREIGN CURRENCIES AND TRANSLATION OF ASSETS AND
LIABILITIES DENOMINATED IN FOREIGN CURRENCIES .......................................................... 491,059,422
-----------------
TOTAL NET ASSETS ............................................................................................. $ 1,533,502,261
-----------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS - ADMINISTRATOR CLASS .......................................................................... $ 1,386,920,239
SHARES OUTSTANDING - ADMINISTRATOR CLASS .................................................................. 26,602,302
NET ASSET VALUE AND OFFERING PRICE PER SHARE - ADMINISTRATOR CLASS ........................................ $ 52.14
NET ASSETS - INVESTOR CLASS ............................................................................... $ 146,582,022
SHARES OUTSTANDING - INVESTOR CLASS ....................................................................... 2,814,115
NET ASSET VALUE AND OFFERING PRICE PER SHARE - INVESTOR CLASS ............................................. $ 52.09
-----------------
INVESTMENTS AT COST .......................................................................................... $ 1,042,818,021
=================
(1) EACH FUND HAS AN UNLIMITED NUMBER OF AUTHORIZED SHARES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
6
STATEMENT OF OPERATIONS -- FOR THE SIX MONTHS ENDED MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE INDEX FUND
- --------------------------------------------------------------------------------
INDEX FUND
- -----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS ALLOCATED FROM AFFILIATED MASTER PORTFOLIOS ..................................................... $ 14,108,695
INTEREST INCOME ALLOCATED FROM AFFILIATED MASTER PORTFOLIOS ............................................... 15,918
EXPENSES ALLOCATED FROM AFFILIATED MASTER PORTFOLIOS ...................................................... (840,817)
WAIVERS ALLOCATED FROM AFFILIATED MASTER PORTFOLIOS ....................................................... 33,064
-----------------
TOTAL INVESTMENT INCOME ...................................................................................... 13,316,860
-----------------
EXPENSES
ADMINISTRATION FEES
FUND LEVEL .............................................................................................. 356,415
ADMINISTRATOR CLASS ..................................................................................... 638,565
INVESTOR CLASS .......................................................................................... 334,190
SHAREHOLDER SERVICING FEES ................................................................................ 824,226
ACCOUNTING FEES ........................................................................................... 46,467
PROFESSIONAL FEES ......................................................................................... 32,093
REGISTRATION FEES ......................................................................................... 36,731
SHAREHOLDER REPORTS ....................................................................................... 49,659
TRUSTEES' FEES ............................................................................................ 3,775
OTHER FEES AND EXPENSES ................................................................................... 18,621
-----------------
TOTAL EXPENSES ............................................................................................... 2,340,742
-----------------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) .............................................................. (1,221,029)
NET EXPENSES .............................................................................................. 1,119,713
-----------------
NET INVESTMENT INCOME (LOSS) ................................................................................. 12,197,147
-----------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- -----------------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ........................................... 94,342
SECURITIES TRANSACTIONS ALLOCATED FROM MASTER PORTFOLIOS .................................................. 11,745,786
FUTURES TRANSACTIONS ALLOCATED FROM MASTER PORTFOLIOS ..................................................... 118,026
-----------------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS .................................................................... 11,958,154
-----------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
SECURITIES TRANSACTIONS ALLOCATED FROM MASTER PORTFOLIOS .................................................. 57,671,023
FORWARDS, FUTURES, OPTIONS, SWAPS AND SHORT SALES ALLOCATED FROM MASTER PORTFOLIOS ........................ 3,776,163
-----------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS .......................................... 61,447,186
=================
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ....................................................... 73,405,340
-----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS .............................................. $ 85,602,487
=================
7
WELLS FARGO ADVANTAGE INDEX FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
INDEX FUND
-------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005
- -----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ................................................................. $ 1,361,417,613 $ 1,087,211,965
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ........................................................... 12,197,147 22,662,445
NET REALIZED GAIN (LOSS) ON INVESTMENTS ................................................ 11,958,154 39,248,528
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS .................... 61,447,186 111,036,351
---------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ........................... 85,602,487 172,947,324
---------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
ADMINISTRATOR CLASS .................................................................... (18,753,683) (19,362,331)
INVESTOR CLASS ......................................................................... (2,046,347) 0
---------------- -----------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ....................................................... (20,800,030) (19,362,331)
---------------- -----------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ............................... 602,027,230 592,541,736
REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS (NOTE 1) ........................... 17,015,034 17,112,058
COST OF SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) ................................. (502,033,354) (594,211,417)
---------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS -
ADMINISTRATOR CLASS .................................................................... 117,008,910 15,442,377
---------------- -----------------
PROCEEDS FROM SHARES SOLD - INVESTOR CLASS (NOTE 1) ................................... 13,668,353 130,248,594
REINVESTMENT OF DISTRIBUTIONS - INVESTOR CLASS ......................................... 1,993,814 0
COST OF SHARES REDEEMED - INVESTOR CLASS (NOTE 1) ...................................... (25,388,886) (25,070,316)
---------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - INVESTOR
CLASS ................................................................................. (9,726,719) 105,178,278
---------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS ........... 107,282,191 120,620,655
================ =================
NET INCREASE (DECREASE) IN NET ASSETS ..................................................... 172,084,648 274,205,648
================ =================
ENDING NET ASSETS ......................................................................... $ 1,533,502,261 $ 1,361,417,613
================ =================
SHARES ISSUED AND REDEEMED:
SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ............................................. 11,721,508 12,286,699
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS (NOTE 1) .......... 336,133 357,768
SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) ......................................... (9,789,403) (12,356,816)
---------------- -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADMINISTRATOR CLASS ....................... 2,268,238 287,651
---------------- -----------------
SHARES SOLD - INVESTOR CLASS (NOTE 1) .................................................. 269,093 3,520,398
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - INVESTOR CLASS ........................ 39,396 0
SHARES REDEEMED - INVESTOR CLASS (NOTE 1) .............................................. (499,201) (515,571)
---------------- -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INVESTOR CLASS ............................ (190,712) 3,004,827
---------------- -----------------
NET INCREASE (DECREASE) IN SHARES RESULTING FROM CAPITAL SHARE TRANSACTIONS ............... 2,077,526 3,292,478
================ =================
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) .............................. $ 5,998,537 $ 14,601,420
================ =================
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
8
THIS PAGE IS INTENTIONALLY LEFT BLANK --
WELLS FARGO ADVANTAGE INDEX FUND FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
NET REALIZED
BEGINNING NET AND DISTRIBUTIONS
NET ASSET INVESTMENT UNREALIZED FROM NET
VALUE PER INCOME GAIN (LOSS) ON INVESTMENT
SHARE (LOSS) INVESTMENTS INCOME
- -----------------------------------------------------------------------------------------------------------------------------------
INDEX FUND
- -----------------------------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .............. $49.80 0.42 2.68 (0.76)
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ...................... $45.21 0.89 4.50 (0.80)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ...................... $40.33 0.65 4.81 (0.58)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ...................... $32.98 0.55 7.37 (0.57)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ...................... $42.00 0.51 (8.99) (0.54)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ...................... $59.73 0.54 (15.94) (0.60)
INVESTOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .............. $49.75 0.40 2.64 (0.70)
APRIL 11, 2005(5) TO SEPTEMBER 30, 2005 .................... $47.52 0.34 1.89 0.00
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
10
FINANCIAL HIGHLIGHTS WELLS FARGO ADVANTAGE INDEX FUND
- --------------------------------------------------------------------------------
DISTRIBUTIONS ENDING
FROM NET NET ASSET
REALIZED VALUE PER
GAINS SHARE
- -----------------------------------------------------------------------------------------------------------------------------------
INDEX FUND
- -----------------------------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .............. 0.00 $ 52.14
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ...................... 0.00 $ 49.80
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ...................... 0.00 $ 45.21
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ...................... 0.00 $ 40.33
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ...................... 0.00 $ 32.98
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ...................... (1.73) $ 42.00
INVESTOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .............. 0.00 $ 52.09
APRIL 11, 2005(5) TO SEPTEMBER 30, 2005 .................... 0.00 $ 49.75
RATIO TO AVERAGE NET ASSETS (ANNUALIZED)(1)
--------------------------------------------------------------------
NET INVESTMENT GROSS EXPENSES NET
INCOME (LOSS) EXPENSES(4) WAIVED EXPENSES(4)
- -----------------------------------------------------------------------------------------------------------------------------------
INDEX FUND
- -----------------------------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .............. 1.73% 0.39% (0.14)% 0.25%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ...................... 1.87% 0.31% (0.06)% 0.25%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ...................... 1.49% 0.31% (0.06)% 0.25%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ...................... 1.58% 0.44% (0.19)% 0.25%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ...................... 1.28% 0.39% (0.14)% 0.25%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ...................... 1.11% 0.30% (0.05)% 0.25%
INVESTOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .............. 1.54% 0.89% (0.44)% 0.45%
APRIL 11, 2005(5) TO SEPTEMBER 30, 2005 .................... 1.36% 0.82% (0.37)% 0.45%
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE(3) (000'S OMITTED)
- -----------------------------------------------------------------------------------------------------------------------------------
INDEX FUND
- -----------------------------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .............. 6.26% 3% $ 1,386,920
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ...................... 11.99% 8% $ 1,211,916
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ...................... 13.57% 3% $ 1,087,212
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ...................... 24.22% 3% $ 839,581
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ...................... (20.54)% 4% $ 596,168
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ...................... (26.63)% 2% $ 733,380
INVESTOR CLASS
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .............. 6.15% 3% $ 146,582
APRIL 11, 2005(5) TO SEPTEMBER 30, 2005 .................... 4.69% 8% $ 149,501
11
WELLS FARGO ADVANTAGE INDEX FUND NOTES TO FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(1) During each period, various fees and expenses were waived and reimbursed
as indicated. The ratio of Gross Expenses to Average Net Assets reflects
the expense ratio in the absence of any waivers and reimbursements (Note
3).
(2) Total return calculations do not include any sales charges, and would have
been lower had certain expenses not been waived or reimbursed during the
periods shown. Returns for periods of less than one year are not
annualized.
(3) Portfolio turnover rate represents the activity from the Fund's investment
in a single Portfolio.
(4) Includes net expenses allocated from the Portfolio in which the Fund
invests.
(5) Commencement of operations.
12
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) WELLS FARGO ADVANTAGE INDEX FUND
- --------------------------------------------------------------------------------
1. ORGANIZATION
- --------------------------------------------------------------------------------
Wells Fargo Funds Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end management
investment company. The Trust commenced operations on November 8, 1999, and at
March 31, 2006, was comprised of 108 separate series (each, a "Fund",
collectively, the "Funds"). These financial statements present the Index Fund.
The Fund is a diversified series of the Trust.
Effective April 11, 2005, the Wells Fargo Index Fund changed its name to
the Wells Fargo Advantage Index Fund. Also at this time, the Institutional Class
changed its name to the Administrator Class, and the Investor Class commenced
operations.
In August and September 2004, the Board of Trustees of the Trust and the
Boards of Directors of the Strong Funds ("Strong Funds") approved an Agreement
and Plan of Reorganization providing for the reorganization of certain Strong
Funds into the Funds.
Effective at the close of business on April 8, 2005, the following
Acquiring Funds ("Acquiring Funds") acquired substantially all of the net assets
of the following Target Funds ("Target Funds") through a tax-free exchange under
section 368 of the Internal Revenue Code. The following is a summary of shares
outstanding and net assets immediately before and after the reorganization:
(BEFORE REORGANIZATION) (AFTER REORGANIZATION)
------------------------------------------ ------------------------
(TARGET FUND) (ACQUIRING FUND*) WELLS FARGO ADVANTAGE
Fund Strong Index Fund Wells Fargo Index Fund INDEX FUND
- -------------------------------------------------------------------------------------------------------------------
Shares:
- -------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS(1) 0 23,429,078 0
- -------------------------------------------------------------------------------------------------------------------
INVESTOR CLASS 11,405,812 0 3,296,293
- -------------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS 0 0 23,429,078
- -------------------------------------------------------------------------------------------------------------------
Net Assets:
- -------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS(1) $ 0 $ 1,113,282,168 $ 0
- -------------------------------------------------------------------------------------------------------------------
INVESTOR CLASS 156,630,345 0 156,630,345
- -------------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS 0 0 1,113,282,168
- -------------------------------------------------------------------------------------------------------------------
Unrealized appreciation (depreciation) $ (18,667,798) $ 358,573,035 $ 339,905,237
- -------------------------------------------------------------------------------------------------------------------
Accumulated net realized gains (losses) $ (19,464,953) $ (26,546,066) $ (46,011,019)
* DESIGNATES THE ACCOUNTING SURVIVOR.
(1) EFFECTIVE AT THE CLOSE OF BUSINESS ON APRIL 8, 2005, THE INSTITUTIONAL CLASS
OF THE WELLS FARGO INDEX FUND WAS RENAMED THE ADMINISTRATOR CLASS OF THE WELLS
FARGO ADVANTAGE INDEX FUND.
The separate classes of shares offered by the Fund differ principally in
applicable sales charges, shareholder servicing and administration fees.
Shareholders of each class bear certain expenses that pertain to that particular
class. All shareholders bear the common expenses of a Fund, earn income from the
portfolio, and are allocated unrealized gains and losses pro rata based on the
average daily net assets of each class, without distinction between share
classes. Dividends are determined separately for each class based on income and
expenses allocable to each class. Realized gains and losses are allocated to
each class pro rata based upon the net assets of each class on the date
realized. Differences in per share dividend rates generally result from the
relative weightings of pro rata income and realized gain allocations and from
differences in separate class expenses, including distribution, shareholder
servicing, and administration fees.
The Index Fund seeks to achieve its investment objective by investing all
investable assets in one or more separate diversified portfolios (each, a
"Master Portfolio", collectively, the "Master Portfolios") of Wells Fargo Master
Trust, a registered open-end management investment company. Each Master
Portfolio directly acquires portfolio securities, and a Fund investing in a
Master Portfolio acquires an indirect interest in those securities. Each Fund
accounts for its investment in the Master Portfolios as partnership investments
and records daily its share of the Master Portfolio's income, expenses, and
realized and unrealized gains and losses. The financial statements of the Master
Portfolios are in this report and should be read in conjunction with each Fund's
financial statements. The ownership percentages of each Master Portfolio in
which the Index Fund invests is as follows:
Index
Fund
- --------------------------------------------------------------------------------
INDEX PORTFOLIO 66%
- --------------------------------------------------------------------------------
13
WELLS FARGO ADVANTAGE INDEX FUND NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
2. SIGNIFICANT ACCOUNTING POLICIES
- --------------------------------------------------------------------------------
The following significant accounting policies, which are consistently
followed in the preparation of the financial statements of the Trust, are in
conformity with accounting principles generally accepted in the United States of
America ("GAAP") for investment companies.
The preparation of financial statements in conformity with GAAP requires
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.
In the normal course of business, the Trust may enter into contracts that
provide certain indemnifications. The Trust's maximum exposure under these
arrangements is dependent on future claims that may be made against the Funds
and, therefore, cannot be estimated; however, based on experience, the risk of
loss from such claims is considered remote.
SECURITY VALUATION
Investments in the Master Portfolios are valued daily based upon each
fund's proportionate share of each Master Portfolio's net assets, which are also
valued daily. Securities held in the Master Portfolios are valued as discussed
in the Notes to Financial Statements of the Master Portfolios, which are
included elsewhere in this report.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Securities transactions are recorded on a trade date basis. Realized gains
or losses are reported on the basis of identified cost of securities delivered.
Interest income is accrued daily and bond discounts are accreted and premiums
are amortized daily.
Dividend income is recognized on the ex-dividend date, except for certain
dividends from foreign securities, which are recorded as soon as the Fund is
informed of the ex-dividend date. Dividend income from foreign securities is
recorded net of foreign taxes withheld where recovery of such taxes is not
assured.
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, if any, is declared and distributed to shareholders
annually. Distributions to shareholders from net realized capital gains, if any,
are declared and distributed at least annually.
For federal income tax purposes, a Fund may designate as capital gains
dividends the earnings and profits distributed to shareholders on the redemption
of fund shares during the year.
Distributions are based on amounts calculated in accordance with the
applicable federal income tax regulations, which may differ from GAAP. The
timing and character of distributions made during the period from net investment
income or net realized gains may also differ from their ultimate
characterization for federal income tax purposes. To the extent that these
differences are permanent in nature, such amounts are reclassified within the
capital accounts based on their federal tax-basis treatment. Temporary
differences do not require reclassifications.
FEDERAL INCOME TAXES
Each Fund is treated as a separate entity for federal income tax purposes.
It is the policy of each Fund of the Trust to continue to qualify as a regulated
investment company by complying with the provisions applicable to regulated
investment companies, as defined under subchapter M of the Internal Revenue Code
(the "Code"), and to make distributions of 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 at March 31, 2006.
At September 30, 2005, estimated net capital loss carryforwards, which are
available to offset future net realized capital gains, were:
Capital Loss
Fund Year Expires Carryforwards
- --------------------------------------------------------------------------------
INDEX FUND 2008 $ 2,084,080
2009 12,137,615
2010 2,154,234
2011 20,770,094
2012 6,223,935
2013 242,271
- --------------------------------------------------------------------------------
3. EXPENSES
- --------------------------------------------------------------------------------
ADVISORY FEES
The Trust has entered into an advisory contract with Wells Fargo Funds
Management, LLC ("Funds Management"). The adviser is responsible for
implementing investment policies and guidelines and for supervising the
subadviser, who is responsible for day-to-day portfolio management.
For each Fund that invests all of its assets in a single Master Portfolio,
Funds Management does not currently receive investment advisory fees. Funds
Management acts as adviser to the Master Portfolios, and is entitled to receive
fees from the Master Portfolios for those services.
14
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) WELLS FARGO ADVANTAGE INDEX FUND
- --------------------------------------------------------------------------------
Each Fund that invests its assets in one or more of the Master Portfolios
may withdraw its investments from its corresponding Master Portfolio(s) at any
time if the Board of Trustees determines that it is in the best interest of the
Fund to do so. Upon such redemption and subsequent direct investment in a
portfolio of securities, Funds Management (and the corresponding subadviser, if
any) may receive an investment advisory fee for the direct management of those
assets.
ADMINISTRATION AND TRANSFER AGENT FEES
The Trust has entered into an Administration Agreement with Funds
Management. Under this Agreement, for providing administrative services, which
includes paying fees and expenses for services provided by the transfer agent,
sub-transfer agents, omnibus account servicers and record-keepers, Funds
Management is entitled to receive the following annual fees:
Admin Fees
Average Daily (% of Average
Net Assets Daily Net Assets)
- --------------------------------------------------------------------------------
FUND LEVEL First $5 billion 0.05
Next $5 billion 0.04
Over $10 billion 0.03
- --------------------------------------------------------------------------------
ADMINISTRATOR CLASS* 0.10
- --------------------------------------------------------------------------------
INVESTOR CLASS 0.45
- --------------------------------------------------------------------------------
* Prior to April 11, 2005, the class level fee was 0.20%.
The Trust has entered into an agreement with Boston Financial Data
Services ("BFDS") as the transfer agent for the Trust. Transfer agent fees are
paid by Funds Management and not by the Fund.
CUSTODY FEES
The Trust has entered into a contract with Wells Fargo Bank, N.A. ("WFB"),
whereby WFB is responsible for providing custody services. WFB does not receive
a custodial fee for any Fund that invests its assets solely in one or more
Master Portfolios or other investment companies.
SHAREHOLDER SERVICING FEES
The Trust has entered into contracts with one or more shareholder
servicing agents, whereby the Fund is charged the following annual fees:
% of Average
Share Class Daily Net Assets
- --------------------------------------------------------------------------------
ADMINISTRATOR CLASS** 0.10
- --------------------------------------------------------------------------------
INVESTOR CLASS 0.25
** Prior to April 11, 2005, the Administrator Class shares of the Index
Fund did not pay a shareholder servicing fee.
For the period ended March 31, 2006, shareholder servicing fees paid were
as follows:
Administrator Investor
Fund Class Class
- --------------------------------------------------------------------------------
INDEX FUND $ 638,565 $ 185,661
- --------------------------------------------------------------------------------
OTHER FEES
PFPC, Inc. ("PFPC") serves as fund accountant for the Trust and is
entitled to receive an annual asset based fee and an annual fixed fee from each
Fund. PFPC is also entitled to be reimbursed for all out-of-pocket expenses
reasonably incurred in providing these services.
WAIVED FEES AND REIMBURSED EXPENSES
All amounts shown as waived fees or reimbursed expenses on the Statement
of Operations, for the period ended March 31, 2006, were waived by Funds
Management proportionately from all classes, first from advisory or
administration fees, and then from any class specific expenses, if applicable.
Funds Management has committed to waive fees and/or reimburse expenses to the
extent necessary to maintain a certain net operating expense ratio for the
Fund(s). Net operating expense ratios during the period were as follows:
Net Operating Expense Ratios
----------------------------
Administrator Investor
Fund Class Class
- --------------------------------------------------------------------------------
INDEX FUND 0.25% 0.45%
- --------------------------------------------------------------------------------
15
WELLS FARGO ADVANTAGE INDEX FUND NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
4. INVESTMENT PORTFOLIO TRANSACTIONS
- --------------------------------------------------------------------------------
Purchases and sales of investments, exclusive of short-term securities
(securities with maturities of one year or less at purchase date) and U.S.
Government obligations for the period ended March 31, 2006, were as follows:
Fund Purchases at Cost Sales Proceeds
- --------------------------------------------------------------------------------
INDEX FUND* $ 102,269,092 $ 46,904,447
- --------------------------------------------------------------------------------
* The Fund seeks to achieve its investment objective by investing some or
all of its investable assets in one or more Master Portfolios. Purchases and
sales related to these investments have been calculated by aggregating the
results of multiplying such Fund's ownership percentage of the respective Master
Portfolio by the corresponding Master Portfolio's purchases and sales.
5. BANK BORROWINGS
- --------------------------------------------------------------------------------
Wells Fargo Funds Trust and Wells Fargo Variable Trust (excluding the
money market funds) share in a revolving Credit Agreement with The Bank of New
York, whereby the Funds are permitted to use bank borrowings for temporary or
emergency purposes, such as to fund shareholder redemption requests. The
agreement permits borrowings of up to $150 million, collectively. Interest is
charged to each Fund based on its borrowing at a rate equal to the Federal Funds
Rate plus 0.40%. In addition, the Funds pay a quarterly commitment fee equal to
0.1% per annum of the credit line. For the period ended March 31, 2006, there
were no borrowings under the agreement by the Index Fund.
6. LEGAL AND REGULATORY MATTERS
- --------------------------------------------------------------------------------
In 2004, the predecessor Strong Funds' prior investment adviser and
affiliates (collectively, "Strong") entered into agreements with certain
regulators, including the Securities and Exchange Commission and the New York
Attorney General ("NYAG"), to settle market-timing investigations. In the
settlements, Strong agreed to pay investor restoration and civil penalties.
Although some portion of these payments is likely to be distributed to
predecessor Strong Fund shareholders, no determination has yet been made as to
the distribution of these amounts, and the successor funds are not expected to
receive any portion of these payments. The NYAG settlement imposed fee
reductions across the predecessor fund complex (excluding money market funds and
very short-term income funds) totaling at least $35 million by May 2009. Funds
Management has agreed to honor these fee reductions for the benefit of
shareholders across the successor funds. Although civil litigation against
Strong and certain predecessor Strong Funds relating to these matters is
continuing, neither the current adviser nor the successor funds is a party to
any such suit.
16
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 99.79%
AMUSEMENT & RECREATION SERVICES - 0.22%
36,416 HARRAH'S ENTERTAINMENT INCORPORATED<< $ 2,838,991
66,700 INTERNATIONAL GAME TECHNOLOGY 2,349,174
5,188,165
---------------
APPAREL & ACCESSORY STORES - 0.39%
113,537 GAP INCORPORATED 2,120,871
68,197 KOHL'S CORPORATION+ 3,615,123
68,885 LIMITED BRANDS 1,684,927
43,243 NORDSTROM INCORPORATED 1,694,261
9,115,182
---------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS - 0.11%
22,591 JONES APPAREL GROUP INCORPORATED 799,044
20,796 LIZ CLAIBORNE INCORPORATED 852,220
17,434 VF CORPORATION 991,994
2,643,258
---------------
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS - 0.08%
35,832 AUTONATION INCORPORATED+ 772,179
10,927 AUTOZONE INCORPORATED+ 1,089,313
1,861,492
---------------
AUTOMOTIVE REPAIR, SERVICES & PARKING - 0.02%
12,033 RYDER SYSTEM INCORPORATED 538,838
---------------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS - 0.32%
24,287 CENTEX CORPORATION 1,505,551
53,768 D.R. HORTON INCORPORATED 1,786,173
15,203 KB HOME<< 987,891
27,116 LENNAR CORPORATION CLASS A<< 1,637,264
42,323 PULTE HOMES INCORPORATED<< 1,626,050
7,542,929
---------------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS - 1.24%
420,218 HOME DEPOT INCORPORATED 17,775,221
154,676 LOWE'S COMPANIES INCORPORATED 9,967,322
21,938 SHERWIN-WILLIAMS COMPANY<< 1,084,615
28,827,158
---------------
BUSINESS SERVICES - 6.45%
118,652 ADOBE SYSTEMS INCORPORATED<< 4,143,328
23,247 AFFILIATED COMPUTER SERVICES INCORPORATED CLASS A+ 1,386,916
45,656 AUTODESK INCORPORATED+ 1,758,669
114,647 AUTOMATIC DATA PROCESSING INCORPORATED 5,237,075
42,100 BMC SOFTWARE INCORPORATED<<+ 911,886
90,257 CA INCORPORATED<< 2,455,893
199,435 CENDANT CORPORATION 3,460,197
17
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
BUSINESS SERVICES (CONTINUED)
35,305 CITRIX SYSTEMS INCORPORATED+ $ 1,338,060
36,891 COMPUTER SCIENCES CORPORATION+ 2,049,295
75,721 COMPUWARE CORPORATION+ 592,895
27,661 CONVERGYS CORPORATION+ 503,707
228,183 EBAY INCORPORATED+ 8,912,828
60,095 ELECTRONIC ARTS INCORPORATED+ 3,288,398
101,779 ELECTRONIC DATA SYSTEMS CORPORATION 2,730,731
25,600 EQUIFAX INCORPORATED 953,344
151,746 FIRST DATA CORPORATION 7,104,748
36,495 FISERV INCORPORATED+ 1,552,862
39,983 GOOGLE INCORPORATED CLASS A+ 15,593,370
39,413 IMS HEALTH INCORPORATED 1,015,673
85,973 INTERPUBLIC GROUP OF COMPANIES INCORPORATED<<+ 821,902
35,002 INTUIT INCORPORATED+ 1,861,756
1,757,935 MICROSOFT CORPORATION 47,833,411
25,011 MONSTER WORLDWIDE INCORPORATED<<+ 1,247,048
36,002 NCR CORPORATION+ 1,504,524
77,037 NOVELL INCORPORATED<<+ 591,644
35,368 OMNICOM GROUP INCORPORATED 2,944,386
745,427 ORACLE CORPORATION+ 10,204,896
21,973 PARAMETRIC TECHNOLOGY CORPORATION+ 358,822
33,924 ROBERT HALF INTERNATIONAL INCORPORATED 1,309,806
684,641 SUN MICROSYSTEMS INCORPORATED+ 3,512,208
206,384 SYMANTEC CORPORATION+ 3,473,443
67,646 UNISYS CORPORATION+ 466,081
48,380 VERISIGN INCORPORATED<<+ 1,160,636
249,622 YAHOO! INCORPORATED<<+ 8,052,806
150,333,244
---------------
CHEMICALS & ALLIED PRODUCTS - 9.79%
304,365 ABBOTT LABORATORIES 12,926,382
44,039 AIR PRODUCTS & CHEMICALS INCORPORATED 2,958,980
14,943 ALBERTO-CULVER COMPANY CLASS B 660,929
231,175 AMGEN INCORPORATED+ 16,817,981
21,851 AVERY DENNISON CORPORATION 1,277,846
89,117 AVON PRODUCTS INCORPORATED<< 2,777,777
20,920 BARR PHARMACEUTICALS INCORPORATED<<+ 1,317,542
68,068 BIOGEN IDEC INCORPORATED<<+ 3,206,003
387,537 BRISTOL-MYERS SQUIBB COMPANY 9,537,286
21,635 CHIRON CORPORATION<<+ 991,099
29,694 CLOROX COMPANY 1,777,186
101,945 COLGATE-PALMOLIVE COMPANY 5,821,059
191,372 DOW CHEMICAL COMPANY 7,769,703
181,985 E.I. DU PONT DE NEMOURS & COMPANY 7,681,587
16,149 EASTMAN CHEMICAL COMPANY 826,506
36,064 ECOLAB INCORPORATED 1,377,645
223,529 ELI LILLY & COMPANY<< 12,361,154
18
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
CHEMICALS & ALLIED PRODUCTS (CONTINUED)
23,571 ESTEE LAUDER COMPANIES INCORPORATED CLASS A $ 876,605
64,466 FOREST LABORATORIES INCORPORATED+ 2,877,118
51,390 GENZYME CORPORATION+ 3,454,436
91,447 GILEAD SCIENCES INCORPORATED+ 5,689,832
31,819 HOSPIRA INCORPORATED+ 1,255,578
15,616 INTERNATIONAL FLAVORS & FRAGRANCES INCORPORATED 535,941
47,887 KING PHARMACEUTICALS INCORPORATED+ 826,051
50,533 MEDIMMUNE INCORPORATED+ 1,848,497
432,633 MERCK & COMPANY INCORPORATED<< 15,241,661
53,287 MONSANTO COMPANY 4,516,073
43,243 MYLAN LABORATORIES INCORPORATED 1,011,886
1,455,522 PFIZER INCORPORATED 36,271,608
32,705 PPG INDUSTRIES INCORPORATED 2,071,862
63,851 PRAXAIR INCORPORATED 3,521,383
650,640 PROCTER & GAMBLE COMPANY 37,489,877
28,489 ROHM & HAAS COMPANY 1,392,257
292,664 SCHERING-PLOUGH CORPORATION<< 5,557,689
13,228 SIGMA-ALDRICH CORPORATION 870,270
265,881 WYETH 12,900,546
228,295,835
---------------
COMMUNICATIONS - 3.97%
76,748 ALLTEL CORPORATION 4,969,433
767,480 AT&T INCORPORATED<< 20,752,659
82,496 AVAYA INCORPORATED<<+ 932,205
355,637 BELLSOUTH CORPORATION 12,322,822
25,912 CENTURYTEL INCORPORATED<< 1,013,677
102,237 CLEAR CHANNEL COMMUNICATIONS INCORPORATED 2,965,895
423,054 COMCAST CORPORATION CLASS A<<+ 11,067,093
306,865 QWEST COMMUNICATIONS INTERNATIONAL INCORPORATED+ 2,086,682
586,975 SPRINT NEXTEL CORPORATION 15,167,434
44,229 UNIVISION COMMUNICATIONS INCORPORATED CLASS A<<+ 1,524,574
578,973 VERIZON COMMUNICATIONS INCORPORATED 19,719,820
92,522,294
---------------
DEPOSITORY INSTITUTIONS - 10.27%
68,358 AMSOUTH BANCORPORATION<< 1,849,084
918,809 BANK OF AMERICA CORPORATION 41,842,562
152,582 BANK OF NEW YORK COMPANY INCORPORATED 5,499,055
105,914 BB&T CORPORATION<< 4,151,829
987,361 CITIGROUP INCORPORATED 46,642,934
32,200 COMERICA INCORPORATED 1,866,634
24,449 COMPASS BANCSHARES INCORPORATED 1,237,364
109,911 FIFTH THIRD BANCORP<< 4,326,097
24,925 FIRST HORIZON NATIONAL CORPORATION 1,038,126
50,652 GOLDEN WEST FINANCIAL CORPORATION 3,439,271
49,203 HUNTINGTON BANCSHARES INCORPORATED 1,187,268
19
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
DEPOSITORY INSTITUTIONS (CONTINUED)
689,500 JP MORGAN CHASE & COMPANY $ 28,710,780
80,146 KEYCORP 2,949,373
15,696 M&T BANK CORPORATION 1,791,541
41,517 MARSHALL & ILSLEY CORPORATION 1,809,311
81,967 MELLON FINANCIAL CORPORATION 2,918,025
108,283 NATIONAL CITY CORPORATION 3,779,077
94,097 NORTH FORK BANCORPORATION INCORPORATED 2,712,817
36,644 NORTHERN TRUST CORPORATION 1,923,810
57,808 PNC FINANCIAL SERVICES GROUP 3,891,056
90,273 REGIONS FINANCIAL CORPORATION 3,174,901
70,651 SOVEREIGN BANCORP INCORPORATED 1,547,963
65,872 STATE STREET CORPORATION 3,980,645
73,345 SUNTRUST BANKS INCORPORATED 5,336,582
61,966 SYNOVUS FINANCIAL CORPORATION 1,678,659
356,244 US BANCORP 10,865,442
320,966 WACHOVIA CORPORATION 17,990,144
196,148 WASHINGTON MUTUAL INCORPORATED<< 8,359,828
331,518 WELLS FARGO & COMPANY& 21,174,055
20,646 ZIONS BANCORPORATION 1,708,044
239,382,277
---------------
EATING & DRINKING PLACES - 0.59%
26,016 DARDEN RESTAURANTS INCORPORATED 1,067,436
248,585 MCDONALD'S CORPORATION 8,541,381
22,614 WENDY'S INTERNATIONAL INCORPORATED 1,403,425
54,563 YUM! BRANDS INCORPORATED 2,665,948
13,678,190
---------------
EDUCATIONAL SERVICES - 0.06%
27,815 APOLLO GROUP INCORPORATED CLASS A+ 1,460,566
---------------
ELECTRIC, GAS & SANITARY SERVICES - 3.63%
129,764 AES CORPORATION+ 2,213,774
32,280 ALLEGHENY ENERGY INCORPORATED+ 1,092,678
43,375 ALLIED WASTE INDUSTRIES INCORPORATED+ 530,910
40,502 AMEREN CORPORATION<< 2,017,810
77,884 AMERICAN ELECTRIC POWER COMPANY INCORPORATED 2,649,614
61,344 CENTERPOINT ENERGY INCORPORATED<< 731,834
39,451 CINERGY CORPORATION 1,791,470
64,974 CITIZENS COMMUNICATIONS COMPANY<< 862,205
43,669 CMS ENERGY CORPORATION+ 565,514
48,551 CONSOLIDATED EDISON INCORPORATED 2,111,968
35,301 CONSTELLATION ENERGY GROUP INCORPORATED 1,931,318
68,737 DOMINION RESOURCES INCORPORATED<< 4,744,915
35,174 DTE ENERGY COMPANY<< 1,410,126
183,610 DUKE ENERGY CORPORATION<< 5,352,231
59,597 DYNEGY INCORPORATED CLASS A+ 286,066
64,450 EDISON INTERNATIONAL 2,654,051
20
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ELECTRIC, GAS & SANITARY SERVICES (CONTINUED)
130,405 EL PASO CORPORATION $ 1,571,380
41,115 ENTERGY CORPORATION 2,834,468
131,989 EXELON CORPORATION 6,982,218
65,247 FIRSTENERGY CORPORATION 3,190,578
79,830 FPL GROUP INCORPORATED<< 3,204,376
34,533 KEYSPAN CORPORATION 1,411,364
20,817 KINDER MORGAN INCORPORATED<< 1,914,956
8,741 NICOR INCORPORATED 345,794
53,933 NISOURCE INCORPORATED 1,090,525
7,585 PEOPLES ENERGY CORPORATION<< 270,329
68,310 PG&E CORPORATION 2,657,259
19,616 PINNACLE WEST CAPITAL CORPORATION 766,986
75,218 PPL CORPORATION 2,211,409
49,907 PROGRESS ENERGY INCORPORATED 2,194,910
49,591 PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED 3,175,808
51,118 SEMPRA ENERGY 2,374,942
146,728 SOUTHERN COMPANY<< 4,808,277
41,211 TECO ENERGY INCORPORATED 664,321
91,542 TXU CORPORATION 4,097,420
109,255 WASTE MANAGEMENT INCORPORATED 3,856,684
117,632 WILLIAMS COMPANIES INCORPORATED<< 2,516,148
79,881 XCEL ENERGY INCORPORATED 1,449,840
84,536,476
---------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 9.37%
23,164 ADC TELECOMMUNICATIONS INCORPORATED<<+ 592,767
95,127 ADVANCED MICRO DEVICES INCORPORATED+ 3,154,411
71,074 ALTERA CORPORATION<<+ 1,466,967
33,999 AMERICAN POWER CONVERSION CORPORATION 785,717
72,428 ANALOG DEVICES INCORPORATED 2,773,268
31,519 ANDREW CORPORATION+ 387,053
58,219 APPLIED MICRO CIRCUITS CORPORATION+ 236,951
87,137 BROADCOM CORPORATION CLASS A+ 3,760,833
115,199 CIENA CORPORATION+ 600,187
1,216,682 CISCO SYSTEMS INCORPORATED+ 26,365,499
39,959 COMVERSE TECHNOLOGY INCORPORATED+ 940,235
18,161 COOPER INDUSTRIES LIMITED CLASS A 1,578,191
81,383 EMERSON ELECTRIC COMPANY 6,806,060
81,183 FREESCALE SEMICONDUCTOR INCORPORATED CLASS B+ 2,254,451
2,061,925 GENERAL ELECTRIC COMPANY 71,713,752
12,986 HARMAN INTERNATIONAL INDUSTRIES INCORPORATED 1,443,134
1,163,754 INTEL CORPORATION 22,518,640
34,535 JABIL CIRCUIT INCORPORATED+ 1,480,170
331,583 JDS UNIPHASE CORPORATION<<+ 1,382,701
39,469 KLA-TENCOR CORPORATION<< 1,908,721
23,988 L-3 COMMUNICATIONS HOLDINGS INCORPORATED 2,057,931
60,471 LINEAR TECHNOLOGY CORPORATION 2,121,323
21
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT (CONTINUED)
77,484 LSI LOGIC CORPORATION+ $ 895,715
884,079 LUCENT TECHNOLOGIES INCORPORATED<<+ 2,696,441
63,420 MAXIM INTEGRATED PRODUCTS INCORPORATED 2,356,053
15,910 MAYTAG CORPORATION 339,360
122,409 MICRON TECHNOLOGY INCORPORATED+ 1,801,861
28,186 MOLEX INCORPORATED 935,775
494,464 MOTOROLA INCORPORATED 11,328,170
66,760 NATIONAL SEMICONDUCTOR CORPORATION 1,858,598
74,015 NETWORK APPLIANCE INCORPORATED+ 2,666,760
26,384 NOVELLUS SYSTEMS INCORPORATED<<+ 633,216
33,861 NVIDIA CORPORATION+ 1,938,881
36,750 PMC-SIERRA INCORPORATED+ 451,658
31,917 QLOGIC CORPORATION+ 617,594
327,641 QUALCOMM INCORPORATED 16,581,911
34,080 ROCKWELL COLLINS INCORPORATED 1,920,408
105,271 SANMINA-SCI CORPORATION+ 431,611
89,095 TELLABS INCORPORATED+ 1,416,611
316,574 TEXAS INSTRUMENTS INCORPORATED 10,279,158
13,458 WHIRLPOOL CORPORATION 1,231,003
68,200 XILINX INCORPORATED 1,736,372
218,446,118
---------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES - 0.40%
17,175 FLUOR CORPORATION<< 1,473,615
48,121 MOODY'S CORPORATION 3,438,727
66,079 PAYCHEX INCORPORATED 2,752,851
32,181 QUEST DIAGNOSTICS INCORPORATED 1,650,885
9,316,078
---------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT - 0.33%
20,629 BALL CORPORATION 904,169
28,949 FORTUNE BRANDS INCORPORATED 2,334,158
40,566 ILLINOIS TOOL WORKS INCORPORATED 3,906,911
11,533 SNAP-ON INCORPORATED 439,638
7,584,876
---------------
FINANCIAL SERVICES - 0.04%
42,486 JANUS CAPITAL GROUP INCORPORATED 984,401
---------------
FOOD & KINDRED PRODUCTS - 3.05%
153,577 ANHEUSER-BUSCH COMPANIES INCORPORATED<< 6,568,488
129,334 ARCHER-DANIELS-MIDLAND COMPANY 4,352,089
36,454 CAMPBELL SOUP COMPANY 1,181,110
60,021 COCA-COLA ENTERPRISES INCORPORATED 1,220,827
102,718 CONAGRA FOODS INCORPORATED 2,204,328
38,999 CONSTELLATION BRANDS INCORPORATED CLASS A<<+ 976,925
70,458 GENERAL MILLS INCORPORATED 3,570,812
22,330 HERCULES INCORPORATED<<+ 308,154
22
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
FOOD & KINDRED PRODUCTS (CONTINUED)
35,451 HERSHEY FOODS CORPORATION $ 1,851,606
66,270 HJ HEINZ COMPANY 2,512,958
49,729 KELLOGG COMPANY 2,190,065
26,233 MCCORMICK & COMPANY INCORPORATED 888,249
11,354 MOLSON COORS BREWING COMPANY 779,112
26,749 PEPSI BOTTLING GROUP INCORPORATED 812,902
327,735 PEPSICO INCORPORATED 18,939,806
150,369 SARA LEE CORPORATION<< 2,688,598
407,513 THE COCA-COLA COMPANY<< 17,062,569
49,842 TYSON FOODS INCORPORATED CLASS A 684,829
35,104 WM. WRIGLEY JR. COMPANY<< 2,246,656
71,040,083
---------------
FOOD STORES - 0.62%
72,954 ALBERTSON'S INCORPORATED 1,872,729
143,512 KROGER COMPANY 2,921,905
88,958 SAFEWAY INCORPORATED 2,234,625
151,005 STARBUCKS CORPORATION+ 5,683,828
27,482 WHOLE FOODS MARKET INCORPORATED 1,825,904
14,538,991
---------------
FORESTRY - 0.15%
48,120 WEYERHAEUSER COMPANY 3,485,332
---------------
FURNITURE & FIXTURES - 0.21%
36,079 LEGGETT & PLATT INCORPORATED 879,245
82,351 MASCO CORPORATION 2,675,584
54,300 NEWELL RUBBERMAID INCORPORATED<< 1,367,817
4,922,646
---------------
GENERAL MERCHANDISE STORES - 1.98%
22,539 BIG LOTS INCORPORATED<<+ 314,645
62,634 DOLLAR GENERAL CORPORATION 1,106,743
30,715 FAMILY DOLLAR STORES INCORPORATED 817,019
53,848 FEDERATED DEPARTMENT STORES INCORPORATED 3,930,904
45,941 JC PENNEY COMPANY INCORPORATED 2,775,296
19,743 SEARS HOLDINGS CORPORATION<<+ 2,610,814
173,917 TARGET CORPORATION 9,045,423
91,132 TJX COMPANIES INCORPORATED 2,261,896
494,164 WAL-MART STORES INCORPORATED 23,344,307
46,207,047
---------------
HEALTH SERVICES - 0.54%
88,748 CAREMARK RX INCORPORATED+ 4,364,627
80,695 HCA INCORPORATED<< 3,695,024
47,604 HEALTH MANAGEMENT ASSOCIATION INCORPORATED CLASS A 1,026,818
24,786 LABORATORY CORPORATION OF AMERICA HOLDINGS+ 1,449,485
15,641 MANOR CARE INCORPORATED 693,678
23
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
HEALTH SERVICES (CONTINUED)
93,034 TENET HEALTHCARE CORPORATION+ $ 686,591
20,104 WATSON PHARMACEUTICALS INCORPORATED+ 577,789
12,494,012
---------------
HOLDING & OTHER INVESTMENT OFFICES - 0.95%
19,102 APARTMENT INVESTMENT & MANAGEMENT COMPANY CLASS A 895,884
42,195 ARCHSTONE-SMITH TRUST 2,057,850
17,750 BOSTON PROPERTIES INCORPORATED 1,655,188
80,347 EQUITY OFFICE PROPERTIES TRUST 2,698,052
57,450 EQUITY RESIDENTIAL 2,688,085
39,728 KIMCO REALTY CORPORATION 1,614,546
36,461 PLUM CREEK TIMBER COMPANY<< 1,346,505
48,167 PROLOGIS 2,576,934
16,355 PUBLIC STORAGE INCORPORATED<< 1,328,517
36,185 SIMON PROPERTY GROUP INCORPORATED<< 3,044,606
23,473 VORNADO REALTY TRUST<< 2,253,408
22,159,575
---------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 0.34%
55,478 BED BATH & BEYOND INCORPORATED+ 2,130,355
80,439 BEST BUY COMPANY INCORPORATED 4,498,954
30,117 CIRCUIT CITY STORES INCORPORATED 737,264
26,631 RADIO SHACK CORPORATION 512,114
7,878,687
---------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 0.29%
65,192 HILTON HOTELS CORPORATION 1,659,788
32,091 MARRIOTT INTERNATIONAL INCORPORATED CLASS A 2,201,443
42,695 STARWOOD HOTELS & RESORTS WORLDWIDE INCORPORATED 2,891,732
6,752,963
---------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 5.58%
149,349 3M COMPANY 11,304,226
35,259 AMERICAN STANDARD COMPANIES INCORPORATED 1,511,201
168,476 APPLE COMPUTER INCORPORATED+ 10,566,815
313,850 APPLIED MATERIALS INCORPORATED<< 5,495,514
67,706 BAKER HUGHES INCORPORATED<< 4,631,090
15,308 BLACK & DECKER CORPORATION 1,330,112
132,708 CATERPILLAR INCORPORATED<< 9,529,762
9,189 CUMMINS INCORPORATED<< 965,764
46,862 DEERE & COMPANY 3,704,441
465,565 DELL INCORPORATED+ 13,855,214
40,216 DOVER CORPORATION 1,952,889
29,454 EATON CORPORATION<< 2,149,258
470,160 EMC CORPORATION+ 6,408,281
52,279 GATEWAY INCORPORATED+ 114,491
559,508 HEWLETT-PACKARD COMPANY 18,407,813
64,780 INGERSOLL-RAND COMPANY CLASS A 2,707,156
24
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (CONTINUED)
310,040 INTERNATIONAL BUSINESS MACHINES CORPORATION<< $ 25,568,999
21,421 LEXMARK INTERNATIONAL INCORPORATED<<+ 972,085
34,562 NATIONAL-OILWELL VARCO INCORPORATED<<+ 2,216,115
24,711 PALL CORPORATION 770,736
23,684 PARKER HANNIFIN CORPORATION 1,909,167
44,900 PITNEY BOWES INCORPORATED<< 1,927,557
180,915 SOLECTRON CORPORATION+ 723,660
14,330 STANLEY WORKS 725,958
50,044 SYMBOL TECHNOLOGIES INCORPORATED 529,466
129,977,770
---------------
INSURANCE AGENTS, BROKERS & SERVICE - 0.44%
63,688 AON CORPORATION<< 2,643,689
32,340 HUMANA INCORPORATED+ 1,702,701
26,906 JEFFERSON-PILOT CORPORATION 1,505,121
108,205 MARSH & MCLENNAN COMPANIES INCORPORATED 3,176,899
59,075 UNUMPROVIDENT CORPORATION<< 1,209,856
10,238,266
---------------
INSURANCE CARRIERS - 5.81%
63,761 ACE LIMITED 3,316,210
112,181 AETNA INCORPORATED 5,512,574
98,546 AFLAC INCORPORATED 4,447,381
127,588 ALLSTATE CORPORATION 6,648,611
20,874 AMBAC FINANCIAL GROUP INCORPORATED 1,661,570
513,454 AMERICAN INTERNATIONAL GROUP INCORPORATED 33,934,175
39,545 CHUBB CORPORATION 3,774,175
23,949 CIGNA CORPORATION 3,128,218
34,441 CINCINNATI FINANCIAL CORPORATION 1,448,933
74,531 GENWORTH FINANCIAL INCORPORATED 2,491,571
59,831 HARTFORD FINANCIAL SERVICES GROUP INCORPORATED 4,819,387
34,269 LINCOLN NATIONAL CORPORATION<< 1,870,745
26,842 LOEWS CORPORATION 2,716,410
26,509 MBIA INCORPORATED<< 1,593,986
149,937 METLIFE INCORPORATED 7,252,453
17,307 MGIC INVESTMENT CORPORATION<< 1,153,166
55,289 PRINCIPAL FINANCIAL GROUP INCORPORATED 2,698,103
38,912 PROGRESSIVE CORPORATION 4,056,965
97,919 PRUDENTIAL FINANCIAL INCORPORATED 7,423,239
24,385 SAFECO CORPORATION 1,224,371
137,663 ST. PAUL TRAVELERS COMPANIES INCORPORATED 5,752,937
20,487 TORCHMARK CORPORATION 1,169,808
268,296 UNITEDHEALTH GROUP INCORPORATED 14,987,015
130,558 WELLPOINT INCORPORATED+ 10,109,106
34,503 XL CAPITAL LIMITED CLASS A 2,211,987
135,403,096
---------------
25
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
LEATHER & LEATHER PRODUCTS - 0.11%
75,834 COACH INCORPORATED+ $ 2,622,340
---------------
LUMBER & WOOD PRODUCTS, EXCEPT FURNITURE - 0.02%
20,975 LOUISIANA-PACIFIC CORPORATION<< 570,520
---------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 2.93%
84,815 AGILENT TECHNOLOGIES INCORPORATED+ 3,184,803
29,998 ALLERGAN INCORPORATED<< 3,254,783
36,254 APPLERA CORPORATION-APPLIED BIOSYSTEMS GROUP 983,934
10,636 BAUSCH & LOMB INCORPORATED 677,513
128,280 BAXTER INTERNATIONAL INCORPORATED 4,978,547
48,927 BECTON DICKINSON & COMPANY 3,012,925
48,964 BIOMET INCORPORATED+ 1,739,201
117,014 BOSTON SCIENTIFIC CORPORATION<<+ 2,697,173
20,574 C.R. BARD INCORPORATED 1,395,123
46,929 DANAHER CORPORATION 2,982,338
56,815 EASTMAN KODAK COMPANY<< 1,615,819
24,410 FISHER SCIENTIFIC INTERNATIONAL INCORPORATED<<+ 1,661,100
67,031 GUIDANT CORPORATION<< 5,232,440
238,766 MEDTRONIC INCORPORATED 12,117,374
10,300 MILLIPORE CORPORATION+ 752,518
25,873 PERKINELMER INCORPORATED 607,239
88,248 RAYTHEON COMPANY 4,045,288
35,059 ROCKWELL AUTOMATION INCORPORATED 2,521,093
72,515 ST. JUDE MEDICAL INCORPORATED+ 2,973,115
57,803 STRYKER CORPORATION<< 2,562,985
16,143 TEKTRONIX INCORPORATED 576,467
39,186 TERADYNE INCORPORATED+ 607,775
32,080 THERMO ELECTRON CORPORATION+ 1,189,847
20,675 WATERS CORPORATION+ 892,126
184,228 XEROX CORPORATION<<+ 2,800,266
49,012 ZIMMER HOLDINGS INCORPORATED<<+ 3,313,211
68,375,003
---------------
MEDICAL MANAGEMENT SERVICES - 0.07%
31,714 COVENTRY HEALTH CARE INCORPORATED+ 1,711,922
---------------
MEMBERSHIP ORGANIZATIONS - 0.00%
4,627 TRONOX INC COMMON CLASS B+ 78,606
---------------
METAL MINING - 0.43%
36,407 FREEPORT-MCMORAN COPPER & GOLD INCORPORATED CLASS B 2,176,047
88,381 NEWMONT MINING CORPORATION 4,586,090
40,261 PHELPS DODGE CORPORATION 3,242,218
10,004,355
---------------
MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS - 0.07%
19,859 VULCAN MATERIALS COMPANY 1,720,782
---------------
26
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MISCELLANEOUS MANUFACTURING INDUSTRIES - 2.09%
35,208 HASBRO INCORPORATED $ 742,889
588,715 JOHNSON & JOHNSON 34,863,702
76,899 MATTEL INCORPORATED<< 1,394,179
28,138 TIFFANY & COMPANY<< 1,056,300
398,676 TYCO INTERNATIONAL LIMITED 10,716,411
48,773,481
---------------
MISCELLANEOUS RETAIL - 1.26%
61,030 AMAZON.COM INCORPORATED+<< 2,228,205
93,598 COSTCO WHOLESALE CORPORATION 5,069,268
161,697 CVS CORPORATION 4,829,889
12,185 DILLARDS INCORPORATED CLASS A 317,297
28,954 EXPRESS SCRIPTS INCORPORATED<<+ 2,545,057
58,491 OFFICE DEPOT INCORPORATED+ 2,178,205
144,144 STAPLES INCORPORATED 3,678,555
200,207 WALGREEN COMPANY 8,634,928
29,481,404
---------------
MOTION PICTURES - 1.44%
474,853 NEWS CORPORATION CLASS A 7,887,308
891,222 TIME WARNER INCORPORATED 14,963,618
380,962 WALT DISNEY COMPANY<< 10,625,030
33,475,956
---------------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING - 0.74%
216,039 UNITED PARCEL SERVICE INCORPORATED CLASS B 17,149,176
---------------
NON-DEPOSITORY CREDIT INSTITUTIONS - 2.00%
244,829 AMERICAN EXPRESS COMPANY 12,865,764
59,563 CAPITAL ONE FINANCIAL CORPORATION<< 4,796,013
39,518 CIT GROUP INCORPORATED 2,115,003
119,282 COUNTRYWIDE FINANCIAL CORPORATION<< 4,377,649
191,467 FANNIE MAE 9,841,404
136,691 FREDDIE MAC 8,338,151
82,551 SLM CORPORATION 4,287,699
46,621,683
---------------
OIL & GAS EXTRACTION - 3.36%
45,585 ANADARKO PETROLEUM CORPORATION 4,604,541
65,340 APACHE CORPORATION 4,280,424
64,124 BJ SERVICES COMPANY 2,218,690
74,354 BURLINGTON RESOURCES INCORPORATED 6,833,876
73,908 CHESAPEAKE ENERGY CORPORATION 2,321,450
87,408 DEVON ENERGY CORPORATION 5,346,747
47,980 EOG RESOURCES INCORPORATED 3,454,560
102,120 HALLIBURTON COMPANY 7,456,803
22,945 KERR-MCGEE CORPORATION 2,190,789
31,258 NABORS INDUSTRIES LIMITED+ 2,237,448
27
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
OIL & GAS EXTRACTION (CONTINUED)
27,130 NOBLE CORPORATION<< $ 2,200,243
85,212 OCCIDENTAL PETROLEUM CORPORATION 7,894,892
21,623 ROWAN COMPANIES INCORPORATED<<+ 950,547
116,883 SCHLUMBERGER LIMITED 14,793,881
64,481 TRANSOCEAN INCORPORATED<<+ 5,177,824
68,999 WEATHERFORD INTERNATIONAL LIMITED+ 3,156,704
71,846 XTO ENERGY INCORPORATED 3,130,330
78,249,749
---------------
PAPER & ALLIED PRODUCTS - 0.53%
20,830 BEMIS COMPANY INCORPORATED 657,811
97,443 INTERNATIONAL PAPER COMPANY 3,368,605
91,163 KIMBERLY-CLARK CORPORATION 5,269,221
35,897 MEADWESTVACO CORPORATION 980,347
14,015 OFFICEMAX INCORPORATED 422,833
28,343 PACTIV CORPORATION+ 695,537
21,929 TEMPLE-INLAND INCORPORATED 976,937
12,371,291
---------------
PERSONAL SERVICES - 0.11%
27,253 CINTAS CORPORATION 1,161,523
64,812 H & R BLOCK INCORPORATED 1,403,180
2,564,703
---------------
PETROLEUM REFINING & RELATED INDUSTRIES - 5.84%
15,832 AMERADA HESS CORPORATION 2,254,477
14,097 ASHLAND INCORPORATED 1,002,015
440,371 CHEVRONTEXACO CORPORATION 25,528,307
272,695 CONOCOPHILLIPS<< 17,220,689
1,207,933 EXXON MOBIL CORPORATION 73,514,802
72,560 MARATHON OIL CORPORATION 5,526,895
32,663 MURPHY OIL CORPORATION 1,627,271
26,342 SUNOCO INCORPORATED 2,043,349
123,009 VALERO ENERGY CORPORATION 7,353,478
136,071,283
---------------
PRIMARY METAL INDUSTRIES - 0.51%
172,460 ALCOA INCORPORATED 5,270,378
17,102 ALLEGHENY TECHNOLOGIES INCORPORATED 1,046,300
24,481 ENGELHARD CORPORATION 969,693
30,742 NUCOR CORPORATION 3,221,454
21,528 UNITED STATES STEEL CORPORATION 1,306,319
11,814,144
---------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 0.97%
152,855 CBS CORPORATION CLASS B 3,665,463
11,678 DOW JONES & COMPANY INCORPORATED<< 458,945
16,827 E.W. SCRIPPS COMPANY CLASS A 752,335
28
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
PRINTING, PUBLISHING & ALLIED INDUSTRIES (CONTINUED)
47,095 GANNETT COMPANY INCORPORATED<< $ 2,821,933
13,253 KNIGHT-RIDDER INCORPORATED<< 837,722
72,634 MCGRAW-HILL COMPANIES INCORPORATED 4,185,171
8,282 MEREDITH CORPORATION 462,053
28,721 NEW YORK TIMES COMPANY CLASS A<< 726,929
42,720 RR DONNELLEY & SONS COMPANY 1,397,798
51,791 TRIBUNE COMPANY 1,420,627
152,866 VIACOM INCORPORATED CLASS B+ 5,931,201
22,660,177
---------------
RAILROAD TRANSPORTATION - 0.77%
73,777 BURLINGTON NORTHERN SANTA FE CORPORATION 6,147,837
43,407 CSX CORPORATION<< 2,595,739
81,547 NORFOLK SOUTHERN CORPORATION 4,409,246
52,409 UNION PACIFIC CORPORATION 4,892,380
18,045,202
---------------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS - 0.07%
12,131 COOPER TIRE & RUBBER COMPANY 173,959
16,101 SEALED AIR CORPORATION 931,765
35,009 THE GOODYEAR TIRE & RUBBER COMPANY<<+ 506,930
1,612,654
---------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 2.82%
49,582 AMERIPRISE FINANCIAL INCORPORATED 2,234,165
23,612 BEAR STEARNS COMPANIES INCORPORATED 3,274,984
204,117 CHARLES SCHWAB CORPORATION 3,512,854
82,669 E*TRADE FINANCIAL CORPORATION+ 2,230,410
16,663 FEDERATED INVESTORS INCORPORATED CLASS B 650,690
30,188 FRANKLIN RESOURCES INCORPORATED 2,844,917
86,248 GOLDMAN SACHS GROUP INCORPORATED 13,537,486
53,491 LEHMAN BROTHERS HOLDINGS INCORPORATED 7,731,054
181,656 MERRILL LYNCH & COMPANY INCORPORATED 14,307,226
212,412 MORGAN STANLEY 13,343,722
26,119 T. ROWE PRICE GROUP INCORPORATED 2,042,767
65,710,275
---------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 0.35%
305,820 CORNING INCORPORATED+ 8,229,616
---------------
TOBACCO PRODUCTS - 1.39%
412,833 ALTRIA GROUP INCORPORATED 29,253,346
16,921 REYNOLDS AMERICAN INCORPORATED<< 1,785,165
32,356 UST INCORPORATED 1,346,010
32,384,521
---------------
29
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
TRANSPORTATION BY AIR - 0.40%
60,112 FEDEX CORPORATION $ 6,789,050
140,074 SOUTHWEST AIRLINES COMPANY 2,519,931
9,308,981
---------------
TRANSPORTATION EQUIPMENT - 2.90%
158,329 BOEING COMPANY 12,338,579
18,796 BRUNSWICK CORPORATION 730,413
368,757 FORD MOTOR COMPANY<< 2,935,306
79,182 GENERAL DYNAMICS CORPORATION 5,066,065
111,866 GENERAL MOTORS CORPORATION<< 2,379,390
34,205 GENUINE PARTS COMPANY<< 1,499,205
24,412 GOODRICH CORPORATION 1,064,607
53,911 HARLEY-DAVIDSON INCORPORATED<< 2,796,903
164,308 HONEYWELL INTERNATIONAL INCORPORATED 7,027,453
36,538 ITT INDUSTRIES INCORPORATED 2,054,166
38,410 JOHNSON CONTROLS INCORPORATED 2,916,471
70,871 LOCKHEED MARTIN CORPORATION 5,324,538
12,204 NAVISTAR INTERNATIONAL CORPORATION+ 336,586
69,375 NORTHROP GRUMMAN CORPORATION 4,737,619
33,488 PACCAR INCORPORATED 2,360,234
26,185 TEXTRON INCORPORATED 2,445,417
200,868 UNITED TECHNOLOGIES CORPORATION 11,644,318
67,657,270
---------------
TRANSPORTATION SERVICES - 0.03%
26,081 SABRE HOLDINGS CORPORATION 613,686
---------------
WATER TRANSPORTATION - 0.17%
85,887 CARNIVAL CORPORATION<< 4,068,467
---------------
WHOLESALE TRADE NON-DURABLE GOODS - 1.08%
41,347 AMERISOURCEBERGEN CORPORATION 1,995,820
16,450 BROWN-FORMAN CORPORATION CLASS B 1,266,157
83,468 CARDINAL HEALTH INCORPORATED 6,220,035
26,842 DEAN FOODS COMPANY+ 1,042,275
60,556 MCKESSON CORPORATION 3,156,784
60,216 MEDCO HEALTH SOLUTIONS INCORPORATED+ 3,445,560
37,439 NIKE INCORPORATED CLASS B 3,186,059
26,939 SUPERVALU INCORPORATED<< 830,260
122,510 SYSCO CORPORATION 3,926,445
25,069,395
---------------
WHOLESALE TRADE DURABLE GOODS - 0.09%
27,425 PATTERSON COMPANIES INCORPORATED+ 965,360
15,124 W.W. GRAINGER INCORPORATED 1,139,593
2,104,953
---------------
TOTAL COMMON STOCKS (COST $1,832,740,086) 2,326,477,440
---------------
30
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
RIGHTS - 0.00%
32,300 SEAGATE TECHNOLOGY RIGHTS(A) $ 0
TOTAL RIGHTS (COST $0) 0
---------------
COLLATERAL FOR SECURITIES LENDING - 10.67%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.01%
85,895 SCUDDER DAILY ASSETS MONEY MARKET FUND 85,895
65,084 SHORT TERM INVESTMENT COMPANY MONEY MARKET FUND 65,084
150,979
---------------
PRINCIPAL INTEREST RATE MATURITY DATE
COLLATERAL INVESTED IN OTHER ASSETS - 10.66%
$ 900,300 AMERICAN GENERAL FINANCE CORPORATION+/- 4.78% 04/13/2007 900,669
374,825 APRECO LLC 4.62 05/15/2006 372,730
820,373 APRECO LLC 4.94 06/15/2006 812,293
500,167 ASPEN FUNDING CORPORATION 4.92 04/03/2006 500,167
5,001,667 ATLAS CAPITAL FUNDING CORPORATION SERIES
MTN+/- 4.62 11/03/2006 5,001,667
563,088 ATLAS CAPITAL FUNDING LIMITED 4.80 04/17/2006 562,046
1,200,400 ATLAS CAPITAL FUNDING LIMITED 4.62 05/15/2006 1,193,690
2,500,833 ATLAS CAPITAL FUNDING LIMITED+/- 4.80 10/20/2006 2,500,833
2,500,833 ATLAS CAPITAL FUNDING LIMITED+/- 4.80 12/22/2006 2,500,833
400,133 ATOMIUM FUNDING CORPORATION 4.53 04/12/2006 399,657
347,016 BETA FINANCE INCORPORATED SERIES MTN+/- 4.88 06/02/2006 347,061
49,816,601 BNP PARIBAS REPURCHASE AGREEMENT
(MATURITY VALUE $ 49,837,067) 4.93 04/03/2006 49,816,601
1,484,895 BUCKINGHAM CDO LLC++ 4.60 04/06/2006 1,484,301
4,868,222 BUCKINGHAM CDO LLC 4.82 04/21/2006 4,856,636
2,500,833 BUCKINGHAM CDO LLC 4.82 04/25/2006 2,493,556
2,600,867 BUCKINGHAM II CDO LLC++ 4.83 04/25/2006 2,593,298
10,003,334 BUCKINGHAM II CDO LLC 4.83 04/26/2006 9,972,924
3,001,000 CAIRN HIGH GRADE FUNDING I 4.59 04/06/2006 2,999,800
240,080 CAIRN HIGH GRADE FUNDING I 4.71 04/26/2006 239,350
4,201,400 CAIRN HIGH GRADE FUNDING I 4.83 04/27/2006 4,188,082
2,500,833 CAIRN HIGH GRADE FUNDING I++ 4.83 05/02/2006 2,491,255
1,300,433 CAIRN HIGH GRADE FUNDING I 4.77 05/10/2006 1,294,035
5,030,176 CEDAR SPRINGS CAPITAL COMPANY LLC 4.78 04/05/2006 5,028,869
1,380,460 CEDAR SPRINGS CAPITAL COMPANY LLC 4.69 05/08/2006 1,374,027
444,848 CEDAR SPRINGS CAPITAL COMPANY LLC 4.70 05/10/2006 442,660
2,000,667 CEDAR SPRINGS CAPITAL COMPANY LLC 4.72 05/12/2006 1,990,283
1,000,333 CEDAR SPRINGS CAPITAL COMPANY LLC 4.90 06/07/2006 991,560
2,662,387 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.92 06/12/2006 2,637,228
5,501,833 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.72 04/12/2006 5,501,834
1,000,333 CONCORD MINUTEMEN CAPITAL COMPANY+/- 4.75 04/18/2007 1,000,333
3,521,173 CONSOLIDATED EDISON INCORPORATED 4.90 04/03/2006 3,521,173
250,083 CORPORATE ASSET SECURITIZATION AUSTRALIA
LIMITED 4.81 04/13/2006 249,753
3,101,033 CREDIT SUISSE FIRST BOSTON NEW YORK SERIES
YCD1+/- 4.92 05/04/2006 3,099,483
2,500,833 CULLINAN FINANCE CORPORATION+/- 4.71 11/15/2006 2,500,733
2,000,667 DEER VALLEY FUNDING LLC++ 4.51 04/10/2006 1,998,806
31
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 2,556,352 DEER VALLEY FUNDING LLC 4.81% 04/17/2006 $ 2,551,623
6,094,731 DEER VALLEY FUNDING LLC 4.83 04/19/2006 6,081,810
1,300,433 DEER VALLEY FUNDING LLC 4.80 05/03/2006 1,295,271
5,001,667 DEUTSCHE BANK REPURCHASE AGREEMENT
(MATURITY VALUE $ 5,003,684) 4.84 04/03/2006 5,001,667
4,790,496 EIFFEL FUNDING LLC 4.91 04/03/2006 4,790,496
300,100 EIFFEL FUNDING LLC 4.78 04/17/2006 299,545
3,603,301 EUREKA SECURITIZATION INCORPORATED 4.88 05/16/2006 3,582,690
82,427 GALLEON CAPITAL LLC 4.65 04/03/2006 82,428
150,050 GEMINI SECURITIZATION INCORPORATED 4.90 05/24/2006 149,028
2,400,800 GOLDMAN SACHS GROUP INCORPORATED+/- 4.97 06/30/2006 2,400,800
7,167,389 HARRIER FINANCE FUNDING LLC 4.62 04/03/2006 7,167,389
1,600,533 ING USA ANNUITY & LIFE INSURANCE+/- 5.03 06/06/2006 1,600,533
20,087,670 JP MORGAN CHASE SECURITIES CORPORATION
REPURCHASE AGREEMENT (MATURITY VALUE
$ 20,095,923) 4.93 04/03/2006 20,087,670
130,043 K2 (USA) LLC 4.63 05/02/2006 129,545
462,654 K2 (USA) LLC SERIES MTN+/- 4.87 07/24/2006 462,770
1,500,500 KAUPTHING BANK HF SERIES MTN+/-++ 4.84 03/20/2007 1,500,200
200,067 KLIO II FUNDING CORPORATION 4.58 04/05/2006 200,015
241,080 KLIO III FUNDING CORPORATION 4.69 04/19/2006 240,569
100,033 LEXINGTON PARKER CAPITAL CORPORATION 4.62 05/02/2006 99,650
379,727 LEXINGTON PARKER CAPITAL CORPORATION 4.69 05/10/2006 377,858
2,500,833 LIBERTY LIGHT US CAPITAL SERIES MTN+/- 4.81 05/26/2006 2,500,983
200,067 LINKS FINANCE LLC SERIES MTN1+/- 4.68 09/12/2006 200,069
600,200 LIQUID FUNDING LIMITED+/- 4.94 04/24/2006 600,224
2,300,767 LIQUID FUNDING LIMITED+/- 4.71 08/14/2006 2,300,767
1,500,500 LIQUID FUNDING LIMITED+/- 4.61 12/01/2006 1,500,500
600,200 LIQUID FUNDING LIMITED SERIES MTN+/- 4.83 02/20/2007 600,170
1,000,333 MBIA GLOBAL FUNDING LLC+/- 4.78 02/20/2007 1,000,273
5,026,675 MERRILL LYNCH & COMPANY SERIES MTN+/- 4.80 10/27/2006 5,030,445
3,001,000 MORGAN STANLEY+/- 4.94 10/10/2006 3,001,000
462,654 MORGAN STANLEY SERIES EXL+/- 4.78 08/13/2010 462,779
1,722,474 MORTGAGE INTEREST NET TRUST 4.68 04/03/2006 1,722,474
2,260,753 MORTGAGE INTEREST NET TRUST 4.78 05/03/2006 2,251,778
100,033 NATIONWIDE BUILDING SOC+/- 4.74 07/21/2006 100,081
2,206,035 NEWPORT FUNDING CORPORATION 4.92 04/03/2006 2,206,035
3,028,909 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 4.78 04/03/2006 3,028,909
3,501,167 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.68 04/04/2006 3,500,712
445,949 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.93 06/26/2006 440,892
190,063 NORDEA NORTH AMERICA INCORPORATED 4.89 05/15/2006 189,001
5,276,758 NORTHERN ROCK PLC+/- 4.63 04/21/2006 5,276,020
395,432 NORTHERN ROCK PLC 4.69 04/24/2006 394,333
5,001,667 NORTHERN ROCK PLC+/- 4.66 02/05/2007 5,001,717
404,635 RACERS TRUST 2004-6-MM+/- 4.79 05/22/2006 404,692
100,033 SCALDIS CAPITAL LIMITED 4.93 06/15/2006 99,048
400,133 TANGO FINANCE CORPORATION 4.95 06/21/2006 395,868
1,156,685 TANGO FINANCE CORPORATION SERIES MTN+/- 4.87 10/25/2006 1,157,067
32
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 578,293 TRAVELERS INSURANCE COMPANY+/- 4.77% 02/09/2007 $ 578,281
2,500,833 UNICREDITO ITALIANO SERIES LIB+/- 4.70 03/09/2007 2,500,683
2,500,833 UNICREDITO ITALIANO SERIES YCD+/- 4.47 04/03/2006 2,500,833
3,801,267 US BANK NA SERIES BKNT+/- 4.66 07/28/2006 3,801,381
1,000,333 WHISTLEJACKET CAPITAL LIMITED+/- 4.65 06/09/2006 1,000,333
100,033 WHITE PINE FINANCE LLC 4.64 04/18/2006 99,835
500,167 WHITE PINE FINANCE LLC 4.82 05/05/2006 498,036
408,336 WHITE PINE FINANCE LLC 4.84 05/25/2006 405,498
307,302 WHITE PINE FINANCE LLC 4.93 06/20/2006 304,067
2,639,780 WHITE PINE FINANCE LLC 4.93 06/22/2006 2,611,270
2,500,833 WHITE PINE FINANCE LLC+/- 4.70 07/17/2006 2,500,833
2,400,800 WHITE PINE FINANCE LLC SERIES MTN1+/- 4.81 06/12/2006 2,401,016
248,527,686
----------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $248,678,665) 248,678,665
----------------
SHORT-TERM INVESTMENTS - 0.96%
SHARES
MUTUAL FUND - 0.90%
20,878,671 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~& 20,878,671
----------------
PRINCIPAL
US TREASURY BILLS - 0.06%
$ 95,000 US TREASURY BILL^# 4.16 05/11/2006 94,560
1,385,000 US TREASURY BILL^# 4.48 08/10/2006 1,362,507
1,457,067
----------------
TOTAL SHORT-TERM INVESTMENTS (COST $22,336,023) 22,335,738
----------------
TOTAL INVESTMENTS IN SECURITIES
(COST $2,103,754,774)* 111.42% $ 2,597,491,843
OTHER ASSETS AND LIABILITIES, NET (11.42) (266,225,840)
------ ----------------
TOTAL NET ASSETS 100.00% $ 2,331,266,003
======= ================
<< ALL OR A PORTION OF THIS SECURITY IS ON LOAN. (SEE NOTE 2)
+ NON-INCOME EARNING SECURITIES.
(A) SECURITY FAIR VALUED IN ACCORDANCE WITH THE PROCEDURES APPROVED BY THE
BOARD OF TRUSTEES.
+/- VARIABLE RATE INVESTMENTS.
++ SECURITIES THAT MAY BE RESOLD TO "QUALIFIED INSTITUTIONAL BUYERS" UNDER
RULE 144A OR SECURITIES OFFERED PURSUANT TO SECTION 4 (2) OF THE
SECURITIES ACT OF 1933, AS AMENDED.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
& SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $33,742,234.
^ ZERO COUPON BOND. INTEREST RATE PRESENTED IS YIELD TO MATURITY.
# SECURITY PLEDGED AS COLLATERAL FOR FUTURES TRANSACTIONS.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
33
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
STATEMENT OF ASSETS AND LIABILITIES -- MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX
PORTFOLIO
- --------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE .............................. $ 2,306,760,452
COLLATERAL FOR SECURITIES LOANED (NOTE 2) ................... 248,678,665
INVESTMENTS IN AFFILIATES ................................... 42,052,726
---------------
TOTAL INVESTMENTS AT MARKET VALUE (SEE COST BELOW) ............. 2,597,491,843
---------------
RECEIVABLES FOR DIVIDENDS AND INTEREST ...................... 2,760,141
---------------
TOTAL ASSETS ................................................... 2,600,251,984
---------------
LIABILITIES
PAYABLE FOR DAILY VARIATION MARGIN ON FUTURES CONTRACTS ..... 35,700
PAYABLE FOR INVESTMENTS PURCHASED ........................... 19,934,622
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) ....... 219,528
PAYABLE TO THE TRUSTEES AND SHAREHOLDER SERVICING AGENT ..... 3,386
PAYABLE FOR SECURITIES LOANED (NOTE 2) ...................... 248,678,665
ACCRUED EXPENSES AND OTHER LIABILITIES ...................... 114,080
---------------
TOTAL LIABILITIES .............................................. 268,985,981
---------------
TOTAL NET ASSETS ............................................... $ 2,331,266,003
===============
INVESTMENTS AT COST ............................................ $ 2,103,754,774
===============
SECURITIES ON LOAN, AT MARKET VALUE ............................ $ 237,866,126
===============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
34
STATEMENT OF OPERATIONS --
FOR THE SIX MONTHS ENDED MARCH 31, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
INDEX
PORTFOLIO
- --------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS(1) ................................................... $ 21,327,761
INTEREST ....................................................... 25,722
INCOME FROM AFFILIATED SECURITIES .............................. 472,072
SECURITIES LENDING INCOME, NET ................................. 129,583
--------------
TOTAL INVESTMENT INCOME ........................................... 21,955,138
--------------
EXPENSES
ADVISORY FEES .................................................. 953,525
CUSTODY FEES ................................................... 221,031
PROFESSIONAL FEES .............................................. 50,274
REGISTRATION FEES .............................................. 720
SHAREHOLDER REPORTS ............................................ 54,442
TRUSTEES' FEES ................................................. 3,777
OTHER FEES AND EXPENSES ........................................ 22,057
--------------
TOTAL EXPENSES .................................................... 1,305,826
--------------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) ................... (52,180)
NET EXPENSES ................................................... 1,253,646
--------------
NET INVESTMENT INCOME (LOSS) ...................................... 20,701,492
--------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- ---------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
- ---------------------------------------------------------------------------------------
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY
TRANSLATION .................................................. 23,204,909
FUTURES TRANSACTIONS ........................................... 333,516
--------------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ......................... 23,538,425
--------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
- ---------------------------------------------------------------------------------------
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY
TRANSLATION .................................................. 91,158,379
FUTURES TRANSACTIONS ........................................... (29,150)
--------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS .................................................... 91,129,229
==============
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ............ 114,667,654
--------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ... $ 135,369,146
--------------
(1) NET OF FOREIGN WITHHOLDING TAXES OF ........................ $ 0
35
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
---------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005
- ------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ................................................... $ 2,151,037,408 $ 1,846,126,209
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ........................................... 20,701,492 41,951,828
NET REALIZED GAIN (LOSS) ON INVESTMENTS ................................ 23,538,425 84,611,766
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS .... 91,129,229 139,639,605
---------------- ----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ........... 135,369,146 266,203,199
---------------- ----------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST
CONTRIBUTIONS .......................................................... 180,455,274 321,376,976
WITHDRAWALS ............................................................ (135,595,825) (282,668,976)
---------------- ----------------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS ................................................... 44,859,449 38,708,000
---------------- ----------------
NET INCREASE (DECREASE) IN NET ASSETS ..................................... 180,228,595 304,911,199
---------------- ----------------
ENDING NET ASSETS ......................................................... $ 2,331,266,003 $ 2,151,037,408
================ ================
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
36
FINANCIAL HIGHLIGHTS WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
RATIO TO AVERAGE NET ASSETS (ANNUALIZED)(1)
--------------------------------------------------- PORTFOLIO
NET INVESTMENT GROSS EXPENSES NET TOTAL TURNOVER
INCOME (LOSS) EXPENSES WAIVED EXPENSES RETURN(2) RATE
- ---------------------------------------------------------------------------------------------------------------------------------
INDEX PORTFOLIO
- ---------------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2005 TO MARCH 31, 2006 (UNAUDITED) .... 1.87% 0.12% 0.00% 0.12% 6.34% 3%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 2.08% 0.12% (0.08)% 0.04% 12.23% 8%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 1.71% 0.17% (0.14)% 0.03% 13.87% 2%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 1.70% 0.18% (0.05)% 0.13% 24.42% 3%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ 1.40% 0.18% (0.05)% 0.13% (20.52)% 4%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ 1.23% 0.18% (0.05)% 0.13% (26.56)% 2%
(1) DURING EACH PERIOD, VARIOUS FEES AND EXPENSES WERE WAIVED AND REIMBURSED AS
INDICATED. THE RATIO OF GROSS EXPENSES TO AVERAGE NET ASSETS REFLECTS THE
EXPENSE RATIO IN THE ABSENCE OF ANY WAIVERS AND REIMBURSEMENTS (NOTE 3).
(2) TOTAL RETURN CALCULATIONS DO NOT INCLUDE ANY SALES CHARGES, AND WOULD HAVE
BEEN LOWER HAS CERTAIN EXPENSES NOT BEEN WAIVED OR REIMBURSED DURING THE PERIODS
SHOWN. RETURNS FOR PERIODS LESS THAN YEAR ARE NOT ANNUALIZED.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
37
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
1. ORGANIZATION
- --------------------------------------------------------------------------------
Wells Fargo Master Trust (the "Trust") is registered as an open-end
management investment company under the Investment Company Act of 1940, as
amended (the "1940 Act"). The Trust currently has 19 separate investment
portfolios (each, a "Fund" and collectively, the "Funds"). These financial
statements are for the Index Portfolio.
Interests in the Funds are sold without any sales charge in private
placement transactions to qualified investors, including open-end management
investment companies.
2. SIGNIFICANT ACCOUNTING POLICIES
- --------------------------------------------------------------------------------
The following significant accounting policies, which are consistently
followed in the preparation of the financial statements of the Trust, are in
conformity with accounting principles generally accepted in the United States of
America ("GAAP") for investment companies.
The preparation of financial statements in conformity with GAAP requires
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.
In the normal course of business, the Trust may enter into contracts that
provide certain indemnifications. The Trust's maximum exposure under these
arrangements is dependent on future claims that may be made against the Funds
and, therefore, cannot be estimated; however, based on experience, the risk of
loss from such claims is considered remote.
SECURITY VALUATION
Investments in securities are valued each business day as of the close of
regular trading on the New York Stock Exchange, which is usually 4:00 p.m.
(Eastern Time). Securities which are traded on a national or foreign securities
exchange are valued at the last reported sales price. Securities listed on The
NASDAQ Stock Market, Inc. are valued at the NASDAQ Official Closing Price
("NOCP"), and if no NOCP is available, then at the last reported sales price. In
the absence of any sale of such securities, and in the case of other securities,
including U.S. Government obligations, but excluding debt securities maturing in
60 days or less, the price will be deemed "stale" and the valuations will be
determined in accordance with the Funds' Fair Valuation Procedures.
Securities denominated in foreign currencies are translated into U.S.
dollars using the closing rates of exchange in effect on the day of valuation.
Many securities markets and exchanges outside the U.S. close prior to the
close of the New York Stock Exchange and therefore may not fully reflect trading
or events that occur after the close of the principal exchange in which the
foreign investments are traded but before the close of the New York Stock
Exchange. If such trading or events are expected to materially affect the value
of the investments, then those investments are fair valued following procedures
approved by the Board of Trustees. These procedures take into account multiple
factors including movements in U.S. securities markets after foreign exchanges
close. Depending on market activity, such fair valuations may be frequent. In
light of the judgment involved in fair value decisions, there can be no
assurance that a fair value assigned to a particular security is accurate. Such
fair value pricing may result in NAVs that are higher or lower than NAVs based
on the closing price or latest quoted bid price.
Debt securities maturing in 60 days or less generally are valued at
amortized cost. The amortized cost method involves valuing a security at its
cost, plus accretion of discount or minus amortization of premium over the
period until maturity, which approximates market value.
Investments which are not valued using any of the methods discussed above
are valued at their fair value as determined by procedures approved by the Board
of Trustees.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Securities transactions are recorded on a trade date basis. Realized gains
or losses are reported on the basis of identified cost of securities delivered.
Interest income is accrued daily and bond discounts are accreted and premiums
are amortized daily.
Dividend income is recognized on the ex-dividend date, except for certain
dividends from foreign securities, which are recorded as soon as the Fund is
informed of the ex-dividend date. Dividend income from foreign securities is
recorded net of foreign taxes withheld where recovery of such taxes is not
assured.
FEDERAL INCOME TAXES
Each Fund of the Trust is treated as a separate entity for federal income
tax purposes. The Funds of the Trust are not required to pay federal income
taxes on their net investment income and net capital gain as they are treated as
partnerships for federal income tax purposes. All interest, dividends, gains and
losses of a Fund are deemed to have been "passed through" to the interestholders
in proportion to their holdings of the Fund regardless of whether such interest,
dividends, or gains have been distributed by the Fund.
FUTURES CONTRACTS
The Fund(s) may purchase futures contracts to gain exposure to market
changes, which may be more efficient or cost effective than actually buying the
securities. A futures contract is an agreement between parties to buy or sell a
security at a set price on a future date. Upon entering into such a contract, a
Fund is required to pledge to the broker an amount of cash, U.S. Government
obligations or other high-quality debt securities equal to the minimum "initial
margin" requirements of the exchange on which the futures contract is traded.
Pursuant to the contract, the Fund agrees to receive from or pay to the broker
an amount of cash equal to the daily fluctuation in the value of the contract.
Such receipts or payments are known as "variation margin" and are
38
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
recorded by the Fund as unrealized gains or losses. When the contract is closed,
the Fund records a realized gain or loss equal to the difference between the
value of the contract at the time it was opened and the value at the time it was
closed. Pursuant to regulations and/or published positions of the Securities and
Exchange Commission (the "SEC") for long futures positions, the Fund is required
to segregate highly liquid securities as permitted by the SEC in connection with
futures transactions in an amount generally equal to the value of the underlying
contracts. Risks of entering into futures contracts include the possibility that
there may be an illiquid market and that a change in the value of the contract
may not correlate with changes in the value of the underlying securities. At
March 31, 2006, the following Funds held futures contracts:
Net Unrealized
Appreciation
Portfolio Contracts Type Expiration Date Notional Amount (Depreciation)
- ----------------------------------------------------------------------------------------
INDEX PORTFOLIO 34 Long S&P 500 June 2006 $11,046,350 $31,700
- ----------------------------------------------------------------------------------------
SECURITY LOANS
The Fund(s) may loan securities in return for securities, irrevocable
letters of credit or cash collateral, which is invested in various short-term
fixed income securities. A Fund may receive compensation for lending securities
in the form of fees or by retaining a portion of interest on the investment
securities or cash received as collateral. A Fund also continues to receive
interest or dividends on the securities loaned. Security loans are secured at
all times by collateral. The collateral is equal to at least 102% of the market
value of the securities loaned plus accrued interest when the transaction is
entered into. The collateral supporting loans of domestic and foreign equity
securities and corporate bonds are remarked daily while collateral supporting
loans of U.S. Government securities are remarked back to 102% only if the given
collateral falls below 100% of the market value of the securities loans plus any
accrued interest. Gain or loss in the market price of the securities loaned that
may occur during the term of the loan are reflected in the value of the Fund.
The risks from securities lending are that the borrower may not provide
additional collateral when required or return the securities when due or when
called for by the Fund. Wells Fargo Bank, N.A., the Funds' custodian, acts as
the securities lending agent for the Funds and receives for its services 30% of
the revenues earned on the securities lending activities and incurs all
expenses. Prior to October 1, 2005, Wells Fargo Bank, N.A. received 35% of the
revenues earned on the securities lending activities and incurred all expenses.
The value of the securities on loan and the value of the related collateral at
March 31, 2006, are shown on the Statement of Assets and Liabilities.
3. EXPENSES
- --------------------------------------------------------------------------------
ADVISORY FEES
The Trust has entered into an advisory contract with Wells Fargo Funds
Management, LLC ("Funds Management"). The adviser is responsible for
implementing investment policies and guidelines and for supervising the
subadviser, who is responsible for day-to-day portfolio management.
Pursuant to the contract, Funds Management is entitled to receive an
advisory fee for its services as adviser. Funds Management may retain the
services of certain investment subadvisers to provide daily portfolio
management. The fees related to subadvisory services are borne directly by the
adviser and do not increase the overall fees paid by a Fund to the adviser.
Funds Management and the investment subadviser(s) are entitled to be paid a
monthly fee at the following annual rates:
Advisory Fees Subadvisory Fees
Average Daily (% of Average Average Daily (% of Average
Portfolio Net Assets Daily Net Assets) Subadviser Net Assets Daily Net Assets)
- ----------------------------------------------------------------------------------------------------------------
INDEX PORTFOLIO* First $500 million 0.100 Wells Capital First $100 million 0.050
Next $500 million 0.100 Management Next $100 million 0.030
Next $2 billion 0.075 Incorporated Over $200 million 0.020
Next $2 billion 0.075
Over $5 billion 0.050
- ----------------------------------------------------------------------------------------------------------------
* EFFECTIVE JANUARY 1, 2006. PRIOR TO JANUARY 1, 2006, SUBADVISER(S)
WERE ENTITLED TO BE PAID A MONTHLY FEE AT THE FOLLOWING RATES:
Subadvisory
Average Daily Fees (% of Average
Portfolio Subadviser Net Assets Daily Net Assets)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO Wells Capital First $200 million 0.020
Management Over $200 million 0.010
Incorporated
- --------------------------------------------------------------------------------
ADMINISTRATION AND TRANSFER AGENT FEES
Currently, there are no administration or transfer agency fees charged to
the Master Trust.
39
WELLS FARGO ADVANTAGE MASTER PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
CUSTODY FEES
The Trust has entered into a contract with Wells Fargo Bank, N.A. ("WFB"),
whereby WFB is responsible for providing custody services. Pursuant to the
contract, WFB is entitled to a monthly fee for custody services at the following
annual rates:
% of Average
Portfolio Daily Net Assets
- --------------------------------------------------------------------------------
INDEX PORTFOLIO 0.02
- --------------------------------------------------------------------------------
OTHER FEES
PFPC Inc. ("PFPC") serves as fund accountant for the Trust. PFPC currently
does not receive a fee for its services, but is entitled to be reimbursed for
all out-of-pocket expenses reasonably incurred in providing these services.
WAIVED FEES AND REIMBURSED EXPENSES
All amounts shown as waived fees or reimbursed expenses in the Statements
of Operations, for the year ended, were waived by Funds Management, first from
advisory fees, and then any remaining amount consecutively from custody fees
collected, if any.
4. INVESTMENT PORTFOLIO TRANSACTIONS
- --------------------------------------------------------------------------------
Purchases and sales of investments, exclusive of short-term securities
(securities with maturities of one year or less at purchase date) and U.S.
Government obligations for the period ended March 31, 2006, were as follows:
Portfolio Purchases at Cost Sales Proceeds
- --------------------------------------------------------------------------------
INDEX PORTFOLIO $155,433,837 $71,287,796
- --------------------------------------------------------------------------------
40
OTHER INFORMATION (UNAUDITED) WELLS FARGO ADVANTAGE INDEX FUND
- --------------------------------------------------------------------------------
PROXY VOTING INFORMATION
A description of the policies and procedures that the Funds use to
determine how to vote proxies relating to portfolio securities and information
regarding how to obtain the results of such voting during the most recent
12-month period ended June 30 is available without charge, upon request, by
calling 1-800-222-8222, visiting our Web site at
WWW.WELLSFARGO.COM/ADVANTAGEFUNDS, or visiting the SEC Web site at WWW.SEC.GOV.
PORTFOLIO HOLDINGS INFORMATION
The complete portfolio holdings for each Fund are publicly available on
the Funds' Web site (WWW.WELLSFARGO.COM/ADVANTAGEFUNDS) on a monthly, 30-day or
more delayed basis. In addition, top ten holdings information for each Fund is
publicly available on the Funds' Web site on a monthly, seven-day or more
delayed basis. Each Fund files its complete schedule of portfolio holdings with
the SEC for the first and third quarters of each fiscal year on Form N-Q, which
is available without charge by visiting the SEC Web site at WWW.SEC.GOV. In
addition, each Fund's Form N-Q may be reviewed and copied at the SEC's Public
Reference Room in Washington, DC, and at regional offices in New York City, at
233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900.
Information about the Public Reference Room may be obtained by calling
1-800-SEC-0330.
BOARD OF TRUSTEES
The following table provides basic information about the Board of Trustees
(the "Trustees") of the Wells Fargo Funds Trust (the "Trust"). This table
supplements, and should be read in conjunction with, the Prospectus and the
Statement of Additional Information* of each Fund. Each of the Trustees listed
below acts in identical capacities for each of the 139 funds comprising the
Trust, Wells Fargo Variable Trust and Wells Fargo Master Trust (collectively the
"Fund Complex"). All of the non-interested Trustees are also members of the
Audit and Governance Committees of each Trust in the Fund Complex. The 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.
NON-INTERESTED TRUSTEES
- ---------------------------------------------------------------------------------------------------------------------------------
POSITION HELD AND PRINCIPAL OCCUPATIONS DURING
NAME AND AGE LENGTH OF SERVICE ** PAST FIVE YEARS OTHER DIRECTORSHIPS
- ---------------------------------------------------------------------------------------------------------------------------------
Thomas S. Goho Trustee, since 1987 Chair of Finance, Wake Forest None
63 University, since 2006. Benson-
Pruitt Professorship, Wake
Forest University, Calloway
School of Business and
Accountancy, since 1999.
- ---------------------------------------------------------------------------------------------------------------------------------
Peter G. Gordon Trustee, since 1998 Chairman, CEO, and Co- None
63 (Chairman, since 2005) Founder of Crystal Geyser
Water Company, and President
of Crystal Geyser Roxane Water
Company.
- ---------------------------------------------------------------------------------------------------------------------------------
Richard M. Leach Trustee, since 1987 Retired. Prior thereto, President None
72 of Richard M. Leach Associates
(a financial consulting firm).
- ---------------------------------------------------------------------------------------------------------------------------------
Olivia S. Mitchell Trustee, since 2006 Professor of Insurance and Risk None
53 Management, Wharton School,
University of Pennsylvania.
Director of the Boettner Center
on Pensions and Retirement.
Research Associate and Board
Member, Penn Aging Research
Center. Research Associate,
National Bureau of Economic
Research.
- ---------------------------------------------------------------------------------------------------------------------------------
Timothy J. Penny Trustee, since 1996 Senior Counselor to the public None
54 relations firm of Himle-Horner,
and Senior Fellow at the
Humphrey Institute,
Minneapolis, Minnesota (a
public policy organization).
41
WELLS FARGO ADVANTAGE INDEX FUND OTHER INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
NON-INTERESTED TRUSTEES (CONTINUED)
- ---------------------------------------------------------------------------------------------------------------------------------
POSITION HELD AND PRINCIPAL OCCUPATIONS DURING
NAME AND AGE LENGTH OF SERVICE ** PAST FIVE YEARS OTHER DIRECTORSHIPS
- ---------------------------------------------------------------------------------------------------------------------------------
Donald C. Willeke Trustee, since 1996 Principal of the law firm of None
65 Willeke & Daniels.
- ---------------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEE***
- ---------------------------------------------------------------------------------------------------------------------------------
POSITION HELD AND PRINCIPAL OCCUPATIONS DURING
NAME AND AGE LENGTH OF SERVICE ** PAST FIVE YEARS OTHER DIRECTORSHIPS
- ---------------------------------------------------------------------------------------------------------------------------------
J. Tucker Morse Trustee, since 1987 Private Investor/Real Estate None
61 Developer. Prior thereto,
Chairman of White Point
Capital, LLC until 2005.
- ---------------------------------------------------------------------------------------------------------------------------------
OFFICERS
- ---------------------------------------------------------------------------------------------------------------------------------
POSITION HELD AND PRINCIPAL OCCUPATIONS DURING
NAME AND AGE LENGTH OF SERVICE PAST FIVE YEARS OTHER DIRECTORSHIPS
- ---------------------------------------------------------------------------------------------------------------------------------
Karla M. Rabusch President, since 2003 Executive Vice President of None
46 Wells Fargo Bank, N.A. and
President of Wells Fargo Funds
Management, LLC. Senior Vice
President and Chief
Administrative Officer of Wells
Fargo Funds Management, LLC
from 2001 to 2003.
- ---------------------------------------------------------------------------------------------------------------------------------
C. David Messman Secretary, since 2000 Vice President and Managing None
45 Senior Counsel of Wells Fargo
Bank, N.A. and Senior Vice
President and Secretary of Wells
Fargo Funds Management, LLC.
Vice President and Senior
Counsel of Wells Fargo Bank,
N.A. from 1996 to 2003.
- ---------------------------------------------------------------------------------------------------------------------------------
A. Erdem Cimen Treasurer, since 2006 Vice President of Wells Fargo None
32 Bank, N.A. and Vice President
of Financial Operations for
Wells Fargo Funds Management,
LLC. Vice President and Group
Finance Officer of Wells Fargo
Bank, N.A. Auto Finance Group
from 2004 to 2006. Vice
President of Portfolio Risk
Management for Wells Fargo
Bank, N.A. Auto Finance Group
in 2004. Vice President of
Portfolio Research and Analysis
for Wells Fargo Bank, N.A. Auto
Finance Group from 2001 to
2004. Director of Small Business
Services Risk Management for
American Express Travel Related
Services from 2000 to 2001.
- ---------------------------------------------------------------------------------------------------------------------------------
* The Statement of Additional Information includes additional information
about the Funds' Trustees and is available, without charge, upon request,
by calling 1-800-222-8222 or by visiting the Funds' Web site at
WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
** Length of service dates reflects a Trustee's commencement of service with
the Trust's predecessor entities.
*** As of March 31, 2006, one of the seven Trustees is considered an
"interested person" of the Trusts as defined in the Investment Company Act
of 1940. The interested Trustee, J. Tucker Morse, is affiliated with a
government securities dealer that is registered under the Securities
Exchange Act of 1934, which is not itself affiliated with Wells Fargo
Funds Management, LLC.
42
OTHER INFORMATION (UNAUDITED) WELLS FARGO ADVANTAGE INDEX FUND
- --------------------------------------------------------------------------------
BOARD CONSIDERATION OF AND CONTINUATION OF INVESTMENT ADVISORY AND SUBADVISORY
AGREEMENTS:
INDEX FUND AND INDEX PORTFOLIO
- --------------------------------------------------------------------------------
Section 15(c) of the Investment Company Act of 1940 (the "1940 Act")
contemplates that the Boards of Trustees (each, a "Board" and collectively, the
"Boards") of Wells Fargo Funds Trust and Wells Fargo Master Trust (each, a
"Trust" and collectively, the "Trusts"), including a majority of the Trustees
who have no direct or indirect interest in the investment advisory and
subadvisory agreements and are not "interested persons" of each Trust, as
defined in the 1940 Act (the "Independent Trustees"), will annually review and
consider the continuation of the investment advisory and subadvisory agreements.
In this regard, the Boards reviewed and re-approved, during the most recent six
months covered by this report: (i) an investment advisory agreement with Wells
Fargo Funds Management, LLC ("Funds Management") for the Index Fund and Index
Portfolio; and (ii) an investment subadvisory agreement with Wells Capital
Management Incorporated ("Wells Capital Management") for the Index Fund and
Index Portfolio. The investment advisory agreements with Funds Management and
the investment subadvisory agreements with Wells Capital Management are
collectively referred to as the "Advisory Agreements." The fund and portfolio
identified above are collectively referred to as the "Funds."
More specifically, at meetings held on March 31, 2006, the Boards,
including the Independent Trustees advised by their independent legal counsel,
considered the factors and reached the conclusions described below relating to
the selection of Funds Management and Wells Capital Management and the
continuation of the Advisory Agreements. Prior to the March 31, 2006 meetings,
the Boards, including the Independent Trustees, met in person and telephonically
a number of times, both with Funds Management and in private sessions relating
to the advisory contract approvals. The Independent Trustees were assisted in
their evaluation of the Advisory Agreements by independent legal counsel, from
whom they received separate legal advice and with whom they met separately from
Funds Management.
Because the Index Fund is a gateway feeder fund that invests all of its
assets in the Index Portfolio, which has a substantially similar investment
objective and substantially similar investment strategies as Index Fund,
information provided to the Boards regarding the Index Fund is also applicable
to the Index Portfolio.
NATURE, EXTENT AND QUALITY OF SERVICES
- --------------------------------------------------------------------------------
The Boards received and considered various data and information regarding
the nature, extent and quality of services provided to the Funds by Funds
Management and Wells Capital Management under the Advisory Agreements. The
Boards also received and considered responses of Funds Management and Wells
Capital Management to a detailed set of requests submitted by the Independent
Trustees' independent legal counsel on behalf of such Trustees. The Boards
reviewed and considered the data and information, which included, among other
things, information about the background and experience of senior management and
the expertise of, and amount of attention devoted to the Funds by, investment
personnel of Funds Management and Wells Capital Management. In this regard, the
Boards specifically reviewed the qualifications, backgrounds and
responsibilities of the portfolio managers primarily responsible for day-today
portfolio management services for the Funds.
The Boards evaluated the ability of Funds Management and Wells Capital
Management, based on their respective resources, reputations and other
attributes, to attract and retain highly qualified investment professionals,
including research, advisory, and supervisory personnel. In this regard, the
Boards considered information regarding each of Funds Management's and Wells
Capital Management's compensation program for its personnel involved in the
management of the Funds.
The Boards further considered the compliance programs and compliance
records of Funds Management and Wells Capital Management. In addition, the
Boards took into account the administrative services provided to the Funds by
Funds Management and its affiliates. In considering these matters, the Boards
considered not only the specific information presented in connection with the
meetings, but also the knowledge gained over the course of interacting with
Funds Management about various topics, including Funds Management's oversight of
service providers, such as Wells Capital Management.
Based on the above factors, together with those referenced below, each of
the Boards concluded that it was generally satisfied with the nature, extent and
quality of the investment advisory services provided to the Funds by Funds
Management and Wells Capital Management.
FUND PERFORMANCE AND EXPENSES
- --------------------------------------------------------------------------------
The Boards considered the performance results for the Funds over various
time periods ended December 31, 2005. They also considered these results in
comparison to the median performance results of the group of funds that was
determined by Lipper Inc. ("Lipper") to be the most similar to the Funds (the
"Peer Group") and to the median performance of a broader universe of relevant
funds as determined by Lipper (the "Universe"), as well as to the Funds'
benchmark index. Lipper is an independent provider of investment company data.
The Boards were provided with a description of the methodology used by Lipper to
select the mutual funds in the Funds' Peer Group and Universe. The Boards noted
that the
43
WELLS FARGO ADVANTAGE INDEX FUND OTHER INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
performance of the Funds was better than the median performance of the Peer
Group for all time periods.
The Boards received and considered information regarding the Funds' net
operating expense ratios and their various components, including contractual
advisory fees, actual advisory fees, actual non-management fees, Rule 12b-1 and
non-Rule 12b-1 service fees, fee waivers/caps and/or expense reimbursements.
They also considered comparisons of these fees to the expense information for
the Funds' Peer Group and Universe, which comparative data was provided by
Lipper. The Boards noted that the net operating expense ratios of the Funds were
lower than the Funds' Peer Group's median net operating expense ratios.
Based on the above-referenced considerations and other factors, the Boards
concluded that the overall performance and expense results supported the
re-approval of the Advisory Agreements for the Funds.
INVESTMENT ADVISORY AND SUBADVISORY FEE RATES
- --------------------------------------------------------------------------------
The Boards reviewed and considered the contractual investment advisory fee
rates payable by the Funds to Funds Management for investment advisory services,
both on a stand-alone basis and on a combined basis with the Funds'
administration fee rates (the "Advisory Agreement Rates"). The Boards took into
account the separate administrative services covered by the administration fee
rates. The Boards also reviewed and considered the contractual investment
subadvisory fee rates (the "Subadvisory Agreement Rates") payable by Funds
Management to Wells Capital Management for investment subadvisory services. In
addition, the Boards reviewed and considered the existing fee waiver/cap
arrangements applicable to the Advisory Agreement Rates and considered the
Advisory Agreement Rates after taking the waivers/caps into account (the "Net
Advisory Rates").
The Boards received and considered information comparing the Advisory
Agreement Rates and Net Advisory Rates with those of the other funds in the Peer
Group. The Boards noted that the Advisory Agreement Rates and the Net Advisory
Rates for the Funds were lower than, or not appreciably higher than, the median
rates of the Funds' Peer Group. In addition, the Boards concluded that the
combined investment advisory/administration fee rates for the Funds (before and
after waivers/caps and/or expense reimbursements) were reasonable in relation to
the Funds' Peer Group, and reasonable in relation to the services provided.
The Boards also reviewed and considered the Subadvisory Agreement Rates
and concluded that the Subadvisory Agreement Rates were fair and equitable,
based on their consideration of the factors described above.
PROFITABILITY
- --------------------------------------------------------------------------------
The Boards received and considered a detailed profitability analysis of
Funds Management based on the Advisory Agreement Rates and the Net Advisory
Rates, as well as on other relationships between the Funds on the one hand and
Funds Management affiliates on the other. The Boards concluded that, in light of
the costs of providing investment management and other services to the Funds,
the profits and other ancillary benefits that Funds Management and its
affiliates received with regard to providing these services to the Funds were
not unreasonable. The Boards did not consider profitability information with
respect to Wells Capital Management, as its separate profitability from its
relationship with the Funds was not a material factor in determining whether to
renew the agreement.
ECONOMIES OF SCALE
- --------------------------------------------------------------------------------
The Boards received and considered general information regarding whether
there have been economies of scale with respect to the management of the Funds,
whether the Funds have appropriately benefited from any economies of scale, and
whether there is potential for realization of any further economies of scale.
The Boards acknowledged the inherent limitations of any analysis of an
investment adviser's economies of scale and of any attempt to correlate
breakpoints with such economies, stemming largely from the Boards' understanding
that economies of scale are realized, if at all, by an investment adviser across
a variety of products and services, not just in respect to a single fund. The
Boards concluded that any actual or potential economies of scale are, or will
be, shared reasonably with Fund shareholders/interestholders, most particularly
through Advisory Agreement Rate breakpoints applicable to the Funds.
INFORMATION ABOUT SERVICES TO OTHER CLIENTS
- --------------------------------------------------------------------------------
The Boards also received and considered information about the nature and
extent of services and fee rates offered by Funds Management to other similarly
situated series of the Trusts, and those offered by Wells Capital Management to
other clients, including other registered investment companies and separate
accounts. The Boards concluded that the Advisory Agreement Rates, the
Subadvisory Agreement Rates and the Net Advisory Rates were within a reasonable
range of the fee rates offered to others by Funds Management and Wells Capital
Management, giving effect to differences in services covered by such fee rates.
44
OTHER INFORMATION (UNAUDITED) WELLS FARGO ADVANTAGE INDEX FUND
- --------------------------------------------------------------------------------
OTHER BENEFITS TO FUNDS MANAGEMENT AND WELLS CAPITAL MANAGEMENT
- --------------------------------------------------------------------------------
The Boards received and considered information regarding potential
"fall-out" or ancillary benefits received by Funds Management and its affiliates
(including Wells Capital Management) as a result of their relationship with the
Funds. Such benefits could include, among others, benefits directly attributable
to the relationship of Funds Management and Wells Capital Management with the
Funds and benefits potentially derived from an increase in Funds Management's
and Wells Capital Management's business as a result of their relationship with
the Funds (such as the ability to market to shareholders/interestholders other
financial products offered by Funds Management and its affiliates (including
Wells Capital Management)).
The Boards also considered the effectiveness of the policies of the Funds
in achieving the best execution of portfolio transactions, whether and to what
extent soft dollar credits are sought and how any such credits are utilized, any
benefits that may be realized by using an affiliated broker, the extent to which
efforts are made to recapture transaction costs and the controls applicable to
brokerage allocation procedures. The Boards also reviewed Funds Management's and
Wells Capital Management's methods for allocating portfolio investment
opportunities among the Funds and other clients.
OTHER FACTORS AND BROADER REVIEW
- --------------------------------------------------------------------------------
The Boards also considered the markets for distribution of the Funds,
including the principal channels through which the Funds' shares/interests are
offered and sold. The Boards noted that the Funds are part of one of the few
fund families that have both direct-to-fund and intermediary distribution.
As discussed above, the Boards reviewed detailed materials received from
Funds Management and Wells Capital Management annually as part of the
re-approval process under Section 15(c) of the 1940 Act. The Boards also review
and assess the quality of the services that the Funds receive throughout the
year. In this regard, the Boards review reports of Funds Management and Wells
Capital Management at each of their quarterly meetings, which include, among
other things, a portfolio review and fund performance reports. In addition, the
Boards confer with the portfolio managers of the Funds at various times
throughout the year.
After considering the above-described factors and based on its
deliberations and its evaluation of the information described above, the Boards
concluded that approval of the continuation of the Advisory Agreements for the
Funds was in the best interest of the Funds and its
shareholders/interestholders. Accordingly, the Boards unanimously approved the
continuation of the Advisory Agreements for an additional one-year period.
45
WELLS FARGO ADVANTAGE INDEX FUND LIST OF ABBREVIATIONS
- --------------------------------------------------------------------------------
The following is a list of common abbreviations for terms and entities which may
have appeared in this report.
ABAG -- Association of Bay Area Governments
ADR -- American Depositary Receipt
AMBAC -- American Municipal Bond Assurance Corporation
AMT -- Alternative Minimum Tax
ARM -- Adjustable Rate Mortgages
BART -- Bay Area Rapid Transit
CDA -- Community Development Authority
CDSC -- Contingent Deferred Sales Charge
CGIC -- Capital Guaranty Insurance Company
CGY -- Capital Guaranty Corporation
CMT -- Constant Maturity Treasury
COFI -- Cost of Funds Index
Connie Lee -- Connie Lee Insurance Company
COP -- Certificate of Participation
CP -- Commercial Paper
CTF -- Common Trust Fund
DW&P -- Department of Water & Power
DWR -- Department of Water Resources
EDFA -- Education Finance Authority
FFCB -- Federal Farm Credit Bank
FGIC -- Financial Guaranty Insurance Corporation
FHA -- Federal Housing Authority
FHLB -- Federal Home Loan Bank
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
FRN -- Floating Rate Notes
FSA -- Financial Security Assurance, Inc
GDR -- Global Depositary Receipt
GNMA -- Government National Mortgage Association
GO -- General Obligation
HFA -- Housing Finance Authority
HFFA -- Health Facilities Financing Authority
IDA -- Industrial Development Authority
IDR -- Industrial Development Revenue
LIBOR -- London Interbank Offered Rate
LLC -- Limited Liability Corporation
LOC -- Letter of Credit
LP -- Limited Partnership
MBIA -- Municipal Bond Insurance Association
MFHR -- Multi-Family Housing Revenue
MUD -- Municipal Utility District
MTN -- Medium Term Note
PCFA -- Pollution Control Finance Authority
PCR -- Pollution Control Revenue
PFA -- Public Finance Authority
PLC -- Private Placement
PSFG -- Public School Fund Guaranty
RDA -- Redevelopment Authority
RDFA -- Redevelopment Finance Authority
REITS -- Real Estate Investment Trusts
R&D -- Research & Development
SFHR -- Single Family Housing Revenue
SFMR -- Single Family Mortgage Revenue
SLMA -- Student Loan Marketing Association
STEERS -- Structured Enhanced Return Trust
TBA -- To Be Announced
TRAN -- Tax Revenue Anticipation Notes
USD -- Unified School District
V/R -- Variable Rate
WEBS -- World Equity Benchmark Shares
XLCA -- XL Capital Assurance
46
[LOGO]
WELLS ADVANTAGE
FARGO FUNDS
More information about WELLS FARGO This report and the financial
ADVANTAGE FUNDS(SM) is available free statements contained herein are
upon request. To obtain literature, submitted for the general information
please write, e-mail, visit the Funds' of the shareholders of WELLS FARGO
Web site, or call: ADVANTAGE FUNDS. If this report is used
for promotional purposes, distribution
WELLS FARGO ADVANTAGE FUNDS of the report must be accompanied or
P.O. Box 8266 preceded by a current prospectus. For a
Boston, MA 02266-8266 prospectus containing more complete
information, including charges and
E-mail: wfaf@wellsfargo.com expenses, call 1-800-222-8222 or visit
Web site: www.wellsfargo.com/ the Funds' Web site at
advantagefunds www.wellsfargo.com/advantagefunds.
Retail Investment Please consider the investment
Professionals: 1-888-877-9275 objective, risks, charges, and expenses
Institutional Investment of the investment carefully before
Professionals: 1-866-765-0778 investing. This and other information
about WELLS FARGO ADVANTAGE FUNDS can
be found in the current prospectus.
Read the prospectus carefully before
you invest or send money.
Wells Fargo Funds Management, LLC, a
wholly owned subsidiary of Wells Fargo
& Company, provides investment advisory
and administrative services for WELLS
FARGO ADVANTAGE FUNDS. Other affiliates
of Wells Fargo & Company provide
sub-advisory and other services for the
Funds. The Funds are distributed by
WELLS FARGO FUNDS DISTRIBUTOR, LLC,
Member NASD/SIPC, an affiliate of Wells
Fargo & Company.
-----------------------------------------------------
NOT FDIC INSURED o NO BANK GUARANTEE o MAY LOSE VALUE
-----------------------------------------------------
- --------------------------------------------------------------------------------
(C) 2006 Wells Fargo www.wellsfargo.com/advantagefunds RT056264 05-31
Advantage Funds, LLC. SEGFNLD/SAR112 03/06
All rights reserved.
ITEM 2. CODE OF ETHICS
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Not applicable.
ITEMS 5-6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES
(a)(i) The President and Treasurer have concluded that the Wells Fargo Funds
Trust (the "Trust") disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940) provide reasonable assurances
that material information relating to the Trust is made known to them by the
appropriate persons based on their evaluation of these controls and procedures
as of a date within 90 days of the filing of this report.
(a)(ii) There were no significant changes in the Trust's internal controls or in
other factors that could significantly affect these controls subsequent to the
date of the evaluation referenced in (a)(i) above.
ITEM 10. EXHIBITS
(a) Not applicable.
(a)(2) Certification pursuant to Rule 30a-2(a) under the Investment Company Act
of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit 99.CERT.
(b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of
1940 (17 CFR 270.30a-2(b)) 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, this report has been signed by the following
persons on behalf of the registrant.
Wells Fargo Funds Trust
By: /S/ Karla M. Rabusch
Karla M. Rabusch
President
By: /S/ A. Erdem Cimen
A. Erdem Cimen
Treasurer
Date: May 23, 2006