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: October 31, 2005
Date of reporting period: April 30, 2006
ITEM 1. REPORT TO SHAREHOLDERS
[LOGO]
WELLS ADVANTAGE
FARGO FUNDS
APRIL 30, 2006
[GRAPHIC OMITTED]
Semi-Annual Report
WELLS FARGO ADVANTAGE SPECIALTY FUNDS
Wells Fargo Advantage Specialized Financial Services Fund
Wells Fargo Advantage Specialized Health Sciences Fund
Wells Fargo Advantage Specialized Technology Fund
WELLS FARGO ADVANTAGE SPECIALTY FUNDS
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Table of Contents
Letter to Shareholders ................................................... 1
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Performance Highlights
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Specialized Financial Services Fund ................................... 2
Specialized Health Sciences Fund ...................................... 4
Specialized Technology Fund ........................................... 6
Fund Expenses (Unaudited) ................................................ 8
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Portfolio of Investments
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Specialized Financial Services Fund ................................... 10
Specialized Health Sciences Fund ...................................... 15
Specialized Technology Fund ........................................... 20
Financial Statements
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Statements of Assets and Liabilities .................................. 27
Statements of Operations .............................................. 28
Statements of Changes in Net Assets ................................... 30
Financial Highlights .................................................. 34
Notes to Financial Highlights ............................................ 38
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Notes to Financial Statements ............................................ 39
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Other Information (Unaudited) ............................................ 46
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List of Abbreviations .................................................... 48
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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 SPECIALTY FUNDS
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DEAR VALUED SHAREHOLDER,
Enclosed please find the WELLS FARGO ADVANTAGE SPECIALTY FUNDS semi-annual
report for the period that ended April 30, 2006. On the following pages, you
will find a discussion of each Fund, including performance highlights,
information about the holdings in each Fund, and the portfolio managers'
strategic outlook.
ECONOMIC OVERVIEW
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The U.S. economy continued to show signs of strength during the past six
months, even though real Gross Domestic Product (GDP) grew at a rate of only
1.7% for the fourth quarter of 2005. During the first quarter of 2006, economic
growth gained momentum and ended the quarter with a GDP growth rate of 5.3%. The
strong growth came despite continued interest rate hikes by the Federal Reserve
Board (the Fed). The Federal funds rate stood at 4.75% as of the end of April
2006.
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 slowed. Sluggish housing sales were seen in the condominium
markets and in regions of rapid price appreciation. Sales of single-family homes
held up well, but speculative demand for housing cooled. Business spending
remained strong through the first quarter of 2006, and in April commodity prices
continued their upward trend as the strong global economy steadily increased
demand for raw materials.
STOCKS REMAIN VIABLE
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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.
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. Most 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, many equity market indices moved higher, and the S&P 500 Index
and the Dow Jones Industrial Average had the best first quarter results since
1999 and 2002, respectively. The NASDAQ Composite Index ended the first quarter
of 2006 at a five-year high.
Almost all equity markets continued to move higher in April. Value
outperformed growth within the U.S. equity markets, and most large cap stocks
slightly outperformed most small cap stocks. The energy and financial sectors
led the way in the value asset class. With the outlook for housing becoming less
optimistic, Real Estate Investment Trusts (REITs) became less attractive, and it
may become more and more difficult for this asset class to continue at the pace
it has set during the past five years.
LOOKING AHEAD
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High-energy prices and rising interest rates may eventually slow investor
enthusiasm for stocks, and we may see long-term interest rates move higher,
though their increases could be restrained if inflation remains stable and
investor confidence stays steady. 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 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 most major asset
classes, 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
toward 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 SPECIALTY FUNDS PERFORMANCE HIGHLIGHTS
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WELLS FARGO ADVANTAGE SPECIALIZED FINANCIAL SERVICES FUND
INVESTMENT OBJECTIVE
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The WELLS FARGO ADVANTAGE SPECIALIZED FINANCIAL SERVICES FUND (the Fund)
seeks long-term capital appreciation.
ADVISER SUBADVISER
Wells Fargo Funds Management, Wells Capital Management Incorporated
LLC
FUND MANAGERS FUND INCEPTION DATE
Allen J. Ayvazian 07/02/1962
Allen Wisniewski, CFA
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
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The Fund's Class A shares returned 11.93% 1 (excluding sales charge) for
the six-month period that ended April 30, 2006, outperforming its benchmark, the
S&P 500 Index 2, which returned 9.63% 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 CHARGES ASSUMES THE SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. 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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Financial stocks, in which the Fund concentrates its investments,
outperformed the general market during the period as investors anticipated an
end to the Federal Reserve Board's (the Fed) interest rate hikes. In particular,
the Fund's exposure to the investment banking and brokerage industry and the
asset management and custody industry produced strong returns.
Examples of solid-performing stocks in the investment banking and
brokerage area included Bear Stearns, Goldman Sachs, and Lehman Brothers. The
Fund also benefited from stocks in the area of asset management: AMVESCAP and
Nuveen Investments are two examples. Holdings in custody banks such as State
Street and Bank of New York aided performance as well. Banks with strong capital
markets exposure also benefited the Fund; examples included JP Morgan Chase and
Citigroup.
Despite a flat yield curve--which had short-term interest rates nearly
matching long-term interest rates--and its negative impact on profitability, the
Fund's regional bank stocks returned 9.9% as a group. One of the better
performing stocks belonged to PNC Financial Services Group, which benefited from
its majority holding in asset manager BlackRock, Inc.
The Fund's investment in insurance companies produced mixed results
because several companies were impacted by hurricane-related losses during the
six-month period. Reinsurance company Everest Reinsurance Group saw its stock
return decline as earnings were held back by hurricane-related losses. On the
positive side, property and casualty insurer Hartford Financial Services Group
and insurance broker National Financial Partners reported strong results, and
their stock prices rose.
WHAT CHANGES DID YOU MAKE TO THE FUND'S HOLDING DURING THE PERIOD?
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The Fund initiated investments in several companies, including
AllianceBernstein L.P., which experienced a significant increase in assets under
management yet was selling at a valuation discount compared to its peers.
In the regional banking area, the Fund invested in PNC, where we
anticipated a renewed focus on productivity to result in improved operating
leverage. We look for PNC to show earnings growth over the next two years well
above its peers. Shareholders have also benefited from PNC's ownership position
in asset manager BlackRock, Inc.
An investment was also made in Marshall and Ilsley Bank, a commercial bank
with a significant data processing operation. We anticipate this operation,
which is principally involved in payment processing, to be a meaningful driver
of earnings growth, thereby possibly allowing the bank to grow faster than many
other regional banks. Finally, the Fund sold its investment in bank stock
AmSouth to provide funding for more fundamentally favorable investments.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
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We anticipate an end to the Fed's interest rate hikes and believe that
financial stocks will continue to produce solid returns. Once we begin to see a
more normally sloped yield curve, profitability for banks may improve. And,
while credit losses could increase from unusually low levels, we believe an
expanding economy will allow for a reasonably benign credit cycle. Given the
better pricing environment in the areas of property and casualty and in the area
of reinsurance, we believe insurance industry fundamentals may improve. In the
meantime, we will continue to seek long-term capital appreciation through our
bottom-up investment process.
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 AND FINANCIAL SERVICES SECTOR RISK. CONSULT THE FUND'S
PROSPECTUS FOR ADDITIONAL INFORMATION ON THESE AND OTHER RISKS.
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The views expressed are as of April 30, 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 SPECIALIZED FINANCIAL SERVICES 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. (CONTINUED)
2
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE SPECIALTY FUNDS
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AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF APRIL 30, 2006)
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Including Sales Charge Excluding Sales Charge
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6-Months* 1-Year 5-Year 10-Year 6-Months* 1-Year 5-Year 10-Year
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Specialized Financial Services Fund - Class A
(Incept. Date 07/02/1962) 5.49 14.85 5.31 9.73 11.93 21.86 6.57 10.38
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Specialized Financial Services Fund - Class B
(Incept. Date 05/01/1997) 6.25 15.64 5.34 9.37 11.25 20.64 5.66 9.37
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Specialized Financial Services Fund - Class C
(Incept. Date 05/01/1997) 10.34 19.79 5.67 9.36 11.34 20.79 5.67 9.36
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Benchmark
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S&P 500 Index 2 9.63 15.41 2.70 8.94
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* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FUND CHARACTERISTICS 3 (AS OF APRIL 30, 2006)
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Beta** 0.81
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Price to Earnings (trailing 12 months) 14.70x
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Price to Book Ratio 2.07x
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Median Market Cap. ($B) $ 20.82
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Portfolio Turnover*** 13%
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** 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.
SECTOR DISTRIBUTION 3 (AS OF APRIL 30, 2006)
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[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Depository Institutions 46%
Electronics 2%
Financial Services 1%
Holding & Other Investment 1%
Offices
Insurance Agents, Brokers & 2%
Service
Insurance Carriers 20%
Non-Depository Credit 9%
Institutions
Security & Commodity Brokers, 18%
Dealers
Business Services 1%
TEN LARGEST EQUITY HOLDINGS 3,4 (AS OF APRIL 30, 2006)
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Citigroup Incorporated 8.53%
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Bank of America Corporation 8.04%
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JP Morgan Chase & Company 5.21%
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American International Group Incorporated 4.73%
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Merrill Lynch & Company Incorporated 3.96%
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Goldman Sachs Group Incorporated 3.45%
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Hartford Financial Services Group Incorporated 2.79%
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St. Paul Travelers Companies Incorporated 2.78%
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Capital One Financial Corporation 2.68%
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Bear Stearns Companies Incorporated 2.56%
GROWTH OF $10,000 INVESTMENT 5 (AS OF APRIL 30, 2006)
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[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
WELLS FARGO ADVANTAGE SPECIALIZED
FINANCIAL SERVICES FUND - Class A S&P 500 Index
--------------------------------- -------------
4/30/1996 9,425 10,000
5/31/1996 9,623 10,257
6/30/1996 9,563 10,296
7/31/1996 9,529 9,841
8/31/1996 9,988 10,049
9/30/1996 10,429 10,613
10/31/1996 10,908 10,906
11/30/1996 11,662 11,730
12/31/1996 11,370 11,497
1/31/1997 11,975 12,216
2/28/1997 12,542 12,311
3/31/1997 11,780 11,806
4/30/1997 12,342 12,510
5/31/1997 12,857 13,271
6/30/1997 13,280 13,865
7/31/1997 14,502 14,968
8/31/1997 14,150 14,129
9/30/1997 15,314 14,902
10/31/1997 15,101 14,405
11/30/1997 15,590 15,071
12/31/1997 16,463 15,331
1/31/1998 15,697 15,499
2/28/1998 16,819 16,617
3/31/1998 17,612 17,468
4/30/1998 17,790 17,646
5/31/1998 17,245 17,342
6/30/1998 17,681 18,046
7/31/1998 17,655 17,855
8/31/1998 13,753 15,275
9/30/1998 14,472 16,254
10/31/1998 15,886 17,576
11/30/1998 16,504 18,641
12/31/1998 17,309 19,714
1/31/1999 17,005 20,538
2/28/1999 17,120 19,900
3/31/1999 17,037 20,696
4/30/1999 18,394 21,497
5/31/1999 17,607 20,989
6/30/1999 17,941 22,154
7/31/1999 16,941 21,463
8/31/1999 16,378 21,356
9/30/1999 15,988 20,771
10/31/1999 18,133 22,086
11/30/1999 17,100 22,534
12/31/1999 15,846 23,861
1/31/2000 15,421 22,663
2/29/2000 13,612 22,235
3/31/2000 15,596 24,410
4/30/2000 14,986 23,675
5/31/2000 16,219 23,190
6/30/2000 14,747 23,762
7/31/2000 15,514 23,392
8/31/2000 17,257 24,844
9/30/2000 17,534 23,533
10/31/2000 17,564 23,434
11/30/2000 17,231 21,587
12/31/2000 19,165 21,693
1/31/2001 19,529 22,463
2/28/2001 18,779 20,417
3/31/2001 18,183 19,124
4/30/2001 18,415 20,608
5/31/2001 19,398 20,746
6/30/2001 19,498 20,242
7/31/2001 19,564 20,044
8/31/2001 18,684 18,791
9/30/2001 17,785 17,275
10/31/2001 17,019 17,605
11/30/2001 18,131 18,955
12/31/2001 18,611 19,122
1/31/2002 18,645 18,843
2/28/2002 18,564 18,479
3/31/2002 19,880 19,174
4/30/2002 19,776 18,012
5/31/2002 19,716 17,880
6/30/2002 19,056 16,607
7/31/2002 17,564 15,314
8/31/2002 17,966 15,413
9/30/2002 16,201 13,739
10/31/2002 16,419 14,947
11/30/2002 16,725 15,826
12/31/2002 16,063 14,897
1/31/2003 15,756 14,508
2/28/2003 15,448 14,290
3/31/2003 15,471 14,428
4/30/2003 17,058 15,616
5/31/2003 18,071 16,438
6/30/2003 18,248 16,648
7/31/2003 18,777 16,941
8/31/2003 18,777 17,272
9/30/2003 18,812 17,088
10/31/2003 20,048 18,054
11/30/2003 20,137 18,213
12/31/2003 20,746 19,167
1/31/2004 21,289 19,520
2/29/2004 21,940 19,791
3/31/2004 21,654 19,492
4/30/2004 20,403 19,186
5/31/2004 20,784 19,449
6/30/2004 20,761 19,827
7/31/2004 20,543 19,170
8/31/2004 20,870 19,247
9/30/2004 20,902 19,455
10/31/2004 21,066 19,752
11/30/2004 21,611 20,552
12/31/2004 22,264 21,251
1/31/2005 21,792 20,733
2/28/2005 21,674 21,168
3/31/2005 21,067 20,793
4/30/2005 20,771 20,398
5/31/2005 21,304 21,047
6/30/2005 21,718 21,076
7/31/2005 22,193 21,861
8/31/2005 21,718 21,662
9/30/2005 22,018 21,837
10/31/2005 22,613 21,472
11/30/2005 23,565 22,284
12/31/2005 23,601 22,292
1/31/2006 23,975 22,882
2/28/2006 24,411 22,944
3/31/2006 24,436 23,229
4/30/2006 25,311 23,541
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Prior to April 11, 2005, the WELLS FARGO ADVANTAGE SPECIALIZED FINANCIAL
SERVICES FUND was named the Wells Fargo SIFE Specialized Financial Services
Fund. Performance shown for Class A shares of the Fund for periods prior to
February 25, 2002, reflects the performance of the Class A-1 shares of the SIFE
Trust Fund, its predecessor fund. Performance shown for Class B and Class C
shares of the Fund for periods prior to May 1, 1997, reflects the performance of
the Fund's Class A shares, adjusted to reflect each respective class's fees and
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 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 securities divided by total market value of the portfolio.
5 The chart compares the performance of the WELLS FARGO ADVANTAGE SPECIALIZED
FINANCIAL SERVICES FUND Class A for the most recent ten years with the S&P 500
Index. The chart assumes a hypothetical investment of $10,000 in Class A shares
and reflects all operating expenses and, for Class A shares, assumes the maximum
initial sales charge of 5.75%.
3
WELLS FARGO ADVANTAGE SPECIALTY FUNDS PERFORMANCE HIGHLIGHTS
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WELLS FARGO ADVANTAGE SPECIALIZED HEALTH SCIENCES FUND
INVESTMENT OBJECTIVE
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The WELLS FARGO ADVANTAGE SPECIALIZED HEALTH SCIENCES FUND (the Fund)
seeks long-term capital appreciation.
ADVISER SUBADVISER
Wells Fargo Funds Management, RCM Capital Management, LLC
LLC
FUND MANAGER FUND INCEPTION DATE
Michael Dauchot, M.D. 04/02/2001
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
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The Fund's Class A shares returned 1.87% 1 (excluding sales charge) for
the six-month period that ended April 30, 2006, underperforming the MSCI/World
Health Care Index 2, which returned 6.63%, and underperforming the S&P 500
Index 3, which returned 9.63% 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 CHARGES ASSUMES THE SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. 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's underperformance was largely due to a surge in the
international health care markets compared to a downturn in their U.S.
counterparts. The Fund's underweighted position in European pharmaceutical
stocks was the biggest contributor to underperformance. For example, the Fund's
underweighted position in Sanofi-Aventis and AstraZeneca, both good producers
during the period, detracted from Fund performance.
The Fund was also negatively impacted by its overweighted position in two
U.S. medical technology stocks: St. Jude Medical Inc., and Zimmer Holdings Inc.
Both of these stocks posted lackluster earnings in the fourth quarter of 2005,
due in part to a weak dollar. In addition, a proposal from the centers for
Medicare and Medicaid Services to change how it calculates reimbursement rates
for procedures involving medical devices, such as those from St. Jude Medical,
pressured the entire medical devices group.
Two major biotechnology stocks also hurt performance: Genentech Inc., and
Amgen Inc. Despite posting strong financial results, Genentech's stock declined.
Amgen posted lackluster numbers in the fourth quarter of 2005 and in the first
quarter of 2006. Consequently its stock dropped in response to the poor
quarterly reports.
Two of the Fund's biggest winners in the past six months were Celgene
Corporation and Abgenix. Celgene rose significantly with the introduction of a
new drug called Revlimid, which is used to treat myelodysplastic syndrome (MDS).
Abgenix also posted excellent returns after announcing solid data and news that
the company was being acquired by Amgen. Abgenix specializes in the discovery,
development, and manufacturing of human therapeutic antibodies.
Also on the positive side, the Fund's 2.9% position in Shire plc, a
specialty pharmaceutical company, aided Fund performance. Medical device stocks
that helped significantly were Inamed Corporation, which was purchased by
Allergan Inc., and Conor Medsystems, which had a breakthrough drug-coated stent
product.
WHAT CHANGES DID YOU MAKE TO THE FUND'S HOLDINGS DURING THE PERIOD?
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We diversified the Fund's holdings by adding more U.S. pharmaceutical
stocks and selling nearly all of its HMO holdings. We also reduced the Fund's
position in small-cap biotechnology stocks. Overall, the holdings in
biotechnology increased since October 1, 2005, and comprised 21% of the Fund's
holdings since early 2006, with a concentration in mid to large-cap stocks.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
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We believe that the U.S. markets remain challenging so we will continue to
seek ways to maintain diversification as a way of mitigating risk, while not
over-looking growth opportunities. The U.S. pharmaceutical companies appear to
once again be on solid ground and while top-line growth companies will not be
double digit any time soon, the worst seems to be over for the major U.S.
large-cap pharmaceutical companies. Consequently, we anticipate that they will
represent a significant part of the Fund in 2006. European pharmaceutical
companies, particularly Roche and Sanofi, will probably continue to be major
holdings.
In other subsectors of health care, there are no general themes that make
them attractive to us for now. We will continue to select assets based on
stock-specific attributes discovered through our bottom-up research that
identifies investments with the potential for 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. 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, FOREIGN INVESTMENTS RISK,
NONDIVERSIFIED PORTFOLIO RISK, AND HEALTH SCIENCES SECTOR RISK. CONSULT THE
FUND'S PROSPECTUS FOR ADDITIONAL INFORMATION ON THESE AND OTHER RISKS.
- --------------------------------------------------------------------------------
The views expressed are as of April 30, 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 SPECIALIZED HEALTH SCIENCES FUND.
4
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE SPECIALTY FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge
--------------------------------------- ---------------------------------------
6-Months* 1-Year 5-Year Life of Fund 6-Months* 1-Year 5-Year Life of Fund
- -------------------------------------------------------------------------------------------------------------------------------
Specialized Health Sciences Fund - Class A
(Incept. Date 04/02/2001) (3.99) (0.98) 0.31 1.46 1.87 5.06 1.51 2.65
- -------------------------------------------------------------------------------------------------------------------------------
Specialized Health Sciences Fund - Class B
(Incept. Date 04/02/2001) (3.44) (0.73) 0.34 1.69 1.56 4.27 0.73 1.88
- -------------------------------------------------------------------------------------------------------------------------------
Specialized Health Sciences Fund - Class C
(Incept. Date 04/02/2001) 0.56 3.26 0.75 1.90 1.56 4.26 0.75 1.90
- -------------------------------------------------------------------------------------------------------------------------------
Benchmarks
- -------------------------------------------------------------------------------------------------------------------------------
MSCI/World Health Care Index 2 6.63 8.46 2.84 3.18
- -------------------------------------------------------------------------------------------------------------------------------
S&P 500 Index 3 9.63 15.41 2.70 4.17
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FUND CHARACTERISTICS 4 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
Beta** 0.93
- --------------------------------------------------------------------------------
Price to Earnings (trailing 12 months) 26.80x
- --------------------------------------------------------------------------------
Price to Book Ratio 4.64x
- --------------------------------------------------------------------------------
Median Market Cap. ($B) $ 13.50
- --------------------------------------------------------------------------------
Portfolio Turnover*** 196%
- --------------------------------------------------------------------------------
** A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE MSCI/WORLD
HEALTH CARE INDEX BETA IS 1.00 BY DEFINITION.
*** THIS MEASURE IS BASED ON SIX MONTHS OF THE FUND'S ACTIVITY.
SECTOR DISTRIBUTION 4 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Chemicals & Allied Products 63%
Engineering, Accounting, Research & Related Services 3%
Furniture & Fixtures 1%
Holding & Other Investment Offices 1%
Industrial & Commercial Machinery & Computer 2%
Equipment
Insurance Carriers 1%
Miscellaneous Manufacturing Industries 4%
Wholesale Trade Non-Durable Goods 3%
Wholesale Trade Durable Goods 1%
Biotechnology 21%
Business Services 1%
TEN LARGEST EQUITY HOLDINGS 4,5 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
Pfizer Incorporated 6.43%
- --------------------------------------------------------------------------------
Novartis AG 5.65%
- --------------------------------------------------------------------------------
Gilead Sciences Incorporated 5.59%
- --------------------------------------------------------------------------------
Amgen Incorporated 4.62%
- --------------------------------------------------------------------------------
Schering-Plough Corporation 4.51%
- --------------------------------------------------------------------------------
Abbott Laboratories 4.44%
- --------------------------------------------------------------------------------
Wyeth 4.25%
- --------------------------------------------------------------------------------
Genentech Incorporated 3.99%
- --------------------------------------------------------------------------------
Merck & Company Incorporated 3.88%
- --------------------------------------------------------------------------------
Kyphon Incorporated 3.54%
GROWTH OF $10,000 INVESTMENT 6 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
WELLS FARGO ADVANTAGE
SPECIALIZED HEALTH
SCIENCES FUND - Class A MSCI/World Health Care Index S&P 500 Index
----------------------- ---------------------------- -------------
4/1/2001 9,425 10,000 10,000
4/30/2001 9,991 10,190 10,776
5/31/2001 10,481 10,279 10,848
6/30/2001 10,283 9,966 10,585
7/31/2001 9,943 10,356 10,481
8/31/2001 9,670 9,991 9,826
9/30/2001 9,142 10,177 9,033
10/31/2001 9,500 10,047 9,205
11/30/2001 9,925 10,289 9,911
12/31/2001 10,028 10,053 9,999
1/31/2002 9,538 9,817 9,853
2/28/2002 9,406 9,978 9,663
3/31/2002 9,614 10,011 10,026
4/30/2002 8,973 9,634 9,418
5/31/2002 8,671 9,408 9,350
6/30/2002 7,983 8,782 8,684
7/31/2002 7,559 8,368 8,007
8/31/2002 7,597 8,373 8,059
9/30/2002 7,361 7,917 7,184
10/31/2002 7,568 8,351 7,816
11/30/2002 7,597 8,461 8,275
12/31/2002 7,417 8,246 7,789
1/31/2003 7,531 8,145 7,586
2/28/2003 7,436 7,929 7,472
3/31/2003 7,729 8,157 7,544
4/30/2003 8,030 8,603 8,166
5/31/2003 8,718 8,850 8,595
6/30/2003 9,180 9,118 8,705
7/31/2003 9,284 9,009 8,858
8/31/2003 8,973 8,733 9,031
9/30/2003 8,963 8,929 8,935
10/31/2003 9,076 9,068 9,440
11/30/2003 9,302 9,294 9,523
12/31/2003 9,557 9,854 10,022
1/31/2004 9,915 10,024 10,207
2/29/2004 10,188 10,105 10,349
3/31/2004 10,226 9,804 10,192
4/30/2004 10,358 10,112 10,032
5/31/2004 10,311 10,149 10,170
6/30/2004 10,198 10,100 10,367
7/31/2004 9,651 9,722 10,024
8/31/2004 9,830 9,891 10,064
9/30/2004 9,887 9,827 10,173
10/31/2004 9,830 9,718 10,328
11/30/2004 10,075 9,902 10,747
12/31/2004 10,719 10,446 11,112
1/31/2005 10,398 10,075 10,841
2/28/2005 10,096 10,422 11,069
3/31/2005 9,898 10,375 10,873
4/30/2005 10,247 10,808 10,666
5/31/2005 10,417 10,907 11,005
6/30/2005 10,370 10,803 11,021
7/31/2005 10,672 11,081 11,431
8/31/2005 10,710 11,113 11,327
9/30/2005 10,719 11,202 11,418
10/31/2005 10,568 10,995 11,228
11/30/2005 10,691 11,082 11,652
12/31/2005 10,912 11,386 11,656
1/31/2006 11,242 11,630 11,965
2/28/2006 11,339 11,630 11,997
3/31/2006 11,222 11,741 12,146
4/30/2006 10,766 11,723 12,309
- --------------------------------------------------------------------------------
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.
2 The Morgan Stanley Capital International (MSCI) World Health Care Index is an
unmanaged market-weighted index composed of securities traded in 22 of the
world's most developed countries. Securities are listed on exchanges in the
U.S., Europe, Canada, Australia, New Zealand, and the Far East. The health care
sector consists of several industry groups including health care equipment and
services, pharmaceuticals and biotechnology. You cannot invest directly in an
Index.
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 securities divided by total market value of the portfolio.
6 The chart compares the performance of the WELLS FARGO ADVANTAGE SPECIALIZED
HEALTH SCIENCES FUND Class A shares for the life of the Fund with the MSCI/World
Health Care Index and S&P 500 Index. The chart assumes a hypothetical investment
of $10,000 in Class A shares and reflects all operating expenses and, for Class
A shares, assumes the maximum initial sales charge of 5.75%.
5
WELLS FARGO ADVANTAGE SPECIALTY FUNDS PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE SPECIALIZED TECHNOLOGY FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The WELLS FARGO ADVANTAGE SPECIALIZED TECHNOLOGY FUND (the Fund) seeks
long-term capital appreciation by investing in domestic and foreign equity
securities of technology companies.
ADVISER SUBADVISER
Wells Fargo Funds Management, RCM Capital Management, LLC
LLC
FUND MANAGERS FUND INCEPTION DATE
Huachen Chen, CFA 09/18/2000
Walter C. Price, Jr., CFA
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Class A shares returned 11.15% 1 (excluding sales charge) for
the six-month period that ended April 30, 2006, outperforming the Goldman Sachs
Technology Index 2, which returned 8.49%, and outperforming the S&P 500
Index 3, which returned 9.63% 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 CHARGES ASSUMES THE SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. 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.
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?
- --------------------------------------------------------------------------------
Good stock selection in most of the technology sectors helped Fund
performance. Holdings in energy and materials performed well and outpaced the
Fund's holdings in health care technology. Health care technology started out on
the positive side during the fourth quarter of 2005, but as margins began to
erode for many of the leading health care companies, the entire sector felt the
pressure.
The Fund's best stocks included Chartered Semiconductor, Red Hat, Tencent,
Citrix Systems, and Amdocs. We recognized market shifts and changes in the
companies before they were widely known and the Fund was rewarded with stock
appreciation. Red Hat is one of the leading providers of open source software
solutions. Tencent is an Internet and mobile value-added services provider.
Citrix's mission is to simplify information access for everyone, and Amdocs
provides integrated customer management services.
A few of our stock selections did not perform as we had expected. In
addition to the health care technology holdings that faltered, we held SanDisk
during a downturn in its products. SanDisk is one of the largest suppliers of
flash memory data storage products in the world. Likewise, we thought eBay was
back on track, but it continued to slump.
WHAT CHANGES DID YOU MAKE TO THE FUND'S HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
During the period, we sold several stocks, including Symantec, Yahoo!, and
VeriSign. We reduced our weighting in eBay when we realized the transition to
renewed growth would take longer than we had anticipated. We also reduced
several of our winning stocks as they neared our price targets, such as Red Hat,
Broadcom, and Google. This action was consistent with our process of setting
price targets when we buy a stock and either selling or trimming as the stock
nears its target. Sometimes we reset the target if our outlook changes and sell
if the scenario we envisioned does not materialize.
We also reduced our overweighted position in the Internet sector and
trimmed some of our consumer-focused stocks in order to increase the Fund's
holdings in enterprise-related companies. With corporate liquidity high and Web
sites, communication infrastructure, advertising, and customer interaction
undergoing transformations, we think that corporate investment may reward the
Fund on the positive side during 2006.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
While consumer spending may be lessening, we remain positive because there
are many enticing products on the market. In addition, valuations are reasonable
and expectations are modest after years of slow growth. Uncertainty has
prevailed in technology stocks for several years as many worried about stock
option expensing, rising interest rates, and high valuations. We believe that
2006 may put many of these fears to rest and that it may become a pivotal year
for technology.
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 SMALL COMPANY SECURITIES RISK, FOREIGN INVESTMENTS RISK,
NONDIVERSIFIED PORTFOLIO RISK, AND TECHNOLOGY SECTOR RISK. CONSULT THE FUND'S
PROSPECTUS FOR ADDITIONAL INFORMATION ON THESE AND OTHER RISKS.
- --------------------------------------------------------------------------------
The views expressed are as of April 30, 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 SPECIALIZED TECHNOLOGY 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 Class Z shares of the Fund for periods prior to
April 11, 2005, reflects performance of the Class A shares of the Fund, and
includes fees and expenses that are not applicable to and are lower than those
of the Class Z shares.
6
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE SPECIALTY FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge
------------------------------------------ ------------------------------------------
6-Months* 1-Year 5-Year Life of Fund 6-Months* 1-Year 5-Year Life of Fund
--------- ------ ------ ------------ --------- ------ ------ ------------
Specialized Technology Fund - Class A
(Incept. Date 09/18/2000) 4.71 24.84 2.06 (10.26) 11.15 32.57 3.27 (9.30)
- -----------------------------------------------------------------------------------------------------------------------------------
Specialized Technology Fund - Class B
(Incept. Date 09/18/2000) 5.80 26.59 2.12 (10.28) 10.80 31.59 2.49 (9.99)
- -----------------------------------------------------------------------------------------------------------------------------------
Specialized Technology Fund - Class C
(Incept. Date 09/18/2000) 9.82 30.67 2.45 (10.01) 10.82 31.67 2.45 (10.01)
- -----------------------------------------------------------------------------------------------------------------------------------
Specialized Technology Fund - Class Z
(Incept. Date 04/11/2005) 10.96 32.34 3.12 (9.44)
- -----------------------------------------------------------------------------------------------------------------------------------
Benchmarks
- -----------------------------------------------------------------------------------------------------------------------------------
Goldman Sachs Technology Index 2 8.49 21.95 (3.68) (15.28)
- -----------------------------------------------------------------------------------------------------------------------------------
S&P 500 Index 3 9.63 15.41 2.70 0.96
- -----------------------------------------------------------------------------------------------------------------------------------
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FUND CHARACTERISTICS 4 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
Beta** 1.41
- --------------------------------------------------------------------------------
Price to Earnings (trailing 12 months) 42.00x
- --------------------------------------------------------------------------------
Price to Book Ratio 4.89x
- --------------------------------------------------------------------------------
Median Market Cap. ($B) $ 10.10
- --------------------------------------------------------------------------------
Portfolio Turnover*** 105%
- --------------------------------------------------------------------------------
** A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE GOLDMAN SACHS
TECHNOLOGY INDEX BETA IS 1.00 BY DEFINITION.
*** THIS MEASURE IS BASED ON SIX MONTHS OF THE FUND'S ACTIVITY.
SECTOR DISTRIBUTION 4 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Semiconductor Equipment Manufacturing & Related 1%
Stone, Clay, Glass & Concrete Products 1%
Transportation Equipment 1%
Wholesale Trade Durable Goods 1%
Applications Software 2%
Business Services 44%
Chemicals & Allied Products 2%
Communications 4%
Electronics 30%
Engineering, Accounting, Research Management & Related Services 1%
Home Furniture, Furnishing & Equipment Stores 1%
Industrial & Commercial Machinery & Computer Equipment 4%
Medical Products 2%
Motion Pictures 1%
Oli & Gas Extraction 4%
Petroleum Refining & Related Industries 1%
TEN LARGEST EQUITY HOLDINGS 4,5 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
Red Hat Incorporated 4.66%
- --------------------------------------------------------------------------------
QUALCOMM Incorporated 4.00%
- --------------------------------------------------------------------------------
Amdocs Limited 3.53%
- --------------------------------------------------------------------------------
AutoDesk Incorporated 3.14%
- --------------------------------------------------------------------------------
Google Incorporated Class A 3.07%
- --------------------------------------------------------------------------------
Salesforce.com Incorporated 2.91%
- --------------------------------------------------------------------------------
Chartered Semiconductor Manufacturing Limited 2.74%
- --------------------------------------------------------------------------------
Marvell Technology Group Limited 2.60%
- --------------------------------------------------------------------------------
Taiwan Semiconductor Manufacturing Company Limited ADR 2.58%
- --------------------------------------------------------------------------------
Citrix Systems Incorporated 2.57%
GROWTH OF $10,000 INVESTMENT 6 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
WELLS FARGO ADVANTAGE
SPECIALIZED TECHNOLOGY Goldman Sachs
FUND - Class A Technology Index S&P 500 Index
---------------------- ---------------- -------------
9/18/2000 9,425 10,000 10,000
9/30/2000 9,529 8,380 9,472
10/31/2000 8,426 7,747 9,432
11/30/2000 6,909 5,973 8,689
12/31/2000 6,437 5,461 8,732
1/31/2001 6,795 6,357 9,042
2/28/2001 5,014 4,595 8,218
3/31/2001 4,326 3,957 7,698
4/30/2001 4,637 4,712 8,295
5/31/2001 4,373 4,525 8,351
6/30/2001 4,232 4,536 8,148
7/31/2001 3,827 4,213 8,068
8/31/2001 3,327 3,665 7,564
9/30/2001 2,846 2,923 6,953
10/31/2001 3,261 3,393 7,086
11/30/2001 3,789 3,972 7,629
12/31/2001 3,968 3,901 7,697
1/31/2002 3,817 3,897 7,584
2/28/2002 3,252 3,376 7,438
3/31/2002 3,582 3,617 7,718
4/30/2002 3,167 3,174 7,250
5/31/2002 2,950 3,044 7,197
6/30/2002 2,686 2,614 6,684
7/31/2002 2,432 2,349 6,164
8/31/2002 2,375 2,319 6,204
9/30/2002 2,102 1,905 5,530
10/31/2002 2,432 2,321 6,016
11/30/2002 2,714 2,728 6,370
12/31/2002 2,328 2,330 5,996
1/31/2003 2,337 2,310 5,840
2/28/2003 2,319 2,345 5,752
3/31/2003 2,300 2,319 5,807
4/30/2003 2,573 2,560 6,286
5/31/2003 3,025 2,846 6,616
6/30/2003 3,205 2,839 6,701
7/31/2003 3,421 3,002 6,819
8/31/2003 3,648 3,210 6,952
9/30/2003 3,704 3,163 6,878
10/31/2003 4,090 3,472 7,267
11/30/2003 4,053 3,539 7,331
12/31/2003 4,015 3,593 7,715
1/31/2004 4,298 3,762 7,857
2/29/2004 4,156 3,655 7,966
3/31/2004 4,147 3,555 7,846
4/30/2004 3,921 3,347 7,723
5/31/2004 4,147 3,533 7,828
6/30/2004 4,279 3,620 7,980
7/31/2004 3,808 3,277 7,716
8/31/2004 3,695 3,114 7,747
9/30/2004 3,893 3,221 7,831
10/31/2004 4,270 3,392 7,950
11/30/2004 4,590 3,584 8,272
12/31/2004 4,741 3,698 8,554
1/31/2005 4,364 3,454 8,345
2/28/2005 4,373 3,461 8,520
3/31/2005 4,279 3,376 8,369
4/30/2005 4,109 3,204 8,210
5/31/2005 4,505 3,495 8,472
6/30/2005 4,420 3,426 8,483
7/31/2005 4,543 3,657 8,799
8/31/2005 4,647 3,629 8,719
9/30/2005 4,910 3,666 8,790
10/31/2005 4,901 3,601 8,643
11/30/2005 5,033 3,842 8,969
12/31/2005 5,127 3,772 8,973
1/31/2006 5,504 3,912 9,210
2/28/2006 5,250 3,848 9,235
3/31/2006 5,476 3,933 9,350
4/30/2006 5,448 3,907 9,475
2 The Goldman Sachs Technology Index is a modified capitalization-weighted index
of selected technology stocks. You cannot invest directly in an Index.
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 securities divided by total market value of the portfolio.
6 The chart compares the performance of the WELLS FARGO ADVANTAGE SPECIALIZED
TECHNOLOGY FUND Class A for the life of the Fund with the Goldman Sachs
Technology Index and S&P 500 Index. The chart assumes a hypothetical investment
of $10,000 in Class A shares and reflects all operating expenses and, for Class
A shares, assumes the maximum initial sales charge of 5.75%.
7
WELLS FARGO ADVANTAGE SPECIALTY 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 six-month period and held for the entire six-month period (November 1,
2005 to April 30, 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
11/01/2005 04/30/2006 Period* Expense Ratio
Wells Fargo Advantage Specialized Financial Services Fund
- -----------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Specialized Financial Services Fund - Class A
Actual $ 1,000.00 $ 1,119.30 $ 7.09 1.35%
- -----------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,018.10 $ 6.76 1.35%
- -----------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Specialized Financial Services Fund - Class B
Actual $ 1,000.00 $ 1,112.50 $ 11.00 2.10%
- -----------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,014.38 $ 10.49 2.10%
- -----------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Specialized Financial Services Fund - Class C
Actual $ 1,000.00 $ 1,113.40 $ 11.00 2.10%
- -----------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,014.38 $ 10.49 2.10%
Wells Fargo Advantage Specialized Health Services Fund
- -----------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Specialized Health Services Fund - Class A
Actual $ 1,000.00 $ 1,018.70 $ 8.26 1.65%
- -----------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,016.61 $ 8.25 1.65%
- -----------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Specialized Health Services Fund - Class B
Actual $ 1,000.00 $ 1,015.60 $ 11.99 2.40%
- -----------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,012.89 $ 11.98 2.40%
- -----------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Specialized Health Services Fund - Class C
Actual $ 1,000.00 $ 1,015.60 $ 11.99 2.40%
- -----------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,012.89 $ 11.98 2.40%
8
FUND EXPENSES (UNAUDITED) WELLS FARGO ADVANTAGE SPECIALTY FUNDS
- --------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses
Value Value Paid During Net Annual
11/01/2005 04/30/2006 Period* Expense Ratio
Wells Fargo Advantage Specialized Technology Fund
- -----------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Specialized Technology Fund - Class A
Actual $ 1,000.00 $ 1,111.50 $ 9.16 1.75%
- -----------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,016.12 $ 8.75 1.75%
- -----------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Specialized Technology Fund - Class B
Actual $ 1,000.00 $ 1,108.00 $13.07 2.50%
- -----------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,012.40 $12.47 2.50%
- -----------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Specialized Technology Fund - Class C
Actual $ 1,000.00 $ 1,108.20 $13.07 2.50%
- -----------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,012.40 $12.47 2.50%
- -----------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Specialized Technology Fund - Class Z
Actual $ 1,000.00 $ 1,109.60 $ 9.94 1.90%
- -----------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,015.37 $ 9.49 1.90%
* 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).
9
WELLS FARGO ADVANTAGE SPECIALTY FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SPECIALIZED FINANCIAL SERVICES FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 99.57%
BUSINESS SERVICES - 1.11%
88,000 FIRST DATA CORPORATION $ 4,196,720
--------------
DEPOSITORY INSTITUTIONS - 45.93%
604,762 BANK OF AMERICA CORPORATION<< 30,189,719
268,300 BANK OF NEW YORK COMPANY INCORPORATED 9,430,745
72,250 BANK OF THE OZARKS INCORPORATED 2,456,500
640,900 CITIGROUP INCORPORATED 32,012,955
127,200 CITY NATIONAL CORPORATION 9,280,512
71,700 COMPASS BANCSHARES INCORPORATED<< 3,940,632
72,442 CULLEN FROST BANKERS INCORPORATED 4,192,943
115,900 GOLDEN WEST FINANCIAL CORPORATION<< 8,329,733
431,000 JP MORGAN CHASE & COMPANY<< 19,558,780
60,000 MARSHALL & ILSLEY CORPORATION 2,743,200
77,000 NORTHERN TRUST CORPORATION 4,534,530
117,600 PNC FINANCIAL SERVICES GROUP 8,404,872
82,000 STATE STREET CORPORATION 5,356,240
294,347 SUMMIT BANCSHARES INCORPORATED 5,448,363
37,700 SUNTRUST BANKS INCORPORATED 2,915,341
277,800 US BANCORP<< 8,734,032
121,800 WACHOVIA CORPORATION<< 7,289,730
100,600 ZIONS BANCORPORATION 8,352,818
173,171,645
--------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS,
EXCEPT COMPUTER EQUIPMENT - 2.42%
263,300 GENERAL ELECTRIC COMPANY<< 9,107,547
--------------
FINANCIAL SERVICES - 0.81%
95,800 INDEPENDENT BANK CORPORATION MASSACHUSETTS 3,048,356
--------------
HOLDING & OTHER INVESTMENT OFFICES - 0.69%
106,700 ASPEN INSURANCE HOLDINGS LIMITED 2,598,145
--------------
INSURANCE AGENTS, BROKERS & SERVICE - 2.15%
60,000 MARSH & MCLENNAN COMPANIES INCORPORATED 1,840,200
120,800 NATIONAL FINANCIAL PARTNERS CORPORATION 6,281,600
8,121,800
--------------
INSURANCE CARRIERS - 19.74%
74,000 ACE LIMITED 4,109,960
71,600 ALLSTATE CORPORATION 4,044,684
272,200 AMERICAN INTERNATIONAL GROUP INCORPORATED 17,761,050
111,800 CHUBB CORPORATION<< 5,762,172
39,700 EVEREST REINSURANCE GROUP LIMITED 3,612,700
70,000 FIDELITY NATIONAL TITLE GROUP INCORPORATED<< 1,516,200
171,000 GENWORTH FINANCIAL INCORPORATED 5,677,200
114,000 HARTFORD FINANCIAL SERVICES GROUP INCORPORATED 10,480,020
78,800 PRUDENTIAL FINANCIAL INCORPORATED 6,156,644
53,900 SELECTIVE INSURANCE GROUP INCORPORATED 3,000,074
10
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SPECIALTY FUNDS
- --------------------------------------------------------------------------------
SPECIALIZED FINANCIAL SERVICES FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
INSURANCE CARRIERS (CONTINUED)
237,000 ST. PAUL TRAVELERS COMPANIES INCORPORATED $ 10,435,110
28,700 XL CAPITAL LIMITED CLASS A 1,891,043
74,446,857
-------------
NON-DEPOSITORY CREDIT INSTITUTIONS - 9.36%
157,900 AMERICAN CAPITAL STRATEGIES LIMITED<< 5,498,078
173,000 AMERICAN EXPRESS COMPANY 9,309,130
116,200 CAPITAL ONE FINANCIAL CORPORATION<< 10,067,568
87,000 FANNIE MAE 4,402,200
98,500 FREDDIE MAC 6,014,410
35,291,386
-------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 17.36%
65,300 ALLIANCE BERNSTEIN HOLDING LIMITED PARTNERSHIP<< 4,208,585
177,900 AMVESCAP PLC ADR<< 3,890,673
67,400 BEAR STEARNS COMPANIES INCORPORATED<< 9,605,174
80,900 GOLDMAN SACHS GROUP INCORPORATED 12,967,461
46,000 LEHMAN BROTHERS HOLDINGS INCORPORATED<< 6,952,900
195,100 MERRILL LYNCH & COMPANY INCORPORATED<< 14,878,326
124,000 MORGAN STANLEY 7,973,200
71,000 NUVEEN INVESTMENTS CLASS A 3,416,520
85,000 TD AMERITRADE HOLDING CORPORATION+ 1,577,600
65,470,439
-------------
TOTAL COMMON STOCKS (COST $277,830,417) 375,452,895
-------------
COLLATERAL FOR SECURITIES LENDING - 28.26%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 1.01%
3,806,508 SCUDDER DAILY ASSETS MONEY MARKET FUND 3,806,508
-------------
PRINCIPAL INTEREST RATE MATURITY DATE
COLLATERAL INVESTED IN OTHER ASSETS - 27.25%
$ 290,282 AMERICAN GENERAL FINANCE CORPORATION+/- 4.93% 05/15/2007 290,404
120,854 APRECO LLC 4.60 05/15/2006 120,625
264,511 APRECO LLC 4.92 06/15/2006 262,874
2,386,760 AQUIFER FUNDING LIMITED 4.80 05/03/2006 2,386,115
806,338 AQUIFER FUNDING LIMITED 4.80 05/04/2006 806,015
806,338 AQUINAS FUNDING LLC 5.04 06/23/2006 800,451
1,648,090 ATLANTIC ASSET SECURITIZATION CORPORATION 4.86 05/11/2006 1,645,865
1,612,675 ATLAS CAPITAL FUNDING LIMITED SERIES MTN+/- 4.81 11/03/2006 1,612,675
387,042 ATLAS CAPITAL FUNDING LIMITED 4.60 05/15/2006 386,311
806,338 ATLAS CAPITAL FUNDING LIMITED+/- 4.94 10/20/2006 806,338
806,338 ATLAS CAPITAL FUNDING LIMITED+/- 4.93 12/22/2006 806,338
806,338 ATLAS CAPITAL FUNDING LIMITED+/- 4.98 04/25/2007 806,338
52,864 ATOMIUM FUNDING CORPORATION 4.81 05/03/2006 52,849
3,072,243 ATOMIUM FUNDING CORPORATION 4.81 05/04/2006 3,071,015
649,876 ATOMIUM FUNDING CORPORATION 4.83 05/05/2006 649,532
392,267 ATOMIUM FUNDING CORPORATION 5.00 06/12/2006 390,004
11
WELLS FARGO ADVANTAGE SPECIALTY FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SPECIALIZED FINANCIAL SERVICES FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 1,935,210 BASF AG ADR 4.81% 05/04/2006 $ 1,934,436
967,605 BEAR STEARNS & COMPANY+/- 4.93 10/04/2006 967,605
1,652,286 BEAR STEARNS & COMPANY REPURCHASE AGREEMENT
(MATURITY VALUE $1,652,512) 4.92 05/01/2006 1,652,286
111,887 BETA FINANCE INCORPORATED SERIES MTN+/- 4.91 06/02/2006 111,894
17,739,429 BNP PARIBAS REPURCHASE AGREEMENT
(MATURITY VALUE $17,741,858) 4.93 05/01/2006 17,739,429
1,073,945 BUCKINGHAM CDO LLC 4.96 05/23/2006 1,070,712
1,612,675 BUCKINGHAM CDO LLC 5.08 07/24/2006 1,593,936
1,941,564 BUCKINGHAM II CDO LLC 4.86 05/08/2006 1,939,759
225,775 BUCKINGHAM II CDO LLC 4.95 05/24/2006 225,063
806,338 CAIRN HIGH GRADE FUNDING I 4.81 05/02/2006 806,233
645,070 CAIRN HIGH GRADE FUNDING I 4.83 05/08/2006 644,470
419,296 CAIRN HIGH GRADE FUNDING I 4.76 05/10/2006 418,784
548,310 CAIRN HIGH GRADE FUNDING I 4.93 05/18/2006 547,043
332,953 CEDAR SPRINGS CAPITAL COMPANY LLC 4.80 05/05/2006 332,777
445,098 CEDAR SPRINGS CAPITAL COMPANY LLC 4.68 05/08/2006 444,684
1,038,208 CEDAR SPRINGS CAPITAL COMPANY LLC 4.83 05/09/2006 1,037,087
143,431 CEDAR SPRINGS CAPITAL COMPANY LLC 4.69 05/10/2006 143,256
645,070 CEDAR SPRINGS CAPITAL COMPANY LLC 4.70 05/12/2006 644,109
467,676 CEDAR SPRINGS CAPITAL COMPANY LLC 5.01 06/05/2006 465,426
322,535 CEDAR SPRINGS CAPITAL COMPANY LLC 4.89 06/07/2006 320,893
858,427 CEDAR SPRINGS CAPITAL COMPANY LLC 4.90 06/12/2006 853,474
1,010,180 CEDAR SPRINGS CAPITAL COMPANY LLC 4.99 06/21/2006 1,003,078
809,499 CONCORD MINUTEMEN CAPITAL COMPANY SERIES A 4.85 05/11/2006 808,406
1,612,675 CONCORD MINUTEMEN CAPITAL COMPANY SERIES A 4.83 05/12/2006 1,610,273
2,257,746 CONCORD MINUTEMEN CAPITAL COMPANY SERIES B+/- 4.85 05/14/2006 2,257,746
2,086,802 CORPORATE ASSET SECURITIZATION AUSTRALIA LIMITED 5.00 05/25/2006 2,079,936
999,859 CREDIT SUISSE FIRST BOSTON NEW YORK SERIES YCD1+/- 4.92 05/04/2006 999,799
806,338 CULLINAN FINANCE CORPORATION SERIES MTN+/- 4.71 11/15/2006 806,418
419,296 DEER VALLEY FUNDING LLC 4.78 05/03/2006 419,182
1,225,633 DEER VALLEY FUNDING LLC 4.84 05/08/2006 1,224,493
63,120 DEER VALLEY FUNDING LLC 4.89 05/15/2006 63,001
515,540 DEER VALLEY FUNDING LLC 4.92 05/16/2006 514,494
4,012,219 DEUTSCHE BANK REPURCHASE AGREEMENT
(MATURITY VALUE $4,012,756) 4.82 05/01/2006 4,012,219
51,606 EDISON ASSET SECURITIZATION LLC 4.84 05/15/2006 51,508
64,507 EIFFEL FUNDING LLC 4.80 05/01/2006 64,507
1,161,804 EUREKA SECURITIZATION INCORPORATED 4.86 05/16/2006 1,159,445
1,935,210 GEMINI SECURITIZATION INCORPORATED 4.79 05/01/2006 1,935,210
48,380 GEMINI SECURITIZATION INCORPORATED 4.88 05/24/2006 48,228
1,450,602 GEORGE STREET FINANCE LLC 4.80 05/02/2006 1,450,413
774,084 GOLDMAN SACHS GROUP INCORPORATED+/- 4.97 06/30/2006 774,084
64,507 HARRIER FINANCE FUNDING LLC+/- 4.98 05/15/2007 64,521
112,887 HBOS TREASURY SERVICES PLC+/- 5.12 01/12/2007 113,000
516,056 ING USA ANNUITY & LIFE INSURANCE+/- 5.03 06/06/2006 516,056
41,930 K2 (USA) LLC 4.61 05/02/2006 41,924
149,172 K2 (USA) LLC SERIES MTN+/- 4.90 07/24/2006 149,202
12
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SPECIALTY FUNDS
- --------------------------------------------------------------------------------
SPECIALIZED FINANCIAL SERVICES FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 483,803 KAUPTHING BANK HF+/- 4.98% 03/20/2007 $ 483,067
129,014 KLIO II FUNDING CORPORATION 4.96 06/30/2006 127,947
1,078,203 KLIO III FUNDING CORPORATION 4.93 05/22/2006 1,075,119
1,550,362 KLIO III FUNDING CORPORATION 4.96 06/30/2006 1,537,540
32,254 LEXINGTON PARKER CAPITAL CORPORATION 4.60 05/02/2006 32,249
5,169,302 LEXINGTON PARKER CAPITAL CORPORATION 4.85 05/05/2006 5,166,562
122,434 LEXINGTON PARKER CAPITAL CORPORATION 4.68 05/10/2006 122,285
54,831 LEXINGTON PARKER CAPITAL CORPORATION 4.96 06/20/2006 54,453
806,338 LIBERTY LIGHT US CAPITAL SERIES MTN+/- 4.84 05/26/2006 806,354
64,507 LINKS FINANCE LLC SERIES MTN1+/- 4.82 09/12/2006 64,507
741,831 LIQUID FUNDING LIMITED+/- 4.88 08/14/2006 741,831
483,803 LIQUID FUNDING LIMITED+/- 4.79 12/01/2006 483,803
193,521 LIQUID FUNDING LIMITED SERIES MTN+/- 4.85 02/20/2007 193,525
322,535 MBIA GLOBAL FUNDING LLC+/- 4.92 02/20/2007 322,516
1,620,739 MERRILL LYNCH & COMPANY SERIES MTN+/- 5.28 10/27/2006 1,622,035
967,605 MORGAN STANLEY+/- 4.94 10/10/2006 967,605
149,172 MORGAN STANLEY SERIES EXL+/- 4.93 08/13/2010 149,208
728,929 MORTGAGE INTEREST NET TRUST 4.76 05/03/2006 728,732
32,254 NATIONWIDE BUILDING SOC+/- 5.20 07/21/2006 32,265
143,786 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.91 06/26/2006 142,676
51,767 NORDEA NORTH AMERICA INCORPORATED 4.80 05/03/2006 51,753
103,211 NORDEA NORTH AMERICA INCORPORATED 4.81 05/09/2006 103,100
61,282 NORDEA NORTH AMERICA INCORPORATED 4.87 05/15/2006 61,166
96,599 NORTH SEA FUNDING LLC 5.00 06/26/2006 95,854
1,612,675 NORTHERN ROCK PLC+/- 4.83 02/05/2007 1,612,756
130,465 RACERS TRUST 2004-6-MM+/- 4.95 05/22/2006 130,484
607,882 REGENCY MARKETS LLC 5.06 07/20/2006 601,153
32,254 SCALDIS CAPITAL LIMITED 4.91 06/15/2006 32,054
1,609,289 SEDNA FINANCE INCORPORATED 4.86 05/02/2006 1,609,080
645,070 SLM CORPORATION+/- 4.86 05/04/2007 644,909
258,028 SWEDBANK (FORENINGS SPARBANKEN) 4.81 05/09/2006 257,749
161,268 SWEDISH NATIONAL HOUSING FINANCE (SBAB) 5.06 07/18/2006 159,527
129,014 TANGO FINANCE CORPORATION 4.94 06/21/2006 128,107
372,947 TANGO FINANCE CORPORATION SERIES MTN+/- 4.90 10/25/2006 373,070
974,991 THUNDER BAY FUNDING INCORPORATED 5.00 06/16/2006 968,810
1,148,676 TIERRA ALTA FUNDING I LIMITED 4.82 05/10/2006 1,147,275
1,662,410 TIERRA ALTA FUNDING I LIMITED 4.83 05/11/2006 1,660,166
186,458 TRAVELERS INSURANCE COMPANY+/- 4.92 02/09/2007 186,454
806,338 UNICREDITO ITALIANO SERIES LIB+/- 4.86 03/09/2007 806,322
1,225,633 US BANK NA SERIES BKNT+/- 5.13 07/28/2006 1,225,695
96,761 VERSAILLES CDS LLC 4.87 05/15/2006 96,578
806,338 VERSAILLES CDS LLC 4.99 06/20/2006 800,782
32,254 VERSAILLES CDS LLC 5.00 06/21/2006 32,027
340,662 VERSAILLES CDS LLC 5.04 06/28/2006 337,940
161,268 WHISTLEJACKET CAPITAL LIMITED 4.91 05/15/2006 160,963
322,535 WHISTLEJACKET CAPITAL LIMITED+/- 4.80 06/09/2006 322,535
521,055 WHISTLEJACKET CAPITAL LIMITED 5.02 06/26/2006 517,033
13
WELLS FARGO ADVANTAGE SPECIALTY FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SPECIALIZED FINANCIAL SERVICES FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 161,268 WHITE PINE FINANCE LLC 4.80% 05/05/2006 $ 161,182
131,659 WHITE PINE FINANCE LLC 4.83 05/25/2006 131,226
99,083 WHITE PINE FINANCE LLC 4.91 06/20/2006 98,400
851,138 WHITE PINE FINANCE LLC 4.92 06/22/2006 845,044
774,084 WHITE PINE FINANCE LLC SERIES MTN1+/- 4.84 06/12/2006 774,115
806,338 WHITE PINE FINANCE LLC SERIES MTN1+/- 4.85 07/17/2006 806,338
102,748,174
-------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $106,554,682) 106,554,682
-------------
REPURCHASE AGREEMENTS - 0.23%
876,000 GOLDMAN SACHS & COMPANY - 102% COLLATERALIZED BY US
GOVERNMENT SECURITIES (MATURITY VALUE $876,113) 4.65 05/01/2006 876,000
TOTAL REPURCHASE AGREEMENTS (COST $876,000) 876,000
-------------
TOTAL INVESTMENTS IN SECURITIES
(COST $385,261,099)* 128.06% $ 482,883,577
OTHER ASSETS AND LIABILITIES, NET (28.06) (105,816,773)
------ -------------
TOTAL NET ASSETS 100.00% $ 377,066,804
====== =============
<< ALL OR A PORTION OF THIS SECURITY IS ON LOAN.
+ NON-INCOME EARNING SECURITIES.
+/- VARIABLE RATE INVESTMENTS.
* 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.
14
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SPECIALTY FUNDS
- --------------------------------------------------------------------------------
SPECIALIZED HEALTH SCIENCES FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 94.71%
BIOPHARMACUETICALS - 0.62%
6,300 ADOLOR CORPORATION+<< $ 148,176
------------
BUSINESS SERVICES - 0.58%
6,300 ECLIPSYS CORPORATION+<< 138,726
------------
CHEMICALS & ALLIED PRODUCTS - 62.72%
23,400 ABBOTT LABORATORIES 1,000,116
3,800 ALEXION PHARMACEUTICALS INCORPORATED+ 129,162
15,400 AMGEN INCORPORATED+ 1,042,580
4,900 BARR PHARMACEUTICALS INCORPORATED+<< 296,695
16,100 BIOGEN IDEC INCORPORATED+ 722,085
20,400 BRISTOL-MYERS SQUIBB COMPANY 517,752
12,600 CONOR MEDSYSTEMS INCORPORATED+<< 340,200
9,600 ELI LILLY & COMPANY 508,032
6,000 FOREST LABORATORIES INCORPORATED+ 242,280
11,300 GENENTECH INCORPORATED+ 900,723
21,900 GILEAD SCIENCES INCORPORATED+ 1,259,250
9,800 MEDIMMUNE INCORPORATED+ 308,406
25,400 MERCK & COMPANY INCORPORATED 874,268
3,600 MYOGEN INCORPORATED+ 119,016
3,800 NEUROCRINE BIOSCIENCES INCORPORATED+ 217,968
22,200 NOVARTIS AG 1,273,609
8,600 PDL BIOPHARMA INCORPORATED+<< 247,508
57,200 PFIZER INCORPORATED 1,448,876
5,700 SANOFI-AVENTIS SA 537,539
52,600 SCHERING-PLOUGH CORPORATION 1,016,232
2,700 SEPRACOR INCORPORATED 120,528
10,600 TEVA PHARMACEUTICAL INDUSTRIES LIMITED ADR 429,300
11,600 THERAVANCE INCORPORATED+<< 325,496
49,200 VION PHARMACEUTICALS INCORPORATED+<< 94,464
19,700 WYETH 958,799
14,930,884
------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED
SERVICES - 3.27%
15,900 CELGENE CORPORATION+<< 670,344
5,900 TELIK INCORPORATED+<< 108,501
778,845
------------
FURNITURE & FIXTURES - 0.99%
5,400 KINETIC CONCEPTS INCORPORATED+<< 235,764
------------
HEALTH SERVICES - 5.54%
3,900 ROCHE HOLDING AG+ 599,686
15,200 SHIRE PHARMACEUTICALS GROUP PLC ADR<< 719,872
1,319,558
------------
HOLDING & OTHER INVESTMENT OFFICES - 0.91%
8,900 NIGHTHAWK RADIOLOGY HOLDINGS INCORPORATED+ 215,647
------------
15
WELLS FARGO ADVANTAGE SPECIALTY FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SPECIALIZED HEALTH SCIENCES FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 1.94%
8,800 VARIAN MEDICAL SYSTEMS INCORPORATED+ $ 460,944
------------
INSURANCE CARRIERS - 0.50%
2,900 HEALTH NET INCORPORATED 118,030
------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,MEDICAL & OPTICAL
GOODS - 13.32%
2,400 ALLERGAN INCORPORATED 246,528
9,100 BAXTER INTERNATIONAL INCORPORATED 343,070
6,600 BIOMET INCORPORATED 245,388
10,180 BOSTON SCIENTIFIC CORPORATION+ 236,583
5,300 FISHER SCIENTIFIC INTERNATIONAL INCORPORATED+<< 373,915
19,200 KYPHON INCORPORATED+<< 797,760
8,770 ST. JUDE MEDICAL INCORPORATED+ 346,240
5,300 STRYKER CORPORATION 231,875
4,300 SYNERON MEDICAL LIMITED+<< 111,241
3,800 ZIMMER HOLDINGS INCORPORATED+ 239,020
3,171,620
------------
WHOLESALE TRADE NON-DURABLE GOODS - 3.32%
7,000 CARDINAL HEALTH INCORPORATED 471,450
6,000 MEDCO HEALTH SOLUTIONS INCORPORATED+ 319,380
790,830
------------
WHOLESALE TRADE-DURABLE GOODS - 1.00%
9,200 CYTYC CORPORATION+ 237,820
------------
TOTAL COMMON STOCKS (COST $22,345,325) 22,546,844
------------
CONTRACTS STRIKE PRICE EXPIRATION DATE
OPTIONS - 0.07%
207 ALEXION PHARMACEUTICALS INCORPORATED
PUT+ $ 10.00 05/20/2006 1,035
71 DOV PHARMACEUTICAL INCORPORATED CALL+ 15.00 05/20/2006 355
54 KINETIC CONCEPTS INCORPORATED PUT+ 35.00 09/16/2006 15,660
TOTAL OPTIONS (PREMIUMS PAID $62,304) 17,050
------------
COLLATERAL FOR SECURITIES LENDING - 15.29%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.54%
130,080 SCUDDER DAILY ASSETS MONEY MARKET FUND 130,080
------------
PRINCIPAL INTEREST RATE MATURITY DATE
COLLATERAL INVESTED IN OTHER ASSETS - 14.75%
$ 9,920 AMERICAN GENERAL FINANCE
CORPORATION+/- 4.93% 05/15/2007 9,924
4,130 APRECO LLC 4.60 05/15/2006 4,122
9,039 APRECO LLC 4.92 06/15/2006 8,983
81,563 AQUIFER FUNDING LIMITED 4.80 05/03/2006 81,541
27,555 AQUIFER FUNDING LIMITED 4.80 05/04/2006 27,544
27,555 AQUINAS FUNDING LLC 5.04 06/23/2006 27,354
56,320 ATLANTIC ASSET SECURITIZATION
CORPORATION 4.86 05/11/2006 56,244
55,110 ATLAS CAPITAL FUNDING LIMITED
SERIES MTN+/- 4.81 11/03/2006 55,110
16
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SPECIALTY FUNDS
- --------------------------------------------------------------------------------
SPECIALIZED HEALTH SCIENCES FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 13,226 ATLAS CAPITAL FUNDING LIMITED 4.60% 05/15/2006 $ 13,201
27,555 ATLAS CAPITAL FUNDING LIMITED+/- 4.94 10/20/2006 27,555
27,555 ATLAS CAPITAL FUNDING LIMITED+/- 4.93 12/22/2006 27,555
27,555 ATLAS CAPITAL FUNDING LIMITED+/- 4.98 04/25/2007 27,555
1,807 ATOMIUM FUNDING CORPORATION 4.81 05/03/2006 1,806
104,988 ATOMIUM FUNDING CORPORATION 4.81 05/04/2006 104,946
22,208 ATOMIUM FUNDING CORPORATION 4.83 05/05/2006 22,196
13,405 ATOMIUM FUNDING CORPORATION 5.00 06/12/2006 13,328
66,132 BASF AG ADR 4.81 05/04/2006 66,105
33,066 BEAR STEARNS & COMPANY+/- 4.93 10/04/2006 33,066
56,464 BEAR STEARNS & COMPANY REPURCHASE
AGREEMENT (MATURITY VALUE $56,472) 4.92 05/01/2006 56,464
3,824 BETA FINANCE INCORPORATED SERIES MTN+/- 4.91 06/02/2006 3,824
606,210 BNP PARIBAS REPURCHASE AGREEMENT
(MATURITY VALUE $606,293) 4.93 05/01/2006 606,210
36,700 BUCKINGHAM CDO LLC 4.96 05/23/2006 36,589
55,110 BUCKINGHAM CDO LLC 5.08 07/24/2006 54,470
66,349 BUCKINGHAM II CDO LLC 4.86 05/08/2006 66,287
7,715 BUCKINGHAM II CDO LLC 4.95 05/24/2006 7,691
27,555 CAIRN HIGH GRADE FUNDING I 4.81 05/02/2006 27,551
22,044 CAIRN HIGH GRADE FUNDING I 4.83 05/08/2006 22,023
14,329 CAIRN HIGH GRADE FUNDING I 4.76 05/10/2006 14,311
18,737 CAIRN HIGH GRADE FUNDING I 4.93 05/18/2006 18,694
11,378 CEDAR SPRINGS CAPITAL COMPANY LLC 4.80 05/05/2006 11,372
15,210 CEDAR SPRINGS CAPITAL COMPANY LLC 4.68 05/08/2006 15,196
35,479 CEDAR SPRINGS CAPITAL COMPANY LLC 4.83 05/09/2006 35,440
4,901 CEDAR SPRINGS CAPITAL COMPANY LLC 4.69 05/10/2006 4,895
22,044 CEDAR SPRINGS CAPITAL COMPANY LLC 4.70 05/12/2006 22,011
15,982 CEDAR SPRINGS CAPITAL COMPANY LLC 5.01 06/05/2006 15,905
11,022 CEDAR SPRINGS CAPITAL COMPANY LLC 4.89 06/07/2006 10,966
29,335 CEDAR SPRINGS CAPITAL COMPANY LLC 4.90 06/12/2006 29,166
34,521 CEDAR SPRINGS CAPITAL COMPANY LLC 4.99 06/21/2006 34,278
27,663 CONCORD MINUTEMEN CAPITAL COMPANY
SERIES A 4.85 05/11/2006 27,626
55,110 CONCORD MINUTEMEN CAPITAL COMPANY
SERIES A 4.83 05/12/2006 55,028
77,154 CONCORD MINUTEMEN CAPITAL COMPANY
SERIES B+/- 4.85 05/14/2006 77,154
71,312 CORPORATE ASSET SECURITIZATION
AUSTRALIA LIMITED 5.00 05/25/2006 71,078
34,168 CREDIT SUISSE FIRST BOSTON NEW
YORK SERIES YCD1+/- 4.92 05/04/2006 34,166
27,555 CULLINAN FINANCE CORPORATION
SERIES MTN+/- 4.71 11/15/2006 27,558
14,329 DEER VALLEY FUNDING LLC 4.78 05/03/2006 14,325
41,884 DEER VALLEY FUNDING LLC 4.84 05/08/2006 41,845
2,157 DEER VALLEY FUNDING LLC 4.89 05/15/2006 2,153
17,618 DEER VALLEY FUNDING LLC 4.92 05/16/2006 17,582
137,110 DEUTSCHE BANK REPURCHASE AGREEMENT
(MATURITY VALUE $137,128) 4.82 05/01/2006 137,110
1,764 EDISON ASSET SECURITIZATION LLC 4.84 05/15/2006 1,760
2,204 EIFFEL FUNDING LLC 4.80 05/01/2006 2,204
39,702 EUREKA SECURITIZATION INCORPORATED 4.86 05/16/2006 39,622
66,132 GEMINI SECURITIZATION INCORPORATED 4.79 05/01/2006 66,132
17
WELLS FARGO ADVANTAGE SPECIALTY FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SPECIALIZED HEALTH SCIENCES FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 1,653 GEMINI SECURITIZATION INCORPORATED 4.88% 05/24/2006 $ 1,648
49,571 GEORGE STREET FINANCE LLC 4.80 05/02/2006 49,565
26,453 GOLDMAN SACHS GROUP INCORPORATED+/- 4.97 06/30/2006 26,453
2,204 HARRIER FINANCE FUNDING LLC+/- 4.98 05/15/2007 2,205
3,858 HBOS TREASURY SERVICES PLC+/- 5.12 01/12/2007 3,862
17,635 ING USA ANNUITY & LIFE INSURANCE+/- 5.03 06/06/2006 17,635
1,433 K2 (USA) LLC 4.61 05/02/2006 1,433
5,098 K2 (USA) LLC SERIES MTN+/- 4.90 07/24/2006 5,099
16,533 KAUPTHING BANK HF+/- 4.98 03/20/2007 16,508
4,409 KLIO II FUNDING CORPORATION 4.96 06/30/2006 4,372
36,845 KLIO III FUNDING CORPORATION 4.93 05/22/2006 36,740
52,981 KLIO III FUNDING CORPORATION 4.96 06/30/2006 52,542
1,102 LEXINGTON PARKER CAPITAL CORPORATION 4.60 05/02/2006 1,102
176,651 LEXINGTON PARKER CAPITAL CORPORATION 4.85 05/05/2006 176,557
4,184 LEXINGTON PARKER CAPITAL CORPORATION 4.68 05/10/2006 4,179
1,874 LEXINGTON PARKER CAPITAL CORPORATION 4.96 06/20/2006 1,861
27,555 LIBERTY LIGHT US CAPITAL SERIES MTN+/- 4.84 05/26/2006 27,555
2,204 LINKS FINANCE LLC SERIES MTN1+/- 4.82 09/12/2006 2,204
25,351 LIQUID FUNDING LIMITED+/- 4.88 08/14/2006 25,351
16,533 LIQUID FUNDING LIMITED+/- 4.79 12/01/2006 16,533
6,613 LIQUID FUNDING LIMITED SERIES MTN+/- 4.85 02/20/2007 6,613
11,022 MBIA GLOBAL FUNDING LLC+/- 4.92 02/20/2007 11,021
55,386 MERRILL LYNCH & COMPANY SERIES MTN+/- 5.28 10/27/2006 55,430
33,066 MORGAN STANLEY+/- 4.94 10/10/2006 33,066
5,098 MORGAN STANLEY SERIES EXL+/- 4.93 08/13/2010 5,099
24,910 MORTGAGE INTEREST NET TRUST 4.76 05/03/2006 24,903
1,102 NATIONWIDE BUILDING SOC+/- 5.20 07/21/2006 1,103
4,914 NIEUW AMSTERDAM RECEIVABLES
CORPORATION 4.91 06/26/2006 4,876
1,769 NORDEA NORTH AMERICA INCORPORATED 4.80 05/03/2006 1,769
3,527 NORDEA NORTH AMERICA INCORPORATED 4.81 05/09/2006 3,523
2,094 NORDEA NORTH AMERICA INCORPORATED 4.87 05/15/2006 2,090
3,301 NORTH SEA FUNDING LLC 5.00 06/26/2006 3,276
55,110 NORTHERN ROCK PLC+/- 4.83 02/05/2007 55,113
4,458 RACERS TRUST 2004-6-MM+/- 4.95 05/22/2006 4,459
20,773 REGENCY MARKETS LLC 5.06 07/20/2006 20,543
1,102 SCALDIS CAPITAL LIMITED 4.91 06/15/2006 1,095
54,994 SEDNA FINANCE INCORPORATED 4.86 05/02/2006 54,987
22,044 SLM CORPORATION+/- 4.86 05/04/2007 22,038
8,818 SWEDBANK (FORENINGS SPARBANKEN) 4.81 05/09/2006 8,808
5,511 SWEDISH NATIONAL HOUSING FINANCE
(SBAB) 5.06 07/18/2006 5,451
4,409 TANGO FINANCE CORPORATION 4.94 06/21/2006 4,378
12,745 TANGO FINANCE CORPORATION SERIES
MTN+/- 4.90 10/25/2006 12,749
33,318 THUNDER BAY FUNDING INCORPORATED 5.00 06/16/2006 33,107
39,254 TIERRA ALTA FUNDING I LIMITED 4.82 05/10/2006 39,206
56,810 TIERRA ALTA FUNDING I LIMITED 4.83 05/11/2006 56,733
6,372 TRAVELERS INSURANCE COMPANY+/- 4.92 02/09/2007 6,372
27,555 UNICREDITO ITALIANO SERIES LIB+/- 4.86 03/09/2007 27,554
18
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SPECIALTY FUNDS
- --------------------------------------------------------------------------------
SPECIALIZED HEALTH SCIENCES FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 41,884 US BANK NA SERIES BKNT+/- 5.13% 07/28/2006 $ 41,886
3,307 VERSAILLES CDS LLC 4.87 05/15/2006 3,300
27,555 VERSAILLES CDS LLC 4.99 06/20/2006 27,365
1,102 VERSAILLES CDS LLC 5.00 06/21/2006 1,094
11,641 VERSAILLES CDS LLC 5.04 06/28/2006 11,548
5,511 WHISTLEJACKET CAPITAL LIMITED 4.91 05/15/2006 5,501
11,022 WHISTLEJACKET CAPITAL LIMITED+/- 4.80 06/09/2006 11,022
17,806 WHISTLEJACKET CAPITAL LIMITED 5.02 06/26/2006 17,669
5,511 WHITE PINE FINANCE LLC 4.80 05/05/2006 5,508
4,499 WHITE PINE FINANCE LLC 4.83 05/25/2006 4,484
3,386 WHITE PINE FINANCE LLC 4.91 06/20/2006 3,363
29,086 WHITE PINE FINANCE LLC 4.92 06/22/2006 28,878
26,453 WHITE PINE FINANCE LLC SERIES MTN1+/- 4.84 06/12/2006 26,454
27,555 WHITE PINE FINANCE LLC SERIES MTN1+/- 4.85 07/17/2006 27,555
3,511,214
------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $3,641,294) 3,641,294
------------
SHARES
SHORT-TERM INVESTMENTS - 2.19%
521,803 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~++ 521,803
------------
TOTAL SHORT-TERM INVESTMENTS (COST $521,803) 521,803
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $26,570,726)* 112.26% $ 26,726,991
OTHER ASSETS AND LIABILITIES, NET (12.26) (2,919,088)
------ ------------
TOTAL NET ASSETS 100.00% $ 23,807,903
====== ============
+ NON-INCOME EARNING SECURITIES.
<< ALL OR A PORTION OF THIS SECURITY IS ON LOAN.
+/- 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 $521,803.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
CONTRACTS STRIKE PRICE EXPIRATION DATE VALUE
WRITTEN OPTIONS - (0.17%)
(54) KINETIC CONCEPT INCORPORATED CALL+ $ 60.00 09/16/2006 (7,020)
(77) KYPHON INCORPORATED CALL+ 40.00 06/17/2006 (28,490)
(38) NEUROCRINE BIOSCIENCES INCORPORATED
CALL+ 65.00 06/17/2006 (5,700)
TOTAL WRITTEN OPTIONS (PREMIUMS RECEIVED $(31,770)) (41,210)
------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
19
WELLS FARGO ADVANTAGE SPECIALTY FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SPECIALIZED TECHNOLOGY FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 89.29%
APPLICATIONS SOFTWARE - 2.29%
144,280 CITRIX SYSTEMS INCORPORATED+ $ 5,759,658
-------------
BUSINESS SERVICES - 34.38%
81,500 ACTIVISION INCORPORATED+<< 1,156,485
212,670 AMDOCS LIMITED+ 7,911,324
167,700 AUTODESK INCORPORATED 7,050,108
136,000 CERNER CORPORATION+<< 5,392,400
53,500 CHECKFREE CORPORATION+ 2,882,045
87,800 COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION CLASS A+ 5,584,958
122,000 COGNOS INCORPORATED+<< 4,546,940
59,000 CTRIP.COM INTERNATIONAL LIMITED ADR+<< 2,654,717
91,170 EBAY INCORPORATED+ 3,137,160
26,600 ELECTRONIC ARTS INCORPORATED+ 1,510,880
86,200 ELECTRONIC DATA SYSTEMS CORPORATION 2,334,296
58,800 F5 NETWORKS INCORPORATED+ 3,443,328
16,470 GOOGLE INCORPORATED CLASS A+ 6,883,472
106,200 MERCURY INTERACTIVE CORPORATION+<< 3,823,200
1,620 MICROSOFT CORPORATION 39,123
4,350 NCR CORPORATION+ 171,390
44,200 NETEASE.COM INCORPORATED ADR+<< 958,256
355,500 RED HAT INCORPORATED+<< 10,448,145
186,060 SALESFORCE.COM INCORPORATED+<< 6,521,403
11,040 SINA CORPORATION+<< 292,008
472,000 SUN MICROSYSTEMS INCORPORATED+ 2,360,000
58,340 TELVENT GIT SA+ 816,760
72,100 THQ INCORPORATED+<< 1,847,923
2,060 YAHOO JAPAN CORPORATION 1,201,282
106,830 YAHOO! INCORPORATED+<< 3,501,887
86,469,490
-------------
CHEMICALS & ALLIED PRODUCTS - 2.20%
48,400 NEUROCRINE BIOSCIENCES INCORPORATED+ 2,776,224
93,000 TOKUYAMA CORPORATION 1,534,686
9,400 WACKER CHEMIE AG+ 1,233,347
5,544,257
-------------
COMMUNICATIONS - 4.06%
288,490 ALCATEL SA 4,160,074
1,660 RAKUTEN INCORPORATED 1,341,237
2,320,000 TENCENT HOLDINGS LIMITED+ 4,697,871
10 XM SATELLITE RADIO HOLDINGS INCORPORATED CLASS A+ 202
10,199,384
-------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 29.89%
110,200 ADC TELECOMMUNICATIONS INCORPORATED+<< 2,467,378
9,200 CANON INCORPORATED 703,746
20
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SPECIALTY FUNDS
- --------------------------------------------------------------------------------
SPECIALIZED TECHNOLOGY FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT (CONTINUED)
5,400,000 CHARTERED SEMICONDUCTOR MANUFACTURING LIMITED+ $ 6,148,396
2,530 CHARTERED SEMICONDUCTOR MANUFACTURING LIMITED ADR+<< 28,665
1,271,770 CIENA CORPORATION+<< 5,201,539
110,500 CISCO SYSTEMS INCORPORATED+ 2,314,975
99,430 EVERGREEN SOLAR INCORPORATED+<< 1,380,088
189,480 FAIRCHILD SEMICONDUCTOR INTERNATIONAL INCORPORATED+ 3,916,552
32,000 JABIL CIRCUIT INCORPORATED+ 1,247,680
102,280 MARVELL TECHNOLOGY GROUP LIMITED+ 5,839,165
27,200 MEMC ELECTRONIC MATERIALS INCORPORATED+ 1,104,320
328,950 MICRON TECHNOLOGY INCORPORATED+ 5,582,281
14,800 MURATA MANUFACTURING COMPANY LIMITED 1,077,522
121,760 NATIONAL SEMICONDUCTOR CORPORATION 3,650,365
145,000 NETWORK APPLIANCE INCORPORATED+ 5,375,150
8,200 NINTENDO COMPANY LIMITED 1,224,257
146,880 NVIDIA CORPORATION+ 4,291,833
164,000 QLOGIC CORPORATION+ 3,412,840
174,667 QUALCOMM INCORPORATED 8,967,404
4,330 SAMSUNG ELECTRONICS COMPANY LIMITED 2,956,446
28,000 SUMCO CORPORATION 1,674,615
19,400 SUNPOWER CORPORATION+<< 745,348
552,727 TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED ADR+ 5,792,579
1,870 TELEFONAKTIEBOLAGET LM ERICSSON ADR<< 66,329
75,169,473
-------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES - 0.93%
48,180 CELGENE CORPORATION+<< 2,031,269
53,150 GREENFIELD ONLINE INCORPORATED+<< 318,368
2,349,637
-------------
FOOD & KINDRED PRODUCTS - 0.29%
20,900 SUNTECH POWER HOLDINGS COMPANY+<< 716,661
-------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 1.10%
6,600 BEST BUY COMPANY INCORPORATED 373,956
46,400 MATSUSHITA ELECTRIC INDUSTRIAL COMPANY LIMITED 1,120,625
25,100 SONY CORPORATION 1,260,897
2,755,478
-------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 3.75%
51,210 APPLE COMPUTER INCORPORATED+ 3,604,672
18,010 COOPER CAMERON CORPORATION+ 904,822
11,400 ELPIDA MEMORY INCORPORATED 513,853
790 HEWLETT-PACKARD COMPANY 25,651
137,000 HITACHI LIMITED 1,019,093
7,050 INTERMEC INCORPORATED+<< 186,754
17,380 NATIONAL-OILWELL VARCO INCORPORATED+ 1,198,699
25,760 RESEARCH IN MOTION LIMITED+<< 1,973,989
9,427,533
-------------
21
WELLS FARGO ADVANTAGE SPECIALTY FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SPECIALIZED TECHNOLOGY FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
INSURANCE CARRIERS - 0.01%
270 WELLPOINT INCORPORATED+ $ 19,170
-------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS:
PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 1.32%
66,300 ENERGY CONVERSION DEVICES INCORPORATED+<< 3,315,663
-------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 0.39%
199,000 MITSUBISHI HEAVY INDUSTRIES LIMITED 985,693
-------------
MOTION PICTURES - 0.85%
79,200 DREAMWORKS ANIMATION SKG INCORPORATED+ 2,146,320
-------------
OIL & GAS EXTRACTION - 3.95%
25,000 DIAMOND OFFSHORE DRILLING INCORPORATED 2,269,250
18,300 ENSCO INTERNATIONAL INCORPORATED 978,867
29,830 GLOBALSANTAFE CORPORATION 1,825,894
51,910 SCHLUMBERGER LIMITED 3,589,058
23,780 WEATHERFORD INTERNATIONAL LIMITED+ 1,258,675
9,921,744
-------------
PETROLEUM REFINING & RELATED INDUSTRIES - 1.05%
40,680 VALERO ENERGY CORPORATION 2,633,623
-------------
SEMICONDUCTOR EQUIPMENT MANUFACTURING & RELATED - 0.74%
88,200 ASML HOLDING NV NEW YORK REGISTERED SHARES+ 1,865,430
-------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 0.94%
86,000 CORNING INCORPORATED+ 2,376,180
-------------
TRANSPORTATION EQUIPMENT - 0.67%
25,400 TOYOTA INDUSTRIES CORPORATION 1,133,202
8,620 UNITED TECHNOLOGIES CORPORATION 541,422
1,674,624
-------------
WHOLESALE TRADE-DURABLE GOODS - 0.48%
15,700 NIDEC CORPORATION 1,210,609
-------------
TOTAL COMMON STOCKS (COST $199,103,668) 224,540,628
-------------
CONTRACTS STRIKE PRICE EXPIRATION DATE
OPTIONS - 3.55%
5,630 CISCO SYSTEMS INCORPORATED CALL+ $20.00 01/19/2008 2,364,600
3,359 COMVERSE TECHNOLOGY INCORPORATED CALL+ 25.00 10/21/2006 403,080
4,450 HEWLETT-PACKARD COMPANY CALL+ 25.00 01/20/2007 3,871,500
2,550 HEWLETT-PACKARD COMPANY CALL+ 30.00 01/20/2007 1,249,500
3,500 MICROSOFT CORPORATION CALL+ 25.00 01/19/2008 1,032,500
TOTAL OPTIONS (PREMIUMS PAID $8,186,728) 8,921,180
-------------
COLLATERAL FOR SECURITIES LENDING - 16.42%
SHARES
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.59%
1,474,918 SCUDDER DAILY ASSETS MONEY MARKET FUND 1,474,918
-------------
22
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SPECIALTY FUNDS
- --------------------------------------------------------------------------------
SPECIALIZED TECHNOLOGY FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS - 15.83%
$ 112,476 AMERICAN GENERAL FINANCE CORPORATION+/- 4.93% 05/15/2007 $ 112,523
46,828 APRECO LLC 4.60 05/15/2006 46,739
102,491 APRECO LLC 4.92 06/15/2006 101,856
924,804 AQUIFER FUNDING LIMITED 4.80 05/03/2006 924,554
312,434 AQUIFER FUNDING LIMITED 4.80 05/04/2006 312,309
312,434 AQUINAS FUNDING LLC 5.04 06/23/2006 310,153
638,590 ATLANTIC ASSET SECURITIZATION CORPORATION 4.86 05/11/2006 637,728
624,868 ATLAS CAPITAL FUNDING CORPORATION SERIES MTN+/- 4.81 11/03/2006 624,868
149,968 ATLAS CAPITAL FUNDING LIMITED 4.60 05/15/2006 149,685
312,434 ATLAS CAPITAL FUNDING LIMITED+/- 4.94 10/20/2006 312,434
312,434 ATLAS CAPITAL FUNDING LIMITED+/- 4.93 12/22/2006 312,434
312,434 ATLAS CAPITAL FUNDING LIMITED+/- 4.98 04/25/2007 312,434
20,483 ATOMIUM FUNDING CORPORATION 4.81 05/03/2006 20,478
1,190,410 ATOMIUM FUNDING CORPORATION 4.81 05/04/2006 1,189,934
251,809 ATOMIUM FUNDING CORPORATION 4.83 05/05/2006 251,676
151,993 ATOMIUM FUNDING CORPORATION 5.00 06/12/2006 151,116
749,841 BASF AG ADR 4.81 05/04/2006 749,541
374,921 BEAR STEARNS & COMPANY+/- 4.93 10/04/2006 374,921
640,216 BEAR STEARNS & COMPANY REPURCHASE
(MATURITY VALUE $640,303) 4.92 05/01/2006 640,216
43,353 BETA FINANCE INCORPORATED SERIES MTN+/- 4.91 06/02/2006 43,356
6,873,544 BNP PARIBAS REPURCHASE AGREEMENT
(MATURITY VALUE $6,874,485) 4.93 05/01/2006 6,873,544
416,124 BUCKINGHAM CDO LLC 4.96 05/23/2006 414,872
624,868 BUCKINGHAM CDO LLC 5.08 07/24/2006 617,607
752,303 BUCKINGHAM II CDO LLC 4.86 05/08/2006 751,604
87,481 BUCKINGHAM II CDO LLC 4.95 05/24/2006 87,206
312,434 CAIRN HIGH GRADE FUNDING I 4.81 05/02/2006 312,393
249,947 CAIRN HIGH GRADE FUNDING I 4.83 05/08/2006 249,715
162,466 CAIRN HIGH GRADE FUNDING I 4.76 05/10/2006 162,267
212,455 CAIRN HIGH GRADE FUNDING I 4.93 05/18/2006 211,964
129,010 CEDAR SPRINGS CAPITAL COMPANY LLC 4.80 05/05/2006 128,942
172,463 CEDAR SPRINGS CAPITAL COMPANY LLC 4.68 05/08/2006 172,303
402,277 CEDAR SPRINGS CAPITAL COMPANY LLC 4.83 05/09/2006 401,843
55,576 CEDAR SPRINGS CAPITAL COMPANY LLC 4.69 05/10/2006 55,508
249,947 CEDAR SPRINGS CAPITAL COMPANY LLC 4.70 05/12/2006 249,575
181,212 CEDAR SPRINGS CAPITAL COMPANY LLC 5.01 06/05/2006 180,340
124,974 CEDAR SPRINGS CAPITAL COMPANY LLC 4.89 06/07/2006 124,337
332,617 CEDAR SPRINGS CAPITAL COMPANY LLC 4.90 06/12/2006 330,698
391,417 CEDAR SPRINGS CAPITAL COMPANY LLC 4.99 06/21/2006 388,665
313,659 CONCORD MINUTEMEN CAPITAL COMPANY SERIES A 4.85 05/11/2006 313,235
624,868 CONCORD MINUTEMEN CAPITAL COMPANY SERIES A 4.83 05/12/2006 623,937
874,815 CONCORD MINUTEMEN CAPITAL COMPANY SERIES B+/- 4.85 05/14/2006 874,815
808,579 CORPORATE ASSET SECURITIZATION AUSTRALIA LIMITED 5.00 05/25/2006 805,919
387,418 CREDIT SUISSE FIRST BOSTON NEW YORK SERIES YCD1+/- 4.92 05/04/2006 387,395
312,434 CULLINAN FINANCE CORPORATION SERIES MTN+/- 4.71 11/15/2006 312,465
23
WELLS FARGO ADVANTAGE SPECIALTY FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SPECIALIZED TECHNOLOGY FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 162,466 DEER VALLEY FUNDING LLC 4.78% 05/03/2006 $ 162,422
474,899 DEER VALLEY FUNDING LLC 4.84 05/08/2006 474,458
24,457 DEER VALLEY FUNDING LLC 4.89 05/15/2006 24,411
199,758 DEER VALLEY FUNDING LLC 4.92 05/16/2006 199,352
1,554,625 DEUTSCHE BANK REPURCHASE AGREEMENT
(MATURITY VALUE $1,554,833) 4.82 05/01/2006 1,554,625
19,996 EDISON ASSET SECURITIZATION LLC 4.84 05/15/2006 19,958
24,995 EIFFEL FUNDING LLC 4.80 05/01/2006 24,995
450,167 EUREKA SECURITIZATION INCORPORATED 4.86 05/16/2006 449,253
749,841 GEMINI SECURITIZATION INCORPORATED 4.79 05/01/2006 749,841
18,746 GEMINI SECURITIZATION INCORPORATED 4.88 05/24/2006 18,687
562,068 GEORGE STREET FINANCE LLC 4.80 05/02/2006 561,995
299,936 GOLDMAN SACHS GROUP INCORPORATED+/- 4.97 06/30/2006 299,936
24,995 HARRIER FINANCE FUNDING LLC+/- 4.98 05/15/2007 25,000
43,741 HBOS TREASURY SERVICES PLC+/- 5.12 01/12/2007 43,784
199,958 ING USA ANNUITY & LIFE INSURANCE+/- 5.03 06/06/2006 199,958
16,247 K2 (USA) LLC 4.61 05/02/2006 16,244
57,800 K2 (USA) LLC SERIES MTN+/- 4.90 07/24/2006 57,812
187,460 KAUPTHING BANK HF+/- 4.98 03/20/2007 187,175
49,989 KLIO II FUNDING CORPORATION 4.96 06/30/2006 49,576
417,774 KLIO III FUNDING CORPORATION 4.93 05/22/2006 416,579
600,723 KLIO III FUNDING CORPORATION 4.96 06/30/2006 595,755
12,497 LEXINGTON PARKER CAPITAL CORPORATION 4.60 05/02/2006 12,496
2,002,963 LEXINGTON PARKER CAPITAL CORPORATION 4.85 05/05/2006 2,001,902
47,440 LEXINGTON PARKER CAPITAL CORPORATION 4.68 05/10/2006 47,382
21,246 LEXINGTON PARKER CAPITAL CORPORATION 4.96 06/20/2006 21,099
312,434 LIBERTY LIGHT US CAPITAL SERIES MTN+/- 4.84 05/26/2006 312,440
24,995 LINKS FINANCE LLC SERIES MTN1+/- 4.82 09/12/2006 24,995
287,439 LIQUID FUNDING LIMITED+/- 4.88 08/14/2006 287,439
187,460 LIQUID FUNDING LIMITED+/- 4.79 12/01/2006 187,460
74,984 LIQUID FUNDING LIMITED SERIES MTN+/- 4.85 02/20/2007 74,986
124,974 MBIA GLOBAL FUNDING LLC+/- 4.92 02/20/2007 124,966
627,992 MERRILL LYNCH & COMPANY SERIES MTN+/- 5.28 10/27/2006 628,494
374,921 MORGAN STANLEY+/- 4.94 10/10/2006 374,921
57,800 MORGAN STANLEY SERIES EXL+/- 4.93 08/13/2010 57,814
282,440 MORTGAGE INTEREST NET TRUST 4.76 05/03/2006 282,364
12,497 NATIONWIDE BUILDING SOC+/- 5.20 07/21/2006 12,502
55,713 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.91 06/26/2006 55,283
20,058 NORDEA NORTH AMERICA INCORPORATED 4.80 05/03/2006 20,053
39,992 NORDEA NORTH AMERICA INCORPORATED 4.81 05/09/2006 39,948
23,745 NORDEA NORTH AMERICA INCORPORATED 4.87 05/15/2006 23,700
37,430 NORTH SEA FUNDING LLC 5.00 06/26/2006 37,141
624,868 NORTHERN ROCK PLC+/- 4.83 02/05/2007 624,899
50,552 RACERS TRUST 2004-6-MM+/- 4.95 05/22/2006 50,559
235,538 REGENCY MARKETS LLC 5.06 07/20/2006 232,930
24
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SPECIALTY FUNDS
- --------------------------------------------------------------------------------
SPECIALIZED TECHNOLOGY FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 12,497 SCALDIS CAPITAL LIMITED 4.91% 06/15/2006 $ 12,420
623,555 SEDNA FINANCE INCORPORATED 4.86 05/02/2006 623,474
249,947 SLM CORPORATION+/- 4.86 05/04/2007 249,885
99,979 SWEDBANK (FORENINGS SPARBANKEN) 4.81 05/09/2006 99,871
62,487 SWEDISH NATIONAL HOUSING FINANCE (SBAB) 5.06 07/18/2006 61,813
49,989 TANGO FINANCE CORPORATION 4.94 06/21/2006 49,638
144,507 TANGO FINANCE CORPORATION SERIES MTN+/- 4.90 10/25/2006 144,555
377,783 THUNDER BAY FUNDING INCORPORATED 5.00 06/16/2006 375,387
445,081 TIERRA ALTA FUNDING I LIMITED 4.82 05/10/2006 444,538
644,139 TIERRA ALTA FUNDING I LIMITED 4.83 05/11/2006 643,269
72,247 TRAVELERS INSURANCE COMPANY+/- 4.92 02/09/2007 72,246
312,434 UNICREDITO ITALIANO SERIES LIB+/- 4.86 03/09/2007 312,428
474,899 US BANK NA SERIES BKNT+/- 5.13 07/28/2006 474,923
37,492 VERSAILLES CDS LLC 4.87 05/15/2006 37,421
312,434 VERSAILLES CDS LLC 4.99 06/20/2006 310,281
12,497 VERSAILLES CDS LLC 5.00 06/21/2006 12,409
131,997 VERSAILLES CDS LLC 5.04 06/28/2006 130,942
62,487 WHISTLEJACKET CAPITAL LIMITED 4.91 05/15/2006 62,369
124,974 WHISTLEJACKET CAPITAL LIMITED+/- 4.80 06/09/2006 124,974
201,895 WHISTLEJACKET CAPITAL LIMITED 5.02 06/26/2006 200,336
62,487 WHITE PINE FINANCE LLC 4.80 05/05/2006 62,454
51,014 WHITE PINE FINANCE LLC 4.83 05/25/2006 50,846
38,392 WHITE PINE FINANCE LLC 4.91 06/20/2006 38,127
329,793 WHITE PINE FINANCE LLC 4.92 06/22/2006 327,431
299,936 WHITE PINE FINANCE LLC SERIES MTN1+/- 4.84 06/12/2006 299,948
312,434 WHITE PINE FINANCE LLC SERIES MTN1+/- 4.85 07/17/2006 312,434
39,812,112
-------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $41,287,030) 41,287,030
-------------
SHARES
RIGHTS - 0.00%
30,500 SEAGATE TECHNOLOGY RIGHTS+(a) 0
TOTAL RIGHTS (COST $0) 0
-------------
WARRANTS - 1.57%
143,600 MERRILL CW10 HON HAI PRECIS+ 974,398
78,780 MERRILL CW11 MOTECH INDUSTRY+ 2,185,176
1,161,670 MERRILL LYNCH POWCHIP+ 786,566
TOTAL WARRANTS (COST $3,402,302) 3,946,140
-------------
25
WELLS FARGO ADVANTAGE SPECIALTY FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SPECIALIZED TECHNOLOGY FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
SHORT-TERM INVESTMENTS - 4.55%
MUTUAL FUND - 4.55%
11,448,185 WELLS FARGO ADVANTAGE MONEY MARKET TRUST++ $ 11,448,185
TOTAL SHORT-TERM INVESTMENTS (COST $11,448,185) 11,448,185
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $263,427,913)* 115.38% $290,143,163
OTHER ASSETS AND LIABILITIES, NET (15.38) (38,677,939)
------ ------------
TOTAL NET ASSETS 100.00% $251,465,224
====== ============
+ NON-INCOME EARNING SECURITIES.
<< ALL OR A PORTION OF THIS SECURITY IS ON LOAN.
+/- VARIABLE RATE INVESTMENTS.
(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 $11,448,185.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
CONTRACTS STRIKE PRICE EXPIRATION DATE
WRITTEN OPTIONS - (1.31%)
(700) AUTODESK INCORPORATED PUT+ $ 37.50 10/21/2006 (133,000)
(475) COGNIZANT TECHNOLOGY SOLUTIONS A CALL+ 60.00 07/22/2006 (294,500)
(3,359) COMVERSE TECHNOLOGY INCORPORATED PUT+ 22.50 01/19/2008 (940,520)
(590) CTRIP.COM INTERNATIONAL ADR CALL+ 40.00 06/17/2006 (336,300)
(983) EBAY INCORPORATED PUT+ 37.50 10/21/2006 (409,911)
(82) GOOGLE INCORPORATED CLASS A CALL+ 460.00 06/17/2006 (73,800)
(238) GOOGLE INCORPORATED CLASS A PUT+ 390.00 09/16/2006 (564,060)
(905) JUNIPER NETWORKS INCORPORATED PUT+ 18.00 10/21/2006 (149,325)
(808) NETWORK APPLIANCE INCORPORATED CALL+ 37.50 06/17/2006 (141,400)
(257) RESEARCH IN MOTION LIMITED CALL+ 90.00 09/16/2006 (82,240)
(406) VALERO ENERGY CORPORATION CALL+ 80.00 01/20/2007 (174,580)
TOTAL WRITTEN OPTIONS (PREMIUMS RECEIVED $(2,896,950) (3,299,636)
----------
SHARES SECURITY NAME
SCHEDULE OF SECURITIES SOLD SHORT - (2.22%)
(52,700) BROADCOM CORPORATION CLASS A+ (2,166,497)
(44,800) ENERGY SELECT SECTOR+ (2,564,352)
(46,090) JUNIPER NETWORKS INCORPORATED+ (851,743)
TOTAL SHORT SALES (TOTAL PROCEEDS $(5,549,365) (5,582,592)
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
26
STATEMENTS OF ASSETS AND LIABILITIES--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SPECIALTY FUNDS
- --------------------------------------------------------------------------------
SPECIALIZED SPECIALIZED SPECIALIZED
FINANCIAL HEALTH TECHNOLOGY
SERVICES FUND SCIENCES FUND FUND
- ----------------------------------------------------------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE ................................................ $ 376,328,895 $ 22,563,894 $ 237,407,948
COLLATERAL FOR SECURITIES LOANED (NOTE 2) ..................................... 106,554,682 3,641,294 41,287,030
INVESTMENTS IN AFFILIATES ..................................................... 0 521,803 11,448,185
-------------- ------------- -------------
TOTAL INVESTMENTS AT MARKET VALUE (SEE COST BELOW) .............................. 482,883,577 26,726,991 290,143,163
-------------- ------------- -------------
CASH 51,541 152,232 8,085,638
RECEIVABLE FOR FUND SHARES ISSUED ............................................. 886 641 29,988
RECEIVABLE FOR INVESTMENTS SOLD ............................................... 2,604,568 2,800,892 11,008,637
RECEIVABLES FOR DIVIDENDS AND INTEREST ........................................ 628,848 35,043 50,656
RECEIVABLE FROM INVESTMENT ADVISOR AND AFFILIATES ............................. 0 36,298 0
PREPAID EXPENSES AND OTHER ASSETS ............................................. 0 0 13,854
-------------- ------------- -------------
TOTAL ASSETS .................................................................... 486,169,420 29,752,097 309,331,936
-------------- ------------- -------------
LIABILITIES
OPTION WRITTEN, AT VALUE ...................................................... 0 41,210 3,299,636
SECURITIES SOLD SHORT, AT FAIR VALUE .......................................... 0 0 5,582,592
PAYABLE FOR FUND SHARES REDEEMED .............................................. 248,929 39,835 178,281
PAYABLE FOR INVESTMENTS PURCHASED ............................................. 1,851,264 2,187,286 7,236,939
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) ......................... 277,727 0 206,378
PAYABLE TO THE TRUSTEES AND SHAREHOLDER SERVICING AGENT ....................... 85,669 14,400 75,856
PAYABLE FOR SECURITIES LOANED (NOTE 2) ........................................ 106,554,682 3,641,294 41,287,030
ACCRUED EXPENSES AND OTHER LIABILITIES ........................................ 84,345 20,169 0
-------------- ------------- -------------
TOTAL LIABILITIES ............................................................... 109,102,616 5,944,194 57,866,712
-------------- ------------- -------------
TOTAL NET ASSETS ................................................................ $ 377,066,804 $ 23,807,903 $ 251,465,224
============== ============= =============
NET ASSETS CONSIST OF:
- ----------------------------------------------------------------------------------------------------------------------------------
PAID-IN CAPITAL ............................................................... $ 264,254,332 $22,953,131 $ 401,224,895
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) .................................... 506,691 (122,777) (1,871,874)
UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON INVESTMENTS ......................... 14,683,303 830,999 (174,168,051)
NET UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS, FOREIGN CURRENCIES
AND TRANSLATION OF ASSETS AND LIABILITIES DENOMINATED IN FOREIGN
CURRENCIES .................................................................. 97,622,478 155,990 26,716,167
NET UNREALIZED APPRECIATION (DEPRECIATION) OF OPTIONS, SWAP AGREEMENTS, AND
SHORT SALES ................................................................. 0 (9,440) (435,913)
-------------- ------------- -------------
TOTAL NET ASSETS ................................................................ $ 377,066,804 $ 23,807,903 $ 251,465,224
-------------- ------------- -------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE (1)
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS - CLASS A .......................................................... $ 371,515,386 $ 9,740,819 $ 123,792,653
SHARES OUTSTANDING - CLASS A .................................................. 91,819,418 878,081 21,424,985
NET ASSET VALUE PER SHARE - CLASS A ........................................... $ 4.05 $ 11.09 $ 5.78
MAXIMUM OFFERING PRICE PER SHARE - CLASS A (2) ................................ $ 4.30 $ 11.77 $ 6.13
NET ASSETS - CLASS B .......................................................... $ 4,338,511 $ 12,998,096 $ 28,833,431
SHARES OUTSTANDING - CLASS B .................................................. 1,075,352 1,219,672 5,206,643
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS B ........................ $ 4.03 $ 10.66 $ 5.54
NET ASSETS - CLASS C .......................................................... $ 1,212,907 $ 1,068,988 $ 6,029,418
SHARES OUTSTANDING - CLASS C .................................................. 302,429 100,193 1,091,337
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS C ........................ $ 4.01 $ 10.67 $ 5.52
NET ASSETS - CLASS Z .......................................................... N/A N/A $ 92,809,722
SHARES OUTSTANDING - CLASS Z .................................................. N/A N/A 16,091,251
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS Z ........................ N/A N/A $ 5.77
-------------- ------------- -------------
INVESTMENTS AT COST (NOTE 3) .................................................... $ 385,261,099 $ 26,570,726 $ 263,427,913
-------------- ------------- -------------
SECURITIES ON LOAN, AT MARKET VALUE (NOTE 2) .................................... $ 104,421,095 $ 3,518,474 $ 39,070,728
============== ============= =============
PROCEEDS FOR SECURITIES SOLD SHORT (NOTE 2) ..................................... $ 0 $ 0 $ 5,549,365
============== ============= =============
PREMIUMS RECEIVED ON WRITTEN OPTIONS (NOTE 2) ................................... $ 0 $ 31,770 $ 2,896,950
============== ============= =============
(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
INVESTMENT OF $50,000 OR MORE, THE OFFERING PRICE IS REDUCED.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
27
WELLS FARGO ADVANTAGE SPECIALTY FUNDS
STATEMENTS OF OPERATIONS--
FOR THE SIX MONTHS ENDED APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SPECIALIZED SPECIALIZED SPECIALIZED
FINANCIAL HEALTH TECHNOLOGY
SERVICES FUND SCIENCES FUND FUND
- ----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS (1) ................................................................ $ 5,254,544 $ 138,315 $ 207,854
INTEREST ..................................................................... 41,327 0 117,819
INCOME FROM AFFILIATED SECURITIES ............................................ 0 12,777 128,051
SECURITIES LENDING INCOME, NET ............................................... 14,331 764 59,618
-------------- ------------- -------------
TOTAL INVESTMENT INCOME ......................................................... 5,310,202 151,856 513,342
-------------- ------------- -------------
EXPENSES
ADVISORY FEES ................................................................ 1,782,290 122,946 1,312,888
ADMINISTRATION FEES
FUND LEVEL ................................................................. 93,805 6,471 62,519
CLASS A .................................................................... 517,061 14,743 169,794
CLASS B .................................................................... 6,581 19,738 41,025
CLASS C .................................................................... 1,664 1,755 8,390
CLASS Z .................................................................... N/A N/A 210,366
CUSTODY FEES ................................................................. 37,522 9,059 87,526
SHAREHOLDER SERVICING FEES ................................................... 469,024 32,354 312,592
ACCOUNTING FEES .............................................................. 18,735 11,021 18,889
DISTRIBUTION FEES (NOTE 3)
CLASS B .................................................................... 17,629 52,871 109,888
CLASS C .................................................................... 4,457 4,701 22,474
PROFESSIONAL FEES ............................................................ 16,684 12,001 10,599
REGISTRATION FEES ............................................................ 2,886 37,400 18,839
SHAREHOLDER REPORTS .......................................................... 10,283 21,399 63,991
TRUSTEES' FEES ............................................................... 3,687 3,687 3,686
OTHER FEES AND EXPENSES 4,763 4,146 18,060
-------------- ------------- -------------
TOTAL EXPENSES .................................................................. 2,987,071 354,292 2,471,526
-------------- ------------- -------------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) ................................. (432,113) (83,100) (86,310)
NET EXPENSES ................................................................. 2,554,958 271,192 2,385,216
-------------- ------------- -------------
NET INVESTMENT INCOME (LOSS) .................................................... 2,755,244 (119,336) (1,871,874)
-------------- ------------- -------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- ----------------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION .............. 19,083,813 1,489,705 32,275,464
OPTIONS, SWAP AGREEMENTS AND SHORT SALE TRANSACTIONS ......................... 0 240,148 (5,088,622)
-------------- ------------- -------------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ....................................... 19,083,813 1,729,853 27,186,842
-------------- ------------- -------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION .............. 20,576,356 (1,065,427) 1,292,244
OPTIONS, SWAP AGREEMENTS AND SHORT SALE TRANSACTIONS ......................... 0 (4,320) (734,029)
-------------- ------------- -------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ............. 20,576,356 (1,069,747) 558,215
-------------- ------------- -------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS .......................... 39,660,169 660,106 27,745,057
-------------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ................. $ 42,415,413 $ 540,770 $25,873,183
============== ============= =============
(1) NET OF FOREIGN WITHHOLDING TAXES OF ....................................... $ 0 $ 4,825 $ 5,294
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
28
THIS PAGE IS INTENTIONALLY LEFT BLANK --
WELLS FARGO ADVANTAGE SPECIALTY FUNDS STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SPECIALIZED FINANCIAL SERVICES FUND
----------------------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE FOR THE
APRIL 30, 2006 PERIOD ENDED YEAR ENDED
(UNAUDITED) OCTOBER 31, 2005 SEPTEMBER 30, 2005
- -------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS .......................................... $ 375,715,422 $ 375,840,707 $ 493,651,523
OPERATIONS:
NET INVESTMENT INCOME (LOSS) .................................. 2,755,244 (23,989) 4,907,302
NET REALIZED GAIN (LOSS) ON INVESTMENTS ....................... 19,083,813 (2,389,203) 16,865,924
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS ................................................ 20,576,356 12,014,608 1,115,269
---------------- ---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS... 42,415,413 9,601,416 22,888,495
---------------- ---------------- ------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A .................................................... (2,236,160) 0 (4,881,244)
CLASS B .................................................... (9,557) 0 (11,451)
CLASS C .................................................... (2,836) 0 (4,331)
CLASS Z .................................................... N/A N/A N/A
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A .................................................... (15,770,015) 0 (34,065,237)
CLASS B .................................................... (207,815) 0 (683,262)
CLASS C .................................................... (50,820) 0 (137,845)
CLASS Z .................................................... N/A N/A N/A
---------------- ---------------- ------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS .............................. (18,277,203) 0 (39,783,370)
---------------- ---------------- ------------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A ........................... 5,357,185 530,146 13,717,285
REINVESTMENT OF DISTRIBUTIONS - CLASS A ....................... 16,233,651 0 34,900,891
COST OF SHARES REDEEMED - CLASS A ............................. (43,234,329) (10,007,200) (143,861,887)
---------------- ---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - CLASS A .................................. (21,643,493) (9,477,054) (95,243,711)
---------------- ---------------- ------------------
PROCEEDS FROM SHARES SOLD - CLASS B ........................... 343,968 13,954 452,998
REINVESTMENT OF DISTRIBUTIONS - CLASS B ....................... 200,446 0 628,128
COST OF SHARES REDEEMED - CLASS B ............................. (1,622,343) (246,622) (6,151,286)
---------------- ---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - CLASS B .................................. (1,077,929) (232,668) (5,070,160)
---------------- ---------------- ------------------
PROCEEDS FROM SHARES SOLD - CLASS C ........................... 26,994 979 100,751
REINVESTMENT OF DISTRIBUTIONS - CLASS C ....................... 46,457 0 114,160
COST OF SHARES REDEEMED - CLASS C ............................. (138,857) (17,958) (816,981)
---------------- ---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - CLASS C .................................. (65,406) (16,979) (602,070)
---------------- ---------------- ------------------
PROCEEDS FROM SHARES SOLD - CLASS Z ........................... N/A N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS Z ....................... N/A N/A N/A
COST OF SHARES REDEEMED - CLASS Z ............................. N/A N/A N/A
---------------- ---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - CLASS Z .................................. N/A N/A N/A
---------------- ---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - TOTAL (22,786,828) (9,726,701) (100,915,941)
---------------- ---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS ............................ 1,351,382 (125,285) (117,810,816)
================ ================ ==================
ENDING NET ASSETS ................................................ $ 377,066,804 $ 375,715,422 $ 375,840,707
================ ================ ==================
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
30
STATEMENTS OF CHANGES IN NET ASSETS WELLS FARGO ADVANTAGE SPECIALTY FUNDS
- --------------------------------------------------------------------------------
SPECIALIZED HEALTH SCIENCES FUND
-----------------------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE FOR THE
APRIL 30, 2006 PERIOD ENDED YEAR ENDED
(UNAUDITED) OCTOBER 31, 2005 SEPTEMBER 30, 2005
- ----------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ...................................... $ 26,644,657 $ 27,631,764 $ 32,279,696
OPERATIONS:
NET INVESTMENT INCOME (LOSS) .............................. (119,336) (29,461) (258,962)
NET REALIZED GAIN (LOSS) ON INVESTMENTS ................... 1,729,853 (193,488) 753,428
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS ............................................ (1,069,747) (175,647) 1,811,718
---------------- ----------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ................................................ 540,770 (398,596) 2,306,184
---------------- ----------------- ------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ................................................ 0 0 (211)
CLASS B ................................................ 0 0 0
CLASS C ................................................ 0 0 0
CLASS Z ................................................ N/A N/A N/A
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A ................................................ (292,187) 0 (26,495)
CLASS B ................................................ (405,407) 0 (36,166)
CLASS C ................................................ (38,466) 0 (4,769)
CLASS Z ................................................ N/A N/A N/A
---------------- ----------------- ------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS .......................... (736,060) 0 (67,641)
---------------- ----------------- ------------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A ....................... 516,738 16,285 2,133,288
REINVESTMENT OF DISTRIBUTIONS - CLASS A ................... 280,054 0 25,169
COST OF SHARES REDEEMED - CLASS A ......................... (1,786,742) (292,429) (4,789,248)
---------------- ----------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - CLASS A .............................. (989,950) (276,144) (2,630,791)
---------------- ----------------- ------------------
PROCEEDS FROM SHARES SOLD - CLASS B ....................... 180,767 33,258 283,381
REINVESTMENT OF DISTRIBUTIONS - CLASS B ................... 392,381 0 36,256
COST OF SHARES REDEEMED - CLASS B ......................... (1,887,342) (281,304) (3,682,753)
---------------- ----------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - CLASS B .............................. (1,314,194) (248,046) (3,363,116)
---------------- ----------------- ------------------
PROCEEDS FROM SHARES SOLD - CLASS C ....................... 20,007 6,244 66,973
REINVESTMENT OF DISTRIBUTIONS - CLASS C ................... 35,974 0 4,198
COST OF SHARES REDEEMED - CLASS C ......................... (393,301) (70,565) (963,739)
---------------- ----------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - CLASS C .............................. (337,320) (64,321) (892,568)
---------------- ----------------- ------------------
PROCEEDS FROM SHARES SOLD - CLASS Z ....................... N/A N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS Z ................... N/A N/A N/A
COST OF SHARES REDEEMED - CLASS Z ......................... N/A N/A N/A
---------------- ----------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - CLASS Z .............................. N/A N/A N/A
---------------- ----------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - TOTAL ................................ (2,641,464) (588,511) (6,886,475)
---------------- ----------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS ........................ (2,836,754) (987,107) (4,647,932)
================ ================= ==================
ENDING NET ASSETS ............................................ $ 23,807,903 $ 26,644,657 $ 27,631,764
================ ================= ==================
SPECIALIZED TECHNOLOGY FUND
-----------------------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE FOR THE
APRIL 30, 2006 PERIOD ENDED YEAR ENDED
(UNAUDITED) OCTOBER 31, 2005 SEPTEMBER 30, 2005
- ----------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ...................................... $ 239,938,252 $ 241,352,725 $ 138,469,918
OPERATIONS:
NET INVESTMENT INCOME (LOSS) .............................. (1,871,874) (270,620) (2,811,644)
NET REALIZED GAIN (LOSS) ON INVESTMENTS ................... 27,186,842 5,551,604 34,235,804
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS ............................................ 558,215 (5,830,455) 20,699,726
----------------- ---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ................................................ 25,873,183 (549,471) 52,123,886
----------------- ---------------- ------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ................................................ 0 0 0
CLASS B ................................................ 0 0 0
CLASS C ................................................ 0 0 0
CLASS Z ................................................ 0 0 0
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A ................................................ 0 0 0
CLASS B ................................................ 0 0 0
CLASS C ................................................ 0 0 0
CLASS Z ................................................ 0 0 0
----------------- ---------------- ------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS .......................... 0 0 0
----------------- ---------------- ------------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A ....................... 16,932,453 3,893,429 31,248,260
REINVESTMENT OF DISTRIBUTIONS - CLASS A ................... N/A 0 0
COST OF SHARES REDEEMED - CLASS A ......................... (19,913,249) (3,637,512) (46,763,848)
----------------- ---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - CLASS A ... .......................... (2,980,796) 255,917 (15,515,588)
----------------- ---------------- ------------------
PROCEEDS FROM SHARES SOLD - CLASS B ....................... 424,126 31,678 845,432
REINVESTMENT OF DISTRIBUTIONS - CLASS B ................... 7,247 0 1,187
COST OF SHARES REDEEMED - CLASS B ......................... (3,259,351) (448,946) (6,895,633)
----------------- ---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - CLASS B ... .......................... (2,827,978) (417,268) (6,049,014)
----------------- ---------------- ------------------
PROCEEDS FROM SHARES SOLD - CLASS C ....................... 375,801 80,014 740,354
REINVESTMENT OF DISTRIBUTIONS - CLASS C ................... 0 0 0
COST OF SHARES REDEEMED - CLASS C ......................... (652,936) (61,537) (2,118,237)
----------------- ---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - CLASS C .............................. (277,135) 18,477 (1,377,883)
----------------- ---------------- ------------------
PROCEEDS FROM SHARES SOLD - CLASS Z ....................... 2,857,319 472,752 86,304,568
REINVESTMENT OF DISTRIBUTIONS - CLASS Z ................... 718 0 0
COST OF SHARES REDEEMED - CLASS Z ......................... (11,118,339) (1,194,880) (12,603,162)
----------------- ---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - CLASS Z .............................. (8,260,302) (722,128) 73,701,406
----------------- ---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - TOTAL ................................ (14,346,211) (865,002) 50,758,921
----------------- ---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS ........................ 11,526,972 (1,414,473) 102,882,807
================= ================ ==================
ENDING NET ASSETS ............................................ $ 251,465,224 $ 239,938,252 $ 241,352,725
================= ================ ==================
31
WELLS FARGO ADVANTAGE SPECIALTY FUNDS STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SPECIALIZED FINANCIAL SERVICES FUND
----------------------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE FOR THE
APRIL 30, 2006 PERIOD ENDED YEAR ENDED
(UNAUDITED) OCTOBER 31, 2005 SEPTEMBER 30, 2005
- -----------------------------------------------------------------------------------------------------------------------------------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A ............................................. 1,383,734 145,785 3,705,906
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS A .......... 4,260,767 0 9,385,092
SHARES REDEEMED - CLASS A ......................................... (11,068,564) (2,736,987) (38,782,910)
---------------- ---------------- ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A .............. (5,424,063) (2,591,202) (25,691,912)
---------------- ---------------- ------------------
SHARES SOLD - CLASS B ............................................. 87,276 3,830 123,200
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS B .......... 52,822 0 169,351
SHARES REDEEMED - CLASS B ......................................... (414,967) (67,792) (1,658,553)
---------------- ---------------- ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B .............. (274,869) (63,962) (1,366,002)
---------------- ---------------- ------------------
SHARES SOLD - CLASS C ............................................. 7,032 268 27,395
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS C .......... 12,307 0 30,951
SHARES REDEEMED - CLASS C ......................................... (36,182) (4,933) (222,980)
---------------- ---------------- ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C .............. (16,843) (4,665) (164,634)
---------------- ---------------- ------------------
SHARES SOLD - CLASS Z ............................................. N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS Z .......... N/A N/A N/A
SHARES REDEEMED - CLASS Z ......................................... N/A N/A N/A
---------------- ---------------- ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS Z .............. N/A N/A N/A
---------------- ---------------- ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM CAPITAL
SHARE TRANSACTIONS ................................................ (5,715,775) (2,659,829) (27,222,548)
---------------- ---------------- ------------------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ......... $ 506,691 $ 0 $ 0
================ ================ ==================
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
32
STATEMENTS OF CHANGES IN NET ASSETS WELLS FARGO ADVANTAGE SPECIALTY FUNDS
- --------------------------------------------------------------------------------
SPECIALIZED HEALTH SCIENCES FUND
----------------------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE FOR THE
APRIL 30, 2006 PERIOD ENDED YEAR ENDED
(UNAUDITED) OCTOBER 31, 2005 SEPTEMBER 30, 2005
- -------------------------------------------------------------------------------------------------------------------------------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A ......................................... 45,058 1,443 194,302
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS A ...... 24,982 0 2,269
SHARES REDEEMED - CLASS A ..................................... (156,086) (26,143) (436,952)
------------ ---------------- ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A .......... (86,046) (24,700) (240,381)
------------ ---------------- ------------------
SHARES SOLD - CLASS B ......................................... 16,492 3,082 26,728
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS B ...... 36,332 0 3,372
SHARES REDEEMED - CLASS B ..................................... (171,185) (26,029) (348,003)
------------ ---------------- ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B .......... (118,361) (22,947) (317,903)
------------ ---------------- ------------------
SHARES SOLD - CLASS C ......................................... 1,805 576 6,238
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS C ...... 3,328 0 390
SHARES REDEEMED - CLASS C ..................................... (35,706) (6,519) (89,913)
------------ ---------------- ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C .......... (30,573) (5,943) (83,285)
------------ ---------------- ------------------
SHARES SOLD - CLASS Z ......................................... N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS Z ...... N/A N/A N/A
SHARES REDEEMED - CLASS Z ..................................... N/A N/A N/A
------------ ---------------- ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS Z .......... N/A N/A N/A
------------ ---------------- ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM
CAPITAL SHARE TRANSACTIONS .................................... (234,980) (53,590) (641,569)
------------ ---------------- ------------------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ..... $ (122,777) $ (3,441) $ 0
============ ================ ==================
SPECIALIZED TECHNOLOGY FUND
------------------------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE FOR THE
APRIL 30, 2006 PERIOD ENDED YEAR ENDED
(UNAUDITED) OCTOBER 31, 2005 SEPTEMBER 30, 2005
- ---------------------------------------------------------------------------------------------------------------------------------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A ........................................ 2,997,618 762,539 6,667,756
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS A ..... 0 0 0
SHARES REDEEMED - CLASS A .................................... (3,537,639) (715,144) (9,931,637)
------------------- ---------------- ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A ......... (540,021) 47,395 (3,263,881)
------------------- ---------------- ------------------
SHARES SOLD - CLASS B ........................................ 78,026 6,516 186,215
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS B ..... 1,357 0 274
SHARES REDEEMED - CLASS B .................................... (603,914) (92,358) (1,519,977)
------------------- ---------------- ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B ......... (524,531) (85,842) (1,333,488)
------------------- ---------------- ------------------
SHARES SOLD - CLASS C ........................................ 70,172 16,276 161,873
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS C ..... 0 0 0
SHARES REDEEMED - CLASS C .................................... (122,581) (12,749) (468,435)
------------------- ---------------- ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C ......... (52,409) 3,527 (306,562)
------------------- ---------------- ------------------
SHARES SOLD - CLASS Z ........................................ 510,451 93,059 21,598,387
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS Z ..... 123 0 0
SHARES REDEEMED - CLASS Z .................................... (1,984,023) (237,813) (3,888,934)
------------------- ---------------- ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS Z ......... (1,473,448) (144,754) 17,709,453
------------------- ---------------- ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM
CAPITAL SHARE TRANSACTIONS ................................... (2,590,409) (179,674) 12,805,522
------------------- ---------------- ------------------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) .... $ (1,871,874) $ 0 $ 0
=================== ================ ==================
33
WELLS FARGO ADVANTAGE SPECIALTY 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
- --------------------------------------------------------------------------------------------------------------------------
SPECIALIZED FINANCIAL SERVICES FUND
- --------------------------------------------------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. $ 3.80 0.01 0.41 0.00 (0.17)
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .......... $ 3.70 0.00 0.10 0.00 0.00
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... $ 3.83 0.04 0.16 (0.04) (0.29)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ........... $ 4.26 0.03 0.42 (0.03) (0.85)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... $ 3.71 0.03 0.56 (0.04) 0.00
JANUARY 1, 2002 TO SEPTEMBER 30, 2002 ........... $ 5.38 0.04 (0.71) (0.04) (0.96)
JANUARY 1, 2001 TO DECEMBER 31, 2001 ............ $ 5.80 0.06 (0.24) (0.06) (0.18)
JANUARY 1, 2000 TO DECEMBER 31, 2000 ............ $ 5.21 0.08 0.96 (0.08) (0.37)
CLASS B
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. $ 3.79 0.00 0.41 0.00 (0.17)
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .......... $ 3.69 0.00 0.10 0.00 0.00
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... $ 3.82 0.01 0.16 (0.01) (0.29)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ........... $ 4.25 (0.01) 0.43 0.00 (0.85)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... $ 3.71 0.00 0.56 (0.02) 0.00
JANUARY 1, 2002 TO SEPTEMBER 30, 2002 ........... $ 5.38 0.00 (0.71) 0.00 (0.96)
JANUARY 1, 2001 TO DECEMBER 31, 2001 ............ $ 5.80 0.01 (0.24) (0.01) (0.18)
JANUARY 1, 2000 TO DECEMBER 31, 2000 ............ $ 5.21 0.03 0.96 (0.03) (0.37)
CLASS C
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. $ 3.77 0.00 0.41 0.00 (0.17)
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .......... $ 3.67 0.00 0.10 0.00 0.00
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... $ 3.80 0.01 0.16 (0.01) (0.29)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ........... $ 4.23 (0.00) 0.42 0.00 (0.85)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... $ 3.69 0.00 0.56 (0.02) 0.00
JANUARY 1, 2002 TO SEPTEMBER 30, 2002 ........... $ 5.37 0.00 (0.72) 0.00 (0.96)
JANUARY 1, 2001 TO DECEMBER 31, 2001 ............ $ 5.79 0.01 (0.24) (0.01) (0.18)
JANUARY 1, 2000 TO DECEMBER 31, 2000 ............ $ 5.20 0.02 0.96 (0.02) (0.37)
SPECIALIZED HEALTH SCIENCES FUND
- ---------------------------------------------------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. $ 11.19 0.00 0.21 0.00 (0.31)
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .......... $ 11.35 0.00 (0.16) 0.00 0.00
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... $ 10.49 (0.01) 0.89 0.00 (0.02)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ........... $ 9.51 (0.09) 1.07 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... $ 7.81 (0.08) 1.78 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... $ 9.70 (0.10) (1.79) 0.00 0.00
APRIL 2, 2001(3) TO SEPTEMBER 30, 2001 .......... $ 10.00 (0.03) (0.27) 0.00 0.00
CLASS B
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. $ 10.80 (0.09) 0.26 0.00 (0.31)
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .......... $ 10.96 (0.02) (0.14) 0.00 0.00
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... $ 10.21 (0.16) 0.93 0.00 (0.02)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ........... $ 9.32 (0.18) 1.07 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... $ 7.72 (0.16) 1.76 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... $ 9.66 (0.17) (1.77) 0.00 0.00
APRIL 2, 2001(3) TO SEPTEMBER 30, 2001 .......... $ 10.00 (0.06) (0.28) 0.00 0.00
CLASS C
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. $ 10.81 (0.15) 0.32 0.00 (0.31)
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .......... $ 10.97 (0.02) (0.14) 0.00 0.00
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... $ 10.22 (0.23) 1.00 0.00 (0.02)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ........... $ 9.33 (0.19) 1.08 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... $ 7.73 (0.16) 1.76 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... $ 9.66 (0.18) (1.75) 0.00 0.00
APRIL 2, 2001(3) TO SEPTEMBER 30, 2001 .......... $ 10.00 (0.06) (0.28) 0.00 0.00
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
34
FINANCIAL HIGHLIGHTS WELLS FARGO ADVANTAGE SPECIALTY FUNDS
- --------------------------------------------------------------------------------
DISTRIBUTIONS ENDING RATIO TO AVERAGE NET ASSETS (ANNUALIZED)(1)
IN EXCESS OF NET ASSET ---------------------------------------------
REALIZED VALUE PER NET INVESTMENT GROSS EXPENSES NET
GAINS SHARE INCOME (LOSS) EXPENSES WAIVED EXPENSES
- --------------------------------------------------------------------------------------------------------------------------
SPECIALIZED FINANCIAL SERVICES FUND
- --------------------------------------------------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. 0.00 $ 4.05 1.48% 1.58% (0.23)% 1.35%
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .......... 0.00 $ 3.80 (0.07)% 1.58% (0.23)% 1.35%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... 0.00 $ 3.70 1.15% 1.58% (0.23)% 1.35%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ........... 0.00 $ 3.83 0.71% 1.60% (0.25)% 1.35%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 0.00 $ 4.26 0.82% 1.59% (0.24)% 1.35%
JANUARY 1, 2002 TO SEPTEMBER 30, 2002 ........... 0.00 $ 3.71 0.98% 1.63% (0.12)% 1.34%
JANUARY 1, 2001 TO DECEMBER 31, 2001 ............ 0.00 $ 5.38 1.15% 1.25% 0.00% 1.25%
JANUARY 1, 2000 TO DECEMBER 31, 2000 ............ 0.00 $ 5.80 1.48% 1.25% 0.00% 1.25%
CLASS B
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. 0.00 $ 4.03 0.74% 2.33% (0.23)% 2.10%
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .......... 0.00 $ 3.79 (0.81)% 2.33% (0.23)% 2.10%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... 0.00 $ 3.69 0.40% 2.33% (0.23)% 2.10%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ........... 0.00 $ 3.82 (0.02)% 2.35% (0.25)% 2.10%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 0.00 $ 4.25 0.07% 2.45% (0.35)% 2.10%
JANUARY 1, 2002 TO SEPTEMBER 30, 2002 ........... 0.00 $ 3.71 0.17% 2.48% (0.35)% 2.13%
JANUARY 1, 2001 TO DECEMBER 31, 2001 ............ 0.00 $ 5.38 0.16% 2.25% 0.00% 2.25%
JANUARY 1, 2000 TO DECEMBER 31, 2000 ............ 0.00 $ 5.80 0.50% 2.25% 0.00% 2.25%
CLASS C
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. 0.00 $ 4.01 0.74% 2.33% (0.23)% 2.10%
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .......... 0.00 $ 3.77 (0.82)% 2.33% (0.23)% 2.10%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... 0.00 $ 3.67 0.40% 2.33% (0.23)% 2.10%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ........... 0.00 $ 3.80 (0.04)% 2.35% (0.25)% 2.10%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 0.00 $ 4.23 0.07% 2.55% (0.45)% 2.10%
JANUARY 1, 2002 TO SEPTEMBER 30, 2002 ........... 0.00 $ 3.69 0.17% 2.74% (0.61)% 2.13%
JANUARY 1, 2001 TO DECEMBER 31, 2001 ............ 0.00 $ 5.37 0.16% 2.25% 0.00% 2.25%
JANUARY 1, 2000 TO DECEMBER 31, 2000 ............ 0.00 $ 5.79 0.50% 2.25% 0.00% 2.25%
SPECIALIZED HEALTH SCIENCES FUND
- ---------------------------------------------------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. 0.00 $ 11.09 (0.48)% 2.29% (0.64)% 1.65%
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .......... 0.00 $ 11.19 (0.93)% 2.00% (0.35)% 1.65%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... 0.00 $ 11.35 (0.41)% 1.96% (0.31)% 1.65%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ........... 0.00 $ 10.49 (0.87)% 1.84% (0.19)% 1.65%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 0.00 $ 9.51 (1.02)% 2.25% (0.60)% 1.65%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... 0.00 $ 7.81 (1.07)% 1.92% (0.27)% 1.65%
APRIL 2, 2001(3) TO SEPTEMBER 30, 2001 .......... 0.00 $ 9.70 (0.95)% 2.66% (1.01)% 1.65%
CLASS B
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. 0.00 $ 10.66 (1.23)% 3.04% (0.64)% 2.40%
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .......... 0.00 $ 10.80 (1.68)% 2.75% (0.35)% 2.40%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... 0.00 $ 10.96 (1.16)% 2.71% (0.31)% 2.40%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ........... 0.00 $ 10.21 (1.62)% 2.59% (0.19)% 2.40%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 0.00 $ 9.32 (1.77)% 3.06% (0.66)% 2.40%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... 0.00 $ 7.72 (1.82)% 2.87% (0.47)% 2.40%
APRIL 2, 2001(3) TO SEPTEMBER 30, 2001 .......... 0.00 $ 9.66 (1.67)% 3.46% (1.06)% 2.40%
CLASS C
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. 0.00 $ 10.67 (1.24)% 3.01% (0.61)% 2.40%
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .......... 0.00 $ 10.81 (1.68)% 2.75% (0.35)% 2.40%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... 0.00 $ 10.97 (1.16)% 2.71% (0.31)% 2.40%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ........... 0.00 $ 10.22 (1.63)% 2.59% (0.19)% 2.40%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 0.00 $ 9.33 (1.77)% 3.18% (0.78)% 2.40%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... 0.00 $ 7.73 (1.82)% 3.03% (0.63)% 2.40%
APRIL 2, 2001(3) TO SEPTEMBER 30, 2001 .......... 0.00 $ 9.66 (1.71)% 3.99% (1.59)% 2.40%
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE (000'S OMITTED)
- --------------------------------------------------------------------------------------------
SPECIALIZED FINANCIAL SERVICES FUND
- --------------------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. 11.93% 13%(5) $ 371,515
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .......... 2.70% 1%(5) $ 369,400
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... 5.34% 49% $ 369,432
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ........... 11.11% 221% $ 481,182
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 16.12% 356% $ 512,466
JANUARY 1, 2002 TO SEPTEMBER 30, 2002 ........... (12.95)% 187% $ 509,614
JANUARY 1, 2001 TO DECEMBER 31, 2001 ............ (2.90)% 11% $ 679,747
JANUARY 1, 2000 TO DECEMBER 31, 2000 ............ 21.00% 16% $ 780,213
CLASS B
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. 11.25% 13%(5) $ 4,339
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .......... 2.71% 1%(5) $ 5,113
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... 4.32% 49% $ 5,220
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ........... 10.41% 221% $ 10,612
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 15.21% 356% $ 20,465
JANUARY 1, 2002 TO SEPTEMBER 30, 2002 ........... (13.51)% 187% $ 20,986
JANUARY 1, 2001 TO DECEMBER 31, 2001 ............ (3.90)% 11% $ 24,732
JANUARY 1, 2000 TO DECEMBER 31, 2000 ............ 19.80% 16% $ 26,965
CLASS C
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. 11.34% 13%(5) $ 1,213
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .......... 2.72% 1%(5) $ 1,202
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... 4.46% 49% $ 1,189
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ........... 10.45% 221% $ 1,857
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 15.30% 356% $ 1,937
JANUARY 1, 2002 TO SEPTEMBER 30, 2002 ........... (13.77)% 187% $ 1,793
JANUARY 1, 2001 TO DECEMBER 31, 2001 ............ (3.90)% 11% $ 2,071
JANUARY 1, 2000 TO DECEMBER 31, 2000 ............ 19.80% 16% $ 2,139
SPECIALIZED HEALTH SCIENCES FUND
- --------------------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. 1.87% 196%(5) $ 9,741
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .......... (1.41)% 9%(5) $ 10,784
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... 8.42% 200% $ 11,219
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ........... 10.30% 266% $ 12,891
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 21.77% 150% $ 12,805
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... (19.48)% 138% $ 12,217
APRIL 2, 2001(3) TO SEPTEMBER 30, 2001 .......... (3.00)% 48% $ 12,331
CLASS B
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. 1.56% 196%(5) $ 12,998
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .......... (1.46)% 9%(5) $ 14,447
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... 7.57% 200% $ 14,913
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ........... 9.55% 266% $ 17,140
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 20.73% 150% $ 17,150
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... (20.08)% 138% $ 15,576
APRIL 2, 2001(3) TO SEPTEMBER 30, 2001 .......... (3.40)% 48% $ 16,320
CLASS C
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. 1.56% 196%(5) $ 1,069
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .......... (1.46)% 9%(5) $ 1,414
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... 7.56% 200% $ 1,500
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ........... 9.54% 266% $ 2,249
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 20.70% 150% $ 2,323
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... (19.98)% 138% $ 2,051
APRIL 2, 2001(3) TO SEPTEMBER 30, 2001 .......... (3.40)% 48% $ 2,277
35
WELLS FARGO ADVANTAGE SPECIALTY 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
- -----------------------------------------------------------------------------------------------------------------------------------
SPECIALIZED TECHNOLOGY FUND
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... $ 5.20 (0.04) 0.62 0.00 0.00
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .................. $ 5.21 (0.01) 0.00 0.00 0.00
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ................... $ 4.13 (0.07) 1.15 0.00 0.00
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ................... $ 3.93 (0.07) 0.27 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ................... $ 2.23 0.02 1.68 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ................... $ 3.02 (0.06) (0.73) 0.00 0.00
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ................... $ 10.11 (0.02) (7.07) 0.00 0.00
CLASS B
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... $ 5.00 (0.07) 0.61 0.00 0.00
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .................. $ 5.02 (0.01) (0.01) 0.00 0.00
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ................... $ 4.01 (0.12) 1.13 0.00 0.00
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ................... $ 3.85 (0.10) 0.26 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ................... $ 2.19 (0.06) 1.72 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ................... $ 3.00 (0.08) (0.73) 0.00 0.00
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ................... $ 10.11 (0.06) (7.05) 0.00 0.00
CLASS C
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... $ 4.99 (0.07) 0.60 0.00 0.00
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .................. $ 5.01 (0.01) (0.01) 0.00 0.00
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ................... $ 4.00 (0.13) 1.14 0.00 0.00
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ................... $ 3.84 (0.10) 0.26 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ................... $ 2.19 (0.06) 1.71 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ................... $ 3.00 (0.08) (0.73) 0.00 0.00
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ................... $ 10.11 (0.06) (7.05) 0.00 0.00
CLASS Z
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... $ 5.20 (0.04) 0.61 0.00 0.00
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .................. $ 5.21 (0.01) 0.00 0.00 0.00
APRIL 11, 2005(3) TO SEPTEMBER 30, 2005 ................. $ 4.57 (0.03) 0.67 0.00 0.00
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
36
FINANCIAL HIGHLIGHTS WELLS FARGO ADVANTAGE SPECIALTY FUNDS
- --------------------------------------------------------------------------------
DISTRIBUTIONS ENDING RATIO TO AVERAGE NET ASSETS (ANNUALIZED)(1)
IN EXCESS OF NET ASSET -----------------------------------------------
REALIZED VALUE PER NET INVESTMENT GROSS EXPENSES NET
GAINS SHARE INCOME (LOSS) EXPENSES WAIVED EXPENSES
- ------------------------------------------------------------------------------------------------------------------------------------
SPECIALIZED TECHNOLOGY FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .... 0.00 $ 5.78 (1.33)% 1.83% (0.08)% 1.75%
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 ............ 0.00 $ 5.20 (1.30)% 1.78% (0.03)% 1.75%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............. 0.00 $ 5.21 (1.33)% 1.80% (0.05)% 1.75%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............. 0.00 $ 4.13 (1.44)% 1.80% (0.05)% 1.75%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............. 0.00 $ 3.93 (1.45)% 1.98% (0.23)% 1.75%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............. 0.00 $ 2.23 (1.37)% 2.47% (0.72)% 1.75%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............. 0.00 $ 3.02 (0.47)% 2.00% (0.25)% 1.75%
CLASS B
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .... 0.00 $ 5.54 (2.08)% 2.58% (0.08)% 2.50%
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 ............ 0.00 $ 5.00 (2.05)% 2.53% (0.03)% 2.50%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............. 0.00 $ 5.02 (2.09)% 2.55% (0.05)% 2.50%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............. 0.00 $ 4.01 (2.19)% 2.55% (0.05)% 2.50%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............. 0.00 $ 3.85 (2.10)% 3.08% (0.58)% 2.50%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............. 0.00 $ 2.19 (2.12)% 3.46% (0.96)% 2.50%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............. 0.00 $ 3.00 (1.24)% 2.72% (0.22)% 2.50%
CLASS C
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .... 0.00 $ 5.52 (2.08)% 2.58% (0.08)% 2.50%
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 ............ 0.00 $ 4.99 (2.05)% 2.53% (0.03)% 2.50%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............. 0.00 $ 5.01 (2.09)% 2.55% (0.05)% 2.50%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............. 0.00 $ 4.00 (2.19)% 2.54% (0.04)% 2.50%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............. 0.00 $ 3.84 (2.10)% 2.91% (0.41)% 2.50%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............. 0.00 $ 2.19 (2.12)% 3.16% (0.66)% 2.50%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............. 0.00 $ 3.00 (1.22)% 2.66% (0.16)% 2.50%
CLASS Z
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .... 0.00 $ 5.77 (1.49)% 2.00% (0.10)% 1.90%
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 ............ 0.00 $ 5.20 (1.45)% 1.95% (0.05)% 1.90%
APRIL 11, 2005(3) TO SEPTEMBER 30, 2005 ........... 0.00 $ 5.21 (1.37)% 1.95% (0.05)% 1.90%
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE (000'S OMITTED)
- ---------------------------------------------------------------------------------------------------
SPECIALIZED TECHNOLOGY FUND
- ---------------------------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .... 11.15% 105%(5) $ 123,793
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 ............ (0.19)% 29%(5) $ 114,262
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............. 26.15% 270% $ 114,233
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............. 5.09% 262% $ 104,033
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............. 76.23% 276% $ 110,730
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............. (26.16)% 388% $ 13,559
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............. (70.13)% 773% $ 22,946
CLASS B
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .... 10.80% 105%(5) $ 28,833
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 ............ (0.40)% 29%(5) $ 28,680
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............. 25.19% 270% $ 29,180
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............. 4.16% 262% $ 28,648
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............. 75.80% 276% $ 31,758
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............. (27.00)% 388% $ 20,949
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............. (70.33)% 773% $ 34,218
CLASS C
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .... 10.82% 105%(5) $ 6,029
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 ............ (0.40)% 29%(5) $ 5,711
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............. 25.25% 270% $ 5,707
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............. 4.17% 262% $ 5,789
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............. 75.34% 276% $ 7,076
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............. (27.00)% 388% $ 4,295
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............. (70.33)% 773% $ 7,320
CLASS Z
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .... 10.96% 105%(5) $ 92,810
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 ............ (0.19)% 29%(5) $ 91,285
APRIL 11, 2005(3) TO SEPTEMBER 30, 2005 ........... 14.00% 270% $ 92,233
37
WELLS FARGO ADVANTAGE SPECIALTY 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) The Fund changed its fiscal year-end from September 30 to October 31.
(5) Portfolio Turnover rates presented for periods of less than one year are
not annualized.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
38
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
WELLS FARGO ADVANTAGE SPECIALTY 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
April 30, 2006, was comprised of 108 separate series (each, a "Fund",
collectively, the "Funds"). These financial statements present the Specialized
Financial Services Fund, Specialized Health Sciences Fund, and Specialized
Technology Fund.
Specialized Financial Services Fund is a diversified series of the Trust.
The Specialized Health Sciences Fund and the Specialized Technology Fund are
non-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") 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 TARGET FUND ACQUIRING FUND*
Strong Advisor Strong Wells Fargo Specialized Wells Fargo Advantage
FUND Technology Fund Technology 100 Fund Technology Fund Specialized Technology Fund
- -------------------------------------------------------------------------------------------------------------------------------
Shares:
- -------------------------------------------------------------------------------------------------------------------------------
CLASS A(1) 101,209 N/A 23,156,233 23,408,102
- -------------------------------------------------------------------------------------------------------------------------------
CLASS B 61,176 N/A 6,403,092 6,403,092
- -------------------------------------------------------------------------------------------------------------------------------
CLASS C 17,070 N/A 1,333,084 1,333,084
- -------------------------------------------------------------------------------------------------------------------------------
CLASS Z N/A N/A N/A 19,982,571
- -------------------------------------------------------------------------------------------------------------------------------
INVESTOR CLASS(2) N/A 21,063,747 N/A N/A
- -------------------------------------------------------------------------------------------------------------------------------
Net Assets:
- -------------------------------------------------------------------------------------------------------------------------------
CLASS A(1) $ 652,719 N/A $ 105,711,365 $ 106,861,184
- -------------------------------------------------------------------------------------------------------------------------------
CLASS B 388,934 N/A 28,235,865 28,235,865
- -------------------------------------------------------------------------------------------------------------------------------
CLASS C 108,166 N/A 5,870,967 5,870,967
- -------------------------------------------------------------------------------------------------------------------------------
CLASS Z N/A N/A N/A 91,223,166
- -------------------------------------------------------------------------------------------------------------------------------
INVESTOR CLASS(2) N/A $ 91,223,166 N/A N/A
- -------------------------------------------------------------------------------------------------------------------------------
Unrealized appreciation
(depreciation) $ 15,382 $ 6,691,307 $ 12,655,444 $ 19,362,133
- -------------------------------------------------------------------------------------------------------------------------------
Accumulated net gain (loss) $ (606,022) $ (244,133,328) $ (211,529,703) $(456,269,053)
* DESIGNATES THE ACCOUNTING SURVIVOR.
(1) EFFECTIVE AT THE CLOSE OF BUSINESS ON APRIL 8, 2005, CLASSES A, B AND C OF
THE STRONG ADVISOR TECHNOLOGY FUND MERGED INTO CLASS A OF THE WELLS FARGO
SPECIALIZED TECHNOLOGY FUND AND THEN THE FUND WAS RENAMED THE WELLS FARGO
ADVANTAGE SPECIALIZED TECHNOLOGY FUND.
(2) EFFECTIVE AT THE CLOSE OF BUSINESS ON APRIL 8, 2005, INVESTOR CLASS OF THE
STRONG TECHNOLOGY 100 FUND MERGED INTO CLASS Z OF THE WELLS FARGO ADVANTAGE
SPECIALIZED TECHNOLOGY 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.
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
39
WELLS FARGO ADVANTAGE SPECIALTY FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
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 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, with the exception of the Specialized Financial Services 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
40
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
WELLS FARGO ADVANTAGE SPECIALTY FUNDS
- --------------------------------------------------------------------------------
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 April 30, 2006.
At October 31, 2005, estimated net capital loss carryforwards, which are
available to offset future net realized capital gains, were:
Capital Loss
Fund Year Expires Carryforwards
- --------------------------------------------------------------------------------
SPECIALIZED FINANCIAL SERVICES FUND 2013 $ 2,389,203
- --------------------------------------------------------------------------------
SPECIALIZED HEALTH SCIENCES FUND 2013 494,421
- --------------------------------------------------------------------------------
SPECIALIZED TECHNOLOGY FUND 2006 3,831,373
2007 3,831,373
2008 126,179,032
2009 54,007,562
2010 10,167,420
2011 445,585
- --------------------------------------------------------------------------------
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.
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. At April 30,
2006, the Funds did not hold any forward foreign currency contracts.
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
April 30, 2006, the Funds did not hold any open futures contracts.
INVESTMENTS SOLD SHORT
Certain Funds may engage in short-selling to the extent permitted by the
Fund's investment policies in attempting to increase investment return. In a
short sale transaction, the Fund borrows a security which it then delivers to
settle a sale. The Fund is obligated to replace the security borrowed by
purchasing the security at current market value at a future date. The Fund will
incur a loss if the price of the security increases between the date of the
short sale and the date on which the Fund replaces the borrowed security. The
Fund realizes a gain if the price of the security declines between those dates.
Until the Fund replaces the borrowed security, it will maintain daily, a
segregated account with a broker and /or custodian, of cash and /or other liquid
securities sufficient to cover its short position. Dividends declared on
securities sold short are recorded as an expense on the ex-dividend date and
paid to the counterparty on the dividend pay date. Securities sold short at
April 30, 2006, if any, and their related market values and proceeds are set
forth in the Schedule of Investments Sold Short.
41
WELLS FARGO ADVANTAGE SPECIALTY FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS
The Fund(s) may invest in repurchase agreements and may participate in
pooled repurchase agreement transactions with other funds advised by Wells Fargo
Funds Management, LLC. The repurchase agreements must be fully collateralized
based on values that are marked to market daily. The collateral may be held by
an agent bank under a tri-party agreement. It is the custodian's responsibility
to value collateral daily and to take action to obtain additional collateral as
necessary to maintain market value equal to or greater than the resale price.
The repurchase agreements are collateralized by instruments such as U.S.
Treasury, federal agency, or high-grade corporate obligations. There could be
potential loss to a Fund in the event that such Fund is delayed or prevented
from exercising its rights to dispose of the collateral, including the risk of a
possible decline in the value of the underlying obligations during the period in
which a Fund seeks to assert its rights.
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 is remarked daily while collateral supporting
loans of U.S. Government securities is remarked back to 102% only if the given
collateral falls below 100% of the market value of the securities loaned 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. The value of the securities on loan and the value of the related
collateral at April 30, 2006, are shown on the Statements of Assets and
Liabilities.
WRITTEN OPTIONS
An option is a right to buy or sell a particular security at a specified
price within a limited period of time. The writer of the option, in return for a
premium received from the seller, has the obligation to sell (in the case of a
call option) or buy (in the case of a put option) the underlying security of the
contract. The premium received in cash from writing options is recorded as an
asset with an equal liability that is adjusted to reflect the option's value.
The premium received from writing options which expire is recorded as realized
gains. The premium received from writing options which are exercised or closed
is offset against the proceeds or amount paid on the closing transaction to
determine the realized gain or loss. If a put option is exercised, the premium
reduces the cost basis of the security or currency purchased. Options are valued
based on their quoted daily settlement prices.
Risks could arise from entering into written options transactions from the
potential inability of counterparties to meet the terms of their contracts, the
potential inability to enter into a closing transaction because of an illiquid
secondary market, and from unexpected movements in interest or exchange rates or
securities values.
Written options transactions during the period ended April 30, 2006, were
as follows:
SPECIALIZED HEALTH SCIENCES FUND
--------------------------------
Principal Amount of Contracts Premiums Received
- -----------------------------------------------------------------------------------------------
Call Options Written
- -----------------------------------------------------------------------------------------------
OPTIONS AT BEGINNING OF PERIOD 40 $ 5,280
- -----------------------------------------------------------------------------------------------
OPTIONS WRITTEN 2,847 414,948
- -----------------------------------------------------------------------------------------------
OPTIONS TERMINATED IN CLOSING TRANSACTIONS (2,396) (375,676)
- -----------------------------------------------------------------------------------------------
OPTIONS EXPIRED (322) (12,782)
- -----------------------------------------------------------------------------------------------
OPTIONS EXERCISED 0 0
- -----------------------------------------------------------------------------------------------
OPTIONS AT END OF PERIOD 169 31,770
- -----------------------------------------------------------------------------------------------
42
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
WELLS FARGO ADVANTAGE SPECIALTY FUNDS
- --------------------------------------------------------------------------------
SPECIALIZED TECHNOLOGY FUND
---------------------------
Principal Amount of Contracts Premiums Received
- -----------------------------------------------------------------------------------------------------------------------
Call Options Written
- -----------------------------------------------------------------------------------------------------------------------
OPTIONS AT BEGINNING OF PERIOD 1,688 $ 515,142
- -----------------------------------------------------------------------------------------------------------------------
OPTIONS WRITTEN 4,140 1,751,661
- -----------------------------------------------------------------------------------------------------------------------
OPTIONS TERMINATED IN CLOSING TRANSACTIONS (2,772) (1,270,615)
- -----------------------------------------------------------------------------------------------------------------------
OPTIONS EXPIRED (588) (51,210)
- -----------------------------------------------------------------------------------------------------------------------
OPTIONS EXERCISED 170 (51,686)
- -----------------------------------------------------------------------------------------------------------------------
OPTIONS SPLIT (20) 0
- -----------------------------------------------------------------------------------------------------------------------
OPTIONS AT END OF PERIOD 2,618 893,292
- -----------------------------------------------------------------------------------------------------------------------
Put Options Written
- -----------------------------------------------------------------------------------------------------------------------
OPTIONS AT BEGINNING OF PERIOD 710 154,710
- -----------------------------------------------------------------------------------------------------------------------
OPTIONS WRITTEN 22,277 4,445,588
- -----------------------------------------------------------------------------------------------------------------------
OPTIONS TERMINATED IN CLOSING TRANSACTIONS (12,669) (2,265,631)
- -----------------------------------------------------------------------------------------------------------------------
OPTIONS EXPIRED (4,133) (331,009)
- -----------------------------------------------------------------------------------------------------------------------
OPTIONS EXERCISED 0 0
- -----------------------------------------------------------------------------------------------------------------------
OPTIONS AT END OF PERIOD 6,185 2,003,658
- -----------------------------------------------------------------------------------------------------------------------
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)
- -----------------------------------------------------------------------------------------------------------------------
SPECIALIZED FINANCIAL First $500 million 0.950 Wells Capital First $100 million 0.450
SERVICES FUND Next $500 million 0.900 Management Next $100 million 0.400
Next $2 billion 0.850 Incorporated Over $200 million 0.300
Next $2 billion 0.825
Over $5 billion 0.800
- -----------------------------------------------------------------------------------------------------------------------
SPECIALIZED HEALTH First $500 million 0.950 RCM Capital First $100 million 0.750
SCIENCES FUND Next $500 million 0.900 Management LLC Next $400 million 0.650
Next $2 billion 0.850 Over $500 million 0.600
Next $2 billion 0.825
Over $5 billion 0.800
- -----------------------------------------------------------------------------------------------------------------------
SPECIALIZED First $500 million 1.050 RCM Capital First $50 million 1.000
TECHNOLOGY FUND Next $500 million 1.000 Management LLC Next $50 million 0.700
Next $2 billion 0.950 Over $100 million 0.550
Next $2 billion 0.925
Over $5 billion 0.900
- -----------------------------------------------------------------------------------------------------------------------
43
WELLS FARGO ADVANTAGE SPECIALTY FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
* Effective January 1, 2006. Prior to January 1, 2006, the investment
subadviser(s) listed below were entitled to be paid a monthly fee at the
following rates:
Subadvisory Fees
Average Daily (% of Average Daily
Fund Subadviser Net Assets Net Assets)
- -----------------------------------------------------------------------------------------------
SPECIALIZED FINANCIAL SERVICES FUND Wells Capital First $200 million 0.250
Management Next $200 million 0.200
Incorporated Over $400 million 0.150
- -----------------------------------------------------------------------------------------------
SPECIALIZED HEALTH SCIENCES FUND RCM Capital First $100 million 0.950
Management LLC Next $400 million 0.650
Over $500 million 0.600
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 All asset levels 0.28
- ---------------------------------------------------------------------------
CLASS B All asset levels 0.28
- ---------------------------------------------------------------------------
CLASS C All asset levels 0.28
- ---------------------------------------------------------------------------
CLASS Z** All asset levels 0.45
- ---------------------------------------------------------------------------
** APRIL 11, 2005, IS COMMENCEMENT OF OPERATIONS.
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:
% OF AVERAGE
FUND DAILY NET ASSETS
- -------------------------------------------------------------------------------
SPECIALIZED FINANCIAL SERVICES FUND 0.02%
- -------------------------------------------------------------------------------
SPECIALIZED HEALTH SCIENCES FUND 0.07%
- -------------------------------------------------------------------------------
SPECIALIZED TECHNOLOGY FUND 0.07%
- -------------------------------------------------------------------------------
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 Z 0.25%
- -------------------------------------------------------------------------------
For the period ended April 30, 2006, shareholder servicing fees paid were
as follows:
FUND CLASS A CLASS B CLASS C CLASS Z
- ----------------------------------------------------------------------------------------------
SPECIALIZED FINANCIAL SERVICES FUND $ 461,662 $ 5,876 $ 1,486 N/A
- ----------------------------------------------------------------------------------------------
SPECIALIZED HEALTH SCIENCES FUND 13,164 17,623 1,567 N/A
- ----------------------------------------------------------------------------------------------
SPECIALIZED TECHNOLOGY FUND 151,602 36,629 7,491 $116,870
- ----------------------------------------------------------------------------------------------
44
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
WELLS FARGO ADVANTAGE SPECIALTY FUNDS
- --------------------------------------------------------------------------------
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 April 30, 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 April 30, 2006, were waived by Funds
Management 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 during the period were as follows:
NET OPERATING EXPENSE RATIOS
----------------------------
Fund Class A Class B Class C Class Z
- ------------------------------------------------------------------------------------------------
SPECIALIZED FINANCIAL SERVICES FUND 1.35% 2.10% 2.10% N/A
- ------------------------------------------------------------------------------------------------
SPECIALIZED HEALTH SCIENCES FUND 1.65% 2.40% 2.40% N/A
- ------------------------------------------------------------------------------------------------
SPECIALIZED TECHNOLOGY FUND 1.75% 2.50% 2.50% 1.90%
- ------------------------------------------------------------------------------------------------
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 April 30, 2006, were as follows:
FUND PURCHASES AT COST SALES PROCEEDS
- ------------------------------------------------------------------------------------------------
SPECIALIZED FINANCIAL SERVICES FUND $ 48,031,034 $ 85,279,909
- ------------------------------------------------------------------------------------------------
SPECIALIZED HEALTH SCIENCES FUND 49,087,038 51,989,454
- ------------------------------------------------------------------------------------------------
SPECIALIZED TECHNOLOGY FUND 240,358,733 276,384,551
- ------------------------------------------------------------------------------------------------
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 April 30, 2006, there
were no borrowings by Specialty 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.
45
WELLS FARGO ADVANTAGE SPECIALTY 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 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 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.
- -------------------------------------------------------------------------------------------------------------------
Timothy J. Penny Trustee, since 1996 Senior Counselor to the None
54 public 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.
46
OTHER INFORMATION (UNAUDITED) WELLS FARGO ADVANTAGE SPECIALTY FUNDS
- --------------------------------------------------------------------------------
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
47 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.
- -------------------------------------------------------------------------------------------------------------------
Dorothy A. Peters Chief Compliance Chief Compliance Officer of None
44 Officer, since 2004 Wells Fargo Funds
Management, LLC since 2004,
and from 1997 to 2002. In
2002 Ms. Peters left Wells
Fargo Funds Management, LLC
to pursue personal goals.
- -------------------------------------------------------------------------------------------------------------------
* 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 April 30, 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.
47
WELLS FARGO ADVANTAGE SPECIALTY 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
48
THIS PAGE IS INTENTIONALLY LEFT BLANK --
THIS PAGE IS INTENTIONALLY LEFT BLANK --
[LOGO]
WELLS ADVANTAGE
FARGO FUNDS
More information about WELLS FARGO ADVANTAGE FUNDS(SM) is available free upon
request. To obtain literature, please write, e-mail, visit the Funds' Web site,
or call:
WELLS FARGO ADVANTAGE FUNDS
P.O. Box 8266
Boston, MA 02266-8266
E-mail: wfaf@wellsfargo.com
Web site: www.wellsfargo.com/advantagefunds
Retail Investment Professionals: 1-888-877-9275
Institutional Investment Professionals: 1-866-765-0778
This report and the financial statements contained herein are submitted for the
general information of the shareholders of WELLS FARGO ADVANTAGE FUNDS. If this
report is used for promotional purposes, distribution of the report must be
accompanied or preceded by a current prospectus. For a prospectus containing
more complete information, including charges and expenses, call 1-800-222-8222
or visit the Funds'Web site at www.wellsfargo.com/advantagefunds. Please
consider the investment 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 - NO BANK GUARANTEE - MAY LOSE VALUE
-----------------------------------------------------
- --------------------------------------------------------------------------------
(C) 2006 Wells Fargo Funds Management, LLC. All rights reserved.
www.wellsfargo.com/advantagefunds
RT57198 06-06
SASFLD/SAR113 04-06
[LOGO]
WELLS ADVANTAGE
FARGO FUNDS
APRIL 30, 2006
[GRAPHIC OMITTED]
Semi-Annual Report
Wells Fargo Advantage Small and Mid Cap Stock Funds
Wells Fargo Advantage C&B Mid Cap Value Fund
Wells Fargo Advantage Common Stock Fund
Wells Fargo Advantage Mid Cap Growth Fund
Wells Fargo Advantage Small Cap Growth Fund
Wells Fargo Advantage Small Cap Opportunities Fund
Wells Fargo Advantage Small Cap Value Fund
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
Table of Contents
Letter to Shareholders .................................................... 1
- --------------------------------------------------------------------------------
Performance Highlights
- --------------------------------------------------------------------------------
C&B Mid Cap Value Fund ................................................. 2
Common Stock Fund ...................................................... 4
Mid Cap Growth Fund .................................................... 6
Small Cap Growth Fund .................................................. 8
Small Cap Opportunities Fund ........................................... 10
Small Cap Value Fund ................................................... 12
Fund Expenses (Unaudited) ................................................. 14
- --------------------------------------------------------------------------------
Portfolio of Investments
- --------------------------------------------------------------------------------
C&B Mid Cap Value Fund ................................................. 17
Common Stock Fund ...................................................... 23
Mid Cap Growth Fund .................................................... 30
Small Cap Growth Fund .................................................. 37
Small Cap Opportunities Fund ........................................... 44
Small Cap Value Fund ................................................... 52
Financial Statements
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities ................................... 64
Statements of Operations ............................................... 66
Statements of Changes in Net Assets .................................... 68
Financial Highlights ................................................... 76
Notes to Financial Highlights ............................................. 82
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Notes to Financial Statements ............................................. 83
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Other Information (Unaudited) ............................................. 94
- --------------------------------------------------------------------------------
List of Abbreviations ..................................................... 96
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
DEAR VALUED SHAREHOLDER,
Enclosed please find the WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK
FUNDS semi-annual report for the period that ended April 30, 2006. On the
following pages, you will find a discussion of each Fund, including performance
highlights, information about the holdings in each Fund, and the portfolio
managers' strategic outlook.
ECONOMIC OVERVIEW
- --------------------------------------------------------------------------------
The U.S. economy continued to show signs of strength during the past six
months, even though real Gross Domestic Product (GDP) grew at a rate of only
1.7% for the fourth quarter of 2005. During the first quarter of 2006, economic
growth gained momentum and ended the quarter with a GDP growth rate of 5.3%. The
strong growth came despite continued interest rate hikes by the Federal Reserve
Board (the Fed). The Federal funds rate stood at 4.75% as of the end of April
2006.
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 slowed. Sluggish housing sales were seen in the condominium
markets and in regions of rapid price appreciation. Sales of single-family homes
held up well, but speculative demand for housing cooled. Business spending
remained strong through the first quarter of 2006, and in April commodity prices
continued their upward trend as the strong global economy steadily increased
demand for raw materials.
STOCKS REMAIN VIABLE
- --------------------------------------------------------------------------------
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.
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. Most 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, many equity market indices moved higher, and the S&P 500 Index
and the Dow Jones Industrial Average had the best first quarter results since
1999 and 2002, respectively. The NASDAQ Composite Index ended the first quarter
of 2006 at a five-year high.
Almost all equity markets continued to move higher in April. Value
outperformed growth within the U.S. equity markets, and most large cap stocks
slightly outperformed most small cap stocks. The energy and financial sectors
led the way in the value asset class. With the outlook for housing becoming less
optimistic, Real Estate Investment Trusts (REITs) became less attractive, and it
may become more and more difficult for this asset class to continue at the pace
it has set during the past five years.
LOOKING AHEAD
- --------------------------------------------------------------------------------
High-energy prices and rising interest rates may eventually slow investor
enthusiasm for stocks, and we may see long-term interest rates move higher,
though their increases could be restrained if inflation remains stable and
investor confidence stays steady. 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 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 most major asset
classes, 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
toward 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 SMALL AND MID CAP STOCK FUNDS PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE C&B MID CAP VALUE FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The WELLS FARGO ADVANTAGE C&B MID 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 02/18/1998
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 15.81%1 (excluding sales charges) for
the six-month period that ended April 30, 2006, outperforming its benchmark, the
Russell Midcap(R) Value Index 2, which returned 13.58%. In addition, the Fund
outperformed the Russell Midcap(R) Index 3, which returned 14.35% 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 AT 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 PERIOD SHOWN.
ADMINISTRATOR CLASS, INSTITUTIONAL CLASS AND CLASS D 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?
- --------------------------------------------------------------------------------
Most of the Fund's outperformance relative to the benchmark for the period
was attributed to good stock selection, the Fund's overweighted position in
industrials, and its underweighted position in energy relative to the benchmark.
The best performing stocks in the Fund included Seagate Technology LLC,
MoneyGram International, Inc., and Hain Celestial Group, Inc. The worst
performers included Zale Corporation, Parametric Technology Corporation, and
Catalina Marketing.
The Fund's outperformance is noteworthy because it came during a time when
it was particularly difficult to beat the market. Our valuation bias led to the
Fund's underweighted position in two top-performing sectors: energy and
utilities. Our investment approach emphasizes a bias toward quality. We believe
that quality currently remains unappreciated in the market place. Similar to the
bond market, where quality spreads remain narrow, some investors appear to be
complacent with regard to risk. Although our general style remains somewhat out
of favor, we are pleased with recent results.
WHAT CHANGES DID YOU MAKE TO THE FUND'S HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
We employ a business owner's approach to stock market investing whereby we
recognize a stock for what it is: partial ownership in a business. As such, our
decision to buy or sell a stock is made in much the same way that a business
owner would decide to buy or sell a business. We focus on competitive
advantages, cash flow dynamics, and strong balance sheet structure. The
following new stocks were added to the portfolio: American Power Conversion
Corp., Arthur J. Gallagher & Co., CDW Corp., International Speedway Corporation,
Pilgrim's Pride Corporation, and Quest Diagnostics Incorporated. To make room
for these new holdings, we sold several equities that had reached their
valuation targets, including ADC Telecommunications, Inc., AVX Corp., Equifax,
Haemonetics Corporation, Nordson Corporation, Principal Financial Group, Inc.,
and Seagate Technology, Inc.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
While we are sanguine about the economy, we are also cognizant of the
risks involved. Rising interest rates, a financially stretched consumer,
high-energy prices, and the prospect for negative geopolitical events are all
cause for potential concern. In general, those risks are not offset by valuation
levels, because the overall market does not appear to be cheap. It seems that
the market is presently ignoring quality at precisely the time when it is most
important. As noted earlier, some investors have grown rather complacent with
regard to risk. We are not complacent.
We believe that the Fund is well positioned and that energy prices are
high and unsustainable; therefore we presently see few opportunities in that
area and remain underweighted in the energy sector. We continue to rigorously
follow our "high quality, low risk" approach to investing while seeking 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. 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 April 30, 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 MID 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.
Performance shown for Class A, Class B, Class C, and Class D shares of the
WELLS FARGO ADVANTAGE C&B MID CAP VALUE FUND for periods prior to July 26, 2004,
reflects the performance of the unnamed share class of the C&B Mid Cap Value
Portfolio, the predecessor fund, adjusted to reflect the sales charges and
expenses applicable to each share class. (CONTINUED)
2
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge
--------------------------------------- ----------------------------------------
6-Months* 1-Year 5-Year Life of Fund 6-Months* 1-Year 5-Year Life of Fund
- ---------------------------------------------------------------------------------------------------------------------------------
C&B Mid Cap Value Fund - Class A
(Incept. Date 07/26/2004) 9.13 17.39 12.56 13.18 15.81 24.57 13.89 14.00
- ---------------------------------------------------------------------------------------------------------------------------------
C&B Mid Cap Value Fund - Class B
(Incept. Date 07/26/2004) 10.45 18.68 12.82 13.17 15.45 23.68 13.07 13.17
- ---------------------------------------------------------------------------------------------------------------------------------
C&B Mid Cap Value Fund - Class C
(Incept. Date 07/26/2004) 14.45 22.68 13.07 13.17 15.45 23.68 13.07 13.17
- ---------------------------------------------------------------------------------------------------------------------------------
C&B Mid Cap Value Fund - Class D
(Incept. Date 02/18/1998) 15.94 24.76 13.95 14.04
- ---------------------------------------------------------------------------------------------------------------------------------
C&B Mid Cap Value Fund - Administrator Class
(Incept. Date 07/26/2004) 16.03 24.91 14.00 14.07
- ---------------------------------------------------------------------------------------------------------------------------------
C&B Mid Cap Value Fund - Institutional Class
(Incept. Date 07/26/2004) 16.11 25.15 14.09 14.13
- ---------------------------------------------------------------------------------------------------------------------------------
Benchmarks
- ---------------------------------------------------------------------------------------------------------------------------------
Russell Midcap(R) Value Index 2 13.58 24.75 13.69 10.80
- ---------------------------------------------------------------------------------------------------------------------------------
Russell Midcap(R) Index 3 14.35 26.42 10.85 9.92
- ---------------------------------------------------------------------------------------------------------------------------------
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FUND CHARACTERISTICS 4 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
Beta** 1.12
- --------------------------------------------------------------------------------
Price to Earnings (trailing 12 months) 24.20x
- --------------------------------------------------------------------------------
Price to Book Ratio 2.98x
- --------------------------------------------------------------------------------
Median Market Cap. ($B) $ 2.71
- --------------------------------------------------------------------------------
Portfolio Turnover*** 15%
- --------------------------------------------------------------------------------
** A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE RUSSELL MID
CAP(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 APRIL 30, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Discretionary (22%)
Consumer Staples (6%)
Financials (11%)
Health Care (7%)
Industrials (28%)
Information Technology (21%)
Materials (5%)
TEN LARGEST EQUITY HOLDINGS 4,5 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
Mettler-Toledo International Incorporated 5.21%
- --------------------------------------------------------------------------------
American Power Conversion Corporation 4.63%
- --------------------------------------------------------------------------------
MoneyGram International Incorporated 4.54%
- --------------------------------------------------------------------------------
Big Lots Incorporated 4.53%
- --------------------------------------------------------------------------------
Entegris Incorporated 3.93%
- --------------------------------------------------------------------------------
Hain Celestial Group Incorporated 3.74%
- --------------------------------------------------------------------------------
Dover Corporation 3.44%
- --------------------------------------------------------------------------------
Pall Corporation 3.39%
- --------------------------------------------------------------------------------
Hubbell Incorporated Class B 3.35%
- --------------------------------------------------------------------------------
Carlisle Companies Incorporated 3.33%
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTMENT 6 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
WELLS FARGO ADVANTAGE C&B WELLS FARGO ADVANTAGE C&B MID CAP
DATE MID CAP VALUE FUND - Class A VALUE FUND - Administrator Class Russell Midcap(R) Value Index Russell Midcap(R) Index
2/18/1998 9,425 10,000 10,000 10,000
2/28/1998 9,632 10,220 10,668 10,782
3/31/1998 10,160 10,780 11,217 11,293
4/30/1998 10,019 10,630 11,155 11,321
5/31/1998 10,009 10,620 10,894 10,971
6/30/1998 9,509 10,089 10,928 11,123
7/31/1998 9,036 9,588 10,374 10,592
8/31/1998 7,741 8,214 8,916 8,898
9/30/1998 8,053 8,545 9,436 9,474
10/31/1998 9,170 9,729 10,048 10,120
11/30/1998 9,208 9,770 10,401 10,599
12/31/1998 9,484 10,063 10,717 11,221
1/31/1999 8,982 9,530 10,467 11,202
2/28/1999 8,640 9,167 10,237 10,829
3/31/1999 8,830 9,369 10,383 11,168
4/30/1999 9,467 10,044 11,366 11,993
5/31/1999 9,562 10,145 11,414 11,959
6/30/1999 10,664 11,315 11,544 12,381
7/31/1999 10,541 11,184 11,256 12,041
8/31/1999 9,713 10,306 10,866 11,729
9/30/1999 9,323 9,892 10,316 11,317
10/31/1999 9,371 9,942 10,621 11,853
11/30/1999 9,447 10,023 10,426 12,194
12/31/1999 9,467 10,044 10,706 13,267
1/31/2000 9,359 9,930 10,066 12,828
2/29/2000 9,086 9,640 9,645 13,814
3/31/2000 10,028 10,640 10,814 14,605
4/30/2000 10,360 10,992 10,857 13,913
5/31/2000 11,338 12,029 11,044 13,545
6/30/2000 11,374 12,067 10,632 13,945
7/31/2000 11,550 12,254 10,881 13,789
8/31/2000 12,098 12,836 11,548 15,111
9/30/2000 12,115 12,853 11,659 14,895
10/31/2000 12,536 13,301 11,880 14,665
11/30/2000 12,576 13,343 11,726 13,345
12/31/2000 13,351 14,165 12,760 14,361
1/31/2001 14,276 15,146 12,714 14,592
2/28/2001 14,618 15,510 12,660 13,704
3/31/2001 13,968 14,820 12,310 12,854
4/30/2001 14,395 15,273 12,987 13,953
5/31/2001 15,331 16,266 13,356 14,213
6/30/2001 15,252 16,182 13,178 14,079
7/31/2001 15,679 16,635 13,125 13,676
8/31/2001 15,491 16,436 12,885 13,150
9/30/2001 14,236 15,104 11,656 11,565
10/31/2001 14,810 15,713 11,718 12,023
11/30/2001 15,760 16,721 12,538 13,030
12/31/2001 16,710 17,730 13,058 13,553
1/31/2002 16,710 17,730 13,190 13,472
2/28/2002 17,019 18,057 13,404 13,329
3/31/2002 17,984 19,081 14,089 14,129
4/30/2002 18,182 19,291 14,079 13,855
5/31/2002 18,348 19,467 14,058 13,698
6/30/2002 17,631 18,706 13,431 12,780
7/31/2002 15,944 16,916 12,116 11,533
8/31/2002 15,635 16,589 12,256 11,596
9/30/2002 13,972 14,824 11,018 10,526
10/31/2002 14,501 15,385 11,369 11,058
11/30/2002 15,571 16,520 12,085 11,826
12/31/2002 15,124 16,046 11,797 11,360
1/31/2003 14,672 15,566 11,471 11,130
2/28/2003 14,087 14,946 11,280 10,983
3/31/2003 14,463 15,345 11,319 11,091
4/30/2003 15,788 16,751 12,179 11,897
5/31/2003 17,025 18,063 13,251 12,985
6/30/2003 17,391 18,451 13,343 13,117
7/31/2003 18,031 19,131 13,758 13,549
8/31/2003 18,870 20,021 14,247 14,137
9/30/2003 18,175 19,283 14,136 13,960
10/31/2003 19,831 21,040 15,173 15,026
11/30/2003 20,295 21,533 15,613 15,447
12/31/2003 21,021 22,303 16,288 15,910
1/31/2004 21,311 22,610 16,718 16,373
2/29/2004 21,611 22,930 17,131 16,725
3/31/2004 21,782 23,110 17,158 16,729
4/30/2004 21,247 22,542 16,432 16,114
5/31/2004 21,336 22,637 16,853 16,514
6/30/2004 22,127 23,477 17,455 16,971
7/31/2004 20,745 22,010 16,982 16,229
8/31/2004 20,756 22,022 17,255 16,299
9/30/2004 21,124 22,424 17,757 16,828
10/31/2004 21,057 22,353 18,167 17,292
11/30/2004 22,305 23,690 19,395 18,346
12/31/2004 23,317 24,775 20,148 19,127
1/31/2005 22,341 23,740 19,678 18,654
2/28/2005 23,099 24,544 20,365 19,230
3/31/2005 22,927 24,373 20,304 19,079
4/30/2005 22,146 23,545 19,768 18,471
5/31/2005 23,443 24,921 20,585 19,356
6/30/2005 24,074 25,603 21,258 19,876
7/31/2005 24,912 26,491 22,269 20,924
8/31/2005 23,936 25,457 22,096 20,777
9/30/2005 24,131 25,676 22,396 21,053
10/31/2005 23,822 25,347 21,711 20,421
11/30/2005 25,107 26,735 22,477 21,327
12/31/2005 24,721 26,317 22,695 21,547
1/31/2006 25,942 27,625 23,680 22,654
2/28/2006 26,179 27,889 23,905 22,627
3/31/2006 27,463 29,264 24,426 23,188
4/30/2006 27,587 29,409 24,661 23,350
- --------------------------------------------------------------------------------
Performance shown for Administrator Class and Institutional Class shares
of the Fund for periods prior to July 26, 2004, reflects the performance of the
Fund's Class D shares, and includes expenses that are not applicable to and are
higher than those of these Classes.
2 The Russell Midcap(R) Value Index measures the performance of those Russell
Midcap companies with lower price-to-book ratios and lower forecasted growth
values. The stocks are also members of the Russell 1000(R) Value Index. The Fund
has selected the Russell Midcap(R) Value Index to replace the Russell Midcap(R)
Index as its benchmark index going forward because the Russell Midcap(R) Value
Index is more representative of the breadth of the Fund's holdings. You cannot
invest directly in an Index.
3 The Russell Midcap(R) Index measures the performance of the 800 smallest
companies in the Russell 1000(R) Index, which represent approximately 25% of the
total market capitalization of the Russell 1000(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 securities divided by total market value of the Fund.
6 The chart compares the performance of the WELLS FARGO ADVANTAGE C&B MID CAP
VALUE FUND Class A shares, and Administrator Class shares for the life of the
Fund with the Russell Midcap(R) Value Index and the Russell Midcap(R) 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%.
3
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE COMMON STOCK FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The Wells Fargo Advantage Common Stock Fund (the Fund) seeks long-term
capital appreciation.
ADVISER SUBADVISER
Wells Fargo Funds Management, LLC Wells Capital Management Incorporated
FUND MANAGERS FUND INCEPTION DATE
Ann M. Miletti 12/29/1989
Richard T. Weiss
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Class A shares returned 18.06% 1 (excluding sales charges) for
the six-month period that ended April 30, 2006, outperforming its benchmark, the
Russell 2500(TM) Index 2, which returned 17.19%. In addition, the Fund
outperformed the Russell Midcap(R) Index 3, which returned 14.35% 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. 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.
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?
- --------------------------------------------------------------------------------
The market continued to move upward during the period, though performance
was somewhat divided with the small cap indices generally outperforming the
large cap indices. The market remained resilient as general economic activity
stayed strong and fears of inflation failed to materialize, despite commodity
prices rising to new highs. The Federal Reserve Board (the Fed) continued to
raise the Federal funds rate during the period, and we believe the Fed may
continue to raise interest rates further, possibly to 5.25% by June 2006.
Positive stock selection and the Fund's slightly overweighted position
within the technology sector helped Fund performance. Expected strength in
telecommunications spending and wireless handset growth in 2006 contributed to
the strength in some of the Fund's positions. In addition, security selection in
the consumer discretionary sector contributed positively to the relative
performance of the Fund, as our specialty retail and auto components holdings
outperformed those of the Russell 2500(TM) Index.
Holdings within the health care sector, especially Boston Scientific
Corporation and MedImmune Inc., contributed negatively to the Fund's relative
performance. Other contributors to underperformance included holdings in
EnerSys, Huntsman Corp., and Owens-Illinois Inc.
WHAT CHANGES DID YOU MAKE TO THE FUND'S HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
Our methodology includes buying stocks that we believe are selling at a
discount to their intrinsic private market value, and selling stocks that
approach their private market value. This discipline allows us to be patient
with stocks that are out of favor with the market, which seems to be the
exception as the market becomes more focused on the short term rather than the
long term. Consequently, the Fund was overweighted in the energy and
distribution sectors and underweighted in the financial, cyclical, and health
care sectors. The Fund began the period with a relatively large cash position
that was reinvested incrementally. Additions were made in the stable growth and
distribution sectors. The remaining sector weightings were fairly consistent
from the beginning to the end of the period, except for the energy sector, where
the Fund reduced its overweighted position.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
The stock market was strong during the past six months as the economy
rebounded in the first quarter of 2006 from a slow fourth quarter in 2005. There
were signs of slowing within the housing sector and consumer spending, but
production remained strong, especially in machinery and equipment manufacturing.
A strong global economy, led by China, has helped cyclical stocks outperform,
but it has also kept energy and other commodity prices at record high levels. We
are watching core inflation levels because the Fed may continue to raise
interest rates if it thinks that inflation is gaining momentum. The stock market
may have trouble reaching higher levels if interest rates continue their upward
trend. So far, however, higher commodity prices have not translated to higher
inflation. We will continue to focus on individual companies with low valuations
and remain optimistic that our time-tested approach will guide Fund performance
over time.
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. 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 April 30, 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 COMMON STOCK FUND.
4
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge
---------------------------------- ----------------------------------
6-Months* 1-Year 5-Year 10-Year 6-Months* 1-Year 5-Year 10-Year
- ---------------------------------------------------------------------------------------------------------------------
Common Stock Fund - Class A
(Incept. Date 11/30/2000) 11.28 21.83 6.55 10.62 18.06 29.26 7.83 11.28
- ---------------------------------------------------------------------------------------------------------------------
Common Stock Fund - Class B
(Incept. Date 11/30/2000) 12.61 23.33 6.72 10.78 17.61 28.33 7.02 10.78
- ---------------------------------------------------------------------------------------------------------------------
Common Stock Fund - Class C
(Incept. Date 11/30/2000) 16.67 27.34 7.02 10.62 17.67 28.34 7.02 10.62
- ---------------------------------------------------------------------------------------------------------------------
Common Stock Fund - Class Z
(Incept. Date 12/29/1989) 18.10 29.34 8.04 11.60
- ---------------------------------------------------------------------------------------------------------------------
Benchmarks
- ---------------------------------------------------------------------------------------------------------------------
Russell 2500(TM) Index 2 17.19 30.35 11.68 11.61
- ---------------------------------------------------------------------------------------------------------------------
Russell Midcap(R) Index 3 14.35 26.42 10.85 12.43
- ---------------------------------------------------------------------------------------------------------------------
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FUND CHARACTERISTICS 4 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
Beta** 1.05
- --------------------------------------------------------------------------------
Price to Earnings (trailing 12 months) 22.50x
- --------------------------------------------------------------------------------
Price to Book Ratio 2.85x
- --------------------------------------------------------------------------------
Median Market Cap. ($B) $ 5.45
- --------------------------------------------------------------------------------
Portfolio Turnover*** 24%
- --------------------------------------------------------------------------------
** A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE RUSSELL 2500(TM)
INDEX BETA IS 1.00 BY DEFINITION.
*** THIS MEASURE IS BASED ON SIX MONTHS OF THE FUND'S ACTIVITY.
SECTOR DISTRIBUTION 4 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Discretionary (28%)
Consumer Staples (3%)
Energy (13%)
Financials (11%)
Health Care (8%)
Industrials (9%)
Information Technology (19%)
Materials (9%)
TEN LARGEST EQUITY HOLDINGS 4,5 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
Noble Corporation 2.33%
- --------------------------------------------------------------------------------
EOG Resources Incorporated 2.16%
- --------------------------------------------------------------------------------
Apache Corporation 2.16%
- --------------------------------------------------------------------------------
Alcoa Incorporated 1.93%
- --------------------------------------------------------------------------------
Ryder System Incorporated 1.87%
- --------------------------------------------------------------------------------
Cablevision Systems Corporation New York Group Class A 1.78%
- --------------------------------------------------------------------------------
Sports Authority Incorporated 1.78%
- --------------------------------------------------------------------------------
Kohl's Corporation 1.68%
- --------------------------------------------------------------------------------
Smith International Incorporated 1.68%
- --------------------------------------------------------------------------------
Thermo Electron Corporation 1.66%
GROWTH OF $10,000 INVESTMENT 6 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
WELLS FARGO ADVANTAGE WELLS FARGO ADVANTAGE
DATE COMMON STOCK FUND - COMMON STOCK FUND -
Class A Class Z Russell Midcap(TM) Index Russell 2500(R) Index
4/30/1996 9,424 10,000 10,000 10,000
5/31/1996 9,533 10,119 10,151 10,271
6/30/1996 9,245 9,816 9,999 9,956
7/31/1996 8,755 9,299 9,380 9,227
8/31/1996 9,189 9,763 9,826 9,758
9/30/1996 9,498 10,094 10,312 10,181
10/31/1996 9,626 10,233 10,394 10,114
11/30/1996 10,258 10,909 11,028 10,602
12/31/1996 10,292 10,947 10,915 10,748
1/31/1997 10,654 11,337 11,323 11,045
2/28/1997 10,662 11,348 11,306 10,881
3/31/1997 10,271 10,936 10,826 10,388
4/30/1997 10,544 11,230 11,095 10,519
5/31/1997 11,467 12,216 11,905 11,488
6/30/1997 11,807 12,582 12,294 11,957
7/31/1997 12,516 13,342 13,320 12,658
8/31/1997 12,777 13,624 13,175 12,834
9/30/1997 13,361 14,251 13,927 13,673
10/31/1997 12,567 13,408 13,385 13,059
11/30/1997 12,469 13,308 13,704 13,117
12/31/1997 12,717 13,577 14,081 13,365
1/31/1998 12,653 13,512 13,816 13,161
2/28/1998 13,580 14,507 14,896 14,117
3/31/1998 14,162 15,133 15,603 14,736
4/30/1998 14,346 15,334 15,642 14,792
5/31/1998 13,729 14,679 15,158 14,105
6/30/1998 13,743 14,699 15,368 14,122
7/31/1998 12,987 13,895 14,635 13,152
8/31/1998 10,820 11,580 12,294 10,671
9/30/1998 11,459 12,267 13,089 11,429
10/31/1998 12,491 13,376 13,982 12,053
11/30/1998 12,856 13,771 14,644 12,650
12/31/1998 13,507 14,473 15,503 13,417
1/31/1999 13,804 14,796 15,476 13,394
2/28/1999 13,211 14,164 14,961 12,514
3/31/1999 13,924 14,932 15,430 12,782
4/30/1999 15,216 16,323 16,570 13,925
5/31/1999 15,317 16,437 16,522 14,141
6/30/1999 16,143 17,328 17,105 14,877
7/31/1999 15,893 17,065 16,636 14,585
8/31/1999 15,277 16,409 16,205 14,128
9/30/1999 15,093 16,216 15,635 13,918
10/31/1999 16,150 17,357 16,376 14,223
11/30/1999 17,313 18,612 16,847 15,026
12/31/1999 18,890 20,313 18,329 16,656
1/31/2000 18,120 19,491 17,723 16,273
2/29/2000 19,028 20,474 19,085 18,623
3/31/2000 20,205 21,747 20,178 18,338
4/30/2000 19,046 20,506 19,223 17,352
5/31/2000 19,250 20,732 18,714 16,520
6/30/2000 18,938 20,402 19,267 17,605
7/31/2000 18,520 19,958 19,051 17,156
8/31/2000 20,002 21,562 20,877 18,634
9/30/2000 19,533 21,062 20,579 18,028
10/31/2000 18,780 20,257 20,262 17,533
11/30/2000 17,408 18,782 18,438 15,990
12/31/2000 18,587 20,069 19,841 17,367
1/31/2001 19,791 21,363 20,161 17,938
2/28/2001 18,512 19,989 18,934 16,783
3/31/2001 17,592 19,014 17,759 15,862
4/30/2001 18,828 20,348 19,278 17,263
5/31/2001 19,049 20,606 19,637 17,782
6/30/2001 18,616 20,149 19,452 18,035
7/31/2001 18,275 19,780 18,895 17,390
8/31/2001 17,297 18,725 18,169 16,820
9/30/2001 14,871 16,107 15,978 14,643
10/31/2001 15,885 17,202 16,611 15,400
11/30/2001 17,380 18,835 18,002 16,646
12/31/2001 18,217 19,728 18,725 17,579
1/31/2002 17,847 19,339 18,614 17,361
2/28/2002 17,376 18,840 18,416 17,057
3/31/2002 18,679 20,256 19,520 18,236
4/30/2002 17,939 19,458 19,142 18,190
5/31/2002 17,496 18,980 18,926 17,657
6/30/2002 15,915 17,264 17,657 16,662
7/31/2002 14,344 15,569 15,934 14,673
8/31/2002 14,529 15,768 16,021 14,718
9/30/2002 13,050 14,162 14,543 13,552
10/31/2002 14,150 15,359 15,278 13,993
11/30/2002 15,795 17,144 16,338 15,136
12/31/2002 14,668 15,928 15,695 14,451
1/31/2003 14,464 15,708 15,377 14,067
2/28/2003 14,399 15,638 15,174 13,729
3/31/2003 14,510 15,758 15,323 13,860
4/30/2003 15,536 16,875 16,436 15,095
5/31/2003 16,895 18,351 17,941 16,579
6/30/2003 17,117 18,601 18,122 16,896
7/31/2003 17,690 19,229 18,719 17,804
8/31/2003 18,392 19,987 19,532 18,628
9/30/2003 17,912 19,468 19,287 18,375
10/31/2003 19,039 20,715 20,760 19,827
11/30/2003 19,427 21,134 21,342 20,573
12/31/2003 20,315 22,091 21,982 21,027
1/31/2004 20,647 22,460 22,620 21,794
2/29/2004 21,119 22,979 23,108 22,131
3/31/2004 20,888 22,730 23,112 22,264
4/30/2004 20,194 21,982 22,264 21,195
5/31/2004 20,296 22,091 22,816 21,628
6/30/2004 20,749 22,590 23,447 22,339
7/31/2004 19,363 21,084 22,422 21,039
8/31/2004 19,132 20,835 22,519 20,985
9/30/2004 19,973 21,762 23,250 21,777
10/31/2004 20,462 22,291 23,891 22,274
11/30/2004 21,590 23,527 25,347 23,937
12/31/2004 22,278 24,291 26,426 24,874
1/31/2005 21,662 23,626 25,772 24,038
2/28/2005 22,348 24,377 26,568 24,582
3/31/2005 22,294 24,329 26,359 24,093
4/30/2005 21,231 23,162 25,519 23,009
5/31/2005 22,233 24,264 26,742 24,401
6/30/2005 22,759 24,831 27,461 25,182
7/31/2005 24,044 26,239 28,909 26,671
8/31/2005 23,751 25,922 28,706 26,273
9/30/2005 23,832 25,999 29,087 26,413
10/31/2005 23,245 25,366 28,213 25,593
11/30/2005 24,439 26,664 29,465 26,829
12/31/2005 24,935 27,208 29,769 26,891
1/31/2006 26,456 28,870 31,299 28,793
2/28/2006 26,201 28,595 31,261 28,769
3/31/2006 26,956 29,420 32,036 29,887
4/30/2006 27,443 29,958 32,261 29,992
- --------------------------------------------------------------------------------
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 opg expenses
can increase total return to shareholders. Without these reduc the Fund's
returns would have been lower.
Performance shown for the Class A, Class B and Class C shares of the WELLS
FARGO ADVANTAGE COMMON STOCK FUND for periods prior to April 11, 2005, reflects
the performance of the Class A, Class B and Class C shares, respectively, of the
Strong Advisor Common Stock Fund, its predecessor fund. Performance shown for
the Class A shares for periods prior to November 30, 2000, reflects the
performance of the Class Z shares, adjusted to reflect Class A sales charges and
expenses. Performance shown for Class B shares for periods prior to November 30,
2000, reflects the performance of the Class Z shares, adjusted to reflect Class
B sales charges and expenses. Performance shown for Class C shares for periods
prior to November 30, 2000, reflects the performance of the Class Z shares,
adjusted to reflect Class C sales charges and expenses. Performance shown for
the Class Z shares of the WELLS FARGO ADVANTAGE COMMON STOCK FUND for periods
prior to April 11, 2005, reflects the performance of the Class Z shares of the
Strong Advisor Common Stock Fund, its predecessor fund.
2 The Russell 2500(TM) Index measures performance of the 2,500 smallest
companies in the Russell 3000(R) Index, which represents approximately 17% of
the total market capitalization of the Russell 3000(R) Index. The Fund has
selected the Russell 2500(TM) Index to replace the Russell Midcap(R) Index as
its benchmark index going forward because the Russell 2500(TM) Index is more
representative of the breadth of the Fund's holdings. You cannot invest directly
in an Index.
3 The Russell Midcap(R) Index measures the performance of the 800 smallest
companies in the Russell 1000(R) Index, which represent approximately 25% of the
total market capitalization of the Russell 1000(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 securities divided by total market value of the Fund.
6 The chart compares the performance of the WELLS FARGO ADVANTAGE COMMON STOCK
FUND Class A and Class Z shares for the most recent ten years with the Russell
2500(TM) Index and the Russell Midcap(R) Index. The chart assumes a hypothetical
investment of $10,000 in Class A and Class Z shares and reflects all operating
expenses and, for Class A shares, assumes the maximum initial sales charge of
5.75%.
5
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE MID CAP GROWTH FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The WELLS FARGO ADVANTAGE MID CAP GROWTH FUND (the Fund) seeks long-term
capital appreciation.
ADVISER SUBADVISER
Wells Fargo Funds Management, Wells Capital Management Incorporated
LLC
FUND MANAGERS FUND INCEPTION DATE
Jerome "Cam" Philpott, CFA 12/30/1994
Stuart Roberts
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Class A shares returned 20.02% 1 (excluding sales charge) for
the six-month period that ended April 30, 2006, outperforming its benchmark, the
Russell Midcap(R) Growth Index 2, which returned 15.18%. In addition, the Fund
outperformed the Russell 2000(R) Index 3, which returned 18.91% 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. 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.
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?
- --------------------------------------------------------------------------------
Holdings in industrials, consumer discretionary, and information
technology sectors helped the Fund's strong performance. Industrials benefited
from positive overall performance, and good stock selection within industrials
contributed to returns during the period. Monster Worldwide, a global online
employment company, was a solid contributor in the information technology
portion of the Fund's portfolio. Monster performed well after posting strong
operating results during the fourth quarter of 2005. Wesco International, an
electrical distributor, reported earnings significantly above expectations. We
believe Wesco will continue to benefit from accelerated growth in
non-residential construction, rebuilding efforts from the hurricanes in the Gulf
Coast states, and accretive acquisition opportunities. Terex Corporation,
another positive performer and a manufacturer of construction equipment,
benefited from strong trends in non-residential construction and mining.
The consumer discretionary sector was the second best performing sector
for the Fund and good stock selection helped performance. Coldwater Creek, a
rapidly growing woman's specialty retailer, performed positively during the
period and the shares were sold after they reached their price target. Stocks
such as Station Casinos, GameStop, and Education Management also aided
performance. The Fund's holdings in information technology benefited positively
from a couple of key stocks, including Alliance Data Systems, Integrated Device
Technology, and Wright Express.
WHAT CHANGES DID YOU MAKE TO THE FUND'S HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
Significant changes were made by adding to the Fund's holdings in
information technology and the consumer discretionary sectors. Information
technology positions in Integrated Device Technology and Quest Software were
increased due to good performance. Two of the names added in the consumer
discretionary sector were Hilton Hotels and Harrah's Entertainment. We made
reductions in telecommunication services selling out of Nextel, and we also
reduced utilities after taking profits on some of the Fund's holdings in these
two areas.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
The mid cap growth area of the market seems to be moving from a strong
performance period to what may become a pause or slowdown in performance.
Nevertheless, there are signs that recent advances in equity prices have been
driven primarily by strong fundamentals. This observation is encouraging to us.
We have seen investor sentiment improve in 2006 and companies rewarded for good
earnings, which was not always the case in 2005.
Our regular discussions with company management teams and industry sources
suggest favorable fundamentals, which we feel will translate into future equity
price performance. Naturally, we will continue to monitor potential headwinds to
this fundamental backdrop and adjust the Fund's portfolio as needed. The Fund's
investment discipline and process remain unchanged. We continue to focus on
companies with positive fundamentals combined with attractive valuations and
remain optimistic about the Fund's potential for future performance.
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. 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 April 30, 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 MID CAP 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. (CONTINUED)
6
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge
---------------------------------- ----------------------------------
6-Months* 1-Year 5-Year 10-Year 6-Months* 1-Year 5-Year 10-Year
- -------------------------------------------------------------------------------------------------------------------------------
Mid Cap Growth Fund - Class A (Incept. Date 12/30/1994) 13.12 27.09 3.66 7.27 20.02 34.84 4.90 7.90
- -------------------------------------------------------------------------------------------------------------------------------
Mid Cap Growth Fund - Class B (Incept. Date 06/09/2003) 14.47 28.88 3.77 7.10 19.47 33.88 4.12 7.10
- -------------------------------------------------------------------------------------------------------------------------------
Mid Cap Growth Fund - Class C (Incept. Date 06/09/2003) 18.47 32.88 4.12 7.10 19.47 33.88 4.12 7.10
- -------------------------------------------------------------------------------------------------------------------------------
Mid Cap Growth Fund - Class Z (Incept. Date 04/11/2005) 19.70 34.48 4.74 7.76
- -------------------------------------------------------------------------------------------------------------------------------
Benchmarks
- -------------------------------------------------------------------------------------------------------------------------------
Russell Midcap(R) Growth Index 2 15.18 28.27 5.77 8.92
- -------------------------------------------------------------------------------------------------------------------------------
Russell 2000(R) Index 3 18.91 33.47 10.90 9.58
- -------------------------------------------------------------------------------------------------------------------------------
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FUND CHARACTERISTICS 4 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
Beta** 1.00
- --------------------------------------------------------------------------------
Price to Earnings (trailing 12 months) 30.20x
- --------------------------------------------------------------------------------
Price to Book Ratio 4.08x
- --------------------------------------------------------------------------------
Median Market Cap. ($B) $ 4.05
- --------------------------------------------------------------------------------
Portfolio Turnover*** 67%
- --------------------------------------------------------------------------------
** A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE RUSSELL
MIDCAP(R) GROWTH INDEX BETA IS 1.00 BY DEFINITION.
*** THIS MEASURE IS BASED ON SIX MONTHS OF THE FUND'S ACTIVITY.
SECTOR DISTRIBUTION 4 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Discretionary (20%)
Consumer Staples (1%)
Energy (5%)
Financials (5%)
Health Care (21%)
Industrials (22%)
Information Technology (21%)
Telecommunication Services (5%)
TEN LARGEST EQUITY HOLDINGS 4,5 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
NII Holdings Incorporated 4.11%
- --------------------------------------------------------------------------------
ValueClick Incorporated 3.12%
- --------------------------------------------------------------------------------
Hilton Hotels Corporation 2.91%
- --------------------------------------------------------------------------------
Resources Connection Incorporated 2.79%
- --------------------------------------------------------------------------------
Terex Corporation 2.77%
- --------------------------------------------------------------------------------
Alliance Data Systems Corporation 2.61%
- --------------------------------------------------------------------------------
Quest Software Incorporated 2.37%
- --------------------------------------------------------------------------------
Integrated Device Technology Incorporated 2.23%
- --------------------------------------------------------------------------------
Monster Worldwide Incorporated 2.08%
- --------------------------------------------------------------------------------
Harrah's Entertainment Incorporated 1.85%
GROWTH OF $10,000 INVESTMENT 6 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
WELLS FARGO ADVANTAGE MID CAP
DATE GROWTH FUND - Class A Russell 2000(R) Index Russell Midcap(R) Growth Index
---- ----------------------------- --------------------- ------------------------------
4/30/1996 9,425 10,000 10,000
5/31/1996 10,119 10,394 10,204
6/30/1996 9,586 9,967 9,896
7/31/1996 8,602 9,097 9,128
8/31/1996 8,995 9,625 9,621
9/30/1996 9,317 10,002 10,232
10/31/1996 9,292 9,848 10,112
11/30/1996 9,497 10,253 10,708
12/31/1996 9,792 10,522 10,527
1/31/1997 10,232 10,732 10,993
2/28/1997 9,636 10,473 10,751
3/31/1997 9,259 9,978 10,144
4/30/1997 9,224 10,006 10,392
5/31/1997 10,267 11,120 11,323
6/30/1997 11,002 11,597 11,637
7/31/1997 11,616 12,136 12,750
8/31/1997 12,183 12,414 12,626
9/30/1997 13,046 13,323 13,265
10/31/1997 12,623 12,738 12,601
11/30/1997 12,403 12,655 12,733
12/31/1997 12,441 12,877 12,901
1/31/1998 12,477 12,673 12,668
2/28/1998 13,445 13,610 13,859
3/31/1998 14,015 14,171 14,440
4/30/1998 14,009 14,248 14,636
5/31/1998 13,458 13,480 14,034
6/30/1998 13,396 13,509 14,431
7/31/1998 12,471 12,415 13,813
8/31/1998 10,597 10,004 11,177
9/30/1998 11,087 10,787 12,022
10/31/1998 11,816 11,227 12,907
11/30/1998 12,496 11,815 13,778
12/31/1998 13,428 12,547 15,205
1/31/1999 12,773 12,714 15,661
2/28/1999 11,605 11,684 14,895
3/31/1999 11,664 11,866 15,725
4/30/1999 12,254 12,929 16,441
5/31/1999 12,060 13,118 16,230
6/30/1999 12,851 13,711 17,363
7/31/1999 12,449 13,335 16,810
8/31/1999 11,904 12,842 16,635
9/30/1999 12,027 12,844 16,493
10/31/1999 12,592 12,897 17,769
11/30/1999 13,818 13,667 19,609
12/31/1999 15,958 15,214 23,004
1/31/2000 15,169 14,969 23,000
2/29/2000 17,365 17,441 27,835
3/31/2000 17,984 16,291 27,863
4/30/2000 17,070 15,311 25,159
5/31/2000 16,289 14,418 23,325
6/30/2000 18,308 15,675 25,800
7/31/2000 17,519 15,170 24,166
8/31/2000 20,459 16,328 27,810
9/30/2000 19,870 15,848 26,451
10/31/2000 18,971 15,141 24,640
11/30/2000 16,554 13,586 19,286
12/31/2000 18,288 14,753 20,301
1/31/2001 18,144 15,522 21,461
2/28/2001 15,945 14,504 17,749
3/31/2001 14,299 13,794 15,209
4/30/2001 15,879 14,873 17,744
5/31/2001 16,211 15,239 17,660
6/30/2001 16,155 15,765 17,670
7/31/2001 15,293 14,912 16,478
8/31/2001 14,409 14,430 15,284
9/30/2001 12,608 12,488 12,758
10/31/2001 12,630 13,218 14,099
11/30/2001 13,382 14,241 15,617
12/31/2001 13,911 15,120 16,210
1/31/2002 13,151 14,963 15,684
2/28/2002 12,759 14,553 14,795
3/31/2002 13,653 15,723 15,924
4/30/2002 13,371 15,866 15,081
5/31/2002 12,673 15,162 14,631
6/30/2002 11,876 14,410 13,016
7/31/2002 10,467 12,234 11,752
8/31/2002 10,516 12,203 11,711
9/30/2002 9,903 11,327 10,780
10/31/2002 10,246 11,691 11,615
11/30/2002 10,687 12,733 12,525
12/31/2002 9,940 12,024 11,768
1/31/2003 9,780 11,691 11,652
2/28/2003 9,609 11,338 11,551
3/31/2003 9,891 11,484 11,766
4/30/2003 10,749 12,573 12,567
5/31/2003 11,558 13,922 13,777
6/30/2003 11,753 14,174 13,973
7/31/2003 12,147 15,061 14,472
8/31/2003 12,861 15,751 15,270
9/30/2003 12,541 15,460 14,974
10/31/2003 13,502 16,758 16,180
11/30/2003 13,773 17,353 16,613
12/31/2003 13,724 17,706 16,795
1/31/2004 14,487 18,474 17,349
2/29/2004 14,783 18,640 17,640
3/31/2004 15,103 18,814 17,606
4/30/2004 14,438 17,854 17,110
5/31/2004 14,931 18,138 17,514
6/30/2004 15,202 18,902 17,792
7/31/2004 13,921 17,630 16,614
8/31/2004 13,551 17,540 16,410
9/30/2004 14,389 18,362 17,022
10/31/2004 15,029 18,724 17,599
11/30/2004 15,571 20,347 18,507
12/31/2004 16,672 20,950 19,394
1/31/2005 16,250 20,076 18,875
2/28/2005 15,881 20,415 19,353
3/31/2005 15,775 19,831 19,070
4/30/2005 14,957 18,695 18,315
5/31/2005 15,854 19,920 19,364
6/30/2005 16,276 20,688 19,724
7/31/2005 16,989 22,000 20,874
8/31/2005 16,857 21,593 20,747
9/30/2005 17,147 21,660 21,014
10/31/2005 16,804 20,986 20,397
11/30/2005 17,622 22,005 21,503
12/31/2005 17,612 21,905 21,739
1/31/2006 18,732 23,869 23,041
2/28/2006 19,048 23,803 22,757
3/31/2006 19,767 24,958 23,393
4/30/2006 20,169 24,954 23,492
- --------------------------------------------------------------------------------
Prior to April 11, 2005, the WELLS FARGO ADVANTAGE MID CAP GROWTH FUND was
named the Wells Fargo Montgomery Mid Cap Growth Fund. Performance shown for
Class A, Class B, and Class C shares of the Fund for the periods prior to June
9, 2003, reflects the performance of the Class R shares of the Montgomery Mid
Cap Growth Fund, its predecessor fund, adjusted to reflect each class'respective
sales charges and expenses. Performance shown for Class Z shares of the Fund for
periods prior to April 11, 2005, reflects the performance of the Class A shares
of the Fund and includes fees and expenses that are not applicable to and are
lower than those of the Class Z shares.
2 The Russell Midcap(R) Growth Index measures the performance of those Russell
Midcap companies with higher price-to-book ratios and higher forecasted growth
values. The stocks are also members of the Russell 1000(R) Index. The Fund has
selected the Russell Midcap(R) Growth Index to replace the Russell 2000(R) Index
as its benchmark index going forward because the Russell Midcap(R) Growth Index
is more representative of the breadth of the Fund's holdings. You cannot invest
directly in an Index.
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 securities divided by total market value of the Fund.
6 The chart compares the performance of the WELLS FARGO ADVANTAGE MID CAP GROWTH
FUND Class A for the most recent ten years with the Russell Midcap(R) Growth
Index and the Russell 2000(R) Index. The chart assumes a hypothetical investment
of $10,000 in Class A shares and reflects all operating expenses and, for Class
A shares, assumes the maximum initial sales charge of 5.75%.
7
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE SMALL CAP GROWTH FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The WELLS FARGO ADVANTAGE SMALL CAP GROWTH FUND (the Fund) seeks long-term
capital appreciation.
ADVISER SUBADVISER
Wells Fargo Funds Management, Wells Capital Management Incorporated
LLC
FUND MANAGERS FUND INCEPTION DATE
Jerome "Cam" Philpott, CFA 07/13/1990
Stuart Roberts
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Class A shares returned 26.03% 1 (excluding sales charge) for
the six-month period that ended April 30, 2006, outperforming its benchmark, the
Russell 2000(R) Growth Index 2, which returned 20.31%. In addition, the Fund
outperformed the Russell 2000(R) Index 3, which returned 18.91% 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. CLASS Z, ADMINISTRATOR CLASS 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.
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?
- --------------------------------------------------------------------------------
Holdings in information technology, industrials, and consumer
discretionary sectors helped performance. Information technology was generally
strong and holdings in this sector helped the Fund's portfolio. Industrials also
benefited from overall strong performance, and positive stock selection within
industrials contributed to Fund performance.
Top performers in industrials included Wesco International, Gardner
Denver, and Hughes Supply. Wesco, an electrical distributor, reported earnings
above our expectations. The company continued to benefit from accelerated growth
in non-residential construction, rebuilding efforts in the Gulf Coast states,
and accretive acquisition opportunities. Gardner Denver posted outstanding
earnings results. Hughes Supply did well, but was acquired by Home Depot, so the
position was liquidated.
In the consumer discretionary sector, good stock selection contributed
positively to performance. Examples included Provide Commerce Inc.,
Priceline.com Inc., Orient Express Hotels Ltd., and GameStop Corp. Online travel
company, Priceline.com, was a strong contributor to the Fund's performance as
international market growth accelerated and domestic growth stabilized. Holdings
in utilities and the consumer staples sectors were the Fund's biggest
detractors.
WHAT CHANGES DID YOU MAKE TO THE FUND'S HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
Significant changes were made by adding to the Fund's holdings in energy,
information technology, and health care. Current holdings in the energy sector
consisting of Goodrich Petroleum and Tetra Technologies were increased.
Information technology saw additions in Quest Software and Integrated Device
Technologies. We made reductions in consumer discretionary and telecommunication
services after taking profits on some of the Fund's holdings in these two areas.
In the consumer discretionary sector, the Fund sold its holdings in Children's
Place, Marvel Entertainment, and Provide Commerce.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
The small cap growth area of the market seems to be moving from a strong
performance period to what may become a pause or slowdown in performance.
Nevertheless, there are signs that recent advances in equity prices have been
driven primarily by strong fundamentals. This observation is encouraging to us.
We have seen investor sentiment improve in 2006 and companies rewarded for good
earnings, which was not always the case in 2005.
Our regular discussions with company management teams and industry sources
suggest favorable fundamentals, which we feel will translate into future equity
price performance. Naturally, we will continue to monitor potential headwinds to
this fundamental backdrop and adjust the Fund's portfolio as needed. The Fund's
investment discipline and process remain unchanged. We continue to focus on
companies with positive fundamentals combined with attractive valuations and
remain optimistic about the Fund's potential for future performance.
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. 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 April 30, 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 CAP 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.
Prior to April 11, 2005, the WELLS FARGO ADVANTAGE SMALL CAP GROWTH FUND
was named the Wells Fargo Montgomery Small Cap Fund. Performance shown for Class
A, Class B, and Class C shares of the Fund for the periods prior to June 9,
2003, reflects the performance of the Class R shares of the Montgomery Small Cap
Fund, its predecessor fund, adjusted to reflect each class'respective sales
charges and expenses. Performance shown for Institutional Class shares of the
Fund for periods prior to April 11, 2005, reflects the performance of the Class
A shares of the Fund and includes fees and expenses that are not applicable to
and are higher than those of the Institutional Class shares. Performance shown
for Class Z shares of the Fund prior for periods to April 11, 2005, reflects the
performance of the Class A shares of the Fund and includes fees and expenses
that are not applicable to and are lower than those of the Class Z shares. Prior
to April 11, 2005, the Administrator Class was named the Institutional Class.
Performance shown for the Administrator Class shares for periods prior to June
9, 2003, reflects the performance of the Class R shares of the Montgomery Small
Cap Fund, its predecessor fund, and includes fees and expenses that are not
applicable to the Administrator Class shares.
8
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge
---------------------------------- ----------------------------------
6-Months* 1-Year 5-Year 10-Year 6-Months* 1-Year 5-Year 10-Year
- -------------------------------------------------------------------------------------------------------------------------------
Small Cap Growth Fund - Class A
(Incept. Date 07/13/1990) 18.78 37.38 5.74 5.44 26.03 45.76 7.00 6.07
- -------------------------------------------------------------------------------------------------------------------------------
Small Cap Growth Fund - Class B
(Incept. Date 06/09/2003) 20.56 39.80 5.89 5.28 25.56 44.80 6.20 5.28
- -------------------------------------------------------------------------------------------------------------------------------
Small Cap Growth Fund - Class C
(Incept. Date 06/09/2003) 24.63 43.86 6.23 5.30 25.63 44.86 6.23 5.30
- -------------------------------------------------------------------------------------------------------------------------------
Small Cap Growth Fund - Class Z
(Incept. Date 04/11/2005) 25.97 45.57 6.83 5.90
- -------------------------------------------------------------------------------------------------------------------------------
Small Cap Growth Fund - Administrator Class
(Incept. Date 06/09/2003) 26.26 46.21 7.13 6.13
- -------------------------------------------------------------------------------------------------------------------------------
Small Cap Growth Fund - Institutional Class
(Incept. Date 04/11/2005) 26.39 46.46 7.11 6.12
- -------------------------------------------------------------------------------------------------------------------------------
Benchmarks
- -------------------------------------------------------------------------------------------------------------------------------
Russell 2000(R) Growth Index 2 20.31 36.13 6.05 4.70
- -------------------------------------------------------------------------------------------------------------------------------
Russell 2000(R) Index 3 18.91 33.47 10.90 9.58
- -------------------------------------------------------------------------------------------------------------------------------
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FUND CHARACTERISTICS 4 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
Beta** 0.92
- --------------------------------------------------------------------------------
Price to Earnings (trailing 12 months) 40.10x
- --------------------------------------------------------------------------------
Price to Book Ratio 3.81x
- --------------------------------------------------------------------------------
Median Market Cap. ($B) $ 1.11
- --------------------------------------------------------------------------------
Portfolio Turnover*** 75%
- --------------------------------------------------------------------------------
**A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE RUSSELL 2000(R)
GROWTH INDEX BETA IS 1.00 BY DEFINITION.
*** THIS MEASURE IS BASED ON SIX MONTHS OF THE FUND'S ACTIVITY.
SECTOR DISTRIBUTION 4 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Discretionary (19%)
Energy (4%)
Financials (6%)
Health Care (20%)
Industrials (22%)
Information Technology (27%)
Telecommunication Services (2%)
TEN LARGEST EQUITY HOLDINGS 4,5 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
ValueClick Incorporated 3.01%
- --------------------------------------------------------------------------------
Resources Connection Incorporated 2.91%
- --------------------------------------------------------------------------------
WebEx Communications Incorporated 2.88%
- --------------------------------------------------------------------------------
Gardner Denver Incorporated 2.33%
- --------------------------------------------------------------------------------
Quest Software Incorporated 2.25%
- --------------------------------------------------------------------------------
Integrated Device Technology Incorporated 2.08%
- --------------------------------------------------------------------------------
Orient Express Hotels Limited Class A 2.02%
- --------------------------------------------------------------------------------
Wright Express Corporation 1.81%
- --------------------------------------------------------------------------------
Gaylord Entertainment Company 1.69%
- --------------------------------------------------------------------------------
Priceline.com Incorporated 1.61%
GROWTH OF $10,000 INVESTMENT 6 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
WELLS FARGO ADVANTAGE WELLS FARGO ADVANTAGE
SMALL CAP GROWTH FUND - SMALL CAP GROWTH FUND -
DATE Class A Administrator Class Russell 2000 Growth(R) Index Russell 2000(R) Index
---- ----------------------- ----------------------- ---------------------------- ---------------------
4/30/1996 9,425 10,000 10,000 10,000
5/31/1996 9,967 10,575 10,513 10,394
6/30/1996 9,649 10,238 9,830 9,967
7/31/1996 8,968 9,515 8,629 9,097
8/31/1996 9,309 9,876 9,268 9,625
9/30/1996 9,801 10,399 9,745 10,002
10/31/1996 9,588 10,173 9,325 9,848
11/30/1996 9,839 10,439 9,585 10,253
12/31/1996 9,715 10,307 9,771 10,522
1/31/1997 9,899 10,503 10,016 10,732
2/28/1997 9,335 9,904 9,411 10,473
3/31/1997 8,580 9,103 8,746 9,978
4/30/1997 8,368 8,879 8,645 10,006
5/31/1997 9,667 10,257 9,944 11,120
6/30/1997 10,306 10,935 10,281 11,597
7/31/1997 10,882 11,545 10,808 12,136
8/31/1997 10,950 11,618 11,132 12,414
9/30/1997 12,085 12,823 12,020 13,323
10/31/1997 11,726 12,442 11,298 12,738
11/30/1997 11,647 12,358 11,029 12,655
12/31/1997 12,033 12,767 11,036 12,877
1/31/1998 11,481 12,182 10,889 12,673
2/28/1998 12,731 13,508 11,850 13,610
3/31/1998 13,448 14,268 12,347 14,171
4/30/1998 13,289 14,099 12,422 14,248
5/31/1998 12,351 13,105 11,519 13,480
6/30/1998 12,701 13,475 11,637 13,509
7/31/1998 11,573 12,279 10,665 12,415
8/31/1998 8,443 8,958 8,203 10,004
9/30/1998 8,590 9,114 9,035 10,787
10/31/1998 9,147 9,705 9,507 11,227
11/30/1998 9,999 10,609 10,245 11,815
12/31/1998 11,079 11,755 11,172 12,547
1/31/1999 11,145 11,825 11,675 12,714
2/28/1999 10,182 10,803 10,606 11,684
3/31/1999 10,388 11,022 10,984 11,866
4/30/1999 11,050 11,724 11,954 12,929
5/31/1999 11,116 11,794 11,973 13,118
6/30/1999 12,174 12,917 12,604 13,711
7/31/1999 12,204 12,948 12,214 13,335
8/31/1999 12,152 12,894 11,758 12,842
9/30/1999 11,719 12,433 11,985 12,844
10/31/1999 13,108 13,908 12,291 12,897
11/30/1999 14,078 14,937 13,591 13,667
12/31/1999 17,262 18,315 15,987 15,214
1/31/2000 17,005 18,042 15,838 14,969
2/29/2000 20,004 21,225 19,523 17,441
3/31/2000 18,637 19,774 17,471 16,291
4/30/2000 16,431 17,434 15,707 15,311
5/31/2000 14,013 14,867 14,331 14,418
6/30/2000 16,328 17,325 16,183 15,675
7/31/2000 15,174 16,100 14,796 15,170
8/31/2000 17,093 18,136 16,352 16,328
9/30/2000 16,821 17,847 15,539 15,848
10/31/2000 14,902 15,811 14,278 15,141
11/30/2000 12,189 12,933 11,685 13,586
12/31/2000 12,923 13,712 12,400 14,753
1/31/2001 12,826 13,608 13,403 15,522
2/28/2001 11,995 12,727 11,566 14,504
3/31/2001 11,143 11,823 10,514 13,794
4/30/2001 12,114 12,853 11,801 14,873
5/31/2001 12,632 13,402 12,075 15,239
6/30/2001 12,783 13,563 12,419 15,765
7/31/2001 12,039 12,773 11,360 14,912
8/31/2001 11,111 11,789 10,650 14,430
9/30/2001 9,687 10,278 8,931 12,488
10/31/2001 9,924 10,530 9,790 13,218
11/30/2001 10,701 11,354 10,607 14,241
12/31/2001 11,289 11,977 11,268 15,120
1/31/2002 10,461 11,099 10,867 14,963
2/28/2002 9,710 10,303 10,163 14,553
3/31/2002 10,657 11,307 11,047 15,723
4/30/2002 10,690 11,342 10,808 15,866
5/31/2002 9,917 10,522 10,176 15,162
6/30/2002 9,373 9,944 9,313 14,410
7/31/2002 8,045 8,535 7,882 12,234
8/31/2002 8,066 8,558 7,878 12,203
9/30/2002 7,805 8,281 7,309 11,327
10/31/2002 8,186 8,686 7,679 11,691
11/30/2002 8,534 9,055 8,440 12,733
12/31/2002 7,958 8,443 7,858 12,024
1/31/2003 7,729 8,200 7,644 11,691
2/28/2003 7,674 8,143 7,441 11,338
3/31/2003 7,805 8,281 7,553 11,484
4/30/2003 8,578 9,101 8,268 12,573
5/31/2003 9,362 9,933 9,200 13,922
6/30/2003 9,721 10,326 9,377 14,174
7/31/2003 10,200 10,822 10,086 15,061
8/31/2003 10,635 11,284 10,628 15,751
9/30/2003 10,276 10,903 10,359 15,460
10/31/2003 11,321 12,023 11,254 16,758
11/30/2003 11,691 12,416 11,620 17,353
12/31/2003 11,768 12,497 11,672 17,706
1/31/2004 12,453 13,225 12,286 18,474
2/29/2004 12,442 13,213 12,267 18,640
3/31/2004 12,802 13,594 12,324 18,814
4/30/2004 12,181 12,947 11,705 17,854
5/31/2004 12,660 13,456 11,938 18,138
6/30/2004 12,845 13,664 12,336 18,902
7/31/2004 11,376 12,093 11,228 17,630
8/31/2004 10,908 11,596 10,987 17,540
9/30/2004 11,615 12,358 11,594 18,362
10/31/2004 11,985 12,751 11,876 18,724
11/30/2004 12,530 13,329 12,880 20,347
12/31/2004 13,371 14,222 13,343 20,950
1/31/2005 12,796 13,623 12,741 20,076
2/28/2005 12,597 13,412 12,916 20,415
3/31/2005 12,332 13,130 12,432 19,831
4/30/2005 11,657 12,403 11,641 18,695
5/31/2005 12,387 13,189 12,462 19,920
6/30/2005 12,929 13,776 12,864 20,688
7/31/2005 13,803 14,703 13,764 22,000
8/31/2005 13,681 14,574 13,570 21,593
9/30/2005 13,858 14,773 13,677 21,660
10/31/2005 13,482 14,362 13,171 20,986
11/30/2005 14,400 15,348 13,916 22,005
12/31/2005 14,183 15,118 13,896 21,905
1/31/2006 15,254 16,267 15,236 23,869
2/28/2006 15,682 16,721 15,155 23,803
3/31/2006 16,599 17,693 15,891 24,958
4/30/2006 16,991 18,134 15,846 24,954
- --------------------------------------------------------------------------------
2 The Russell 2000(R) Growth Index measures the performance of those Russell
2000 companies with higher price-to-book ratios and higher forecasted growth
values. 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. You cannot invest directly in an Index.
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 securities divided by total market value of the Fund.
6 The chart compares the performance of the WELLS FARGO ADVANTAGE SMALL CAP
GROWTH FUND Class A and Administrator Class shares for the most recent ten years
with the Russell 2000(R) Growth Index and the 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%.
9
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE SMALL CAP OPPORTUNITIES FUND
THE FUND IS CLOSED TO NEW INVESTORS.
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The WELLS FARGO ADVANTAGE SMALL CAP OPPORTUNITIES FUND (the Fund) seeks
long-term capital appreciation.
ADVISER SUBADVISER
Wells Fargo Funds Management, LLC Schroder Investment Management North
America Inc.
FUND MANAGER FUND INCEPTION DATE
Jenny B. Jones 08/01/1993
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Administrator Class shares returned 20.16% 1 for the six-month
period that ended April 30, 2006, outperforming its benchmark, the Russell
2000(R) Index 2, which returned 18.91% 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. 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.
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?
- --------------------------------------------------------------------------------
The period was robust for small cap stocks. With the economic news
generally positive and the Federal Reserve Board (the Fed) indicating a
potential pause in interest rate hikes, investors bid up prices.
The Fund's outperformance of its benchmark was primarily the result of
strong stock selection within several sectors, including health care, energy,
and technology. At the stock level, RSA Security Inc. was the strongest
contributor to the Fund's performance. The company issued strong earnings and
won a key contract to supply its user authentication (data protection) package.
Diversa Corporation, a healthcare company, was also a strong contributor,
especially after the company announced that it had formed a broad alliance with
BASF, a chemical company, to develop new products.
Stock selection within the financial services and consumer discretionary
sectors hurt performance. In financial services, two of the Fund's largest
holdings were Max Re Capital and Reinsurance Group of America Incorporated; both
stocks failed to meet expectations. Max Re reported a loss in the fourth quarter
of 2005. Reinsurance Group did not meet earnings expectations for 2005.
WHAT CHANGES DID YOU MAKE TO THE FUND'S HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
We made several changes, which is typical given our bottom-up,
opportunistic approach to stock selection. Stock selection typically drives the
Fund's over- or underweighted position in any sector and tends to be the most
important contributing factor to performance. We invest in three distinct
company types: Approximately 50% to 60% of the Fund's portfolio is invested in
mispriced growth opportunities which include companies that exhibit solid top
and bottom line growth that we believe is not fully reflected in the price.
Approximately 20% to 30% of the portfolio is invested in "steady eddies," or
companies that we believe have stable and dependable earnings and revenue
characteristics. Generally, the remaining 20% to 30% of the portfolio is
directed toward turnarounds, which include companies out-of-favor in the market,
but that we believe have the potential for improvement.
A good example of a growth company added by the Fund that we believe is
mispriced is Euronet Worldwide, an electronic transaction processing company,
which specializes in high-growth, "un-banked," retail financial services
products, mainly in emerging markets. In the long term, we believe that Euronet
could be viewed as an attractive acquisition target by a larger financial
services company. We also added a "steady eddie" company, Flowers Foods Inc., a
regional bakery product manufacturer that is gaining market share and expanding
geographically in an industry that is consolidating.
The Fund sold several stocks during the period, including Crown Castle
International Corporation, a company that owns, operates, and leases towers for
wireless communications. Crown Castle's market cap became too big, so we
replaced it with SBA Communications, a smaller company that we believe has a
better growth profile. The Fund also sold Forest Oil Corporation, an energy
company, because of its strong stock price appreciation and our belief that it
would underperform in an environment in which its margins would likely get
squeezed.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
We think that the U.S. economy is in good shape, supported by solid Gross
Domestic Product data, payroll growth, consumer confidence, and productivity
gains. Uncertainties include the generally high levels of housing prices and
inventories of unsold homes. This situation could eventually dampen the
consumer's feeling of well being as home equity levels decline. Additionally,
energy prices remain high and may reduce the amount of discretionary income
available to consumers.
Valuation levels remain challenging for smaller companies, especially on
the heels of such strong first-quarter performance. Nevertheless, we think that
our fundamental-based research process will continue to identify stocks that are
selling at discounts to their fair values in a market that may reward individual
stock selection over broad sector or industry allocation.
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. 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.
10
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
6-Months* 1-Year 5-Year 10-Year
- ---------------------------------------------------------------------------------------------------------------------
Small Cap Opportunities Fund - Administrator Class (Incept. Date 08/01/1993) 20.16 32.40 13.63 13.53
- ---------------------------------------------------------------------------------------------------------------------
Benchmark
- ---------------------------------------------------------------------------------------------------------------------
Russell 2000(R) Index 2 18.91 33.47 10.90 9.58
- ---------------------------------------------------------------------------------------------------------------------
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FUND CHARACTERISTICS 3 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
Beta** 0.82
- --------------------------------------------------------------------------------
Price to Earnings (trailing 12 months) 31.00x
- --------------------------------------------------------------------------------
Price to Book Ratio 2.72x
- --------------------------------------------------------------------------------
Median Market Cap. ($B) $ 1.32
- --------------------------------------------------------------------------------
Portfolio Turnover*** 39%
- --------------------------------------------------------------------------------
** 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 APRIL 30, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Telecommunication Services (2%)
Consumer Discretionary (11%)
Consumer Staples (2%)
Energy (8%)
Financials (15%)
Health Care (16%)
Industrials (15%)
Information Technology (23%)
Materials (6%)
Utilities (2%)
TEN LARGEST EQUITY HOLDINGS 3,4 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
Scientific Games Corporation Class A 2.62%
- --------------------------------------------------------------------------------
Conseco Incorporated 2.43%
- --------------------------------------------------------------------------------
RSA Security Incorporated 2.41%
- --------------------------------------------------------------------------------
Max Re Capital Limited 2.01%
- --------------------------------------------------------------------------------
Reinsurance Group Of America Incorporated 1.87%
- --------------------------------------------------------------------------------
Dresser Rand Group Incorporated 1.31%
- --------------------------------------------------------------------------------
Informatica Corporation 1.28%
- --------------------------------------------------------------------------------
Rightnow Technologies Incorporated 1.27%
- --------------------------------------------------------------------------------
Volterra Semiconductor Corporation 1.26%
- --------------------------------------------------------------------------------
Claire's Stores Incorporated 1.24%
GROWTH OF $10,000 INVESTMENT 5 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
WELLS FARGO ADVANTAGE
SMALL CAP OPPORTUNITIES
FUND - Administrator Class Russell 2000(R) Index
-------------------------- ---------------------
4/30/1996 10,000 10,000
5/31/1996 10,595 10,394
6/30/1996 10,244 9,967
7/31/1996 9,471 9,097
8/31/1996 9,762 9,625
9/30/1996 10,321 10,002
10/31/1996 10,250 9,848
11/30/1996 10,589 10,253
12/31/1996 10,710 10,522
1/31/1997 10,930 10,732
2/28/1997 10,930 10,473
3/31/1997 10,526 9,978
4/30/1997 10,561 10,006
5/31/1997 11,805 11,120
6/30/1997 12,489 11,597
7/31/1997 13,090 12,136
8/31/1997 13,376 12,414
9/30/1997 14,292 13,323
10/31/1997 13,637 12,738
11/30/1997 13,536 12,655
12/31/1997 13,646 12,877
1/31/1998 13,366 12,673
2/28/1998 14,268 13,610
3/31/1998 15,152 14,171
4/30/1998 15,171 14,248
5/31/1998 14,396 13,480
6/30/1998 14,415 13,509
7/31/1998 13,421 12,415
8/31/1998 10,787 10,004
9/30/1998 11,061 10,787
10/31/1998 11,470 11,227
11/30/1998 12,159 11,815
12/31/1998 12,369 12,547
1/31/1999 12,124 12,714
2/28/1999 11,343 11,684
3/31/1999 11,349 11,866
4/30/1999 12,106 12,929
5/31/1999 12,521 13,118
6/30/1999 13,345 13,711
7/31/1999 13,150 13,335
8/31/1999 12,472 12,842
9/30/1999 12,515 12,844
10/31/1999 12,552 12,897
11/30/1999 13,254 13,667
12/31/1999 14,078 15,214
1/31/2000 13,962 14,969
2/29/2000 15,030 17,441
3/31/2000 16,673 16,291
4/30/2000 16,679 15,311
5/31/2000 16,007 14,418
6/30/2000 17,008 15,675
7/31/2000 16,838 15,170
8/31/2000 18,571 16,328
9/30/2000 18,297 15,848
10/31/2000 17,662 15,141
11/30/2000 16,642 13,586
12/31/2000 18,429 14,753
1/31/2001 18,769 15,522
2/28/2001 18,129 14,504
3/31/2001 17,496 13,794
4/30/2001 18,769 14,873
5/31/2001 19,516 15,239
6/30/2001 19,943 15,765
7/31/2001 19,750 14,912
8/31/2001 19,323 14,430
9/30/2001 17,663 12,488
10/31/2001 18,303 13,218
11/30/2001 19,510 14,241
12/31/2001 20,814 15,120
1/31/2002 20,527 14,963
2/28/2002 20,127 14,553
3/31/2002 21,341 15,723
4/30/2002 21,207 15,866
5/31/2002 20,765 15,162
6/30/2002 19,292 14,410
7/31/2002 17,067 12,234
8/31/2002 17,207 12,203
9/30/2002 15,930 11,327
10/31/2002 16,604 11,691
11/30/2002 17,699 12,733
12/31/2002 16,872 12,024
1/31/2003 16,583 11,691
2/28/2003 15,952 11,338
3/31/2003 16,093 11,484
4/30/2003 16,850 12,573
5/31/2003 18,416 13,922
6/30/2003 18,921 14,174
7/31/2003 19,960 15,061
8/31/2003 20,992 15,751
9/30/2003 20,465 15,460
10/31/2003 21,883 16,758
11/30/2003 22,588 17,353
12/31/2003 23,097 17,706
1/31/2004 24,277 18,474
2/29/2004 24,737 18,640
3/31/2004 24,936 18,814
4/30/2004 24,652 17,854
5/31/2004 24,806 18,138
6/30/2004 25,434 18,902
7/31/2004 24,170 17,630
8/31/2004 24,499 17,540
9/30/2004 25,633 18,362
10/31/2004 26,552 18,724
11/30/2004 28,360 20,347
12/31/2004 29,064 20,950
1/31/2005 28,236 20,076
2/28/2005 28,654 20,415
3/31/2005 28,027 19,831
4/30/2005 26,859 18,695
5/31/2005 28,096 19,920
6/30/2005 29,090 20,688
7/31/2005 30,310 22,000
8/31/2005 30,083 21,593
9/30/2005 30,441 21,660
10/31/2005 29,595 20,986
11/30/2005 31,059 22,005
12/31/2005 30,913 21,905
1/31/2006 33,633 23,869
2/28/2006 33,623 23,803
3/31/2006 35,157 24,958
4/30/2006 35,562 24,954
- --------------------------------------------------------------------------------
The views expressed are as of April 30, 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 SMALL CAP OPPORTUNITIES 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.
Prior to April 11, 2005, the WELLS FARGO ADVANTAGE SMALL CAP OPPORTUNITIES
FUND - Administrator Class was named the Wells Fargo Small Cap Opportunities
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 Small Cap Opportunities
Fund, its predecessor fund.
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 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 securities divided by total market value of the Fund.
5 The chart compares the performance of the WELLS FARGO ADVANTAGE SMALL CAP
OPPORTUNITIES FUND Administrator Class shares for the most recent ten years with
the Russell 2000(R) Index. The chart assumes a hypothetical investment of
$10,000 in Administrator Class shares and reflects all operating expenses.
11
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE SMALL CAP VALUE FUND
THE FUND IS CLOSED TO NEW INVESTORS.
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The WELLS FARGO ADVANTAGE SMALL CAP VALUE FUND (the Fund) seeks long-term
capital appreciation.
ADVISER SUBADVISER
Wells Fargo Funds Management, LLC Wells Capital Management Incorporated
FUND MANAGER FUND INCEPTION DATE
I. Charles Rinaldi 12/31/1997
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Class A shares returned 16.68% 1 (excluding sales charge) for
the six-month period that ended April 30, 2006, underperforming its benchmark,
the Russell 2000(R) Value Index 2, which returned 17.52%. In addition, the Fund
underperformed the Russell 2000(R) Index 3, which returned 18.91% 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. 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.
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?
- --------------------------------------------------------------------------------
While Fund performance was positive, it underperformed its benchmark.
Financials and producer durable stocks detracted from performance and the
underweighted exposure to financials combined with weak stock selection also had
a negative impact. Insurance names held in the Fund hurt performance because
reinsurance holdings suffered from the effects of last year's hurricanes. The
Fund's portfolio remained underweighted in Real Estate Investment Trusts
(REITs), which also contributed to underperformance. The Fund's investment style
is focused on identifying undervalued stocks, and tends to shun the current high
valuations in REITs, especially with interest rates still moving upward.
Stock selection in materials and industrial processing contributed to Fund
performance. In materials, the best performers were steel, gold, and silver. In
industrials, the leaders were construction and cement, chemicals, and metal
fabricating. The Fund maintained an overweighted position in materials and
industrial processing because our research indicated that the underlying
companies remained strong contributors.
Energy stocks also contributed to the Fund's performance during the
period. Our investment team's fundamental research on oil well equipment,
servicing, crude oil, natural gas, drilling and coal-related companies proved to
show value over the long term. The recent six months saw continued strength from
most of the stocks we added to the portfolio. In the fall of 2005, we elected to
take the opportunity to reduce position sizes in companies in the crude oil
industry. The Fund is currently overweighted relative to its benchmark in the
energy sector.
Our stock selection in consumer stocks contributed positively to Fund
performance, with particular strength coming from commercial services stocks.
Restaurant holdings were flat or slightly weak during the period because we
believe that the focus on companies with improving fundamentals was not in
favor. Within the Fund's benchmarks, technology stocks were up during the same
period. Stocks with higher price-to-earnings ratios were strong in the first
three months of 2006, allowing the Fund's benchmark to perform well in
technology. We typically avoid higher price-to-earnings ratios and screen for
companies with lower price-to-earnings ratios because it is our belief that
stocks with extended valuations that lack strong fundamentals fail to perform
well in the long term.
WHAT CHANGES DID YOU MAKE TO THE FUND'S HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
We took gains from holdings in energy companies and moved slowly into
selected companies in financials and technology. Specifically, our investment
process identified quality valuations in property and casualty insurance
companies in niche markets. We believe that energy stocks in the Fund offer
value over the long term, however, we also strive to take profits and seek value
in other areas.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
We are cautious in the near term about the general stock market. Over the
long term, we believe that the asset class remains attractive as many small cap
names continue to be ignored and undervalued. We will continue to seek to take
advantage of inefficiencies within the small cap value asset class because we
believe that current markets reward active management and strong stock
selection. We remain focused on identifying investment opportunities in stocks
with quality management and strong fundamentals that we believe are attractively
valued.
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. 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 April 30, 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 SMALL CAP 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. (CONTINUED)
12
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge
---------------------------------- ----------------------------------
Life of Life of
6-Months* 1-Year 5-Year Fund 6-Months* 1-Year 5-Year Fund
- ---------------------------------------------------------------------------------------------------------------------------------
Small Cap Value Fund - Class A (Incept. Date 11/30/2000) 9.97 28.37 14.88 18.10 16.68 36.21 16.25 18.94
- ---------------------------------------------------------------------------------------------------------------------------------
Small Cap Value Fund - Class B (Incept. Date 11/30/2000) 11.27 30.26 15.15 18.24 16.27 35.26 15.37 18.24
- ---------------------------------------------------------------------------------------------------------------------------------
Small Cap Value Fund - Class C (Incept. Date 11/30/2000) 15.23 34.21 15.40 18.24 16.23 35.21 15.40 18.24
- ---------------------------------------------------------------------------------------------------------------------------------
Small Cap Value Fund - Class Z (Incept. Date 12/31/1997) 16.72 36.37 16.41 19.19
- ---------------------------------------------------------------------------------------------------------------------------------
Benchmarks
- ---------------------------------------------------------------------------------------------------------------------------------
Russell 2000(R) Value Index 2 17.52 30.85 15.25 11.25
- ---------------------------------------------------------------------------------------------------------------------------------
Russell 2000(R) Index 3 18.91 33.47 10.90 8.27
- ---------------------------------------------------------------------------------------------------------------------------------
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FUND CHARACTERISTICS 4 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
Beta** 1.04
- --------------------------------------------------------------------------------
Price to Earnings (trailing 12 months) 31.40x
- --------------------------------------------------------------------------------
Price to Book Ratio 2.69x
- --------------------------------------------------------------------------------
Median Market Cap. ($B) $ 1.03
- --------------------------------------------------------------------------------
Portfolio Turnover*** 17%
- --------------------------------------------------------------------------------
** A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE RUSSELL 2000(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 APRIL 30, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Telecommunication Services (1%)
Consumer Discretionary (5%)
Consumer Staples (1%)
Energy (32%)
Financials (4%)
Health Care (5%)
Industrials (14%)
Information Technology (11%)
Materials (27%)
TEN LARGEST EQUITY HOLDINGS 4,5 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
Global Industries Limited 5.49%
- --------------------------------------------------------------------------------
Range Resources Corporation 4.41%
- --------------------------------------------------------------------------------
Glamis Gold Limited 3.53%
- --------------------------------------------------------------------------------
Randgold Resources Limited ADR 3.48%
- --------------------------------------------------------------------------------
IPSCO Incorporated 2.73%
- --------------------------------------------------------------------------------
Chicago Bridge & Iron Company NV 2.72%
- --------------------------------------------------------------------------------
Apex Silver Mines Limited 2.41%
- --------------------------------------------------------------------------------
Key Energy Services Incorporated 2.33%
- --------------------------------------------------------------------------------
Steel Dynamics Incorporated 2.33%
- --------------------------------------------------------------------------------
United States Steel Corporation 2.12%
GROWTH OF $10,000 INVESTMENT 6 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
WELLS FARGO WELLS FARGO
ADVANTAGE ADVANTAGE
SMALL CAP SMALL CAP
VALUE FUND - VALUE FUND - Russell 2000(R) Russell 2000(R) Value
DATE Class A Class Z Index Index
- ---------- ------------ ------------ --------------- ---------------------
12/31/1997 9,425 10,000 10,000 10,000
1/31/1998 9,903 10,510 9,842 9,819
2/28/1998 10,692 11,350 10,569 10,413
3/31/1998 11,707 12,430 11,005 10,835
4/30/1998 12,241 13,000 11,065 10,889
5/31/1998 11,616 12,340 10,469 10,503
6/30/1998 11,039 11,730 10,491 10,444
7/31/1998 9,841 10,460 9,641 9,626
8/31/1998 7,731 8,220 7,769 8,118
9/30/1998 8,322 8,850 8,377 8,577
10/31/1998 8,865 9,430 8,719 8,831
11/30/1998 9,408 10,010 9,176 9,070
12/31/1998 9,970 10,610 9,744 9,355
1/31/1999 10,174 10,830 9,873 9,143
2/28/1999 9,298 9,900 9,074 8,518
3/31/1999 9,127 9,720 9,215 8,448
4/30/1999 10,486 11,170 10,041 9,219
5/31/1999 10,830 11,540 10,187 9,503
6/30/1999 11,475 12,230 10,648 9,847
7/31/1999 11,697 12,470 10,356 9,613
8/31/1999 11,516 12,280 9,973 9,262
9/30/1999 11,682 12,460 9,975 9,076
10/31/1999 11,023 11,760 10,016 8,895
11/30/1999 11,704 12,490 10,614 8,941
12/31/1999 12,732 13,590 11,815 9,216
1/31/2000 13,675 14,600 11,625 8,975
2/29/2000 15,020 16,040 13,544 9,523
3/31/2000 15,513 16,570 12,652 9,568
4/30/2000 14,947 15,970 11,890 9,624
5/31/2000 14,775 15,790 11,197 9,478
6/30/2000 14,837 15,860 12,173 9,755
7/31/2000 14,244 15,230 11,781 10,080
8/31/2000 15,717 16,810 12,680 10,530
9/30/2000 15,162 16,220 12,307 10,471
10/31/2000 14,971 16,020 11,759 10,433
11/30/2000 14,351 15,360 10,551 10,221
12/31/2000 16,042 17,170 11,457 11,319
1/31/2001 17,172 18,390 12,054 11,632
2/28/2001 17,284 18,520 11,263 11,616
3/31/2001 17,527 18,770 10,713 11,429
4/30/2001 18,826 20,180 11,550 11,958
5/31/2001 19,966 21,400 11,835 12,266
6/30/2001 19,713 21,140 12,243 12,759
7/31/2001 18,873 20,240 11,580 12,473
8/31/2001 18,443 19,780 11,206 12,430
9/30/2001 16,219 17,400 9,698 11,058
10/31/2001 17,069 18,310 10,265 11,347
11/30/2001 17,593 18,880 11,060 12,162
12/31/2001 18,881 20,259 11,742 12,907
1/31/2002 18,619 19,989 11,620 13,078
2/28/2002 18,909 20,289 11,302 13,158
3/31/2002 20,950 22,484 12,210 14,143
4/30/2002 21,474 23,045 12,322 14,641
5/31/2002 21,287 22,844 11,774 14,157
6/30/2002 20,342 21,842 11,190 13,843
7/31/2002 17,440 18,726 9,501 11,786
8/31/2002 17,917 19,237 9,477 11,734
9/30/2002 16,803 18,035 8,797 10,896
10/31/2002 16,812 18,045 9,079 11,060
11/30/2002 17,786 19,097 9,889 11,942
12/31/2002 17,711 19,017 9,338 11,432
1/31/2003 17,271 18,546 9,079 11,110
2/28/2003 16,812 18,065 8,805 10,737
3/31/2003 16,522 17,744 8,919 10,851
4/30/2003 17,861 19,187 9,764 11,882
5/31/2003 20,005 21,492 10,812 13,095
6/30/2003 20,229 21,742 11,008 13,317
7/31/2003 21,240 22,834 11,697 13,981
8/31/2003 22,073 23,726 12,232 14,512
9/30/2003 21,802 23,445 12,006 14,346
10/31/2003 23,506 25,279 13,015 15,516
11/30/2003 24,694 26,561 13,477 16,111
12/31/2003 26,298 28,278 13,750 16,694
1/31/2004 26,644 28,658 14,347 17,271
2/29/2004 27,556 29,644 14,476 17,606
3/31/2004 27,858 29,968 14,611 17,849
4/30/2004 26,064 28,047 13,865 16,926
5/31/2004 26,481 28,504 14,086 17,130
6/30/2004 27,848 29,978 14,679 18,000
7/31/2004 26,946 29,002 13,691 17,173
8/31/2004 26,413 28,432 13,621 17,341
9/30/2004 28,246 30,404 14,260 18,027
10/31/2004 28,052 30,207 14,541 18,307
11/30/2004 31,127 33,518 15,802 19,932
12/31/2004 31,529 33,959 16,269 20,408
1/31/2005 30,741 33,116 15,591 19,618
2/28/2005 32,663 35,206 15,854 20,008
3/31/2005 31,436 33,882 15,401 19,596
4/30/2005 29,345 31,635 14,519 18,585
5/31/2005 30,247 32,611 15,470 19,718
6/30/2005 31,676 34,162 16,067 20,590
7/31/2005 33,775 36,418 17,085 21,762
8/31/2005 34,852 37,581 16,769 21,262
9/30/2005 36,182 39,027 16,821 21,227
10/31/2005 34,258 36,959 16,298 20,694
11/30/2005 35,775 38,592 17,089 21,534
12/31/2005 36,202 39,061 17,011 21,368
1/31/2006 39,305 42,414 18,537 23,135
2/28/2006 37,790 40,770 18,486 23,134
3/31/2006 39,353 42,466 19,382 24,254
4/30/2006 39,972 43,139 19,379 24,319
- --------------------------------------------------------------------------------
Performance shown for the Class A, Class B, Class C, and Class Z shares of
the WELLS FARGO ADVANTAGE SMALL CAP VALUE FUND for periods prior to April 11,
2005, reflects the performance of the Class A, Class B, Class C and Class Z
shares, respectively, of the Strong Advisor Small Cap Value Fund, its
predecessor fund. Performance shown for the Class A, Class B, and Class C shares
for periods prior to November 30, 2000, reflects the performance of the Class Z
shares of the predecessor fund, adjusted to reflect each class' respective sales
charges and expenses.
2 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.
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. You
cannot invest directly in an Index.
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 securities divided by total market value of the Fund.
6 The chart compares the performance of the WELLS FARGO ADVANTAGE SMALL CAP
VALUE FUND Class A and Class Z shares for the life of the Fund with the Russell
2000(R) Value Index and the Russell 2000(R) Index. The chart assumes a
hypothetical investment of $10,000 in Class A shares and Class Z shares and
reflects all operating expenses and, for Class A shares, assumes the maximum
initial sales charge of 5.75%.
13
WELLS FARGO ADVANTAGE SMALL AND MID CAP 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 (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 (November 1, 2005 to April 30,
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 C&B Mid Cap Value Fund 11/01/2005 04/30/2006 Period(1) Expense Ratio
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage C&B Mid Cap Value Fund - Class A
Actual $ 1,000.00 $ 1,158.10 $ 7.44 1.39%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,017.90 $ 6.95 1.39%
- ---------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage C&B Mid Cap Value Fund - Class B
Actual $ 1,000.00 $ 1,154.50 $ 11.43 2.14%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,014.18 $ 10.69 2.14%
- ---------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage C&B Mid Cap Value Fund - Class C
Actual $ 1,000.00 $ 1,154.50 $ 11.43 2.14%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,014.18 $ 10.69 2.14%
- ---------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage C&B Mid Cap Value Fund - Class D
Actual $ 1,000.00 $ 1,159.40 $ 6.69 1.25%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,018.60 $ 6.26 1.25%
- ---------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage C&B Mid Cap Value Fund - Administrator Class
Actual $ 1,000.00 $ 1,160.30 $ 6.16 1.15%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,019.09 $ 5.76 1.15%
- ---------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage C&B Mid Cap Value Fund - Institutional Class
Actual $ 1,000.00 $ 1,161.10 $ 4.82 0.90%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,020.33 $ 4.51 0.90%
- ---------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Common Stock Fund
- ---------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Common Stock Fund - Class A
Actual $ 1,000.00 $ 1,180.60 $ 7.08 1.31%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,018.30 $ 6.56 1.31%
- ---------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Common Stock Fund - Class B
Actual $ 1,000.00 $ 1,176.10 $ 11.11 2.06%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,014.58 $ 10.29 2.06%
14
FUND EXPENSES (UNAUDITED) WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses
Value Value Paid During Net Annual
11/01/2005 04/30/2006 Period(1) Expense Ratio
- ---------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Common Stock Fund - Class C
Actual $ 1,000.00 $ 1,176.70 $ 11.12 2.06%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,014.58 $ 10.29 2.06%
- ---------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Common Stock Fund - Class Z
Actual $ 1,000.00 $ 1,181.00 $ 6.98 1.29%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,018.40 $ 6.46 1.29%
Wells Fargo Advantage Mid Cap Growth Fund
- ---------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Mid Cap Growth Fund - Class A
Actual $ 1,000.00 $ 1,200.20 $ 7.64 1.40%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,017.85 $ 7.00 1.40%
- ---------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Mid Cap Growth Fund - Class B
Actual $ 1,000.00 $ 1,194.70 $ 11.70 2.15%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,014.13 $ 10.74 2.15%
- ---------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Mid Cap Growth Fund - Class C
Actual $ 1,000.00 $ 1,194.70 $ 11.70 2.15%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,014.13 $ 10.74 2.15%
- ---------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Mid Cap Growth Fund - Class Z
Actual $ 1,000.00 $ 1,197.00 $ 8.55 1.57%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,017.01 $ 7.85 1.57%
Wells Fargo Advantage Small Cap Growth Fund
- ---------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Small Cap Growth Fund - Class A
Actual $ 1,000.00 $ 1,260.30 $ 7.85 1.40%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,017.85 $ 7.00 1.40%
- ---------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Small Cap Growth Fund - Class B
Actual $ 1,000.00 $ 1,255.60 $ 12.02 2.15%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,014.13 $ 10.74 2.15%
- ---------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Small Cap Growth Fund - Class C
Actual $ 1,000.00 $ 1,256.30 $ 12.03 2.15%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,014.13 $ 10.74 2.15%
- ---------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Small Cap Growth Fund - Class Z
Actual $ 1,000.00 $ 1,259.70 $ 8.80 1.57%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,017.01 $ 7.85 1.57%
- ---------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Small Cap Growth Fund - Administrator Class
Actual $ 1,000.00 $ 1,262.60 $ 6.73 1.20%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,018.84 $ 6.01 1.20%
- ---------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Small Cap Growth Fund - Institutional Class
Actual $ 1,000.00 $ 1,263.90 $ 5.05 0.90%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,020.33 $ 4.51 0.90%
Wells Fargo Advantage Small Cap Opportunities Fund
- ---------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Small Cap Opportunities Fund - Administrator
Class
Actual $ 1,000.00 $ 1,201.60 $ 6.55 1.20%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,018.84 $ 6.01 1.20%
15
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS FUND EXPENSES (UNAUDITED)
- --------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses
Value Value Paid During Net Annual
Wells Fargo Advantage Small Cap Value Fund 11/01/2005 04/30/2006 Period(1) Expense Ratio
- ---------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Small Cap Value Fund - Class A
Actual $ 1,000.00 $ 1,166.80 $ 7.74 1.44%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,017.65 $ 7.20 1.44%
- ---------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Small Cap Value Fund - Class B
Actual $ 1,000.00 $ 1,162.70 $ 11.74 2.19%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,013.93 $ 10.94 2.19%
- ---------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Small Cap Value Fund - Class C
Actual $ 1,000.00 $ 1,162.30 $ 11.74 2.19%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,013.93 $ 10.94 2.19%
- ---------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Small Cap Value Fund - Class Z
Actual $ 1,000.00 $ 1,167.20 $ 7.31 1.36%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,018.05 $ 6.80 1.36%
(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).
16
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
C&B MID CAP VALUE FUND
- -------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 96.67%
AMUSEMENT & RECREATION SERVICES - 1.08%
176,000 INTERNATIONAL SPEEDWAY CORPORATION CLASS A $ 8,657,440
--------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS &
SIMILAR MATERIALS - 4.06%
615,500 JONES APPAREL GROUP INCORPORATED 21,142,425
683,900 TOMMY HILFIGER CORPORATION+ 11,386,935
32,529,360
--------------
BUSINESS SERVICES - 13.36%
1,078,560 CATALINA MARKETING CORPORATION<< 25,540,301
646,600 IMS HEALTH INCORPORATED<< 17,574,588
1,035,200 MONEYGRAM INTERNATIONAL INCORPORATED 35,093,280
1,467,320 PARAMETRIC TECHNOLOGY CORPORATION+ 21,921,761
205,963 VIAD CORPORATION 6,770,004
106,899,934
--------------
CHEMICALS & ALLIED PRODUCTS - 4.90%
385,478 ALBEMARLE CORPORATION 18,433,558
733,640 VALSPAR CORPORATION<< 20,762,012
39,195,570
--------------
DEPOSITORY INSTITUTIONS - 1.49%
440,265 SOUTH FINANCIAL GROUP INCORPORATED 11,944,389
--------------
EATING & DRINKING PLACES - 4.06%
559,600 ARAMARK CORPORATION CLASS B<< 15,730,356
412,571 CBRL GROUP INCORPORATED<< 16,795,765
32,526,121
--------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS,
EXCEPT COMPUTER EQUIPMENT - 6.06%
1,610,100 AMERICAN POWER CONVERSION CORPORATION 35,808,624
1,116,200 FLEXTRONICS INTERNATIONAL LIMITED+ 12,680,032
48,488,656
--------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT &
RELATED SERVICES - 1.33%
191,600 QUEST DIAGNOSTICS INCORPORATED 10,677,868
--------------
FOOD & KINDRED PRODUCTS - 2.46%
287,900 PEPSIAMERICAS INCORPORATED 6,800,198
492,150 PILGRIMS PRIDE CORPORATION<< 12,859,880
19,660,078
--------------
FURNITURE & FIXTURES - 2.33%
994,800 STEELCASE INCORPORATED 18,622,656
--------------
GENERAL MERCHANDISE STORES - 5.04%
2,424,800 BIG LOTS INCORPORATED+<< 35,038,360
304,683 DOLLAR GENERAL CORPORATION 5,319,765
40,358,125
--------------
17
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
C&B MID CAP VALUE FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
HEALTH SERVICES - 2.17%
342,000 UNIVERSAL HEALTH SERVICES CLASS B $ 17,370,180
--------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 15.68%
304,667 CARLISLE COMPANIES INCORPORATED 25,744,362
194,200 CDW CORPORATION<< 11,558,784
534,700 DOVER CORPORATION 26,601,325
2,990,600 ENTEGRIS INCORPORATED+ 30,444,308
870,430 PALL CORPORATION<< 26,269,577
95,100 TENNANT COMPANY 4,840,590
125,458,946
--------------
INSURANCE AGENTS, BROKERS & SERVICE - 3.01%
357,300 ARTHUR J. GALLAGHER & COMPANY 9,804,312
703,000 UNUMPROVIDENT CORPORATION<< 14,277,930
24,082,242
--------------
INSURANCE CARRIERS - 3.36%
107,244 AMBAC FINANCIAL GROUP INCORPORATED 8,832,616
302,493 MBIA INCORPORATED<< 18,037,657
26,870,273
--------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS - 6.03%
119,249 ITRON INCORPORATED+ 7,995,645
621,700 METTLER-TOLEDO INTERNATIONAL INCORPORATED+ 40,286,160
48,281,805
--------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 1.19%
485,000 HASBRO INCORPORATED 9,559,350
--------------
MISCELLANEOUS RETAIL - 2.74%
887,870 ZALE CORPORATION+<< 21,885,996
--------------
NON-DEPOSITORY CREDIT INSTITUTIONS - 2.34%
797,078 CAPITALSOURCE INCORPORATED<< 18,731,333
--------------
PERSONAL SERVICES - 1.56%
304,700 G & K SERVICES INCORPORATED CLASS A 12,483,559
--------------
PRIMARY METAL INDUSTRIES - 3.24%
501,752 HUBBELL INCORPORATED CLASS B<< 25,915,491
--------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 1.27%
373,000 HARTE HANKS INCORPORATED 10,182,900
--------------
TRANSPORTATION EQUIPMENT - 3.27%
961,825 FEDERAL SIGNAL CORPORATION<< 18,014,982
435,200 SUPERIOR INDUSTRIES INTERNATIONAL INCORPORATED<< 8,190,464
26,205,446
--------------
18
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
C&B MID CAP VALUE FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
WHOLESALE TRADE NON-DURABLE GOODS - 4.64%
1,075,650 HAIN CELESTIAL GROUP INCORPORATED+ $ 28,934,985
154,500 MEDCO HEALTH SOLUTIONS INCORPORATED+ 8,224,035
37,159,020
------------
TOTAL COMMON STOCKS (COST $654,626,398) 773,746,738
------------
COLLATERAL FOR SECURITIES LENDING - 23.23%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.83%
6,642,815 SCUDDER DAILY ASSETS MONEY MARKET FUND 6,642,815
------------
PRINCIPAL INTEREST RATE MATURITY DATE
COLLATERAL INVESTED IN OTHER ASSETS - 22.40%
$ 506,576 AMERICAN GENERAL FINANCE+/-++ 4.93% 05/15/2007 506,789
210,905 APRECO LLC 4.60 05/15/2006 210,506
461,604 APRECO LLC++ 4.92 06/15/2006 458,746
4,165,183 AQUIFER FUNDING LIMITED 4.80 05/03/2006 4,164,058
1,407,156 AQUIFER FUNDING LIMITED++ 4.80 05/04/2006 1,406,594
1,407,156 AQUINAS FUNDING LLC++ 5.04 06/23/2006 1,396,884
2,876,115 ATLANTIC ASSET SECURITIZATION CORPORATION++ 4.86 05/11/2006 2,872,232
2,814,313 ATLAS CAPITAL FUNDING CORPORATION SERIES MTN+/- 4.81 11/03/2006 2,814,313
675,435 ATLAS CAPITAL FUNDING CORPORATION++ 4.60 05/15/2006 674,159
1,407,156 ATLAS CAPITAL FUNDING CORPORATION+/- 4.93 12/22/2006 1,407,156
1,407,156 ATLAS CAPITAL FUNDING CORPORATION+/- 4.94 10/20/2006 1,407,156
1,407,156 ATLAS CAPITAL FUNDING CORPORATION+/- 4.98 04/25/2007 1,407,156
92,253 ATOMIUM FUNDING CORPORATION 4.81 05/03/2006 92,228
5,361,435 ATOMIUM FUNDING CORPORATION 4.81 05/04/2006 5,359,290
1,134,112 ATOMIUM FUNDING CORPORATION++ 4.83 05/05/2006 1,133,511
684,553 ATOMIUM FUNDING CORPORATION++ 5.00 06/12/2006 680,604
3,377,176 BASF AG ADR 4.81 05/04/2006 3,375,825
1,688,588 BEAR STEARNS & COMPANY+/- 4.93 10/04/2006 1,688,588
2,883,439 BEAR STEARNS & COMPANY REPURCHASE AGREEMENT
(MATURITY VALUE $2,883,832) 4.92 05/01/2006 2,883,439
195,257 BETA FINANCE INCORPORATED SERIES MTN+/-++ 4.91 06/02/2006 195,269
30,957,442 BNP PARIBAS REPURCHASE AGREEMENT
(MATURITY VALUE $30,961,681) 4.93 05/01/2006 30,957,442
1,874,164 BUCKINGHAM CDO LLC++ 4.96 05/23/2006 1,868,522
2,814,313 BUCKINGHAM CDO LLC++ 5.08 07/24/2006 2,781,611
3,388,264 BUCKINGHAM II CDO LLC++ 4.86 05/08/2006 3,385,113
394,004 BUCKINGHAM II CDO LLC++ 4.95 05/24/2006 392,763
731,721 CAIRN HIGH GRADE FUNDING I++ 4.76 05/10/2006 730,829
1,407,156 CAIRN HIGH GRADE FUNDING I 4.81 05/02/2006 1,406,974
1,125,725 CAIRN HIGH GRADE FUNDING I 4.83 05/08/2006 1,124,678
956,866 CAIRN HIGH GRADE FUNDING I 4.93 05/18/2006 954,656
776,750 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.68 05/08/2006 776,028
250,305 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.69 05/10/2006 250,000
1,125,725 CEDAR SPRINGS CAPITAL COMPANY LLC 4.70 05/12/2006 1,124,048
581,043 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.80 05/05/2006 580,735
1,811,798 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.83 05/09/2006 1,809,842
19
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
C&B MID CAP VALUE FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 562,863 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.89% 06/07/2006 $ 559,998
1,498,059 CEDAR SPRINGS CAPITAL COMPANY LLC 4.90 06/12/2006 1,489,415
1,762,886 CEDAR SPRINGS CAPITAL COMPANY LLC 4.99 06/21/2006 1,750,492
816,151 CEDAR SPRINGS CAPITAL COMPANY LLC 5.01 06/05/2006 812,225
2,814,313 CONCORD MINUTEMEN CAPITAL COMPANY SERIES A 4.83 05/12/2006 2,810,120
1,412,673 CONCORD MINUTEMEN CAPITAL COMPANY SERIES A 4.85 05/11/2006 1,410,765
3,940,038 CONCORD MINUTEMEN CAPITAL COMPANY SERIES B+/-++ 4.85 05/14/2006 3,940,038
3,641,721 CORPORATE ASSET SECURITIZATION AUSTRALIA LIMITED 5.00 05/25/2006 3,629,740
1,744,874 CREDIT SUISSE FIRST BOSTON NEW YORK SERIES YCD1+/- 4.92 05/04/2006 1,744,769
1,407,156 CULLINAN FINANCE CORPORATION SERIES MTN+/-++ 4.71 11/15/2006 1,407,297
731,721 DEER VALLEY FUNDING LLC++ 4.78 05/03/2006 731,524
2,138,878 DEER VALLEY FUNDING LLC 4.84 05/08/2006 2,136,889
110,152 DEER VALLEY FUNDING LLC++ 4.89 05/15/2006 109,944
899,680 DEER VALLEY FUNDING LLC++ 4.92 05/16/2006 897,853
7,001,806 DEUTSCHE BANK REPURCHASE AGREEMENT
(MATURITY VALUE $7,002,743) 4.82 05/01/2006 7,001,806
90,058 EDISON ASSET SECURITIZATION LLC 4.84 05/15/2006 89,888
112,573 EIFFEL FUNDING LLC 4.80 05/01/2006 112,572
2,027,487 EUREKA SECURITIZATION INCORPORATED 4.86 05/16/2006 2,023,371
3,377,175 GEMINI SECURITIZATION INCORPORATED 4.79 05/01/2006 3,377,175
84,429 GEMINI SECURITIZATION INCORPORATED++ 4.88 05/24/2006 84,163
2,531,474 GEORGE STREET FINANCE LLC 4.80 05/02/2006 2,531,145
1,350,870 GOLDMAN SACHS GROUP INCORPORATED+/- 4.97 06/30/2006 1,350,870
112,573 HARRIER FINANCE FUNDING LLC+/-++ 4.98 05/15/2007 112,597
197,002 HBOS TREASURY SERVICES PLC+/-++ 5.12 01/12/2007 197,199
900,580 ING USA ANNUITY & LIFE INSURANCE+/- 5.03 06/06/2006 900,580
73,172 K2 USA LLC 4.61 05/02/2006 73,163
260,324 K2 USA LLC SERIES MTN+/-++ 4.90 07/24/2006 260,376
844,294 KAUPTHING BANK HF+/-++ 4.98 03/20/2007 843,011
225,145 KLIO II FUNDING CORPORATION++ 4.96 06/30/2006 223,283
1,881,593 KLIO III FUNDING CORPORATION++ 4.93 05/22/2006 1,876,212
2,705,568 KLIO III FUNDING CORPORATION++ 4.96 06/30/2006 2,683,193
56,286 LEXINGTON PARKER CAPITAL CORPORATION 4.60 05/02/2006 56,279
213,663 LEXINGTON PARKER CAPITAL CORPORATION 4.68 05/10/2006 213,402
9,021,055 LEXINGTON PARKER CAPITAL CORPORATION 4.85 05/05/2006 9,016,274
95,687 LEXINGTON PARKER CAPITAL CORPORATION 4.96 06/20/2006 95,027
1,407,156 LIBERTY LIGHT US CAPITAL SERIES MTN+/-++ 4.84 05/26/2006 1,407,185
112,573 LINKS FINANCE LLC SERIES MTN1+/-++ 4.82 09/12/2006 112,572
844,294 LIQUID FUNDING LIMITED+/-++ 4.79 12/01/2006 844,294
1,294,584 LIQUID FUNDING LIMITED+/-++ 4.88 08/14/2006 1,294,584
337,718 LIQUID FUNDING LIMITED SERIES MTN+/-++ 4.85 02/20/2007 337,724
562,863 MBIA GLOBAL FUNDING LLC+/-++ 4.92 02/20/2007 562,829
2,828,384 MERRILL LYNCH & COMPANY SERIES MTN+/- 5.28 10/27/2006 2,830,647
1,688,588 MORGAN STANLEY+/- 4.94 10/10/2006 1,688,588
260,324 MORGAN STANLEY SERIES EXL+/- 4.93 08/13/2010 260,386
1,272,069 MORTGAGE INTEREST NET TRUST 4.76 05/03/2006 1,271,726
56,286 NATIONWIDE BUILDING SOC+/-++ 5.20 07/21/2006 56,306
20
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
C&B MID CAP VALUE FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 250,924 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 4.91% 06/26/2006 $ 248,987
90,339 NORDEA NORTH AMERICA INCORPORATED 4.80 05/03/2006 90,315
180,116 NORDEA NORTH AMERICA INCORPORATED 4.81 05/09/2006 179,921
106,944 NORDEA NORTH AMERICA INCORPORATED 4.87 05/15/2006 106,742
168,577 NORTH SEA FUNDING LLC++ 5.00 06/26/2006 167,276
2,814,313 NORTHERN ROCK PLC+/-++ 4.83 02/05/2007 2,814,454
227,678 RACERS TRUST 2004-6-MM+/-++ 4.95 05/22/2006 227,710
1,060,827 REGENCY MARKETS LLC++ 5.06 07/20/2006 1,049,084
56,286 SCALDIS CAPITAL LIMITED++ 4.91 06/15/2006 55,938
2,808,403 SEDNA FINANCE INCORPORATED++ 4.86 05/02/2006 2,808,038
1,125,725 SLM CORPORATION+/- 4.86 05/04/2007 1,125,444
450,290 SWEDBANK (FORENINGS SPARBANKEN) 4.81 05/09/2006 449,804
281,431 SWEDISH NATIONAL HOUSING FINANCE (SBAB) 5.06 07/18/2006 278,395
225,145 TANGO FINANCE CORPORATION++ 4.94 06/21/2006 223,562
650,838 TANGO FINANCE CORPORATION SERIES MTN+/-++ 4.90 10/25/2006 651,053
1,701,477 THUNDER BAY FUNDING INCORPORATED++ 5.00 06/16/2006 1,690,690
2,004,579 TIERRA ALTA FUNDING I LIMITED++ 4.82 05/10/2006 2,002,133
2,901,106 TIERRA ALTA FUNDING I LIMITED++ 4.83 05/11/2006 2,897,190
325,391 TRAVELLERS INSURANCE COMPANY+/- 4.92 02/09/2007 325,384
1,407,156 UNICREDITO ITALIANO SERIES LIB+/- 4.86 03/09/2007 1,407,128
2,138,878 US BANK NA SERIES BKNT+/- 5.13 07/28/2006 2,138,985
168,859 VERSAILLES CDS LLC 4.87 05/15/2006 168,540
1,407,156 VERSAILLES CDS LLC 4.99 06/20/2006 1,397,461
56,286 VERSAILLES CDS LLC++ 5.00 06/21/2006 55,891
594,495 VERSAILLES CDS LLC++ 5.04 06/28/2006 589,745
562,863 WHISTLEJACKET CAPITAL LIMITED+/-++ 4.80 06/09/2006 562,863
281,431 WHISTLEJACKET CAPITAL LIMITED++ 4.91 05/15/2006 280,899
909,305 WHISTLEJACKET CAPITAL LIMITED++ 5.02 06/26/2006 902,285
281,431 WHITE PINE FINANCE LLC++ 4.80 05/05/2006 281,282
229,761 WHITE PINE FINANCE LLC++ 4.83 05/25/2006 229,005
1,407,156 WHITE PINE FINANCE LLC+/-++ 4.85 07/17/2006 1,407,156
172,911 WHITE PINE FINANCE LLC++ 4.91 06/20/2006 171,720
1,485,338 WHITE PINE FINANCE LLC++ 4.92 06/22/2006 1,474,703
1,350,870 WHITE PINE FINANCE LLC SERIES MTN1+/-++ 4.84 06/12/2006 1,350,924
179,307,947
-----------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $185,950,762) 185,950,762
-----------
SHARES
SHORT-TERM INVESTMENTS - 0.62%
4,952,261 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~@ 4,952,261
-----------
TOTAL SHORT-TERM INVESTMENTS (COST $4,952,261) 4,952,261
-----------
21
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
C&B MID CAP VALUE FUND
- --------------------------------------------------------------------------------
VALUE
TOTAL INVESTMENTS IN SECURITIES
(COST $845,529,420)* 120.52% $ 964,649,761
OTHER ASSETS AND LIABILITIES, NET (20.52) (164,239,328)
---------- -------------
TOTAL NET ASSETS 100.00% $ 800,410,433
========== =============
+ NON-INCOME EARNING SECURITIES.
<< ALL OR A PORTION OF THIS SECURITY IS ON LOAN.
+/- VARIABLE RATE INVESTMENTS.
++ SECURITIES THAT MAY BE RESOLD TO "QUALIFIED INSTITUTIONAL BUYERS" UNDER
RULE 144A OR SECURITIES OFFERED PURSUANT TO SECTION 4 (2) OF THE
SECURITIES ACT OF 1933, AS AMENDED.
~ 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 $4,952,261.
* 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.
22
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
COMMON STOCK FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 89.11%
AMUSEMENT & RECREATION SERVICES - 1.17%
388,000 INTERNATIONAL GAME TECHNOLOGY<< $14,716,840
-----------
APPAREL & ACCESSORY STORES - 2.76%
418,000 ANN TAYLOR STORES CORPORATION+ 15,603,940
343,000 KOHL'S CORPORATION+ 19,153,120
34,757,060
-----------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS - 1.37%
282,000 VF CORPORATION 17,255,580
-----------
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS - 1.21%
379,000 ADVANCE AUTO PARTS INCORPORATED 15,243,380
-----------
AUTOMOTIVE REPAIR, SERVICES & PARKING - 1.69%
408,000 RYDER SYSTEM INCORPORATED 21,277,200
-----------
BUSINESS SERVICES - 4.85%
500,000 AMDOCS LIMITED+<< 18,600,000
160,000 CHECKFREE CORPORATION+ 8,619,200
405,000 CITRIX SYSTEMS INCORPORATED+ 16,167,600
475,000 COGNOS INCORPORATED+<< 17,703,250
61,090,050
-----------
CHEMICALS & ALLIED PRODUCTS - 6.05%
645,000 HUNTSMAN CORPORATION+ 12,674,250
460,000 IMCLONE SYSTEMS INCORPORATED+ 16,606,000
467,000 INTERNATIONAL FLAVORS & FRAGRANCES INCORPORATED<< 16,499,110
395,000 MEDIMMUNE INCORPORATED+<< 12,430,650
262,000 SIGMA-ALDRICH CORPORATION 17,975,820
76,185,830
-----------
COMMUNICATIONS - 5.93%
1,000,000 CABLEVISION SYSTEMS CORPORATION NEW YORK GROUP CLASS A+ 20,270,000
525,000 CLEAR CHANNEL COMMUNICATIONS INCORPORATED 14,978,250
917,000 DIRECTV GROUP INCORPORATED+ 15,662,360
275,000 IAC INTERACTIVECORP+<< 7,939,250
765,000 LIBERTY GLOBAL INCORPORATED CLASS A+ 15,843,150
74,693,010
-----------
DEPOSITORY INSTITUTIONS - 3.76%
243,000 CITY NATIONAL CORPORATION 17,729,280
360,000 FIFTH THIRD BANCORP<< 14,551,200
329,600 MARSHALL & ILSLEY CORPORATION 15,069,312
47,349,792
-----------
EATING & DRINKING PLACES - 1.70%
187,103 CHEESECAKE FACTORY INCORPORATED 5,872,228
365,000 OSI RESTAURANT PARTNERS INCORPORATED 15,585,500
21,457,728
-----------
23
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
COMMON STOCK FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ELECTRIC, GAS & SANITARY SERVICES - 1.27%
363,000 REPUBLIC SERVICES INCORPORATED $ 15,975,630
------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 7.08%
458,000 ADVANCED MICRO DEVICES INCORPORATED+<< 14,816,300
807,800 ENERSYS+<< 11,325,356
405,000 FAIRCHILD SEMICONDUCTOR INTERNATIONAL INCORPORATED+<< 8,371,350
415,000 LINEAR TECHNOLOGY CORPORATION 14,732,500
280,000 NETWORK APPLIANCE INCORPORATED+<< 10,379,600
755,000 SEMTECH CORPORATION+ 14,156,250
478,200 TESSERA TECHNOLOGIES INCORPORATED+ 15,335,874
89,117,230
------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES - 1.31%
1,775,000 BEARINGPOINT INCORPORATED+ 16,472,000
------------
FOOD & KINDRED PRODUCTS - 1.22%
208,000 MOLSON COORS BREWING COMPANY<< 15,362,880
------------
FOOD STORES - 1.25%
775,000 KROGER COMPANY+<< 15,701,500
------------
GENERAL MERCHANDISE STORES - 1.25%
905,000 DOLLAR GENERAL CORPORATION<< 15,801,300
------------
HEALTH SERVICES - 2.24%
352,000 EDWARDS LIFESCIENCES CORPORATION+<< 15,642,880
700,000 VALEANT PHARMACEUTICALS INTERNATIONAL 12,530,000
28,172,880
------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 0.78%
581,705 RADIO SHACK CORPORATION 9,888,985
------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 5.49%
214,000 CARLISLE COMPANIES INCORPORATED 18,083,000
338,000 DOVER CORPORATION 16,815,500
570,000 SEAGATE TECHNOLOGY<< 15,139,200
452,000 SMITH INTERNATIONAL INCORPORATED<< 19,087,960
69,125,660
------------
INSURANCE AGENTS, BROKERS & SERVICE - 1.04%
478,000 ARTHUR J. GALLAGHER & COMPANY<< 13,116,320
------------
INSURANCE CARRIERS - 3.45%
420,000 HCC INSURANCE HOLDINGS INCORPORATED<< 14,065,800
245,000 MBIA INCORPORATED 14,609,350
350,000 RENAISSANCERE HOLDINGS LIMITED 14,717,500
43,392,650
------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 5.52%
81,400 AFFYMETRIX INCORPORATED+ 2,332,110
595,000 EASTMAN KODAK COMPANY 16,041,200
------------
24
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
COMMON STOCK FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS (CONTINUED)
397,000 RESPIRONICS INCORPORATED+ $14,538,140
490,000 THERMO ELECTRON CORPORATION+ 18,884,600
374,000 TRIMBLE NAVIGATION LIMITED+ 17,720,120
69,516,170
-----------
METAL MINING - 1.82%
482,885 BARRICK GOLD CORPORATION<< 14,718,335
205,000 FALCONBRIDGE LIMITED 8,171,300
22,889,635
-----------
MISCELLANEOUS RETAIL - 2.91%
434,000 MICHAELS STORES INCORPORATED 16,418,220
545,000 SPORTS AUTHORITY INCORPORATED+<< 20,252,200
36,670,420
-----------
MOTION PICTURES - 2.58%
1,780,000 LIBERTY MEDIA CORPORATION CLASS A+ 14,863,000
1,030,000 NEWS CORPORATION CLASS A 17,674,800
32,537,800
-----------
OIL & GAS EXTRACTION - 8.69%
345,000 APACHE CORPORATION 24,512,250
350,000 EOG RESOURCES INCORPORATED<< 24,580,500
410,000 NABORS INDUSTRIES LIMITED+<< 15,305,300
335,000 NOBLE CORPORATION 26,444,900
420,000 ROWAN COMPANIES INCORPORATED+ 18,618,600
109,461,550
-----------
PAPER & ALLIED PRODUCTS - 0.70%
360,000 PACTIV CORPORATION+ 8,762,400
-----------
PETROLEUM REFINING & RELATED INDUSTRIES - 1.21%
227,241 CONOCOPHILLIPS<< 15,202,423
-----------
PRIMARY METAL INDUSTRIES - 1.74%
650,000 ALCOA INCORPORATED 21,957,000
-----------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 1.19%
405,000 DOW JONES & COMPANY INCORPORATED 14,972,850
-----------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 1.21%
200,000 MERRILL LYNCH & COMPANY INCORPORATED<< 15,252,000
-----------
TRANSPORTATION BY AIR - 1.04%
505,000 CONTINENTAL AIRLINES INCORPORATED CLASS B+ 13,150,200
-----------
TRANSPORTATION EQUIPMENT - 1.33%
303,000 AUTOLIV INCORPORATED 16,755,900
-----------
TRANSPORTATION SERVICES - 1.08%
730,000 EXPEDIA INCORPORATED+ 13,614,500
-----------
25
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
COMMON STOCK FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
WHOLESALE TRADE-DURABLE GOODS - 1.22%
590,000 AVNET INCORPORATED+ $ 15,428,500
---------------
TOTAL COMMON STOCKS (COST $793,186,712) 1,122,324,853
---------------
INVESTMENT COMPANIES - 0.90%
STOCK FUNDS - 0.90%
65,000 BIOTECH HOLDRS TRUST 11,342,500
---------------
TOTAL INVESTMENT COMPANIES (COST $6,029,990) 11,342,500
---------------
CONTRACTS STRIKE PRICE EXPIRATION DATE
OPTIONS - 0.02%
1,600 CHECKFREE CORPORATION PUT $50.00 8/19/2006 304,000
---------------
TOTAL OPTIONS (PREMIUM PAID $596,800) 304,000
---------------
PREFERRED STOCKS - 1.85%
1,187,300 ACTIVISION INCORPORATED+ 16,847,787
93,600 CARDINAL HEALTH MEDIUM TERM NOTE 6,399,432
TOTAL PREFERRED STOCKS (COST $22,287,317) 23,247,219
---------------
COLLATERAL FOR SECURITIES LENDING - 12.47%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.45%
5,609,823 SCUDDER DAILY ASSETS MONEY MARKET FUND 5,609,823
---------------
PRINCIPAL INTEREST RATE MATURITY DATE
COLLATERAL INVESTED IN OTHER ASSETS - 12.02%
$ 427,801 AMERICAN GENERAL FINANCE CORPORATION+/-++ 4.93% 05/15/2007 427,981
178,108 APRECO LLC 4.60 05/15/2006 177,771
389,822 APRECO LLC++ 4.92 06/15/2006 387,409
3,517,475 AQUIFER FUNDING LIMITED 4.80 05/03/2006 3,516,526
1,188,336 AQUIFER FUNDING LIMITED++ 4.80 05/04/2006 1,187,861
1,188,336 AQUINAS FUNDING LLC++ 5.04 06/23/2006 1,179,661
2,428,864 ATLANTIC ASSET SECURITIZATION CORPORATION 4.86 05/11/2006 2,425,585
2,376,672 ATLAS CAPITAL FUNDING CORPORATION SERIES MTN+/- 4.81 11/03/2006 2,376,672
1,188,336 ATLAS CAPITAL FUNDING CORPORATION+/- 4.94 10/20/2006 1,188,336
570,401 ATLAS CAPITAL FUNDING CORPORATION++ 4.60 05/15/2006 569,323
1,188,336 ATLAS CAPITAL FUNDING CORPORATION+/- 4.93 12/22/2006 1,188,336
1,188,336 ATLAS CAPITAL FUNDING CORPORATION+/- 4.98 04/25/2007 1,188,336
77,907 ATOMIUM FUNDING CORPORATION 4.81 05/03/2006 77,886
4,527,704 ATOMIUM FUNDING CORPORATION 4.81 05/04/2006 4,525,893
957,751 ATOMIUM FUNDING CORPORATION++ 4.83 05/05/2006 957,244
578,102 ATOMIUM FUNDING CORPORATION++ 5.00 06/12/2006 574,766
2,852,007 BASF AG ADR 4.81 05/04/2006 2,850,866
1,426,003 BEAR STEARNS & COMPANY+/- 4.93 10/04/2006 1,426,003
2,435,049 BEAR STEARNS & COMPANY REPURCHASE AGREEMENT
(MATURITY VALUE $2,435,382) 4.92 05/01/2006 2,435,049
164,894 BETA FINANCE INCORPORATED SERIES MTN+/-++ 4.91 06/02/2006 164,903
26,143,397 BNP PARIBAS REPURCHASE AGREEMENT
(MATURITY VALUE $26,146,977) 4.93 05/01/2006 26,143,397
1,582,721 BUCKINGHAM CDO LLC++ 4.96 05/23/2006 1,577,957
26
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
COMMON STOCK FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 2,376,672 BUCKINGHAM CDO LLC++ 5.08% 07/24/2006 $ 2,349,056
2,861,371 BUCKINGHAM II CDO LLC++ 4.86 05/08/2006 2,858,710
332,734 BUCKINGHAM II CDO LLC++ 4.95 05/24/2006 331,686
617,935 CAIRN HIGH GRADE FUNDING I++ 4.76 05/10/2006 617,181
1,188,336 CAIRN HIGH GRADE FUNDING I 4.81 05/02/2006 1,188,182
950,669 CAIRN HIGH GRADE FUNDING I 4.83 05/08/2006 949,785
808,069 CAIRN HIGH GRADE FUNDING I 4.93 05/18/2006 806,202
655,962 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.68 05/08/2006 655,352
211,381 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.69 05/10/2006 211,123
950,669 CEDAR SPRINGS CAPITAL COMPANY LLC 4.70 05/12/2006 949,253
490,688 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.80 05/05/2006 490,428
1,530,054 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.83 05/09/2006 1,528,402
475,334 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.89 06/07/2006 472,915
1,265,103 CEDAR SPRINGS CAPITAL COMPANY LLC 4.90 06/12/2006 1,257,803
1,488,748 CEDAR SPRINGS CAPITAL COMPANY LLC 4.99 06/21/2006 1,478,282
689,235 CEDAR SPRINGS CAPITAL COMPANY LLC 5.01 06/05/2006 685,920
2,376,672 CONCORD MINUTEMEN CAPITAL COMPANY SERIES A 4.83 05/12/2006 2,373,131
1,192,995 CONCORD MINUTEMEN CAPITAL COMPANY SERIES A 4.85 05/11/2006 1,191,384
3,327,341 CONCORD MINUTEMEN CAPITAL COMPANY SERIES B+/-++ 4.85 05/14/2006 3,327,341
3,075,414 CORPORATE ASSET SECURITIZATION AUSTRALIA LIMITED 5.00 05/25/2006 3,065,296
1,473,537 CREDIT SUISSE FIRST BOSTON NEW YORK SERIES YCD1+/- 4.92 05/04/2006 1,473,449
1,188,336 CULLINAN FINANCE CORPORATION SERIES MTN+/-++ 4.71 11/15/2006 1,188,455
617,935 DEER VALLEY FUNDING LLC++ 4.78 05/03/2006 617,768
1,806,271 DEER VALLEY FUNDING LLC 4.84 05/08/2006 1,804,591
93,023 DEER VALLEY FUNDING LLC++ 4.89 05/15/2006 92,847
759,775 DEER VALLEY FUNDING LLC++ 4.92 05/16/2006 758,232
5,912,989 DEUTSCHE BANK REPURCHASE AGREEMENT
(MATURITY VALUE $5,913,781) 4.82 05/01/2006 5,912,989
76,054 EDISON ASSET SECURITIZATION LLC 4.84 05/15/2006 75,910
95,067 EIFFEL FUNDING LLC 4.80 05/01/2006 95,067
1,712,202 EUREKA SECURITIZATION INCORPORATED 4.86 05/16/2006 1,708,727
2,852,007 GEMINI SECURITIZATION INCORPORATED 4.79 05/01/2006 2,852,007
71,300 GEMINI SECURITIZATION INCORPORATED++ 4.88 05/24/2006 71,076
2,137,817 GEORGE STREET FINANCE LLC 4.80 05/02/2006 2,137,539
1,140,803 GOLDMAN SACHS GROUP INCORPORATED+/- 4.97 06/30/2006 1,140,803
95,067 HARRIER FINANCE FUNDING LLC+/-++ 4.98 05/15/2007 95,088
166,367 HBOS TREASURY SERVICES PLC+/-++ 5.12 01/12/2007 166,533
760,535 ING USA ANNUITY & LIFE INSURANCE+/- 5.03 06/06/2006 760,535
61,793 K2 USA LLC 4.61 05/02/2006 61,785
219,842 K2 USA LLC SERIES MTN+/- 4.90 07/24/2006 219,886
713,002 KAUPTHING BANK HF+/-++ 4.98 03/20/2007 711,918
190,134 KLIO II FUNDING CORPORATION++ 4.96 06/30/2006 188,561
1,588,996 KLIO III FUNDING CORPORATION++ 4.93 05/22/2006 1,584,451
2,284,838 KLIO III FUNDING CORPORATION++ 4.96 06/30/2006 2,265,942
47,533 LEXINGTON PARKER CAPITAL CORPORATION 4.60 05/02/2006 47,527
180,437 LEXINGTON PARKER CAPITAL CORPORATION 4.68 05/10/2006 180,217
7,618,233 LEXINGTON PARKER CAPITAL CORPORATION 4.85 05/05/2006 7,614,196
80,807 LEXINGTON PARKER CAPITAL CORPORATION 4.96 06/20/2006 80,250
27
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
COMMON STOCK FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 1,188,336 LIBERTY LIGHT US CAPITAL SERIES MTN+/-++ 4.84% 05/26/2006 $ 1,188,360
95,067 LINKS FINANCE LLC SERIES MTN1+/-++ 4.82 09/12/2006 95,067
713,002 LIQUID FUNDING LIMITED+/-++ 4.79 12/01/2006 713,002
1,093,269 LIQUID FUNDING LIMITED+/-++ 4.88 08/14/2006 1,093,269
285,201 LIQUID FUNDING LIMITED SERIES MTN+/-++ 4.85 02/20/2007 285,206
475,334 MBIA GLOBAL FUNDING LLC+/-++ 4.92 02/20/2007 475,306
2,388,556 MERRILL LYNCH & COMPANY SERIES MTN+/- 5.28 10/27/2006 2,390,467
1,426,003 MORGAN STANLEY+/- 4.94 10/10/2006 1,426,003
219,842 MORGAN STANLEY SERIES EXL+/- 4.93 08/13/2010 219,895
1,074,256 MORTGAGE INTEREST NET TRUST 4.76 05/03/2006 1,073,966
47,533 NATIONWIDE BUILDING SOC+/-++ 5.20 07/21/2006 47,550
211,904 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 4.91 06/26/2006 210,268
76,291 NORDEA NORTH AMERICA INCORPORATED 4.80 05/03/2006 76,271
152,107 NORDEA NORTH AMERICA INCORPORATED 4.81 05/09/2006 151,943
90,314 NORDEA NORTH AMERICA INCORPORATED 4.87 05/15/2006 90,143
142,363 NORTH SEA FUNDING LLC++ 5.00 06/26/2006 141,264
2,376,672 NORTHERN ROCK PLC+/-++ 4.83 02/05/2007 2,376,791
192,273 RACERS TRUST 2004-6-MM+/-++ 4.95 05/22/2006 192,300
895,863 REGENCY MARKETS LLC++ 5.06 07/20/2006 885,946
47,533 SCALDIS CAPITAL LIMITED++ 4.91 06/15/2006 47,239
2,371,681 SEDNA FINANCE INCORPORATED++ 4.86 05/02/2006 2,371,373
950,669 SLM CORPORATION+/- 4.86 05/04/2007 950,431
380,268 SWEDBANK (FORENINGS SPARBANKEN) 4.81 05/09/2006 379,857
237,667 SWEDISH NATIONAL HOUSING FINANCE (SBAB) 5.06 07/18/2006 235,103
190,134 TANGO FINANCE CORPORATION++ 4.94 06/21/2006 188,797
549,629 TANGO FINANCE CORPORATION SERIES MTN+/-++ 4.90 10/25/2006 549,811
1,436,889 THUNDER BAY FUNDING INCORPORATED++ 5.00 06/16/2006 1,427,779
1,692,856 TIERRA ALTA FUNDING I LIMITED++ 4.82 05/10/2006 1,690,791
2,449,969 TIERRA ALTA FUNDING I LIMITED++ 4.83 05/11/2006 2,446,662
274,791 TRAVELLERS INSURANCE COMPANY+/- 4.92 02/09/2007 274,785
1,188,336 UNICREDITO ITALIANO SERIES LIB+/- 4.86 03/09/2007 1,188,312
1,806,271 US BANK NA SERIES BKNT+/- 5.13 07/28/2006 1,806,361
142,600 VERSAILLES CDS LLC 4.87 05/15/2006 142,331
1,188,336 VERSAILLES CDS LLC 4.99 06/20/2006 1,180,149
47,533 VERSAILLES CDS LLC++ 5.00 06/21/2006 47,199
502,048 VERSAILLES CDS LLC++ 5.04 06/28/2006 498,037
475,335 WHISTLEJACKET CAPITAL LIMITED+/-++ 4.80 06/09/2006 475,335
237,667 WHISTLEJACKET CAPITAL LIMITED++ 4.91 05/15/2006 237,218
767,903 WHISTLEJACKET CAPITAL LIMITED++ 5.02 06/26/2006 761,975
237,667 WHITE PINE FINANCE LLC++ 4.80 05/05/2006 237,541
194,032 WHITE PINE FINANCE LLC++ 4.83 05/25/2006 193,393
1,188,336 WHITE PINE FINANCE LLC+/-++ 4.85 07/17/2006 1,188,336
146,023 WHITE PINE FINANCE LLC++ 4.91 06/20/2006 145,017
1,254,360 WHITE PINE FINANCE LLC++ 4.92 06/22/2006 1,245,379
1,140,803 WHITE PINE FINANCE LLC SERIES MTN1+/-++ 4.84 06/12/2006 1,140,848
151,424,618
-----------
TOTAL COLLATERAL FOR SECURITIES LENDING** (COST $157,034,441) 157,034,441
-----------
28
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
COMMON STOCK FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
SHORT-TERM INVESTMENTS - 9.54%
120,117,078 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~@ $ 120,117,078
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $120,117,078) 120,117,078
---------------
Total Investments in Securities
(Cost $1,099,252,338)* 113.89% $ 1,434,370,091
OTHER ASSETS AND LIABILITIES, NET (13.89) (174,880,823)
------ ---------------
TOTAL NET ASSETS 100.00% $ 1,259,489,268
====== ===============
+ NON-INCOME EARNING SECURITIES.
<< ALL OR A PORTION OF THIS SECURITY IS ON LOAN.
+/- VARIABLE RATE INVESTMENTS.
++ SECURITIES THAT MAY BE RESOLD TO "QUALIFIED INSTITUTIONAL BUYERS" UNDER
RULE 144A OR SECURITIES OFFERED PURSUANT TO SECTION 4 (2) OF THE
SECURITIES ACT OF 1933, AS AMENDED.
~ 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.
** SECURITIES PURCHASED WITH CASH COLLATERAL FROM SECURITIES OUT-ON-LOAN. THE
FUND HAS ALSO RECEIVED NON-CASH COLLATERAL IN THE AMOUNT OF $14,311,200.
THE TOTAL COLLATERAL RECEIVED REPRESENTS 104% OF THE VALUE OF THE
PORTFOLIO SECURITIES LOANED.
@ SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $120,117,078.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
CONTRACTS STRIKE PRICE EXPIRATION DATE
WRITTEN OPTIONS - (0.11%)
(1,600) CHECKFREE CORPORATION CALL $50.00 08/19/2006 (1,040,000)
(450) CITRIX SYSTEMS INCORPORATED CALL 35.00 09/16/2006 (297,000)
TOTAL WRITTEN OPTIONS (PREMIUMS RECEIVED $(1,154,114)) (1,337,000)
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
29
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
MID CAP GROWTH FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 98.15%
AMUSEMENT & RECREATION SERVICES - 2.44%
41,800 HARRAH'S ENTERTAINMENT INCORPORATED $ 3,412,552
47,100 WARNER MUSIC GROUP CORPORATION 1,246,266
4,658,818
--------------
APPAREL & ACCESSORY STORES - 0.96%
30,100 ABERCROMBIE & FITCH COMPANY CLASS A 1,827,973
--------------
AUTOMOTIVE REPAIR, SERVICES & PARKING - 1.64%
101,700 WRIGHT EXPRESS CORPORATION+ 3,131,343
--------------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE
BUILDERS - 1.46%
49,400 PULTE HOMES INCORPORATED 1,845,090
14,100 WALTER INDUSTRIES INCORPORATED<< 935,253
2,780,343
--------------
BUSINESS SERVICES - 17.85%
87,700 ALLIANCE DATA SYSTEMS CORPORATION+ 4,823,500
28,400 AQUANTIVE INCORPORATED+<< 711,704
49,600 AUTODESK INCORPORATED 2,085,184
18,900 CHECKFREE CORPORATION+ 1,018,143
66,702 COGENT INCORPORATED+<< 1,091,245
25,300 DST SYSTEMS INCORPORATED+<< 1,556,456
35,900 F5 NETWORKS INCORPORATED+ 2,102,304
43,100 GETTY IMAGES INCORPORATED+ 2,758,831
24 INTERPUBLIC GROUP OF COMPANIES INCORPORATED+<< 230
66,900 MONSTER WORLDWIDE INCORPORATED+ 3,840,060
23,000 NAVTEQ CORPORATION 954,960
254,812 QUEST SOFTWARE INCORPORATED+ 4,385,314
342,049 VALUECLICK INCORPORATED+<< 5,763,526
90,700 YAHOO! INCORPORATED+<< 2,973,146
34,064,603
--------------
CHEMICALS & ALLIED PRODUCTS - 6.57%
42,473 ADAMS RESPIRATORY THERAPEUTICS INCORPORATED+ 1,821,667
120,300 ALKERMES INCORPORATED+<< 2,582,841
30,600 BARR PHARMACEUTICALS INCORPORATED+<< 1,852,830
35,300 GENZYME CORPORATION+ 2,158,948
28,700 INVITROGEN CORPORATION+<< 1,894,487
38,800 NEUROCRINE BIOSCIENCES INCORPORATED+ 2,225,568
12,536,341
--------------
COMMUNICATIONS - 6.93%
68,065 NEUSTAR INCORPORATED CLASS A+<< 2,389,081
126,974 NII HOLDINGS INCORPORATED+<< 7,605,743
69,500 WEST CORPORATION+ 3,219,240
13,214,064
--------------
30
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
MID CAP GROWTH FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
DEPOSITORY INSTITUTIONS - 0.70%
26,200 SVB FINANCIAL GROUP+ $ 1,330,174
--------------
EATING & DRINKING PLACES - 0.59%
33,300 SONIC CORPORATION+ 1,129,203
--------------
EDUCATIONAL SERVICES - 2.50%
27,000 APOLLO GROUP INCORPORATED CLASS A+ 1,475,280
65,700 LAUREATE EDUCATION INCORPORATED+ 3,290,913
4,766,193
--------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS,
EXCEPT COMPUTER EQUIPMENT - 7.27%
32,500 BROADCOM CORPORATION CLASS A+ 1,336,075
10,900 COOPER INDUSTRIES LIMITED CLASS A 996,805
271,400 INTEGRATED DEVICE TECHNOLOGY INCORPORATED+ 4,130,708
15,900 L-3 COMMUNICATIONS HOLDINGS INCORPORATED 1,299,030
60,432 LINEAR TECHNOLOGY CORPORATION 2,145,336
58,400 MAXIM INTEGRATED PRODUCTS INCORPORATED 2,059,184
69,800 MICROSEMI CORPORATION+ 1,906,936
13,874,074
--------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED
SERVICES - 6.05%
38,201 ADVISORY BOARD COMPANY+ 2,143,840
52,200 AMYLIN PHARMACEUTICALS INCORPORATED+<< 2,273,310
36,900 GEN-PROBE INCORPORATED+ 1,973,043
191,829 RESOURCES CONNECTION INCORPORATED+<< 5,160,200
11,550,393
--------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION
EQUIPMENT - 1.20%
54,400 CRANE COMPANY 2,298,400
--------------
FOOD & KINDRED PRODUCTS - 0.52%
40,000 CONSTELLATION BRANDS INCORPORATED CLASS A+ 988,000
--------------
HEALTH SERVICES - 2.39%
109,200 NEKTAR THERAPEUTICS+<< 2,348,892
46,800 SHIRE PHARMACEUTICALS GROUP PLC ADR<< 2,216,448
4,565,340
--------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 3.93%
199,700 HILTON HOTELS CORPORATION 5,379,918
27,504 STATION CASINOS INCORPORATED 2,120,008
7,499,926
--------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 4.56%
40,100 GAMESTOP CORPORATION CLASS A+<< 1,892,720
59,100 TEREX CORPORATION+ 5,115,105
48,500 TIMKEN COMPANY 1,692,650
8,700,475
--------------
31
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
MID CAP GROWTH FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
LEATHER & LEATHER PRODUCTS - 1.37%
79,300 COACH INCORPORATED+ $ 2,618,486
--------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS - 5.37%
61,700 ADVANCED MEDICAL OPTICS INCORPORATED+<< 2,875,220
29,600 C.R. BARD INCORPORATED 2,204,016
60,600 KYPHON INCORPORATED+<< 2,517,930
17,100 ROCKWELL AUTOMATION INCORPORATED 1,239,066
35,700 ST. JUDE MEDICAL INCORPORATED+ 1,409,436
10,245,668
--------------
MEDICAL MANAGEMENT SERVICES - 1.76%
67,600 COVENTRY HEALTH CARE INCORPORATED+ 3,357,692
--------------
MEMBERSHIP ORGANIZATIONS - 0.91%
48,400 HORNBECK OFFSHORE+ 1,738,044
--------------
MOTION PICTURES - 0.46%
32,700 DREAMWORKS ANIMATION SKG INCORPORATED+ 886,170
--------------
OIL & GAS EXTRACTION - 3.73%
48,000 CHESAPEAKE ENERGY CORPORATION<< 1,520,640
29,800 ENSCO INTERNATIONAL INCORPORATED 1,594,002
111,800 PETROHAWK ENERGY CORPORATION+ 1,406,444
42,750 RANGE RESOURCES CORPORATION 1,134,158
34,466 XTO ENERGY INCORPORATED 1,459,635
7,114,879
--------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 2.51%
52,200 E.W. SCRIPPS COMPANY CLASS A 2,405,376
87,000 HARTE HANKS INCORPORATED 2,375,100
4,780,476
--------------
REAL ESTATE - 1.33%
28,210 CB RICHARD ELLIS GROUP INCORPORATED CLASS A+ 2,479,377
2,054 HUGOTON ROYALTY TRUST 56,798
2,536,175
--------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 3.18%
81,400 E*TRADE FINANCIAL CORPORATION+ 2,025,232
29,600 INVESTMENT TECHNOLOGY GROUP INCORPORATED+ 1,568,504
37,200 JEFFERIES GROUP INCORPORATED 2,471,940
6,065,676
--------------
THEATERS & ENTERTAINMENT - 1.00%
90,600 REGAL ENTERTAINMENT GROUP CLASS A<< 1,904,412
--------------
TRANSPORTATION EQUIPMENT - 4.50%
48,900 ITT INDUSTRIES INCORPORATED 2,749,647
51,200 OSHKOSH TRUCK CORPORATION 3,133,440
30,100 TEXTRON INCORPORATED 2,707,495
8,590,582
--------------
32
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
MID CAP GROWTH FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
WHOLESALE TRADE NON-DURABLE GOODS - 0.98%
59,200 ENDO PHARMACEUTICALS HOLDINGS INCORPORATED+ $ 1,861,840
--------------
WHOLESALE TRADE-DURABLE GOODS - 3.49%
80,600 CYTYC CORPORATION+ 2,083,510
18,000 W.W. GRAINGER INCORPORATED 1,384,560
42,424 WESCO INTERNATIONAL INCORPORATED+ 3,181,800
6,649,870
--------------
TOTAL COMMON STOCKS (COST $159,028,389) 187,265,633
--------------
COLLATERAL FOR SECURITIES LENDING - 17.34%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.62%
1,181,706 SCUDDER DAILY ASSETS MONEY MARKET FUND 1,181,706
--------------
PRINCIPAL INTEREST RATE MATURITY DATE
COLLATERAL INVESTED IN OTHER ASSETS - 16.72%
$ 90,116 AMERICAN GENERAL FINANCE CORPORATION+/-++ 4.93% 05/15/2007 90,154
37,518 APRECO LLC 4.60 05/15/2006 37,447
82,116 APRECO LLC++ 4.92 06/15/2006 81,607
740,954 AQUIFER FUNDING LIMITED 4.80 05/03/2006 740,754
250,322 AQUIFER FUNDING LIMITED++ 4.80 05/04/2006 250,222
250,322 AQUINAS FUNDING LLC++ 5.04 06/23/2006 248,495
511,639 ATLANTIC ASSET SECURITIZATION CORPORATION++ 4.86 05/11/2006 510,948
500,645 ATLAS CAPITAL FUNDING CORPORATION SERIES MTN+/- 4.81 11/03/2006 500,645
120,155 ATLAS CAPITAL FUNDING CORPORATION ++ 4.60 05/15/2006 119,928
250,322 ATLAS CAPITAL FUNDING CORPORATION+/- 4.93 12/22/2006 250,322
250,322 ATLAS CAPITAL FUNDING CORPORATION+/- 4.94 10/20/2006 250,322
250,322 ATLAS CAPITAL FUNDING CORPORATION+/- 4.98 04/25/2007 250,322
16,411 ATOMIUM FUNDING CORPORATION 4.81 05/03/2006 16,407
953,758 ATOMIUM FUNDING CORPORATION 4.81 05/04/2006 953,377
201,750 ATOMIUM FUNDING CORPORATION++ 4.83 05/05/2006 201,643
121,777 ATOMIUM FUNDING CORPORATION++ 5.00 06/12/2006 121,074
600,774 BASF AG ADR 4.81 05/04/2006 600,533
300,387 BEAR STEARNS & COMPANY+/- 4.93 10/04/2006 300,387
512,942 BEAR STEARNS & COMPANY REPURCHASE AGREEMENT
(MATURITY VALUE $513,012) 4.92 05/01/2006 512,942
34,735 BETA FINANCE INCORPORATED SERIES MTN+/-++ 4.91 06/02/2006 34,737
5,507,092 BNP PARIBAS REPURCHASE AGREEMENT
(MATURITY VALUE $5,507,846) 4.93 05/01/2006 5,507,092
333,399 BUCKINGHAM CDO LLC++ 4.96 05/23/2006 332,396
500,645 BUCKINGHAM CDO LLC++ 5.08 07/24/2006 494,827
602,746 BUCKINGHAM II CDO LLC++ 4.86 05/08/2006 602,186
70,090 BUCKINGHAM II CDO LLC++ 4.95 05/24/2006 69,869
130,168 CAIRN HIGH GRADE FUNDING I++ 4.76 05/10/2006 130,009
250,322 CAIRN HIGH GRADE FUNDING I 4.81 05/02/2006 250,290
200,258 CAIRN HIGH GRADE FUNDING I 4.83 05/08/2006 200,072
170,219 CAIRN HIGH GRADE FUNDING I 4.93 05/18/2006 169,826
138,178 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.68 05/08/2006 138,049
33
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
MID CAP GROWTH FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 44,527 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.69% 05/10/2006 $ 44,473
200,258 CEDAR SPRINGS CAPITAL COMPANY LLC 4.70 05/12/2006 199,960
103,363 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.80 05/05/2006 103,308
322,305 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.83 05/09/2006 321,957
100,129 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.89 06/07/2006 99,619
266,493 CEDAR SPRINGS CAPITAL COMPANY LLC 4.90 06/12/2006 264,956
313,604 CEDAR SPRINGS CAPITAL COMPANY LLC 4.99 06/21/2006 311,399
145,187 CEDAR SPRINGS CAPITAL COMPANY LLC 5.01 06/05/2006 144,489
500,645 CONCORD MINUTEMEN CAPITAL COMPANY SERIES A 4.83 05/12/2006 499,899
251,304 CONCORD MINUTEMEN CAPITAL COMPANY SERIES A 4.85 05/11/2006 250,964
700,903 CONCORD MINUTEMEN CAPITAL COMPANY SERIES B+/-++ 4.85 05/14/2006 700,903
647,834 CORPORATE ASSET SECURITIZATION AUSTRALIA LIMITED 5.00 05/25/2006 645,703
310,400 CREDIT SUISSE FIRST BOSTON NEW YORK SERIES YCD1+/- 4.92 05/04/2006 310,381
250,322 CULLINAN FINANCE CORPORATION SERIES MTN+/-++ 4.71 11/15/2006 250,347
130,168 DEER VALLEY FUNDING LLC++ 4.78 05/03/2006 130,133
380,490 DEER VALLEY FUNDING LLC 4.84 05/08/2006 380,136
19,595 DEER VALLEY FUNDING LLC++ 4.89 05/15/2006 19,558
160,046 DEER VALLEY FUNDING LLC++ 4.92 05/16/2006 159,721
1,245,568 DEUTSCHE BANK REPURCHASE AGREEMENT
(MATURITY VALUE $1,245,734) 4.82 05/01/2006 1,245,568
16,021 EDISON ASSET SECURITIZATION LLC 4.84 05/15/2006 15,990
20,026 EIFFEL FUNDING LLC 4.80 05/01/2006 20,026
360,675 EUREKA SECURITIZATION INCORPORATED 4.86 05/16/2006 359,942
600,774 GEMINI SECURITIZATION INCORPORATED 4.79 05/01/2006 600,774
15,019 GEMINI SECURITIZATION INCORPORATED++ 4.88 05/24/2006 14,972
450,330 GEORGE STREET FINANCE LLC 4.80 05/02/2006 450,271
240,309 GOLDMAN SACHS GROUP INCORPORATED+/- 4.97 06/30/2006 240,310
20,026 HARRIER FINANCE FUNDING LLC+/-++ 4.98 05/15/2007 20,030
35,045 HBOS TREASURY SERVICES PLC+/-++ 5.12 01/12/2007 35,080
160,206 ING USA ANNUITY & LIFE INSURANCE+/- 5.03 06/06/2006 160,206
13,017 K2 USA LLC 4.61 05/02/2006 13,015
46,310 K2 USA LLC SERIES MTN+/-++ 4.90 07/24/2006 46,319
150,193 KAUPTHING BANK HF+/-++ 4.98 03/20/2007 149,965
40,052 KLIO II FUNDING CORPORATION++ 4.96 06/30/2006 39,720
334,721 KLIO III FUNDING CORPORATION++ 4.93 05/22/2006 333,764
481,300 KLIO III FUNDING CORPORATION++ 4.96 06/30/2006 477,320
10,013 LEXINGTON PARKER CAPITAL CORPORATION 4.60 05/02/2006 10,012
38,009 LEXINGTON PARKER CAPITAL CORPORATION 4.68 05/10/2006 37,963
1,604,777 LEXINGTON PARKER CAPITAL CORPORATION 4.85 05/05/2006 1,603,926
17,022 LEXINGTON PARKER CAPITAL CORPORATION 4.96 06/20/2006 16,905
250,322 LIBERTY LIGHT US CAPITAL SERIES MTN+/-++ 4.84 05/26/2006 250,327
20,026 LINKS FINANCE LLC SERIES MTN1+/-++ 4.82 09/12/2006 20,026
150,193 LIQUID FUNDING LIMITED+/-++ 4.79 12/01/2006 150,193
230,297 LIQUID FUNDING LIMITED+/-++ 4.88 08/14/2006 230,297
60,077 LIQUID FUNDING LIMITED SERIES MTN+/-++ 4.85 02/20/2007 60,079
100,129 MBIA GLOBAL FUNDING LLC+/-++ 4.92 02/20/2007 100,123
503,148 MERRILL LYNCH & COMPANY SERIES MTN+/- 5.28 10/27/2006 503,551
34
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
MID CAP GROWTH FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 300,387 MORGAN STANLEY+/- 4.94% 10/10/2006 $ 300,387
46,310 MORGAN STANLEY SERIES EXL+/- 4.93 08/13/2010 46,321
226,291 MORTGAGE INTEREST NET TRUST 4.76 05/03/2006 226,230
10,013 NATIONWIDE BUILDING SOC+/-++ 5.20 07/21/2006 10,016
44,637 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 4.91 06/26/2006 44,293
16,071 NORDEA NORTH AMERICA INCORPORATED 4.80 05/03/2006 16,066
32,041 NORDEA NORTH AMERICA INCORPORATED 4.81 05/09/2006 32,007
19,025 NORDEA NORTH AMERICA INCORPORATED 4.87 05/15/2006 18,989
29,989 NORTH SEA FUNDING LLC++ 5.00 06/26/2006 29,757
500,645 NORTHERN ROCK PLC+/-++ 4.83 02/05/2007 500,670
40,502 RACERS TRUST 2004+/-++ 4.95 05/22/2006 40,508
188,713 REGENCY MARKETS LLC++ 5.06 07/20/2006 186,624
10,013 SCALDIS CAPITAL LIMITED++ 4.91 06/15/2006 9,951
499,593 SEDNA FINANCE INCORPORATED++ 4.86 05/02/2006 499,528
200,258 SLM CORPORATION+/- 4.86 05/04/2007 200,208
80,103 SWEDBANK (FORENINGS SPARBANKEN) 4.81 05/09/2006 80,017
50,064 SWEDISH NATIONAL HOUSING FINANCE (SBAB) 5.06 07/18/2006 49,524
40,052 TANGO FINANCE CORPORATION++ 4.94 06/21/2006 39,770
115,779 TANGO FINANCE CORPORATION SERIES MTN+/-++ 4.90 10/25/2006 115,817
302,680 THUNDER BAY FUNDING INCORPORATED++ 5.00 06/16/2006 300,761
356,599 TIERRA ALTA FUNDING I LIMITED++ 4.82 05/10/2006 356,164
516,085 TIERRA ALTA FUNDING I LIMITED++ 4.83 05/11/2006 515,388
57,885 TRAVELERS INSURANCE COMPANY+/- 4.92 02/09/2007 57,883
250,322 UNICREDITO ITALIANO SERIES LIB+/- 4.86 03/09/2007 250,317
380,490 US BANK NA SERIES BKNT+/- 5.13 07/28/2006 380,509
30,039 VERSAILLES CDS LLC 4.87 05/15/2006 29,982
250,322 VERSAILLES CDS LLC 4.99 06/20/2006 248,598
10,013 VERSAILLES CDS LLC++ 5.00 06/21/2006 9,943
105,756 VERSAILLES CDS LLC++ 5.04 06/28/2006 104,911
100,129 WHISTLEJACKET CAPITAL LIMITED+/-++ 4.80 06/09/2006 100,129
50,064 WHISTLEJACKET CAPITAL LIMITED++ 4.91 05/15/2006 49,970
161,758 WHISTLEJACKET CAPITAL LIMITED++ 5.02 06/26/2006 160,510
50,064 WHITE PINE FINANCE LLC++ 4.80 05/05/2006 50,038
40,873 WHITE PINE FINANCE LLC++ 4.83 05/25/2006 40,738
250,322 WHITE PINE FINANCE LLC+/-++ 4.85 07/17/2006 250,322
30,760 WHITE PINE FINANCE LLC++ 4.91 06/20/2006 30,548
264,230 WHITE PINE FINANCE LLC++ 4.92 06/22/2006 262,338
240,309 WHITE PINE FINANCE LLC SERIES MTN1+/-++ 4.84 06/12/2006 240,319
31,897,513
------------
TOTAL COLLATERAL FOR SECURITIES LENDING** (COST $33,079,219) 33,079,219
------------
35
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
MID CAP GROWTH FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
RIGHTS - 0.00%
31,200 SEAGATE TECHNOLOGY RIGHTS+(A) 0
TOTAL RIGHTS (COST $0) 0
--------------
SHORT-TERM INVESTMENTS - 1.33%
2,530,557 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~@ $ 2,530,557
--------------
TOTAL SHORT-TERM INVESTMENTS (COST $2,530,557) 2,530,557
--------------
TOTAL INVESTMENTS IN SECURITIES
(COST $194,638,165)* 116.82% $ 222,875,409
OTHER ASSETS AND LIABILITIES, NET (16.82) (32,084,112)
------ --------------
TOTAL NET ASSETS 100.00% $ 190,791,297
------ --------------
+ NON-INCOME EARNING SECURITIES.
<< ALL OR A PORTION OF THIS SECURITY IS ON LOAN.
+/- VARIABLE RATE INVESTMENTS.
++ SECURITIES THAT MAY BE RESOLD TO "QUALIFIED INSTITUTIONAL BUYERS" UNDER
RULE 144A OR SECURITIES OFFERED PURSUANT TO SECTION 4 (2) OF THE
SECURITIES ACT OF 1933, AS AMENDED.
** SECURITIES PURCHASED WITH CASH COLLATERAL FROM SECURITIES OUT-ON-LOAN. THE
FUND HAS ALSO RECEIVED NON-CASH COLLATERAL IN THE AMOUNT OF $3,548,000.
THE TOTAL COLLATERAL RECEIVED REPRESENTS 103% OF THE VALUE OF THE
PORTFOLIO SECURITIES LOANED.
(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 MONEY MARKET FUND. THE FUND DOES NOT PURPOSES IN A WELLS FARGO
ADVANTAGE PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
@ SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $2,530,557.
* 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
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
SMALL CAP GROWTH FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 99.02%
AMUSEMENT & RECREATION SERVICES - 1.25%
78,500 PINNACLE ENTERTAINMENT+ $ 2,143,050
51,100 WMS INDUSTRIES INCORPORATED+ 1,596,875
3,739,925
------------
APPAREL & ACCESSORY STORES - 1.66%
73,000 AEROPOSTALE INCORPORATED+ 2,241,830
142,300 CASUAL MALE RETAIL GROUP INCORPORATED+<< 1,340,466
99,698 CHARMING SHOPPES INCORPORATED+ 1,370,848
4,953,144
------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR
MATERIALS - 0.52%
114,429 QUIKSILVER INCORPORATED+<< 1,564,244
------------
AUTOMOTIVE REPAIR, SERVICES & PARKING - 1.71%
165,571 WRIGHT EXPRESS CORPORATION+ 5,097,931
------------
BUSINESS SERVICES - 23.88%
44,100 AQUANTIVE INCORPORATED+<< 1,105,146
104,041 COGENT INCORPORATED+<< 1,702,111
127,200 EPICOR SOFTWARE CORPORATION+ 1,542,936
91,432 GEVITY HR INCORPORATED 2,348,888
159,100 GLOBAL CASH ACCESS INCORPORATED+ 3,100,859
100,175 HUDSON HIGHLAND GROUP INCORPORATED+ 2,018,526
152,833 HYPERCOM CORPORATION+ 1,387,724
54 INTERPUBLIC GROUP OF COMPANIES INCORPORATED+<< 517
76,901 JUPITERMEDIA CORPORATION+<< 1,354,996
167,400 LABOR READY INCORPORATED+ 4,424,382
101,657 MARCHEX INCORPORATED CLASS B+<< 2,212,056
64,333 OPEN SOLUTIONS INCORPORATED+<< 1,751,144
149,924 PEOPLESUPPORT INCORPORATED+ 1,610,933
140,198 PLANETOUT INCORPORATED+<< 1,309,449
385,089 QUEST SOFTWARE INCORPORATED+ 6,627,382
70,465 SAFENET INCORPORATED+<< 1,415,642
321,259 SECURE COMPUTING CORPORATION+ 3,453,534
130,961 SI INTERNATIONAL INCORPORATED+ 4,461,841
506,200 SKILLSOFT PLC ADR+ 2,763,852
173,482 TALEO CORPORATION CLASS A+ 2,277,819
114,200 TRANSACTION SYSTEMS ARCHITECTS INCORPORATED CLASS A+ 4,561,148
524,990 VALUECLICK INCORPORATED+<< 8,846,082
96,565 VENTIV HEALTH INCORPORATED+ 2,900,813
232,332 WEBEX COMMUNICATIONS INCORPORATED+<< 8,212,936
71,390,716
------------
CHEMICALS & ALLIED PRODUCTS - 7.22%
65,293 ADAMS RESPIRATORY THERAPEUTICS INCORPORATED+ 2,800,417
188,517 ALKERMES INCORPORATED+<< 4,047,460
161,100 FIRST HORIZON PHARMACEUTICAL CORPORATION+<< 3,587,697
114,800 MGI PHARMA INCORPORATED+ 2,144,464
37
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP GROWTH FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
CHEMICALS & ALLIED PRODUCTS (CONTINUED)
50,035 NEUROCRINE BIOSCIENCES INCORPORATED+ $ 2,870,008
138,165 ONYX PHARMACEUTICALS INCORPORATED+<< 3,226,153
98,000 PAREXEL INTERNATIONAL CORPORATION+<< 2,891,980
21,568,178
------------
COMMUNICATIONS - 2.56%
89,729 CBEYOND COMMUNICATIONS INCORPORATED+<< 1,772,148
114,071 LODGENET ENTERTAINMENT CORPORATION+<< 2,176,475
105,758 NEUSTAR INCORPORATED CLASS A+<< 3,712,106
7,660,728
------------
DEPOSITORY INSTITUTIONS - 1.16%
45,950 FIDELITY BANKSHARES INCORPORATED 1,480,509
39,400 SVB FINANCIAL GROUP+<< 2,000,338
3,480,847
------------
EATING & DRINKING PLACES - 0.94%
88,635 CALIFORNIA PIZZA KITCHEN INCORPORATED+ 2,800,866
------------
EDUCATIONAL SERVICES - 1.93%
63,691 LAUREATE EDUCATION INCORPORATED+ 3,190,282
24,700 STRAYER EDUCATION INCORPORATED 2,568,553
5,758,835
------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT - 5.01%
403,200 INTEGRATED DEVICE TECHNOLOGY INCORPORATED+ 6,136,704
131,400 MICROSEMI CORPORATION+ 3,589,848
727,950 NMS COMMUNICATIONS CORPORATION+ 3,115,626
143,314 UNIVERSAL DISPLAY CORPORATION+<< 2,141,111
14,983,289
------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED
SERVICES - 8.59%
59,144 ADVISORY BOARD COMPANY+ 3,319,161
123,200 CV THERAPEUTICS INCORPORATED+<< 2,445,520
55,100 GEN-PROBE INCORPORATED+ 2,946,197
75,715 HURON CONSULTING GROUP INCORPORATED+ 2,691,668
112,082 LUMINEX CORPORATION+<< 1,701,405
190,271 NAVIGANT CONSULTING INCORPORATED+<< 4,010,913
318,734 RESOURCES CONNECTION INCORPORATED+<< 8,573,945
25,688,809
------------
FOOD & KINDRED PRODUCTS - 0.87%
181,816 SENOMYX INCORPORATED+ 2,601,787
------------
FURNITURE & FIXTURES - 0.93%
115,300 SEALY CORPORATION+ 1,839,035
38,500 WILLIAMS SCOTSMAN INTERNATIONAL INCORPORATED+ 945,945
2,784,980
------------
38
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
SMALL CAP GROWTH FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
HEALTH SERVICES - 1.87%
75,800 AMERICAN RETIREMENT CORPORATION+<< $ 1,925,320
169,900 NEKTAR THERAPEUTICS+<< 3,654,549
5,579,869
------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 3.65%
112,468 GAYLORD ENTERTAINMENT COMPANY+ 4,976,709
145,072 ORIENT EXPRESS HOTELS LIMITED CLASS A 5,947,952
10,924,661
------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 5.47%
68,072 A.S.V. INCORPORATED+<< 1,701,800
46,495 ACTUANT CORPORATION CLASS A 2,973,354
61,398 GAMESTOP CORPORATION CLASS A+<< 2,897,986
91,854 GARDNER DENVER INCORPORATED+ 6,845,879
45,200 KAYDON CORPORATION<< 1,940,888
16,359,907
------------
INSURANCE AGENTS, BROKERS & SERVICE - 0.67%
38,489 NATIONAL FINANCIAL PARTNERS CORPORATION 2,001,427
------------
INSURANCE CARRIERS - 0.83%
52,219 THE NAVIGATORS GROUP INCORPORATED+ 2,470,481
------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS - 6.29%
59,700 ADVANCED MEDICAL OPTICS INCORPORATED+<< 2,782,020
74,090 DJ ORTHOPEDICS INCORPORATED+ 2,945,818
38,400 HAEMONETICS CORPORATION+ 2,092,800
286,689 IXIA+ 3,239,586
94,400 KYPHON INCORPORATED+<< 3,922,320
97,537 NUVASIVE INCORPORATED+ 1,942,937
103,300 THORATEC LABS CORPORATION+ 1,860,433
18,785,914
------------
MEMBERSHIP ORGANIZATIONS - 2.34%
75,200 HORNBECK OFFSHORE+ 2,700,432
109,920 TRAMMELL CROW COMPANY+ 4,279,186
6,979,618
------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 1.95%
64,100 ACCO BRANDS CORPORATION+<< 1,376,868
230,801 IDENTIX INCORPORATED+<< 1,710,235
73,901 SHUFFLE MASTER INCORPORATED+<< 2,730,642
5,817,745
------------
MISCELLANEOUS RETAIL - 2.11%
111,581 CKX INCORPORATED+ 1,574,408
193,730 PRICELINE.COM INCORPORATED+<< 4,734,761
6,309,169
------------
39
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP GROWTH FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
OIL & GAS EXTRACTION - 3.35%
58,448 COMSTOCK RESOURCES INCORPORATED+ $ 1,816,564
109,520 GOODRICH PETROLEUM CORPORATION+<< 2,961,421
82,500 KCS ENERGY INCORPORATED 2,421,375
57,000 TETRA TECH INCORPORATED+ 2,804,400
10,003,760
------------
PERSONAL SERVICES - 1.86%
97,700 JACKSON HEWITT TAX SERVICE INCORPORATED 2,919,276
61,398 STEINER LEISURE LIMITED+ 2,647,482
5,566,758
------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 0.82%
76,500 VISTAPRINT LIMITED+ 2,446,470
------------
REAL ESTATE - 0.53%
24,300 MERITAGE CORPORATION+ 1,593,594
------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 2.10%
13,000 GFI GROUP INCORPORATED+ 739,440
45,600 INVESTMENT TECHNOLOGY GROUP INCORPORATED+<< 2,416,344
98,926 OPTIONSXPRESS HOLDINGS INCORPORATED 3,116,169
6,271,953
------------
TRANSPORTATION EQUIPMENT - 0.58%
96,931 K & F INDUSTRIES HOLDINGS INCORPORATED+ 1,719,556
------------
TRANSPORTATION SERVICES - 1.20%
72,663 HUB GROUP INCORPORATED CLASS A+ 3,572,840
------------
WHOLESALE TRADE-DURABLE GOODS - 5.18%
83,400 BARNES GROUP INCORPORATED 3,758,838
124,300 INTERLINE BRANDS INCORPORATED+ 3,331,240
235,289 PSS WORLD MEDICAL INCORPORATED+ 4,244,614
55,280 WESCO INTERNATIONAL INCORPORATED+ 4,146,000
15,480,692
------------
TOTAL COMMON STOCKS (COST $254,984,922) 295,958,693
------------
COLLATERAL FOR SECURITIES LENDING - 25.95%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.93%
2,771,285 SCUDDER DAILY ASSETS MONEY MARKET FUND 2,771,285
------------
PRINCIPAL INTEREST RATE MATURITY DATE
COLLATERAL INVESTED IN OTHER ASSETS - 25.03%
$ 211,336 AMERICAN GENERAL FINANCE CORPORATION+/-++ 4.93% 05/15/2007 211,425
87,986 APRECO LLC 4.60 05/15/2006 87,820
192,574 APRECO LLC++ 4.92 06/15/2006 191,382
1,737,653 AQUIFER FUNDING LIMITED 4.80 05/03/2006 1,737,184
587,045 AQUIFER FUNDING LIMITED++ 4.80 05/04/2006 586,810
587,045 AQUINAS FUNDING LLC++ 5.04 06/23/2006 582,760
1,199,873 ATLANTIC ASSET SECURITIZATION CORPORATION++ 4.86 05/11/2006 1,198,253
40
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
SMALL CAP GROWTH FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 1,174,090 ATLAS CAPITAL FUNDING CORPORATION SERIES MTN+/- 4.81% 11/03/2006 $ 1,174,090
281,782 ATLAS CAPITAL FUNDING CORPORATION++ 4.60 05/15/2006 281,249
587,045 ATLAS CAPITAL FUNDING CORPORATION+/- 4.93 12/22/2006 587,045
587,045 ATLAS CAPITAL FUNDING CORPORATION+/- 4.98 04/25/2007 587,045
587,045 ATLAS CAPITAL FUNDING CORPORATION+/- 4.94 10/20/2006 587,045
38,487 ATOMIUM FUNDING CORPORATION 4.81 05/03/2006 38,476
2,236,712 ATOMIUM FUNDING CORPORATION 4.81 05/04/2006 2,235,817
473,135 ATOMIUM FUNDING CORPORATION++ 4.83 05/05/2006 472,884
285,586 ATOMIUM FUNDING CORPORATION++ 5.00 06/12/2006 283,938
1,408,908 BASF AG ADR 4.81 05/04/2006 1,408,344
704,454 BEAR STEARNS & COMPANY+/- 4.93 10/04/2006 704,454
1,202,928 BEAR STEARNS & COMPANY REPURCHASE AGREEMENT
(MATURITY VALUE $1,203,093) 4.92 05/01/2006 1,202,928
81,458 BETA FINANCE INCORPORATED SERIES MTN+/-++ 4.91 06/02/2006 81,463
12,914,991 BNP PARIBAS REPURCHASE AGREEMENT
(MATURITY VALUE $12,916,759) 4.93 05/01/2006 12,914,991
781,874 BUCKINGHAM CDO LLC++ 4.96 05/23/2006 779,520
1,174,090 BUCKINGHAM CDO LLC++ 5.08 07/24/2006 1,160,447
1,413,534 BUCKINGHAM II CDO LLC++ 4.86 05/08/2006 1,412,219
164,373 BUCKINGHAM II CDO LLC++ 4.95 05/24/2006 163,855
305,263 CAIRN HIGH GRADE FUNDING I++ 4.76 05/10/2006 304,891
587,045 CAIRN HIGH GRADE FUNDING I 4.81 05/02/2006 586,969
469,636 CAIRN HIGH GRADE FUNDING I 4.83 05/08/2006 469,199
399,191 CAIRN HIGH GRADE FUNDING I 4.93 05/18/2006 398,268
324,049 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.68 05/08/2006 323,747
104,424 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.69 05/10/2006 104,296
469,636 CEDAR SPRINGS CAPITAL COMPANY LLC 4.70 05/12/2006 468,936
242,403 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.80 05/05/2006 242,274
755,856 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.83 05/09/2006 755,039
234,818 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.89 06/07/2006 233,623
624,968 CEDAR SPRINGS CAPITAL COMPANY LLC 4.90 06/12/2006 621,362
735,450 CEDAR SPRINGS CAPITAL COMPANY LLC 4.99 06/21/2006 730,280
340,486 CEDAR SPRINGS CAPITAL COMPANY LLC 5.01 06/05/2006 338,848
1,174,090 CONCORD MINUTEMEN CAPITAL COMPANY SERIES A 4.83 05/12/2006 1,172,341
589,346 CONCORD MINUTEMEN CAPITAL COMPANY SERIES A 4.85 05/11/2006 588,551
1,643,726 CONCORD MINUTEMEN CAPITAL COMPANY SERIES B+/-++ 4.85 05/14/2006 1,643,726
1,519,273 CORPORATE ASSET SECURITIZATION AUSTRALIA LIMITED 5.00 05/25/2006 1,514,274
727,936 CREDIT SUISSE FIRST BOSTON NEW YORK SERIES YCD1+/- 4.92 05/04/2006 727,892
587,045 CULLINAN FINANCE CORPORATION SERIES MTN+/-++ 4.71 11/15/2006 587,104
305,263 DEER VALLEY FUNDING LLC++ 4.78 05/03/2006 305,181
892,308 DEER VALLEY FUNDING LLC 4.84 05/08/2006 891,479
45,954 DEER VALLEY FUNDING LLC++ 4.89 05/15/2006 45,867
375,333 DEER VALLEY FUNDING LLC++ 4.92 05/16/2006 374,571
2,921,051 DEUTSCHE BANK REPURCHASE AGREEMENT
(MATURITY VALUE $2,921,442) 4.82 05/01/2006 2,921,051
37,571 EDISON ASSET SECURITIZATION LLC 4.84 05/15/2006 37,500
46,964 EIFFEL FUNDING LLC 4.80 05/01/2006 46,964
845,838 EUREKA SECURITIZATION INCORPORATED 4.86 05/16/2006 844,121
41
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP GROWTH FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 1,408,908 GEMINI SECURITIZATION INCORPORATED 4.79% 05/01/2006 $ 1,408,908
35,223 GEMINI SECURITIZATION INCORPORATED++ 4.88 05/24/2006 35,112
1,056,094 GEORGE STREET FINANCE LLC 4.80 05/02/2006 1,055,957
563,563 GOLDMAN SACHS GROUP INCORPORATED+/- 4.97 06/30/2006 563,563
46,964 HARRIER FINANCE FUNDING LLC+/-++ 4.98 05/15/2007 46,974
82,186 HBOS TREASURY SERVICES PLC+/-++ 5.12 01/12/2007 82,268
375,709 ING USA ANNUITY & LIFE INSURANCE+/- 5.03 06/06/2006 375,709
30,526 K2 USA LLC 4.61 05/02/2006 30,522
108,603 K2 USA LLC SERIES MTN+/-++ 4.90 07/24/2006 108,625
352,227 KAUPTHING BANK HF+/-++ 4.98 03/20/2007 351,692
93,927 KLIO II FUNDING CORPORATION++ 4.96 06/30/2006 93,150
784,973 KLIO III FUNDING CORPORATION++ 4.93 05/22/2006 782,728
1,128,723 KLIO III FUNDING CORPORATION++ 4.96 06/30/2006 1,119,389
23,482 LEXINGTON PARKER CAPITAL CORPORATION 4.60 05/02/2006 23,479
89,137 LEXINGTON PARKER CAPITAL CORPORATION 4.68 05/10/2006 89,028
3,763,452 LEXINGTON PARKER CAPITAL CORPORATION 4.85 05/05/2006 3,761,457
39,919 LEXINGTON PARKER CAPITAL CORPORATION 4.96 06/20/2006 39,644
587,045 LIBERTY LIGHT US CAPITAL SERIES MTN+/-++ 4.84 05/26/2006 587,057
46,964 LINKS FINANCE LLC SERIES MTN1+/-++ 4.82 09/12/2006 46,964
352,227 LIQUID FUNDING LIMITED+/-++ 4.79 12/01/2006 352,227
540,081 LIQUID FUNDING LIMITED+/-++ 4.88 08/14/2006 540,081
140,891 LIQUID FUNDING LIMITED SERIES MTN+/-++ 4.85 02/20/2007 140,894
234,818 MBIA GLOBAL FUNDING LLC+/-++ 4.92 02/20/2007 234,804
1,179,961 MERRILL LYNCH & COMPANY SERIES MTN+/- 5.28 10/27/2006 1,180,904
704,454 MORGAN STANLEY+/- 4.94 10/10/2006 704,454
108,603 MORGAN STANLEY SERIES EXL+/- 4.93 08/13/2010 108,629
530,689 MORTGAGE INTEREST NET TRUST 4.76 05/03/2006 530,545
23,482 NATIONWIDE BUILDING SOC+/-++ 5.20 07/21/2006 23,490
104,682 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 4.91 06/26/2006 103,874
37,688 NORDEA NORTH AMERICA INCORPORATED 4.80 05/03/2006 37,678
75,142 NORDEA NORTH AMERICA INCORPORATED 4.81 05/09/2006 75,061
44,615 NORDEA NORTH AMERICA INCORPORATED 4.87 05/15/2006 44,531
70,328 NORTH SEA FUNDING LLC++ 5.00 06/26/2006 69,785
1,174,090 NORTHERN ROCK PLC+/-++ 4.83 02/05/2007 1,174,149
94,984 RACERS TRUST 2004-6-MM+/-++ 4.95 05/22/2006 94,997
442,562 REGENCY MARKETS LLC++ 5.06 07/20/2006 437,662
23,482 SCALDIS CAPITAL LIMITED++ 4.91 06/15/2006 23,336
1,171,624 SEDNA FINANCE INCORPORATED++ 4.86 05/02/2006 1,171,472
469,636 SLM CORPORATION+/- 4.86 05/04/2007 469,519
187,854 SWEDBANK (FORENINGS SPARBANKEN) 4.81 05/09/2006 187,652
117,409 SWEDISH NATIONAL HOUSING FINANCE (SBAB) 5.06 07/18/2006 116,142
93,927 TANGO FINANCE CORPORATION++ 4.94 06/21/2006 93,267
271,520 TANGO FINANCE CORPORATION SERIES MTN+/-++ 4.90 10/25/2006 271,610
709,831 THUNDER BAY FUNDING INCORPORATED++ 5.00 06/16/2006 705,331
836,281 TIERRA ALTA FUNDING I LIMITED++ 4.82 05/10/2006 835,261
1,210,299 TIERRA ALTA FUNDING I LIMITED++ 4.83 05/11/2006 1,208,665
135,748 TRAVELERS INSURANCE COMPANY+/- 4.92 02/09/2007 135,746
42
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
SMALL CAP GROWTH FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 587,045 UNICREDITO ITALIANO SERIES LIB+/- 4.86% 03/09/2007 $ 587,033
892,308 US BANK NA SERIES BKNT+/- 5.13 07/28/2006 892,353
70,445 VERSAILLES CDS LLC 4.87 05/15/2006 70,312
587,045 VERSAILLES CDS LLC 4.99 06/20/2006 583,000
23,482 VERSAILLES CDS LLC++ 5.00 06/21/2006 23,317
248,015 VERSAILLES CDS LLC++ 5.04 06/28/2006 246,033
234,818 WHISTLEJACKET CAPITAL LIMITED+/-++ 4.80 06/09/2006 234,818
117,409 WHISTLEJACKET CAPITAL LIMITED++ 4.91 05/15/2006 117,187
379,349 WHISTLEJACKET CAPITAL LIMITED++ 5.02 06/26/2006 376,420
117,409 WHITE PINE FINANCE LLC++ 4.80 05/05/2006 117,347
95,853 WHITE PINE FINANCE LLC++ 4.83 05/25/2006 95,537
587,045 WHITE PINE FINANCE LLC+/-++ 4.85 07/17/2006 587,045
72,136 WHITE PINE FINANCE LLC++ 4.91 06/20/2006 71,639
619,661 WHITE PINE FINANCE LLC++ 4.92 06/22/2006 615,224
563,563 WHITE PINE FINANCE LLC SERIES MTN1+/-++ 4.84 06/12/2006 563,589
74,804,644
------------
TOTAL COLLATERAL FOR SECURITIES LENDING** (COST $77,575,929) 77,575,929
------------
SHARES
WARRANTS - 0.00%
108 IMPERIAL CREDIT INDUSTRY+(A) 0
2,851 TIMCO AVIATION SERVICES INCORPORATED+(A) 0
TOTAL WARRANTS (COST $0) 0
------------
SHORT-TERM INVESTMENTS - 1.63%
4,868,796 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~@ 4,868,796
------------
TOTAL SHORT-TERM INVESTMENTS (COST $4,868,796) 4,868,796
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $337,429,648)* 126.60% $378,403,418
OTHER ASSETS AND LIABILITIES, NET (26.60) (79,506,346)
------ ------------
TOTAL NET ASSETS 100.00% $298,897,072
====== ============
+ NON-INCOME EARNING SECURITIES.
<< ALL OR A PORTION OF THIS SECURITY IS ON LOAN.
+/- VARIABLE RATE INVESTMENTS.
++ SECURITIES THAT MAY BE RESOLD TO "QUALIFIED INSTITUTIONAL BUYERS" UNDER
RULE 144A OR SECURITIES OFFERED PURSUANT TO SECTION 4 (2) OF THE
SECURITIES ACT OF 1933, AS AMENDED.
~ 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.
** SECURITIES PURCHASED WITH CASH COLLATERAL FROM SECURITIES OUT-ON-LOAN. THE
FUND HAS ALSO RECEIVED NON-CASH COLLATERAL IN THE AMOUNT OF $3,808,400.
THE TOTAL COLLATERAL RECEIVED REPRESENTS 105% OF THE VALUE OF THE
PORTFOLIO SECURITIES LOANED.
(A) SECURITY FAIR VALUED IN ACCORDANCE WITH THE PROCEDURES APPROVED BY THE
BOARD OF TRUSTEES.
@ SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $4,868,796.
* 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.
43
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 89.56%
AMUSEMENT & RECREATION SERVICES - 0.40%
42,170 INTRAWEST CORPORATION $ 1,513,903
68,100 PINNACLE ENTERTAINMENT+ 1,859,130
3,373,033
------------
APPAREL & ACCESSORY STORES - 1.13%
267,400 CLAIRE'S STORES INCORPORATED 9,417,828
------------
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS - 0.12%
80,600 CSK AUTO CORPORATION+ 1,035,710
------------
AUTOMOTIVE REPAIR, SERVICES & PARKING - 0.40%
125,400 STANDARD PARKING CORPORATION+<< 3,388,308
------------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS -
0.65%
180,000 PERINI CORPORATION+<< 5,405,400
------------
BUSINESS SERVICES - 15.04%
266,200 ABM INDUSTRIES INCORPORATED 4,578,640
211,200 ALTIRIS INCORPORATED+ 4,519,680
138,300 CSG SYSTEMS INTERNATIONAL INCORPORATED+ 3,496,224
119,700 F5 NETWORKS INCORPORATED+<< 7,009,632
108,600 FILENET CORPORATION+<< 3,021,252
537,500 GARTNER INCORPORATED+ 7,535,750
177,100 GEVITY HR INCORPORATED 4,549,699
88,550 H&E EQUIPMENT SERVICES INCORPORATED+ 3,091,280
632,300 INFORMATICA CORPORATION+<< 9,718,451
219,300 KANBAY INTERNATIONAL INCORPORATED+<< 3,399,150
193,890 LIONBRIDGE TECHNOLOGIES INCORPORATED+ 1,593,776
248,700 MAPINFO CORPORATION+ 3,456,930
487,600 PARAMETRIC TECHNOLOGY CORPORATION+ 7,284,744
496,200 PEROT SYSTEMS CORPORATION CLASS A+ 7,482,696
323,300 RENT-A-CENTER INCORPORATED+ 8,929,546
519,400 RIGHTNOW TECHNOLOGIES INCORPORATED+<< 9,614,094
874,500 RSA SECURITY INCORPORATED+ 18,312,030
148,900 SINA CORPORATION+<< 3,938,405
299,200 THQ INCORPORATED+<< 7,668,496
396,300 VALUECLICK INCORPORATED+<< 6,677,655
125,878,130
------------
CHEMICALS & ALLIED PRODUCTS - 9.40%
67,600 ADAMS RESPIRATORY THERAPEUTICS INCORPORATED+ 2,899,364
24,600 ALBEMARLE CORPORATION 1,176,372
371,736 ANGIOTECH PHARMACEUTICALS INCORPORATED+<< 5,642,953
221,200 ARRAY BIOPHARMA INCORPORATED+ 1,639,092
145,500 BIOMARIN PHARMACEUTICAL INCORPORATED+<< 1,789,650
63,300 CYTEC INDUSTRIES INCORPORATED 3,827,751
91,200 DIGENE CORPORATION+ 3,767,472
354,900 FIRST HORIZON PHARMACEUTICAL CORPORATION+<< 7,903,623
44
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
CHEMICALS & ALLIED PRODUCTS (CONTINUED)
113,300 FMC CORPORATION $ 7,201,348
211,525 IMMUCOR INCORPORATED+ 6,144,801
141,900 KOOPER HOLDINGS INCORPORATED 2,838,000
249,300 MEDICIS PHARMACEUTICAL CORPORATION CLASS A<< 8,196,984
196,600 NUVELO INCORPORATED+ 3,218,342
59,200 OLIN CORPORATION 1,216,560
562,800 SALIX PHARMACEUTICALS LIMITED+ 7,710,360
291,100 SEROLOGICALS CORPORATION+<< 9,059,032
145,700 WESTLAKE CHEMICAL CORPORATION 4,421,995
78,653,699
------------
COAL MINING - 0.35%
58,400 FOUNDATION COAL HOLDINGS INCORPORATED 2,960,880
------------
COMMUNICATIONS - 1.85%
110,676 CBEYOND COMMUNICATIONS INCORPORATED+<< 2,185,851
159,100 CLEAR CHANNEL OUTDOOR HOLDINGS INCORPORATED+<< 3,754,760
304,400 SBA COMMUNICATIONS CORPORATION+ 7,646,528
186,200 UBIQUITEL INCORPORATED+ 1,929,032
15,516,171
------------
DEPOSITORY INSTITUTIONS - 3.68%
77,400 BANK OF HAWAII CORPORATION<< 4,203,594
178,800 BOSTON PRIVATE FINANCIAL HOLDINGS INCORPORATED 5,945,100
160,797 CULLEN FROST BANKERS INCORPORATED 9,306,930
52,800 EURONET WORLDWIDE INCORPORATED+<< 1,887,072
601,500 TAC ACQUISITION CORPORATION+ 4,240,575
102,600 WESTAMERICA BANCORPORATION 5,246,964
30,830,235
------------
EATING & DRINKING PLACES - 0.86%
64,500 P.F. CHANG'S CHINA BISTRO INCORPORATED+<< 2,748,345
143,100 RARE HOSPITALITY INTERNATIONAL INCORPORATED+ 4,453,272
7,201,617
------------
EDUCATIONAL SERVICES - 0.45%
88,700 EDUCATION MANAGEMENT CORPORATION+ 3,766,202
------------
ELECTRIC, GAS & SANITARY SERVICES - 2.45%
45,700 ITC HOLDINGS CORPORATION 1,180,431
49,300 ORMAT TECHNOLOGIES INCORPORATED<< 1,686,553
266,750 PNM RESOURCES INCORPORATED 6,751,442
202,000 SOUTHERN UNION COMPANY 5,235,840
147,200 WASTE CONNECTIONS INCORPORATED+<< 5,667,200
20,521,466
------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT - 4.05%
570,700 ADVANCED ANALOGIC TECHNOLOGIES INCORPORATED+<< 6,403,254
573,500 INTEGRATED DEVICE TECHNOLOGY INCORPORATED+ 8,728,670
45
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT (CONTINUED)
639,000 MIPS TECHNOLOGIES INCORPORATED+ $ 4,734,990
396,600 POWERWAVE TECHNOLOGIES+ 4,422,090
583,600 VOLTERRA SEMICONDUCTOR CORPORATION+<< 9,588,548
33,877,552
------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES
- - 2.35%
73,200 DIAMONDCLUSTER INTERNATIONAL INCORPORATED+ 756,888
267,996 DIVERSA CORPORATION+ 2,821,998
393,100 LEXICON GENETICS INCORPORATED+<< 2,063,775
211,521 MTC TECHNOLOGIES INCORPORATED+ 6,055,846
78,200 NAVIGANT CONSULTING INCORPORATED+<< 1,648,456
192,200 WATSON WYATT & COMPANY HOLDINGS 6,336,834
19,683,797
------------
FOOD & KINDRED PRODUCTS - 2.06%
284,300 FLOWERS FOODS INCORPORATED 7,985,987
137,300 RALCORP HOLDINGS INCORPORATED+ 5,118,544
287,700 SENOMYX INCORPORATED+<< 4,116,987
17,221,518
------------
HEALTH SERVICES - 2.71%
71,012 DAVITA INCORPORATED+ 3,995,135
99,489 DIALYSIS CORPORATION OF AMERICA+<< 1,255,551
387,700 EDUCATE INCORPORATED+<< 3,198,525
115,300 HUMAN GENOME SCIENCES INCORPORATED+<< 1,315,573
85,400 PSYCHIATRIC SOLUTIONS INCORPORATED+<< 2,823,324
193,744 SYMBION INCORPORATED+ 4,458,050
171,124 UNITED SURGICAL PARTNERS INTERNATIONAL INCORPORATED+ 5,648,803
22,694,961
------------
HOLDING & OTHER INVESTMENT OFFICES - 1.64%
200,750 ANNALY MORTGAGE MANAGEMENT INCORPORATED<< 2,704,103
100,208 BRANDYWINE REALTY TRUST 2,836,888
92,711 HEALTH CARE REIT INCORPORATED 3,226,343
181,263 UNITED DOMINION REALTY TRUST INCORPORATED 4,928,541
13,695,875
------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 0.55%
112,301 ORIENT EXPRESS HOTELS LIMITED CLASS A 4,604,341
------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 9.65%
114,000 ACTUANT CORPORATION CLASS A 7,290,300
847,700 AXCELIS TECHNOLOGIES INCORPORATED+ 4,992,953
397,400 DRESSER RAND GROUP INCORPORATED+ 9,923,078
331,200 EMULEX CORPORATION+ 6,011,280
97,800 FMC TECHNOLOGIES INCORPORATED+ 5,337,924
98,100 IDEX CORPORATION 4,983,480
67,500 KENNAMETAL INCORPORATED 4,174,875
111,000 MANITOWOC COMPANY INCORPORATED 5,504,490
46
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (CONTINUED)
522,300 SCIENTIFIC GAMES CORPORATION CLASS A+<< $ 19,894,407
188,029 SHAW INDUSTRIES LIMITED CLASS A 3,363,517
472,600 ULTRATECH INCORPORATED+ 9,281,864
80,758,168
------------
INSURANCE CARRIERS - 7.26%
125,500 ARGONAUT GROUP INCORPORATED+ 4,379,950
730,900 CONSECO INCORPORATED+<< 18,455,225
621,853 MAX RE CAPITAL LIMITED 15,235,399
208,257 PLATINUM UNDERWRITERS HOLDINGS LIMITED 5,741,645
295,600 REINSURANCE GROUP OF AMERICA INCORPORATED 14,218,360
64,800 WELLCARE HEALTH PLANS INCORPORATED+<< 2,713,824
60,744,403
------------
LEATHER & LEATHER PRODUCTS - 0.38%
83,500 BROWN SHOE COMPANY INCORPORATED 3,175,505
------------
LOCAL & SUB-TRANSIT & INTERURBAN HIGHWAY PASS
TRANSPORTATION - 0.59%
199,100 LAIDLAW INTERNATIONAL INCORPORATED 4,927,725
------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS - 5.04%
44,200 ADVANCED MEDICAL OPTICS INCORPORATED+<< 2,059,720
260,900 CEPHEID INCORPORATED+ 2,376,799
22,300 DEXCOM INCORPORATED+ 561,068
100,700 DJ ORTHOPEDICS INCORPORATED+<< 4,003,832
128,000 DRS TECHNOLOGIES INCORPORATED<< 7,107,840
363,776 II-VI INCORPORATED+ 7,879,388
62,200 POLYMEDICA CORPORATION 2,569,482
108,200 ROFIN-SINAR TECHNOLOGIES INCORPORATED+ 6,071,102
149,400 SYBRON DENTAL SPECIALTIES INCORPORATED+ 7,027,776
107,000 VEECO INSTRUMENTS INCORPORATED+<< 2,562,650
42,219,657
------------
MEMBERSHIP ORGANIZATIONS - 1.25%
205,500 AVIALL+ 7,747,350
49,700 RITCHIE BROS AUCTIONEERS INCORPORATED 2,678,830
10,426,180
------------
METAL MINING - 1.34%
90,400 AGNICO-EAGLE MINES LIMITED<< 3,332,144
393,000 COEUR D'ALENE MINES CORPORATION+<< 2,743,140
146,630 GOLDCORP INCORPORATED 5,149,646
11,224,930
------------
MISCELLANEOUS RETAIL - 0.03%
10,500 PETCO ANIMAL SUPPLIES INCORPORATED+ 229,950
------------
NON-DEPOSITORY CREDIT INSTITUTIONS - 1.50%
408,003 APOLLO INVESTMENT CORPORATION 7,629,656
333,100 ENCORE CAPITAL GROUP INCORPORATED+<< 4,919,887
12,549,543
------------
47
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
OIL & GAS EXTRACTION - 4.85%
181,855 BIRCHCLIFF ENERGY LIMITED+ $ 1,122,311
144,494 DENBURY RESOURCES INCORPORATED+ 4,710,504
177,700 GALLEON ENERGY INCORPORATED A+ 5,149,573
399,300 HANOVER COMPRESSOR COMPANY+<< 8,049,888
100,800 ST. MARY LAND & EXPLORATION COMPANY 4,249,728
237,300 STROUD ENERGY INCORPORATED+++ 3,796,800
205,600 SUPERIOR ENERGY SERVICES INCORPORATED+ 6,610,040
311,011 WILLBROS GROUP INCORPORATED+<< 6,873,343
40,562,187
------------
PAPER & ALLIED PRODUCTS - 0.49%
443,600 XERIUM TECHNOLOGIES INCORPORATED 4,129,916
------------
PERSONAL SERVICES - 0.60%
71,200 COINSTAR INCORPORATED+ 1,941,624
88,800 REGIS CORPORATION<< 3,114,216
5,055,840
------------
PRIMARY METAL INDUSTRIES - 0.60%
127,900 SCHNITZER STEEL INDUSTRY 5,030,307
------------
RAILROAD TRANSPORTATION - 0.68%
233,700 KANSAS CITY SOUTHERN+<< 5,678,910
------------
SOCIAL SERVICES - 0.36%
76,300 BRIGHT HORIZONS FAMILY SOLUTIONS INCORPORATED+ 3,030,636
------------
TEXTILE MILL PRODUCTS - 0.79%
168,700 ALBANY INTERNATIONAL CORPORATION CLASS A 6,596,170
------------
TRANSPORTATION BY AIR - 0.71%
349,100 REPUBLIC AIRWAYS HOLDINGS INCORPORATED+ 5,934,700
------------
TRANSPORTATION SERVICES - 0.49%
83,700 HUB GROUP INCORPORATED CLASS A+ 4,115,529
------------
WHOLESALE TRADE NON-DURABLE GOODS - 2.81%
201,800 AIRGAS INCORPORATED 8,162,810
411,900 ALLSCRIPTS HEALTHCARE SOLUTIONS INCORPORATED+<< 7,014,657
265,500 ENDO PHARMACEUTICALS HOLDINGS INCORPORATED+ 8,349,975
23,527,442
------------
TOTAL COMMON STOCKS (COST $605,717,910) 749,644,421
------------
INVESTMENT COMPANIES - 0.97%
80,800 ISHARES RUSSELL 2000 INDEX FUND 6,156,960
139,632 TECHNOLOGY INVESTMENT CAPITAL CORPORATION 1,977,189
TOTAL INVESTMENT COMPANIES (COST $7,890,657) 8,134,149
------------
COLLATERAL FOR SECURITIES LENDING - 19.64%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.70%
5,873,574 SCUDDER DAILY ASSETS MONEY MARKET FUND 5,873,574
------------
48
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS - 18.94%
$ 447,915 AMERICAN GENERAL FINANCE CORPORATION+/-++ 4.93% 05/15/2007 $ 448,103
186,482 APRECO LLC 4.60 05/15/2006 186,129
408,150 APRECO LLC++ 4.92 06/15/2006 405,623
3,682,853 AQUIFER FUNDING LIMITED 4.80 05/03/2006 3,681,859
1,244,207 AQUIFER FUNDING LIMITED++ 4.80 05/04/2006 1,243,709
1,244,207 AQUINAS FUNDING LLC++ 5.04 06/23/2006 1,235,124
2,543,060 ATLANTIC ASSET SECURITIZATION CORPORATION 4.86 05/11/2006 2,539,627
2,488,414 ATLAS CAPITAL FUNDING CORPORATION SERIES MTN+/- 4.81 11/03/2006 2,488,414
597,219 ATLAS CAPITAL FUNDING CORPORATION++ 4.60 05/15/2006 596,091
1,244,207 ATLAS CAPITAL FUNDING CORPORATION+/- 4.93 12/22/2006 1,244,207
1,244,207 ATLAS CAPITAL FUNDING CORPORATION+/- 4.94 10/20/2006 1,244,207
1,244,207 ATLAS CAPITAL FUNDING CORPORATION+/- 4.98 04/25/2007 1,244,207
81,570 ATOMIUM FUNDING CORPORATION 4.81 05/03/2006 81,548
4,740,578 ATOMIUM FUNDING CORPORATION 4.81 05/04/2006 4,738,682
1,002,781 ATOMIUM FUNDING CORPORATION++ 4.83 05/05/2006 1,002,250
605,282 ATOMIUM FUNDING CORPORATION++ 5.00 06/12/2006 601,789
2,986,097 BASF AG ADR 4.81 05/04/2006 2,984,902
1,493,048 BEAR STEARNS & COMPANY+/- 4.93 10/04/2006 1,493,048
2,549,535 BEAR STEARNS & COMPANY REPURCHASE AGREEMENT
(MATURITY VALUE $2,549,883) 4.92 05/01/2006 2,549,535
172,646 BETA FINANCE INCORPORATED SERIES MTN+/-++ 4.91 06/02/2006 172,657
27,372,555 BNP PARIBAS REPURCHASE AGREEMENT
(MATURITY VALUE $27,376,304) 4.93 05/01/2006 27,372,555
1,657,135 BUCKINGHAM CDO LLC++ 4.96 05/23/2006 1,652,147
2,488,414 BUCKINGHAM CDO LLC++ 5.08 07/24/2006 2,459,499
2,995,901 BUCKINGHAM II CDO LLC++ 4.86 05/08/2006 2,993,115
348,378 BUCKINGHAM II CDO LLC++ 4.95 05/24/2006 347,281
646,988 CAIRN HIGH GRADE FUNDING I++ 4.76 05/10/2006 646,198
1,244,207 CAIRN HIGH GRADE FUNDING I 4.81 05/02/2006 1,244,045
995,366 CAIRN HIGH GRADE FUNDING I 4.83 05/08/2006 994,440
846,061 CAIRN HIGH GRADE FUNDING I 4.93 05/18/2006 844,106
686,802 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.68 05/08/2006 686,164
221,320 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.69 05/10/2006 221,050
995,366 CEDAR SPRINGS CAPITAL COMPANY LLC 4.70 05/12/2006 993,883
513,758 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.80 05/05/2006 513,486
1,601,991 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.83 05/09/2006 1,600,261
497,683 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.89 06/07/2006 495,150
1,324,583 CEDAR SPRINGS CAPITAL COMPANY LLC 4.90 06/12/2006 1,316,940
1,558,743 CEDAR SPRINGS CAPITAL COMPANY LLC 4.99 06/21/2006 1,547,785
721,640 CEDAR SPRINGS CAPITAL COMPANY LLC 5.01 06/05/2006 718,169
2,488,414 CONCORD MINUTEMEN CAPITAL COMPANY SERIES A 4.83 05/12/2006 2,484,706
1,249,084 CONCORD MINUTEMEN CAPITAL COMPANY SERIES A 4.85 05/11/2006 1,247,398
3,483,780 CONCORD MINUTEMEN CAPITAL COMPANY SERIES B+/-++ 4.85 05/14/2006 3,483,780
3,220,008 CORPORATE ASSET SECURITIZATION AUSTRALIA LIMITED 5.00 05/25/2006 3,209,414
1,542,817 CREDIT SUISSE FIRST BOSTON NEW YORK SERIES YCD1+/- 4.92 05/04/2006 1,542,724
1,244,207 CULLINAN FINANCE CORPORATION+/-++ 4.71 11/15/2006 1,244,331
646,988 DEER VALLEY FUNDING LLC++ 4.78 05/03/2006 646,813
1,891,195 DEER VALLEY FUNDING LLC 4.84 05/08/2006 1,889,436
49
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 97,397 DEER VALLEY FUNDING LLC++ 4.89% 05/15/2006 $ 97,212
795,496 DEER VALLEY FUNDING LLC++ 4.92 05/16/2006 793,881
6,190,994 DEUTSCHE BANK REPURCHASE AGREEMENT
(MATURITY VALUE $6,191,823) 4.82 05/01/2006 6,190,994
79,629 EDISON ASSET SECURITIZATION LLC 4.84 05/15/2006 79,479
99,537 EIFFEL FUNDING LLC 4.80 05/01/2006 99,537
1,792,703 EUREKA SECURITIZATION INCORPORATED 4.86 05/16/2006 1,789,064
2,986,097 GEMINI SECURITIZATION INCORPORATED 4.79 05/01/2006 2,986,097
74,652 GEMINI SECURITIZATION INCORPORATED++ 4.88 05/24/2006 74,417
2,238,329 GEORGE STREET FINANCE LLC 4.80 05/02/2006 2,238,037
1,194,439 GOLDMAN SACHS GROUP INCORPORATED+/- 4.97 06/30/2006 1,194,439
99,537 HARRIER FINANCE FUNDING LLC+/-++ 4.98 05/15/2007 99,558
174,189 HBOS TREASURY SERVICES PLC+/-++ 5.12 01/12/2007 174,363
796,293 ING USA ANNUITY & LIFE INSURANCE+/- 5.03 06/06/2006 796,292
64,699 K2 USA LLC 4.61 05/02/2006 64,690
230,178 K2 USA LLC SERIES MTN+/-++ 4.90 07/24/2006 230,224
746,524 KAUPTHING BANK HF+/-++ 4.98 03/20/2007 745,389
199,073 KLIO II FUNDING CORPORATION++ 4.96 06/30/2006 197,427
1,663,704 KLIO III FUNDING CORPORATION++ 4.93 05/22/2006 1,658,946
2,392,262 KLIO III FUNDING CORPORATION++ 4.96 06/30/2006 2,372,478
49,768 LEXINGTON PARKER CAPITAL CORPORATION 4.60 05/02/2006 49,762
188,920 LEXINGTON PARKER CAPITAL CORPORATION 4.68 05/10/2006 188,690
7,976,412 LEXINGTON PARKER CAPITAL CORPORATION 4.85 05/05/2006 7,972,185
84,606 LEXINGTON PARKER CAPITAL CORPORATION 4.96 06/20/2006 84,023
1,244,207 LIBERTY LIGHT US CAPITAL SERIES MTN+/-++ 4.84 05/26/2006 1,244,232
99,537 LINKS FINANCE LLC SERIES MTN1+/-++ 4.82 09/12/2006 99,537
746,524 LIQUID FUNDING LIMITED+/-++ 4.79 12/01/2006 746,524
1,144,671 LIQUID FUNDING LIMITED+/-++ 4.88 08/14/2006 1,144,670
298,610 LIQUID FUNDING LIMITED SERIES MTN+/-++ 4.85 02/20/2007 298,616
497,683 MBIA GLOBAL FUNDING LLC+/-++ 4.92 02/20/2007 497,653
2,500,856 MERRILL LYNCH & COMPANY SERIES MTN+/- 5.28 10/27/2006 2,502,857
1,493,048 MORGAN STANLEY+/- 4.94 10/10/2006 1,493,048
230,178 MORGAN STANLEY SERIES EXL+/- 4.93 08/13/2010 230,234
1,124,763 MORTGAGE INTEREST NET TRUST 4.76 05/03/2006 1,124,459
49,768 NATIONWIDE BUILDING SOC+/-++ 5.20 07/21/2006 49,786
221,867 NIEUW AMSTERDAM RECEIVABLES CORPORATION 4.91 06/26/2006 220,154
79,878 NORDEA NORTH AMERICA INCORPORATED 4.80 05/03/2006 79,857
159,259 NORDEA NORTH AMERICA INCORPORATED 4.81 05/09/2006 159,086
94,560 NORDEA NORTH AMERICA INCORPORATED 4.87 05/15/2006 94,381
149,056 NORTH SEA FUNDING LLC++ 5.00 06/26/2006 147,905
2,488,414 NORTHERN ROCK PLC+/-++ 4.83 02/05/2007 2,488,539
201,313 RACERS TRUST 2004+/-++ 4.95 05/22/2006 201,341
937,983 REGENCY MARKETS LLC++ 5.06 07/20/2006 927,599
49,768 SCALDIS CAPITAL LIMITED++ 4.91 06/15/2006 49,460
2,483,188 SEDNA FINANCE INCORPORATED++ 4.86 05/02/2006 2,482,866
995,366 SLM CORPORATION+/- 4.86 05/04/2007 995,117
398,146 SWEDBANK (FORENINGS SPARBANKEN) 4.81 05/09/2006 397,716
248,841 SWEDISH NATIONAL HOUSING FINANCE (SBAB) 5.06 07/18/2006 246,156
50
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 575,471 TANGO FINANCE CORPORATION SERIES MTN+/-++ 4.90% 10/25/2006 $ 575,661
199,073 TANGO FINANCE CORPORATION++ 4.94 06/21/2006 197,674
1,504,445 THUNDER BAY FUNDING INCORPORATED++ 5.00 06/16/2006 1,494,907
1,772,448 TIERRA ALTA FUNDING I LIMITED++ 4.82 05/10/2006 1,770,285
2,565,157 TIERRA ALTA FUNDING I LIMITED++ 4.83 05/11/2006 2,561,694
287,710 TRAVELLERS INSURANCE COMPANY+/- 4.92 02/09/2007 287,705
1,244,207 UNICREDITO ITALIANO SERIES LIB+/- 4.86 03/09/2007 1,244,182
1,891,195 US BANK NA SERIES BKNT+/- 5.13 07/28/2006 1,891,289
149,305 VERSAILLES CDS LLC 4.87 05/15/2006 149,023
1,244,207 VERSAILLES CDS LLC 4.99 06/20/2006 1,235,634
49,768 VERSAILLES CDS LLC++ 5.00 06/21/2006 49,418
525,653 VERSAILLES CDS LLC++ 5.04 06/28/2006 521,453
497,683 WHISTLEJACKET CAPITAL LIMITED+/-++ 4.80 06/09/2006 497,683
248,841 WHISTLEJACKET CAPITAL LIMITED++ 4.91 05/15/2006 248,371
804,007 WHISTLEJACKET CAPITAL LIMITED++ 5.02 06/26/2006 797,800
248,841 WHITE PINE FINANCE LLC++ 4.80 05/05/2006 248,710
203,154 WHITE PINE FINANCE LLC++ 4.83 05/25/2006 202,486
1,244,207 WHITE PINE FINANCE LLC+/-++ 4.85 07/17/2006 1,244,207
152,888 WHITE PINE FINANCE LLC++ 4.91 06/20/2006 151,835
1,313,335 WHITE PINE FINANCE LLC++ 4.92 06/22/2006 1,303,932
1,194,439 WHITE PINE FINANCE LLC SERIES MTN1+/-++ 4.84 06/12/2006 1,194,487
158,544,000
--------------
TOTAL COLLATERAL FOR SECURITIES LENDING** (COST $164,417,574) 164,417,574
--------------
SHORT-TERM INVESTMENTS - 9.95%
83,312,284 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~@ 83,312,284
--------------
TOTAL SHORT-TERM INVESTMENTS (COST $83,312,284) 83,312,284
--------------
TOTAL INVESTMENTS IN SECURITIES
(COST $861,338,425)* 120.12% $1,005,508,428
OTHER ASSETS AND LIABILITIES, NET (20.12) (168,438,266)
------ --------------
TOTAL NET ASSETS 100.00% $ 837,070,162
====== ==============
+ NON-INCOME EARNING SECURITIES.
<< ALL OR A PORTION OF THIS SECURITY IS ON LOAN.
++ 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.
** SECURITIES PURCHASED WITH CASH COLLATERAL FROM SECURITIES OUT-ON-LOAN. THE
FUND HAS ALSO RECEIVED NON-CASH COLLATERAL IN THE AMOUNT OF $3,808,400.
THE TOTAL COLLATERAL RECEIVED REPRESENTS 105% OF THE VALUE OF THE
PORTFOLIO SECURITIES LOANED.
~ 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 $83,312,284.
* 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.
51
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP VALUE FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 89.05%
APPAREL & ACCESSORY STORES - 0.56%
163,700 PAYLESS SHOESOURCE INCORPORATED+ $ 3,760,189
417,800 TOO INCORPORATED+ 16,051,876
19,812,065
-------------
BUSINESS SERVICES - 3.71%
1,520,100 ABM INDUSTRIES INCORPORATED 26,145,720
1,261,650 EARTHLINK INCORPORATED+ 11,468,399
570,797 HEALTHCARE SERVICES GROUP 12,186,516
2,285,922 KFORCE INCORPORATED+** 32,117,204
119,880 LIQUIDITY SERVICES INCORPORATED+ 1,617,181
1,221,915 MPS GROUP INCORPORATED+ 19,501,763
843,400 ROTECH HEALTHCARE INCORPORATED+ 3,930,244
1,158,248 TIER TECHNOLOGIES INCORPORATED CLASS B+** 8,559,453
990,000 VIGNETTE CORPORATION+ 15,691,500
131,217,980
-------------
CHEMICALS & ALLIED PRODUCTS - 3.62%
2,129,830 CALGON CARBON CORPORATION** 15,952,426
57,500 MARTEK BIOSCIENCES CORPORATION+ 1,707,750
512,200 OM GROUP INCORPORATED+ 14,669,408
3,428,100 ORASURE TECHNOLOGIES INCORPORATED+** 36,783,513
4,230,700 POLYONE CORPORATION+ 37,568,616
1,388,425 PRESTIGE BRANDS HOLDINGS INCORPORATED+ 16,980,438
826,000 WELLMAN INCORPORATED 4,567,780
128,229,931
-------------
COMMUNICATIONS - 1.62%
186,650 CHINA GRENTECH CORPORATION LIMITED ADR+ 2,986,400
4,497,600 CINCINNATI BELL INCORPORATED+ 18,889,920
2,776,400 LIGHTBRIDGE INCORPORATED+** 35,315,808
57,192,128
-------------
CONSTRUCTION SPECIAL TRADE CONTRACTORS - 3.60%
3,376,400 CHICAGO BRIDGE & IRON COMPANY NV 80,932,308
1,155,179 LAYNE CHRISTENSEN COMPANY+** 34,077,781
1,069,600 MATRIX SERVICE COMPANY+** 12,204,136
127,214,225
-------------
DEPOSITORY INSTITUTIONS - 0.67%
910,300 THE COLONIAL BANCGROUP INCORPORATED 23,604,079
-------------
ELECTRIC, GAS & SANITARY SERVICES - 0.32%
888,900 EL PASO CORPORATION 11,475,699
-------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT - 4.32%
1 ADC TELECOMMUNICATIONS INCORPORATED+ 6
1,267,740 CELESTICA INCORPORATED+ 14,274,752
1,034,543 EVANS & SUTHERLAND COMPUTER CORPORATION+** 6,496,930
52
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
SMALL CAP VALUE FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT (CONTINUED)
5,391,830 GRAFTECH INTERNATIONAL LIMITED+** $ 36,448,771
5,687,800 NORTEL NETWORKS CORPORATION+ 15,129,548
1,038,050 OSI SYSTEMS INCORPORATED+** 19,785,233
910,000 PORTALPLAYER INCORPORATED+ 10,055,500
912,754 RICHARDSON ELECTRONICS LIMITED** 6,471,426
3,313,647 STATS CHIPPAC LIMITED ADR+ 28,199,136
1,022,700 VISHAY INTERTECHNOLOGY INCORPORATED+ 15,923,439
152,784,741
-------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED
SERVICES - 1.56%
304,745 CDI CORPORATION 8,639,521
1,926,700 CV THERAPEUTICS INCORPORATED+ 38,244,995
2,049,817 DISCOVERY PARTNERS INTERNATIONAL+** 5,022,051
99,500 WATSON WYATT & COMPANY HOLDINGS 3,280,515
55,187,082
-------------
FOOD & KINDRED PRODUCTS - 0.93%
2,826,535 DEL MONTE FOODS COMPANY 32,957,398
-------------
GENERAL MERCHANDISE STORES - 0.36%
552,035 FOOT LOCKER INCORPORATED 12,796,171
-------------
HEALTH SERVICES - 1.41%
864,737 CROSS COUNTRY HEALTHCARE INCORPORATED+ 15,669,034
1,084,285 GENTIVA HEALTH SERVICES INCORPORATED+ 18,367,788
361,500 MANOR CARE INCORPORATED 15,851,775
49,888,597
-------------
HOLDING & OTHER INVESTMENT OFFICES - 0.74%
540,200 AMERICAN FINANCIAL REALTY TRUST 6,147,476
905,000 DISCOVERY HOLDING COMPANY CLASS A+ 13,484,500
739,600 GOVERNMENT PROPERTIES TRUST INCORPORATED 6,382,748
26,014,724
-------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 0.05%
360,000 EMPIRE RESORTS INCORPORATED+ 1,951,200
-------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 4.04%
7,853,135 CRAY INCORPORATED+** 13,036,204
240,000 HYDRIL COMPANY+ 19,238,400
1,810,000 INTERMEC INCORPORATED+ 47,946,900
392,800 SMITH INTERNATIONAL INCORPORATED 16,587,944
4,343,295 SYMBOL TECHNOLOGIES INCORPORATED 46,256,092
143,065,540
-------------
INSURANCE CARRIERS - 2.35%
688,400 ARGONAUT GROUP INCORPORATED+ 24,025,160
405,213 DONEGAL GROUP INCORPORATED CLASS A 7,516,707
151,838 EMC INSURANCE GROUP INCORPORATED 4,441,262
588,610 ENDURANCE SPECIALTY HOLDINGS LIMITED 18,223,366
53
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP VALUE FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
INSURANCE CARRIERS (CONTINUED)
540,290 MERCURY GENERAL CORPORATION $ 28,835,277
83,041,772
-------------
JUSTICE, PUBLIC ORDER & SAFETY - 1.08%
1,069,940 GEO GROUP INCORPORATED+** 38,346,650
-------------
LEATHER & LEATHER PRODUCTS - 0.26%
467,500 BAKERS FOOTWEAR GROUP INCORPORATED+** 9,050,800
-------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS - 3.54%
382,784 ALLIED HEALTHCARE PRODUCTS INCORPORATED+ 2,319,671
382,500 APPLERA CORPORATION-APPLIED BIOSYSTEMS GROUP 11,031,300
395,800 ARMOR HOLDINGS INCORPORATED+ 24,171,506
420,000 BAUSCH & LOMB INCORPORATED 20,559,000
730,000 COHERENT INCORPORATED+ 27,017,300
2,603,825 CREDENCE SYSTEMS CORPORATION+ 18,461,120
2,136,890 INPUT OUTPUT INCORPORATED+ 21,539,851
125,099,748
-------------
METAL MINING - 13.30%
3,369,880 APEX SILVER MINES LIMITED+** 71,778,444
2,681,500 GLAMIS GOLD LIMITED+ 105,248,875
1,681,500 GOLDCORP INCORPORATED 59,054,280
790,000 HARMONY GOLD MINING COMPANY LIMITED ADR 13,272,000
788,300 IPSCO INCORPORATED 81,336,794
1,003,310 MERIDIAN GOLD INCORPORATED+ 32,607,575
4,266,100 RANDGOLD RESOURCES LIMITED ADR+** 103,836,874
177,000 SOUTHWESTERN RESOURCES CORPORATION+ 2,210,026
83,500 SOUTHWESTERN RESOURCES CORPORATION+ ++ 1,042,583
470,387,451
-------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 0.43%
1,388,100 PROGRESSIVE GAMING INTERNATIONAL CORPORATION+ 15,116,409
-------------
MISCELLANEOUS RETAIL - 0.15%
55,600 HANCOCK FABRICS INCORPORATED 195,156
276,400 SHARPER IMAGE CORPORATION+ 4,157,056
37,700 STAMPS.COM INCORPORATED+ 1,063,140
5,415,352
-------------
MISCELLANEOUS SERVICES - 0.17%
199,800 TOREADOR RESOURCES CORPORATION+ 6,165,828
-------------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING - 0.35%
891,200 COVENANT TRANSPORT INCORPORATED CLASS A+** 12,334,208
-------------
OIL & GAS EXTRACTION - 25.20%
731,000 BJ SERVICES COMPANY 27,814,550
37,450 COMPLETE PRODUCTION SERVICES INCORPORATED+ 989,804
926,800 FOREST OIL CORPORATION+ 33,893,076
10,306,990 GLOBAL INDUSTRIES LIMITED+** 163,571,931
54
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
SMALL CAP VALUE FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
OIL & GAS EXTRACTION (CONTINUED)
2,300,500 GREY WOLF INCORPORATED+ $ 17,943,900
504,880 HELMERICH & PAYNE INCORPORATED 36,724,971
4,061,150 KEY ENERGY SERVICES INCORPORATED+ 69,405,053
600,372 MARINER ENERGY INCORPORATED+ 11,677,235
2,270,520 MCMORAN EXPLORATION COMPANY+** 39,325,406
626,800 NEWFIELD EXPLORATION COMPANY+ 27,955,280
4,300,400 NEWPARK RESOURCES INCORPORATED+ 28,640,664
798,500 NOBLE ENERGY INCORPORATED 35,916,530
639,360 OCEANEERING INTERNATIONAL INCORPORATED+ 39,020,141
1,488,000 PARKER DRILLING COMPANY+ 12,499,200
1,348,898 PETROHAWK ENERGY CORPORATION+ 16,969,137
1,435,100 PETROQUEST ENERGY INCORPORATED+ 16,977,233
562,100 PIONEER NATURAL RESOURCES COMPANY 24,069,122
1,096,799 PRIDE INTERNATIONAL INCORPORATED+ 38,267,317
4,957,075 RANGE RESOURCES CORPORATION 131,511,200
559,300 REMINGTON OIL & GAS CORPORATION+ 24,391,073
413,300 STONE ENERGY CORPORATION+ 19,466,430
391,800 TRANSOCEAN INCORPORATED+ 31,763,226
769,500 TRILOGY ENERGY TRUST 14,377,582
1,274,785 WILLBROS GROUP INCORPORATED+** 28,172,749
891,342,810
-------------
PAPER & ALLIED PRODUCTS - 1.15%
553,480 CHESAPEAKE CORPORATION 7,787,464
2,278,400 WAUSAU PAPER CORPORATION 32,763,392
40,550,856
-------------
PETROLEUM REFINING & RELATED INDUSTRIES - 0.65%
260,000 ASHLAND INCORPORATED 17,113,200
435,000 INTEROIL CORPORATION+ 6,007,350
23,120,550
-------------
PRIMARY METAL INDUSTRIES - 6.69%
480,650 CARPENTER TECHNOLOGY CORPORATION 57,173,317
963,800 ENCORE WIRE CORPORATION+ 40,412,134
1,109,694 STEEL DYNAMICS INCORPORATED 69,289,293
922,300 UNITED STATES STEEL CORPORATION 63,177,550
99,270 WEBCO INDUSTRIES INCORPORATED+ 6,651,057
236,703,351
-------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 0.89%
560,000 R.H. DONNELLEY CORPORATION 31,432,800
-------------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS - 2.11%
827,453 CONSTAR INTERNATIONAL INCORPORATED+** 2,672,756
4,430,270 INTERTAPE POLYMER GROUP INCORPORATED+** 39,075,713
270,500 JARDEN CORPORATION+ 9,197,000
2,741,300 ROYAL GROUP TECHNOLOGIES LIMITED+ 23,849,310
74,794,779
-------------
55
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP VALUE FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 0.33%
843,100 US CONCRETE INCORPORATED+ $ 11,567,332
---------------
TRANSPORTATION BY AIR - 2.41%
285,000 EGL INCORPORATED+ 13,315,200
1,123,200 LAN AIRLINES SA ADR 42,681,600
125,404 PHI INCORPORATED+ 4,138,332
694,373 PHI INCORPORATED (NON-VOTING)+ 24,983,541
85,118,673
---------------
TRANSPORTATION EQUIPMENT - 0.39%
1,454,110 FLEETWOOD ENTERPRISES INCORPORATED+ 13,668,634
---------------
WHOLESALE TRADE-DURABLE GOODS - 0.09%
54,800 OMNICARE INCORPORATED 3,107,708
---------------
TOTAL COMMON STOCKS (COST $2,028,112,221) 3,149,757,271
---------------
SHORT-TERM INVESTMENTS - 15.97%
565,104,524 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~+ 565,104,524
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $565,104,524) 565,104,524
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $2,593,216,745)* 105.02% $ 3,714,861,795
OTHER ASSETS AND LIABILITIES, NET (5.02) (177,680,459)
------ ---------------
TOTAL NET ASSETS 100.00% $ 3,537,181,336
====== ===============
+ 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.
** REPRESENTS AN AFFILIATE OF THE FUND UNDER SECTION 2(a)(2) AND 2(a)(3) OF
THE 1940 ACT AS FUND HOLDS 5% OR MORE OF THE ISSUERS' OUTSTANDING VOTING
SHARES.
++ 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 OF AN AFFILIATE OF THE FUND WITH A COST OF $565,104,524.
(A) SECURITY FAIR VALUED IN ACCORDANCE WITH THE PROCEDURES APPROVED BY THE
BOARD OF TRUSTEES.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
CONTRACTS STRIKE PRICE EXPIRATION DATE
WRITTEN OPTIONS - (4.83%)
(1,000) APEX SILVER MINES LIMITED CALL $ 17.50 07/22/2006 (460,000)
(2,100) APEX SILVER MINES LIMITED CALL 20.00 07/22/2006 (693,000)
(1,700) APEX SILVER MINES LIMITED CALL 20.00 10/21/2006 (714,000)
(500) APEX SILVER MINES LIMITED CALL 22.50 07/22/2006 (107,500)
(1,400) APEX SILVER MINES LIMITED CALL 22.50 10/21/2006 (434,000)
(1,300) APEX SILVER MINES LIMITED CALL 25.00 05/20/2006 (52,000)
(1,715) APEX SILVER MINES LIMITED CALL 25.00 07/22/2006 (231,525)
(1,800) APEX SILVER MINES LIMITED CALL 30.00 07/22/2006 (108,000)
(500) APEX SILVER MINES LIMITED CALL 30.00 10/21/2006 (65,000)
(500) APEX SILVER MINES LIMITED CALL 35.00 10/21/2006 (32,500)
(250) APPLERA CORPORATION-APPLIED BIOSYSTEMS GROUP CALL 25.00 06/17/2006 (102,500)
(300) APPLERA CORPORATION-APPLIED BIOSYSTEMS GROUP CALL 25.00 09/16/2006 (135,000)
(400) ARMOR HOLDINGS INCORPORATED CALL 45.00 05/20/2006 (640,000)
(400) ARMOR HOLDINGS INCORPORATED CALL 50.00 05/20/2006 (440,000)
(500) ARMOR HOLDINGS INCORPORATED CALL 50.00 08/19/2006 (605,000)
56
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
SMALL CAP VALUE FUND
- --------------------------------------------------------------------------------
CONTRACTS STRIKE PRICE EXPIRATION DATE VALUE
WRITTEN OPTIONS (CONTINUED)
(200) ARMOR HOLDINGS INCORPORATED CALL $ 55.00 05/20/2006 $ (126,000)
(250) ARMOR HOLDINGS INCORPORATED CALL 60.00 05/20/2006 (50,000)
(200) ARMOR HOLDINGS INCORPORATED CALL 60.00 08/19/2006 (94,000)
(200) ARMOR HOLDINGS INCORPORATED CALL 70.00 08/19/2006 (24,000)
(750) BAUSCH & LOMB INCORPORATED CALL 45.00 05/20/2006 (322,500)
(100) BAUSCH & LOMB INCORPORATED CALL 45.00 07/22/2006 (60,000)
(450) BAUSCH & LOMB INCORPORATED CALL 50.00 05/20/2006 (56,250)
(450) BAUSCH & LOMB INCORPORATED CALL 50.00 06/17/2006 (94,500)
(800) BAUSCH & LOMB INCORPORATED CALL 50.00 07/22/2006 (236,000)
(200) BAUSCH & LOMB INCORPORATED CALL 55.00 07/22/2006 (21,000)
(150) BJ SERVICES COMPANY CALL 32.50 07/22/2006 (109,500)
(450) BJ SERVICES COMPANY CALL 35.00 05/20/2006 (180,000)
(550) BJ SERVICES COMPANY CALL 35.00 07/22/2006 (291,500)
(300) BJ SERVICES COMPANY CALL 37.50 05/20/2006 (57,000)
(700) BJ SERVICES COMPANY CALL 37.50 07/22/2006 (266,000)
(100) BJ SERVICES COMPANY CALL 37.50 10/21/2006 (47,000)
(650) BJ SERVICES COMPANY CALL 40.00 05/20/2006 (48,750)
(700) BJ SERVICES COMPANY CALL 40.00 07/22/2006 (143,500)
(250) BJ SERVICES COMPANY CALL 40.00 10/21/2006 (97,500)
(200) BJ SERVICES COMPANY CALL 42.50 07/22/2006 (28,000)
(800) BJ SERVICES COMPANY CALL 42.50 10/21/2006 (192,000)
(1,400) CARPENTER TECHNOLOGY CORPORATION CALL 70.00 09/16/2006 (6,972,000)
(650) CARPENTER TECHNOLOGY CORPORATION CALL 75.00 06/17/2006 (2,860,000)
(450) CARPENTER TECHNOLOGY CORPORATION CALL 75.00 09/16/2006 (2,025,000)
(404) CARPENTER TECHNOLOGY CORPORATION CALL 80.00 06/17/2006 (1,575,600)
(100) CARPENTER TECHNOLOGY CORPORATION CALL 85.00 06/17/2006 (323,000)
(150) CARPENTER TECHNOLOGY CORPORATION CALL 85.00 09/16/2006 (538,500)
(50) CARPENTER TECHNOLOGY CORPORATION CALL 90.00 05/20/2006 (144,000)
(150) CARPENTER TECHNOLOGY CORPORATION CALL 90.00 09/16/2006 (491,250)
(50) CARPENTER TECHNOLOGY CORPORATION CALL 100.00 09/16/2006 (117,500)
(300) CARPENTER TECHNOLOGY CORPORATION CALL 60.00 06/17/2006 (1,764,000)
(550) CARPENTER TECHNOLOGY CORPORATION CALL 65.00 06/17/2006 (2,997,500)
(550) CARPENTER TECHNOLOGY CORPORATION CALL 70.00 06/17/2006 (2,689,500)
(200) CELESTICA INCORPORATED CALL 10.00 05/20/2006 (26,000)
(200) CELESTICA INCORPORATED CALL 10.00 06/17/2006 (29,000)
(200) CELESTICA INCORPORATED CALL 10.00 09/16/2006 (36,000)
(900) CELESTICA INCORPORATED CALL 12.50 09/16/2006 (58,500)
(200) CHESAPEAKE CORPORATION CALL (A) 20.00 05/20/2006 0
(1,000) CHICAGO BRIDGE & IRON COMPANY NV CALL 22.50 05/20/2006 (150,000)
(3,750) CHICAGO BRIDGE & IRON COMPANY NV CALL 25.00 05/20/2006 (187,500)
(3,650) CHICAGO BRIDGE & IRON COMPANY NV CALL 25.00 07/22/2006 (602,250)
(1,600) CHICAGO BRIDGE & IRON COMPANY NV CALL 30.00 07/22/2006 (48,000)
(100) CHICAGO BRIDGE & IRON COMPANY NV CALL 35.00 07/22/2006 (500)
(1,300) COHERENT INCORPORATED CALL 30.00 05/20/2006 (871,000)
(150) COHERENT INCORPORATED CALL 30.00 08/19/2006 (114,000)
(100) COHERENT INCORPORATED CALL 35.00 06/17/2006 (31,000)
(1,050) COHERENT INCORPORATED CALL 35.00 08/19/2006 (409,500)
(50) COHERENT INCORPORATED CALL 40.00 08/19/2006 (8,000)
57
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP VALUE FUND
- --------------------------------------------------------------------------------
CONTRACTS STRIKE PRICE EXPIRATION DATE VALUE
WRITTEN OPTIONS (CONTINUED)
(250) COHERENT INCORPORATED CALL $ 40.00 11/18/2006 $ (62,500)
(150) COHERENT INCORPORATED CALL 35.00 05/20/2006 (38,250)
(250) CV THERAPEUTICS INCORPORATED CALL 20.00 05/20/2006 (15,000)
(250) CV THERAPEUTICS INCORPORATED CALL 20.00 07/22/2006 (37,500)
(550) CV THERAPEUTICS INCORPORATED CALL 22.50 07/22/2006 (30,250)
(100) CV THERAPEUTICS INCORPORATED CALL 25.00 10/21/2006 (9,000)
(500) EARTHLINK INCORPORATED CALL 10.00 07/22/2006 (22,500)
(500) EARTHLINK INCORPORATED CALL 10.00 10/21/2006 (35,000)
(1,550) EGL INCORPORATED CALL 25.00 05/20/2006 (3,363,500)
(200) EGL INCORPORATED CALL 30.00 08/19/2006 (342,000)
(500) EGL INCORPORATED CALL 35.00 05/20/2006 (585,000)
(100) EGL INCORPORATED CALL 35.00 08/19/2006 (125,000)
(200) EGL INCORPORATED CALL 40.00 05/20/2006 (136,000)
(100) EGL INCORPORATED CALL 40.00 08/19/2006 (83,000)
(200) EGL INCORPORATED CALL 40.00 11/18/2006 (192,000)
(200) ENCORE WIRE CORPORATION CALL 22.50 05/20/2006 (384,000)
(1,000) ENCORE WIRE CORPORATION CALL 22.50 08/19/2006 (1,980,000)
(2,650) ENCORE WIRE CORPORATION CALL 25.00 05/20/2006 (4,425,500)
(1,350) ENCORE WIRE CORPORATION CALL 25.00 08/19/2006 (2,349,000)
(2,688) ENCORE WIRE CORPORATION CALL 30.00 05/20/2006 (3,252,480)
(700) ENCORE WIRE CORPORATION CALL 30.00 08/19/2006 (903,000)
(550) ENCORE WIRE CORPORATION CALL 35.00 05/20/2006 (390,500)
(300) ENCORE WIRE CORPORATION CALL 35.00 08/19/2006 (276,000)
(200) ENCORE WIRE CORPORATION CALL 40.00 05/20/2006 (64,000)
(665) FOOT LOCKER INCORPORATED CALL 22.50 05/20/2006 (73,150)
(400) FOOT LOCKER INCORPORATED CALL 22.50 08/19/2006 (68,000)
(450) FOOT LOCKER INCORPORATED CALL 25.00 08/19/2006 (24,750)
(300) FOREST OIL CORPORATION CALL 35.00 05/20/2006 (63,000)
(100) FOREST OIL CORPORATION CALL 35.00 08/19/2006 (37,000)
(300) FOREST OIL CORPORATION CALL 40.00 05/20/2006 (363,000)
(400) FOREST OIL CORPORATION CALL 40.00 08/19/2006 (56,000)
(1,400) FOREST OIL CORPORATION CALL 45.00 05/20/2006 (1,022,000)
(1,850) FOREST OIL CORPORATION CALL 50.00 05/20/2006 (555,000)
(300) FOREST OIL CORPORATION CALL 50.00 08/19/2006 (159,000)
(1,350) FOREST OIL CORPORATION CALL 55.00 05/20/2006 (74,250)
(300) FOREST OIL CORPORATION CALL 55.00 08/19/2006 (96,000)
(300) FOREST OIL CORPORATION CALL 60.00 08/19/2006 (36,000)
(200) GLAMIS GOLD LIMITED CALL 20.00 05/20/2006 (384,000)
(2,348) GLAMIS GOLD LIMITED CALL 22.50 05/20/2006 (3,897,680)
(200) GLAMIS GOLD LIMITED CALL 22.50 08/19/2006 (340,000)
(3,300) GLAMIS GOLD LIMITED CALL 25.00 05/20/2006 (4,785,000)
(700) GLAMIS GOLD LIMITED CALL 25.00 08/19/2006 (1,029,000)
(9,496) GLAMIS GOLD LIMITED CALL 30.00 05/20/2006 (8,546,400)
(2,200) GLAMIS GOLD LIMITED CALL 30.00 08/19/2006 (2,310,000)
(371) GLAMIS GOLD LIMITED CALL 30.00 11/18/2006 (426,650)
(1,600) GLAMIS GOLD LIMITED CALL 35.00 05/20/2006 (768,000)
(2,350) GLAMIS GOLD LIMITED CALL 35.00 08/19/2006 (1,583,900)
(100) GLAMIS GOLD LIMITED CALL 35.00 11/18/2006 (80,000)
58
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
SMALL CAP VALUE FUND
- --------------------------------------------------------------------------------
CONTRACTS STRIKE PRICE EXPIRATION DATE VALUE
WRITTEN OPTIONS (CONTINUED)
(3,000) GLAMIS GOLD LIMITED CALL $ 40.00 08/19/2006 $ (1,200,000)
(450) GLAMIS GOLD LIMITED CALL 40.00 11/18/2006 (247,500)
(500) GLAMIS GOLD LIMITED CALL 45.00 08/19/2006 (110,000)
(500) GLOBAL INDUSTRIES LIMITED CALL 15.00 06/17/2006 (82,500)
(500) GLOBAL INDUSTRIES LIMITED CALL 15.00 09/16/2006 (117,500)
(200) GLOBAL INDUSTRIES LIMITED CALL 17.50 09/16/2006 (20,000)
(2,000) GOLDCORP INCORPORATED CALL 22.50 10/21/2006 (2,640,000)
(50) GOLDCORP INCORPORATED CALL 25.00 07/22/2006 (51,500)
(800) GOLDCORP INCORPORATED CALL 25.00 10/21/2006 (880,000)
(1,000) GOLDCORP INCORPORATED CALL 27.50 07/22/2006 (820,000)
(400) GOLDCORP INCORPORATED CALL 30.00 05/20/2006 (209,200)
(1,300) GOLDCORP INCORPORATED CALL 30.00 07/22/2006 (819,000)
(400) GOLDCORP INCORPORATED CALL 30.00 07/22/2006 (252,000)
(325) GOLDCORP INCORPORATED CALL 30.00 10/21/2006 (240,500)
(500) GOLDCORP INCORPORATED CALL 32.50 05/20/2006 (155,000)
(400) GOLDCORP INCORPORATED CALL 32.50 07/22/2006 (180,000)
(425) GOLDCORP INCORPORATED CALL 32.50 10/21/2006 (246,500)
(400) GOLDCORP INCORPORATED CALL 35.00 07/22/2006 (124,000)
(725) GOLDCORP INCORPORATED CALL 35.00 10/21/2006 (340,750)
(1,025) GOLDCORP INCORPORATED CALL 37.50 10/21/2006 (366,950)
(1,000) HARMONY GOLD MINING COMPANY LIMITED ADR CALL 17.50 08/19/2006 (160,000)
(100) HARMONY GOLD MINING COMPANY LIMITED ADR CALL 15.00 08/19/2006 (30,000)
(300) HARMONY GOLD MINING COMPANY LIMITED ADR CALL 12.50 05/20/2006 (123,000)
(500) HARMONY GOLD MINING COMPANY LIMITED ADR CALL 17.50 05/20/2006 (27,500)
(6,000) HARMONY GOLD MINING COMPANY LIMITED ADR CALL 15.00 05/20/2006 (1,230,000)
(400) HELMERICH & PAYNE CALL 60.00 06/17/2006 (524,000)
(700) HELMERICH & PAYNE CALL 70.00 09/16/2006 (595,000)
(300) HELMERICH & PAYNE CALL 75.00 06/17/2006 (81,000)
(200) HELMERICH & PAYNE CALL 75.00 09/16/2006 (110,000)
(400) HELMERICH & PAYNE CALL 80.00 06/17/2006 (54,000)
(550) HELMERICH & PAYNE CALL 80.00 09/16/2006 (198,000)
(950) HELMERICH & PAYNE INCORPORATED CALL 65.00 06/17/2006 (826,500)
(250) HELMERICH & PAYNE INCORPORATED CALL 70.00 06/17/2006 (122,500)
(200) HYDRIL COMPANY CALL 60.00 06/17/2006 (408,000)
(200) HYDRIL COMPANY CALL 60.00 09/16/2006 (438,000)
(350) HYDRIL COMPANY CALL 65.00 06/17/2006 (549,500)
(500) HYDRIL COMPANY CALL 70.00 06/17/2006 (570,000)
(250) HYDRIL COMPANY CALL 75.00 09/16/2006 (270,000)
(300) HYDRIL COMPANY CALL 80.00 06/17/2006 (150,000)
(200) HYDRIL COMPANY CALL 80.00 09/16/2006 (162,000)
(400) HYDRIL COMPANY CALL 85.00 06/17/2006 (128,000)
(196) INPUT OUTPUT INCORPORATED CALL 7.50 05/20/2006 (49,980)
(500) INPUT OUTPUT INCORPORATED CALL 10.00 08/19/2006 (50,000)
(300) INTEROIL CORPORATION CALL 12.50 05/20/2006 (48,000)
(250) INTEROIL CORPORATION CALL 12.50 06/17/2006 (50,000)
(1,250) INTEROIL CORPORATION CALL 15.00 05/20/2006 (68,750)
(800) INTEROIL CORPORATION CALL 15.00 06/17/2006 (76,000)
(1,150) INTEROIL CORPORATION CALL 17.50 06/17/2006 (51,750)
59
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP VALUE FUND
- --------------------------------------------------------------------------------
CONTRACTS STRIKE PRICE EXPIRATION DATE VALUE
WRITTEN OPTIONS (CONTINUED)
(200) IPSCO INCORPORATED CALL $ 70.00 06/17/2006 $ (670,000)
(700) IPSCO INCORPORATED CALL 75.00 06/17/2006 (2,002,000)
(550) IPSCO INCORPORATED CALL 75.00 09/16/2006 (1,666,500)
(2,700) IPSCO INCORPORATED CALL 80.00 06/17/2006 (6,426,000)
(783) IPSCO INCORPORATED CALL 80.00 09/16/2006 (2,035,800)
(1,900) IPSCO INCORPORATED CALL 85.00 06/17/2006 (3,629,000)
(100) IPSCO INCORPORATED CALL 85.00 09/16/2006 (220,000)
(100) IPSCO INCORPORATED CALL 90.00 09/16/2006 (180,000)
(100) IPSCO INCORPORATED CALL 95.00 09/16/2006 (150,000)
(50) IPSCO INCORPORATED CALL 95.00 12/16/2006 (90,000)
(700) IPSCO INCORPORATED CALL 100.00 09/16/2006 (854,000)
(100) JARDEN CORPORATION CALL 25.00 07/22/2006 (93,000)
(300) JARDEN CORPORATION CALL 25.00 10/21/2006 (297,000)
(300) JARDEN CORPORATION CALL 30.00 05/20/2006 (132,000)
(850) JARDEN CORPORATION CALL 30.00 07/22/2006 (425,000)
(300) JARDEN CORPORATION CALL 30.00 10/21/2006 (180,000)
(150) JARDEN CORPORATION CALL 35.00 05/20/2006 (13,500)
(155) JARDEN CORPORATION CALL 35.00 06/17/2006 (25,575)
(400) JARDEN CORPORATION CALL 35.00 07/22/2006 (84,000)
(150) JARDEN CORPORATION CALL 35.00 10/21/2006 (51,000)
(100) MANOR CARE INCORPORATED CALL 35.00 05/20/2006 (88,000)
(500) MANOR CARE INCORPORATED CALL 40.00 05/20/2006 (195,000)
(150) MANOR CARE INCORPORATED CALL 40.00 08/19/2006 (67,500)
(325) MARTEK BIOSCIENCES CORPORATION CALL 30.00 06/17/2006 (69,875)
(250) MARTEK BIOSCIENCES CORPORATION CALL 30.00 09/16/2006 (90,000)
(975) MATRIX SERVICE COMPANY CALL 10.00 05/20/2006 (117,000)
(800) MCMORAN EXPLORATION COMPANY CALL 20.00 05/20/2006 (4,000)
(200) MCMORAN EXPLORATION COMPANY CALL 22.50 05/20/2006 (2,000)
(400) MERIDIAN GOLD INCORPORATED CALL 20.00 07/22/2006 (508,000)
(500) MERIDIAN GOLD INCORPORATED CALL 22.50 07/22/2006 (485,000)
(200) MERIDIAN GOLD INCORPORATED CALL 22.50 10/21/2006 (224,000)
(800) MERIDIAN GOLD INCORPORATED CALL 25.00 07/22/2006 (664,000)
(800) MERIDIAN GOLD INCORPORATED CALL 25.00 10/21/2006 (744,000)
(1,950) MERIDIAN GOLD INCORPORATED CALL 30.00 05/20/2006 (624,000)
(2,300) MERIDIAN GOLD INCORPORATED CALL 30.00 07/22/2006 (989,000)
(350) MERIDIAN GOLD INCORPORATED CALL 30.00 10/21/2006 (199,500)
(900) MERIDIAN GOLD INCORPORATED CALL 35.00 07/22/2006 (175,500)
(550) MERIDIAN GOLD INCORPORATED CALL 35.00 10/21/2006 (187,000)
(500) MPS GROUP INCORPORATED CALL 15.00 06/17/2006 (47,500)
(700) NEWFIELD EXPLORATION CALL 40.00 05/20/2006 (343,000)
(200) NEWFIELD EXPLORATION COMPANY CALL 40.00 06/17/2006 (112,000)
(500) NEWFIELD EXPLORATION COMPANY CALL 40.00 09/16/2006 (365,000)
(500) NEWFIELD EXPLORATION COMPANY CALL 45.00 05/20/2006 (75,000)
(700) NEWFIELD EXPLORATION COMPANY CALL 45.00 09/16/2006 (315,000)
(200) NEWFIELD EXPLORATION COMPANY CALL 50.00 09/16/2006 (55,000)
(100) NEWFIELD EXPLORATION CORPORATION CALL 35.00 06/17/2006 (98,000)
(400) NEWFIELD EXPLORATION CORPORATION CALL 45.00 06/17/2006 (108,000)
60
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
SMALL CAP VALUE FUND
- --------------------------------------------------------------------------------
CONTRACTS STRIKE PRICE EXPIRATION DATE VALUE
WRITTEN OPTIONS (CONTINUED)
(1,700) NOBLE ENERGY INCORPORATED CALL $ 45.00 05/20/2006 $ (255,000)
(150) NOBLE ENERGY INCORPORATED CALL 45.00 06/17/2006 (35,250)
(1,900) NOBLE ENERGY INCORPORATED CALL 45.00 08/19/2006 (684,000)
(300) NOBLE ENERGY INCORPORATED CALL 50.00 05/20/2006 (7,500)
(650) NOBLE ENERGY INCORPORATED CALL 50.00 08/19/2006 (91,000)
(200) NOBLE ENERGY INCORPORATED CALL 50.00 11/18/2006 (55,000)
(400) OCEANEERING INTERNATIONAL INCORPORATED CALL 50.00 10/21/2006 (556,000)
(1,000) OCEANEERING INTERNATIONAL INCORPORATED CALL 55.00 05/20/2006 (630,000)
(1,550) OCEANEERING INTERNATIONAL INCORPORATED CALL 55.00 07/22/2006 (1,240,000)
(500) OCEANEERING INTERNATIONAL INCORPORATED CALL 60.00 05/20/2006 (125,000)
(1,900) OCEANEERING INTERNATIONAL INCORPORATED CALL 60.00 07/22/2006 (874,000)
(100) OCEANEERING INTERNATIONAL INCORPORATED CALL 60.00 10/21/2006 (67,000)
(200) OCEANEERING INTERNATIONAL INCORPORATED CALL 65.00 07/22/2006 (48,000)
(500) OM GROUP INCORPORATED CALL 20.00 06/17/2006 (460,000)
(500) OM GROUP INCORPORATED CALL 22.50 06/17/2006 (315,000)
(100) OM GROUP INCORPORATED CALL 25.00 05/20/2006 (36,000)
(300) OM GROUP INCORPORATED CALL 25.00 06/17/2006 (126,000)
(200) OM GROUP INCORPORATED CALL 25.00 09/16/2006 (110,000)
(300) OM GROUP INCORPORATED CALL 30.00 06/17/2006 (39,000)
(100) OM GROUP INCORPORATED CALL 30.00 09/16/2006 (28,500)
(265) OMNICARE INCORPORATED CALL 47.50 06/17/2006 (254,400)
(100) OMNICARE INCORPORATED CALL 50.00 06/17/2006 (76,000)
(83) OMNICARE INCORPORATED CALL 50.00 09/16/2006 (75,530)
(100) OMNICARE INCORPORATED CALL 52.50 05/20/2006 (46,000)
(2,350) ORASURE TECHNOLOGIES INCORPORATED CALL 10.00 07/22/2006 (340,750)
(425) ORASURE TECHNOLOGIES INCORPORATED CALL 12.50 07/22/2006 (17,000)
(1,500) ORASURE TECHNOLOGIES INCORPORATED CALL 12.50 10/21/2006 (142,500)
(500) OSI SYSTEMS INCORPORATED CALL 20.00 05/20/2006 (20,000)
(100) OSI SYSTEMS INCORPORATED CALL 22.50 05/20/2006 (100)
(100) OSI SYSTEMS INCORPORATED CALL 22.50 07/22/2006 (5,000)
(300) OSI SYSTEMS INCORPORATED CALL 25.00 10/21/2006 (10,500)
(200) OSI SYSTEMS INCORPORATED CALL 25.00 07/22/2006 (2,000)
(500) PARKER DRILLING COMPANY CALL 12.50 07/22/2006 (2,500)
(500) PARKER DRILLING COMPANY CALL 12.50 10/21/2006 (15,000)
(150) PAYLESS SHOESOURCE INCORPORATED CALL 22.50 05/20/2006 (15,000)
(200) PAYLESS SHOESOURCE INCORPORATED CALL 22.50 06/17/2006 (30,000)
(100) PAYLESS SHOESOURCE INCORPORATED CALL 25.00 06/17/2006 (4,500)
(300) PAYLESS SHOESOURCE INCORPORATED CALL 25.00 09/16/2006 (40,500)
(750) PIONEER NATURAL RESOURCES COMPANY CALL 45.00 05/20/2006 (82,500)
(500) PIONEER NATURAL RESOURCES COMPANY CALL 45.00 06/17/2006 (105,000)
(200) PIONEER NATURAL RESOURCES COMPANY CALL 40.00 05/20/2006 (70,000)
(100) PIONEER NATURAL RESOURCES COMPANY CALL 40.00 06/17/2006 (48,000)
(400) PIONEER NATURAL RESOURCES COMPANY CALL 50.00 09/16/2006 (68,000)
(1,000) POLYONE CORPORATION CALL 10.00 08/19/2006 (50,000)
(300) PORTALPLAYER INCORPORATED CALL 10.00 06/17/2006 (52,500)
(200) PORTALPLAYER INCORPORATED CALL 10.00 08/19/2006 (42,000)
(900) PORTALPLAYER INCORPORATED CALL 12.50 05/20/2006 (36,000)
61
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP VALUE FUND
- --------------------------------------------------------------------------------
CONTRACTS STRIKE PRICE EXPIRATION DATE VALUE
WRITTEN OPTIONS (CONTINUED)
(1,000) PORTALPLAYER INCORPORATED CALL $ 12.50 06/17/2006 $ (60,000)
(550) PORTALPLAYER INCORPORATED CALL 12.50 08/19/2006 (49,500)
(500) PORTALPLAYER INCORPORATED CALL 15.00 08/19/2006 (22,500)
(550) PRIDE INTERNATIONAL INCORPORATED CALL 25.00 07/22/2006 (555,500)
(200) PRIDE INTERNATIONAL INCORPORATED CALL 25.00 10/21/2006 (214,000)
(200) PRIDE INTERNATIONAL INCORPORATED CALL 30.00 07/22/2006 (112,000)
(300) PRIDE INTERNATIONAL INCORPORATED CALL 30.00 10/21/2006 (201,000)
(300) PRIDE INTERNATIONAL INCORPORATED CALL 35.00 05/20/2006 (31,500)
(500) PRIDE INTERNATIONAL INCORPORATED CALL 35.00 07/22/2006 (122,500)
(400) PRIDE INTERNATIONAL INCORPORATED CALL 35.00 10/21/2006 (148,000)
(200) PRIDE INTERNATIONAL INCORPORATED CALL 40.00 07/22/2006 (14,000)
(1,500) PROGRESSIVE GAMING INTERNATIONAL CORPORATION CALL 10.00 09/16/2006 (262,500)
(1,200) RANDGOLD RESOURCES LIMITED ADR CALL 20.00 06/17/2006 (564,000)
(800) RANDGOLD RESOURCES LIMITED ADR CALL 25.00 06/17/2006 (128,000)
(300) RANDGOLD RESOURCES LIMITED ADR CALL 22.50 05/20/2006 (70,500)
(900) RANDGOLD RESOURCES LIMITED ADR CALL 22.50 06/17/2006 (229,500)
(1,100) RANDGOLD RESOURCES LIMITED ADR CALL 22.50 09/16/2006 (429,000)
(2,000) RANDGOLD RESOURCES LIMITED ADR CALL 25.00 09/16/2006 (520,000)
(3,800) RANGE RESOURCES CORPORATION CALL 25.00 06/17/2006 (912,000)
(500) RANGE RESOURCES CORPORATION CALL 26.63 06/17/2006 (108,750)
(800) RANGE RESOURCES CORPORATION CALL 30.00 05/20/2006 (12,000)
(3,000) RANGE RESOURCES CORPORATION CALL 30.00 06/17/2006 (150,000)
(1,750) RANGE RESOURCES CORPORATION CALL 30.00 09/16/2006 (245,000)
(600) RANGE RESOURCES CORPORATION CALL 35.00 09/16/2006 (30,000)
(200) REMINGTON OIL & GAS CORPORATION CALL 40.00 06/17/2006 (76,000)
(150) R.H. DONNELLEY CORPORATION CALL 60.00 05/20/2006 (750)
(85) SHARPER IMAGE CORPORATION CALL 10.00 05/20/2006 (41,650)
(500) SMITH INTERNATIONAL INCORPORATED CALL 35.00 07/22/2006 (395,000)
(100) SMITH INTERNATIONAL INCORPORATED CALL 37.50 07/22/2006 (59,000)
(100) SMITH INTERNATIONAL INCORPORATED CALL 40.00 05/20/2006 (33,000)
(200) SMITH INTERNATIONAL INCORPORATED CALL 40.00 07/22/2006 (88,000)
(150) SMITH INTERNATIONAL INCORPORATED CALL 42.50 07/22/2006 (41,250)
(200) SMITH INTERNATIONAL INCORPORATED CALL 45.00 06/17/2006 (29,000)
(100) SMITH INTERNATIONAL INCORPORATED CALL 45.00 07/22/2006 (18,000)
(377) STAMPS.COM INCORPORATED CALL 25.00 05/20/2006 (139,490)
(490) STEEL DYNAMICS INCORPORATED CALL 30.00 05/20/2006 (1,577,800)
(944) STEEL DYNAMICS INCORPORATED CALL 35.00 05/20/2006 (2,567,680)
(2,200) STEEL DYNAMICS INCORPORATED CALL 40.00 05/20/2006 (4,906,000)
(1,150) STEEL DYNAMICS INCORPORATED CALL 45.00 05/20/2006 (2,001,000)
(170) STEEL DYNAMICS INCORPORATED CALL 45.00 11/18/2006 (334,900)
(700) STEEL DYNAMICS INCORPORATED CALL 50.00 05/20/2006 (840,000)
(1,200) STEEL DYNAMICS INCORPORATED CALL 50.00 08/19/2006 (1,716,000)
(1,000) STEEL DYNAMICS INCORPORATED CALL 55.00 08/19/2006 (1,090,000)
(350) STEEL DYNAMICS INCORPORATED CALL 60.00 08/19/2006 (262,500)
(200) STEEL DYNAMICS INCORPORATED CALL 65.00 05/20/2006 (30,000)
(430) STONE ENERGY CORPORATION CALL 50.00 06/17/2006 (64,500)
(1,150) STONE ENERGY CORPORATION CALL 50.00 09/16/2006 (379,500)
(1,550) STONE ENERGY CORPORATION CALL 55.00 09/16/2006 (232,500)
62
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
SMALL CAP VALUE FUND
- --------------------------------------------------------------------------------
CONTRACTS STRIKE PRICE EXPIRATION DATE VALUE
WRITTEN OPTIONS (CONTINUED)
(500) STONE ENERGY CORPORATION CALL $ 60.00 09/16/2006 $ (35,000)
(150) SYMBOL TECHNOLOGIES INCORPORATED CALL 10.00 07/22/2006 (18,000)
(525) SYMBOL TECHNOLOGIES INCORPORATED CALL 12.50 07/22/2006 (13,125)
(150) TOO INCORPORATED CALL 40.00 08/19/2006 (40,500)
(1,998) TOREADOR RESOURCES CORPORATION CALL 25.00 06/17/2006 (1,198,800)
(1,175) TRANSOCEAN INCORPORATED CALL 65.00 05/20/2006 (1,915,250)
(1,943) TRANSOCEAN INCORPORATED CALL 70.00 05/20/2006 (2,234,450)
(300) TRANSOCEAN INCORPORATED CALL 75.00 05/20/2006 (216,000)
(250) TRANSOCEAN INCORPORATED CALL 80.00 05/20/2006 (96,000)
(1,000) UNITED STATES STEEL CORPORATION CALL 40.00 07/22/2006 (2,860,000)
(1,000) UNITED STATES STEEL CORPORATION CALL 45.00 07/22/2006 (2,370,000)
(775) UNITED STATES STEEL CORPORATION CALL 50.00 07/22/2006 (1,488,000)
(1,000) UNITED STATES STEEL CORPORATION CALL 55.00 05/20/2006 (1,320,000)
(548) UNITED STATES STEEL CORPORATION CALL 55.00 07/22/2006 (794,600)
(800) UNITED STATES STEEL CORPORATION CALL 55.00 10/21/2006 (1,280,000)
(1,000) UNITED STATES STEEL CORPORATION CALL 60.00 05/20/2006 (890,000)
(1,000) UNITED STATES STEEL CORPORATION CALL 60.00 07/22/2006 (1,070,000)
(1,500) UNITED STATES STEEL CORPORATION CALL 60.00 10/21/2006 (1,890,000)
(600) UNITED STATES STEEL CORPORATION CALL 65.00 07/22/2006 (432,000)
(300) VIGNETTE CORPORATION CALL 15.00 06/17/2006 (39,000)
(200) VISHAY INTERTECHNOLOGY INCORPORATED CALL 12.50 07/22/2006 (66,000)
(800) VISHAY INTERTECHNOLOGY INCORPORATED CALL 15.00 10/21/2006 (140,000)
(500) WILLBROS GROUP INCORPORATED CALL 20.00 06/17/2006 (115,000)
TOTAL WRITTEN OPTIONS (PREMIUMS RECEIVED $(100,457,974)) (170,814,040)
-------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
63
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
STATEMENTS OF ASSETS AND LIABILITIES--
APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
C&B MID CAP COMMON
VALUE FUND STOCK FUND
- ------------------------------------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE .................................... $ 773,746,738 $ 1,157,218,572
COLLATERAL FOR SECURITIES LOANED (NOTE 2) ......................... 185,950,762 157,034,441
INVESTMENTS IN AFFILIATES ......................................... 4,952,261 120,117,078
---------------- -----------------
TOTAL INVESTMENTS AT MARKET VALUE (SEE COST BELOW) ................... 964,649,761 1,434,370,091
---------------- -----------------
CASH .............................................................. 0 2,504,666
RECEIVABLE FOR FUND SHARES ISSUED ................................. 25,232,509 66,849
RECEIVABLE FOR INVESTMENTS SOLD ................................... 55,566 3,644,917
RECEIVABLES FOR DIVIDENDS AND INTEREST ............................ 417,281 1,201,150
RECEIVABLE FOR INTEREST RATE SWAPS/SPREAD LOCKS ................... 0 418,731
PREPAID EXPENSES AND OTHER ASSETS ................................. 0 0
---------------- -----------------
TOTAL ASSETS ......................................................... 990,355,117 1,442,206,404
---------------- -----------------
LIABILITIES
OPTION WRITTEN, AT VALUE .......................................... 0 1,337,000
PAYABLE FOR FUND SHARES REDEEMED .................................. 130,689 178,544
PAYABLE FOR INVESTMENTS PURCHASED ................................. 3,204,560 22,984,552
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) ............. 481,592 735,759
PAYABLE TO THE TRUSTEES AND SHAREHOLDER SERVICING AGENT ........... 163,501 293,969
PAYABLE FOR SECURITIES LOANED (NOTE 2) ............................ 185,950,762 157,034,441
ACCRUED EXPENSES AND OTHER LIABILITIES ............................ 13,580 152,871
---------------- -----------------
TOTAL LIABILITIES .................................................... 189,944,684 182,717,136
---------------- -----------------
TOTAL NET ASSETS ..................................................... $ 800,410,433 $ 1,259,489,268
================ =================
NET ASSETS CONSIST OF:
- ------------------------------------------------------------------------------------------------------------
PAID-IN CAPITAL ................................................... $ 644,435,840 $ 813,417,966
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ........................ 1,480,976 (1,685,182)
UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON INVESTMENTS ............. 35,373,276 112,401,169
NET UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS,
FOREIGN CURRENCIES AND TRANSLATION OF ASSETS AND LIABILITIES
DENOMINATED IN FOREIGN CURRENCIES ............................... 119,120,341 335,412,270
NET UNREALIZED APPRECIATION (DEPRECIATION) OF OPTIONS, SWAP
AGREEMENTS, AND SHORT SALES ..................................... 0 (56,955)
---------------- -----------------
TOTAL NET ASSETS ..................................................... $ 800,410,433 $ 1,259,489,268
---------------- -----------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE(1)
- ------------------------------------------------------------------------------------------------------------
NET ASSETS - CLASS A .............................................. $ 34,708,286 $ 69,694,745
SHARES OUTSTANDING - CLASS A ...................................... 1,567,349 2,948,980
NET ASSET VALUE PER SHARE - CLASS A ............................... $ 22.14 $ 23.63
MAXIMUM OFFERING PRICE PER SHARE - CLASS A(2) ..................... $ 23.49 $ 25.07
NET ASSETS - CLASS B .............................................. $ 14,243,757 $ 37,197,936
SHARES OUTSTANDING - CLASS B ...................................... 652,023 1,648,563
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS B ............ $ 21.85 $ 22.56
NET ASSETS - CLASS C .............................................. $ 9,474,429 $ 20,854,105
SHARES OUTSTANDING - CLASS C ...................................... 433,579 924,477
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS C ............ $ 21.85 $ 22.56
NET ASSETS - CLASS D .............................................. $ 539,346,105 N/A
SHARES OUTSTANDING - CLASS D ...................................... 24,294,483 N/A
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS D ............ $ 22.20 N/A
NET ASSETS - CLASS Z .............................................. N/A $ 1,131,742,482
SHARES OUTSTANDING - CLASS Z ...................................... N/A 47,217,400
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS Z ............ N/A $ 23.97
NET ASSETS - ADMINISTRATOR CLASS .................................. $ 144,413,830 N/A
SHARES OUTSTANDING - ADMINISTRATOR CLASS .......................... 6,491,450 N/A
NET ASSET VALUE AND OFFERING PRICE PER SHARE - ADMINISTRATOR
CLASS ........................................................... $ 22.25 N/A
NET ASSETS - INSTITUTIONAL CLASS .................................. $ 58,224,026 N/A
SHARES OUTSTANDING - INSTITUTIONAL CLASS .......................... 2,610,732 N/A
NET ASSET VALUE AND OFFERING PRICE PER SHARE - INSTITUTIONAL
CLASS ........................................................... $ 22.30 N/A
---------------- -----------------
INVESTMENTS AT COST .................................................. $ 845,529,420 $ 1,099,252,338
---------------- -----------------
SECURITIES ON LOAN, AT MARKET VALUE .................................. $ 179,638,351 $ 165,288,487
---------------- -----------------
PREMIUMS RECEIVED ON WRITTEN OPTIONS ................................. $ 0 $ 1,154,114
================ =================
(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
INVESTMENT OF $50,000 OR MORE, THE OFFERING PRICE IS REDUCED.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
64
STATEMENTS OF ASSETS AND LIABILITIES--
APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
MID CAP SMALL CAP
GROWTH FUND GROWTH FUND
- ----------------------------------------------------------------------------------------- ----------------
ASSETS
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE .................................... $ 187,265,633 $ 295,958,693
COLLATERAL FOR SECURITIES LOANED (NOTE 2) ......................... 33,079,219 77,575,929
INVESTMENTS IN AFFILIATES ......................................... 2,530,557 4,868,796
----------------- ----------------
TOTAL INVESTMENTS AT MARKET VALUE (SEE COST BELOW) ................... 222,875,409 378,403,418
----------------- ----------------
CASH .............................................................. 50,000 50,000
RECEIVABLE FOR FUND SHARES ISSUED ................................. 136,244 245,433
RECEIVABLE FOR INVESTMENTS SOLD ................................... 5,490,418 4,888,108
RECEIVABLES FOR DIVIDENDS AND INTEREST ............................ 35,575 29,783
RECEIVABLE FOR INTEREST RATE SWAPS/SPREAD LOCKS ................... 0 0
PREPAID EXPENSES AND OTHER ASSETS ................................. 0 0
----------------- ----------------
TOTAL ASSETS ......................................................... 228,587,646 383,616,742
----------------- ----------------
LIABILITIES
OPTION WRITTEN, AT VALUE .......................................... 0 0
PAYABLE FOR FUND SHARES REDEEMED .................................. 39,617 85,918
PAYABLE FOR INVESTMENTS PURCHASED ................................. 4,500,369 6,792,883
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) ............. 120,235 171,877
PAYABLE TO THE TRUSTEES AND SHAREHOLDER SERVICING AGENT ........... 46,644 69,984
PAYABLE FOR SECURITIES LOANED (NOTE 2) ............................ 33,079,220 77,575,929
ACCRUED EXPENSES AND OTHER LIABILITIES ............................ 10,264 23,079
----------------- ----------------
TOTAL LIABILITIES .................................................... 37,796,349 84,719,670
----------------- ----------------
TOTAL NET ASSETS ..................................................... $ 190,791,297 $ 298,897,072
================= ================
NET ASSETS CONSIST OF:
- ----------------------------------------------------------------------------------------- ----------------
PAID-IN CAPITAL ................................................... $ 156,303,059 $ 251,101,697
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ........................ (541,717) (1,574,179)
UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON INVESTMENTS ............. 6,792,711 8,395,783
NET UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS,
FOREIGN CURRENCIES AND TRANSLATION OF ASSETS AND LIABILITIES
DENOMINATED IN FOREIGN CURRENCIES ............................... 28,237,244 40,973,771
NET UNREALIZED APPRECIATION (DEPRECIATION) OF OPTIONS, SWAP
AGREEMENTS, AND SHORT SALES ..................................... 0 0
----------------- ----------------
TOTAL NET ASSETS ..................................................... $ 190,791,297 $ 298,897,072
----------------- ----------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE(1)
- ----------------------------------------------------------------------------------------- ----------------
NET ASSETS - CLASS A .............................................. $ 121,677,828 $ 115,963,525
SHARES OUTSTANDING - CLASS A ...................................... 17,340,804 8,118,369
NET ASSET VALUE PER SHARE - CLASS A ............................... $ 7.02 $ 14.28
MAXIMUM OFFERING PRICE PER SHARE - CLASS A(2) ..................... $ 7.45 $ 15.15
NET ASSETS - CLASS B .............................................. $ 8,917,581 $ 23,433,178
SHARES OUTSTANDING - CLASS B ...................................... 1,330,012 1,679,685
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS B ............ $ 6.70 $ 13.95
NET ASSETS - CLASS C .............................................. $ 2,084,255 $ 6,953,515
SHARES OUTSTANDING - CLASS C ...................................... 311,207 497,835
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS C ............ $ 6.70 $ 13.97
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 .............................................. $ 58,111,633 $ 41,144,211
SHARES OUTSTANDING - CLASS Z ...................................... 8,297,346 2,886,256
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS Z ............ $ 7.00 $ 14.26
NET ASSETS - ADMINISTRATOR CLASS .................................. N/A $ 62,633,965
SHARES OUTSTANDING - ADMINISTRATOR CLASS .......................... N/A 4,359,748
NET ASSET VALUE AND OFFERING PRICE PER SHARE - ADMINISTRATOR
CLASS ........................................................... N/A $ 14.37
NET ASSETS - INSTITUTIONAL CLASS .................................. N/A $ 48,768,678
SHARES OUTSTANDING - INSTITUTIONAL CLASS .......................... N/A 3,383,374
NET ASSET VALUE AND OFFERING PRICE PER SHARE - INSTITUTIONAL
CLASS ........................................................... N/A $ 14.41
----------------- ----------------
INVESTMENTS AT COST .................................................. $ 194,638,165 $ 337,429,648
----------------- ----------------
SECURITIES ON LOAN, AT MARKET VALUE .................................. $ 35,626,841 $ 77,616,983
----------------- ----------------
PREMIUMS RECEIVED ON WRITTEN OPTIONS ................................. $ 0 $ 0
================= ================
SMALL CAP
OPPORTUNITIES SMALL CAP
FUND VALUE FUND
- -------------------------------------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE .................................... $ 757,778,570 $ 2,379,320,804
COLLATERAL FOR SECURITIES LOANED (NOTE 2) ......................... 164,417,574 0
INVESTMENTS IN AFFILIATES ......................................... 83,312,284 1,335,540,991
----------------- -----------------
TOTAL INVESTMENTS AT MARKET VALUE (SEE COST BELOW) ................... 1,005,508,428 3,714,861,795
----------------- -----------------
CASH .............................................................. 50,000 0
RECEIVABLE FOR FUND SHARES ISSUED ................................. 1,386,834 2,567,507
RECEIVABLE FOR INVESTMENTS SOLD ................................... 7,068,316 11,561,374
RECEIVABLES FOR DIVIDENDS AND INTEREST ............................ 490,296 3,251,275
RECEIVABLE FOR INTEREST RATE SWAPS/SPREAD LOCKS ................... 0 0
PREPAID EXPENSES AND OTHER ASSETS ................................. 0 93,496
----------------- -----------------
TOTAL ASSETS ......................................................... 1,014,503,874 3,732,335,447
----------------- -----------------
LIABILITIES
OPTION WRITTEN, AT VALUE .......................................... 0 170,814,040
PAYABLE FOR FUND SHARES REDEEMED .................................. 27,294 1,720,411
PAYABLE FOR INVESTMENTS PURCHASED ................................. 12,195,782 18,258,699
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) ............. 606,444 3,506,401
PAYABLE TO THE TRUSTEES AND SHAREHOLDER SERVICING AGENT ........... 169,383 854,560
PAYABLE FOR SECURITIES LOANED (NOTE 2) ............................ 164,417,574 0
ACCRUED EXPENSES AND OTHER LIABILITIES ............................ 17,235 0
----------------- -----------------
TOTAL LIABILITIES .................................................... 177,433,712 195,154,111
----------------- -----------------
TOTAL NET ASSETS ..................................................... $ 837,070,162 $ 3,537,181,336
================= =================
NET ASSETS CONSIST OF:
- -------------------------------------------------------------------------------------------------------------
PAID-IN CAPITAL ................................................... $ 628,485,322 $ 2,441,210,829
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ........................ (875,457) (16,445,861)
UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON INVESTMENTS ............. 65,290,294 61,127,033
NET UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS,
FOREIGN CURRENCIES AND TRANSLATION OF ASSETS AND LIABILITIES
DENOMINATED IN FOREIGN CURRENCIES ............................... 144,170,003 1,121,645,401
NET UNREALIZED APPRECIATION (DEPRECIATION) OF OPTIONS,
SWAP AGREEMENTS, AND
SHORT SALES ..................................................... 0 (70,356,066)
----------------- -----------------
TOTAL NET ASSETS ..................................................... $ 837,070,162 $ 3,537,181,336
----------------- -----------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE(1)
- -------------------------------------------------------------------------------------------------------------
NET ASSETS - CLASS A .............................................. N/A $ 697,315,770
SHARES OUTSTANDING - CLASS A ...................................... N/A 21,141,727
NET ASSET VALUE PER SHARE - CLASS A ............................... N/A $ 32.98
MAXIMUM OFFERING PRICE PER SHARE - CLASS A(2) ..................... N/A $ 34.99
NET ASSETS - CLASS B .............................................. N/A $ 143,146,186
SHARES OUTSTANDING - CLASS B ...................................... N/A 4,557,797
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS B ............ N/A $ 31.41
NET ASSETS - CLASS C .............................................. N/A $ 157,995,635
SHARES OUTSTANDING - CLASS C ...................................... N/A 5,018,480
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS C ............ N/A $ 31.48
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 $ 2,538,723,745
SHARES OUTSTANDING - CLASS Z ...................................... N/A 76,199,492
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS Z ............ N/A $ 33.32
NET ASSETS - ADMINISTRATOR CLASS .................................. $ 837,070,162 N/A
SHARES OUTSTANDING - ADMINISTRATOR CLASS .......................... 22,152,608 N/A
NET ASSET VALUE AND OFFERING PRICE PER SHARE -
ADMINISTRATOR CLASS ............................................. $ 37.79 N/A
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 .................................................. $ 861,338,425 $ 2,593,216,745
----------------- -----------------
SECURITIES ON LOAN, AT MARKET VALUE .................................. $ 165,424,652 $ 0
----------------- -----------------
PREMIUMS RECEIVED ON WRITTEN OPTIONS ................................. $ 0 $ 100,457,974
================= =================
65
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
STATEMENTS OF OPERATIONS--
FOR THE SIX MONTHS ENDED APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
C&B MID CAP COMMON
VALUE FUND STOCK FUND
- ------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS(1) ...................................................... $ 5,552,417 $ 4,452,055
INTEREST .......................................................... 1,240 30,043
INCOME FROM AFFILIATED SECURITIES ................................. 357,860 1,788,577
SECURITIES LENDING INCOME, NET .................................... 211,236 37,589
---------------- -----------------
TOTAL INVESTMENT INCOME .............................................. 6,122,753 6,308,264
---------------- -----------------
EXPENSES
ADVISORY FEES ..................................................... 2,671,276 4,280,278
ADMINISTRATION FEES
FUND LEVEL ...................................................... 181,950 300,643
CLASS A ......................................................... 43,179 93,263
CLASS B ......................................................... 18,005 50,800
CLASS C ......................................................... 11,760 28,749
CLASS D ......................................................... 684,316 N/A
CLASS Z ......................................................... N/A 2,428,054
ADMINISTRATOR CLASS ............................................. 64,672 N/A
INSTITUTIONAL CLASS ............................................. 23,023 N/A
CUSTODY FEES ...................................................... 72,780 120,257
SHAREHOLDER SERVICING FEES ........................................ 837,804 1,503,215
ACCOUNTING FEES ................................................... 41,897 56,715
DISTRIBUTION FEES (NOTE 3)
CLASS B ......................................................... 48,228 136,072
CLASS C ......................................................... 31,499 77,006
PROFESSIONAL FEES ................................................. 34,036 26,034
REGISTRATION FEES ................................................. 91,182 17,103
SHAREHOLDER REPORTS ............................................... 133,141 28,777
TRUSTEES' FEES .................................................... 3,687 3,687
OTHER FEES AND EXPENSES ........................................... 9,952 9,116
---------------- -----------------
TOTAL EXPENSES ....................................................... 5,002,387 9,159,769
---------------- -----------------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) ...................... (503,485) (1,177,757)
NET EXPENSES ...................................................... 4,498,902 7,982,012
---------------- -----------------
NET INVESTMENT INCOME (LOSS) ......................................... 1,623,851 (1,673,748)
---------------- -----------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- ------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY
TRANSLATION .................................................... 37,884,560 120,452,559
OPTIONS, SWAP AGREEMENTS AND SHORT SALE TRANSACTIONS .............. 0 (310,692)
---------------- -----------------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ............................ 37,884,560 120,141,867
---------------- -----------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY
TRANSLATION .................................................... 68,397,668 80,906,337
OPTIONS, SWAP AGREEMENTS AND SHORT SALE TRANSACTIONS .............. 0 (68,389)
---------------- -----------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS ....................................................... 68,397,668 80,837,948
================ =================
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ............... 106,282,228 200,979,815
---------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ........................................................ $ 107,906,079 $ 199,306,067
================ =================
(1) NET OF FOREIGN WITHHOLDING TAXES OF ........................... $ 0 $ 4,822
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
66
STATEMENTS OF OPERATIONS--
FOR THE SIX MONTHS ENDED APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
MID CAP SMALL CAP
GROWTH FUND GROWTH FUND
- ------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS(1) ...................................................... $ 672,113 $ 106,722
INTEREST .......................................................... 489 0
INCOME FROM AFFILIATED SECURITIES ................................. 62,666 69,155
SECURITIES LENDING INCOME, NET .................................... 50,865 108,361
---------------- -----------------
TOTAL INVESTMENT INCOME .............................................. 786,133 284,238
---------------- -----------------
EXPENSES
ADVISORY FEES ..................................................... 666,525 1,204,182
ADMINISTRATION FEES
FUND LEVEL ...................................................... 44,435 66,899
CLASS A ......................................................... 159,040 147,362
CLASS B ......................................................... 11,950 31,056
CLASS C ......................................................... 2,508 8,902
CLASS D ......................................................... N/A N/A
CLASS Z ......................................................... 121,081 85,162
ADMINISTRATOR CLASS ............................................. N/A 28,610
INSTITUTIONAL CLASS ............................................. N/A 15,490
CUSTODY FEES ...................................................... 17,774 26,760
SHAREHOLDER SERVICING FEES ........................................ 222,176 286,087
ACCOUNTING FEES ................................................... 17,070 31,082
DISTRIBUTION FEES (NOTE 3)
CLASS B ......................................................... 32,009 83,185
CLASS C ......................................................... 6,717 23,845
PROFESSIONAL FEES ................................................. 11,235 7,292
REGISTRATION FEES ................................................. 48,002 63,571
SHAREHOLDER REPORTS ............................................... 51,612 73,882
TRUSTEES' FEES .................................................... 3,687 3,687
OTHER FEES AND EXPENSES ........................................... 3,476 4,805
---------------- -----------------
TOTAL EXPENSES ....................................................... 1,419,297 2,191,859
---------------- -----------------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) ...................... (91,447) (333,442)
NET EXPENSES ...................................................... 1,327,850 1,858,417
---------------- -----------------
NET INVESTMENT INCOME (LOSS) ......................................... (541,717) (1,574,179)
---------------- -----------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- ------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY
TRANSLATION ..................................................... 19,876,944 37,172,935
OPTIONS, SWAP AGREEMENTS AND SHORT SALE TRANSACTIONS .............. 0 0
---------------- -----------------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ............................ 19,876,944 37,172,935
---------------- -----------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY
TRANSLATION ..................................................... 12,996,347 26,907,788
OPTIONS, SWAP AGREEMENTS AND SHORT SALE TRANSACTIONS .............. 0 0
---------------- -----------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS ....................................................... 12,996,347 26,907,788
================ =================
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ............... 32,873,291 64,080,723
---------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ........................................................ $ 32,331,574 $ 62,506,544
================ =================
(1) NET OF FOREIGN WITHHOLDING TAXES OF ........................... $ 0 $ 0
SMALL CAP
OPPORTUNITIES SMALL CAP
FUND VALUE FUND
- -------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS(1) ...................................................... 2,299,211 $ 6,244,909
INTEREST .......................................................... 1,063 27,495
INCOME FROM AFFILIATED SECURITIES ................................. 1,259,422 10,514,028
SECURITIES LENDING INCOME, NET .................................... 133,334 0
---------------- -----------------
TOTAL INVESTMENT INCOME .............................................. 3,693,030 16,786,432
---------------- -----------------
EXPENSES
ADVISORY FEES ..................................................... 3,359,985 13,021,946
ADMINISTRATION FEES
FUND LEVEL ...................................................... 190,354 792,275
CLASS A ......................................................... N/A 917,794
CLASS B ......................................................... N/A 195,223
CLASS C ......................................................... N/A 213,181
CLASS D ......................................................... N/A N/A
CLASS Z ......................................................... N/A 4,999,089
ADMINISTRATOR CLASS ............................................. 380,707 N/A
INSTITUTIONAL CLASS ............................................. N/A N/A
CUSTODY FEES ...................................................... 76,141 316,910
SHAREHOLDER SERVICING FEES ........................................ 951,768 3,961,378
ACCOUNTING FEES ................................................... 27,810 113,584
DISTRIBUTION FEES (NOTE 3)
CLASS B ......................................................... N/A 522,919
CLASS C ......................................................... N/A 571,021
PROFESSIONAL FEES ................................................. 27,120 26,872
REGISTRATION FEES ................................................. 15,674 38,009
SHAREHOLDER REPORTS ............................................... 54,599 19,540
TRUSTEES' FEES .................................................... 3,687 3,687
OTHER FEES AND EXPENSES ........................................... 9,688 30,015
---------------- -----------------
TOTAL EXPENSES ....................................................... 5,097,533 25,743,443
---------------- -----------------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) ...................... (529,046) (2,746,992)
NET EXPENSES ...................................................... 4,568,487 22,996,451
---------------- -----------------
NET INVESTMENT INCOME (LOSS) ......................................... (875,457) (6,210,019)
---------------- -----------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- -------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY
TRANSLATION ..................................................... 66,190,248 179,357,402
OPTIONS, SWAP AGREEMENTS AND SHORT SALE TRANSACTIONS .............. 0 (55,967,988)
---------------- -----------------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ............................ 66,190,248 123,389,414
---------------- -----------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY
TRANSLATION ..................................................... 74,387,636 436,610,400
OPTIONS, SWAP AGREEMENTS AND SHORT SALE TRANSACTIONS .............. 0 (69,935,576)
---------------- -----------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS ....................................................... 74,387,636 366,674,824
================ =================
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ............... 140,577,884 490,064,238
---------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ........................................................ $ 139,702,427 $ 483,854,219
================ =================
(1) NET OF FOREIGN WITHHOLDING TAXES OF ........................... 6,718 $ 406,303
67
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
C&B MID CAP VALUE FUND
-----------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
APRIL 30, 2006 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2005
- ----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ................................................................. $ 697,428,194 $ 605,861,919
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ......................................................... 1,623,851 (1,692,166)
NET REALIZED GAIN (LOSS) ON INVESTMENTS .............................................. 37,884,560 57,568,364
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS .................. 68,397,668 26,093,508
---------------- ----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ............................ 107,906,079 81,969,706
---------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A .............................................................................. 0 0
CLASS B .............................................................................. 0 0
CLASS C .............................................................................. 0 0
CLASS D .............................................................................. 0 0
CLASS Z .............................................................................. N/A N/A
ADMINISTRATOR CLASS .................................................................. (12,076) 0
INSTITUTIONAL CLASS .................................................................. (130,799) 0
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A .............................................................................. (2,353,242) (250,024)
CLASS B .............................................................................. (990,752) (118,813)
CLASS C .............................................................................. (635,292) (59,896)
CLASS D .............................................................................. (38,978,744) (15,648,239)
CLASS Z .............................................................................. N/A N/A
ADMINISTRATOR CLASS .................................................................. (9,848,215) (2,907,513)
INSTITUTIONAL CLASS .................................................................. (4,803,413) (558,203)
---------------- ----------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ........................................................ (57,752,533) (19,542,688)
---------------- ----------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A ..................................................... 8,125,845 25,443,751
REINVESTMENT OF DISTRIBUTIONS - CLASS A ................................................. 2,099,310 240,320
COST OF SHARES REDEEMED - CLASS A ....................................................... (4,465,631) (4,908,610)
---------------- ----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS A .. 5,759,524 20,775,461
---------------- ----------------
PROCEEDS FROM SHARES SOLD - CLASS B ..................................................... 2,217,334 9,230,937
REINVESTMENT OF DISTRIBUTIONS - CLASS B ................................................. 971,769 117,170
COST OF SHARES REDEEMED - CLASS B ....................................................... (1,219,810) (984,828)
---------------- ----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS B .. 1,969,293 8,363,279
---------------- ----------------
PROCEEDS FROM SHARES SOLD - CLASS C ..................................................... 2,278,964 6,092,668
REINVESTMENT OF DISTRIBUTIONS - CLASS C ................................................. 624,326 59,328
COST OF SHARES REDEEMED - CLASS C ....................................................... (820,590) (600,076)
---------------- ----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS C .. 2,082,700 5,551,920
---------------- ----------------
PROCEEDS FROM SHARES SOLD - CLASS D ..................................................... 126,482,742 325,057,499
REINVESTMENT OF DISTRIBUTIONS - CLASS D ................................................. 38,344,337 15,441,248
COST OF SHARES REDEEMED - CLASS D ....................................................... (128,894,253) (417,643,458)
---------------- ----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS D .. 35,932,826 (77,144,711)
---------------- ----------------
PROCEEDS FROM SHARES SOLD - CLASS Z ..................................................... N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS Z ................................................. N/A N/A
COST OF SHARES REDEEMED - CLASS Z ....................................................... 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) ................................ 35,408,004 73,134,534
REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS (NOTE 1) ............................ 8,604,922 2,590,069
COST OF SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) .................................. (27,654,759) (47,627,103)
---------------- ----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS -
ADMINISTRATOR CLASS ..................................................................... 16,358,167 28,097,500
---------------- ----------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) ................................ 8,454,548 115,352,097
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS (NOTE 1) ............................ 4,934,212 558,203
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) .................................. (22,662,577) (72,414,492)
---------------- ----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS -
INSTITUTIONAL CLASS ..................................................................... (9,273,817) 43,495,808
---------------- ----------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
68
STATEMENTS OF CHANGES IN NET ASSETS
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
COMMON STOCK FUND
-------------------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE FOR THE
APRIL 30, 2006 PERIOD ENDED YEAR ENDED
(UNAUDITED) OCTOBER 31, 2005 DECEMBER 31, 2004
- -----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS .............................................. $ 1,126,471,146 $ 1,300,130,911 $ 1,590,977,622
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ...................................... (1,673,748) (4,302,464) (6,211,139)
NET REALIZED GAIN (LOSS) ON INVESTMENTS ........................... 120,141,867 158,926,004 215,035,135
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS .................................................... 80,837,948 (103,589,953) (86,198,405)
---------------- ---------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ......... 199,306,067 51,033,587 122,625,591
---------------- ---------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ........................................................... 0 0 0
CLASS B ........................................................... 0 0 0
CLASS C ........................................................... 0 0 0
CLASS D ........................................................... N/A N/A N/A
CLASS Z ........................................................... 0 0 0
ADMINISTRATOR CLASS ............................................... N/A N/A N/A
INSTITUTIONAL CLASS ............................................... N/A N/A N/A
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A ........................................................... (8,532,731) (1,190,316) (5,223,691)
CLASS B ........................................................... (4,903,732) (651,534) (2,710,458)
CLASS C ........................................................... (2,793,965) (423,145) (1,934,229)
CLASS D ........................................................... N/A N/A N/A
CLASS Z ........................................................... (136,462,061) (18,513,766) (81,830,081)
ADMINISTRATOR CLASS ............................................... N/A N/A N/A
INSTITUTIONAL CLASS ............................................... N/A N/A N/A
---------------- ---------------- -----------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ..................................... (152,692,489) (20,778,761) (91,698,459)
---------------- ---------------- -----------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A .................................. 10,177,518 7,284,857 18,351,436
REINVESTMENT OF DISTRIBUTIONS - CLASS A .............................. 8,327,213 1,172,783 5,133,631
COST OF SHARES REDEEMED - CLASS A .................................... (13,781,448) (21,160,301) (32,357,772)
---------------- ---------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A ............................................... 4,723,283 (12,702,661) (8,872,705)
---------------- ---------------- -----------------
PROCEEDS FROM SHARES SOLD - CLASS B .................................. 1,766,237 613,026 1,929,309
REINVESTMENT OF DISTRIBUTIONS - CLASS B .............................. 4,411,969 552,819 2,298,727
COST OF SHARES REDEEMED - CLASS B .................................... (4,731,290) (4,948,013) (5,546,942)
---------------- ---------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS B ............................................... 1,446,916 (3,782,168) (1,318,906)
---------------- ---------------- -----------------
PROCEEDS FROM SHARES SOLD - CLASS C .................................. 1,728,081 650,562 4,049,548
REINVESTMENT OF DISTRIBUTIONS - CLASS C .............................. 2,127,909 330,607 1,501,280
COST OF SHARES REDEEMED - CLASS C .................................... (3,745,285) (7,490,695) (13,428,469)
---------------- ---------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS C ............................................... 110,705 (6,509,526) (7,877,641)
---------------- ---------------- -----------------
PROCEEDS FROM SHARES SOLD - CLASS D .................................. N/A N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS D .............................. N/A N/A N/A
COST OF SHARES REDEEMED - CLASS D .................................... N/A N/A N/A
---------------- ---------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS D ............................................... N/A N/A N/A
---------------- ---------------- -----------------
PROCEEDS FROM SHARES SOLD - CLASS Z .................................. 61,407,060 76,412,602 114,300,846
REINVESTMENT OF DISTRIBUTIONS - CLASS Z .............................. 131,856,808 17,958,474 77,961,481
COST OF SHARES REDEEMED - CLASS Z .................................... (113,140,228) (275,291,312) (495,966,918)
---------------- ---------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS Z ............................................... 80,123,640 (180,920,236) (303,704,591)
---------------- ---------------- -----------------
PROCEEDS FROM SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ............. N/A N/A N/A
REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS (NOTE 1) ......... N/A N/A N/A
COST OF SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) ............... N/A N/A N/A
---------------- ---------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - ADMINISTRATOR CLASS ................................... N/A N/A N/A
---------------- ---------------- -----------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) ............. N/A N/A N/A
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS (NOTE 1) ......... N/A N/A N/A
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) ............... 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
---------------- ---------------- -----------------
MID CAP GROWTH FUND
--------------------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE FOR THE
APRIL 30, 2006 PERIOD ENDED YEAR ENDED
(UNAUDITED) OCTOBER 31, 2005 SEPTEMBER 30, 2005
- -----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ............................................. $ 168,028,126 $ 173,594,127 $ 100,935,469
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ..................................... (541,717) (140,245) (1,866,267)
NET REALIZED GAIN (LOSS) ON INVESTMENTS .......................... 19,876,944 (207,187) 19,917,012
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS ................................................... 12,996,347 (3,222,077) 11,647,346
---------------- --------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ........ 32,331,574 (3,569,509) 29,698,091
---------------- --------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A .......................................................... 0 0 0
CLASS B .......................................................... 0 0 0
CLASS C .......................................................... 0 0 0
CLASS D .......................................................... N/A N/A N/A
CLASS Z .......................................................... 0 0 0
ADMINISTRATOR CLASS .............................................. N/A N/A N/A
INSTITUTIONAL CLASS .............................................. N/A N/A N/A
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A .......................................................... (9,153,397) 0 (6,766,534)
CLASS B .......................................................... (702,784) 0 (516,365)
CLASS C .......................................................... (148,197) 0 (77,755)
CLASS D .......................................................... N/A N/A N/A
CLASS Z .......................................................... (4,305,235) 0 0
ADMINISTRATOR CLASS .............................................. N/A N/A N/A
INSTITUTIONAL CLASS .............................................. N/A N/A N/A
---------------- --------------- -----------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS .................................... (14,309,613) 0 (7,360,654)
---------------- --------------- -----------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A ................................. 8,132,015 950,630 23,680,456
REINVESTMENT OF DISTRIBUTIONS - CLASS A ............................. 8,832,003 0 6,512,508
COST OF SHARES REDEEMED - CLASS A ................................... (14,554,950) (2,068,948) (23,513,025)
---------------- --------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A .............................................. 2,409,068 (1,118,318) 6,679,939)
---------------- --------------- -----------------
PROCEEDS FROM SHARES SOLD - CLASS B ................................. 482,758 46,161 4,420,103
REINVESTMENT OF DISTRIBUTIONS - CLASS B ............................. 685,296 0 493,517
COST OF SHARES REDEEMED - CLASS B ................................... (1,435,866) (332,605) (3,720,718)
---------------- --------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS B .............................................. (267,812) (286,444) 1,192,902
---------------- --------------- -----------------
PROCEEDS FROM SHARES SOLD - CLASS C ................................. 348,642 83,759 690,227
REINVESTMENT OF DISTRIBUTIONS - CLASS C ............................. 130,195 0 75,368
COST OF SHARES REDEEMED - CLASS C ................................... (212,183) (58,620) (345,278)
---------------- --------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS C .............................................. 266,654 25,139 420,317
---------------- --------------- -----------------
PROCEEDS FROM SHARES SOLD - CLASS D ................................. N/A N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS D ............................. N/A N/A N/A
COST OF SHARES REDEEMED - CLASS D ................................... N/A N/A N/A
---------------- --------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS D .............................................. N/A N/A N/A
---------------- --------------- -----------------
PROCEEDS FROM SHARES SOLD - CLASS Z ................................. 7,367,793 259,768 49,638,017
REINVESTMENT OF DISTRIBUTIONS - CLASS Z ............................. 4,222,409 0 0
COST OF SHARES REDEEMED - CLASS Z ................................... (9,256,902) (876,637) (7,609,954)
---------------- --------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS Z .............................................. 2,333,300 (616,869) 42,028,063
---------------- --------------- -----------------
PROCEEDS FROM SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ............ N/A N/A N/A
REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS (NOTE 1) ........ N/A N/A N/A
COST OF SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) .............. N/A N/A N/A
---------------- --------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - ADMINISTRATOR CLASS .................................. N/A N/A N/A
---------------- --------------- -----------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) ............ N/A N/A N/A
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS (NOTE 1) ........ N/A N/A N/A
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) .............. 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
---------------- --------------- -----------------
69
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
C&B MID CAP VALUE FUND
-----------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
APRIL 30, 2006 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2005
- -------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS ................................................................... 52,828,693 29,139,257
---------------- ----------------
NET INCREASE (DECREASE) IN NET ASSETS ............................................. 102,982,239 91,566,275
---------------- ----------------
ENDING NET ASSETS ................................................................. $ 800,410,433 $ 697,428,194
---------------- ----------------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A .......................................................... 384,920 1,257,191
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS A ....................... 103,823 12,088
SHARES REDEEMED - CLASS A ...................................................... (212,205) (239,887)
---------------- ----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A ........................... 276,538 1,029,392
---------------- ----------------
SHARES SOLD - CLASS B .......................................................... 106,383 459,986
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS B ....................... 48,589 5,909
SHARES REDEEMED - CLASS B ...................................................... (58,607) (48,785)
---------------- ----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B ........................... 96,365 417,110
---------------- ----------------
SHARES SOLD - CLASS C .......................................................... 109,677 301,907
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS C ....................... 31,217 2,992
SHARES REDEEMED - CLASS C ...................................................... (39,679) (29,847)
---------------- ----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C ........................... 101,215 275,052
---------------- ----------------
SHARES SOLD - CLASS D .......................................................... 5,904,827 16,075,398
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS D ....................... 1,892,613 776,338
SHARES REDEEMED - CLASS D ...................................................... (6,108,467) (20,636,097)
---------------- ----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS D ........................... 1,688,973 (3,784,361)
---------------- ----------------
SHARES SOLD - CLASS Z .......................................................... N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS Z ....................... N/A N/A
SHARES REDEEMED - CLASS Z ...................................................... N/A N/A
---------------- ----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS Z ........................... N/A N/A
---------------- ----------------
SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ..................................... 1,661,148 3,604,235
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS (NOTE 1) .. 424,108 130,154
SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) ................................. (1,293,371) (2,332,219)
---------------- ----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADMINISTRATOR CLASS ............... 791,885 1,402,170
---------------- ----------------
SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) ..................................... 388,840 5,652,780
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS (NOTE 1) .. 242,381 28,022
SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) ................................. (1,070,801) (3,549,234)
---------------- ----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INSTITUTIONAL CLASS ............... (439,580) 2,131,568
---------------- ----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM CAPITAL SHARE
TRANSACTIONS ................................................................... 2,515,396 1,470,931
================ ================
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ...................... $ 1,480,976 $ 0
================ ================
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
70
STATEMENTS OF CHANGES IN NET ASSETS
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
COMMON STOCK FUND
-------------------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE FOR THE
APRIL 30, 2006 PERIOD ENDED YEAR ENDED
(UNAUDITED) OCTOBER 31, 2005 DECEMBER 31, 2004
- -----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS ......................................................... 86,404,544 (203,914,591) (321,773,843)
---------------- ---------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS ................................... 133,018,122 (173,659,765) (290,846,711)
---------------- ---------------- -----------------
ENDING NET ASSETS ....................................................... $ 1,259,489,268 $ 1,126,471,146 $ 1,300,130,911
---------------- ---------------- -----------------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A ................................................ 449,848 325,319 829,082
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS A ............. 386,952 53,406 236,355
SHARES REDEEMED - CLASS A ............................................ (607,431) (945,034) (1,468,160)
---------------- ---------------- -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A ................. 229,369 (566,309) (402,723)
---------------- ---------------- -----------------
SHARES SOLD - CLASS B ................................................ 83,346 28,224 89,606
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS B ............. 214,064 26,003 109,048
SHARES REDEEMED - CLASS B ............................................ (218,621) (228,347) (258,192)
---------------- ---------------- -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING- CLASS B .................. 78,789 (174,120) (59,538)
---------------- ---------------- -----------------
SHARES SOLD - CLASS C ................................................ 83,059 29,884 187,445
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS C ............. 103,297 15,550 71,218
SHARES REDEEMED - CLASS C ............................................ (173,643) (347,225) (625,270)
---------------- ---------------- -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C ................. 12,713 (301,791) (366,607)
---------------- ---------------- -----------------
SHARES SOLD - CLASS D ................................................ N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS D ............. N/A N/A N/A
SHARES REDEEMED - CLASS D ............................................ N/A N/A N/A
---------------- ---------------- -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS D ................. N/A N/A N/A
---------------- ---------------- -----------------
SHARES SOLD - CLASS Z ................................................ 2,674,437 3,356,497 5,128,434
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS Z ............. (4,902,966) 808,212 3,551,776
SHARES REDEEMED - CLASS Z ............................................ 6,040,163 (12,065,904) (22,238,478)
---------------- ---------------- -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS Z ................. 3,811,634 (7,901,195) (13,558,268)
---------------- ---------------- -----------------
SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ........................... N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR
CLASS (NOTE 1) .................................................... N/A N/A N/A
SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) ....................... N/A N/A N/A
---------------- ---------------- -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADMINISTRATOR CLASS ..... N/A N/A N/A
---------------- ---------------- -----------------
SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) ........................... N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL
CLASS (NOTE 1) .................................................... N/A N/A N/A
SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) ....................... N/A N/A N/A
---------------- ---------------- -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INSTITUTIONAL CLASS ..... N/A N/A N/A
---------------- ---------------- -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM CAPITAL
SHARE TRANSACTIONS .................................................. 4,132,505 (8,943,415) (14,387,136)
================ ================ =================
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ............ $ (1,685,182) $ (11,434) $ 0
================ ================ =================
MID CAP GROWTH FUND
--------------------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE FOR THE
APRIL 30, 2006 PERIOD ENDED YEAR ENDED
(UNAUDITED) OCTOBER 31, 2005 SEPTEMBER 30, 2005
- -----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS ........................................................ 4,741,210 (1,996,492) 50,321,221
---------------- ---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS .................................. 22,763,171 (5,566,001) 72,658,658
---------------- ---------------- ------------------
ENDING NET ASSETS ...................................................... $ 190,791,297 $ 168,028,126 $ 173,594,127
---------------- ---------------- ------------------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A ............................................... 1,228,101 150,026 3,918,426
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS A ............ 1,431,443 0 1,067,624
SHARES REDEEMED - CLASS A ........................................... (2,222,702) (327,349) (3,824,252)
---------------- ---------------- ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING- CLASS A ................. 436,842 (177,323) 1,161,798
---------------- ---------------- ------------------
SHARES SOLD - CLASS B ............................................... 76,670 7,649 749,392
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS B ............ 115,955 0 83,506
SHARES REDEEMED - CLASS B ........................................... (225,765) (54,787) (633,673)
---------------- ---------------- ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B ................ (33,140) (47,138) 199,225
---------------- ---------------- ------------------
SHARES SOLD - CLASS C ............................................... 54,810 13,580 127,763
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS C ............ 22,030 0 12,753
SHARES REDEEMED - CLASS C ........................................... (34,452) (9,410) (57,929)
---------------- ---------------- ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C ................ 42,388 4,170 82,587
---------------- ---------------- ------------------
SHARES SOLD - CLASS D ............................................... N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS D ............ N/A N/A N/A
SHARES REDEEMED - CLASS D ........................................... N/A N/A N/A
---------------- ---------------- ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS D ................ N/A N/A N/A
---------------- ---------------- ------------------
SHARES SOLD - CLASS Z ............................................... 1,108,885 41,305 9,239,553
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS Z ............ 685,456 0 0
SHARES REDEEMED - CLASS Z ........................................... (1,401,975) (138,816) (1,237,062)
---------------- ---------------- ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS Z ................ 392,366 (97,511) 8,002,491
---------------- ---------------- ------------------
SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) .......................... N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR
CLASS (NOTE 1) ................................................... N/A N/A N/A
SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) ...................... N/A N/A N/A
---------------- ---------------- ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADMINISTRATOR CLASS .... N/A N/A N/A
---------------- ---------------- ------------------
SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) .......................... N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL
CLASS (NOTE 1) ................................................... N/A N/A N/A
SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) ...................... N/A N/A N/A
---------------- ---------------- ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INSTITUTIONAL CLASS .... N/A N/A N/A
---------------- ---------------- ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM CAPITAL
SHARE TRANSACTIONS ................................................. 838,456 (317,802) 9,446,101
================ ================ ==================
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ........... $ (541,717) $ 0 $ 0
================ ================ ==================
71
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SMALL CAP GROWTH FUND
--------------------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE FOR THE
APRIL 30, 2006 PERIOD ENDED YEAR ENDED
(UNAUDITED) OCTOBER 31, 2005 SEPTEMBER 30, 2005
- -----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ................................................ $ 246,389,089 $ 256,024,620 $ 77,405,074
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ........................................ (1,574,179) (246,170) (1,961,558)
NET REALIZED GAIN (LOSS) ON INVESTMENTS ............................. 37,172,935 (666,650) 24,540,062
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS ...................................................... 26,907,788 (6,186,916) 17,093,631
---------------- ---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS .. 62,506,544 (7,099,736) 39,672,135
---------------- ---------------- ------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A .......................................................... 0 0 0
CLASS B .......................................................... 0 0 0
CLASS C .......................................................... 0 0 0
CLASS D .......................................................... N/A N/A N/A
CLASS Z .......................................................... 0 0 0
ADMINISTRATOR CLASS .............................................. 0 0 0
INSTITUTIONAL CLASS .............................................. 0 0 0
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A .......................................................... (7,322,846) 0 (734,681)
CLASS B .......................................................... (1,606,619) 0 (12,594)
CLASS C .......................................................... (458,429) 0 (3,390)
CLASS D .......................................................... N/A N/A N/A
CLASS Z .......................................................... (2,650,553) 0 0
ADMINISTRATOR CLASS .............................................. (4,004,271) 0 (752,142)
INSTITUTIONAL CLASS .............................................. (2,453,357) 0 0
---------------- ---------------- ------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS .................................... (18,496,075) 0 (1,502,807)
---------------- ---------------- ------------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A ................................. 5,885,929 251,730 44,920,057
REINVESTMENT OF DISTRIBUTIONS - CLASS A ............................. 6,623,831 0 625,705
COST OF SHARES REDEEMED - CLASS A ................................... (12,523,462) (1,589,338) (18,798,579)
---------------- ---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS A ................................ (13,702) (1,337,608) 26,747,183
---------------- ---------------- ------------------
PROCEEDS FROM SHARES SOLD - CLASS B ................................. 669,386 51,703 21,385,144
REINVESTMENT OF DISTRIBUTIONS - CLASS B ............................. 1,546,318 0 12,127
COST OF SHARES REDEEMED - CLASS B ................................... (3,236,925) (402,905) (2,778,304)
---------------- ---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS B ................................ (1,021,221) (351,202) 18,618,967
---------------- ---------------- ------------------
PROCEEDS FROM SHARES SOLD - CLASS C ................................. 428,933 9,378 8,566,231
REINVESTMENT OF DISTRIBUTIONS - CLASS C ............................. 346,940 0 3,266
COST OF SHARES REDEEMED - CLASS C ................................... (828,617) (95,421) (988,544)
---------------- ---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS C ................................ (52,744) (86,043) 7,580,953
---------------- ---------------- ------------------
PROCEEDS FROM SHARES SOLD - CLASS D ................................. N/A N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS D ............................. N/A N/A N/A
COST OF SHARES REDEEMED - CLASS D ................................... N/A N/A N/A
---------------- ---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS D ................................ N/A N/A N/A
---------------- ---------------- ------------------
PROCEEDS FROM SHARES SOLD - CLASS Z ................................. 2,276,653 160,345 53,515,971
REINVESTMENT OF DISTRIBUTIONS - CLASS Z ............................. 2,542,968 0 0
COST OF SHARES REDEEMED - CLASS Z ................................... (5,119,265) (1,304,448) (19,902,427)
---------------- ---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS Z ................................ (299,644) (1,144,103) 33,613,544
---------------- ---------------- ------------------
PROCEEDS FROM SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ............ 13,079,404 839,117 75,799,959
REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS (NOTE 1) ........ 3,717,705 0 750,684
COST OF SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) .............. (17,567,611) (1,308,993) (53,156,617)
---------------- ---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - ADMINISTRATOR CLASS .................... (770,502) (469,876) 23,394,026
---------------- ---------------- ------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
72
STATEMENTS OF CHANGES IN NET ASSETS
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND
--------------------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE FOR THE
APRIL 30, 2006 PERIOD ENDED YEAR ENDED
(UNAUDITED) OCTOBER 31, 2005 SEPTEMBER 30, 2005
- -----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ................................................. $ 704,713,980 $ 725,650,727 $ 534,599,946
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ......................................... (875,457) (194,391) (1,837,152)
NET REALIZED GAIN (LOSS) ON INVESTMENTS .............................. 66,190,248 7,047,988 67,095,443
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS .. 74,387,636 (26,880,238) 42,150,441
---------------- ---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS .... 139,702,427 (20,026,641) 107,408,732
---------------- ---------------- ------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ........................................................... N/A N/A N/A
CLASS B ........................................................... N/A N/A N/A
CLASS C ........................................................... N/A N/A N/A
CLASS D ........................................................... N/A N/A N/A
CLASS Z ........................................................... N/A N/A N/A
ADMINISTRATOR CLASS ............................................... 0 0 0
INSTITUTIONAL CLASS ............................................... N/A N/A N/A
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A ........................................................... N/A N/A N/A
CLASS B ........................................................... N/A N/A N/A
CLASS C ........................................................... N/A N/A N/A
CLASS D ........................................................... N/A N/A N/A
CLASS Z ........................................................... N/A N/A N/A
ADMINISTRATOR CLASS ............................................... (55,163,405) 0 (77,157,592)
INSTITUTIONAL CLASS ............................................... N/A N/A N/A
---------------- ---------------- ------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ............................... (55,163,405) 0 (77,157,592)
---------------- ---------------- ------------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A .................................. N/A N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS A .............................. N/A N/A N/A
COST OF SHARES REDEEMED - CLASS A .................................... N/A N/A N/A
---------------- ---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS A ................................. N/A N/A N/A
---------------- ---------------- ------------------
PROCEEDS FROM SHARES SOLD - CLASS B .................................. N/A N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS B .............................. N/A N/A N/A
COST OF SHARES REDEEMED - CLASS B .................................... N/A N/A N/A
---------------- ---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS B ................................. N/A N/A N/A
---------------- ---------------- ------------------
PROCEEDS FROM SHARES SOLD - CLASS C .................................. N/A N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS C .............................. N/A N/A N/A
COST OF SHARES REDEEMED - CLASS C .................................... N/A N/A N/A
---------------- ---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS C ................................. N/A N/A N/A
---------------- ---------------- ------------------
PROCEEDS FROM SHARES SOLD - CLASS D .................................. N/A N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS D .............................. N/A N/A N/A
COST OF SHARES REDEEMED - CLASS D .................................... N/A N/A N/A
---------------- ---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS D ................................. N/A N/A N/A
---------------- ---------------- ------------------
PROCEEDS FROM SHARES SOLD - CLASS Z .................................. N/A N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS Z .............................. N/A N/A N/A
COST OF SHARES REDEEMED - CLASS Z .................................... N/A N/A N/A
---------------- ---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS Z ................................. N/A N/A N/A
---------------- ---------------- ------------------
PROCEEDS FROM SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ............. 127,879,865 12,090,290 481,396,662
REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS (NOTE 1) ......... 53,050,887 0 73,211,175
COST OF SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) ............... (133,113,592) (13,000,396) (393,808,196)
---------------- ---------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - ADMINISTRATOR CLASS ..................... 47,817,160 (910,106) 160,799,641
---------------- ---------------- ------------------
SMALL CAP VALUE FUND
-------------------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE FOR THE
APRIL 30, 2006 PERIOD ENDED YEAR ENDED
(UNAUDITED) OCTOBER 31, 2005 DECEMBER 31, 2004
- ----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ................................................. $ 2,812,962,837 $ 2,251,537,570 $ 2,125,768,614
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ......................................... (6,210,019) (14,626,671) (19,810,930)
NET REALIZED GAIN (LOSS) ON INVESTMENTS .............................. 123,389,414 314,027,057 270,316,100
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS .. 366,674,824 (84,545,041) 120,358,183
---------------- ---------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS .... 483,854,219 214,855,345 370,863,353
---------------- ---------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ........................................................... 0 0 0
CLASS B ........................................................... 0 0 0
CLASS C ........................................................... 0 0 0
CLASS D ........................................................... N/A N/A N/A
CLASS Z ........................................................... 0 0 0
ADMINISTRATOR CLASS ............................................... N/A N/A N/A
INSTITUTIONAL CLASS ............................................... N/A N/A N/A
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A ........................................................... (60,735,054) (10,397,421) (65,935,104)
CLASS B ........................................................... (13,736,061) (2,427,253) (15,208,320)
CLASS C ........................................................... (14,918,850) (2,724,859) (17,605,354)
CLASS D ........................................................... N/A N/A N/A
CLASS Z ........................................................... (196,038,123) (25,204,337) (142,846,550)
ADMINISTRATOR CLASS ............................................... N/A N/A N/A
INSTITUTIONAL CLASS ............................................... N/A N/A N/A
---------------- ---------------- -----------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ............................... (285,428,088) (40,753,870) (241,595,328)
---------------- ---------------- -----------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A .................................. 174,235,698 65,496,065 111,965,665
REINVESTMENT OF DISTRIBUTIONS - CLASS A .............................. 58,758,745 10,087,045 63,761,770
COST OF SHARES REDEEMED - CLASS A .................................... (182,557,273) (104,918,462) (287,141,565)
---------------- ---------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS A ................................. 50,437,170 (29,335,352) (111,414,130)
---------------- ---------------- -----------------
PROCEEDS FROM SHARES SOLD - CLASS B .................................. 1,875,884 1,512,556 3,500,020
REINVESTMENT OF DISTRIBUTIONS - CLASS B .............................. 12,971,140 2,217,289 13,852,760
COST OF SHARES REDEEMED - CLASS B .................................... (12,864,142) (14,443,042) (13,748,747)
---------------- ---------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS B ................................. 1,982,882 (10,713,197) 3,604,033
---------------- ---------------- -----------------
PROCEEDS FROM SHARES SOLD - CLASS C .................................. 5,974,629 3,323,947 7,497,546
REINVESTMENT OF DISTRIBUTIONS - CLASS C .............................. 12,775,333 2,318,721 14,891,930
COST OF SHARES REDEEMED - CLASS C .................................... (15,006,169) (25,004,977) (32,663,862)
---------------- ---------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS C ................................. 3,743,793 (19,362,309) (10,274,386)
---------------- ----------------
PROCEEDS FROM SHARES SOLD - CLASS D .................................. N/A N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS D .............................. N/A N/A N/A
COST OF SHARES REDEEMED - CLASS D .................................... N/A N/A N/A
---------------- ---------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS D ................................. N/A N/A N/A
---------------- ---------------- -----------------
PROCEEDS FROM SHARES SOLD - CLASS Z .................................. 1,196,039,103 721,519,148 586,760,998
REINVESTMENT OF DISTRIBUTIONS - CLASS Z .............................. 193,440,028 24,892,242 140,802,162
COST OF SHARES REDEEMED - CLASS Z .................................... (919,850,608) (299,676,740) (612,977,746)
---------------- ---------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS Z ................................. 469,628,523 446,734,650 114,585,414
---------------- ---------------- -----------------
PROCEEDS FROM SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ............. N/A N/A N/A
REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS (NOTE 1) ......... N/A N/A N/A
COST OF SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) ............... N/A N/A N/A
---------------- ---------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - ADMINISTRATOR CLASS ..................... N/A N/A N/A
---------------- ---------------- -----------------
73
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SMALL CAP GROWTH FUND
--------------------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE FOR THE
APRIL 30, 2006 PERIOD ENDED YEAR ENDED
(UNAUDITED) OCTOBER 31, 2005 SEPTEMBER 30, 2005
- -----------------------------------------------------------------------------------------------------------------------------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) .............. 11,598,990 949,684 30,920,982
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS (NOTE 1) .......... 2,453,357 0 0
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) ................ (3,397,010) (96,657) (425,437)
---------------- ------------------ ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - INSTITUTIONAL CLASS ...................... 10,655,337 853,027 30,495,545
---------------- ------------------ ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - TOTAL .................................... 8,497,524 (2,535,805) 140,450,218
---------------- ------------------ ------------------
NET INCREASE (DECREASE) IN NET ASSETS ............................... 52,507,993 (9,635,541) 178,619,546
---------------- ------------------ ------------------
ENDING NET ASSETS ................................................... $ 298,897,072 $ 246,389,079 $ 256,024,620
================ ================== ==================
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A ................................................. 444,815 20,865 5,729,307
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS A .............. 541,163 0 53,987
SHARES REDEEMED - CLASS A ............................................. (967,914) (131,790) (1,619,638)
---------------- ------------------ ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A ............... 18,064 (110,925) 4,163,656
---------------- ------------------ ------------------
SHARES SOLD - CLASS B ................................................. 52,649 4,353 1,957,106
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS B .............. 128,966 0 1,058
SHARES REDEEMED - CLASS B ............................................. (253,999) (34,062) (242,875)
---------------- ------------------ ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B ............... (72,384) (29,709) 1,715,289
---------------- ------------------ ------------------
SHARES SOLD - CLASS C ................................................. 33,618 800 576,624
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS C .............. 28,912 0 285
SHARES REDEEMED - CLASS C ............................................. 66,208 (8,017) (87,202)
---------------- ------------------ ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C ............... 3,678 (7,217) 489,707
---------------- ------------------ ------------------
SHARES SOLD - CLASS D ................................................. N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS D .............. N/A N/A N/A
SHARES REDEEMED - CLASS D ............................................. N/A N/A N/A
---------------- ------------------ ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS D ............... N/A N/A N/A
---------------- ------------------ ------------------
SHARES SOLD - CLASS Z ................................................. 170,171 13,336 4,693,920
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS Z .............. 208,099 0 0
SHARES REDEEMED - CLASS Z ............................................. (391,655) (109,178) (1,698,437)
---------------- ------------------ ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS Z ............... (13,385) (95,842) 2,995,483
---------------- ------------------ ------------------
SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ............................ 979,756 69,085 5,780,911
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS -
ADMINISTRATOR CLASS (NOTE 1) ........................................ 302,252 0 64,547
SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) ........................ (1,329,399) (107,491) (4,514,019)
---------------- ------------------ ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING-
ADMINISTRATOR CLASS ................................................. (47,391) (38,406) 1,331,439
---------------- ------------------ ------------------
SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) ............................ 882,902 78,812 2,525,798
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS -
INSTITUTIONAL CLASS (NOTE 1) ........................................ 199,136 0 0
SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) ........................ (261,611) (7,942) (33,721)
---------------- ------------------ ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
INSTITUTIONAL CLASS ................................................. 820,427 70,870 2,492,077
---------------- ------------------ ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM
CAPITAL SHARE TRANSACTIONS ............................................ 701,653 (211,229) 13,187,651
================ ================== ==================
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ............ $ (1,574,179) $ 0 $ 0
================ ================== ==================
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
74
STATEMENTS OF CHANGES IN NET ASSETS
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND
--------------------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE FOR THE
APRIL 30, 2006 PERIOD ENDED YEAR ENDED
(UNAUDITED) OCTOBER 31, 2005 SEPTEMBER 30, 2005
- -----------------------------------------------------------------------------------------------------------------------------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) .............. N/A N/A N/A
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS (NOTE 1) .......... N/A N/A N/A
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) ................ 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 - TOTAL .................................... 47,817,160 (910,106) 160,799,641
---------------- ------------------ ------------------
NET INCREASE (DECREASE) IN NET ASSETS ............................... 132,356,182 (20,936,747) 191,050,781
---------------- ------------------ ------------------
ENDING NET ASSETS ................................................... $ 837,070,162 $ 704,713,980 $ 725,650,727
================ ================== ==================
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A ................................................. N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS A .............. N/A N/A N/A
SHARES REDEEMED - CLASS A ............................................. N/A N/A N/A
---------------- ------------------ ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A ............... N/A N/A N/A
---------------- ------------------ ------------------
SHARES SOLD - CLASS B ................................................. N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS B .............. N/A N/A N/A
SHARES REDEEMED - CLASS B ............................................. N/A N/A N/A
---------------- ------------------ ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B ............... N/A N/A N/A
---------------- ------------------ ------------------
SHARES SOLD - CLASS C ................................................. N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS C .............. N/A N/A N/A
SHARES REDEEMED - CLASS C ............................................. N/A N/A N/A
---------------- ------------------ ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C ............... N/A N/A N/A
---------------- ------------------ ------------------
SHARES SOLD - CLASS D ................................................. N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS D .............. N/A N/A N/A
SHARES REDEEMED - CLASS D ............................................. N/A N/A N/A
---------------- ------------------ ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS D ............... N/A N/A N/A
---------------- ------------------ ------------------
SHARES SOLD - CLASS Z ................................................. N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS Z .............. N/A N/A N/A
SHARES REDEEMED - CLASS Z ............................................. N/A N/A N/A
---------------- ------------------ ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS Z ............... N/A N/A N/A
---------------- ------------------ ------------------
SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ............................ 3,555,617 357,977 14,338,380
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS -
ADMINISTRATOR CLASS (NOTE 1) ........................................ 1,585,976 0 2,241,616
SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) ........................ (3,736,872) (385,580) (11,781,338)
---------------- ------------------ ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING-
ADMINISTRATOR CLASS ................................................. 1,404,721 (27,603) 4,798,658
---------------- ------------------ ------------------
SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) ............................ N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS -
INSTITUTIONAL CLASS (NOTE 1) ........................................ N/A N/A N/A
SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) ........................ N/A N/A N/A
---------------- ------------------ ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
INSTITUTIONAL CLASS ................................................. N/A N/A N/A
---------------- ------------------ ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM
CAPITAL SHARE TRANSACTIONS ............................................ 1,404,721 (27,603) 4,798,658
================ ================== ==================
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ............ (875,457) $ 0 $ 0
================ ================== ==================
SMALL CAP VALUE FUND
--------------------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE FOR THE
APRIL 30, 2006 PERIOD ENDED YEAR ENDED
(UNAUDITED) OCTOBER 31, 2005 DECEMBER 31, 2004
- -----------------------------------------------------------------------------------------------------------------------------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) .............. N/A N/A N/A
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS (NOTE 1) .......... N/A N/A N/A
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) ................ 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 - TOTAL .................................... 525,792,368 387,323,792 (3,499,069)
---------------- ------------------ ------------------
NET INCREASE (DECREASE) IN NET ASSETS ............................... 724,218,499 561,425,267 125,768,956
---------------- ------------------ ------------------
ENDING NET ASSETS ................................................... $ 3,537,181,336 $ 2,812,962,837 $ 2,251,537,570
================ ================== ==================
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A ................................................. 5,526,283 2,219,513 3,946,949
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS A .............. 1,939,873 346,237 2,293,078
SHARES REDEEMED - CLASS A ............................................. (5,791,104) (3,595,998) (10,327,642)
---------------- ------------------ ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A ............... 1,675,052 (1,030,248) (4,087,615)
---------------- ------------------ ------------------
SHARES SOLD - CLASS B ................................................. 63,813 53,919 127,051
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS B .............. 448,363 78,926 514,591
SHARES REDEEMED - CLASS B ............................................. (426,695) (509,915) (501,970)
---------------- ------------------ ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B ............... 85,481 (377,070) 139,672
---------------- ------------------ ------------------
SHARES SOLD - CLASS C ................................................. 203,715 115,719 273,175
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS C .............. 440,529 82,360 552,197
SHARES REDEEMED - CLASS C ............................................. (499,732) (889,071) (1,184,664)
---------------- ------------------ ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C ............... 144,512 (690,992) (359,292)
---------------- ------------------ ------------------
SHARES SOLD - CLASS D ................................................. N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS D .............. N/A N/A N/A
SHARES REDEEMED - CLASS D ............................................. N/A N/A N/A
---------------- ------------------ ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS D ............... N/A N/A N/A
---------------- ------------------ ------------------
SHARES SOLD - CLASS Z ................................................. 37,502,188 24,271,454 20,439,069
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS Z .............. 6,323,639 847,655 5,026,696
SHARES REDEEMED - CLASS Z ............................................. (28,876,826) (10,094,560) (21,628,099)
---------------- ------------------ ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS Z ............... 14,949,001 15,024,549 3,837,666
---------------- ------------------ ------------------
SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ............................ N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS -
ADMINISTRATOR CLASS (NOTE 1) ........................................ N/A N/A N/A
SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) ........................ N/A N/A N/A
---------------- ------------------ ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING-
ADMINISTRATOR CLASS ................................................. N/A N/A N/A
---------------- ------------------ ------------------
SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) ............................ N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS -
INSTITUTIONAL CLASS (NOTE 1) ........................................ N/A N/A N/A
SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) ........................ N/A N/A N/A
---------------- ------------------ ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
INSTITUTIONAL CLASS ................................................. N/A N/A N/A
---------------- ------------------ ------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM
CAPITAL SHARE TRANSACTIONS ............................................ 16,854,046 12,926,239 (469,569)
================ ================== ==================
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ............ $ (16,445,861) $ (10,235,842) $ 0
================ ================== ==================
75
WELLS FARGO ADVANTAGE SMALL AND MID CAP 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
- ----------------------------------------------------------------------------------------------------------------------------------
C&B MID CAP VALUE FUND
- ----------------------------------------------------------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... $ 20.76 0.02 3.10 0.00 (1.74)
NOVEMBER 1, 2004 TO OCTOBER 31, 2005 .................... $ 18.89 (0.09) 2.54 0.00 (0.58)
JULY 26, 2004(4) TO OCTOBER 31, 2004 .................... $ 18.52 (0.00) 0.37 0.00 0.00
CLASS B
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... $ 20.57 (0.04) 3.06 0.00 (1.74)
NOVEMBER 1, 2004 TO OCTOBER 31, 2005 .................... $ 18.86 (0.17) 2.46 0.00 (0.58)
JULY 26, 2004(4) TO OCTOBER 31, 2004 .................... $ 18.52 (0.02) 0.36 0.00 0.00
CLASS C
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... $ 20.57 (0.02) 3.04 0.00 (1.74)
NOVEMBER 1, 2004 TO OCTOBER 31, 2005 .................... $ 18.86 (0.17) 2.46 0.00 (0.58)
JULY 26, 2004(4) TO OCTOBER 31, 2004 .................... $ 18.52 (0.02) 0.36 0.00 0.00
CLASS D
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... $ 20.79 0.05 3.10 0.00 (1.74)
NOVEMBER 1, 2004 TO OCTOBER 31, 2005 .................... $ 18.89 (0.07) 2.55 0.00 (0.58)
NOVEMBER 1, 2003 TO OCTOBER 31, 2004 .................... $ 17.96 (0.01) 1.11 (0.00) (0.17)
NOVEMBER 1, 2002 TO OCTOBER 31, 2003 .................... $ 13.15 0.00 4.83 (0.02) 0.00
NOVEMBER 1, 2001 TO OCTOBER 31, 2002 .................... $ 14.19 (0.01) (0.19) (0.04) (0.80)
NOVEMBER 1, 2000 TO OCTOBER 31, 2001 .................... $ 12.78 0.08 2.12 (0.09) (0.70)
ADMINISTRATOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... $ 20.82 0.05 3.12 0.00(6) (1.74)
NOVEMBER 1, 2004 TO OCTOBER 31, 2005 .................... $ 18.90 (0.03) 2.53 0.00 (0.58)
JULY 26, 2004(4) TO OCTOBER 31, 2004 .................... $ 18.52 0.00 0.38 0.00 0.00
INSTITUTIONAL CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... $ 20.88 0.09 3.11 (0.04) (1.74)
NOVEMBER 1, 2004 TO OCTOBER 31, 2005 .................... $ 18.91 (0.02) 2.57 0.00 (0.58)
JULY 26, 2004(4) TO OCTOBER 31, 2004 .................... $ 18.52 0.02 0.37 0.00 0.00
COMMON STOCK FUND
- ----------------------------------------------------------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... $ 22.97 (0.03) 3.87 0.00 (3.18)
JANUARY 1, 2005 TO OCTOBER 31, 2005(11) ................. $ 22.40 (0.11) 1.06 0.00 (0.38)
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................... $ 21.98 (0.14)(8) 2.21 0.00 (1.65)
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................... $ 15.87 (0.10) 6.21 0.00 0.00
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................... $ 19.71 (0.08)(8) (3.76) 0.00 0.00
JANUARY 1, 2001 TO DECEMBER 31, 2001 .................... $ 20.15 (0.04) (0.36) 0.00 (0.04)
NOVEMBER 30, 2000(4)(5) TO DECEMBER 31, 2000 ............ $ 18.90 0.00(6) 1.28 (0.03) 0.00
CLASS B
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... $ 22.13 (0.08) 3.69 0.00 (3.18)
JANUARY 1, 2005 TO OCTOBER 31, 2005(11) ................. $ 21.74 (0.29) 1.06 0.00 (0.38)
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................... $ 21.53 (0.29)(8) 2.15 0.00 (1.65)
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................... $ 15.67 (0.24) 6.10 0.00 0.00
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................... $ 19.62 (0.22)(8) (3.73) 0.00 0.00
JANUARY 1, 2001 TO DECEMBER 31, 2001 .................... $ 20.16 (0.09) (0.41) 0.00 (0.04)
NOVEMBER 30, 2000(4)(5) TO DECEMBER 31, 2000 ............ $ 18.90 (0.01) 1.28 (0.01) 0.00
CLASS C
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... $ 22.13 (0.10) 3.71 0.00 (3.18)
JANUARY 1, 2005 TO OCTOBER 31, 2005(11) ................. $ 21.73 (0.47) 1.25 0.00 (0.38)
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................... $ 21.53 (0.30)(8) 2.15 0.00 (1.65)
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................... $ 15.68 (0.25) 6.10 0.00 0.00
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................... $ 19.62 (0.22)(8) (3.72) 0.00 0.00
JANUARY 1, 2001 TO DECEMBER 31, 2001 .................... $ 20.16 (0.09) (0.41) 0.00 (0.04)
NOVEMBER 30, 2000(4)(5) TO DECEMBER 31, 2000 ............ $ 18.90 (0.01) 1.28 (0.01) 0.00
CLASS Z
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... $ 23.25 (0.03) 3.93 0.00 (3.18)
JANUARY 1, 2005 TO OCTOBER 31, 2005(11) ................. $ 22.65 (0.07) 1.05 0.00 (0.38)
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................... $ 22.15 (0.08)(8) 2.23 0.00 (1.65)
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................... $ 15.97 (0.09) 6.27 0.00 0.00
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................... $ 19.78 (0.05)(8) (3.76) 0.00 0.00
JANUARY 1, 2001 TO DECEMBER 31, 2001 .................... $ 20.16 (0.02) (0.32) 0.00 (0.04)
JANUARY 1, 2000 TO DECEMBER 31, 2000 .................... $ 25.21 0.04 (0.59) (0.04) (4.46)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
76
FINANCIAL HIGHLIGHTS WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
DISTRIBUTIONS ENDING RATIO TO AVERAGE NET ASSETS (ANNUALIZED)(1)
IN EXCESS OF NET ASSET ------------------------------------------------
REALIZED VALUE PER NET INVESTMENT GROSS EXPENSES NET
GAINS SHARE INCOME (LOSS) EXPENSES WAIVED EXPENSES
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. 0.00 $ 22.14 0.26% 1.42% (0.03)% 1.39%
NOVEMBER 1, 2004 TO OCTOBER 31, 2005 ............ 0.00 $ 20.76 (0.40)% 1.38% 0.00% 1.38%
JULY 26, 2004(4) TO OCTOBER 31, 2004 ............ 0.00 $ 18.89 (0.18)% 1.41% (0.01)% 1.40%
CLASS B
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. 0.00 $ 21.85 (0.49)% 2.17% (0.03)% 2.14%
NOVEMBER 1, 2004 TO OCTOBER 31, 2005 ............ 0.00 $ 20.57 (1.15)% 2.13% 0.00% 2.13%
JULY 26, 2004(4) TO OCTOBER 31, 2004 ............ 0.00 $ 18.86 (0.95)% 2.16% (0.01)% 2.15%
CLASS C
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. 0.00 $ 21.85 (0.50)% 2.17% (0.03)% 2.14%
NOVEMBER 1, 2004 TO OCTOBER 31, 2005 ............ 0.00 $ 20.57 (1.15)% 2.13% 0.00% 2.13%
JULY 26, 2004(4) TO OCTOBER 31, 2004 ............ 0.00 $ 18.86 (0.98)% 2.16% (0.01)% 2.15%
CLASS D
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. 0.00 $ 22.20 0.43% 1.42% (0.17)% 1.25%
NOVEMBER 1, 2004 TO OCTOBER 31, 2005 ............ 0.00 $ 20.79 (0.27)% 1.37% (0.12)% 1.25%
NOVEMBER 1, 2003 TO OCTOBER 31, 2004 ............ 0.00 $ 18.89 (0.08)% 1.19% (0.04)% 1.15%
NOVEMBER 1, 2002 TO OCTOBER 31, 2003 ............ 0.00 $ 17.96 0.01% 1.27% 0.00% 1.27%
NOVEMBER 1, 2001 TO OCTOBER 31, 2002 ............ 0.00 $ 13.15 (0.07)% 1.54% (0.17)% 1.37%
NOVEMBER 1, 2000 TO OCTOBER 31, 2001 ............ 0.00 $ 14.19 0.68% 1.00% 0.00% 1.00%
ADMINISTRATOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. 0.00 $ 22.25 0.51% 1.24% (0.09)% 1.15%
NOVEMBER 1, 2004 TO OCTOBER 31, 2005 ............ 0.00 $ 20.82 (0.12)% 1.13% (0.03)% 1.10%
JULY 26, 2004(4) TO OCTOBER 31, 2004 ............ 0.00 $ 18.90 0.03% 1.17% (0.02)% 1.15%
INSTITUTIONAL CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. 0.00 $ 22.30 0.85% 0.97% (0.07)% 0.90%
NOVEMBER 1, 2004 TO OCTOBER 31, 2005 ............ 0.00 $ 20.88 0.07% 0.94% (0.04)% 0.90%
JULY 26, 2004(4) TO OCTOBER 31, 2004 ............ 0.00 $ 18.91 0.40% 0.96% (0.06)% 0.90%
COMMON STOCK FUND
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. 0.00 $ 23.63 (0.26)% 1.34% (0.03)% 1.31%
JANUARY 1, 2005 TO OCTOBER 31, 2005(11) ......... 0.00 $ 22.97 (0.48)% 1.44% (0.03)% 1.41%
JANUARY 1, 2004 TO DECEMBER 31, 2004 ............ 0.00 $ 22.40 (0.62)% 1.58% (0.04)% 1.54%
JANUARY 1, 2003 TO DECEMBER 31, 2003 ............ 0.00 $ 21.98 (0.62)% 1.55% (0.01)% 1.54%
JANUARY 1, 2002 TO DECEMBER 31, 2002 ............ 0.00 $ 15.87 (0.50)% 1.55% 0.00% 1.55%
JANUARY 1, 2001 TO DECEMBER 31, 2001 ............ 0.00 $ 19.71 (0.51)% 1.65% (0.01)% 1.64%
NOVEMBER 30, 2000(4)(5) TO DECEMBER 31, 2000 .... 0.00 $ 20.15 (0.22)% 1.57% 0.00% 1.57%
CLASS B
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. 0.00 $ 22.56 (1.01)% 2.09% (0.03)% 2.06%
JANUARY 1, 2005 TO OCTOBER 31, 2005(11) ......... 0.00 $ 22.13 (1.23)% 2.20% (0.04)% 2.16%
JANUARY 1, 2004 TO DECEMBER 31, 2004 ............ 0.00 $ 21.74 (1.36)% 2.32% (0.04)% 2.28%
JANUARY 1, 2003 TO DECEMBER 31, 2003 ............ 0.00 $ 21.53 (1.41)% 2.35% (0.01)% 2.34%
JANUARY 1, 2002 TO DECEMBER 31, 2002 ............ 0.00 $ 15.67 (1.31)% 2.36% 0.00% 2.36%
JANUARY 1, 2001 TO DECEMBER 31, 2001 ............ 0.00 $ 19.62 (1.12)% 2.55% (0.29)% 2.26%
NOVEMBER 30, 2000(4)(5) TO DECEMBER 31, 2000 .... 0.00 $ 20.16 (0.61)% 2.00% (0.01)% 1.99%
CLASS C
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. 0.00 $ 22.56 (1.01)% 2.08% (0.02)% 2.06%
JANUARY 1, 2005 TO OCTOBER 31, 2005(11) ......... 0.00 $ 22.13 (1.25)% 2.21% (0.04)% 2.17%
JANUARY 1, 2004 TO DECEMBER 31, 2004 ............ 0.00 $ 21.73 (1.38)% 2.35% (0.04)% 2.31%
JANUARY 1, 2003 TO DECEMBER 31, 2003 ............ 0.00 $ 21.53 (1.41)% 2.35% (0.01)% 2.34%
JANUARY 1, 2002 TO DECEMBER 31, 2002 ............ 0.00 $ 15.68 (1.31)% 2.37% (0.01)% 2.36%
JANUARY 1, 2001 TO DECEMBER 31, 2001 ............ 0.00 $ 19.62 (1.09)% 2.39% (0.16)% 2.23%
NOVEMBER 30, 2000(4)(5) TO DECEMBER 31, 2000 .... 0.00 $ 20.16 (0.62)% 2.00% 0.00% 2.00%
CLASS Z
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. 0.00 $ 23.97 (0.24)% 1.51% (0.22)% 1.29%
JANUARY 1, 2005 TO OCTOBER 31, 2005(11) ......... 0.00 $ 23.25 (0.38)% 1.47% (0.16)% 1.31%
JANUARY 1, 2004 TO DECEMBER 31, 2004 ............ 0.00 $ 22.65 (0.38)% 1.34% (0.04)% 1.30%
JANUARY 1, 2003 TO DECEMBER 31, 2003 ............ 0.00 $ 22.15 (0.42)% 1.36% (0.01)% 1.35%
JANUARY 1, 2002 TO DECEMBER 31, 2002 ............ 0.00 $ 15.97 (0.28)% 1.34% (0.01)% 1.33%
JANUARY 1, 2001 TO DECEMBER 31, 2001 ............ 0.00 $ 19.78 (0.10)% 1.29% 0.00% 1.29%
JANUARY 1, 2000 TO DECEMBER 31, 2000 ............ 0.00 $ 20.16 0.22% 1.18% 0.00% 1.18%
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE(3) (000'S OMITTED)
- ---------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... 15.81% 15% $ 34,708
NOVEMBER 1, 2004 TO OCTOBER 31, 2005 .................... 13.13% 30% $ 26,795
JULY 26, 2004(4) TO OCTOBER 31, 2004 .................... 2.00% 31% $ 4,938
CLASS B
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... 15.45% 15% $ 14,244
NOVEMBER 1, 2004 TO OCTOBER 31, 2005 .................... 12.28% 30% $ 11,429
JULY 26, 2004(4) TO OCTOBER 31, 2004 .................... 1.84% 31% $ 2,613
CLASS C
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... 15.45% 15% $ 9,474
NOVEMBER 1, 2004 TO OCTOBER 31, 2005 .................... 12.28% 30% $ 6,838
JULY 26, 2004(4) TO OCTOBER 31, 2004 .................... 1.84% 31% $ 1,081
CLASS D
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... 15.94% 15% $ 539,346
NOVEMBER 1, 2004 TO OCTOBER 31, 2005 .................... 13.29% 30% $ 469,971
NOVEMBER 1, 2003 TO OCTOBER 31, 2004 .................... 6.18% 31% $ 498,623
NOVEMBER 1, 2002 TO OCTOBER 31, 2003 .................... 36.76% 18% $ 301,513
NOVEMBER 1, 2001 TO OCTOBER 31, 2002 .................... (2.09)% 30% $ 81,390
NOVEMBER 1, 2000 TO OCTOBER 31, 2001 .................... 18.14% 44% $ 5,934
ADMINISTRATOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... 16.03% 15% $ 144,414
NOVEMBER 1, 2004 TO OCTOBER 31, 2005 .................... 13.39% 30% $ 118,690
JULY 26, 2004(4) TO OCTOBER 31, 2004 .................... 2.05% 31% $ 81,232
INSTITUTIONAL CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... 16.11% 15% $ 58,224
NOVEMBER 1, 2004 TO OCTOBER 31, 2005 .................... 13.71% 30% $ 63,705
JULY 26, 2004(4) TO OCTOBER 31, 2004 .................... 2.11% 31% $ 17,376
COMMON STOCK FUND
- ---------------------------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... 18.06% 24% $ 69,695
JANUARY 1, 2005 TO OCTOBER 31, 2005(11) ................. 4.34% 33% $ 62,462
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................... 9.67% 42% $ 73,612
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................... 38.50% 42% $ 81,068
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................... (19.48)% 65% $ 46,402
JANUARY 1, 2001 TO DECEMBER 31, 2001 .................... (1.99)% 89% $ 27,617
NOVEMBER 30, 2000(4)(5) TO DECEMBER 31, 2000 ............ 6.78% 95% $ 251
CLASS B
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... 17.61% 24% $ 37,198
JANUARY 1, 2005 TO OCTOBER 31, 2005(11) ................. 3.63% 33% $ 34,744
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................... 8.89% 42% $ 37,908
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................... 37.40% 42% $ 38,830
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................... (20.13)% 65% $ 24,208
JANUARY 1, 2001 TO DECEMBER 31, 2001 .................... (2.48)% 89% $ 15,635
NOVEMBER 30, 2000(4)(5) TO DECEMBER 31, 2000 ............ 6.76% 95% $ 159
CLASS C
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... 17.67% 24% $ 20,854
JANUARY 1, 2005 TO OCTOBER 31, 2005(11) ................. 3.68% 33% $ 20,177
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................... 8.84% 42% $ 26,375
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................... 37.31% 42% $ 34,025
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................... (20.08)% 65% $ 23,137
JANUARY 1, 2001 TO DECEMBER 31, 2001 .................... (2.48)% 89% $ 14,603
NOVEMBER 30, 2000(4)(5) TO DECEMBER 31, 2000 ............ 6.76% 95% $ 120
CLASS Z
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... 18.10% 24% $ 1,131,742
JANUARY 1, 2005 TO OCTOBER 31, 2005(11) ................. 4.42% 33% $ 1,009,088
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................... 9.96% 42% $ 1,162,236
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................... 38.70% 42% $ 1,437,055
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................... (19.26)% 65% $ 1,362,540
JANUARY 1, 2001 TO DECEMBER 31, 2001 .................... (1.70)% 89% $ 1,702,628
JANUARY 1, 2000 TO DECEMBER 31, 2000 .................... (1.20)% 95% $ 1,719,018
77
WELLS FARGO ADVANTAGE SMALL AND MID CAP 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
- ----------------------------------------------------------------------------------------------------------------------------------
MID CAP GROWTH FUND
- ----------------------------------------------------------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... $ 6.37 (0.02) 1.22 0.00 (0.55)
OCTOBER 1, 2005 TO OCTOBER 31, 2005(7) .................. $ 6.50 0.00(8) (0.13) 0.00 0.00
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ................... $ 5.84 (0.07)(8) 1.16 0.00 (0.43)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ................... $ 5.09 0.02 0.73 0.00 0.00
JULY 1, 2003 TO SEPTEMBER 30, 2003(10) .................. $ 4.77 (0.05) 0.37 0.00 0.00
JULY 1, 2002 TO JUNE 30, 2003 ........................... $ 4.82 (0.02) (0.03) 0.00 0.00
JULY 1, 2001 TO JUNE 30, 2002 ........................... $ 7.27 (0.05) (1.78) 0.00 (0.62)
JULY 1, 2000 TO JUNE 30, 2001(9) ........................ $ 12.36 (0.09) (0.80) 0.00 (4.20)
CLASS B
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... $ 6.13 (0.04) 1.16 0.00 (0.55)
OCTOBER 1, 2005 TO OCTOBER 31, 2005(7) .................. $ 6.26 (0.01)(8) (0.12) 0.00 0.00
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ................... $ 5.68 (0.12)(8) 1.13 0.00 (0.43)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ................... $ 4.99 0.06 0.63 0.00 0.00
JULY 1, 2003 TO SEPTEMBER 30, 2003(10) .................. $ 4.68 (0.06) 0.37 0.00 0.00
JUNE 9, 2003(4) TO JUNE 30, 2003 ........................ $ 4.67 0.01 0.00 0.00 0.00
CLASS C
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... $ 6.13 (0.03) 1.15 0.00 (0.55)
OCTOBER 1, 2005 TO OCTOBER 31, 2005(7) .................. $ 6.26 (0.01)(8) (0.12) 0.00 0.00
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ................... $ 5.68 (0.12)(8) 1.13 0.00 (0.43)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ................... $ 4.98 0.07 0.63 0.00 0.00
JULY 1, 2003 TO SEPTEMBER 30, 2003(10) .................. $ 4.68 (0.06) 0.36 0.00 0.00
JUNE 9, 2003(4) TO JUNE 30, 2003 ........................ $ 4.67 0.01 0.00 0.00 0.00
CLASS Z
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... $ 6.37 (0.03) 1.21 0.00 (0.55)
OCTOBER 1, 2005 TO OCTOBER 31, 2005(7) .................. $ 6.50 (0.01)(8) (0.12) 0.00 0.00
APRIL 11, 2005(4) TO SEPTEMBER 30, 2005 ................. $ 5.95 (0.05)(8) 0.60 0.00 0.00
SMALL CAP GROWTH FUND
- ----------------------------------------------------------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... $ 12.19 (0.08) 3.10 0.00 (0.93)
OCTOBER 1, 2005 TO OCTOBER 31, 2005(7) .................. $ 12.53 (0.02) (0.32) 0.00 0.00
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ................... $ 10.67 (0.13)(8) 2.18 0.00 (0.19)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ................... $ 9.44 (0.23) 1.46 0.00 0.00
JULY 1, 2003 TO SEPTEMBER 30, 2003(10) .................. $ 8.93 (0.02) 0.53 0.00 0.00
JULY 1, 2002 TO JUNE 30, 2003 ........................... $ 8.61 (0.07) 0.39 0.00 0.00
JULY 1, 2001 TO JUNE 30, 2002 ........................... $ 11.85 (0.07) (3.08) 0.00 (0.09)
JULY 1, 2000 TO JUNE 30, 2001 ........................... $ 22.20 (0.13) (4.43) 0.00 (5.79)
CLASS B
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... $ 11.97 (0.13) 3.04 0.00 (0.93)
OCTOBER 1, 2005 TO OCTOBER 31, 2005(7) .................. $ 12.31 (0.02) (0.32) 0.00 0.00
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ................... $ 10.57 (0.22)(8) 2.15 0.00 (0.19)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ................... $ 9.41 (0.25) 1.41 0.00 0.00
JULY 1, 2003 TO SEPTEMBER 30, 2003(10) .................. $ 8.93 (0.04) 0.52 0.00 0.00
JUNE 9, 2003(4) TO JUNE 30, 2003 ........................ $ 8.88 (0.01) 0.06 0.00 0.00
CLASS C
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... $ 11.98 (0.12) 3.04 0.00 (0.93)
OCTOBER 1, 2005 TO OCTOBER 31, 2005(7) .................. $ 12.33 (0.02) (0.33) 0.00 0.00
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ................... $ 10.58 (0.22)(8) 2.16 0.00 (0.19)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ................... $ 9.42 (0.22) 1.38 0.00 0.00
JULY 1, 2003 TO SEPTEMBER 30, 2003(10) .................. $ 8.93 (0.02) 0.51 0.00 0.00
JUNE 9, 2003(4) TO JUNE 30, 2003 ........................ $ 8.88 (0.01) 0.06 0.00 0.00
CLASS Z
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... $ 12.18 (0.09) 3.10 0.00 (0.93)
OCTOBER 1, 2005 TO OCTOBER 31, 2005(7) .................. $ 12.52 (0.01) (0.33) 0.00 0.00
APRIL 11, 2005(4) TO SEPTEMBER 30, 2005 ................. $ 11.06 (0.07)(8) 1.53 0.00 0.00
ADMINISTRATOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... $ 12.24 (0.07) 3.13 0.00 (0.93)
OCTOBER 1, 2005 TO OCTOBER 31, 2005(7) .................. $ 12.59 (0.01) (0.34) 0.00 0.00
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ................... $ 10.70 (0.11)(8) 2.19 0.00 (0.19)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ................... $ 9.44 (0.21) 1.47 0.00 0.00
JULY 1, 2003 TO SEPTEMBER 30, 2003(10) .................. $ 8.94 (0.02) 0.52 0.00 0.00
JUNE 9, 2003(4) TO JUNE 30, 2003 ........................ $ 8.88 0.00 0.06 0.00 0.00
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
78
FINANCIAL HIGHLIGHTS WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
DISTRIBUTIONS ENDING RATIO TO AVERAGE NET ASSETS (ANNUALIZED)(1)
IN EXCESS OF NET ASSET ------------------------------------------------
REALIZED VALUE PER NET INVESTMENT GROSS EXPENSES NET
GAINS SHARE INCOME (LOSS) EXPENSES WAIVED EXPENSES
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. 0.00 $ 7.02 (0.51)% 1.50% (0.10)% 1.40%
OCTOBER 1, 2005 TO OCTOBER 31, 2005(7) .......... 0.00 $ 6.37 (0.96)% 1.41% (0.01)% 1.40%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... 0.00 $ 6.50 (1.19)% 1.42% (0.01)% 1.41%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ........... 0.00 $ 5.84 (0.44)% 1.50% (0.07)% 1.43%
JULY 1, 2003 TO SEPTEMBER 30, 2003(10) .......... 0.00 $ 5.09 (1.03)% 1.42% 0.00% 1.42%
JULY 1, 2002 TO JUNE 30, 2003 ................... 0.00 $ 4.77 (0.65)% 1.86% (0.37)% 1.49%
JULY 1, 2001 TO JUNE 30, 2002 ................... 0.00 $ 4.82 (0.80)% 3.10% (1.60)% 1.50%
JULY 1, 2000 TO JUNE 30, 2001(9) ................ 0.00 $ 7.27 (1.13)% 2.32% (0.81)% 1.51%
CLASS B
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. 0.00 $ 6.70 (1.26)% 2.25% (0.10)% 2.15%
OCTOBER 1, 2005 TO OCTOBER 31, 2005(7) .......... 0.00 $ 6.13 (1.71)% 2.16% (0.01)% 2.15%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... 0.00 $ 6.26 (2.00)% 2.17% (0.01)% 2.16%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ........... 0.00 $ 5.68 (0.64)% 2.26% (0.08)% 2.18%
JULY 1, 2003 TO SEPTEMBER 30, 2003(10) .......... 0.00 $ 4.99 (1.78)% 2.17% 0.00% 2.17%
JUNE 9, 2003(4) TO JUNE 30, 2003 ................ 0.00 $ 4.68 3.82% 2.22% (0.08)% 2.14%
CLASS C
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. 0.00 $ 6.70 (1.27)% 2.26% (0.11)% 2.15%
OCTOBER 1, 2005 TO OCTOBER 31, 2005(7) .......... 0.00 $ 6.13 (1.71)% 2.16% (0.01)% 2.15%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... 0.00 $ 6.26 (2.00)% 2.17% (0.01)% 2.16%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ........... 0.00 $ 5.68 (0.70)% 2.26% (0.08)% 2.18%
JULY 1, 2003 TO SEPTEMBER 30, 2003(10) .......... 0.00 $ 4.98 (1.78)% 2.17% 0.00% 2.17%
JUNE 9, 2003(4) TO JUNE 30, 2003 ................ 0.00 $ 4.68 4.05% 2.22% (0.10)% 2.12%
CLASS Z
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. 0.00 $ 7.00 (0.69)% 1.67% (0.10)% 1.57%
OCTOBER 1, 2005 TO OCTOBER 31, 2005(7) .......... 0.00 $ 6.37 (1.13)% 1.58% (0.01)% 1.57%
APRIL 11, 2005(4) TO SEPTEMBER 30, 2005 ......... 0.00 $ 6.50 (1.69)% 1.56% (0.01)% 1.55%
SMALL CAP GROWTH FUND
- ----------------------------------------------------------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. 0.00 $ 14.28 (1.19)% 1.64% (0.24)% 1.40%
OCTOBER 1, 2005 TO OCTOBER 31, 2005(7) .......... 0.00 $ 12.19 (1.27)% 1.56% (0.16)% 1.40%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... 0.00 $ 12.53 (1.14)% 1.58% (0.18)% 1.40%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ........... 0.00 $ 10.67 (1.08)% 1.69% (0.29)% 1.40%
JULY 1, 2003 TO SEPTEMBER 30, 2003(10) .......... 0.00 $ 9.44 (1.13)% 1.69% (0.29)% 1.40%
JULY 1, 2002 TO JUNE 30, 2003 ................... 0.00 $ 8.93 (1.06)% 1.53% (0.13)% 1.40%
JULY 1, 2001 TO JUNE 30, 2002 ................... 0.00 $ 8.61 (0.68)% 1.51% (0.11)% 1.40%
JULY 1, 2000 TO JUNE 30, 2001 ................... 0.00 $ 11.85 (0.85)% 1.36% 0.00% 1.36%
CLASS B
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. 0.00 $ 13.95 (1.94)% 2.38% (0.23)% 2.15%
OCTOBER 1, 2005 TO OCTOBER 31, 2005(7) .......... 0.00 $ 11.97 (2.02)% 2.31% (0.16)% 2.15%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... 0.00 $ 12.31 (1.90)% 2.31% (0.16)% 2.15%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ........... 0.00 $ 10.57 (1.86)% 2.48% (0.33)% 2.15%
JULY 1, 2003 TO SEPTEMBER 30, 2003(10) .......... 0.00 $ 9.41 (1.88)% 2.43% (0.28)% 2.15%
JUNE 9, 2003(4) TO JUNE 30, 2003 ................ 0.00 $ 8.93 (1.06)% 2.28% (0.13)% 2.15%
CLASS C
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. 0.00 $ 13.97 (1.94)% 2.39% (0.24)% 2.15%
OCTOBER 1, 2005 TO OCTOBER 31, 2005(7) .......... 0.00 $ 11.98 (2.02)% 2.31% (0.16)% 2.15%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... 0.00 $ 12.33 (1.90)% 2.31% (0.16)% 2.15%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ........... 0.00 $ 10.58 (1.86)% 2.48% (0.33)% 2.15%
JULY 1, 2003 TO SEPTEMBER 30, 2003(10) .......... 0.00 $ 9.42 (1.91)% 2.47% (0.32)% 2.15%
JUNE 9, 2003(4) TO JUNE 30, 2003 ................ 0.00 $ 8.93 (1.06)% 2.28% (0.13)% 2.15%
CLASS Z
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. 0.00 $ 14.26 (1.36)% 1.81% (0.24)% 1.57%
OCTOBER 1, 2005 TO OCTOBER 31, 2005(7) .......... 0.00 $ 12.18 (1.44)% 1.73% (0.16)% 1.57%
APRIL 11, 2005(4) TO SEPTEMBER 30, 2005 ......... 0.00 $ 12.52 (1.33)% 1.72% (0.15)% 1.57%
ADMINISTRATOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. 0.00 $ 14.37 (0.99)% 1.46% (0.26)% 1.20%
OCTOBER 1, 2005 TO OCTOBER 31, 2005(7) .......... 0.00 $ 12.24 (1.07)% 1.38% (0.18)% 1.20%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... 0.00 $ 12.59 (0.94)% 1.37% (0.17)% 1.20%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ........... 0.00 $ 10.70 (1.20)% 1.54% (0.34)% 1.20%
JULY 1, 2003 TO SEPTEMBER 30, 2003(10) .......... 0.00 $ 9.44 (0.99)% 1.46% (0.26)% 1.20%
JUNE 9, 2003(4) TO JUNE 30, 2003 ................ 0.00 $ 8.94 (1.06)% 1.28% (0.08)% 1.20%
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE(3) (000'S OMITTED)
- ---------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... 20.02% 67% $ 121,678
OCTOBER 1, 2005 TO OCTOBER 31, 2005(7) .................. (2.00)% 13% $ 107,706
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ................... 19.17% 143% $ 111,103
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ................... 14.73% 180% $ 93,024
JULY 1, 2003 TO SEPTEMBER 30, 2003(10) .................. 6.71% 55% $ 87,980
JULY 1, 2002 TO JUNE 30, 2003 ........................... (1.04)% 142% $ 85,320
JULY 1, 2001 TO JUNE 30, 2002 ........................... (26.49)% 143% $ 98,526
JULY 1, 2000 TO JUNE 30, 2001(9) ........................ (11.76)% 68% $ 164,497
CLASS B
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... 19.47% 67% $ 8,917
OCTOBER 1, 2005 TO OCTOBER 31, 2005(7) .................. (2.08)% 13% $ 8,355
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ................... 18.25% 143% $ 8,829
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ................... 13.83% 180% $ 6,877
JULY 1, 2003 TO SEPTEMBER 30, 2003(10) .................. 6.62% 55% $ 5,216
JUNE 9, 2003(4) TO JUNE 30, 2003 ........................ 0.21% 142% $ 4,599
CLASS C
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... 19.47% 67% $ 2,084
OCTOBER 1, 2005 TO OCTOBER 31, 2005(7) .................. (2.08)% 13% $ 1,648
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ................... 18.25% 143% $ 1,657
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ................... 14.06% 180% $ 1,034
JULY 1, 2003 TO SEPTEMBER 30, 2003(10) .................. 6.41% 55% $ 607
JUNE 9, 2003(4) TO JUNE 30, 2003 ........................ 0.21% 142% $ 493
CLASS Z
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... 19.70% 67% $ 58,112
OCTOBER 1, 2005 TO OCTOBER 31, 2005(7) .................. (2.00)% 13% $ 50,319
APRIL 11, 2005(4) TO SEPTEMBER 30, 2005 ................. 9.24% 143% $ 52,005
SMALL CAP GROWTH FUND
- ---------------------------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... 26.03% 75% $ 115,964
OCTOBER 1, 2005 TO OCTOBER 31, 2005(7) .................. (2.71)% 10% $ 98,728
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ................... 19.31% 149% $ 102,926
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ................... 13.03% 171% $ 43,192
JULY 1, 2003 TO SEPTEMBER 30, 2003(10) .................. 5.71% 47% $ 83,152
JULY 1, 2002 TO JUNE 30, 2003 ........................... 3.72% 169% $ 52,891
JULY 1, 2001 TO JUNE 30, 2002 ........................... (26.68)% 152% $ 46,707
JULY 1, 2000 TO JUNE 30, 2001 ........................... (21.71)% 117% $ 74,297
CLASS B
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... 25.56% 75% $ 23,433
OCTOBER 1, 2005 TO OCTOBER 31, 2005(7) .................. (2.76)% 10% $ 20,966
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ................... 18.46% 149% $ 21,940
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ................... 12.22% 171% $ 702
JULY 1, 2003 TO SEPTEMBER 30, 2003(10) .................. 5.38% 47% $ 114
JUNE 9, 2003(4) TO JUNE 30, 2003 ........................ 0.56% 169% $ 30
CLASS C
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... 25.63% 75% $ 6,953
OCTOBER 1, 2005 TO OCTOBER 31, 2005(7) .................. (2.84)% 10% $ 6,008
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ................... 18.42% 149% $ 6,271
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ................... 12.31% 171% $ 201
JULY 1, 2003 TO SEPTEMBER 30, 2003(10) .................. 5.49% 47% $ 82
JUNE 9, 2003(4) TO JUNE 30, 2003 ........................ 0.56% 169% $ 11
CLASS Z
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... 25.97% 75% $ 41,144
OCTOBER 1, 2005 TO OCTOBER 31, 2005(7) .................. (2.72)% 10% $ 35,304
APRIL 11, 2005(4) TO SEPTEMBER 30, 2005 ................. 13.20% 149% $ 37,511
ADMINISTRATOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... 26.26% 75% $ 62,634
OCTOBER 1, 2005 TO OCTOBER 31, 2005(7) .................. (2.78)% 10% $ 53,953
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ................... 19.54% 149% $ 55,961
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ................... 13.35% 171% $ 33,309
JULY 1, 2003 TO SEPTEMBER 30, 2003(10) .................. 5.59% 47% $ 335
JUNE 9, 2003(4) TO JUNE 30, 2003 ........................ 0.67% 169% $ 14
79
WELLS FARGO ADVANTAGE SMALL AND MID CAP 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
- -----------------------------------------------------------------------------------------------------------------------------
SMALL CAP GROWTH FUND (CONTINUED)
INSTITUTIONAL CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. $ 12.26 (0.07) 3.15 0.00 (0.93)
OCTOBER 1, 2005 TO OCTOBER 31, 2005(7) .......... $ 12.61 (0.01) (0.34) 0.00 0.00
APRIL 11, 2005(4) TO SEPTEMBER 30, 2005 ......... $ 11.10 (0.04)(8) 1.55 0.00 0.00
SMALL CAP OPPORTUNITIES FUND
- -----------------------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. $ 33.97 (0.04) 6.53 0.00 (2.67)
OCTOBER 1, 2005 TO OCTOBER 31, 2005(7) .......... $ 34.93 (0.01) (0.95) 0.00 0.00
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... $ 33.46 (0.09) 6.05 0.00 (4.49)
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ........... $ 27.57 (0.08) 6.93 0.00 (0.96)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... $ 22.70 (0.13) 6.32 0.00 (1.32)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... $ 26.49 (0.22) (2.05) 0.00 (1.52)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... $ 29.97 (0.10) (0.91) 0.00 (2.47)
SMALL CAP VALUE FUND
- -----------------------------------------------------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. $ 31.17 (0.04) 4.96 0.00 (3.11)
JANUARY 1, 2005 TO OCTOBER 31, 2005(11) ......... $ 29.19 (0.18) 2.67 0.00 (0.51)
JANUARY 1, 2004 TO DECEMBER 31, 2004 ............ $ 27.40 (0.27)(8) 5.51 0.00 (3.45)
JANUARY 1, 2003 TO DECEMBER 31, 2003 ............ $ 18.92 (0.12)(8) 9.26 (0.01) (0.65)
JANUARY 1, 2002 TO DECEMBER 31, 2002 ............ $ 20.17 0.03(8) (1.28) 0.00 0.00
JANUARY 1, 2001 TO DECEMBER 31, 2001 ............ $ 17.17 (0.14)(8) 3.18 0.00 (0.04)
NOVEMBER 30, 2000(4) TO DECEMBER 31, 2000 ....... $ 15.36 0.00(6) 1.81 0.00 0.00
CLASS B
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. $ 29.92 (0.15) 4.75 0.00 (3.11)
JANUARY 1, 2005 TO OCTOBER 31, 2005(11) ......... $ 28.21 (0.40) 2.62 0.00 (0.51)
JANUARY 1, 2004 TO DECEMBER 31, 2004 ............ $ 26.79 (0.47)(8) 5.34 0.00 (3.45)
JANUARY 1, 2003 TO DECEMBER 31, 2003 ............ $ 18.66 (0.29)(8) 9.08 (0.01) (0.65)
JANUARY 1, 2002 TO DECEMBER 31, 2002 ............ $ 20.05 (0.14)(8) (1.25) 0.00 0.00
JANUARY 1, 2001 TO DECEMBER 31, 2001 ............ $ 17.16 (0.25)(8) 3.18 0.00 (0.04)
NOVEMBER 30, 2000(4) TO DECEMBER 31, 2000 ....... $ 15.36 (0.01) 1.81 0.00 0.00
CLASS C
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. $ 29.99 (0.14) 4.74 0.00 (3.11)
JANUARY 1, 2005 TO OCTOBER 31, 2005(11) ......... $ 28.27 (0.44) 2.67 0.00 (0.51)
JANUARY 1, 2004 TO DECEMBER 31, 2004 ............ $ 26.83 (0.47)(8) 5.36 0.00 (3.45)
JANUARY 1, 2003 TO DECEMBER 31, 2003 ............ $ 18.68 (0.28)(8) 9.09 (0.01) (0.65)
JANUARY 1, 2002 TO DECEMBER 31, 2002 ............ $ 20.07 0.13)(8) (1.26) 0.00 0.00
JANUARY 1, 2001 TO DECEMBER 31, 2001 ............ $ 17.17 (0.24)(8) 3.18 0.00 (0.04)
NOVEMBER 30, 2000(4) TO DECEMBER 31, 2000 ....... $ 15.36 (0.01) 1.82 0.00 0.00
CLASS Z
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. $ 31.45 (0.05) 5.03 0.00 (3.11)
JANUARY 1, 2005 TO OCTOBER 31, 2005(11) ......... $ 29.40 (0.15) 2.71 0.00 (0.51)
JANUARY 1, 2004 TO DECEMBER 31, 2004 ............ $ 27.53 (0.22)(8) 5.54 0.00 (3.45)
JANUARY 1, 2003 TO DECEMBER 31, 2003 ............ $ 18.98 (0.09)(8) 9.30 (0.01) (0.65)
JANUARY 1, 2002 TO DECEMBER 31, 2002 ............ $ 20.22 0.04(8) (1.28) 0.00 0.00
JANUARY 1, 2001 TO DECEMBER 31, 2001 ............ $ 17.17 (0.08)(8) 3.17 0.00 (0.04)
JANUARY 1, 2000 TO DECEMBER 31, 2000 ............ $ 13.59 0.00(6) 3.58 0.00 0.00
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
80
FINANCIAL HIGHLIGHTS WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
DISTRIBUTIONS ENDING RATIO TO AVERAGE NET ASSETS (ANNUALIZED)(1)
IN EXCESS OF NET ASSET -----------------------------------------------
REALIZED VALUE PER NET INVESTMENT GROSS EXPENSES NET
GAINS SHARE INCOME (LOSS) EXPENSES WAIVED EXPENSES
- -------------------------------------------------------------------------------------------------------------------------------
SMALL CAP GROWTH FUND (CONTINUED)
INSTITUTIONAL CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. 0.00 $ 14.41 (0.69)% 1.20% (0.30)% 0.90%
OCTOBER 1, 2005 TO OCTOBER 31, 2005(7) .......... 0.00 $ 12.26 (0.77)% 1.11% (0.21)% 0.90%
APRIL 11, 2005(4) TO SEPTEMBER 30, 2005 ......... 0.00 $ 12.61 (0.65)% 1.15% (0.23)% 0.92%
SMALL CAP OPPORTUNITIES FUND
- -------------------------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. 0.00 $ 37.79 (0.23)% 1.34% (0.14)% 1.20%
OCTOBER 1, 2005 TO OCTOBER 31, 2005(7) .......... 0.00 $ 33.97 (0.35)% 1.33% (0.13)% 1.20%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... 0.00 $ 34.93 (0.28)% 1.29% (0.09)% 1.20%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ........... 0.00 $ 33.46 (0.27)% 1.30% (0.10)% 1.20%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 0.00 $ 27.57 (0.57)% 1.31% (0.11)% 1.20%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... 0.00 $ 22.70 (0.81)% 1.27% (0.02)% 1.25%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... 0.00 $ 26.49 (0.37)% 1.33% (0.08)% 1.25%
SMALL CAP VALUE FUND
- -------------------------------------------------------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. 0.00 $ 32.98 (0.38)% 1.44% 0.00% 1.44%
JANUARY 1, 2005 TO OCTOBER 31, 2005(11) ......... 0.00 $ 31.17 (0.70)% 1.50% (0.03)% 1.47%
JANUARY 1, 2004 TO DECEMBER 31, 2004 ............ 0.00 $ 29.19 (0.96)% 1.57% (0.04)% 1.53%
JANUARY 1, 2003 TO DECEMBER 31, 2003 ............ 0.00 $ 27.40 (0.55)% 1.56% (0.02)% 1.54%
JANUARY 1, 2002 TO DECEMBER 31, 2002 ............ 0.00 $ 18.92 0.14% 1.58% (0.01)% 1.57%
JANUARY 1, 2001 TO DECEMBER 31, 2001 ............ 0.00 $ 20.17 (0.73)% 1.60% (0.01)% 1.59%
NOVEMBER 30, 2000(4) TO DECEMBER 31, 2000 ....... 0.00 $ 17.17 (0.81)% 1.64% 0.00% 1.64%
CLASS B
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. 0.00 $ 31.41 (1.13)% 2.19% 0.00% 2.19%
JANUARY 1, 2005 TO OCTOBER 31, 2005(11) ......... 0.00 $ 29.92 (1.46)% 2.26% (0.02)% 2.24%
JANUARY 1, 2004 TO DECEMBER 31, 2004 ............ 0.00 $ 28.21 (1.71)% 2.33% (0.05)% 2.28%
JANUARY 1, 2003 TO DECEMBER 31, 2003 ............ 0.00 $ 26.79 (1.37)% 2.36% (0.01)% 2.35%
JANUARY 1, 2002 TO DECEMBER 31, 2002 ............ 0.00 $ 18.66 (0.69)% 2.41% (0.01)% 2.40%
JANUARY 1, 2001 TO DECEMBER 31, 2001 ............ 0.00 $ 20.05 (1.40)% 2.50% (0.23)% 2.27%
NOVEMBER 30, 2000(4) TO DECEMBER 31, 2000 ....... 0.00 $ 17.16 (0.77)% 2.00% (0.20)% 1.80%
CLASS C
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. 0.00 $ 31.48 (1.13)% 2.19% 0.00% 2.19%
JANUARY 1, 2005 TO OCTOBER 31, 2005(11) ......... 0.00 $ 29.99 (1.46)% 2.26% (0.02)% 2.24%
JANUARY 1, 2004 TO DECEMBER 31, 2004 ............ 0.00 $ 28.27 (1.71)% 2.34% (0.05)% 2.29%
JANUARY 1, 2003 TO DECEMBER 31, 2003 ............ 0.00 $ 26.83 (1.32)% 2.34% (0.02)% 2.32%
JANUARY 1, 2002 TO DECEMBER 31, 2002 ............ 0.00 $ 18.68 (0.64)% 2.38% (0.01)% 2.37%
JANUARY 1, 2001 TO DECEMBER 31, 2001 ............ 0.00 $ 20.07 (1.38)% 2.39% (0.15)% 2.24%
NOVEMBER 30, 2000(4) TO DECEMBER 31, 2000 ....... 0.00 $ 17.17 (0.74)% 2.00% (0.18)% 1.82%
CLASS Z
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. 0.00 $ 33.32 (0.30)% 1.61% (0.25)% 1.36%
JANUARY 1, 2005 TO OCTOBER 31, 2005(11) ......... 0.00 $ 31.45 (0.57)% 1.58% (0.24)% 1.34%
JANUARY 1, 2004 TO DECEMBER 31, 2004 ............ 0.00 $ 29.40 (0.79)% 1.40% (0.04)% 1.36%
JANUARY 1, 2003 TO DECEMBER 31, 2003 ............ 0.00 $ 27.53 (0.41)% 1.42% (0.02)% 1.40%
JANUARY 1, 2002 TO DECEMBER 31, 2002 ............ 0.00 $ 18.98 0.21% 1.49% (0.01)% 1.48%
JANUARY 1, 2001 TO DECEMBER 31, 2001 ............ 0.00 $ 20.22 (0.48)% 1.41% 0.00% 1.41%
JANUARY 1, 2000 TO DECEMBER 31, 2000 ............ 0.00 $ 17.17 0.01% 1.35% 0.00% 1.35%
TOTAL PORTFOLIO NET ASSETS AT
RETURN(2) TURNOVER END OF PERIOD
RATE(3) (000'S OMITTED)
- ---------------------------------------------------------------------------------------------
SMALL CAP GROWTH FUND (CONTINUED)
INSTITUTIONAL CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. 26.39% 75% $ 48,769
OCTOBER 1, 2005 TO OCTOBER 31, 2005(7) .......... (2.78)% 10% $ 31,430
APRIL 11, 2005(4) TO SEPTEMBER 30, 2005 ......... 13.60% 149% $ 31,416
SMALL CAP OPPORTUNITIES FUND
- ---------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. 20.16% 39% $ 837,070
OCTOBER 1, 2005 TO OCTOBER 31, 2005(7) .......... (2.78)% 7% $ 704,714
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ........... 18.76% 107% $ 725,651
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ........... 25.25% 113% $ 534,600
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 28.47% 152% $ 381,786
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... (9.81)% 97% $ 294,880
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... (3.46)% 117% $ 283,154
SMALL CAP VALUE FUND
- ---------------------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. 16.68% 17% $ 697,316
JANUARY 1, 2005 TO OCTOBER 31, 2005(11) ......... 8.66% 33% $ 606,811
JANUARY 1, 2004 TO DECEMBER 31, 2004 ............ 19.89% 34% $ 598,226
JANUARY 1, 2003 TO DECEMBER 31, 2003 ............ 48.49% 30% $ 673,580
JANUARY 1, 2002 TO DECEMBER 31, 2002 ............ (6.20)% 28% $ 334,669
JANUARY 1, 2001 TO DECEMBER 31, 2001 ............ 17.70% 42% $ 169,000
NOVEMBER 30, 2000(4) TO DECEMBER 31, 2000 ....... 11.78% 60% $ 1,178
CLASS B
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. 16.27% 17% $ 143,146
JANUARY 1, 2005 TO OCTOBER 31, 2005(11) ......... 7.99% 33% $ 133,825
JANUARY 1, 2004 TO DECEMBER 31, 2004 ............ 18.95% 34% $ 136,825
JANUARY 1, 2003 TO DECEMBER 31, 2003 ............ 47.28% 30% $ 126,152
JANUARY 1, 2002 TO DECEMBER 31, 2002 ............ (6.93)% 28% $ 75,782
JANUARY 1, 2001 TO DECEMBER 31, 2001 ............ 17.07% 42% $ 40,446
NOVEMBER 30, 2000(4) TO DECEMBER 31, 2000 ....... 11.72% 60% $ 182
CLASS C
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. 16.23% 17% $ 157,995
JANUARY 1, 2005 TO OCTOBER 31, 2005(11) ......... 8.01% 33% $ 146,162
JANUARY 1, 2004 TO DECEMBER 31, 2004 ............ 19.00% 34% $ 157,329
JANUARY 1, 2003 TO DECEMBER 31, 2003 ............ 47.34% 30% $ 158,942
JANUARY 1, 2002 TO DECEMBER 31, 2002 ............ (6.93)% 28% $ 98,122
JANUARY 1, 2001 TO DECEMBER 31, 2001 ............ 17.12% 42% $ 38,248
NOVEMBER 30, 2000(4) TO DECEMBER 31, 2000 ....... 11.78% 60% $ 138
CLASS Z
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .. 16.72% 17% $ 2,538,724
JANUARY 1, 2005 TO OCTOBER 31, 2005(11) ......... 8.83% 33% $ 1,926,165
JANUARY 1, 2004 TO DECEMBER 31, 2004 ............ 20.09% 34% $ 1,359,158
JANUARY 1, 2003 TO DECEMBER 31, 2003 ............ 48.70% 30% $ 1,167,094
JANUARY 1, 2002 TO DECEMBER 31, 2002 ............ (6.13)% 28% $ 658,718
JANUARY 1, 2001 TO DECEMBER 31, 2001 ............ 17.99% 42% $ 541,384
JANUARY 1, 2000 TO DECEMBER 31, 2000 ............ 26.34% 60% $ 248,985
81
WELLS FARGO ADVANTAGE SMALL AND MID CAP 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 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. Portfolio turnover rates presented
for periods of less than one year are not annualized.
(4) Commencement of operations.
(5) Per share data reflects a 1.233 for 1.00 share split which occurred on
March 8, 2001.
(6) Amount calculated is less than $0.005.
(7) The Fund changed its year end from September 30 to October 31.
(8) Calculated based upon average shares outstanding.
(9) Per share numbers have been adjusted to reflect a 2.0103 to 1 stock split.
(10) The Fund changed its year end from June 30 to September 30.
(11) The Fund changed its year end from December 31 to October 31.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
82
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP 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
October 31, 2005, was comprised of 108 separate series (each, a "Fund",
collectively, the "Funds"). These financial statements present the C&B Mid Cap
Value Fund, Common Stock Fund, Mid Cap Growth Fund, Small Cap Growth Fund, Small
Cap Opportunities Fund, and Small Cap Value Fund. Each Fund is a diversified
series of the Trust.
On February 3, 2004, the Board of Trustees of the Trust and on February
18, 2004, the Board of Trustees of the Cooke & Bieler Funds approved an
Agreement and Plan of Reorganization of the Cooke & Bieler Portfolios (C&B
Portfolios) into certain of the Funds. Effective at the close of business on
July 23, 2004, the Wells Fargo C&B Mid Cap Value Fund acquired all of the net
assets of the C&B Mid Cap Value Portfolio.
Effective April 11, 2005, the Wells Fargo C&B Mid Cap Value Fund changed
its name to WELLS FARGO ADVANTAGE C&B MID CAP VALUE FUND. Also at this time, the
Institutional Class changed its name to Administrator Class and the Select Class
changed its name to Institutional Class.
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 Target Fund Acquiring Fund
Strong Multi Cap Strong Adviser WELLS FARGO ADVANTAGE
Fund Value Fund Small Cap Value Fund* SMALL CAP VALUE FUND
- ----------------------------------------------------------------------------------------------------------------
SHARES:
- ----------------------------------------------------------------------------------------------------------------
CLASS A N/A 20,608,712 20,608,712
- ----------------------------------------------------------------------------------------------------------------
CLASS B N/A 4,814,191 4,814,191
- ----------------------------------------------------------------------------------------------------------------
CLASS C N/A 5,379,694 5,379,694
- ----------------------------------------------------------------------------------------------------------------
CLASS Z(1) N/A 50,490,877 57,882,562
- ----------------------------------------------------------------------------------------------------------------
INVESTOR CLASS 3,363,000 N/A N/A
- ----------------------------------------------------------------------------------------------------------------
NET ASSETS:
- ----------------------------------------------------------------------------------------------------------------
CLASS A N/A $ 593,375,054 $ 593,375,054
- ----------------------------------------------------------------------------------------------------------------
CLASS B N/A 133,618,121 133,618,121
- ----------------------------------------------------------------------------------------------------------------
CLASS C N/A 149,639,652 149,639,652
- ----------------------------------------------------------------------------------------------------------------
CLASS Z(1) N/A 1,465,672,826 1,680,242,135
- ----------------------------------------------------------------------------------------------------------------
INVESTOR CLASS $ 214,569,309 N/A N/A
- ----------------------------------------------------------------------------------------------------------------
UNREALIZED APPRECIATION (DEPRECIATION) 30,953,675 734,339,679 765,293,354
- ----------------------------------------------------------------------------------------------------------------
ACCUMULATED NET REALIZED GAIN (LOSS) (103,484,799) (21,857,714) (125,342,513)
* DESIGNATES THE ACCOUNTING SURVIVOR.
(1) EFFECTIVE AT THE CLOSE OF BUSINESS ON APRIL 8, 2005, THE INVESTOR CLASS OF
THE STRONG MULTI CAP VALUE FUND MERGED INTO CLASS Z OF THE WELLS FARGO
ADVANTAGE SMALL CAP VALUE FUND.
BEFORE REORGANIZATION AFTER REORGANIZATION
----------------------------------------- ---------------------
Target Fund Acquiring Fund
Strong Advisor Wells Fargo Montgomery WELLS FARGO ADVANTAGE
Fund Mid Cap Growth Fund Mid Cap Growth Fund* MID CAP GROWTH FUND
- ----------------------------------------------------------------------------------------------------------------
SHARES:
- ----------------------------------------------------------------------------------------------------------------
CLASS A 725,659 16,436,829 18,148,827
- ----------------------------------------------------------------------------------------------------------------
CLASS B 215,544 1,238,551 1,749,282
- ----------------------------------------------------------------------------------------------------------------
CLASS C 41,024 195,660 292,870
- ----------------------------------------------------------------------------------------------------------------
CLASS Z 3,780,760 N/A 8,884,546
- ----------------------------------------------------------------------------------------------------------------
83
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
BEFORE REORGANIZATION AFTER REORGANIZATION
-------------------------------------------- ---------------------
Target Fund Acquiring Fund*
Strong Advisor Wells Fargo Montgomery WELLS FARGO ADVANTAGE
Fund Mid Cap Growth Fund Mid Cap Growth Fund MID CAP GROWTH FUND
- ----------------------------------------------------------------------------------------------------------------
NET ASSETS:
- ----------------------------------------------------------------------------------------------------------------
CLASS A $ 10,187,292 $ 97,807,793 $ 107,995,085
- --------------------------------------------------------------------------------------------------------------
Class B 2,935,837 7,119,503 10,055,340
- --------------------------------------------------------------------------------------------------------------
CLASS C 558,878 1,124,891 1,683,769
- --------------------------------------------------------------------------------------------------------------
CLASS Z 52,867,733 N/A 52,867,733
- --------------------------------------------------------------------------------------------------------------
UNREALIZED APPRECIATION (DEPRECIATION) 5,514,625 8,140,370 13,654,995
- --------------------------------------------------------------------------------------------------------------
ACCUMULATED NET REALIZED GAIN (LOSS) (94,868,178) 11,927,949 (82,940,229)
- --------------------------------------------------------------------------------------------------------------
* DESIGNATES THE ACCOUNTING SURVIVOR.
BEFORE REORGANIZATION AFTER REORGANIZATION
----------------------------------------------------------------- ---------------------
Target Fund Target Fund Target Fund Acquiring Fund WELLS FARGO
Strong Advisor Strong U.S. Wells Fargo Wells Fargo ADVANTAGE
U.S. Small/Mid Emerging Small Cap Montgomery SMALL CAP
Fund Cap Growth Fund Growth Fund Growth Fund Small Cap Fund* GROWTH FUND
- -------------------------------------------------------------------------------------------------------------------------
SHARES:
- -------------------------------------------------------------------------------------------------------------------------
CLASS A 215,106 N/A 3,710,344 3,745,033 9,149,010
- -------------------------------------------------------------------------------------------------------------------------
CLASS B 126,310 N/A 1,341,658 73,633 1,981,250
- -------------------------------------------------------------------------------------------------------------------------
CLASS C 82,376 N/A 365,224 17,611 574,959
- -------------------------------------------------------------------------------------------------------------------------
CLASS Z(1) N/A N/A N/A N/A 4,487,995
- -------------------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS(2) N/A N/A N/A N/A 7,982,229
- -------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS N/A N/A 2,176,739 4,840,133 N/A
- -------------------------------------------------------------------------------------------------------------------------
INVESTOR CLASS N/A 3,440,348 N/A N/A N/A
- -------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
- -------------------------------------------------------------------------------------------------------------------------
CLASS A $ 1,912,279 N/A $ 57,867,223 $ 41,428,048 $ 101,207,550
- -------------------------------------------------------------------------------------------------------------------------
CLASS B 1,122,425 N/A 19,683,174 803,089 21,608,688
- -------------------------------------------------------------------------------------------------------------------------
CLASS C 732,892 N/A 5,352,383 192,286 6,277,561
- -------------------------------------------------------------------------------------------------------------------------
CLASS Z(1) N/A N/A N/A N/A 49,646,787
- -------------------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS(2) N/A N/A N/A N/A 88,601,554
- -------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS N/A N/A 34,876,794 53,724,760 0
- -------------------------------------------------------------------------------------------------------------------------
INVESTOR CLASS N/A $ 49,646,787 N/A N/A 0
- -------------------------------------------------------------------------------------------------------------------------
UNREALIZED APPRECIATION
(DEPRECIATION) (173,437) (1,522,063) 5,798,208 3,385,469 7,488,177
- -------------------------------------------------------------------------------------------------------------------------
ACCUMULATED NET REALIZED
GAIN (LOSS) 508,471 (27,615,973) (288,219,549) 4,550,952 (310,776,099)
* DESIGNATES THE ACCOUNTING SURVIVOR.
(1) EFFECTIVE AT THE CLOSE OF BUSINESS ON APRIL 8, 2005, INVESTOR CLASS OF THE
STRONG U.S. EMERGING GROWTH FUND MERGED INTO CLASS Z OF WELLS FARGO
ADVANTAGE SMALL CAP GROWTH FUND.
(2) EFFECTIVE AT THE CLOSE OF BUSINESS ON APRIL 8, 2005, INSTITUTIONAL CLASS
OF THE WELLS FARGO SMALL CAP GROWTH FUND MERGED INTO INSTITUTIONAL CLASS
OF THE WELLS FARGO MONTGOMERY SMALL CAP FUND AND THEN THE FUND AND ITS
CLASS WERE RENAMED THE ADMINISTRATOR CLASS OF THE WELLS FARGO ADVANTAGE
SMALL CAP GROWTH FUND.
84
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK 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") through a
tax-free exchange under section 368 of the Internal Revenue Code.
Acquiring Fund Target Fund
- --------------------------------------------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE COMMON STOCK FUND - CLASS A STRONG ADVISER COMMON STOCK FUND - CLASS A
WELLS FARGO ADVANTAGE COMMON STOCK FUND - CLASS B STRONG ADVISER COMMON STOCK FUND - CLASS B
WELLS FARGO ADVANTAGE COMMON STOCK FUND - CLASS C STRONG ADVISER COMMON STOCK FUND - CLASS C
WELLS FARGO ADVANTAGE COMMON STOCK FUND - CLASS Z STRONG ADVISER COMMON STOCK FUND - CLASS Z
- --------------------------------------------------------------------------------------------------------------------
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 security 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 a
focus in such investment.
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.
85
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
AFFILIATE SECURITIES
An affiliate company is a company in which a Fund has ownership of at
least 5% of the voting securities. Companies that are affiliates of a Fund at
period-end are noted in the Fund's Schedule of Investments. The following
positions were held by Small Cap Value Fund at April 30, 2006:
Market Unrealized Dividend % of Shares
Security Name Quantity Cost Value Gain/Loss Income Outstanding
- -------------------------------------------------------------------------------------------------------------------------------
Apex Silver Mines Limited 3,369,880 $44,142,171 $ 71,778,444 $ 27,636,273 $ 0 6.48
- -------------------------------------------------------------------------------------------------------------------------------
Bakers Footwear Group Incorporated 467,500 6,307,124 9,050,800 2,743,676 0 7.53
- -------------------------------------------------------------------------------------------------------------------------------
Calgon Carbon Corporation 2,129,830 15,090,716 15,952,426 861,710 0 5.34
- -------------------------------------------------------------------------------------------------------------------------------
Constar International Incorporated 827,453 7,532,709 2,672,756 (4,859,953) 0 6.62
- -------------------------------------------------------------------------------------------------------------------------------
Covenant Transport Incorporated Class A 891,200 15,100,949 12,334,208 (2,766,741) 0 6.37
- -------------------------------------------------------------------------------------------------------------------------------
Cray Incorporated 7,853,135 21,125,304 13,036,204 (8,089,100) 0 8.56
- -------------------------------------------------------------------------------------------------------------------------------
Discovery Partners International 2,049,817 9,510,476 5,022,051 (4,488,425) 0 7.75
- -------------------------------------------------------------------------------------------------------------------------------
Evans & Sutherland Computer Corporation 1,034,543 6,281,665 6,496,930 215,265 0 9.83
- -------------------------------------------------------------------------------------------------------------------------------
Geo Group Incorporated 1,069,940 17,723,099 38,346,650 20,623,551 0 11.10
- -------------------------------------------------------------------------------------------------------------------------------
Global Industries Limited 10,306,990 85,219,567 $163,571,931 78,352,364 0 8.99
- -------------------------------------------------------------------------------------------------------------------------------
GrafTech International Limited 5,391,830 42,260,796 36,448,771 (5,812,025) 0 5.51
- -------------------------------------------------------------------------------------------------------------------------------
Intertape Polymer Group Incorporated 4,430,270 36,326,551 39,075,713 2,749,162 0 10.96
- -------------------------------------------------------------------------------------------------------------------------------
Kforce Incorporated 2,285,922 14,224,314 32,117,204 17,892,891 0 5.82
- -------------------------------------------------------------------------------------------------------------------------------
Layne Christensen Company 1,155,179 11,246,917 34,077,781 22,830,864 0 7.58
- -------------------------------------------------------------------------------------------------------------------------------
Lightbridge Incorporated 2,776,400 22,045,082 35,315,808 13,270,726 0 10.21
- -------------------------------------------------------------------------------------------------------------------------------
Matrix Service Company 1,069,600 10,017,132 12,204,136 2,187,004 0 5.13
- -------------------------------------------------------------------------------------------------------------------------------
McMoRan Exploration Company 2,270,520 30,127,091 39,325,406 9,198,315 0 7.97
- -------------------------------------------------------------------------------------------------------------------------------
Orasure Technologies Incorporated 3,428,100 28,576,582 36,783,513 8,206,931 0 7.47
- -------------------------------------------------------------------------------------------------------------------------------
OSI Systems Incorporated 1,038,050 17,777,543 19,785,233 2,007,690 0 6.31
- -------------------------------------------------------------------------------------------------------------------------------
Randgold Resources 4,266,100 57,333,344 103,836,874 46,503,530 0 6.27
- -------------------------------------------------------------------------------------------------------------------------------
Richardson Electronics Limited 912,754 8,456,174 6,471,426 (1,984,748) 68,348 5.24
- -------------------------------------------------------------------------------------------------------------------------------
Tier Technologies Incorporated Class B 1,158,248 8,605,238 8,559,453 (45,785) 0 5.68
- -------------------------------------------------------------------------------------------------------------------------------
Willbros Group Incorporated 1,274,785 15,939,625 28,172,749 12,233,124 0 5.92
- -------------------------------------------------------------------------------------------------------------------------------
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.
86
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
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 April 30, 2006.
At October 31, 2005, estimated net capital loss carryforwards, which are
available to offset future net realized capital gains, were:
Capital Loss
Fund Year Expires Carryforwards
- --------------------------------------------------------------------------------
MID CAP GROWTH FUND 2007 $ 8,385,267
- --------------------------------------------------------------------------------
2008 3,028,013
- --------------------------------------------------------------------------------
2009 1,017,379
- --------------------------------------------------------------------------------
2013 225,470
- --------------------------------------------------------------------------------
SMALL CAP GROWTH FUND 2007 3,007,875
- --------------------------------------------------------------------------------
2008 18,547,724
- --------------------------------------------------------------------------------
2009 4,946,742
- --------------------------------------------------------------------------------
2013 350,432
- --------------------------------------------------------------------------------
SMALL CAP VALUE FUND 2009 14,016,830
- --------------------------------------------------------------------------------
2010 31,042,725
- --------------------------------------------------------------------------------
2011 1,040,222
- --------------------------------------------------------------------------------
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.
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.
REPURCHASE AGREEMENTS
The Fund(s) may invest in repurchase agreements and may participate in
pooled repurchase agreement transactions with other funds advised by Wells Fargo
Funds Management, LLC. The repurchase agreements must be fully collateralized
based on values that are marked to market daily. The collateral may be held by
an agent bank under a tri-party agreement. It is the custodian's responsibility
to value collateral daily and to take action to obtain additional collateral as
necessary to maintain market value equal to or greater than the resale price.
The repurchase agreements are collateralized by instruments such as U.S.
Treasury, federal agency, or high-grade corporate obligations. There could be
potential loss to a Fund in the event that such Fund is delayed or prevented
from exercising its rights to dispose of the collateral, including the risk of a
possible decline in the value of the underlying obligations during the period in
which a Fund seeks to assert its rights.
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 is remarked daily while collateral supporting
loans of U.S. Government securities is remarked back to 102% only if the given
collateral falls below 100% of the market value of securities loaned plus any
accrual interest. Gain or loss in the market price of the securities loaned that
may occur during the
87
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
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 revenue earned on the securities
lending activities and incurred all expenses.
Prior to April 11, 2005, the predecessor Strong Funds had a securities
lending agreement with State Street Bank and Trust Co. ("State Street"). The
agreement required that loans be collateralized at all times by cash and cash
equivalents equal to at least 102% of the market value of the aggregate loaned
securities, plus accrued interest, and the collateral be marked-to-market daily.
Amounts earned as interest on investments of cash collateral, net of rebates and
other securities lending expenses, are included in Securities Lending Income, on
the Statements of Operations. The value of the securities on loan and the value
of the related collateral at April 30, 2006 are shown on the Statements of
Assets and Liabilities.
SWAP CONTRACTS
The Funds may enter into various hedging transactions, such as interest
rate swaps to preserve a return or spread on a particular investment or portion
of its portfolio, to create synthetic adjustable-rate mortgage securities or for
other purposes. Swaps involve the exchange of commitments to make or receive
payments, e.g., an exchange of floating-rate payments for fixed rate payments.
The Funds record as an increase or decrease to realized gain/loss, the amount
due or owed by the Funds at termination or settlement. Swaps are valued based on
prices quoted by independent brokers. These valuations represent the net present
value of all future cash settlement amounts based on implied forward interest
rates or index values.
As of April 30, 2006, the following Funds had open swap contracts:
Swap Notional Interest Rate/ Interest Rate/ Maturity Net Unrealized
Fund Counter Party Principal Index Received Index Paid Date Gain/(Loss)
- -------------------------------------------------------------------------------------------------------------------------
COMMON STOCK Lehman Brothers $ 9,156,950 Notional Amount Market Value 18-April-07 $ 418,731
Finance x (3 Month USD Libor Appreciation
less 35 bps) plus Market on Customized
Value Depreciation on Stock Index*
Customized Stock Index*
- -------------------------------------------------------------------------------------------------------------------------
* CUSTOMIZED STOCK INDEX CONSISTS OF THE FOLLOWING BASKET OF COMMON STOCKS
VALUED AS OF APRIL 30, 2006: APACHE CORPORATION, ANADARKO PETROLEUM
CORPORATION, EOG RESOURCES INCORPORATED, EL PASO CORPORATION, NOBLE ENERGY
INCORPORATED, NEWFIELD EXPLORATION COMPANY, POGO PRODUCING COMPANY AND
PIONEER NATURAL RESOURCES COMPANY.
WRITTEN OPTIONS
An option is a right to buy or sell a particular security at a specified
price within a limited period of time. The writer of the option, in return for a
premium received from the seller, has the obligation to sell (in the case of a
call option) or buy (in the case of a put option) the underlying security of the
contract. The premium received in cash from writing options is recorded as an
asset with an equal liability that is adjusted to reflect the option's value.
The premium received from writing options which expire is recorded as realized
gains. The premium received from writing options which are exercised or closed
is offset against the proceeds or amount paid on the closing transaction to
determine the realized gain or loss. If a put option is exercised, the premium
reduces the cost basis of the security or currency purchased. Options are valued
based on their quoted daily settlement prices.
Risks could arise from entering into written options transactions from the
potential inability of counterparties to meet the terms of their contracts, the
potential inability to enter into a closing transaction because of an illiquid
secondary market, and from unexpected movements in interest or exchange rates or
securities values.
Written options transactions during the period ended April 30, 2006, were
as follows:
Common Stock Fund Small Cap Value Fund
------------------------------- --------------------------------
Premiums Premiums
Call Options Written Contracts Received Contracts Received
- ------------------------------------------------------------------------------------------------------------------
OPTIONS AT BEGINNING OF PERIOD 0 $ 0 121,471 $ 37,351,285
- ------------------------------------------------------------------------------------------------------------------
OPTIONS WRITTEN 5,550 2,465,514 502,958 196,380,989
- ------------------------------------------------------------------------------------------------------------------
OPTIONS TERMINATED IN CLOSING TRANSACTIONS (1,750) (869,725) (350,605) (121,849,058)
- ------------------------------------------------------------------------------------------------------------------
OPTIONS EXPIRED 0 0 (32,519) (5,565,372)
- ------------------------------------------------------------------------------------------------------------------
OPTIONS SPLIT 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------
OPTIONS EXERCISED (1,750) (441,675) (14,051) (5,859,870)
- ------------------------------------------------------------------------------------------------------------------
OPTIONS AT END OF PERIOD 2,050 $ 1,154,114 227,254 $ 100,457,974
- ------------------------------------------------------------------------------------------------------------------
88
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
Small Cap Value Fund
-----------------------------
Premiums
Put Options Written Contracts Received
- ----------------------------------------------------------------------------
OPTIONS AT BEGINNING OF PERIOD 500 $ 138,495
- ----------------------------------------------------------------------------
OPTIONS WRITTEN 0 0
- ----------------------------------------------------------------------------
OPTIONS TERMINATED IN CLOSING TRANSACTIONS (500) (138,495)
- ----------------------------------------------------------------------------
OPTIONS EXPIRED 0 0
- ----------------------------------------------------------------------------
OPTIONS SPLIT 0 0
- ----------------------------------------------------------------------------
OPTIONS EXERCISED 0 0
- ----------------------------------------------------------------------------
OPTIONS AT END OF PERIOD 0 $ 0
- ----------------------------------------------------------------------------
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)
- ---------------------------------------------------------------------------------------------------------------------------------
C&B MID CAP VALUE FUND First $500 million 0.750 Cook & Bieler, First $250 million 0.550
Next $500 million 0.700 L.P. Next $250 million 0.500
Next $2 billion 0.650 Next $250 million 0.450
Next $2 billion 0.625 Over $750 million 0.400
Over $5 billion 0.600
- ---------------------------------------------------------------------------------------------------------------------------------
COMMON STOCK FUND First $500 million 0.750 Wells Capital First $100 million 0.450
Next $500 million 0.700 Management Next $100 million 0.400
Next $2 billion 0.650 Incorporated Over $200 million 0.300
Next $2 billion 0.625
Over $5 billion 0.600
- ---------------------------------------------------------------------------------------------------------------------------------
MID CAP GROWTH FUND First $500 million 0.750 Wells Capital First $100 million 0.450
Next $500 million 0.700 Management Next $100 million 0.400
Next $2 billion 0.650 Incorporated Over $200 million 0.300
Next $2 billion 0.625
Over $5 billion 0.600
- ---------------------------------------------------------------------------------------------------------------------------------
SMALL CAP GROWTH FUND First $500 million 0.900 Wells Capital First $100 million 0.550
Next $500 million 0.850 Management Next $200 million 0.500
Next $2 billion 0.800 Incorporated Over $300 million 0.400
Next $2 billion 0.775
Over $5 billion 0.750
- ---------------------------------------------------------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND First $500 million 0.900 Schroder First $275 million 0.500
Next $500 million 0.850 Investment Over $275 million 0.450
Next $2 billion 0.800 Management
Next $2 billion 0.775 North America
Over $5 billion 0.750 Incorporated
- ---------------------------------------------------------------------------------------------------------------------------------
89
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Advisory Fees* Subadvisory Fees**
Average Daily (% of Average Average Daily (% of Average
Fund Net Assets Daily Net Assets) Subadviser Net Assets Daily Net Assets)
- ----------------------------------------------------------------------------------------------------------------------------------
SMALL CAP VALUE FUND First $500 million 0.900 Wells Capital Management First $100 million 0.550
Next $500 million 0.850 Incorporated Next $100 million 0.500
Next $2 billion 0.800 Over $200 million 0.400
Next $2 billion 0.775
Over $5 billion 0.750
- ----------------------------------------------------------------------------------------------------------------------------------
* 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. PRIOR TO JANUARY 1, 2005, STRONG CAPITAL
MANAGEMENT, INC. SERVED AS INVESTMENT ADVISER TO EACH OF THE PREDECESSOR
STRONG FUNDS. FUNDS MANAGEMENT AND STRONG CAPITAL MANAGEMENT WERE BOTH
ENTITLED TO RECEIVE AN ANNUAL FEE AT THE FOLLOWING RATES:
Advisory Fees
(% of Average
Fund Average Daily Net Assets Daily Net Assets)
- -------------------------------------------------------------------------
COMMON STOCK FUND First $4 billion 0.750
Next $2 billion 0.725
Over $6 billion 0.700
- -------------------------------------------------------------------------
SMALL CAP VALUE 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, THE INVESTMENT
SUBADVISER(S) WERE ENTITLED TO BE PAID A MONTHLY FEE AT THE FOLLOWING
RATES:
Sub-Advisory Fees
Average Daily (% of Average
Fund Subadviser Net Assets Daily Net Assets)
- ---------------------------------------------------------------------------------------------------------
COMMON STOCK FUND Wells Capital Management First $200 million 0.350
Incorporated Over $200 million 0.300
- ---------------------------------------------------------------------------------------------------------
MID CAP GROWTH FUND Wells Capital Management First $200 million 0.250
Incorporated Over $200 million 0.200
- ---------------------------------------------------------------------------------------------------------
SMALL CAP GROWTH FUND Wells Capital Management First $200 million 0.250
Incorporated Over $200 million 0.200
- ---------------------------------------------------------------------------------------------------------
SMALL CAP VALUE FUND Wells Capital Management First $200 million 0.350
Incorporated Over $200 million 0.300
- ---------------------------------------------------------------------------------------------------------
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
Average Daily Net Assets Daily Net Assets)
- ----------------------------------------------------------------------------------------
FUND LEVEL First $5 billion 0.05
Next $5 billion 0.04
Over $10 billion 0.03
- ----------------------------------------------------------------------------------------
CLASS A, CLASS B, CLASS C, AND CLASS D 0.28
- ----------------------------------------------------------------------------------------
CLASS Z 0.45
- ----------------------------------------------------------------------------------------
ADMINISTRATOR CLASS**** 0.10
- ----------------------------------------------------------------------------------------
INSTITUTIONAL CLASS***** 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 RECEIVED AN ANNUAL FEE AT THE FOLLOWING
RATES:
90
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
% of Average
Share Class Daily Net Assets
- --------------------------------------------------------------------------------
Class A, Class B, Class C, and Class Z 0.30
- --------------------------------------------------------------------------------
**** 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. 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 the
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
- --------------------------------------------------------------------------------
ALL SMALL AND MID CAP STOCK FUNDS 0.02
- --------------------------------------------------------------------------------
Prior to March 4, 2005, State Street served as custodian for the Common
Stock Fund. Prior to April 11, 2005, State Street served as custodian for the
Small Cap Value Fund. From April 11, 2005, to April 22, 2005, State Street
served as interim custodian for the Small Cap Value Fund. State Street was
entitled to receive certain fees, primary based in 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, CLASS D, CLASS Z
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 ended April 30, 2006, shareholder servicing fees paid were
as follows:
Administrator
Fund Class A Class B Class C Class D Class Z Class
- ---------------------------------------------------------------------------------------------------------
C&B MIDCAP GROWTH FUND $ 38,553 $ 16,076 $ 10,500 $ 610,996 N/A $ 161,679
- ---------------------------------------------------------------------------------------------------------
COMMON STOCK FUND 83,270 45,357 25,669 N/A $ 1,348,919 N/A
- ---------------------------------------------------------------------------------------------------------
MID CAP GROWTH FUND 142,000 10,670 2,239 N/A 67,267 N/A
- ---------------------------------------------------------------------------------------------------------
SMALL CAP GROWTH FUND 131,573 27,728 7,949 N/A 47,312 71,525
- ---------------------------------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND N/A N/A N/A N/A 951,768 N/A
- ---------------------------------------------------------------------------------------------------------
SMALL CAP VALUE FUND 819,459 174,306 190,341 2,777,272 N/A 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.
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 Fund's Class
A, Class B, and Class C shares. Under the plan, Strong Investments, Inc. was
paid an annual rate of 0.25% of the average daily net assets of Class A shares
and 1.00% of the average daily net assets of Class B and Class C shares of the
Funds.
For the period ended April 30, 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 March 4, 2005, State Street served as fund accountant to the
Common Stock Fund. Prior to April 11, 2005, State Street served as fund
accountant for the Small Cap Value Fund. Fund accounting fees were paid by the
Funds' administrator and
91
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
not by the Funds. From April 11, 2005, to April 22, 2005, State Street served as
interim fund accountant for the Small Cap Value Fund and was entitled to receive
an annual asset based fee, a fixed fund accounting base fee, multiple class fee
and certain out-of-pocket expenses.
WAIVED FEES AND REIMBURSED EXPENSES
All amounts shown as waived fees or reimbursed expenses on the Statements
of Operations, for the period ended April 30, 2006, were waived by Funds
Management 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 during the period were as follows:
Administrator Institutional
Fund Class A Class B Class C Class D Class Z Class Class
- --------------------------------------------------------------------------------------------------------------
C&B MID CAP VALUE FUND 1.40% 2.15% 2.15% 1.25% N/A 1.15% 0.90%
- --------------------------------------------------------------------------------------------------------------
COMMON STOCK FUND 1.31% 2.06% 2.06% N/A 1.29% N/A N/A
- --------------------------------------------------------------------------------------------------------------
MID CAP GROWTH FUND 1.40% 2.15% 2.15% N/A 1.57% N/A N/A
- --------------------------------------------------------------------------------------------------------------
SMALL CAP GROWTH FUND 1.40% 2.15% 2.15% N/A 1.57% 1.20% 0.90%
- --------------------------------------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND N/A N/A N/A N/A N/A 1.20% N/A
- --------------------------------------------------------------------------------------------------------------
SMALL CAP VALUE FUND 1.44% 2.19% 2.19% N/A 1.36% N/A N/A
Prior to April 11, 2005, the Strong Funds' interim 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, the predecessor adviser, Strong Capital
Management, Inc. ("SCM"), had contractually agreed to waive fees and/or absorb
expenses in the amount of 0.033% for the Common Stock Fund and the Small Cap
Value Fund from May 21, 2004, to May 21, 2005. SCM and/or SISI had contractually
agreed to waive its fees and/or absorb expenses for Class B shares of the Common
Stock Fund until May 1, 2005, to keep total annual operating expenses at no more
than 2.50%. However, effective April 11, 2005, the funds are 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's
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) and U.S.
Government obligations for the period ended April 30, 2006, were as follows:
Fund Purchases at Cost Sales Proceeds
- --------------------------------------------------------------------------------
C&B MID CAP GROWTH FUND $ 105,642,070 $ 119,251,273
- --------------------------------------------------------------------------------
COMMON STOCK FUND 274,095,034 384,272,580
- --------------------------------------------------------------------------------
MID CAP GROWTH FUND 117,624,589 127,243,224
- --------------------------------------------------------------------------------
SMALL CAP GROWTH FUND 204,099,003 217,667,929
- --------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND 227,264,003 317,373,483
- --------------------------------------------------------------------------------
SMALL CAP VALUE FUND 538,090,964 487,672,612
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 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 April 30, 2006, there were no
borrowings by the Small and Mid Cap Stock Funds under either agreement.
92
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
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 also imposed fee
reductions across the predecessor fund complex (excluding money market funds and
very short-term income funds) totaling $35 million by May 2009. The 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.
93
WELLS FARGO ADVANTAGE SMALL AND MID CAP 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 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 None
63 (Chairman, since 2005) 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.
- ----------------------------------------------------------------------------------------------------------
Timothy J. Penny Trustee, since 1996 Senior Counselor to the None
54 public 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.
94
OTHER INFORMATION (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
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
47 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.
- ----------------------------------------------------------------------------------------------------------
Dorothy A. Peters Chief Compliance Chief Compliance Officer of None
44 Officer, since 2004 Wells Fargo Funds Management,
LLC since 2004, and from 1997
to 2002. In 2002 Ms. Peters
left Wells Fargo Funds
Management, LLC to pursue
personal goals.
- ----------------------------------------------------------------------------------------------------------
* 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 April 30, 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.
- --------------------------------------------------------------------------------
95
WELLS FARGO ADVANTAGE SMALL AND MID CAP 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 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
96
THIS PAGE IS INTENTIONALLY LEFT BLANK --
THIS PAGE IS INTENTIONALLY LEFT BLANK --
[LOGO]
WELLS ADVANTAGE
FARGO FUNDS
More information about WELLS FARGO ADVANTAGE FUNDS(SM) is available free upon
request. To obtain literature, please write, e-mail, visit the Funds' Web site,
or call:
WELLS FARGO ADVANTAGE FUNDS
P.O. Box 8266
Boston, MA 02266-8266
E-mail: wfaf@wellsfargo.com
Web site: www.wellsfargo.com/advantagefunds
Retail Investment Professionals: 1-888-877-9275
Institutional Investment Professionals: 1-866-765-0778
This report and the financial statements contained herein are submitted for the
general information of the shareholders of WELLS FARGO ADVANTAGE FUNDS. If this
report is used for promotional purposes, distribution of the report must be
accompanied or preceded by a current prospectus. For a prospectus containing
more complete information, including charges and expenses, call 1-800-222-8222
or visit the Funds'Web site at www.wellsfargo.com/advantagefunds. Please
consider the investment 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 - NO BANK GUARANTEE - MAY LOSE VALUE
-----------------------------------------------------
- --------------------------------------------------------------------------------
(C) 2006 Wells Fargo Funds Management, LLC. All rights reserved.
www.wellsfargo.com/advantagefunds
RT57199 06-06
SMCFLD/SAR122 04-06
[LOGO]
WELLS ADVANTAGE
FARGO FUNDS
APRIL 30, 2006
[GRAPHIC OMITTED]
Semi-Annual Report
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
Wells Fargo Advantage Discovery Fund(SM)
Wells Fargo Advantage Enterprise Fund(SM)
Wells Fargo Advantage Mid Cap Disciplined Fund
Wells Fargo Advantage Opportunity Fund(SM)
Wells Fargo Advantage Small Cap Disciplined Fund
Wells Fargo Advantage Small/Mid Cap Value Fund
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
Letter to Shareholders .................................................... 1
- --------------------------------------------------------------------------------
Performance Highlights
- --------------------------------------------------------------------------------
Discovery Fund ......................................................... 2
Enterprise Fund ........................................................ 4
Mid Cap Disciplined Fund ............................................... 6
Opportunity Fund ....................................................... 8
Small Cap Disciplined Fund ............................................. 10
Small/Mid Cap Value Fund ............................................... 12
Fund Expenses (Unaudited) ................................................. 14
- --------------------------------------------------------------------------------
Portfolio of Investments
- --------------------------------------------------------------------------------
Discovery Fund ......................................................... 16
Enterprise Fund ........................................................ 22
Mid Cap Disciplined Fund ............................................... 28
Opportunity Fund ....................................................... 34
Small Cap Disciplined Fund ............................................. 41
Small/Mid Cap Value Fund ............................................... 48
Financial Statements
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities ................................... 54
Statements of Operations ............................................... 56
Statements of Changes in Net Assets .................................... 58
Financial Highlights ................................................... 62
Notes to Financial Highlights ............................................. 66
- --------------------------------------------------------------------------------
Notes to Financial Statements ............................................. 67
- --------------------------------------------------------------------------------
Other Information (Unaudited) ............................................. 76
- --------------------------------------------------------------------------------
List of Abbreviations ..................................................... 78
- --------------------------------------------------------------------------------
-------------------------------------------------------
NOT FDIC INSURED-NO BANK GUARANTEE-MAY LOSE VALUE
-------------------------------------------------------
THIS PAGE IS INTENTIONALLY LEFT BLANK --
LETTER TO SHAREHOLDERS WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
DEAR VALUED SHAREHOLDER,
Enclosed please find the WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK
FUNDS semi-annual report for the period that ended April 30, 2006. On the
following pages, you will find a discussion of each Fund, including performance
highlights, information about the holdings in each Fund, and the portfolio
managers' strategic outlook.
ECONOMIC OVERVIEW
- --------------------------------------------------------------------------------
The U.S. economy continued to show signs of strength during the past six
months, even though real Gross Domestic Product (GDP) grew at a rate of only
1.7% for the fourth quarter of 2005. During the first quarter of 2006, economic
growth gained momentum and ended the quarter with a GDP growth rate of 5.3%. The
strong growth came despite continued interest rate hikes by the Federal Reserve
Board (the Fed). The Federal funds rate stood at 4.75% as of the end of April
2006.
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 slowed. Sluggish housing sales were seen in the condominium
markets and in regions of rapid price appreciation. Sales of single-family homes
held up well, but speculative demand for housing cooled. Business spending
remained strong through the first quarter of 2006, and in April commodity prices
continued their upward trend as the strong global economy steadily increased
demand for raw materials.
STOCKS REMAIN VIABLE
- --------------------------------------------------------------------------------
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.
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. Most 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, many equity market indices moved higher, and the S&P 500 Index
and the Dow Jones Industrial Average had the best first quarter results since
1999 and 2002, respectively. The NASDAQ Composite Index ended the first quarter
of 2006 at a five-year high.
Almost all equity markets continued to move higher in April. Value
outperformed growth within the U.S. equity markets, and most large cap stocks
slightly outperformed most small cap stocks. The energy and financial sectors
led the way in the value asset class. With the outlook for housing becoming less
optimistic, Real Estate Investment Trusts (REITs) became less attractive, and it
may become more and more difficult for this asset class to continue at the pace
it has set during the past five years.
LOOKING AHEAD
- --------------------------------------------------------------------------------
High-energy prices and rising interest rates may eventually slow investor
enthusiasm for stocks, and we may see long-term interest rates move higher,
though their increases could be restrained if inflation remains stable and
investor confidence stays steady. 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 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 most major asset
classes, 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
toward 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 SMALL AND MID CAP STOCK FUNDS PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE DISCOVERY FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The WELLS FARGO ADVANTAGE DISCOVERY FUND(SM) (the Fund) seeks long-term
capital appreciation.
ADVISER SUBADVISER
Wells Fargo Funds Management, LLC Wells Capital Management Incorporated
FUND MANAGERS FUND INCEPTION DATE
James M. Leach, CFA 12/31/1987
Thomas J. Pence, CFA
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Investor Class shares returned 18.20% 1 for the six-month
period that ended April 30, 2006, underperforming its benchmark, the Russell
2500(TM) Growth Index 2, which returned 19.11% during the same period. In
addition, the Fund outperformed the Russell Midcap(R) Growth Index 3, which
returned 15.18%, and underperformed the Russell 2000(R) Index 4, which returned
18.91%.
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 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.
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?
- --------------------------------------------------------------------------------
The Fund produced solid returns, but underperformed its benchmark. The
Fund's underweighted position in financial companies detracted from performance
during the period. We held the underweighted position in financials because we
believe that the current shape of the yield curve and the peak in the credit
cycle may prevent mid-sized banks and thrifts from producing attractive earnings
growth for a period of time. Instead, we directed the Fund's holdings toward
insurance firms, such as Endurance Specialty Holdings, Ltd., which may benefit
from improving pricing for reinsurance.
Conversely, good stock selection in health care, which was based on our
investment process of fundamental, bottom-up research helped Fund performance.
In particular, Digene Corporation, a company that produces diagnostic tests for
certain cancers, reported significant gains for the fourth quarter of 2005. The
strong earnings were driven by higher than expected gross margins, as the firm
recognized increased efficiencies in manufacturing and distribution facilities.
Holdings in the telecommunications services sector aided both absolute and
relative performance. The Fund primarily benefited from a meaningful overweighed
position in telecommunications companies; telecommunications was an area of
strength for the market. In particular, NII Holdings Inc., a digital wireless
provider concentrated in Latin America, reported that subscriber growth had more
than doubled during the fourth quarter of 2005 compared to a year ago.
WHAT CHANGES DID YOU MAKE TO THE FUND'S HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
We rebalanced the Fund's positions within the technology sector by adding
exposure to semiconductors with a position in Microsemi Corporation. This firm
continued to see strong market share gains within the industry. In addition, we
eliminated some of our holdings in the electronic equipment sector.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
We believe a period of strong returns may be coming to an end, and we
remain cautiously optimistic about the equity market in the near future. While
equity market valuations remain reasonable, we see few catalysts for driving
valuations higher because consumer and commercial default rates are at cyclical
lows, and this is combined with narrow credit spreads and rising long-term
interest rates. Although economic and profit growth rates appear to be solid, we
believe that earnings growth will likely slow from its growth rate in 2005 as we
enter the fourth year of an economic expansion. We remain vigilant about the
consumer portion of the economy, which has remained strong in the first part of
2006. We still do not know how much increased interest rates will curtail
mortgage equity withdrawals and what impact that will have on consumer spending.
With little expectation that valuations will rise meaningfully, we believe
that earnings growth will be the driver of market returns. We will continue to
focus on our investment process of identifying long-term growth opportunities in
both core growth as well as developing growth companies. We still believe that
there is potential for increased capital spending and hiring, but these projects
will be selective in the year ahead.
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. 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 April 30, 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 DISCOVERY 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.
2
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
6-Months* 1-Year 5-Year 10-Year
- ------------------------------------------------------------------------------------------------------------
Discovery Fund - Administrator Class (Incept. Date 04/11/2005) 18.31 37.53 10.58 8.63
- ------------------------------------------------------------------------------------------------------------
Discovery Fund - Investor Class (Incept. Date 12/31/1987) 18.20 37.08 10.51 8.60
- ------------------------------------------------------------------------------------------------------------
Benchmarks
- ------------------------------------------------------------------------------------------------------------
Russell 2500(TM) Growth Index 2 19.11 34.07 6.86 7.17
- ------------------------------------------------------------------------------------------------------------
Russell Midcap(R) Growth Index 3 15.18 28.27 5.77 8.92
- ------------------------------------------------------------------------------------------------------------
Russell 2000(R) Index 4 18.91 33.47 10.90 9.58
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FUND CHARACTERISTICS 5 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
Beta** 1.18
- --------------------------------------------------------------------------------
Price to Earnings (trailing 12 months) 42.70x
- --------------------------------------------------------------------------------
Price to Book Ratio 4.60x
- --------------------------------------------------------------------------------
Median Market Cap. ($B) $ 2.79
- --------------------------------------------------------------------------------
Portfolio Turnover*** 62%
** A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE RUSSELL 2500(TM)
GROWTH INDEX BETA IS 1.00 BY DEFINITION.
*** THIS MEASURE IS BASED ON SIX-MONTHS OF THE FUND'S ACTIVITY.
SECTOR DISTRIBUTION 5 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Telecommunication Services 5%
Consumer Discretionary 21%
Consumer Staples 2%
Energy 9%
Financials 2%
Health Care 23%
Industrials 8%
Information Technology 25%
Materials 5%
TEN LARGEST EQUITY HOLDINGS 5,6 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
NII Holdings Incorporated 3.41%
- --------------------------------------------------------------------------------
Hilton Hotels Corporation 2.61%
- --------------------------------------------------------------------------------
MEMC Electronic Materials Incorporated 2.22%
- --------------------------------------------------------------------------------
FormFactor Incorporated 2.16%
- --------------------------------------------------------------------------------
NutriSystem Incorporated 2.11%
- --------------------------------------------------------------------------------
Harrah's Entertainment Incorporated 2.09%
- --------------------------------------------------------------------------------
Grant Prideco Incorporated 2.06%
- --------------------------------------------------------------------------------
Cognizant Technology Solutions Corporation Class A 2.03%
- --------------------------------------------------------------------------------
Chesapeake Energy Corporation 2.00%
- --------------------------------------------------------------------------------
Precision Castparts Corporation 1.99%
GROWTH OF $10,000 INVESTMENT 7 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
WELLS FARGO ADVANTAGE
DISCOVERY FUND - Russell 2500(TM) Russell Midcap(R) Russell 2000(R)
Investor Class Growth Index Growth Index Index
--------------------- ----------------- ----------------- ---------------
4/30/1996 10,000 10,000 10,000 10,000
5/31/1996 10,308 10,357 10,204 10,394
6/30/1996 9,640 9,838 9,896 9,967
7/31/1996 8,795 8,860 9,128 9,097
8/31/1996 9,065 9,470 9,621 9,625
9/30/1996 9,551 9,973 10,232 10,001
10/31/1996 9,523 9,662 10,112 9,847
11/30/1996 10,009 10,016 10,708 10,253
12/31/1996 9,974 10,066 10,527 10,521
1/31/1997 10,197 10,367 10,993 10,732
2/28/1997 9,631 9,912 10,751 10,471
3/31/1997 8,963 9,260 10,144 9,977
4/30/1997 9,048 9,302 10,392 10,005
5/31/1997 10,043 10,417 11,323 11,118
6/30/1997 10,375 10,765 11,637 11,595
7/31/1997 11,226 11,448 12,750 12,134
8/31/1997 11,323 11,728 12,626 12,412
9/30/1997 12,078 12,556 13,265 13,320
10/31/1997 11,472 11,773 12,601 12,735
11/30/1997 11,443 11,592 12,733 12,653
12/31/1997 11,056 11,551 12,901 12,874
1/31/1998 10,952 11,400 12,668 12,671
2/28/1998 11,772 12,379 13,859 13,608
3/31/1998 12,311 12,838 14,440 14,169
4/30/1998 12,227 12,955 14,636 14,248
5/31/1998 11,668 12,123 14,034 13,480
6/30/1998 11,915 12,212 14,431 13,509
7/31/1998 11,362 11,303 13,813 12,415
8/31/1998 9,508 8,734 11,177 10,004
9/30/1998 9,840 9,500 12,022 10,787
10/31/1998 10,399 10,142 12,907 11,227
11/30/1998 10,920 10,863 13,778 11,815
12/31/1998 11,835 11,909 15,205 12,546
1/31/1999 11,920 12,253 15,661 12,713
2/28/1999 10,832 11,259 14,895 11,684
3/31/1999 10,655 11,783 15,725 11,866
4/30/1999 11,029 12,723 16,441 12,929
5/31/1999 11,103 12,855 16,230 13,118
6/30/1999 11,243 13,764 17,363 13,711
7/31/1999 10,689 13,483 16,810 13,335
8/31/1999 10,027 13,192 16,635 12,842
9/30/1999 9,906 13,286 16,493 12,844
10/31/1999 9,880 13,933 17,769 12,896
11/30/1999 10,722 15,578 19,609 13,666
12/31/1999 12,460 18,516 23,004 15,213
1/31/2000 11,945 18,413 23,000 14,969
2/29/2000 13,817 23,136 27,835 17,441
3/31/2000 13,890 21,321 27,863 16,291
4/30/2000 13,215 19,243 25,159 15,311
5/31/2000 13,369 17,530 23,325 14,418
6/30/2000 13,884 19,848 25,800 15,675
7/31/2000 14,171 18,221 24,166 15,171
8/31/2000 14,552 20,596 27,810 16,329
9/30/2000 13,804 19,264 26,451 15,849
10/31/2000 13,142 18,073 24,640 15,141
11/30/2000 12,052 14,630 19,286 13,587
12/31/2000 12,954 15,537 20,301 14,754
1/31/2001 13,840 16,543 21,461 15,522
2/28/2001 12,899 13,990 17,749 14,503
3/31/2001 12,591 12,443 15,209 13,794
4/30/2001 13,840 14,339 17,744 14,873
5/31/2001 13,776 14,754 17,660 15,239
6/30/2001 14,219 15,088 17,670 15,765
7/31/2001 13,421 13,976 16,478 14,912
8/31/2001 12,804 13,046 15,284 14,430
9/30/2001 11,532 11,003 12,758 12,487
10/31/2001 12,275 12,089 14,099 13,218
11/30/2001 12,939 13,133 15,617 14,242
12/31/2001 13,495 13,853 16,210 15,121
1/31/2002 13,431 13,261 15,684 14,963
2/28/2002 13,190 12,442 14,795 14,553
3/31/2002 14,063 13,445 15,924 15,723
4/30/2002 13,660 12,998 15,081 15,866
5/31/2002 13,594 12,343 14,631 15,162
6/30/2002 12,870 11,208 13,016 14,410
7/31/2002 11,966 9,816 11,752 12,233
8/31/2002 11,957 9,814 11,711 12,202
9/30/2002 11,275 9,072 10,780 11,326
10/31/2002 11,908 9,593 11,615 11,689
11/30/2002 12,500 10,485 12,525 12,732
12/31/2002 11,859 9,823 11,768 12,023
1/31/2003 11,521 9,608 11,652 11,691
2/28/2003 11,505 9,384 11,551 11,337
3/31/2003 11,653 9,508 11,766 11,483
4/30/2003 12,434 10,338 12,567 12,572
5/31/2003 13,306 11,433 13,777 13,921
6/30/2003 13,355 11,669 13,973 14,173
7/31/2003 14,326 12,446 14,472 15,060
8/31/2003 15,271 13,113 15,269 15,751
9/30/2003 14,745 12,832 14,973 15,460
10/31/2003 16,012 13,887 16,180 16,758
11/30/2003 16,250 14,357 16,613 17,353
12/31/2003 16,405 14,372 16,794 17,705
1/31/2004 17,021 14,971 17,349 18,474
2/29/2004 17,386 15,111 17,640 18,640
3/31/2004 17,187 15,163 17,606 18,813
4/30/2004 16,505 14,520 17,109 17,854
5/31/2004 16,838 14,822 17,513 18,138
6/30/2004 17,303 15,184 17,792 18,902
7/31/2004 15,940 13,995 16,613 17,629
8/31/2004 15,358 13,714 16,408 17,539
9/30/2004 16,513 14,332 17,021 18,362
10/31/2004 17,129 14,739 17,598 18,724
11/30/2004 18,436 15,717 18,507 20,348
12/31/2004 18,979 16,469 19,394 20,950
1/31/2005 18,186 15,889 18,875 20,076
2/28/2005 18,230 16,204 19,353 20,416
3/31/2005 17,797 15,757 19,070 19,832
4/30/2005 16,640 14,905 18,315 18,696
5/31/2005 18,121 15,898 19,364 19,919
6/30/2005 18,732 16,317 19,724 20,688
7/31/2005 19,908 17,376 20,874 21,999
8/31/2005 19,807 17,177 20,747 21,592
9/30/2005 20,381 17,344 21,015 21,659
10/31/2005 19,297 16,777 20,397 20,986
11/30/2005 20,066 17,714 21,504 22,004
12/31/2005 20,354 17,815 21,741 21,902
1/31/2006 21,875 19,164 23,043 23,867
2/28/2006 21,766 19,107 22,760 23,800
3/31/2006 22,432 19,922 23,395 24,954
4/30/2006 22,810 19,983 23,493 24,949
- --------------------------------------------------------------------------------
Performance shown for the Administrator Class shares of the WELLS FARGO
ADVANTAGE DISCOVERY FUND for periods prior to April 11, 2005, reflects the
performance of the Fund's Investor Class shares, and includes expenses that are
not applicable to and are higher than those of the Administrator Class
shares. The Investor Class shares annual returns are substantially similar to
what the Administrator Class shares returns would be because the shares are
invested in the same portfolio of securities and the annual returns differ only
to the extent that the classes do not have the same expenses. Performance shown
for the Investor Class shares of the WELLS FARGO ADVANTAGE DISCOVERY FUND for
periods prior to April 11, 2005, reflects the performance of the Investor Class
shares of the Strong Discovery Fund, its predecessor fund.
2 The Russell 2500(TM) Growth Index measures the performance of those Russell
2500 companies with higher price-to-book ratios and higher forecasted growth
values. You cannot invest directly in an Index. The Fund has selected the
Russell 2500(TM) Growth Index to replace the Russell 2000(R) Index and Russell
Midcap(R) Growth Index as its benchmark index going forward because the Russell
2500(TM) Growth Index is more representative of the breadth of the Fund's
holding.
3 The Russell Midcap(R) Growth Index measures the performance of those Russell
Midcap companies with higher price-to-book ratios and higher forecasted growth
values. The stocks are also members of the Russell 1000 Growth Index. You cannot
invest directly in an Index.
4 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 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.
6 The ten largest equity 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 DISCOVERY FUND
Investor Class shares for the most recent ten years with the Russell 2500(TM)
Growth Index, the Russell MidCap(R) Growth Index and the Russell 2000(R)
Index. The chart assumes a hypothetical investment of $10,000 in Investor Class
shares and reflects all operating expenses.
3
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE ENTERPRISE FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The WELLS FARGO ADVANTAGE ENTERPRISE FUND(SM) (the Fund) seeks long-term
capital appreciation.
ADVISER SUBADVISER
Wells Fargo Funds Management, LLC Wells Capital Management Incorporated
FUND MANAGERS FUND INCEPTION DATE
Sunjay Goel, CFA 09/30/1998
Thomas J. Pence, CFA
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Investor Class shares returned 19.74% 1 for the six-month
period that ended April 30, 2006, outperforming its benchmark, the Russell
Midcap(R) Growth Index 2, which returned 15.18%. In addition, the Fund
outperformed the Russell Midcap(R) Index 3, which returned 14.35% 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, ADVISOR CLASS, 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.
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?
- --------------------------------------------------------------------------------
The Fund outperformed its benchmark. The strong returns were led by
holdings within the health care and materials sectors. The Fund's underweighted
position in financial companies detracted from performance during the period.
Good stock selection in health care, which was based on our investment
process of fundamental, bottom-up research, helped Fund performance. In
particular, Gilead Sciences continued to produce solid gains during the period
due to increased acceptance of its HIV drugs, Viread and Truvada. Holdings in
the materials sector also aided Fund performance. Significant contributors in
materials included Glamis Gold Ltd. and Goldcorp Inc. This sector has benefited
from the increase in gold prices as well as increased production levels.
Conversely, the financial sector detracted from performance during the
period. The Fund was underweighted in this sector because we believe that the
current shape of the yield curve and the peak in the credit cycle may prevent
mid-sized banks and thrifts from producing attractive earnings growth for a
period of time. Instead, we directed the Fund's holdings toward insurance firms,
such as Endurance Specialty Holdings Ltd., which may benefit from improving
pricing for reinsurance.
WHAT CHANGES DID YOU MAKE TO THE FUND'S HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
We rebalanced the Fund's holdings within the consumer discretionary sector
by initiating a position in Hilton Hotels Corporation. The firm is benefiting
from the strong demand among business travelers. In addition, we eliminated
Marvel Entertainment Inc. within the leisure sector.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
We believe a period of strong returns may be coming to an end and we
remain cautiously optimistic about the equity market in the near future. While
equity market valuations remain reasonable, we see few catalysts for driving
valuations higher because consumer and commercial default rates are at cyclical
lows and this is combined with narrow credit spreads and rising long-term
interest rates. Although economic and profit growth rates appear to be solid, we
believe that earnings growth will likely slow from its growth rate in 2005 as we
enter the fourth year of an economic expansion. We remain vigilant about the
consumer portion of the economy, which has remained strong in the first part of
2006. We still do not know how much effect increased interest rates will curtail
mortgage equity withdrawals and what impact that will have on consumer spending.
With little expectation that valuations will rise meaningfully, we believe
that earnings growth will be the driver of market returns. We will continue to
focus on our investment process of identifying long-term growth opportunities in
both core growth as well as developing growth companies. We still believe that
there is potential for increased capital spending and hiring at the enterprise
level, but these projects will be selective in the year ahead.
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. 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 April 30, 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 ENTERPRISE 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. (CONTINUED)
4
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
6-Months* 1-Year 5-Year Life of Fund
- -----------------------------------------------------------------------------------------------------------------
Enterprise Fund - Administrator (Incept. Date 08/30/2002) 20.00 36.40 4.93 16.92
- -----------------------------------------------------------------------------------------------------------------
Enterprise Fund - Advisor Class (Incept. Date 02/24/2000) 19.83 36.12 4.66 16.60
- -----------------------------------------------------------------------------------------------------------------
Enterprise Fund - Institutional (Incept. Date 06/30/2003) 20.12 36.71 4.95 16.94
- -----------------------------------------------------------------------------------------------------------------
Enterprise Fund - Investor (Incept. Date 09/30/1998) 19.74 35.82 4.46 16.58
- -----------------------------------------------------------------------------------------------------------------
Benchmarks
- -----------------------------------------------------------------------------------------------------------------
Russell Midcap(R) Growth Index 2 15.18 28.27 5.77 9.24
- -----------------------------------------------------------------------------------------------------------------
Russell MidCap(R) Index 3 14.35 26.42 10.85 12.63
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FUND CHARACTERISTICS 4 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
Beta** 1.17
- --------------------------------------------------------------------------------
Price to Earnings (trailing 12 months) 36.20x
- --------------------------------------------------------------------------------
Price to Book Ratio 4.53x
- --------------------------------------------------------------------------------
Median Market Cap. ($B) $ 4.80
- --------------------------------------------------------------------------------
Portfolio Turnover*** 67%
** A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE RUSSELL
MIDCAP(R) GROWTH INDEX BETA IS 1.00 BY DEFINITION.
*** THIS MEASURE IS BASED ON SIX-MONTHS OF THE FUND'S ACTIVITY.
SECTOR DISTRIBUTION 4 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Telecommunication Services 4%
Consumer Discretionary 21%
Consumer Staples 3%
Energy 11%
Financials 3%
Health Care 19%
Industrials 7%
Information Technology 27%
Materials 5%
TEN LARGEST EQUITY HOLDINGS 4,5 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
NII Holdings Incorporated 3.09%
- --------------------------------------------------------------------------------
Marriott International Incorporated Class A 2.73%
- --------------------------------------------------------------------------------
Precision Castparts Corporation 2.53%
- --------------------------------------------------------------------------------
Hilton Hotels Corporation 2.42%
- --------------------------------------------------------------------------------
Grant Prideco Incorporated 2.37%
- --------------------------------------------------------------------------------
FormFactor Incorporated 2.07%
- --------------------------------------------------------------------------------
NutriSystem Incorporated 2.07%
- --------------------------------------------------------------------------------
Harrah's Entertainment Incorporated 2.04%
- --------------------------------------------------------------------------------
Todco Class A 2.01%
- --------------------------------------------------------------------------------
Cognizant Technology Solutions Corporation Class A 1.82%
GROWTH OF $10,000 INVESTMENT 6 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
WELLS FARGO ADVANTAGE
ENTERPRISE FUND - Russell Midcap(R) Russell Midcap(R)
Investor Class Growth Index Index
--------------------- ----------------- -----------------
9/30/1998 10,000 10,000 10,000
10/31/1998 11,170 10,736 10,682
11/30/1998 12,620 11,460 11,188
12/31/1998 14,743 12,647 11,844
1/31/1999 17,004 13,027 11,823
2/28/1999 15,553 12,389 11,430
3/31/1999 17,255 13,079 11,788
4/30/1999 18,593 13,675 12,659
5/31/1999 18,177 13,500 12,623
6/30/1999 20,732 14,442 13,068
7/31/1999 21,077 13,982 12,709
8/31/1999 22,972 13,837 12,380
9/30/1999 24,777 13,719 11,945
10/31/1999 28,305 14,780 12,511
11/30/1999 33,860 16,310 12,871
12/31/1999 42,436 19,135 14,003
1/31/2000 43,280 19,131 13,540
2/29/2000 54,743 23,153 14,580
3/31/2000 48,127 23,176 15,415
4/30/2000 40,882 20,927 14,686
5/31/2000 33,360 19,401 14,297
6/30/2000 40,378 21,460 14,720
7/31/2000 38,001 20,101 14,555
8/31/2000 44,114 23,132 15,950
9/30/2000 39,360 22,001 15,722
10/31/2000 33,309 20,496 15,479
11/30/2000 26,764 16,042 14,086
12/31/2000 29,801 16,886 15,158
1/31/2001 30,988 17,851 15,402
2/28/2001 26,439 14,763 14,465
3/31/2001 23,435 12,651 13,567
4/30/2001 25,715 14,759 14,728
5/31/2001 25,557 14,690 15,002
6/30/2001 25,694 14,697 14,861
7/31/2001 24,360 13,706 14,436
8/31/2001 22,742 12,713 13,881
9/30/2001 19,916 10,612 12,207
10/31/2001 21,292 11,727 12,690
11/30/2001 22,784 12,990 13,753
12/31/2001 23,257 13,484 14,306
1/31/2002 22,574 13,046 14,220
2/28/2002 20,883 12,306 14,070
3/31/2002 22,794 13,245 14,913
4/30/2002 21,818 12,544 14,624
5/31/2002 21,103 12,170 14,459
6/30/2002 19,843 10,827 13,489
7/31/2002 17,395 9,775 12,173
8/31/2002 17,143 9,741 12,240
9/30/2002 16,639 8,967 11,110
10/31/2002 17,511 9,662 11,672
11/30/2002 18,015 10,418 12,482
12/31/2002 16,702 9,788 11,990
1/31/2003 16,219 9,692 11,748
2/28/2003 16,250 9,608 11,592
3/31/2003 16,513 9,787 11,707
4/30/2003 17,815 10,453 12,557
5/31/2003 19,307 11,459 13,706
6/30/2003 19,265 11,623 13,845
7/31/2003 20,389 12,038 14,301
8/31/2003 21,807 12,701 14,922
9/30/2003 21,051 12,455 14,735
10/31/2003 22,700 13,458 15,860
11/30/2003 22,879 13,818 16,305
12/31/2003 22,879 13,969 16,794
1/31/2004 24,034 14,430 17,282
2/29/2004 24,276 14,673 17,654
3/31/2004 23,918 14,645 17,657
4/30/2004 22,752 14,231 17,009
5/31/2004 23,383 14,567 17,431
6/30/2004 24,087 14,799 17,913
7/31/2004 22,133 13,819 17,130
8/31/2004 21,355 13,648 17,204
9/30/2004 22,731 14,158 17,763
10/31/2004 23,677 14,638 18,253
11/30/2004 25,221 15,394 19,365
12/31/2004 26,208 16,132 20,189
1/31/2005 25,284 15,700 19,689
2/28/2005 25,326 16,097 20,297
3/31/2005 24,979 15,862 20,138
4/30/2005 23,551 15,234 19,496
5/31/2005 25,463 16,107 20,430
6/30/2005 26,208 16,406 20,980
7/31/2005 27,711 17,363 22,085
8/31/2005 27,395 17,257 21,931
9/30/2005 28,026 17,480 22,222
10/31/2005 26,713 16,966 21,556
11/30/2005 27,942 17,887 22,513
12/31/2005 28,467 18,084 22,745
1/31/2006 30,662 19,167 23,914
2/28/2006 30,620 18,931 23,885
3/31/2006 31,356 19,459 24,477
4/30/2006 31,986 19,541 24,649
- --------------------------------------------------------------------------------
Performance shown for the Administrator Class shares of the WELLS FARGO
ADVANTAGE ENTERPRISE FUND for periods prior to April 11, 2005, reflects the
performance of the Class K shares of the Strong Enterprise Fund, its predecessor
fund, and for periods prior to August 30, 2002, reflects the performance of the
Investor Class shares of the Strong Enterprise Fund. Performance shown for the
Advisor Class shares of the WELLS FARGO ADVANTAGE ENTERPRISE FUND for periods
prior to April 11, 2005, reflects the performance of the Advisor Class shares of
the Strong Enterprise Fund, its predecessor fund, and for periods prior to
February 24, 2000, reflects the performance of the Investor Class shares of the
Strong Enterprise Fund adjusted to reflect Advisor Class expenses. Performance
shown for the Institutional Class shares of the WELLS FARGO ADVANTAGE ENTERPRISE
FUND for periods prior to April 11, 2005, reflects the performance of the
Institutional Class shares of the Strong Enterprise Fund, its predecessor fund,
and for periods prior to June 30, 2003, reflects the performance of the Investor
Class shares of the Strong Enterprise Fund. Performance shown for the Investor
Class shares of the WELLS FARGO ADVANTAGE ENTERPRISE FUND for periods prior to
April 11, 2005, reflects the performance of the Investor Class shares of the
Strong Enterprise Fund, its predecessor fund.
2 The Russell Midcap(R) Growth Index measures the performance of those Russell
Midcap companies with higher price-to-book ratios and higher forecasted growth
values. The stocks are also members of the Russell 1000 Growth Index. You cannot
invest directly in an Index. The Fund has selected the Russell Midcap(R) Growth
Index to replace the Russell Midcap(R) Index as its benchmark index going
forward because the Russell Midcap(R) Growth Index is more representative of the
breadth of the Fund's holding.
3 The Russell Midcap(R) Index measures the performance of the 800 smallest
companies in the Russell 1000 Index, which represent approximately 25% of the
total market capitalization of the Russell 1000 Index. You cannot invest
directly in an Index.
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 securities divided by total market value of the Fund.
6 The chart compares the performance of the WELLS FARGO ADVANTAGE ENTERPRISE
FUND Investor Class shares for the life of the Fund with the Russell Midcap(R)
Growth Index and the Russell Midcap(R) Index. The chart assumes a hypothetical
investment of $10,000 in Investor Class shares and reflects all operating
expenses.
5
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE MID CAP DISCIPLINED FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The Wells Fargo Advantage Mid Cap Disciplined Fund (the Fund) seeks
long-term capital appreciation.
ADVISER SUBADVISER
Wells Fargo Funds Management, LLC Wells Capital Management Incorporated
FUND MANAGER FUND INCEPTION DATE
Robert J.Costomiris, CFA 12/31/1998
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Investor Class shares returned 10.78% 1 for the six-month
period that ended April 30, 2006, underperforming its benchmark, the Russell
Midcap(R) Value Index 2, which returned 13.58%. In addition, the Fund
underperformed the Russell Midcap(R) Index 3, which returned 14.35% 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, 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.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
The Fund's underperformance was primarily attributed to its holdings in
the consumer discretionary sector, particularly in media. For example, Westwood
One's stock price declined after its advertising revenue slowed. Westwood One is
America's largest radio network and includes over 5,000 stations.
On the positive side, the Fund's holdings in the utility and health care
sectors added value. KeySpan Corporation is an example of a utility stock that
helped performance during the period. KeySpan was acquired by National Grid in
February 2006. Albertson's and Placer Dome were also acquired and aided
performance. Albertson's was acquired by a consortium of investors led by
Cerberus Capital Management, while Placer Dome was acquired by Barrick Gold.
Both the Fund and the Russell Midcap Value Index had positive performance
for the period, continuing the trend of above-average returns for the mid-cap
equity markets. For both the trailing one-year and three-year time periods, the
Russell Midcap(R) Index was up more than 25% annually. The mid cap market was
led higher by the material and industrial stocks that have benefited from a
growing global economy. In contrast, health care and utility stocks fell behind
in the index.
WHAT CHANGES DID YOU MAKE TO THE FUND'S HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
Our investment strategy focuses on seeking returns while minimizing
downside risk. During the past six months, we adjusted the Fund's portfolio to
capture profits and take advantage of investment opportunities. We increased the
Fund's holdings in utility and consumer staple stocks. Both of these sectors
trailed the general market during the last six months. Within utilities, we
established a new position in PNM Resources. Within consumer staples, we
increased our holdings by adding Tyson Foods and Tootsie Roll Industries. These
positions were funded by selling securities that had appreciated and had reached
their target sell price. In energy, we trimmed oil service positions FMC
Technology and Cameron (formerly Cooper Cameron). We also cut back on the Fund's
holdings in financials.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
We like to find companies that have solid assets, manageable debt,
credible management teams, and attractive prices. The companies we target are
often temporarily out of favor with the market and may have lower stock prices.
We believe that our disciplined investment process and risk management focus are
well suited for the current economic environment.
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. 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 April 30, 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 MID CAP DISCIPLINED 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. (CONTINUED)
6
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
6-Months* 1-Year 5-Year Life of Fund
- -----------------------------------------------------------------------------------------------------------------
Mid Cap Disciplined Fund - Administrator (Incept. Date 04/11/2005) 10.84 22.49 14.99 17.52
- -----------------------------------------------------------------------------------------------------------------
Mid Cap Disciplined Fund - Institutional (Incept. Date 04/11/2005) 11.04 22.87 15.06 17.57
- -----------------------------------------------------------------------------------------------------------------
Mid Cap Disciplined Fund - Investor (Incept. Date 12/31/1998) 10.78 22.31 14.95 17.49
- -----------------------------------------------------------------------------------------------------------------
Benchmarks
- -----------------------------------------------------------------------------------------------------------------
Russell Midcap(R) Value Index 2 13.58 24.75 13.69 12.03
- -----------------------------------------------------------------------------------------------------------------
Russell MidCap(R) Index 3 14.35 26.42 10.85 10.51
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FUND CHARACTERISTICS 4 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
Beta** 0.78
- --------------------------------------------------------------------------------
Price to Earnings (trailing 12 months) 25.00x
- --------------------------------------------------------------------------------
Price to Book Ratio 1.88x
- --------------------------------------------------------------------------------
Median Market Cap. ($B) $ 6.56
- --------------------------------------------------------------------------------
Portfolio Turnover*** 52%
- --------------------------------------------------------------------------------
** A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE RUSSELL
MIDCAP(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 APRIL 30, 2006)
- --------------------------------------------------------------------------------
THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN PRINTED MATERIAL
Utilities 10%
Consumer Discretionary 22%
Consumer Staples 25%
Energy 9%
Financials 4%
Industrials 8%
Information Technology 8%
Materials 14%
TEN LARGEST EQUITY HOLDINGS 4,5 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
Barrick Gold Corporation 5.94%
- --------------------------------------------------------------------------------
KeySpan Corporation 5.35%
- --------------------------------------------------------------------------------
Del Monte Foods Company 4.93%
- --------------------------------------------------------------------------------
Kroger Company 4.89%
- --------------------------------------------------------------------------------
Hanover Compressor Company 4.87%
- --------------------------------------------------------------------------------
Albertson's Incorporated 4.30%
- --------------------------------------------------------------------------------
Reader's Digest Association Incorporated 4.18%
- --------------------------------------------------------------------------------
Waste Management Incorporated 4.05%
- --------------------------------------------------------------------------------
Hercules Incorporated 3.75%
- --------------------------------------------------------------------------------
Raytheon Company 3.68%
GROWTH OF $10,000 INVESTMENT 6 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN PRINTED MATERIAL
WELLS FARGO ADVANTAGE MID
CAP DISCIPLINED FUND - Russell Midcap(R)
Investor Class Value Index Russell Midcap(R) Index
------------------------- ------------------ -----------------------
12/31/1998 10,000 10,000 10,000
1/31/1999 10,470 9,767 9,983
2/28/1999 10,140 9,552 9,651
3/31/1999 11,740 9,689 9,953
4/30/1999 12,640 10,606 10,688
5/31/1999 12,640 10,651 10,658
6/30/1999 12,880 10,772 11,034
7/31/1999 12,660 10,502 10,731
8/31/1999 11,670 10,139 10,453
9/30/1999 11,420 9,626 10,085
10/31/1999 11,640 9,910 10,563
11/30/1999 12,210 9,728 10,867
12/31/1999 13,520 9,989 11,823
1/31/2000 13,360 9,392 11,432
2/29/2000 14,210 8,999 12,311
3/31/2000 15,580 10,090 13,016
4/30/2000 15,110 10,130 12,400
5/31/2000 14,840 10,304 12,071
6/30/2000 14,920 9,920 12,428
7/31/2000 14,870 10,152 12,289
8/31/2000 15,610 10,774 13,467
9/30/2000 15,200 10,878 13,275
10/31/2000 15,770 11,084 13,070
11/30/2000 15,080 10,940 11,893
12/31/2000 16,603 11,905 12,799
1/31/2001 16,956 11,862 13,005
2/28/2001 15,692 11,811 12,213
3/31/2001 14,878 11,484 11,455
4/30/2001 16,238 12,116 12,435
5/31/2001 17,074 12,460 12,667
6/30/2001 17,245 12,294 12,548
7/31/2001 17,406 12,244 12,188
8/31/2001 17,395 12,021 11,720
9/30/2001 15,060 10,874 10,306
10/31/2001 15,617 10,932 10,715
11/30/2001 17,213 11,697 11,612
12/31/2001 18,663 12,182 12,079
1/31/2002 18,674 12,305 12,007
2/28/2002 18,588 12,505 11,879
3/31/2002 20,099 13,144 12,592
4/30/2002 19,328 13,135 12,347
5/31/2002 19,060 13,115 12,208
6/30/2002 18,213 12,530 11,389
7/31/2002 16,092 11,303 10,278
8/31/2002 16,413 11,435 10,334
9/30/2002 15,128 10,280 9,381
10/31/2002 15,781 10,607 9,855
11/30/2002 16,896 11,275 10,539
12/31/2002 16,465 11,007 10,124
1/31/2003 16,243 10,702 9,919
2/28/2003 15,390 10,524 9,788
3/31/2003 15,511 10,560 9,884
4/30/2003 16,809 11,363 10,602
5/31/2003 18,583 12,364 11,573
6/30/2003 18,882 12,450 11,690
7/31/2003 19,858 12,837 12,075
8/31/2003 20,712 13,293 12,599
9/30/2003 20,578 13,189 12,441
10/31/2003 21,277 14,158 13,391
11/30/2003 21,920 14,568 13,767
12/31/2003 23,160 15,197 14,179
1/31/2004 23,839 15,598 14,591
2/29/2004 24,691 15,983 14,905
3/31/2004 24,941 16,009 14,909
4/30/2004 24,977 15,332 14,361
5/31/2004 25,038 15,725 14,718
6/30/2004 25,645 16,286 15,125
7/31/2004 25,147 15,845 14,463
8/31/2004 25,402 16,100 14,526
9/30/2004 25,912 16,569 14,998
10/31/2004 26,009 16,952 15,411
11/30/2004 26,992 18,098 16,350
12/31/2004 28,066 18,799 17,046
1/31/2005 27,602 18,361 16,624
2/28/2005 28,179 19,002 17,138
3/31/2005 27,661 18,945 17,003
4/30/2005 26,648 18,445 16,461
5/31/2005 27,737 19,208 17,250
6/30/2005 28,345 19,836 17,714
7/31/2005 29,168 20,780 18,647
8/31/2005 29,320 20,618 18,517
9/30/2005 30,144 20,898 18,763
10/31/2005 29,422 20,259 18,200
11/30/2005 29,928 20,974 19,008
12/31/2005 30,289 21,177 19,204
1/31/2006 31,648 22,097 20,191
2/28/2006 31,441 22,306 20,167
3/31/2006 32,121 22,793 20,667
4/30/2006 32,593 23,012 20,811
- --------------------------------------------------------------------------------
Performance shown for the Administrator Class shares of the WELLS FARGO
ADVANTAGE MID CAP DISCIPLINED FUND for periods prior to April 11, 2005, reflects
the performance of the Fund's Investor Class shares, and includes expenses that
are not applicable to and are higher than those of the Administrator Class
shares. The Investor Class shares annual returns are substantially similar to
what the Administrator Class shares returns would be because the shares are
invested in the same portfolio of securities and the annual returns differ only
to the extent that the classes do not have the same expenses. Performance shown
for the Institutional Class shares of the WELLS FARGO ADVANTAGE MID CAP
DISCIPLINED FUND for periods prior to April 11, 2005, reflects the performance
of the Fund's Investor Class shares, and includes expenses that are not
applicable to and are higher than those of the Institutional Class shares. The
Investor Class shares annual returns are substantially similar to what the
Institutional Class shares returns would be because the shares are invested in
the same portfolio of securities and the annual returns differ only to the
extent that the classes do not have the same expenses. Performance shown for the
Investor Class shares of the WELLS FARGO ADVANTAGE MID CAP DISCIPLINED FUND for
periods prior to April 11, 2005, reflects the performance of the Investor Class
shares of the Strong Mid Cap Disciplined Fund, its predecessor fund.
2 The Russell Midcap(R) Value Index measures the performance of those Russell
Midcap companies with lower price-to-book ratios and lower forecasted growth
values. The stocks are also members of the Russell 1000 Value Index. You cannot
invest directly in an Index. The Fund has selected the Russell Midcap(R) Value
Index to replace the Russell Midcap(R) Index as its benchmark index going
forward because the Russell Midcap(R) Value Index is more representative of the
breadth of the Fund's holding.
3 The Russell Midcap(R) Index measures the performance of the 800 smallest
companies in the Russell 1000 Index, which represent approximately 25% of the
total market capitalization of the Russell 1000 Index. You cannot invest
directly in an Index.
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 securities divided by total market value of the Fund.
6 The chart compares the performance of the WELLS FARGO ADVANTAGE MID CAP
DISCIPLINED FUND Investor Class shares for the life of the Fund with the Russell
Midcap(R) Value Index and the Russell Midcap(R) Index. The chart assumes a
hypothetical investment of $10,000 in Investor Class shares and reflects all
operating expenses.
7
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE OPPORTUNITY FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The WELLS FARGO ADVANTAGE OPPORTUNITY FUND(SM) (the Fund) seeks long-term
capital appreciation.
ADVISER SUBADVISER
Wells Fargo Funds Management, LLC Wells Capital Management Incorporated
FUND MANAGERS FUND INCEPTION DATE
Ann M. Miletti 12/31/1985
Richard T. Weiss
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Investor Class shares returned 13.32% 1 for the six-month
period that ended April 30, 2006, underperforming its benchmark, the Russell
Midcap(R) Index 2, which returned 14.35% 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, ADVISOR 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.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
The market continued its upward move during the period, though the
performance was somewhat divided with the small cap indices generally
outperforming the large cap indices. The market remained resilient as general
economic activity stayed strong and fears of inflation failed to materialize,
despite commodity prices rising to new highs. Due to the strength in the
economy, the Federal Reserve Board (the Fed) continued to raise the Federal
funds rate during the period, and we believe that the Fed may continue to raise
interest rates further, possibly to 5.25% by June 2006.
Holdings within the cyclical sector of the Fund contributed the most
toward the relative underperformance. Cyclicals were the strongest performers
within the Russell Midcap Index, and part of the Fund's underperformance was due
to its underweighted position within cyclicals. The remainder of the
underperformance came from stock selection. In addition, holdings within the
stable growth sector of the Fund underperformed largely due to media companies
that were more reliant on advertisement revenues, such as CNET Networks,
Interpublic Group, and Tribune Company. Media continues to struggle as the
market tries to understand consumer behavior in this rapidly changing area.
Holdings within the energy sector of the Fund were strong due to
advantageous equity selection in the oil services sector. Weatherford,
GlobalSantaFe, Transocean, and ENSCO contributed positively to Fund performance
because they all were positioned in the offshore and international energy
markets. These markets were aided by continued strong crude oil prices and were
not significantly affected by depressed North American natural gas prices. In
addition, holdings within the interest sensitive sector contributed positively
to the relative performance of the Fund due to the Fund's underweighted position
relative to the benchmark. The interest sensitive sector was among the weaker
performing sectors within the Russell Midcap Index, so the Fund's underweighted
position helped performance.
WHAT CHANGES DID YOU MAKE TO THE FUND'S HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
Our methodology includes buying stocks that we believe are selling at a
discount to their intrinsic private market value and selling stocks that
approach their private market value. This discipline allows us to be patient
with stocks that are out of favor with the market, which seems to be the
exception as the market becomes more focused on the short term rather than the
long term. Consequently, the Fund was overweighted in the energy and
distribution sectors and underweighted in the interest sensitive sector. The
Fund was underweighted to a lesser extent in the cyclical and health care
sectors. The Fund began the period with a relatively large cash position that
was reinvested incrementally. Additions were made in the areas of distribution,
stable growth, and technology. The remaining sector weightings were fairly
consistent from the beginning to the end of the period.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
The stock market was strong during the past six months as the economy
rebounded in the first quarter of 2006 from a slow fourth quarter in 2005. There
were some signs of slowing within the housing sector and consumer spending, but
production remains strong, especially in machinery and equipment manufacturing.
A strong global economy, led by China, has helped cyclical stocks outperform,
but it has also kept energy and other commodity prices at record high levels. We
are watching core inflation levels because the Fed may continue to raise
interest rates if it thinks that inflation is gaining momentum. So far, higher
commodity prices have not translated to higher inflation. We will continue to
focus on individual companies with low valuations, and we remain optimistic that
our time-tested approach will guide Fund performance over time.
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. 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 April 30, 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 OPPORTUNITY FUND.
8
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
6-Months* 1-Year 5-Year 10-Years
- -------------------------------------------------------------------------------------------------------------
Opportunity Fund - Administrator (Incept. Date 08/30/2002) 13.47 23.65 5.20 11.32
- -------------------------------------------------------------------------------------------------------------
Opportunity Fund - Advisor (Incept. Date 02/24/2000) 13.33 23.43 4.87 10.97
- -------------------------------------------------------------------------------------------------------------
Opportunity Fund - Investor (Incept. Date 12/31/1985) 13.32 23.39 5.03 11.23
- -------------------------------------------------------------------------------------------------------------
Benchmark
- -------------------------------------------------------------------------------------------------------------
Russell Midcap(R) Index 2 14.35 26.42 10.85 12.43
- -------------------------------------------------------------------------------------------------------------
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FUND CHARACTERISTICS 3 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
Beta** 0.96
- --------------------------------------------------------------------------------
Price to Earnings (trailing 12 months) 26.30x
- --------------------------------------------------------------------------------
Price to Book Ratio 2.57x
- --------------------------------------------------------------------------------
Median Market Cap. ($B) $ 8.51
- --------------------------------------------------------------------------------
Portfolio Turnover*** 17%
- --------------------------------------------------------------------------------
** A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE RUSSELL
MIDCAP(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 APRIL 30, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Telecommunication Services 2%
Utilities 1%
Consumer Discretionary 33%
Consumer Staples 2%
Energy 14%
Financials 9%
Health Care 8%
Industrials 8%
Information Technology 18%
Materials 5%
TEN LARGEST EQUITY HOLDINGS 3, 4 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
Weatherford International Limited 3.47%
- --------------------------------------------------------------------------------
Red Hat Incorporated 2.45%
- --------------------------------------------------------------------------------
GlobalSantaFe Corporation 2.16%
- --------------------------------------------------------------------------------
Apache Corporation 2.08%
- --------------------------------------------------------------------------------
Molex Incorporated Class A 2.07%
- --------------------------------------------------------------------------------
Praxair Incorporated 2.04%
- --------------------------------------------------------------------------------
Automation Incorporated 1.93%
- --------------------------------------------------------------------------------
Hunt J.B. Transport Services Incorporated 1.86%
- --------------------------------------------------------------------------------
Transocean Incorporated 1.80%
- --------------------------------------------------------------------------------
Nordstrom Incorporated 1.75%
GROWTH OF $10,000 INVESTMENT 5 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
WELLS FARGO ADVANTAGE
OPPORTUNITY FUND -
Investor Class Russell Midcap(R) Index
--------------------- -----------------------
4/30/1996 10,000 10,000
5/31/1996 10,061 10,151
6/30/1996 9,844 9,999
7/31/1996 9,259 9,380
8/31/1996 9,599 9,826
9/30/1996 9,921 10,312
10/31/1996 10,089 10,394
11/30/1996 10,799 11,028
12/31/1996 10,808 10,915
1/31/1997 10,934 11,323
2/28/1997 10,854 11,306
3/31/1997 10,600 10,826
4/30/1997 10,890 11,095
5/31/1997 11,634 11,905
6/30/1997 11,846 12,294
7/31/1997 12,844 13,320
8/31/1997 12,894 13,175
9/30/1997 13,604 13,927
10/31/1997 13,144 13,385
11/30/1997 13,166 13,704
12/31/1997 13,342 14,081
1/31/1998 13,303 13,816
2/28/1998 14,377 14,896
3/31/1998 15,226 15,603
4/30/1998 15,553 15,642
5/31/1998 15,039 15,158
6/30/1998 15,263 15,368
7/31/1998 14,764 14,635
8/31/1998 12,270 12,294
9/30/1998 13,114 13,089
10/31/1998 14,295 13,982
11/30/1998 14,742 14,644
12/31/1998 15,409 15,503
1/31/1999 15,812 15,476
2/28/1999 15,313 14,961
3/31/1999 15,881 15,430
4/30/1999 17,301 16,570
5/31/1999 17,478 16,522
6/30/1999 18,321 17,105
7/31/1999 18,404 16,636
8/31/1999 17,683 16,205
9/30/1999 17,527 15,635
10/31/1999 18,564 16,376
11/30/1999 19,218 16,847
12/31/1999 20,554 18,329
1/31/2000 19,937 17,723
2/29/2000 20,098 19,085
3/31/2000 22,173 20,178
4/30/2000 21,846 19,223
5/31/2000 22,136 18,714
6/30/2000 21,616 19,267
7/31/2000 21,381 19,051
8/31/2000 22,752 20,877
9/30/2000 21,929 20,579
10/31/2000 22,150 20,262
11/30/2000 20,765 18,438
12/31/2000 22,316 19,841
1/31/2001 23,539 20,161
2/28/2001 22,226 18,934
3/31/2001 21,130 17,759
4/30/2001 22,669 19,278
5/31/2001 22,811 19,637
6/30/2001 22,237 19,452
7/31/2001 21,931 18,895
8/31/2001 20,619 18,169
9/30/2001 17,769 15,978
10/31/2001 18,796 16,611
11/30/2001 20,456 18,002
12/31/2001 21,244 18,725
1/31/2002 20,925 18,614
2/28/2002 20,428 18,416
3/31/2002 21,445 19,520
4/30/2002 20,325 19,142
5/31/2002 20,158 18,926
6/30/2002 17,887 17,657
7/31/2002 15,881 15,934
8/31/2002 15,940 16,021
9/30/2002 14,215 14,543
10/31/2002 15,064 15,278
11/30/2002 16,697 16,338
12/31/2002 15,518 15,695
1/31/2003 15,113 15,377
2/28/2003 15,021 15,174
3/31/2003 14,848 15,323
4/30/2003 16,183 16,436
5/31/2003 17,854 17,941
6/30/2003 18,027 18,122
7/31/2003 18,617 18,719
8/31/2003 19,471 19,532
9/30/2003 19,082 19,287
10/31/2003 20,152 20,760
11/30/2003 20,531 21,342
12/31/2003 21,331 21,982
1/31/2004 22,174 22,620
2/29/2004 22,558 23,108
3/31/2004 22,391 23,112
4/30/2004 22,083 22,264
5/31/2004 22,504 22,816
6/30/2004 23,067 23,447
7/31/2004 22,266 22,422
8/31/2004 21,866 22,519
9/30/2004 22,726 23,250
10/31/2004 23,115 23,891
11/30/2004 24,354 25,347
12/31/2004 25,089 26,426
1/31/2005 24,381 25,772
2/28/2005 24,662 26,568
3/31/2005 24,337 26,359
4/30/2005 23,483 25,519
5/31/2005 24,700 26,742
6/30/2005 25,240 27,461
7/31/2005 26,711 28,908
8/31/2005 26,403 28,706
9/30/2005 26,370 29,087
10/31/2005 25,570 28,215
11/30/2005 26,635 29,468
12/31/2005 26,901 29,771
1/31/2006 28,238 31,301
2/28/2006 27,843 31,264
3/31/2006 28,238 32,039
4/30/2006 28,976 32,263
- --------------------------------------------------------------------------------
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 Administrator Class shares of the WELLS FARGO
ADVANTAGE OPPORTUNITY FUND for periods prior to April 11, 2005, reflects the
performance of the Class K shares of the Strong Opportunity Fund, its
predecessor fund, and for periods prior to August 30, 2002, reflects the
performance of the Investor Class shares of the Strong Opportunity Fund.
Performance shown for the Advisor Class shares of the WELLS FARGO ADVANTAGE
OPPORTUNITY FUND for periods prior to April 11, 2005, reflects the performance
of the Advisor Class shares of the Strong Opportunity Fund, its predecessor
fund, and for periods prior to February 24, 2000, reflects the performance of
the Investor Class shares of the Strong Opportunity Fund adjusted to reflect
Advisor Class expenses. Performance shown for the Investor Class shares of the
WELLS FARGO ADVANTAGE OPPORTUNITY FUND for periods prior to April 11, 2005,
reflects the performance of the Investor Class shares of the Strong Opportunity
Fund, its predecessor fund.
2 The Russell Midcap(R) Index measures the performance of the 800 smallest
companies in the Russell 1000 Index, which represent approximately 25% of the
total market capitalization of the Russell 1000 Index. You cannot invest
directly in an Index.
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 securities divided by total market value of the Fund.
5 The chart compares the performance of the WELLS FARGO ADVANTAGE OPPORTUNITY
FUND Investor Class shares for the most recent ten years with the Russell
Midcap(R) Index. The chart assumes a hypothetical investment of $10,000 in
Investor Class shares and reflects all operating expenses.
9
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE SMALL CAP DISCIPLINED FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The WELLS FARGO ADVANTAGE SMALL CAP DISCIPLINED FUND (the Fund) seeks
long-term capital appreciation.
ADVISER SUBADVISER
Wells Fargo Funds Management, LLC Wells Capital Management Incorporated
FUND MANAGER FUND INCEPTION DATE
Robert J. Costomiris, CFA 03/28/2002
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Investor Class shares returned 17.35% 1 for the six-month
period that ended April 30, 2006, underperforming its benchmark, the Russell
2000(R) Value Index 2, which returned 17.52%. In addition, the Fund
underperformed the Russell 2000(R) Index 3, which returned 18.91% 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. 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, 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.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
Stock selection was important to the Fund's performance. While the Fund
modestly underperformed its benchmark, it had solid returns. The Fund's position
in media stocks had a negative impact on performance and were the primary cause
of the Fund slightly underperforming its benchmark. Specifically, several of the
Fund's holdings in the radio group disappointed investors and their stock prices
fell during the last six months. Investors continue to underappreciate media
stocks as business models change in the face of increasing competition.
On the positive side, FMC Technologies and Hanover Compressor (oil service
companies) both performed well. The Fund has owned FMC Technologies in the past,
while Hanover is a more recent addition. In the health care sector, Diversa
Corporation added to Fund performance. Diversa is a biotechnology company whose
enzymes improve the production efficiency of ethanol. Casella Waste Systems, a
long-standing position, performed well as fundamentals improved. Several of the
Fund's top technology companies also helped Fund performance. We believe C-COR,
a network infrastructure provider, is well positioned to benefit from
accelerated spending in a number of communication areas. Ultratech, a
semiconductor equipment company, has rebounded from a tough 2005 environment.
The small cap market has continued to post exceptional returns on both an
absolute and relative basis. During the six-month period, small cap stocks, as
defined by the Russell 2000 Index, generally outperformed large cap stocks.
Small cap stocks generally outpaced mid cap stocks as well. Material,
technology, and industrial stocks led the market as global economic expansion
continued. Financial, consumer staple and utility stocks lagged as interest
rates continued to increase.
WHAT CHANGES DID YOU MAKE TO THE FUND'S HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
As an investment manager employing a disciplined value approach, we often
buy the stocks of companies that we believe are currently out of favor in the
eyes of the broad market while at the same time selling into market strength.
During the past six months, the Fund's weighting in the materials sector
decreased as we took profits and saw fewer opportunities. For example, we took
advantage of 25-year highs in gold and sold the Fund's position in gold stocks
to capture profits. We increased our weighting in consumer staple stocks, for
example, Tootsie Roll Industries, because we believe they offered steady growth
and stable cash flow investment opportunities.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
We like to find companies that have solid assets, manageable debt,
credible management teams, and attractive prices. The companies we target are
often temporarily out of favor with the market and may have lower stock prices.
We believe that our disciplined investment process and risk-management focus are
well suited for the current economic environment.
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. 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 April 30, 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 SMALL CAP DISCIPLINED FUND.
10
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
6-Months* 1-Year Life of Fund
- -----------------------------------------------------------------------------------------------------
Small Cap Disciplined Fund - Administrator (Incept. Date 04/11/2005) 17.58 24.97 20.69
- -----------------------------------------------------------------------------------------------------
Small Cap Disciplined Fund - Institutional (Incept. Date 04/11/2005) 17.62 25.17 20.74
- -----------------------------------------------------------------------------------------------------
Small Cap Disciplined Fund - Investor (Incept. Date 03/28/2002) 17.35 24.50 20.58
- -----------------------------------------------------------------------------------------------------
Benchmarks
- -----------------------------------------------------------------------------------------------------
Russell 2000(R) Value Index 2 17.52 30.85 14.20
- -----------------------------------------------------------------------------------------------------
Russell 2000(R) Index 3 18.91 33.47 11.98
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED
FUND CHARACTERISTICS 4 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
Beta** 0.91
- --------------------------------------------------------------------------------
Price to Earnings (trailing 12 months) 61.50x
- --------------------------------------------------------------------------------
Price to Book Ratio 2.04x
- --------------------------------------------------------------------------------
Median Market Cap. ($B) $ 0.45
- --------------------------------------------------------------------------------
Portfolio Turnover*** 54%
- --------------------------------------------------------------------------------
** A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE RUSSELL 2000(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 APRIL 30, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Information Technology 23%
Materials 5%
Consumer Discretionary 21%
Consumer Staples 13%
Energy 3%
Financials 1%
Health Care 21%
Industrials 13%
TEN LARGEST EQUITY HOLDINGS 4,5 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
Diversa Corporation 5.03%
- --------------------------------------------------------------------------------
C-COR Incorporated 4.18%
- --------------------------------------------------------------------------------
Ultratech Incorporated 3.72%
- --------------------------------------------------------------------------------
Casella Waste Systems Incorporated 3.57%
- --------------------------------------------------------------------------------
Mercury Computer Systems Incorporated Class A 3.51%
- --------------------------------------------------------------------------------
Vital Signs Incorporated 3.46%
- --------------------------------------------------------------------------------
Lakes Entertainment Incorporated 3.39%
- --------------------------------------------------------------------------------
Tootsie Roll Industries Incorporated 3.34%
- --------------------------------------------------------------------------------
Hercules Incorporated 3.32%
- --------------------------------------------------------------------------------
Del Monte Foods Company 3.27%
GROWTH OF $10,000 INVESTMENT 6 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
WELLS FARGO ADVANTAGE
SMALL CAP DISCIPLINED Russell 2000(R)
FUND - Investor Class Value Index Russell 2000(R) Index
---------------------- --------------- ---------------------
3/31/2002 10,000 10,000 10,000
4/30/2002 9,980 10,352 10,091
5/31/2002 9,650 10,010 9,643
6/30/2002 9,570 9,788 9,165
7/31/2002 8,510 8,334 7,781
8/31/2002 8,640 8,297 7,761
9/30/2002 8,120 7,704 7,203
10/31/2002 8,470 7,820 7,434
11/30/2002 9,230 8,444 8,098
12/31/2002 9,120 8,083 7,647
1/31/2003 8,720 7,856 7,435
2/28/2003 8,380 7,592 7,211
3/31/2003 8,430 7,673 7,304
4/30/2003 9,520 8,401 7,996
5/31/2003 10,980 9,259 8,854
6/30/2003 11,350 9,416 9,014
7/31/2003 12,240 9,886 9,578
8/31/2003 12,550 10,261 10,018
9/30/2003 12,710 10,143 9,833
10/31/2003 13,440 10,971 10,658
11/30/2003 13,850 11,392 11,037
12/31/2003 14,823 11,804 11,261
1/31/2004 15,452 12,212 11,750
2/29/2004 15,771 12,448 11,855
3/31/2004 16,297 12,620 11,966
4/30/2004 16,503 11,968 11,356
5/31/2004 16,828 12,112 11,536
6/30/2004 17,240 12,727 12,022
7/31/2004 16,633 12,142 11,213
8/31/2004 16,102 12,261 11,155
9/30/2004 16,655 12,746 11,679
10/31/2004 16,525 12,944 11,909
11/30/2004 18,237 14,093 12,941
12/31/2004 18,831 14,429 13,325
1/31/2005 18,616 13,871 12,769
2/28/2005 19,203 14,147 12,985
3/31/2005 18,549 13,855 12,613
4/30/2005 17,270 13,141 11,891
5/31/2005 17,738 13,942 12,669
6/30/2005 18,446 14,559 13,158
7/31/2005 18,892 15,387 13,992
8/31/2005 19,075 15,033 13,733
9/30/2005 19,223 15,008 13,776
10/31/2005 18,321 14,631 13,347
11/30/2005 18,686 15,225 13,995
12/31/2005 18,710 15,108 13,930
1/31/2006 20,494 16,357 15,180
2/28/2006 20,590 16,356 15,137
3/31/2006 21,524 17,147 15,871
4/30/2006 21,500 17,193 15,868
- --------------------------------------------------------------------------------
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 Administrator Class shares and Institutional
Class shares of the WELLS FARGO ADVANTAGE SMALL CAP DISCIPLINED FUND for periods
prior to April 11,2005,reflects the performance of the Fund's Investor Class
shares and includes expenses that are not applicable to and are higher than
those of the Administrator Class shares and Institutional Class shares,
respectively. The Investor Class shares annual returns are substantially similar
to what the Administrator Class shares returns and Institutional Class shares
returns would be because the shares are invested in the same portfolio of
securities and the annual returns differ only to the extent that the classes do
not have the same expenses. Performance shown for the Investor Class shares of
the WELLS FARGO ADVANTAGE SMALL CAP DISCIPLINED FUND for periods prior to April
11,2005, reflects the performance of the Investor Class shares of the Strong
Small Company Value Fund, its predecessor fund.
2 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 holding.
3 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 securities divided by total market value of the Fund.
6 The chart compares the performance of the WELLS FARGO ADVANTAGE SMALL CAP
DISCIPLINED FUND Investor Class shares for the life of the Fund with the Russell
2000(R) Value Index and the Russell 2000(R) Index. The chart assumes a
hypothetical investment of $10,000 in Investor Class shares and reflects all
operating expenses.
11
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE SMALL/MID CAP VALUE FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The WELLS FARGO ADVANTAGE SMALL/MID CAP VALUE FUND (the Fund) seeks
long-term capital appreciation.
ADVISER SUBADVISER
Wells Fargo Funds Management, LLC Wells Capital Management Incorporated
FUND MANAGER FUND INCEPTION DATE
I. Charles Rinaldi 03/28/2002
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Investor Class shares returned 17.49% 1 for the six-month
period that ended April 30, 2006, outperforming its benchmark, the Russell
2500(TM) Value Index 2, which returned 15.33% during the same period. In
addition, the Fund outperformed the S&P 500 Index 3, which returned 9.63%, and
the Russell Midcap (R) Index 4, which returned 14.35% during the same period.
The Fund underperformed the Russell 2000 (R) Value Index 5, which returned
17.52%.
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 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.
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?
- --------------------------------------------------------------------------------
Performance was strong on an absolute basis during the period. Stock
selection in materials and industrial processing added value to the Fund's
portfolio. In materials, the best performers were steel, gold, and silver. In
industrials, the leaders were construction and cement, chemicals, and metal
fabricating. The Fund maintained an overweighted position in materials and
industrial processing because our research indicated that the underlying
companies remained strong contributors.
Energy stocks also contributed to the Fund's performance. Fundamental
research on oil well equipment, servicing, crude oil, natural gas, and drilling
companies proved to be positive over the long term. In the fall of 2005, we
reduced the Fund's position in companies within the oil industry.
Our stock selection in consumer stocks helped Fund performance, with
particular strength coming from commercial services stocks. Restaurant holdings
were flat or slightly weak during the period because we believe that the focus
on companies with improving fundamentals was not in favor. Technology stock
prices were up during the same time. Stocks with higher price-to-earnings ratios
were strong in the first three months of 2006, allowing the benchmark to perform
well in technology. We typically avoid companies with higher price-to-earnings
ratios and screen for companies with lower price-to-earnings ratios because we
believe that stocks with extended valuations that lack strong fundamentals fail
to perform well in the long term.
The Fund's financials and producer durables stocks detracted from
performance. Underweighted exposure to financials combined with weak stock
selection hurt Fund performance. Insurance names held in the Fund also detracted
from performance because reinsurance holdings suffered from the effects of last
year's hurricanes. In Real Estate Investment Trusts (REITs), the Fund remained
underweighted and this also contributed to underperformance. The Fund's
investment style, which identifies undervalued stocks, tends to shun the current
high valuations in REITs, especially with interest rates still moving upward.
WHAT CHANGES DID YOU MAKE TO THE FUND'S HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
We shifted our gains from energy companies and moved slowly into selected
companies in financials and technology. Specifically, our investment process
identified quality valuations in property and casualty insurance companies in
niche markets. We believe that energy stocks in the Fund offer value over the
long term, however, we also strive to take profits and seek value in other
areas.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
We are cautious in the near term about the general stock market. Over the
long term, we believe the small- and mid-cap value asset class remains
attractive as many small and mid cap names continue to be ignored and
undervalued. We will continue to take advantage of inefficiencies within the
small- and mid-cap value asset class because we believe the current markets
reward active management and strong stock selection. We will continue to focus
on identifying investment opportunities in stocks with quality management and
strong fundamentals that are attractively valued.
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. 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 April 30, 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 SMALL/MID CAP 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.
Performance shown for the Administrator Class shares of the WELLS FARGO
ADVANTAGE SMALL/MID CAP VALUE FUND for periods prior to April 11, 2005, reflects
the performance of the Fund's Investor Class shares, and includes expenses that
are not applicable to and are higher than those of the Administrator Class
(CONTINUED)
12
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
6-Months* 1-Year Life of Fund
- -----------------------------------------------------------------------------------------------------
Small/Mid Cap Value Fund - Administrator (Incept. Date 04/11/2005) 17.72 41.57 16.00
- -----------------------------------------------------------------------------------------------------
Small/Mid Cap Value Fund - Investor (Incept. Date 03/28/2002) 17.49 41.02 15.87
- -----------------------------------------------------------------------------------------------------
Benchmarks
- -----------------------------------------------------------------------------------------------------
Russell 2500(TM) Value Index 2 15.33 26.82 14.67
- -----------------------------------------------------------------------------------------------------
S&P 500 Index 3 9.63 15.41 5.16
- -----------------------------------------------------------------------------------------------------
Russell Midcap(R) Index 4 14.35 26.42 13.09
- -----------------------------------------------------------------------------------------------------
Russell 2000(R) Value Index 5 17.52 30.85 14.20
- -----------------------------------------------------------------------------------------------------
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED
FUND CHARACTERISTICS 6 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
Beta** 1.26
- --------------------------------------------------------------------------------
Price to Earnings (trailing 12 months) 56.70x
- --------------------------------------------------------------------------------
Price to Book Ratio 2.27x
- --------------------------------------------------------------------------------
Median Market Cap. ($B) $ 0.84
- --------------------------------------------------------------------------------
Portfolio Turnover*** 24%
- --------------------------------------------------------------------------------
** A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE RUSSELL 2500(TM)
VALUE INDEX BETA IS 1.00 BY DEFINITION.
*** THIS MEASURE IS BASED ON SIX-MONTHS OF THE FUND'S ACTIVITY.
SECTOR DISTRIBUTION 6 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Telecommunication Services 1%
Consumer Discretionary 9%
Consumer Staples 2%
Energy 24%
Financials 10%
Health Care 11%
Industrials 13%
Information Technology 16%
Materials 14%
TEN LARGEST EQUITY HOLDINGS 6,7 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
Global Industries Limited 5.20%
- --------------------------------------------------------------------------------
Allied Healthcare Products Incorporated 2.46%
- --------------------------------------------------------------------------------
Covalent Group Incorporated 2.45%
- --------------------------------------------------------------------------------
Trilogy Energy Trust 2.00%
- --------------------------------------------------------------------------------
Randgold Resources Limited ADR 1.82%
- --------------------------------------------------------------------------------
KFX Incorporated 1.79%
- --------------------------------------------------------------------------------
Key Energy Services Incorporated 1.78%
- --------------------------------------------------------------------------------
Intertape Polymer Group Incorporated 1.52%
- --------------------------------------------------------------------------------
MeMoRan Exploration Company 1.34%
- --------------------------------------------------------------------------------
Gentex Corporation 1.33%
GROWTH OF $10,000 INVESTMENT 8 (AS OF APRIL 30, 2006)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
WELLS FARGO ADVANTAGE
SMALL/MID CAP VALUE Russell 2500(TM) Russell 2000(R) Russell Midcap(R)
FUND - Investor Class Value Index Value Index Index S&P 500 Index
--------------------- ---------------- --------------- ----------------- -------------
3/31/2002 10,000 10,000 10,000 10,000 10,000
4/30/2002 9,810 10,171 10,352 9,806 9,394
5/31/2002 9,660 10,004 10,010 9,695 9,325
6/30/2002 8,930 9,651 9,788 9,045 8,661
7/31/2002 7,640 8,534 8,334 8,163 7,986
8/31/2002 7,830 8,579 8,297 8,207 8,038
9/30/2002 7,020 7,877 7,704 7,450 7,166
10/31/2002 7,160 7,990 7,820 7,827 7,796
11/30/2002 7,680 8,573 8,444 8,370 8,254
12/31/2002 7,580 8,306 8,083 8,040 7,769
1/31/2003 7,470 8,055 7,856 7,878 7,566
2/28/2003 7,360 7,857 7,592 7,773 7,453
3/31/2003 7,280 7,910 7,673 7,850 7,524
4/30/2003 7,870 8,626 8,401 8,420 8,144
5/31/2003 8,920 9,424 9,259 9,191 8,573
6/30/2003 9,060 9,593 9,416 9,284 8,682
7/31/2003 9,600 10,010 9,886 9,590 8,836
8/31/2003 10,020 10,413 10,261 10,006 9,008
9/30/2003 9,960 10,339 10,143 9,881 8,912
10/31/2003 10,660 11,129 10,971 10,635 9,416
11/30/2003 11,090 11,583 11,392 10,933 9,499
12/31/2003 12,010 12,038 11,804 11,261 9,997
1/31/2004 12,320 12,427 12,212 11,588 10,180
2/29/2004 12,770 12,680 12,448 11,838 10,322
3/31/2004 13,020 12,781 12,620 11,840 10,166
4/30/2004 12,240 12,112 11,968 11,405 10,007
5/31/2004 12,400 12,356 12,112 11,688 10,144
6/30/2004 12,860 12,846 12,727 12,012 10,341
7/31/2004 12,110 12,329 12,142 11,487 9,998
8/31/2004 11,710 12,484 12,261 11,536 10,039
9/30/2004 12,640 12,878 12,746 11,911 10,147
10/31/2004 12,550 13,111 12,944 12,239 10,302
11/30/2004 14,000 14,183 14,093 12,985 10,719
12/31/2004 14,337 14,635 14,429 13,538 11,084
1/31/2005 13,881 14,164 13,871 13,203 10,814
2/28/2005 14,679 14,518 14,147 13,610 11,041
3/31/2005 14,038 14,324 13,855 13,503 10,846
4/30/2005 12,953 13,788 13,141 13,073 10,640
5/31/2005 13,421 14,554 13,942 13,699 10,978
6/30/2005 14,304 15,087 14,559 14,068 10,994
7/31/2005 15,325 15,895 15,387 14,809 11,403
8/31/2005 15,761 15,606 15,033 14,706 11,299
9/30/2005 16,186 15,623 15,008 14,901 11,391
10/31/2005 15,548 15,162 14,631 14,454 11,200
11/30/2005 15,963 15,784 15,225 15,096 11,624
12/31/2005 16,247 15,767 15,108 15,251 11,628
1/31/2006 17,724 16,805 16,357 16,035 11,937
2/28/2006 17,235 16,828 16,356 16,016 11,969
3/31/2006 17,941 17,418 17,147 16,413 12,117
4/30/2006 18,267 17,486 17,193 16,528 12,280
- --------------------------------------------------------------------------------
shares. The Investor Class shares annual returns are substantially similar to
what the Administrator Class shares returns would be because the shares are
invested in the same portfolio of securities and the annual returns differ only
to the extent that the classes do not have the same expenses. Performance shown
for the Investor Class shares of the WELLS FARGO ADVANTAGE SMALL/MID CAP VALUE
FUND for periods prior to April 11, 2005, reflects the performance of the
Investor Class shares of the Strong Small/Mid Cap Value Fund, its predecessor
fund.
2 The Russell 2500(TM) Value Index measures the performance of those Russell
2500 companies with lower price-to-book ratios and lower forecasted growth
values. You cannot invest directly in an Index. The Fund has selected the
Russell 2500(TM) Value Index to replace the S&P 500 Index, the Russell 2000(R)
Value Index and the Russell Midcap(R) Index as its benchmark index going forward
because the Russell 2500(TM) Value Index is more representative of the breadth
of the Fund's holding.
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 The Russell Midcap(R) Index measures the performance of the 800 smallest
companies in the Russell 1000 Index, which represent approximately 25% of the
total market capitalization of the Russell 1000 Index. You cannot invest
directly in an Index.
5 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.
6 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.
7 The ten largest equity holdings are calculated based on the market value of
the securities divided by total market value of the Fund.
8 The chart compares the performance of the WELLS FARGO ADVANTAGE SMALL/MID CAP
VALUE FUND Investor Class shares for the life of the Fund with the Russell
2500(TM) Value Index, S&P 500 Index, Russell Midcap(R) Index and Russell 2000(R)
Value Index. The chart assumes a hypothetical investment of $10,000 in Investor
Class shares and reflects all operating expenses.
13
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS FUND EXPENSES
- --------------------------------------------------------------------------------
As a shareholder of the Fund, you incur two types of costs: (1)
transaction costs, including sales charges (loads) on purchase payments,
redemption fees (if any) and exchange fees (if any); and (2) ongoing costs,
including management fees; distribution (12b-1) and/or shareholder service fees;
and other Fund expenses. This example is intended to help you understand your
ongoing costs (in dollars) of investing in the Fund and to compare these costs
with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning
of the six-month period and held for the entire six-month period (November 1,
2005 to April 30, 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
11/01/2005 04/30/2006 Period (1) Expense Ratio
Wells Fargo Advantage Discovery Fund
- --------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Discovery Fund - Administrator Class
Actual $ 1,000.00 $ 1,183.10 $ 6.22 1.15%
- --------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,019.09 $ 5.76 1.15%
- --------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Discovery Fund - Investor Class
Actual $ 1,000.00 $ 1,182.00 $ 7.47 1.38%
- --------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,017.95 $ 6.90 1.38%
Wells Fargo Advantage Enterprise Fund
- --------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Enterprise Fund - Administrator Class
Actual $ 1,000.00 $ 1,200.00 $ 6.27 1.15%
- --------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,019.09 $ 5.76 1.15%
- --------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Enterprise Fund - Advisor Class
Actual $ 1,000.00 $ 1,198.30 $ 7.52 1.38%
- --------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,017.95 $ 6.90 1.38%
- --------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Enterprise Fund - Institutional Class
Actual $ 1,000.00 $ 1,201.20 $ 4.91 0.90%
- --------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,020.33 $ 4.51 0.90%
- --------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Enterprise Fund - Investor Class
Actual $ 1,000.00 $ 1,197.40 $ 8.44 1.55%
- --------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,017.11 $ 7.75 1.55%
14
FUND EXPENSES WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
Beginning Ending Expenses
Account Value Account Value Paid During Net Annual
11/01/2005 04/30/2006 Period (1) Expense Ratio
Wells Fargo Advantage Mid Cap Disciplined Fund
- --------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Mid Cap Disciplined Fund - Administrator Class
Actual $ 1,000.00 $ 1,108.40 $ 6.01 1.15%
- --------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,019.09 $ 5.76 1.15%
- --------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Mid Cap Disciplined Fund - Institutional Class
Actual $ 1,000.00 $ 1,110.40 $ 4.66 0.89%
- --------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,020.38 $ 4.46 0.89%
- --------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Mid Cap Disciplined Fund - Investor Class
Actual $ 1,000.00 $ 1,107.80 $ 6.85 1.31%
- --------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,018.30 $ 6.56 1.31%
Wells Fargo Advantage Opportunity Fund
- --------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Opportunity Fund - Administrator Class
Actual $ 1,000.00 $ 1,134.70 $ 5.50 1.04%
- --------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,019.64 $ 5.21 1.04%
- --------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Opportunity Fund - Advisor Class
Actual $ 1,000.00 $ 1,133.30 $ 6.82 1.29%
- --------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,018.40 $ 6.46 1.29%
- --------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Opportunity Fund - Investor Class
Actual $ 1,000.00 $ 1,133.20 $ 7.14 1.35%
- --------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,018.10 $ 6.76 1.35%
Wells Fargo Advantage Small Cap Disciplined Fund
- --------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Small Cap Disciplined Fund - Administrator Class
Actual $ 1,000.00 $ 1,175.80 $ 6.47 1.20%
- --------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,018.84 $ 6.01 1.20%
- --------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Small Cap Disciplined Fund - Institutional Class
Actual $ 1,000.00 $ 1,176.20 $ 5.40 1.00%
- --------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,019.84 $ 5.01 1.00%
- --------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Small Cap Disciplined Fund - Investor Class
Actual $ 1,000.00 $ 1,173.50 $ 8.68 1.61%
- --------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,016.81 $ 8.05 1.61%
Wells Fargo Advantage Small/Mid Cap Value Fund
- --------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Small/Mid Cap Value Fund - Administrator Class
Actual $ 1,000.00 $ 1,177.20 $ 6.37 1.18%
- --------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,018.94 $ 5.91 1.18%
- --------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Small/Mid Cap Value Fund - Investor Class
Actual $ 1,000.00 $ 1,174.90 $ 8.57 1.59%
- --------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,016.91 $ 7.95 1.59%
(1) Expenses are equal to the Fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by the number of days in the
most recent six-month period divided by 365 (to reflect the one-half year
period).
15
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
DISCOVERY FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 96.35%
AEROSPACE, DEFENSE - 1.57%
170,219 BE AEROSPACE INCORPORATED+ $ 4,430,801
------------
AMUSEMENT & RECREATION SERVICES - 3.72%
69,500 HARRAH'S ENTERTAINMENT INCORPORATED 5,673,980
105,400 LIFE TIME FITNESS INCORPORATED+ 4,827,320
10,501,300
------------
APPAREL & ACCESSORY STORES - 3.69%
52,800 ABERCROMBIE & FITCH COMPANY CLASS A 3,206,544
110,100 CHICO'S FAS INCORPORATED+ 4,080,306
99,900 DSW INCORPORATED+ 3,126,870
10,413,720
------------
BUSINESS SERVICES - 10.79%
79,100 AMDOCS LIMITED+ 2,942,520
210,100 BEA SYSTEMS INCORPORATED+<< 2,783,825
86,900 COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION CLASS A+ 5,527,709
160,855 EMAGEON INCORPORATED+<< 2,855,176
75,150 F5 NETWORKS INCORPORATED+ 4,400,784
176,800 RED HAT INCORPORATED+ 5,196,152
180,200 RSA SECURITY INCORPORATED+ 3,773,388
175,800 VALUECLICK INCORPORATED+ 2,962,230
30,441,784
------------
CHEMICALS & ALLIED PRODUCTS - 1.37%
61,203 DIGENE CORPORATION+ 2,528,296
83,900 INTERMUNE INCORPORATED+ 1,341,561
3,869,857
------------
COMMUNICATIONS - 5.85%
135,100 AMERICAN TOWER CORPORATION CLASS A+ 4,612,314
39,700 EQUINIX INCORPORATED+ 2,616,230
154,604 NII HOLDINGS INCORPORATED+ 9,260,780
16,489,324
------------
EATING & DRINKING PLACES - 0.75%
250 CHIPOTLE MEXICAN GRILL INCORPORATED+ 13,047
222,700 COSI INCORPORATED+ 2,091,153
2,104,200
------------
ELECTRIC, GAS & SANITARY SERVICES - 1.94%
120,000 COVANTA HOLDING CORPORATION+ 2,001,600
158,100 WILLIAMS COMPANIES INCORPORATED 3,467,133
5,468,733
------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT - 10.10%
52,170 HARMAN INTERNATIONAL INDUSTRIES INCORPORATED 4,590,438
51,300 MARVELL TECHNOLOGY GROUP LIMITED+ 2,928,717
148,900 MEMC ELECTRONIC MATERIALS INCORPORATED+ 6,045,340
16
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
DISCOVERY FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT (CONTINUED)
174,300 MICROSEMI CORPORATION+ $ 4,761,876
67,400 NETWORK APPLIANCE INCORPORATED+ 2,498,518
86,700 TESSERA TECHNOLOGIES INCORPORATED+ 2,780,469
184,000 TRIDENT MICROSYSTEMS INCORPORATED+ 4,894,400
28,499,758
------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES
- - 1.16%
61,000 GEN-PROBE INCORPORATED+ 3,261,670
------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION
EQUIPMENT - 1.72%
135,800 LADISH COMPANY INCORPORATED+ 4,843,986
------------
HEALTH SERVICES - 3.64%
94,190 COMMUNITY HEALTH SYSTEMS INCORPORATED+ 3,413,446
59,700 COVANCE INCORPORATED+ 3,483,495
66,800 PEDIATRIX MEDICAL GROUP INCORPORATED+ 3,381,416
10,278,357
------------
HEAVY CONSTRUCTION OTHER THAN BUILDING CONSTRUCTION
CONTRACTS - 0.99%
62,851 FOSTER WHEELER LIMITED+ 2,800,640
------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 2.51%
263,150 HILTON HOTELS CORPORATION 7,089,261
------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 6.46%
100,500 GAMESTOP CORPORATION CLASS A+ 4,743,600
109,400 GRANT PRIDECO INCORPORATED+ 5,601,280
72,200 RACKABLE SYSTEMS INCORPORATED+ 3,710,358
109,700 SCIENTIFIC GAMES CORPORATION CLASS A+ 4,178,473
18,233,711
------------
INSURANCE CARRIERS - 1.35%
122,900 ENDURANCE SPECIALTY HOLDINGS LIMITED 3,804,984
------------
JUSTICE, PUBLIC ORDER & SAFETY - 0.94%
58,700 CORRECTIONS CORPORATION OF AMERICA+ 2,634,456
------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS - 12.18%
124,900 AMERICAN MEDICAL SYSTEMS HOLDINGS INCORPORATED+ 2,774,029
40,600 C.R. BARD INCORPORATED 3,023,076
69,630 DENTSPLY INTERNATIONAL INCORPORATED 4,154,822
70,900 DEXCOM INCORPORATED+ 1,783,844
240,850 EV3 INCORPORATED+<< 3,778,937
140,700 FORMFACTOR INCORPORATED+ 5,865,783
84,300 HAEMONETICS CORPORATION+ 4,594,350
12,100 INTUITIVE SURGICAL INCORPORATED+ 1,536,700
165,958 NUVASIVE INCORPORATED+ 3,305,883
82,300 RESMED INCORPORATED+ 3,551,245
34,368,669
------------
MEDICAL MANAGEMENT SERVICES - 1.16%
65,600 COVENTRY HEALTH CARE INCORPORATED+ 3,258,352
------------
17
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
DISCOVERY FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
METAL MINING - 5.28%
112,100 GLAMIS GOLD LIMITED+<< $ 4,399,925
110,900 GOLDCORP INCORPORATED<< 3,894,808
106,600 NOVAGOLD RESOURCES INCORPORATED+<< 1,705,600
197,500 PAN AMERICAN SILVER CORPORATION+<< 4,898,000
14,898,333
------------
MISCELLANEOUS RETAIL - 2.63%
60,500 COLDWATER CREEK INCORPORATED+ 1,691,580
84,400 NUTRISYSTEM INCORPORATED+ 5,727,384
7,418,964
------------
OIL & GAS EXTRACTION - 4.58%
35,800 CANADIAN NATURAL RESOURCES LIMITED 2,155,160
171,600 CHESAPEAKE ENERGY CORPORATION 5,436,288
3,000 COMPLETE PRODUCTION SERVICES INCORPORATED+<< 79,290
114,500 TODCO CLASS A+ 5,252,115
12,922,853
------------
PRIMARY METAL INDUSTRIES - 1.91%
85,700 PRECISION CASTPARTS CORPORATION 5,397,386
------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 0.75%
66,000 VISTAPRINT LIMITED+ 2,110,680
------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES
- - 0.73%
42,600 NUVEEN INVESTMENTS CLASS A 2,049,912
------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 0.53%
25,900 CARBO CERAMICS INCORPORATED 1,500,387
------------
THEATERS & ENTERTAINMENT - 1.61%
216,500 REGAL ENTERTAINMENT GROUP CLASS A 4,550,830
------------
WHOLESALE TRADE NON-DURABLE GOODS - 3.91%
76,800 CENTRAL EUROPEAN DISTRIBUTION CORPORATION+ 3,152,640
63,400 DEAN FOODS COMPANY+ 2,511,274
57,000 ENDO PHARMACEUTICALS HOLDINGS INCORPORATED+ 1,792,650
67,200 MEDCO HEALTH SOLUTIONS INCORPORATED+ 3,577,056
11,033,620
------------
WHOLESALE TRADE-DURABLE GOODS - 2.53%
108,600 AVNET INCORPORATED+ 2,839,890
166,100 CYTYC CORPORATION+ 4,293,685
7,133,575
------------
TOTAL COMMON STOCKS (COST $217,379,483) 271,810,103
------------
COLLATERAL FOR SECURITIES LENDING - 5.74%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.21%
578,069 SCUDDER DAILY ASSETS MONEY MARKET FUND 578,069
------------
18
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
DISCOVERY FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS - 5.53%
$ 44,083 AMERICAN GENERAL FINANCE CORPORATION+/-++ 4.93% 05/15/2007 $ 44,102
18,353 APRECO LLC++ 4.60 05/15/2006 18,319
40,170 APRECO LLC++ 4.92 06/15/2006 39,921
362,461 AQUIFER FUNDING LIMITED++ 4.80 05/03/2006 362,363
122,453 AQUIFER FUNDING LIMITED++ 4.80 05/04/2006 122,404
122,453 AQUINAS FUNDING LLC++ 5.04 06/23/2006 121,559
250,284 ATLANTIC ASSET SECURITIZATION CORPORATION++ 4.86 05/11/2006 249,946
244,906 ATLAS CAPITAL FUNDING CORPORATION SERIES MTN+/- 4.81 11/03/2006 244,906
58,777 ATLAS CAPITAL FUNDING LIMITED++ 4.60 05/15/2006 58,666
122,453 ATLAS CAPITAL FUNDING LIMITED+/-++ 4.93 12/22/2006 122,453
122,453 ATLAS CAPITAL FUNDING LIMITED+/-++ 4.94 10/20/2006 122,453
122,453 ATLAS CAPITAL FUNDING LIMITED SERIES MTN+/- 4.98 04/25/2007 122,453
8,028 ATOMIUM FUNDING CORPORATION++ 4.81 05/03/2006 8,026
466,561 ATOMIUM FUNDING CORPORATION++ 4.81 05/04/2006 466,374
98,692 ATOMIUM FUNDING CORPORATION++ 4.83 05/05/2006 98,640
59,571 ATOMIUM FUNDING CORPORATION++ 5.00 06/12/2006 59,227
293,887 BASF AG++ 4.81 05/04/2006 293,770
146,944 BEAR STEARNS & COMPANY+/- 4.93 10/04/2006 146,944
250,922 BEAR STEARNS & COMPANY REPURCHASE AGREEMENT
(MATURITY VALUE $250,956) 4.92 05/01/2006 250,922
16,992 BETA FINANCE INCORPORATED SERIES MTN+/- 4.91 06/02/2006 16,993
2,693,968 BNP PARIBAS REPURCHASE AGREEMENT
(MATURITY VALUE $2,694,337) 4.93 05/01/2006 2,693,968
163,093 BUCKINGHAM CDO LLC++ 4.96 05/23/2006 162,602
244,906 BUCKINGHAM CDO LLC++ 5.08 07/24/2006 242,060
294,852 BUCKINGHAM II CDO LLC++ 4.86 05/08/2006 294,578
34,287 BUCKINGHAM II CDO LLC++ 4.95 05/24/2006 34,179
63,676 CAIRN HIGH GRADE FUNDING I++ 4.76 05/10/2006 63,598
122,453 CAIRN HIGH GRADE FUNDING I++ 4.81 05/02/2006 122,437
97,962 CAIRN HIGH GRADE FUNDING I++ 4.83 05/08/2006 97,871
83,268 CAIRN HIGH GRADE FUNDING I++ 4.93 05/18/2006 83,076
67,594 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.68 05/08/2006 67,531
21,782 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.69 05/10/2006 21,755
97,962 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.70 05/12/2006 97,816
50,563 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.80 05/05/2006 50,537
157,666 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.83 05/09/2006 157,495
48,981 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.89 06/07/2006 48,732
130,364 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.90 06/12/2006 129,611
153,409 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.99 06/21/2006 152,331
71,023 CEDAR SPRINGS CAPITAL COMPANY LLC++ 5.01 06/05/2006 70,681
244,906 CONCORD MINUTEMEN CAPITAL COMPANY SERIES A++ 4.83 05/12/2006 244,541
122,933 CONCORD MINUTEMEN CAPITAL COMPANY SERIES A++ 4.85 05/11/2006 122,767
342,869 CONCORD MINUTEMEN CAPITAL COMPANY SERIES B+/-++ 4.85 05/14/2006 342,869
316,909 CORPORATE ASSET SECURITIZATION AUSTRALIA LIMITED++ 5.00 05/25/2006 315,866
151,842 CREDIT SUISSE FIRST BOSTON NEW YORK SERIES YCD1+/- 4.92 05/04/2006 151,833
122,453 CULLINAN FINANCE CORPORATION SERIES MTN+/- 4.71 11/15/2006 122,465
63,676 DEER VALLEY FUNDING LLC++ 4.78 05/03/2006 63,658
186,129 DEER VALLEY FUNDING LLC++ 4.84 05/08/2006 185,956
19
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
DISCOVERY FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 9,586 DEER VALLEY FUNDING LLC++ 4.89% 05/15/2006 $ 9,568
78,292 DEER VALLEY FUNDING LLC++ 4.92 05/16/2006 78,133
609,309 DEUTSCHE BANK REPURCHASE AGREEMENT
(MATURITY VALUE $609,391) 4.82 05/01/2006 609,309
7,837 EDISON ASSET SECURITIZATION LLC++ 4.84 05/15/2006 7,822
9,796 EIFFEL FUNDING LLC++ 4.80 05/01/2006 9,796
176,435 EUREKA SECURITIZATION INCORPORATED++ 4.86 05/16/2006 176,077
293,887 GEMINI SECURITIZATION INCORPORATED++ 4.79 05/01/2006 293,887
7,347 GEMINI SECURITIZATION INCORPORATED++ 4.88 05/24/2006 7,324
220,293 GEORGE STREET FINANCE LLC++ 4.80 05/02/2006 220,264
117,555 GOLDMAN SACHS GROUP INCORPORATED+/- 4.97 06/30/2006 117,555
9,796 HARRIER FINANCE FUNDING LLC SERIES MTN+/- 4.98 05/15/2007 9,798
17,143 HBOS TREASURY SERVICES PLC+/-++ 5.12 01/12/2007 17,161
78,370 ING USA ANNUITY & LIFE INSURANCE+/- 5.03 06/06/2006 78,370
6,368 K2 (USA) LLC++ 4.61 05/02/2006 6,367
22,654 K2 (USA) LLC SERIES MTN+/- 4.90 07/24/2006 22,658
73,472 KAUPTHING BANK HF SERIES MTN+/- 4.98 03/20/2007 73,360
19,592 KLIO II FUNDING CORPORATION++ 4.96 06/30/2006 19,430
163,739 KLIO III FUNDING CORPORATION++ 4.93 05/22/2006 163,271
235,443 KLIO III FUNDING CORPORATION++ 4.96 06/30/2006 233,496
4,898 LEXINGTON PARKER CAPITAL CORPORATION 4.60 05/02/2006 4,897
18,593 LEXINGTON PARKER CAPITAL CORPORATION++ 4.68 05/10/2006 18,571
785,027 LEXINGTON PARKER CAPITAL CORPORATION++ 4.85 05/05/2006 784,611
8,327 LEXINGTON PARKER CAPITAL CORPORATION 4.96 06/20/2006 8,269
122,453 LIBERTY LIGHT US CAPITAL SERIES MTN+/- 4.84 05/26/2006 122,456
9,796 LINKS FINANCE LLC SERIES MTN1+/- 4.82 09/12/2006 9,796
73,472 LIQUID FUNDING LIMITED+/-++ 4.79 12/01/2006 73,472
112,657 LIQUID FUNDING LIMITED+/-++ 4.88 08/14/2006 112,657
29,389 LIQUID FUNDING LIMITED SERIES MTN+/- 4.85 02/20/2007 29,389
48,981 MBIA GLOBAL FUNDING LLC+/-++ 4.92 02/20/2007 48,978
246,131 MERRILL LYNCH & COMPANY SERIES MTN+/- 5.28 10/27/2006 246,328
146,944 MORGAN STANLEY+/- 4.94 10/10/2006 146,944
22,654 MORGAN STANLEY SERIES EXL+/- 4.93 08/13/2010 22,659
110,698 MORTGAGE INTEREST NET TRUST 4.76 05/03/2006 110,668
4,898 NATIONWIDE BUILDING SOC+/-++ 5.20 07/21/2006 4,900
21,836 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 4.91 06/26/2006 21,667
7,861 NORDEA NORTH AMERICA INCORPORATED 4.80 05/03/2006 7,859
15,674 NORDEA NORTH AMERICA INCORPORATED 4.81 05/09/2006 15,657
9,306 NORDEA NORTH AMERICA INCORPORATED 4.87 05/15/2006 9,289
14,670 NORTH SEA FUNDING LLC++ 5.00 06/26/2006 14,557
244,906 NORTHERN ROCK PLC+/-++ 4.83 02/05/2007 244,918
19,813 RACERS TRUST 2004-6-MM+/-++ 4.95 05/22/2006 19,816
92,315 REGENCY MARKETS #1 LLC++ 5.06 07/20/2006 91,293
4,898 SCALDIS CAPITAL LIMITED++ 4.91 06/15/2006 4,868
244,392 SEDNA FINANCE INCORPORATED++ 4.86 05/02/2006 244,360
97,962 SLM CORPORATION+/-++ 4.86 05/04/2007 97,938
39,185 SWEDBANK (FORENINGS SPARBANKEN) 4.81 05/09/2006 39,143
20
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
DISCOVERY FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 24,491 SWEDISH NATIONAL HOUSING FINANCE (SBAB) 5.06% 07/18/2006 $ 24,226
19,592 TANGO FINANCE CORPORATION++ 4.94 06/21/2006 19,455
56,637 TANGO FINANCE CORPORATION SERIES MTN+/- 4.90 10/25/2006 56,656
148,065 THUNDER BAY FUNDING INCORPORATED++ 5.00 06/16/2006 147,127
174,442 TIERRA ALTA FUNDING I LIMITED++ 4.82 05/10/2006 174,229
252,459 TIERRA ALTA FUNDING I LIMITED++ 4.83 05/11/2006 252,118
28,316 TRAVELERS INSURANCE COMPANY+/- 4.92 02/09/2007 28,315
122,453 UNICREDITO ITALIANO SERIES LIB+/- 4.86 03/09/2007 122,451
186,129 US BANK NA SERIES BKNT+/- 5.13 07/28/2006 186,138
14,694 VERSAILLES CDS LLC++ 4.87 05/15/2006 14,667
122,453 VERSAILLES CDS LLC++ 4.99 06/20/2006 121,609
4,898 VERSAILLES CDS LLC++ 5.00 06/21/2006 4,864
51,734 VERSAILLES CDS LLC++ 5.04 06/28/2006 51,321
48,981 WHISTLEJACKET CAPITAL LIMITED+/-++ 4.80 06/09/2006 48,981
24,491 WHISTLEJACKET CAPITAL LIMITED++ 4.91 05/15/2006 24,444
79,129 WHISTLEJACKET CAPITAL LIMITED++ 5.02 06/26/2006 78,518
24,491 WHITE PINE FINANCE LLC++ 4.80 05/05/2006 24,478
19,994 WHITE PINE FINANCE LLC++ 4.83 05/25/2006 19,928
122,453 WHITE PINE FINANCE LLC+/-++ 4.85 07/17/2006 122,453
15,047 WHITE PINE FINANCE LLC++ 4.91 06/20/2006 14,943
129,257 WHITE PINE FINANCE LLC++ 4.92 06/22/2006 128,331
117,555 WHITE PINE FINANCE LLC SERIES MTN1+/- 4.84 06/12/2006 117,560
15,603,672
------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $16,181,741) 16,181,741
------------
SHARES
SHORT-TERM INVESTMENTS - 2.53%
7,146,537 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~@ 7,146,537
------------
TOTAL SHORT-TERM INVESTMENTS (COST $7,146,537) 7,146,537
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $240,707,761)* 104.62% $295,138,381
OTHER ASSETS AND LIABILITIES, NET (4.62) (13,027,498)
------ ------------
TOTAL NET ASSETS 100.00% $282,110,883
------ ------------
+ 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 $7,146,537.
* 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.
21
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
ENTERPRISE FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 99.44%
AEROSPACE, DEFENSE - 1.58%
150,652 BE AEROSPACE INCORPORATED+ $ 3,921,472
------------
AMUSEMENT & RECREATION SERVICES - 2.02%
61,600 HARRAH'S ENTERTAINMENT INCORPORATED 5,029,024
------------
APPAREL & ACCESSORY STORES - 3.48%
51,800 ANN TAYLOR STORES CORPORATION+ 1,933,694
46,000 CARTER'S INCORPORATED+ 3,098,560
97,600 CHICO'S FAS INCORPORATED+ 3,617,056
8,649,310
------------
BUSINESS SERVICES - 10.44%
71,800 AMDOCS LIMITED+ 2,670,960
326,500 BEA SYSTEMS INCORPORATED+ 4,326,125
70,600 COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION CLASS A+ 4,490,866
67,300 F5 NETWORKS INCORPORATED+ 3,941,088
138,500 RED HAT INCORPORATED+ 4,070,515
160,300 RSA SECURITY INCORPORATED+ 3,356,682
183,400 VALUECLICK INCORPORATED+ 3,090,290
25,946,526
------------
CHEMICALS & ALLIED PRODUCTS - 2.72%
55,049 DIGENE CORPORATION+ 2,274,074
26,755 GENZYME CORPORATION+ 1,636,336
49,600 GILEAD SCIENCES INCORPORATED+ 2,852,000
6,762,410
------------
COMMUNICATIONS - 4.99%
97,700 AMERICAN TOWER CORPORATION CLASS A+ 3,335,478
21,500 EQUINIX INCORPORATED+ 1,416,850
127,560 NII HOLDINGS INCORPORATED+ 7,640,844
12,393,172
------------
DEPOSITORY INSTITUTIONS - 0.77%
42,000 MARSHALL & ILSLEY CORPORATION 1,920,240
------------
ELECTRIC, GAS & SANITARY SERVICES - 1.96%
109,400 COVANTA HOLDING CORPORATION+ 1,824,792
138,700 WILLIAMS COMPANIES INCORPORATED 3,041,691
4,866,483
------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT - 11.23%
73,000 BROADCOM CORPORATION CLASS A+ 3,001,030
44,190 HARMAN INTERNATIONAL INDUSTRIES INCORPORATED 3,888,278
63,700 MARVELL TECHNOLOGY GROUP LIMITED+ 3,636,633
105,060 MEMC ELECTRONIC MATERIALS INCORPORATED+ 4,265,436
153,800 MICROSEMI CORPORATION+ 4,201,816
76,700 NETWORK APPLIANCE INCORPORATED+ 2,843,269
64,800 NVIDIA CORPORATION+ 1,893,456
22
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
ENTERPRISE FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT (CONTINUED)
81,000 TESSERA TECHNOLOGIES INCORPORATED+ $ 2,597,670
58,600 TRIDENT MICROSYSTEMS INCORPORATED+ 1,558,760
27,886,348
------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES - 2.24%
65,400 GEN-PROBE INCORPORATED+ 3,496,938
37,000 QUEST DIAGNOSTICS INCORPORATED 2,062,010
5,558,948
------------
FOOD & KINDRED PRODUCTS - 0.14%
7,335 WM. WRIGLEY JR. COMPANY 345,502
------------
HEALTH SERVICES - 3.67%
82,750 COMMUNITY HEALTH SYSTEMS INCORPORATED+ 2,998,860
53,800 COVANCE INCORPORATED+ 3,139,230
59,000 PEDIATRIX MEDICAL GROUP INCORPORATED+ 2,986,580
9,124,670
------------
HEAVY CONSTRUCTION OTHER THAN BUILDING CONSTRUCTION CONTRACTS - 1.00%
55,918 FOSTER WHEELER LIMITED+ 2,491,706
------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 5.59%
222,000 HILTON HOTELS CORPORATION 5,980,680
92,400 MARRIOTT INTERNATIONAL INCORPORATED CLASS A 6,751,668
14,800 STATION CASINOS INCORPORATED 1,140,784
13,873,132
------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 6.84%
114,200 GRANT PRIDECO INCORPORATED+ 5,847,040
65,200 RACKABLE SYSTEMS INCORPORATED+ 3,350,628
68,000 SANDISK CORPORATION+ 4,340,440
90,800 SCIENTIFIC GAMES CORPORATION CLASS A+ 3,458,572
16,996,680
------------
INSURANCE CARRIERS - 1.29%
103,800 ENDURANCE SPECIALTY HOLDINGS LIMITED 3,213,648
------------
LEATHER & LEATHER PRODUCTS - 1.15%
86,540 COACH INCORPORATED+ 2,857,551
------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS - 6.89%
105,700 AMERICAN MEDICAL SYSTEMS HOLDINGS INCORPORATED+ 2,347,597
36,500 C.R. BARD INCORPORATED 2,717,790
62,470 DENTSPLY INTERNATIONAL INCORPORATED 3,727,585
122,750 FORMFACTOR INCORPORATED+ 5,117,447
74,200 RESMED INCORPORATED+ 3,201,730
17,112,149
------------
MEDICAL MANAGEMENT SERVICES - 1.37%
68,350 COVENTRY HEALTH CARE INCORPORATED+ 3,394,945
------------
23
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
ENTERPRISE FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
METAL MINING - 5.13%
112,400 GLAMIS GOLD LIMITED+<< $ 4,411,700
87,900 GOLDCORP INCORPORATED 3,087,048
95,700 NOVAGOLD RESOURCES INCORPORATED+<< 1,531,200
150,200 PAN AMERICAN SILVER CORPORATION+<< 3,724,960
12,754,908
------------
MISCELLANEOUS RETAIL - 2.67%
54,600 COLDWATER CREEK INCORPORATED+ 1,526,616
75,200 NUTRISYSTEM INCORPORATED+ 5,103,072
6,629,688
------------
OIL & GAS EXTRACTION - 6.72%
72,400 CANADIAN NATURAL RESOURCES LIMITED 4,358,480
122,510 CHESAPEAKE ENERGY CORPORATION 3,881,117
2,650 COMPLETE PRODUCTION SERVICES INCORPORATED+<< 70,039
108,100 TODCO CLASS A+ 4,958,547
42,200 TRANSOCEAN INCORPORATED+ 3,421,154
16,689,337
------------
PRIMARY METAL INDUSTRIES - 2.52%
99,300 PRECISION CASTPARTS CORPORATION 6,253,914
------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 1.00%
77,900 VISTAPRINT LIMITED+ 2,491,242
------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 0.74%
38,400 NUVEEN INVESTMENTS CLASS A 1,847,808
------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 0.51%
21,700 CARBO CERAMICS INCORPORATED 1,257,081
------------
THEATERS & ENTERTAINMENT - 1.65%
195,000 REGAL ENTERTAINMENT GROUP CLASS A 4,098,900
------------
TRANSPORTATION EQUIPMENT - 1.45%
40,100 TEXTRON INCORPORATED 3,606,995
------------
WHOLESALE TRADE NON-DURABLE GOODS - 5.20%
82,300 CENTRAL EUROPEAN DISTRIBUTION CORPORATION+ 3,378,415
72,000 DEAN FOODS COMPANY+ 2,851,920
74,900 ENDO PHARMACEUTICALS HOLDINGS INCORPORATED+ 2,355,605
81,200 MEDCO HEALTH SOLUTIONS INCORPORATED+ 4,322,276
12,908,216
------------
WHOLESALE TRADE-DURABLE GOODS - 2.48%
98,950 AVNET INCORPORATED+ 2,587,542
137,800 CYTYC CORPORATION+ 3,562,130
6,149,672
------------
TOTAL COMMON STOCKS (COST $204,482,431) 247,031,677
------------
COLLATERAL FOR SECURITIES LENDING - 3.32%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.12%
294,553 SCUDDER DAILY ASSETS MONEY MARKET FUND 294,553
------------
24
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
ENTERPRISE FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS - 3.20%
$ 22,462 AMERICAN GENERAL FINANCE CORPORATION+/-++ 4.93% 05/15/2007 $ 22,472
9,352 APRECO LLC++ 4.60 05/15/2006 9,334
20,468 APRECO LLC++ 4.92 06/15/2006 20,342
184,691 AQUIFER FUNDING LIMITED++ 4.80 05/03/2006 184,641
62,396 AQUIFER FUNDING LIMITED++ 4.80 05/04/2006 62,371
62,396 AQUINAS FUNDING LLC++ 5.04 06/23/2006 61,940
127,531 ATLANTIC ASSET SECURITIZATION CORPORATION++ 4.86 05/11/2006 127,359
124,791 ATLAS CAPITAL FUNDING CORPORATION SERIES MTN+/- 4.81 11/03/2006 124,791
29,950 ATLAS CAPITAL FUNDING LIMITED++ 4.60 05/15/2006 29,893
62,396 ATLAS CAPITAL FUNDING LIMITED+/-++ 4.93 12/22/2006 62,395
62,396 ATLAS CAPITAL FUNDING LIMITED+/-++ 4.94 10/20/2006 62,395
62,396 ATLAS CAPITAL FUNDING LIMITED SERIES MTN+/- 4.98 04/25/2007 62,395
4,091 ATOMIUM FUNDING CORPORATION++ 4.81 05/03/2006 4,090
237,734 ATOMIUM FUNDING CORPORATION++ 4.81 05/04/2006 237,639
50,288 ATOMIUM FUNDING CORPORATION++ 4.83 05/05/2006 50,262
30,354 ATOMIUM FUNDING CORPORATION++ 5.00 06/12/2006 30,179
149,749 BASF AG++ 4.81 05/04/2006 149,689
74,875 BEAR STEARNS & COMPANY+/- 4.93 10/04/2006 74,875
127,856 BEAR STEARNS & COMPANY REPURCHASE AGREEMENT
(MATURITY VALUE $127,873) 4.92 05/01/2006 127,856
8,658 BETA FINANCE INCORPORATED SERIES MTN+/- 4.91 06/02/2006 8,659
1,372,701 BNP PARIBAS REPURCHASE AGREEMENT
(MATURITY VALUE $1,372,889) 4.93 05/01/2006 1,372,701
83,103 BUCKINGHAM CDO LLC++ 4.96 05/23/2006 82,853
124,791 BUCKINGHAM CDO LLC++ 5.08 07/24/2006 123,341
150,241 BUCKINGHAM II CDO LLC++ 4.86 05/08/2006 150,101
17,471 BUCKINGHAM II CDO LLC++ 4.95 05/24/2006 17,416
32,446 CAIRN HIGH GRADE FUNDING I++ 4.76 05/10/2006 32,406
62,396 CAIRN HIGH GRADE FUNDING I++ 4.81 05/02/2006 62,387
49,916 CAIRN HIGH GRADE FUNDING I++ 4.83 05/08/2006 49,870
42,429 CAIRN HIGH GRADE FUNDING I++ 4.93 05/18/2006 42,331
34,442 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.68 05/08/2006 34,410
11,099 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.69 05/10/2006 11,085
49,916 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.70 05/12/2006 49,842
25,764 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.80 05/05/2006 25,751
80,338 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.83 05/09/2006 80,251
24,958 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.89 06/07/2006 24,831
66,426 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.90 06/12/2006 66,043
78,169 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.99 06/21/2006 77,620
36,189 CEDAR SPRINGS CAPITAL COMPANY LLC++ 5.01 06/05/2006 36,015
124,791 CONCORD MINUTEMEN CAPITAL COMPANY SERIES A++ 4.83 05/12/2006 124,605
62,640 CONCORD MINUTEMEN CAPITAL COMPANY SERIES A++ 4.85 05/11/2006 62,556
174,707 CONCORD MINUTEMEN CAPITAL COMPANY SERIES B+/-++ 4.85 05/14/2006 174,707
161,480 CORPORATE ASSET SECURITIZATION AUSTRALIA LIMITED++ 5.00 05/25/2006 160,948
77,370 CREDIT SUISSE FIRST BOSTON NEW YORK SERIES YCD1+/- 4.92 05/04/2006 77,366
62,396 CULLINAN FINANCE CORPORATION SERIES MTN+/- 4.71 11/15/2006 62,402
32,446 DEER VALLEY FUNDING LLC++ 4.78 05/03/2006 32,437
94,841 DEER VALLEY FUNDING LLC++ 4.84 05/08/2006 94,753
25
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
ENTERPRISE FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 4,884 DEER VALLEY FUNDING LLC++ 4.89% 05/15/2006 $ 4,875
39,893 DEER VALLEY FUNDING LLC++ 4.92 05/16/2006 39,812
310,471 DEUTSCHE BANK REPURCHASE AGREEMENT
(MATURITY VALUE $310,513) 4.82 05/01/2006 310,471
3,993 EDISON ASSET SECURITIZATION LLC++ 4.84 05/15/2006 3,986
4,992 EIFFEL FUNDING LLC++ 4.80 05/01/2006 4,992
89,902 EUREKA SECURITIZATION INCORPORATED++ 4.86 05/16/2006 89,719
149,749 GEMINI SECURITIZATION INCORPORATED++ 4.79 05/01/2006 149,749
3,744 GEMINI SECURITIZATION INCORPORATED++ 4.88 05/24/2006 3,732
112,250 GEORGE STREET FINANCE LLC++ 4.80 05/02/2006 112,235
59,900 GOLDMAN SACHS GROUP INCORPORATED+/- 4.97 06/30/2006 59,900
4,992 HARRIER FINANCE FUNDING LLC SERIES MTN+/- 4.98 05/15/2007 4,993
8,735 HBOS TREASURY SERVICES PLC+/-++ 5.12 01/12/2007 8,744
39,933 ING USA ANNUITY & LIFE INSURANCE+/- 5.03 06/06/2006 39,933
3,245 K2 (USA) LLC++ 4.61 05/02/2006 3,244
11,543 K2 (USA) LLC SERIES MTN+/- 4.90 07/24/2006 11,545
37,437 KAUPTHING BANK HF SERIES MTN+/- 4.98 03/20/2007 37,380
9,983 KLIO II FUNDING CORPORATION++ 4.96 06/30/2006 9,901
83,433 KLIO III FUNDING CORPORATION++ 4.93 05/22/2006 83,194
119,969 KLIO III FUNDING CORPORATION++ 4.96 06/30/2006 118,977
2,496 LEXINGTON PARKER CAPITAL CORPORATION 4.60 05/02/2006 2,495
9,474 LEXINGTON PARKER CAPITAL CORPORATION++ 4.68 05/10/2006 9,463
400,008 LEXINGTON PARKER CAPITAL CORPORATION++ 4.85 05/05/2006 399,796
4,243 LEXINGTON PARKER CAPITAL CORPORATION 4.96 06/20/2006 4,214
62,396 LIBERTY LIGHT US CAPITAL SERIES MTN+/- 4.84 05/26/2006 62,397
4,992 LINKS FINANCE LLC SERIES MTN1+/- 4.82 09/12/2006 4,992
37,437 LIQUID FUNDING LIMITED+/-++ 4.79 12/01/2006 37,437
57,404 LIQUID FUNDING LIMITED+/-++ 4.88 08/14/2006 57,404
14,975 LIQUID FUNDING LIMITED SERIES MTN+/- 4.85 02/20/2007 14,975
24,958 MBIA GLOBAL FUNDING LLC+/-++ 4.92 02/20/2007 24,957
125,415 MERRILL LYNCH & COMPANY SERIES MTN+/- 5.28 10/27/2006 125,515
74,875 MORGAN STANLEY+/- 4.94 10/10/2006 74,875
11,543 MORGAN STANLEY SERIES EXL+/- 4.93 08/13/2010 11,546
56,406 MORTGAGE INTEREST NET TRUST 4.76 05/03/2006 56,390
2,496 NATIONWIDE BUILDING SOC+/-++ 5.20 07/21/2006 2,497
11,126 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 4.91 06/26/2006 11,040
4,006 NORDEA NORTH AMERICA INCORPORATED 4.80 05/03/2006 4,005
7,987 NORDEA NORTH AMERICA INCORPORATED 4.81 05/09/2006 7,978
4,742 NORDEA NORTH AMERICA INCORPORATED 4.87 05/15/2006 4,733
7,475 NORTH SEA FUNDING, LLC++ 5.00 06/26/2006 7,417
124,791 NORTHERN ROCK PLC+/-++ 4.83 02/05/2007 124,797
10,096 RACERS TRUST 2004-6-MM+/-++ 4.95 05/22/2006 10,097
47,039 REGENCY MARKETS #1 LLC++ 5.06 07/20/2006 46,518
2,496 SCALDIS CAPITAL LIMITED++ 4.91 06/15/2006 2,480
124,529 SEDNA FINANCE INCORPORATED++ 4.86 05/02/2006 124,513
49,916 SLM CORPORATION+/-++ 4.86 05/04/2007 49,904
19,967 SWEDBANK (FORENINGS SPARBANKEN) 4.81 05/09/2006 19,945
12,479 SWEDISH NATIONAL HOUSING FINANCE (SBAB) 5.06 07/18/2006 12,344
26
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
ENTERPRISE FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 9,983 TANGO FINANCE CORPORATION++ 4.94% 06/21/2006 $ 9,913
28,859 TANGO FINANCE CORPORATION SERIES MTN+/- 4.90 10/25/2006 28,869
75,446 THUNDER BAY FUNDING INCORPORATED++ 5.00 06/16/2006 74,968
88,886 TIERRA ALTA FUNDING I LIMITED++ 4.82 05/10/2006 88,778
128,640 TIERRA ALTA FUNDING I LIMITED++ 4.83 05/11/2006 128,466
14,428 TRAVELERS INSURANCE COMPANY+/- 4.92 02/09/2007 14,428
62,396 UNICREDITO ITALIANO SERIES LIB+/- 4.86 03/09/2007 62,394
94,841 US BANK NA SERIES BKNT+/- 5.13 07/28/2006 94,846
7,487 VERSAILLES CDS LLC++ 4.87 05/15/2006 7,473
62,396 VERSAILLES CDS LLC++ 4.99 06/20/2006 61,966
2,496 VERSAILLES CDS LLC++ 5.00 06/21/2006 2,478
26,361 VERSAILLES CDS LLC++ 5.04 06/28/2006 26,150
24,958 WHISTLEJACKET CAPITAL LIMITED+/-++ 4.80 06/09/2006 24,958
12,479 WHISTLEJACKET CAPITAL LIMITED++ 4.91 05/15/2006 12,456
40,320 WHISTLEJACKET CAPITAL LIMITED++ 5.02 06/26/2006 40,009
12,479 WHITE PINE FINANCE LLC++ 4.80 05/05/2006 12,472
10,188 WHITE PINE FINANCE LLC++ 4.83 05/25/2006 10,154
62,396 WHITE PINE FINANCE LLC+/-++ 4.85 07/17/2006 62,395
7,667 WHITE PINE FINANCE LLC++ 4.91 06/20/2006 7,614
65,862 WHITE PINE FINANCE LLC++ 4.92 06/22/2006 65,391
59,900 WHITE PINE FINANCE LLC SERIES MTN1+/- 4.84 06/12/2006 59,902
7,950,791
-------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $8,245,344) 8,245,344
-------------
SHARES
SHORT-TERM INVESTMENTS - 0.92%
2,286,630 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~@ 2,286,630
-------------
TOTAL SHORT-TERM INVESTMENTS (COST $2,286,630) 2,286,630
-------------
TOTAL INVESTMENTS IN SECURITIES
(COST $215,014,405)* 103.68% $ 257,563,651
OTHER ASSETS AND LIABILITIES, NET (3.68) (9,136,188)
------ -------------
TOTAL NET ASSETS 100.00% $ 248,427,463
------ -------------
+ 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 $2,286,630.
* 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 SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
MID CAP DISCIPLINED FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 87.73%
AMUSEMENT & RECREATION SERVICES - 2.42%
1,980,000 WESTWOOD ONE INCORPORATED $ 19,107,000
6,000 WORLD WRESTLING ENTERTAINMENT INCORPORATED 104,040
19,211,040
--------------
BUSINESS SERVICES - 3.28%
150,000 CA INCORPORATED<< 3,804,000
818,900 ELECTRONIC DATA SYSTEMS CORPORATION 22,175,812
5,000 SYMANTEC CORPORATION+ 81,900
5,000 UNISYS CORPORATION+ 31,200
26,092,912
--------------
CHEMICALS & ALLIED PRODUCTS - 0.01%
2,200 IMCLONE SYSTEMS INCORPORATED+ 79,420
--------------
COMMUNICATIONS - 7.60%
780,000 CLEAR CHANNEL COMMUNICATIONS INCORPORATED 22,253,400
1,630,000 CUMULUS MEDIA INCORPORATED CLASS A+ 17,212,800
5,000 IAC INTERACTIVECORP+<< 144,350
1,034,800 RADIO ONE INCORPORATED CLASS D+ 7,440,212
2,649,000 SPANISH BROADCASTING SYSTEM INCORPORATED** 13,403,940
60,454,702
--------------
DEPOSITORY INSTITUTIONS - 0.18%
89,359 FIRST FINANCIAL BANCORP 1,432,425
--------------
ELECTRIC, GAS & SANITARY SERVICES - 11.78%
5,000 CENTERPOINT ENERGY INCORPORATED<< 60,100
73,000 DTE ENERGY COMPANY<< 2,976,940
925,000 KEYSPAN CORPORATION 37,351,500
990,000 PNM RESOURCES INCORPORATED 25,056,900
755,000 WASTE MANAGEMENT INCORPORATED 28,282,300
93,727,740
--------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT - 1.08%
749,800 FLEXTRONICS INTERNATIONAL LIMITED+ 8,517,728
27,000 NORTEL NETWORKS CORPORATION+ 71,820
8,589,548
--------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED
SERVICES - 0.01%
10,000 SERVICEMASTER COMPANY 120,400
--------------
FOOD & KINDRED PRODUCTS - 16.23%
5,000 CAMPBELL SOUP COMPANY 160,700
1,260,000 COCA-COLA ENTERPRISES INCORPORATED 24,607,800
740,000 CONAGRA FOODS INCORPORATED 16,783,200
2,949,000 DEL MONTE FOODS COMPANY 34,385,340
1,840,000 HERCULES INCORPORATED+ 26,146,400
609,600 SARA LEE CORPORATION 10,893,552
28
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
MID CAP DISCIPLINED FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
FOOD & KINDRED PRODUCTS (CONTINUED)
61,000 SMITHFIELD FOODS INCORPORATED+ $ 1,640,900
169,426 TOOTSIE ROLL INDUSTRIES INCORPORATED 4,955,710
650,000 TYSON FOODS INCORPORATED CLASS A 9,490,000
129,063,602
--------------
FOOD STORES - 11.03%
1,185,000 ALBERTSON'S INCORPORATED<< 30,016,050
2,850,000 KONINKLIJKE AHOLD NV+ 23,551,045
1,685,000 KROGER COMPANY+ 34,138,100
87,705,195
--------------
FURNITURE & FIXTURES - 0.02%
5,000 NEWELL RUBBERMAID INCORPORATED<< 137,100
--------------
HEALTH SERVICES - 0.01%
2,000 TRIAD HOSPITALS INCORPORATED+ 82,400
--------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 3.24%
201,000 CAMERON CORPORATION+<< 10,098,240
227,600 NATIONAL-OILWELL VARCO INCORPORATED+<< 15,697,572
25,795,812
--------------
INSURANCE CARRIERS - 3.01%
2,000 CONSECO INCORPORATED+ 50,500
1,000 LOEWS CORPORATION 106,150
673,100 OHIO CASUALTY CORPORATION 19,957,415
10,000 SAFECO CORPORATION 519,000
132,300 SCOTTISH RE GROUP LIMITED 3,073,329
5,000 ST. PAUL TRAVELERS COMPANIES INCORPORATED 220,150
23,926,544
--------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS - 3.29%
5,000 BOSTON SCIENTIFIC CORPORATION+ 116,200
5,000 MILLIPORE CORPORATION+<< 368,900
580,000 RAYTHEON COMPANY 25,676,600
26,161,700
--------------
METAL MINING - 5.21%
1,360,000 BARRICK GOLD CORPORATION<< 41,452,800
--------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 0.57%
95,000 MATTEL INCORPORATED 1,537,100
115,000 TYCO INTERNATIONAL LIMITED 3,030,250
4,567,350
--------------
MOTION PICTURES - 1.42%
650,000 TIME WARNER INCORPORATED 11,310,000
--------------
OIL & GAS EXTRACTION - 4.27%
1,686,700 HANOVER COMPRESSOR COMPANY+ 34,003,872
--------------
29
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
MID CAP DISCIPLINED FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
PAPER & ALLIED PRODUCTS - 3.66%
115,000 INTERNATIONAL PAPER COMPANY<< $ 4,180,250
875,500 MEADWESTVACO CORPORATION 24,960,505
29,140,755
--------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 7.21%
950,000 CBS CORPORATION CLASS B<< 24,196,500
2,115,000 READER'S DIGEST ASSOCIATION INCORPORATED 29,144,700
100,000 VIACOM INCORPORATED CLASS B+ 3,983,000
57,324,200
--------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 2.10%
510,000 CABOT MICROELECTRONICS CORPORATION+ 16,682,100
--------------
TRANSPORTATION EQUIPMENT - 0.09%
40,200 GENERAL MOTORS PREFERRED 636,366
3,000 LEAR CORPORATION 70,740
707,106
--------------
TRANSPORTATION SERVICES - 0.01%
3,000 EXPEDIA INCORPORATED+ 55,950
--------------
TOTAL COMMON STOCKS (COST $651,152,984) 697,824,673
--------------
COLLATERAL FOR SECURITIES LENDING - 8.45%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.30%
2,400,921 SCUDDER DAILY ASSETS MONEY MARKET FUND 2,400,921
--------------
PRINCIPAL INTEREST RATE MATURITY DATE
COLLATERAL INVESTED IN OTHER ASSETS - 8.15%
$ 183,093 AMERICAN GENERAL FINANCE CORPORATION+/-++ 4.93% 05/15/2007 183,169
76,228 APRECO LLC++ 4.60 05/15/2006 76,083
166,838 APRECO LLC++ 4.92 06/15/2006 165,805
1,505,427 AQUIFER FUNDING LIMITED++ 4.80 05/03/2006 1,505,021
508,590 AQUIFER FUNDING LIMITED++ 4.80 05/04/2006 508,387
508,590 AQUINAS FUNDING LLC++ 5.04 06/23/2006 504,878
1,039,518 ATLANTIC ASSET SECURITIZATION CORPORATION++ 4.86 05/11/2006 1,038,115
1,017,181 ATLAS CAPITAL FUNDING CORPORATION SERIES MTN+/- 4.81 11/03/2006 1,017,181
244,123 ATLAS CAPITAL FUNDING LIMITED++ 4.60 05/15/2006 243,662
508,590 ATLAS CAPITAL FUNDING LIMITED+/-++ 4.93 12/22/2006 508,590
508,590 ATLAS CAPITAL FUNDING LIMITED+/-++ 4.94 10/20/2006 508,590
508,590 ATLAS CAPITAL FUNDING LIMITED SERIES MTN+/- 4.98 04/25/2007 508,590
33,343 ATOMIUM FUNDING CORPORATION++ 4.81 05/03/2006 33,334
1,937,790 ATOMIUM FUNDING CORPORATION++ 4.81 05/04/2006 1,937,015
409,903 ATOMIUM FUNDING CORPORATION++ 4.83 05/05/2006 409,686
247,419 ATOMIUM FUNDING CORPORATION++ 5.00 06/12/2006 245,991
1,220,617 BASF AG++ 4.81 05/04/2006 1,220,128
610,308 BEAR STEARNS & COMPANY+/- 4.93 10/04/2006 610,308
1,042,165 BEAR STEARNS & COMPANY REPURCHASE AGREEMENT
(MATURITY VALUE $1,042,307) 4.92 05/01/2006 1,042,165
70,572 BETA FINANCE INCORPORATED SERIES MTN+/- 4.91 06/02/2006 70,576
30
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
MID CAP DISCIPLINED FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$11,188,986 BNP PARIBAS REPURCHASE AGREEMENT
(MATURITY VALUE $11,190,518) 4.93% 05/01/2006 $ 11,188,986
677,381 BUCKINGHAM CDO LLC++ 4.96 05/23/2006 675,342
1,017,181 BUCKINGHAM CDO LLC++ 5.08 07/24/2006 1,005,361
1,224,624 BUCKINGHAM II CDO LLC++ 4.86 05/08/2006 1,223,485
142,405 BUCKINGHAM II CDO LLC++ 4.95 05/24/2006 141,957
264,467 CAIRN HIGH GRADE FUNDING I++ 4.76 05/10/2006 264,144
508,590 CAIRN HIGH GRADE FUNDING I++ 4.81 05/02/2006 508,524
406,872 CAIRN HIGH GRADE FUNDING I++ 4.83 05/08/2006 406,494
345,841 CAIRN HIGH GRADE FUNDING I++ 4.93 05/18/2006 345,043
280,742 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.68 05/08/2006 280,481
90,468 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.69 05/10/2006 90,358
406,872 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.70 05/12/2006 406,266
210,007 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.80 05/05/2006 209,896
654,840 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.83 05/09/2006 654,133
203,436 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.89 06/07/2006 202,401
541,445 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.90 06/12/2006 538,321
637,162 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.99 06/21/2006 632,683
294,982 CEDAR SPRINGS CAPITAL COMPANY LLC++ 5.01 06/05/2006 293,564
1,017,181 CONCORD MINUTEMEN CAPITAL COMPANY SERIES A++ 4.83 05/12/2006 1,015,665
510,584 CONCORD MINUTEMEN CAPITAL COMPANY SERIES A++ 4.85 05/11/2006 509,895
1,424,053 CONCORD MINUTEMEN CAPITAL COMPANY SERIES B+/-++ 4.85 05/14/2006 1,424,053
1,316,232 CORPORATE ASSET SECURITIZATION AUSTRALIA LIMITED++ 5.00 05/25/2006 1,311,901
630,652 CREDIT SUISSE FIRST BOSTON NEW YORK SERIES YCD1+/- 4.92 05/04/2006 630,614
508,590 CULLINAN FINANCE CORPORATION SERIES MTN+/- 4.71 11/15/2006 508,641
264,467 DEER VALLEY FUNDING LLC++ 4.78 05/03/2006 264,396
773,057 DEER VALLEY FUNDING LLC++ 4.84 05/08/2006 772,338
39,812 DEER VALLEY FUNDING LLC++ 4.89 05/15/2006 39,737
325,172 DEER VALLEY FUNDING LLC++ 4.92 05/16/2006 324,512
2,530,671 DEUTSCHE BANK REPURCHASE AGREEMENT
(MATURITY VALUE $2,531,010) 4.82 05/01/2006 2,530,671
32,550 EDISON ASSET SECURITIZATION LLC++ 4.84 05/15/2006 32,488
40,687 EIFFEL FUNDING LLC++ 4.80 05/01/2006 40,687
732,797 EUREKA SECURITIZATION INCORPORATED++ 4.86 05/16/2006 731,310
1,220,617 GEMINI SECURITIZATION INCORPORATED++ 4.79 05/01/2006 1,220,617
30,515 GEMINI SECURITIZATION INCORPORATED++ 4.88 05/24/2006 30,419
914,954 GEORGE STREET FINANCE LLC 4.80 05/02/2006 914,835
488,247 GOLDMAN SACHS GROUP INCORPORATED+/- 4.97 06/30/2006 488,247
40,687 HARRIER FINANCE FUNDING LLC+/-++ 4.98 05/15/2007 40,696
71,203 HBOS TREASURY SERVICES PLC+/-++ 5.12 01/12/2007 71,274
325,498 ING USA ANNUITY & LIFE INSURANCE+/- 5.03 06/06/2006 325,498
26,447 K2 (USA) LLC 4.61 05/02/2006 26,443
94,089 K2 (USA) LLC SERIES MTN+/- 4.90 07/24/2006 94,108
305,154 KAUPTHING BANK HF SERIES MTN+/- 4.98 03/20/2007 304,690
81,374 KLIO II FUNDING CORPORATION++ 4.96 06/30/2006 80,701
680,067 KLIO III FUNDING CORPORATION++ 4.93 05/22/2006 678,122
977,877 KLIO III FUNDING CORPORATION++ 4.96 06/30/2006 969,790
20,344 LEXINGTON PARKER CAPITAL CORPORATION 4.60 05/02/2006 20,341
31
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
MID CAP DISCIPLINED FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 77,224 LEXINGTON PARKER CAPITAL CORPORATION++ 4.68% 05/10/2006 $ 77,130
3,260,491 LEXINGTON PARKER CAPITAL CORPORATION++ 4.85 05/05/2006 3,258,763
34,584 LEXINGTON PARKER CAPITAL CORPORATION 4.96 06/20/2006 34,346
508,590 LIBERTY LIGHT US CAPITAL SERIES MTN+/- 4.84 05/26/2006 508,600
40,687 LINKS FINANCE LLC SERIES MTN1+/- 4.82 09/12/2006 40,687
305,154 LIQUID FUNDING LIMITED+/-++ 4.79 12/01/2006 305,154
467,903 LIQUID FUNDING LIMITED+/-++ 4.88 08/14/2006 467,903
122,062 LIQUID FUNDING LIMITED SERIES MTN+/- 4.85 02/20/2007 122,064
203,436 MBIA GLOBAL FUNDING LLC+/-++ 4.92 02/20/2007 203,424
1,022,266 MERRILL LYNCH & COMPANY SERIES MTN+/- 5.28 10/27/2006 1,023,084
610,308 MORGAN STANLEY+/- 4.94 10/10/2006 610,308
94,089 MORGAN STANLEY SERIES EXL+/- 4.93 08/13/2010 94,112
459,766 MORTGAGE INTEREST NET TRUST 4.76 05/03/2006 459,641
20,344 NATIONWIDE BUILDING SOC+/-++ 5.20 07/21/2006 20,351
90,692 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 4.91 06/26/2006 89,992
32,652 NORDEA NORTH AMERICA INCORPORATED 4.80 05/03/2006 32,643
65,100 NORDEA NORTH AMERICA INCORPORATED 4.81 05/09/2006 65,029
38,653 NORDEA NORTH AMERICA INCORPORATED 4.87 05/15/2006 38,580
60,929 NORTH SEA FUNDING, LLC++ 5.00 06/26/2006 60,459
1,017,181 NORTHERN ROCK PLC+/-++ 4.83 02/05/2007 1,017,231
82,290 RACERS TRUST 2004-6-MM+/-++ 4.95 05/22/2006 82,301
383,416 REGENCY MARKETS #1 LLC++ 5.06 07/20/2006 379,172
20,344 SCALDIS CAPITAL LIMITED++ 4.91 06/15/2006 20,218
1,015,044 SEDNA FINANCE INCORPORATED++ 4.86 05/02/2006 1,014,913
406,872 SLM CORPORATION+/-++ 4.86 05/04/2007 406,771
162,749 SWEDBANK (FORENINGS SPARBANKEN) 4.81 05/09/2006 162,573
101,718 SWEDISH NATIONAL HOUSING FINANCE (SBAB) 5.06 07/18/2006 100,621
81,374 TANGO FINANCE CORPORATION++ 4.94 06/21/2006 80,802
235,233 TANGO FINANCE CORPORATION SERIES MTN+/- 4.90 10/25/2006 235,311
614,967 THUNDER BAY FUNDING INCORPORATED++ 5.00 06/16/2006 611,068
724,517 TIERRA ALTA FUNDING I LIMITED++ 4.82 05/10/2006 723,633
1,048,550 TIERRA ALTA FUNDING I LIMITED++ 4.83 05/11/2006 1,047,135
117,606 TRAVELERS INSURANCE COMPANY+/- 4.92 02/09/2007 117,604
508,590 UNICREDITO ITALIANO SERIES LIB+/- 4.86 03/09/2007 508,580
773,057 US BANK NA SERIES BKNT+/- 5.13 07/28/2006 773,096
61,031 VERSAILLES CDS LLC++ 4.87 05/15/2006 60,915
508,590 VERSAILLES CDS LLC++ 4.99 06/20/2006 505,086
20,344 VERSAILLES CDS LLC++ 5.00 06/21/2006 20,201
214,869 VERSAILLES CDS LLC++ 5.04 06/28/2006 213,152
203,436 WHISTLEJACKET CAPITAL LIMITED+/-++ 4.80 06/09/2006 203,436
101,718 WHISTLEJACKET CAPITAL LIMITED++ 4.91 05/15/2006 101,526
328,651 WHISTLEJACKET CAPITAL LIMITED++ 5.02 06/26/2006 326,114
101,718 WHITE PINE FINANCE LLC++ 4.80 05/05/2006 101,664
83,043 WHITE PINE FINANCE LLC++ 4.83 05/25/2006 82,769
508,590 WHITE PINE FINANCE LLC+/-++ 4.85 07/17/2006 508,590
62,496 WHITE PINE FINANCE LLC++ 4.91 06/20/2006 62,065
32
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
MID CAP DISCIPLINED FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 536,848 WHITE PINE FINANCE LLC++ 4.92% 06/22/2006 $ 533,004
488,247 WHITE PINE FINANCE LLC SERIES MTN1+/- 4.84 06/12/2006 488,266
64,807,489
--------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $67,208,410) 67,208,410
--------------
SHORT-TERM INVESTMENTS - 7.71%
SHARES
MUTUAL FUNDS - 5.74%
45,627,650 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~@ 45,627,650
--------------
PRINCIPAL
US TREASURY BILLS - 1.97%
$15,700,000 US TREASURY BILL<<^ 4.39 05/11/2006 15,680,860
--------------
TOTAL SHORT-TERM INVESTMENTS (COST $61,308,483) 61,308,510
--------------
TOTAL INVESTMENTS IN SECURITIES
(COST $779,669,877)* 103.89% $ 826,341,593
OTHER ASSETS AND LIABILITIES, NET (3.89) (30,939,959)
------ --------------
TOTAL NET ASSETS 100.00% $ 795,401,634
------ --------------
+ NON-INCOME EARNING SECURITIES.
<< ALL OR A PORTION OF THIS SECURITY IS ON LOAN. (SEE NOTE 2)
** REPRESENTS AN AFFILIATE OF THE FUND UNDER SECTION 2(A)(2) AND 2(A)(3) OF
THE 1940 ACT AS THE FUND HOLDS 5% OR MORE OF THE ISSUERS' OUTSTANDING
VOTING SHARES.
+/- 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 $45,627,650.
^ ZERO COUPON BOND. INTEREST RATE PRESENTED IS YIELD TO MATURITY.
* 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 SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
OPPORTUNITY FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 87.71%
APPAREL & ACCESSORY STORES - 4.01%
1,650,000 GAP INCORPORATED $ 29,848,500
945,000 NORDSTROM INCORPORATED 36,221,850
1,005,000 URBAN OUTFITTERS INCORPORATED+ 23,316,000
89,386,350
--------------
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS - 1.80%
1,776,137 AUTONATION INCORPORATED+<< 39,998,605
--------------
BUSINESS SERVICES - 13.00%
1,825,000 CADENCE DESIGN SYSTEMS INCORPORATED+<< 34,547,250
1,890,000 CNET NETWORKS INCORPORATED+ 20,374,200
430,000 COMPUTER SCIENCES CORPORATION+ 25,176,500
755,000 HYPERION SOLUTIONS CORPORATION+ 23,118,100
1,330,000 IMS HEALTH INCORPORATED 36,149,400
3,170,000 INTERPUBLIC GROUP OF COMPANIES INCORPORATED+ 30,368,600
324,000 OMNICOM GROUP INCORPORATED 29,163,240
1,724,400 RED HAT INCORPORATED+ 50,680,116
1,700,000 UNISYS CORPORATION+ 10,608,000
1,255,000 VERISIGN INCORPORATED+<< 29,517,600
289,703,006
--------------
CHEMICALS & ALLIED PRODUCTS - 3.19%
639,500 ALBERTO-CULVER COMPANY CLASS B 28,758,315
755,000 PRAXAIR INCORPORATED 42,378,150
71,136,465
--------------
COMMUNICATIONS - 5.47%
1,460,000 CABLEVISION SYSTEMS NEW YORK GROUP CLASS A+ 29,594,200
1,145,000 COMCAST CORPORATION CLASS A+<< 35,300,350
1,555,000 DIRECTV GROUP INCORPORATED+<< 26,559,400
485,300 UNITED STATES CELLULAR CORPORATION+<< 30,282,720
121,736,670
--------------
DEPOSITORY INSTITUTIONS - 1.12%
710,000 BANK OF NEW YORK COMPANY INCORPORATED 24,956,500
--------------
ELECTRIC, GAS & SANITARY SERVICES - 2.63%
1,355,000 NISOURCE INCORPORATED 28,604,050
800,000 WASTE MANAGEMENT INCORPORATED 29,968,000
58,572,050
--------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT - 6.52%
6,500,000 ARM HOLDINGS PLC 16,120,209
2,550,000 CELESTICA INCORPORATED+<< 28,713,000
1,550,000 MICRON TECHNOLOGY INCORPORATED+<< 26,303,500
1,334,000 MOLEX INCORPORATED CLASS A 42,888,100
3,288,000 SANMINA-SCI CORPORATION+ 17,064,720
907,400 VISHAY INTERTECHNOLOGY INCORPORATED+ 14,128,218
145,217,747
--------------
34
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
OPPORTUNITY FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED
SERVICES - 1.35%
1,035,000 ACCENTURE LIMITED CLASS A $ 30,087,450
--------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION
EQUIPMENT - 2.48%
325,000 FORTUNE BRANDS INCORPORATED 26,097,500
284,000 ILLINOIS TOOL WORKS INCORPORATED 29,166,800
55,264,300
--------------
FOOD & KINDRED PRODUCTS - 0.57%
650,000 COCA-COLA ENTERPRISES INCORPORATED 12,694,500
--------------
FORESTRY - 1.24%
393,000 WEYERHAEUSER COMPANY 27,694,710
--------------
GENERAL MERCHANDISE STORES - 2.76%
525,000 TARGET CORPORATION 27,877,500
1,395,000 TJX COMPANIES INCORPORATED 33,661,350
61,538,850
--------------
HEALTH SERVICES - 1.22%
1,310,000 HEALTH MANAGEMENT ASSOCIATION INCORPORATED
CLASS A<< 27,130,100
--------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 1.29%
750,000 BED BATH & BEYOND INCORPORATED+<< 28,762,500
--------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 2.40%
560,000 AMERICAN STANDARD COMPANIES INCORPORATED<< 24,376,800
960,000 PALL CORPORATION 28,972,800
53,349,600
--------------
INSURANCE CARRIERS - 6.23%
495,000 ACE LIMITED 27,492,300
365,000 AMBAC FINANCIAL GROUP INCORPORATED 30,061,400
403,000 MGIC INVESTMENT CORPORATION 28,492,100
630,000 RENAISSANCERE HOLDINGS LIMITED<< 26,491,500
397,000 XL CAPITAL LIMITED CLASS A 26,158,330
138,695,630
--------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS - 3.60%
341,800 BIOMET INCORPORATED<< 12,708,124
487,000 FISHER SCIENTIFIC INTERNATIONAL INCORPORATED+<< 34,357,850
730,000 WATERS CORPORATION+ 33,083,600
80,149,574
--------------
METAL MINING - 0.79%
271,500 FREEPORT-MCMORAN COPPER & GOLD INCORPORATED
CLASS B 17,533,470
--------------
MISCELLANEOUS RETAIL - 1.57%
1,325,000 STAPLES INCORPORATED 34,993,250
--------------
MOTION PICTURES - 1.12%
2,988,000 LIBERTY MEDIA CORPORATION CLASS A+<< 24,949,800
--------------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING - 1.73%
1,620,000 J.B. HUNT TRANSPORT SERVICES INCORPORATED 38,604,600
--------------
35
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
OPPORTUNITY FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
OIL & GAS EXTRACTION - 11.80%
606,000 APACHE CORPORATION $ 43,056,300
495,000 DEVON ENERGY CORPORATION<< 29,754,450
674,000 ENSCO INTERNATIONAL INCORPORATED 36,052,260
731,000 GLOBALSANTAFE CORPORATION 44,744,510
460,000 TRANSOCEAN INCORPORATED+<< 37,292,200
1,360,000 WEATHERFORD INTERNATIONAL LIMITED+ 71,984,800
262,884,520
--------------
PERSONAL SERVICES - 1.04%
659,100 REGIS CORPORATION 23,114,637
--------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 2.43%
634,000 E.W. SCRIPPS COMPANY CLASS A<< 29,214,720
865,000 TRIBUNE COMPANY<< 24,937,950
54,152,670
--------------
SEMICONDUCTOR EQUIPMENT MANUFACTURING & RELATED - 1.23%
1,300,000 ASML HOLDING NV NEW YORK REGISTERED SHARES+<< 27,495,000
--------------
TEXTILE MILL PRODUCTS - 1.23%
342,000 MOHAWK INDUSTRIES INCORPORATED+ 27,394,200
--------------
TRANSPORTATION EQUIPMENT - 1.44%
410,000 MAGNA INTERNATIONAL INCORPORATED CLASS A<< 32,164,500
--------------
TRANSPORTATION SERVICES - 1.13%
1,350,000 EXPEDIA INCORPORATED+ 25,177,500
--------------
WHOLESALE TRADE NON-DURABLE GOODS - 1.32%
360,000 NIKE INCORPORATED CLASS B 29,462,400
--------------
TOTAL COMMON STOCKS (COST $1,422,436,394) 1,954,001,154
--------------
INVESTMENT COMPANIES - 3.66%
STOCK FUNDS - 3.66%
185,000 ISHARES NASDAQ BIOTECH INDEX FUND+ 14,367,100
515,000 ISHARES S&P SMALLCAP 600 INDEX FUND 33,629,500
228,000 MIDCAP SPDR TRUST SERIES 1 33,395,160
81,391,760
--------------
TOTAL INVESTMENT COMPANIES (COST $63,147,419) 81,391,760
--------------
CONTRACTS STRIKE PRICE EXPIRATION DATE
OPTIONS - 0.32%
6,345 CNET NETWORKS INCORPORATED PUT+ $ 15.00 07/22/2006 2,601,450
2,550 RED HAT INCORPORATED PUT+ 35.00 09/16/2006 1,555,500
2,150 RED HAT INCORPORATED PUT+ 30.00 06/17/2006 397,750
14,854 UNISYS CORPORATION PUT+ 7.50 07/22/2006 2,079,560
9,074 VISHAY INTERTECHNOLOGY INCORPORATED PUT+ 15.00 07/22/2006 499,070
TOTAL OPTIONS (PREMIUMS PAID $5,675,576) 7,133,330
--------------
36
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
OPPORTUNITY FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
RIGHTS - 0.00%
566,000 SEAGATE TECHNOLOGY RIGHTS+(A) $ 0
TOTAL RIGHTS (COST $0) 0
--------------
PREFERRED STOCKS - 1.34%
39,500 ELECTRONIC ARTS INCORPORATED MEDIUM TERM NOTE+ 2,204,455
1,430,000 JUNIPER NETWORK INCORPORATED MEDIUM TERM NOTE+ 27,593,137
TOTAL PREFERRED STOCKS (COST $29,741,202) 29,797,592
--------------
COLLATERAL FOR SECURITIES LENDING - 9.17%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.33%
7,300,972 SCUDDER DAILY ASSETS MONEY MARKET FUND 7,300,972
--------------
PRINCIPAL INTEREST RATE MATURITY DATE
COLLATERAL INVESTED IN OTHER ASSETS - 8.84%
$ 556,767 AMERICAN GENERAL FINANCE CORPORATION+/-++ 4.93% 05/15/2007 557,001
231,801 APRECO LLC++ 4.60 05/15/2006 231,362
507,338 APRECO LLC++ 4.92 06/15/2006 504,198
4,577,861 AQUIFER FUNDING LIMITED++ 4.80 05/03/2006 4,576,625
1,546,575 AQUIFER FUNDING LIMITED++ 4.80 05/04/2006 1,545,956
1,546,575 AQUINAS FUNDING LLC++ 5.04 06/23/2006 1,535,285
3,161,075 ATLANTIC ASSET SECURITIZATION CORPORATION++ 4.86 05/11/2006 3,156,807
3,093,149 ATLAS CAPITAL FUNDING CORPORATION SERIES MTN+/- 4.81 11/03/2006 3,093,149
742,356 ATLAS CAPITAL FUNDING LIMITED++ 4.60 05/15/2006 740,953
1,546,575 ATLAS CAPITAL FUNDING LIMITED+/-++ 4.93 12/22/2006 1,546,574
1,546,575 ATLAS CAPITAL FUNDING LIMITED+/-++ 4.94 10/20/2006 1,546,574
1,546,575 ATLAS CAPITAL FUNDING LIMITED SERIES MTN+/- 4.98 04/25/2007 1,546,575
101,393 ATOMIUM FUNDING CORPORATION++ 4.81 05/03/2006 101,366
5,892,635 ATOMIUM FUNDING CORPORATION++ 4.81 05/04/2006 5,890,278
1,246,477 ATOMIUM FUNDING CORPORATION++ 4.83 05/05/2006 1,245,817
752,378 ATOMIUM FUNDING CORPORATION++ 5.00 06/12/2006 748,036
3,711,779 BASF AG++ 4.81 05/04/2006 3,710,294
1,855,889 BEAR STEARNS & COMPANY+/- 4.93 10/04/2006 1,855,889
3,169,124 BEAR STEARNS & COMPANY REPURCHASE AGREEMENT
(MATURITY VALUE $3,169,557) 4.92 05/01/2006 3,169,124
214,603 BETA FINANCE INCORPORATED SERIES MTN+/- 4.91 06/02/2006 214,616
34,024,640 BNP PARIBAS REPURCHASE AGREEMENT
(MATURITY VALUE $34,029,299) 4.93 05/01/2006 34,024,640
2,059,852 BUCKINGHAM CDO LLC++ 4.96 05/23/2006 2,053,652
3,093,149 BUCKINGHAM CDO LLC++ 5.08 07/24/2006 3,057,207
3,723,966 BUCKINGHAM II CDO LLC++ 4.86 05/08/2006 3,720,503
433,041 BUCKINGHAM II CDO LLC++ 4.95 05/24/2006 431,677
804,219 CAIRN HIGH GRADE FUNDING I++ 4.76 05/10/2006 803,238
1,546,575 CAIRN HIGH GRADE FUNDING I++ 4.81 05/02/2006 1,546,373
1,237,260 CAIRN HIGH GRADE FUNDING I++ 4.83 05/08/2006 1,236,109
1,051,671 CAIRN HIGH GRADE FUNDING I++ 4.93 05/18/2006 1,049,241
853,709 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.68 05/08/2006 852,915
275,105 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.69 05/10/2006 274,769
1,237,260 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.70 05/12/2006 1,235,416
37
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
OPPORTUNITY FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 638,612 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.80% 05/05/2006 $ 638,273
1,991,308 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.83 05/09/2006 1,989,157
618,630 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.89 06/07/2006 615,481
1,646,483 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.90 06/12/2006 1,636,983
1,937,549 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.99 06/21/2006 1,923,928
897,013 CEDAR SPRINGS CAPITAL COMPANY LLC++ 5.01 06/05/2006 892,699
3,093,149 CONCORD MINUTEMEN CAPITAL COMPANY SERIES A++ 4.83 05/12/2006 3,088,540
1,552,637 CONCORD MINUTEMEN CAPITAL COMPANY SERIES A++ 4.85 05/11/2006 1,550,541
4,330,409 CONCORD MINUTEMEN CAPITAL COMPANY SERIES B+/-++ 4.85 05/14/2006 4,330,409
4,002,535 CORPORATE ASSET SECURITIZATION AUSTRALIA LIMITED++ 5.00 05/25/2006 3,989,367
1,917,752 CREDIT SUISSE FIRST BOSTON NEW YORK SERIES YCD1+/- 4.92 05/04/2006 1,917,637
1,546,575 CULLINAN FINANCE CORPORATION SERIES MTN+/- 4.71 11/15/2006 1,546,729
804,219 DEER VALLEY FUNDING LLC++ 4.78 05/03/2006 804,002
2,350,793 DEER VALLEY FUNDING LLC++ 4.84 05/08/2006 2,348,607
121,066 DEER VALLEY FUNDING LLC++ 4.89 05/15/2006 120,837
988,818 DEER VALLEY FUNDING LLC++ 4.92 05/16/2006 986,811
7,695,531 DEUTSCHE BANK REPURCHASE AGREEMENT
(MATURITY VALUE $7,696,561) 4.82 05/01/2006 7,695,531
98,981 EDISON ASSET SECURITIZATION LLC++ 4.84 05/15/2006 98,794
123,726 EIFFEL FUNDING LLC++ 4.80 05/01/2006 123,726
2,228,366 EUREKA SECURITIZATION INCORPORATED++ 4.86 05/16/2006 2,223,843
3,711,779 GEMINI SECURITIZATION INCORPORATED++ 4.79 05/01/2006 3,711,779
92,794 GEMINI SECURITIZATION INCORPORATED++ 4.88 05/24/2006 92,502
2,782,288 GEORGE STREET FINANCE LLC++ 4.80 05/02/2006 2,781,926
1,484,712 GOLDMAN SACHS GROUP INCORPORATED+/- 4.97 06/30/2006 1,484,712
123,726 HARRIER FINANCE FUNDING LLC SERIES MTN+/- 4.98 05/15/2007 123,753
216,520 HBOS TREASURY SERVICES PLC+/- 5.12 01/12/2007 216,737
989,808 ING USA ANNUITY & LIFE INSURANCE+/- 5.03 06/06/2006 989,808
80,422 K2 (USA) LLC++ 4.61 05/02/2006 80,411
286,116 K2 (USA) LLC SERIES MTN+/- 4.90 07/24/2006 286,173
927,945 KAUPTHING BANK HF SERIES MTN+/- 4.98 03/20/2007 926,534
247,452 KLIO II FUNDING CORPORATION++ 4.96 06/30/2006 245,405
2,068,018 KLIO III FUNDING CORPORATION++ 4.93 05/22/2006 2,062,103
2,973,630 KLIO III FUNDING CORPORATION++ 4.96 06/30/2006 2,949,038
61,863 LEXINGTON PARKER CAPITAL CORPORATION 4.60 05/02/2006 61,855
234,832 LEXINGTON PARKER CAPITAL CORPORATION++ 4.68 05/10/2006 234,545
9,914,842 LEXINGTON PARKER CAPITAL CORPORATION++ 4.85 05/05/2006 9,909,587
105,167 LEXINGTON PARKER CAPITAL CORPORATION 4.96 06/20/2006 104,442
1,546,575 LIBERTY LIGHT US CAPITAL SERIES MTN+/- 4.84 05/26/2006 1,546,605
123,726 LINKS FINANCE LLC SERIES MTN+/- 4.82 09/12/2006 123,726
927,945 LIQUID FUNDING LIMITED+/-++ 4.79 12/01/2006 927,945
1,422,849 LIQUID FUNDING LIMITED+/-++ 4.88 08/14/2006 1,422,849
371,178 LIQUID FUNDING LIMITED SERIES MTN+/- 4.85 02/20/2007 371,185
618,630 MBIA GLOBAL FUNDING LLC+/-++ 4.92 02/20/2007 618,593
3,108,615 MERRILL LYNCH & COMPANY SERIES MTN+/- 5.28 10/27/2006 3,111,102
1,855,889 MORGAN STANLEY+/- 4.94 10/10/2006 1,855,889
286,116 MORGAN STANLEY SERIES EXL+/- 4.93 08/13/2010 286,185
1,398,103 MORTGAGE INTEREST NET TRUST 4.76 05/03/2006 1,397,726
38
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
OPPORTUNITY FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 61,863 NATIONWIDE BUILDING SOC+/-++ 5.20% 07/21/2006 $ 61,885
275,785 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 4.91 06/26/2006 273,656
99,290 NORDEA NORTH AMERICA INCORPORATED 4.80 05/03/2006 99,263
197,962 NORDEA NORTH AMERICA INCORPORATED 4.81 05/09/2006 197,748
117,540 NORDEA NORTH AMERICA INCORPORATED 4.87 05/15/2006 117,317
185,280 NORTH SEA FUNDING LLC++ 5.00 06/26/2006 183,849
3,093,149 NORTHERN ROCK PLC+/-++ 4.83 02/05/2007 3,093,304
250,236 RACERS TRUST 2004-6-MM+/- 4.95 05/22/2006 250,271
1,165,932 REGENCY MARKETS #1 LLC++ 5.06 07/20/2006 1,153,025
61,863 SCALDIS CAPITAL LIMITED++ 4.91 06/15/2006 61,480
3,086,654 SEDNA FINANCE INCORPORATED++ 4.86 05/02/2006 3,086,252
1,237,260 SLM CORPORATION+/-++ 4.86 05/04/2007 1,236,950
494,904 SWEDBANK (FORENINGS SPARBANKEN) 4.81 05/09/2006 494,369
309,315 SWEDISH NATIONAL HOUSING FINANCE (SBAB) 5.06 07/18/2006 305,977
247,452 TANGO FINANCE CORPORATION++ 4.94 06/21/2006 245,712
715,322 TANGO FINANCE CORPORATION SERIES MTN+/- 4.90 10/25/2006 715,558
1,870,056 THUNDER BAY FUNDING INCORPORATED++ 5.00 06/16/2006 1,858,200
2,203,188 TIERRA ALTA FUNDING I LIMITED++ 4.82 05/10/2006 2,200,500
3,188,542 TIERRA ALTA FUNDING I LIMITED++ 4.83 05/11/2006 3,184,237
357,630 TRAVELERS INSURANCE COMPANY+/- 4.92 02/09/2007 357,623
1,546,575 UNICREDITO ITALIANO SERIES LIB+/- 4.86 03/09/2007 1,546,544
2,350,793 US BANK NA SERIES BKNT+/- 5.13 07/28/2006 2,350,911
185,589 VERSAILLES CDS LLC++ 4.87 05/15/2006 185,238
1,546,575 VERSAILLES CDS LLC++ 4.99 06/20/2006 1,535,919
61,863 VERSAILLES CDS LLC++ 5.00 06/21/2006 61,428
653,397 VERSAILLES CDS LLC++ 5.04 06/28/2006 648,176
618,630 WHISTLEJACKET CAPITAL LIMITED+/-++ 4.80 06/09/2006 618,630
309,315 WHISTLEJACKET CAPITAL LIMITED++ 4.91 05/15/2006 308,730
999,396 WHISTLEJACKET CAPITAL LIMITED++ 5.02 06/26/2006 991,681
309,315 WHITE PINE FINANCE LLC++ 4.80 05/05/2006 309,151
252,525 WHITE PINE FINANCE LLC++ 4.83 05/25/2006 251,694
1,546,575 WHITE PINE FINANCE LLC+/-++ 4.85 07/17/2006 1,546,575
190,043 WHITE PINE FINANCE LLC++ 4.91 06/20/2006 188,734
1,632,502 WHITE PINE FINANCE LLC++ 4.92 06/22/2006 1,620,813
1,484,712 WHITE PINE FINANCE LLC SERIES MTN1+/- 4.84 06/12/2006 1,484,771
197,073,400
--------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $204,374,372) 204,374,372
--------------
SHARES
SHORT-TERM INVESTMENTS - 5.39%
120,160,571 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~@ 120,160,571
--------------
TOTAL SHORT-TERM INVESTMENTS (COST $120,160,571) 120,160,571
--------------
39
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
OPPORTUNITY FUND
- --------------------------------------------------------------------------------
VALUE
TOTAL INVESTMENTS IN SECURITIES
(COST $1,845,535,534)* 107.59% $2,396,858,779
OTHER ASSETS AND LIABILITIES, NET (7.59) (168,992,870)
------ --------------
TOTAL NET ASSETS 100.00% $2,227,865,909
------ --------------
+ 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 $120,160,571.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
CONTRACTS STRIKE PRICE EXPIRATION DATE
WRITTEN OPTIONS - (0.11%)
(6,345) CNET NETWORKS INCORPORATED CALL+ $ 15.00 07/22/2006 (63,450)
(1,080) PALL CORPORATION CALL+ 30.00 06/17/2006 (108,000)
(2,150) RED HAT INCORPORATED CALL+ 30.00 06/17/2006 (301,000)
(2,550) RED HAT INCORPORATED CALL+ 35.00 09/16/2006 (293,250)
(10,590) SANMINA-SCI CORPORATION CALL+ 5.00 07/22/2006 (529,500)
(14,854) UNISYS CORPORATION CALL+ 7.50 07/22/2006 (74,270)
(9,074) VISHAY INTERTECHNOLOGY INCORPORATED CALL+ 15.00 07/22/2006 (1,179,620)
TOTAL WRITTEN OPTIONS (PREMIUMS RECEIVED $(2,849,042)) (2,549,090)
--------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
40
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
SMALL CAP DISCIPLINED FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 84.44%
AGRICULTURAL PRODUCTION CROPS - 2.42%
233,700 DELTA & PINE LAND COMPANY $ 6,912,846
-------------
AMUSEMENT & RECREATION SERVICES - 5.09%
905,000 LAKES ENTERTAINMENT INCORPORATED+ 8,326,000
646,000 WESTWOOD ONE INCORPORATED 6,233,900
14,559,900
-------------
APPAREL & ACCESSORY STORES - 0.36%
58,000 SYMS CORPORATION+ 1,039,360
-------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR
MATERIALS - 0.73%
22,700 RUSSELL CORPORATION 410,870
100,000 TOMMY HILFIGER CORPORATION+ 1,665,000
2,075,870
-------------
BUSINESS SERVICES - 4.48%
305,200 CIBER INCORPORATED+ 2,090,620
610,100 MIDWAY GAMES INCORPORATED+ 6,107,101
255,000 OPEN TEXT CORPORATION+ 4,587,450
4,000 S1 CORPORATION+ 20,680
12,805,851
-------------
CHEMICALS & ALLIED PRODUCTS - 3.45%
214,200 CAMBREX CORPORATION 4,343,976
2,000 LUBRIZOL CORPORATION 87,220
772 MGI PHARMA INCORPORATED+ 14,421
2,917,000 XOMA LIMITED+<< 5,425,620
9,871,237
-------------
COMMUNICATIONS - 7.09%
565,000 CUMULUS MEDIA INCORPORATED CLASS A+ 5,966,400
8,000 EMMIS COMMUNICATIONS CORPORATION CLASS A+ 98,400
406,000 MASTEC INCORPORATED+ 5,005,980
161,000 RADIO ONE INCORPORATED CLASS D+ 1,157,590
375,000 REGENT COMMUNICATIONS INCORPORATED+ 1,597,500
1,275,000 SPANISH BROADCASTING SYSTEM INCORPORATED+ 6,451,500
20,277,370
-------------
CONSTRUCTION SPECIAL TRADE CONTRACTORS - 1.12%
190,000 COMFORT SYSTEMS USA INCORPORATED 2,899,400
9,800 LAYNE CHRISTENSEN COMPANY+ 289,100
3,188,500
-------------
DEPOSITORY INSTITUTIONS - 0.37%
7,900 ACE CASH EXPRESS INCORPORATED+ 213,300
3,800 CITIZENS FIRST BANCORP INCORPORATED 122,170
1,300 FIRST COMMONWEALTH FINANCIAL CORPORATION<< 17,394
22,340 FIRST FINANCIAL BANCORP 358,110
3,750 FIRST INDIANA CORPORATION 95,850
3,800 NBT BANCORP INCORPORATED 82,878
41
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP DISCIPLINED FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
DEPOSITORY INSTITUTIONS (CONTINUED)
600 PEOPLES BANCORP INCORPORATED $ 18,168
2,200 UMB FINANCIAL CORPORATION 149,380
1,057,250
-------------
EATING & DRINKING PLACES - 0.82%
239,200 BUCA INCORPORATED+ 1,358,656
107,000 RUBIO'S RESTAURANTS INCORPORATED+ 981,832
2,340,488
-------------
ELECTRIC, GAS & SANITARY SERVICES - 4.65%
564,500 CASELLA WASTE SYSTEMS INCORPORATED CLASS A+ 8,777,975
139,800 CLEAN HARBORS INCORPORATED+ 4,023,444
9,600 IDACORP INCORPORATED 326,880
5,800 OTTER TAIL CORPORATION 173,130
13,301,429
-------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT - 8.98%
1,255,000 C-COR INCORPORATED+ 10,265,900
517,000 FUELCELL ENERGY INCORPORATED+ 6,788,210
452,000 MERCURY COMPUTER SYSTEMS INCORPORATED+<< 8,615,120
25,669,230
-------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES
- - 4.56%
1,173,700 DIVERSA CORPORATION+ 12,359,061
60,000 TRIMERIS INCORPORATED+ 674,400
13,033,461
-------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION
EQUIPMENT - 0.58%
31,000 VALMONT INDUSTRIES INCORPORATED 1,666,250
-------------
FOOD & KINDRED PRODUCTS - 11.18%
125,000 CAL-MAINE FOODS INCORPORATED 917,500
210,000 COCA-COLA ENTERPRISES INCORPORATED 4,101,300
690,000 DEL MONTE FOODS COMPANY 8,045,400
575,000 HERCULES INCORPORATED+ 8,170,750
177,300 MONTEREY GOURMET FOODS INCORPORATED+ 1,037,205
30,500 TASTY BAKING COMPANY 263,520
280,675 TOOTSIE ROLL INDUSTRIES INCORPORATED 8,209,744
712,500 VERMONT PURE HOLDINGS LIMITED+ 1,211,250
31,956,669
-------------
HEALTH SERVICES - 2.25%
2,177,700 HOOPER HOLMES INCORPORATED 6,424,215
-------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 0.80%
230,600 MTR GAMING GROUP INCORPORATED+ 2,271,410
-------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 5.39%
1,000 FMC TECHNOLOGIES INCORPORATED+<< 54,580
635,000 INFOCUS CORPORATION+ 3,092,450
13,600 PLANAR SYSTEMS INCORPORATED+ 221,408
106,900 ROBBINS & MYERS INCORPORATED 2,597,670
42
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
SMALL CAP DISCIPLINED FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT
(CONTINUED)
6,000 TENNANT COMPANY $ 305,400
465,000 ULTRATECH INCORPORATED+ 9,132,600
15,404,108
-------------
INSURANCE AGENTS, BROKERS & SERVICE - 1.53%
102,200 CLARK INCORPORATED 1,338,820
505,100 CRAWFORD & COMPANY CLASS A (NON-VOTING) 3,025,549
4,364,369
-------------
INSURANCE CARRIERS - 0.02%
2,000 OHIO CASUALTY CORPORATION 59,300
-------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS - 7.68%
95,200 HERLEY INDUSTRIES INCORPORATED+ 2,016,336
475,000 ORTHOLOGIC CORPORATION+ 855,000
171,000 VITAL SIGNS INCORPORATED 8,498,700
1,905,000 VIVUS INCORPORATED+<< 5,810,250
180,000 ZOLL MEDICAL CORPORATION+ 4,770,000
21,950,286
-------------
METAL MINING - 0.11%
4,000 GLAMIS GOLD LIMITED+<< 157,000
2,000 GOLD FIELDS LIMITED ADR 50,820
3,000 GOLDCORP INCORPORATED 105,360
313,180
-------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 0.37%
115,000 LYDALL INCORPORATED+ 1,070,650
-------------
MOTION PICTURES - 2.07%
400,000 NEW FRONTIER MEDIA INCORPORATED+ 3,620,000
355,000 WPT ENTERPRISES INCORPORATED+ 2,300,400
5,920,400
-------------
MUTUAL FUND - 0.01%
1,000 SCHOLASTIC CORPORATION+ 26,540
-------------
NON-DEPOSITORY CREDIT INSTITUTIONS - 0.05%
5,400 FINANCIAL FEDERAL CORPORATION 153,360
-------------
OIL & GAS EXTRACTION - 2.57%
365,000 HANOVER COMPRESSOR COMPANY+ 7,358,400
-------------
PAPER & ALLIED PRODUCTS - 0.87%
307,000 BUCKEYE TECHNOLOGIES INCORPORATED+ 2,471,350
-------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 2.54%
2,000 PLAYBOY ENTERPRISES INCORPORATED CLASS B
(NON-VOTING)+ 26,380
525,000 READER'S DIGEST ASSOCIATION INCORPORATED 7,234,500
7,260,880
-------------
RETAIL, TRADE & SERVICES - 0.08%
17,000 STRIDE RITE CORPORATION 238,170
-------------
43
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP DISCIPLINED FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 2.01%
176,000 CABOT MICROELECTRONICS CORPORATION+ $ 5,756,960
-------------
WHOLESALE TRADE NON-DURABLE GOODS - 0.21%
102,700 BIOSCRIP INCORPORATED+ 568,958
500 GREEN MOUNTAIN COFFEE ROASTERS INCORPORATED+ 19,900
588,858
-------------
TOTAL COMMON STOCKS (COST $218,920,088) 241,388,147
-------------
PREFERRED STOCKS - 1.11%
127,300 TELEPHONE & DATA SYSTEMS PREFERRED 3,171,043
TOTAL PREFERRED STOCKS (COST $3,209,952) 3,171,043
-------------
COLLATERAL FOR SECURITIES LENDING - 4.08%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.15%
416,230 SCUDDER DAILY ASSETS MONEY MARKET FUND 416,230
-------------
PRINCIPAL
COLLATERAL INVESTED IN OTHER ASSETS - 3.93%
$ 31,741 AMERICAN GENERAL FINANCE
CORPORATION+/-++ 4.93 05/15/2007 31,755
13,215 APRECO LLC++ 4.60 05/15/2006 13,190
28,923 APRECO LLC++ 4.92 06/15/2006 28,744
260,985 AQUIFER FUNDING LIMITED++ 4.80 05/03/2006 260,914
88,171 AQUIFER FUNDING LIMITED++ 4.80 05/04/2006 88,135
88,171 AQUINAS FUNDING LLC++ 5.04 06/23/2006 87,527
180,214 ATLANTIC ASSET SECURITIZATION
CORPORATION++ 4.86 05/11/2006 179,970
176,341 ATLAS CAPITAL FUNDING CORPORATION
SERIES MTN+/- 4.81 11/03/2006 176,341
42,322 ATLAS CAPITAL FUNDING LIMITED++ 4.60 05/15/2006 42,242
88,171 ATLAS CAPITAL FUNDING LIMITED+/-++ 4.93 12/22/2006 88,171
88,171 ATLAS CAPITAL FUNDING LIMITED+/-++ 4.94 10/20/2006 88,171
88,171 ATLAS CAPITAL FUNDING LIMITED SERIES
MTN+/- 4.98 04/25/2007 88,171
5,780 ATOMIUM FUNDING CORPORATION++ 4.81 05/03/2006 5,779
335,940 ATOMIUM FUNDING CORPORATION++ 4.81 05/04/2006 335,806
71,062 ATOMIUM FUNDING CORPORATION++ 4.83 05/05/2006 71,024
42,893 ATOMIUM FUNDING CORPORATION++ 5.00 06/12/2006 42,646
211,609 BASF AG++ 4.81 05/04/2006 211,525
105,805 BEAR STEARNS & COMPANY+/- 4.93 10/04/2006 105,805
180,672 BEAR STEARNS & COMPANY REPURCHASE
AGREEMENT (MATURITY VALUE $180,697) 4.92 05/01/2006 180,672
12,235 BETA FINANCE INCORPORATED SERIES MTN+/- 4.91 06/02/2006 12,235
1,939,752 BNP PARIBAS REPURCHASE AGREEMENT
(MATURITY VALUE $1,940,018) 4.93 05/01/2006 1,939,752
117,433 BUCKINGHAM CDO LLC++ 4.96 05/23/2006 117,079
176,341 BUCKINGHAM CDO LLC++ 5.08 07/24/2006 174,292
212,304 BUCKINGHAM II CDO LLC++ 4.86 05/08/2006 212,107
24,688 BUCKINGHAM II CDO LLC++ 4.95 05/24/2006 24,610
45,849 CAIRN HIGH GRADE FUNDING I++ 4.76 05/10/2006 45,793
88,171 CAIRN HIGH GRADE FUNDING I++ 4.81 05/02/2006 88,159
70,536 CAIRN HIGH GRADE FUNDING I++ 4.83 05/08/2006 70,471
44
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
SMALL CAP DISCIPLINED FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 59,956 CAIRN HIGH GRADE FUNDING I++ 4.93% 05/18/2006 $ 59,817
48,670 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.68 05/08/2006 48,625
15,684 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.69 05/10/2006 15,665
70,536 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.70 05/12/2006 70,431
36,407 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.80 05/05/2006 36,388
113,525 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.83 05/09/2006 113,402
35,268 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.89 06/07/2006 35,089
93,866 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.90 06/12/2006 93,325
110,460 CEDAR SPRINGS CAPITAL COMPANY LLC++ 4.99 06/21/2006 109,684
51,139 CEDAR SPRINGS CAPITAL COMPANY LLC++ 5.01 06/05/2006 50,893
176,341 CONCORD MINUTEMEN CAPITAL COMPANY
SERIES A++ 4.83 05/12/2006 176,078
88,516 CONCORD MINUTEMEN CAPITAL COMPANY
SERIES A++ 4.85 05/11/2006 88,397
246,878 CONCORD MINUTEMEN CAPITAL COMPANY
SERIES B+/-++ 4.85 05/14/2006 246,877
228,185 CORPORATE ASSET SECURITIZATION
AUSTRALIA LIMITED++ 5.00 05/25/2006 227,435
109,331 CREDIT SUISSE FIRST BOSTON NEW YORK
SERIES YCD1+/- 4.92 05/04/2006 109,325
88,171 CULLINAN FINANCE CORPORATION SERIES
MTN+/- 4.71 11/15/2006 88,179
45,849 DEER VALLEY FUNDING LLC++ 4.78 05/03/2006 45,836
134,019 DEER VALLEY FUNDING LLC++ 4.84 05/08/2006 133,895
6,902 DEER VALLEY FUNDING LLC++ 4.89 05/15/2006 6,889
56,373 DEER VALLEY FUNDING LLC++ 4.92 05/16/2006 56,258
438,724 DEUTSCHE BANK REPURCHASE AGREEMENT
(MATURITY VALUE $438,783) 4.82 05/01/2006 438,724
5,643 EDISON ASSET SECURITIZATION LLC++ 4.84 05/15/2006 5,632
7,054 EIFFEL FUNDING LLC++ 4.80 05/01/2006 7,054
127,040 EUREKA SECURITIZATION INCORPORATED++ 4.86 05/16/2006 126,782
211,609 GEMINI SECURITIZATION INCORPORATED++ 4.79 05/01/2006 211,609
5,290 GEMINI SECURITIZATION INCORPORATED++ 4.88 05/24/2006 5,274
158,619 GEORGE STREET FINANCE LLC++ 4.80 05/02/2006 158,598
84,644 GOLDMAN SACHS GROUP INCORPORATED+/- 4.97 06/30/2006 84,644
7,054 HARRIER FINANCE FUNDING LLC SERIES
MTN+/- 4.98 05/15/2007 7,055
12,344 HBOS TREASURY SERVICES PLC+/-++ 5.12 01/12/2007 12,356
56,429 ING USA ANNUITY & LIFE INSURANCE+/- 5.03 06/06/2006 56,429
4,585 K2 (USA) LLC++ 4.61 05/02/2006 4,584
16,312 K2 (USA) LLC SERIES MTN+/- 4.90 07/24/2006 16,315
52,902 KAUPTHING BANK HF SERIES MTN+/- 4.98 03/20/2007 52,822
14,107 KLIO II FUNDING CORPORATION++ 4.96 06/30/2006 13,991
117,898 KLIO III FUNDING CORPORATION++ 4.93 05/22/2006 117,561
169,527 KLIO III FUNDING CORPORATION++ 4.96 06/30/2006 168,125
3,527 LEXINGTON PARKER CAPITAL CORPORATION 4.60 05/02/2006 3,526
13,388 LEXINGTON PARKER CAPITAL CORPORATION++ 4.68 05/10/2006 13,371
565,247 LEXINGTON PARKER CAPITAL CORPORATION++ 4.85 05/05/2006 564,948
5,996 LEXINGTON PARKER CAPITAL CORPORATION 4.96 06/20/2006 5,954
88,171 LIBERTY LIGHT US CAPITAL SERIES MTN+/- 4.84 05/26/2006 88,172
7,054 LINKS FINANCE LLC SERIES MTN1+/- 4.82 09/12/2006 7,054
52,902 LIQUID FUNDING LIMITED+/-++ 4.79 12/01/2006 52,902
81,117 LIQUID FUNDING LIMITED+/-++ 4.88 08/14/2006 81,117
21,161 LIQUID FUNDING LIMITED SERIES MTN+/- 4.85 02/20/2007 21,161
35,268 MBIA GLOBAL FUNDING LLC+/-++ 4.92 02/20/2007 35,266
45
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP DISCIPLINED FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 177,223 MERRILL LYNCH & COMPANY SERIES MTN+/- 5.28% 10/27/2006 $ 177,365
105,805 MORGAN STANLEY+/- 4.94 10/10/2006 105,805
16,312 MORGAN STANLEY SERIES EXL+/- 4.93 08/13/2010 16,315
79,706 MORTGAGE INTEREST NET TRUST 4.76 05/03/2006 79,685
3,527 NATIONWIDE BUILDING SOC+/-++ 5.20 07/21/2006 3,528
15,723 NIEUW AMSTERDAM RECEIVABLES
CORPORATION++ 4.91 06/26/2006 15,601
5,661 NORDEA NORTH AMERICA INCORPORATED 4.80 05/03/2006 5,659
11,286 NORDEA NORTH AMERICA INCORPORATED 4.81 05/09/2006 11,274
6,701 NORDEA NORTH AMERICA INCORPORATED 4.87 05/15/2006 6,688
10,563 NORTH SEA FUNDING, LLC++ 5.00 06/26/2006 10,481
176,341 NORTHERN ROCK PLC+/-++ 4.83 02/05/2007 176,350
14,266 RACERS TRUST 2004-6-MM+/-++ 4.95 05/22/2006 14,268
66,470 REGENCY MARKETS #1 LLC++ 5.06 07/20/2006 65,734
3,527 SCALDIS CAPITAL LIMITED++ 4.91 06/15/2006 3,505
175,971 SEDNA FINANCE INCORPORATED++ 4.86 05/02/2006 175,948
70,536 SLM CORPORATION+/-++ 4.86 05/04/2007 70,519
28,215 SWEDBANK (FORENINGS SPARBANKEN) 4.81 05/09/2006 28,184
17,634 SWEDISH NATIONAL HOUSING FINANCE
(SBAB) 5.06 07/18/2006 17,444
14,107 TANGO FINANCE CORPORATION++ 4.94 06/21/2006 14,008
40,781 TANGO FINANCE CORPORATION SERIES MTN+/- 4.90 10/25/2006 40,794
106,612 THUNDER BAY FUNDING INCORPORATED++ 5.00 06/16/2006 105,936
125,604 TIERRA ALTA FUNDING I LIMITED++ 4.82 05/10/2006 125,451
181,779 TIERRA ALTA FUNDING I LIMITED++ 4.83 05/11/2006 181,534
20,389 TRAVELERS INSURANCE COMPANY+/- 4.92 02/09/2007 20,388
88,171 UNICREDITO ITALIANO SERIES LIB+/- 4.86 03/09/2007 88,169
134,019 US BANK NA SERIES BKNT+/- 5.13 07/28/2006 134,026
10,580 VERSAILLES CDS LLC++ 4.87 05/15/2006 10,560
88,171 VERSAILLES CDS LLC++ 4.99 06/20/2006 87,563
3,527 VERSAILLES CDS LLC++ 5.00 06/21/2006 3,502
37,250 VERSAILLES CDS LLC++ 5.04 06/28/2006 36,953
35,268 WHISTLEJACKET CAPITAL LIMITED+/-++ 4.80 06/09/2006 35,268
17,634 WHISTLEJACKET CAPITAL LIMITED++ 4.91 05/15/2006 17,601
56,976 WHISTLEJACKET CAPITAL LIMITED++ 5.02 06/26/2006 56,536
17,634 WHITE PINE FINANCE LLC++ 4.80 05/05/2006 17,625
14,396 WHITE PINE FINANCE LLC++ 4.83 05/25/2006 14,349
88,171 WHITE PINE FINANCE LLC+/-++ 4.85 07/17/2006 88,171
10,834 WHITE PINE FINANCE LLC++ 4.91 06/20/2006 10,760
93,069 WHITE PINE FINANCE LLC++ 4.92 06/22/2006 92,403
84,644 WHITE PINE FINANCE LLC SERIES MTN1+/- 4.84 06/12/2006 84,647
11,235,197
------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $11,651,427) 11,651,427
------------
46
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
SMALL CAP DISCIPLINED FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
SHORT-TERM INVESTMENTS - 7.87%
MUTUAL FUNDS - 7.46%
21,319,310 WELLS FARGO ADVANTAGE MONEY MARKET
TRUST~@ $ 21,319,310
------------
PRINCIPAL INTEREST RATE MATURITY DATE
US TREASURY BILLS - 0.41%
$ 1,200,000 US TREASURY BILL^ 4.65% 07/27/2006 1,186,699
------------
TOTAL SHORT-TERM INVESTMENTS (COST $22,505,825) 22,506,009
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $256,287,292)* 97.50% $278,716,626
OTHER ASSETS AND LIABILITIES, NET 2.50 7,158,806
------ ------------
TOTAL NET ASSETS 100.00% $285,875,432
------ ------------
+ 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 $21,319,310.
^ ZERO COUPON BOND. INTEREST RATE PRESENTED IS YIELD TO MATURITY.
* 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.
47
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL/MID CAP VALUE FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 90.84%
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS - 0.08%
4,300 LITHIA MOTORS INCORPORATED CLASS A $ 145,727
-------------
BUSINESS SERVICES - 7.47%
354,325 3COM CORPORATION+ 1,909,812
91,155 ABM INDUSTRIES INCORPORATED 1,567,866
256,770 EMBARCADERO TECHNOLOGIES INCORPORATED+ 1,563,729
34,320 IMS HEALTH INCORPORATED 932,818
59,350 KFORCE INCORPORATED+ 833,868
170,000 KFX INCORPORATED+ 3,068,500
4,584 LIQUIDITY SERVICES INCORPORATED+ 61,838
107,090 MOBIUS MANAGEMENT SYSTEMS INCORPORATED+ 685,376
25,255 MONEYGRAM INTERNATIONAL INCORPORATED 856,144
280,145 SUN MICROSYSTEMS INCORPORATED+ 1,400,725
74,892 VIGNETTE CORPORATION+ 1,187,038
14,067,714
-------------
CHEMICALS & ALLIED PRODUCTS - 4.46%
28,790 NOVA CHEMICALS CORPORATION 853,911
28,665 NOVEN PHARMACEUTICALS INCORPORATED+ 541,769
148,610 ORASURE TECHNOLOGIES INCORPORATED+ 1,594,585
108,395 POLYONE CORPORATION+ 962,548
358,895 REVLON INCORPORATED CLASS A+ 1,166,409
29,230 RPM INTERNATIONAL INCORPORATED 537,832
220,985 UNIFI INCORPORATED+ 744,719
360,160 WELLMAN INCORPORATED 1,991,685
8,393,458
-------------
COMMUNICATIONS - 3.27%
9,775 CHINA GRENTECH CORPORATION LIMITED ADR+ 156,400
271,695 CINCINNATI BELL INCORPORATED+ 1,141,119
637,335 COASTAL CONTACTS INCORPORATED+ 1,225,589
190,430 GRUPO RADIO CENTRO S.A. DE C.V. ADR+ 1,228,274
141,065 LIGHTBRIDGE INCORPORATED+ 1,794,347
9,675 UNITED STATES CELLULAR CORPORATION+ 603,720
6,149,449
-------------
CONSTRUCTION SPECIAL TRADE CONTRACTORS - 1.49%
34,515 CHICAGO BRIDGE & IRON COMPANY NV 827,325
77,640 COMFORT SYSTEMS USA INCORPORATED 1,184,786
69,320 MATRIX SERVICE COMPANY+ 790,941
2,803,052
-------------
CONSUMER SERVICES - 0.69%
113,700 EMDEON CORPORATION+ 1,297,317
-------------
DEPOSITORY INSTITUTIONS - 1.72%
20,310 COMMUNITY BANCORP+ 662,715
98,975 FIRST SECURITY GROUP INCORPORATED 1,108,520
27,375 MIDWEST BANC HOLDINGS INCORPORATED 642,218
48
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
SMALL/MID CAP VALUE FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
DEPOSITORY INSTITUTIONS (CONTINUED)
70,040 PACIFIC PREMIER BANCORP INCORPORATED+ $ 815,966
3,229,419
-------------
EATING & DRINKING PLACES - 1.06%
37,220 CALIFORNIA PIZZA KITCHEN INCORPORATED+ 1,176,152
20,890 DARDEN RESTAURANTS INCORPORATED 827,244
2,003,396
-------------
ELECTRIC, GAS & SANITARY SERVICES - 0.99%
144,535 EL PASO CORPORATION 1,865,947
-------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT - 9.05%
46,395 CATAPULT COMMUNICATIONS CORPORATION+ 554,884
138,820 EVANS & SUTHERLAND COMPUTER CORPORATION+ 871,790
103,120 FLEXTRONICS INTERNATIONAL LIMITED+ 1,171,443
202,255 GRAFTECH INTERNATIONAL LIMITED+ 1,367,244
344,320 MCDATA CORPORATION+ 1,501,235
24,500 MEMC ELECTRONIC MATERIALS INCORPORATED+ 994,700
46,770 MERCURY COMPUTER SYSTEMS INCORPORATED+ 891,436
107,405 MICRON TECHNOLOGY INCORPORATED 1,822,663
201,225 MRV COMMUNICATIONS INCORPORATED+ 766,667
703,140 NORTEL NETWORKS CORPORATION+ 1,870,353
45,805 OSI SYSTEMS INCORPORATED+ 873,043
88,040 PORTALPLAYER INCORPORATED+ 972,842
124,980 POWER-ONE INCORPORATED+ 881,109
62,590 RICHARDSON ELECTRONICS LIMITED 443,763
100 SANMINA-SCI CORPORATION+ 519
126,655 SILICON STORAGE TECHNOLOGY INCORPORATED+ 578,813
173,070 STATS CHIPPAC LIMITED ADR+ 1,472,826
17,035,330
-------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED
SERVICES - 1.53%
86,240 CV THERAPEUTICS INCORPORATED+ 1,711,864
50,000 SFBC INTERNATIONAL INCORPORATED 1,167,500
2,879,364
-------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION
EQUIPMENT - 0.90%
21,760 CRANE COMPANY 919,360
32,045 GULF ISLAND FABRICATION INCORPORATED 780,616
1,699,976
-------------
FOOD & KINDRED PRODUCTS - 1.32%
92,990 HERCULES INCORPORATED+ 1,321,388
100 MOLSON COORS BREWING COMPANY 7,386
43,895 SANDERSON FARMS INCORPORATED 1,163,656
2,492,430
-------------
HEALTH SERVICES - 0.38%
14,985 GENESIS HEALTHCARE CORPORATION+ 708,341
-------------
49
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL/MID CAP VALUE FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
HOLDING & OTHER INVESTMENT OFFICES - 2.39%
137,250 AFFORDABLE RESIDENTIAL COMMUNITIES $ 1,259,955
106,853 ANNALY MORTGAGE MANAGEMENT INCORPORATED 1,439,310
80,080 DISCOVERY HOLDING COMPANY CLASS A+ 1,193,192
40,610 UHM PROPERTIES INCORPORATED 614,429
4,506,886
-------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 0.48%
165,605 EMPIRE RESORTS INCORPORATED+ 897,579
-------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 1.73%
619,085 CRAY INCORPORATED+ 1,027,681
71,405 INTERMEC INCORPORATED+ 1,891,518
11,425 PALL CORPORATION 344,807
3,264,006
-------------
INSURANCE CARRIERS - 4.36%
16,485 ENDURANCE SPECIALTY HOLDINGS LIMITED 510,376
107,825 KMG AMERICA CORPORATION+ 976,895
17,280 MERCURY GENERAL CORPORATION 922,234
128,975 NORTH POINTE HOLDINGS CORPORATION+ 1,680,802
44,710 NYMAGIC INCORPORATED 1,249,644
23,395 PRA INTERNATIONAL+ 544,168
421,535 QUANTA CAPITAL HOLDINGS LIMITED+ 1,095,991
72,465 SEABRIGHT INSURANCE HOLDINGS INCORPORATED+ 1,233,354
8,213,464
-------------
JUSTICE, PUBLIC ORDER & SAFETY - 0.79%
41,686 GEO GROUP INCORPORATED+ 1,494,026
-------------
LEATHER & LEATHER PRODUCTS - 0.78%
76,102 BAKERS FOOTWEAR GROUP INCORPORATED+ 1,473,335
-------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS - 3.52%
694,633 ALLIED HEALTHCARE PRODUCTS INCORPORATED+** 4,209,476
148,090 CREDENCE SYSTEMS CORPORATION+ 1,049,958
75,835 INPUT OUTPUT INCORPORATED+ 764,417
59,620 SYNOVIS LIFE TECHNOLOGIES INCORPORATED+ 593,815
6,617,666
-------------
MEMBERSHIP ORGANIZATIONS - 0.50%
694,355 INTEGRATED ELECTRICAL SERVICES+ 937,379
-------------
METAL MINING - 4.97%
101,340 APEX SILVER MINES LIMITED+ 2,158,542
14,810 GLAMIS GOLD LIMITED+ 581,293
27,065 GOLDCORP INCORPORATED 950,523
26,165 NEWMONT MINING CORPORATION 1,526,989
127,965 RANDGOLD RESOURCES LIMITED ADR+ 3,114,668
82,540 SOUTHWESTERN RESOURCES CORPORATION+ 1,030,596
9,362,611
-------------
50
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
SMALL/MID CAP VALUE FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS - 0.39%
97,650 BIRCH MOUNTAIN RESOURCES LIMITED+ $ 725,540
-------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 1.03%
90,095 ACCO BRANDS CORPORATION+ 1,935,241
-------------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING - 0.16%
21,880 COVENANT TRANSPORT INCORPORATED CLASS A+ 302,819
-------------
OIL & GAS EXTRACTION - 17.91%
18,665 CANADIAN NATURAL RESOURCES LIMITED 1,123,633
1,950 COMPLETE PRODUCTION SERVICES INCORPORATED+ 51,538
561,040 GLOBAL INDUSTRIES LIMITED+ 8,903,705
102,485 GREY WOLF INCORPORATED+ 799,383
8,005 HELMERICH & PAYNE INCORPORATED 582,284
19,725 HERCULES OFFSHORE INCORPORATED+ 806,555
11,625 KERR-MCGEE CORPORATION 1,160,872
178,890 KEY ENERGY SERVICES INCORPORATED+ 3,057,230
132,715 MCMORAN EXPLORATION COMPANY+ 2,298,624
261,295 NEWPARK RESOURCES INCORPORATED+ 1,740,225
13,420 NOBLE ENERGY INCORPORATED 603,632
17,765 PETROHAWK ENERGY CORPORATION+ 223,484
79,320 PETROQUEST ENERGY INCORPORATED+ 938,355
21,730 PIONEER NATURAL RESOURCES COMPANY 930,479
20,720 PRIDE INTERNATIONAL INCORPORATED+ 722,921
42,677 RANGE RESOURCES CORPORATION 1,132,221
13,855 ROWAN COMPANIES INCORPORATED 614,192
319,110 SEITEL INCORPORATED+ 1,337,071
28,165 TODCO+ 1,291,928
5,930 TRANSOCEAN INCORPORATED+ 480,745
183,105 TRILOGY ENERGY TRUST 3,421,192
67,250 WILLBROS GROUP INCORPORATED+ 1,486,225
33,706,494
-------------
PAPER & ALLIED PRODUCTS - 1.00%
20,250 BOWATER INCORPORATED 552,217
91,815 WAUSAU PAPER CORPORATION 1,320,300
1,872,517
-------------
PETROLEUM REFINING & RELATED INDUSTRIES - 0.82%
23,420 ASHLAND INCORPORATED 1,541,504
-------------
PRIMARY METAL INDUSTRIES - 1.18%
29,000 ENCORE WIRE CORPORATION+ 1,215,970
10,520 OREGON STEEL MILLS INCORPORATED+ 521,055
7,804 STEEL DYNAMICS INCORPORATED 487,282
2,224,307
-------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 1.86%
21,630 E.W. SCRIPPS COMPANY CLASS A 996,711
133,785 JOURNAL COMMUNICATIONS INCORPORATED CLASS A 1,569,298
51
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL/MID CAP VALUE FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
PRINTING, PUBLISHING & ALLIED INDUSTRIES (CONTINUED)
15,215 KNIGHT-RIDDER INCORPORATED $ 943,330
3,509,339
-------------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS - 2.57%
249,395 CONSTAR INTERNATIONAL INCORPORATED+ 805,571
294,765 INTERTAPE POLYMER GROUP INCORPORATED+ 2,599,827
164,230 ROYAL GROUP TECHNOLOGIES LIMITED+ 1,428,801
4,834,199
-------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 1.60%
182,525 ARPEGGIO ACQUISITION CORPORATION+ 1,186,412
162,505 MARKETAXCESS HOLDINGS INCORPORATED+ 1,813,556
2,999,968
-------------
SOCIAL SERVICES - 0.32%
42,820 ABB LIMITED ADR+ 608,900
-------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 1.21%
155,675 GENTEX CORPORATION 2,282,196
-------------
TRANSPORTATION BY AIR - 1.66%
88,505 AIRTRAN HOLDINGS INCORPORATED+ 1,237,300
33,255 ALASKA AIR GROUP INCORPORATED+ 1,262,360
55,595 JETBLUE AIRWAYS CORPORATION+ 570,404
1,352 PHI INCORPORATED+ 44,616
3,114,680
-------------
TRANSPORTATION EQUIPMENT - 0.46%
10,200 SEQUA CORPORATION+ 867,000
-------------
TRANSPORTATION SERVICES - 0.47%
76,910 RAILAMERICA INCORPORATED+ 878,312
-------------
WHOLESALE TRADE NON-DURABLE GOODS - 1.36%
25,195 ENDO PHARMACEUTICALS HOLDINGS INCORPORATED+ 792,383
163,040 SOURCE INTERLINK COMPANIES INCORPORATED+ 1,765,723
2,558,106
-------------
WHOLESALE TRADE-DURABLE GOODS - 2.91%
1,556,610 COVALENT GROUP INCORPORATED+** 4,202,847
143,788 US HOME SYSTEMS INCORPORATED+ 1,275,400
5,478,247
-------------
TOTAL COMMON STOCKS (COST $152,369,705) 170,977,241
-------------
WARRANTS - 0.18%
244,140 ARPEGGIO ACQUISITION CORPORATION 341,796
-------------
TOTAL WARRANTS (COST $322,155) 341,796
-------------
SHORT-TERM INVESTMENTS - 13.11%
24,669,475 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~@ 24,669,475
-------------
TOTAL SHORT-TERM INVESTMENTS (COST $24,669,475) 24,669,475
-------------
52
PORTFOLIO OF INVESTMENTS--APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
SMALL/MID CAP VALUE FUND
- --------------------------------------------------------------------------------
VALUE
TOTAL INVESTMENTS IN SECURITIES
(COST $177,283,320)* 104.13% $ 195,988,512
OTHER ASSETS AND LIABILITIES, NET (4.13) (7,771,398)
------ -------------
TOTAL NET ASSETS 100.00% $ 188,217,114
====== -------------
+ NON-INCOME EARNING SECURITIES.
** REPRESENTS AN AFFILIATE OF THE FUND UNDER SECTION 2(A)(2) AND 2(A)(3) OF
THE 1940 ACT AS THE FUND HOLDS 5% OR MORE OF THE ISSUERS' OUTSTANDING
VOTING SHARES.
~ 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 $24,669,475.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
CONTRACTS STRIKE PRICE EXPIRATION DATE
WRITTEN OPTIONS - (0.78%)
(20) ASHLAND INCORPORATED CALL+ $75.00 07/22/2006 (1,000)
(5) CALIFORNIA PIZZA KITCHEN INCORPORATED CALL+ 30.00 07/22/2006 (1,350)
(15) CANADIAN NATURAL RESOURCES LIMITED CALL+ 65.00 05/20/2006 (1,350)
(20) CANADIAN NATURAL RESOURCES LIMITED CALL+ 50.00 06/17/2006 (22,600)
(45) CANADIAN NATURAL RESOURCES LIMITED CALL+ 55.00 06/17/2006 (29,700)
(55) CHICAGO BRIDGE & IRON COMPANY NV CALL+ 25.00 07/22/2006 (9,075)
(10) ENCORE WIRE CORPORATION CALL+ 22.50 05/20/2006 (19,200)
(30) ENCORE WIRE CORPORATION CALL+ 22.50 08/19/2006 (59,400)
(60) ENCORE WIRE CORPORATION CALL+ 25.00 05/20/2006 (100,200)
(190) ENCORE WIRE CORPORATION CALL+ 30.00 05/20/2006 (229,900)
(50) GLAMIS GOLD LIMITED CALL+ 40.00 08/19/2006 (20,000)
(50) GOLDCORP INCORPORATED CALL+ 22.50 07/22/2006 (63,500)
(50) GOLDCORP INCORPORATED CALL+ 37.50 10/21/2006 (17,900)
(50) HELMERICH & PAYNE INCORPORATED CALL+ 65.00 06/17/2006 (43,500)
(50) MCMORAN EXPLORATION COMPANY CALL+ 20.00 05/20/2006 (250)
(150) MEMC ELECTRONIC MATERIALS INCORPORATED CALL+ 30.00 07/22/2006 (169,500)
(95) MEMC ELECTRONIC MATERIALS INCORPORATED CALL+ 30.00 10/21/2006 (123,500)
(30) MICRON TECHNOLOGY INCORPORATED CALL+ 15.00 10/21/2006 (9,300)
(30) MICRON TECHNOLOGY INCORPORATED CALL+ 16.00 10/21/2006 (6,750)
(50) NEWMONT MINING CORPORATION CALL+ 50.00 06/17/2006 (45,000)
(50) NEWMONT MINING CORPORATION CALL+ 55.00 06/17/2006 (26,000)
(40) NEWMONT MINING CORPORATION CALL+ 55.00 09/16/2006 (30,000)
(175) NOVEN PHARMACETICALS INCORPORATED CALL+ 17.50 07/22/2006 (40,250)
(100) NOVEN PHARMACEUTICALS INCORPORATED CALL+ 15.00 10/21/2006 (45,000)
(10) ORASURE TECHNOLOGIES INCORPORATED CALL+ 10.00 07/22/2006 (1,450)
(10) OREGON STEEL MILLS INCORPORATED CALL+ 30.00 06/17/2006 (20,000)
(70) OREGON STEEL MILLS INCORPORATED CALL+ 40.00 06/17/2006 (70,000)
(75) PORTALPLAYER INCORPORATED CALL+ 12.50 05/20/2006 (3,000)
(100) PORTALPLAYER INCORPORATED CALL+ 12.50 06/17/2006 (6,000)
(75) PORTALPLAYER INCORPORATED CALL+ 12.50 08/19/2006 (6,750)
(150) PORTALPLAYER INCORPORATED CALL+ 15.00 08/19/2006 (6,750)
(30) PRIDE INTERNATIONAL INCORPORATED CALL+ 25.00 07/22/2006 (30,300)
(100) RANDGOLD RESOURCES LIMITED CALL+ 22.50 09/16/2006 (39,000)
(100) RANDGOLD RESOURCES LIMITED CALL+ 25.00 09/16/2006 (26,000)
(250) SFBC INTERNATIONAL INCORPORATED CALL+ 20.00 06/17/2006 (92,500)
(250) SFBC INTERNATIONAL INCORPORATED CALL+ 22.50 06/17/2006 (52,500)
(50) VIGNETTE CORPORATION CALL+ 15.00 06/17/2006 (6,500)
TOTAL WRITTEN OPTIONS (PREMIUM RECEIVED $(1,084,826)) (1,474,975)
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
53
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
STATEMENTS OF ASSETS AND LIABILITIES -- APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
DISCOVERY ENTERPRISE
FUND FUND
- -----------------------------------------------------------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE ............................................................ $ 271,810,103 $ 247,031,677
COLLATERAL FOR SECURITIES LOANED (NOTE 2) ................................................. 16,181,741 8,245,344
INVESTMENTS IN AFFILIATES ................................................................. 7,146,537 2,286,630
INVESTMENTS IN OTHER AFFILIATES ........................................................... 0 0
---------------- ---------------
TOTAL INVESTMENTS AT MARKET VALUE (SEE COST BELOW) ........................................... 295,138,381 257,563,651
---------------- ---------------
CASH ...................................................................................... 0 0
RECEIVABLE FOR FUND SHARES ISSUED ......................................................... 709,993 530,966
RECEIVABLE FOR INVESTMENTS SOLD ........................................................... 7,707,212 2,077,033
RECEIVABLES FOR DIVIDENDS AND INTEREST .................................................... 53,280 23,737
RECEIVABLE FOR INTEREST RATE SWAPS/SPREAD LOCKS ........................................... 0 0
PREPAID EXPENSES AND OTHER ASSETS ......................................................... 0 0
---------------- ---------------
TOTAL ASSETS ................................................................................. 303,608,866 260,195,387
---------------- ---------------
LIABILITIES
OPTION WRITTEN, AT VALUE .................................................................. 0 0
PAYABLE FOR DAILY VARIATION MARGIN ON FUTURES CONTRACTS ................................... 0 0
PAYABLE FOR FUND SHARES REDEEMED .......................................................... 27,379 41,638
PAYABLE FOR INVESTMENTS PURCHASED ......................................................... 5,008,931 3,240,162
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) ..................................... 212,698 185,539
PAYABLE TO THE TRUSTEES AND SHAREHOLDER SERVICING AGENT ................................... 55,251 46,703
PAYABLE FOR SECURITIES LOANED (NOTE 2) .................................................... 16,181,741 8,245,344
ACCRUED EXPENSES AND OTHER LIABILITIES .................................................... 11,983 8,538
---------------- ---------------
TOTAL LIABILITIES ............................................................................ 21,497,983 11,767,924
---------------- ---------------
TOTAL NET ASSETS ............................................................................. $ 282,110,883 $ 248,427,463
---------------- ---------------
NET ASSETS CONSIST OF:
- -----------------------------------------------------------------------------------------------------------------------------------
PAID-IN CAPITAL ........................................................................... $ 217,362,488 $ 442,798,496
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ................................................ (1,000,592) (1,134,918)
UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON INVESTMENTS ..................................... 11,318,367 (235,785,361)
NET UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS, FOREIGN CURRENCIES AND
TRANSLATION OF ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES ................ 54,430,620 42,549,246
NET UNREALIZED APPRECIATION (DEPRECIATION) OF FUTURES ..................................... 0 0
NET UNREALIZED APPRECIATION (DEPRECIATION) OF OPTIONS, SWAP AGREEMENTS, AND SHORT SALES ... 0 0
---------------- ---------------
TOTAL NET ASSETS ............................................................................. $ 282,110,883 $ 248,427,463
---------------- ---------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE(1)
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS - ADMINISTRATOR CLASS .......................................................... $ 52,248,366 $ 3,104,546
SHARES OUTSTANDING - ADMINISTRATOR CLASS .................................................. 2,269,568 99,761
NET ASSET VALUE AND OFFERING PRICE PER SHARE - ADMINISTRATOR CLASS ........................ $ 23.02 $ 31.12
NET ASSETS - ADVISOR CLASS ................................................................ N/A $ 2,085,336
SHARES OUTSTANDING - ADVISOR CLASS ........................................................ N/A 68,100
NET ASSET VALUE AND OFFERING PRICE PER SHARE - ADVISOR CLASS .............................. N/A $ 30.62
NET ASSETS - INSTITUTIONAL CLASS .......................................................... N/A $ 25,267,505
SHARES OUTSTANDING - INSTITUTIONAL CLASS .................................................. N/A 811,030
NET ASSET VALUE AND OFFERING PRICE PER SHARE - INSTITUTIONAL CLASS ........................ N/A $ 31.15
NET ASSETS - INVESTOR CLASS ............................................................... $ 229,862,517 $ 217,970,076
SHARES OUTSTANDING - INVESTOR CLASS ....................................................... 10,021,585 7,161,348
NET ASSET VALUE AND OFFERING PRICE PER SHARE - INVESTOR CLASS ............................. $ 22.94 $ 30.44
---------------- ---------------
INVESTMENTS AT COST .......................................................................... $ 240,707,761 $ 215,014,405
---------------- ---------------
SECURITIES ON LOAN, AT MARKET VALUE .......................................................... $ 16,060,373 $ 8,391,260
---------------- ---------------
PREMIUMS RECEIVED ON WRITTEN OPTIONS ......................................................... $ 0 $ 0
================ ===============
(1) EACH FUND HAS AN UNLIMITED NUMBER OF AUTHORIZED SHARES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
54
STATEMENTS OF ASSETS AND LIABILITIES -- APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
MID CAP
DISCIPLINED OPPORTUNITY
FUND FUND
- -----------------------------------------------------------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE ............................................................ $ 700,101,593 $ 2,072,323,836
COLLATERAL FOR SECURITIES LOANED (NOTE 2) ................................................. 67,208,410 204,374,372
INVESTMENTS IN AFFILIATES ................................................................. 45,627,650 120,160,571
INVESTMENTS IN OTHER AFFILIATES ........................................................... 13,403,940 0
---------------- ---------------
TOTAL INVESTMENTS AT MARKET VALUE (SEE COST BELOW) ........................................... 826,341,593 2,396,858,779
---------------- ---------------
CASH ...................................................................................... 1,139,595 0
RECEIVABLE FOR FUND SHARES ISSUED ......................................................... 1,863,283 59,761
RECEIVABLE FOR INVESTMENTS SOLD ........................................................... 34,153,524 38,452,065
RECEIVABLES FOR DIVIDENDS AND INTEREST .................................................... 1,665,760 2,347,648
RECEIVABLE FOR INTEREST RATE SWAPS/SPREAD LOCKS ........................................... 0 2,325,320
PREPAID EXPENSES AND OTHER ASSETS ......................................................... 0 6,096
---------------- ---------------
TOTAL ASSETS ................................................................................. 865,163,755 2,440,049,669
---------------- ---------------
LIABILITIES
OPTION WRITTEN, AT VALUE .................................................................. 0 2,549,090
PAYABLE FOR DAILY VARIATION MARGIN ON FUTURES CONTRACTS ................................... 0 0
PAYABLE FOR FUND SHARES REDEEMED .......................................................... 230,037 295,248
PAYABLE FOR INVESTMENTS PURCHASED ......................................................... 1,547,075 3,249,209
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) ..................................... 635,366 1,260,916
PAYABLE TO THE TRUSTEES AND SHAREHOLDER SERVICING AGENT ................................... 135,445 454,925
PAYABLE FOR SECURITIES LOANED (NOTE 2) .................................................... 67,208,410 204,374,372
ACCRUED EXPENSES AND OTHER LIABILITIES .................................................... 5,788 0
---------------- ---------------
TOTAL LIABILITIES ............................................................................ 69,762,121 212,183,760
---------------- ---------------
TOTAL NET ASSETS ............................................................................. $ 795,401,634 $ 2,227,865,909
================ ===============
NET ASSETS CONSIST OF:
- -----------------------------------------------------------------------------------------------------------------------------------
PAID-IN CAPITAL ........................................................................... $ 693,927,661 $ 1,504,114,142
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ................................................ 1,953,446 4,428,188
UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON INVESTMENTS ..................................... 52,848,811 165,372,334
NET UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS, FOREIGN CURRENCIES AND
TRANSLATION OF ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES ................ 46,671,716 549,868,345
NET UNREALIZED APPRECIATION (DEPRECIATION) OF FUTURES ..................................... 0 0
NET UNREALIZED APPRECIATION (DEPRECIATION) OF OPTIONS, SWAP AGREEMENTS, AND SHORT SALES ... 0 4,082,900
---------------- ---------------
TOTAL NET ASSETS ............................................................................. $ 795,401,634 $ 2,227,865,909
---------------- ---------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE(1)
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS - ADMINISTRATOR CLASS .......................................................... $ 84,037,468 $ 179,128,208
SHARES OUTSTANDING - ADMINISTRATOR CLASS .................................................. 3,805,548 3,673,559
NET ASSET VALUE AND OFFERING PRICE PER SHARE - ADMINISTRATOR CLASS ........................ $ 22.08 $ 48.76
NET ASSETS - ADVISOR CLASS ................................................................ N/A $ 60,109,697
SHARES OUTSTANDING - ADVISOR CLASS ........................................................ N/A 1,264,809
NET ASSET VALUE AND OFFERING PRICE PER SHARE - ADVISOR CLASS .............................. N/A $ 47.52
NET ASSETS - INSTITUTIONAL CLASS .......................................................... $ 134,679,817 N/A
SHARES OUTSTANDING - INSTITUTIONAL CLASS .................................................. 6,086,809 N/A
NET ASSET VALUE AND OFFERING PRICE PER SHARE - INSTITUTIONAL CLASS ........................ $ 22.13 N/A
NET ASSETS - INVESTOR CLASS ............................................................... $ 576,684,349 $ 1,988,628,004
SHARES OUTSTANDING - INVESTOR CLASS ....................................................... 26,132,219 41,146,371
NET ASSET VALUE AND OFFERING PRICE PER SHARE - INVESTOR CLASS ............................. $ 22.07 $ 48.33
---------------- ---------------
INVESTMENTS AT COST .......................................................................... $ 779,669,877 $ 1,845,535,534
================ ===============
SECURITIES ON LOAN, AT MARKET VALUE .......................................................... $ 65,857,454 $ 216,592,546
================ ===============
PREMIUMS RECEIVED ON WRITTEN OPTIONS ......................................................... $ 0 $ 2,849,042
================ ===============
SMALL CAP SMALL/MID
DISCIPLINED CAP VALUE
FUND FUND
- -----------------------------------------------------------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE ............................................................ $ 245,745,889 $ 162,906,714
COLLATERAL FOR SECURITIES LOANED (NOTE 2) ................................................. 11,651,427 0
INVESTMENTS IN AFFILIATES ................................................................. 21,319,310 24,669,475
INVESTMENTS IN OTHER AFFILIATES ........................................................... 0 8,412,323
---------------- ---------------
TOTAL INVESTMENTS AT MARKET VALUE (SEE COST BELOW) ........................................... 278,716,626 195,988,512
---------------- ---------------
CASH ...................................................................................... 0 0
RECEIVABLE FOR FUND SHARES ISSUED ......................................................... 5,078,150 358,561
RECEIVABLE FOR INVESTMENTS SOLD ........................................................... 14,226,531 805,153
RECEIVABLES FOR DIVIDENDS AND INTEREST .................................................... 124,151 136,832
RECEIVABLE FOR INTEREST RATE SWAPS/SPREAD LOCKS ........................................... 0 0
PREPAID EXPENSES AND OTHER ASSETS ......................................................... 0 0
---------------- ---------------
TOTAL ASSETS ................................................................................. 298,145,458 197,289,058
---------------- ---------------
LIABILITIES
OPTION WRITTEN, AT VALUE .................................................................. 0 1,474,975
PAYABLE FOR DAILY VARIATION MARGIN ON FUTURES CONTRACTS ................................... 162,000 0
PAYABLE FOR FUND SHARES REDEEMED .......................................................... 77,882 5,510
PAYABLE FOR INVESTMENTS PURCHASED ......................................................... 63,440 7,423,219
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) ..................................... 256,777 109,534
PAYABLE TO THE TRUSTEES AND SHAREHOLDER SERVICING AGENT ................................... 45,051 35,339
PAYABLE FOR SECURITIES LOANED (NOTE 2) .................................................... 11,651,427 0
ACCRUED EXPENSES AND OTHER LIABILITIES .................................................... 13,449 23,367
---------------- ---------------
TOTAL LIABILITIES ............................................................................ 12,270,026 9,071,944
---------------- ---------------
TOTAL NET ASSETS ............................................................................. $ 285,875,432 $188,217,114
---------------- ---------------
NET ASSETS CONSIST OF:
- -----------------------------------------------------------------------------------------------------------------------------------
PAID-IN CAPITAL ........................................................................... $ 244,578,116 $167,928,632
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ................................................ (847,082) (283,197)
UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON INVESTMENTS ..................................... 20,137,387 2,256,564
NET UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS, FOREIGN CURRENCIES AND
TRANSLATION OF ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES ................ 22,429,334 18,705,264
NET UNREALIZED APPRECIATION (DEPRECIATION) OF FUTURES ..................................... (422,323) 0
NET UNREALIZED APPRECIATION (DEPRECIATION) OF OPTIONS, SWAP AGREEMENTS, AND SHORT SALES ... 0 (390,149)
---------------- ---------------
TOTAL NET ASSETS ............................................................................. $ 285,875,432 $ 188,217,114
---------------- ---------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE(1)
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS - ADMINISTRATOR CLASS .......................................................... $ 1,823,072 $ 73,149,891
SHARES OUTSTANDING - ADMINISTRATOR CLASS .................................................. 101,145 4,328,751
NET ASSET VALUE AND OFFERING PRICE PER SHARE - ADMINISTRATOR CLASS ........................ $ 18.02 $ 16.90
NET ASSETS - ADVISOR CLASS ................................................................ N/A N/A
SHARES OUTSTANDING - ADVISOR CLASS ........................................................ N/A N/A
NET ASSET VALUE AND OFFERING PRICE PER SHARE - ADVISOR CLASS .............................. N/A N/A
NET ASSETS - INSTITUTIONAL CLASS .......................................................... $ 57,738,030 N/A
SHARES OUTSTANDING - INSTITUTIONAL CLASS .................................................. 3,197,743 N/A
NET ASSET VALUE AND OFFERING PRICE PER SHARE - INSTITUTIONAL CLASS ........................ $ 18.06 N/A
NET ASSETS - INVESTOR CLASS ............................................................... $ 226,314,330 $ 115,067,223
SHARES OUTSTANDING - INVESTOR CLASS ....................................................... 12,608,241 6,839,549
NET ASSET VALUE AND OFFERING PRICE PER SHARE - INVESTOR CLASS ............................. $ 17.95 $ 16.82
---------------- ---------------
INVESTMENTS AT COST .......................................................................... $ 256,287,292 $ 177,283,320
---------------- ---------------
SECURITIES ON LOAN, AT MARKET VALUE .......................................................... $ 11,278,438 $ 0
---------------- ---------------
PREMIUMS RECEIVED ON WRITTEN OPTIONS ......................................................... $ 0 $ 1,084,826
================ ===============
55
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
STATEMENTS OF OPERATIONS--
FOR THE SIX MONTHS ENDED APRIL 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
DISCOVERY ENTERPRISE
FUND FUND
- -------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS ......................................................................... $ 408,376 $ 519,636
INTEREST .......................................................................... 682 0
INCOME FROM AFFILIATED SECURITIES ................................................. 156,291 65,054
SECURITIES LENDING INCOME, NET .................................................... 13,724 5,353
------------------ ------------------
TOTAL INVESTMENT INCOME .............................................................. 579,073 590,043
------------------ ------------------
EXPENSES
ADVISORY FEES ..................................................................... 868,570 868,708
ADMINISTRATION FEES
FUND LEVEL ..................................................................... 57,905 57,914
ADMINISTRATOR CLASS ............................................................ 8,045 1,606
ADVISOR CLASS .................................................................. N/A 2,531
INSTITUTIONAL CLASS ............................................................ N/A 7,626
INVESTOR CLASS ................................................................. 484,940 467,031
CUSTODY FEES ...................................................................... 23,162 23,166
SHAREHOLDER SERVICING FEES ........................................................ 289,523 265,738
ACCOUNTING FEES ................................................................... 20,435 26,360
PROFESSIONAL FEES ................................................................. 14,734 15,673
REGISTRATION FEES ................................................................. 6,888 3,629
SHAREHOLDER REPORTS ............................................................... 15,160 21,671
TRUSTEES' FEES .................................................................... 3,687 3,687
OTHER FEES AND EXPENSES ........................................................... 2,806 3,060
------------------ ------------------
TOTAL EXPENSES ....................................................................... 1,795,855 1,768,400
------------------ ------------------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) ...................................... (216,190) (43,439)
NET EXPENSES ...................................................................... 1,579,665 1,724,961
------------------ ------------------
NET INVESTMENT INCOME (LOSS) ......................................................... (1,000,592) (1,134,918)
------------------ ------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- -------------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ................... 12,159,235 20,364,005
FUTURES TRANSACTIONS .............................................................. 0 0
OPTIONS, SWAP AGREEMENTS AND SHORT SALE TRANSACTIONS .............................. 0 0
------------------ ------------------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ............................................ 12,159,235 20,364,005
------------------ ------------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
- -------------------------------------------------------------------------------------------------------------------------------
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ................... 27,569,871 22,261,276
FUTURES TRANSACTIONS .............................................................. 0 0
OPTIONS, SWAP AGREEMENTS AND SHORT SALE TRANSACTIONS .............................. 0 0
------------------ ------------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS .................. 27,569,871 22,261,276
------------------ ------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ............................... 39,729,106 42,625,281
------------------ ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ...................... $ 38,728,514 $ 41,490,363
================== ==================
(1) NET OF FOREIGN WITHHOLDING TAXES OF ........................................... $ 2,278 $ 2,468
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
56
STATEMENTS OF OPERATIONS--
FOR THE SIX MONTHS ENDED APRIL 30, 2006 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
MID CAP
DISCIPLINED OPPORTUNITY
FUND FUND
- -------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS ......................................................................... $ 5,625,973 $ 15,973,341
INTEREST .......................................................................... 201,500 46,648
INCOME FROM AFFILIATED SECURITIES ................................................. 784,795 3,655,514
SECURITIES LENDING INCOME, NET .................................................... 16,147 60,480
------------------ ------------------
TOTAL INVESTMENT INCOME .............................................................. 6,628,415 19,735,983
------------------ ------------------
EXPENSES
ADVISORY FEES ..................................................................... 2,718,644 7,611,496
ADMINISTRATION FEES
FUND LEVEL ..................................................................... 185,334 556,891
ADMINISTRATOR CLASS ............................................................ 29,230 79,397
ADVISOR CLASS .................................................................. N/A 138,149
INSTITUTIONAL CLASS ............................................................ 50,291 N/A
INVESTOR CLASS ................................................................. 1,253,581 4,432,704
CUSTODY FEES ...................................................................... 74,134 222,756
SHAREHOLDER SERVICING FEES ........................................................ 769,509 2,784,453
ACCOUNTING FEES ................................................................... 38,752 76,500
PROFESSIONAL FEES ................................................................. 18,273 24,740
REGISTRATION FEES ................................................................. 13,760 40,591
SHAREHOLDER REPORTS ............................................................... 34,075 14,567
TRUSTEES' FEES .................................................................... 3,687 3,687
OTHER FEES AND EXPENSES ........................................................... 6,156 15,735
------------------ ------------------
TOTAL EXPENSES ....................................................................... 5,195,426 16,001,666
------------------ ------------------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) ...................................... (644,767) (1,242,541)
NET EXPENSES ...................................................................... 4,550,659 14,759,125
------------------ ------------------
NET INVESTMENT INCOME (LOSS) ......................................................... 2,077,756 4,976,858
------------------ ------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- -------------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ................... 50,542,296 183,536,994
FUTURES TRANSACTIONS .............................................................. 844,158 0
OPTIONS, SWAP AGREEMENTS AND SHORT SALE TRANSACTIONS .............................. 2,930,998 587,394
------------------ ------------------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ............................................ 54,317,452 184,124,388
------------------ ------------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
- -------------------------------------------------------------------------------------------------------------------------------
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ................... 20,304,456 87,747,590
FUTURES TRANSACTIONS .............................................................. 0 0
OPTIONS, SWAP AGREEMENTS AND SHORT SALE TRANSACTIONS .............................. 0 3,534,357
------------------ ------------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS .................. 20,304,456 91,281,947
------------------ ------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ............................... 74,621,908 275,406,335
------------------ ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ...................... $ 76,699,664 $ 280,383,193
================== ==================
(1) NET OF FOREIGN WITHHOLDING TAXES OF ........................................... $ 9,207 $ 55,020
SMALL CAP SMALL/MID
DISCIPLINED CAP VALUE
FUND FUND
- -------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS ......................................................................... $ 653,916 $ 338,463
INTEREST .......................................................................... 22,372 0
INCOME FROM AFFILIATED SECURITIES ................................................. 183,456 215,169
SECURITIES LENDING INCOME, NET .................................................... 42,769 0
------------------ ------------------
TOTAL INVESTMENT INCOME .............................................................. 902,513 553,632
------------------ ------------------
EXPENSES
ADVISORY FEES ..................................................................... 1,055,145 509,412
ADMINISTRATION FEES
FUND LEVEL ..................................................................... 58,619 28,301
ADMINISTRATOR CLASS ............................................................ 765 19,978
ADVISOR CLASS .................................................................. N/A N/A
INSTITUTIONAL CLASS ............................................................ 17,652 N/A
INVESTOR CLASS ................................................................. 424,838 164,806
CUSTODY FEES ...................................................................... 23,448 11,320
SHAREHOLDER SERVICING FEES ........................................................ 237,934 141,503
ACCOUNTING FEES ................................................................... 22,627 15,772
PROFESSIONAL FEES ................................................................. 16,392 10,763
REGISTRATION FEES ................................................................. 4,354 33,311
SHAREHOLDER REPORTS ............................................................... 21,332 12,583
TRUSTEES' FEES .................................................................... 3,687 3,687
OTHER FEES AND EXPENSES ........................................................... 2,745 1,741
------------------ ------------------
TOTAL EXPENSES ....................................................................... 1,889,538 953,177
------------------ ------------------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) ...................................... (139,943) (137,315)
NET EXPENSES ...................................................................... 1,749,595 815,862
------------------ ------------------
NET INVESTMENT INCOME (LOSS) ......................................................... (847,082) (262,230)
------------------ ------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- -------------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ................... 20,455,546 3,934,465
FUTURES TRANSACTIONS .............................................................. (318,089) 0
OPTIONS, SWAP AGREEMENTS AND SHORT SALE TRANSACTIONS .............................. 0 (1,078,375)
------------------ ------------------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ............................................ 20,137,457 2,856,090
------------------ ------------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
- -------------------------------------------------------------------------------------------------------------------------------
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ................... 19,541,715 16,048,655
FUTURES TRANSACTIONS .............................................................. (422,323) 0
OPTIONS, SWAP AGREEMENTS AND SHORT SALE TRANSACTIONS .............................. 0 (485,643)
------------------ ------------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS .................. 19,119,392 15,563,012
------------------ ------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ............................... 39,256,849 18,419,102
------------------ ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ...................... $ 38,409,767 $ 18,156,872
================== ==================
(1) NET OF FOREIGN WITHHOLDING TAXES OF ........................................... $ 763 $ 28,988
57
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
DISCOVERY FUND
--------------------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE FOR THE
APRIL 30, 2006 PERIOD ENDED YEAR ENDED
(UNAUDITED) OCTOBER 31, 2005 DECEMBER 31, 2004
- -----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ................................................. $ 204,356,236 $ 191,180,972 $ 166,793,260
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ......................................... (1,000,592) (1,596,158) (1,907,900)
NET REALIZED GAIN (LOSS) ON INVESTMENTS .............................. 12,159,235 15,988,968 18,988,695
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS .. 27,569,871 (10,362,756) 7,877,318
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ......... 38,728,514 4,030,054 24,958,113
---------------- ----------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
ADMINISTRATOR CLASS ............................................... 0 0 0
INSTITUTIONAL CLASS ............................................... N/A N/A N/A
INVESTOR CLASS .................................................... 0 0 0
NET REALIZED GAIN ON SALE OF INVESTMENTS
ADMINISTRATOR CLASS ............................................... (392,483) 0 0
ADVISOR CLASS ..................................................... N/A N/A N/A
INSTITUTIONAL CLASS ............................................... N/A N/A N/A
INVESTOR CLASS .................................................... (14,524,007) (8,542,961) (10,141,139)
---------------- ----------------- -----------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ..................................... (14,916,490) (8,542,961) (10,141,139)
---------------- ----------------- -----------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ............. 70,012,060 4,956,604 N/A
REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS (NOTE 1) ......... 295,229 0 N/A
COST OF SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) ............... (25,376,787) (36,816) N/A
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - ADMINISTRATOR CLASS ................................... 44,930,502 4,919,788 N/A
---------------- ----------------- -----------------
PROCEEDS FROM SHARES SOLD - ADVISOR CLASS ............................ N/A N/A N/A
REINVESTMENT OF DISTRIBUTIONS - ADVISOR CLASS ........................ N/A N/A N/A
COST OF SHARES REDEEMED - ADVISOR CLASS .............................. N/A N/A N/A
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - ADVISOR CLASS ......................................... N/A N/A N/A
---------------- ----------------- -----------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) ............. N/A N/A N/A
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS (NOTE 1) ......... N/A N/A N/A
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) ............... 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 ........................... 38,029,577 42,993,217 56,324,478
REINVESTMENT OF DISTRIBUTIONS - INVESTOR CLASS ....................... 14,134,772 8,341,865 9,873,900
COST OF SHARES REDEEMED - INVESTOR CLASS ............................. (43,152,228) (38,566,699) (56,627,640)
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INVESTOR CLASS ........................................ 9,012,121 12,768,383 9,570,738
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - TOTAL ................................................. 53,942,623 17,688,171 9,570,738
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS ................................... 77,754,647 13,175,264 24,387,712
---------------- ----------------- -----------------
ENDING NET ASSETS ....................................................... $ 282,110,883 $ 204,356,236 $ 191,180,972
================ ================= =================
SHARES ISSUED AND REDEEMED:
SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ........................... 3,170,842 243,129 N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS
(NOTE 1) .......................................................... 14,235 0 N/A
SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) ....................... (1,156,934) (1,704) N/A
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADMINISTRATOR CLASS ..... 2,028,143 241,425 N/A
---------------- ----------------- -----------------
SHARES SOLD - ADVISOR CLASS .......................................... N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - ADVISOR CLASS ....... N/A N/A N/A
SHARES REDEEMED - ADVISOR CLASS ...................................... N/A N/A N/A
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADVISOR CLASS ........... N/A N/A N/A
---------------- ----------------- -----------------
SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) ........................... N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS
(NOTE 1) .......................................................... N/A N/A N/A
SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) ....................... N/A N/A N/A
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INSTITUTIONAL CLASS ..... N/A N/A N/A
---------------- ----------------- -----------------
SHARES SOLD - INVESTOR CLASS ......................................... 1,773,372 2,152,806 2,749,369
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - INVESTOR CLASS ...... 683,503 435,379 486,928
SHARES REDEEMED - INVESTOR CLASS ..................................... (1,997,258) (1,905,265) (2,809,343)
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INVESTOR CLASS .......... 459,617 682,920 426,954
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM CAPITAL
SHARE TRANSACTIONS ................................................... 2,487,760 924,345 426,954
================ ================= =================
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ............ $ (1,000,592) $ 0 $ 0
================ ================= =================
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
58
STATEMENTS OF CHANGES IN NET ASSETS
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
ENTERPRISE FUND
--------------------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE FOR THE
APRIL 30, 2006 PERIOD ENDED YEAR ENDED
(UNAUDITED) OCTOBER 31, 2005 DECEMBER 31, 2004
- -----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ................................................. $ 216,577,274 $ 281,365,889 $ 287,228,307
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ......................................... (1,134,918) (2,424,532) (4,035,287)
NET REALIZED GAIN (LOSS) ON INVESTMENTS .............................. 20,364,005 36,926,343 38,766,267
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS .. 22,261,276 (30,247,627) 3,909,386
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ......... 41,490,363 4,254,184 38,640,366
---------------- ----------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
ADMINISTRATOR CLASS ............................................... 0 0 0
INSTITUTIONAL CLASS ............................................... 0 0 0
INVESTOR CLASS .................................................... 0 0 0
NET REALIZED GAIN ON SALE OF INVESTMENTS
ADMINISTRATOR CLASS ............................................... 0 0 0
ADVISOR CLASS ..................................................... 0 0 0
INSTITUTIONAL CLASS ............................................... 0 0 0
INVESTOR CLASS .................................................... 0 0 0
---------------- ----------------- -----------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ..................................... 0 0 0
---------------- ----------------- -----------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ............. 1,084,948 32,468,792 5,305,094
REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS (NOTE 1) ......... 0 0 0
COST OF SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) ............... (1,864,967) (40,621,993) (29,866,227)
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - ADMINISTRATOR CLASS ................................... (780,019) (8,153,201) (24,561,133)
---------------- ----------------- -----------------
PROCEEDS FROM SHARES SOLD - ADVISOR CLASS ............................ 528,502 428,092 313,237
REINVESTMENT OF DISTRIBUTIONS - ADVISOR CLASS ........................ 0 0 0
COST OF SHARES REDEEMED - ADVISOR CLASS .............................. (194,652) (532,103) (673,372)
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - ADVISOR CLASS ......................................... 333,850 (104,011) (360,135)
---------------- ----------------- -----------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) ............. 7,262,572 9,708,259 5,292,766
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS (NOTE 1) ......... 0 0 0
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) ............... (1,172,981) (1,577,241) (1,119,418)
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS ................................... 6,089,591 8,131,018 4,173,348
---------------- ----------------- -----------------
PROCEEDS FROM SHARES SOLD - INVESTOR CLASS ........................... 9,590,277 15,069,241 58,477,939
REINVESTMENT OF DISTRIBUTIONS - INVESTOR CLASS ....................... 0 0 0
COST OF SHARES REDEEMED - INVESTOR CLASS ............................. (24,873,873) (83,985,846) (82,232,803)
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INVESTOR CLASS ........................................ (15,283,596) (68,916,605) (23,754,864)
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - TOTAL ................................................. (9,640,174) (69,042,799) (44,502,784)
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS ................................... 31,850,189 (64,788,615) (5,862,418)
---------------- ----------------- -----------------
ENDING NET ASSETS ....................................................... $ 248,427,463 $ 216,577,274 $ 281,365,889
================ ================= =================
SHARES ISSUED AND REDEEMED:
SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ........................... 38,165 1,208,821 231,322
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS
(NOTE 1) .......................................................... 0 0 0
SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) ....................... (65,189) (1,574,848) (1,294,725)
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADMINISTRATOR CLASS ..... (27,024) (366,027) (1,063,403)
---------------- ----------------- -----------------
SHARES SOLD - ADVISOR CLASS .......................................... 18,942 16,959 13,653
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - ADVISOR CLASS ....... 0 0 0
SHARES REDEEMED - ADVISOR CLASS ...................................... (6,769) (22,107) (30,106)
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADVISOR CLASS ........... 12,173 (5,148) (16,453)
---------------- ----------------- -----------------
SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) ........................... 243,410 389,783 234,398
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS
(NOTE 1) ........................................................... 0 0 0
SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) ....................... (40,495) (63,330) (49,394)
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INSTITUTIONAL CLASS ..... 202,915 326,453 185,004
---------------- ----------------- -----------------
SHARES SOLD - INVESTOR CLASS ......................................... 336,003 619,795 2,647,620
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - INVESTOR CLASS ...... 0 0 0
SHARES REDEEMED - INVESTOR CLASS ..................................... (884,600) (3,337,873) (3,660,631)
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INVESTOR CLASS .......... (548,597) (2,718,078) (1,013,011)
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM CAPITAL
SHARE TRANSACTIONS ................................................... (360,533) (2,762,800) (1,907,863)
================ ================= =================
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ............ $ (1,134,918) $ 0 $ 0
================ ================= =================
MID CAP DISCIPLINED FUND
--------------------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE FOR THE
APRIL 30, 2006 PERIOD ENDED YEAR ENDED
(UNAUDITED) OCTOBER 31, 2005 DECEMBER 31, 2004
- -----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ................................................. $ 707,111,813 $ 676,333,048 $ 314,763,531
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ......................................... 2,077,756 254,371 1,854,020
NET REALIZED GAIN (LOSS) ON INVESTMENTS .............................. 54,317,452 106,295,906 23,007,589
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS .. 20,304,456 (82,367,919) 76,539,894
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ......... 76,699,664 24,182,358 101,401,503
---------------- ----------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
ADMINISTRATOR CLASS ............................................... (64,616) 0 0
INSTITUTIONAL CLASS ............................................... (282,243) 0 0
INVESTOR CLASS .................................................... 0 (52,169) (1,458,467)
NET REALIZED GAIN ON SALE OF INVESTMENTS
ADMINISTRATOR CLASS ............................................... (7,807,445) 0 0
ADVISOR CLASS ..................................................... N/A N/A N/A
INSTITUTIONAL CLASS ............................................... (17,355,823) 0 0
INVESTOR CLASS .................................................... (79,076,138) (5,372,165) (41,300,232)
---------------- ----------------- -----------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ..................................... (104,586,265) (5,424,334) (42,758,699)
---------------- ----------------- -----------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ............. 36,133,252 62,608,627 N/A
REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS (NOTE 1) ......... 7,866,615 0 N/A
COST OF SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) ............... (12,746,291) (8,827,377) N/A
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - ADMINISTRATOR CLASS ................................... 31,253,576 53,781,250 N/A
---------------- ----------------- -----------------
PROCEEDS FROM SHARES SOLD - ADVISOR CLASS ............................ N/A N/A N/A
REINVESTMENT OF DISTRIBUTIONS - ADVISOR CLASS ........................ N/A N/A N/A
COST OF SHARES REDEEMED - ADVISOR CLASS .............................. N/A N/A N/A
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - ADVISOR CLASS ......................................... N/A N/A N/A
---------------- ----------------- -----------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) ............. 6,758,104 120,078,609 N/A
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS (NOTE 1) ......... 17,448,977 0 N/A
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) ............... (1,950,612) (1,857,416) N/A
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS ................................... 22,256,469 118,221,193 N/A
---------------- ----------------- -----------------
PROCEEDS FROM SHARES SOLD - INVESTOR CLASS ........................... 136,313,521 196,561,974 639,726,544
REINVESTMENT OF DISTRIBUTIONS - INVESTOR CLASS ....................... 75,869,950 5,217,857 41,489,150
COST OF SHARES REDEEMED - INVESTOR CLASS ............................. (149,517,094) (361,761,533) (378,288,981)
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INVESTOR CLASS ........................................ 62,666,377 (159,981,702) 302,926,713
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - TOTAL ................................................. 116,176,422 12,020,741 302,926,713
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS ................................... 88,289,821 30,778,765 361,569,517
---------------- ----------------- -----------------
ENDING NET ASSETS ....................................................... $ 795,401,634 $ 707,111,813 $ 676,333,048
================ ================= =================
SHARES ISSUED AND REDEEMED:
SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ........................... 1,668,558 2,719,605 N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS
(NOTE 1) .......................................................... 381,522 0 N/A
SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) ....................... (581,956) (382,181) N/A
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADMINISTRATOR CLASS ..... 1,468,124 2,337,424 N/A
---------------- ----------------- -----------------
SHARES SOLD - ADVISOR CLASS .......................................... N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - ADVISOR CLASS ....... N/A N/A N/A
SHARES REDEEMED - ADVISOR CLASS ...................................... N/A N/A N/A
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADVISOR CLASS ........... N/A N/A N/A
---------------- ----------------- -----------------
SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) ........................... 313,184 5,102,108 N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS
(NOTE 1) ........................................................... 844,670 0 N/A
SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) ....................... (90,328) (82,825) N/A
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INSTITUTIONAL CLASS ..... 1,067,526 5,019,283 N/A
---------------- ----------------- -----------------
SHARES SOLD - INVESTOR CLASS ......................................... 6,286,377 8,844,393 30,446,159
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - INVESTOR CLASS ...... 3,684,793 239,791 1,994,256
SHARES REDEEMED - INVESTOR CLASS ..................................... (6,911,824) (16,285,614) (17,803,172)
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INVESTOR CLASS .......... 3,059,346 (7,201,430) 14,637,243
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM CAPITAL
SHARE TRANSACTIONS ................................................... 5,594,996 155,277 14,637,243
================ ================= =================
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ............ $ 1,953,446 $ 222,549 $ 52,056
================ ================= =================
59
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
OPPORTUNITY FUND
--------------------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE FOR THE
APRIL 30, 2006 PERIOD ENDED YEAR ENDED
(UNAUDITED) OCTOBER 31, 2005 DECEMBER 31, 2004
- --------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS .............................................. $ 2,189,698,227 $ 2,528,271,914 $ 2,850,097,048
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ...................................... 4,976,858 (8,930,911) (14,583,343)
NET REALIZED GAIN (LOSS) ON INVESTMENTS ........................... 184,124,388 241,835,742 428,808,957
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS ..................................................... 91,281,947 (189,292,389) 2,877,097
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ...... 280,383,193 43,612,442 417,102,711
---------------- ----------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
ADMINISTRATOR CLASS ............................................. 0 0 0
INSTITUTIONAL CLASS ............................................. N/A N/A N/A
NET REALIZED GAIN ON SALE OF INVESTMENTS
ADMINISTRATOR CLASS ............................................. (15,408,235) 0 0
ADVISOR CLASS ................................................... (12,540,329) 0 0
INSTITUTIONAL CLASS ............................................. N/A N/A N/A
INVESTOR CLASS .................................................. (197,242,726) 0 0
---------------- ----------------- -----------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS .................................. (225,191,290) 0 0
---------------- ----------------- -----------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) .......... 75,891,667 164,840,527 1,580,103
REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS (NOTE 1) ...... 15,396,737 0 0
COST OF SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) ............ (47,269,099) (30,574,278) (561,170)
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - ADMINISTRATOR CLASS .......................... 44,019,305 134,266,249 1,018,933
---------------- ----------------- -----------------
PROCEEDS FROM SHARES SOLD - ADVISOR CLASS ......................... 10,402,257 21,629,223 24,631,677
REINVESTMENT OF DISTRIBUTIONS - ADVISOR CLASS ..................... 12,483,057 0 0
COST OF SHARES REDEEMED - ADVISOR CLASS ........................... (83,092,347) (41,249,508) (49,440,738)
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - ADVISOR CLASS ................................ (60,207,033) (19,620,285) (24,809,061)
---------------- ----------------- -----------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) .......... N/A N/A N/A
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS (NOTE 1) ...... N/A N/A N/A
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) ............ 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 ........................ 84,070,583 118,176,453 256,753,792
REINVESTMENT OF DISTRIBUTIONS - INVESTOR CLASS .................... 191,288,325 0 0
COST OF SHARES REDEEMED - INVESTOR CLASS .......................... (276,195,401) (615,008,546) (971,891,509)
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - INVESTOR CLASS ............................... (836,493) (496,832,093) (715,137,717)
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - TOTAL ........................................ (17,024,221) (382,186,129) (738,927,845)
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS ................................ 38,167,682 (338,573,687) (321,825,134)
================ ================= =================
ENDING NET ASSETS .................................................... $ 2,227,865,909 $ 2,189,698,227 $ 2,528,271,914
================ ================= =================
SHARES ISSUED AND REDEEMED:
SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ........................ 1,541,840 3,359,994 37,908
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS -
ADMINISTRATOR CLASS (NOTE 1) .................................... 337,056 0 0
SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) .................... (959,218) (634,772) (12,904)
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADMINISTRATOR
CLASS ............................................................. 919,678 2,725,222 25,004
---------------- ----------------- -----------------
SHARES SOLD - ADVISOR CLASS ....................................... 224,518 477,644 594,636
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - ADVISOR CLASS .... 280,140 0 0
SHARES REDEEMED - ADVISOR CLASS ................................... (1,816,505) (907,846) (1,196,366)
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADVISOR CLASS ........ (1,311,847) (430,202) (601,730)
---------------- ----------------- -----------------
SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) ........................ N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL
CLASS (NOTE 1) .................................................. N/A N/A N/A
SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) .................... N/A N/A N/A
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INSTITUTIONAL
CLASS ............................................................. N/A N/A N/A
---------------- ----------------- -----------------
SHARES SOLD - INVESTOR CLASS ...................................... 1,787,421 2,570,750 6,141,602
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - INVESTOR CLASS ... 4,219,906 0 0
SHARES REDEEMED - INVESTOR CLASS .................................. (5,852,946) (13,070,962) (23,338,250)
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INVESTOR CLASS ....... 154,381 (10,500,212) (17,196,648)
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM
CAPITAL SHARE TRANSACTIONS ........................................ (237,788) (8,205,192) (17,773,374)
================ ================= =================
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ......... $ 4,428,188 $ (548,670) $ 0
================ ================= =================
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
60
STATEMENTS OF CHANGES IN NET ASSETS
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
SMALL CAP DISCIPLINED FUND
--------------------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE FOR THE
APRIL 30, 2006 PERIOD ENDED YEAR ENDED
(UNAUDITED) OCTOBER 31, 2005 DECEMBER 31, 2004
- --------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS .............................................. $ 175,316,140 $ 135,287,080 $ 39,549,267
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ...................................... (847,082) (743,453) (459,654)
NET REALIZED GAIN (LOSS) ON INVESTMENTS ........................... 20,137,457 10,983,091 7,214,544
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS ..................................................... 19,119,392 (13,957,929) 11,553,280
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ...... 38,409,767 (3,718,291) 18,308,170
---------------- ----------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
ADMINISTRATOR CLASS ............................................. 0 0 0
INSTITUTIONAL CLASS ............................................. 0 0 0
NET REALIZED GAIN ON SALE OF INVESTMENTS
ADMINISTRATOR CLASS ............................................. (65,291) 0 0
ADVISOR CLASS ................................................... N/A N/A N/A
INSTITUTIONAL CLASS ............................................. (1,636,462) 0 0
INVESTOR CLASS .................................................. (8,526,111) (1,938,459) (5,610,060)
---------------- ----------------- -----------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS .................................. (10,227,864) (1,938,459) (5,610,060)
---------------- ----------------- -----------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) .......... 1,054,394 1,187,153 N/A
REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS (NOTE 1) ...... 61,886 0 N/A
COST OF SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) ............ (621,108) (6,839) N/A
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - ADMINISTRATOR CLASS .......................... 495,172 1,180,314 N/A
---------------- ----------------- -----------------
PROCEEDS FROM SHARES SOLD - ADVISOR CLASS ......................... N/A N/A N/A
REINVESTMENT OF DISTRIBUTIONS - ADVISOR CLASS ..................... N/A N/A N/A
COST OF SHARES REDEEMED - ADVISOR CLASS ........................... N/A N/A N/A
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - ADVISOR CLASS ................................ N/A N/A N/A
---------------- ----------------- -----------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) .......... 96,317,354 2,132,526 N/A
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS (NOTE 1) ...... 1,636,230 0 N/A
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) ............ (48,693,615) (3,005) N/A
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - INSTITUTIONAL CLASS .......................... 49,259,969 2,129,521 N/A
---------------- ----------------- -----------------
PROCEEDS FROM SHARES SOLD - INVESTOR CLASS ........................ 65,797,651 117,038,408 149,171,231
REINVESTMENT OF DISTRIBUTIONS - INVESTOR CLASS .................... 8,230,891 1,884,620 5,471,977
COST OF SHARES REDEEMED - INVESTOR CLASS .......................... (41,406,294) (76,547,053) (71,603,505)
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - INVESTOR CLASS ............................... 32,622,248 42,375,975 83,039,703
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - TOTAL ........................................ 82,377,389 45,685,810 83,039,703
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS ................................ 110,559,292 40,029,060 95,737,813
================ ================= =================
ENDING NET ASSETS .................................................... $ 285,875,432 $ 175,316,140 $ 135,287,080
================ ================= =================
SHARES ISSUED AND REDEEMED:
SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ........................ 64,015 71,415 N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS -
ADMINISTRATOR CLASS (NOTE 1) .................................... 3,868 0 N/A
SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) .................... (37,730) (423) N/A
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADMINISTRATOR
CLASS ............................................................. 30,153 70,992 N/A
---------------- ----------------- -----------------
SHARES SOLD - ADVISOR CLASS ....................................... N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - ADVISOR CLASS .... N/A N/A N/A
SHARES REDEEMED - ADVISOR CLASS ................................... N/A N/A N/A
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADVISOR CLASS ........ N/A N/A N/A
---------------- ----------------- -----------------
SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) ........................ 5,923,883 134,567 N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL
CLASS (NOTE 1) .................................................. 102,201 0 N/A
SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) .................... (2,962,726) (182) N/A
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INSTITUTIONAL
CLASS ............................................................. 3,063,358 134,385 N/A
---------------- ----------------- -----------------
SHARES SOLD - INVESTOR CLASS ...................................... 3,850,559 7,246,946 9,610,777
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - INVESTOR CLASS ... 515,718 114,916 344,921
SHARES REDEEMED - INVESTOR CLASS .................................. (2,481,215) (4,738,743) (4,699,304)
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INVESTOR CLASS ....... 1,885,062 2,623,119 5,256,394
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM
CAPITAL SHARE TRANSACTIONS ........................................ 4,978,573 2,828,496 5,256,394
================ ================= =================
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ......... $ (847,082) $ 0 $ 0
================ ================= =================
SMALL/MID CAP VALUE FUND
--------------------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE FOR THE
APRIL 30, 2006 PERIOD ENDED YEAR ENDED
(UNAUDITED) OCTOBER 31, 2005 DECEMBER 31, 2004
- --------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS .............................................. $ 69,138,909 $ 17,677,763 $ 8,725,077
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ...................................... (262,230) (207,973) (166,803)
NET REALIZED GAIN (LOSS) ON INVESTMENTS ........................... 2,856,090 1,673,937 1,185,390
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS ..................................................... 15,563,012 (399,452) 1,412,425
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ...... 18,156,872 1,066,512 2,431,012
---------------- ----------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
ADMINISTRATOR CLASS ............................................. 0 0 0
INSTITUTIONAL CLASS ............................................. N/A N/A N/A
NET REALIZED GAIN ON SALE OF INVESTMENTS
ADMINISTRATOR CLASS ............................................. (712,591) 0 0
ADVISOR CLASS ................................................... N/A N/A N/A
INSTITUTIONAL CLASS ............................................. N/A N/A N/A
INVESTOR CLASS .................................................. (1,083,767) (556,276) (575,996)
---------------- ----------------- -----------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS .................................. (1,796,358) (556,276) (575,996)
---------------- ----------------- -----------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) .......... 39,477,524 32,581,094 N/A
REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS (NOTE 1) ...... 708,247 0 N/A
COST OF SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) ............ (4,684,156) (155,932) N/A
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - ADMINISTRATOR CLASS .......................... 35,501,615 32,425,162 N/A
---------------- ----------------- -----------------
PROCEEDS FROM SHARES SOLD - ADVISOR CLASS ......................... N/A N/A N/A
REINVESTMENT OF DISTRIBUTIONS - ADVISOR CLASS ..................... N/A N/A N/A
COST OF SHARES REDEEMED - ADVISOR CLASS ........................... N/A N/A N/A
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - ADVISOR CLASS ................................ N/A N/A N/A
---------------- ----------------- -----------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) .......... N/A N/A N/A
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS (NOTE 1) ...... N/A N/A N/A
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) ............ 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 ........................ 74,977,398 24,496,560 14,750,414
REINVESTMENT OF DISTRIBUTIONS - INVESTOR CLASS .................... 1,036,187 512,694 520,046
COST OF SHARES REDEEMED - INVESTOR CLASS .......................... (8,797,509) (6,483,506) (8,172,790)
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - INVESTOR CLASS ............................... 67,216,076 18,525,748 7,097,670
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - TOTAL ........................................ 102,717,691 50,950,910 7,097,670
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS ................................ 119,078,205 51,461,146 8,952,686
================ ================= =================
ENDING NET ASSETS .................................................... $ 188,217,114 $ 69,138,909 $ 17,677,763
================ ================= =================
SHARES ISSUED AND REDEEMED:
SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ........................ 2,408,553 2,167,538 N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS -
ADMINISTRATOR CLASS (NOTE 1) .................................... 46,811 0 N/A
SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) .................... (283,761) (10,390) N/A
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADMINISTRATOR
CLASS ............................................................. 2,171,603 2,157,148 N/A
---------------- ----------------- -----------------
SHARES SOLD - ADVISOR CLASS ....................................... N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - ADVISOR CLASS .... N/A N/A N/A
SHARES REDEEMED - ADVISOR CLASS ................................... N/A N/A N/A
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADVISOR CLASS ........ N/A N/A N/A
---------------- ----------------- -----------------
SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) ........................ N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL
CLASS (NOTE 1) .................................................. N/A N/A N/A
SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) .................... N/A N/A N/A
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INSTITUTIONAL
CLASS ............................................................. N/A N/A N/A
---------------- ----------------- -----------------
SHARES SOLD - INVESTOR CLASS ...................................... 4,758,692 1,720,617 1,163,624
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - INVESTOR CLASS ... 68,667 38,289 39,517
SHARES REDEEMED - INVESTOR CLASS .................................. (554,085) (470,475) (651,576)
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INVESTOR CLASS ....... 4,273,274 1,288,431 551,565
---------------- ----------------- -----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM
CAPITAL SHARE TRANSACTIONS ........................................ 6,444,877 3,445,579 551,565
================ ================= =================
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ......... $ (283,197) $ (20,967) $ 0
================ ================= =================
61
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS 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
- ----------------------------------------------------------------------------------------------------------------------------------
DISCOVERY FUND
- ----------------------------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) ................. $ 20.89 (0.07) 3.73 0.00
APRIL 11, 2005(4) TO OCTOBER 31, 2005 .......................... $ 19.17 (0.05) 1.77 0.00
INVESTOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) ................. $ 20.84 (0.09) 3.72 0.00
JANUARY 1, 2005 TO OCTOBER 31, 2005 ............................ $ 21.53 (0.17) 0.45 0.00
JANUARY 1, 2004 TO DECEMBER 31, 2004 ........................... $ 19.73 (0.21) 3.22 0.00
JANUARY 1, 2003 TO DECEMBER 31, 2003 ........................... $ 14.42 (0.12) 5.64 (0.00)(5)
JANUARY 1, 2002 TO DECEMBER 31, 2002 ........................... $ 16.84 (0.06) (1.91) 0.00
JANUARY 1, 2001 TO DECEMBER 31, 2001 ........................... $ 16.39 (0.08) 0.76 0.00
JANUARY 1, 2000 TO DECEMBER 31, 2000 ........................... $ 18.64 0.06 0.51 (0.04)
ENTERPRISE FUND
- ----------------------------------------------------------------------------------------------------------------------------------
ADMINSTRATOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) ................. $ 25.95 (0.70) 5.87 0.00
JANUARY 1, 2005 TO OCTOBER 31, 2005 ............................ $ 25.36 (0.14)(6) 0.73 0.00
January 1, 2004 to December 31, 2004 ........................... $ 21.98 (0.19)(6) 3.57 0.00
JANUARY 1, 2003 TO DECEMBER 31, 2003 ........................... $ 15.94 (0.10) 6.14 0.00
AUGUST 30, 2002(4) TO DECEMBER 31, 2002 ........................ $ 16.32 (0.04)(6) (0.34) 0.00
ADVISOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) ................. $ 25.57 (0.61) 5.66 0.00
JANUARY 1, 2005 TO OCTOBER 31, 2005 ............................ $ 25.04 (0.21)(6) 0.74 0.00
JANUARY 1, 2004 TO DECEMBER 31, 2004 ........................... $ 21.79 (0.27)(6) 3.52 0.00
JANUARY 1, 2003 TO DECEMBER 31, 2003 ........................... $ 15.86 (0.23) 6.16 0.00
JANUARY 1, 2002 TO DECEMBER 31, 2002 ........................... $ 22.04 (0.24)(6) (5.94) 0.00
JANUARY 1, 2001 TO DECEMBER 31, 2001 ........................... $ 28.31 (0.21) (6.06) 0.00
FEBRUARY 24, 2000(4) TO DECEMBER 31, 2000 ...................... $ 51.32 (0.03) (22.43) 0.00
INSTITUTIONAL CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) ................. $ 25.95 (0.58) 5.78 0.00
JANUARY 1, 2005 TO OCTOBER 31, 2005 ............................ $ 25.30 (0.10)(6) 0.75 0.00
JANUARY 1, 2004 TO DECEMBER 31, 2004 ........................... $ 21.87 (0.11)(6) 3.54 0.00
JUNE 30, 2003(4) TO DECEMBER 31, 2003 .......................... $ 18.34 (0.06) 3.59 0.00
INVESTOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) ................. $ 25.43 (0.09) 5.10 0.00
JANUARY 1, 2005 TO OCTOBER 31, 2005 ............................ $ 24.95 (0.25)(6) 0.73 0.00
JANUARY 1, 2004 TO DECEMBER 31, 2004 ........................... $ 21.78 (0.34)(6) 3.51 0.00
JANUARY 1, 2003 TO DECEMBER 31, 2003 ........................... $ 15.90 (0.30) 6.18 0.00
JANUARY 1, 2002 TO DECEMBER 31, 2002 ........................... $ 22.14 (0.28)(6) (5.96) 0.00
JANUARY 1, 2001 TO DECEMBER 31, 2001 ........................... $ 28.37 (0.31) (5.92) 0.00
JANUARY 1, 2000 TO DECEMBER 31, 2000 ........................... $ 41.24 (0.28) (12.04) 0.00
MID CAP DISCIPLINED FUND
- ----------------------------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) ................. $ 23.25 0.07 2.20 (0.02)
APRIL 11, 2005(4) TO OCTOBER 31, 2005 .......................... $ 21.84 0.05(6) 1.36 0.00
INSTITUTIONAL CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) ................. $ 23.28 0.10 2.22 (0.05)
APRIL 11, 2005(4) TO OCTOBER 31, 2005 .......................... $ 21.84 0.07(6) 1.37 0.00
INVESTOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) ................. $ 23.23 0.05 2.21 0.00
JANUARY 1, 2005 TO OCTOBER 31, 2005 ............................ $ 22.34 0.00(5)(6) 1.07 0.00
JANUARY 1, 2004 TO DECEMBER 31, 2004 ........................... $ 20.13 0.06 4.00 (0.05)
JANUARY 1, 2003 TO DECEMBER 31, 2003 ........................... $ 14.85 0.02 5.99 (0.02)
JANUARY 1, 2002 TO DECEMBER 31, 2002 ........................... $ 17.42 0.01 (2.06) 0.00
JANUARY 1, 2001 TO DECEMBER 31, 2001 ........................... $ 15.50 (0.02) 1.94 0.00
JANUARY 1, 2000 TO DECEMBER 31, 2000 ........................... $ 13.52 (0.00)(5) 3.00 (0.06)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
62
FINANCIAL HIGHLIGHTS WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
DISTRIBUTIONS ENDING RATIO TO AVERAGE NET ASSETS (ANNUALIZED)(1)
FROM NET NET ASSET -----------------------------------------------
REALIZED VALUE PER NET INVESTMENT GROSS EXPENSES NET
GAINS SHARE INCOME (LOSS) EXPENSES WAIVED EXPENSES
- -----------------------------------------------------------------------------------------------------------------------------------
DISCOVERY FUND
- -----------------------------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) ... (1.53) $ 23.02 (0.67)% 1.28% (0.13)% 1.15%
APRIL 11, 2005(4) TO OCTOBER 31, 2005 ............ 0.00 $ 20.89 (0.76)% 1.24% (0.11)% 1.13%
INVESTOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) ... (1.53) $ 22.94 (0.88)% 1.57% (0.19)% 1.38%
JANUARY 1, 2005 TO OCTOBER 31, 2005 .............. (0.97) $ 20.84 (1.00)% 1.55% (0.16)% 1.39%
JANUARY 1, 2004 TO DECEMBER 31, 2004 ............. (1.21) $ 21.53 (1.11)% 1.44% (0.04)% 1.40%
JANUARY 1, 2003 TO DECEMBER 31, 2003 ............. (0.21) $ 19.73 (0.67)% 1.47% (0.04)% 1.43%
JANUARY 1, 2002 TO DECEMBER 31, 2002 ............. (0.45) $ 14.42 (0.38)% 1.50% (0.04)% 1.46%
JANUARY 1, 2001 TO DECEMBER 31, 2001 ............. (0.23) $ 16.84 (0.46)% 1.49% (0.01)% 1.48%
JANUARY 1, 2000 TO DECEMBER 31, 2000 ............. (2.78) $ 16.39 0.34% 1.46% 0.00% 1.46%
ENTERPRISE FUND
- -----------------------------------------------------------------------------------------------------------------------------------
ADMINSTRATOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) ... 0.00 $ 31.12 (0.62)% 1.23% (0.08)% 1.15%
JANUARY 1, 2005 TO OCTOBER 31, 2005 .............. 0.00 $ 25.95 (0.64)% 1.23% (0.08)% 1.15%
January 1, 2004 to December 31, 2004 ............. 0.00 $ 25.36 (0.83)% 1.34% (0.20)% 1.14%
JANUARY 1, 2003 TO DECEMBER 31, 2003 ............. 0.00 $ 21.98 (0.82)% 1.30% (0.14)% 1.16%
AUGUST 30, 2002(4) TO DECEMBER 31, 2002 .......... 0.00 $ 15.94 (0.63)% 1.32% (0.18)% 1.14%
ADVISOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) ... 0.00 $ 30.62 (0.88)% 1.42% (0.04)% 1.38%
JANUARY 1, 2005 TO OCTOBER 31, 2005 .............. 0.00 $ 25.57 (1.02)% 1.49% (0.04)% 1.45%
JANUARY 1, 2004 TO DECEMBER 31, 2004 ............. 0.00 $ 25.04 (1.22)% 1.60% (0.05)% 1.55%
JANUARY 1, 2003 TO DECEMBER 31, 2003 ............. 0.00 $ 21.79 (1.14)% 1.53% (0.03)% 1.50%
JANUARY 1, 2002 TO DECEMBER 31, 2002 ............. 0.00 $ 15.86 (1.33)% 1.82% (0.02)% 1.80%
JANUARY 1, 2001 TO DECEMBER 31, 2001 ............. 0.00 $ 22.04 (1.60)% 2.09% (0.01)% 2.08%
FEBRUARY 24, 2000(4) TO DECEMBER 31, 2000 ........ (0.55) $ 28.31 (1.19)% 2.00% (0.09)% 1.91%
INSTITUTIONAL CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) ... 0.00 $ 31.15 (0.40)% 0.97% (0.07)% 0.90%
JANUARY 1, 2005 TO OCTOBER 31, 2005 .............. 0.00 $ 25.95 (0.47)% 0.97% (0.09)% 0.88%
JANUARY 1, 2004 TO DECEMBER 31, 2004 ............. 0.00 $ 25.30 (0.47)% 0.88% (0.05)% 0.83%
JUNE 30, 2003(4) TO DECEMBER 31, 2003 ............ 0.00 $ 21.87 (0.67)% 1.18% (0.21)% 0.97%
INVESTOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) ... 0.00 $ 30.44 (1.04)% 1.58% (0.03)% 1.55%
JANUARY 1, 2005 TO OCTOBER 31, 2005 .............. 0.00 $ 25.43 (1.23)% 1.69% (0.04)% 1.65%
JANUARY 1, 2004 TO DECEMBER 31, 2004 ............. 0.00 $ 24.95 (1.51)% 1.89% (0.04)% 1.85%
JANUARY 1, 2003 TO DECEMBER 31, 2003 ............. 0.00 $ 21.78 (1.44)% 1.96% (0.16)% 1.80%
JANUARY 1, 2002 TO DECEMBER 31, 2002 ............. 0.00 $ 15.90 (1.51)% 2.02% (0.06)% 1.96%
JANUARY 1, 2001 TO DECEMBER 31, 2001 ............. 0.00 $ 22.14 (1.22)% 1.76% 0.00% 1.76%
JANUARY 1, 2000 TO DECEMBER 31, 2000 ............. (0.55) $ 28.37 (0.67)% 1.37% 0.00% 1.37%
MID CAP DISCIPLINED FUND
- -----------------------------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) ... (3.42) $ 22.08 0.67% 1.20% (0.05)% 1.15%
APRIL 11, 2005(4) TO OCTOBER 31, 2005 ............ 0.00 $ 23.25 0.36% 1.20% (0.06)% 1.14%
INSTITUTIONAL CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) ... (3.42) $ 22.13 0.89% 0.91% (0.02)% 0.89%
APRIL 11, 2005(4) TO OCTOBER 31, 2005 ............ 0.00 $ 23.28 0.53% 0.92% (0.04)% 0.88%
INVESTOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) ... (3.42) $ 22.07 0.47% 1.53% (0.22)% 1.31%
JANUARY 1, 2005 TO OCTOBER 31, 2005 .............. (0.18) $ 23.23 0.02% 1.51% (0.17)% 1.34%
JANUARY 1, 2004 TO DECEMBER 31, 2004 ............. (1.80) $ 22.34 0.36% 1.35% (0.05)% 1.30%
JANUARY 1, 2003 TO DECEMBER 31, 2003 ............. (0.71) $ 20.13 0.13% 1.49% (0.04)% 1.45%
JANUARY 1, 2002 TO DECEMBER 31, 2002 ............. (0.52) $ 14.85 0.09% 1.48% (0.01)% 1.47%
JANUARY 1, 2001 TO DECEMBER 31, 2001 ............. (0.00)(5) $ 17.42 (0.22)% 1.53% (0.01)% 1.52%
JANUARY 1, 2000 TO DECEMBER 31, 2000 ............. (0.96) $ 15.50 (0.09)% 1.86% 0.00% 1.86%
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE(3) (000'S OMITTED)
- ---------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------
DISCOVERY FUND
- ---------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... 18.31% 62% $ 52,248
APRIL 11, 2005(4) TO OCTOBER 31, 2005 ................... 8.97% 110% $ 5,043
INVESTOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... 18.20% 62% $ 229,863
JANUARY 1, 2005 TO OCTOBER 31, 2005 ..................... 1.68% 110% $ 199,313
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................... 15.69% 171% $ 191,181
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................... 38.34% 302% $ 166,793
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................... (12.12)% 420% $ 133,361
JANUARY 1, 2001 TO DECEMBER 31, 2001 .................... 4.17% 502% $ 158,266
JANUARY 1, 2000 TO DECEMBER 31, 2000 .................... 3.97% 482% $ 165,409
ENTERPRISE FUND
- ---------------------------------------------------------------------------------------------------
ADMINSTRATOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... 20.00% 67% $ 3,105
JANUARY 1, 2005 TO OCTOBER 31, 2005 ..................... 2.33% 116% $ 3,290
January 1, 2004 to December 31, 2004 .................... 15.38% 184% $ 12,499
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................... 37.89% 261% $ 34,204
AUGUST 30, 2002(4) TO DECEMBER 31, 2002 ................. (2.33)% 377% $ 3,930
ADVISOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... 19.83% 67% $ 2,085
JANUARY 1, 2005 TO OCTOBER 31, 2005 ..................... 2.12% 116% $ 1,430
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................... 14.92% 184% $ 1,529
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................... 37.39% 261% $ 1,690
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................... (28.04)% 377% $ 1,244
JANUARY 1, 2001 TO DECEMBER 31, 2001 .................... (22.15)% 630% $ 1,328
FEBRUARY 24, 2000(4) TO DECEMBER 31, 2000 ............... (43.68)% 474% $ 225
INSTITUTIONAL CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... 20.12% 67% $ 25,268
JANUARY 1, 2005 TO OCTOBER 31, 2005 ..................... 2.57% 116% $ 15,780
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................... 15.68% 184% $ 7,126
JUNE 30, 2003(4) TO DECEMBER 31, 2003 ................... 19.25% 261% $ 2,114
INVESTOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... 19.74% 67% $ 217,970
JANUARY 1, 2005 TO OCTOBER 31, 2005 ..................... 1.92% 116% $ 196,077
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................... 14.55% 184% $ 260,212
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................... 36.98% 261% $ 249,221
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................... (28.18)% 377% $ 224,182
JANUARY 1, 2001 TO DECEMBER 31, 2001 .................... (21.96)% 630% $ 372,075
JANUARY 1, 2000 TO DECEMBER 31, 2000 .................... (29.77)% 474% $ 574,764
MID CAP DISCIPLINED FUND
- ---------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... 10.84% 52% $ 84,037
APRIL 11, 2005(4) TO OCTOBER 31, 2005 ................... 6.46% 94% $ 54,344
INSTITUTIONAL CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... 11.04% 52% $ 134,680
APRIL 11, 2005(4) TO OCTOBER 31, 2005 ................... 6.59% 94% $ 116,867
INVESTOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) .......... 10.78% 52% $ 576,684
JANUARY 1, 2005 TO OCTOBER 31, 2005 ..................... 4.83% 94% $ 535,900
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................... 21.18% 62% $ 676,333
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................... 40.66% 252% $ 314,764
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................... (11.78)% 431% $ 155,411
JANUARY 1, 2001 TO DECEMBER 31, 2001 .................... 12.41% 648% $ 92,412
JANUARY 1, 2000 TO DECEMBER 31, 2000 .................... 22.80% 301% $ 18,494
63
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS 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
- -----------------------------------------------------------------------------------------------------------------------------------
OPPORTUNITY FUND
- -----------------------------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) ...................... $ 47.61 0.17 5.91 0.00
JANUARY 1, 2005 TO OCTOBER 31, 2005 ................................. $ 46.65 (0.05)(6) 1.01 0.00
JANUARY 1, 2004 TO DECEMBER 31, 2004 ................................ $ 39.58 (0.14) 7.21 0.00
JANUARY 1, 2003 TO DECEMBER 31, 2003 ................................ $ 28.73 (0.06)(6) 10.91 0.00
AUGUST 30(4), 2002 TO DECEMBER 31, 2002 ............................. $ 29.48 0.02 (0.77) 0.00
ADVISOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) ...................... $ 46.57 0.14 5.74 0.00
JANUARY 1, 2005 TO OCTOBER 31, 2005 ................................. $ 45.71 (0.12)(6) 0.98 0.00
JANUARY 1, 2004 TO DECEMBER 31, 2004 ................................ $ 38.94 (0.34) 7.11 0.00
JANUARY 1, 2003 TO DECEMBER 31, 2003 ................................ $ 28.37 (0.19)(6) 10.76 0.00
JANUARY 1, 2002 TO DECEMBER 31, 2002 ................................ $ 38.92 (0.11) (10.44) 0.00
JANUARY 1, 2001 TO DECEMBER 31, 2001 ................................ $ 42.10 (0.06)(6) (2.08) (0.09)
FEBRUARY 24, 2000(4) TO DECEMBER 31, 2000 ........................... $ 43.16 0.03 4.83 (0.28)
INVESTOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) ...................... $ 47.29 0.10 5.87 0.00
JANUARY 1, 2005 TO OCTOBER 31, 2005 ................................. $ 46.40 (0.10)(6) 0.99 0.00
JANUARY 1, 2004 TO DECEMBER 31, 2004 ................................ $ 39.45 (0.26) 7.21 0.00
JANUARY 1, 2003 TO DECEMBER 31, 2003 ................................ $ 28.70 (0.14)(6) 10.89 0.00
JANUARY 1, 2002 TO DECEMBER 31, 2002 ................................ $ 39.29 (0.08) (10.51) 0.00
JANUARY 1, 2001 TO DECEMBER 31, 2001 ................................ $ 42.35 0.07 (2.11) (0.07)
JANUARY 1, 2000 TO DECEMBER 31, 2000 ................................ $ 44.69 0.17 3.30 (0.17)
SMALL CAP DISCIPLINED FUND
- -----------------------------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) ...................... $ 16.07 (0.04) 2.77 0.00
APRIL 11, 2005(4) TO OCTOBER 31, 2005 ............................... $ 15.99 (0.01) 0.09 0.00
INSTITUTIONAL CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) ...................... $ 16.09 (0.02) 2.77 0.00
APRIL 11, 2005(4) TO OCTOBER 31, 2005 ............................... $ 15.99 0.00 0.10 0.00
INVESTOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) ...................... $ 16.04 (0.07) 2.76 0.00
JANUARY 1, 2005 TO OCTOBER 31, 2005 ................................. $ 16.70 (0.07) (0.38) 0.00
JANUARY 1, 2004 TO DECEMBER 31, 2004 ................................ $ 13.91 (0.06) 3.75 0.00
JANUARY 1, 2003 TO DECEMBER 31, 2003 ................................ $ 9.12 (0.05) 5.71 0.00
MARCH 28, 2002(4) TO DECEMBER 31, 2002 .............................. $ 10.00 (0.05) (0.83) 0.00
SMALL/MID CAP VALUE FUND
- -----------------------------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) ...................... $ 14.65 (0.03) 2.60 0.00
APRIL 11, 2005(4) TO OCTOBER 31, 2005 ............................... $ 13.22 0.00 1.43 0.00
INVESTOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) ...................... $ 14.62 0.00 2.52 0.00
JANUARY 1, 2005 TO OCTOBER 31, 2005 ................................. $ 13.83 (0.08) 1.22 0.00
JANUARY 1, 2004 TO DECEMBER 31, 2004 ................................ $ 12.01 (0.13) 2.43 0.00
JANUARY 1, 2003 TO DECEMBER 31, 2003 ................................ $ 7.58 (0.03) 4.46 0.00
MARCH 28, 2002(4) TO DECEMBER 31, 2002 .............................. $ 10.00 (0.04) (2.38) 0.00
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
64
FINANCIAL HIGHLIGHTS WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
DISTRIBUTIONS ENDING RATIO TO AVERAGE NET ASSETS (ANNUALIZED)(1)
FROM NET NET ASSET ------------------------------------------------
REALIZED VALUE PER NET INVESTMENT GROSS EXPENSES NET
GAINS SHARE INCOME (LOSS) EXPENSES WAIVED EXPENSES
- ------------------------------------------------------------------------------------------------------------------------------------
OPPORTUNITY FUND
- ------------------------------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) ...... (4.93) $ 48.76 0.73% 1.12% (0.08)% 1.04%
JANUARY 1, 2005 TO OCTOBER 31, 2005 ................. 0.00 $ 47.61 (0.14)% 1.13% (0.10)% 1.03%
JANUARY 1, 2004 TO DECEMBER 31, 2004 ................ 0.00 $ 46.65 (0.35)% 1.27% (0.12)% 1.15%
JANUARY 1, 2003 TO DECEMBER 31, 2003 ................ 0.00 $ 39.58 (0.20)% 1.55% (0.36)% 1.19%
AUGUST 30(4), 2002 TO DECEMBER 31, 2002 ............. 0.00 $ 28.73 0.21% 1.22% (0.06)% 1.16%
ADVISOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) ...... (4.93) $ 47.52 0.61% 1.30% (0.01)% 1.29%
JANUARY 1, 2005 TO OCTOBER 31, 2005 ................. 0.00 $ 46.57 (0.49)% 1.42% (0.02)% 1.40%
JANUARY 1, 2004 TO DECEMBER 31, 2004 ................ 0.00 $ 45.71 (0.76)% 1.60% (0.04)% 1.56%
JANUARY 1, 2003 TO DECEMBER 31, 2003 ................ 0.00 $ 38.94 (0.58)% 1.56% (0.01)% 1.55%
JANUARY 1, 2002 TO DECEMBER 31, 2002 ................ 0.00 $ 28.37 (0.38)% 1.58% (0.01)% 1.57%
JANUARY 1, 2001 TO DECEMBER 31, 2001 ................ (0.95) $ 38.92 (0.28)% 1.66% 0.00% 1.66%
FEBRUARY 24, 2000(4) TO DECEMBER 31, 2000 ........... (5.64) $ 42.10 0.10% 1.58% 0.00% 1.58%
INVESTOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) ...... (4.93) $ 48.33 0.42% 1.47% (0.12)% 1.35%
JANUARY 1, 2005 TO OCTOBER 31, 2005 ................. 0.00 $ 47.29 (0.46)% 1.46% (0.10)% 1.36%
JANUARY 1, 2004 TO DECEMBER 31, 2004 ................ 0.00 $ 46.40 (0.55)% 1.39% (0.04)% 1.35%
JANUARY 1, 2003 TO DECEMBER 31, 2003 ................ 0.00 $ 39.45 (0.43)% 1.42% (0.02)% 1.40%
JANUARY 1, 2002 TO DECEMBER 31, 2002 ................ 0.00 $ 28.70 (0.23)% 1.41% (0.01)% 1.40%
JANUARY 1, 2001 TO DECEMBER 31, 2001 ................ (0.95) $ 39.29 0.19% 1.29% 0.00% 1.29%
JANUARY 1, 2000 TO DECEMBER 31, 2000 ................ (5.64) $ 42.35 0.47% 1.20% 0.00% 1.20%
SMALL CAP DISCIPLINED FUND
- ------------------------------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) ...... (0.78) $ 18.02 (0.43)% 1.38% (0.18)% 1.20%
APRIL 11, 2005(4) TO OCTOBER 31, 2005 ............... 0.00 $ 16.07 (0.30)% 1.45% (0.21)% 1.24%
INSTITUTIONAL CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) ...... (0.78) $ 18.06 (0.24)% 1.12% (0.12)% 1.00%
APRIL 11, 2005(4) TO OCTOBER 31, 2005 ............... 0.00 $ 16.09 0.08% 1.10% (0.52)% 0.58%
INVESTOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) ...... (0.78) $ 17.95 (0.84)% 1.73% (0.12)% 1.61%
JANUARY 1, 2005 TO OCTOBER 31, 2005 ................. (0.21) $ 16.04 (0.57)% 1.73% (0.11)% 1.62%
JANUARY 1, 2004 TO DECEMBER 31, 2004 ................ (0.90) $ 16.70 (0.55)% 1.65% (0.06)% 1.59%
JANUARY 1, 2003 TO DECEMBER 31, 2003 ................ (0.87) $ 13.91 (0.89)% 1.89% (0.18)% 1.71%
MARCH 28, 2002(4) TO DECEMBER 31, 2002 .............. 0.00 $ 9.12 (0.98)% 2.55% (0.60)% 1.95%
SMALL/MID CAP VALUE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) ...... (0.32) $ 16.90 (0.19)% 1.47% (0.29)% 1.18%(7)
APRIL 11, 2005(4) TO OCTOBER 31, 2005 ............... 0.00 $ 14.65 (0.18)% 1.48% (0.24)% 1.24%
INVESTOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) ...... (0.32) $ 16.82 (0.61)% 1.80% (0.21)% 1.59%(8)
JANUARY 1, 2005 TO OCTOBER 31, 2005 ................. (0.35) $ 14.62 (1.01)% 1.95% (0.25)% 1.70%
JANUARY 1, 2004 TO DECEMBER 31, 2004 ................ (0.48) $ 13.83 (1.30)% 2.06% (0.30)% 1.76%
JANUARY 1, 2003 TO DECEMBER 31, 2003 ................ 0.00 $ 12.01 (0.55)% 2.86% (1.06)% 1.80%
MARCH 28, 2002(4) TO DECEMBER 31, 2002 .............. 0.00 $ 7.58 (0.74)% 3.56% (1.64)% 1.92%
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE(3) (000'S OMITTED)
- -----------------------------------------------------------------------------------------------------------------------------------
OPPORTUNITY FUND
- -----------------------------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) ......................................... 13.47% 17% $ 179,128
JANUARY 1, 2005 TO OCTOBER 31, 2005 .................................................... 2.06% 35% $ 131,102
JANUARY 1, 2004 TO DECEMBER 31, 2004 ................................................... 17.86% 42% $ 1,337
JANUARY 1, 2003 TO DECEMBER 31, 2003 ................................................... 37.77% 60% $ 145
AUGUST 30(4), 2002 TO DECEMBER 31, 2002 ................................................ (2.54)% 71% $ 634
ADVISOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) ......................................... 13.33% 17% $ 60,110
JANUARY 1, 2005 TO OCTOBER 31, 2005 .................................................... 1.88% 35% $ 119,986
JANUARY 1, 2004 TO DECEMBER 31, 2004 ................................................... 17.39% 42% $ 137,439
JANUARY 1, 2003 TO DECEMBER 31, 2003 ................................................... 37.26% 60% $ 140,500
JANUARY 1, 2002 TO DECEMBER 31, 2002 ................................................... (27.11)% 71% $ 103,924
JANUARY 1, 2001 TO DECEMBER 31, 2001 ................................................... (5.08)% 88% $ 89,132
FEBRUARY 24, 2000(4) TO DECEMBER 31, 2000 .............................................. 12.10% 87% $ 2,551
INVESTOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) ......................................... 13.32% 17% $ 1,988,628
JANUARY 1, 2005 TO OCTOBER 31, 2005 .................................................... 1.92% 35% $ 1,938,610
JANUARY 1, 2004 TO DECEMBER 31, 2004 ................................................... 17.62% 42% $ 2,389,496
JANUARY 1, 2003 TO DECEMBER 31, 2003 ................................................... 37.46% 60% $ 2,709,452
JANUARY 1, 2002 TO DECEMBER 31, 2002 ................................................... (26.95)% 71% $ 2,506,990
JANUARY 1, 2001 TO DECEMBER 31, 2001 ................................................... (4.80)% 88% $ 3,664,068
JANUARY 1, 2000 TO DECEMBER 31, 2000 ................................................... 8.57% 87% $ 3,337,173
SMALL CAP DISCIPLINED FUND
- -----------------------------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) ......................................... 17.58% 54% $ 1,823
APRIL 11, 2005(4) TO OCTOBER 31, 2005 .................................................. 0.50% 56% $ 1,141
INSTITUTIONAL CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) ......................................... 17.62% 54% $ 57,738
APRIL 11, 2005(4) TO OCTOBER 31, 2005 .................................................. 0.63% 56% $ 2,162
INVESTOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) ......................................... 17.35% 54% $ 226,314
JANUARY 1, 2005 TO OCTOBER 31, 2005 .................................................... (2.71)% 56% $ 172,013
JANUARY 1, 2004 TO DECEMBER 31, 2004 ................................................... 27.04% 41% $ 135,287
JANUARY 1, 2003 TO DECEMBER 31, 2003 ................................................... 62.53% 156% $ 39,549
MARCH 28, 2002(4) TO DECEMBER 31, 2002 ................................................. (8.80)% 201% $ 7,871
SMALL/MID CAP VALUE FUND
- -----------------------------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) ......................................... 17.72% 24% $ 73,150
APRIL 11, 2005(4) TO OCTOBER 31, 2005 .................................................. 10.82% 80% $ 31,613
INVESTOR CLASS
NOVEMBER 1, 2005 TO APRIL 30, 2006 (UNAUDITED) ......................................... 17.49% 24% $ 115,067
JANUARY 1, 2005 TO OCTOBER 31, 2005 .................................................... 8.45% 80% $ 37,526
JANUARY 1, 2004 TO DECEMBER 31, 2004 ................................................... 19.37% 133% $ 17,678
JANUARY 1, 2003 TO DECEMBER 31, 2003 ................................................... 58.44% 132% $ 8,725
MARCH 28, 2002(4) TO DECEMBER 31, 2002 ................................................. (24.20)% 108% $ 2,509
OPPORTUNITY FUND
65
WELLS FARGO ADVANTAGE SMALL AND MID CAP 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 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. Portfolio turnover rates presented
for periods of less than one year are not annualized.
(4) Commencement of operations.
(5) Amount calculated is less than $0.005.
(6) Calculated based upon average shares outstanding.
(7) Effective February 1, 2006, the expense cap for Small/Mid Cap Value Fund -
Administrator class changed from 1.20% to 1.15%. The blended expense cap
as of April 30, 2006 is 1.18%.
(8) Effective February 1, 2006, the expense cap for Small/Mid Cap Value Fund -
Investor class changed from 1.62% to 1.57%. The blended expense cap as of
April 30, 2006 is 1.59%.
66
NOTES TO FINANCIAL STATEMENTS
WELLS FARGO ADVANTAGE SMALL AND MID CAP 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
April 30, 2006, was comprised of 108 separate series (each, a "Fund",
collectively, the "Funds"). These financial statements present the Discovery
Fund, Enterprise Fund, Mid Cap Disciplined Fund, Opportunity Fund, Small Cap
Disciplined Fund, and Small/Mid Cap Value 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 Funds Target Funds
- ---------------------------------------------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE DISCOVERY FUND - INVESTOR CLASS STRONG DISCOVERY FUND - INVESTOR CLASS
- ---------------------------------------------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE ENTERPRISE FUND - ADMINISTRATOR CLASS STRONG ENTERPRISE FUND - CLASS K
- ---------------------------------------------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE ENTERPRISE FUND - ADVISOR CLASS STRONG ENTERPRISE FUND - ADVISOR CLASS
- ---------------------------------------------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE ENTERPRISE FUND - INSTITUTIONAL CLASS STRONG ENTERPRISE FUND - INSTITUTIONAL CLASS
- ---------------------------------------------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE ENTERPRISE FUND - INVESTOR CLASS STRONG ENTERPRISE FUND - INVESTOR CLASS
- ---------------------------------------------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE MID CAP DISCIPLINED FUND - INVESTOR CLASS STRONG MID CAP DISCIPLINED FUND - INVESTOR CLASS
- ---------------------------------------------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE OPPORTUNITY FUND - ADMINISTRATOR CLASS STRONG OPPORTUNITY FUND - CLASS K
- ---------------------------------------------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE OPPORTUNITY FUND - ADVISOR CLASS STRONG OPPORTUNITY FUND - ADVISOR CLASS
- ---------------------------------------------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE OPPORTUNITY FUND - INVESTOR CLASS STRONG OPPORTUNITY FUND - INVESTOR CLASS
- ---------------------------------------------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE SMALL CAP DISCIPLINED FUND - INVESTOR CLASS STRONG SMALL COMPANY VALUE FUND - INVESTOR CLASS
- ---------------------------------------------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE SMALL/MID CAP VALUE FUND - INVESTOR CLASS STRONG SMALL/MID CAP VALUE 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.
Certain Funds of the Trust may invest a substantial portion of their
assets in an industry, sector or foreign securities 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 a
focus in such 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.
67
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
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.
AFFILIATE SECURITIES
An affiliate company is a company in which the fund has ownership of at
least 5% of the voting securities. Companies that are affiliates of the fund at
period-end are noted in the fund's Schedule of Investments. The following
positions were held at April 30, 2006:
Mid Cap Disciplined Fund
Security Name Quantity Cost Market Value Unrealized Gain/Loss % of Shares Outstanding
- -----------------------------------------------------------------------------------------------------------------------
SPANISH BROADCASTING
SYSTEM INCORPORATED 2,649,000 $22,573,193 $ 13,403,940 $(9,169,253) 5.53%
- -----------------------------------------------------------------------------------------------------------------------
Small/Mid Cap Value Fund
Security Name Quantity Cost Market Value Unrealized Gain/Loss % of Shares Outstanding
- -----------------------------------------------------------------------------------------------------------------------
ALLIED HEALTHCARE
PRODUCTS INCORPORATED 694,633 $ 3,756,353 $ 4,209,476 $ (453,123) 8.85%
- -----------------------------------------------------------------------------------------------------------------------
COVALENT GROUP
INCORPORATED 1,556,610 3,692,470 4,202,847 510,377 11.53%
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.
68
NOTES TO FINANCIAL STATEMENTS
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
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 April 30, 2006.
At April 30, 2006, estimated net capital loss carryforwards, which are
available to offset future net realized capital gains, were:
Capital Loss
Fund Year Expires Carryforwards
- --------------------------------------------------------------------------------
ENTERPRISE FUND 2009 $ 190,907,319
2010 64,764,000
- --------------------------------------------------------------------------------
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.
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 entire 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 April 30, 2006, the following Fund held future contracts:
Net Unrealized
Expiration Notional Appreciation
Portfolio Contracts Type Date Amount (Depreciation)
- ------------------------------------------------------------------------------------------------------
SMALL CAP DISCIPLINED FUND 270 Short Russell 2000 Mini June 2006 $21,179,923 $(422,323)
- ------------------------------------------------------------------------------------------------------
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 is remarked daily while collateral supporting
loans of U.S. Government securities is 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. The value of the securities on loan and the value of the related
collateral at April 30, 2006, are shown on the Statements of Assets and
Liabilities.
Prior to April 11, 2005, the predecessor Strong Funds had a securities
lending agreement with State Street Bank and Trust Co. ("State Street"). The
agreement required that loans be collateralized at all times by cash and cash
equivalents equal to at least 102% of the market value of the aggregate loaned
securities, plus accrued interest, and the collateral be marked-to-market daily.
Amounts earned as interest on investments of cash collateral, net of rebates and
other securities lending expenses, are included in Securities Lending Income on
the Statements of Operations.
SWAP CONTRACTS
The Funds may enter into various hedging transactions, such as interest
rate swaps to preserve a return or spread on a particular investment or portion
of its portfolio, to create synthetic adjustable-rate mortgage securities or for
other purposes. Swaps involve the exchange of commitments to make or receive
payments, e.g., an exchange of floating-rate payments for fixed rate payments.
The Funds record as an increase or decrease to realized gain/loss, the amount
due or owed by the Funds at
69
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
termination or settlement. Swaps are valued based on prices quoted by
independent brokers. These valuations represent the net present value of all
future cash settlement amounts based on implied forward interest rates or index
values.
As of April 30, 2006, the following Fund had open swap contracts:
Swap Notional Interest Rate/ Interest Rate/ Maturity Net Unrealized
Fund Counter Party Principal Index Received Index Paid Date Gain/(Loss)
- -------------------------------------------------------------------------------------------------------------------
OPPORTUNITY Lehman Brothers $32,641,944 Market Value Notional Amount* 7-Jul-06 $ 2,325,320
FUND Finance Appreciation (3 Month USD Libor
on Customized plus 30 bps) plus Market
Stock Index* Value Appreciation on
Customized Stock Index*
- -------------------------------------------------------------------------------------------------------------------
* CUSTOMIZED STOCK INDEX CONSISTS OF THE FOLLOWING BASKET OF COMMON STOCKS
VALUED AS OF APRIL 30, 2006: MARSHALL & ILSLEY, SUNTRUST BANK, TCF
FINANCIAL CORPORATION, WACHOVIA CORPORATION, ZIONS BANCORP, US BANCORP,
CITY NATIONAL CORPORATION, SYNOVUS FINANCIAL CORPORATION, AND BANK OF
AMERICA CORPORATION.
WRITTEN OPTIONS
An option is a right to buy or sell a particular security at a specified
price within a limited period of time. The writer of the option, in return for a
premium received from the seller, has the obligation to sell (in the case of a
call option) or buy (in the case of a put option) the underlying security of the
contract. The premium received in cash from writing options is recorded as an
asset with an equal liability that is adjusted to reflect the option's value.
The premium received from writing options which expire is recorded as realized
gains. The premium received from writing options which are exercised or closed
is offset against the proceeds or amount paid on the closing transaction to
determine the realized gain or loss. If a put option is exercised, the premium
reduces the cost basis of the security or currency purchased. Options are valued
based on their quoted daily settlement prices.
Risks could arise from entering into written options transactions from the
potential inability of counterparties to meet the terms of their contracts, the
potential inability to enter into a closing transaction because of an illiquid
secondary market, and from unexpected movements in interest or exchange rates or
securities values.
Written options transactions for the period ended April 30, 2006, were as
follows:
Mid Cap Disciplined Fund
------------------------
Contracts Premiums Received
- --------------------------------------------------------------------------------
CALL OPTIONS WRITTEN
- --------------------------------------------------------------------------------
OPTIONS AT BEGINNING OF PERIOD 40 $ 5,280
- --------------------------------------------------------------------------------
OPTIONS WRITTEN 2,847 406,471
- --------------------------------------------------------------------------------
OPTIONS TERMINATED IN CLOSING TRANSACTIONS (2,396) (375,676)
- --------------------------------------------------------------------------------
OPTIONS EXPIRED (322) (12,782)
- --------------------------------------------------------------------------------
OPTIONS EXERCISED 0 0
- --------------------------------------------------------------------------------
OPTIONS AT END OF PERIOD 169 $ 23,293
- --------------------------------------------------------------------------------
Opportunity Fund
----------------
Contracts Premiums Received
- --------------------------------------------------------------------------------
CALL OPTIONS WRITTEN
- --------------------------------------------------------------------------------
OPTIONS AT BEGINNING OF PERIOD 0 $ 0
- --------------------------------------------------------------------------------
OPTIONS WRITTEN 62,338 5,247,749
- --------------------------------------------------------------------------------
OPTIONS TERMINATED IN CLOSING TRANSACTIONS (15,689) (2,396,925)
- --------------------------------------------------------------------------------
OPTIONS EXPIRED 0 0
- --------------------------------------------------------------------------------
OPTIONS EXERCISED (6) (1,782)
- --------------------------------------------------------------------------------
OPTIONS AT END OF PERIOD 46,643 $ 2,849,042
- --------------------------------------------------------------------------------
70
NOTES TO FINANCIAL STATEMENTS
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
Small/Mid Cap Value Fund
---------------------------------
Contracts Premiums Received
- --------------------------------------------------------------------------------
CALL OPTIONS WRITTEN
- --------------------------------------------------------------------------------
OPTIONS AT BEGINNING OF PERIOD 2,308 $ 399,334
- --------------------------------------------------------------------------------
OPTIONS WRITTEN 9,554 2,705,819
- --------------------------------------------------------------------------------
OPTIONS TERMINATED IN CLOSING TRANSACTIONS (7,903) (1,852,972)
- --------------------------------------------------------------------------------
OPTIONS EXPIRED (1,055) (115,331)
- --------------------------------------------------------------------------------
OPTIONS EXERCISED (214) (52,024)
- --------------------------------------------------------------------------------
OPTIONS AT END OF PERIOD 2,690 $ 1,084,826
- --------------------------------------------------------------------------------
Open written call and put option contracts as of April 30, 2006, are disclosed
in the Portfolio of Investments.
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 Fee Subadvisory Fee
Average Daily (% of Average Average Daily (% of Average
Fund Net Assets Daily Net Assets)* Subadviser Net Assets Daily Net Assets)**
- -------------------------------------------------------------------------------------------------------------------------------
DISCOVERY FUND First $500 million 0.750 Wells Capital First $100 million 0.450
Next $500 million 0.700 Management Next $100 million 0.400
Next $2 billion 0.650 Incorporated Over $200 million 0.350
Next $2 billion 0.625
Over $5 billion 0.600
- -------------------------------------------------------------------------------------------------------------------------------
ENTERPRISE FUND First $500 million 0.750 Wells Capital First $100 million 0.450
Next $500 million 0.700 Management Next $100 million 0.400
Next $2 billion 0.650 Incorporated Over $200 million 0.300
Next $2 billion 0.625
Over $5 billion 0.600
- -------------------------------------------------------------------------------------------------------------------------------
MID CAP DISCIPLINED FUND First $500 million 0.750 Wells Capital First $100 million 0.450
Next $500 million 0.700 Management Next $100 million 0.400
Next $2 billion 0.650 Incorporated Over $200 million 0.300
Next $2 billion 0.625
Over $5 billion 0.600
- -------------------------------------------------------------------------------------------------------------------------------
OPPORTUNITY FUND First $500 million 0.750 Wells Capital First $100 million 0.450
Next $500 million 0.700 Management Next $100 million 0.400
Next $2 billion 0.650 Incorporated Over $200 million 0.300
Next $2 billion 0.625
Over $5 billion 0.600
- -------------------------------------------------------------------------------------------------------------------------------
SMALL CAP DISCIPLINED FUND First $500 million 0.900 Wells Capital First $100 million 0.550
Next $500 million 0.850 Management Next $200 million 0.500
Next $2 billion 0.800 Incorporated Over $300 million 0.400
Next $2 billion 0.775
Over $5 billion 0.750
- -------------------------------------------------------------------------------------------------------------------------------
71
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
Advisory Fee Subadvisory Fee
Average Daily (% of Average Average Daily (% of Average
Fund Net Assets Daily Net Assets)* Subadviser Net Assets Daily Net Assets)**
- -------------------------------------------------------------------------------------------------------------------------------
SMALL/MID CAP VALUE FUND First $500 million 0.900 Wells Capital First $100 million 0.450
Next $500 million 0.850 Management Next $100 million 0.400
Next $2 billion 0.800 Incorporated Over $200 million 0.350
Next $2 billion 0.775
Over $5 billion 0.750
- -------------------------------------------------------------------------------------------------------------------------------
* 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. Prior to January 1, 2005, Strong Capital Management, Inc., served
as investment adviser to each of the predecessor Strong Funds. Funds Management
and Strong Capital Management were both entitled to receive an annual fee at the
following rates:
Advisory Fees
(% of Average
Fund Average Daily Net Assets Daily Net Assets)
- --------------------------------------------------------------------------------
DISCOVERY FUND ALL ASSET LEVELS 0.750
- --------------------------------------------------------------------------------
ENTERPRISE FUND First $4 billion 0.750
Next $2 billion 0.725
Over $6 billion 0.700
- --------------------------------------------------------------------------------
MID CAP DISCIPLINED FUND First $4 billion 0.750
Next $2 billion 0.725
Over $6 billion 0.700
- --------------------------------------------------------------------------------
OPPORTUNITY FUND First $4 billion 0.750
Next $2 billion 0.725
Over $6 billion 0.700
- --------------------------------------------------------------------------------
SMALL CAP DISCIPLINED FUND First $4 billion 0.750
Next $2 billion 0.725
Over $6 billion 0.700
- --------------------------------------------------------------------------------
SMALL/MID CAP VALUE 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, the investment
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)
- ----------------------------------------------------------------------------------------------
DISCOVERY FUND Wells Capital First $200 million 0.350
Management Incorporated Over $200 million 0.300
- ----------------------------------------------------------------------------------------------
ENTERPRISE FUND Wells Capital First $200 million 0.350
Management Incorporated Over $200 million 0.300
- ----------------------------------------------------------------------------------------------
MID CAP DISCIPLINED FUND Wells Capital First $200 million 0.350
Management Incorporated Over $200 million 0.300
- ----------------------------------------------------------------------------------------------
OPPORTUNITY FUND Wells Capital First $200 million 0.350
Management Incorporated Over $200 million 0.300
- ----------------------------------------------------------------------------------------------
SMALL CAP DISCIPLINED FUND Wells Capital First $200 million 0.350
Management Incorporated Over $200 million 0.300
- ----------------------------------------------------------------------------------------------
SMALL/MID CAP VALUE FUND Wells Capital First $200 million 0.350
Management Incorporated Over $200 million 0.300
72
NOTES TO FINANCIAL STATEMENTS
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
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
- --------------------------------------------------------------------------------
ADMINISTRATOR CLASS 0.10
- --------------------------------------------------------------------------------
ADVISOR CLASS 0.28
- --------------------------------------------------------------------------------
INSTITUTIONAL CLASS 0.08
- --------------------------------------------------------------------------------
Investor Class 0.45
- --------------------------------------------------------------------------------
** 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:
% of Average
Daily Net Assets
- --------------------------------------------------------------------------------
ALL SMALL AND MID CAP STOCK FUNDS (EXCEPT FOR
DISCOVERY FUND)
- --------------------------------------------------------------------------------
CLASS K 0.25
- --------------------------------------------------------------------------------
ADVISOR CLASS 0.30
- --------------------------------------------------------------------------------
INSTITUTIONAL CLASS 0.02
- --------------------------------------------------------------------------------
INVESTOR CLASS 0.30
- --------------------------------------------------------------------------------
DISCOVERY FUND
- --------------------------------------------------------------------------------
INVESTOR CLASS 0.25
- --------------------------------------------------------------------------------
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.
For financial statement presentation, transfer agent fees for the period
from January 1, 2005, though April 10, 2005, as shown below, have been combined
with administration fees.
Transfer Agent Fees
and Other
Related Expenses
- --------------------------------------------------------------------------------
DISCOVERY FUND
INVESTOR CLASS $ 142,657
- --------------------------------------------------------------------------------
ENTERPRISE FUND
CLASS K 2,848
ADVISOR CLASS 663
INSTITUTIONAL CLASS 322
INVESTOR CLASS 375,731
- --------------------------------------------------------------------------------
MID CAP DISCIPLINED FUND
INVESTOR CLASS 431,093
- --------------------------------------------------------------------------------
OPPORTUNITY FUND
CLASS K 590
ADVISOR CLASS 58,514
INVESTOR CLASS 1,441,770
- --------------------------------------------------------------------------------
SMALL CAP DISCIPLINED FUND
INVESTOR CLASS 92,709
- --------------------------------------------------------------------------------
SMALL/MID CAP VALUE FUND
INVESTOR CLASS 11,272
73
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
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
Daily Net Assets
- --------------------------------------------------------------------------------
ALL SMALL AND MID CAP STOCK FUNDS 0.02
- --------------------------------------------------------------------------------
Prior to February 28, 2005, State Street served as custodian for the
Strong Small Company Value Fund and Strong Small/Mid Cap Value Fund. Prior to
March 7, 2005, State Street served as custodian for the Strong Discovery Fund,
Strong Enterprise Fund, Strong Mid Cap Disciplined Fund and Strong Opportunity
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***
- --------------------------------------------------------------------------------
ADMINISTRATOR CLASS, ADVISOR CLASS AND 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 November 1,
2005, through April 30, 2006, shareholder servicing fees paid were as follows:
Fund Administrator Advisor Investor
- --------------------------------------------------------------------------------
DISCOVERY FUND $ 20,112 N/A $ 269,411
- --------------------------------------------------------------------------------
ENTERPRISE FUND 4,016 $ 2,260 259,462
- --------------------------------------------------------------------------------
MID CAP DISCIPLINED FUND 73,075 N/A 696,434
- --------------------------------------------------------------------------------
OPPORTUNITY FUND 198,493 123,347 2,462,613
- --------------------------------------------------------------------------------
SMALL CAP DISCIPLINED FUND 1,913 N/A 236,021
- --------------------------------------------------------------------------------
SMALL/MID CAP VALUE FUND 49,944 N/A 91,559
DISTRIBUTION FEES
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 Advisor Class
and certain Investor Class shares. Under the plan, Strong Investments, Inc. was
paid an annual rate of 0.25% of the average daily net assets of the Advisor
Class shares of the Enterprise Fund and Opportunity Fund and 0.25% of the
average daily net assets of the Investor Class shares of the Small Cap
Disciplined Fund and Small/Mid Cap Value Fund. For the period ended April 30,
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 to the
Strong Small Company Value Fund and Strong Small/Mid Cap Value Fund. Prior to
March 7, 2005, State Street served as fund accountant for the Strong Discovery
Fund, Strong Enterprise Fund, Strong Mid Cap Disciplined Fund and Strong
Opportunity Fund. Fund accounting fees were paid by the Funds' administrator
through April 10, 2005, 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 from November 1, 2005, through April 30, 2006, were as
follows:
Net Operating Expense Ratios
---------------------------------------------------
Fund Administrator Advisor Institutional Investor
- --------------------------------------------------------------------------------
DISCOVERY FUND 1.15% N/A N/A 1.38%
- --------------------------------------------------------------------------------
ENTERPRISE FUND 1.15% 1.38% 0.90% 1.57%
- --------------------------------------------------------------------------------
MID CAP DISCIPLINED FUND 1.15% N/A 0.90% 1.31%
- --------------------------------------------------------------------------------
74
NOTES TO FINANCIAL STATEMENTS
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
Net Operating Expense Ratios
---------------------------------------------------
Fund Administrator Advisor Institutional Investor
- --------------------------------------------------------------------------------
OPPORTUNITY FUND 1.04% 1.29% N/A 1.35%
- --------------------------------------------------------------------------------
SMALL CAP DISCIPLINED FUND 1.20% N/A 1.00% 1.61%
- --------------------------------------------------------------------------------
SMALL/MID CAP VALUE FUND 1.15%* N/A N/A 1.57%**
- --------------------------------------------------------------------------------
* EFFECTIVE FEBRUARY 1, 2006, THE EXPENSE CAP FOR SMALL/MID CAP VALUE FUND -
ADMINISTRATOR CLASS CHANGED FROM 1.20% TO 1.15%. THE BLENDED EXPENSE CAP
AS OF APRIL 30, 2006 IS 1.18%.
** EFFECTIVE FEBRUARY 1, 2006, THE EXPENSE CAP FOR SMALL/MID CAP VALUE FUND -
INVESTOR CLASS CHANGED FROM 1.62% TO 1.57%. THE BLENDED EXPENSE CAP AS OF
APRIL 30, 2006 IS 1.59%.
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, the predecessor adviser, Strong Capital management, Inc. ("SCM"),
had contractually agreed to waive fees and/or absorb expenses in the amount of
0.033% for Discovery Fund, Enterprise Fund, Mid Cap Disciplined Fund,
Opportunity Fund, Small Company Value Fund and Small/Mid Cap Value Fund from May
21, 2004, to May 21, 2005. However, effective April 11, 2005, the Funds are
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
(securities with maturities of one year or less at purchase date) for the period
ended April 30, 2006, were as follows:
Fund Purchases at Cost Sales Proceeds
- --------------------------------------------------------------------------------
DISCOVERY FUND $ 172,067,981 $ 140,699,641
- --------------------------------------------------------------------------------
ENTERPRISE FUND 152,666,232 158,339,821
- --------------------------------------------------------------------------------
MID CAP DISCIPLINED FUND 359,915,660 389,310,751
- --------------------------------------------------------------------------------
OPPORTUNITY FUND 356,607,104 631,105,718
- --------------------------------------------------------------------------------
SMALL CAP DISCIPLINED FUND 157,668,296 121,060,770
- --------------------------------------------------------------------------------
SMALL/MID CAP VALUE FUND 113,648,835 26,869,773
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 April 30, 2006,
there were no borrowings under either agreement for the Discovery Fund,
Enterprise Fund, Mid Cap Disciplined Fund, Opportunity Fund and Small Cap
Disciplined Fund, while the Small/Mid Cap Value Fund had minimal borrowings.
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 also imposed fee
reductions across the predecessor fund complex (excluding money market funds and
very short-term income funds) totaling $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.
75
WELLS FARGO ADVANTAGE SMALL AND MID CAP 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 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.
76
OTHER INFORMATION (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
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
47 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.
- -------------------------------------------------------------------------------------------------------------------
Dorothy A. Peters Chief Compliance Chief Compliance Officer of None
44 Officer, since 2004 Wells Fargo Funds
Management, LLC since 2004,
and from 1997 to 2002. In
2002 Ms. Peters left Wells Fargo
Funds Management, LLC to
pursue personal goals.
- -------------------------------------------------------------------------------------------------------------------
* 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 April 30, 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.
77
WELLS FARGO ADVANTAGE SMALL AND MID CAP 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 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
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
78
[LOGO]
WELLS ADVANTAGE
FARGO FUNDS
More information about WELLS FARGO ADVANTAGE FUNDS(SM) is available free upon
request. To obtain literature, please write, e-mail, visit the Funds' Web site,
or call:
WELLS FARGO ADVANTAGE FUNDS
P.O. Box 8266
Boston, MA 02266-8266
E-mail: wfaf@wellsfargo.com
Web site: www.wellsfargo.com/advantagefunds
Retail Investment Professionals: 1-888-877-9275
Institutional Investment Professionals: 1-866-765-0778
This report and the financial statements contained herein are submitted for the
general information of the shareholders of WELLS FARGO ADVANTAGE FUNDS. If this
report is used for promotional purposes, distribution of the report must be
accompanied or preceded by a current prospectus. For a prospectus containing
more complete information, including charges and expenses, call 1-800-222-8222
or visit the Funds' Web site at www.wellsfargo.com/advantagefunds. Please
consider the investment 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 - NO BANK GUARANTEE - MAY LOSE VALUE
-----------------------------------------------------
- --------------------------------------------------------------------------------
(C) 2006 Wells Fargo Funds Management, LLC. All rights reserved.
www.wellsfargo.com/advantagefunds
RT57200 06-06
SMCNLD/SAR123 04-06
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, the 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: June 21, 2006
CERTIFICATION
I, Karla M. Rabusch, certify that:
1. I have reviewed this report on Form N-CSR of the Wells Fargo Advantage
Specialized Financial Services Fund, Wells Fargo Advantage Specialized Health
Sciences Fund, Wells Fargo Advantage Specialized Technology Fund, Wells Fargo
Advantage Mid Cap Growth Fund, Wells Fargo Advantage Small Cap Growth Fund,
Wells Fargo Advantage Small Cap Opportunities Fund, Wells Fargo Advantage C&B
Mid Cap Value Fund, Wells Fargo Advantage Common Stock Fund, Wells Fargo
Advantage Small Cap Value Fund, Wells Fargo Advantage Discovery Fund, Wells
Fargo Advantage Enterprise Fund, Wells Fargo Advantage Mid Cap Disciplined Fund,
Wells Fargo Advantage Opportunity Fund, Wells Fargo Advantage Small Cap
Disciplined Fund, and Wells Fargo Small/Mid Cap Value Fund;
2. Based on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements
made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material respects the
financial condition, results of operations, changes in net assets, and cash
flows (if the financial statements are required to include a statement of cash
flows) of the registrant as of, and for, the periods presented in this report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and
have:
a) designed such disclosure controls and procedures or caused such
disclosure controls and procedures to be designed under our
supervision, to ensure that material information relating to the
registrant, including its consolidated subsidiaries, is made known
to us by others within those entities, particularly during the
period in which this report is being prepared;
b) designed such internal control over financial reporting, or caused
such internal control over financial reporting to be designed under
our supervision, to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally
accepted accounting principles;
c) evaluated the effectiveness of the registrant's disclosure controls
and procedures and presented in this report our conclusions about
the effectiveness of the disclosure controls and procedures, as of a
date within 90 days prior to the filing of this report based on such
evaluation; and
d) disclosed in this report any change in the registrant's internal
controls over financial reporting that occurred during the
registrant's most recent fiscal half-year (the registrant's second
fiscal half-year in the case of an annual report) that has
materially affected or is reasonably likely to materially affect,
the registrant's internal control over financial reporting; and
5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
the registrant's board of directors (or persons performing the equivalent
functions):
a) all significant deficiencies in the design or operation of internal
controls over financial reporting which are reasonably likely to adversely
affect the registrant's ability to record, process, summarize, and report
financial information; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal
controls over financial reporting.
Date: June 21, 2006
/s/ Karla M. Rabusch
- -----------------------
Karla M. Rabusch
President
Wells Fargo Funds Trust